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佛山照明(000541)公告正文

粤照明B:2014年年度报告(英文版)

公告日期:2015-04-27

                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
            2014 Annual Report
                April 2015
                                                         2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
             Section I. Important Reminders, Contents & TermsThe Board of Directors, the Supervisory Committee, directors, supervisors and senior managementstaff of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”) warrantthat this report is factual, accurate and complete without any false record, misleading statement ormaterial omission. And they shall be jointly and severally liable for that.All directors have attended in person the board session for reviewing this report except thefollowing:
    Name              Position           Reason for not attending the session in person       Name of the proxy
    Ye zaiyou         Director           ON business                                          Liu xingmingThe Company’s profit distribution preplan upon review and approval of this board session: Basedon the total shares of the Company as at 31 Dec. 2014, a cash dividend of RMB 2.20 (tax included)and 0 bonus shares (tax included) will be distributed for every 10 shares held by shareholders, and 3shares will be increased to all shareholders for every 10 shares held by them with the capitalreserves.Pan Jie, company principal and chief of the accounting work, and Yin Jianchun, chief of theaccounting organ (chief of accounting), hereby confirm that the Financial Report enclosed in thisreport is factual, accurate and complete.GP Certified Public Accountants LLP has issued a standard unqualified audit report for theCompany.The accounting data and financial report in this report have all been audited by GP Certified PublicAccountants LLP. This report is prepared in both Chinese and English. Should there be anyunderstanding discrepancy between the two versions, the Chinese version shall prevail.The future plans and some other forward-looking statements involved in this report shall not beconsidered as virtual promises of the Company to investors. And investors are kindly reminded topay attention to possible risks.
                                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                             Contents2014 Annual Report ........................................................................................................................... 1Section I. Important Reminders, Contents & Terms ...................................................................... 2Section II. Company Profile .............................................................................................................. 6Section III. Accouonting & Financial Indicator Highlights ........................................................... 8Section IV. Report of the Board of Directors ................................................................................. 11Section V. Significant Events ........................................................................................................... 46Section VI. Changes in Shares & Particulars about Shareholders.............................................. 60Section VII. Preferred Shares ......................................................................................................... 66Section VIII. Directors, Supervisors, Senior Management Staff & Employees ......................... 67Section IX. Corporate Governance ................................................................................................ 77Section X. Internal Control ............................................................................................................. 86Section XI. Financial Report ........................................................................................................... 88Section XII. Documents Available for Reference ........................................................................ 204
                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                   Terms
                     Term              Refers to                             Specific contents
    The Company, Company, FSL              Refers to Foshan Electrical and Lighting Co., Ltd.
    CSRC                                   Refers to China Securities Regulation Commission
    SZSE                                   Refers to Shenzhen Stock Exchange
                                                   Shareholders’ General Meeting of Foshan Electrical and Lighting Co.,
    Shareholders’ General Meeting         Refers to
                                                   Ltd.
    Board of Directors                     Refers to Board of Directors of Foshan Electrical and Lighting Co., Ltd.
    Supervisory Committee                  Refers to Supervisory Committee of Foshan Electrical and Lighting Co., Ltd.
    Annual report auditor, GP              Refers to GP Certified Public Accountants LLP
    Yuan, Ten thousand Yuan, One Hundred               RMB Yuan, RMB Ten thousand Yuan, RMB One Hundred Million
                                       Refers to
    Million Yuan                                       Yuan
                                                    2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                               Reminder of Major RisksThe Company is in face of risks concerning market competition, rising operating costs, collection ofaccounts receivable, risk concerning investors’ claims for damages etc. Investors are kindlyreminded to pay attention to possible investment risks. For details, see “IX. Risks andcountermeasures” in Section IV in this report.
                                                                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                             Section II. Company ProfileI. Company information
    Stock abbreviation                 FSZM/YZMB                              Stock code                  000541/200541
    Stock exchange listed with         Shenzhen Stock ExchangeChinese name of the Company 佛山电器照明股份有限公司Abbr. of the Chinese name of
                                   佛山照明the CompanyEnglish name of the Company
                                   FOSHAN ELECTRICAL AND LIGHTING CO.,LTD(if any)Abbr. of the English name of
                                   FSLthe Company (if any)Legal representative of the
                                   Pan JieCompany
    Registered address                 No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.ChinaPostal code for the registered
                                   528000address
    Office address                     No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.ChinaPostal code for the office
                                   528000address
    Internet   website     of    the
                                   www.chinafsl.comCompany
    Email address                      gzfsligh@pub.foshan.gd.cnII. Contact us
                                                           Company Secretary                 Securities Affairs Representative
    Name                                           Lin Yihui                                Huang Yufen
                                               No. 64, Fenjiang North Road, Chancheng   No. 64, Fenjiang North Road, Chancheng
    Contact address                                District, Foshan City, Guangdong         District, Foshan City, Guangdong
                                               Province, P.R.China                      Province, P.R.China
    Tel.                                           (0757)82966062          82810239       (0757)82966028
    Fax                                            (0757)82816276                         (0757)82816276
    E-mail                                         fsl-yh@126.com                           fslhyf@163.com
                                                                       2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.III. About information disclosure and where this report is placed
    Newspapers designated by the Company for                  China Securities Journal, Securities Times, Securities Daily, Ta Kung Pao
    information disclosure                                    (HK)Internet website designated by CSRC for disclosing
                                                          http://www.cninfo.com.cnthis report
                                                          Company Secretary Office, FSL Office Building, No. 64, Fenjiang NorthWhere this report is placed
                                                          Road, Chancheng District, Foshan City, Guangdong Province, P.R.ChinaIV. Change of the registered information
                                                                                            Registration code of
                         Registration date    Registration place     Business license No.                          Organizational code
                                                                                                  taxation
                                             Guangdong Province
                                             Administration for
    Initial registration   20 Oct. 1992                                 440000400010049         440601190352575        19035257-5
                                             Industry &
                                             Commerce
                                             Guangdong Province
    At the end of the                            Administration for
                       21 May 2014                                  440000400010049         440601190352575        19035257-5
    reporting period                             Industry &
                                             CommerceChanges of the main business since listing
                                             Unchanged(if any)Changes of the controlling shareholder (if
                                             Unchangedany)V. Other informationThe CPAs firm hired by the Company:
    Name                                  GP Certified Public Accountants LLP
                                      10/F, Guangdong Holdings Tower, 555 DongFeng Road East, Guangzhou, GuangdongOffice address
                                      Province, P.R.China
    Signing accountants                   Hong Wenwei and Chen DanyanSponsor engaged by the Company to conduct sustained supervision during the reporting period□ Applicable √ InapplicableFinancial consultant engaged by the Company to conduct sustained supervision during the reporting period□ Applicable √ Inapplicable
                                                                         2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
               Section III. Accounting & Financial Indicator HighlightsI. Major accounting data and financial indicatorsDoes the Company adjust retrospectively or restate accounting data of previous years due to change of the accounting policy orcorrection of any accounting error?□ Yes √ No
                                                                                              Increase or decrease of
                                                2014                     2013                 this year over last year         2012
                                                                                                        (%)
    Operating revenues (RMB Yuan)                3,068,641,200.17         2,526,679,810.53                        21.45%        2,201,910,731.89
    Net     profit        attributable   to
    shareholders     of     the   Company          266,125,048.97           251,831,356.38                         5.68%          400,466,745.11(RMB Yuan)
    Net     profit    attributable toshareholders of the Company after
                                               306,310,907.76           247,092,182.53                        23.97%          240,056,445.28extraordinary gains and losses(RMB Yuan)Net cash flows from operating
                                               305,638,745.34           204,756,881.88                        49.27%          437,396,852.06activities (RMB Yuan)
    Basic EPS (RMB Yuan/share)                               0.270                         0.26                    3.85%                     0.41
    Diluted EPS (RMB Yuan/share)                             0.270                         0.26                    3.85%                     0.41
    Weighted average ROE (%)                                9.08%                     8.69%                        0.39%                  14.06%
                                                                                              Increase or decrease of
                                          As at 31 Dec. 2014      As at 31 Dec. 2013          this year-end than last    As at 31 Dec. 2012
                                                                                                   year-end (%)
    Total assets (RMB Yuan)                      3,736,704,336.40         3,373,781,552.85                        10.76%        3,448,274,301.82
    Net     assets        attributable   to
    shareholders     of     the   Company        3,044,585,720.58         2,890,581,921.74                         5.33%        2,950,106,976.17(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√ Applicable □ Inapplicable
                                                                                                                              Unit: RMB Yuan
                                      Net profit attributable to shareholders of the          Net assets attributable to shareholders of the
                                                                       2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                     Company                                             Company
                                         2014                        2013                  Closing amount        Opening amountAccording to Chinese
                                        266,125,048.97               251,831,356.38          3,044,585,720.58      2,890,581,921.74accounting standardsItems and amounts adjusted according to international accounting standardsAccording to international
                                        266,125,048.97               251,831,356.38          3,044,585,720.58      2,890,581,921.74accounting standards2. Differences of net profit and net assets disclosed in financial reports prepared under overseas andChinese accounting standards√ Applicable □ Inapplicable
                                                                                                                     Unit: RMB Yuan
                                    Net profit attributable to shareholders of the    Net assets attributable to shareholders of the
                                                     Company                                             Company
                                         2014                        2013                  Closing amount        Opening amountAccording to Chinese
                                        266,125,048.97               251,831,356.38          3,044,585,720.58      2,890,581,921.74accounting standardsItems and amounts adjusted according to overseas accounting standardsAccording to overseas
                                        266,125,048.97               251,831,356.38          3,044,585,720.58      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√ Applicable □ Inapplicable
                                                                                                                     Unit: RMB Yuan
                     Item                             2014                   2013                 2012                 NoteGains/losses on the disposal of non-current
    assets (including the offset part of the asset       -1,287,703.94          9,418,476.76       182,392,244.82impairment provisions)Government grants recognized in the currentperiod, except for those acquired in the
    ordinary course of business or granted at             2,174,021.86          1,031,790.96         1,633,073.56certain quotas or amounts according to thegovernment’s unified standards
                                                                     2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Capital occupation charges on non-financial
    enterprises that are recorded into current                    0.00        1,981,349.56           553,325.09gains and lossesGains due to that the investment costs for
    the     Company      to   obtain    subsidiaries,associates and joint ventures are lower than
                                                        -17,112.47                 0.00                 0.00the enjoyable fair value of the identifiablenet assets of the investees when making theinvestmentsGains and losses on change in fair valuefrom tradable financial assets and tradablefinancial liabilities, as well as investmentincome from disposal of tradable financial
                                                     2,962,781.37          -109,530.85           -84,637.47assets and tradable financial liabilities andfinancial assets available for sales except foreffective hedging related with normalbusinesses of the Company
    Non-operating income and expense other                                                                         Projected liability
                                                    -51,945,691.06       -7,368,961.02        -3,022,341.29
    than the above                                                                                                 provisionsOther gain and loss items that meet the
                                                     1,499,406.22definition of an extraordinary gain/loss
    Less: Income tax effects                             -6,958,646.77          901,071.70        21,172,951.60
        Minority interests effects (after tax)         530,207.54          -687,120.14          -111,586.72
    Total                                               -40,185,858.79        4,739,173.85       160,410,299.83                 --Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains andLosses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item□ Applicable √ InapplicableNo such cases in the reporting period.
                                                    2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                   Section IV. Report of the Board of DirectorsI. Overview2014 witnessed both opportunity and worry for the lighting industry. The LED sector continued togrow rapidly but unfavorable factors also grew such as the declining physical economy, ceaselessnew technologies, the continuous impact on the original business model, the worsening competitionenvironment and oversupply. In face of the complex and changeable industry environment, weupheld “adjust structure, stabilize growth, focus on management and increase benefits” as ourguiding ideology, continued to adjust our product structure, optimized our marketing system,enhanced our execution of the annual budget and operating plans so as to ensure a stable growth ofthe business performance. For the reporting period, the Company achieved operating revenues ofRMB 3068.6412 million, up 21.45% from the year earlier; total profits of RMB 319.1284 million,up 6.68% year on year; and net profits of RMB 266.666 million, representing a YoY growth of5.70%. In the reporting period, we worked on the following tasks:1. Optimized product structure, and promoted the transformation and upgrade of traditional productsY2014 is the year when LED encountered fast development. Based on market demand and changes,the Company seized opportunities, input more on LED products in R&D, production, and sales,launched a series of hit LED products and new LED products in due time. Sales revenue of LEDascended from RMB 0.277 billion in 2013 to RMB 0.926 billion in 2014, representing a growth ratioof 233.99%. The company successfully completed the transformation from traditional lighting toLED, which made the Company grabbed a significant piece of pie in the developing LED market.2. Enhanced innovation on channels, and ensured business growthIn 2014, the Company carried on innovation on channels, and continually perfected and optimizedmarketing system. The Company reinforced on constructing exclusive shops, improved the capabilityof showing the terminal image, and transited FSL from “a brand to the industry” to “a brand to thepublic”. The Company carried out aggressive marketing strategies, convened 186 marketingmeetings across the country for the past year. The Company set up the business division ofcommercial lighting and released Ming Jiang Hui, the high-end brand for the engineering channel. Inrespect of E-business, the Company separately set us E-business division, authorized platforms
                                                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.including Tmall and Jing Dong for selling our products, expanded on-line distributors, and effectivelyraised the exposure ratio of the Company to multiple channels. In respect of overseas market, theCompany positively took measures against the downturn of the gross export market, actively adjustedproduct and client structure, put emphasis on chasing and serving key clients, developed potentialvalues of key clients, improved the business performance of single client, set up FSL brand team atthe same time, positively developed businesses in emerging market, obtained good result, overfulfilled the goal set in the year-begin, and kept the sustainable and stable growth of overseas business.In future, in deeper accordance with consuming habits and styles, the Company will further promotethe communitization of channels and enhance the end-service capability.3. Vigorously developed new products, and added profit driversAiming at LED product features including diversified kinds, rapid upgrading and replacement speed,as well as short cycling periods, the front-line sales and R&D staffs of the Company researched deepinto the market, took market demands as orientation, continually developed new products, especiallynew LED products, and enriched the Company’s product lines, which not only accelerated producttransformation of the Company, but also added new profit drivers for the Company.4. Improved internal management level, and established scientific management systemFirstly, the Company improved management level and reinforced cost control. The Company appliedSAP system and effectively standardized production management; reinforced energy management,improved energy-consuming equipment, and cut down energy cost; adopted the antitheses forstandard cost, and reduced the waste of raw materials; intensified on procurement management,integrated procurement resources, and strengthened the capability of price-negotiation against rawmaterial suppliers; thoroughly carried out budget management, and reinforced the force of executingbudget management by supervising and controlling on budgets of departments.Secondly, the Company put performance management into effect and mobilized the initiatives ofemployees. The Company innovated remuneration mechanism, strengthened performanceassessment and human resource management, showed the remuneration principle of more pay formore work, stuck up for the internal fairness and external competitiveness of remuneration, andrealized the mutual development of both the Company and employees.5. Enhanced internal construction of the Company, and pushed forward the Company’s healthydevelopment
                                                                    2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.In the reporting period, in line with requirements for listed companies, the Company disclosed relatedinformation in due time, standardized company operation, continuously and steadily impelled theprocess of effective implementation of documents for operation system of internal control standards,further strengthened the execution and practice of the system of internal control standards, andconsolidated internal control results on the basis of strengthening daily supervision and specialinspection.II. Main business analysis1. OverviewOverview of the reporting period progress of development strategies and business plans disclosed inprevious periods:In face of a declining physical economy and a complex and changeable industry environment in2014, the Company, under the leadership of the board and management, stuck to the annualoperating plans, seized opportunities in time arising from the rapid growth of the LED sector, andmanaged to achieve a stable growth in the main business through effective measures such asadjusting the product structure, constantly updating products and technology, continuouslyenhancing internal management, strictly controlling costs and vigorously expanding markets. Forthe main business in the reporting period, sales income recorded RMB 3.041 billion, up 21.58%from last year, of which the domestic sales income recorded RMB 2.161 billion, up 28.59% fromlast year, and the overseas sales income recorded RMB 0.88 billion, up 7.2% from last year.State the reasons why the Company’s actual business performance is 20% lower or higher than the earning forecast for the reportingperiod which has been publicly disclosed earlier:□ Applicable √ InapplicableChanges in the main operational model□ Applicable √ Inapplicable2. RevenuesIs the Company's product sales revenue more than its service revenue?√ Yes □ No
        Industry                 Item               Unit                 2014                  2013               YoY +/-%
                        Sales volume        Piece                       1,046,376,108        1,215,921,627               -13.94%Lighting fixtures and
                        Output              Piece                         993,887,262        1,061,333,192                -6.35%lamps
                        Stock               Piece                         134,763,101          145,193,725                -7.18%
                                                                         2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Reasons for any over-30% YoY movement of the data above:□ Applicable √ InapplicableMajor orders on hand:□ Applicable √ InapplicableSignificant change or adjustment of the Company’s products or services during the reporting period:□ Applicable √ InapplicableMajor customers:
    Total sales to the top 5 customers (RMB Yuan)                                                                           436,177,042.93Ratio of the total sales to the top 5 customers to the
                                                                                                                                14.21%annual total sales (%)Information about the top 5 customers:√ Applicable □ Inapplicable
    Serial No.                Name of customer                         Sales (RMB Yuan)              Proportion in annual total sales (%)
    1       Enterprise unit 1                                                  248,392,951.31                                    8.09%
    2       Enterprise unit 2                                                   51,487,747.58                                    1.68%
    3       Enterprise unit 3                                                   49,252,633.46                                    1.61%
    4       Enterprise unit 4                                                   46,475,691.92                                    1.51%
    5       Enterprise unit 5                                                   40,568,018.66                                    1.32%
    Total                             --                                            436,177,042.93                                  14.21%Other information about the major customers√ Applicable □ InapplicableAmong the top 5 customers, the 3th customer and the 5th customer is a related party of the Company while theother three are not.3. CostsClassified by industry:
                                                                                                                        Unit: RMB Yuan
                                                         2014                                    2013
                                                                Proportion in                           Proportion in
    Industry              Item                                                                                          YoY +/- (%)
                                             Amount         operating costs            Amount       operating costs
                                                                   (%)                                   (%)Lighting fixtures
                                         2,230,438,495.76              99.26% 1,874,719,042.97                 99.00%            18.97%and lampsLighting fixtures Raw materials
                                         1,438,316,556.44              64.01% 1,142,625,698.51                 60.45%            25.88%and lamps
                                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Lighting fixtures Labor
                                           413,229,338.55              18.39%        368,240,867.93               19.48%             12.22%and lampsLighting fixtures Depreciation
                                            58,899,983.77                2.62%        71,406,530.23                 3.78%            -17.51%and lampsClassified by product:
                                                                                                                            Unit: RMB Yuan
                                                       2014                                         2013
                                                               Proportion in                               Proportion in
    Product                Item                                                                                               YoY +/- (%)
                                             Amount            operating costs         Amount          operating costs
                                                                  (%)                                       (%)Traditional
                                         1,527,938,050.39         68.00%           1,654,087,055.19          87.50%              -7.63%lighting products
    Traditional         Raw materials
                                         985,303,382.84           43.85%           1,008,152,332.97          53.33%              -2.27%lighting products
    Traditional         Labor
                                         283,078,341.37           12.60%           324,903,326.24            17.19%             -12.87%lighting products
    Traditional         Depreciation
                                          40,348,804.30            1.80%            63,002,836.48             3.33%             -35.96%lighting productsLED lighting
                                         702,500,445.37           31.26%           220,631,987.78            11.67%             218.40%products
    LED lighting        Raw materials
                                         453,013,173.60           20.16%           134,473,365.54             7.11%             236.88%products
    LED lighting        Labor
                                         130,150,997.18            5.79%            43,337,541.69             2.29%             200.32%products
    LED lighting        Depreciation
                                          18,551,179.47            0.83%             8,403,693.75             0.44%             120.75%productsMajor suppliers:
    Total purchases from the top 5 suppliers (RMB Yuan)                                                                       289,432,957.72Ratio of the total purchases from the top 5 suppliers to the
                                                                                                                                     15.62%annual total purchases(%)Information about the top 5 suppliers:√ Applicable □ Inapplicable
                                                               Procurement amount (RMB          Proportion in annual total procurement
    Serial No.                 Name of supplier
                                                                           Yuan)                                  amount (%)
      1       Enterprise unit 1                                                142,413,566.10                                         7.69%
                                                                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
        2      Enterprise unit 2                                          58,431,987.28                                       3.15%
        3      Enterprise unit 3                                          33,978,824.72                                       1.83%
        4      Enterprise unit 4                                          28,049,218.92                                       1.51%
        5      Enterprise unit 5                                          26,559,360.70                                       1.43%
    Total                              --                                    289,432,957.72                                      15.62%Other information about the major suppliers√ Applicable □ InapplicableAmong the top 5 suppliers, the 4th supplier is a related party of the Company while the other four are not.4. Expense
                                                                                                  Unit: RMB Yuan
            Item                        2014                  2013                 YoY +/-%              Reason for change
    Selling expenses             207,880,504.54           133,779,078.70            55.39%              Sales increased.
    Administrative               236,233,239.29           199,917,005.49            18.17%expenses
                             -9,565,959.04            -4,230,937.19             -126.10%            The interest on term depositsFinancial expenses
                                                                                                    increased.
    Income tax expenses          52,462,491.85            46,864,161.54             11.95%
    Total                        487,010,276.64           376,329,308.54            29.41%5. R&D expensesIn order to increase the market competitiveness of products, the Company proactively developed high-efficientlighting products featuring energy saving and environmental protection, increased the R&D input for LEDproducts, continuously developed new products, and increased the technological contents of products throughcontinuously improving technologies and production processes. In the reporting period, the Company spent RMB
    98,810,000.00          in R&D, accounting for3.22 % of the current operating revenues.6. Cash flows
                                                                                                                       Unit: RMB Yuan
               Item                            2014                             2013                        YoY +/-(%)Subtotal of cash inflows from
                                               2,975,103,040.68                  2,826,717,360.23                             5.25%operating activitiesSubtotal of cash outflows from
                                               2,669,464,295.34                  2,621,960,478.35                             1.81%operating activities
    Net cash flows from operating                    305,638,745.34                    204,756,881.88                            49.27%
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.activitiesSubtotal of cash inflows from
                                                     46,553,241.51                    130,801,370.00                               -64.41%investing activitiesSubtotal of cash outflows from
                                                     98,620,391.12                    111,512,170.50                               -11.56%investing activitiesNet cash flows from investing
                                                    -52,067,149.61                     19,289,199.50                             -369.93%activitiesSubtotal of cash outflows from
                                                   160,694,772.73                     307,968,509.92                               -47.82%financing activitiesNet cash flows from financing
                                                   -160,694,772.73                   -307,968,509.92                               -47.82%activitiesNet increase in cash and cash
                                                     92,025,411.38                     -87,775,066.52                             204.84%equivalentsReasons for any over-30% YoY movement of the data above:√ Applicable □ Inapplicable1. Net cash flows from operating activities increased 49.27% from last year mainly because the goods payments received increasedand the payments for materials decreased.2. Net cash flows from investing activities decreased 369.93% from last year mainly because the cash received from operatingactivities decreased.3. Net cash flows from financing activities decreased 47.82% from last year mainly because the dividends decreased.4. Net increase in cash and cash equivalents increased 204.84% from last year mainly because the goods payments received increasedand the dividends paid decreased.Reasons for a big difference between the operating cash flows and the net profit:□ Applicable √ InapplicableIII. Breakdown of main business
                                                                                                                           Unit: RMB Yuan
                                                                                Increase/decrease                        Increase/decrease
                                                                                                    Increase/decrease
                           Operating                        Gross profit rate     of operating                            of gross profit
                                          Operating cost                                            of operating cost
                           revenue                                (%)           revenue over last                        rate over last year
                                                                                                    over last year (%)
                                                                                    year (%)                                    (%)Classified by industry:Lighting fixtures
                        3,040,544,631.03 2,230,438,495.76            26.64%              21.58%               18.97%                  1.60%and lampsClassified by product:Traditional
                        2,114,355,116.21 1,527,938,050.39            27.74%               -4.91%              -7.63%                  2.21%lighting products
                                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.LED lighting
                        926,189,514.82      702,500,445.37               24.15%            233.99%             218.40%                3.71%productsClassified by region:
    China               2,160,911,351.32 1,612,043,755.15                    25.40%             28.59%              24.72%                2.32%
    Overseas                879,633,279.71      618,394,740.61               29.70%              7.20%               6.22%                0.65%Where the Company’s accounting standard of the main business data above changed during the reporting period, give the mainbusiness data of the latest year adjusted according to the accounting standard at the end of the reporting period:□ Applicable √ InapplicableIV. Asset and liability analysis1. Major changes of asset items
                                                                                                                           Unit: RMB Yuan
                          As at 31 Dec. 2014                 As at 31 Dec. 2013
                                       Proportion in                     Proportion in Proportion
                                                                                                           Explain any major change
                        Amount          total assets        Amount        total assets change(%)
                                           (%)                               (%)
    Monetary funds     989,718,395.60            26.49% 897,675,824.22              26.61%      -0.12%Accounts
                   322,951,674.45             8.64% 390,216,735.62              11.57%      -2.93% Goods payments were collected.receivable
                                                                                                     Inventories were increased to get
    Inventories        625,794,972.48            16.75% 516,804,156.44              15.32%      1.43%
                                                                                                     ready for growing sales.Investing real
                                0.00          0.00%               0.00          0.00%estateLong-term
                                                                                                     Equity interests in some joint
    equity                  3,689,724.39          0.10% 18,203,091.82               0.54%       -0.44%
                                                                                                     ventures were sold.investment
                                                                                                     Some assets were disposed and
    Fixed assets       463,267,701.29            12.40% 472,740,489.84              14.01%      -1.61%
                                                                                                     impairment provisions were made.Construction in
                     90,862,098.21            2.43% 75,044,472.56               2.22%       0.21% Input to construction increased.progress2. Major changes of liability items
                                                                                                                           Unit: RMB Yuan
                                       2014                              2013
                                                                                           Proportion
                                           Proportion in                   Proportion in                     Explain any major change
                             Amount                           Amount                       change(%)
                                             total assets                   total assets
                                                                       2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                (%)                        (%)
    Short-term borrowings             0             0%             0            0%            0%
    Long-term borrowings              0             0%             0            0%            0%3. Assets and liabilities measured at fair value√ Applicable □ Inapplicable
                                                                                                                      Unit: RMB Yuan
                                       Gain/loss on Cumulative fair Impairment         Amount
                                         fair value                                                  Amount sold in
                     Opening                         value change provisions in      purchased in                         Closing
      Item                             change in the                                                  the reporting
                     amount                          recorded into the reporting     the reporting                        amount
                                         reporting                                                       period
                                           period       equity        period            periodFinancial assets1. Financialassetsmeasured atfair value andof whichchanges are
    recorded into       3,903,197.90            8,660.00                                     11,660.00     3,903,197.90        20,320.00currentgains/losses(excludingderivativefinancialassets)3.Available-for-s
                   62,634,402.88                       52,273,824.96                                                  114,908,227.84ale financialassetsSubtotal of
                   66,537,600.78            8,660.00 52,273,824.96                       11,660.00     3,903,197.90 114,928,547.84financial assetsTotal of the
                   66,537,600.78            8,660.00 52,273,824.96                      116,600.00     3,903,197.90 114,928,547.84aboveFinancial
                                0.00                                                                                            0.00liabilitiesDid any significant change occur to the attribute of the Company’s main asset measurement during the reporting period?□ Yes √ No4. Main assets overseas□ Applicable √ Inapplicable
                                                              2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.V. Core competitiveness analysisThe core competitiveness of the Company mainly reflects on fours aspects listed below:Channel advantageThe Company has been sticking to the marketing strategy of deeply focusing and refining channels. Through yearsof development and experience accumulation, the Company currently has four major sales channels, which containsthe circulation and wholesales channel, the exclusive shop channel, the E-business retail channel, and theengineering commercial lighting channel, forming a marketing network covering the whole country. Replying onstrong and perfect sales channels, products of the Company can rapidly enter the market, which has significantlyimproved the Company’s market development capability and competitiveness.Brand advantageThe Company keeps focusing on the positioning, core value, and features of FSL brand, and continually improvedthe brand recognition and reputation of FSL brand by product design, end sales, advertisement, special lightingexhibition, and so on. At present, FSL and Fen Jiang among the three brands of the Company are both famoustrademarks in China. The FSL brand has become one of the most influential and popular brands in China, and thepowerful brand influence has become the main driver for continuous sales growth of the Company.Technology advantageThe Company has always been attaching importance to R&D of new products and technologies, increasing the inputon independent innovation on technologies and products, and perfecting the improvement process for R&D andtechnique of all products. The Company absorbs and trains technical talents, set up innovative incentive mechanismand performance mechanism, and fully provides with supports in fund, talents, and mechanisms.Scale advantageAs one of the enterprises to first step into the industry of producing and selling lighting products, the Companypossesses the manufacture culture of refining production and the large-scale manufacturing capability by years ofexperience accumulation. The Company has production bases in Foshan, Nanjing, Xinxiang, and Suzhou,contributing annual output of over 99388.73 ten thousand units. The large-scale and centralized production bringsobvious economic benefits to the Company, which not only shows in manufacture cost of products, but also showsin aspects such as raw material procurement and product pricing.VI. Investment analysis1. Investments in equities of external parties(1) Investments in external parties√ Applicable □ Inapplicable
                                            Investments in external parties
    Investment amount in 2014 (RMB Yuan)   Investment amount in 2013 (RMB Yuan)                       +/-%
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                   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         application
                                          products,     equipment           and          systems,
                                          energy-saving          optoelectronic                 and
    Hefei Guoxuan High-tech Power Energy      electronic    products,          equipment           and
                                                                                                                                            14.84%
    Co., Ltd.                                 systems, and lithium power emergency
                                          supply, power-driven tools, transportation
                                          tools and chargers; operation and agent
                                          service of import and export of products
                                          and technologies; design and construction
                                          of lighting projects for cities and roads
                                          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                                                                                   6.91%
    Foshan branch of Guangdong                Banking services                                                                        Less than 5.00%
                                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Development Bank
    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 reporting Accountin                                                  Equity
    name       variety    cost (RMB           dings         ding ratio          dings         ding ratio        (RMB            period         g title       source
                             Yuan)           (share)             (%)            (share)          (%)            Yuan)           (RMB
                                                                                                                                Yuan)
                                                                                                                                            Available-fChina
             Commerci 30,828,816                                                                              114,908,22 4,050,044. or-sale                Additional
    Everbright                                23,546,768             0.06% 23,546,768                 0.06%
             al bank                .00                                                                             7.84                 10 financial      issueBank
                                                                                                                                            assets
                                                                                                                                            Available-f
    Xiamen       Commerci 292,574,13 109,714,17                                109,714,17                         292,574,13 21,942,835 or-sale                Additional
                                                                 7.99%                            6.91%
    Bank         al bank               3.00                6                                  6                         3.00             .20 financial         issue
                                                                                                                                            assetsFoshan
    branch of                                                                                                                                   Available-f
    Guangdon Commerci                                            Less than                         Less than                                    or-sale        Additional
                          500,000.00          229,792                            229,792                      500,000.00
    g            al bank                                             5.00%                            5.00%                                     financial      issue
    Developm                                                                                                                                    assetsent Bank
                          323,902,94 133,490,73                            133,490,73                         407,982,36 25,992,879
    Total                                                            --                               --                                                           --
                                   9.00                6                                  6                         0.84             .30(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)
                                       276,460,0                                                                                384,103.3 Transacti
    Other        205008      14 Days                                                                                         0.00
                                            00.00                                                                                           4 onal
                                              2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                       financial
                                                                                       assets
                                                                                       Transacti
                          274,387,0                                          204,304.0 onal
    Other   205007   7 Days                                               0.00
                             00.00                                                   8 financial
                                                                                       assets
                                                                                       Transacti
                          176,262,0                                                    onal
    Other   205001   1 Day                                                0.00 20,437.19
                             00.00                                                     financial
                                                                                       assets
                                                                                       Transacti
                          623,006,2                                          157,934.7 onal
    Other   204001   GC001                                                0.00
                             30.00                                                   8 financial
                                                                                       assets
                                                                                       Transacti
                          68,701,37                                                    onal
    Other   204002   GC002                                                0.00 19,432.02
                               4.00                                                    financial
                                                                                       assets
                                                                                       Transacti
                          203,606,1                                                    onal
    Other   204003   GC003                                                0.00 78,492.28
                             08.00                                                     financial
                                                                                       assets
                                                                                       Transacti
                          146,205,8                                                    onal
    Other   204004   GC004                                                0.00 98,287.01
                             48.00                                                     financial
                                                                                       assets
                                                                                       Transacti
                          464,123,2                                          423,793.4 onal
    Other   204007   GC007                                                0.00
                             05.00                                                   0 financial
                                                                                       assets
                                                                                       Transacti
                          117,711,7                                          112,622.1 onal
    Other   204014   GC014                                                0.00
                             70.00                                                   2 financial
                                                                                       assets
                                                                                       Transacti
                                                                                       onal
    Stock   300385   XLHJ      7,365.00    500          0                 0.00 11,378.02
                                                                                       financial
                                                                                       assets
                                                                                       Transacti
    Stock   603328   YDDZ     15,310.00   1,000         0                 0.00 14,514.65 onal
                                                                                       financial
                                                               2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                          assets
                                                                                                          Transacti
                                                                                                          onal
    Stock      603188        YBGF    20,490.00        1,000              0                 0.00 21,963.00
                                                                                                          financial
                                                                                                          assets
                                                                                                          Transacti
                                                                                                          onal
    Stock      601016        JNFD     2,170.00        1,000              0                 0.00 6,218.37
                                                                                                          financial
                                                                                                          assets
                                                                                                          Transacti
                                                                                                          onal
    Stock      603456        JZYY    15,430.00        1,000              0                 0.00 17,018.07
                                                                                                          financial
                                                                                                          assets
                                                                                                          Transacti
                                                                                                          onal
    Stock      300401        HYSW     3,505.00         500               0                 0.00 13,731.80
                                                                                                          financial
                                                                                                          assets
                                                                                                          Transacti
                                                                                                          onal
    Stock      603688        SYGF     6,450.00        1,000              0                 0.00 20,272.42
                                                                                                          financial
                                                                                                          assets
                                                                                                          Transacti
                                 956,522.6                                                    964,543.4 onal
    Stock      000027        SZNY                   172,600              0                 0.00
                                         4                                                            3 financial
                                                                                                          assets
                                                                                                          Transacti
                                                                                                          onal
    Stock      002736        GXZQ    11,660.00        2,000         2,000             20,320.00        0.00
                                                                                                          financial
                                                                                                          assets
                                                                                                          Transacti
                         FZJQY   5,000,000                                                    -997,145. onal
    Fund       BC0002                            5,000,000               0                 0.00
                         No. 2         .00                                                          30 financial
                                                                                                          assetsOther securities investments
                                      0.00           0    --         0     --          0.00        0.00       --      --held at the period-end
                                 2,356,502                                                    1,571,900
    Total                                        5,180,600    --    2,000      --     20,320.00                   --      --
                                   ,437.64                                                          .68Disclosure date of the board
    announcement on approval of      23 Jan. 2014the securities investmentDisclosure date of the general
                                                                            2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.meeting announcement onapproval of the securitiesinvestment (if any)(4)Shareholdings in other listed companies□ Applicable √ InapplicableNo such cases in the reporting period.2. Wealth management entrustment, derivative investments and entrustment loans(1) Wealth management entrustment□ Applicable √ InapplicableNo such cases in the reporting period.(2) Investment in derivatives□ Applicable √ InapplicableNo such cases in the reporting period.(3) Entrustment loans□ Applicable √ InapplicableNo such cases in the reporting period.3. Use of raised funds□ Applicable √ InapplicableNo such cases in the reporting period.4. Analysis to main subsidiaries and stock-participating companies√ Applicable □ InapplicableMain subsidiaries and stock-participating companies:
                                                                                                                            Unit: RMB Yuan
                                                  Main
    Company         Company                                      Registered                             Operating    Operating
                                    Industry   products/ser                Total assets Net assets                               Net profit
    name          variety                                       capital                              revenues      profit
                                                  vices
    Foshan                                         Production
    Chansheng                       Manufactur and                1,000,000.0 32,941,104. 13,301,554. 170,783,96 8,103,152.6 6,064,268.6
               Subsidiary
    Electronic                      e              operation of 0                       79          66         4.01              9                8
    Ballast Co.,                                   electronic
                                                                    2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Ltd.                                ballasts,
                                    electronic
                                    transformer
                                    s, electronic
                                    igniters,
                                    electric
                                    light source
                                    products,
                                    equipment,
                                    fittings,
                                    electrical
                                    materials,
                                    automobile
                                    components
                                    ,        home
                                    appliances,
                                    socket
                                    outlets,
                                    power
                                    switches,
                                    fire-protecti
                                    on
                                    products,
                                    ventilation
                                    equipment
                                    and        LED
                                    products.
                                    (Where
                                    approval
                                    from
                                    relevant
                                    authorities
                                    is required
                                    for          an
                                    operating
                                    project
                                    according
                                    to law, it
                                    shall        be
                                    obtained
                                    before
                                    operation.)
    Foshan                   Manufactur Producer of                     102,539,68 97,526,937. 75,463,816. 5,555,886.6 4,073,814.3
            Subsidiary
    Chanchang                e          lamps,            72,782,944.         4.21          02          96            0            6
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Electric                               electric          00
    Appliances                             lighting
    (Gaoming)                              products
    Co., Ltd.                              and related
                                       fittings,
                                       providing
                                       relevant
                                       installation
                                       and
                                       consulting
                                       services
                                       R&D,
                                       production
                                       and sales of
    Foshan                                 lamps,
    Taimei                                 household
                          Manufactur                                   58,766,291. 26,067,500. 185,149,90 13,405,810. 10,486,447.
    Times        Subsidiary                appliances
                          e                              500,000.00            90           11         5.82          81           81
    Lamps Co.,                             and fittings,
    Ltd.                                   and       other
                                       electric
                                       lighting
                                       products
                                       Developme
                                       nt and sale
                                       of electrical
                                       appliances,
                                       lighting and
                                       mechanical
                                       & electrical
                                       products;
                                       engineeringFSL New
                                       design,Light
                          Manufactur constructio                       53,914,719. 52,431,374. 1,629,992.3 -1,037,569.
    Source       Subsidiary                                  50,000,000.                                                      -691,250.38
                          e            n and                                   22           26            3          10
    Technology                                               00
                                       maintenancCo., Ltd.
                                       e of lighting
                                       and
                                       mechanical
                                       & electrical
                                       projects;
                                       design,
                                       constructio
                                       n and
                                       technical
               2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.service forintelligentconstruction projects;investment,design &consultingservice,construction andservice forenergy-saving projects;contractualenergymanagement andtechnicalservice;energy-saving projectappraisal;international trade; anddevelopment,productionand sale ofelectriclight sourceproducts.(Whereapprovalfromrelevantauthoritiesis requiredfor anoperatingprojectaccordingto law, itshall beobtained
                                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                         before
                                         operation.)
                                         Production
                                         of
                                         energy-savi
                                         ng lighting
                                         products,
                                         lamps       and
                                         lighting
    Nanjing                                  equipments;
    Fozhao                                   lighting
    Lighting                                 projects;
                            Manufactur                                    86,066,958. 67,350,984. 54,350,815. -2,454,726. -1,980,732.
    Component Subsidiary                     energy-savi 41,683,200.
                            e                                                     39           72          02           51           33
    s                                        ng                 00
    Manufacturi                              technology
    ng Co., Ltd.                             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
    FSL                                      sale         of
    (Xinxiang)                  Manufactur components                         74,336,661. 36,938,068. 36,938,068. 5,489,566.0 4,712,022.2
               Subsidiary                                   35,418,439.
    Lighting                    e            of      electric                         09           49          49            8            7
                                                            76
    Co., Ltd.                                light
                                         source,
                                         related
                                         materials,
                                         electrical
                                         materials,
                                         automobile
                                         components
                                         , lamps and
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                       fittings
                                       Financing
                                       lease, lease,
                                       lease
                                       consulting
                                       and
                                       guaranty,
                                       financingGuangdong
                                       leaseFozhao
                                       service for                     215,745,66 215,400,39                  6,471,257.7 4,853,398.2
    Financing    Subsidiary   Finance                         200,000,00                                   0.00
                                       new-energy                            5.26         4.69                         0           7
    Lease Co.,                                                0.00
                                       automobilesLtd.
                                       &          main
                                       components
                                       ,
                                       energy-savi
                                       ng lighting
                                       products &
                                       projects
                                       R&D         and
                                       production
                                       of      electric
                                       light source
                                       products,
                                       equipment,
                                       fittings,
                                       electrical
                                       materials,
                                       automobile
    FSL                                    components
    Lighting                               ,        home
                          manufactur                                   82,907,740. 27,675,126. 186,330,35 13,999,353. 10,248,592.
    Equipment Subsidiary                   appliances, 15,000,000.
                          e                                                    65           91         0.42           09          30
    Co., Ltd.                              socket             00
                                       outlets,
                                       power
                                       switches,
                                       fire-protecti
                                       on
                                       products,
                                       ventilation
                                       equipment,
                                       LED
                                       products,
                                       etc.;
                                                                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                      domestic
                                      trade,
                                      import and
                                      export      of
                                      technology
                                      and goods
                                      Licensed
                                      operations:
                                      naught.
                                      General
                                      operations:
                                      developmen
                                      t,
                                      production
                                      and sale of
                                      semi-condu
                                      ctor lighting
                                      utensils,
                                      drive circuit
                                      and control
                                      system
                                      software
                                      andSuzhou
                                      hardware
    Mont                     Manufactur                                  48,813,032. 10,159,431. 42,289,128. -9,227,088. -6,629,012.
            Subsidiary                systems;         23,634,900.
    Lighting                 e                                                   51           51          14           05           47
                                      (produced        00Co., Ltd.
                                      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
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                         and
                                         hardware
                                         systemsParticulars about main subsidiaries and stock-participating companies—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. 2003. The Company holds 75%equities of the said company; therefore the said subsidiary was included into the scope of the consolidatedfinancial statements since the date of 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 Appliances (Gaoming) Co., Ltd., which is a Sino-foreign joint venture invested andestablished by the Company and Prosperity Lamps and Components Ltd, had obtained license for businesscorporation 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 sincethe date of foundation.—Foshan Taimei Times Lamps Co., Ltd., which is a Sino-foreign joint venture invested and established by theCompany and Reback North America Investment Limited, had obtained license for Business Corporation on 5Dec. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District, Foshanwith document “MWJMY Zi [2005] No. 97”. The Company holds 70% equities of the said company; thereforethe said subsidiary was included into the scope of the consolidated financial statements since the date offoundation.—FSL New Light Source Technology Co., Ltd. (its predecessor was “Foshan Lighting Lamps and Lanterns Co.,Ltd.” and it changed its name to “FSL New Light Source Technology Co., Ltd.” on 17 Dec. 2014), which isinvested and established by the Company together with Foshan Haozhiyuan Trading Co., Ltd., Shanghai LiangqiElectric Co., Ltd, Changzhou Sanfeng Electrical & Lighting Co., Ltd., Henan Xingchen Electrical & Lighting Co.,Ltd., Foshan Hongbang Electrical & Lighting Co., Ltd., Hebei Jinfen Trading Co., Ltd., obtaining its license forBusiness Corporation on 27 Mar. 2009. The Company holds 60% equities of this company. Therefore the saidsubsidiary was included into the scope of the consolidated financial statements since the date of 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.—FSL (Xinxiang) Lighting Co., Ltd. is a limited liability company which is invested and established by theCompany, obtaining its license for Business Corporation on 17 Apr. 2009. The Company holds 100% equities ofthe said company, therefore the said subsidiary was included into the scope of the consolidated financialstatements since date of foundation. On 27 Aug. 2013, the 3rd Session of the 7th Board of Directors reviewed andapproved to invest another RMB 2 million (land in an industrial park in Xinxiang, Henan Province and monetaryfunds) in FSL (Xinxiang) Lighting, increasing the registered capital of FSL (Xinxiang) Lighting to RMB35,418,439.76.—Guangdong Fozhao Financing Lease Co., Ltd. is a limited liability company invested and established by theCompany, which had obtained its license for Business Corporation on 31 May 2011. And the Company holds
                                                                          2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.100% equities of this company. Therefore the said subsidiary was included into the scope of the consolidatedfinancial statements since the date of foundation.—FSL Lighting Equipment Co., Ltd. is a limited liability company invested and established by the Company withthe registered capital of RMB 15 million, which had obtained its license for Business Corporation on 8 May 2013.And the Company holds 100% equities of this company. Therefore the said subsidiary was included into the scopeof the consolidated financial statements since the date of foundation.—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. (formerly known as “Prosperity (Nanjing) LightingComponents Co., Ltd.”, and changed name to “Nanjing Fozhao Lighting Components Manufacturing Co., Ltd.”on 15 Nov. 2010.) to the Company. Therefore, Nanjing Fozhao Lighting Components Manufacturing Co., Ltd.became a wholly-owned subsidiary of the Company. The said subsidiary was included into the scope of theconsolidated financial statements since the 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. At the same time, the Company increased another RMB 12.01 million to Suzhou Mont Lighting Co.,Ltd., of which RMB 5.8849 million went to the registered capital and the other RMB 6.1251 million went to thecapital reserves. As such, the registered capital of Suzhou Mont Lighting Co., Ltd. went up to RMB 23.6349million and the Company held 50.50% equities in it. The said subsidiary was included into the scope of theconsolidated financial statements since the completion date of the investment increase.Subsidiaries acquired or disposed during the reporting period:√ Applicable □ Inapplicable
                                                                                                          Effect on the whole production
       Name of subsidiary           Purpose of acquisition/disposal       Way of acquisition/disposal
                                                                                                            and business performance
                                                                                                         The equity acquisition would
                                    To add new advantages and           Equity acquisition and           not affect the businessSuzhou Mont Lighting Co., Ltd.
                                    expand the main business            investment increase              continuity and management
                                                                                                         stability of the Company.5. Significant projects invested with non-raised funds√ Applicable □ Inapplicable
                                                                                                         Unit: RMB Ten Thousand Yuan
                                                       Cumulative
                  Total planned      Input for this   actual input as       Project           Project    Disclosure date     Disclosure
    Project name                                                                                                (if any)       index (if any)
                    investment          period            at the           progress           earnings
                                                       period-end
    Suzhou Mont                                                                                                                Announcement
    Lighting Co.,               2,436             2,436            2,436          100.00% -662.90            24 May 2014       title: Progress
    Ltd.                                                                                                                       Announcement
                                                                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                                   on Acquisition
                                                                                                                   of Some Equity
                                                                                                                   Interests of and
                                                                                                                   Increasing the
                                                                                                                   Investment in
                                                                                                                   Suzhou Mont
                                                                                                                   Lighting Co.,
                                                                                                                   Ltd.;
                                                                                                                   Announcement
                                                                                                                   No.: 2014-023;
                                                                                                                   Website of
                                                                                                                   disclosure:
                                                                                                                   http://www.cni
                                                                                                                   nfo.com.cn
    Total                       2,436           2,436            2,436         --             --              --               --VII. Predict the operating results of Jan.-Mar. 2015Warning of possible loss or considerable YoY change of the accumulated net profit made during the period-begin to the end of thenext reporting period according to prediction, as well as explanations on the reasons:□ Applicable √ InapplicableVIII. Entities controlled by the Company for special purposes□ Applicable √ InapplicableIX. Outlook of the Company’s future development(I) Industry trendIn the environment of energy saving, low carbon, and emission reduction, the energy saving and environmentallyfriendly policies of countries have been successively implemented. Meanwhile, with the on-going performanceimprovement and fast price decrease of LED products, the traditional lighting market has been shrinking, LEDlighting are being generally accepted by clients, and the penetration rate of terminal applications of LED lighting arebeing continuously raised. To grasp the opportunity of rapid demand increase in LED lighting market, win moremarket shares, as well as build up the influence of self-own brands, enterprises in the link of downstream LEDlighting applications with easier access fiercely compete in technology, product, price, and channels. The marketstructure shows the coexistence of both flourishing demands and intensified competitions.(II) Opportunities and challenges faced by the Company1. OpportunitiesThrough the fast development of LED lighting in recent years, the field of terminal applications has been broadlyapplied. Against the dual attack from the downturn of entity economy and the fiercer industry competitions, LEDenterprises will go into a situation where the strong becomes stronger and the weak becomes weaker, and as a result,
                                                            2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.enterprises lack of comprehensive competitiveness will be gradually eliminated.After over 2 years of development, the scale of the Company’s LED products has been large, the capacity hasobtained sharp growth, the diversified product lines of LED series have been formed, new products have beensuccessively released, and the LED products of the Company have gained certain influence on the industry andmarket.As a leading enterprise in the lighting industry with competitive edges in brand, technology, market and scale aswell as ample funds, the Company will continue to keep itself competitive in traditional lighting products and atthe same time vigorously promote LED products to benefit more from the continuous growth of the LED lightingterminal application in the future.2. Challenges(1) Challenges brought by market competitionsIn 2015, the production and operation of the Company will still be up against challenges brought by marketcompetitions. The growth of domestic economy will slow down, the depression trend of real estate industry will beevident, and together with the affects from fiercer industry competitions, the product homogenization, and the moreand more drastic price battles, the gross margin of products will be hard to be increased and even decline, and thephenomenon where companies in the industry only input more on production but gain no increase in revenue will beincreasingly widespread. The problem about how to establish technology, product, and service advantages incompetitions, conduct differentiate competitions, and structure a wide range of channel layout, has become thechallenge to the Company for realizing sustainable development.(2) Challenges brought by company developmentBy development efforts for dozens of years, the scale of assets, personnel, and business of the Company has beenenlarging. As a result, higher requirements are raised for the Company’s management module. The Company isconfronted with challenges brought by a series of issues, including further improving current management system,perfecting internal control system, enhancing management capability, and ensuring the Company’s smoothoperation.(III) Risks faced by the Company in future and countermeasures1. Risks of market competitionsDespite the powerful supports from the state for LED lighting, competitions in the industry in domestic market,even in international market are fierce, performing in factors including brand, sales channels, and price. TheCompany now possesses advantages in brand recognition, sales channels, and economies of scale, but with furtherintensified market competitions, the Company might be negatively affected on profitability in future, leading tohigher difficulty for increasing market share. Therefore, the Company will continuously develop new products,optimize marketing network, improve brand image, consolidate management on client relationship, sustainablyimprove the core competitiveness of the Company, and ensure the persistent and healthy development of the
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Company.2. Risks of rising operating costWith the Company’s development, the management expenses, sales expenses, and labor expenses of the Companywill ceaselessly go up, which will further increase the operating cost of the Company. However, due to tough marketcompetitions, prices of current products of the Company are hardly to be raised up. Plus with possibly rising pricesof raw materials in future, the Company’s profitability will be negatively affected under dual pressure. Therefore,the Company will try its best to improve the degree of machine automation to raise the labor productivity ratio,further dig for supplier resources to cut down procurement cost, as well as defuse the risks brought by risingoperating cost by taking measures of improving management level, strengthening budget control, and cutting downexpense cost.3. Risks of collecting accounts receivablesIn order to well produce products and grasp market share, accounts receivables of the Company in recent years sumsup to a high amount. If distributors have difficulties in payment and default on good payments, there will be bad debtrisks for the Company. Therefore, in accordance with orders and sales of distributors, the Company will regularlyand comprehensively evaluate credit lines of distributors, improve the profitability of distributors by strengtheningservice for distributors, and reducing bad debt risks by mortgaging real estates or other materials.4. Risk concerning investors’ claims for damagesFrom Sept. 2013 to Mar. 2015, 2279 investors separately sued the Company to Guangzhou Intermediate People’sCourt for false securities statement, demanding civil compensations of RMB 335.8907 million and HKD 1.328million in total from the Company for its illegal information disclosure. If the court ultimately rules the Companyto pay a large compensation, it would have a great impact on the Company’s subsequent operating results.(IV) Work schedule in 20151. Aggressively expanding market and enlarging development spaceFirstly, the Company will execute positive and rational marketing strategies, consolidate current channel advantages,emphasize on construction of the channel of exclusive shops, the channel of engineering commercial lighting, andthe channel of E-business and retail, reinforce on refining management for markets, form a marketing networkfeatured by distinct structure, orderly work division, rational layout, and first-rate service, and raise the marketcoverage and penetration rate. Secondly, the Company will strengthen the sense of client management, keepattaching importance to follow-up service and potential value digging for regular and big clients, and positivelyenlarge the development space of the Company by expanding new markets and clients. Thirdly, the Company willstrengthen marketing management, provide marketing staffs with professional training opportunities by relying onconsulting agencies for marketing management, and improve the capability of execution and practice of sales staffs.Fourthly, the Company will complete international marketing network, strengthen international sales force, deeplyexplore markets where stocks of traditional lighting will be replaced, and at the same time, aggressively explore
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.emerging markets in the Middle East, South East Asia, and Eastern Europe.2. Controlling cost and improving management efficiencyUnder the pressure of rising operating cost, the Company will further intensify the sense of cost control, upgradetechniques, innovate technologies, optimize product structure, control procurement cost, execute the system oflimited material-picking, and eliminate the waste in all links. The Company will upgrade energy-consumingequipment by equipment renovation, and improve operating efficiency by saving energy and reducing consumption.The Company will continue to do well in overall budget management, strictly control on expenses, reduceover-planned and unplanned expenses, ensure cost advantage, and keep the market competitiveness of the Companyunder the condition of ensuring product quality.3. Strengthening the building of talent team, and improving the comprehensive quality of the teamThe key point to keep innovation capability and competitiveness of the Company is talents. The Company will putmore force on induction of and training for talents, and put the talent reservation work for important departments ofadministration, R&D, production, and sales in first priority. The Company will depend on Foshan Lighting College,improve the ability of internal lecturers, and reinforce the training force while externally engaging professionaltraining institutions. The Company will establish a perfect human resources system and competitive remunerationmechanism, optimize the remuneration and related system oriented by performance, and build a talent team withhigh quality, so as to provide the Company with talents guarantee for its sustainable, steady, and healthydevelopment.X. Explanation by the Board of Directors and the Supervisory Committee about the“non-standard audit report” issued by the CPAs firm for the reporting period□ Applicable √ InapplicableXI. Explain any change of the accounting policies, the accounting estimates and theaccounting methods when compared to the financial report for last year√ Applicable □ Inapplicable(1) Changes in important policiesIn 2014, the Ministry of Finance revised the , the , the and the , and unveiled the , the  and the . The Company has adopted the aforesaid revised or newaccounting standards since 1 Jul. 2014 and the  since the 2014 Annual Report.
                                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Adjustments to items and amounts in the comparative financial statements according to the new and revisedaccounting standards:
                                                                                                                     Unit: RMB Yuan
    Accounting         Accounting policy changes and their            Influence on relevant financial statement items(+/-)
    standard           influence on the Company                       Item                          1 Jan. 2013          31 Dec. 2013
                                                                       Long-term            equity
    Standard No.       guideline, those equity investments                                          -488,669,738.23      -473,950,855.57
                                                                   investments
    2 for Business     where the Company has no control,
    Enterprises—      joint control or significant influence
    Long-term          on the investees and there are no
    Equity             public offers in the active market
                                                                   Available-for-sale
    Investments        have        been     transferred          to                                 488,669,738.23       473,950,855.57
                                                                   financial assets
    (Revised      in   available-for-sale financial assets and
    2014)>             measured adopting the cost method.
                                                                   Transactional financial
                                                                                                 -4,012,728.75        -3,903,197.90
                                                                   assets
                                                                   Financial            assets
        Standard No.                                                      with changes recorded         4,012,728.75         3,903,197.90
    30           for   According      to   the         Business           Standard     No.    30     for     Business    losses
    Enterprises—      Enterprises—Long-term            Financial
    Long-term          Statement Presentation (Revised in             Other           non-current
                                                                                                 -19,353,441.69       -11,092,550.73
    Financial          2014) > and its application guideline          liabilities
    Statement                                                         Deferred incomes              19,353,441.69        11,092,550.73Presentation >
                                                                   Capital reserves              -35,523,341.07       -27,717,587.47
                                                                   Other         comprehensive
                                                                                                 35,523,341.07        27,717,587.47
                                                                   incomesExcept for the financial statement items above, the accounting policy changes have no influence on theCompany’s total assets at the end of 2012 and 2013 as well as its net profits for 2012 and 2013.(2) Changes in accounting estimationsNo such cases in the reporting period.XII. Explain if any major correction of accounting errors occurred in the reporting periodand for that retroactive restatement was needed□ Applicable √ Inapplicable
                                                                          2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.No such cases in the reporting period.XIII. Explanation of the changes of the consolidation scope compared to the last financialreport√ Applicable □ InapplicableOn 23 Apr. 2014, the Company convened the 10th Session of the 7th Board of Directors, at which the  was reviewed andapproved. On 23 May 2014, the relevant formalities were completed with the relevant industry and commerceadministration. As such, the Company holds a stake of 50.5% in Suzhou Mont Lighting, which has beenconsolidated by the Company.XIV. Profit allocation and dividend payoutFormulation, execution or adjustment of the Company’s profit allocation policy during the reporting period:√ Applicable □ InapplicableAccording to the CSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of ListedCompanies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Notice on Further ImplementingRegulations Related to Dividend Distribution of Listed Companies (Guang-Dong-Zheng-Jian [2012] No. 91), inorder to further standardize the dividend mechanism, promote a scientific, sustained and stable dividendmechanism and protect legal rights and interests of investors, in 2012, the Company convened a general meetingto revise the dividend-related contents in its Articles of Association and specify the dividend conditions, thelowest dividend ratio, the decision-making procedure, etc.. Meanwhile, it formulated the Management Rules forProfit Distribution and the Return for Shareholder Plan for the Coming Three Years (2012-2014), specifying thearrangements and forms of dividends, the cash dividend planning and the distribution intervals, which furtherimproved the decision-making and supervision procedures for dividend distribution. According to the Company’sArticles of Association, the profit distributed in cash shall not be less than 30% of the distributable profit achievedin the year.The Company’s preplans for profit distribution and turning capital reserve into share capital for the reportingperiod were in compliance with relevant rules such as the Company’s Articles of Association.
                                           Special statement about the cash dividend policyIn compliance with the Company’s Articles of Association and the
                                                                          Yesresolution of the general meeting
    Specific and clear dividend standard and ratio                            Yes
    Complete decision-making procedure and mechanism                          YesIndependent directors fulfilled their responsibilities and played their
                                                                          Yesdue role.Minority shareholders have the chance to fully express their
    opinion and desire and their legal rights and interests were fully        Yesprotected.
    In adjustment or alteration of the cash dividend policy, the              Yes
                                                                         2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.conditions and procedure were in compliance with regulations andtransparent.The Company’s preplans or plans for profit allocation and turning capital reserve into share capital for the recentthree years (including the reporting year):For 2012, based on the total 978,563,745 shares of the Company as at 31 Dec. 2012, a cash dividend of RMB 3.1(tax included and dividends for B-share holders paid in Hong Kong dollars) was distributed for every 10 sharesheld by A-share and B-share holders, with the total distributed cash dividends reaching RMB 303,354,760.95.For 2013, based on the total 978,563,745 shares of the Company as at 31 Dec. 2013, a cash dividend of RMB 1.6(tax included and dividends for B-share holders paid in Hong Kong dollars) was distributed for every 10 sharesheld by A-share and B-share holders, with the total distributed cash dividends reaching RMB 156,570,199.20.For 2014, based on the total 978,563,745 shares of the Company as at 31 Dec. 2014, a cash dividend of RMB 2.20(tax included and dividends for B-share holders paid in Hong Kong dollars) will be distributed for every 10 sharesheld by A-share and B-share holders, with the total distributed cash dividends reaching RMB 215,284,023.90; and3 shares will be increased, with capital reserves, to all shareholders for every 10 shares they hold, with theincreased shares totaling 293,569,124 shares. The profit allocation and capitalization of capital reserves preplancan only be carried out upon review and approval of the Shareholders’ General Meeting of the Company.Cash dividend distribution of the Company over the recent three years:
                                                                                                                           Unit: RMB Yuan
                                                      Net profit        Ratio to net profit
                                                    attributable to       attributable to                                Ratio of cash
                                                                                               Cash offering to buy
                          Cash dividends         shareholders of the    shareholders of the                           offering to buy back
         Year                                                                                  back shares recorded
                           (tax included)         listed company in     listed company in                                shares to cash
                                                                                                as cash dividends
                                                   the consolidated      the consolidated                                  dividends
                                                 statement in the year statement in the year
    2014                            215,284,023.90        266,125,048.97                80.90%                     0.00                 0.00%
    2013                            156,570,199.20        251,831,356.38                62.17%                     0.00                 0.00%
    2012                            303,354,760.95        400,466,745.11                75.75%                     0.00                 0.00%The Company (including its subsidiaries) made profit in the reporting period and the retained profit of the Company (withoutsubsidiaries) was positive, but it did not put forward a preplan for cash dividend distribution:□ Applicable √ InapplicableXV. Pre-plan for profit allocation and turning capital reserve into share capital for thereporting period√ Applicable □ Inapplicable
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Bonus shares for every 10 shares (share)                                                                                            0
    Dividend for every 10 shares (RMB Yuan) (tax included)                                                                           2.20
    Increased shares for every 10 shares (share)                                                                                        3
    Total shares as the basis for the allocation preplan (share)                                                             978,563,745
    Total cash dividends (RMB Yuan) (tax included)                                                                         215,284,023.90
    Distributable profit (RMB Yuan)                                                                                        710,284,953.94
    Percentage of the cash dividends in the total distributed                                                                   100.00%profit (%)
                                                         Cash dividend policy:Where the Company is in the mature development stage and has any major spending plan, cash dividends distributed shall accountfor at least 40% in the profit allocation.
                     Details about the pre-plan for profit allocation and turning capital reserve into share capitalAs audited by GP Certified Public Accountants LLP, the after-tax net profit of RMB 237,692,053.49 of the Company withoutsubsidiaries for 2014, plus the opening retained profit of RMB 632,837,008.55, minus the distributed profit of RMB156,570,199.20 for 2013 (a cash dividend of RMB 1.6 for every 10 shares) and the statutory surplus reserves of RMB 3,673,908.90for 2014, equals the closing profit distributable to shareholders of RMB 710,284,953.94. Considering the consistence of the profitallocation principle, the Board of Directors proposed to allocate profit for 2014 as follows: Based on the total 978,563,745 shares ofthe Company as at 31 Dec. 2014, a cash dividend of RMB2.20 (tax included and dividends for B-share holders paid in Hong Kongdollars) will be distributed for every 10 shares held by A-share and B-share holders, with the total distributed cash dividendsreaching RMB 215,284,023.90; and 3 shares will be increased, with capital reserves, to all shareholders for every 10 shares theyhold, with the increased shares totaling 293,569,124 shares. The retained profit of RMB 495,000,930.04 will be carried forwardinto the next year. The profit allocation and capitalization of capital reserves preplan can only be carried out upon review andapproval of the Shareholders’ General Meeting of the Company.XVI. Social responsibilities√ Applicable □ InapplicableThe Company has always attached importance to the accomplishment of its social value. With “provide returns forshareholders, provide a platform for employees, create value for customers and create prosperity for the society”as its task, the Company proactively protects legal rights and interests of its employees and creditors; treatssuppliers, customers and consumers in an honest way; and proactively promotes environmental protection,resource conservation & recycling, etc.. Meanwhile, it takes part in charity and public service activities, boosts thelocal economy with its own development and promotes coordinative and harmonious development between theCompany and the society, the community and the nature.
                                                                   2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.During the reporting period, the Company enhanced R&D, promotion and sale of environment-friendly andenergy-saving products. It passed the ISO14001 environmental management system certification. Meanwhile, theCompany also passed the province’s voluntary clean production examination and won the title of “CleanProduction Enterprise in Guangdong Province”, making its own contribution to energy saving and emissionreduction. It planned to distribute cash dividends of RMB 215,284,023.90 (tax included) to its shareholders,accounting for 80.90% of the net profit attributable to shareholders of the Company in the consolidated statementsfor the reporting period, which effectively safeguarded the interests of its shareholders. It also fulfilled the safeproduction objectives for the year, making its own contribution to social safety.Does the listed company or any of its subsidiaries belong to the heavily polluting industries stipulated by theenvironmental protection authorities of the country?□ Yes √ No □ InapplicableDoes the listed company or any of its subsidiaries have any other significant social security problems?□ Yes √ No □ InapplicableAny administrative punishment during the reporting period?□ Yes √ No □ InapplicableXVII. Particulars about researches, visits and interviews received in this reporting period√ Applicable □ Inapplicable
                                                                                                        Main discussion and
         Date                   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
                                                                                                     Production and operation of
    6 Jan. 2014             The Company     Field research      Institution         China AMC
                                                                                                     the Company
                                                     2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                  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,
                                                                  Fortune SG Fund
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                          Management,
                                                                          Galaxy AMC, E
                                                                          Fund Management,
                                                                          Lion Fund
                                                                          Management,
                                                                          Orient Securities
                                                                          Asset Management,
                                                                          Hua An Fund
                                                                          Management,
                                                                          Huashang Fund
                                                                          Management, CCB
                                                                          Principal Asset
                                                                          Management
                                                                          Yingda Securities,
                                                                          Changjiang
                                                                          Securities,
                                                                          Shenzhen
                                                                          Hengyunsheng
                                                                          Investment
                                                                          Consulting Co.,
                                                                          Ltd. CITIC
                                                                          Securities,
                                                                          AEGON-INDUST
                                                                          RIAL Fund
                                                                          Management Co.,
                                                                                                 Production and operation of
    5 Nov. 2014            The Company   Field research   Institution         Ltd., BOC
                                                                                                 the Company
                                                                          International
                                                                          (China) Limited,
                                                                          Shenzhen
                                                                          QingShuiYuan
                                                                          Investment, Orient
                                                                          Securities,
                                                                          Shenzhen Dade
                                                                          Huifu Consultant
                                                                          Co., Ltd., China
                                                                          Fund Management,
                                                                          GTJA Allianz
                                                                          Funds
                                                                                                 Production & operation and
    1 Jan.-31 Dec. 2014    The Company   By phone         Individual          Individual investors
                                                                                                 lawsuits of the Company
    Visiting times                                                                                                              6
    Number of visiting institutions                                                                                            50
    Number of visiting individuals                                                                                             96
                                                         2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Number of other visiting entities                                                                                   0
    Was    any   material   undisclosed   information
                                                    Nodisclosed, revealed or leaked?
                                                                            2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                             Section V. Significant EventsI. Significant lawsuits or arbitrations√ Applicable □ Inapplicable
                         Amount
                       involved in           Forming                      Trial result and   Enforcement on
    Basic information                                       Progress of
                       the 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)
                                                         On 15 Nov.
                                                         2014 and 5
                                                         Dec. 2014,
                                                         the
                                                         Company         The Company hasIn Mar. 2013,
                                                         received the made estimatedCSRC Guangdong
                                                                                                                  Judgment> provisions                Not satisfiedadministrative
                                                         from            according to the    with the
    punishment on the                                                                                                             Announceme
                                                         Guangzhou first-instance            judgment of
    illegal information                                                                                                           nt title:
                                                         Intermediat judgments of            Guangzhou
    disclosure of the                                                                                                             Announceme
                                                         e Court,        these cases, which Intermediate
    Company. 515                                                                                                                  nt about
                                                         ruling that     will directly       Court, the
    plaintiffs                                                                                                                    Lawsuit
                                                         the             reduce the net      Company has
    separately sued the RMB                                                                                                       Progress;
                                                         Company         profits of the      filed an appeal
    Company to            73.4383                                                                                                 Announceme
                                       Yes               should          Company             to Guangdong      17 Nov. 2014
    Guangzhou             million and                                                                                             nt No.:
                                                         make            (without            High Court.
    Intermediate          HKD 82,000                                                                                              2014-040,
                                                         compensati subsidiaries) for        During the
    People’s Court for                                                                                                           2014-044;
                                                         ons of RMB 2014 by RMB              appeal, the
    false securities                                                                                                              Website of
                                                         000 to the      000 and the         Company does
    statement,                                                                                                                    disclosure:
                                                         955             consolidated net    not have to
    demanding civil                                                                                                               http://www.c
                                                         plaintiffs      profits attributable perform the
    compensations                                                                                                                 ninfo.com.cn
                                                         and bear        to owners of the    obligation offrom the Company
                                                         court           Company             compensation.for its illegal
                                                         acceptance (withoutinformation
                                                         fees of         subsidiaries) bydisclosure.
                                                         RMB 000.        RMB 000.
                                                         Not
                                                         satisfied
                                                         with the
                                                         judgment,
                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                      the
                                      Company
                                      has filed an
                                      appeal to
                                      Guangdong
                                      High Court.
                                      On 15 Nov.
                                      2014 and 5
                                      Dec. 2014,
                                      the
                                      Company
                                      received the
                                                                            Judgment> The Company hasIn Mar. 2013,
                                      from           made estimatedCSRC Guangdong
                                      Guangzhou liabilityadministered an
                                      Intermediat provisions             Not satisfiedadministrative
                                      e Court,       according to the    with the
    punishment on the                                                                                        Announceme
                                      ruling that    first-instance      judgment of
    illegal information                                                                                      nt title:
                                      the            judgments of        Guangzhou
    disclosure of the                                                                                        Announceme
                                      Company        these cases, which Intermediate
    Company. 672                                                                                             nt about
                                      should         will directly       Court, the
    plaintiffs                                                                                               Lawsuit
                                      make           reduce the net      Company has
    separately sued the                                                                                      Progress;
                      RMB             compensati profits of the          filed an appeal
    Company to                                                                                               Announceme
                      87.0947   Yes   ons of RMB Company                 to Guangdong      6 Dec. 2014
    Guangzhou                                                                                                nt No.:
                      million         000 to the     (without            High Court.
    Intermediate                                                                                             2014-040,
                                      955            subsidiaries) for   During the
    People’s Court for                                                                                      2014-044;
                                      plaintiffs     2014 by RMB         appeal, the
    false securities                                                                                         Website of
                                      and bear       000 and the         Company does
    statement,                                                                                               disclosure:
                                      court          consolidated net    not have to
    demanding civil                                                                                          http://www.c
                                      acceptance profits attributable perform the
    compensations                                                                                            ninfo.com.cn
                                      fees of        to owners of the    obligation offrom the Company
                                      RMB 000.       Company             compensation.for its illegal
                                      Not            (withoutinformation
                                      satisfied      subsidiaries) bydisclosure.
                                      with the       RMB 000.
                                      judgment,
                                      the
                                      Company
                                      has filed an
                                      appeal to
                                      Guangdong
                                      High Court.
                                                       2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.In Mar. 2013,CSRC Guangdongadministered anadministrativepunishment on the
    illegal information                                                                                   Announceme
    disclosure of the                                                                                     nt title:
                                                   The lawsuits are
    Company. 116                                                                                          Announceme
                                                   still in trial with
    plaintiffs                                                                                            nt on Lawsuit
                                                   no judgment.
    separately sued the RMB                                                                               Matters;
                                                   Therefore, the
    Company to            22.5254                                                                         Announceme
                                    No   Pending   influence of these Inapplicable     15 Mar. 2014
    Guangzhou             million and                                                                     nt No.:
                                                   lawsuits on the
    Intermediate          HKD 546,600                                                                     2014-011;
                                                   Company is
    People’s Court for                                                                                   Website of
                                                   unable to be
    false securities                                                                                      disclosure:
                                                   known for now.
    statement,                                                                                            http://www.c
    demanding civil                                                                                       ninfo.com.cncompensationsfrom the Companyfor its illegalinformationdisclosure.In Mar. 2013,CSRC Guangdongadministered anadministrativepunishment on the
    illegal information                                                                                   Announceme
    disclosure of the                                                                                     nt title:
                                                   The lawsuits are
    Company. 457                                                                                          Announceme
                                                   still in trial with
    plaintiffs                                                                                            nt on Lawsuit
                                                   no judgment.
    separately sued the                                                                                   Matters;
                      RMB                          Therefore, the
    Company to                                                                                            Announceme
                      82.2559       No   Pending   influence of these Inapplicable     17 Jan. 2015
    Guangzhou                                                                                             nt No.:
                      million                      lawsuits on the
    Intermediate                                                                                          2015-004;
                                                   Company is
    People’s Court for                                                                                   Website of
                                                   unable to be
    false securities                                                                                      disclosure:
                                                   known for now.
    statement,                                                                                            http://www.c
    demanding civil                                                                                       ninfo.com.cncompensationsfrom the Companyfor its illegalinformationdisclosure.
                                                       2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.In Mar. 2013,CSRC Guangdongadministered anadministrativepunishment on the
    illegal information                                                                                   Announceme
    disclosure of the                                                                                     nt title:
                                                   The lawsuits are
    Company. 519                                                                                          Announceme
                                                   still in trial with
    plaintiffs                                                                                            nt on Lawsuit
                                                   no judgment.
    separately sued the RMB                                                                               Matters;
                                                   Therefore, the
    Company to            70.5764                                                                         Announceme
                                    No   Pending   influence of these Inapplicable     17 Mar. 2015
    Guangzhou             million and                                                                     nt No.:
                                                   lawsuits on the
    Intermediate          HKD 699,363                                                                     2015-005;
                                                   Company is
    People’s Court for                                                                                   Website of
                                                   unable to be
    false securities                                                                                      disclosure:
                                                   known for now.
    statement,                                                                                            http://www.c
    demanding civil                                                                                       ninfo.com.cncompensationsfrom the Companyfor its illegalinformationdisclosure.II. Media’s queries□ Applicable √ InapplicableNo such cases in the reporting period.III. Occupation of the Company’s capital by the controlling shareholder or its related partiesfor non-operating purposes□ Applicable √ InapplicableNo such cases in the reporting period.IV. Bankruptcy and reorganization□ Applicable √ InapplicableNo such cases in the reporting period.
                                                                                  2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.V. Asset transactions1. Acquisition 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)
                                                                                                                                             Announce
                                                                                                                                             ment title:
                                                                                                                                             Announce
                                                                                                                                             ment on
                                                                                                                                             Acquisitio
                                                                                                                                             n of Some
                                                                                                                                             Equity
                                                        The equity
                                                                                                                                             Interests of
                                                        acquisition
                                                                                                                                             and
              34.09296                                  would not
                                          The                                                                                                Increasing
              % equity                                 affect the
                                          relevant                                                                                           the
              interests of                              business       RMB
    Zhang                                     assets                                                                  Inapplicabl 24 May         Investment
              Suzhou              1,235                 continuity -3.3476               -1.26% No
    Yingchun                                  were all                                                                e             2014         in Suzhou
              Mont                                      and            million
                                          transferred                                                                                        Mont
              Lighting                                  manageme
                                          in.                                                                                                Lighting
              Co., Ltd.                                 nt stability
                                                                                                                                             Co., Ltd.;
                                                        of the
                                                                                                                                             Announce
                                                        Company.
                                                                                                                                             ment No.:
                                                                                                                                             2014-023;
                                                                                                                                             Website of
                                                                                                                                             disclosure:
                                                                                                                                             http://www
                                                                                                                                             .cninfo.co
                                                                                                                                             m.cn
                                                                                2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.2. Sale of assets√ Applicable □ Inapplicable
                                             Net                                                  Relation
                                                                                                                          Whether
                                            profit                                                  ship
                                                                  Ratio of                                    Whether or not
                                           contribu                                               between
                                                                  the net                                      or not        the
                                            ted to     Gains                                        the
                                                                   profit                                       the       creditor’
                                             the           and                                    transacti
                                                                  contribu                                    ownersh s right
                                 Transact Compan losses                                  Related- on party
                                                                   ted by                                     ip of the     and
    Transact                           ion     y from      arising                Pricing     party   and the                                         Disclos
            Asset      Disposa                                    the asset                                    asset      liabilitie Disclos
    ion                            price      the      from the                principl transacti Compan                                                ure
             sold       l date                                     to the                                     involve           s      ure date
    party                          (RMB period-b sales of                             e     on or      y                                              index
                                                                  Compan                                       d has      involve
                                 0’000)   egin to     assets                              not    (applica
                                                                  y to the                                     been        d have
                                             the       (RMB                                        ble for
                                                                    total                                      fully        been
                                           disposal 0’000)                                       related-
                                                                   profit                                     transferr     fully
                                            date                                                   party
                                                                    (%)                                          ed       transferr
                                            (RMB                                                  transacti
                                                                                                                             ed
                                           0’000)                                                  ons)
                                                                                                                                                  Announ
                                                                                                                                                  cement
                                                                                                                                                  title:
                                                                                                                                                  Announ
                                                                                                                                                  cement
                                                      The sale
                                                                                                                                                  about
                                                      of the
           15.38%                                                                                                                                 Complet
                                                      equity
           equity                                                                                                                                 ion of
                                                      would
           interests                                                                                                                              the
                                                      not
    Guangz of                                                                     With the                                                            Transfer
                                                      affect
    hou        Guangz                                                             assessm                                                             of
                                                      the
    Finance hou                                                                   ent                                                                 Equity
                       15 Aug. RMB         RMB        business                                    Inapplic                             22 Nov.
    Holding Pearl                                                       0.67% result as No                        Yes         Yes                     Interests
                       2014      852       178.48     continui                                    able                                 2014
    s Group River                                                                 the                                                                 in
                                                      ty and
    Co.,       Asset                                                              pricing                                                             Former
                                                      manage
    Ltd.       Manage                                                             base                                                                Joint
                                                      ment
           ment                                                                                                                                   Venture;
                                                      stability
           Co.,                                                                                                                                   Announ
                                                      of the
           Ltd.                                                                                                                                   cement
                                                      Compan
                                                                                                                                                  No.:
                                                      y.
                                                                                                                                                  2014-04
                                                                                                                                                  1;
                                                                                                                                                  Website
                                                                                                                                                  of
                                                                                                                                                  disclosu
                                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                                                           re:
                                                                                                                                           http://w
                                                                                                                                           ww.cnin
                                                                                                                                           fo.com.
                                                                                                                                           cn3. Business combination□ Applicable √ InapplicableNo such cases in the reporting period.VI. Implementation and influence of any equity incentive plan of the Company□ Applicable √ InapplicableNo such cases in the reporting period.VII. Significant related-party transactions1. Related-party transactions arising from routine operation√ Applicable □ Inapplicable
                                                                                                                Obtainabl
                                                                                       Proportio
                                                                                                                e market
                                                                                        n in the
                                                                           Transacti                            price for
                                                               Transacti                 total
                            Type of   Contents                                on                                   the
    Related                                                          on                   amounts
                              the          of the    Pricing                amount                  Mode of transactio Disclosur Disclosur
    transactio Relation                                            price(RM                   of
                        transactio transactio principle                     (RMB                    settlement n of the       e date       e index
    n party                                                       B Ten                  transactio
                              n              n                               Ten                                  same
                                                               thousand)               ns of the
                                                                           thousand)                            kind(RM
                                                                                       same kind
                                                                                                                 B Ten
                                                                                          (%)
                                                                                                                thousand)
                        Purchasin
                        g
            Legal
                        productsProsperity person
                        and
    Lamps & that held                     Purchase                                                                                         www.cni
                        receiving                   Market                                          Remittanc               25 Apr.
    Compone over 5%                       of                       681.17        681.17       0.37%                 681.17                 nfo.com.c
                        labor                       price                                           e                       2014
    nts         shares of                 material                                                                                         n
                        service
    Limited     the
                        from the
            Company
                        related
                        party
    Prosperity A            Purchasin Purchase Market              2,804.92     2,804.92      1.51% Remittanc 2,804.92 25 Apr.             www.cni
                                                                   2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Electrical company g                  of         price                                e                    2014      nfo.com.c
    (China)      controlled products material                                                                            n
    Co., Ltd. by the          and
             related      receiving
             natural      labor
             person       service
                          from the
                          related
                          party
             An
                          Purchasin
             acting-in-
                          g
             concert
                          products
             party of
    OSRAM                     and
             the legal                Purchase                                                                       www.cni
    (China)                   receiving              Market                               Remittanc            25 Apr.
             person                   of                  4.00       4.00     0.00%                4.00              nfo.com.c
    Lighting                  labor                  price                                e                    2014
             that held                material                                                                       n
    Co., Ltd.                 service
             over 5%
                          from the
             shares of
                          related
             the
                          party
             Company
                          Purchasin
                          g
             A
    Hangzhou                  products
             company
    Times                     and
             controlled               Purchase                                                                       www.cni
    Lighting                  receiving              Market                               Remittanc            25 Apr.
             by the                   of                  310.83   310.83     0.17%               310.83             nfo.com.c
    and                       labor                  price                                e                    2014
             related                  material                                                                       n
    Electrical                service
             natural
    Co., Ltd.                 from the
             person
                          related
                          party
                          Purchasin
                          g
             A
    Prosperity                products
             company
    (Xinxiang                 and         Purchase
             controlled                                                                                              www.cni
    ) Lighting                receiving of           Market                               Remittanc            25 Apr.
             by the                                       39.40      39.4     0.02%                39.40             nfo.com.c
    Machiner                  labor       equipmen price                                  e                    2014
             related                                                                                                 n
    y Co.,                    service     ts
             natural
    Ltd.                      from the
             person
                          related
                          party
    Hangzhou A                Selling                                                                                    www.cni
                                      Selling    Market                               Remittanc            25 Apr.
    Times        company products                             3.22       3.22     0.00%                3.22              nfo.com.c
                                      products   price                                e                    2014
    Lighting controlled and                                                                                              n
                                                                      2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    and          by the       providing
    Electrical related        labor
    Co., Ltd. natural         service to
             person       the
                          related
                          party
                          Selling
             Legal        products
    Prosperity person         and
    Lamps & that held providing                                                                                               www.cni
                                       Selling    Market                                 Remittanc              25 Apr.
    Compone over 5%           labor                            4,056.80   4,056.8    1.32%               4,056.80             nfo.com.c
                                       products   price                                  e                      2014
    nts          shares of service to                                                                                         n
    Limited      the          the
             Company related
                          party
                          Selling
    Prosperity A              products(Hangzho company and
    u)           controlled providing                                                                                         www.cni
                                       Selling    Market                                 Remittanc              25 Apr.
    Lighting by the           labor                            641.06     641.06     0.21%               641.06               nfo.com.c
                                       products   price                                  e                      2014
    and          related      service to                                                                                      n
    Electrical natural        the
    Co., Ltd. person          related
                          party
                          Selling
             A            products
             company andProsperity
             controlled providing                                                                                         www.cni
    Electrical                             Selling    Market                                 Remittanc              25 Apr.
             by the       labor                            112.51     112.51     0.04%               112.51               nfo.com.c
    (China)                                products   price                                  e                      2014
             related      service to                                                                                      nCo., Ltd.
             natural      the
             person       related
                          party
             An
                          Selling
             acting-in-
                          products
             concert
                          andOSRAM party of
                          providing                                                                                       www.cni
    (China)      the legal                 Selling    Market                                 Remittanc              25 Apr.
                          labor                            783.96     783.96     0.26%               783.96               nfo.com.c
    Lighting person                        products   price                                  e                      2014
                          service to                                                                                      nCo., Ltd. that held
                          the
             over 5%
                          related
             shares of
                          party
             the
                                                                       2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
             Company
             An
             acting-in- Selling
             concert     products
             party of    andOsram
             the legal   providing                                                                                          www.cni
    Asia                                  Selling    Market                                   Remittanc              25 Apr.
             person      labor                            4,925.26    4,925.26    1.61%               4,925.26              nfo.com.c
    Pacific                               products   price                                    e                      2014
             that held service to                                                                                           nLtd.
             over 5%     the
             shares of related
             the         party
             Company
                         Selling
             A
                         productsShanghai company
                         and
    Linxian      where a
                         providing
    Mechanic related                      Selling    Market                                   Remittanc              Inapplica Inapplica
                         labor                            30.86         30.86     0.01%               30.86
    al &         natural                  products   price                                    e                      ble        ble
                         service toElectrical person
                         theCo., Ltd. takes a
                         related
             post
                         party
             A           Selling
             company productsSiteco
             where a     andProsperity
             related     providing                                                                                          www.cni
    Lighting                              Selling    Market                                   Remittanc              25 Apr.
             natural     labor                            0.09            0.09    0.00%               0.09                  nfo.com.c
    (Langfan                              products   price                                    e                      2014
             person      service to                                                                                         ng) Co.,
             has         theLtd.
             influence related
             on          party
             LegalProsperity person
    Lamps & that held Sales               Sales
                                                 Market                                   Remittanc              Inapplica Inapplica
    Compone over 5%          commissi commissi                142.84       142.84                         142.84
                                                 price                                    e                      ble        ble
    nts          shares of on             on
    Limited      the
             Company
    Total                                                --     --       14,536.92     --         --        --             --         --
    Details of large amount of sales returns         NaughtNecessity and continuity of related-party Due to the fact that the Company needed stable supply of good raw materials for itstransaction as well as reason of choosing production, such related-party transaction was necessary and will exist within athe related party (but not other transaction long-term period.
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    parties) to conduct the said transaction       The Company’s partial products were sold through the related parties, which would
                                               drive the expansion of the production scale of the Company to a certain extent, so it
                                               belonged to the continuous related-party transactions and would exist within a
                                               long-term period.
                                               The Company’s routine related-party transactions with the related parties had noImpacts of related-party transaction on
                                               influence on the independency of the Company, so the Company’s main businessindependency of the Company
                                               wouldn’t form the reliance on or be controlled by the related parties.Dependant degree of the Company on The Company’s related-party business with the related parties occupied a smallrelated party and relevant solutions for the proportion in the amount of the same kind of business, so its main business wouldn’t
    dependence (if any)                            form the reliance on or be controlled by the related parties.
                                               In Apr. and Oct. 2014, the Company predicted the total amount of routine related-party
                                               transactions with the related parties of OSRAM (China) Lighting Co., Ltd., Osram Asia
                                               Pacific Ltd., Prosperity Lamps & Components Limited, Prosperity Electrical (China)As for the prediction on the total amount of
                                               Co., Ltd., Prosperity (Hangzhou) Lighting and Electrical Co., Ltd., Hangzhou Timesroutine related-party transactions to be
                                               Lighting and Electrical Co., Ltd., Prosperity (Xinxiang) Lighting Machinery Co., Ltd.occurred in the reporting period by relevant
                                               and Prosperity (Xinxiang) Electro-Optical Machinery Co., Ltd. and in the purchasetypes, the actual performance in the
                                               from related parties, the actual amount occurred in 2014 was of RMB 38.4032 million,reporting period (if any)
                                               of 68.15 % of the 2014 estimated amount; in the sales to the related parties, the actual
                                               amount occurred in 2014 was of RMB 105.5376 million, of 75.38 % of the 2014
                                               estimated amount.Reason for significant difference between
                                               Naughtthe transaction price and the market price2. Related-party transactions regarding purchase and sales of assets□ Applicable √ InapplicableNo such cases in the reporting period.3. Significant related-party transitions arising from joint investments in external parties□ Applicable √ InapplicableNo such cases in the reporting period.4. Credits and liabilities with related parties□ Applicable √ InapplicableNo such cases in the reporting period.5. Other related-party transactions□ Applicable √ InapplicableNo such cases in the reporting period.
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.VIII. Significant contracts and their fulfillment1. Trusteeship, contracting and leasing(1) Trusteeship□ Applicable √ InapplicableNo such cases in the reporting period.(2) Contracting□ Applicable √ InapplicableNo such cases in the reporting period.(3) Leasing√ Applicable □ InapplicableParticulars about 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 such cases in the reporting period.2. Guarantees provided by the Company□ Applicable √ InapplicableNo such cases in the reporting period.3. Other significant contracts□ Applicable √ InapplicableNo such cases in the reporting period.
                                                                    2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.4. Other significant transactions□ Applicable √ InapplicableNo such cases in the reporting period.IX. Fulfillment of commitments1. Commitments made by the Company or shareholders holding over 5% of the Company’s shares in thereporting period or such commitments carried down into the reporting period□ Applicable √ InapplicableNo such cases in the reporting period.2. The Company’s assets or projects exist profitable prediction and the reporting period is in suchprediction period, it states the profits from the assets or projects reaching original prediction and relevantreasons□ Applicable √ InapplicableX. Engagement and disengagement of the CPAs firmCPAs firm engaged at present
    Name of domestic CPAs firm                            GP Certified Public Accountants (LLP)Remuneration of domestic CPAs firm (RMB 0’000) 121.9Consecutive years of the audit services provided by
                                                      22domestic CPAs firmName of the certified public accountants from the
                                                      Hong Wenwei, Chen Danyandomestic CPAs firmReengage the CPAs firm at current period or not?□ Yes √ NoParticulars on engaging the audit firm for the internal control, financial adviser or sponsor√Applicable □InapplicableDuring the reporting period, the Company engaged GP Certified Public Accountants (LLP) as the internal controlaudit constitution owning to the needs of internal control audit, with the total paid audit expenses of RMB 508.80thousand yuan .XI. Explanation given by the Supervisory Committee and Independent Directors (ifapplicable) regarding the “non-standard auditor’s report” issued by the CPAs firm for thereporting period□ Applicable √ Inapplicable
                                                          2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.XII. Punishments and rectifications□ Applicable √ InapplicableNo such cases in the reporting period.XIII. Possibility of listing suspension and termination after disclosure of this annual report□ Applicable √ InapplicableXIV. Other significant events√ Applicable □ InapplicableThe plan for the back door listing of Hefei Guoxuan High-tech Power Energy Co., Ltd. (“Guoxuan High-tech”),where the Company held a stake, through Jiangsu Dongyuan Electrical Group Co., Ltd. (“Dongyuan Electrical”)was reviewed and approved unconditionally by the Listed Company Merger and Reorganization ExaminationCommittee of CSRC on 2 Apr. 2015. Upon completion of the back door listing, the equity interests held by theCompany in Guoxuan High-tech would be converted to restricted equity interests in Dongyuan Electrical. (Fordetails, see Announcement No. 2015-008 disclosed on www.cninfo.com.cn dated 3 Apr. 2015.)XV. Significant events of subsidiaries□ Applicable √ InapplicableXVI. Issue of corporate bonds□ Applicable √ Inapplicable
                                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Section VI. Changes in Shares and Particulars about ShareholdersI. Changes in shares1. Changes in shares
                                                                                                                                       Unit: Share
                                   Before the change                  Increase/decrease in the change (+,-)                 After the change
                                                                                   Capitalizat
                                                           Issuance                  ion of
                                              Proportion                 Bonus                                                         Proportio
                                  Number                   of new                    public        Other        Subtotal   Number
                                                 (%)                     shares                                                         n (%)
                                                            shares                  reserve
                                                                                      fund
                                  135,203,3                                                      -131,810,6 -131,810,6
                                                13.82%                                                                     3,392,721      0.35%
    I. Restricted shares                    81                                                                 60         603. 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 corporations
    Shares         held     by
                                   329,778        0.03%                                              5,025         5,025    334,803       0.03%domestic natural persons
    4. Shares held by foreign 131,815,6                                                              -131,815,6 -131,815,6
                                                13.47%                                                                            0       0.00%
    investors                               85                                                                 85         85
    Among which: Shares held 131,815,6                                                               -131,815,6 -131,815,6
                                                13.47%                                                                            0       0.00%
    by foreign corporations                 85                                                                 85         85
                                  843,360,3                                                      131,810,6 131,810,6 975,171,0
                                                86.18%                                                                                   99.65%
    II. Non-restricted shares               64                                                                 60         60         24
                                  618,139,3                                                      131,810,6 131,810,6 749,949,9
    1. RMB ordinary shares                          63.17%                                                                                   76.64%
                                        27                                                                 60         60         87
    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                                                                                       45Reasons for the changes in shares:√ Applicable □ Inapplicable1. In the reporting period, Chen Yu was hired as a vice GM of the Company, 75% of whose 6,700 shares in theCompany was thus locked up according to regulations. As such, the restricted shares increased by 5,025 shares.2. The 131,815,685 restricted shares held by OSRAM Holding Company Limited in the Company becamenon-restricted on 11 Dec. 2014.3. Due to Item 1 and 2 above, the Company’s restricted shares decreased by 131,810,660 shares in the reporting
                                                                     2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.period, and the non-restricted shares increased by 131,810,660 shares.Approval of the changes in shares√Applicable □InapplicableUpon the review and approval of Shenzhen Stock Exchange and the Shenzhen branch of China SecuritiesDepository and Clearing Co., Ltd., the previously restricted 131,815,685 shares held by OSRAM HoldingCompany Limited in the Company became tradable on 11 Dec. 2014 (for details, see the  disclosed on www.cninfo.com.cn dated 9 Dec.2014).Transfer of share ownership□ Applicable √ InapplicableEffects of the change 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 last period□ Applicable √ InapplicableOther contents that the Company considered necessary or were required by the securities regulatory authorities todisclose□ Applicable √ Inapplicable2. Changes in restricted shares√Applicable □Inapplicable
                                                                                                                                 Unit: share
    Name of          Opening          Unlocked in          Increased in         Closing restricted       Reason for
                                                                                                                           Date of unlocking
    shareholder    restricted shares   current period       current period            shares               unlockingOSRAM Holding
    Company               131,815,685        131,815,685                        0                    0                         11 Dec. 2014Limited
                                                                                                      For he is a senior
    Chen Yu                           0                    0             5,025                    5,025
                                                                                                      executive
    Total                 131,815,685        131,815,685                 5,025                    5,025           --                  --II. Issuance and listing of securities1. Securities issued in the three years ended 31 Dec. 2014□ Applicable √ Inapplicable2. Changes in total shares of the Company and the shareholder structure, as well as the asset and liabilitystructures□ Applicable √ Inapplicable
                                                                                  2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.3. Existing staff-held shares□ Applicable √ InapplicableIII. Shareholders and actual controller1. Total number of shareholders and their shareholdings
                                                                                                                                         Unit: share
                                                     Total number of
                                                                                                        Total number of
    Total number of                                         common
                                                                                                        preferred
    common                                           shareholders on the
                                                                                                        shareholders with
    shareholders at the                    135,929       fifth trading day                         95,828                                            0
                                                                                                        resumed voting
    end of the reporting                             before the disclosure
                                                                                                        rights at period-end
    period                                              date of the annual
                                                                                                        (if any) (see Note 8)
                                                          report
                  Shareholdings of shareholders with a shareholding percentage over 5% or the top 10 shareholders
                                                          Total                                                      Pledged or frozen shares
                                                                        Increase/d Number
                                           Sharehold      shares                                Number of
                                                                         ecrease        of
    Name of              Nature of           ing         held at                               non-restric
                                                                        during the restricted
    shareholder          shareholder       percentag       the                                   ted shares     Status of shares Number of shares
                                                                        reporting     shares
                                             e (%)      period-en                                  held
                                                                         period        held
                                                            dOSRAM Holding
                      Foreign                           131,815,6                                131,815,6
    Company                                      13.47%
                      corporation                                 85                                       85LimitedProsperity Lamps
                      Foreign                           102,751,6                                102,751,6
    &     Components                             10.50%
                      corporation                                 48                                       48LimitedEssence
    International         Foreign                           18,079,04                                18,079,04
                                              1.85%
    Securities (Hong corporation                                        6                                       6Kong) Co., Ltd.DBS
    VICKERS(HON Foreign                                     15,660,45                                15,660,45
                                              1.60%
    G KONG) LTD           corporation                                   5                                       5A/C CLIENTS
                      Domestic
    Zhang Yuan                                    0.99% 9,650,000                                    9,650,000
                      individual
    Zhuang Jianyi         Foreign individual      0.85% 8,324,132                                    8,324,132
    BBH A/C               Foreign
                                              0.47% 4,592,770                                    4,592,770
    VANGUARD              corporation
                                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.EMERGINGMARKETSSTOCK INDEXFUNDBOCHKINVESTMENTFUNDS-BOCHK Foreign
                                                  0.46% 4,517,889                          4,517,889
    CHINA                corporationGOLDENDRAGON FUND
                     Domestic
    Hou Chunhu                                        0.43% 4,200,000                          4,200,000
                     individualAgricultural Bankof China Co.,Ltd.—SWS MUChina SecuritiesEnvironmental
                     Other                        0.39% 3,784,007                          3,784,007ProtectionIndustry IndexClassificationSecuritiesInvestment Fund
    Strategic      investor      or     generalcorporation 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 & Components Limited
    Explanation         on            associated
                                               and Zhuang Jianyi were related parties and acting-in-concert parties. Apart from that, it’srelationship or/and persons acting in
                                               unknown whether there was any associated relationship among other shareholders of the topconcert among the above-mentioned
                                               ten shareholders, or whether there is any action-in-concert among them regarding toshareholders
                                               Administrative Measures on Acquisition of Listed Companies.
                                    Shareholdings of the top 10 shareholders holding non-restricted shares
                                                                                                                   Type of shares
          Name of shareholder                  Number of non-restricted shares held at the period-end
                                                                                                                Type           Number
                                                                                                        RMB ordinary
    OSRAM Holding Company Limited                                                            131,815,685                           131,815,685
                                                                                                        share
    Prosperity Lamps & Components                                                                           RMB ordinary
                                                                                         102,751,648                           102,751,648
    Limited                                                                                                 share
                                                                                                        DomesticallyEssence International Securities
                                                                                          18,079,046 listed foreign                 18,079,046(Hong Kong) Co., Ltd.
                                                                                                        share
                                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                                                                                      DomesticallyDBS VICKERS(HONG KONG)
                                                                                         15,660,455 listed foreign             15,660,455LTD A/C CLIENTS
                                                                                                      share
                                                                                                      RMB ordinary
    Zhang Yuan                                                                                9,650,000                              9,650,000
                                                                                                      share
                                                                                                      Domestically
    Zhuang Jianyi                                                                             8,324,132 listed foreign               8,324,132
                                                                                                      share
    BBH A/C VANGUARD                                                                                      Domestically
    EMERGING MARKETS STOCK                                                                    4,592,770 listed foreign               4,592,770
    INDEX FUND                                                                                            share
    BOCHK INVESTMENT                                                                                      Domestically
    FUNDS-BOCHK CHINA GOLDEN                                                                  4,517,889 listed foreign               4,517,889
    DRAGON FUND                                                                                           share
                                                                                                      Domestically
    Hou Chunhu                                                                                4,200,000 listed foreign               4,200,000
                                                                                                      shareAgricultural Bank of China Co.,Ltd.—SWS MU China Securities
                                                                                                      RMB ordinary
    Environmental Protection Industry                                                         3,784,007                              3,784,007
                                                                                                      shareIndex Classification SecuritiesInvestment Fund
    Explanation          on         associated
                                             Among the top ten shareholders of the Company, Prosperity Lamps & Components Limitedrelationship or/and persons acting in
                                             and Zhuang Jianyi were related parties and acting-in-concert parties. Apart from that, it’sconcert among the top ten tradable
                                             unknown whether there was any associated relationship among other shareholders of the topshareholders and between the top ten
                                             ten shareholders, or whether there is any action-in-concert among them regarding totradable shareholders and the top ten
                                             Administrative Measures on Acquisition of Listed Companies.shareholders
    Explanation     on        the   top    10
                                             Zhang Yuan, an individual shareholder, holds 0 shares in the Company through the common
    shareholders      participating         in
                                             securities account and 9,650,000 shares through a credit trading guarantee securities account.securities margin trading (if any) (see
                                             As such, the shares that he holds in the Company total 9,650,000 shares.Note 4)Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Companyconduct any promissory repo during the reporting period?□ Yea √ NoNo such cases in the reporting period.2. Particulars about the controlling shareholderThe Company currently has no controlling shareholder or actual controller.(1) The first principal shareholder of the Company is OSRAM Holding Company Limited, which was established
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.in Hong Kong in Jun. 2004 with a registered capital of HKD 500,000. The company principal is Werner Hoffmann.It has no actual business and currently holds a stake of 13.47% in the Company.(2) The second principal shareholder of the Company is Prosperity Lamps & Components Limited, which wasestablished in Hong Kong in 1978 with a registered capital of HKD 2 million. Its legal representative is ZhuangJianyi. It specializes in sale, import & export of lighting products. It currently holds a stake of 10.5% in theCompany.Illustration on relationship between the Company and its first principal shareholder
                        Siemens                   Siemens                    The public
                   Aktiengesellschaft       Pension-Trust e.V.
                      17%                             2.5%                         80.5%
                                            OSRAM Licht AG
                                            (a listed company)
                                    100%
                                                                 19.5%
                                    OSRAM Beteiligungen
                                           GmbH
                                             80.5%
                                               OSRAM Germany
                                               100%
                                                OSRAM Holding
                                               Company Limited
                                             13.47%
                                            Foshan Electrical and Lighting
                                                      Co., Ltd.4. Other corporate shareholders with a shareholding percentage above 10%Except for the first and second principal shareholders—OSRAM Holding Company Limited and ProsperityLamps & Components Limited, no other corporate shareholders hold a stake over 10% in the Company.IV. Shareholding increase scheme proposed or implemented by the shareholders and theiracting-in-concert parties during the reporting period□ Applicable √ InapplicableNo such cases in the reporting period to the best knowledge of the Company.
                                                 2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                 Section VII. Preferred Shares□ Applicable √ InapplicableNo such cases in the reporting period.
                                                                 2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Section VIII. Directors, Supervisors, Senior Management Staffs and
                                                   EmployeesI. Changes in shareholding of directors, supervisors and senior management staffs
                                                                                               Amount of Amount of
                                                                                                shares         shares        Amount of
                                                                                 Shares
                                                                                               increased decreased shares held
                            Tenure                                    Ending   held at the
    Name     Office title                Sex   Age        Start date                               at the        at the          at the
                            status                                     date    year-begin
                                                                                               reporting      reporting period-end
                                                                                 (share)
                                                                                                period         period         (share)
                                                                                                (share)        (share)
           Chairman
                                                        28 May       28 May
    Pan Jie    of the         Current    Male          43                                      0              0              0              0
                                                        2013         2016
           Board
           Vice
           Chairman
    Liu                                                     28 May       28 May
           and            Current    Male          52                             351,280                 0              0     351,280
    Xingming                                                2013         2016
           General
           Manager
    Wu                                                      28 May       28 May
           Director       Current    Male          48                                      0              0              0              0
    Shengbo                                                 2013         2016Werner
    Jrgen                                                   28 May       28 May
           Director       Current    Male          45                                      0              0              0              0
    Dietrich                                                2013         2016Hoffmann
                                                        28 May       28 May
    Ye Zaiyou Director        Current    Male          58                                      0              0              0              0
                                                        2013         2016
    Yang                                                    28 May       28 May
           Director       Current    Male          37                                      0              0              0              0
    Jianhu                                                  2013         2016
    Liu        Independe                                    28 May       28 May
                          Current    Male          66                                      0              0              0              0
    Zhenping nt Director                                    2013         2016
    Dou        Independe                                    28 May       28 May
                          Current    Male          55                                      0              0              0              0
    Linping    nt Director                                  2013         2016
    Xue        Independe                                    28 May       28 May
                          Current    Male          46                                      0              0              0              0
    Yizhong    nt Director                                  2013         2016
    Zhang      Chairman Current          Male          40 17 Sep.        28 May        10,700                 0              0      10,700
                                                                 2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Yong        of the                                     2013        2016
            Supervisor
            yYe
                                                       21 May      28 May
    Zhenghon Supervisor Current        Male           41                               20,560           0           0     20,560
                                                       2013        2016g
    Zhang                                                  21 May      28 May
            Supervisor Current     Male           37                                 6,400          0           0       6,400
    Xuequan                                                2013        2016
    Zhuang                                                 28 May      28 May
            Supervisor Current     Male           57                                     0          0           0           0
    Rujia                                                  2013        2016
    Zhang                                                  28 May      28 May
            Supervisor Current     Male           63                                     0          0           0           0
    Yingqi                                                 2013        2016
            Company                                    28 May      28 May
    Lin Yihui                Current   Male           60                                     0          0           0           0
            Secretary                                  2013        2016
    Yin                                                    28 May      28 May
            CFO          Current   Male           39                                     0          0           0           0
    Jianchun                                               2013        2016
                                                       28 May      28 May
    Xie Qing    Vice GM      Current   Male           40                               12,950           0           0     12,950
                                                       2013        2016
                                                       28 May      28 May
    Wei Bin     Vice GM      Current   Male           45                               15,684           0           0     15,684
                                                       2013        2016
    Jiao                                                   17 Sep.     28 May
            Vice GM      Current   Male           42                               22,880           0           0     22,880
    Zhigang                                                2013        2016
                                                       13 May      28 May
    Chen Yu     Vice GM      Current   Male           42                                 6,700          0           0       6,700
                                                       2014        2016
    Total            --          --       --     --            --           --        447,154           0           0    447,154II. Post-holding situationMain working experience of current directors, supervisors and senior management staffs over the past five years:(1) Work experience of directorsPan Jie: Male, born in Shanghai, 1971, has bachelor degree of the electric light source of Dept. of IlluminatingEngineering and Light Sources of Fudan University, master’s degree of optics and optoelectronics of GUCAS andShanghai Institute of Technical Physics of the Chinese Academy of Sciences, and master’s degree of FDSM andNorwegian School of Management (B1). From Mar. 2001 to Jun. 2009,he acted as the General Manager of Asialighting business in Consumer and Industrial Products Group of General Electric Company; From Jul. 2009 toMar. 2011, he acted as CEO of Asian-Pacific region in America Lingji Electronics Co., Ltd.; From Apr. 2011 toJun. 2012, he acted as responsible person in Asian-Pacific region of Energy Electronics in the Energy ElectronicsDept. of GE; From Jul. 2012 to May 2013, he acted as CEO of Greater China Region in GE Water in PowerGeneration and GE Group of General Electric Company. In May 2013, he was elected as the Chairman of theBoard of the Company.Liu Xingming: Male, born in Xinhui, Guangdong Province in 1962, bachelor degree holder, engineer. He joined
                                                          2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.the Company in 1983, and acted as Vice GM from 1997 to 2005; acted as GM of the Company from Dec. 2005 toNov. 2008; acted as Vice GM of the Company in Dec. 2008; acted as Vice Director of the Board in Apr. 2011;from Apr. 2012 up to now, he acted as the GM and Vice Director of the Board; after 1995, he was elected as theDirector of the Company.Wu Shengbo: Male, American nationality, born in May 1966, bachelor degree of Thermal EngineeringDepartment of Tsinghua University, master degree of Mechanical Engineering of University of Nebraska-Lincolnand master degree of Information Management System of American Keller Graduate School. From Aug. 1993 toDec. 2008, he worked in GE and successively acted as General Manager in China of Optimization & ControlDepartment of Energy Group and concurrently the President & CEO of Xinhua Control Engineering Co., Ltd.,Operating General Manager of Control Solution Department in Asia-Pacific Area, etc.; from Jan. 2009 to Apr.2012, he worked in Honeywell and acted as the General Manager of Process Control Department in China; sinceApr. 2012, he has been worked in OSRAM Holding Company Limited, acted as the President in Asia-Pacific Area;since Apr. 2012, he was elected as the Director of the Company.Werner Jrgen Dietrich Hoffmann: Male, German nationality, born in Jun. 1969, bachelor degree. He joinedOsram Asia Pacific Co., Ltd. from Jul. 2006 and had acted as E&C CFO of Commerce Department in Asia PacificRegion and CFO MBA of Guangzhou Sino-German Electronic Co., Ltd.; acted as CFO of Sales Department, CFOin Asia Pacific Region, and LUM & LS CFO of Commerce Department in Asia Pacific Region from Apr. 2008;acted as CFO of Commerce Department in Asia Pacific Region from Apr. 2009; acted as CFO in Asia PacificRegion from Oct. 2012 up to present. In May 2013, he was selected as the Director of 7th Board of Directors.Ye Zaiyou: Male, born in Nanhai, Guangdong province in 1956,, junior middle school in educational background,director of the Company from the 1st to 7th Board of Directors. He is currently the Chairman of the Board ofNanhai Wuzhuang Global Ceramic Factory, also sponsor shareholder of the Company.Yang Jianhu: Male, born in Shanghai in 1977, bachelor degree of inorganic nonmetallic materials in ShandongLight Industry College, master’s degree of mineral crystal materials science of China University of Geosciences,doctor’s degree of optoelectronic materials science of SIOM of CAS. From Jul. 2004 to Apr. 2009, he acted asSenior Project Manager in General Electric (China) Co., Ltd; from May 2009 up to present, he acted as CTO ofHangzhou Times Lighting & Electric Appliance Co., Ltd. In May, 2013, he was elected as the Director of the 7thBoard of Directors.Liu Zhenping (Independent Director): Male, born in Shenyang, Liaoning Province in 1948, a postgraduate fromChinese Academy of Social Sciences with a title of senior accountant. Young intellectual in the Langjia Unit,Yuhong District, Shenyang from Sept. 1968 to Sept. 1971; Accountant, Chief Accountant and then Chief of theFinancial Affairs at Accountancy Office of Shenyang Bulb Factory from Sept. 1971 to Nov. 1983; Vice Chief(General Accountant) in Shenyang Bulb Factory from Nov. 1983 to Sept. 1992; Factory Director and PartyCommittee Secretary of Shenyang Bulb Factory from Sept. 1992 to Jan. 1998; GM, Party Committee Secretaryand Chairman of the Board of Shenyang Northeast Lighting Co., Ltd. from Jan. 1998 to Jul. 2004; from Jul. 2004till now, GM and Partner of Liaoning Huize Certified Public Accountants Co., Ltd.; Vice President of ChinaAssociation of Lighting Industry, Chief of Electric Light Source Specialized Committee since 1992; Deputy toPeople’s Congress and a member of the Politics and Law Committee under the Standing Committee of thePeople’s Congress in Tiexi District, Shenyang from 1992 to 2007. He was elected as the independent director ofthe 6th Board of Directors in Jun. 2010.Dou Linping (Independent Director): Male, born in Beijing in 1959, bachelor degree. Majoring in MetalMaterials and Heat Treatment at Beijing University of Technology from Sept. 1978 to Jul. 1982; worked inBeijing Lamp Factory from Jul. 1982 to Mar. 1985 and Vice Section Chief in the Design Section early in 1984;Chief of the Design Office in Beijing Lamps Research Institute from Mar. 1985 to Dec. 1992 and Vice Director of
                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.the Institute since 1990; worked in China Association of Lighting Industry from Jan. 1993 to May 2012. He hasbeen the Vice Secretary General of China Illuminating Engineering Society since Jun. 2012. And he was electedas the independent director of the 6th Board of Directors in Jun. 2010.Xue Yizhong (Independent Director): Male, born in Jul. 1968, from Xuzhou Anhui, master degree and owningLawyer Qualification Certificate, Economist Qualification Certificate and Political Worker QualificationCertificate. From the year of 1993 to 2001, he successively worked as Vice Section Chief, Section Chief, ViceDivision Chief and Division Chief of International Business Division, Legal Affairs Division and CreditManagement Division (including Assets Risks Management Section, Property Credit Section, Foreign CurrencyCredit Section, Project Credit Section and Industrial & Commercial Section and other functional departments);from the year of 2001 till now, he worked in Grandall Law Firm and acted as the Senior Partner, Principal ofFinancial Professional Committee and Management Partner of Shenzhen Office. From Aug. 2012, he was selectedas the Independent Director of the Company.(2) Work experience of supervisorsZhang Yong: Male, born in Hunan Changsha in Jun. 1974, college degree, mechanical engineer. From Jul. 1997,he joined in the Foshan Electrical and Lighting Co., Ltd. and successively acted as Deputy Director and Directorof Lamp Filament Appliance Workshop from Oct. 1999 to Jun. 2008; acted as Factory Director of GaomingFluorescent Lamp Factory and Factory Director of Gaoming Branch Factory from Jul. 2008 to Dec. 2008;respectively acted as Department Director of Product Department, OEM Department, Mechanical DynamicsDepartment and Infrastructure Department from Jan. 2009 to Dec. 2012; acted as General Manager Assistant fromMar. 2013 up to present. In Sep. 2013, he was selected as the Chairman of the Board of Supervisors of theCompany.Ye Zhenghong: Male, born in Jun. 1973, college degree, is Supervisor of the Company. He joined the Companyfrom Jul. 1995; worked in the Machine Repair Shop from Jul. 1997 to Jan. 2001; acted as EquipmentManagement Director in T8 Fluorescent Lamp Factory from Feb. 2001 to Jan. 2005; acted as Director of MachineRepair Workshop from May 2005 to Jan. 2007; acted as Chief Officer of Machinery Dynamic Department fromMay 2006 to Dec. 2007; and acted as factory director of T8 Fluorescent Lamp Factory from Jan. 2008 up topresent.Zhang Xuequan: Male, born in Dec. 1977, college degree. He joined the Company from Oct. 1996, and acted asWorkshop Manager of Lamp Workshop from Apr. 2003 to May 2008; acted as the Department Director of theBusiness Management Department of the Company from Jun. 2008 till now. He acted as the Supervisor of theCompany from May 2013.Zhuang Rujia: Male, born in Oct. 1975, in Chaoyang, Guangdong Province, graduated from technical secondaryschool. He consecutively acted as director of Prosperity Lamps & Components Limited for more than twentyyears, and was director of Zhejiang Prosperity Lighting Electrical Co., Ltd. and Prosperity (Hangzhou) LightingElectrical Co., Ltd.; he has experience of several years in operating & running and marketing strategy of lightingindustry. He acted as the Supervisor of the Company from Jun. 2010.Zhang Yingqi: male, comes from Shanghai, born in Feb. 1951, a postgraduate. From May 2001 to Aug. 2010, heworked as the General Manager in Guangzhou Pearl River Asset Management Co., Ltd. and held the post ofChairman of the Board of Directors from Aug. 2010 to Jul. 2012; acted as the Supervisor of the Company fromMay 2011.(3) Work experience of senior management staffsLin Yihui: Male, born in Jiexi, Guangdong Province in 1954, graduated as postgraduate of Economic Class, and
                                                            2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.now is acting as Party Secretary of the Company. He was in active service in force from Dec. 1970 to 1986 andacted as posts of command, battalion and group; works in Foshan International Trust and Investment Companyfrom 1986 to Sep. 2000 and acted as Section Chief and Vice GM and was in charge of the securities business ofthe Company as well as host the works such as the underwritten offering and listing recommendation of the sharesof various companies over years; acted as Party Secretary of the Company from May till now. He was acted as theBoard Secretary in May, 2013.Xie Qing: Male, born in Xinyi, Jiangsu Province in Apr. electric-light-source engineer. He graduated fromNanjing Radio Industrial School in Jul. 1994, and worked in the General Bulbs Workshop of the Company uponhis graduation, and successively became the Chief of the production line after three months, technician of theGeneral Bulbs Workshop in Mar. 1996, Chief of Middle-grade Lamp Workshop in May 1997, Chief of Sing-endLamps Workshop from 1998 to 2010, and Deputy General Manager of the Company since Jun. 2010.Wei Bin: male, born in Chenzhou City, Hunan Province in May 1969 and bachelor’s degree and was an engineer.He joined in the Company in 1991, and responsible for the product development of the graduate school of theCompany from Mar. 1992 to Dec. 1996, acted as Workshop Manager of Energy Saving Lamp Workshop from Jan.1997 to Dec. 2005, acted as Workshop Manager of HID Workshop from Jan. to Dec. 2005, acted as WorkshopManager of T5 Workshop from 2006 to Nov. 2008, acted as the Department Director of the TechnologyDepartment from Nov. 2008 to 2009 and acted as Vice GM of the Company from Sep. 2009.Yin Jianchun: Male, born in Apr. 1975 in Shanghai, graduate degree. He acted as Cost Accountant in DongfengMorse (Shanghai) from Jul. 1995 to Oct. 2000; acted as GL Accountant in Henkel Loctite China Co., Ltd. fromDec. 2000 to Dec. 2001; acted as Financial Executive of Metso Automation (Shanghai) Company OperationsCenter from Apr. 2002 to Aug. 2004; successively acted as Finance Manager of China manufacturing of LightingDivision, Manager of China Business Planning Analysis of Industrial and Consumer Products Division, CFO ofDigital Energy Division of Asia Pacific Region, CFO of Energy Electronics Division of Asia Pacific Region andDirector of Global Business Planning Analysis of Energy Electronics Division. He acted as CFO of the Companyfrom May 2013.Jiao Zhigang: Male, born in Shenqiu, Henan Province in May 1972, bachelor degree holder. He graduated fromSouth China University of Technology in Jul. 1994, and at the same year he entered Foshan Electrical andLighting Co., Ltd. He acted as Warehouse Director of the Company from Aug. 1995 to Sep. 2013, acted asDepartment Director of Human Resources Department from May 2010 to Sep. 2013; selected as EmployeeSupervisor from Mar. 2007 to Sep. 2013, and as Chairman of the Supervisory of the Company from May 2010 toSep. 2013. He acted as Vice GM of the Company in Sep. 2013.Chen Yu: Male, born in Dec. 1972 in Guangdong Zhanjiang, college degree and engineer. He entered FoshanElectrical and Lighting Co., Ltd. in Jul. 1994. And acted as workshop manager of parabolic reflector, coating film,energy saving lamp, factory director of the branch factory of Gaoming and workshop manager of general bulbsfrom Jan. 1997 to Dec. 2012, acted as Director of Production Department, OEM Department and MechanicalDynamics Department from Jan. to Aug. 2013, acted as Director of Production Department and OEM Departmentfrom Sep. 2013 to May 2014 as well as acted as Vice GM of the Company from May 2014.Post-holding in shareholders’ units√Applicable □InapplicableName of the
    person holding                                       Position in                                     Receives payment
                                                                   Beginning date   Ending date of
                      Name of shareholder’s unit   shareholder’s                                   from shareholder’s
    any post in                                                      of office term    office term
                                                         unit                                              unit?shareholder’s
                                                                              2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
      unit
    Zhuang Rujia     Prosperity Lamps & Components Limited Director                     28 Apr. 1989                        YesPost-holding in other units√Applicable □Inapplicable
    Name of the
    person holding                                                       Position in    Beginning date    Ending date of     Receives payment
                            Name of other unit
    any post in                                                        other unit     of office term     office term        from other unit?
    other unitsWu Shengbo
                 OSRAM Asia-Pacific Co., Ltd.                       President       1 Apr. 2012                         YesWerner Jrgen
    Dietrich         OSRAM Asia-Pacific Co., Ltd.                       CFO             3 Oct. 2012                         YesHoffmann
                 Liaoning       Huize       Certified       Public General
    Liu Zhenping                                                                        18 Jul. 2004                        Yes
                 Accountants Co., Ltd.                              Manager
                                                                    Secretary
    Dou Linping      China Illuminating Engineering Society                             5 Jun. 2012                         Yes
                                                                    General
                                                                    Senior
    Xue Yizhong      Grandall Law Firm                                                  17 May 2001                         Yes
                                                                    Partner
                 Foshan Nanhai Wuzhuang Global Ceramic Chairman of
    Ye Zaiyou                                                                           10 Aug. 1993                        Yes
                 Factory                                            the BoardIII. Remuneration for directors, supervisors and senior management staffsDecision-making procedure, determining basis and actual payment for the remuneration of directors, supervisorsand senior management staffs
                                                 The Remuneration & Appraisal Committee under the Board of Directors decides the
                                                 remuneration of directors, supervisors and senior management in accordance with the
    Decision-making     procedure     for      the
                                                 Plan for Implementing the Equity Incentive Mechanism for Middle-and Top-Rankremuneration of directors, supervisors and
                                                 Management Personnel reviewed and approved on the 2001 Annual Shareholders’senior management
                                                 General Meeting, and the particulars on completing current main financial indexes &
                                                 operating goals, as well as the fulfillment of job responsibilities by them.
                                                 The remuneration of directors (excluding independent directors), supervisors and senior
                                                 management who withdraw remuneration in the Company are all decided in accordanceBasis for determining the remuneration of
                                                 with the Company’s Plan for Implementing the Equity Incentive Mechanism for
    directors,    supervisors   and         senior
                                                 Middle-and Top-Rank Management Personnel and relevant appraisal indexes.management
                                                 The allowance of independent directors should be granted according to the standard
                                                 reviewed and approved by 2010 Annual Shareholders’ General Meeting.Actual payment of the remuneration of The total remuneration (before tax) actually paid for the directors, supervisors and
    directors,    supervisors   and         senior senior management staffs in 2014 were of RMB 11.4874 million.management
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.Remuneration for directors, supervisors and senior management staffs of the Company during the reporting period
                                                                                               Unit: RMB Ten Thousand Yuan
                                                                                                   Total
                                                                                 Total                               Actual
                                                                                               remuneration
                                                                             remuneration                         remuneration
    Name         Office title               Sex   Age       Tenure status                      gained from
                                                                            gained from the                       gained at the
                                                                                               shareholder’s
                                                                              Company                              period-end
                                                                                                   unit
               Chairman         of
    Pan Jie                              Male               43 Current                       243                                  243
               the Board
               Vice chairman
               of the Board
               and
    Liu Xingming                         Male               52 Current                  182.25                               182.25
               concurrently
               General
               Manager
    Wu Shengbo     Director              Male               48 CurrentWerner Jrgen
    Dietrich       Director              Male               45 CurrentHoffmann
    Ye Zaiyou      Director              Male               58 Current
    Yang Jianhu    Director              Male               37 Current
               Independent
    Liu Zhenping                         Male               66 Current                        10                                   10
               Director
               Independent
    Dou Linping                          Male               55 Current                        10                                   10
               Director
               Independent
    Xue Yizhong                          Male               46 Current                        10                                   10
               Director
               Chairman of
    Zhang Yong                           Male               40 Current                   61.87                                61.87
               the Supervisory
    Ye Zhenghong Supervisor              Male               41 Current                   33.26                                33.26Zhang
               Supervisor            Male               37 Current                   22.48                                22.48Xuequan
    Zhuang Rujia   Supervisor            Male               57 Current                                        50.39           50.39
    Zhang Yingqi   Supervisor            Male               63 Current
               Board
    Lin Yihui                            Male               60 Current                   92.13                                92.13
               Secretary
    Yin Jianchun   CFO                   Male               39 Current                   145.8                                145.8
    Xie Qing       Vice GM               Male               40 Current                   98.15                                98.15
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    Wei Bin           Vice GM          Male                           45 Current                   92.13                           92.13
    Jiao Zhigang      Vice GM          Male                           42 Current                   92.13                           92.13
    Chen Yu           Vice GM          Male                           42 Current                   55.54                           55.54
    Total                    --               --           --                  --               1,148.74            50.39       1,199.13Particulars about the equity incentives granted for the directors, supervisors and senior management staffs of theCompany□ Applicable √ InapplicableIV. Particulars about changes of Directors, Supervisors and Senior Executives of theCompany
        Name            Position               Type              Date                                  Reason
    Chen Yu             Vice GM          Engaged          13 May 2014           Engaged by the Board of DirectorsV. Particulars about changes in core technical team or key technicians during the reportingperiod (not directors, supervisors or senior management staffs)There were no changes in the core technical team or key technicians during the reporting period.VI. About employees1. As to 31 Dec. 2014, the Company (branch companies and subsidiaries included) has 8944employees in active service, and the professional structure and educational background are asfollows:
                                                                                      Proportion in total amount of
    Professional structure of employees                Amount
                                                                                             employees (%)
               Production staff                        7803                                     87.24 %
               Technical staff                          473                                      5.29%
                 Sales staff                            516                                      5.77%
           Administration staff                         108                                      1.21%
               Financial staff                              44                                   0.49%
                    Total                              8944                                      100%
                                                   2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                      Post Structure
                                                                                     Production staff
                                                                                     Technical staff
                                                                                     Sales staff
                                                                                     Administration staff
                                                                                     Financial staff
    Educational backbroud                Amount             Proportion in total amount of employees
                                                            (%)
    Above college level                  1002                              11.20%
    Technical secondary school and            2016                              22.54%
      senior high school
    Below senior high school               5926                              66.26%
            Total                         8944                              100%
                       Staffs’   Education   Background      Structure
                       Chart
                                                                               Above college level
                                                                               Technical secondary school
                                                                               and senior high school
                                                                               Below senior high school
                                                             2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.2. The Company has signed the labor contracts with all its staffs and handled the social insurance for the staffs, aswell as established the public reserve funds system. There were no particulars in violation of laws and regulationswhen executing the national employment system, labor protection system, social security system and medicalsecurity system. And the Company need not undertake the expenses of resigned and retired staffs.3. Employee’s remuneration policyThe employee’s remuneration of the Company was paid monthly in accordance with relevant remunerationmanagement system of the Company, and distributed the performance salary at the year-end according to itsbusiness performance and appraisal result.4. Employees’ training planAccording to the development needs, the Company set up Foshan Lighting University under the support ofrelevant Education Department. According to the needs of the development strategies and functional departments,the Company established the internal team of lecturer and made key training on the staffs of the marketing, R&Dand production departments by way of combination of internal & external training for making the skilled staffs toteach business and technical knowledge regularly to the new staffs, so as to cultivate excellent talents team andenhance its competiveness.
                                                                     2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                     Section IX. Corporate GovernanceI. Basic information of corporate governanceDuring the reporting period, in strict accordance with relevant requirements of Company Law, Securities Law,Code of Corporate Governance of Listed Companies and Rules of Stock Listing of Shenzhen Stock Exchange aswell as other relevant laws, rules and regulations, the Company continuously perfected the corporate governancestructure and set up an effective corporate governance system. At present, the Company has set up governancestructure of responsible Shareholders’ General Meeting, the Board of Directors, the Supervisory Committee andmanagers, who performed right of decision-making, execution and supervision respectively according to theirduties; besides, the Company set up special committees of the Board of Directors and system for independentdirectors. The Company strengthened information disclosure of principal shareholders and personsacting-in-concert, forbidden shareholders of the Company to misapply their rights. The Company separated fromthe principal shareholder in personnel, assets, business, financial affairs and organizational, and was absolutelyimpendent. The Company timely revised and perfected various systems in accordance with the latest issued laws& rules and relevant regulations of CSRC and Shenzhen Stock Exchange. And the corporate governance isbasically in line with the requirements of relevant laws, regulations and regular documents.The main systems (all published on www.cninfo.com.cn) established by the Company are as follows.
                                                             The latest session to review and approve the
    No.                    Name of system                                                                      Disclosure date
                                                                                 system
    1          Articles of Association                        2012 Annual General Meeting                         2013.5.29
    2          Rules of Procedure for Shareholders’ General The First Special Shareholders’ General Meeting 2012.8.22
           Meeting                                        for 2012
    3          Rules of Procedure for Board of Directors      2012 Annual General Meeting                         2013.5.29
    4          Rules of Procedure for Supervisory Committee   2012 Annual General Meeting                         2013.5.29
    5、        Work System for Independent Directors          2012 Annual General Meeting                         2013.5.29
    6          Rules for execution of Audit Committee         The 29th Session of the 6th Board of Directors      2013.4.26
    7          Rules of Nomination Committee                  The 29th Session of the 6th Board of Directors      2013.4.26
    8          Rules of Strategy Committee                    The 29th Session of the 6th Board of Directors      2013.4.26
    9          Rules of Remuneration and Appraisal committ The 29th Session of the 6th Board of Directors         2013.4.26
           ee
    10         Working Rules of GM                            The 29th Session of the 6th Board of Directors      2013.4.26
                                                                         2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
    11                                                               The 3rd Session of the 5th Board of Directors     2007.8.28
        Administrative    Measures       on       Information
        Disclosure
    12                                                               The 3rd Session of the 5th Board of Directors     2007.8.28
        Management        System        on      Related-party
        Transactions
    13                                                               The 3rd Session of the 5th Board of Directors     2007.8.28
        Management System on Securities Investment
                                                      rd               th
    14      Management System on the Shares Held by The 23 Session of the 5 Board of Directors                         2010.4.29
        Directors, Supervisors and Senior Management
        Staffs & Their Variation
    15                                                               The 23 rd Session of the 5th Board of Directors   2010.4.29
        Internal Control System
                                                         rd               th
    16      Accountability System on Material Errors in The 3 Session of the 5 Board of Directors                      2010.7.15
        Information Disclosure of Annual Report
    17                                                               The 3rd Session of the 5th Board of Directors     2010.7.15
        Management System on Reporting of External
        Information
    18                                                               The 16th Session of the 5th Board of Directors    2012.4.25
        Management       System    on        Registration   of
        Information Insiders
    19                                                               The 17th Session of the 5th Board of Directors    2012.6.13
        Work System for Secretary to the Board
    20                                                               The 18th Session of the 5th Board of Directors    2012.6.29
        Management System on Profits Distribution
                                                            st               th
    21      Plan on Return for Shareholders in the Future The 21 Session of the 6 Board of Directors                   2012.6.29
        Three Years (from the Year of 2012 to 2014)
    22                                                               The 21st Session of the 6th Board of Directors    2012.8.2
        Internal Audit System
    23                                                               The 21st Session of the 6th Board of Directors    2012.8.2
        Financial Management System
    24                                                               The 21st Session of the 6th Board of Directors    2012.8.2
        Method on Risks Assessment
    25                                                               The 21st Session of the 6th Board of Directors    2012.8.2
        System on Anti-fraud and Reporting
    26                                                               The 27th Session of the 6th Board of Directors    2012.12.12
        Management System on Assets Impairment
        Provision
    27      Working system on Investor Complaint Handling The 10th Session of the 7th Board of Directors               2014.4.25
    28      Management System on External guarantee                  The 10th Session of the 7th Board of Directors    2014-4.25Whether there was difference between the corporate governance and the Company Law and relevant rules of
                                                                        2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.CSRC□Yes √ NoThere was no difference between the corporate governance and the Company Law and relevant rules of CSRCProgress of corporate governance activities, promulgation and implementation of Registration System forInformation InsidersThe Company actively responded to the special inspection work of CSRC and CSRC Guangdong Bureau oncorporate governance and attended the work sessions on the corporate governance of listed companies, and itpromulgated and perfected various systems in accordance with requirements of CSRC and CSRC GuangdongBureau, so as to further improve its corporate governance structure and increase its governance level. At present,the Company has promulgated the Management System for Information Insiders and the Management System onReporting of External Information, and during the period of preparing the periodical reports and occurringsignificant events, requiring the relevant personnel truthfully and completely record the name list of theinformation insiders involved in the links of reporting, transfer, preparation, examination, disclosure of insideinformation before disclosure, time of knowing the inside information and the content, etc., and report the File ofInformation Insiders according to the requirements of regulatory authorities. Through the above works, theCompany further standardized the management on record of information insiders, strengthened the confidentialwork for inside information, effectively prevented the illegal behaviors of using inside information for trading,and performed the fair principle in information disclosure, so as to protect the interest of the investors.II. Particulars about annual shareholders’ general meeting and special shareholders’ generalmeeting held during the reporting period1. Particulars about annual shareholders’ general meeting held during the reporting period
       Session              Convening date    Name of proposal            Resolution         Disclosure date      Disclosure index
                                             1.   2013        Annual                                           Name                  of
                                             Work Report of the                                                announcement:
                                             Board;      2.     2013                                           Announcement        on
                                             Annual Work Report                                                Resolutions Made at
    2013             Annual                      of the Supervisory All the proposals are                          the    2013      Annual
    Shareholders’            28 May 2014        Board; 3. Proposal approved         at    the 29 May 2014         Shareholders’
    General Meeting                              on   2013        Annual session                                   General       Meeting;
                                             Report      and      Its                                          Announcement No.:
                                             Abstract; 4. Proposal                                             2014-024; disclosure
                                             on   2013        Annual                                           website:
                                             Financial Statement                                               www.cninfo.com.cn.
                                                                            2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.
                                               Report; 5. Proposal
                                               on       2013    Annual
                                               Profit     Distribution
                                               Pre-plan; 6. Proposal
                                               on the 2014 Annual
                                               Routine
                                               Related-party
                                               Transactions;           7.
                                               Proposal        on     the
                                               Continuous
                                               Engaging        of     the
                                               CPAs2. Particulars about special shareholders’ general meeting held during the reporting periodDuring the reporting period, there was no any special shareholders’ general meeting held during the reportingperiod of the Company.3. Particulars about special shareholders’ general meeting held by the preferred shareholders withrecovered voting rights□ Applicable √ InapplicableIII. Performance of the Independent Directors1. Particulars about the Independent Directors attending the board sessions and the shareholders’ generalmeetings
                                 Particulars about the Independent Directors attending the board sessions
                                                                                                                             Failing to present
                                                                      Presence by
    Name of independent     Due presence           Presence in                                 Entrusted                         in person for two
                                                                    telecommunicati                        Absence (times)
      directors            (times)           person (times)                             presence (times)                     consecutive
                                                                      on (times)
                                                                                                                             sessions or not
    Liu Zhenping                             9                     2                    7                  0                 0 No
    Dou Linping                              9                     2                    7                  0                 0 No
    Xue Yizhong                              9                     1                    7                  1                 0 NoPresence of independent directors in
                                                                                                                                               1shareholders’ general meeting2. Particulars about Independent Directors propose objection on relevant eventsDid Independent Directors raise any disagreement about matters of the Company?
                                                                   2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.√ Yes □ No
                                            Events with objection put forward by the
       Name of independent directors                                                               Contents of the objection
                                                     Independent Directors
                                                                                        According to the 2 teleconferences and the
                                                                                        relevant     data    inquired   from     the
                                                                                        assessment companies through letters by
                                           Proposal on Contribution and Subscribing Deputy General Manager Office of the
                                           the   Additional   Shares   of    Quanfeng Company, the general feeling of the futureLiu Zhenping
                                           Optoelectronic Science & Technology operating conditions and the effective
                                           (Hong Kong) Co., Ltd.                        estimations was of much uncertainty of
                                                                                        Quanfeng, and suggested that whether
                                                                                        could      entrust   well-known   assessment
                                                                                        institutions to execute the re-assessment.
                                                                                        Agreed with the strategy of actively
                                                                                        developing the overseas market through
                                                                                        carefully review the relevant materials and
                                           Proposal on Contribution and Subscribing
                                                                                        listen to the advice of each Directors
                                           the   Additional   Shares   of    Quanfeng
    Xue Yizhong                                                                             among the teleconferences, but had not
                                           Optoelectronic Science & Technology
                                                                                        confidence in the larger age of the actual
                                           (Hong Kong) Co., Ltd.
                                                                                        controller of the investees as well as the
                                                                                        development ability among the overseas
                                                                                        market such as America.3. Other explanation on performance of independent directorsWhether the advices of independent directors for the Company were adopted or not?√ Yes □ NoExplanation on the advices of independent directors for the Company being adoptedDuring the reporting period, in accordance with the requirements of Company Law, Code of Governance of ListedCompanies, Guidance on the Establishment of the Independent Directors System of the Listed Companies,Articles of Association and relevant systems, the independent directors of the Company attended the boardsessions held during the reporting period, carefully reviewed the proposals proposed on the sessions, paidattention to the operation of the Company, performed the duties sincerely and diligently, and issued independentopinion on the related-party transactions, equity transfer, purchasing the equity of the controlled subsidiaries, etc.,as well as proposed many precious advices on perfection of systems and decision of routine operation of theCompany, so as to play an active role in protecting the legal right of the Company and its shareholders.IV. Performance of the Special Committees under the Board during the reporting period(I) Work situation of the Audit CommitteeAccording to the related provisions of China Securities Regulatory Commission and Shenzhen Stock Exchange, aswell as the Rules of Implementation for the Audit Committee of the Board, the Audit Committee diligentlyperformed the following work duties:
                                                            2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.1. On 28 Jan. 2014, the Audit Committee convened a session and reviewed as well as approved the following twotopics:(1) Reviewed and approved the main time arrangement of the 2013 audit work;(2) Reviewed and approved the report of the 2013 main financial data of Ministry of Finance.Had not discovered any significant problem of the 2013 main financial data of the Company after carefullyreviewed and the 2013 main financial data and pretax profits analysis submitted by Ministry of Finance andlistened to the report from the financial staffs. Since there is a period of time between this preliminary review ofthe financial statements and the formal issuance of the auditor’s report and the financial statements, we herebyremind the Company’s Financial Department to pay attention to dealing with the follow-up affairs after the date ofBalance Sheet in strict compliance with the New Accounting Standards for Business Enterprises, so as to ensurethe factuality, fairness and completeness of the financial statements.2. On 15 Apr. 2014, the Audit Committee convened a session and reviewed the financial statements submitted bythe Company, on which the registered accountants had issued their preliminary audit opinions, including thebalance sheet as at 31 Dec. 2013, the profit statement, the statement of changes in shareholders’ equity and thecash flow statement as of the fiscal year 2013, as well as the notes to the said financial statements.After the communication with the registered accountants regarding their preliminary audit opinions, as well as ourfurther referring to the supplementary account books and records, the Audit Committee believed that the Companyhad handled the events after the balance sheet date in strict compliance with the New Accounting Standards forBusiness Enterprises; And the Company has prepared its financial statements in accordance with the NewAccounting Standards for Business Enterprises and the related financial system of the Company, which are a fairpresentation of the financial position of the Company as at 31 Dec. 2013, as well as the operating results and cashflows for the year then ended. All members of the Audit Committee signed to approve the following proposals:(1) 2013 annual financial and accounting report of the Company;(2) Summary report by the Audit Committee on the 2013 annual audit performed by GP Certified PublicAccountants;(3) GP Certified Public Accountants has been serving as the Company’s annual auditor for more than twenty years.And it performed competently, diligently and responsibly during the 2013 annual auditing. Therefore, the AuditCommittee hereby proposes to renew the employment of GP Certified Public Accountants LLP as the annualauditor for the year 2013;(4) 2013 annual work report and 2014 work plan of Audit Department.3. The Audit Committee convened a session on 5 Aug. 2014 to approve with consensus of the Proposal on the2014 Semi-annual Withholding the Equity Incentive Fund.(II) Work situation of the Remuneration and Appraisal Committee1. On 15 Apr. 2014, based on the completion status of the Company’s major financial targets and businessobjectives in 2013, the work scopes and main responsibilities of the Company’s present directors, supervisors andother senior management staffs, and the completion status of indexes concerning the performance assessment ofthe Company’s directors, supervisors and other senior management staffs, the Committee conducted anassessment in regard to the remuneration of the directors, supervisors and other senior management staffs andbelieved that the remuneration range for the directors, supervisors and other senior management staffs weredecided and adopted in accordance with the relevant stipulations in the Management System on Decision ofRemuneration; The Company’s provision for the incentive funds was in line with the requirements of the EquityIncentive Mechanism for Middle-and Top-Rank Management Staffs, and the Company’s incentives to itsmiddle-and top-rank management staffs and its operational and technical professionals was in accordance withrelevant laws and regulations, which would promote the close connection of interest among the management staffs,
                                                           2014 Annual Report of Foshan Electrical and Lighting Co., Ltd.the Company and its shareholders.2. On 5 Aug. 2014, the Board of Directors and the Remuneration and Appraisal Committee held the meetingwhich reviewed and approved the Proposal on the 2014 Semi-annual Withholding the Equity Incentive Fund.V. Performance of the Supervisory CommitteeWhether the Supervisory Committee finds the Company existing risks or not in the supervisory activities duringthe reporting period?□ Yes √ NoThere was no objection to the supervisory events of the Board of Supervisors during the reporting period.In 2014, the Company continued to perform its duties diligently in accordance with the stipulations of theCompany Law, Code of Governance of Listed Company and Articles of Association as well as other relevant rules,and actively protected the interest of the Company, its shareholders and staffs.I. Work situation of the Supervisory Committee during the reporting periodThe Supervisory Committee convened three sessions during the reporting period. And the Chairman of theSupervisory Committee took part in the sessions held by the Board of Directors and the management teammeetings, participating in the discussion of the Company’s important decisions. Sessions held by the SupervisoryCommittee are specified as follows:1. On 23 Apr. 2014, the 5th Session of the 7th Supervisory Committee was held at the Conference Room on 5/F ofthe Company building. 5 supervisors were supposed to attend the meeting and all of them were actually present.The session was in accordance with the Company Law and the Articles of Association of the Company. Chairmanof the Supervisory Committee, presided over the session, with the resolutions approved as follows:(1) The 2013 Annual Work Report of the Supervisory Committee;(2) The 2013 Annual Report and its Summary, including both versions in the Chinese language and Englishlanguage;(3) The 2013 Annual Financial Statement Report;(4) The 2013 Annual Profit Distribution Pre-plan;(5) The Proposal on Continue to Engage the CPA Firm;(8) The Proposal on the 2013 Annual Self-appraisal Report on Internal Control;(9) The First Quarterly Report in 2014 for the Company.2. On 26 Aug. 2014, the 6th session of the 7th supervisory committee was held in the meeting room of the 5/F ofthe Company’s office building. 5 supervisors were supposed to attend and all of them participated in the meeting.The meeting complied with Company Laws and Articles of Association and chairman of the supervisorycommittee, presided over the meeting, which the meeting reviewed and approved the 2014 Semi-annual Reportand Abstract.3. The Company convened the 7th Session of the 7th Supervisory Committee by way of telecommunication on 28Oct. 2014, the five supervisors, who should attend the session, all voted on the proposals proposed on the sessionand consensus to review and approve the Third Quarterly Report in 2014.II. Independent opinions from the Supervisory Committee on the following matters:1. About the Company’s operation in accordance with the law. During the reporting period, the Company’ssupervisors have supervised on the procedures for convening the shareholders’ general meetings and Boardsessions, the resolutions and decision-making procedures, particulars on the execution of resolutions made at theshareholders’ general meeting by the Board, particulars on the duty performance of the senior executives of the