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佛山照明(000541)公告正文

粤照明B:2014年半年度报告(英文版)

公告日期:2014-08-28

                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
          2014 Semi-annual Report
                August 2014
                                             2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
         Section I. Important Reminders, Contents & ExplanationThe Board of Directors, the Supervisory Committee as well as all directors,supervisors and senior management staff of Foshan Electrical and Lighting Co., Ltd.(hereinafter referred to as “the Company”) warrant that this report is factual, accurateand complete without any false record, misleading statement or material omission.And they shall be jointly and severally liable for that.All directors have attended in person the board session for reviewing this reportexcept the following:
    Name           Position          Reason for not attending the     Name of the proxy
                                  session in person
    Wu shenpo      Director          ON business                      Werner Jrgen Dietrich Hoffmann
    Ye zaiyou      Director          ON business                      Liu xingmingThe Company plans not to distribute cash dividends or bonus shares or turn capitalreserve into share capital.Pan Jie, company principal & chief of the accounting work, and Yin Jianchun, chiefof the accounting organ (chief of accounting), hereby confirm that the FinancialReport enclosed in this report is factual, accurate and complete.The future plans and some other forward-looking statements involved in this reportshall not be considered as virtual promises of the Company to investors. Andinvestors are kindly reminded to pay attention to possible risks.This report is prepared in both Chinese and English. Should there be any discrepancybetween the two versions, the Chinese version shall prevail.
                                                                   2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                            Contents2014 Semi-annual Report .................................................................................................................. 1Section I. Important Reminders, Contents & Explanation ............................................................ 2Section II. Company Profile .............................................................................................................. 5Section III. Highlights of Accounting Data & Financial Indicators .............................................. 7Section IV. Report of the Board of Directors ................................................................................... 9Section V. Significant Events ........................................................................................................... 24Section VI. Change in Shares & Shareholders .............................................................................. 34Section VII. Preferred Shares ......................................................................................................... 39Section VIII. Directors, Supervisors & Senior Management Staff .............................................. 40Section IX. Financial Report ........................................................................................................... 41Section X. Documents Available for Reference ........................................................................... 147
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                              Explanation
                  Term                    Refers to                               Contents
    The Company, Company, FSL                 Refers to Foshan Electrical and Lighting Co., Ltd.
    CSRC                                      Refers to China Securities Regulation Commission
    SZSE, the Stock Exchange                  Refers to Shenzhen Stock Exchange
                                                      Shareholders’ General Meeting of Foshan Electrical and
    Shareholders’ General Meeting            Refers to
                                                      Lighting Co., Ltd.
                                                      Board of Directors of Foshan Electrical and Lighting Co.,
    Board of Directors                        Refers to
                                                      Ltd.
                                                      Supervisory Committee of Foshan Electrical and Lighting
    Supervisory Committee                     Refers to
                                                      Co., Ltd.
    Yuan, Thousand Yuan, Ten thousand                     RMB Yuan, RMB Thousand Yuan, RMB Ten thousand
                                          Refers to
    Yuan, One Hundred Million Yuan                        Yuan, RMB One Hundred Million Yuan
    Reporting period, this reporting period   Refers to 1 Jan. 2014-30 Jun. 2014
                                                            2014 Semi-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
                                  Shenzhen Stock Exchangewith
    Chinese name        of     the
                                  佛山电器照明股份有限公司CompanyAbbr. of the Chinesename of the Company (if 佛山照明any)English name of the
                                  FOSHAN ELECTRICAL AND LIGHTING CO., LTDCompany (if any)Abbr. of the English name
                          FSLof the Company (if any)Legal representative of
                        Pan Jiethe CompanyII. For Contact
                                                   Company Secretary                  Securities Affairs Representative
    Name                                       Lin Yihui                               Huang Yufen
                                           No. 64, Fenjiang North Road,            No. 64, Fenjiang North Road,
    Contact address                            Chancheng District, Foshan City,        Chancheng District, Foshan City,
                                           Guangdong Province, P.R.China           Guangdong Province, P.R.China
    Tel.                                       (0757)82966062        82810239          (0757)82966028
    Fax                                        (0757)82816276                          (0757)82816276
    E-mail                                     fsl-yh@126.com                          fslhyf@163.comIII. Other information1. Ways to contact the CompanyDid any change occur to the registered address, office address and their postal codes, website address and emailaddress of the Company during the reporting period?□ Applicable √ InapplicableThe registered address, office address and their postal codes, website address and email address of the Companydid not change during the reporting period. The said information can be found in the 2013 Annual Report.
                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.2. About information disclosure and where this report is placedDid any change occur to information disclosure media and where this report is placed during the reporting period?□ Applicable √ InapplicableThe newspapers designated by the Company for information disclosure, the website designated by CSRC fordisclosing this report and the location where this report is placed did not change during the reporting period. Thesaid information can be found in the 2013 Annual Report.3. Change of the registered informationDid any change occur to the registered information during the reporting period?□ Applicable √ InapplicableThe registration date and place of the Company, its business license No., taxation registration No. andorganizational code did not change during the reporting period. The said information can be found in the 2013Annual Report.
                                                                  2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Section III. Highlights of Accounting Data & Financial IndicatorsI. Major accounting data and financial indicatorsDoes the Company adjust retrospectively or restate accounting data of previous years due to change of anyaccounting policy or correction of any accounting error?□ Yes √ No
                                                   Reporting period           Same period of last year            YoY +/- (%)
    Operating revenues (RMB Yuan)                            1,543,058,758.03               1,208,260,446.06                        27.71%Net profit attributable to shareholders of
                                                           188,959,139.45                153,047,291.37                         23.46%the Company (RMB Yuan)Net profit attributable to shareholders of
    the Company after extraordinary gains and                  169,224,226.63                146,663,823.95                         15.38%losses (RMB Yuan)Net cash flows from operating activities
                                                           138,441,766.77                  11,712,252.61                    1,082.03%(RMB Yuan)
    Basic EPS (RMB Yuan/share)                                          0.1931                        0.1564                        23.47%
    Diluted EPS (RMB Yuan/share)                                        0.1931                        0.1564                        23.47%
    Weighted average ROE (%)                                            6.68%                          5.63%                         1.05%
                                                  As at the end of the
                                                                              As at the end of last year             +/- (%)
                                                    reporting period
    Total assets (RMB Yuan)                                  3,673,046,108.98               3,373,781,552.85                         8.87%Net assets attributable to shareholders of
                                                         2,920,569,091.65               2,890,581,921.74                         1.04%the Company (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
                                    Reporting period      Same period of last year        Closing amount           Opening amountAccording to Chinese
                                        188,959,139.45                 153,047,291.37       2,920,569,091.65         2,890,581,921.74accounting standardsItems and amounts adjusted according to international accounting standardsAccording to international
                                        188,959,139.45                 153,047,291.37       2,920,569,091.65         2,890,581,921.74accounting standards
                                                                  2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.2. 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
                                    Reporting period       Same period of last year          Closing amount           Opening amountAccording to Chinese
                                         188,959,139.45                 153,047,291.37         2,920,569,091.65         2,890,581,921.74accounting standardsItems and amounts adjusted according to overseas accounting standardsAccording to overseas
                                         188,959,139.45                 153,047,291.37         2,920,569,091.65         2,890,581,921.74accounting standards3. Explain reasons for the differences between accounting data under domestic and overseas accountingstandards□ Applicable √ InapplicableIII. Items and amounts of extraordinary gains and losses
                                                                                                                       Unit: RMB Yuan
                                Item                                             Amount                            ExplanationGains/losses on the disposal of non-current assets (including the
                                                                                           -106,385.02offset part of asset impairment provisions)Government grants recognized in the current period, except forthose acquired in the ordinary course of business or granted at
                                                                                           323,499.80certain quotas or amounts according to the country’s unifiedstandardsGains and losses on change in fair value from tradable financialassets and tradable financial liabilities, as well as investmentincome from disposal of tradable financial assets and tradable
                                                                                         22,326,685.31financial liabilities and financial assets available for sales exceptfor effective hedging related with normal businesses of theCompany
    Other non-operation income and expenses other than the above                               682,094.80
    Less: Income tax effects                                                                  3,490,982.07
    Total                                                                                    19,734,912.82                  --Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition inthe Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the saidexplanatory announcement as a recurrent gain/loss item□ Applicable √ InapplicableNo such cases during the reporting period.
                                                             2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                          Section IV. Report of the Board of DirectorsI. OverviewIn the reporting period, the economic environment at home and abroad was complex andchangeable, and the overseas markets were in a long and vulnerable recovery. The domesticeconomy slowed down “structurally” and risks were building up in the real estate and financialsectors. And the lighting industry where we belonged saw a structural over-capacity, fiercer marketcompetition, continuously falling product prices and acclerated enterprise wash-out and integration.The industry was reaching a break point. In face of the ups and downs in the industry, with “seizeopportunities, promote development, attach importantce to management and increase profits” as theguidance, the Board of Directors and the managemnt team diligently carried out all the work,enhanced budgetary management and operating plan execution management, and input more effortsin expanding domestic and overseas markets, which ensured a stable growth of the main business.For the reporting period, the Company achieved operating revenues of RMB 1543.0588 million, up27.71% over the same period of last year, of which the revenue from domestic sale reached RMB1052.2441 million, up 19.51% year on year, and that from export reached RMB 490.8147 million,up 49.72% year on year; total profits of RMB 228.9185 million, up 18.86% over the same period oflast year; and net profit attributable to shareholders of the Company of RMB 188.9591 million,representing a year-on-year growth of 23.46%.II. Main business analysisYoY change of major financial data:
                                                                                                             Unit: RMB Yuan
                             Reporting period       Same period of last year       YoY +/-%           Main reasons for change
    Operating revenues              1,543,058,758.03           1,208,260,446.06                  27.71%
    Operating costs                 1,156,217,280.15             925,675,209.12                  24.91%
    Selling expenses                   62,967,912.93              44,431,240.08                  41.72% Sale increased.
                                                                                                      Operating costs
    Administrative expenses           104,495,339.45              77,932,401.53                  34.08%
                                                                                                      increased.
                                                                                                      Interest of term deposits
    Financial expenses                  -5,733,347.63             -3,963,817.89                 -44.64%
                                                                                                      increased.
    Income tax expenses                41,689,863.95              39,614,342.25                   5.24%
    R&D inputs                       34,671,618.47              33,914,703.00                     2.23%
                                                               2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                         Cash received fromNet cash flows from
                                   138,441,766.77            11,712,252.61                     1,082.03% selling goods andoperating activities
                                                                                                         services increased.
                                                                                                          Cash paid forNet cash flows from
                                    -21,344,331.62           25,328,242.59                       -184.27% external investmentinvesting activities
                                                                                                          increased.
                                                                                                          Cash paid asNet cash flows from
                                   -151,583,685.10         -284,036,742.40                        -46.63% dividends and profitfinancing activities
                                                                                                          shares decreased.
                                                                                                          Cash received from
    Net increase in cash                                                                                      selling goods
                                    -36,260,109.78         -249,046,824.08                        -85.44%
    and cash equivalents                                                                                      increased and
                                                                                                          dividends decreased.Major changes to the profit structure or sources of the Company during the reporting period:□ Applicable √ InapplicableNo major changes occurred to the profit structure or sources of the Company during the reportingperiod.Reporting period progress of the future development planning in the disclosed documents of theCompany such as share-soliciting prospectuses, offering prospectuses, asset reorganization reports,etc.:□ Applicable √ InapplicableThe Company did not mention any future planning for the reporting period in its discloseddocuments such as share-soliciting prospectuses, offering prospectuses, asset reorganization reports,etc.Review the progress of the previously disclosed business plan in the reporting period:In the reporting period, according to its operating plan for 2014, the Company made rational andcareful arrangements and planning. The operation as a whole showed a steady development and theoperating plan for the first half of the year was excellently fulfilled. In the coming 6 months, theCompany will continue to push forward relevant work at a steady pace.III. Breakdown of main business
                                                                                                                      Unit: RMB Yuan
                                                                             Increase/decrease Increase/decrease Increase/decrease
                                                                               of operating      of operating costs     of gross profit
                       Operating                         Gross profit rate
                                       Operating costs                       revenues over the     over the same      rate over the same
                       revenues                                (%)
                                                                              same period of period of last year period of last year
                                                                               last year (%)            (%)                  (%)Classified by industry:
    Lighting fixtures   1,527,520,198.14 1,144,349,961.56             25.08%              29.20%               25.87%                  1.97%
                                                                      2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.and lampsClassified by product:Lighting fixtures
                    1,527,520,198.14 1,144,349,961.56                      25.08%            29.20%                25.87%                1.97%and lampsAmong:
    traditional         1,106,737,704.75      809,263,104.37                   26.88%             1.82%                 -2.12%               2.95%lighting productsLED lighting
                        420,782,493.39    335,086,857.19                   20.37%           341.10%               306.99%                6.68%productsClassified by region:
    Domestic            1,036,705,528.94      815,542,735.07                   21.33%            21.32%                21.76%               -0.29%
    Overseas                490,814,669.20    328,807,226.49                   33.01%            49.72%                37.37%                6.02%IV. Core competitiveness analysisIn the reporting period, the Company continued to give play to its leading competitive edges inbrand recognition, channel building, scale & cost, technological R&D, etc. Meanwhile, it inputmore efforts in R&D and proactively expanded domestic and overseas markets. There was no sucha case where the core competitiveness of the Company was severely damaged by core techniciansleaving their posts or expiration of important intellectual properties and intangible assets.V. Investment analysis1. Investments in equities of external parties(1) Investments in external parties√ Applicable □ Inapplicable
                                                        Investments in external parties
    Investment amount in the reporting period        Investment amount in the same period of
                                                                                                                      +/-%
                (RMB Yuan)                                   last year (RMB Yuan)
                                         0.00                                             0.00                                           0.00%
                                                          Particulars about investees
                                                                                                  Proportion of the Company’s investment in
              Name of investee                                  Main business
                                                                                                    the investee’s total equity interests (%)
    Qinghai       Fozhao      Lithium    Energy Integrated development and utilization of
                                                                                                                                        38.00%
    Exploitation Co., Ltd.                          salt lake brine resource.
                                                R&D, production and sale of lithium ion
                                                batteries and materials, solar, wind and
                                                other     renewable     energy      applicationHefei Guoxuan High-tech Power Energy
                                                products,      equipment      and      systems,                                         14.84%Co., Ltd.
                                                energy-saving         optoelectronic       and
                                                electronic     products,     equipment     and
                                                systems, and lithium power emergency
                                                                     2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                           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, operation and management ofGuangzhou Pearl River Asset Management
                                           self-owned        funds;       project          planning;                                     15.38%Company Limited
                                           investment management consulting service
                                           Electronic        products,          communication
                                           devices, household appliances, furniture,
                                           speakers, paper, paper products, chemicals
                                           for daily use, shoes, hats and garment;
    Shenzhen Zhonghao (Group) Ltd.                                                                                                   Less than 5.00%
                                           domestic commerce, material supply and
                                           marketing (excluding goods operated, sold
                                           and      controlled       by      special          entities);
                                           supervision of the self-developed projects
                                           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,        vehicle          repair,
    Chengdu Hongbo Industrial Co., Ltd.        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                                                                               7.99%
    China Guangfa Bank Co., Ltd.               Banking services                                                                      Less than 5.00%
    Foshan Fochen Road Development             Building and operation of the Fochen
                                                                                                                                          7.66%
    Company Limited                            (Foshan Chencun) Road(2)Equity-holdings in financial enterprises√ Applicable □ Inapplicable
                                                                                                                Gain/loss
                          Initial     Opening      Opening         Closing           Closing          Closing
                                                                                                                 in the
    Enterprise Enterprise investment equity-hol equity-hol equity-hol equity-hol book value                                     Accountin   Equity
                                                                                                                reporting
    name       variety   cost (RMB      dings       ding ratio        dings          ding ratio         (RMB                   g title   source
                                                                                                                 period
                          Yuan)       (share)         (%)          (share)               (%)           Yuan)
                                                                                                                 (RMB
                                                                                2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                                               Yuan)
                                                                                                                                          Available-fChina
             Commerci 30,828,816                                                                              59,808,790                  or-sale         Additional
    Everbright                               23,546,768               0.06% 23,546,768                0.06%                           0.00
             al bank               .00                                                                               .72                  financial       issueBank
                                                                                                                                          assets
                                                                                                                                          Long-term
    Xiamen       Commerci 292,574,13 109,714,17                                109,714,17                         292,574,13 21,942,835                       Additional
                                                                  7.99%                           7.99%                                   equity
    Bank         al bank             3.00                   6                             6                             3.00           .20                    issue
                                                                                                                                          investment
    China                                                                                                                                     Long-term
             Commerci                                       Less than                      Less than                                                      Additional
    Guangfa                  500,000.00          229,792                            229,792                       500,000.00          0.00 equity
             al bank                                        5%                                         5%                                                 issue
    Bank                                                                                                                                      investment
                         323,902,94 133,490,73                             133,490,73                         352,882,92 21,942,835
    Total                                                             --                              --                                            --            --
                                 9.00                   6                             6                             3.72           .20(3)Securities investments√ Applicable □ Inapplicable
                                                                       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)
                                    956,522.6                                                                    970,012.0                    交易性金
    Stock        000027    SZNY                             172,600                     172,600                                            0.00
                                                   4                                                                       0                  融资产
                                                                                                                                              交易性金
    Stock        300385    XLHJ          7,365.00                 500                          500                   12,830.00             0.00
                                                                                                                                              融资产
                                                                                                                                              交易性金
    Stock        603328    YDDZ         15,310.00                1,000                     1,000                     15,310.00             0.00
                                                                                                                                              融资产
                       Founder
                                    5,000,000                                                                                   -997,145. 交易性金
    Fund         BC0002    Jinquanyo                       5,000,000                              0                        0.00
                                              .00                                                                                       30 融资产
                       u No. 2
                                    6,544,000                                                                                                 交易性金
    Other        205001    1 Day                                                                                           0.00 1,754.96
                                              .00                                                                                             融资产
                                    33,249,00                                                                                                 交易性金
    Other        205007    7 Days                                                                                          0.00 21,948.24
                                             0.00                                                                                             融资产
                                    39,794,00                                                                                  113,419.5 交易性金
    Other        205008    14 Days                                                                                         0.00
                                             0.00                                                                                         0 融资产
                                    42,300,42                                                                                                 交易性金
    Other        204001    GC001                                                                                           0.00 9,859.92
                                             3.00                                                                                             融资产
                                    5,100,102                                                                                                 交易性金
    Other        204002    GC002                                                                                           0.00 1,108.84
                                              .00                                                                                             融资产
                                    4,100,123                                                                                                 交易性金
    Other        204003    GC003                                                                                           0.00       941.62
                                              .00                                                                                             融资产
                                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                    30,401,21                                                                         交易性金
    Other        204004      GC004                                                                      0.00 12,207.34
                                            6.00                                                                      融资产
                                    40,452,02                                                                         交易性金
    Other        204007      GC007                                                                      0.00 67,409.34
                                            3.00                                                                      融资产
                                    42,004,20                                                                         交易性金
    Other        204014      GC014                                                                      0.00 53,701.66
                                            0.00                                                                      融资产Other securities investments
                                                                                        --          0.00       0.00                              --   --held at the period-end
                                    249,924,2                                                  998,152.0 -714,793.
    Total                                              5,174,100               174,100      --                                                       --   --
                                        84.64                                                          0         88Disclosure date of the board
    announcement on approval of         23 Jan. 2014the securities investmentDisclosure date of the generalmeeting announcement onapproval of the securitiesinvestmentShareholdings in other listed companies:□ Applicable √ InapplicableThe Company did not have any shareholding in any other listed company in the reporting period.2. Wealth management entrustment, derivative investments and entrustment loans(1)Wealth management entrustment□ Applicable √ InapplicableThe Company did not carry out any wealth management entrustment in the reporting period.(2)Derivative investments□ Applicable √ InapplicableThe Company did not carry out any derivative investment in the reporting period.(3)Entrustment loans□ Applicable √ InapplicableThere were no entrustment loans in the reporting period.3. Analysis to main subsidiaries and stock-participating companies√ Applicable □ InapplicableMain subsidiaries and stock-participating companies:
                                                                                                                        Unit: RMB Yuan
    Company        Company          Industry          Main        Registered Total assets Net assets   Operating Operating        Net profit
                                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    name           variety                products/ser           capital                                 revenues       profit
                                             vices
                                         Production
                                         and
                                         operation ofFoshan
                                         electronicChansheng
                            Manufactur ballasts,                             34,527,976. 10,052,280. 77,334,376. 3,756,478
    Electronic     Subsidiary                                  1,000,000.0                                                            2,814,994.44
                            e            electronic                                   66           42           18          .99
    Ballast Co.,                                               0
                                         transformerLtd.
                                         s           and
                                         electronic
                                         igniters
                                         Producer of
                                         lamps,
                                         electric
                                         lightingFoshan
                                         productsChanchang
                                         and related
    Electric                    Manufactur                                       92,062,689. 84,913,163. 46,229,159. -8,539,48
               Subsidiary                fittings,         72,782,944.                                                            -8,539,959.10
    Appliances                  e                                                         68           56           47        9.82
                                         providing         00(Gaoming)
                                         relevantCo., Ltd.
                                         installation
                                         and
                                         consulting
                                         services
                                         R&D,
                                         production
                                         and sales of
    Foshan                                   lamps,
    Taimei                                   household
                            Manufactur                                       76,260,752. 20,940,309. 86,036,195. 7,145,682
    Times          Subsidiary                appliances                                                                               5,359,257.37
                            e                              500,000.00                 97           67           59          .06
    Lamps Co.,                               and fittings,
    Ltd.                                     and       other
                                         electric
                                         lighting
                                         products
                                         R&D and
    Foshan                                   sale of
    Electrical                               electric
    and                         Manufactur appliance,                            54,400,322. 52,652,784. 1,407,011.0 -469,839.
               Subsidiary                                  50,000,000.                                                             -469,839.80
    Lighting                    e            lighting and                                 14           84              3        80
                                                           00
    Engineering                              electromech
    Co., Ltd.                                anical
                                         products;
                                                            2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                    design,
                                    constructio
                                    n and
                                    maintenanc
                                    e of lighting
                                    and
                                    electromech
                                    anical
                                    projects;
                                    design,
                                    constructio
                                    n and
                                    technical
                                    service of
                                    intelligent
                                    constructio
                                    n projects;
                                    investment,
                                    design,
                                    consulting
                                    service,
                                    constructio
                                    n, service,
                                    contractual
                                    energy
                                    managemen
                                    t, technical
                                    service and
                                    assessment
                                    of energy
                                    saving
                                    projects;
                                    and
                                    internationa
                                    l trade
                                    Production
    Nanjing                             of
    Fozhao                              energy-savi
    Lighting                            ng lighting
                       Manufactur                                 84,052,669. 69,235,411. 33,063,138. -171,871.
    Component Subsidiary                products,       41,683,200.                                                    -96,305.24
                       e                                                  34          81          23        74
    s                                   lamps       and 00
    Manufacturi                         lighting
    ng Co., Ltd.                        equipments;
                                    lighting
                                                                 2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                       projects;
                                       energy-savi
                                       ng
                                       technology
                                       developmen
                                       t           and
                                       production
                                       of relevant
                                       fittings; sale
                                       of
                                       self-produc
                                       ed products
                                       Production
                                       and sale of
                                       equipments
                                       and
                                       products of
                                       electric
                                       light
                                       source; and
                                       sale         ofFSL
                                       components
    (Xinxiang)                Manufactur                                  52,501,922. 33,919,784. 12,827,692. 793,674.4
             Subsidiary                of      electric 35,418,439.                                                      793,471.71
    Lighting                  e                                                   64          53           51          4
                                       light             76Co., Ltd.
                                       source,
                                       related
                                       materials,
                                       electrical
                                       materials,
                                       automobile
                                       components
                                       , lamps and
                                       fittings
                                       Financing
                                       lease, lease,
                                       lease
    Guangdong                              consulting
    Fozhao                                 and
                                                                      213,238,28 212,911,32                 3,152,441
    Financing    Subsidiary   Finance      guaranty,         200,000,00                                  0.00               2,364,331.10
                                                                            6.86        7.52                      .47
    Lease Co.,                             financing         0.00
    Ltd.                                   lease
                                       service for
                                       new-energy
                                       automobiles
                                                                 2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                      &          main
                                      components
                                      ,
                                      energy-savi
                                      ng lighting
                                      products &
                                      projects
                                      R&D         and
                                      production
                                      of      electric
                                      light source
                                      products,
                                      equipment,
                                      fittings,
                                      electrical
                                      materials,
                                      automobile
                                      components
                                      ,        home
                                      appliances,
                                      socketFSL
                                      outlets,Lighting
                         Manufactur power                              60,693,773. 22,389,267. 88,831,728. 6,828,519
    Equipment Subsidiary                                     15,000,000.                                                   4,962,733.09
                         e            switches,                                74          70          31        .78
    Co., Ltd.                                                00
                                      fire-protecti
                                      on
                                      products,
                                      ventilation
                                      equipment,
                                      LED
                                      products,
                                      etc.;
                                      domestic
                                      trade,
                                      import and
                                      export       of
                                      technology
                                      and goods
                                      LicensedSuzhou
                                      operations:
    Mont                     Manufactur                                    52,622,167. 33,592,631. 7,792,353.6 -1,568,27
            Subsidiary                naught.            23,634,900.                                                   -1,568,271.61
    Lighting                 e                                                     02          69           1       1.61
                                      General            00Co., Ltd.
                                      operations:
                                                                  2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                         developmen
                                         t,
                                         production
                                         and sale of
                                         semi-condu
                                         ctor lighting
                                         utensils,
                                         drive circuit
                                         and control
                                         system
                                         software
                                         and
                                         hardware
                                         systems;
                                         (produced
                                         only by
                                         branches)
                                         design and
                                         installation
                                         of lighting
                                         engineering
                                         ; import &
                                         export of
                                         semi-condu
                                         ctor lighting
                                         components
                                         and
                                         utensils,
                                         drive circuit
                                         and control
                                         system
                                         software
                                         and
                                         hardware
                                         systems4. Significant projects invested with non-raised funds√ Applicable □ Inapplicable
                                                                                                       Unit: RMB Ten Thousand
                                                                       Cumulative actual
    Project name      Total investment         Input for this period    input as at the     Project progress     Project earnings
                                                                          period-end
    Suzhou Mont                       2,436                       2,436                 2,436            100.00%                -156.83
                                                               2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.Lighting Co., Ltd.
    Total                                     2,436             2,436               2,436           --                   --
    Date      when    the      relevant   interimannouncement (if any) was disclosed on 24 May 2014the designated websiteDesignated website where the relevant
    interim     announcement     (if   any)    was www.cninfo.com.cndisclosedVI. Predict the operating results of Jan.-Sept. 2014Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-beginto the end of the next reporting period according to prediction, as well as explanations on the reasons:□Applicable √InapplicableVII. Explanation of the Board of Directors and the Supervisory Committee on the“Non-standard Audit Report” issued by the CPAs firm for the reporting period□Applicable √InapplicableVIII. Explanation of the Board of Directors on the issues mentioned in the “Non-standardAudit Report” issued by the CPAs firm for last year□Applicable √InapplicableIX. Implementation of profit allocation during the reporting periodProfit allocation plan implemented during the reporting period, especially execution and adjustment of the cashdividend plan and the plan for turning capital reserve into share capital:√ Applicable □ InapplicableOn 28 May 2014, the “Preplan for Profit Allocation for 2013” was reviewed and approved at the 2013 AnnualShareholders’ General Meeting held by the Company. As the profit allocation plan for 2013, the Company, basedon the total 978,563,745 shares as at the end of 2013, distributed a cash dividend of RMB 1.60 (tax included;dividends for B-share holders paid in HKD) for every 10 shares held by its shareholders of A share and B share.On 12 Jun. 2014, the Company disclosed the “Announcement of the Implementation of Profit Allocation for2013” and determined that A shares’ date of record was on 19 Jun. 2014, ex-dividend date on 20 Jun. 2014, thelast trading date of B shares on 19 Jun. 2014 and the ex-dividend date on 20 Jun. 2014. B shares’ date of record
                                                            2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.was on 24 Jun. 2014. At the end of the reporting period, the implementation of profit allocation plan for 2013 wascompleted.
                                 Special statement about the cash dividend policyIn compliance with the Company’s Articles of
    Association and the resolution of the general         Yesmeeting
    Specific and clear dividend standard and ratio        YesComplete decision-making procedure and
                                                      YesmechanismIndependent directors fulfilled their
                                                      Yesresponsibilities and played their due role.Minority shareholders have the chance to fully
    express their opinion and desire and their legal      Yesrights and interests were fully protected.In adjustment or alteration of the cash dividend
    policy, the conditions and procedure were in          Yescompliance with regulations and transparent.X. Pre-plan for profit allocation and turning capital reserve into share capital for thereporting period□ Applicable √ InapplicableThe Company planed not to distribute cash dividends or bonus shares or turn capital reserve into share capital forthe reporting period.XI. Particulars about researches, visits and interviews received in this reporting period√ Applicable □ Inapplicable
                                                                                                      Main discussion and
       Time              Place        Way of reception        Visitor type          Visitor        materials provided by the
                                                                                                           Company
                                                                              GF Securities,
                                                                              China Southern
                                                                              Asset Management,
                                                                              CITIC Securities,
                                                                              GF Fund
                                                                              Management, Lion Production and operation of
    3 Jan. 2014       The Company        Field research      Institution
                                                                              Fund Management, the Company
                                                                              Beijing Longrising
                                                                              Asset Management,
                                                                              Tianhong Asset
                                                                              Management,
                                                                              PingAn Securities
                                               2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                       Production and operation of
    6 Jan. 2014    The Company   Field research   Institution        China AMC
                                                                                       the Company
                                                                 Nomura
                                                                 International (Hong
                                                                 Kong), CIC
                                                                 International (Hong
                                                                 Kong), Value
                                                                 Partners, Manulife
                                                                 Asset Management,
                                                                                       Production and operation of
    18 Feb. 2014   The Company   Field research   Institution        BlackRock, Allianz
                                                                                       the Company
                                                                 Global Investors,
                                                                 DIAM Asset
                                                                 Management
                                                                 (Hong Kong),
                                                                 BOCI-Prudential,
                                                                 TPG-AXON
                                                                 Capital
                                                                 Morgan Stanley
                                                                 (Taiwan), Keywise
                                                                                       Production and operation of
    12 Mar. 2014   The Company   Field research   Institution        Capital (Hong
                                                                                       the Company
                                                                 Kong), Allianz
                                                                 Global Investors
                                                                 Great Wall Fund
                                                                 Management,
                                                                 Invesco Great Wall,
                                                                 SWS MU Fund
                                                                 Management,
                                                                 China Merchants
                                                                 Fund, Hong Kong
                                                                 BOCI-Prudential,
                                                                 China AMC,
                                                                 CITICPE, GF Fund
                                                                 Management,           Production and operation of
    6 May 2014     The Company   Field research   Institution
                                                                 BOCOM                 the Company
                                                                 Schroders, Penghua
                                                                 Fund, CITIC
                                                                 Securities, Foresea
                                                                 Life Insurance,
                                                                 Baoying Fund
                                                                 Management,
                                                                 Qianhe Capital,
                                                                 Golden Eagle,
                                                                 Chang Xin Asset
                                                                 Management,2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                  Fortune SG Fund
                  Management,
                  Galaxy AMC, E
                  Fund Management,
                  Lion Fund
                  Management,
                  Orient Securities
                  Asset Management,
                  Hua An Fund
                  Management,
                  Huashang Fund
                  Management, CCB
                  Principal Asset
                  Management
                                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                         Section V. Significant EventsI. Corporate governanceIn the reporting period, in strict accordance with the Company Law, the Securities Law, the Code ofCorporate Governance of Listed Companies, the Stock Listing Rules of Shenzhen Stock Exchangeand other laws, regulations and rules, the Company kept improving the corporate governancestructure, optimizing the internal management and standardizing operation. The Company hasformulated an organizational management system including the Shareholders’ General Meeting, theBoard of Directors, the Supervisory Committee and the management team, which are functioningsmoothly. The Company has also formulated its Articles of Association, the Rules of Procedure forthe Shareholders’ General Meeting, the Board of Directors and the Supervisory Committee, therules of procedure for the special committees under the Board of Directors, the Working Rules forGM and some other rules, as well as internal control rules governing almost all respects in operationand management such as financial management, investment management, information disclosure,related-party transactions, provision of guarantees for external parties, etc., which are all effectivelyexecuted. In the reporting period, the actual situation of the Company’s governance did not differfrom the Company Law and the relevant CSRC requirements.II. Significant lawsuits or arbitrations√ Applicable □ Inapplicable
                          Amount
                      involved in the   Forming the                       Trial result and    Enforcement on
    Basic information                                        Progress of
                          lawsuit        estimated                        influence of the    the judgment of    Disclosure      Disclosure
    of the lawsuit                                        the lawsuit
                        (arbitration)   liabilities or                         lawsuit          the lawsuit         date            index
    (arbitration)                                        (arbitration)
                        (RMB Ten             not?                           (arbitration)      (arbitration)
                         thousand)
    In Mar. 2013,                                            On 9 Jul.                                                             Announceme
                                                                         The lawsuits are
    CSRC Guangdong                                           2014,                                                                 nt title:
                                                                         currently in trial
    administered an                                          Guangzhou                                                             Announceme
                                                                         with no judgment.
    administrative                                           Intermediat                                                           nt on Lawsuit
                      RMB 73.4283                                        Therefore, the
    punishment on the                                        e People’s                                                           Matters;
                      million and       No                               influence of these Inapplicable        18 Sep. 2013
    illegal information                                      Court                                                                 Announceme
                      HKD 82,000                                         lawsuits on the
    disclosure of the                                        opened a                                                              nt No.:
                                                                         Company is
    Company. 515                                             court                                                                 2013-039;
                                                                         unable to be
    plaintiffs                                               session for                                                           Website of
                                                                         known for now.
    separately sued the                                      the 515                                                               disclosure:
                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Company to                               cases, but                                                        http://www.c
    Guangzhou                                no verdict                                                        ninfo.com.cn
    Intermediate                             has come
    People’s Court for                      out yet.false securitiesstatement,demanding civilcompensationsfrom the Companyfor its illegalinformationdisclosure.In Mar. 2013,CSRC Guangdongadministered anadministrative
    punishment on the                        On 25 Aug
    illegal information                      2014,                                                             Announceme
    disclosure of the                        Guangzhou                                                         nt title:
                                                        The lawsuits are
    Company. 672                             Intermediat                                                       Announceme
                                                        currently in trial
    plaintiffs                               e People’s                                                       nt on Lawsuit
                                                        with no judgment.
    separately sued the                      Court                                                             Matters;
                                                        Therefore, the
    Company to            RMB 87.0947        opened a                                                          Announceme
                                    No                  influence of these Inapplicable     8 Jan. 2014
    Guangzhou             million            court                                                             nt No.:
                                                        lawsuits on the
    Intermediate                             session for                                                       2014-003;
                                                        Company is
    People’s Court for                      the group of                                                      Website of
                                                        unable to be
    false securities                         cases, but                                                        disclosure:
                                                        known for now.
    statement,                               no verdict                                                        http://www.c
    demanding civil                          has come                                                          ninfo.com.cn
    compensations                            out yet.from the Companyfor its illegalinformationdisclosure.
    In Mar. 2013,                                           Currently these                                    Announceme
    CSRC Guangdong                                          cases haven’t                                     nt title:
    administered an                          Currently      entered                                            Announceme
    administrative                           these cases substantive                                           nt on Lawsuit
                      RMB 22.5254
    punishment on the                        haven’t       hearing.                                           Matters;
                      million and   No                                       Inapplicable   15 Mar. 2014
    illegal information                      entered        Therefore, the                                     Announceme
                      HKD 546,600
    disclosure of the                        substantive influence of these                                    nt No.:
    Company. 116                             hearing.       lawsuits on the                                    2014-011;
    plaintiffs                                              Company is                                         Website of
    separately sued the                                     unable to be                                       disclosure:
                                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Company to                                                               known for now.                                             http://www.c
    Guangzhou                                                                                                                           ninfo.com.cnIntermediatePeople’s Court forfalse securitiesstatement,demanding civilcompensationsfrom the Companyfor its illegalinformationdisclosure.III. Media query□Applicable √InapplicableThe Company was not involved in any media query in the reporting period.IV. Bankruptcy and reorganization□ Applicable √ InapplicableBankruptcy and reorganization did not occur to the Company in the reporting period.V. Asset transactions1. Purchase of assets√ Applicable □ Inapplicable
                                                                                                             Relationsh
                                                                                                             ip between
                                                                                 Ratio of                        the
                                                                                  the net                    transaction
                                                      Influence     Influence     profit                     party and
    Transactio         Asset     Transactio                                                        Related-pa
                                                        on the        on the    contribute                       the       Disclosure
    n party or       acquired    n price      Progress                                                rty                                  Disclosure
                                                      Company’ Company’        d by the                    Company date (note
    ultimate         or bought (RMB Ten       (note 2)                                            transaction                                 index
                                                      s operation s gain/loss asset to the                   (applicable       5)
    controller          in      thousand)                                                           or not
                                                       (note 3)      (note 4)   Company                          for
                                                                                to the total                 related-par
                                                                                profit (%)                       ty
                                                                                                             transaction
                                                                                                                 s)
    Zhang         34.09296                    The         The equity                                             Inapplicabl 24 May         Announce
                                  1,235                             Naught           0.00% No
    Yingchun % equity                        relevant    acquisition                                            e             2014         ment title:
                                                                                 2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
             interests of                 assets           would not                                                                        Announce
             Suzhou                       were all         affect the                                                                       ment on
             Mont                         transferred business                                                                              Acquisitio
             Lighting                     in.              continuity                                                                       n of Some
             Co., Ltd.                                     and                                                                              Equity
                                                           manageme                                                                         Interests of
                                                           nt stability                                                                     and
                                                           of the                                                                           Increasing
                                                           Company.                                                                         the
                                                                                                                                            Investment
                                                                                                                                            in Suzhou
                                                                                                                                            Mont
                                                                                                                                            Lighting
                                                                                                                                            Co., Ltd.;
                                                                                                                                            Announce
                                                                                                                                            ment No.:
                                                                                                                                            2014-023;
                                                                                                                                            Website of
                                                                                                                                            disclosure:
                                                                                                                                            http://www
                                                                                                                                            .cninfo.co
                                                                                                                                            m.cn2. Sale of assets√ Applicable □ Inapplicable
                                                                                                       Relation
                                                 Net
                                                                      Ratio of                           ship
                                                profit                                                             Whether
                                                                        the net                        between
                                            contribu                                                                 or not Whether
                                                                        profit                           the
                                                ted by                                                                 the     or not
                                 Transact                  Influenc contribu                           transacti                the
                                            the asset                                                              ownersh creditor’
                                   ion                     e of the     ted to                Related- on party
                                            from the                                                               ip of the s right
    Transact                          price                    sale on        the       Pricing    party   and the                  and             Disclos
            Asset      Date of              period-b                                                                  asset liabilitie Disclos
    ion                             (RMB                       the      Compan principl transacti Compan                                            ure
             sold        sale                   egin to                                                             involve       s    ure date
    party                             Ten                     Compan y by the               e     on or      y                  involved            index
                                            the date                                                                 d has     have
                                 thousan                   y (note       asset                  not    (applica
                                                of sale                                                               been     been
                                    d)                        3)        sale to                         ble for                fully
                                                (RMB                                                                  fully transferr
                                                                      the total                        related-
                                                 Ten                                                               transferr     ed
                                                                        profit                          party
                                            thousan                                                                     ed
                                                                          (%)                          transacti
                                                  d)
                                                                                                         ons)
           15.38%                                          The sale                With the                                                    Name of
                                                                                                       Inapplic                      14 Jun.
           equity                                        0 of the         0.00% assessm No                         No        No                announc
                                                                                                       able                          2014
           interests                                       equity                  ent                                                         ement:
                                                                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
           of                                    would                result as                                              Announ
           Guangz                                not                  the                                                    cement
           hou                                   affect               pricing                                                on
           Pearl                                 the                  base                                                   Transfer
           River                                 business                                                                    the
           Asset                                 continui                                                                    Equity
           Manage                                ty and                                                                      of
           ment                                  manage                                                                      Guangz
           Co.,                                  ment                                                                        hou
           Ltd.                                  stability                                                                   Pearl
                                                 of the                                                                      River
                                                 Compan                                                                      Asset
                                                 y.                                                                          Manage
                                                                                                                             ment
                                                                                                                             Co.,
                                                                                                                             Ltd.;
                                                                                                                             Announ
                                                                                                                             cement
                                                                                                                             No.:
                                                                                                                             2014-02
                                                                                                                             8;
                                                                                                                             Disclos
                                                                                                                             ure
                                                                                                                             website:
                                                                                                                             www.cn
                                                                                                                             info.co
                                                                                                                             m.cn3. Business combination□ Applicable √ InapplicableNo business combination occurred to the Company during the reporting period.VI. Implementation of equity incentive and its influence□ Applicable √ InapplicableThe Company did not make or carry out any equity incentive plan during the reporting period.VII. Significant related-party transactions1. Related-party transactions concerning routine operation√ Applicable □ Inapplicable
    Related        Relation   Type of   Contents   Pricing      Transacti Transacti Proportio Method Obtainable Disclosu Disclosur
                                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    transactio                    the           of the   principle      on          on        n in the       of        market      re date    e index
    n party                  transactio transactio                  price(RM amount           total     settlement price for
                                n             n                   B Ten       (RMB       amounts                     the
                                                                 thousand)     Ten          of                   transaction
                                                                             thousand) transactio                of the same
                                                                                         ns of the               kind (RMB
                                                                                         same kind                  Ten
                                                                                            (%)                  thousand)
                          Purchasin
                          g
             Legal
                          productsProsperity person
                          and
    Lamps & that held                      Purchase
                          receiving                  Market                                          Remittanc                 25 Apr. www.cnin
    Compone over 5%                        of                        177.53         177.53      0.19%                 177.53
                          labor                      price                                           e                         2014      fo.com.cn
    nts          shares of                 materials
                          service
    Limited      the
                          from the
             Company
                          related
                          party
                          Purchasin
                          g
             A
                          products
             company
    Prosperity                and
             controlled                Purchase
    Electrical                receiving                  Market                                          Remittanc                 25 Apr. www.cnin
             by the                    of                        1,428.74     1,428.74      1.49%                 1,428.74
    (China)                   labor                      price                                           e                         2014      fo.com.cn
             related                   materials
    Co., Ltd.                 service
             natural
                          from the
             person
                          related
                          party
                          Purchasin
                          g
             A
    Hangzhou                  products
             company
    Times                     and
             controlled                Purchase
    Lighting                  receiving                  Market                                          Remittanc                 25 Apr. www.cnin
             by the                    of                        148.03         148.03      0.15%                 148.03
    and                       labor                      price                                           e                         2014      fo.com.cn
             related                   materials
    Electrical                service
             natural
    Co., Ltd.                 from the
             person
                          related
                          party
    Hangzhou A                Selling
    Times        company products
    Lighting controlled and                Sale of       Market                                          Remittanc                 25 Apr. www.cnin
                                                                 0.24             0.24      0.00%                 0.24
    and          by the       providing products price                                                   e                         2014      fo.com.cn
    Electrical related        labor
    Co., Ltd. natural         service to
                                                                 2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
             person    the
                       related
                       party
                       Selling
             Legal     products
    Prosperity person      andLamps & that held providing
                                    Sale of    Market                                    Remittanc              25 Apr. www.cnin
    Compone over 5%        labor                            1,986.03    1,986.03     1.30%               1,986.03
                                    products price                                       e                      2014    fo.com.cn
    nts          shares of service to
    Limited      the       the
             Company related
                       party
                       Selling
    Prosperity A           products(Hangzho company and
    u)           controlled providing
                                    Sales of   Market                                    Remittanc              25 Apr. www.cnin
    Lighting by the        labor                            368.78        368.78     0.24%               368.78
                                    products price                                       e                      2014    fo.com.cn
    and          related   service to
    Electrical natural     the
    Co., Ltd. person       related
                       parties
                       Selling
             A         products
             company andProsperity
             controlled providing
    Electrical                          Sales of   Market                                    Remittanc              25 Apr. www.cnin
             by the    labor                            24.54          24.54     0.02%               24.54
    (China)                             products price                                       e                      2014    fo.com.cn
             related   service toCo., Ltd.
             natural   the
             person    related
                       parties
             An
             acting-in- Selling
             concert   products
             party of a andOSRAM
             legal     providing
    (China)                             Sales of   Market                                    Remittanc              25 Apr. www.cnin
             person    labor                            466.34        466.34     0.31%               466.34
    Lighting                            products price                                       e                      2014    fo.com.cn
             that held service toCo., Ltd.
             over 5%   the
             shares of related
             the       parties
             Company
    Osram        An        Selling
                                    Sales of   Market                                    Remittanc              25 Apr. www.cnin
    Asia         acting-in- products                        1,816.03    1,816.03     1.19%               1,816.03
                                    products price                                       e                      2014    fo.com.cn
    Pacific      concert   and
                                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Ltd.       party of a providing
           legal           labor
           person          service to
           that held the
           over 5%         related
           shares of parties
           the
           Company
    Total                                                      --        --       6416.26      --        --                     --        --
    Details of large-amount refunds                        Naught
                                                       On 28 May 2014, the Company convened the 2013 Annual Shareholders’ General
    Where    the     total    amount        of   routine
                                                       Meeting, at which the “Proposal on the Routine Related-party Transactions for 2014”related-party transactions to occur in the
                                                       was reviewed and approved. It was estimated that the amount of routine transactionsreporting period had been predicted by
                                                       with related parties in 2014 would stand at RMB 185.35 million. In the reportingtype, give the actual execution in the
                                                       period, the actual amount of purchase from related parties was RMB 17.543 millionreporting period (if any)
                                                       and that of sale to related parties was RMB 46.6196 million.
    Explanation      on      significant     differencebetween the transaction price and the Inapplicablemarket price (if any).2. Related-party transactions arising from acquisition and sale of assets□ Applicable √ InapplicableNo related-party transaction arising from acquisition and sale of assets occurred to the Company during thereporting period.3. Related-party transactions arising from joint investment in external parties□ Applicable √ InapplicableNo related-party transaction arising from joint investment in external parties occurred to the Company during thereporting period.4. Credits and liabilities with related parties□ Applicable √ InapplicableNo credit or liability occurred to the Company and related parties during the reporting period.5. Other significant related-party transactions□ Applicable √ InapplicableNo other significant related-party transactions occurred to the Company during the reporting period.
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.VIII. Occupation of the Company’s funds for non-operating purposes by the controllingshareholder and its related parties□ Applicable √ InapplicableThe controlling shareholder or its related parties did not occupy the Company’s funds for non-operating purposesduring the reporting period.IX. Significant contracts and fulfillment thereof1. Trusteeship, contracting and leasing(1) Trusteeship□ Applicable √ InapplicableThe Company did not make any entrustment in the reporting period.(2) Contracting□ Applicable √ InapplicableNo contracting occurred to the Company in the reporting period.(3) Leasing√ Applicable □ InapplicableParticulars about the leasing:The Company and Shanghai Jiabao Industry & Commerce (Group) Co., Ltd. (hereinafter referred to as “ShanghaiJiabao) signed , where Shanghai Jiabao agreed to license the Company toexclusively use its trademarks “Hu Zi” (registration No.: 100940), “Lian He” (registration No.: 100950) and “LianHe” (registration No.: 3603597) from 1 Jan. 2014 to 31 Dec. 2016; and the Company shall pay to Shanghai Jiabao1% of the net sales of products produced by the Company and carrying the licensed trademarks as the license fee,but it shall not be less than RMB 1 million per year (for details, see the “Announcement No. 2014-002 on Signing” disclosed on http://www.cninfo.com.cn dated 9 Jan. 2014).Any leasing event incurring gain/loss reaching more than 10% of the total profits of the Company in the reportingperiod□ Applicable √ InapplicableNo leasing event incurred gain/loss reaching more than 10% of the total profits of the Company in the reportingperiod.2. Guarantees provided by the company□ Applicable √ InapplicableThe Company did not provide any guarantee in the reporting period.
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.(1) Illegal provision of guarantees for external parties□ Applicable √ InapplicableThe Company did not illegally provide any guarantee for any external party in the reporting period.3. Other significant contracts□ Applicable √ InapplicableThere was no other significant contract of the Company in the reporting period.4. Other significant transactions□ Applicable √ InapplicableThere was no other significant transaction of the Company in the reporting period.X. Commitments made by the Company or any shareholder holding over 5% of theCompany’s shares in the reporting period or such commitments carried down into thereporting period□ Applicable √ InapplicableNo such commitments in the reporting period.XI. Engagement and disengagement of the CPAs firmHas the semi-annual financial report been audited?□ Yes √ NoXII. Punishments and rectifications□ Applicable √ InapplicableNo punishments or rectifications in the reporting period.XIII. Delisting risk due to violation of any law or regulation□ Applicable √ InapplicableNo such risk in the reporting period.XIV. Other significant events□ Applicable √ InapplicableNo other significant event in the reporting period that needs to be explained.
                                                               2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                        Section VI. Change in Shares & ShareholdersI. Change in shares
                                                                                                                        Unit: Share
                              Before the change                    Increase/decrease (+, -)                     After the change
                                                                         Capitalizat
                                          Percentag   New       Bonus       ion of                                         Percentag
                              Number                                                    Other      Subtotal    Number
                                             e        shares    shares     capital                                            e
                                                                           reserve
                             135,203,3                                                                         135,208,4
                                            13.82%                                        5,025       5,025                  13.82%
    I. Restricted shares                81                                                                               063. Shares held by other
                             3,387,696       0.35%                                        5,025       5,025 3,392,721         0.35%domestic investorsAmong which: shares held
                             3,057,918       0.31%                                                             3,057,918      0.31%by domestic corporationsShares held by domestic
                               329,778       0.03%                                        5,025       5,025     334,803       0.03%natural persons
    4. Shares held by foreign 131,815,6                                                                            131,815,6
                                            13.47%                                                                           13.47%
    investors                           85                                                                               85
    Among which: Shares held 131,815,6                                                                             131,815,6
                                            13.47%                                                                           13.47%
    by foreign corporations             85                                                                               85
                             843,360,3                                                                         843,355,3
                                            86.18%                                        -5,025      -5,025                 86.18%
    II. Non-restricted shares           64                                                                               39
                             618,139,3                                                                         618,134,3
                                            63.17%                                        -5,025      -5,025                 63.17%
    1. RMB ordinary shares              27                                                                               02
    2.   Domestically      listed 225,221,0                                                                        225,221,0
                                            23.02%                                                                           23.02%
    foreign shares                      37                                                                               37
                             978,563,7                                                                         978,563,7
    III. Total shares                          100.00%                                                                          100.00%
                                    45                                                                               45Reason for the change in shares:√ Applicable □ InapplicableIn the reporting period, Chen Yu was hired as a vice GM of the Company, 75% of whose 6,700 shares in theCompany were thus locked up according to regulations. As such, the restricted shares increased by 5,025 shares.Approval of share changes□ Applicable √ InapplicableTransfer of share ownership□ Applicable √ Inapplicable
                                                                  2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.Effects of changes in shares on the basic EPS, diluted EPS, net assets per share attributable to commonshareholders of the Company and other financial indexes over the last year and the last reporting period□ Applicable √ InapplicableOther contents that the Company considers necessary or is required by the securities regulatory authorities todisclose□ Applicable √ InapplicableChange of the total shares, shareholder structure, asset structure and liability structure□ Applicable √ InapplicableII. Total number of shareholders and their shareholdings
                                                                                                                                     Unit: share
                                                                    Total number of preferred share
    Total     number   of   common                                      holders who had resumed their
    shareholders at the end of the                             120,845 voting right at the end of the                                              0
    reporting period                                                    reporting period (if any) (see
                                                                    note 8)
                         Shareholdings of shareholders holding more than 5% shares or top 10 shareholders
                                                                            Increase                                Pledged or frozen shares
                                                                            /decreas                Number
                                                            Number of                  Number
                                                                              e of                    of
                                                           shares held at                 of
    Name of             Nature of        Shareholding                      shares                  non-rest
                                                           the end of the              restricte                                     Number of
    shareholder         shareholder       percentage (%)                    during                   ricted       Status of shares
                                                             reporting                 d shares                                       shares
                                                                              the                   shares
                                                              period                     held
                                                                            reportin                 held
                                                                            g periodOSRAM Holding
                                                                                       131,815
    Company             Foreign corporation          13.47%     131,815,685 0                                     0
                                                                                           ,685LimitedProsperity Lamps
                                                                                                    102,751
    &       Components Foreign corporation           10.50%     102,751,648 0                       0
                                                                                                        ,648LimitedChinaConstruction
                    Domestic
    Bank-Fortune                                                                                        16,159,
                    non-state-owned               1.65%      16,159,651                         0
    SGAM Industrial                                                                                         651
                    corporationSelected StockFundEssence
    International                                                                                       13,809,
                    Foreign corporation           1.41%      13,809,268 711191                  0
    Securities (Hong                                                                                        268Kong) Co., Ltd.
                                                                      2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.East Asia
    Securities                                                                                          9,527,0
                     Foreign corporation                 0.97%     9,527,080 0                  0
    Company                                                                                                  80LimitedBank of
    China-Invesco        Domestic
                                                                                                    9,328,3
    Great Wall           non-state-owned                     0.95%     9,328,356                    0
                                                                                                         56
    Dingyi Stock         corporationOpen-ended FundChinaConstruction
                     Domestic
    Bank-China                                                                                          8,568,6
                     non-state-owned                     0.88%     8,568,664                    0
    Advantage                                                                                                64
                     corporationGrowth StockFund
                                                                                                    8,324,1
    Zhuang Jianyi        Foreign individual                  0.85%     8,324,132 0                  0
                                                                                                         32
    Merrill Lynch                                                                                       8,240,1
                     Foreign corporation                 0.84%     8,240,154                    0
    International                                                                                            54DBS
    Vickers(Hong                                                                   -478982              7,881,9
                     Foreign corporation                 0.81%     7,881,913                    0
    Kong) Ltd A/C                                                                  8                         13Clients
    Strategic       investor       or    general
    corporation     becoming        a   top   ten
                                                Naughtshareholder due to placing of newshares (if any) (see Note 3)
                                                Among the top ten shareholders of the Company, Prosperity Lamps & ComponentsExplanation on associated relationship Limited and Zhuang Jianyi were related parties and acting-in-concert parties. Apart fromor/and persons acting in concert among that, it’s unknown whether there was any associated relationship among other shareholders
    the above-mentioned shareholders                of the top ten shareholders, or whether there is any action-in-concert among them
                                                regarding to Administrative Measures on Acquisition of Listed Companies.
                                    Shareholdings of the top ten shareholders holding non-restricted shares
                                                    Number of non-restricted shares held at the                   Type of shares
            Name of shareholder
                                                                    period-end                                 Type           Number
    Prosperity      Lamps      &    Components                                                             RMB ordinary
                                                                                         102,751,648                          102,751,648
    Limited                                                                                                share
    China Construction Bank-Fortune                                                                        RMB ordinary
                                                                                          16,159,651                               16,159,651
    SGAM Industrial Selected Stock Fund                                                                    share
                                                                                                       DomesticallyEssence International Securities (Hong
                                                                                          13,809,268 listed foreign                13,809,268Kong) Co., Ltd.
                                                                                                       share
                                                                                                       Domestically
    East Asia Securities Company Limited                                                       9,527,080                                9,527,080
                                                                                                       listed foreign
                                                                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                   share
    Bank of China-Invesco Great Wall                                                                   RMB ordinary
                                                                                       9,328,356                             9,328,356
    Dingyi Stock Open-ended Fund                                                                       share
    China Construction Bank-China                                                                      RMB ordinary
                                                                                       8,568,664                             8,568,664
    Advantage Growth Stock Fund                                                                        share
                                                                                                   Domestically
    Zhuang Jianyi                                                                          8,324,132 listed foreign              8,324,132
                                                                                                   share
                                                                                                   Domestically
    Merrill Lynch International                                                            8,240,154 listed foreign              8,240,154
                                                                                                   share
                                                                                                   DomesticallyDBS Vickers(Hong Kong) Ltd A/C
                                                                                       7,881,913 listed foreign              7,881,913Clients
                                                                                                   shareBank of Communications-Fortis
                                                                                                   RMB ordinary
    Haitong Selected Securities Investment                                                 7,254,510                             7,254,510
                                                                                                   shareFundExplanation on associated relationship
                                             Among the top ten shareholders of the Company, Prosperity Lamps & Componentsor/and persons acting in concert among
                                             Limited and Zhuang Jianyi were related parties and acting-in-concert parties. Apart fromthe top ten tradable shareholders and
                                             that, it’s unknown whether there was any associated relationship among other shareholders
    between     the    top    ten     tradable
                                             of the top ten shareholders, or whether there is any action-in-concert among them
    shareholders      and    the     top   ten
                                             regarding to Administrative Measures on Acquisition of Listed Companies.shareholdersExplanation on the top 10 shareholdersparticipating in the margin trading Naughtbusiness (if any) (see Note 4)Did any shareholder of the Company carry out an agreed buy-back in the reporting period?□ Yes √ NoNo shareholder of the Company carried out any agreed buy-back in the reporting period.III. Change of the controlling shareholder or the actual controllerChange of the controlling shareholder in the reporting period□ Applicable √ InapplicableThe controlling shareholder of the Company did not change in the reporting period.Change of the actual controller in the reporting period□ Applicable √ InapplicableThe actual controller of the Company did not change in the reporting period.
                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.IV. Any shareholding increase plan proposed or implemented by any shareholder or itsact-in-concert party during the reporting period□ Applicable √ InapplicableTo the best knowledge of the Company, no shareholder or its act-in-concert party proposed or implemented anyshareholding increase plan during the reporting period.
                            2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
               Section VII. Preferred SharesInapplicable
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Section VIII. Directors, Supervisors & Senior Management StaffI. Change of shareholdings of directors, supervisors and senior management staff□ Applicable √ InapplicableThere was no change in the shareholdings of directors, supervisors and senior management staff in the reportingperiod. For details, please refer to the 2013 Annual Report.II. Change of directors, supervisors and senior management staff√ Applicable □ Inapplicable
    Name           Position        Type               Date                                Reason
                                                                      Hired by the Board of Directors as a vice
    Chen Yu         Vice GM         Hired         13 May 2014
                                                                      GM
                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                           Section IX. Financial ReportI. Audit reportHas this semi-annual report been audited?□ Yes √ NoThe semi-annual financial report has not been audited.II. Financial statementsCurrency unit for the statements in the notes to these financial statements: RMB Yuan1. Consolidated balance sheetPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                        Unit: RMB Yuan
                    Item                           Closing balance                          Opening balanceCurrent Assets:
    Monetary funds                                               861,415,714.44                              897,675,824.22
    Settlement reserves
    Intra-group lendings
    Transactional financial assets                                      998,152.00                              3,903,197.90
    Notes receivable                                             231,892,346.49                              154,142,432.66
    Accounts receivable                                          522,173,015.03                              390,216,735.62
    Accounts paid in advance                                       74,912,388.57                              24,054,319.34
    Premiums receivable
    Reinsurance premiums receivable
    Receivable       reinsurance         contractreserves
    Interest receivable                                                1,306,965.54                             1,304,200.33
    Dividends receivable
    Other accounts receivable                                      19,478,412.05                              24,145,083.88
    Financial     assets     purchased     underagreement to resell
    Inventories                                                  584,168,210.52                              516,804,156.44
    Non-current assets due within 1 year
    Other current assets                                               9,008,826.87                             9,408,829.51
    Total current assets                                          2,305,354,031.51                           2,021,654,779.90Non-current assets:
    Entrustment      loans     and   advancesgranted
    Available-for-sale financial assets                            59,808,790.72                              62,634,402.88
                                              2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Held-to-maturity investments
    Long-term accounts receivable
    Long-term equity investments                      483,662,974.53                              492,153,947.39
    Investing properties                                         0.00                                        0.00
    Fixed assets                                      451,568,075.10                              472,740,489.84
    Construction in progress                           94,422,223.49                               75,044,472.56
    Engineering materials
    Disposal of fixed assets
    Production biological assets
    Oil-gas assets
    Intangible assets                                 191,140,283.87                              173,234,598.73
    R&D expense
    Goodwill                                            6,603,743.83
    Long-term deferred expenses
    Deferred income tax assets                         29,056,163.52                               28,924,666.74
    Other non-current assets                           51,429,822.41                               47,394,194.81
    Total non-current assets                          1,367,692,077.47                            1,352,126,772.95
    Total assets                                      3,673,046,108.98                            3,373,781,552.85Current liabilities:
    Short-term borrowings
    Borrowings from the Central Bank
    Customer bank deposits and due tobanks and other financial institutions
    Intra-group borrowings
    Transactional financial liabilities
    Notes payable
    Accounts payable                                  506,823,920.43                              270,968,881.44
    Accounts received in advance                       57,304,411.41                               45,620,298.34
    Financial assets sold for repurchase
    Handling charges and commissionspayable
    Payroll payable                                    54,711,416.32                               60,636,740.85
    Taxes and fares payable                            44,456,205.21                               19,571,121.78
    Interest payable
    Dividends payable
    Other accounts payable                             25,343,778.09                               35,613,570.14
    Reinsurance premiums payable
    Insurance contract reserves
    Payables for acting trading of securities
    Payables for acting underwriting ofsecurities
    Non-current liabilities due within 1year
                                                                   2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Other current liabilities
    Total current liabilities                                                 688,639,731.46                              432,410,612.55Non-current liabilities:
    Long-term borrowings
    Bonds payable
    Long-term payables
    Specific payables
    Projected liabilities
    Deferred income tax liabilities                                             4,470,340.29                               4,891,338.97
    Other non-current liabilities                                              10,982,550.93                             11,092,550.73
    Total non-current liabilities                                                15,452,891.22                             15,983,889.70
    Total liabilities                                                         704,092,622.68                              448,394,502.25Owners’ equity (or shareholders’ equity)
    Paid-up capital (or share capital)                                      978,563,745.00                              978,563,745.00
    Capital reserves                                                        615,192,336.87                              617,594,107.21
    Less: Treasury stock
    Specific reserves                                                                   0.00
    Surplus reserves                                                        622,494,531.96                              622,494,531.96
    Provisions for general risks
    Retained profits                                                        704,318,477.82                              671,929,537.57
    Foreign exchange differenceTotal equity attributable to owners of the
                                                                        2,920,569,091.65                            2,890,581,921.74Company
    Minority interests                                                           48,384,394.65                             34,805,128.86
    Total owners’ (or shareholders’) equity                               2,968,953,486.30                            2,925,387,050.60
    Total    liabilities     and    owners’    (or
                                                                        3,673,046,108.98                            3,373,781,552.85shareholders’) equity
    Legal representative: Pan Jie               Chief of the accounting work: Pan Jie        Chief of the accounting organ: Yin Jianchun2. Balance sheet of the CompanyPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                                   Unit: RMB Yuan
                       Item                                Closing balance                             Opening balanceCurrent Assets:
    Monetary funds                                                          552,886,955.79                              581,390,386.39
    Transactional financial assets                                               998,152.00                                3,903,197.90
    Notes receivable                                                        227,817,682.74                              153,942,432.66
    Accounts receivable                                                     535,077,480.13                              428,330,282.09
    Accounts paid in advance                                                   61,726,024.05                             29,435,327.20
    Interest receivable
    Dividends receivable
                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Other accounts receivable                     78,223,792.61                               71,612,354.13
    Inventories                                  533,544,216.28                              472,321,376.79
    Non-current assets due within 1 year
    Other current assets                           3,294,297.36                                 3,790,803.20
    Total current assets                         1,993,568,600.96                            1,744,726,160.36Non-current assets:
    Available-for-sale financial assets           59,808,790.72                               62,634,402.88
    Held-to-maturity investments
    Long-term accounts receivable
    Long-term equity investments                 925,612,914.29                              909,743,887.15
    Investing properties
    Fixed assets                                 351,599,247.91                              370,702,024.40
    Construction in progress                      92,506,898.67                               74,051,205.53
    Engineering materials                                                                               0.00
    Disposal of fixed assets
    Production biological assets
    Oil-gas assets
    Intangible assets                            127,533,077.27                              129,859,177.45
    R&D expenses
    Goodwill
    Long-term deferred expenses
    Deferred income tax assets                    26,338,798.56                               26,102,706.56
    Other non-current assets                      48,051,050.35                               47,394,194.81
    Total non-current assets                     1,631,450,777.77                            1,620,487,598.78
    Total assets                                 3,625,019,378.73                            3,365,213,759.14Current liabilities:
    Short-term borrowings
    Transactional financial liabilities
    Notes payable
    Accounts payable                             509,639,490.17                              321,372,591.12
    Accounts received in advance                  55,059,878.54                               45,547,349.36
    Payroll payable                               53,719,125.55                               60,356,477.70
    Taxes and fares payable                       35,892,224.15                               13,335,938.26
    Interest payable
    Dividends payable
    Other accounts payable                        80,049,313.90                               60,963,050.92
    Non-current liabilities due within 1year
    Other current liabilities
    Total current liabilities                      734,360,032.31                              501,575,407.36Non-current liabilities:
    Long-term borrowings
    Bonds payable
                                                                      2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Long-term payables
    Specific payables
    Projected liabilities                                                                                                            0.00
    Deferred income tax liabilities                                               4,470,340.29                               4,891,338.97
    Other non-current liabilities                                               10,130,050.79                               10,162,550.77
    Total non-current liabilities                                                 14,600,391.08                               15,053,889.74
    Total liabilities                                                           748,960,423.39                              516,629,297.10
    Owners’      equity      (or     shareholders’equity)
    Paid-up capital (or share capital)                                        978,563,745.00                              978,563,745.00
    Capital reserves                                                          612,287,406.19                              614,689,176.53
    Less: Treasury stock
    Specific reserves                                                                                                                0.00
    Surplus reserves                                                          622,494,531.96                              622,494,531.96
    Provisions for general risks
    Retained profits                                                          662,713,272.19                              632,837,008.55
    Foreign exchange difference
    Total owners’ (or shareholders’) equity                                  2,876,058,955.34                           2,848,584,462.04
    Total     liabilities    and     owners’   (or
                                                                           3,625,019,378.73                           3,365,213,759.14shareholders’) equity
    Legal representative: Pan Jie               Chief of the accounting work: Pan Jie         Chief of the accounting organ: Yin Jianchun3. Consolidated income statementPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                                      Unit: RMB Yuan
                        Item                                 Reporting period                         Same period of last year
    I. Operating revenues                                                     1,543,058,758.03                            1,208,260,446.06
    Including: Sales income                                                   1,543,058,758.03                            1,208,260,446.06
          Interest income
          Premium income
          Handling             charge       andcommission income
    II. Operating costs                                                       1,336,550,333.42                            1,075,626,585.36
    Including: Cost of sales                                                  1,156,217,280.15                              925,675,209.12
          Interest expenses
          Handling             charge       andcommission expenses
          Surrenders
          Net claims paid
          Net amount withdrawn for theinsurance contract reserve
                                                                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
        Expenditure on policy dividends
        Reinsurance expenses
        Business tax and surtaxes                                          15,129,954.30                               13,697,631.32
        Selling expenses                                                   62,967,912.93                               44,431,240.08
        Administrative expenses                                           104,495,339.45                               77,932,401.53
        Financial expenses                                                  -5,733,347.63                               -3,963,817.89
        Asset impairment loss                                                3,473,194.22                              17,853,921.20Add: Gain/(loss) from change in fair
                                                                             1,115,756.46                                  -69,701.45value (“-” for loss)
    Gain/(loss) from investment (“-”
                                                                           18,115,405.78                                  -945,061.26for loss)Including: share of profits in associates
                                                                            -2,310,773.80                                 -301,861.76and joint venturesForeign exchange gains (“-” for loss)
    III. Operating profits (“-” for loss)                                   225,739,586.85                              131,619,097.99
    Add: non-operating income                                               3,294,367.06                              71,680,160.17
    Less: non-operating expense                                              115,455.48                               10,700,438.83Including: loss from non-current asset
                                                                              109,843.02                                   908,276.06disposal
    IV. Total profits (“-” for loss)                                        228,918,498.43                              192,598,819.33
    Less: Income tax expense                                              41,689,863.95                               39,614,342.25
    V. Net profit (“-” for loss)                                            187,228,634.48                              152,984,477.08
    Including: Net profit achieved by
    combined         parties        before    thecombinations
    Attributable to owners of the
                                                                          188,959,139.45                              153,047,291.37Company
    Minority shareholders’ income                                         -1,730,504.97                                  -62,814.29
    VI. Earnings per share                                             --                                          --
    (I) Basic earnings per share                                                  0.1931                                      0.1564
    (II) Diluted earnings per share                                               0.1931                                      0.1564
    Ⅶ. Other comprehensive incomes                                             -2,401,770.34                               -3,802,803.04
    Ⅷ. Total comprehensive incomes                                           184,826,864.14                              149,181,674.04
    Attributable to owners of the
                                                                          186,557,369.11                              149,244,488.33Company
    Attributable          to        minority
                                                                            -1,730,504.97                                  -62,814.29shareholders
    Legal representative: Pan Jie              Chief of the accounting work: Pan Jie        Chief of the accounting organ: Yin Jianchun
                                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.4. Income statement of the CompanyPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                                         Unit: RMB Yuan
                     Item                                      Reporting period                          Same period of last year
    I. Sales income                                                              1,570,233,178.58                             1,223,393,705.32
      Less: cost of sales                                                    1,211,678,092.30                              960,725,666.05
            Business tax and surtaxes                                           11,194,128.07                                11,627,281.00
            Selling expenses                                                    60,991,976.26                                43,727,705.08
            Administrative expenses                                             89,859,368.24                                73,053,854.25
            Financial costs                                                       -1,916,558.81                                -621,497.90
            Asset impairment loss                                                 2,949,407.02                               16,165,237.79
      Add: gain/(loss) from change in
                                                                                  1,115,756.46                                  -69,701.45fair value (“-” for loss)
            Gain/(loss) from investment
                                                                                23,003,450.66                                -2,324,333.77(“-” for loss)
            Including:        income         form
    investment on associates and joint                                                -2,310,773.80                                -301,861.76ventures
    II. Operating profits (“-” for loss)                                        219,595,972.62                                116,321,423.83
      Add: non-operating income                                                   3,124,825.27                               71,489,414.54
      Less: non-operating expense                                                     66,956.52                               9,340,695.22
              Including:       loss          from
                                                                                      61,753.86                                 908,276.06non-current asset disposal
    III. Total profits (“-” for loss)                                           222,653,841.37                               178,470,143.15
      Less: income tax expense                                                  36,207,378.53                                34,154,458.36
    IV. Net profit (“-” for loss)                                               186,446,462.84                               144,315,684.79
    V. Earnings per share                                                  --                                           --
      (I) Basic earnings per share
      (II) Diluted earnings per share
    VI. Other comprehensive income                                                    -2,401,770.34                              -3,802,803.04
    VII. Total comprehensive income                                               184,044,692.50                               140,512,881.75
    Legal representative: Pan Jie                 Chief of the accounting work: Pan Jie         Chief of the accounting organ: Yin Jianchun5. Consolidated cash flow statementPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                                         Unit: RMB Yuan
                     Item                                      Reporting period                          Same period of last yearI. Cash flows from operating activities:
    Cash      received       from      sale     of
                                                                            1,333,941,842.20                              1,172,739,056.38commodities and rendering of service
                                                2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Net      increase     of    deposits   fromcustomers and dues from banks
    Net increase of loans from the centralbank
    Net increase of funds borrowed fromother financial institutions
    Cash received from premium oforiginal insurance contracts
    Net cash received from reinsurancebusiness
    Net increase of deposits of policyholders and investment fund
    Net increase of disposal of tradablefinancial assets
    Cash received from interest, handlingcharges and commissions
    Net        increase        of   intra-groupborrowings
    Net increase of funds in repurchasebusiness
    Tax refunds received                                 34,520,178.28                                 4,267,457.30
    Other cash received relating to
                                                       14,364,024.05                               31,153,008.64operating activitiesSubtotal of cash inflows from operating
                                                    1,382,826,044.53                            1,208,159,522.32activities
    Cash paid for goods and services                    802,239,813.12                              736,896,903.91
    Net increase of customer lendingsand advances
    Net increase of funds deposited in thecentral bank and amount due frombanks
    Cash for paying claims of the originalinsurance contracts
    Cash for paying interest, handlingcharges and commissions
    Cash for paying policy dividends
    Cash paid to and for employees                      264,418,513.80                              207,027,929.97
    Various taxes paid                                  105,888,683.00                              145,930,301.44
    Other cash payment relating to
                                                       71,837,267.84                              106,592,134.39operating activities
    Subtotal     of    cash      outflows    from
                                                    1,244,384,277.76                            1,196,447,269.71operating activities
    Net cash flows from operating activities              138,441,766.77                               11,712,252.61
                                                     2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.II. Cash flows from investing activities:
    Cash received from withdrawal of
                                                            45,630,194.24                               41,710,000.00investments
    Cash       received       from    return    on
                                                            22,174,444.40                                 1,365,712.54investments
    Net cash received from disposal of
    fixed assets, intangible assets and other                                                               24,189,200.00long-term assets
    Net cash received from disposal ofsubsidiaries or other business units
        Other cash received relating toinvesting activities
          Subtotal of cash inflows from
                                                            67,804,638.64                               67,264,912.54investing activities
    Cash paid to acquire fixed assets,
    intangible assets and other long-term                       38,813,026.30                               41,936,669.95assets
    Cash paid for investment                                 38,823,057.64
    Net increase of pledged loans
    Net cash paid to acquire subsidiaries
                                                            11,512,886.32and other business units
    Other cash payments relating toinvesting activities
    Subtotal        of    cash    outflows        from
                                                            89,148,970.26                               41,936,669.95investing activities
    Net cash flows from investing activities                   -21,344,331.62                               25,328,242.59
    III.     Cash        flows    from    financingactivities:
       Cash      received      from       capitalcontributions
       Including:      Cash    received       fromminority shareholder investments bysubsidiaries
       Cash received from borrowings
       Cash received from issuance ofbonds
       Other cash received relating to
                                                                  2,452.04financing activitiesSubtotal of cash inflows from financing
                                                                  2,452.04                                        0.00activities
       Repayment of borrowings
       Cash paid for interest expenses and
                                                           149,551,837.14                              284,036,742.40distribution of dividends or profit
                                                                      2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Including: dividends or profit paidby subsidiaries to minority shareholders
    Other cash payments relating to
                                                                                2,034,300.00financing activities
    Sub-total     of   cash     outflows       from
                                                                            151,586,137.14                                284,036,742.40financing activities
    Net cash flows from financing activities                                   -151,583,685.10                               -284,036,742.40IV. Effect of foreign exchange rate
                                                                                -1,773,859.83                              -2,050,576.88changes on cash and cash equivalentsV. Net increase in cash and cash
                                                                             -36,260,109.78                              -249,046,824.08equivalents
    Add: Opening balance of cash and
                                                                            897,675,824.22                                985,450,890.74cash equivalentsVI. Closing balance of cash and cash
                                                                            861,415,714.44                                736,404,066.66equivalents
    Legal representative: Pan Jie                Chief of the accounting work: Pan Jie        Chief of the accounting organ: Yin Jianchun6. Cash flow statement of the CompanyPrepared by Foshan Electrical and Lighting Co., Ltd.
                                                                                                                       Unit: RMB Yuan
                    Item                                     Reporting period                          Same period of last yearI. Cash flows from operating activities:
    Cash       received      from    sale      of
                                                                          1,312,983,459.34                              1,158,623,534.80commodities and rendering of service
    Tax refunds received                                                       34,520,178.28                                  4,267,457.30
    Other cash received relating to
                                                                             12,846,878.11                                 27,298,534.13operating activitiesSubtotal of cash inflows from operating
                                                                          1,360,350,515.73                              1,190,189,526.23activities
    Cash paid for goods and services                                          970,871,859.20                                796,901,956.65
    Cash paid to and for employees                                            112,196,258.40                                169,614,592.87
    Various taxes paid                                                         66,645,790.86                                123,599,675.65
    Other cash payment relating to
                                                                             66,072,257.30                                104,395,965.90operating activities
    Subtotal     of    cash    outflows        from
                                                                          1,215,786,165.76                              1,194,512,191.07operating activities
    Net cash flows from operating activities                                    144,564,349.97                                 -4,322,664.84II. Cash flows from investing activities:
    Cash received from retraction of
                                                                             45,630,194.24                                 50,330,727.49investments
    Cash       received     from    return    on
                                                                             27,062,489.28                                  1,365,712.54investments
                                                   2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Net cash received from disposal of
    fixed assets, intangible assets and other                                                             24,189,200.00long-term assets
    Net cash received from disposal ofsubsidiaries or other business units
        Other cash received relating toinvesting activities
          Subtotal of cash inflows from
                                                          72,692,683.52                               75,885,640.03investing activities
    Cash paid to acquire fixed assets,
    intangible assets and other long-term                     33,138,309.48                               40,082,349.91assets
    Cash paid for investment                               63,183,057.64                               15,000,000.00
    Net cash paid to acquire subsidiariesand other business units
    Other cash payments relating toinvesting activities
    Subtotal        of    cash    outflows    from
                                                          96,321,367.12                               55,082,349.91investing activities
    Net cash flows from investing activities                 -23,628,683.60                               20,803,290.12
    III.     Cash        flows    from    financingactivities:
       Cash      received      from      capitalcontributions
       Cash received from borrowings
       Cash received from issuance ofbonds
       Other cash received relating tofinancing activitiesSubtotal of cash inflows from financingactivities
       Repayment of borrowings
       Cash paid for interest expenses and
                                                         147,665,237.14                              284,036,742.40distribution of dividends or profit
        Other cash payments relating tofinancing activities
    Sub-total       of     cash   outflows    from
                                                         147,665,237.14                              284,036,742.40financing activities
    Net cash flows from financing activities                -147,665,237.14                             -284,036,742.40IV. Effect of foreign exchange rate
                                                          -1,773,859.83                                -2,050,576.88changes on cash and cash equivalentsV. Net increase in cash and cash
                                                         -28,503,430.60                             -269,606,694.00equivalents
                                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Add: Opening balance of cash and
                                                                                581,390,386.39                                 699,511,754.78cash equivalentsVI. Closing balance of cash and cash
                                                                                552,886,955.79                                 429,905,060.78equivalents
    Legal representative: Pan Jie               Chief of the accounting work: Pan Jie            Chief of the accounting organ: Yin Jianchun7. Consolidated Statement of Changes in Owners’ EquityPrepared by Foshan Electrical and Lighting Co., Ltd.Reporting period
                                                                                                                            Unit: RMB Yuan
                                                                                   Reporting period
                                                      Equity attributable to owners of the Company
                                       Paid-up
                                                                                                                                       Total
                Item                   capital                Less:                        General                       Minority
                                                  Capital               Specific Surplus             Retaine                          owners’
                                         (or                 treasury                       risk                Others   interests
                                                  reserve               reserve reserve              d profit                          equity
                                        share                 stock                        reserve
                                       capital)
    I. Balance at the end of the 978,563 617,594,                                    622,494             671,929,            34,805,12 2,925,387,
    previous year                          ,745.00     107.21                        ,531.96              537.57                  8.86       050.60
    Add: change of accountingpolicy
    Correction        of   errors   inprevious periods
    Other
    II. Balance at the beginning of 978,563 617,594,                                 622,494             671,929,            34,805,12 2,925,387,
    the year                               ,745.00     107.21                        ,531.96              537.57                  8.86       050.60
    III. Increase/ decrease in the                    -2,401,7                                           32,388,9            13,579,26 43,566,435
    period (“-” means decrease)                       70.34                                              40.25                  5.79             .70
                                                                                                     188,959,            -1,730,50 187,228,63
    (I) Net profit
                                                                                                      139.45                  4.97         4.48
    (II)     Other     comprehensive                -2,401,7                                                                           -2,401,770.
    incomes                                             70.34                                                                                       34
                                                  -2,401,7                                           188,959,            -1,730,50 184,826,86
    Subtotal of (I) and (II)
                                                    70.34                                             139.45                  4.97         4.14
    (III) Capital paid in and                                                                                              17,404,64 17,404,647
    reduced by owners                                                                                                             7.14             .14
    1. Capital paid in byowners
    2. Amounts of share-based
    payments           recognized     inowners’ equity
    3. Others                                                                                                           17,404,64 17,404,647
                                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                                             7.14            .14
                                                                                                    -156,57             -2,094,87 -158,665,0
    (IV) Profit distribution
                                                                                                    0,199.20                 6.38       75.58
    1.      Appropriations       tosurplus reserves
    2.      Appropriations       togeneral risk provisions
    3.      Appropriations       to                                                                -156,57             -2,094,87 -158,665,0
    owners (or shareholders)                                                                            0,199.20                 6.38       75.58
    4. Other
    (V) Internal carry-forward ofowners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3. Surplus reserves formaking up losses
    4. Other(Ⅵ) Specific reserve
    1.    Withdrawn       for   theperiod
    2. Used in the period(Ⅶ) Other
                                       978,563 615,192,                         622,494             704,318,            48,384,39 2,968,953,IV. Closing balance
                                       ,745.00     336.87                       ,531.96              477.82                  4.65     486.30Same period of last year
                                                                                                                           Unit: RMB Yuan
                                                                               Same period of last year
                                                      Equity attributable to owners of the Company
                                       Paid-up
                                                                                                                                     Total
                Item                   capital               Less:                        General                       Minority
                                                  Capital              Specific Surplus             Retaine                         owners’
                                         (or                treasury                       risk                Others   interests
                                                  reserve              reserve reserve              d profit                        equity
                                        share                stock                        reserve
                                       capital)
    I. Balance at the end of the 978,563 625,595,                                   622,494             723,452,            47,096,24 2,997,203,
    previous year                          ,745.00     757.07                       ,531.96              942.14                  3.24     219.41
    Add:                 retrospectiveadjustment due to businesscombination under the samecontrol
                                                            2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Add: change of accountingpolicy
    Correction        of   errors   inprevious periods
    Other
    II. Balance at the beginning of 978,563 625,595,                   622,494           723,452,           47,096,24 2,997,203,
    the year                               ,745.00    757.07           ,531.96            942.14                 3.24       219.41
    III. Increase/ decrease in the                   -3,802,8                             -150,30           -62,814.2 -154,173,0
    period (“-” means decrease)                      03.04                             7,469.58                   9        86.91
                                                                                     153,047,           -62,814.2 152,984,47
    (I) Net profit
                                                                                      291.37                    9         7.08
    (II)     Other     comprehensive               -3,802,8                                                           -3,802,803.
    incomes                                            03.04                                                                    04
                                                                                     153,047,           -62,814.2 149,181,67
    Subtotal of (I) and (II)
                                                                                      291.37                    9         4.04
    (III) Capital paid in andreduced by owners
    1. Capital paid in byowners
    2. Amounts of share-based
    payments           recognized     inowners’ equity
    3. Others
                                                                                      -303,35                       -303,354,7
    (IV) Profit distribution
                                                                                     4,760.95                            60.95
    1.      Appropriations       tosurplus reserves
    2. New increase of capital(or share capital) from surplusreserves
    3. Surplus reserves for                                                          -303,35                       -303,354,7
    making up losses                                                                     4,760.95                            60.95
    4. Other(V) Internal carry-forward ofowners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3. Surplus reserves formaking up losses
    4. Other
                                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.(Ⅵ) Specific reserve
    1.    Withdrawn     for     theperiod
    2. Used in the period(Ⅶ) Other
                                       978,563 621,792,                         622,494          573,145,             47,033,42 2,843,030,IV. Closing balance
                                        ,745.00      954.03                     ,531.96              472.56                8.95       132.50
    Legal representative: Pan Jie               Chief of the accounting work: Pan Jie             Chief of the accounting organ: Yin Jianchun8. Statement of changes in owners’ equity of the CompanyPrepared by Foshan Electrical and Lighting Co., Ltd.Reporting period
                                                                                                                         Unit: RMB Yuan
                                                                                  Reporting period
                                         Paid-up
                                                                      Less:                               General                   Total
                 Item                   capital (or      Capital                 Specific    Surplus                 Retained
                                                                     treasury                                 risk                 owners’
                                           share         reserve                 reserve     reserve                   profit
                                                                      stock                               reserve                   equity
                                          capital)
    I. Balance at the end of the 978,563,74 614,689,17                                          622,494,53               632,837,00 2,848,584,
    previous year                                  5.00           6.53                                1.96                     8.55       462.04
    Add: change of accountingpolicy
    Correction       of   errors     inprevious periods
    Other
    II. Balance at the beginning of 978,563,74 614,689,17                                       622,494,53               632,837,00 2,848,584,
    the year                                       5.00           6.53                                1.96                     8.55       462.04
    III. Increase/ decrease in the                         -2,401,770.                                                   29,876,263 27,474,493
    period (“-” means decrease)                                  34                                                           .64             .30
                                                                                                                     186,446,46 186,446,46
    (I) Net profit
                                                                                                                           2.84         2.84
    (II)     Other    comprehensive                      -2,401,770.                                                                -2,401,770.
    incomes                                                        34                                                                            34
                                                       -2,401,770.                                                   186,446,46 184,044,69
    Subtotal of (I) and (II)
                                                               34                                                          2.84         2.50
    (III) Capital paid in andreduced by owners
    1. Capital paid in by owners
    2. Amounts of share-basedpayments recognized in owners’equity
    3. Others
                                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                                    -156,570,1 -156,570,1
    (IV) Profit distribution
                                                                                                                         99.20       99.20
    1. Appropriations to surplusreserves
    2. Appropriations to generalrisk provisions
    3. Appropriations to owners                                                                                    -156,570,1 -156,570,1
    (or shareholders)                                                                                                        99.20       99.20
    4. Other
    (V) Internal carry-forward ofowners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3.    Surplus      reserves   formaking up losses
    4. Other(Ⅵ) Specific reserve
    1. Withdrawn for the period
    2. Used in the period(Ⅶ) Other
                                         978,563,74 612,287,40                             622,494,53               662,713,27 2,876,058,IV. Closing balance
                                               5.00         6.19                                  1.96                    2.19     955.34Same period of last year
                                                                                                                        Unit: RMB Yuan
                                                                               Same period of last year
                                          Paid-up
                                                                     Less:                                General                 Total
                Item                     capital (or    Capital                 Specific     Surplus                 Retained
                                                                    treasury                               risk                  owners’
                                           share        reserve                  reserve     reserve                  profit
                                                                     stock                                reserve                equity
                                          capital)
    I. Balance at the end of the 978,563,74 619,092,42                                         583,537,29               584,004,85 2,765,198,
    previous year                                   5.00        2.15                                  0.22                    7.71     315.08
    Add: change of accountingpolicy
    Correction       of     errors    inprevious periods
    Other
    II. Balance at the beginning of 978,563,74 619,092,42                                      583,537,29               584,004,85 2,765,198,
    the year                                        5.00        2.15                                  0.22                    7.71     315.08
    III. Increase/ decrease in the                         3,402,507.                          38,957,241               105,974,23 148,333,98
                                                                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    period (“-” means decrease)                               98                                 .74                   9.41        9.13
                                                                                                               389,572,41 389,572,41
    (I) Net profit
                                                                                                                     7.40        7.40
    (II)     Other     comprehensive                   3,402,507.                                                             3,402,507.
    incomes                                                     98                                                                     98
                                                     3,402,507.                                                389,572,41 392,974,92
    Subtotal of (I) and (II)
                                                            98                                                       7.40        5.38
    (III)    Capital   paid    in   andreduced by owners
    1. Capital paid in by owners
    2. Amounts of share-basedpayments recognized in owners’equity
    3. Others
                                                                                       38,957,241              -283,598,1 -244,640,9
    (IV) Profit distribution
                                                                                               .74                  77.99       36.25
    1. Appropriations to surplus                                                      38,957,241              -38,957,24
                                                                                                                                 0.00
    reserves                                                                                       .74                   1.74
    2. Appropriations to generalrisk provisions
    3. Appropriations to owners                                                                               -244,640,9 -244,640,9
    (or shareholders)                                                                                                   36.25       36.25
    4. Other
    (V) Internal carry-forward ofowners’ equity
    1. New increase of capital(or share capital) from capitalpublic reserves
    2. New increase of capital(or share capital) from surplusreserves
    3.    Surplus    reserves    formaking up losses
    4. Other(Ⅵ) Specific reserve
    1. Withdrawn for the period
    2. Used in the period(Ⅶ) Other
                                        978,563,74 622,494,93                          622,494,53              689,979,09 2,913,532,IV. Closing balance
                                              5.00        0.13                               1.96                    7.12      304.21
    Legal representative: Pan Jie              Chief of the accounting work: Pan Jie         Chief of the accounting organ: Yin Jianchun
                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.III. Company ProfileCompany historyFoshan Electrical & Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited companyjointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick Field, andFoshan Poyang Printing Industrial Co. on Oct. 20, 1992 by raising funds under the approval of YGS (1992) No.63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of GuangdongProvince and the Economic System Reform Commission of Guangdong Province, is an enterprise with its sharesheld by both the corporate and the natural persons. As approved by China Securities Regulatory Commission withDocument (1993) No. 33, the Company publicly issued 19.3 million shares of social public shares (A shares) tothe public in Oct., 1993, and was listed in Shenzhen Stock Exchange for trade on Nov. 23, 1993. The Companywas approved to issue 50,000,000 B shares on Jul. 23, 1995. And, as approved to change into a foreign-investedstock limited company on Aug. 26, 1996 by (1996) WJMZEHZ No. 466 Document issued by the Ministry ofForeign Trade and Economic Cooperation of the People’s Republic of China. On Dec. 11, 2000, as approved byChina Securities Regulatory Commission with ZJGS Zi [2000] No. 175 Document, the Company additionallyissued 55,000,000 A shares. At approved by the Shareholders’ General Meeting 2006, 2007 and 2008, theCompany implemented the plan of capitalization of capital reserve, after the transfer, the registered capital of theCompany has increased to RMB 978,563,745.00 Yuan.Registration code for corporate business license: 440000400010049Legal representative: Mr. Pan JieAddress: No. 64, Fenjiang North Road, Foshan, Guangdong ProvinceBusiness scope of the CompanyR&D and production of electro-optical source products, electro-optical source equipment and electro-opticalaccessories, electro-optical materials, lamps and components, electrical engineering materials, accessories formotor vehicles, household appliances, electrical switches, outlet, fire fighting products, ventilation equipment,LED products, lithium-ion battery and other materials, sale of those products on both the domestic and overseasmarkets, and the relevant engineering consultation service. The main products of the Company include all kinds ofelectro-optical source products.Basic organizational structure of the CompanyShareholders’ General Meeting is the highest authority organ of the Company, Board of Directors is an executiveorgan to carry out the provisions formulated by the Shareholders’ General Meeting, Board of supervisors is aninternal supervision organ of the Company, and the General Manager is responsible for routine operation andmanagement. Up till the end of the reporting period, the Company owns nine actually controlled subsidiaries, i.e.Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., Foshan Chansheng Electronic Ballast Co., Ltd.,Foshan Taimei Times Lamps and Lanterns Co., Nanjing Fozhao Lighting Components Co., Ltd., FSL (Xinxiang)Lighting Co., Ltd., Foshan Electrical and Lighting Engineering Co., Ltd., Foshan Lighting Lamps and LanternsCo., Ltd., Guangdong Fozhao Leasing Co., Ltd. and Suzhou Mont Lighting Co., Ltd.IV. Main accounting policies, accounting estimates and corrections of prior accountingerrors1. Basis for preparation of financial statementsWith going-concern assumption as the basis, the Company prepares its financial statement in light of the actualtransactions and matters, as well as the accounting standard for business enterprise-basic standard promulgated by
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.the Ministry of Finance of PRC in 15 Feb. 2006, other specific accounting standards, and the relevant provisionsof application guide and interpretation, as well as the following primary accounting policies and accountingestimates.2. Statement of compliance with Corporate Accounting StandardsThe financial statements prepared by the Company is in compliance with the requirements of AccountingStandard for Business Enterprises, which gives a true and fair view of the state of affairs of the Company as forthe financial status and operating results & cash flows.3. Accounting periodA fiscal year starts on 1 January and ends on 31 Dec. according to the Gregorian calendar.4. Recording currencyRenminbi is the recording currency for the Company.5. Measurement method for the business combination under the same control and business combination notunder the same control(1) Business combination under the same controlIn a business combination under the same control, the assets and liabilities that the combining party obtains in abusiness combination shall be measured on the basis of their carrying amount in the combined party on thecombining date. As for the balance between the carrying amount of the net assets obtained by the combining partyand the carrying amount of the consideration paid by it, the additional paid-in capital shall be adjusted. If theadditional paid-in capital is not sufficient to be offset, the retained earnings shall be adjusted.(2) Business combination not under the same controlIn a business combination not under the same control, the combination costs shall be the fair values, on theacquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theacquirer in exchange for the control on the acquiree. The positive balance between the combination costs and thefair value of the identifiable net assets it obtains from the acquiree shall be recognized as goodwill. The negativebalance between the combination costs and the fair value of the identifiable net assets it obtains from the acquireeshall be recorded into the profits and losses of the current period after the reexamination.6. Preparation methods for consolidated financial statements(1) Preparation methods for consolidated financial statementsThe scope of consolidation of consolidated financial statements shall include the Company and all its subsidiaries.The operating outcomes and financial status of the subsidiaries shall be included in the consolidated financialstatements from start date of the control to end date of the control.The subsidiaries that the Company obtains due to business combination under the same control shall be includedinto the scope of consolidation when preparing the consolidated financial statements of the current period, and thebeginning balance in the consolidated financial statement and prior comparison sheet shall be adjustedaccordingly.As for the subsidiaries that the Company obtains due to business combination not under the same control, theirfinancial statements shall be adjusted based on the fair value of each identifiable asset and liability determined onthe combining date when preparing the consolidated financial statements of the current period. Such combinedsubsidiaries shall be included into the scope of consolidation from the combining date.
                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.If the accounting period and accounting policies adopted by a subsidiary are different from those adopted by theCompany, when preparing the consolidated financial statement, necessary adjustments shall be made to thefinancial statements of the subsidiary under the accounting period and accounting policies adopted by theCompany. Within the scope of consolidation, all significant transactions between the enterprises, balance andunrealized profits and losses shall be offset when preparing the consolidated financial statement. As for theunrealized losses occurred in the internal transaction, if there is evidence shows that such loss is impairment losson relevant assets, it shall not be offset. The equity and profits & losses attributable to minority shareholders ofthe subsidiary shall be particularly presented in the item of “shareholder’s equity” in the consolidated balancesheets and in the item of “net profit” in the consolidated income statement respectively.(2) Relevant accounting method shall be revealed for the equity of a same subsidiary purchased and sold insuccessive two fiscal yearsNaught7. Recognition standards for cash and cash equivalentsThe term “cash equivalents” refers to short-term ( within 3 months from the purchase date) and highly liquidinvestments that are readily convertible to known amounts of cash and which are subject to an insignificant risk ofchange in value.8. Foreign currency and accounting method for foreign currency(1) Foreign currencyForeign currency shall be recognized by employing systematic and reasonable methods, and shall be translatedinto the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate ofthe transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spotexchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balancesheet date and the spot exchange rate at the time of initial recognition or prior tot the balance sheet date shall berecorded into the profits and losses at the current period except that the balance of exchange arising from foreigncurrency borrowings for the purchase and construction or production of qualified assets shall be capitalized. Theforeign currency non-monetary items measured at the historical cost shall still be translated at the spot exchangerate on the transaction date.(2) Accounting method for foreign currencyNaught9. Financial instrumentsFinancial instruments include financial assets, financial liabilities and equity instruments.(1) Category of financial instrumentsFinancial assets shall be classified into the following four categories when they are initially recognized: Financialassets measured at fair value and of which variations are recorded in the profits and losses for the current period,loans and the account receivables, financial assets available for sale and the investments which will be held totheir maturity.
                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.Financial liabilities shall be classified into the following two categories when they are initially recognized: (1) theTrading financial liabilities; and (2) other financial liabilities.(2) Recognition and Measurement of Financial LiabilitiesFinancial assets, at their initial recognition, shall be measured at fair value. As for financial assets measured at fairvalue and of which variations are recorded in the profits and losses for the current period, the relevant tradingexpenses shall be directly recorded into the profits and losses of the current period; for other categories offinancial assets, the transaction expenses thereof shall be included into the initially recognized amount.Financial assets measured at fair value and of which variations are recorded in the profits and losses for thecurrent period refer to financial assets held by the Company for the purpose of selling in the near future, includingtrading financial assets, or financial assets designated by the management in the initial recognition to be measuredat fair value with variations recorded in the gains and losses for the current period. Financial assets measured atfair value and of which variations are recorded in the profits and losses for the current period are subsequentlymeasured at their fair values. Interest or cash dividends arising from such assets during the holing period arerecognized as investment gains. Gains or losses arising from fair value changes are recorded in the gains andlosses for the current period at the end of the reporting period. When such assets are disposed, the differencebetween their fair values and initially recognized amounts is recognized as investment gains and the gains andlosses arising from fair value changes are adjusted accordingly.Loan and accounts receivable: The non-derivative financial assets for which there is no quoted price in the activemarket and of which the recoverable amount is fixed or determinable shall be classified as loan and accountsreceivable. The Company shall make subsequent measurement on its loan and accounts receivable on the basis ofthe post-amortization costs by adopting the actual interest rate, from which gains and losses, when loan andaccounts receivable are terminated from recognizing, or are impaired or amortized, shall be recorded into theprofits and losses of the current period.Available-for-sale financial assets: the non-derivative financial assets which are designated as available-for-salefinancial assets when they are initially recognized as well as the non-derivative financial assets other than loansand accounts receivables, investments held until their maturity; and transaction financial assets. The Companyshall make subsequent measurement on available-for-sale financial assets at fair value, and the profits and lossesarising from the change in the fair value shall be directly recorded into the owner’s equity, until the said financialassets shall be transferred out when they are terminated from recognizing or are impaired, which shall be recordedinto the profits and losses of current period. Where the intention of holding or the ability to hold changes, or thefair value can not be reliably measured any more, or the term of holding has exceeded "two complete accountingyears", which makes it no longer suitable to measure the available-for-sale financial assets at its fair value, theCompany concerned may measure the said financial assets on the basis of post-amortization cost. And suchpost-amortization cost at the re-classification day shall be the carrying amount of the financial assets. The gains orlosses that are related to the said financial assets and that are directly included in the owner’s equity shall be dealtwith according to the following provisions: ① Where such financial asset has a fixed date of maturity, it shall beamortized within the remaining period of the said financial asset by adopting the actual interest rate method andbe recorded into the profits and losses of the current period. The gap between the post-amortization cost of thefinancial asset and the amount on the maturity date shall also be amortized within the remaining period of the saidfinancial asset by adopting the actual interest rate method and be recorded into the profits and losses of the currentperiod. If, during the subsequent accounting period, the financial asset is impaired, the relevant profits and lossesthat were included in the owner’s equity shall be transferred out and be recorded into the current profits and losses.② Where such financial asset does not have a fixed date of maturity, it shall remain in the owner’s equity. Where
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.such financial asset is transferred out when it is impaired or determined from recognizing during the remainingperiod of accounting that follows, and shall be recorded into the profits and losses of the current periodHeld-to-maturity Investments: non-derivative financial asset with a fixed date of maturity, a fixed or determinablerecoverable amount and which the Company’s management holds for a definite purpose or the Company’smanagement is able to hold until its maturity. The Company shall make subsequent measurement on itsHeld-to-maturity Investments on the basis of the post-amortization costs by adopting the actual interest rate, fromwhich gains and losses, when loan and accounts receivable are terminated from recognizing, or are impaired oramortized, shall be recorded into the profits and losses of the current period. Where part of the held-to-maturityinvestment is sold or the re-classified amount thereof is considerably large, so that the remainder of the saidinvestment is no longer suitable to be classified as a held-to-maturity investment, the Company shall re-classifythe remainder of the said investment as an available-for-sale financial asset, and shall make subsequentmeasurement on it according to its fair value on the re-classification day, and no longer re-classify the saidfinancial asset as held-to-maturity investment in the current fiscal year and the subsequent two completeaccounting years. The gap between the carrying amount of the said remnant part of the investment at there-classification day and the fair value shall be computed into the owner’s equity. And when the saidavailable-for-sale financial asset is terminated from recognition or transferred out when it is impaired, it shall berecorded into the profits and losses of the current period.The financial liabilities initially recognized by the Company shall be measured at their fair values. For the Tradingfinancial liabilities, the transaction expenses thereof shall be directly recorded into the profits and losses of thecurrent period; for other categories of financial liabilities, the transaction expenses thereof shall be included intothe initially recognized amount.Trading financial liabilities: such financial liabilities held by the Company for the purpose for repurchasing at thefair value in the near future, and financial liabilities formed a part of combination of financial instruments whichare managed by way of short-term profit making in the near future, and derivative financial liabilities (thedesignated derivative instruments which are effective hedging instruments, or derivative instruments to financialguarantee contracts, and the derivative instruments which are connected with the equity instrument investment forwhich there is no quoted price in the active market, whose fair value cannot be reliably measured, and which shallbe settled by delivering the said equity instruments) shall be classified as trading financial liabilities. Subsequentmeasurement of transaction financial liabilities shall be measured at fair value, and the profits and losses arisingfrom the change in the fair value shall be recorded into the profits and losses of the current period.Other financial liabilities: The Company shall make subsequent measurement on its other financial liabilities onthe basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, whenother financial liabilities are terminated from recognizing or amortized, shall be recorded into the profits andlosses of the current period.Determination of the Fair Value of Financial Instruments—As for the financial instruments for which there is an active market, the quoted prices in the active market shallbe used to determine the fair values thereof. Where there is no active market for a financial instrument, theCompany concerned shall adopt value appraisal techniques to determine its fair value. The value appraisaltechniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latestmarket transaction upon their own free will, the current fair value obtained by referring to other financialinstruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc.
                                                           2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.(3) Recognition and Accounting Method for Transfer of Financial AssetsWhere transfer of financial assets occurs in the Company, if the Company has transferred nearly all of risks andrewards related to the ownership of the financial asset to the transferee, it shall stop recognizing the financial asset.If it retained nearly all of the risks and rewards related to the ownership of the financial asset, it shall not stoprecognizing the financial asset. When the Company makes a judgment about whether the transfer of a financialasset satisfies all the above conditions to stop the recognition, the Company adopts the code of “Rather substantialthan superficial”. The Company differentiates the transfer of financial asset into the entire transfer and the partialtransfer of financial assets. If the transfer of an entire financial asset satisfies the conditions for stoppingrecognition, the difference between the amounts of the following 2 items shall be recorded in the profits andlosses of the current period: (1)The book value of the transferred financial asset; (2)The sum of considerationreceived from the transfer, and the accumulative amount of the changes of the fair value originally recorded in theowner's equities (in the event that the financial asset involved in the transfer is a financial asset available for sale).If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of thetransferred financial asset shall, between the portion whose recognition has been stopped and the portion whoserecognition has not been stopped (under such circumstance, the service asset retained shall be deemed as a portionof financial asset whose recognition has not been stopped), be apportioned according to their respective relativefair value, and the difference between the amounts of the following 2 items shall be included into the profits andlosses of the current period : (1) The book value of the portion whose recognition has been stopped; (2) The sumof consideration of the portion whose recognition has been stopped, and the portion of the accumulative amount ofthe changes in the fair value originally recorded in the owner's equities which is corresponding to the portionwhose recognition has been stopped (in the event that the financial asset involved in the transfer is a financialasset available for sale). If the transfer of a financial asset doesn’t satisfy the conditions to stop the recognition,the Company shall continue to recognize the financial asset and shall recognize the consideration it receives as afinancial liability.(4) Recognition Conditions for Termination of Financial LiabilitiesWhen the prevailing obligations of a financial liability are relieved in all or in part may the recognition of thefinancial liability be terminated in all or partly. If the Company enters into an agreement with creditor so as tosubstitute the existing financial liabilities by way of any new financial liability, and if the contractual stipulationsregarding the new financial liability is substantially different from that regarding the existing financial liability,the Company shall terminate the recognition of the existing financial liability, and shall at the same time recognizethe new financial liability. Where the Company makes substantial revisions to some or all of the contractualstipulations of the existing financial liability, it shall terminated the recognition of the existing financial liability orpart of it, and at the same time recognize the financial liability after revising the contractual stipulations as a newfinancial liability. Where the recognition of a financial liability is totally or partially terminated, the Companyshall include into the profits and losses of the current period the gap between the carrying amount which has beenterminated from recognition and the considerations it has paid (including the non-cash assets it has transferred outand the new financial liabilities it has assumed). If the Company buys back part of its financial liabilities, it shalldistribute, on the report day, the carrying amount of the whole financial liabilities in light of the comparatively fairvalue of the part that continues to be recognized and the part whose recognition has already been terminated andcarries out distribution of the overall book value of the financial liability. The gap between the carrying amountwhich is distributed to the part whose recognition has terminated and the considerations it has paid (including thenon-cash assets it has transferred out and the new financial liabilities it has assumed) shall be recorded into theprofits and losses of the current period.
                                                            2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.(5) Recognition of Financial Assets and Financial LiabilitiesAs for the financial assets and financial liabilities that the Company measured by fair value, they all refer to thequoted prices in the active market.(6) Withdrawal of Impairment Provision for Financial Assets (excluding Accounts Receivable)—The Company shall carry out an inspection, on the balance sheet day, on the carrying amount of the financialassets other than those transactional financial assets. Where there is any objective evidence proving that suchfinancial asset has been impaired, an impairment provision shall be made.— Measurement for impairment of financial assets measured on the basis of the post-amortization costsWhere there is any objective evidence proving that a financial asset measured on the basis of post-amortizationcosts is impaired, the carrying amount of the said financial asset shall be written down to the current value of thepredicted future cash flow (excluding the loss of future credits not yet occurred), and the amount as written downshall be recognized as loss of the impairment of the asset and shall be recorded into the profits and losses of thecurrent period. An impairment test shall be made on the financial assets with significant single amounts. Withregard to the financial assets with insignificant single amounts, an impairment test may be carried out byindependent or combination. Where, upon independent test, the financial asset has not been impaired, it shall beincluded in a combination of financial assets with similar risk features so as to conduct another impairment test.The financial assets which have suffered from an impairment loss in any single amount shall not be included inany combination of financial assets with similar risk features for any impairment test. During the follow-up period,if there is any objective evidence proving that the value of the said financial asset has been restored, and it isobjectively related to the events that occur after such loss is recognized, the impairment-related losses asoriginally recognized shall be reversed and be recorded into the profits and losses of the current period. However,the reversed carrying amount shall not be any more than the post-amortization costs of the said financial asset onthe day of reverse under the assumption that no provision is made for the impairment. Where any financial assetmeasured on the basis of post-amortization costs is recognized as having loss, the relevant impairment provisionwithdrawn shall be written off.— Available-for-sale financial assetsWhere a available-for-sale financial asset is impaired, even if the recognition of the financial asset has not beenterminated, the accumulative losses arising from the decrease of the fair value of the owner’s equity which wasdirectly included shall be transferred out and recorded into the profits and losses of the current period. Theaccumulative losses that are transferred out shall be the net amount obtained from the initially obtained costs ofthe sold financial asset after deducting the principals as taken back, the current fair value and theimpairment-related losses as was recorded into the profits and losses of the current period.Each recognition standard of each kind of available-for-sale financial assets impairment(7) Notes on Basis of Hold-to-Maturity Investment undue that reclassified into Available-for-SalesFinancial AssetsNaught10. Recognition and Withdrawal Method for Bad-debt Provisions for Accounts ReceivableAccounts receivable of the Company mainly including accounts receivable and other receivables. The Companyconducts a check to the book value of accounts receivable at the Balance Sheet Date, if there is any objectiveevidence proving that the accounts receivable is impaired, it shall be recorded into provision for bad debts.(1) Provisions for Bad-debt Accounts Receivable with a significant single amountDefinition or amount criteria for an account receivable with a Accounts receivable with a significant single amount refer to
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    significant single amount                                            the top five accounts receivable with the largest balances or
                                                                      accounts accounting for over 10% of the total balance of
                                                                      receivables.
                                                                      Where there is objective evidence proving that the Company
                                                                      is not able to recover the full amount of an account receivable
                                                                      according to the original terms in relation to the account, an
                                                                      independent impairment test is carried out on the account
                                                                      receivable and the bad-debt provision is made according toMaking individual bad-debt provisions for accounts receivable with
                                                                      the difference between the present value of the account’sa significant single amount
                                                                      future cash flows and the account’s carrying amount. If the
                                                                      independent impairment test shows that the account
                                                                      receivable has not been impaired, the balance of the account
                                                                      is put into the corresponding group and the bad-debt
                                                                      provision is made using the balance percentage method.(2) Accounts receivable for which bad-debt provisions are made on the group basis
              Group name                Withdraw method                              Basis for recognition of group
                                                                  Accounts receivable arising from other common transactions
    Common transaction group          Balance percentage method
                                                                  than internal transactions are classified according to credit risk
                                                                  features.
                                                                  Accounts receivable arising from internal transactions within the
    Internal transaction group        Other methods
                                                                  scope of the consolidation statements are classified according to
                                                                  credit risk features.In the groups, those adopting aging analysis method to withdraw bad debt provision:□Applicable √InapplicableIn the groups, those adopting balance percentage method to withdraw bad debt provision√Applicable □Inapplicable
                                             Withdrawing proportion of account              Withdrawing proportion of other
              Name of the group
                                                       receivables (%)                             account receivables (%)
    Ordinary business group                                                             6%                                          6%In the groups, those adopting other methods to withdraw bad debt provision:√Applicable □Inapplicable
                  Name of the group                                                        Notes
                                                     Withdrawing bad debt provision according to the discrepancy betweenInternal business group
                                                     present value of future cash flow and book value.(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is madeindependentlyReason of individually withdrawing bad debt When there is conclusive evidence proving that obvious difference exists in the
    provision:                                  recoverability.
    Method for making bad-debt provisions for   As for other receivables (including notes receivable, prepayments, interest
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    the said accounts receivables:           receivable, long-term receivables, etc.), bad-debt provisions are made according to
                                          the differences between the present values of their future cash flows and their
                                          carrying amounts.11. Inventory(1) Category of InventoryCategory: raw materials, products in processing, materials for consigned processing, finished products,semi-manufactured semi-finished products, and low-value consumption goods.(2) Pricing method for distributed inventoriesMethod: weighted averageAccounting of inventory: raw materials and finished products shall be measured at actual cost, while weightedaverage method shall be adopted when receiving or outgoing.(3) Recognition basis of net realizable value of inventories and withdrawal method for impairmentprovision of inventoriesRecognition of provision for falling price of inventory and withdrawal: The Company shall make provision forfalling price of inventory on the basis of each item of inventory at the balance that net realizable value is lowerthan carrying cost. For finished goods, merchandise inventories, and available for sale materials which are applieddirectly for sales of stock inventory, the amount after deducting the estimated sale expense and relevant taxesfrom the estimated sell price of the inventory shall be recognized as the net realizable value. For materialinventories which need to be processed, the amount after deducting the estimated cost of completion, estimatedsale expense and relevant taxes from the estimated sale price of produced finished goods shall be recognized asthe net realizable value.(4) Inventory system of inventoriesInventory system: perceptual inventory system(5) Amortization method of low-value consumption goods and packagesLow-value consumption goodsAmortization method: one time methodPackagesAmortization method: one time method12. Long-term equity investment(1) Recognition for initial costPricing of long-term equity investment— Long-term equity investment for the corporate combination——For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of thebook value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment,and the direct relevant expenses occurred for the merger of enterprises shall be included into the profits and lossesof the current period.——For the merger of enterprises not under the same control, The combination costs shall be the fair values, onthe acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theCompany in exchange for the control on the acquiree, and all relevant direct costs incurred to the acquirer for thebusiness combination. Where any future event that is likely to affect the combination costs is stipulated in thecombination contract or agreement, if it is likely to occur and its effects on the combination costs can be measuredreliably, the Company shall record the said amount into the combination costs.
                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.——The cost of a long-term equity investment obtained by making payment in cash shall be the purchase costwhich is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-termequity investment, taxes and other necessary expenses.——The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fairvalue of the equity securities issued.——The cost of a long-term equity investment of an investor shall be the value stipulated in the investmentcontract or agreement except the unfair value stipulated in the contract or agreement.——The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercialnature) shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assetsreceived.——The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at thefair value.(2) Subsequent measurement and recognition of gains and losses—The long-term equity investment of the Company that is able to control the invested enterprise and which of theCompany that does not do joint control or does not have significant influences on the invested entity, and has nooffer in the active market and its fair value cannot be reliably measured, it shall be measured by employing thecost method. Except for the declared but not distributed cash dividends or profits included in the price orconsideration actually paid when an investment is obtained, the dividends or profits declared to distribute by theinvested entity shall be recognized as the current investment income.(3) Recognition basis of jointly control and significant influence in invested units—A long-term equity investment of the Company that does joint control or significant influences over theinvested entity shall be measured by employing the equity method. If the cost of a long-term equity investment ismore than the Company’s attributable share of the fair value of the invested entity's identifiable net assets for theinvestment, the cost of the long-term equity investment may not be adjusted. If the cost of a long-term equityinvestment is less than the Company’s attributable share of the fair value of the invested entity’s identifiable netassets for the investment, the difference shall be included in the current profits and losses and the cost of thelong-term equity investment shall be adjusted simultaneously. The Company shall recognize the net losses of theinvested enterprise until the book value of the long-term equity investment and other long-term rights andinterests which substantially form the net investment made to the invested entity are reduced to zero, unless theinvesting enterprise has the obligation to undertake extra losses. The Company shall, on the ground of the fairvalue of all identifiable assets of the invested entity when it obtains the investment, recognize the attributableshare of the net profits and losses of the invested entity after it adjusts the net profits of the invested entity.(4) Impairment test method and withdrawal method for impairment provision—The Company shall conduct inspection to long-term investment item by item at the end of reporting period. Ifthe market price of long-term investment falls into sustained decline or the invested enterprise’s operation statusgrow worse, which will cause that the recoverable amount is lower than carrying value, moreover, such reducedvalue will not be restored in predicted future period, then the negative balance between the recoverable amountand carrying value of long-term investment shall be measured as provision for impairment of long-term
                                                            2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.investment. The recoverable amount shall be determined in light of the higher one of the net amount of the fairvalue of the long-term equity investment minus the disposal expenses and the current value of the expected futurecash flow of the long-term equity investment. Once any loss of impairment of the long-term investment isrecognized, it shall not be switched back in the future accounting periods.13. Investment real estateThe Company doesn’t have investment real estate.14. Fixed assets(1) Recognition of fixed assetsRecognition of fixed assets: Fixed assets of the Company refers to the tangible assets that simultaneously possessthe features as follows: they are held for the sake of producing commodities, rendering labor service, renting orbusiness management; and their useful life is in excess of one fiscal year and unit price is higher.Category of fixed assets: housing and building, machinery equipment, transportation vehicle and other.(2) Recognition basis and pricing method for fixed assets acquired under finance leaseThe "finance lease" shall refer to a lease that has transferred in substance all the risks and rewards related to theownership of an asset. The Company shall recognizes the lower one of the fair value of the leased asset and thepresent value of the minimum lease payments on the lease beginning date as cost of fixed assets of finance lease.In calculation of the depreciation of a leased fixed asset, the Company adopts a depreciation policy for leasedassets consistent with that for depreciable assets. If it is reasonable to be certain that the Company will obtain theownership of the leased asset when the lease term expires, the leased asset shall be fully depreciated over itsuseful life. If it is not reasonable to be certain that the Company will obtain the ownership of the leased asset atthe expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or itsuseful life.(3) Depreciation method of various fixed assets
            The categories      Estimated useful life (years)       Residual value              Annual depreciation rate
    Houses and buildings           3—25                                                5.00% 31.67%-4.75%
    Machineries                    2—8                                                 5.00% 47.50%-11.88%
    Electronic equipment           2—8                                                 5.00% 47.50%-11.88%
    Vehicles                       5—10                                                5.00% 19%-9.50%(4) Impairment test method and withdrawal method for impairment provision of fixed assetsProvision for impairment of fixed assets: The Company shall carry out inspection to fixed assets item by itemevery year. If the recoverable amount is lower than carrying value due to sustained decline of market price offixed assets or technological obsolescence, damage or long-term idle, then the provision for impairment of fixedassets shall be withdrawn on the basis of the balance hereof. Once any loss of impairment of the fixed assets isrecognized, it shall not be switched back in the future accounting periods. The recoverable amount shall bedetermined in light of the higher one of the net amount of the fair value of the fixed assets minus the disposalexpenses and the current value of the expected future cash flow of the fixed assets. The current value of futurecash flow of assets shall be recognized based on the amount after the predicated future cash flow occurred in theprocess of continuous services and when the final disposal is discounted by adopting proper discount rate.(5) Other explanationNaught
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.15. Construction in Progress(1) Categories of construction in processCategories of construction in process refer to the newly establishment, amendment or expansion of fixed assetsof the Company, or project expenses on unaccomplished project such as technology innovation, equipmentupdating and major repair projects, etc.,(2) Standards and time of transferring construction in process into fixed assetConstruction in progress shall be measured at actual cost. Constructions in progress shall be carried down to fixedassets by adopting provisional estimate when bringing to the expected conditions for use. After completion andsettlement procedures, the Company shall adjust the carrying value of fixed assets at the actual cost. As forinterests on borrowings incurred to special-borrowing loans or general borrowing for the acquisition andconstruction or production of assets eligible for capitalization and the ancillary expense incurred tospecial-borrowing loans, those incurred before a qualified asset under acquisition, construction or production isready for the intended use or sale shall be capitalized into capitalized cost, while those incurred after a qualifiedasset under acquisition and construction or production is ready for the intended use or sale shall be included intothe profits and losses of the current period.(3) Impairment test method and withdrawal method for impairment provision of construction in processProvision for impairment of construction in progress: the Company shall carry out overall inspection to theconstruction in progress at the end of the reporting period. If the construction in progress has been stopped for along time and cannot be continued restarting in the coming three years, and such construction in progress hasalready fallen behind, whatever in performance or in technology, resulting in an uncertainty to economic benefitof the Company, and there is an obvious evidence shows that the construction in progress has been impaired, thenprovision for impairment of the construction in progress shall be withdrawn based on the negative balancebetween the recoverable amount of single construction in progress and carrying value. Once any loss ofimpairment of the construction in progress is recognized, it shall not be switched back in the future accountingperiods.16. Borrowing costs(1) Recognition principles for capitalization of borrowing costsThe borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: (1)The asset disbursements have already incurred, which shall include the cash, transferred non-cash assets orinterest bearing debts paid for the acquisition and construction or production activities for preparing assetseligible for capitalization; (2) The borrowing costs has already incurred; and (3) The acquisition and constructionor production activities which are necessary to prepare the asset for its intended use or sale have already started.(2) Capitalization period of borrowing costsThe borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: (1)The asset disbursements have already incurred; (2) The borrowing costs have already incurred and (3) Theacquisition and construction or production activities which are necessary to prepare the asset for its intended useor sale have already started. And then it shall be recorded into assets costs that satisfied conditions ofcapitalization. When the qualified asset under acquisition and construction or production is ready for theintended use or sale, the capitalization of the borrowing costs shall be ceased; borrowing costs incurred thereaftershall be recognized as expenses at the incurred amount when they are incurred.
                                                               2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.(3) Period for suspending capitalization of borrowing costsSuspension of capitalization: Where the acquisition and construction or production of a qualified asset isinterrupted abnormally and the interruption period lasts for more than 3 months, the capitalization of theborrowing costs shall be suspended. The borrowing costs incurred during such period shall be recognized asexpenses, and shall be recorded into the profits and losses of the current period, till the acquisition andconstruction or production of the asset restarts. If the interruption is a necessary step for making the qualified assetunder acquisition and construction or production ready for the intended use or sale, the capitalization of theborrowing costs shall continue.(4) Calculation method of capitalized amount of borrowing costsTo-be-capitalized amount of interests of borrowing: As for interests of borrowing occurred special-borrowingloans or general borrowing for the acquisition and construction or production of assets eligible for capitalization,those incurred before a qualified asset under acquisition, construction or production is ready for the intended useor sale shall be capitalized based on the following methods:—As for special-borrowing loans for the acquisition and construction or production of assets eligible forcapitalization, the to-be-capitalized amount of interests shall be determined in light of the actual cost incurred ofthe specially borrowed loan at the present period minus the income of interests earned on the unused borrowingloans as a deposit in the bank or as a temporary investment.—Where a general borrowing is used for the acquisition and construction or production of assets eligible forcapitalization, the Company shall calculate and determine the to-be-capitalized amount of interests on the generalborrowing by multiplying the weighted average asset disbursement of the part of the accumulative assetdisbursements minus the general borrowing by the capitalization rate of the general borrowing used. Thecapitalization rate shall be calculated and determined in light of the weighted average interest rate of the generalborrowing.17. Biological assetsNaught18. Oil gas assetsNaught19. Intangible assets(1) Pricing method of intangible assets—The cost of outsourcing intangible assets shall be measured at actual expenditures occurred for reaching theexpected use purpose.—The research expenditures for its internal research and development projects of the Company shall be recordedinto the profit or loss for the current period. The development expenditures for its internal research anddevelopment projects of the Company may be confirmed as cost of intangible assets when they satisfycapitalization conditions.—The cost invested into intangible assets by investors shall be determined according to the conventional value inthe investment contract or agreement, except for those of unfair value in the contract or agreement.
                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.—The intangible assets received by the Company through accepting debtor’s non-cash assets for compensationfor debts, or by receivables, shall be measured at the fair value of the intangible assets received.—The cost invested into intangible assets by non-monetary transaction shall be determined according to the fairvalue of non-monetary assets and relevant payable taxes.(2) Estimated useful life of intangible assets with limited useful lifeFor intangible assets of limited useful life, the Company adopts straight-line method for amortization in useful lifeterm. The Company shall, at the end of each year, recheck the estimated useful life and amortization method andmakes suitable adjustment.
             Item                Estimated useful life                                 Basis
    Land use right             50 years                     Statutory use right
    Patent                     10-20 years                  Estimated term of making profit(3) Judgment basis of intangible assets with uncertain useful lifeThe Company doesn’t have intangible assets with uncertain useful life.(4) Withdrawal of impairment provision of intangible assetsProvision for impairment of intangible assets: the Company shall made overall inspection to the intangible assetat the end of reporting period. If the intangible assets have already been replaced by other new technologies,resulting in the Company’s ability to create economic benefits suffering materials adverse influence, or asustained decline of market price of intangible assets and impossible to be recover within the residualamortization years, or certain intangible asset has exceeded the term protected by law but still part of usefulvalue is remained, or there is an obvious evidence shows that the intangible assets has been impaired, thenprovision for impairment of the intangible assets shall be withdrawn based on the balance between therecoverable amount of single intangible assets and carrying value. Once any loss of impairment of the intangibleassets is recognized, it shall not be switched back in the future accounting periods.(5) Criteria of dividing the research phase and development phase of internal R&D projectThe expenditures for its internal research phase and development phase of the Company discriminate into researchexpenditures and development expenditures. The term “research” refers to the creative and planned investigationto acquire and understand new scientific or technological knowledge; the term “development” refers to theapplication of research achievements and other knowledge to a certain plan or design, prior to the commercialproduction or use, so as to produce any new material, device or product, or substantially improved material,device and product.(6) Calculation of the expenditures of internal R&D projectThe expenditures for its internal research phase and development phase of the Company discriminate into researchexpenditures and development expenditures:1) The research expenditures for its internal research and development phases of the Company shall be recordedinto the profit or loss for the current period.2) The research expenditures for its internal research and development phases of the Company may be confirmedas intangible assets when they satisfy the following conditions simultaneously:① It is feasible technically to finish intangible assets for use or sale;② It is intended to finish and use or sell the intangible assets;
                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.③ The usefulness of methods for intangible assets to generate economic benefits shall be proved, including beingable to prove that there is a potential market for the products manufactured by applying the intangible assets orthere is a potential market for the intangible assets itself or the intangible assets will be used internally;④ It is able to finish the development of the intangible assets, and able to use or sell the intangible assets, with thesupport of sufficient technologies, financial resources and other resources; and⑤ The expenditures on development phase of the intangible assets can be reliably measured.20. Amortization method of long-term deferred expensesLong-term deferred expenses refer to general expenses with the apportioned period over one year (one yearexcluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shallbe recoded into book in the light of the actual expenditure, and amortized averagely within benefit period. Incase of no benefit in the future accounting period, the amortized value of such project that fails to be amortizedshall be transferred into the profits and losses of the current period.21. Assets transfer with repurchasing conditionsNaught22. Estimated liabilities(1) Criteria of estimated liabilitiesRecognition of estimated debts: The obligation such as external guaranty, pending litigation or arbitration, productquality assurance, layoff plan, loss contract, restructuring and disposal of fixed assets, pertinent to a contingenciesshall be recognized as an estimated debts when the following conditions are satisfied simultaneously: ① Thatobligation is a current obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of theenterprise as a result of performance of the obligation; and ③ The amount of the obligation can be measured in areliable way.(2) Measurement of estimated liabilitiesMeasurement of estimated debts: The estimated debts shall be initially measured in accordance with the bestestimate of the necessary expenses for the performance of the current obligation. To determine the best estimate,the Company shall take into full consideration of the risks, uncertainty, time value of money, and other factorspertinent to the Contingencies. If the time value of money is of great significance, the best estimate shall bedetermined after discounting the relevant future outflow of cash. If there is a sequent range for the necessaryexpenses and if all the outcomes within this range are equally likely to occur, the best estimate shall bedetermined in accordance with the middle estimate within the range. In other cases, the best estimate shall beconducted in accordance with the following situations, respectively: ① If the Contingencies concern a singleitem, it shall be determined in the light of the most likely outcome. ② If the Contingencies concern two or moreitems, the best estimate should be calculated and determined in accordance with all possible outcomes and therelevant probabilities. ③ When all or some of the expenses necessary for the liquidation of an estimated debts ofan enterprise is expected to be compensated by a third party, the compensation should be separately recognizedas an asset only when it is virtually certain that the reimbursement will be obtained. The Company shall checkthe book value of the estimated debts on the balance sheet date. The Company shall, subject to change, makeadjustment to carrying value to reflect the current best estimate.
                                                       2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.23. Share-based payment and equity instruments(1) Categories of share-based paymentThe Company doesn’t have share-base payment and equity instruments.(2) Recognition method of fair value of equity instrumentsNaught(3) Recognition basis of the best estimate of the vested equity instrumentsNaught(4) Accounting treatment relevant to implement, revise and terminate share-based payment planNaught24. Repurchase of shares of the CompanyNaught25. Revenue(1) Criteria for recognition time of revenue from sale of goodsNo revenue shall be realized unless the following conditions are met simultaneously: a. The significant risks andrewards of ownership of the goods or products have been transferred to the buyer by the enterprise; b. TheCompany retains neither management right nor effective control over the sold goods or products; c. The relevantrevenue has been received or valid evidence has been obtained, d. relevant cost related to sales of goods andproducts can be measured in a reliable way. The principle of affirmation of revenue from “domestic sales andexport sales”: (a) Affirmation method of domestic sales: qualified products would be delivered to buyers in linewith the requirements of the buyers; invoice for sales shall be opened when the receivable accounts aredetermined, receive payment or estimate payment receivable. (b) Affirmation method of export sales: productswould be produced according to the requirements of the buyers stipulated in contracts. After examination,customers clearing procedure for export would be arranged. Transport companies would ship the products.Invoice for sales shall be opened when the receivable accounts are determined; receive payment or estimatepayment receivable.(2) Recognition basis of revenue from transferring use rights of assetsRevenues from providing others to use company assets shall be affirmed when meeting the following conditions:the relevant economic benefits are likely to flow into the Company; the amount of revenues can be measured in areliable way. Royalty revenues from providing others to use company assets can be calculated and affirmed inline with chargeable time and methods stipulated in relevant contracts, treaties.(3)Recognition basis of revenue from providing servicesRevenue from providing services shall be recognized by adopting the percentage-of-completion method whenfollowing conditions shall be met simultaneously: The amount of revenue can be measured in a reliable way; Therelevant economic benefits are likely to flow into the enterprise; The schedule of completion under the transactioncan be confirmed in a reliable way; and the costs incurred or to be incurred in the transaction can be measured in areliable way. If the Company can not measure the result of a transaction concerning the providing of laborservices in a reliable way, and the cost of labor services incurred is expected to be compensated, the revenue fromthe providing of labor services shall be recognized in accordance with the amount of the cost of labor servicesincurred. If the cost of labor services incurred is not expected to compensate in full, the revenue shall berecognized in accordance with the amount of the cost of labor service can be compensated; if all cost of labor
                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.services incurred is not expected to compensate and no revenue from the providing of labor services may berecognized.(4) Recognition basis and method for the schedule of contracted project when recognizing the revenue fromproviding labour services and construction contract by percentage-of-completion methodThe Company doesn’t have revenue from providing labour services and contraction contracted bypercentage-of-completion method.26. Government grants(1) TypesNo government subsidy may be recognized unless the following conditions are met simultaneously: (1) TheCompany can meet the conditions for the government subsidies; and (2) The Company can obtain the governmentsubsidies.(2) Accounting treatment methodGovernment subsidy shall be confirmed when meeting the following standards: meeting the sub conditions ofgovernment subsidy; enabling to receive government subsidy.If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivableamount. If a government subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair valuecannot be obtained in a reliable way, it shall be measured at its nominal amount.The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed withinthe useful lives of the relevant assets, and included in the current profits and losses. But the governmentsubsidies measured at their nominal amounts shall be directly included in the current profits and losses. Thegovernment subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances asfollows: (1) Those subsidies used for compensating the related future expenses or losses of the enterprise shall berecognized as deferred income and shall included in the current profits and losses during the period when therelevant expenses are recognized; or (2) Those subsidies used for compensating the related expenses or lossesincurred to the enterprise shall be directly included in the current profits and losses.27. Deferred income tax assets and liabilities(1) Recognition basis of deferred income tax assetsThe Company shall record a temporary difference into deferred income tax to the extent of the amount of thetaxable income which it is most likely to obtain in future period and which can be deducted from the deductibletemporary difference.The special situation of not confirming the deferred income tax assets or deferred income tax liabilities including:initial recognition of business reputation;other transactions or events except for the merger that will neither effectthe accounting profits nor the taxable amount (or the deductible losses) when occur.(2) Recognition basis of deferred income tax liabilitiesAs for taxable temporary differences, the Company shall record into deferred income liabilities except for specialconditions.28. Operating lease and finance lease(1) Accounting treatments of operating lease
                                                      2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.The rents from operating leases shall be recorded by the Company in the relevant asset costs or the profits andlosses of the current period by using the straight-line method over each period of the lease term.(2) Accounting treatments of finance lease (3) Accounting treatments of leasebackOn the lease beginning date, the Company shall record the lower one of the fair value of the leased asset and thepresent value of the minimum lease payments on the lease beginning date as the entering value in an account,recognize the amount of the minimum lease payments as the entering value in an account of long-term accountpayable, and treat the balance between the recorded amount of the leased asset and the long-term account payableas unrecognized financing charges.(3) Accounting treatments of leasebackNaught29. Assets held for sale(1) Recognition criteria of available-for-sale assetsThe Company doesn’t have any available-for-sale assets.(2) Accounting treatments of the assets held for saleThe Company doesn’t have any available-for-sale assets.30. Capitalization of assets businessThe Company doesn’t have any capitalization of assets business.31. Hedging accountingThe Company doesn’t have any hedging business.32. Changes in main accounting policies and estimatesWere the main accounting policies or estimates changed during the reporting period?□Yes √ No(1) Change of accounting policiesWere the main accounting policies changed during the reporting period?□Yes √ No(2) Change of accounting estimatesWere the main accounting estimates changed during the reporting period?□Yes √ No33. Correction of previous accounting errorsWas any accounting error made in previous periods discovered in the reporting period?□Yes √ No(1) Retrospective restatement methodWas any previous accounting errors adopting retrospective restatement method discovered in the reportingperiod?□Yes √ No(2) Prospective application methodWas any previous accounting errors adopting prospective application method discovered in the reporting period?□Yes √ No
                                                        2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.34. Other main accounting policies, accounting estimates as well as compilation method of financialstatementsNaughtV. Taxation1. Main taxes and tax rate
                Category of taxes                              Tax basis                               Tax rate
                                          VAT on sales is calculated based on 17% of
                                          sales revenue. VAT is calculated and paid
                                          based on the difference of VAT on sales
                                          deducting deductible input VAT. Tax on
    VAT                                                                                          17%
                                          exports managed by the Company, as approved
                                          by the taxation departments, is paid by
                                          adopting the policy of “tax exemption, tax
                                          deduction and tax rebate” since 1 Jan. 2002
    Business tax                             Taxable service income                              5%
    Urban maintenance and construction tax   Taxable VAT and business tax                        5%、7%
                                          The Company was identified as a high-tech
                                          enterprise in Dec. 2008, and passed the
                                          re-examination for the First Batch High-tech
                                          Enterprise in 2011 on 23 Aug. 2011, as well as
                                          won the “Certificate of High-tech Enterprise”
                                          with serial number GR201144000059 after
                                          approval by Department of Science and
                                          Technology      of      Guangdong       Province,
                                          Department     of    Finance      of   Guangdong
    Enterprise income tax                    Province, Guangdong Provincial Bureau of 15%
                                          State Taxation and Guangdong Provincial
                                          Bureau of Local Taxation. In accordance with
                                          relevant provisions in Corporate Income Tax
                                          Law of the People's Republic of China and the
                                          Administration Measures for Identification of
                                          High-tech Enterprises promulgated in 2007, the
                                          Company paid the corporate income tax based
                                          on a tax rate of 15% within three years since 1
                                          Jan. 2011.
    Education expenses surcharge             Current turnover tax in current                     3%
    Local education expense surcharge        Current turnover tax in current                     2%The income tax rates adopted by each subsidiary and branch factoryThe subsidiaries of the Company, including Foshan Taimei Times Lamps and Lanterns Co., Ltd., and FoshanChanchang Electric Appliance (Gaoming) Co., Ltd., Foshan Chansheng Electronic Ballast Co., Ltd., NanjingFozhao Lighting Components Manufacturing Co., Ltd., Foshan Electrical & Lighting (Xinxiang) Co., Ltd.,Foshan Electrical and Lighting Engineering Co., Ltd., Guangdong Fozhao Leasing Co., Ltd. and Foshan LightingLamps and Lanterns Co., Ltd. whose enterprise income tax rate is 25%.
                                                                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.The subsidiary of the Company—Suzhou Mont Lighting Co., Ltd. is a high-tech enterprise and should calculateand submit the corporate income tax according to 15% of the income tax payable.2. Tax preference and official documents—The Company has been certified as a high-tech enterprise in December 2008, and passed the re-examination forthe First Batch High-tech Enterprise in 2011 on 16 January 2011, as well as won the “Certificate of High-techEnterprise” with serial number GR201144000059 after approved by Department of Science and Technology ofGuangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial Bureau of StateTaxation and Guangdong Provincial Bureau of Local Taxation. In accordance with relevant provisions inCorporate Income Tax Law of the People's Republic of China and the Administration Measures for Identificationof High-tech Enterprises promulgated in 2007, the Company paid the corporate income tax based on a tax rate of15% within three years since 1 Jan. 2011.—The subsidiary of the Company—Suzhou Mont Lighting Co., Ltd. is considered as a high-tech enterprise inAug. 2012, which won the “Certificate of High-tech Enterprise” with serial number GR201232000797 afterapproved by Department of Science and Technology of Jiangsu Province, Department of Finance of JiangsuProvince, Jiangsu Provincial Bureau of State Taxation and Jiangsu Provincial Bureau of Local Taxation. Inaccordance with relevant provisions in Corporate Income Tax Law of the People's Republic of China and theAdministration Measures for Identification of High-tech Enterprises promulgated in 2007, it paid the corporateincome tax based on a tax rate of 15% within three years since 1 Jan. 2012.3. Other explanationNaughtVI. Business combination and consolidated financial statements1. Subsidiaries(1) Subsidiaries obtained by establishment and investment
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                                                                2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
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                           Manufa                           42,000,                                      25,473,
    Applian compan Foshan               72,782, products                         70.00% 70.00% Yes
                           cture                             000.00                                      949.07
    ce         y                        944.00     and
    (Gaomi                                         accessor
    ng) Co.,                                       ies,
    Ltd.                                           installati
                                               on and
                                               consulta
                                               ncy
                                               business
                                               of
                                               relevant
                                               engineer
                                               ing
    Foshan                                         Researc
    Taimei Limited                                 h,
                           Manufa                           350,000                                      6,282,0
    Times      compan Foshan            500,000 develop                          70.00% 70.00% Yes
                           cture                                .00                                        92.90
    Lamps      y                        .00        ment,
    and                                            producti
                                                                2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
    Lantern                                         on and
    s Co.,                                          sales of
    Ltd.                                            lighting,
                                                househo
                                                ld
                                                applianc
                                                es and
                                                accessor
                                                ies and
                                                other
                                                lighting
                                                products
                                                R&D
                                                and
                                                producti
                                                on of
                                                electric
                                                light
                                                source
    Foshan                                          lamp
    Electric                                        products
    al and                                          and
           Limited
    Lighting                    Manufa              relevant    50,077,           100.00   100.00
           compan Foshan              50,000,                                                   Yes
    Enginee                     cture               electric    000.00                %         %
           y                          000.00
    ring                                            engineer
    Co.,                                            ing
    Ltd.                                            material
                                                s, metal
                                                material
                                                s and
                                                non-met
                                                al
                                                material
                                                s
                                                Producti
                                                on andFoshan
                                                sales ofElectric
           Limited                              electrical &
           liability Xinxian Manufa             light       35,418,           100.00   100.00
    Lighting                              35,418,                                                   Yes
           compan g         cture               source      439.76                %         %
    (Xinxia                               439.76
           y                                    equipmeng) Co.,
                                                nt andLtd.
                                                electric
                                                light
                                                              2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                            source
                                            products
                                            , sales
                                            of
                                            accessor
                                            ies of
                                            electric
                                            light
                                            source,
                                            electric
                                            light
                                            source
                                            material
                                            s,
                                            electric
                                            engineer
                                            ing
                                            material
                                            s,
                                            accessor
                                            ies for
                                            motor
                                            vehicles
                                            , lamps
                                            and
                                            compon
                                            ents
                                            Financi
                                            ng leas
                                            e busin
                                            ess, lea
                                            sing buGuangd
                                            siness,ong
                                            consultaFozhao
           Limited       Financia           ncy of
    Financia                                                  200,000           100.00   100.00
           compan Foshan l          200,000 leasing                                           Yes
    l                                                         ,000.00               %         %
           y             industry ,000.00 transactiLeasing
                                            on andCo.,
                                            guaranteLtd.
                                            e,     leas
                                            e transa
                                            ction ad
                                            visory a
                                            nd guar
                                                                     2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                   antee, n
                                                   ew ener
                                                   gy vehi
                                                   cles an
                                                   d major
                                                       compo
                                                   nents, fi
                                                   nancing
                                                       lease a
                                                   nd servi
                                                   ce of li
                                                   ghting
                                                   energy
                                                   saving
                                                   products
                                                       and en
                                                   gineerin
                                                   g
                                                   R&D,
                                                   develop
                                                   ment,
                                                   produce
                                                   ; electric
                                                   light
                                                   source
                                                   products
                                                   , electric
                                                   light
                                                   sourceFoshan
           Limited                                 equipmelighting
           liability            Manufa             nts,          15,000,           100.00   100.00
    applianc               Foshan            15,000,                                                     Yes
           compan               cture              assorted      000.00                %         %
    e Co.,                                   000.00
           y                                       equipmeLtd.
                                                   nt       of
                                                   light
                                                   source,
                                                   light
                                                   source
                                                   material
                                                   s, lamps
                                                   and
                                                   accessor
                                                   ies,
                                                   electric
                                                      2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                        material
                                        s, motor
                                        vehicle
                                        accessor
                                        ies,
                                        househo
                                        ld
                                        electrica
                                        l
                                        applianc
                                        es,
                                        electrica
                                        l
                                        receptac
                                        les,
                                        switches
                                        ,      fire
                                        products
                                        ,
                                        ventilati
                                        on
                                        equipme
                                        nt, LED
                                        products
                                        ;
                                        domesti
                                        c trade,
                                        import
                                        and
                                        export
                                        of goods
                                        and
                                        technolo
                                        giesParticulars about subsidiaries obtained by establishment and investment—Foshan Chansheng Electronic Ballast Co., Ltd. was invested and established by the Company and Mr. MaHenglai and had set up and obtained license for business corporation on 26 Aug. The Company holds 75%equities of the said company; therefore the said subsidiary was included into the scope of the consolidatedfinancial statements since date of the foundation.On 24 Dec. 2013, the Company and Mr. Ma Henglai signed the equity transfer agreement. The Companypurchased 25% equity of Foshan Chansheng Electronic Ballast Co., Ltd. held by Mr. Ma Henglai. After thepurchasing, the Company held 100% equity of Foshan Chansheng Electronic Ballast Co., Ltd.—Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., who is the Sino-foreign joint ventures invested andestablished by the Company and Prosperity Lamps and Components Ltd, had obtained license for business
                                                         2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.corporation on 23 Aug. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of GaomingDistrict, Foshan with document “MWJMY Zi [2005] No. 79”. The Company holds 70% equities of the saidcompany; therefore the said subsidiary was included into the scope of the consolidated financial statements sincedate of the foundation.—Foshan Taimei Times Lamps and Lanterns Co., Ltd., who is the Sino-foreign joint ventures invested andestablished by the Company and Reback North America Investment Limited, had obtained license for BusinessCorporation on 5 Dec. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of GaomingDistrict, Foshan with document “MWJMY Zi [2005] No. 97”. The Company holds 000% equities of the saidcompany; therefore the said subsidiary was included into the scope of the consolidated financial statements sincedate of foundation.—Foshan Electrical and Lighting Engineering Co., Ltd. (its predecessor was “Foshan Lighting Lamps andLanterns Co., Ltd.”), which is invested and established by the Company together with Foshan HaozhiyuanTrading Co., Ltd., Shanghai Liangqi Electric Co., Ltd, Changzhou Sanfeng Electrical & Lighting Co., Ltd., HenanXingchen Electrical & Lighting Co., Ltd., Foshan Hongbang Electrical & Lighting Co., Ltd., Hebei JinfenTrading Co., Ltd., obtaining its license for Business Corporation on 27 Mar. 2009. The Company holds 60%equities of this company. Therefore the said subsidiary was included into the scope of the consolidated financialstatements since date of the foundation.On 25 Sep. 2009 and 19 Nov. 2010, the equity transfer agreement was signed between the Company and theminority shareholders, in which the minority shareholders respectively transferred their equities of FoshanLighting Lamps and Lanterns Co., Ltd. to the Company. After transfer, the Company holds 100% equities ofFoshan Lighting Lamps and Lanterns Co., Ltd.—Foshan Electrical & Lighting (Xinxiang) Co., Ltd. is a limited liability company which is invested andestablished by the Company, obtaining its license for Business Corporation on 17 Apr. 2009. The holds 100%equities of the said company, therefore the said subsidiary was included into the scope of the consolidatedfinancial statements since date of foundation. On 27 Aug. 2013, the 3rd Session of the 7th Board of Directorsreviewed and approved to change the name of Foshan Lighting Lamps and Lanterns Co., Ltd. to Foshan Electricaland Lighting Engineering Co., Ltd.; at the same time invested RMB 2 million in cash, thus making the registeredcapital of Foshan Electrical and Lighting Engineering Co., Ltd. of RMB 35,418,439.76 Yuan.—Guangdong Fozhao Leasing Co., Ltd. is a limited liability company invested and established by the Company,which had obtained its license for Business Corporation on 31 May 2011. And the Company holds 100% equitiesof this company. Therefore the said subsidiary was included into the scope of the consolidated financialstatements since date of foundation.—Foshan Lighting Lamps & Components Co., Ltd. is a limited liability company invested and established by theCompany with the registered capital of RMB 15 million, which had obtained its license for Business Corporationon 8 May 2013. And the Company holds 100% equities of this company. Therefore the said subsidiary wasincluded into the scope of the consolidated financial statements since date of foundation.(2) Subsidiaries obtained by business combination under same controlInapplicable(3) Subsidiaries obtained by business combination not under same control
                                                                                                           Unit: RMB Yuan
    Subsidia          Register Busines Register Busines Actual   Other    The       The     Include Minorit Deducti Balance
            Type
    ries            ed place s nature   ed   s scope amount essential proporti proporti    d in      y       ble       of
                                                                   2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                     capital                 of       investm    on of    on of    consolid interest minority parent
                                                           investm       ent    holding voting      ated            interests compan
                                                           ents at              shares    rights   stateme                      y’s
                                                             the                                      nt                      equity
                                                           period-e                                                            after
                                                             nd                                                              deductin
                                                                                                                               g the
                                                                                                                             differen
                                                                                                                              ce that
                                                                                                                              loss of
                                                                                                                             minority
                                                                                                                             interests
                                                                                                                              exceed
                                                                                                                              equity
                                                                                                                             obtained
                                                                                                                                by
                                                                                                                             minority
                                                                                                                             sharehol
                                                                                                                               ders
                                               Producti
                                               on of
                                               energy-s
                                               aving
                                               photoele
                                               ctric
                                               source
                                               products
    Nanjing                                        , lamps
    Fozhao                                         and
    Lighting                                       lanterns,
    Compon Limited                                 light
                            Manufa   41,683,               72,000,               100.00   100.00
    ents       Compan Nanjing                      source                                              Yes
                            cture        200                000.00                   %         %
    Manufa y                                       equipme
    cturing                                        nts,
    Co.,                                           illumina
    Ltd.                                           tion
                                               engineer
                                               ing;
                                               technolo
                                               gical
                                               develop
                                               ment of
                                               energy-s
                                               aving
                                                          2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                            and
                                            producti
                                            on of
                                            relevant
                                            compon
                                            ents;
                                            sales of
                                            self-pro
                                            duction
                                            products
                                            Licensin
                                            g
                                            project:
                                            naught.
                                            general
                                            manage
                                            ment
                                            project:
                                            develop
                                            ment,
                                            producti
                                            on,
                                            sales:
                                            semicon
                                            ductorSuzhou
                                            lighting
    Mont     Limited
                         Manufa             applianc 24,360,                                       16,628,
    Lighting Compan Suzhou            23,634,                              50.50% 50.50% Yes
                         cture              es,        000.00                                      352.68
    Co.,     y                        900.00
                                            hardwarLtd.
                                            e and
                                            software
                                            system
                                            of drive
                                            circuit
                                            and
                                            control
                                            system;
                                            (the
                                            producti
                                            on is
                                            limited
                                            to the
                                            operatio
                                            n of
                                                    2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.
                                       branch
                                       instituti
                                       on)
                                       lighting
                                       engineer
                                       ing
                                       Design,
                                       installati
                                       on;
                                       engaged
                                       in the
                                       semicon
                                       ductor
                                       lighting
                                       devices,
                                       applianc
                                       e,
                                       import
                                       &
                                       export
                                       business
                                       of
                                       hardwar
                                       e and
                                       software
                                       system
                                       of drive
                                       circuit
                                       and
                                       control
                                       systemOther notes to subsidiaries obtained by business combination not under same control:—In accordance with the equity transfer agreement signed between the Company and Prosperity Lamps andComponents Ltd. on 27 Aug. 2008, Prosperity Lamps and Components Ltd. transferred 100% equities of NanjingFozhao Lighting Components Manufacturing Co., Ltd. (used to known as—Prosperity (Nanjing) LightingComponents Co., Ltd., and changed name to—Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. on15 Nov. 2010.) to the Company. Therefore, Prosperity (Nanjing) Lighting Components Co., Ltd. became thewholly-owned subsidiary of the Company. The said subsidiary was included into the scope of the consolidatedfinancial statements since merger date.—In accordance with the equity transfer agreement signed between the Company and Mr. Zhang Yingchun on 25Apr. 2014, Mr. Zhang Yingchun transferred 34.09296% equities of Suzhou Mont Lighting Co., Ltd. to theCompany, and at the same time when purchased the 34.09296% equities of Suzhou Mont Lighting Co., Ltd., theCompany used its self-owned funds to increase the capital of Suzhou Mont Lighting Co., Ltd., which made the
                                                                 2014 Semi-annual Report of Foshan Electrical and Lighting Co., Ltd.Company held 50.50% equities of Suzhou Mont Lighting Co., Ltd. The said subsidiary was included into thescope of the consolidated financial statements since being increased the capital as well as expanded the shares.2. Special purpose entities or operating entities with control right formed by entrusted operation or leaseInapplicable3. Explanation on changes in consolidated scopeExplanation on changes in consolidated scope:√ Applicable □InapplicableComparing to last year, this year increased one consolidation unit, becauseThe Company held the 10th meeting of the 7th Board of Directors, which reviewed and approved the Proposal onthe Acquisition of the Equity of Suzhou Mont Lighting Co., Ltd. and the Increase of the Capital and Expand of theShares (for details, please refer to the announcement disclosed on www.cninfo.com on 25 Apr. 2014, with theannouncement No.: 2014-019. After the completion of the acquisition of the equity and the expandation of theshares, the Company held 50.50% equities of Suzhou Mont Lighting Co., Ltd. The said subsidiary was includedinto the scope of the consolidated financial statements since the merger.Comparing to last year, this year decreased none consolidation unit, becauseNaught4. Subsidiaries that newly combined into consolidation scope in the reporting periodThe subsidiaries, special purpose entities and operating entities with control right formed by entrusted operation or lease that newlyincluded in the consolidated scope
                                                                                                                       Unit: RMB Yuan
                          Name                                       Closing net assets