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佛山照明(000541)公告正文

粤照明B:2017年第三季度报告全文(英文版)

公告日期:2017-10-26

Foshan Electrical and Lighting Co., Ltd.                  Third Quarter Report 2017




        FOSHAN ELECTRICAL AND LIGHTING CO., LTD.

                            THIRD QUARTER REPORT 2017




                                           October 2017




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Foshan Electrical and Lighting Co., Ltd.                                 Third Quarter Report 2017




                                       Part I Important Statements

The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management of Foshan Electrical and Lighting
Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report, and shall be jointly and severally liable for any false representation,
misleading statements or material omissions in this Report.
All the directors of the Company attended the board meeting for the review of this Report.
He Yong, head of the Company, Liu Xingming, accounting head for this Report, and Tang
Qionglan, head of the accounting department (head of accounting) of the Company, hereby
guarantee that the financial statements carried in this Report are factual, accurate and
complete.




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Foshan Electrical and Lighting Co., Ltd.                                                                   Third Quarter Report 2017




                                            Part II Company Fundamentals

I Key Consolidated Operating Results

Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.

□ Yes √ No
                                                September 30, 2017                December 31, 2016                  Change

Total assets (RMB)                                       5,863,350,363.96               6,100,169,400.30                        -3.88%

Equity attributable to owners of the
                                                         4,921,491,291.64               4,990,466,577.12                        -1.38%
parent (RMB)

                                                                                            January-September
                                            July-September 2017        YoY change                                      YoY change
                                                                                                  2017

Net sales (RMB)                                   926,328,050.98                   13.03%      2,950,253,633.82                 14.56%

Net     margin        attributable     to
shareholders     of    the   Company              450,036,365.74                  514.98%        678,531,026.31                142.24%
(RMB)

Net     margin        attributable     to
shareholders     of    the   Company
                                                   65,754,068.84                  -10.42%        292,938,302.54                  4.60%
before exceptional gains and losses
(RMB)

Net cash from operating activities
                                                    --                       --                 -103,806,526.11               -132.03%
(RMB)

Basic earnings per share
                                                           0.3538                 515.30%                  0.5334              142.23%
(RMB/share)

Diluted earnings per share
                                                           0.3538                 515.30%                  0.5334              142.23%
(RMB/share)

Weighted average return on equity
                                                           8.43%                    6.94%                  13.42%                7.89%
(%)



Exceptional gains and losses:

√ Applicable □ Not applicable

                                                                                                                              Unit: RMB

                                     Item                                   January-September 2017                   Note

Gains/Losses on disposal of non-current assets (inclusive of offset
                                                                                         -4,255,164.43
asset impairment provisions)



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Foshan Electrical and Lighting Co., Ltd.                                                                   Third Quarter Report 2017


Government grants charged to the profit/loss for this Reporting
Period (except for the government grants closely related to the
                                                                                         4,234,669.94
business of the Company and given at a fixed quota or amount in
accordance with the State’s uniform standards)

Gains/Losses on fair value changes of trading financial assets and
liabilities & investment income from disposal of trading financial
assets and liabilities as well as financial assets available for sale                269,362,165.95
(exclusive of effective hedges related to normal business
operations of the Company)

Non-operating income and expense other than above                                        1,572,504.43

Other gain and loss items that meet definition of extraordinary
                                                                                     182,463,231.03
gain/loss

Less: Income tax effects                                                                67,778,283.66

        Minority interests effects (after tax)                                               6,399.49

Total                                                                                385,592,723.77                    --

Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the
said explanatory announcement as a recurrent gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.

II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End

1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders

                                                                                                                               Unit: share

                                                                         Total number of preference
Total       number      of     common                                    shareholders    with   resumed
                                                                92,189                                                                 0
shareholders at period-end                                               voting rights at period-end (if
                                                                         any)

                                                           Top 10 shareholders

    Name of               Nature of         Shareholding    Total shares held Restricted shares            Pledged or frozen shares
   shareholder           shareholder         percentage       at period-end     held at period-end         Status           Number

Hong Kong Wah
Shing       Holding Foreign
                                                   13.47%        171,360,391                         Pledged                  83,966,592
Company              corporation
Limited

Prosperity Lamps Foreign                           10.50%        133,577,143


                                                                                                                                           4
Foshan Electrical and Lighting Co., Ltd.                                                              Third Quarter Report 2017


&      Components corporation
Limited

Shenzhen Rising
Investment             State-owned
                                              5.12%         65,178,305
Development            corporation
Co., Ltd.

Guangdong
Electronics
                       State-owned
Information                                   4.74%         60,357,728                        Pledged                        29,575,287
                       corporation
Industry      Group
Ltd.

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

Essence
International          Foreign
                                              1.91%         24,277,429
Securities (Hong corporation
Kong) Co., Ltd.

DBS Vickers
                       Foreign
(Hong Kong) Ltd                               1.86%         23,645,755
                       corporation
A/C Clients

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

China Merchants
                       Foreign
Securities (HK)                               0.86%         10,928,556
                       corporation
Co., Limited

                       Foreign
Zhuang Jianyi                                 0.85%         10,821,372            8,116,029
                       individual

                                             Top 10 non-restricted shareholders

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

Hong Kong Wah Shing Holding                                                                   RMB       common
                                                                              171,360,391                                171,360,391
Company Limited                                                                               stock

Prosperity Lamps & Components                                                                 RMB       common
                                                                              133,577,143                                133,577,143
Limited                                                                                       stock

Shenzhen        Rising        Investment                                       65,178,305 RMB           common               65,178,305


                                                                                                                                          5
Foshan Electrical and Lighting Co., Ltd.                                                                     Third Quarter Report 2017


Development Co., Ltd.                                                                                stock

Guangdong Electronics Information                                                                    RMB       common
                                                                                       60,357,728                              60,357,728
Industry Group Ltd.                                                                                  stock

Central Huijin Asset Management                                                                      RMB       common
                                                                                       30,799,000                              30,799,000
Co., Ltd.                                                                                            stock

                                                                                                     Domestically
Essence      International     Securities
                                                                                       24,277,429 listed stock for             24,277,429
(Hong Kong) Co., Ltd.
                                                                                                     foreign investors

                                                                                                     Domestically
DBS Vickers (Hong Kong) Ltd A/C
                                                                                       23,645,755 listed stock for             23,645,755
Clients
                                                                                                     foreign investors

                                                                                                     Domestically
Hong       Kong   Rising      Investment
                                                                                       23,165,684 listed stock for             23,165,684
Development Co., Ltd.
                                                                                                     foreign investors

                                                                                                     Domestically
China Merchants Securities (HK)
                                                                                       10,928,556 listed stock for             10,928,556
Co., Limited
                                                                                                     foreign investors

                                                                                                     RMB       common
Peng Weiyan                                                                              8,546,042                              8,546,042
                                                                                                     stock

                                            Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited,
                                            Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information
                                            Industry Group Ltd. and Hong Kong Rising Investment Development Co., Ltd. are
Related or acting-in-concert parties
                                            acting-in-concert parties; and Prosperity Lamps & Components Limited and Zhuang Jianyi
among shareholders above
                                            are 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.

                                            Individual Shareholder Peng Weiyan held 000 shares in the Company through her common
Top    10     common         shareholders
                                            stock accounts and held 8,546,042 shares in the Company through her accounts of collateral
conducting securities margin trading
                                            securities for margin trading, representing a total holding of 8,546,042 shares in the
(if any)
                                            Company.

Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common

shareholders of the Company conducted any promissory repo during the Reporting Period.

□ Yea √ No

No such cases in the Reporting Period.


2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End

□ Applicable √ Not applicable



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Foshan Electrical and Lighting Co., Ltd.                                                             Third Quarter Report 2017




                                               Part III Significant Events

I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes

√ Applicable □ Not applicable
                                                                                                                          Unit: RMB
                              September 30,        December 31,
          Item             2017/January-Septemb 2016/January-Septemb   Change                    Main reason for change
                                 er 2017              er 2016
Monetary funds                862,717,104.55      1,479,283,642.54     -41.68%    Cash dividend distribution during this year
Notes receivable              46,511,928.45        67,925,843.74       -31.53%    Increase in bank acceptance bills received and
                                                                                  used to pay to suppliers with endorsement
Accounts receivable           835,008,250.20       595,257,954.00      40.28%     Increased net sales and credit period adjustments
                                                                                  for domestic customers
Prepayments                   45,923,008.15        30,292,007.11       51.60%     Increase in prepayments to suppliers
Interest receivable            8,203,896.29         4,612,406.80       77.87%     Increase in undue bank interest
Other receivables             77,025,711.18        11,977,660.58       543.08%    Outstanding amount resulted from selling
                                                                                  interests in associated company, and receivable
                                                                                  VAT rebates for exports
Other current assets          755,215,346.30       441,205,461.72      71.17%     Increase in undue bank’s wealth management
                                                                                  products
Construction          in      157,263,729.32       71,479,325.91       120.01%    Accelerated expansion of plants in Gaoming
progress
Disposal    of    fixed        1,299,216.85              -                /       Disposal of fixed assets uncompleted
assets
Long-term deferred             9,476,005.79         6,897,119.78       37.39%     Higher expenditure on decoration
expense
Payroll payable               62,849,578.17        96,021,156.06       -34.55%    Last year’s year-end bonuses for employees
                                                                                  were paid in current period
Taxes payable                 72,837,956.78        138,282,644.72      -47.33%    Income from sale of shares of Guoxuan
                                                                                  High-tech stock had resulted in increase in
                                                                                  income taxes in fourth quarter of last year, and
                                                                                  corresponding income tax was paid in current
                                                                                  period
Dividend payable                    -               6,287,923.09       -100.00%   Dividend distribution by subsidiaries
Taxes and surtaxes                                                                As per Finance & Tax Document [2016] No. 22,
                              30,774,732.41        17,649,693.22       74.36%     vehicle and vessel use tax has been included in
                                                                                  taxes and surtaxes since May 1, 2016
Finance costs                 -6,116,872.70        -12,127,352.31      49.56%     Greater foreign exchange losses caused by RMB
                                                                                  appreciation


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Foshan Electrical and Lighting Co., Ltd.                                                     Third Quarter Report 2017


Investment income                                                           Sale of interests in associate Qinghai Fozhao
                            499,104,903.93    18,682,665.76     2571.49%    and of shares of Guoxuan High-tech stock in
                                                                            current period
Operating margin            795,691,152.75    344,516,114.27    130.96%     Increased main operating margin and investment
                                                                            income
Non-operating                6,401,542.43      1,805,821.67     254.49%     Increased government subsidies
income
Non-operating                4,849,532.49      7,092,231.89      -31.62%    Loss on inventories due to flooding in same
expense                                                                     period of last year
Gross margin                797,243,162.69    339,229,704.05    135.02%     Increased main operating margin and investment
                                                                            income
Income tax expense          114,494,430.09    58,506,429.76      95.70%     Increase in gross margin
Net margin                  682,748,732.60    280,723,274.29    143.21%     Increased main operating margin and investment
                                                                            income
Net              margin     678,531,026.31    280,104,920.60    142.24%     Increased main operating margin and investment
attributable           to                                                   income
owners of the parent
Minority        interests    4,217,706.29       618,353.69      582.09%     Increased earnings of subsidiaries
income
Total comprehensive                                                         Increase in net margin attributable to owners of
                            469,538,225.37    26,222,196.02     1690.61%
income                                                                      the parent

Earnings per share                                                          Increase in net margin attributable to owners of
                                0.5334            0.2202        142.23%
                                                                            the parent

Net cash flows from                                                         Income from sale of shares of Guoxuan
operating activities                                                        High-tech stock had resulted in increase in
                            -103,806,526.11   324,048,913.00    -132.03%    income taxes in fourth quarter of last year, and
                                                                            corresponding income tax was paid in current
                                                                            period; and prepayments to suppliers increased
Net cash flows from                                                         Sale of interests in associate Qinghai Fozhao
investing activities        12,659,213.62     -605,074,904.70   102.09%     and of shares of Guoxuan High-tech stock in
                                                                            current period
Net cash flows from                                                         Significant increase in cash dividends paid
                            -522,068,416.83   -15,935,708.57    -3176.09%
financing activities
Effect     of    foreign                                                    Greater foreign exchange losses caused by RMB
exchange            rate                                                    appreciation
                             -3,350,808.67      833,739.33      -501.90%
changes on cash and
cash equivalents
Net increase in cash                                                        Decrease in net cash flows from operating and
                            -616,566,537.99   -296,127,960.94   -108.21%
and cash equivalents                                                        financing activities




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Foshan Electrical and Lighting Co., Ltd.                                                 Third Quarter Report 2017


II Progress, Influence and Solutions Associated with Significant Events


√ Applicable □ Not applicable

1. On June 27, 2017, the Company signed an Equity Transfer Agreement with KEDA Clean Energy Co., Ltd.,

transferring the Company’s 38% stake in Qinghai Fozhao Lithium Energy Exploitation Co., Ltd. to the latter for

RMB189.8176 million. On August 28, 2017, the equity transfer formalities were completed with the industrial

and commercial administration. The Company recognized, on this transaction, an investment income of

RMB184.2847 million and a net margin of RMB160.4804million (net of tax) for the third quarter of 2017.

2. During the period July 6, 2017 through August 1, 2017, the Company sold 8,770,400 (approximately 0.9994%)

shares of the Guoxuan High-tech stock through bidding at the relevant stock exchange for RMB304,428,520.24 in

total. Excluding the related costs and tax, the Company obtained, from this transaction, an investment income of

RMB270.9981 million and a net margin of RMB228.9578 million for the third quarter of 2017.


III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
During Reporting Period


□ Applicable √ Not applicable

No such cases in the Reporting Period.


IV Forecast of 2017 Annual Operating Results


Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period

the beginning of the current year through the end of the next reporting period, as well as the reasons:

□ Applicable √ Not applicable


V Securities Investments


□ Applicable √ Not applicable

No such cases in the Reporting Period.


VI Investments in Derivative Financial Instruments


□ Applicable √ Not applicable

No such cases in the Reporting Period.

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Foshan Electrical and Lighting Co., Ltd.                                                 Third Quarter Report 2017


VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period

√ Applicable □ Not applicable
        Date of visit                 Way of visit           Type of visitor                    About

                                                                               See www.cninfo.com.cn – EasyIR –
07/06/2017                    By one-on-one meeting   Institution
                                                                               Investor Relations

08/30/2017                    By phone                Institution


VIII Irregularities Arising from Provision of Guarantees for Third Parties


□ Applicable √ Not applicable

No such cases in the Reporting Period.


IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes


□ Applicable √ Not applicable

No such cases in the Reporting Period.


X Targeted Measures Taken to Help People Lift Themselves out of Poverty

The Company did not take such measures in the third quarter of the year and has no such plans for now.




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Foshan Electrical and Lighting Co., Ltd.                                                    Third Quarter Report 2017




                                          Part IV Financial Statements

I Financial Statements

1. Consolidated Balance Sheet

Prepared by Foshan Electrical and Lighting Co., Ltd.
                                                       September 30, 2017
                                                                                                                Unit: RMB

                       Item                            September 30, 2017                   December 31, 2016

Current assets:

  Monetary funds                                                       862,717,104.55                   1,479,283,642.54

  Settlement reserve

  Interbank lendings

  Financial assets at fair value through
gains/losses

  Derivative financial assets

  Notes receivable                                                          46,511,928.45                  67,925,843.74

  Accounts receivable                                                  835,008,250.20                     595,257,954.00

  Prepayments                                                           45,923,008.15                      30,292,007.11

  Premiums receivable

  Reinsurance premiums receivable

  Receivable reinsurance contract reserve

  Interest receivable                                                        8,203,896.29                   4,612,406.80

  Dividends receivable

  Other accounts receivable                                                 77,025,711.18                  11,977,660.58

  Financial       assets      purchased   under
agreements to resell

  Inventories                                                          696,098,069.44                     753,681,605.19

  Assets held for sale

  Non-current assets due within one year

  Other current assets                                                 755,215,346.30                     441,205,461.72

Total current assets                                                  3,326,703,314.56                  3,384,236,581.68

Non-current assets:

  Loans and advances to customers


                                                                                                                        11
Foshan Electrical and Lighting Co., Ltd.                           Third Quarter Report 2017


  Available-for-sale financial assets           1,487,028,388.75               1,732,150,857.01

  Held-to-maturity investments

  Long-term accounts receivable

  Long-term equity investments                   178,570,902.09                  210,394,932.69

  Investment property

  Fixed assets                                   467,695,253.63                  446,006,929.66

  Construction in progress                       157,263,729.32                   71,479,325.91

  Engineering materials

  Disposal of fixed assets                          1,299,216.85

  Productive living assets

  Oil-gas assets

  Intangible assets                              157,093,681.84                  160,330,395.13

  R&D expense

  Goodwill

  Long-term deferred expense                        9,476,005.79                   6,897,119.78

  Deferred income tax assets                      34,747,640.13                   43,547,918.44

  Other non-current assets                        43,472,231.00                   45,125,340.00

Total non-current assets                        2,536,647,049.40               2,715,932,818.62

Total assets                                    5,863,350,363.96               6,100,169,400.30

Current liabilities:

  Short-term borrowings

  Borrowings from Central Bank

  Money deposits accepted and inter-bank
deposits

  Interbank borrowings

  Financial liabilities at fair value through
gains/losses

  Derivative financial liabilities

  Notes payable

  Accounts payable                               527,220,341.52                  552,255,512.33

  Advances received                               42,661,372.56                   41,180,818.13

  Financial assets sold for repurchase

  Fees and commissions payable

  Payroll payable                                 62,849,578.17                   96,021,156.06

  Taxes payable                                   72,837,956.78                  138,282,644.72



                                                                                               12
Foshan Electrical and Lighting Co., Ltd.                         Third Quarter Report 2017


  Interest payable

  Dividends payable                                                              6,287,923.09

  Other accounts payable                        42,588,320.54                   50,104,338.81

  Reinsurance premiums payable

  Insurance contract reserve

  Payables for acting trading of securities

  Payables for acting underwriting of
securities

  Liabilities held for sale

  Non-current liabilities due within one
year

  Other current liabilities

Total current liabilities                      748,157,569.57                  884,132,393.14

Non-current liabilities:

  Long-term borrowings

  Bonds payable

       Of which: Preference shares

                    Perpetual bonds

  Long-term accounts payable

  Long-term payroll payable

  Special payables

  Provisions

  Deferred income                               11,988,518.55                   10,449,768.49

  Deferred income tax liabilities              162,487,211.47                  200,112,595.11

  Other non-current liabilities

Total non-current liabilities                  174,475,730.02                  210,562,363.60

Total liabilities                              922,633,299.59                1,094,694,756.74

Owners’ equity:

  Share capital                               1,272,132,868.00               1,272,132,868.00

  Other equity instruments

       Of which: Preference shares

                    Perpetual bonds

  Capital reserve                              285,821,459.07                  285,821,459.07

  Less: Treasury shares

  Other comprehensive income                   920,760,865.02                1,133,971,372.25



                                                                                             13
Foshan Electrical and Lighting Co., Ltd.                                                    Third Quarter Report 2017


  Special reserve

  Surplus reserve                                                 733,924,951.81                          733,924,951.81

  Provisions for general risks

  Retained earnings                                             1,708,851,147.74                        1,564,615,925.99

Equity attributable to owners of the parent                     4,921,491,291.64                        4,990,466,577.12

  Minority interests                                               19,225,772.73                           15,008,066.44

Total owners’ equity                                           4,940,717,064.37                        5,005,474,643.56

Total liabilities and owners’ equity                           5,863,350,363.96                        6,100,169,400.30

Legal representative: He Yong                                           Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

2. Parent Company Balance Sheet
                                                                                                                Unit: RMB

                       Item                        September 30, 2017                       December 31, 2016

Current assets:

  Monetary funds                                                  667,157,114.92                        1,235,417,964.88

  Financial assets at fair value through
gains/losses

  Derivative financial assets

  Notes receivable                                                 46,261,928.45                           66,222,840.44

  Accounts receivable                                             839,280,380.89                          611,855,496.90

  Prepayments                                                      82,556,888.67                          117,217,953.23

  Interest receivable                                               6,801,320.95                            3,590,629.01

  Dividends receivable                                                                                     14,671,820.57

  Other accounts receivable                                       147,874,521.01                           56,714,849.84

  Inventories                                                     622,228,347.25                          717,097,516.25

  Assets held for sale

  Non-current assets due within one year

  Other current assets                                            644,989,742.55                          379,932,325.87

Total current assets                                            3,057,150,244.69                        3,202,721,396.99

Non-current assets:

  Available-for-sale financial assets                           1,487,028,388.75                        1,732,150,857.01

  Held-to-maturity investments

  Long-term accounts receivable

  Long-term equity investments                                    662,168,191.85                          693,992,222.45



                                                                                                                        14
Foshan Electrical and Lighting Co., Ltd.                           Third Quarter Report 2017


  Investment property

  Fixed assets                                   389,773,077.10                  375,075,102.44

  Construction in progress                       156,507,082.15                   69,589,510.14

  Engineering materials

  Disposal of fixed assets                          1,298,243.60

  Productive living assets

  Oil-gas assets

  Intangible assets                              113,443,209.63                  117,017,633.92

  R&D expense

  Goodwill

  Long-term deferred expense                        9,028,211.01                   6,897,119.78

  Deferred income tax assets                      29,075,542.10                   37,790,043.38

  Other non-current assets                        43,011,520.00                   44,519,790.00

Total non-current assets                        2,891,333,466.19               3,077,032,279.12

Total assets                                    5,948,483,710.88               6,279,753,676.11

Current liabilities:

  Short-term borrowings

  Financial liabilities at fair value through
gains/losses

  Derivative financial liabilities

  Notes payable

  Accounts payable                               741,919,260.89                  701,814,818.26

  Advances received                               41,580,168.01                   38,406,798.91

  Payroll payable                                 37,021,297.12                   66,764,581.34

  Taxes payable                                   58,163,522.65                  121,939,572.62

  Interest payable

  Dividends payable

  Other accounts payable                         115,761,425.55                  258,368,416.59

  Liabilities held for sale

  Non-current liabilities due within one year

  Other current liabilities

Total current liabilities                        994,445,674.22                1,187,294,187.72

Non-current liabilities:

  Long-term borrowings

  Bonds payable


                                                                                               15
Foshan Electrical and Lighting Co., Ltd.                                                         Third Quarter Report 2017


     Of which: Preference shares

                    Perpetual bonds

  Long-term payables

  Long-term payroll payable

  Special payables

  Provisions

  Deferred income                                                         11,639,768.34                          9,984,768.34

  Deferred income tax liabilities                                        162,487,211.47                        200,112,595.11

  Other non-current liabilities

Total non-current liabilities                                            174,126,979.81                        210,097,363.45

Total liabilities                                                    1,168,572,654.03                        1,397,391,551.17

Owners’ equity:

  Share capital                                                      1,272,132,868.00                        1,272,132,868.00

  Other equity instruments

     Of which: Preference shares

                    Perpetual bonds

  Capital reserve                                                        293,425,065.15                        293,425,065.15

  Less: Treasury shares

  Other comprehensive income                                             920,760,865.02                      1,133,971,372.25

  Special reserve

  Surplus reserve                                                        733,924,951.81                        733,924,951.81

  Retained earnings                                                  1,559,667,306.87                        1,448,907,867.73

Total owners’ equity                                                4,779,911,056.85                        4,882,362,124.94

Total liabilities and owners’ equity                                5,948,483,710.88                        6,279,753,676.11

Legal representative: He Yong                                                Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

3. Consolidated Income Statement for July-September
                                                                                                                    Unit: RMB

                     Item                          July-September 2017                        July-September 2016

1. Operating revenue                                              926,328,050.98                               819,510,785.90

Including: Net sales                                              926,328,050.98                               819,510,785.90

        Interest revenue

        Premium revenue

        Fee and commission revenue


                                                                                                                             16
Foshan Electrical and Lighting Co., Ltd.                          Third Quarter Report 2017


2. Operating expenses                           888,962,375.54                  729,336,869.53

Including: Cost of sales                        760,791,362.20                  624,355,439.15

         Interest expense

         Fee and commission expense

         Surrenders

         Net claims paid

         Net    amount      provided       as
insurance contract reserve

         Expenditure on policy dividends

         Reinsurance premium expense

         Taxes and surtaxes                      10,388,130.08                    5,398,114.76

         Selling expense                         67,350,699.34                   69,476,830.23

         Administrative expense                  47,679,268.38                   46,549,040.03

         Finance costs                              999,034.66                   -5,681,599.27

         Asset impairment losses                   1,753,880.88                 -10,760,955.37

Add: Gains on fair value changes (“-”
for losses)

      Investment income (“-” for losses)      485,095,621.91                    4,961,917.99

      Including: Share of gains/losses of
                                                184,214,592.25                       -6,569.56
associates and joint ventures

      Exchange gains (“-” for losses)

      Other income

3. Operating margin (“-” for losses)          522,461,297.35                   95,135,834.36

      Add: Non-operating income                     379,146.55                      230,805.09

         Including: Gains on disposal of
non-current assets

      Less: Non-operating expense                    79,758.80                    2,175,174.95

         Including: Losses on disposal of
                                                                                    776,026.47
non-current assets

4. Gross margin (“-” for losses)              522,760,685.10                   93,191,464.50

      Less: Income tax expense                   71,896,928.74                   19,080,452.47

5. Net margin (“-” for losses)                450,863,756.36                   74,111,012.03

      Attributable to owners of the
                                                450,036,365.74                   73,179,107.88
parent

      Attributable to minority interests            827,390.62                      931,904.15

6. Other comprehensive income, net of
                                                -236,235,978.37                -394,818,856.95
tax



                                                                                              17
Foshan Electrical and Lighting Co., Ltd.                                                          Third Quarter Report 2017


     Other comprehensive income, net
of tax attributable to owners of the                                -236,235,978.37                             -394,818,856.95
parent
         6.1       Other      comprehensive
income that will not be reclassified into
gains/losses
           6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
           6.1.2      Share       of     other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
         6.2       Other      comprehensive
income to be subsequently reclassified                              -236,235,978.37                             -394,818,856.95
into gains/losses
           6.2.1      Share       of     other
comprehensive income of investees that
                                                                     -21,831,908.42
will be reclassified into gains/losses
under equity method
           6.2.2 Gains/Losses on fair
value changes of available-for-sale                                 -214,404,069.95                             -394,818,856.95
financial assets
           6.2.3          Gains/Losses     on
reclassifying                held-to-maturity
investments        into     available-for-sale
financial assets
           6.2.4 Effective gains/losses
on cash flow hedges
           6.2.5     Currency      translation
differences

           6.2.6 Other

     Other comprehensive income, net
of tax attributable to minority interests

7. Total comprehensive income                                        214,627,777.99                             -320,707,844.92

     Attributable to owners of the
                                                                     213,800,387.37                             -321,639,749.07
parent

     Attributable to minority interests                                  827,390.62                                  931,904.15

8. Earnings per share

     8.1 Basic earnings per share                                            0.3538                                       0.0575

     8.2 Diluted earnings per share                                          0.3538                                       0.0575

Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before


                                                                                                                               18
Foshan Electrical and Lighting Co., Ltd.                                                         Third Quarter Report 2017



the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.

Legal representative: He Yong                                                Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

4. Parent Company Income Statement for July-September
                                                                                                                     Unit: RMB

                   Item                            July-September 2017                        July-September 2016

1. Operating revenue                                               903,446,254.75                              831,582,855.08

  Less: Operating expenses                                         763,482,738.06                              637,457,080.01

      Taxes and surtaxes                                             7,416,305.60                                2,932,685.10

      Selling expense                                               62,278,091.63                               68,412,649.71

      Administrative expense                                        46,031,248.74                               45,821,532.99

      Finance costs                                                  2,362,018.02                                -4,467,105.10

      Asset impairment losses                                        1,617,784.82                              -10,827,360.48

  Add: Gains on fair value changes (“-”
for losses)

      Investment income (“-” for loss)                           484,167,951.90                                4,961,917.99

      Including: Share of gains/losses of
                                                                   184,214,592.25                                    -6,569.56
associates and joint ventures

      Other income

2. Operating margin (“-” for losses)                             504,426,019.78                               97,215,290.84

  Add: Non-operating income                                              321,854.74                                 158,665.11

      Including: Gains on disposal of
non-current assets

  Less: Non-operating expense                                             49,663.66                              2,113,816.96

      Including: Losses on disposal of
                                                                                                                    744,668.48
non-current assets

3. Gross margin (“-” for losses)                                 504,698,210.86                               95,260,138.99

  Less: Income tax expense                                          67,376,029.03                               18,378,235.96

4. Net margin (“-” for losses)                                   437,322,181.83                               76,881,903.03

5. Other comprehensive income, net of
                                                                  -236,235,978.37                             -394,818,856.95
tax
  5.1 Other comprehensive income that
will not be reclassified into gains and
losses
      5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement


                                                                                                                             19
Foshan Electrical and Lighting Co., Ltd.                                                        Third Quarter Report 2017


       5.1.2       Share        of        other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
     5.2 Other comprehensive income to
be     subsequently        reclassified    into                    -236,235,978.37                           -394,818,856.95
gains/losses
       5.2.1       Share        of        other
comprehensive income of investees that
                                                                    -21,831,908.42
will be reclassified into gains/losses
under equity method
       5.2.2 Gains/Losses on fair value
changes of available-for-sale financial                            -214,404,069.95                           -394,818,856.95
assets
       5.2.3         Gains/Losses            on
reclassifying                held-to-maturity
investments        into     available-for-sale
financial assets
       5.2.4 Effective gains/losses on
cash flow hedges
       5.2.5       Currency          translation
differences

       5.2.6 Other

6. Total comprehensive income                                       201,086,203.46                           -317,936,953.92

7. Earnings per share

      7.1 Basic earnings per share

      7.2 Diluted earnings per share

Legal representative: He Yong                                               Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

5. Consolidated Income Statement for January-September
                                                                                                                     Unit: RMB

                     Item                          January-September 2017                   January-September 2016

1. Operating revenue                                              2,950,253,633.82                          2,575,181,713.34

Including: Net sales                                              2,950,253,633.82                          2,575,181,713.34

         Interest revenue

         Premium revenue

         Fee and commission revenue

2. Operating expenses                                             2,653,667,385.00                          2,249,348,264.83




                                                                                                                            20
Foshan Electrical and Lighting Co., Ltd.                           Third Quarter Report 2017


Including: Cost of sales                        2,307,723,142.05               1,947,337,999.85

         Interest expense

         Fee and commission expense

         Surrenders

         Net claims paid

         Net    amount      provided       as
insurance contract reserve

         Expenditure on policy dividends

         Reinsurance premium expense

         Taxes and surtaxes                       30,774,732.41                   17,649,693.22

         Selling expense                         149,002,693.03                  142,728,637.64

         Administrative expense                  146,470,089.98                  128,666,867.97

         Finance costs                             -6,116,872.70                 -12,127,352.31

         Asset impairment losses                  25,813,600.23                   25,092,418.46

Add: Gains on fair value changes (“-”
for losses)

      Investment income (“-” for losses)       499,104,903.93                   18,682,665.76

      Including: Share of gains/losses of
                                                 185,758,558.04                      -26,209.68
associates and joint ventures

      Exchange gains (“-” for losses)

      Other income

3. Operating margin (“-” for losses)           795,691,152.75                  344,516,114.27

      Add: Non-operating income                     6,401,542.43                   1,805,821.67

         Including: Gains on disposal of
                                                                                      20,253.97
non-current assets

      Less: Non-operating expense                   4,849,532.49                   7,092,231.89

         Including: Losses on disposal of
                                                    4,255,164.43                     999,118.72
non-current assets

4. Gross margin (“-” for losses)               797,243,162.69                  339,229,704.05

      Less: Income tax expense                   114,494,430.09                   58,506,429.76

5. Net margin (“-” for losses)                 682,748,732.60                  280,723,274.29

      Attributable to owners of the
                                                 678,531,026.31                  280,104,920.60
parent

      Attributable to minority interests            4,217,706.29                     618,353.69

6. Other comprehensive income, net of
                                                -213,210,507.23                 -254,501,078.27
tax
      Other comprehensive income, net
                                                -213,210,507.23                 -254,501,078.27
of tax attributable to owners of the


                                                                                               21
Foshan Electrical and Lighting Co., Ltd.                                                          Third Quarter Report 2017


parent
         6.1       Other      comprehensive
income that will not be reclassified into
gains/losses
           6.1.1 Changes in net liabilities
or assets with a defined benefit plan
upon re-measurement
           6.1.2      Share       of     other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
         6.2       Other      comprehensive
income to be subsequently reclassified                              -213,210,507.23                             -254,501,078.27
into gains/losses
           6.2.1      Share       of     other
comprehensive income of investees that
                                                                     -21,831,908.42
will be reclassified into gains/losses
under equity method
           6.2.2 Gains/Losses on fair
value changes of available-for-sale                                 -191,378,598.81                             -255,315,043.41
financial assets
           6.2.3          Gains/Losses     on
reclassifying                held-to-maturity
investments        into     available-for-sale
financial assets
           6.2.4 Effective gains/losses
on cash flow hedges
           6.2.5     Currency      translation
differences

           6.2.6 Other                                                                                               813,965.14

     Other comprehensive income, net
of tax attributable to minority interests

7. Total comprehensive income                                       469,538,225.37                                26,222,196.02

     Attributable to owners of the
                                                                    465,320,519.08                                25,603,842.33
parent

     Attributable to minority interests                                4,217,706.29                                  618,353.69

8. Earnings per share

     8.1 Basic earnings per share                                            0.5334                                      0.2202

     8.2 Diluted earnings per share                                          0.5334                                      0.2202

Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before

the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.



                                                                                                                               22
Foshan Electrical and Lighting Co., Ltd.                                                        Third Quarter Report 2017



Legal representative: He Yong                                               Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

6. Parent Company Income Statement for January-September
                                                                                                                     Unit: RMB

                   Item                            January-September 2017                   January-September 2016

1. Operating revenue                                              2,883,642,659.04                          2,614,040,071.22

  Less: Operating expenses                                        2,313,440,394.16                          1,993,164,589.95

      Taxes and surtaxes                                             21,444,604.66                             10,758,187.57

      Selling expense                                               136,340,918.02                            141,048,891.13

      Administrative expense                                        144,429,787.11                            128,230,793.51

      Finance costs                                                  -2,112,235.62                              -8,265,724.94

      Asset impairment losses                                        24,670,993.37                             24,960,867.30

  Add: Gains on fair value changes (“-”
for losses)

      Investment income (“-” for loss)                            497,071,428.38                             18,682,665.76

      Including: Share of gains/losses of
                                                                    185,758,558.04                                -26,209.68
associates and joint ventures

      Other income

2. Operating margin (“-” for losses)                              742,499,625.72                            342,825,132.46

  Add: Non-operating income                                           6,068,688.15                              1,548,088.24

      Including: Gains on disposal of
                                                                                                                     9,401.71
non-current assets

  Less: Non-operating expense                                         2,091,041.16                              5,850,398.69

      Including: Losses on disposal of
                                                                      1,528,785.79                                937,680.22
non-current assets

3. Gross margin (“-” for losses)                                  746,477,272.71                            338,522,822.01

  Less: Income tax expense                                          101,422,029.01                             56,240,423.99

4. Net margin (“-” for losses)                                    645,055,243.70                            282,282,398.02

5. Other comprehensive income, net of
                                                                   -213,210,507.23                           -255,315,043.41
tax
  5.1 Other comprehensive income that
will not be reclassified into gains and
losses
      5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
      5.1.2      Share       of      other
comprehensive income of investees that

                                                                                                                            23
Foshan Electrical and Lighting Co., Ltd.                                                            Third Quarter Report 2017


cannot be reclassified into gains/losses
under equity method
     5.2 Other comprehensive income to
be     subsequently        reclassified         into                   -213,210,507.23                           -255,315,043.41
gains/losses
       5.2.1       Share           of          other
comprehensive income of investees that
                                                                        -21,831,908.42
will be reclassified into gains/losses
under equity method
       5.2.2 Gains/Losses on fair value
changes of available-for-sale financial                                -191,378,598.81                           -255,315,043.41
assets
       5.2.3         Gains/Losses                on
reclassifying                held-to-maturity
investments        into     available-for-sale
financial assets
       5.2.4 Effective gains/losses on
cash flow hedges
       5.2.5       Currency             translation
differences

       5.2.6 Other

6. Total comprehensive income                                           431,844,736.47                             26,967,354.61

7. Earnings per share

      7.1 Basic earnings per share

      7.2 Diluted earnings per share

Legal representative: He Yong                                                   Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

7. Consolidated Cash Flow Statement for January-September
                                                                                                                         Unit: RMB

                     Item                              January-September 2017                   January-September 2016

1. Cash generated by or used in
operating activities:
     Cash      generated      by        sale     of
                                                                      2,689,003,504.65                          2,312,207,975.75
commodities and rendering of service
     Net increase in money deposits from
customers and interbank placements
     Net increase in loans from Central
Bank
     Net increase in funds borrowed from
other financial institutions



                                                                                                                                24
Foshan Electrical and Lighting Co., Ltd.                             Third Quarter Report 2017


  Cash       received       as    premiums   of
original insurance contracts
  Net cash generated by reinsurance
business
  Net increase in deposits of policy
holders and investment fund
  Net increase in disposal of financial
assets at fair value through gains/losses
  Interest,     fees        and    commissions
received

  Net increase in interbank borrowings

  Net increase in funds in repurchase
business

  Tax rebates received                              74,944,574.17                   58,629,989.95

  Cash generated by other operating
                                                    40,868,251.39                   33,828,787.79
activities
Subtotal of cash generated by operating
                                                  2,804,816,330.21               2,404,666,753.49
activities

  Cash paid for goods and services                1,873,635,380.49               1,340,524,458.10

  Net increase in loans and advances to
customers
  Net increase in funds deposited in
Central Bank and interbank placements
  Cash paid for claims of original
insurance contracts

  Interest, fees and commissions paid

  Cash paid as policy dividends

  Cash paid to and for employees                   538,117,713.71                  442,206,958.62

  Taxes paid                                       328,954,823.22                  176,309,686.13

  Cash       used      in    other    operating
                                                   167,914,938.90                  121,576,737.64
activities
Subtotal of cash used in operating
                                                  2,908,622,856.32               2,080,617,840.49
activities

Net cash from operating activities                 -103,806,526.11                 324,048,913.00

2. Cash generated by or used in
investing activities:

  Cash generated by disinvestments                  19,221,175.20                        7,005.00

  Cash received as investment income               479,129,177.90                   17,173,398.25

  Net cash generated by disposal of
fixed assets, intangible assets and other             1,626,000.00                      73,000.00
long-term assets


                                                                                                 25
Foshan Electrical and Lighting Co., Ltd.                           Third Quarter Report 2017


  Net cash generated by disposal of
subsidiaries or other business units
     Cash generated by other investing
activities
Subtotal of cash generated by investing
                                                 499,976,353.10                   17,253,403.25
activities
  Cash paid to acquire fixed assets,
intangible assets and other long-term            177,317,139.48                   68,923,429.83
assets

  Cash paid for investments                      310,000,000.00                  545,865,000.00

  Net increase in pledged loans

  Net cash paid to acquire subsidiaries
and other business units
     Cash used in other investing
                                                                                   7,539,878.12
activities
Subtotal of cash used in investing
                                                 487,317,139.48                  622,328,307.95
activities

Net cash from investing activities                12,659,213.62                 -605,074,904.70

3. Cash generated by or used in
financing activities:
    Cash        received      as       capital
contributions
    Including:      Cash    received    from
minority shareholder investments by
subsidiaries

    Cash received as borrowings

    Cash generated by issuance of
bonds
    Cash generated by other financing
activities
Subtotal of cash generated by financing
activities

    Repayment of borrowings

    Cash paid for interest expenses and
                                                 522,068,416.83                   15,935,708.57
distribution of dividends or profit
     Including: dividends or profit paid
                                                    5,660,290.78
by subsidiaries to minority interests
    Cash     used    in    other   financing
activities
Sub-total of cash used in financing
                                                 522,068,416.83                   15,935,708.57
activities

Net cash from financing activities               -522,068,416.83                 -15,935,708.57


                                                                                               26
Foshan Electrical and Lighting Co., Ltd.                                                        Third Quarter Report 2017


4. Effect of foreign exchange rate
                                                                     -3,350,808.67                                833,739.33
changes on cash and cash equivalents
5. Net increase in cash and cash
                                                                   -616,566,537.99                           -296,127,960.94
equivalents
     Add: Opening balance of cash and
                                                                  1,479,283,642.54                            933,546,108.37
cash equivalents
6. Closing balance of cash and cash
                                                                    862,717,104.55                            637,418,147.43
equivalents

Legal representative: He Yong                                               Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan

8. Parent Company Cash Flow Statement for January-September
                                                                                                                     Unit: RMB

                    Item                           January-September 2017                   January-September 2016

1. Cash generated by or used in
operating activities:
  Cash       generated      by     sale   of
                                                                  2,602,335,552.74                          2,340,439,622.75
commodities and rendering of service

  Tax rebates received                                               74,944,574.17                             58,629,989.95

  Cash generated by other operating
                                                                     33,784,521.55                             28,947,588.49
activities
Subtotal of cash generated by operating
                                                                  2,711,064,648.46                          2,428,017,201.19
activities

  Cash paid for goods and services                                2,191,779,261.68                          1,675,836,030.87

  Cash paid to and for employees                                    236,224,216.19                            170,220,863.77

  Taxes paid                                                        242,191,570.41                            101,878,975.55

  Cash       used   in     other   operating
                                                                    172,691,140.62                            117,489,938.22
activities
Subtotal of cash used in operating
                                                                  2,842,886,188.90                          2,065,425,808.41
activities

Net cash from operating activities                                 -131,821,540.44                            362,591,392.78

2. Cash generated by or used in
investing activities:

  Cash generated by disinvestments                                   19,221,175.20                                    7,005.00

  Cash received as investment income                                492,162,728.87                             17,173,398.25

  Net cash generated by disposal of
fixed assets, intangible assets and other                             1,580,000.00                                   14,000.00
long-term assets
  Net cash generated by disposal of
subsidiaries or other business units



                                                                                                                            27
Foshan Electrical and Lighting Co., Ltd.                           Third Quarter Report 2017


  Cash generated by other investing
activities
Subtotal of cash generated by investing
                                                 512,963,904.07                   17,194,403.25
activities
  Cash paid to acquire fixed assets,
intangible assets and other long-term            164,644,278.87                   63,757,043.28
assets

  Cash paid for investments                      265,000,000.00                  545,865,000.00

  Net cash paid to acquire subsidiaries
and other business units
  Cash       used    in    other   investing
                                                                                   7,500,000.00
activities
Subtotal of cash used in investing
                                                 429,644,278.87                  617,122,043.28
activities

Net cash from investing activities                83,319,625.20                 -599,927,640.03

3. Cash generated by or used in
financing activities:
    Cash        received      as      capital
contributions

    Cash received as borrowings

    Cash generated by issuance of
bonds
    Cash generated by other financing
activities
Subtotal of cash generated by financing
activities

    Repayment of borrowings

    Cash paid for interest expenses and
                                                 516,408,126.05                   15,935,708.57
distribution of dividends or profit
    Cash      used   in    other   financing
activities
Sub-total of cash used in financing
                                                 516,408,126.05                   15,935,708.57
activities

Net cash from financing activities              -516,408,126.05                  -15,935,708.57

4. Effect of foreign exchange rate
                                                   -3,350,808.67                     833,739.14
changes on cash and cash equivalents
5. Net increase in cash and cash
                                                -568,260,849.96                 -252,438,216.68
equivalents
     Add: Opening balance of cash and
                                                1,235,417,964.88                 633,291,177.30
cash equivalents
6. Closing balance of cash and cash
                                                 667,157,114.92                  380,852,960.62
equivalents



                                                                                               28
Foshan Electrical and Lighting Co., Ltd.                               Third Quarter Report 2017



Legal representative: He Yong                      Accounting head for this Report: Liu Xingming

Head of the accounting department: Tang Qionglan


II Auditor’s Report

Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.




                                                             The Board of Directors

                                                     Foshan Electrical and Lighting Co., Ltd.

                                                                   October 25, 2017




                                                                                                   29