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佛山照明(000541)公告正文

粤照明B:2015年年度报告(英文版)

公告日期:2016-03-28

                  The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.




FOSHAN ELECTRICAL AND LIGHTING CO., LTD.

           The 2015 Annual Report




                 March 2016




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                                            The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.




              Section I Important Statements, Contents & Terms

The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior
management staff of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as the
“Company”) warrant that this Report is factual, accurate and complete without any false
information, misleading statements or material omissions. And they shall be jointly and severally
liable for that.
He Yong, company principal, Liu Xingming, chief of the accounting work, and Tang Qionglan,
chief of the accounting organ (chief of accounting), hereby confirm that the financial report carried
in this Report is factual, accurate and complete.
All directors attended the board meeting for reviewing this Report.
GP Certified Public Accountants LLP has issued a standard auditor’s report with unqualified
opinion for the Company.
The accounting data and financial report in this Report have all been audited by GP Certified Public
Accountants LLP. This Report is prepared in both Chinese and English. Should there be any
understanding 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 be
considered as virtual promises of the Company to investors. And investors are kindly reminded to
pay attention to possible risks.
The Company has described in detail in this Report the risk of market competition, the risk of rising
operating costs and the risk of falling prices of inventories. Please refer to “Possible risks” in
“Outlook of the Company’s future development” in “Section IV Discussion & Analysis by
Management” of this Report.
The Company’s preliminary plan for profit distribution upon review and approval at the board
meeting: Based on the total shares of 1,272,132,868, a cash dividend of RMB 0.125 yuan (tax
included) will be distributed to all shareholders for every 10 shares that they hold. No bonus shares
will be granted and no capital reserve will be turned into share capital.




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                                                           Contents




Section I Important Statements, Contents & Terms ....................................................................... 2

Section II Company Profile & Financial Highlights ....................................................................... 5

Section III Business Highlights ....................................................................................................... 10

Section IV Discussion & Analysis by the Management ................................................................ 14

Section V Significant Events ........................................................................................................... 36

Section VI Share Changes & Particulars about the Shareholders .............................................. 59

Section VII Preference Shares ........................................................................................................ 70

Section VIII Directors, Supervisors, Senior Management Staff & Employees .......................... 71

Section IX Corporate Governance ................................................................................................. 86

Section X Financial Report ............................................................................................................. 98

Section XI Documents Available for Reference ........................................................................... 207




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                                        Terms


                     Term                                          Specific contents

The Company, Company, FSL                Foshan Electrical and Lighting Co., Ltd.

GRAM                                     Guangdong Rising Assets Management Co., Ltd.

Electronics Group                        Guangdong Electronics Information Industry Group Ltd.

Shenzhen Rising Investment               Shenzhen Rising Investment Development Co., Ltd.

Hong Kong Rising Investment              Hong Kong Rising Investment Development Limited

CSRC                                     China Securities Regulatory Commission

SZSE                                     Shenzhen Stock Exchange

                                         Shareholders’ General Meeting of Foshan Electrical and Lighting Co.,
Shareholders’ General Meeting
                                         Ltd.

Board of Directors                       Board of Directors of Foshan Electrical and Lighting Co., Ltd.

Supervisory Committee                    Supervisory Committee of Foshan Electrical and Lighting Co., Ltd.

Annual report auditor, GP                GP Certified Public Accountants LLP

Yuan, ten thousand, million, billion     RMB Yuan, RMB Ten Thousand, RMB million, RMB billion




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                    Section II Company Profile & Financial Highlights

I. Basic information of the Company

Stock abbr.                        FSL / FSL B                                Stock code                  000541/200541

Stock exchange                     Shenzhen Stock Exchange

Company name in Chinese            佛山电器照明股份有限公司

Abbr. of Company name in
                                   佛山照明
Chinese

Company name in English (if
                                   FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
any)

Abbr. of Company name in
                                   FSL
English (if any)

Legal representative               He Yong

Registered address                 No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.China

Zip code                           528000

Office address                     No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.China

Zip code                           528000

Company website                    www.chinafsl.com

Email address                      gzfsligh@pub.foshan.gd.cn


II. Contact information

                                                           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


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)



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Internet website designated by CSRC for disclosing
                                                        http://www.cninfo.com.cn
this Report

                                                        Company Secretary Office, FSL Office Building, No. 64, Fenjiang North
Where this Report is placed
                                                        Road, Chancheng District, Foshan City, Guangdong Province, P.R.China


IV. Changes in the registered information

Organizational code                          91440000190352575W

Changes in main business since listing (if
                                             No changes
any)

                                             On 9 Sept. 2015, OSRAM Germany, the controlling shareholder of the Company’s
                                             biggest shareholder—Hong Kong Wah Shing Holding Company Limited (formerly
                                             known as “Osram Holding Co., Ltd.”; hereinafter referred to as “Hong Kong Wah
                                             Shing”), signed The Equity Transfer Agreement with Guangdong Electronics
                                             Information Industry Group Ltd. (“Electronics Group”). According to the Agreement,
                                             OSRAM Germany transferred the 100% equity interests of Hong Kong Wah Shing to
                                             Electronics Group on 4 Dec. 2015. After the equity transfer, Electronics Group became
                                             the sole shareholder of Hong Kong Wah Shing and the indirect biggest shareholder of
                                             the Company, indirectly holding 171,360,391 A-shares in the Company; and OSRAM
Changes of controlling shareholder (if any) Germany no longer held shares in the Company directly or indirectly. Meanwhile,
                                             Electronics Group and its acting-in-concert parties Shenzhen Rising Investment
                                             Development Co., Ltd. (“Shenzhen Rising Investment”) and Hong Kong Rising
                                             Investment Development Limited (“Hong Kong Rising Investment”) bought in another
                                             99,894,475 A-shares and another 23,165,684 B-shares of the Company from the
                                             secondary market. The said three companies combined hold 294,420,550 A-shares and
                                             B-shares in the Company, accounting for 23.144% of the total shares of the Company.
                                             Therefore, Electronics Group and its acting-in-concert parties Shenzhen Rising
                                             Investment and Hong Kong Rising Investment are the controlling shareholder of the
                                             Company.


V. Other information

The CPAs firm hired by the Company
Name                               GP Certified Public Accountants LLP

                                   10/F, Guangdong Holdings Tower, 555 DongFeng Road East, Guangzhou, Guangdong
Office address
                                   Province, P.R.China

Signing accountants                Wang Shaohua & Hong Wenwei

Sponsor engaged by the Company to conduct sustained supervision during the reporting period
□ Applicable √ Inapplicable


Financial consultant engaged by the Company to conduct sustained supervision during the reporting period


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□ Applicable √ Inapplicable

VI. Accounting and financial highlights

Does the Company adjust retrospectively or restate the accounting data of previous years due to changes in the
accounting policy or correction of accounting errors?

□ Yes √ No
                                                                                        Increase/decrease of
                                                2015                    2014            current year over last         2013
                                                                                                year

Operating revenues (RMB Yuan)                2,876,659,100.63        3,068,641,200.17                   -6.26%      2,526,679,810.53

Net    profits        attributable   to
shareholders     of     the   Company           53,405,593.12          266,125,048.97                  -79.93%        251,831,356.38
(RMB Yuan)
Net    profits    attributable to
shareholders of the Company after
                                               150,093,497.33          306,310,907.76                  -51.00%        247,092,182.53
extraordinary gains and losses
(RMB Yuan)
Net cash flows from operating
                                               188,325,189.43          305,638,745.34                  -38.38%        204,756,881.88
activities (RMB Yuan)

Basic EPS (RMB Yuan/share)                             0.0420                  0.2092                  -79.92%                0.1980

Diluted EPS (RMB Yuan/share)                           0.0420                  0.2092                  -79.92%                0.1980

Weighted average ROE (%)                               1.27%                   9.08%                    -7.81%                8.69%

                                                                                        Increase/decrease of
                                          As at 31 Dec. 2015      As at 31 Dec. 2014    current year-end than    As at 31 Dec. 2013
                                                                                            last year-end

Total assets (RMB Yuan)                      6,048,296,432.78        3,736,704,336.40                  61.86%       3,373,781,552.85

Net    assets         attributable   to
shareholders     of     the   Company        5,023,546,888.12        3,044,585,720.58                  65.00%       2,890,581,921.74
(RMB Yuan)


VII. Differences of the accounting data under the domestic and the overseas accounting
standards

1. Differences of the net profits and the net assets disclosed in the financial reports prepared under the
international and the Chinese accounting standards

□ Applicable √ Inapplicable

No such differences for the reporting period




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2. Differences of the net profits and the net assets disclosed in the financial reports prepared under the
overseas and the Chinese accounting standards

□ Applicable √ Inapplicable

No such differences for the reporting period

VIII. Financial highlights by quarter

                                                                                                                 Unit: RMB Yuan

                                                 Q1                     Q2                    Q3                   Q4

Operating revenues                          767,330,509.62            757,032,276.87        708,115,195.93       644,181,118.21

Net      profit     attributable   to
                                                99,482,670.12             776,089.19        -26,823,845.62       -20,029,320.57
shareholders of the Company
Net     profit    attributable to
shareholders of the Company after               81,758,984.51          10,053,025.94         37,030,978.71        21,250,508.17
extraordinary gains and losses
Net cash flows from operating
                                                67,138,040.36          32,136,307.34         47,899,905.70        41,150,936.03
activities

Any material difference between the financial indicators above or their summations and those which have been
disclosed in quarterly or semi-annual reports?
□ Yes √ No

IX. Extraordinary gains and losses
√ Applicable □ Inapplicable
                                                                                                                 Unit: RMB Yuan

                      Item                             2015                  2014             2013                Note

Gains/losses on disposal of non-current
assets (including offset part of asset                -8,172,702.85       -1,287,703.94       9,418,476.76
impairment provisions)

Government grants recognized in current
period, except for those acquired in ordinary
course of business or granted at certain              4,780,007.27           2,174,021.86     1,031,790.96
quotas       or    amounts     according   to
government’s unified standards

Capital occupation charges on non-financial
enterprises that are recorded into current                                                    1,981,349.56
gains and losses

Gains due to that investment costs for the
Company to obtain subsidiaries, associates
                                                                               -17,112.47
and joint ventures are lower than enjoyable
fair value of identifiable net assets of


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investees when making investments

Gains and losses on change in fair value
from tradable financial assets and tradable
financial liabilities, as well as investment
income from disposal of tradable financial
                                                   19,472,654.77       2,962,781.37        -109,530.85
assets and tradable financial liabilities and
financial assets available for sales except for
effective hedging related with normal
businesses of the Company

                                                                                                         Compensations for the
Non-operating income and expense other                                                                   false securities
                                                  -130,293,226.71    -51,945,691.06      -7,368,961.02
than above                                                                                               statement case
                                                                                                         recognized

Other gain and loss items that meet
                                                      944,428.72       1,499,406.22
definition of extraordinary gain/loss

Less: Income tax effects                           -16,925,475.37     -6,958,646.77        901,071.70

        Minority interests effects (after tax)        344,540.78         530,207.54        -687,120.14

Total                                              -96,687,904.21    -40,185,858.79       4,739,173.85              --

Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Extraordinary Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Inapplicable
No such cases in the reporting period




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                                 Section III Business Highlights

I. Main business during the reporting period


1. Main business and products

We have been engaged in production, R&D and sale of lighting products since our listing. Our products mainly

include conventional lighting products and LED lighting products. We have a wide variety of products with a

complete range of specifications, including fluorescent lamps, halogen lamps, energy saving lamps, motor vehicle

lamps, conventional lamps, LED light source, LED lamps, etc. With the most specifications in the lighting

industry, our products are widely used for indoor and outdoor lighting, landscape lighting, motor vehicle lighting

and so on. Upon years of development, we have won quite many honors such as the title of “The King of Lamps

in China”, and our “FSL” and “Fenjiang” brands have been certified as “Famous China Brands”.

2. Main business model

(1) Procurement model

We mainly procure raw materials such as lamp beads, lamp holders, electronic components, aluminum substrate,

plastic parts, metal materials, quartz tubes and fuel by way of bids invitation. A bids invitation supervisory

committee consisting of personnel from several departments will be set up in the future. For every kind of our

main raw materials, we usually have a few suppliers to choose from in procurement so that the procurement prices

would be fair, the supply of raw materials in time and the good quality of the raw materials ensured.

(2) Production models

① Production of the conventional products

Concerning the conventional products, we analyze sales of every month and predict future market demand so as to

formulate a production plan for the coming month. And our workshops produce according to the plan to avoid

extra stock and at the same time ensure that there is enough for sale.

② Production according to orders

Different from the conventional lighting products which are of little variation in specifications, LED lighting

products are at a fast pace of renewal and different customers often have different requirements regarding the

products’ appearances and performance indexes. Therefore, we have to organize individualized production for

some orders for LED lighting products, export orders in particular. For this kind of orders, we formulate our

production plans based on them and then make procurement plans according to the production plans, which will

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help effectively control the stock and the procurement prices of raw materials, reduce capital occupation and

improve our operating efficiency to the maximum.

③ Combination of independent production and outsourcing

With a high production capacity, we produce most of our products and parts on our own. Only a small portion of

parts and low-tech products is outsourced to sub-manufacturers, who will produce in strict accordance with our

requirements. We will also tag along their production processes and examine carefully the quality of the products

finished. In this way, our supply of products is guaranteed.

(3) Sales model

We mainly adopt a commercial agent model, selling our products to commercial agents through various channels

and setting up business divisions under the sales department to follow up the use of our products by customers and

provide relevant support. In terms of channels, besides consolidating wholesale, we will also focus on the

development of franchised stores, illumination engineering & commercial lighting, e-commerce and retail sales to

expand the space for our survival.

3. Development stage and periodicity of the lighting industry as well as our position in the market

The recent years have witnessed the rapid rise of the LED lighting technology. Due to the sharp drop in their cost

and their remarkable performance in energy saving & emission reduction, LED lighting products have been

generally accepted by consumers, resulting in a higher and higher penetration rate as well as a fast-shrinking

market for conventional lighting products. However, after years of fast development and renewal, growth in LED

lighting has slowed down. Particularly the LED downstream with a low requirement for market access is suffering

from an obvious problem of structural overcapacity, leading to the disordered, cutthroat competition on the market.

Under the double hits by a macro economic downturn and fierce competition, large enterprises will expand

through mergers and acquisitions for stronger competitiveness, while some small and medium ones can only face

the fate of being washed out of the market due to lack of competitiveness, which is bringing the entire industry

into an integration phase. As a necessity for daily life, lighting products are mainly under the influence of the

macro economy and the real estate sector but are little affected by seasons and regions.

Generally speaking, China’s lighting industry is insufficiently centralized with no overwhelmingly superior

enterprises despite an enlarging market share of competitive brands. Upon years of development, we have become

a leading lighting enterprise with strong competitiveness in brand, production scale, channel, R&D, etc.




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II. Significant changes in the main assets

1. Significant changes in the main assets


               Main asset                                           Reason for significant changes


                                      Impairment provisions were made for the idle equipment such as T5 and T8 at the
Fixed assets
                                      differences between their book value and the lower recoverable amounts.

                                      Subsidiary Suzhou Mont Lighting Co., Ltd. suffered continuous loss due to its business
Intangible assets                     scale and market reasons. It was unable to proceed with its production or operation.
                                      Therefore, full-amount impairment provisions were made for its patent rights.

                                      Impairment provisions were made for the hard glass kilns in District 3 at the differences
Construction in progress              between their book value and the lower recoverable amounts. And the said impairment
                                      provisions were lost as the relevant assets were scrapped.

                                      Our stake in Hefei Guoxuan High-tech Power Energy Co., Ltd. was shifted to restrictedly
Available-for-sale financial assets   tradable shares in Guoxuan High-tech Co., Ltd. And the changes in the available-for-sale
                                      financial assets were mainly due to the fluctuations in its stock price.


2. Main assets overseas

□ Applicable √ Inapplicable

III. Core competitiveness analysis

The core competitiveness of the Company mainly reflects on fours aspects listed below:
Channel advantage
The Company has been sticking to the marketing strategy of deeply focusing and refining channels. Through years
of development and experience accumulation, the Company currently has four major sales channels, which contains
the circulation and wholesales channel, the exclusive shop channel, the E-business retail channel, and the
engineering commercial lighting channel, forming a marketing network covering the whole country. Replying on
strong and perfect sales channels, products of the Company can rapidly enter the market, which has significantly
improved the Company’s market development capability and competitiveness.
Brand advantage
The Company keeps focusing on the positioning, core value, and features of FSL brand, and continually improved
the brand recognition and reputation of FSL brand by product design, end sales, advertisement, special lighting
exhibition, and so on. At present, FSL and Fen Jiang among the three brands of the Company are both famous
trademarks in China. The FSL brand has become one of the most influential and popular brands in China, and the
powerful brand influence has become the main driver for continuous sales growth of the Company.
Technology advantage

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The Company has always been attaching importance to R&D of new products and technologies, increasing the input
on independent innovation on technologies and products, and perfecting the improvement process for R&D and
technique of all products. The Company absorbs and trains technical talents, set up innovative incentive mechanism
and performance mechanism, and fully provides with supports in fund, talents, and mechanisms.
Scale advantage
As one of the enterprises to first step into the industry of producing and selling lighting products, the Company
possesses the manufacture culture of refining production and the large-scale manufacturing capability by years of
experience accumulation. The Company has production bases in Foshan, Nanjing and Xinxiang. The large-scale
and centralized production brings obvious economic benefits to the Company, which not only shows in manufacture
cost of products, but also shows in aspects such as raw material procurement and product pricing.




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              Section IV Discussion & Analysis by the Management

I. Business review


(I) Summary

In 2015, the global economy was in further adjustment after the international financial crisis, with limited motivity

for growth. Concerning foreign economies, despite a slow recovery in the US economy, other main economies

showed unevenness in their economic performances and the constant threat of geopolitical risks made recovery

harder to achieve. China’s economy also faced problems such as the lack of momentum in investment, the

emerging downturn in some industries and the operating difficulties of enterprises due to multiple factors

including the structural transformation in economy, the low demand and overcapacity. For the lighting industry in

2015, conventional lighting products continued to see a rapid drop in market demand, while LED lighting slowed

down in development after years of fast growth and renewal due to growing homogeneous and price competition.

In face of the overall slowdown in growth of the industry as well as the complex and changeable environments at

home and abroad, we continued to follow the guideline of “Adjust Our Structure, Stabilize Our Growth, Pay

Attention to Management and Improve Our Business Results”, focused on our main business, improved our

product quality and proactively dealt with the adverse impact of the market environment by further adjustment to

our product structure, optimization of our marketing system, cost control, etc. For the reporting period, the

Company achieved operating revenues of RMB 2876.6591 million, down 6.26% from the year earlier. To be

specific, conventional lighting products generated sales revenue of RMB 1460.2941 million, representing a YoY

decrease of 31.84%, while LED products created sales revenue of RMB 1416.3650 million, up 52.92% from last

year; the domestic sales revenue stood at RMB 1923.3836 million, a 12.13% decrease from last year, while the

overseas sales revenue stood at RMB 953.2755 million, up 8.37% from the year earlier. Due to the compensations

to some investors and the large-amount impairment provisions, the total profits stood at RMB 45.9930 million,

down 85.59% year on year; and the net profits attributable to the shareholders of the listed Company stood at

RMB 53.4056 million, representing a YoY drop of 79.93%.

(II) Work accomplished in 2015

1. Continued to optimize our product structure for transformation and upgrade

In 2015, the conventional lighting market continued to shrink while the LED lighting market still grew fast.



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According to market changes, we adjusted our product structure in a timely manner by increasing the input to

LED products in links such as R&D, production and sale. In addition to our existing light source and office

lighting products, we also launched new series of LED products in our weak sectors of commercial lighting and

home decoration. In the reporting period, our LED products generated sales revenue of RMB 1.416 billion, a YoY

growth of 52.92%, marking the successful shift of our main products from conventional lighting products to LED

lighting products and securing us an important position in the LED lighting sector.

2. Enhanced channel building for further development

In terms of the domestic market, we continued to improve our existing marketing channels by enhancing

conference marketing and promotional activities, and expand our channel network by extending the coverage of

our stores and improving their effectiveness. We also improved our exclusive stores to exhibit our products at the

retail end and transform our brands from “industry-brands” to “mass-market brands”. A lighting engineering &

commercial lighting business division was newly set up and launched a high-end brand of “MingJiangHui”

(Lighting Experts All Here for You). Meanwhile, we expanded our retail and e-commerce channels. We had

stores in over 1,000 shopping places in China, continued to enhance our cooperation with major e-commerce

platforms and expanded our online dealers, which effectively increased the exposure of our brands among

consumers. As for the overseas market, we visited our major customers one by one to learn about their particular

needs and formulate our marketing strategies with clear targets. We tried to unlock the potential of our major

customers and enhanced promotion of our LED products to them so as to offset the impact of the export decrease

of our conventional lighting products. A FSL branding team was established to strengthen our exploration in

emerging markets such as Middle East, Southeast Asia, Asia and South Africa, try harder for access into brand

new markets, attract deals in the emerging markets and introduce our FSL brand to the world step by step. In the

reporting period, our export sales grew steadily, with a heavier weight of our own brands in our total export sales.

3. Controlled costs to increase our efficiency

In face of the rising operating costs, we took proactive measures to reduce our production costs. Holding the

thinking of “technology for efficiency”, we conducted innovation in product technology, production technique

and materials. By upgrading equipment consuming too much energy, we were able to reduce our energy cost. We

also enhanced our procurement management, integrated our procurement resources and adopted a quota

mechanism on material distribution to avoid waste in all links. In the meantime, strict budget control was carried

out to cut down out-of-plan expense.




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II. Main business analysis

1. Overview

See “I. Business review” in “Discussion & Analysis by the Management”.

2. Revenues and costs

(1) Breakdown of the operating revenues

                                                                                                                    Unit: RMB Yuan

                                            2015                                         2014

                                                     In operating                               In operating           +/-
                                Amount                                       Amount
                                                         revenues                                revenues

Operating revenues         2,876,659,100.63                         100%   3,068,641,200.17                 100%              -6.26%

By segment

Lighting fixtures and
                           2,876,659,100.63                   100.00%      3,068,641,200.17            100.00%                -6.26%
lamps

By product

LED lighting
                           1,416,365,037.13                      49.24%      926,189,514.82               30.18%             52.92%
products

Conventional
                           1,460,294,063.50                      50.76%    2,142,451,685.35               69.82%             -31.84%
lighting products

By area

Domestic                   1,923,383,563.07                      66.86%    2,189,007,920.46               71.33%             -12.13%

Overseas                        953,275,537.56                   33.14%      879,633,279.71               28.67%              8.37%


(2) Segments, products or areas contributing over 10% of the operating revenues or profits

□ Applicable √ Inapplicable

(3) Product sales revenue higher than the service revenue

√ Yes □ No
 Business segment                 Item                    Unit                 2015                2014                +/-

                        Sales volume             Piece                         837,767,920        1,046,376,108              -19.94%
Lighting fixtures and
                        Output                   Piece                         827,174,901          993,887,262              -16.77%
lamps
                        Stock                    Piece                         124,170,082          134,763,101               -7.86%

Reasons for over 30% YoY movement of the data above:
□ Applicable √ Inapplicable

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(4) Execution progress of major signed sales contracts in the reporting period

□ Applicable √ Inapplicable

(5) Breakdown of the operating costs

By segment and product
                                                                                                                     Unit: RMB Yuan

                                                     2015                                  2014
    Segment                  Item                                                                                        +/-
                                           Amount         In operating costs     Amount         In operating costs

Lighting fixtures
                                       2,185,558,581.31            100.00% 2,247,054,674.63              100.00%               -2.74%
and lamps

Lighting fixtures
                       Raw materials   1,416,799,337.80             64.83% 1,438,316,556.44               64.01%               -1.50%
and lamps

Lighting fixtures
                       Labor cost       427,667,401.28              19.57%     413,229,338.55             18.39%               3.49%
and lamps

Lighting fixtures
                       Depreciation      46,002,760.43               2.10%      58,899,983.77              2.62%           -21.90%
and lamps

                                                                                                                     Unit: RMB Yuan

                                                     2015                                  2014
      Product                Item                                                                                        +/-
                                          Amount          In operating costs     Amount         In operating costs

LED         lighting
                                       1,120,625,868.89             51.27%     702,500,445.37             31.26%           59.52%
products

LED         lighting
                       Raw materials    713,381,463.13              32.64%     453,013,173.60             20.16%           57.47%
products

LED         lighting
                       Labor cost       246,143,230.85              11.26%     130,150,997.18              5.79%           89.12%
products

LED         lighting
                       Depreciation      18,638,249.45               0.85%      18,551,179.47              0.83%               0.47%
products

Conventional
                                       1,064,932,712.42             48.73% 1,544,554,229.26               68.74%           -31.05%
lighting products

Conventional
                       Raw materials    703,417,874.67              32.18%     985,303,382.84             43.85%           -28.61%
lighting products

Conventional
                       Labor cost       181,524,170.43               8.31%     283,078,341.37             12.60%           -35.87%
lighting products

Conventional
                       Depreciation      27,364,510.98               1.25%      40,348,804.30              1.80%           -32.18%
lighting products




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(6) Changes in the consolidation scope for the reporting period

□ Yes √ No

(7) Major changes in the business, products or services in the reporting period

□ Applicable √ Inapplicable

(8) Main customers and suppliers

Main customers
Total sales to top 5 customers (RMB Yuan)                                                                          294,950,255.58

Ratio of total sales to top 5 customers to annual total sales (%)                                                          10.25%



Information about the top 5 customers
Serial No.               Name of customer                           Sales (RMB Yuan)         Proportion in annual total sales (%)

1            ** COMPANY                                                      74,279,343.33                                    2.58%

2            ***** PRODUCTS INC.                                             72,724,178.41                                    2.53%

3            **** ELECTRIC COMPANY                                           66,025,878.97                                    2.30%

4            GUANGZHOU ** TRADE CO., LTD.                                    42,422,604.94                                    1.47%

             GUANGZHOU ** LIGHTING ELECTRIC
5                                                                            39,498,249.93                                    1.37%
             CO., LTD.

Total                             --                                        294,950,255.58                                  10.25%


Other information about the main customers
√ Applicable □ Inapplicable

None of the top 5 customers are related parties of the Company.


Main suppliers
Total purchases from top 5 suppliers (RMB Yuan)                                                                   273,554,640.24

Ratio of total purchases from top 5 suppliers to annual
                                                                                                                           16.41%
total purchases(%)



Information about the top 5 suppliers
 Serial No.                Name of supplier                Purchase amount (RMB Yuan) Proportion in annual total purchases (%)

1              Foshan ** Opto-Electronics Co., Ltd.                          76,444,384.33                                    4.59%

               Shenzhen ** Energy-Saving Lighting Co.,
2                                                                            71,188,813.56                                    4.27%
               Ltd.




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                                                           The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


3            Shenzhen *** Electronics Co., Ltd.                            53,256,383.60                                       3.20%

4            Zhongshan Guzhen ** Lighting Co., Ltd.                        42,142,590.80                                       2.53%

5            Foshan ** Lighting Electric Co., Ltd.                         30,522,467.95                                       1.83%

Total                              --                                     273,554,640.24                                       16.41%


Other information about the main suppliers
√ Applicable □ Inapplicable
Among the top 5 suppliers, the 1st supplier is a related party of the Company while the other 4 are not.

3. Expense

                                                                                                                       Unit: RMB Yuan

                                    2015                  2014                  +/-                       Significant change

Selling expenses                   203,112,498.50       207,880,504.54                -2.29%

Administrative expenses            241,585,514.09       236,233,239.29                2.27%

                                                                                               Increase in exchange gains and term
Financial expenses                 -28,871,124.02         -9,565,959.04           -201.81%
                                                                                               deposit interest


4. R&D input

√ Applicable □ Inapplicable

LED products are renewed fast in technology and appearance. If we cannot keep developing new technology,
production procedures and products as well as updating them, it may have an adverse impact on our market
competitiveness. In order to adapt to market changes and increase the market competitiveness of our products, we
proactively develop high-efficient lighting products featuring energy saving and environmental protection,
increase the R&D input to our LED products, continuously develop new products, and increase the technological
contents of our products through continuously improving our technology and production procedures so as to
provide a firm guarantee for our sustained development. In the reporting period, we spent RMB 92,891,920.00
yuan    in R&D, accounting for 3.23% of our current operating revenues.

Particulars about the R&D input
                                               2015                             2014                                +/-%

Number of R&D personnel                                       231                                234                           -1.28%
R&D personnel         in   total
                                                            2.88%                              2.62%                           0.28%
employees
R&D input (RMB Yuan)                                 92,891,920.00                    98,810,000.00                            -5.99%
R&D input in operating
                                                            3.23%                              3.22%                           0.01%
revenues
Capitalized R&D input (RMB
                                                              0.00                               0.00                          0.00%
Yuan)



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Capitalized R&D input in total
                                                              0.00%                        0.00%                            0.00%
R&D input
Reasons for any marked YoY change of the proportion of the R&D input in the operating revenues
□ Applicable √ Inapplicable
Reasons for any sharp variation of the capitalization rate on the R&D input and rationale
□ Applicable √ Inapplicable


Number of patents for the recent 2 years

√ Applicable □ Inapplicable
                                                                                                         Cumulatively obtained at
                                                        Applied for                Obtained
                                                                                                               period-end

Invention patent                                                       12                            1                           5

Utility model patent                                                   33                           47                         106

Design patent                                                          28                           34                         210
Changes in core technical personnel in
                                       No major changes
reporting period
“Hi-tech Enterprise” certified by Ministry
                                               Yes
of Science and Technology


5. Cash flows

                                                                                                                   Unit: RMB Yuan

                Item                            2015                            2014                             +/-

Subtotal of cash inflows from
                                                 2,904,539,258.69                2,975,103,040.68                           -2.37%
operating activities

Subtotal of cash outflows from
                                                 2,716,214,069.26                2,669,464,295.34                           1.75%
operating activities

Net cash flows from operating
                                                     188,325,189.43               305,638,745.34                         -38.38%
activities

Subtotal of cash inflows from
                                                      30,861,512.16                46,553,241.51                         -33.71%
investing activities

Subtotal of cash outflows from
                                                      68,596,503.73                98,620,391.12                         -30.44%
investing activities

Net cash flows from investing
                                                      -37,734,991.57               -52,067,149.61                        -27.53%
activities

Subtotal of cash outflows from
                                                     215,284,023.90               160,694,772.73                            33.97%
financing activities

Net cash flows from financing
                                                     -215,284,023.90              -160,694,772.73                        -33.97%
activities

Net increase in cash and cash                         -56,155,127.23               92,025,411.38                        -161.02%


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equivalents

Main influence factors for any significant YoY changes in the items above

√ Applicable □ Inapplicable

1. The net cash flows from operating activities decreased 38.38% from last year mainly because the

compensations for false stock statements were paid as required by the judgment of the court.

2. The net cash flows from financing activities decreased 33.97% from last year mainly because more dividends

were distributed.

3. The net increase in cash and cash equivalents decreased 161.02% from last year mainly because the

compensations for false stock statements were paid as required by the judgment of the court and more dividends

were distributed.


Reasons for any big difference between the net operating cash flows and the net profits in the reporting period

√ Applicable □ Inapplicable

For the reporting period, the net operating cash flows stood at RMB 188,325,189.43 yuan while the net profits

stood at RMB 37,684,725.39 yuan, representing a 399.74% difference of RMB 150,640,464.04 yuan, mainly

because the compensations for false stock statements were paid.


III. Non-core business analysis

√ Applicable □ Inapplicable
                                                                                                                Unit: RMB Yuan

                          Amount                In total profits (%)          Source/reason                Continuity

                                                                       Sale of tradable shares in
Investment gains                19,523,757.86                42.45% some investees & receipt of No
                                                                       bonuses from investees

                                                                       Price fluctuations of stocks
Gain/loss on fair
                                   35,935.00                  0.08% held      for    purpose      of No
value changes
                                                                       short-term investment

Asset impairment                89,473,893.19               194.54% Asset impairment provisions No

Non-business                                                           Government         subsidies
                                 7,627,967.24                16.59%                                   No
revenue                                                                received

                                                                       Non-business expenses on
Non-business
                            141,313,889.53                  307.25% fines     from    false     stock No
expense
                                                                       statements recognized




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                                                                 The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


IV. Asset and liability analysis

1. Significant changes in the asset composition

                                                                                                                                     Unit: RMB Yuan

                           As at 31 Dec. 2015                 As at 31 Dec. 2014           Proportio
                                        In total assets                     In total assets n change         Reason for significant change
                         Amount                             Amount
                                             (%)                                 (%)         (%)

                                                                                                        Compensations        for      false   stock
Monetary funds         935,241,205.20         15.46% 989,718,395.60               26.49%      -11.03% statements paid in current period as
                                                                                                        required by court judgment

Accounts                                                                                                Customer payments uncollected in
                       366,401,130.72           6.06% 322,951,674.45               8.64%       -2.58%
receivable                                                                                              current period

                                                                                                        Inventory falling price provisions made
Inventories            559,651,928.21           9.25% 625,794,972.48              16.75%       -7.50% in current period according to prudence
                                                                                                        principle

Investing       real
                                                0.00%                              0.00%       0.00%
estate

Long-term                                                                                               Loss recognized in current period on
equity                    382,637.52            0.01%      3,689,724.39            0.10%       -0.09% joint stock company according to
investment                                                                                              equity measurement method

Fixed assets           484,436,218.17           8.01% 463,267,701.29              12.40%       -4.39%

                                                                                                        Impairment provisions were made for
                                                                                                        the hard glass kilns in District 3 at the
                                                                                                        differences between their book value
Construction in
                        32,488,518.68           0.54% 90,862,098.21                2.43%       -1.89% and the lower recoverable amounts.
progress
                                                                                                        And the said impairment provisions
                                                                                                        were lost as the relevant assets were
                                                                                                        scrapped.


2. Assets and liabilities measured at fair value

√ Applicable □ Inapplicable
                                                                                                                                     Unit: RMB Yuan

                                        Gain/loss on      Cumulative fair
                                                                              Impairment         Purchased
                        Opening           fair value      value changes                                             Sold amount in       Closing
         Item                                                                 provisions in      amount in
                         amount          changes in        recorded into                                            current period       amount
                                                                             current period    current period
                                        current period        equity

Financial assets

1.     Financial
                          20,320.00          35,935.00                                                  7,005.00         39,361.35        51,600.00
assets measured


                                                                                                                                                   22
                                                          The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


at fair value of
which changes
are     recorded
into      current
gains/losses
(excluding
derivative
financial assets)

3.
Available-for-sa                                    2,603,516,654.                                                 2,787,166,40
                     114,908,227.84                                                 160,000,000.00 23,438,995.18
le       financial                                             14                                                          1.96
assets

Subtotal       of                                   2,603,516,654.                                                 2,787,218,00
                     114,928,547.84    35,935.00                                    160,007,005.00 23,478,356.53
financial assets                                               14                                                          1.96

                                                    2,603,516,654.                                                 2,787,218,00
Total of above       114,928,547.84    35,935.00                                    160,007,005.00 23,478,356.53
                                                               14                                                          1.96

Financial
                               0.00          0.00            0.00                            0.00           0.00           0.00
liabilities

Significant changes in the measurement attributes of the main assets in the reporting period
□ Yes √ No

V. Investment analysis

1. Total investments

√ Applicable □ Inapplicable
     Investments in reporting period (RMB
                                              Investments in last year (RMB Yuan)                      +/-%
                      Yuan)

                                      0.00                                    0.00                                     0.00%


2. Significant equity investments made in the reporting period

□ Applicable √ Inapplicable

3. Significant non-equity investments ongoing in the reporting period

□ Applicable √ Inapplicable

4. Financial investments

(1) Securities investments

√ Applicable □ Inapplicable
                                                                                                               Unit: RMB Yuan

                                                                                                                               23
                                                              The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                                                     Gain/los Cumulat
Variety                                Account       s on fair ive fair
          Code of Name of Initial                                       Purchas         Gain/los
   of                                    ing Opening value      value           Sold in          Closing Account Source
                                                                          ed in           s in
          securitie securitie investm measure book changes changes              current           book
securitie                                                               current         current
                                        ment   value    in     recorde          period            value ing title of funds
             s         s      ent cost model                             period          period
   s                                                  current d into
                                                      period equity
                                                                                                                       Availabl
Domesti             China                 Fair                                                                         e-for-sal
                                30,828,            114,908,            54,988,             23,438, 20,512, 78,638,                 Own
c/overse 601818 Everbrig                  value                                                                        e
                                816.00              227.84             489.14              995.18   962.80    236.96               funds
as stock            ht Bank               method                                                                       financia
                                                                                                                       l asset

                                                                                                                       Availabl
Domesti                                                                                                                e-for-sal
                    Xiamen 292,574 Cost            292,574                                                   292,574               Own
c/overse /                                                                                                             e
                    Bank        ,133.00 method      ,133.00                                                  ,133.00               funds
as stock                                                                                                               financia
                                                                                                                       l asset

                    Foshan
                    branch
                                                                                                                       Availabl
                    of
Domesti                                                                                                                e-for-sal
                    Guangd 500,000 Cost            500,000                                                   500,000               Own
c/overse /                                                                                                             e
                    ong             .00 method          .00                                                      .00               funds
as stock                                                                                                               financia
                    Develop
                                                                                                                       l asset
                    ment
                    Bank

                                                                                                                       Availabl
                    Guoxua
Domesti                                   Fair                         2,548,5                               2,708,5 e-for-sal
                    n          160,000                                           160,000                                           Own
c/overse 002074                           value                        28,165.                               28,165. e
                    High-tec ,000.00                                             ,000.00                                           funds
as stock                                  method                           00                                     00 financia
                    h
                                                                                                                       l asset

                                                                                                                       Held-for
Domesti             Guosen                Fair
                               11,660.0             20,320. -8,660.0                       39,361. 28,101.             -trading Own
c/overse 002736 Securitie                 value                                     0.00
                                      0                 00         0                           35      35              financia funds
as stock            s                     method
                                                                                                                       l asset

                                                                                                                       Held-for
Domesti                                   Fair
                                4,530.0                                          4,530.0 16,488. 11,958.6              -trading Own
c/overse 300413 Happigo                   value
                                      0                                               0        67       7              financia funds
as stock                                  method
                                                                                                                       l asset

                                                                                                                       Held-for
Domesti                                   Fair
                                10,150.                                          10,150. 33,276. 23,126.               -trading Own
c/overse 300418 Kunlun                    value
                                    00                                               00        61      61              financia funds
as stock                                  method
                                                                                                                       l asset

Domesti             Spring      18,160. Fair                                     18,160. 68,707. 50,547.               Held-for Own
           601021
c/overse            Airlines        00 value                                         00        20      20              -trading funds



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                                                  The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


as stock                                 method                                                   financia
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                  Fair
                  Shaonen 1,005,1                                 1,005,1 2,184,3 1,195,8         -trading Own
c/overse 000601                          value
                  g Group       99.54                               99.54   64.31    94.77        financia funds
as stock                                 method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                  Fair
                               4,565.0                            4,565.0 11,172.0 6,607.0        -trading Own
c/overse 300421 JGBR                     value
                                    0                                  0        0        0        financia funds
as stock                                 method
                                                                                                  l asset

                  Dongxin                                                                         Held-for
Domesti                                  Fair
                  g            18,360.                            18,360. 58,934.1 40,894.1       -trading Own
c/overse 601198                          value
                  Securitie        00                                 00        1        1        financia funds
as stock                                 method
                  s                                                                               l asset

                                                                                                  Held-for
Domesti                                  Fair
                              11,950.0                           11,950.0 25,655. 13,705.         -trading Own
c/overse 603118 Gongjin                  value
                                    0                                  0       10       10        financia funds
as stock                                 method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                  Fair
                  Hangzh 11,650.0                                11,650.0 25,934. 14,284.         -trading Own
c/overse 603618                          value
                  ou Cable          0                                  0       40       40        financia funds
as stock                                 method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Yifeng                 Fair
                               19,470.                            19,470. 41,924. 22,454.         -trading Own
c/overse 603939 Pharmac                  value
                                   00                                 00       32       32        financia funds
as stock          y                      method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Wuyang                 Fair
                               4,135.0                            4,135.0 13,211.8 9,076.8        -trading Own
c/overse 300420 Technol                  value
                                    0                                  0        8        8        financia funds
as stock          ogy                    method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Lens                   Fair
                              11,495.0                           11,495.0 43,764. 32,269.         -trading Own
c/overse 300433 Technol                  value
                                    0                                  0       32       32        financia funds
as stock          ogy                    method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Fulin                  Fair
                               6,985.0                            6,985.0 38,678. 31,843.         -trading Own
c/overse 300432 Precisio                 value
                                    0                                  0       06       06        financia funds
as stock          n                      method
                                                                                                  l asset

Domesti                                  Fair                                                     Held-for
                  Tuopu       11,370.0                           11,370.0 26,682. 15,497.                    Own
c/overse 601689                          value                                                    -trading
                  Group             0                                  0       59       59                   funds
as stock                                 method                                                   financia



                                                                                                                     25
                                                 The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                                                                                                  l asset

                                                                                                  Held-for
Domesti           Orient                Fair
                              50,150.                            50,150. 103,238 53,088.          -trading Own
c/overse 600958 Securitie               value
                                  00                                 00      .25       25         financia funds
as stock          s                     method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Shengxi               Fair
                              2,870.0                            2,870.0 18,685. 15,815.          -trading Own
c/overse 002752 ng                      value
                                   0                                  0       17       17         financia funds
as stock          Group                 method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                 Fair
                  ELLAS       19,160.                            19,160. 54,691. 35,781.          -trading Own
c/overse 603808                         value
                  SAY             00                                 00       82       82         financia funds
as stock                                method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                 Fair
                              10,940.                            10,940. 41,096. 30,476.          -trading Own
c/overse 600959 JSCN                    value
                                  00                                 00       18       18         financia funds
as stock                                method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                 Fair
                  Great       7,435.0                            7,435.0 66,383. 58,948.          -trading Own
c/overse 300438                         value
                  Power            0                                  0       62       62         financia funds
as stock                                method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                 Fair
                              3,440.0                            3,440.0 26,787. 23,347.          -trading Own
c/overse 300455 Ctrowell                value
                                   0                                  0       86       86         financia funds
as stock                                method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                 Fair
                              7,005.0            44,595.         7,005.0           44,595. 51,600. -trading Own
c/overse 300456 Navior                  value                               0.00
                                   0                 00               0                00      00 financia funds
as stock                                method
                                                                                                  l asset

                                                                                                  Held-for
Domesti                                 Fair
                  Xuefeng 4,980.0                                4,980.0 32,517. 27,537.          -trading Own
c/overse 603227                         value
                  Sci-Tech         0                                  0       85       85         financia funds
as stock                                method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Yingjia               Fair
                             11,800.0                           11,800.0 30,822. 19,422.          -trading Own
c/overse 603198 Distiller               value
                                   0                                  0       13       13         financia funds
as stock          y                     method
                                                                                                  l asset

                                                                                                  Held-for
Domesti           Hangzh                Fair
                              7,420.0                            7,420.0 34,610. 27,190.          -trading Own
c/overse 300478 ou                      value
                                   0                                  0       25       25         financia funds
as stock          Gaoxin                method
                                                                                                  l asset



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                                                The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                                                                                                Held-for
Domesti                                Fair
                             61,020.                            61,020. 171,825 110,805.        -trading Own
c/overse 601985 CNNP                   value
                                 00                                 00      .85       85        financia funds
as stock                               method
                                                                                                l asset

                                                                                                Held-for
Domesti                                Fair
                  Guotai    118,260.                           118,260. 144,115. 26,455.        -trading Own
c/overse 601211                        value
                  Junan          00                                 00       91       91        financia funds
as stock                               method
                                                                                                l asset

                                                                                                Held-for
Domesti                                Fair
                  Wondfo     8,000.0                            8,000.0 68,328. 60,478.         -trading Own
c/overse 300482                        value
                  Biotech          0                                 0       75       75        financia funds
as stock                               method
                                                                                                l asset

                                                                                                Held-for
                                       Fair
                            135,814                            135,814 135,824 10,640.          -trading Own
Other      205001 1 Day                value
                             ,000.00                            ,000.00 ,640.94       94        financia funds
                                       method
                                                                                                l asset

                                                                                                Held-for
                                       Fair
                             69,226,                            69,226, 69,277, 51,559.         -trading Own
Other      205007 7 Days               value
                             000.00                             000.00   559.18       18        financia funds
                                       method
                                                                                                l asset

                                                                                                Held-for
                                       Fair
                             52,264,                            52,264, 52,322, 58,157.         -trading Own
Other      205008 14 Days              value
                             000.00                             000.00   157.96       96        financia funds
                                       method
                                                                                                l asset

                                                                                                Held-for
                             2,628,1 Fair                       2,628,1 2,628,3
                                                                                  262,025       -trading Own
Bond       204001 GC001      26,281. value                      26,281. 88,306.
                                                                                      .93       financia funds
                                 00 method                          00       93
                                                                                                l asset

                                                                                                Held-for
                                       Fair
                            219,704                            219,704 219,727 22,974.          -trading Own
Bond       204002 GC002                value
                             ,394.00                            ,394.00 ,368.10       10        financia funds
                                       method
                                                                                                l asset

                                                                                                Held-for
                                       Fair
                            149,304                            149,304 149,350 45,613.          -trading Own
Bond       204003 GC003                value
                             ,479.00                            ,479.00 ,092.40       40        financia funds
                                       method
                                                                                                l asset

                                                                                                Held-for
                                       Fair
                            627,225                            627,225 627,420 195,254          -trading Own
Bond       204004 GC004                value
                             ,088.00                            ,088.00 ,342.69       .69       financia funds
                                       method
                                                                                                l asset

Bond       204007 GC007     649,732 Fair                       649,732 649,954 221,794          Held-for Own


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                               ,485.00 value                                  ,485.00 ,279.96       .96             -trading funds
                                         method                                                                     financia
                                                                                                                    l asset

                                                                                                                    Held-for
                                         Fair
                               81,408,                                        81,408, 81,484, 76,407.               -trading Own
Bond       204014 GC014                  value
                               140.00                                         140.00   547.56       56              financia funds
                                         method
                                                                                                                    l asset

                               5,098,1                               2,603,5 4,774,2 4,640,6              3,080,2
                                                  408,002 35,935.                               23,487,
Total                          69,975.      --                       16,654. 55,366. 09,549.              92,134.      --       --
                                                  ,680.84       00                              595.54
                                   54                                    14       54      46                  96

Disclosure date of board
announcement on approval 2014-01-23
of securities investment

Disclosure date of general
meeting announcement on
approval     of   securities
investment (if any)

Note: The funds for the “pledged repo” and “reverse repo of government bonds” (“other” and “bond” in the table

above) were strictly controlled within the line approved by the board, without use out of line. In order to better use

the funds, we carried out repeated investment in the mature investment products above in multiple transactions. As

such, the single investment costs for the “other” and “bond” were their accumulative amounts which were

repeatedly invested with 2015.

 (2) Investment in financial derivatives

□ Applicable √ Inapplicable
No such cases in the reporting period

5. Utilization of raised funds

□ Applicable √ Inapplicable
No such cases in the reporting period

VI. Sale of major assets and equity interests

1. Sale of major assets

□ Applicable √ Inapplicable
No such cases in the reporting period




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2. Sale of major equity interests

□ Applicable √ Inapplicable

VII. Main controlled and joint stock companies

√ Applicable □ Inapplicable

Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profits
                                                                                                                                   Unit: RMB Yuan

                      Relationship      Main
  Company                                              Registered                                     Operating        Operating
                        with the       business                       Total assets   Net assets                                      Net profits
       name                                             capital                                       revenues          profits
                       Company

Foshan
Chansheng
                                                   1,000,000.00 34,691,313.0 18,852,631.5 161,438,362.
Electronic           Subsidiary      Manufacture                                                                      7,501,971.11 5,551,076.84
                                                                                 2                0           47
Ballast       Co.,
Ltd.

Foshan
Chanchang
Electric                                           72,782,944.0 108,752,054. 99,970,615.0 47,168,759.7
                     Subsidiary      Manufacture                                                                      3,543,277.76 2,443,678.04
Appliances                                         0                            54                6               3
(Gaoming)
Co., Ltd.

Foshan
Taimei Times                                                          59,261,275.5 31,971,425.4 128,813,369.
                     Subsidiary      Manufacture 500,000.00                                                           7,910,754.35 5,903,925.36
Lamps         Co.,                                                               4                7           96
Ltd.

FSL         New
Light Source                                       50,000,000.0 55,711,171.4 53,630,335.6 10,576,508.8
                     Subsidiary      Manufacture                                                                      1,602,158.84 1,198,961.43
Technology                                         0                             9                9               0
Co., Ltd.

FSL
(Xinxiang)                                         35,418,439.7 55,399,253.5 40,550,849.2 35,107,726.2
                     Subsidiary      Manufacture                                                                      4,274,339.03 2,712,514.18
Lighting Co.,                                      6                             0                7               0
Ltd.

Guangdong
Fozhao
                                                   200,000,000. 219,879,005. 219,806,804.
Financing            Subsidiary      Finance                                                                          5,875,233.25 4,406,409.93
                                                   00                           30            62
Lease         Co.,
Ltd.

FSL Lighting Subsidiary              manufacture 15,000,000.0 59,551,710.4 37,142,020.8 162,630,898. 12,744,861.9 9,466,893.91


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Equipment                                 0                        7              2           94            3
Co., Ltd.



Nanjing
Fozhao
Lighting                                  41,683,200.0 68,025,762.4 62,607,789.0 65,802,294.6 -6,531,442.2 -4,743,195.6
               Subsidiary   Manufacture
Components                                0                        0              5            1            0            7
Manufacturin
g Co., Ltd.

Suzhou Mont
                                          23,634,900.0                  -18,671,153. 26,198,849.9 -26,010,314. -28,830,585.
Lighting Co., Subsidiary    Manufacture                  9,155,813.46
                                          0                                      66            8           02           17
Ltd.


Subsidiaries obtained or disposed in the reporting period
□ Applicable √ Inapplicable



Particulars about the main controlled and joint stock companies
—Foshan Chansheng Electronic Ballast Co., Ltd. was invested and established by the Company and Mr. Ma
Henglai 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 consolidated
financial statements since the date of foundation.
On 24 Dec. 2013, the Company and Mr. Ma Henglai signed the equity transfer agreement. The Company
purchased 25% equity of Foshan Chansheng Electronic Ballast Co., Ltd. held by Mr. Ma Henglai. After the
purchasing, 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 and
established by the Company and Prosperity Lamps and Components Ltd, had obtained license for business
corporation on 23 Aug. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming
District, Foshan with document “MWJMY Zi [2005] No. 79”. The Company holds 70% equities of the said
company; therefore the said subsidiary was included into the scope of the consolidated financial statements since
the date of foundation.
—Foshan Taimei Times Lamps Co., Ltd., which is a Sino-foreign joint venture invested and established by the
Company and Reback North America Investment Limited, had obtained license for Business Corporation on 5
Dec. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District, Foshan
with document “MWJMY Zi [2005] No. 97”. The Company holds 70% equities of the said company; therefore
the said subsidiary was included into the scope of the consolidated financial statements since the date of
foundation.
—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 is
invested and established by the Company together with Foshan Haozhiyuan Trading Co., Ltd., Shanghai Liangqi
Electric 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 for
Business Corporation on 27 Mar. 2009. The Company holds 60% equities of this company. Therefore the said


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subsidiary 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 the
minority shareholders, in which the minority shareholders respectively transferred their equities of Foshan
Lighting Lamps and Lanterns Co., Ltd. to the Company. After transfer, the Company holds 100% equities of
Foshan Lighting Lamps and Lanterns Co., Ltd.
—FSL (Xinxiang) Lighting Co., Ltd. is a limited liability company which is invested and established by the
Company, obtaining its license for Business Corporation on 17 Apr. 2009. The Company holds 100% equities of
the said company, therefore the said subsidiary was included into the scope of the consolidated financial
statements since date of foundation. On 27 Aug. 2013, the 3rd Session of the 7th Board of Directors reviewed and
approved to invest another RMB 2 million (land in an industrial park in Xinxiang, Henan Province and monetary
funds) in FSL (Xinxiang) Lighting, increasing the registered capital of FSL (Xinxiang) Lighting to RMB
35,418,439.76.
—Guangdong Fozhao Financing Lease Co., Ltd. is a limited liability company invested and established by the
Company, which had obtained its license for Business Corporation on 31 May 2011. And the Company holds
100% equities of this company. Therefore the said subsidiary was included into the scope of the consolidated
financial statements since the date of foundation.
—FSL Lighting Equipment Co., Ltd. is a limited liability company invested and established by the Company with
the 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 scope
of the consolidated financial statements since the date of foundation.
—In accordance with the equity transfer agreement signed between the Company and Prosperity Lamps and
Components Ltd. on 27 Aug. 2008, Prosperity Lamps and Components Ltd. transferred 100% equities of Nanjing
Fozhao Lighting Components Manufacturing Co., Ltd. (formerly known as “Prosperity (Nanjing) Lighting
Components 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 the
consolidated financial statements since the merger date.
—In accordance with the equity transfer agreement signed between the Company and Mr. Zhang Yingchun on 25
Apr. 2014, Mr. Zhang Yingchun transferred 34.09296% equities of Suzhou Mont Lighting Co., Ltd. to the
Company. 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 the
capital reserves. As such, the registered capital of Suzhou Mont Lighting Co., Ltd. went up to RMB 23.6349
million and the Company held 50.50% equities in it. The said subsidiary was included into the scope of the
consolidated financial statements since the completion date of the investment increase.

VIII. Structured bodies controlled by the Company

□ Applicable √ Inapplicable

IX. Outlook of the Company’s future development


(I) Development trends in the industry

In 2016, in view of macro-economic situation, in China, the economic downturn still exists, which shows in

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aspects of weak growth of investment, the relaxed real estate industry policies but still accompanying with slow

recovery, especially reflecting in the depressed real estate market in the 3rd and 4th tier cities, and insufficient

growth power for domestic demand; and in the overseas, the growth of economic entities differentiates, currency

rate fluctuates, political situation is turbulent, and the export business is also not cheerful.

As for illuminating industry, the market demand for traditional illuminants keeps decline, the LED lighting will

gradually take place of traditional illuminants and lamps in market. At the same time, the urbanization in China

keeps speeding up, creating expansive market space, and as a result it’s estimated that LED lighting will still keep

fast growth in the next 3-5 years. However, due to the support from local markets, the LED lighting companies

have gone through a savage development period. As for LED industry, especially for the downstream application

fields, due to low entrance permit level. there’s structural over-capacity problem, which is obvious and causes

unordered and cutthroat competitions. Together with the pressure from micro-economy downturn, large

companies face dual attacks, and will make expansion through acquisition and reorganization, so as to strengthen

market competitiveness. As for medium and small size companies, they’ll exit the market due to lack of

competitiveness. The whole industry will step into the integration period, and the “shuffle” power will be

increasing, and a pattern of co-existing demand growth and intense competitions will show in LED lighting

industry in future.

(II) Development strategy in future

The Company will stick to professional development path, center on the main industry of lighting products, be

oriented to market demand, take technology innovation as the motive, manage brand as the core, and improve

efficiency, establish domestic and overseas market net with effective coverage rate, thoroughly improve the

operation quality and sustainable development capability of the Company by making competitive products, so as

to devote its efforts to become the top brand in lighting companies in China.

(III) Operation plan in 2016

1. To improve R&D innovation and strengthen company competitiveness

The Company will continue to increase R&D input, be oriented to market demand, research and develop new

products, and improve the product competitiveness in market; intensify the standardization and systematization of

R&D to raise efficiency, closely follow technology trend in LED industry, and enhance R&D of core technologies

and key products; pay attention to diversified R&D for products, and increase profit growth factors for the

Company by offering more series of new products for different market, channels, and fields; make technology

innovation on current products of the Company from the aspects of structure and technique, organically combine


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the optimization of product design, the manufacturability, and the optimization of cost, so as to improve the cost

performance and competitiveness of the Company’s current leading products.

2. To improve marketing, and expand development space

As for domestic sales, the Company will launch positive and rational marketing strategies, consolidate the

advantage of the current circulating wholesales channels, sustainably bring priority to the construction of

exclusive shop channel, the engineering commercial lighting channel, the E-commerce and retail channel, as well

as other new channels, improve channel efficiency, continue to carry forward channel construction in the 3rd and

4th tier cities, enlarge sales space, improve the quality of network and clients, reinforce the adjustment on agencies

in substandard cities and provinces, and aim at synchronous growth in quantity and quality of channels. As for

overseas sales, the Company will continue to do well in management and service for key clients, develop the

potential value of key clients, and improve the performance of single client; continue to develop key clients, and

expand client groups and market share of the Company; enhance overseas sales power, and innovate on overseas

sales pattern, sustainably expand mature markets, improve the ratio in emerging markets, accelerate the layout on

blank market, continue to optimize product sales structure, strengthen the self-own brand expansion in the market,

and improve the popularity and reputation of FSL in overseas.

3. To improve production automation, and promote industry upgrade

The Company will strengthen the efforts, input more, and attempt to improve production automation by means of

self transformation and upgrade, joint transformation with external companies, import and purchase, and so on.

Further more, the Company will improve the consistency between production efficiency and manufacturing

process, gradually reduce its dependence on manual work, so as to effectively relieve the pressure from “difficult

recruitment and rare employment” and the gradually increasing labor cost, and at the same time, improve

company image.

4. To enhance management and improve efficiency

The Company will optimize management system, improve the capability of existence and growth inside the

Company. The Company will reinforce purchase management, optimize purchase pattern, and cut down purchase

cost; intensify stock management, guarantee product sales demand, and decrease the inventory backlog’s

influence on profit caused by product upgrade and update; strengthen management and control on production

process, make good plans of production planning and capacity, strictly execute quality management system, cut

down quality risk, and further improve production efficiency; perfect and implement budget management system,

strictly control on costs, and improve the efficiency and profit of capital usage.


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5. To enhance construction of company culture, and optimize human resources management

The Company will comprehensively enhance construction of company culture, improve the sense of identity and

participation of employees, and improve the cohesion and centripetal force of the Company; establish human

resources planning matching with the Company’s development plan, perfect the mechanism of talents training and

introduction, attract, cohere, train, and build up talents, perfect talents incentive mechanism, found a staff group

with fighting capacity, so as to provide the Company’s sustainable development with human resources guarantee.

(IV) Possible risks

1. Risks from marketing competitions

The descending growth of domestic economy, the slow recovery of real estate market, the differentiation of

overseas economy growth, as well as the complexity and variety of political environment bring about the

uncertainty of market demand; meanwhile, after the gradual improvement of market penetration of LED lighting

products in recent several years, the growth for alternative market has started to slow down. At present, there’s

obvious problem of structural over capacity for LED industry, leading to fierce market competitions. In future, if

the macro economy further deteriorates, and the market competitions keep fierce, the product price of the

Company may be cut down, and the difficulty of improving market share will be increasing.

2. Risks of higher operating cost

The scale production pattern of the Company causes large demand for upstream raw materials. At present, the

Company has founded stable partnership with main suppliers to ensure the supply of raw materials for the

Company’s production. However, due to the scale purchase pattern, the Company will face huge pressure from

production cost if raw material price rises in future. With the Company’s steps to enlarge market, expenses

covering sales, management, and so on will accordingly increase. With the uprising labor cost, the intensifying

labor turnover, the salary of employees will keep going up. All the increase of the aforesaid operating costs will

result to the decrease of product gross margin and operating profits.

3. Risk of loss from falling inventory price

The Company’s inventory contains raw materials, semi-finished products, finished products, low priced and easily

worn articles, and so on. As there’re plenty of product categories, standards, and models in the Company, the

inventory value is high. If there’re changes in price or demand in raw material market and product sales market,

the risk of loss from falling inventory price of the Company may happen.




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X. Visits paid to the Company for purposes of research, communication, interview, etc.

1. In the reporting period

□ Applicable √ Inapplicable
No such cases in the reporting period

2. From the end of the reporting period to the disclosure date of this Report

√ Applicable □ Inapplicable
             Date                     Way of visit                Type of visitor        Index to main inquiry information

                                                                                      Investor             Relations-EasyIR-
2016-01-28                    Field research               Institution
                                                                                      www.cninfo.com.cn

Times of visit                                                                                                               1

Number of visiting institutions                                                                                              4

Number of visiting individuals                                                                                               0

Number of other visiting entities                                                                                            0

Significant undisclosed information disclosed,
                                                     No
revealed or leaked




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                                                             The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.




                                         Section V Significant Events

I. Profit distribution to the common shareholders & increase of the share capital from the
capital reserve

Formulation, execution or adjustments of the profit distribution policy for the common shareholders, especially
the cash dividend policy, in the reporting period

√ Applicable □ Inapplicable
According to the CSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of Listed
Companies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Notice on Further Implementing
Regulations Related to Dividend Distribution of Listed Companies (Guang-Dong-Zheng-Jian [2012] No. 91), in
order to further standardize the dividend mechanism, promote a scientific, sustained and stable dividend
mechanism and protect legal rights and interests of investors, in 2012, the Company convened a general meeting
to revise the dividend-related contents in its Articles of Association and specify the dividend conditions, the
lowest dividend ratio, the decision-making procedure, etc.. Meanwhile, it formulated the Management Rules for
Profit Distribution and the Return for Shareholder Plan for the Coming Three Years (2015-2017), specifying the
arrangements and forms of dividends, the cash dividend planning and the distribution intervals, which further
improved the decision-making and supervision procedures for dividend distribution. According to the Company’s
Articles of Association, the profit distributed in cash shall not be less than 30% of the distributable profit achieved
in the year.


The Company’s preliminary plan for profit distribution and turning capital reserve into share capital for the
reporting period was in compliance with relevant rules such as the Company’s Articles of Association.
                                             Special statement about cash dividend policy

In compliance with the Company’s Articles of Association and
                                                                          Yes
resolution of general meeting

Specific and clear dividend standard and ratio                            Yes

Complete decision-making procedure and mechanism                          Yes

Independent directors fulfilled their responsibilities and played their
                                                                          Yes
due role.

Minority shareholders have the chance to fully express their
opinion and desire and their legal rights and interests were fully Yes
protected.

In adjustment or alteration of the cash dividend policy, the
conditions and procedure were in compliance with regulations and Yes
transparent.

Profit distribution plans (or preliminary plans) for the common shareholders and plans (or preliminary plans) for
turning capital reserve into share capital for the recent three years (including the reporting period)


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                                                         The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.



For 2013, based on the total 978,563,745 shares of the Company as at 31 Dec. 2013, a cash dividend of RMB1.6

(tax included and dividends for B-share holders paid in the Hong Kong dollars) was distributed to the A-share and

B-share holders for every 10 shares they held, with the total distributed cash dividends reaching

RMB156,570,199.20.

For 2014, based on the total 978,563,745 shares of the Company as at 31 Dec. 2014, a cash dividend of RMB2.20

(tax included and dividends for B-share holders paid in the Hong Kong dollars) was distributed to the A-share and

B-share holders for every 10 shares they held, with the total distributed cash dividends reaching RMB

215,284,023.90; and 3 shares were increased, with capital reserve, to all the shareholders for every 10 shares they

held, with the increased shares totaling 293,569,123 shares.

For 2015, based on the total 1,272,132,868 shares of the Company as at 31 Dec. 2015, a cash dividend of RMB

0.125 yuan (tax included and dividends for B-share holders to be paid in the Hong Kong dollars) will be

distributed to the A-share and B-share holders for every 10 shares they hold, with the total distributed cash

dividends reaching RMB 15,901,660.85 yuan.


Cash dividends distributed to the common shareholders in the recent three years (including the reporting period)
                                                                                                                Unit: RMB Yuan

                                                Net profits       Proportion in net
                                              attributable to     profits attributable
                       Cash dividend (tax   shareholders of the   to shareholders of                           Ratio of cash
                                                                                         Cash dividend in
       Year                                                                                                  dividend in other
                           included)           Company in          the Company in          other forms
                                                                                                                  forms
                                               consolidated          consolidated
                                                statements         statements (%)

2015                        15,901,660.85         53,405,593.12                29.78%                 0.00               0.00%

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%

The Company made profits in the reporting period and the profits distributable to the common shareholders of the
Company was positive, but it did not put forward a preliminary plan for cash dividend distribution:
□ Applicable √ Inapplicable

II. Preliminary plan for profit distribution and turning capital reserve into share capital for
the reporting period

√ Applicable □ Inapplicable
Bonus shares for every 10 shares (share)                                                                                     0

Dividend for every 10 shares (RMB Yuan) (tax
                                                                                                                         0.125
included)


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                                                            The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


Increased shares for every 10 shares (share)                                                                                           0

Total shares as basis for preliminary distribution                                                                        1,272,132,868
plan (share)

Total cash dividends (RMB Yuan) (tax included)                                                                            15,901,660.85

Distributable profits (RMB Yuan)                                                                                          515,436,926.40

Percentage of cash dividends in total distributed                                                                                 100.00%
profits (%)

                  Details about preliminary plan for profit distribution and turning capital reserve into share capital

As audited by GP Certified Public Accountants LLP, the after-tax net profits of RMB 22,706,662.62 yuan of the Company without

subsidiaries for 2015, plus the opening retained profits of RMB 710,284,953.94 yuan, minus the distributed profits of RMB

215,284,023.90 yuan for 2014 (a cash dividend of RMB2.20 for every 10 shares) and the statutory surplus reserve of RMB

2,270,666.26 yuan for 2015, equals the closing profits distributable to shareholders of RMB 515,436,926.40 yuan. The Board of

Directors has proposed to allocate profits for 2015 as follows: Based on the total 1,272,132,868 shares of the Company as at 31

Dec. 2015, a cash dividend of RMB 0.125 yuan (tax included and dividends for B-share holders to be paid in the Hong Kong

dollars) will be distributed to the A-share and B-share holders for every 10 shares they hold, with the total cash dividends to be

distributed reaching RMB 15,901,660.85 yuan. The retained profits of RMB 499,535,265.55 yuan will be carried forward into the

next year. The profit allocation preplan can be effective upon review and approval of the Shareholders’ General Meeting of the

Company.


III. Fulfillment of commitments

1. Commitments of the Company, its shareholders, actual controller, acquirer, directors, supervisors,
senior management staff or other related parties fulfilled in the reporting period or ongoing at the
period-end

√ Applicable □ Inapplicable
                                                                                                   Date of
                              Commitment         Type of                                                        Period of
      Commitment                                                           Contents                making                    Fulfillment
                                  maker        commitment                                                     commitment
                                                                                                 commitment

                                                                 Electronics Group and its
                                                                 acting-in-concert     parties
                                                                 Shenzhen Rising Investment
Commitments      made    in                                      and   Hong Kong Rising
                              Controlling   About        share                                                               In
acquisition    reports   or                                      Investment have made a 2015-12-04            12 months
                              shareholder   lock-up                                                                          execution
reports on equity changes                                        commitment that within 12
                                                                 months from the completion
                                                                 of their acquisitions, they
                                                                 shall not transfer or entrust



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                            The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                                 others to manage the shares
                                 directly or indirectly held by
                                 them in the Company, nor
                                 shall     they         allow         the
                                 Company          to        repurchase
                                 those shares, except for the
                                 case where those shares may
                                 be      transferred           for    no
                                 compensation due to any
                                 business or asset integration
                                 with their actual controller
                                 or their actual controller’s
                                 controlled subsidiaries.

                                 Electronics Group and its
                                 acting-in-concert               parties
                                 Shenzhen Rising Investment
                                 and     Hong Kong Rising
                                 Investment have made a
                                 commitment              that         the
                                 business          of           Foshan
                                 NationStar Optoelectronics
              About              Co.,     Ltd.         that      is    in
Controlling   avoidance     of competition              with          the                            In
                                                                            2015-12-04   24 months
shareholder   horizontal         business of the Company                                             execution
              competition        takes up only a small part in
                                 NationStar’s total business,
                                 they shall gradually reduce
                                 or eliminate the horizontal
                                 competition           as       planned
                                 through business integration
                                 or       other          ways          or
                                 arrangements           within        the
                                 coming 24 months.

                                 Electronics Group and its
                                 acting-in-concert               parties
                                 Shenzhen Rising Investment
                                 and     Hong Kong Rising
              About
                                 Investment have made more
Controlling   avoidance     of                                                           Long-standi In
                                 commitments as follows to 2015-12-04
shareholder   horizontal                                                                 ng          execution
                                 avoid                        horizontal
              competition
                                 competition            with          the
                                 Company: 1. They shall
                                 conduct      supervision             and
                                 restraint on the production

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The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


  and operation activities of
  themselves                 and         their
  relevant enterprises so that
  besides the enterprise above
  that         is      in      horizontal
  competition                with         the
  Company for now, if the
  products or business of them
  or their relevant enterprises
  become the same with or
  similar to those of the
  Company or its subsidiaries
  in the future, they shall take
  the following measures: (1)
  If     the        Company          thinks
  necessary, they and their
  relevant          enterprises          shall
  reduce and wholly transfer
  their relevant assets and
  business; and (2) If the
  Company thinks necessary,
  it is given the priority to
  acquire           first,    by     proper
  means, the relevant assets
  and business of them and
  their relevant enterprises. 2.
  All the commitments made
  by them to eliminate or
  avoid                        horizontal
  competition                with         the
  Company                    are         also
  applicable to their directly
  or      indirectly           controlled
  subsidiaries.              They         are
  obliged to urge and make
  sure that other subsidiaries
  execute what’s prescribed in
  the relevant document and
  faithfully          honor        all    the
  relevant commitments. 3. If
  they or their directly or
  indirectly                   controlled
  subsidiaries               break        the
  aforesaid commitments and


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                             The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                               thus cause a loss for the
                               Company,           they             shall
                               compensate the Company
                               on a rational basis.

                               Electronics Group and its
                               acting-in-concert                 parties
                               Shenzhen Rising Investment
                               and     Hong Kong Rising
                               Investment have made a
                               commitment         that           during
                               their    direct        or        indirect
                               holding of the Company’s
                               shares, they shall 1. strictly
                               abide    by     the         regulatory
                               documents of the CSRC and
                               the SZSE, the Company’s
                               Articles of Association, etc.
                               and not harm the interests of
                               the     Company             or     other
                               shareholders                of       the
                               Company                in           their
                               production and operation
              About reduction activities         by              taking
Controlling   and   regulation advantage of their position                              Long-standi In
                                                                           2015-12-04
shareholder   of related-party as       the            controlling                      ng          execution
              transactions     shareholder        and            actual
                               controller; 2. make sure that
                               they or their other controlled
                               subsidiaries, branch offices,
                               jointly-run       or        associated
                               companies (the “Relevant
                               Enterprises” for short) will
                               try their best to avoid or
                               reduce                 related-party
                               transactions           with          the
                               Company or the Company’s
                               subsidiaries;          3.        strictly
                               follow the market principle
                               of justness, fairness and
                               equal value exchange for
                               necessary and unavoidable
                               related-party          transactions
                               between them and their
                               Relevant Enterprises and the


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                             The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                               Company,          and     withdraw
                               from      voting         when       a
                               related-party           transaction
                               with them or their Relevant
                               Enterprises is being voted
                               on at a general meeting or a
                               board meeting, and execute
                               the       relevant           approval
                               procedure and information
                               disclosure duties pursuant to
                               the       applicable            laws,
                               regulations and regulatory
                               documents.         Where          the
                               aforesaid commitments are
                               broken and a loss is thus
                               caused for the Company, its
                               subsidiaries            or        the
                               Company’s                      other
                               shareholders, they shall be
                               obliged to compensate.

                               In order to ensure the
                               independence             of       the
                               Company           in      business,
                               personnel,                      asset,
                               organization and finance,
                               Electronics Group and its
                               acting-in-concert             parties
                               Shenzhen Rising Investment
                               and    Hong Kong Rising
                               Investment have made the
                               following commitments: 1.
Controlling   About            They       will        ensure     the                 Long-standi In
                                                                        2015-12-04
shareholder   independence     independence             of       the                 ng          execution
                               Company in business: (1)
                               They      promise        that     the
                               Company will have the
                               assets,                  personnel,
                               qualifications                    and
                               capabilities for it to operate
                               independently as well as the
                               ability     of         independent,
                               sustainable operation in the
                               market. (2) They promise
                               not to intervene in the


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The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


  Company’s                    business
  activities other than the
  execution of their rights as
  the                     Company’s
  shareholders.           (3)         They
  promise that they and their
  related parties will not be
  engaged in business that is
  substantially in competition
  with       the          Company’s
  business. And (4) They
  promise that they and their
  related parties will try their
  best to reduce related-party
  transactions between them
  and      the     Company;            for
  necessary and unavoidable
  related-party          transactions,
  they promise to operate
  fairly          following            the
  market-oriented              principle
  and at fair prices, and
  execute         the      transaction
  procedure and the duty of
  information              disclosure
  pursuant to the applicable
  laws,          regulations           and
  regulatory        documents.          2.
  They      will         ensure        the
  independence              of         the
  Company in personnel: (1)
  They      promise            that    the
  Company’s            GM,       deputy
  GMs,       CFO,              Company
  Secretary and other senior
  management personnel will
  work only for and receive
  remuneration            from         the
  Company, not holding any
  positions in them or their
  other controlled subsidiaries
  other     than        director       and
  supervisor.            (2)          They
  promise         the     Company’s


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The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


  absolute independence from
  their related parties in labor,
  human resource and salary
  management. And (3) They
  promise to follow the legal
  procedure                in        their
  recommendation                        of
  directors, supervisors and
  senior                   management
  personnel to the Company
  and not to hire or dismiss
  employees             beyond         the
  Company’s               Board        of
  Directors         and            General
  Meeting.        3.        They      will
  ensure     the        independence
  and completeness of the
  Company in asset: (1) They
  promise that the Company
  will     have        a     production
  system,           a           auxiliary
  production            system        and
  supporting facilities for its
  operation; legally have the
  ownership or use rights of
  the land, plants, machines,
  trademarks,           patents       and
  non-patented technology in
  relation to its production
  and operation; and have
  independent systems for the
  procurement                of       raw
  materials and the sale of its
  products. (2) They promise
  that the Company will have
  independent and complete
  assets      all          under       the
  Company’s            control       and
  independently owned and
  operated by the Company.
  And (3) They promise that
  they      and            their     other
  controlled subsidiaries will
  not illegally occupy the


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The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


  Company’s funds and assets
  in any way, or use the
  Company’s assets to provide
  guarantees for the debts of
  themselves or their other
  controlled subsidiaries with.
  4. They will ensure the
  independence           of       the
  Company in organization:
  (1) They promise that the
  Company       has      a     sound
  corporate            governance
  structure as a joint-stock
  company             with         an
  independent and complete
  organization structure. And
  (2) They promise that the
  operational                     and
  management organs within
  the      Company                will
  independently execute their
  functions according to laws,
  regulations          and        the
  Company’s       Articles        of
  Association. And 5. They
  will          ensure            the
  independence           of       the
  Company in finance: (1)
  They    promise         that    the
  Company       will      have     an
  independent                financial
  department      and        financial
  accounting      system         with
  normative,           independent
  financial accounting rules.
  (2) They promise that the
  Company          will          have
  independent bank accounts
  and not share bank accounts
  with its related parties. (3)
  They    promise         that    the
  Company’s                 financial
  personnel      do      not     hold
  concurrent positions in its


                                                               45
                                                             The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                                                               related parties. (4) They
                                                               promise that the Company
                                                               will independently pay its
                                                               tax according to law. And
                                                               (5) They promise that the
                                                               Company        can      make
                                                               financial            decisions
                                                               independently and that they
                                                               will not illegally intervene
                                                               in the Company’s use of its
                                                               funds.

                                                               The profits distributed by
                                                               the Company in cash every
Other commitments made                         About       cash year shall not be less than                  Long-standi In
                                The Company                                                     2009-05-27
to minority shareholders                       dividends       30% of the distributable                      ng          execution
                                                               profits it has achieved in the
                                                               year.

Executed on time                Yes

Specific    reasons      for
failing      to       fulfill
                                Inapplicable
commitments on time and
plans for next step


2. Where there had been an earnings forecast for an asset or project and the reporting period was still
within the forecast period, explain why the forecast has been reached for the reporting period.

□Applicable √ Inapplicable

IV. Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder or its related parties

□ Applicable √ Inapplicable
No such cases in the reporting period.

V. Explanations given by the Board of Directors, the Supervisory Committee and the
independent directors (if any) regarding the “non-standard auditor’s report” issued by the
CPAs firm for the reporting period

□ Applicable √ Inapplicable

VI. YoY changes in the accounting policy, estimation and methods

□ Applicable √ Inapplicable


                                                                                                                                     46
                                                          The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


No such cases in the reporting period.

VII. Retrospective restatement due to correction of material accounting errors in the
reporting period

□ Applicable √ Inapplicable
No such cases in the reporting period.

VIII. YoY changes in the consolidation scope

□ Applicable √ Inapplicable
No such cases in the reporting period.

IX. Engagement and dismissal of the CPAs firm

The CPAs firm at present
Name of domestic CPAs firm                           GP Certified Public Accountants (LLP)

Remuneration of domestic CPAs firm (RMB0’000)                                                                       121.9

Consecutive years of audit services provided by
                                                     23
domestic CPAs firm

Name of certified public accountants from domestic
                                                     Wang Shaohua & Hong Wenwei
CPAs firm


The CPAs firm changed in the current period or not

□ Yes √ No



CPAs firm, financial accountant or sponsor engaged for internal control audit

√ Applicable □ Inapplicable

In the reporting period, the Company engaged GP Certified Public Accountants (LLP) as its internal control

auditor with the total audit fees of RMB 508.80 thousand.


X. Listing suspension or termination after the disclosure of this Report

□ Applicable √ Inapplicable

XI. Bankruptcy & reorganization

□ Applicable √ Inapplicable
No such cases in the reporting period.



                                                                                                                         47
                                                   The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


XII. Significant litigations and arbitrations


In Mar. 2013, CSRC Guangdong administered an administrative punishment on the illegal information disclosure

of the Company. During the period from Sept. 2013 to Oct. 2015, a total of 2,755 plaintiffs separately sued the

Company to Guangzhou Intermediate People’s Court for false securities statements, demanding civil

compensations of RMB384.1114 million and HKD1.328 million in total from the Company for its illegal

information disclosure. From Nov. 2014 to Dec. 2015, Guangzhou Intermediate People’s Court made judgments

for the aforesaid cases, ruling the Company to compensate the       plaintiffs with a total of RMB182.7365 million

and HKD7.3582 million and bear the legal fare of RMB3.2332 million. Currently, except for the 31 plaintiffs who

are appealing, the judgments for all the other plaintiffs are final and effective. Up to 23 Mar. 2016, the Company

has made the compensations to 2712 plaintiffs (excluding 37 plaintiffs who were overruled) for RMB 189.5211

million (including legal fees) . These cases of false securities statements had an influence of RMB61.4383 million

on the total profits of the Company in 2014 and RMB131.8899 million on that in 2015.


XIII. Punishments and rectifications

□ Applicable √ Inapplicable
No such cases in the reporting period.

XIV. Credit conditions of the Company as well as its controlling shareholder and actual
controller


√ Applicable □ Inapplicable

In the reporting period, the controlling shareholder and actual controller of the Company were in a good credit

position, without unsatisfied court judgments, large-amount overdue liabilities or the like.


XV. Implementation of any equity incentive plan, employee stock ownership plan or other
incentive measures for employees

□ Applicable √ Inapplicable
No such cases in the reporting period.

XVI. Significant related-party transactions

1. Related-party transactions relevant to routine operation

√Applicable □ Inapplicable


                                                                                                                  48
                                                                           The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


                                                                                       Proporti
                                                                                                                                 Obtaina
                                                                                        on in
                                                                                                  Approv                           ble
                                                                           Transact     total
             Relation                   Contents                                                    ed      Over                 market
 Related                    Type of                 Pricing Transact         ion       amounts                        Mode of                         Disclos
             with the                      of                                                     transacti approve              price for Disclos
transactio                  transacti               principl       ion     amount        of                           settleme                          ure
             Compan                     transacti                                                 on line d line or              transacti ure date
 n party                         on                    e           price   (RMB0’ transacti                             nt                            index
                  y                        on                                                     (RMB0’    not                  on of
                                                                            000)       ons of
                                                                                                   000)                           same
                                                                                        same
                                                                                                                                   kind
                                                                                        kind

                            Purchasi
             Corpora ng
             tion that products
Prosperity
             holds          and         Purchas
Lamps &                                                                                                                                               www.c
             over 5% receivin e                 of Market                                                             Remitta              2015-04
Compone                                                        784.76       784.76      0.47%       1,200 No                      784.76              ninfo.c
             shares         g labor material price                                                                    nce                  -27
nts                                                                                                                                                   om.cn
             of       the service s
Limited
             Compan from
             y              related
                            party

             A              Purchasi
             compan ng
             y              products
Prosperity controll and                 Purchas
                                                                                                                                                      www.c
Electrical ed by a receivin e                   of Market 2,285.0          2,285.0                                    Remitta              2015-04
                                                                                        1.37%       3,000 No                                          ninfo.c
(China)      related        g labor material price             5                   5                                  nce        2285.05 -27
                                                                                                                                                      om.cn
Co., Ltd. individu service s
             al of the from
             Compan related
             y              party

             An
             acting-i
                            Purchasi
             n-conce
                            ng
             rt party
                            products
             of legal
OSRAM                       and         Purchas
             person                                                                                                                                   www.c
(China)                     receivin e          of Market                                                             Remitta              2015-04
             that                                              6.60           6.60      0.00%            20 No                    6.60                ninfo.c
Lighting                    g labor material price                                                                    nce                  -27
             hold                                                                                                                                     om.cn
Co., Ltd.                   service s
             over 5%
                            from
             shares
                            related
             of       the
                            party
             Compan
             y

Prosperity A                Purchasi Purchas Market 16.91                    16.91      0.01%         100 No          Remitta     16.91 2015-04 www.c


                                                                                                                                                               49
                                                                  The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


(Xinxiang compan ng                  e       of price                                              nce                 -27       ninfo.c
)            y            products material                                                                                      om.cn
Electro-O controll and               s
ptical       ed by a receivin
Machiner related          g labor
y        Co., individu service
Ltd.         al of the from
             Compan related
             y            party

             A            Purchasi
             compan ng
Hangzhou y                products
Times        controll and            Purchas
                                                                                                                                 www.c
Lighting ed by a receivin e                  of Market                                             Remitta             2015-04
                                                         311.01    311.01   0.19%      500 No                 311.01             ninfo.c
and          related      g labor material price                                                   nce                 -27
                                                                                                                                 om.cn
Electrical individu service s
Co., Ltd. al of the from
             Compan related
             y            party

                          Purchasi
             A
                          ng
             sharehol
                          products
Prosperity der that
                          and
Lamps & held                         Sales
                          receivin             Market                                              Remitta                       Inappli
Compone over 5%                      commiss             114.36    114.36                     No              114.36
                          g labor              price                                               nce                           cable
nts          shares                  ion
                          service
Limited      of     the
                          from
             Compan
                          related
             y
                          party

                          Purchasi
                          ng
Foshan                    products
             Under
NationSta                 and        Purchas
             same                                                                                                                www.c
r                         receivin e         of Market 7,644.4    7,644.4           9,562.1        Remitta             2015-10
             actual                                                         4.59%             No             7,644.4             ninfo.c
Optoelect                 g labor material price         4              4                5         nce                 -23
             controll                                                                                        4                   om.cn
ronics                    service s
             er
Co., Ltd.                 from
                          related
                          party

Prosperity A              Purchasi Purchas
                                                                                                                                 www.c
(Xinxiang compan ng                  e       of Market                                             Remitta             2015-04
                                                         30.53      30.53   0.02%      200 No                 30.53              ninfo.c
)            y            products equipme price                                                   nce                 -27
                                                                                                                                 om.cn
Electro-O controll and               nt


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                                                                  The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


ptical       ed by a receivin
Machiner related           g labor
y        Co., individu service
Ltd.         al of the from
             Compan related
             y             party

                           Purchasi
                           ng
Guangdo                    products
             Under
ng                         and        Purchas
             same
Fenghua                    receivin e       of Market                                             Remitta                       Inappli
             actual                                      188.94    188.94   0.11%         No                188.94
Advanced                   g labor material price                                                 nce                           cable
             controll
Holding                    service s
             er
Co., Ltd.                  from
                           related
                           party

             A
                           Purchasi
             compan
                           ng
Shanghai y with a
                           products
Linxian      related
                           and        Purchas
Mechanic individu
                           receivin e       of Market                                             Remitta                       Inappli
al       and al of the                                   12.93      12.93   0.01%         No                12.93
                           g labor material price                                                 nce                           cable
Electrical Compan
                           service s
Equipmen y in it as
                           from
t Co., Ltd. a senior
                           related
             executiv
                           party
             e

                           Selling
             Corpora
                           products
             tion that
Prosperity                 and
             holds
Lamps &                    providin                                                                                             www.c
             over 5%                  Selling   Market 3,759.5    3,759.5                         Remitta             2015-04
Compone                    g labor                                          1.31%    4,500 No               3,759.5             ninfo.c
             shares                   products price     3              3                         nce                 -27
nts                        service                                                                          3                   om.cn
             of      the
Limited                    to
             Compan
                           related
             y
                           party

Prosperity A               Selling
(Hangzho compan products
u)           y             and                                                                                                  www.c
                                      Selling   Market                                            Remitta             2015-04
Lighting controll providin                               251.97    251.97   0.09%     800 No                 251.97             ninfo.c
                                      products price                                              nce                 -27
and          ed by a g labor                                                                                                    om.cn
Electrical related         service
Co., Ltd. individu to


                                                                                                                                        51
                                                               The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


            al of the related
            Compan party
            y

            A
                        Selling
            compan
                        products
            y
                        and
Prosperity controll
                        providin                                                                                             www.c
Electrical ed by a                 Selling   Market                                            Remitta             2015-04
                        g labor                       106.62    106.62   0.04%     100 Yes                106.62             ninfo.c
(China)     related                products price                                              nce                 -27
                        service                                                                                              om.cn
Co., Ltd. individu
                        to
            al of the
                        related
            Compan
                        party
            y

            An
            acting-i
            n-conce Selling
            rt party products
            of          and
OSRAM
            corporat providin                                                                                                www.c
(China)                            Selling   Market 1,169.4    1,169.4                         Remitta             2015-04
            ion that g labor                                             0.41%    2,500 No               1,169.4             ninfo.c
Lighting                           products price     5              5                         nce                 -27
            holds       service                                                                          5                   om.cn
Co., Ltd.
            over 5% to
            shares      related
            of      the party
            Compan
            y

            An
            acting-i
            n-conce Selling
            rt party products
            of          and
Osram
            corporat providin                                                                                                www.c
Asia                               Selling   Market 2,027.4    2,027.4                         Remitta             2015-04
            ion that g labor                                             0.70%    3,500 No               2,027.4             ninfo.c
Pacific                            products price     5              5                         nce                 -27
            holds       service                                                                          5                   om.cn
Ltd.
            over 5% to
            shares      related
            of      the party
            Compan
            y

Shanghai A              Selling
                                                                                                                             www.c
Linxian     compan products Selling          Market                                            Remitta             2015-04
                                                      23.39      23.39   0.01%     100 No                 23.39              ninfo.c
Mechanic y with a and              products price                                              nce                 -27
                                                                                                                             om.cn
al      and related     providin


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                                                                  The 2015 Annual Report of Foshan Electrical and Lighting Co., Ltd.


Electrical individu g labor
Equipmen al in it service
t Co., Ltd. as        a to
             senior    related
             executiv party
             e

                       Selling
                       products
Foshan
             Under     and
NationSta
             same      providin                                                                                                   www.c
r                                 Selling     Market                                                 Remitta           2015-10
             actual    g labor                         46.06        46.06   0.02%      300 No                  46.06              ninfo.c
Optoelect                         products price                                                     nce               -23
             controll service                                                                                                     om.cn
ronics
             er        to
Co., Ltd.
                       related
                       party

                                                                                    26,382.
Total                                            --          --    18,780    --                 --      --      --           --      --
                                                                                        15

Details of large-amount sales returns         Inapplicable

                                              In Apr. . Aug. and Oct.2015, the Company predicted the total amounts of its routine
                                              transactions with related parties OSRAM (China) Lighting Co., Ltd., Osram Asia Pacific
                                              Ltd., Prosperity Lamps & Components Limited, Prosperity Electrical (China) Co., Ltd.,
Where predictions had been made for Prosperity (Hangzhou) Lighting and Electrical Co., Ltd., Hangzhou Times Lighting and
total amounts of routine related-party Electrical Co., Ltd., Prosperity (Xinxiang) Lighting Machinery Co., Ltd., Prosperity
transactions in current period by (Xinxiang) Electro-Optical Machinery Co., Ltd, Shanghai Linxian Mechanical and
category, give actual amounts in Electrical Equipment Co., Ltd., and Foshan NationStar Optoelectronics Co., Ltd
current period (if any)                       Concerning the purchases from its related parties, the actual amount in 2015 was RMB
                                              113.9553 million, accounting for 77.35% of the predicted. As for the sales to its related
                                              parties, the actual amount in 2015 was RMB 73.8447 million , accounting for 62.58% of
                                              the predicted.

Reason      for   significant    difference
between transaction prices and market Inapplicable
prices (if applicable)


2. Related-party transactions regarding the purchase or sale of assets or equity interests

□ Applicable √ Inapplicable
No such cases in the reporting period.

3. Related-party transitions regarding joint investments

□ Applicable √ Inapplicable
No such cases in the reporting period.


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4. Credits and liabilities with the related parties

□ Applicable √ Inapplicable
No such cases in the reporting period.

5. Other significant related-party transactions

□ Applicable √ Inapplicable
No such cases in the reporting period.

XVII. Significant contracts and execution

1. Entrustment, contracting and leasing

(1) Entrustment

□ Applicable √ Inapplicable
No such cases in the reporting period.

(2) Contracting

□ Applicable √ Inapplicable
No such cases in the reporting period.

(3) Leasing


√ Applicable □ Inapplicable

Particulars about leasing:
The Company and Shanghai Jiabao Industry & Commerce (Group) Co., Ltd. (hereinafter referred to as “Shanghai
Jiabao) signed , where Shanghai Jiabao agreed to license the Company to
exclusively use its trademarks “Hu Zi” (registration No.: 100940), “Lian He” (registration No.: 100950) and “Lian
He” (registration No.: 3603597) from 1 Jan. 2014 to 31 Dec. 2016; and the Company shall pay to Shanghai Jiabao
1% 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 RMB1 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 total profits of the Company in reporting period
□ Applicable √ Inapplicable
No such cases in the reporting period.

2. Significant guarantees

□Applicable √ Inapplicable

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No such cases in the reporting period.

3. Cash management entrusted to others

(1) Wealth management entrusted

□ Applicable √ Inapplicable
No such cases in the reporting period.

(2) Loans entrusted

□ Applicable √ Inapplicable
No such cases in the reporting period.

4. Other significant contracts

□ Applicable √ Inapplicable
No such cases in the reporting period.

XVIII. Other significant events

√ Applicable □ Inapplicable

1. On 9 Sept. 2015, OSRAM Germany, the controlling shareholder of the Company’s biggest shareholder—Osram

Holding Co., Ltd. (now known as “Hong Kong Wah Shing Holding Company Limited”; hereinafter referred to as

“Hong Kong Wah Shing”), signed The Equity Transfer Agreement with Guangdong Electronics Information

Industry Group Ltd. (“Electronics Group”). According to the Agreement, OSRAM Germany transferred the 100%

equity interests of Hong Kong Wah Shing to Electronics Group on 4 Dec. 2015. After the equity transfer,

Electronics Group became the sole shareholder of Hong Kong Wah Shing and indirectly held 171,360,391

A-shares in the Company through Hong Kong Wah Shing, representing a 13.47% stake in the Company.

Meanwhile, Electronics Group and its acting-in-concert parties Shenzhen Rising Investment Development Co.,

Ltd. (“Shenzhen Rising Investment”) and Hong Kong Rising Investment Development Limited (“Hong Kong

Rising Investment”) bought in by way of block trading more shares of the Company from the secondary market

during the period from Jul. to Dec. 2015. Up to 4 Dec. 2015, Electronics Group directly and indirectly held

231,718,119 A-shares in the Company, Shenzhen Rising Investment held 39,536,747 A-shares in the Company

and Hong Kong Rising Investment held 23,165,684 B-shares in the Company. The said three companies

combined held 294,420,550 A-shares and B-shares in the Company, accounting for 23.144% of the total shares of

the Company. Therefore, Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and


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Hong Kong Rising Investment are the controlling shareholder of the Company while Guangdong Rising Assets

Management Co., Ltd. is the actual controller of the Company (for details, see the Company’s Announcement No.

2015-059 disclosed on www.cninfo.com.cn dated 7 Dec. 2015).

2. In the reporting period, Hefei Guoxuan High-tech Power Energy Co., Ltd., where the Company held a stake,

successfully carried out a back door listing through Jiangsu Dongyuan Electrical Group Co., Ltd. (stock abbr.:

Dongyuan Electrical; stock code: 002074) upon the CSRC approval and the relevant asset transfer formalities

were all completed. As such, the shares held by the Company in Guoxuan High-tech were shifted to 73,006,150

shares held by the Company in Dongyuan Electrical, which were restricted tradable shares listed on 15 May 2015

and non-transferable within 12 months from the completion of the issue (for details, see Announcement No.

2015-018 disclosed on www.cninfo.com.cn dated 13 May 2015). On 29 Sept. 2015, Dongyuan Electrical changed

its name into “Guoxuan High-tech Co., Ltd.” (stock abbr.: Guoxuan High-tech; stock code: 002074).



XIX. Significant events of the subsidiaries

√ Applicable □ Inapplicable

In the reporting period, controlled subsidiary Suzhou Mont Lighting Co., Ltd. suffered continuous loss due to its

business scale and market reasons. It is shut down and unable to proceed with its production or operation.

Therefore, a full-amount impairment provision of RMB24.36 million was made for this long-term equity

investment (for details, see the Company’s Announcement No. 2016-002 on Asset Impairment Provision disclosed

on www.cninfo.com.cn dated 27 Jan. 2016).


XX. Social responsibilities

√ Applicable □ Inapplicable

We have always attached importance to the accomplishment of our social value. With “provide returns for

shareholders, provide a platform for employees, create value for customers and create prosperity for the society”

as our mission, we take on the social responsibilities to protect the interests of our creditors, employees, customers,

suppliers and community. We have been utilizing resources in a scientific, rational way, effectively protecting the

natural environment and safeguarding social safety so as to promote common, harmonious and sustainable

development of the Company and the society.

1. Protection of the rights and interests of our shareholders and creditors

We continuously improve our corporate governance structure, regulate our operation and enhance our


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management on information disclosure and investor relations. We treat all our investors fairly and justly, ensure

their rights to know about, participate in and vote on the significant events of the Company, and safeguard the

legal rights and interests of all our shareholders, especially our minority shareholders.

2. Protection of the rights and interests of our employees

Considering employees the most valuable resource for our survival and development, we constantly improve our

employment system, improve the compensation packages for our employees and attach importance to talent

cultivation so as to provide opportunities and space for the sustainable development of our employees as well as

realize the common development of the employees and the Company. We also pay attention to the health of our

employees, attach importance to production safety and labor protection, and improve the working and living

conditions for our employees so as to formulate harmonious and stable labor relations.

3. Protection of the rights and interests of our customers and consumers

We have been upholding the “Customer First” principle in our provision of quality products and services to

customers. We operate honestly and disallow any unfair trade practice against commercial ethics, market rules and

the fair competition principle. We also improve our product quality and after-sales services and try to build a

win-win relationship with our customers.

4. Protection of the rights and interests of our suppliers

We respect and protect the legal rights and interests of our suppliers, carefully protect their secret and proprietary

information, encourage and push them to continuously improve the quality of their products and services through

creating an environment for open and fair competition among them so as to realize mutual benefits and mutual

development of the suppliers and the Company.

5. Environmental protection and sustainable development

As an active response to the government’s call for building an environment-friendly and resource-saving society,

we take on our responsibility of environmental protection and strictly abide by the government’s laws and

regulations in environmental protection. In the reporting period, we enhanced the R&D, promotion and sale of

environment-friendly and high-efficient products. We have passed the ISO14001 environmental management

system certification, passed the province’s voluntary clean production examination and won the title of “Clean

Production Enterprise in Guangdong Province”.

6. Public relations and welfare

We attach importance to the realization of our social value and see creating a prosperous society as a commitment

that we should take on, trying to boost the local economy through our own development. We have been granted by



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the local government the title of “Foshan Over-100-Million Tax Payer” for many years due to our contributions in

boosting the harmonious development of the Company and the community.


Is the Company or any of its subsidiaries a heavily polluting business identified by the environmental protection
authorities of the country?

□ Yes √ No □ Inapplicable

Is a social responsibility report released?

□ Yes √ No


XXI. Corporate bonds

Corporate bonds publicly offered and listed on the stock exchange which were undue before the approval date of
this Report or were due but could not be redeemed in full

□ Yes √ No




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      Section VI Share Changes & Particulars about the Shareholders

I. Share changes

1. Particulars about share changes

                                                                                                                              Unit: share

                                       Before                        Increase/decrease (+/-)                            After

                                                                            Increase
                                             Percentag   New      Bonus       from                                            Percentag
                                 Number                                                    Other       Subtotal   Number
                                              e (%)      issues   shares     capital                                            e (%)
                                                                            reserve

                                                                                                                  12,655,86
                                 3,392,721      0.35%                      1,017,816 8,245,324 9,263,140                         0.99%
I. Restricted shares                                                                                                     1

3. Shares held by other
                                 3,392,721      0.35%                      1,017,816       129,295 1,147,111 4,539,832           0.36%
domestic investors

Among which: shares held by
                                 3,057,918      0.31%                        917,375       -15,367      902,008 3,959,926        0.31%
domestic corporations

                Shares held by
                                  334,803       0.03%                        100,441       144,662      245,103    579,906       0.05%
domestic individuals

4. Shares held by foreign
                                        0       0.00%                                  0 8,116,029 8,116,029 8,116,029           0.64%
investors

                Shares held by
                                        0       0.00%                                  0 8,116,029 8,116,029 8,116,029           0.64%
foreign individuals

                                 975,171,0                                 292,551,3 -8,245,32 284,305,9 1,259,477
                                               99.65%                                                                           99.01%
II. Non-restricted shares              24                                            07            4         83        ,007

                                 749,949,9                                 224,984,9                   224,911,6 974,861,5
1. RMB ordinary shares                         76.64%                                      -73,395                              76.63%
                                       87                                            96                      01         88

2. Domestically listed foreign 225,221,0                                   67,566,31 -8,171,92 59,394,38 284,615,4
                                               23.02%                                                                           22.37%
shares                                 37                                              1           9          2         19

                                 978,563,7                                 293,569,1                   293,569,1 1,272,132
III. Total shares                             100.00%                                                                          100.00%
                                       45                                            23                      23        ,868

Reasons for the share changes
√ Applicable □ Inapplicable

1. As resolved by the 2014 Annual General Meeting, the Company granted on 18 Jun. 2015 three additional shares

with its capital reserve to all of its shareholders for every 10 shares they held, representing an increment of

293,569,123 shares to the total shares.

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2. In the reporting period, the ownership of 15,367 restricted shares was transferred from domestic corporations to

domestic individuals.

3. In the reporting period, the directors, supervisors and senior management staff of the Company increased their

shareholdings in the Company, representing an increase of 65,520 restricted shares.

4. In the reporting period, due to the re-election of the Board of Directors and the Supervisory Committee, the

Company’s shares held by some new and outgoing directors were locked up as stipulated, resulting in an

increment of 8,179,804 restricted shares.

5. Due to Item 1、3 and 4 above, the Company’s restricted shares increased by 9,263,140 shares in the reporting

period.
Approval of the share changes
√ Applicable □ Inapplicable

On 27 May 2015, the “Preliminary Plan for Profit Distribution for 2014” was reviewed and approved at the 2014
Annual Shareholders’ General Meeting held by the Company. As the profit distribution plan for 2014, the
Company, based on the total 978,563,745 shares as at the end of 2014, distributed a cash dividend of RMB2.20
(tax included; dividends for B-share holders paid in HKD) and granted three additional shares with its capital
reserve to its shareholders of A share and B share for every 10 shares they held. The granted additional shares
were 293,569,123 shares in total.


Transfer of share ownership
□ Applicable √ Inapplicable


Effects of the share changes on the basic EPS, diluted EPS, net assets per share attributable to the common
shareholders of the Company and other financial indexes over the last year and the last reporting period

√ Applicable □ Inapplicable

In the reporting period, the Company completed granting three additional shares with its capital reserve to all its

shareholders for every 10 shares they held, and the total shares of the Company increased from 978,563,745 to

1,272,132,868. And the effects of this change in the shares on the basic EPS, diluted EPS, net assets per share

attributable to the common shareholders of the Company and other financial indexes over the last year and the last

reporting period are as follows:
                                                        2014                                       2015
Item                               Based on old share    Based on new share capital     Based on new share capital
                                        capital
Basic EPS (RMB Yuan/share)              0.2720                     0.2092                         0.0420


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Diluted     EPS          (RMB              0.2720                               0.2092                                 0.0420
Yuan/share)
Net assets per share (RMB                   3.11                                 2.39                                      3.95
Yuan/share)
Other contents that the Company considers necessary or is required by the securities regulatory authorities to
disclose
□ Applicable √ Inapplicable

2. Changes in the restricted shares


√Applicable □Inapplicable
                                                                                                                                     Unit: share

     Name of          Opening           Unlocked in            Increased in     Closing restricted       Reason for               Date of
   shareholder     restricted shares    current period        current period         shares               unlocking            unlocking

                                                                                                      Lockup           of
Zhuang Jianyi                      0                     0          8,116,029            8,116,029                          Unsure
                                                                                                      director’s shares

                                                                                                      Lockup           of
Cheng Ke                           0                     0              7,875                 7,875                         Unsure
                                                                                                      director’s shares

                                                                                                      Lockup of senior
Liu Xingming                263,460                      0             95,613             359,073 executive’s              Unsure
                                                                                                      shares

                                                                                                      Lockup of senior
Wei Bin                       11,763                     0             13,864              25,627 executive’s              Unsure
                                                                                                      shares

                                                                                                      Lockup of senior
Xie Qing                        9,150                    0             13,763              22,913 executive’s              Unsure
                                                                                                      shares

                                                                                                      Lockup of senior
Jiao Zhigang                  17,160                     0             13,923              31,083 executive’s              Unsure
                                                                                                      shares

                                                                                                      Lockup of senior
Chen Yu                         5,025                    0              7,845              12,870 executive’s              Unsure
                                                                                                      shares

                                                                                                      Lockup           of
Zhang Yong                      8,025                    0             10,695              18,720 supervisor’s             Unsure
                                                                                                      shares

                                                                                                      Lockup           of
Ye Zhenghong                  15,420                     0              6,576              21,996 supervisor’s             Unsure
                                                                                                      shares

Zhang Xuequan                   4,800                    0              3,683                 8,483 Lockup             of Unsure


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                                                                                                 supervisor’s
                                                                                                 shares

                                                                                                 Lockup              of
Pan Jie                                 0               0            55,900                55,900 outgoing                2016-06-26
                                                                                                 director’s shares

Total                        334,803                    0         8,345,766          8,680,569              --                    --


II. Issuance and listing of securities

1. Issuance of securities (not including preference shares) in the reporting period


□ Applicable √ Inapplicable
2. Changes in the total shares of the Company and the shareholder structure as well as the asset and
liability structures

√ Applicable □ Inapplicable

In the reporting period, the Company completed granting three additional shares with its capital reserve to all its

shareholders for every 10 shares they held, and the total shares of the Company increased from 978,563,745 to

1,272,132,868.

3. Existing staff-held shares


□ Applicable √ Inapplicable


III. Shareholders and actual controller

1. Total number of the shareholders and their shareholdings
                                                                                                                                  Unit: share

                                                                                                          Total number of
                                                                                                          preference
                                 Total number of                  Total number of
                                                                                                          shareholders
                                 common                           preference
Total     number                                                                                          with       resumed
                                 shareholders      at             shareholders with
of        common                                                                                          voting rights at
                        68,543 pervious                     84,969 resumed       voting               0                                   0
shareholders at                                                                                           pervious
                                 month-end        of              rights             at
period-end                                                                                                month-end         of
                                 this       Report’s             period-end (if any)
                                                                                                          this       Report’s
                                 disclosure                       (see Note 8)
                                                                                                          disclosure        (if
                                                                                                          any) (see Note 8)

                   Shareholdings of shareholders with shareholding percentage over 5% or top 10 shareholders

        Name of      Nature of     Shareholdi Total shares Increase/ Number               Number of         Pledged or frozen shares



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    shareholder           shareholder      ng        held at      decrease       of        non-restricted
                                        percentage period-end      during     restricted    shares held                        Number of
                                                                                                            Status of shares
                                           (%)                    reporting    shares                                           shares
                                                                   period       held

Hong Kong Wah
                         Foreign
Shing         Holding                     13.47% 171,360,391                                 171,360,391
                         corporation
Company Limited

Prosperity      Lamps
                         Foreign
&       Components                        10.50% 133,577,143                                 133,577,143
                         corporation
Limited

Guangdong
Electronics
                         State-owned
Information                                4.74%    60,357,728                                60,357,728
                         corporation
Industry        Group
Ltd.

Shenzhen        Rising
Investment               State-owned
                                           3.11%    39,536,747                                39,536,747
Development Co., corporation
Ltd.

Central         Huijin
                         State-owned
Asset Management                           2.42%    30,799,000                                30,799,000
                         corporation
Co., Ltd.

Essence
International            Foreign
                                           1.85%    23,575,561                                23,575,561
Securities      (Hong corporation
Kong) Co., Ltd.

Hong Kong Rising
Investment               Foreign
                                           1.82%    23,165,684                                23,165,684
Development Co., corporation
Ltd.

DBS           Vickers
                         Foreign
(Hong Kong) Ltd                            1.72%    21,935,263                                21,935,263
                         corporation
A/C Clients

                         Domestic
Wang Changhua                              1.25%    15,876,255                                15,876,255
                         individual

Beijing      He    Ju
Investment               Domestic
Management Co., non-state-ow
                                           1.10%    13,998,802                                13,998,802
Ltd.-He            Ju ned
Platform Securities corporation
Investment Fund



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Strategic     investor      or   general
corporation becoming a top ten
                                           Inapplicable
shareholder due to placing of new
shares (if any) (see Note 3)

                                           Among the top 10 shareholders of the Company, Hong Kong Wah Shing Holding Company
                                           Limited, Guangdong Electronics Information Industry Group Ltd., Shenzhen Rising Investment
Related       or    acting-in-concert Development Co., Ltd. and Hong Kong Rising Investment Development Co., Ltd. are
parties among shareholders above acting-in-concert parties. Apart from that, it is unknown whether there is among the top 10
                                           shareholders any other related parties or acting-in-concert parties as defined in the
                                           Administrative Measures for the Acquisition of Listed Companies.

                                      Shareholdings of top 10 shareholders holding non-restricted shares

                                                                                                                 Type of shares
            Name of shareholder                  Number of non-restricted shares held at period-end
                                                                                                              Type           Number

Hong Kong Wah Shing Holding                                                                           RMB       ordinary
                                                                                        171,360,391                          171,360,391
Company Limited                                                                                       share

Prosperity     Lamps     &       Components                                                           RMB       ordinary
                                                                                        133,577,143                          133,577,143
Limited                                                                                               share

Guangdong Electronics Information                                                                     RMB       ordinary
                                                                                         60,357,728                           60,357,728
Industry Group Ltd.                                                                                   share

Shenzhen           Rising         Investment                                                          RMB       ordinary
                                                                                         39,536,747                           39,536,747
Development Co., Ltd.                                                                                 share

Central Huijin Asset Management Co.,                                                                  RMB       ordinary
                                                                                         30,799,000                           30,799,000
Ltd.                                                                                                  share

                                                                                                      Domestically
Essence International Securities (Hong
                                                                                         23,575,561 listed       foreign      23,575,561
Kong) Co., Ltd.
                                                                                                      share

                                                                                                      Domestically
Hong        Kong     Rising       Investment
                                                                                         23,165,684 listed       foreign      23,165,684
Development Co., Ltd.
                                                                                                      share

                                                                                                      Domestically
DBS Vickers (Hong Kong) Ltd A/C
                                                                                         21,935,263 listed       foreign      21,935,263
Clients
                                                                                                      share

                                                                                                      RMB       ordinary
Wang Changhua                                                                            15,876,255                           15,876,255
                                                                                                      share

Beijing He Ju Investment Management
                                                                                                      RMB       ordinary
Co., Ltd.-He Ju Platform Securities                                                      13,998,802                           13,998,802
                                                                                                      share
Investment Fund

Related or acting-in-concert parties Among the top 10 non-restrictedly tradable share holders of the Company, Hong Kong Wah
among top 10 non-restrictedly tradable Shing Holding Company Limited, Guangdong Electronics Information Industry Group
share holders as well as between top Ltd., Shenzhen Rising Investment Development Co., Ltd. and Hong Kong Rising


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10    non-restrictedly   tradable    share Investment Development Co., Ltd. are acting-in-concert parties. Apart from that, it is
holders and top 10 shareholders             unknown whether there is among the top 10 shareholders any other related parties or
                                            acting-in-concert parties as defined in the Administrative Measures for the Acquisition of
                                            Listed Companies.

                                            Wang Changhua, an individual shareholder, holds 3,618,555 shares in the Company in a
Top     10     common       shareholders
                                            common securities account and 12,257,700 shares in a client account of collateral securities
conducting securities margin trading
                                            for margin trading. As such, the shares that he holds in the Company total 15,876,255
(if any) (see Note 4)
                                            shares.

Did any of the top 10 common shareholders or the top 10 non-restricted common shareholders of the Company
conduct any promissory repo during the reporting period?
□ Yea √ No
No such cases in the reporting period.

2. Particulars about the controlling shareholder


Nature of the controlling shareholder: Controlled by the local government

Type of the controlling shareholder: Corporation
                                    Legal
  Name of controlling
                            representative /      Date of establishment       Organization code                  Business scope
       shareholder
                           company principal

                                                                                                    Development, production and sale
                                                                                                    of electronics, IT products and
                                                                                                    electrical appliances, operation of
                                                                                                    electronic information networks
                                                                                                    and          computers,       electronic
                                                                                                    computer technology service, and
                                                                                                    equipment        and      venue   rental
                                                                                                    service;       sale    of     electronic
                                                                                                    computers and fittings, electronic
                                                                                                    components, electron devices, and
Guangdong Electronics
                                                                                                    electrical        machinery         and
Information      Industry He Yong                2000-10-19               91440000725458764N
                                                                                                    equipment; wholesale of coal;
Group Ltd.
                                                                                                    energy       performance     contracting
                                                                                                    service,        development         and
                                                                                                    consulting service of energy-saving
                                                                                                    technology, and manufacture and
                                                                                                    installation      of      energy-saving
                                                                                                    equipment; parking lot operation
                                                                                                    (188 Yueken Road, Tianhe District,
                                                                                                    Guangzhou, Guangdong Province,
                                                                                                    P.R.China); import and export of
                                                                                                    goods; and training of professional


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                                                                                                    and technical personnel.

                                                                                                    Equity       and        venture      capital
                                                                                                    investment       (approval        shall    be
                                                                                                    obtained        for      each       specific
                                                                                                    investment         project);      industrial
                                                                                                    investment       (approval        shall    be
                                                                                                    obtained        for      each       specific
                                                                                                    investment project); trustee service
                                                                                                    for     asset      management             (not
Shenzhen             Rising
                                                                                                    including       securities,       insurance,
Investment                     Wu Xiaohui        2003-08-27               91440300754255560K
                                                                                                    funds, financial service, human
Development Co., Ltd.
                                                                                                    resources consulting service and
                                                                                                    other      restricted    business);       and
                                                                                                    investment information consulting
                                                                                                    service,      economic         information
                                                                                                    consulting       service,       investment
                                                                                                    management planning, corporate
                                                                                                    identity         design         (excluding
                                                                                                    restricted business).

Hong      Kong       Rising
Investment                     Liu Wei           2001-07-11               764105                    Investment and asset management
Development Limited

Shareholdings            of
                               In the reporting period, Guangdong Electronics Information Industry Group Ltd. held 61,348,500 shares
controlling shareholder
                               in Foshan NationStar Optoelectronics Co., Ltd., representing a stake of 12.90% in NationStar. Shenzhen
in       other        listed
                               Rising Investment Development Co., Ltd. held 34,984,561 shares in Guangdong Fenghua Advanced
companies at home or
                               Holding Co., Ltd., accounting for 4.33% of Fenghua’s total shares; and held 122,621,532 shares in
abroad     in    reporting
                               Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd., representing a stake of 5.54% in Nonfemet.
period



Change of the controlling shareholder during the reporting period
√ Applicable □ Inapplicable
                                                                      Guangdong Electronics Information Industry Group Ltd. and its
                                                                      acting-in-concert   parties    Shenzhen          Rising       Investment
New controlling shareholder
                                                                      Development Co., Ltd. and Hong Kong Rising Investment
                                                                      Development Limited

Date of change                                                        2015-12-04

                                                                      Title of public announcement: Public Announcement on the
                                                                      Change of the Controlling Shareholder and the Actual Controller;
Index to relevant information on designated website
                                                                      public       announcement      No.:           2015-059;          website:
                                                                      www.cninfo.com.cn

Date of disclosure                                                    2015-12-07



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3. Particulars about the actual controller

Nature of the actual controller: Local management organization for state-owned assets
Type of the actual controller: Corporation
                                            Legal
                                       representative /        Date of
   Name of actual controller                                                   Organization code                Business scope
                                          company           establishment
                                          principal

                                                                                                     Asset        management                     and
                                                                                                     operation, equity management
                                                                                                     and      operation,             investment
                                                                                                     operation, and management and
                                                                                                     re-investment           of      investment
                                                                                                     earnings;          other              business
                                                                                                     authorized by the state-owned
                                                                                                     assets   administration               of    the
                                                                                                     Guangdong Province; contractor
                                                                                                     service for overseas projects and
                                                                                                     domestic projects calling for
                                                                                                     international          bids,     contractor
Guangdong         Rising    Assets
                                      Zhu Wei             1999-12-23        91440000719283849E       service for survey, consulting,
Management Co., Ltd.
                                                                                                     design and supervision of the
                                                                                                     aforesaid        overseas             projects,
                                                                                                     export      of         equipment            and
                                                                                                     materials        for     the      aforesaid
                                                                                                     overseas projects, and dispatch
                                                                                                     of contract workers for the
                                                                                                     aforesaid        overseas             projects;
                                                                                                     property     rental          service; and
                                                                                                     exploitation,          sale     and        deep
                                                                                                     processing         of          rare        earth
                                                                                                     (operated by the branches with
                                                                                                     the relevant licenses).

                                      In the reporting period, Guangdong Rising Assets Management Co., Ltd. directly or indirectly
                                      held the following stakes in other listed companies at home or abroad: 1. a 44.31% stake of
Shareholdings        of     actual
                                      116,136,793 shares in Rising Nonferrous (stock code: 600259); 2. a 36.05% stake of 797,650,880
controller   in     other    listed
                                      shares in Nonfemet (stock code: 000060); 3. a 26.54% stake of 214,286,912 shares in Fenghua
companies at home or abroad
                                      Advanced (stock code: 000636); 4. a 20.16% stake of 95,919,832 shares in NationStar
under its control in reporting
                                      Optoelectronics (stock code: 002449); 5. an 0.08% stake of 38,200,000 shares in Everbright Bank
period
                                      (stock code: 601818); 6. a 6.94% stake of 5,614,082,653 shares in China Telecom (stock code:
                                      00728).

Change of the actual controller during the reporting period



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√ Applicable □ Inapplicable
New actual controller                                            Guangdong Rising Assets Management Co., Ltd.

Date of change                                                   2015-12-04

                                                                 Title of public announcement: Public Announcement on the
                                                                 Change of the Controlling Shareholder and the Actual Controller;
Index to relevant information on designated website
                                                                 public       announcement        No.:     2015-059;       website:
                                                                 www.cninfo.com.cn

Date of disclosure                                               2015-12-07

Illustration on the ownership and control relationship between the Company and its actual controller



                                State-owned Assets Supervision and Administration Commission of
                                        the People’s Government of Guangdong Province


                                                                      100%


                                         Guangdong Rising Assets Management Co., Ltd.




                        100%                                          100%                                             100%


       Guangdong Rising Financial              Hong Kong Rising Investment                       Guangdong Electronics
            Holding Co., Ltd.                         Development Limited                    Information Industry Group Ltd.



                        100%                                                                     4.745%                100%


       Shenzhen Rising Investment                                                                Hong Kong Wah Shing Holding
          Development Co., Ltd.                                       1.821%                             Company Limited



                          3.108%                                                                                       13.470%


                                              Foshan Electrical and Lighting Co., Ltd.




The actual controller controls the Company via trust or other ways of asset management
□ Applicable √ Inapplicable

4. Other corporate shareholders with an over 10% stake in the Company

√ Applicable □ Inapplicable

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                                   Legal representative /       Date of
  Name of corporate shareholder                                                Registered capital          Business scope
                                    company principal         establishment

                                                                                                    Import      and     export    of
                                                                                                    electronics, electric lighting
                                                                                                    products,      lamps,    electric
Prosperity Lamps & Components
                                  Zhuang Jianyi             1978-04-28        HKD2 million          lighting equipment, etc., and
Limited
                                                                                                    design,       installation   and
                                                                                                    after-sales       service     of
                                                                                                    lighting solutions


5. Limits on the Company’s shares held by its controlling shareholder, actual controller, reorganizer and
other commitment subjects


√ Applicable □ Inapplicable

The controlling shareholders have made a commitment that within 12 months from the date of the control right

change (4 Dec. 2015), they shall not transfer or entrust others to manage the shares directly or indirectly held by

them in the Company, nor shall they allow the Company to repurchase those shares, except for the case where

those shares may be transferred for no compensation due to any business or asset integration with their actual

controller or their actual controller’s controlled subsidiaries.




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                                 Section VII Preference Shares

□ Applicable √ Inapplicable

No preference shares in the reporting period.




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       Section VIII Directors, Supervisors, Senior Management Staff &

                                                           Employees
I. Changes in the shareholdings of the directors, supervisors and senior management staff
                                                                                  Opening        Increase Decrease     Other
                                                           Beginnin     Ending                                                      Closing
                Office    Current/f                        g date of    date of   sharehold in current in current increase/d
     Name                              Gender   Age                                                                               shareholding
                  title    ormer                            office      office       ing         period     period     ecrease
                                                             term        term                                                       (share)
                                                                                   (share)       (share)    (share)    (share)
            Board                                          25 Dec.     25 Dec.
 He Yong                  Current     Male            55                                     0                                                0
            Chairman                                       2015        2018
            Vice
 Zhuang                                                    25 Dec.     25 Dec.
            Board         Current     Male            64                          8,324,132                           2,497,240    10,821,372
 Jianyi                                                    2015        2018
            Chairman
                                                           25 Dec.     25 Dec.
 Liu Ren    Director      Current     Male            48                                     0                                                0
                                                           2015        2018
                                                           25 Dec.     25 Dec.
 Cheng Ke Director        Current     Male            41                             10,500                                            10,500
                                                           2015        2018
 Chen                                                      25 Dec.     25 Dec.
            Director      Current     Male            51                                     0                                                0
 Binghui                                                   2015        2018
 Huang                                                     25 Dec.     25 Dec.
            Director      Current     Male            46                                     0                                                0
 Zhiyong                                                   2015        2018
            Independ
 Zhang                                                     25 Dec.     25 Dec.
            ent           Current     Female          66                                     0                                                0
 Nan                                                       2015        2018
            Director
            Independ
                                                           25 Dec.     25 Dec.
 Lu Rui     ent           Current     Male            40                                     0                                                0
                                                           2015        2018
            Director
            Independ
                                                           25 Dec.     25 Dec.
 Lv Wei     ent           Current     Male            51                                     0                                                0
                                                           2015        2018
            Director
            Chairman
 Liang      of the                                         25 Dec.     25 Dec.
                          Current     Female          40                                     0                                                0
 Yuefei     Superviso                                      2015        2018
            ry
 Zhuang     Superviso                                      25 Dec.     25 Dec.
                          Current     Male            30                                     0                                                0
 Junjie     r                                              2015        2018
 Zhang      Superviso                                      10 Dec.     10 Dec.
                          Current     Male            41                             10,700         8,500                 5,760        24,960
 Yong       r                                              2015        2018
 Ye
            Superviso                                      10 Dec.     10 Dec.
 Zhenghon                 Current     Male            42                             20,560         2,000                 6,768        29,328
            r                                              2015        2018
 g
 Zhang      Superviso Current         Male            38 10 Dec.       10 Dec.        6,400         2,300                 2,611        11,311




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Xuequan r                                           2015      2018
Liu         General                                 28 May    25 Dec.
                        Current   Male         53                        351,280     17,000          110,484      478,764
Xingming Manager                                    2013      2018
            Company                                 28 May    25 Dec.
Lin Yihui               Current   Male         61                              0     10,000             3,000      13,000
            Secretary                               2013      2018
                                                    28 May    25 Dec.
Wei Bin     Vice GM Current       Male         46                         15,684     10,600             7,885      34,169
                                                    2013      2018
                                                    28 May    25 Dec.
Xie Qing Vice GM Current          Male         41                         12,950     11,300             7,275      31,525
                                                    2013      2018
Jiao                                                17 Sep.   25 Dec.
            Vice GM Current       Male         43                         22,880      9,000             9,564      41,444
Zhigang                                             2013      2018
                                                    13 May    25 Dec.
Chen Yu     Vice GM Current       Male         43                          6,700      6,500             3,960      17,160
                                                    2014      2018
            Chairman
                                                    28 May    25 Dec.
Pan Jie     of the      Former    Male         44                              0     43,000            12,900      55,900
                                                    2013      2015
            Board
Liu         Vice                                    28 May    25 Dec.
                        Former    Male         53                        351,280     17,000          110,484      478,764
Xingming Chairman                                   2013      2015
Wu                                                  28 May    25 Dec.
            Director    Former    Male         49                              0                                          0
Shengbo                                             2013      2015
Werner
Jrgen                                               28 May    25 Dec.
            Director    Former    Male         46                              0                                          0
Dietrich                                            2013      2015
Hoffmann
Ye                                                  28 May    25 Dec.
            Director    Former    Male         59                              0                                          0
Zaiyou                                              2013      2015
Yang                                                28 May    25 Dec.
            Director    Former    Male         38                              0                                          0
Jianhu                                              2013      2015
            Independ
Liu                                                 28 May    25 Dec.
            ent         Former    Male         67                              0                                          0
Zhenping                                            2013      2015
            Director
            Independ
Dou                                                 28 May    25 Dec.
            ent         Former    Male         56                              0                                          0
Linping                                             2013      2015
            Director
            Independ
Xue                                                 28 May    25 Dec.
            ent         Former    Male         47                              0                                          0
Yizhong                                             2013      2015
            Director
Zhuang      Superviso                               28 May    25 Dec.
                        Former    Male         58                              0                                          0
Rujia       r                                       2013      2015
Zhang       Superviso                               28 May    25 Dec.
                        Former    Male         64                              0                                          0
Yingqi      r                                       2013      2015
Yin                                                 28 May    7 Jan.
            CFO         Former    Male         40                              0     27,000             8,100      35,100
Jianchun                                            2013      2016
Total             --       --        --   --            --        --    9,133,066   164,200       0 2,786,031   12,083,297



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II. Changes in the directors, supervisors and senior management staff
      Name          Office title    Type of change        Date                               Reason

                                                                    The term of the Board of Directors changed and be
 He Yong         Board Chairman Elected              25 Dec. 2015   elected as the Chairman of the Board of the 8th Board of
                                                                    Directors of the Company
                                                                    The term of the Board of Directors changed and be
                 Vice Board
 Zhuang Jianyi                     Elected           25 Dec. 2015   elected as the Vice Chairman of the Board of the 8th
                 Chairman
                                                                    Board of Directors of the Company
                                                                    The term of the Board of Directors changed and be
 Liu Ren         Director          Elected           25 Dec. 2015   elected as the Director of the Board of the 8th Board of
                                                                    Directors of the Company
                                                                    The term of the Board of Directors changed and be
 Cheng Ke        Director          Elected           25 Dec. 2015   elected as the Directors of the Board of the 8th Board of
                                                                    Directors of the Company
                                                                    The term of the Board of Directors changed and be
 Chen Binghui    Director          Elected           25 Dec. 2015   elected as the Director of the Board of the 8th Board of
                                                                    Directors of the Company
                                                                    The term of the Board of Directors changed and be
 Huang Zhiyong   Director          Elected           25 Dec. 2015   elected as the Director of the Board of the 8th Board of
                                                                    Directors of the Company
                                                                    The term of the Board of Directors changed and be
                 Independent
 Zhang Nan                         Elected           25 Dec. 2015   elected as the Independent Director of the Board of the 8th
                 Director
                                                                    Board of Directors of the Company
                                                                    The term of the Board of Directors changed and be
                 Independent
 Lu Rui                            Elected           25 Dec. 2015   elected as the Independent Director of the Board of the 8th
                 Director
                                                                    Board of Directors of the Company
                                                                    The term of the Board of Directors changed and be
                 Independent
 Lv Wei                            Elected           25 Dec. 2015   elected as the Independent Director of the Board of the 8th
                 Director
                                                                    Board of Directors of the Company
                                                                    The term of the Board of Supervisors changes and be
                 Chairman of the
 Liang Yuefei                      Elected           25 Dec. 2015   elected as the Supervisor of the Board of the 8th Board of
                 Supervisory
                                                                    Supervisors of the Company
                                                                    The term of the Board of Supervisors changes and be
 Zhuang Junjie   Supervisor        Elected           25 Dec. 2015   elected as the Supervisor of the Board of the 8th Board of
                                                                    Supervisors of the Company
                                                                    The term of the Board of Supervisors changes and be
 Zhang Yong      Supervisor        Elected           10 Dec. 2015   elected as the Supervisor of the Board of the 8th Board of
                                                                    Supervisors of the Company
                                                                    The term of the Board of Supervisors changes and be
 Ye Zhenghong    Supervisor        Elected           10 Dec. 2015   elected as the Supervisor of the Board of the 8th Board of
                                                                    Supervisors of the Company
                                                                    The term of the Board of Supervisors changes and be
 Zhang Xuequan Supervisor          Elected           10 Dec. 2015
                                                                    elected as the Supervisor of the Board of the 8th Board of




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                                                                       Supervisors of the Company
                                  Appointed      and
 Liu Xingming   General Manager                         28 May 2013    Be appointed as the GM of the Company
                                  dismissed
                                  Appointed      and
 Lin Yihui      Board Secretary                         28 May 2013    Be appointed as the Board Secretary of the Company
                                  dismissed
                                  Appointed      and
 Wei Bin        Vice GM                                 28 May 2013    Be appointed as the Vice GM of the Company
                                  dismissed
                                  Appointed      and
 Xie Qing       Vice GM                                 28 May 2013    Be appointed as the Vice GM of the Company
                                  dismissed
                                  Appointed      and
 Jiao Zhigang   Vice GM                                 17 Sep. 2013   Be appointed as the Vice GM of the Company
                                  dismissed
                                  Appointed      and
 Chen Yu        Vice GM                                 13 May 2014    Be appointed as the Vice GM of the Company
                                  dismissed
                Chairman of the Left        as   term
 Pan Jie                                                25 Dec. 2015   Left as the term of the Board of Directors expired
                Board             expired
                                  Left      as   term
 Liu Xingming   Vice Chairman                           25 Dec. 2015   Left as the term of the Board of Directors expired
                                  expired
                                  Left      as   term
 Wu Shengbo     Director                                25 Dec. 2015   Left as the term of the Board of Directors expired
                                  expired
 Werner Jrgen
                                  Left      as   term
 Dietrich       Director                                25 Dec. 2015   Left as the term of the Board of Directors expired
                                  expired
 Hoffmann
                                  Left      as   term
 Ye Zaiyou      Director                                25 Dec. 2015   Left as the term of the Board of Directors expired
                                  expired
                                  Left      as   term
 Yang Jianhu    Director                                25 Dec. 2015   Left as the term of the Board of Directors expired
                                  expired
                Independent       Left      as   term
 Liu Zhenping                                           25 Dec. 2015   Left as the term of the Board of Directors expired
                Director          expired
                Independent       Left      as   term
 Dou Linping                                            25 Dec. 2015   Left as the term of the Board of Directors expired
                Director          expired
                Independent       Left      as   term
 Xue Yizhong                                            25 Dec. 2015   Left as the term of the Board of Directors expired
                Director          expired
                                  Left      as   term
 Zhuang Rujia   Supervisor                              25 Dec. 2015   Left as the term of the Board of Supervisors expired
                                  expired
                                  Left      as   term
 Zhang Yingqi   Supervisor                              25 Dec. 2015   Left as the term of the Board of Supervisors expired
                                  expired
 Yin Jianchun   CFO               Dismissed             7 Jan. 2016    Resigned owning to personal reasons
III. Brief biographies
Professional backgrounds, main working experience and current responsibilities in the Company of the current

directors, supervisors and senior management staff

1. Working experience of the directors

Mr. He Yong: Han nationality, born in Sep. 1960, a member of the Communist Party of China. He graduated


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from Open University of Hong Kong with a MBA and master’s degree. He once acted as the Vice-minister of the

Operating and Management Department of Guangdong Rising Assets Management Co., Ltd., the Chairman of the

Reform and Stableness Office, the Minister of the Operating and Management Department, the Supervisor of

Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd., the GM of Guangdong Electronics Information Industry Group

Ltd. and Deputy Secretary. Now he serves as the Chairman of the Board of Directors of Guangdong Electronics

Information Industry Group Ltd., the Party Secretary and the Chairman of Foshan NationStar Optoelectronics Co.,

Ltd., the Chairman of Foshan Sigma Venture Capital Co., Ltd. and the Chairman of Shenzhen Primatronix (Nanho)

Electronics Ltd.

Mr. Zhuang Jianyi: born in 1951, with a bachelor’s degree and MBA. He now acts as the Chairman of Hong

Kong Youchang Lighting Equipment, the Director of Xiamen Bank and has been engaged in the electric light

source equipment production as well as the trading business for about 40 years. From 1995 to 2010, he acted as

the Directors, the Vice Chairman and the Chairman of the Company.

Mr. Liu Ren: Han nationality, born in Aug. 1967, a member of the Communist Party of China as well as a senior

economist. He graduated from Hunan College of Finance and Economics with a master’s degree. He once acted as

the GM Assistant of the headquarter of Xiangcai Securities Investment Bank, the Vice GM of Fortune Securities

Investment Bank, Vice GM and member of the party committee of the 23rd Metallurgical Construction Group Co.,

Ltd. of Minerals; during the Y2002 and 2010, he acted as the Independent Directors of Henan Pinggao Electronic

Co., Ltd. and Hunan Chen Dian International Development Share-holding Limited Company. He now acts as the

GM Assistant of Guangdong Rising Assets Management Co., Ltd. and the Minister of the Capital Operation

Department, and the Director of Foshan NationStar Optoelectronics Co., Ltd. and the Supervisor of       Shenzhen

Primatronix (Nanho) Electronics Ltd.

Mr. Cheng Ke: Han nationality, born in Feb. 1974, a member of the Communist Party of China and an auditor

with the bachelor’s degree. He once acted as the Attendant of the Audit Division of Guangzhou Dongshan

Corporate Authority of Guangzhou Military Logistics Department, the Assistant Supervisor, the Supervisor, the

Senior Executive and the Vice-Minister of the Financing Plan Department of Guangdong Rising Assets

Management Co., Ltd., Vice GM of Hubei Ashennan Expressway Development Co., Ltd., Hubei Gdrising Han-E

Expressway Co., Ltd. and Hubei Han-Cai Expressway Co., Ltd. and now acts as the Minister of the Financing

Plan Department of Guangdong Rising Assets Management Co., Ltd. and the Director of Guangdong Rising

Assets Management Co., Ltd.

Mr. Chen Binghui: Han nationality, born in Aug. 1964, a member of the Communist Party of China and an



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engineer. He graduated from Sun Yat-Sen University with a master’s degree of Business Management. He once

acted as the Store Manager of Guangdong Electronic Equipment Co., Ltd., Vice-Mnister, Minister, GM Assistant

of Guangdong Electronics Information Industry Group Ltd.. And he now acts as the Vice GM, a member of

Communist Party of China of Guangdong Electronics Information Industry Group Ltd., the Director of HYB

Battery Co., Ltd., the Executive Director and the Legal Person of Guangdong HYB New Energy Co., Ltd.

Mr. Huang Zhiyong: Han nationality, born in Aug. 1969, a member of the Communist Party of China and an

engineer. He graduated from Xidian University with a bachelor’s degree of Electronic Devices Structures. He

once acted as the Vice GM of Shenzhen Primatronix (Nanho) Electronics Ltd., the Minister of Enterprise

Development Department and the GM Assistant of Guangdong Electronics Information Industry Group Ltd.. He

now acts as the Vice GM and a member of Communist Party of China of Guangdong Electronics Information

Industry Group Ltd. and the Chairman of Vollsun Ltd., the Director and GM of Foshan Sigma Venture Capital

Co., Ltd..

Ms. Zhang Nan (Independent Director): Han nationality, born in Feb. 1949, a member of the Communist Party

of China and a senior economist. She graduated from Chinese Academy of Social Sciences with a master degree

of economic law. She once acted as the Vice-Minister of Beijing Electronic Instruments Industry System Office,

Deputy Director of Audit and Regulations Bureau, the Director, the Deputy Director and the Chief of the research

laboratory of SETC, the Regulations Bureau and the Economic cadre training center as well as the bureau-level

Supervisor of the large enterprises of the Board of Supervisors of the State-owned Assets Supervision and

Administration Commission and retired in Mar. 2009. Since Jun. 2010, she serves as the Independent Director of

CSCL; and as the Independent Director of Guandgong Rising Nonferrous Metals Co., Ltd. since Mar. 2014.

Mr. Lu Rui (Independent Director): Chinese Nationality, born in Jan. 1975. He graduated from the Sun

Yat-Sen University of Management Accounting with a doctor’s degree of management. He now acts as the

Associate Professor of Lingnan (University) College of Sun Yat-Sen University and the Head of the Accounting

and Capital Operation Research Center. He once acted as the Teaching Assistant and the Lecturer of the Financial

Accounting Department of Guangzhou Finance & Trade Management Institute as well as the Lecturer and the

Associate Professor of Lingnan (University) College of Sun Yat-Sen University. He was a visiting scholar to the

MIT Sloan School of Management in 2007 and 2009. Other committee and broad membership includes: the

accounting leading (reserve) talent of Treasury National Academic, the member of All-China Financial Youth

Federation, the member of Independent Director Committee of China Association for Public Companies, the

member of the senior member of Accounting Society of China, the member of AAA and America Finance



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Management Academy, the evaluation experts of NSFC and the researcher of the Internal Control Research

Center of Sun Yat-Sen University; the Independent Director of Guangzhou GCI Science & Technology Co., Ltd.

since Apr. 2010, the Independent Director of Guangzhou Haozhi Electromechanical Co., Ltd. since Jul. 2011, the

Independent Director of Xilong Chemical Co., Ltd. since Jan. 2015 and the Independent Director of Guangzhou

Huayuan Landscape Architecture Co., Ltd. since May 2015.

Mr. Lv Wei (Independent Director): Chinese Nationality, born in Dec. 1964. He graduated from Shanghai

Fudan University of Management, with a bachelor’s degree of Science, a master’s degree of Economics and a

doctor’s degree. He now acts as the Professor, the PhD Student Supervisor of the Department of Marketing of the

Antai School of Management of SJTU, and at the same time serves as the Academic Committee Secretary General

of the Marketing Society of China. His research covers the strategic marketing, the corporate strategic

management of the consumer behaviors and the precision marketing under the big data background. He once

acted as the visiting scholar that engaged in the research respectively at the USC Marshall School of Business, the

MIT Sloan School of Management and the France Insead (INSEAD Business School). He once presided over 3

items of the NSFC, participated in 2 items of the National 863 Key Projects, 1 item of the Humanities & Social

Sciences of the Ministry of Education and 1 item of Shanghai Social Philosophy Fund. He has been acting as the

Independent Director of Shanghai Shibei Hi-tech Co., Ltd. since Sep. 2012 till now and the Independent Director

of Shanghai Lujiazui Finance & Trade Zone Development Co., Ltd. since May 2015 till now.



2. Working experience of the supervisors

Ms. Liang Yuefei: Han nationality, born in Nov. 1975, a member of the Communist Party of China and a CCPA

member. She graduated from Guangdong Polytechnik Normal College with a bachelor’s degree. She once acted

as the Vice-Minister of the Total Fiscal Audit Department of Guangdong Electronics Information Industry Group

Ltd.. And now acts as the Minister and Employee Supervisor of the Total Fiscal Department of Guangdong

Electronics Information Industry Group Ltd., the Chairman of Shenzhen HYB Battery Co., Ltd., the Supervisor of

Guangdong Desheng Industrial Co., Ltd., the Supervisor of Guangdong Kesheng Industrial Co., Ltd., the

Supervisor of Guangdong YHB New Energy Co., Ltd., the Supervisor of ECORISING, the Supervisor of Vollsun

Ltd., the Supervisor of Guangdong Xinli Electronic Information Import & Export Co., Ltd., the Supervisor of

Foshan Sigma Venture Capital Co., Ltd. and the Supervisor of Foshan NationStar Optoelectronics Co., Ltd..

Mr. Zhuang Junjie: Born in Sep. 1985, a Hong Kong permanent resident. He graduated with a bachelor’s degree

and once acted as the Consultant Manager of Accenture Software and now acts as the Director of Hong Kong



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Youchang Lighting Equipment Co., Ltd.

Mr. Zhang Yong: Born in Jun. 1974, a member of the Communist Party of China and a mechanical engineer with

a college degree. From Jul. 1997, he joined in the Foshan Electrical and Lighting Co., Ltd. and successively acted

as Deputy Director and Director of Lamp Filament Appliance Workshop from Oct. 1999 to Jun. 2008; acted as

Factory Director of Gaoming Fluorescent 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 Dynamics Department and Infrastructure Department from Jan. 2009 to Dec. 2012; acted as General

Manager Assistant from Mar. 2013 up to present. In Sep. 2013, he was selected as the Chairman of the Board of

Supervisors of the Company and the Deputy Party Secretary since Jul. 2015.

Mr. Ye Zhenghong: Born in Jul. 1973, a member of the Communist Party of China with a college degree. He

joined the Company from Jul. 1995; worked in the Machine Repair Shop from Jul. 1997 to Jan. 2001; acted as

Equipment Management Director in T8 Fluorescent Lamp Factory from Feb. 2001 to Jan. 2005; acted as Director

of Machine Repair Workshop from May 2005 to Jan. 2007; acted as Chief Officer of Machinery Dynamic

Department from May 2006 to Dec. 2007; and acted as factory director of T8 Fluorescent Lamp Factory from Jan.

2008 to Nov. 2013; and acted as factory director of LED of T8 from Dec. 2013 up to now; the Chairman of the

5th Board of Supervisors and the Employee Supervisor of the 6th and 7th Board of Supervisors.

Mr. Zhang Xuequan: Born in Dec. 1977, a member of the Communist Party of China with a bachelor’s degree.

He joined the Company in Oct. 1996. He worked in the former Iodine-tungsten Lamp Workshop from Oct. to Dec.

1996; worked in the Technology Department and then the Quality Control Department from Jan. 1997 to Aug.

2005; acted as the Workshop Manager of Lamp Workshop from Sept. 2002 to May 2008; acted as the Department

Director of the Business Management Department of the Company from Jun. 2008 till now. He has concurrently

acted as the Office Director since Feb. 2016. He also concurrently acted as the Secretary of the Youth League

Committee from Aug. 2001 to Nov. 2010. He has acted as the Supervisor of the Company since May 2013.



3. Working experience of the senior management staff

Mr. Liu Xingming: Born in Jun. 1962, a member of the Communist Party of China and an engineer with a

bachelor’s degree. He joined the Company in 1983, and acted as Vice GM from 1997 to 2005; acted as GM of the

Company from Dec. 2005 to Nov. 2008; acted as Vice GM of the Company in Dec. 2008; elected as the Director

of the Company from 1995 to Dec. 2015; acted as Vice Director of the Board from Apr. 2011 to Dec. 2015; from

Apr. 2012 up to now, he acted as the GM and Vice Director of the Board; after 1995, he was elected as the



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Director of the Company. In Jul. 2015, he was elected as the Party Secretary of the Company.

Mr. Lin Yihui: Born in Nov. 1954, a member of the Communist Party of China with a master’s degree in

Economics. He was in active service in force from Dec. 1970 to 1986 and acted as posts of command, battalion

and group; works in Foshan International Trust and Investment Company from 1986 to Sep. 2000 and acted as

Section Chief and Vice GM and was in charge of the securities business of the Company as well as host the works

such as the underwritten offering and listing recommendation of the shares of various companies over years; acted

as Party Secretary of the Company from May. 2010 to Jun. 2015 . He has acted as the Secretary of the Company

since May 2013.

Mr. Wei Bin: Born in May 1969, a member of the Communist Party of China and an engineer with a bachelor’s

degree. He joined in the Company in 1991, and responsible for the product development of the graduate school of

the Company 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 Workshop

Manager of T5 Workshop from 2006 to Nov. 2008, acted as the Department Director of the Technology

Department from Nov. 2008 to 2009 and acted as Vice GM of the Company from Sep. 2009.

Mr. Xie Qing: Born in Apr. 1974, a member of the Communist Party of China and an electric light source

engineer. He graduated from Nanjing Radio Industrial School in Jul. 1994, and worked in the General Bulbs

Workshop of the Company upon his graduation, technician of the General Bulbs Workshop in Mar. 1996, Chief of

Middle-grade Lamp Workshop in May 1997, Chief of Sing-end Lamps Workshop from 1998 to 2010, and Deputy

General Manager of the Company since Jun. 2010.

Mr. Jiao Zhigang: Born in May 1972, a member of the Communist Party of China with a bachelor’s degree. He

graduated from South China University of Technology in Jul. 1994, and at the same year he entered Foshan

Electrical and Lighting Co., Ltd. He acted as Warehouse Director of the Company from Aug. 1995 to Sep. 2013,

acted as Department Director of Human Resources Department from May 2010 to Sep. 2013; selected as

Employee Supervisor from Mar. 2007 to Sep. 2013, and as Chairman of the Supervisory of the Company from

May 2010 to Sep. 2013. He acted as Vice GM of the Company in Sep. 2013.

Mr. Chen Yu: Born in Dec. 1972, a member of the Communist Party of China and an engineer with bachelor’s

degree. He entered Foshan Electrical 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 bulbs from Jan. 1997 to Dec. 2012, acted as Director of Production Department,

OEM Department and Mechanical Dynamics Department from Jan. to Aug. 2013, acted as Director of Production



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Department and OEM Department from Sep. 2013 to May 2014 as well as acted as Vice GM of the Company

from May 2014.

Concurrent positions in the shareholder entities
√Applicable □Inapplicable
                                                                 Concurrent                                            Remuneration or
                                                                  position in Beginning date        Ending date of    allowance paid by
     Name                    Shareholder entity
                                                                 shareholder of office term          office term      shareholder entity
                                                                    entity                                                  or not
                                                                Chairman,
                 Guangdong      Electronics       Information
 He Yong                                                        Party                                                 Yes
                 Industry Group Ltd.
                                                                Secretary
 Zhuang Jianyi   Youchang Light Equipment Co., Ltd.             Chairman                                              Yes
                 Guangdong      Electronics       Information
 Chen Binghui                                                   Vice GM                                               Yes
                 Industry Group Ltd.
                 Guangdong      Electronics       Information
 Huang Zhiyong                                                  Vice GM                                               Yes
                 Industry Group Ltd.
                                                                Minister     of
                 Guangdong      Electronics       Information
 Liang Yuefei                                                   Total   Fiscal                                        Yes
                 Industry Group Ltd.
                                                                Department
 Zhuang Junjie   Youchang Light Equipment Co., Ltd.             Director                                              Yes
 Notes           N/A


Concurrent positions in other entities
√Applicable □Inapplicable
                                                                  Concurrent                                            Remuneration or
                                                                                   Beginning date    Ending date of
     Name                       Other entity                      position in                                          allowance paid by
                                                                                   of office term     office term
                                                                  other entity                                         other entity or not
                 Lingnan   (University)   College    of   Sun Associate
 Lu Rui                                                                                                                Yes
                 Yat-Sen University                             Professor,
                                                                Professor,
 Lv Wei          Antai School of Management of SJTU             PhD     student                                        Yes
                                                                supervisor
                                                                GM Assistant
                                                                and Minister
                 Guangdong Rising Assets Management Co.,
 Liu Ren                                                        of      Capital                                        Yes
                 Ltd.
                                                                Operating
                                                                Department
                                                                Minister      of
                 Guangdong Rising Assets Management Co., Financing
 Cheng Ke                                                                                                              Yes
                 Ltd.                                           Plan
                                                                Department
 Notes           N/A

Punishments imposed in the recent 3 years by the securities regulators on the current directors, supervisors and



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senior management as well as those who left in the reporting period

√ Applicable □ Inapplicable

In Mar. 2013, Mr. Liu Xingming was warmed by the Guangdong Securities Regulatory Bureau and be punished

for the penalty of RMB30,000.

In Mar. 2013, Mr. Xie Qing and Mr. Wei Bin were warmed by the Bureau.
IV. Remuneration for the directors, supervisors and senior management staff
Decision-making procedure, determining basis and actual payment for the remuneration of directors, supervisors
and senior management staff
                                                  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-Rank
 remuneration 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 accordance
 Basis 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 the Salary System and the relevant
 management                                       appraisal indexes.
                                                  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 2015 were of RMB 10.3898 million.
 management

Remuneration for the directors, supervisors and senior management staff of the Company during the reporting
period
                                                                                                                  Unit: RMB Ten thousand
                                                                                                         Total before-tax        Remuneration
                                                                                                          remuneration       paid by related
       Name            Office title               Gender                Age           Current/former
                                                                                                             from the             party of the
                                                                                                            Company          Company or not
 He Yong           Chairman                Male                                  55 Current                                 Yes
 Zhuang Jianyi     Vice Chairman           Male                                  64 Current                                 Yes
 Liu Ren           Director                Male                                  48 Current                                 Yes
 Cheng Ke          Director                Male                                  41 Current                                 Yes
 Chen Binghui      Director                Male                                  51 Current                                 Yes
 Huang Zhiyong     Director                Male                                  46 Current                                 Yes
                   Independent
 Zhang Nan                                 Female                                66 Current                                 No
                   Director
                   Independent
 Lu Rui                                    Male                                  40 Current                                 No
                   Director




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                   Independent
 Lv Wei                              Male                        51 Current                                   No
                   Director
                   Supervisory
 Liang Yuefei                        Female                      40 Current                                   Yes
                   Board Chairman
 Zhuang Junjie     Supervisor        Male                        30 Current                                   Yes
 Zhang Yong        Supervisor        Male                        41 Current                            52 No
 Ye Zhenghong      Supervisor        Male                        42 Current                           34.3 No
 Zhang Xuequan     Supervisor        Male                        38 Current                          23.07 No
 Liu Xingming      GM                Male                        53 Current                        141.75 No
 Lin Yihui         Board Secretary   Male                        61 Current                          71.66 No
 Wei Bin           Vice GM           Male                        46 Current                          71.66 No
 Xie Qing          Vice GM           Male                        41 Current                          75.07 No
 Jiao Zhigang      Vice GM           Male                        43 Current                          71.66 No
 Chen Yu           Vice GM           Male                        43 Current                            52 No
 Pan Jie           Chairman          Male                        41 Former                        259.88 No
 Wu Shengbo        Director          Male                        49 Former                                    Yes
 Werner Jrgen
 Dietrich          Director          Male                        46 Former                                    Yes
 Hoffmann
 Ye Zaiyou         Director          Male                        59 Former                                    No
 Yang Jianhu       Director          Male                        38 Former                                    Yes
                   Independent
 Liu Zhenping                        Male                        67 Former                             10 No
                   Director
                   Independent
 Dou Linping                         Male                        56 Former                             10 No
                   Director
                   Independent
 Xue Yizhong                         Male                        47 Former                             10 No
                   Director
 Zhuang Rujia      Supervisor        Male                        58 Former                                    Yes
 Zhang Yingqi      Supervisor        Male                        64 Former                                    No
 Yin Jianchun      CFO               Male                        40 Former                        155.93 No
 Total                     --                 --            --                --                 1038.98            --
Particulars about the equity incentives awarded to the directors, supervisors and senior management staff of the
Company during the reporting period

□ Applicable √ Inapplicable


V. Employees
1. As to 31 Dec. 2015, the Company (branch companies and subsidiaries included) has 8028 employees in active

service, of which the parent company staff of 1622 people, the main branch companies and subsidiaries staff of

6406 people. and the professional structure and educational background are as follows:
                                                                              Proportion in total amount of
    Professional structure of employees            Amount
                                                                                     employees (%)




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        Production staff                    6815                             84.89%
           Sales staff                       600                              7.47%
         Technical staff                     455                              5.67%
      Administration staff                   105                              1.31%
         Financial staff                     53                               0.66%
             Total                          8028                              100%




                         Breakdown of the Employees’ Functions




                                                                                      Production staff
                                                                                      Sales staff
                                                                                      Technical staff
                                                                                      Administrative staff
                                                                                      Financial staff




   Educational background                 Amount                   Proportion in total amount of
                                                                          employees (%)
     Above college level                   1052                              13.10%
Technical secondary school and             1805                              22.48%
      senior high school
   Below senior high school                5171                              64.42%
            Total                          8028                               100%




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                               Breakdown of the Employees’ Educational
                                            Backgrounds




                                                                                       Above college level
                                                                                       Technical secondary school
                                                                                       and senior high school
                                                                                       Below senior high school




2. The Company has signed the labor contracts with all its staffs and handled the social insurance for the staffs, as

well as established the public reserve funds system. There were no particulars in violation of laws and regulations

when executing the national employment system, labor protection system, social security system and medical

security system. And the Company need not undertake the expenses of resigned and retired staffs.

3. Employee’s remuneration policy

The general principal of the employee’s remuneration policy is: as for the external part, the Company should

maintain the market competitiveness of the talents by possessing of the attraction and as for the internal part,

should possess of the impartiality and consistency. The salary level of the external labor market and the social

average salary level as well as the wage guiding issued by the governmental department are the important

reference basis for the confirm of the salary standard of the Company; to confirm different pay grade according to

different positions and the position characteristics and to furthest incentive the enthusiasm of the employees; to

abide with the principal of giving priority to efficiency and give consideration of the fairness and to object to the

equalitarianism when distributing the remunerations, to pay with generous compensation for those excellent

employees who creates great value, to appropriately incline to the key talents and the market supply shortage

talents; the lowest salary of the Company should not lower than the local lowest salary standard.

4. Employees’ training plan

The Company has been setting great store on the training and development work of the employees, and combined

with the actual situation, annual plan, the position nature and the responsibilities as well as the development




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demands, the Company built up a serious of training plan through the methods of having classes by internal

lecturers and external engaged professors, which with multiple levels, channels, fields and ways to strengthen the

employee training work, including the new employee orientation training, the on-the-job personnel professional

training as well as the frontline staff skills training and so on, to constantly improve the overall quality of the

current employees for realizing the win-win situation and mutual progress.

5. Labor outsourcing situation

 □ Applicable √ Inapplicable


Payroll cost
                                                                          Current period

 Total number of employees with remuneration                                                                   8,028

 Total remuneration (RMB ten thousand)                                                                     43,549.80

 Total remuneration in operating revenues                                                                      15.14

 Average remuneration for senior executives (RMB
                                                                                                               74.21
 ten thousand/person)

 Average remuneration for all employees (RMB ten
                                                                                                                5.42
 thousand/person)




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                              Section IX Corporate Governance
I. Basic condition of the Company’s corporate governance
During 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 as

well as other relevant laws, rules and regulations, the&n