Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2019
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
FIRST QUARTER REPORT 2019
April 2019
1
Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
He Yong, the Company’s legal representative, Liu Xingming, the Company’s General
Manager, and Tang Qionglan, the Company’s Chief Financial Officer (CFO) hereby
guarantee that the Financial Statements carried in this Report are factual, accurate and
complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
Q1 2019 Q1 2018 Change (%)
Operating revenue (RMB) 889,232,750.52 1,123,376,512.26 -20.84%
Net profit attributable to the listed
86,659,035.18 96,552,712.99 -10.25%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 74,681,526.84 96,033,861.87 -22.23%
items (RMB)
Net cash flows from operating activities
29,966,955.13 124,450,627.91 -75.92%
(RMB)
Basic earnings per share (RMB/share) 0.0619 0.0690 -10.29%
Diluted earnings per share (RMB/share) 0.0619 0.0690 -10.29%
Weighted average return on equity (%) 1.82% 2.00% -0.18%
31 March 2019 31 December 2018 Change (%)
Total assets (RMB) 5,799,151,823.18 5,588,166,699.30 3.78%
Equity attributable to the listed company’s
4,645,187,669.60 4,319,259,418.46 7.55%
shareholders (RMB)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item Q1 2019 Note
Gain or loss on disposal of non-current assets (inclusive of
-630.50
impairment allowance write-offs)
Government subsidies charged to the profit/loss for this Reporting
Period (except for the government grants closely related to the
163,829.98
business of the Company and given at a fixed quota or amount in
accordance with the State’s uniform standards)
Gain or loss on fair-value changes in trading financial assets and Investment income received from
liabilities and derivative financial assets and liabilities & 13,927,800.00 selling the equities of Chengdu
investment income from disposal of trading financial assets and Hongbo Industry Co., Ltd in the
3
liabilities and derivative financial assets and liabilities, and other Reporting Period
creditors’ investment (exclusive of effective portion of hedges
that arise in the Company’s ordinary course of business)
Non-operating income and expense other than above 20,201.65
Less: Income tax effects 2,130,749.24
Non-controlling interests effects (net of tax) 2,943.55
Total 11,977,508.34 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 31 March 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred shareholders
Number of ordinary shareholders at the
88,597 with resumed voting rights at the 0
period-end
period-end (if any)
Top 10 shareholders
Nature of Shareholding Restricted shares Shares in pledge or frozen
Name of shareholder Total shares held
shareholder percentage held Status Shares
Hong Kong Wah Shing
Foreign legal
Holding Company 13.47% 188,496,430 In pledge 92,363,251
person
Limited
Prosperity Lamps & Foreign legal
10.50% 146,934,857
Components Limited person
Shenzhen Rising
State-owned
Investment Development 5.12% 71,696,136 In pledge 35,800,000
legal person
Co., Ltd.
Guangdong Electronics
State-owned
Information Industry 4.74% 66,393,501 In pledge 32,532,815
legal person
Group Ltd.
Central Huijin Asset State-owned
2.42% 33,878,900
Management Co., Ltd. legal person
4
Essence International
Foreign legal
Securities (Hong Kong) 2.10% 29,332,186
person
Co., Ltd.
Hong Kong Rising
Foreign legal
Investment Development 1.82% 25,482,252
person
Co., Ltd.
DBS Vickers (Hong Foreign legal
1.58% 22,102,137
Kong) Ltd A/C Clients person
China Merchants
Foreign legal
Securities (Hong Kong) 0.88% 12,338,236
person
Co., Ltd
Foreign natural
Zhuang Jianyi 0.85% 11,903,509 8,927,632
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares held
Type Shares
RMB-denominat
Hong Kong Wah Shing Holding Company
188,496,430 ed ordinary 188,496,430
Limited
stock
RMB-denominat
Prosperity Lamps & Components Limited 146,934,857 ed ordinary 146,934,857
stock
RMB-denominat
Shenzhen Rising Investment Development
71,696,136 ed ordinary 71,696,136
Co., Ltd.
stock
RMB-denominat
Guangdong Electronics Information
66,393,501 ed ordinary 66,393,501
Industry Group Ltd.
stock
RMB-denominat
Central Huijin Asset Management Co., Ltd. 33,878,900 ed ordinary 33,878,900
stock
Domestically
Essence International Securities (Hong
29,332,186 listed foreign 29,332,186
Kong) Co., Ltd.
stock
Domestically
Hong Kong Rising Investment
25,482,252 listed foreign 25,482,252
Development Co., Ltd.
stock
Domestically
DBS Vickers (Hong Kong) Ltd A/C Clients 22,102,137 listed foreign 22,102,137
stock
5
Domestically
China Merchants Securities (Hong Kong)
12,338,236 listed foreign 12,338,236
Co., Ltd
stock
RMB-denominat
Shenzhen Xingsen Asset Management Co.,
8,633,126 ed ordinary 8,633,126
Ltd—Phase II Private Fund of Xingsen
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.,
Related or acting-in-concert parties among
Ltd. are acting-in-concert parties; and Prosperity Lamps & Components Limited and
the shareholders above
Zhuang Jianyi 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.
Among the top 10 unrestricted shareholders, shareholder Shenzhen Xingsen Asset
Top 10 ordinary shareholders involved in Management Co., Ltd—Phase II Private Fund of Xingsen holds 57,250 shares through
securities margin trading (if any) common securities account, and holds 8,575,876 shares through an account of collateral
securities for margin trading, where the total shares is 8,633,126.
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
6
Part III Significant Events
I Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Unit: RMB
Item 31 March 2019/Q1 Q1 2018/31 Change (%) Explanation of why
2019 December 2018
Available-for-sale financial assets 897,716,590.20 -100.00% The transfer of certain available-for-sale
Investments in other equity 1,173,231,806.05 N/A financial assets to investments in other
instruments equity instruments according to the new
accounting standards governing financial
instruments issued in the Reporting
Period
Trading financial liabilities 99,400.00 N/A The transfer of certain financial
Financial liabilities at fair value 477,200.00 -100.00% liabilities at fair value through profit or
through profit or loss loss to trading financial liabilities
according to the new accounting
standards governing financial
instruments issued in the Reporting
Period
Payroll payable 66,724,183.83 96,088,621.59 -30.56% The payment in the current period of the
year-end bonuses of last year to the
employees
Deferred income tax liabilities 94,757,791.37 52,530,509.00 80.39% The rise in the fair value of the
Company’s shareholdings in other
companies in the current period
Other comprehensive income 536,937,088.76 297,667,872.80 80.38% The rise in the fair value of the
Company’s shareholdings in other
companies in the current period
Administrative expense 32,701,258.08 48,496,349.98 -32.57% A smaller amount of salary provision as
a result of lower revenue
R&D expense 14,375,055.48 7,920,976.24 81.48% A greater R&D investment
Asset impairment loss 2,181,356.17 6,299,423.27 -65.37% A smaller amount of allowances for
doubtful accounts
Return on investment 20,086,440.56 7,509,169.19 167.49% Income from the sale of the Company’s
equity interests in Chengdu Hongbo
Industrial Co., Ltd. in the current period
Other income 146,400.00 355,982.00 -58.87% A smaller amount of government
subsidies received in the Company’s
7
ordinary course of business
Non-operating income 207,409.53 692,142.62 -70.03% A smaller amount of government
subsidies not related to the Company’s
operating activities
Non-operating expense 24,008.40 72,651.12 -66.95% The payment of miscellaneous
compensations in the same period of last
year
Net profit attributable to -202,588.07 2,600,282.32 -107.79% A smaller amount of profits of
non-controlling interests non-wholly-owned subsidiaries
Other comprehensive income, net 239,269,215.96 -9,187,456.23 2704.30% A rise in the fair value of investments in
of tax other equity instruments
Changes in the fair value of 239,287,933.48 N/A The transfer of certain available-for-sale
investments in other equity financial assets to investments in other
instruments equity instruments according to the new
Gain/Loss on changes in the fair -9,186,346.21 100.00% accounting standards governing financial
value of available-for-sale instruments issued in the Reporting
financial assets Period, with the changes in the related
fair value recorded into the changes in
the fair value of investments in other
equity instruments
Differences arising from the -18,717.52 -1,110.02 -1586.23% The appreciation of euro against
translation of foreign Renminbi
currency-denominated financial
statements
Total comprehensive income 325,725,663.07 89,965,539.08 262.06% A rise in the fair value of investments in
Total comprehensive income 325,928,251.14 87,365,256.76 273.06% other equity instruments
attributable to owners of the
Company as the parent
Net cash flows from operating 29,966,955.13 124,450,627.91 -75.92% Mature bank acceptance bills were
activities honored in the current period
Net cash flows from investing 59,745,391.61 -54,668,249.60 209.29% A higher amount of proceeds from
activities disinvestment and a smaller amount of
payments for the acquisition of fixed
assets
Net increase in cash and cash 87,083,045.17 66,459,645.26 31.03% Increase in net cash flows from investing
equivalents activities
II Progress, Influence and Solutions with regard to Significant Events
√ Applicable □ Not applicable
1. The Company held the 26th Meeting of the 8th Board of Directors on 7 September 2018, on which the Proposal
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on Cancellation of Wholly-owned Subsidiary was reviewed and approved. The cancellation of the wholly-owned
subsidiary Guangdong FSL Financing Lease Co., Ltd. was agreed by the board of directors. The cancellation
registration procedure of Guangdong FSL Financing Lease Co., Ltd. has been completed on 26 March 2019.
2. The Company held the 28th Meeting of the 8th Board of Directors on 7 March 2019, on which the Proposal on
Transfer of Shares in Chengdu Hongbo Industrial Co., Ltd. was reviewed and approved. The transfer of 6.94% of
shares held by the Company in Chengdu Hongbo Industrial Co., Ltd. at the price of RMB19.55 million was
agreed by the board of directors. As of the period-end, the Company has received the share transfer payment and
completed the share transfer registration procedure.
Summary of the significant event Disclosure date Index to the related announcement
Cancellation of wholly-owned subsidiary
2 April 2019 www.cninfo.com.cn
Guangdong FSL Financing Lease Co., Ltd.
Transfer of shares of Chengdu Hongbo
8 March 2019 www.cninfo.com.cn
Industrial Co., Ltd.
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Operating Performance Forecast for H1 2019
Warning of a forecast loss on or a forecast significant year-on-year change in the net profit of H1 2019, as well as
explanation of why:
□ Applicable √ Not applicable
9
V Securities Investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: USD’0,000
Ending
investm
Actual
Relation Related- Purchas Impairm ent as %
Initial Beginni Sold in gain/lo
ship party Type of ed in ent Ending of the
Operating investm Beginni Ending ng Reporti ss in
with the transacti derivativ Reporti allowan investm Compan
party ent ng date date investm ng Reporti
Compan on or e ng ce (if ent y’s
amount ent Period ng
y not Period any) ending
Period
net
assets
Foshan Forward
branch of forex 14
Not 12 July
China Not settlemen 1,200 January 200 200 0 0.00% -1.81
related 2018
Constructi t 2019
on Bank portfolio
Foshan
Forward
branch of
forex 2 1
the Not
Not settlemen 1,200 August Februar 400 400 0 0.00% -0.14
Agricultur related
t 2018 y 2019
al Bank of
portfolio
China
Foshan
Ordinary
branch of
forward 22
Guangzho Not 12 June
Not forex 600 March 600 600 0.87% -1.48
u Rural related 2019
settlemen 2019
Commerci
t
al Bank
Total 3,000 -- -- 600 600 600 600 0.87% -3.43
Funding source All from the Company’s own money
Legal matters involved (if applicable) N/A
Disclosure date of board announcement
approving derivative investment (if 23 May 2018
any)
10
Disclosure date of general meeting
announcement approving derivative
investment (if any)
Risk Analysis of Forward Exchange Settlement Business: 1. Risk of exchange rate
fluctuations. In the case of large fluctuations in the exchange rate, the quoted price of the
bank’s forward exchange rate may be lower than the Company’s quoted exchange rate to the
customer, which will make the Company unable to lock the quoted exchange rate to the
customer or the bank’s forward exchange rate may deviate from the exchange rate at the
time of the Company’s actual receipt and payment, and causes exchange losses. 2. Risk of
customer default. The customer’s accounts receivable may be overdue, and the payment for
goods cannot be recovered within the predictable payback period, which will result in the
loss of the Company due to the delayed forward settlement. 3. Risk of payback prediction.
The marketing department shall made corresponding payback prediction based on customer
orders and expected orders. However, during the actual implementation process, customers
may adjust their orders and predictions, which will result in the Company’s incorrect
payback prediction and cause the risk of delayed delivery of forward exchange settlement.
Adopted Risk Control Measures: 1. The Company will strengthen the research and analysis
of the exchange rate. When the exchange rate fluctuates greatly, it will adjust the business
strategy in a timely manner to stabilize the export business and avoid exchange losses to the
Analysis of risks and control measures
utmost. 2. The Management System for Forward Settlement and Sales of Foreign Exchanges
associated with derivative investments
reviewed and approved by the board of directors of the Company stipulates that all forward
held in Reporting Period (including but
foreign exchange settlement businesses of the Company shall be based on the normal
not limited to market risk, liquidity risk,
production and operation, and relied on specific business operations to avoid and prevent
credit risk, operational risk, legal risk,
various exchange rate risks. However, speculative transaction and interest arbitrage are not
etc.)
allowed. At the same time, the system clearly defines the operating principles, approval
authority, responsible department and responsible person, internal operation procedures,
information isolation measures, internal risk reporting system, risk management procedures,
and information disclosure related to the forward settlement business as well. In fact, the
system is conducive to strengthen the management of the Company’s forward foreign
exchange settlement business and prevent investment risks. 3. In order to prevent any delay
in the forward exchange settlement, the Company will strengthen the management of
accounts receivable, actively collect receivables, and avoid any overdue receivables. In the
meantime, the Company plans to increase the export purchases and purchase corresponding
credit insurance so as to reduce the risk of default and customer default. 4. The Company’s
forward foreign exchange settlement transactions must be based on the Company’s foreign
exchange earnings prediction. Besides, the Company shall strictly control the scale of its
forward foreign exchange settlement business, and manage all risks that the Company may
face within a controllable range. 5. The internal audit department of the Company shall
check the actual signing and execution situation of all trading contracts on a regular or
irregular basis.
Changes in market prices or fair value 1. The Company has invested various derivatives including Forward Exchange Settlement
of derivative investments in Reporting 3+3 Portfolio. This product portfolio is superior to other ordinary forward settlement
Period (fair value analysis should products during the same period. The first three sessions of vesting conditions of this
11
include measurement method and portfolio are: the spot exchange rate at maturity is lower than the agreed front-end exchange
related assumptions and parameters) rate, and the exchange settlement shall be carried out based on the agreed front-end
exchange rate; if the spot exchange rate at maturity is higher than the agreed front-end
exchange rate, the Company can choose not to settle the exchange or choose to settle the
exchange based on the spot exchange rate at maturity. The back-end three sessions of vesting
conditions are: the spot exchange rate at maturity is lower than the agreed back-end
exchange rate, and the Company can choose not to settle the exchange or choose to settle the
exchange based on the spot exchange rate at maturity; if the spot exchange rate at maturity is
higher than the agreed back-end exchange rate, the exchange settlement shall be carried out
based on the agreed back-end exchange rate. At present, in terms of Forward Exchange
Settlement 3+3 Portfolio purchased by the Company, the spot exchange rates at maturity are
all higher than the agreed front-end exchange rates, and the Company chooses not to
exercise the right. Therefore, the product’s fair value has not changed.
2. The Company has invested ordinary forward exchange settlement product and the
exchange settlement shall be carried out in accordance with the currency, amount and
exchange rate stipulated in the forward exchange settlement contract, and the fair value of
the product will change.
Major changes in accounting policies
and specific accounting principles
adopted for derivative investments in N/A
Reporting Period compared to last
reporting period
The independent directors of the Company are of the opinion that during the Reporting
Period, the Company carried out forward forex settlement in strict compliance with the
Company Law, the Regulations of the People’s Bank of China on Foreign Exchange
Opinion of independent directors on Settlement, Sale and Payment and the Company’s Management Rules for Forward Foreign
derivative investments and risk control Exchange Settlement and Sale, among others, as well as within the Board’s authorization.
Such trading is primarily aimed to prevent exchange rate fluctuations from impacting the
Company’s export business and operating earnings, with no speculative trading involved. It
is a necessity, and the risk is well under control.
VII Communications with the Investment Community such as Researches, Inquiries and
Interviews during the Reporting Period
√ Applicable □ Not applicable
Type of communication Index to main information
Date Way of communication
party communicated
21 February 2019 By one-on-one meeting Institution Cninf-Interactive-Investor Relations
19 March 2019 By one-on-one meeting Institution Cninf-Interactive-Investor Relations
12
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
13
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
31 March 2019
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 950,691,746.55 896,646,719.87
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes and accounts receivable 982,213,059.72 941,927,209.55
Including: Notes receivable 135,080,457.47 107,506,613.50
Accounts receivable 847,132,602.25 834,420,596.05
Prepayments 17,021,181.84 13,811,905.18
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 21,802,949.65 21,745,690.53
Including: Interest receivable 6,320,543.45 5,152,364.04
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 659,861,575.74 767,319,599.00
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 815,531,430.50 864,093,663.30
14
Total current assets 3,447,121,944.00 3,505,544,787.43
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 897,716,590.20
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 182,458,559.69 182,458,559.69
Investments in other equity instruments 1,173,231,806.05
Other non-current financial assets
Investment property
Fixed assets 508,352,567.33 512,106,912.39
Construction in progress 227,866,204.56 224,624,447.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 171,618,097.10 172,725,277.21
R&D expense
Goodwill
Long-term prepaid expense 7,994,885.24 6,852,985.35
Deferred income tax assets 33,010,063.79 37,831,704.45
Other non-current assets 47,497,695.42 48,305,435.42
Total non-current assets 2,352,029,879.18 2,082,621,911.87
Total assets 5,799,151,823.18 5,588,166,699.30
Current liabilities:
Short-term borrowings
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities 99,400.00
Financial liabilities at fair value through
477,200.00
profit or loss
Derivative financial liabilities
Notes and accounts payable 855,258,604.84 985,280,820.92
Advances from customers 42,765,323.37 43,850,788.04
15
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Payroll payable 66,724,183.83 96,088,621.59
Taxes payable 28,039,849.00 25,354,466.37
Other payables 44,350,475.98 43,115,011.68
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Contractual liabilities
Liabilities directly associated with assets
classified as held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 1,037,237,837.02 1,194,166,908.60
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 116,250.33 155,000.31
Deferred income tax liabilities 94,757,791.37 52,530,509.00
Other non-current liabilities
Total non-current liabilities 94,874,041.70 52,685,509.31
Total liabilities 1,132,111,878.72 1,246,852,417.91
Owners’ equity:
16
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 158,608,173.07 158,608,173.07
Less: Treasury stock
Other comprehensive income 536,937,088.76 297,667,872.80
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
General reserve
Retained earnings 1,740,840,067.57 1,654,181,032.39
Total equity attributable to owners of the
4,645,187,669.60 4,319,259,418.46
Company as the parent
Non-controlling interests 21,852,274.86 22,054,862.93
Total owners’ equity 4,667,039,944.46 4,341,314,281.39
Total liabilities and owners’ equity 5,799,151,823.18 5,588,166,699.30
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 March 2019 31 December 2018
Current assets:
Monetary capital 897,564,675.93 848,949,693.91
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes and accounts receivable 946,084,406.78 900,843,331.26
Including: Notes receivable 133,737,856.97 104,945,398.61
Accounts receivable 812,346,549.81 795,897,932.65
Prepayments 27,314,944.06 25,444,445.34
Other receivables 52,583,961.86 43,538,848.72
Including: Interest receivable 6,320,543.45 5,152,364.04
Dividends receivable
17
Inventories 602,250,378.73 692,681,479.03
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 809,274,492.71 856,504,839.81
Total current assets 3,335,072,860.07 3,367,962,638.07
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 897,716,590.20
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 466,251,661.95 466,251,661.95
Investments in other equity instruments 1,173,231,806.05
Other non-current financial assets
Investment property
Fixed assets 426,146,813.45 427,947,613.74
Construction in progress 226,183,855.03 222,570,503.14
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 128,432,316.98 129,452,067.42
R&D expense
Goodwill
Long-term prepaid expense 6,475,878.82 5,106,268.25
Deferred income tax assets 31,042,289.33 35,908,741.15
Other non-current assets 46,110,695.42 46,852,235.42
Total non-current assets 2,503,875,317.03 2,231,805,681.27
Total assets 5,838,948,177.10 5,599,768,319.34
Current liabilities:
Short-term borrowings
Trading financial liabilities 99,400.00
Financial liabilities at fair value through
477,200.00
profit or loss
Derivative financial liabilities
18
Notes and accounts payable 1,027,536,865.54 1,134,173,851.66
Advances from customers 39,780,260.65 41,912,301.85
Contractual liabilities
Payroll payable 54,321,859.42 84,220,746.16
Taxes payable 20,363,003.05 17,528,644.83
Other payables 127,660,528.13 114,073,355.23
Including: Interest payable
Dividends payable
Liabilities directly associated with assets
classified as held for sale
Current portion of non-current liabilities
Other current liabilities
Total current liabilities 1,269,761,916.79 1,392,386,099.73
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities 94,757,791.37 52,530,509.00
Other non-current liabilities
Total non-current liabilities 94,757,791.37 52,530,509.00
Total liabilities 1,364,519,708.16 1,444,916,608.73
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 166,211,779.15 166,211,779.15
Less: Treasury stock
Other comprehensive income 536,960,817.82 297,672,884.34
19
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,562,453,531.77 1,482,164,706.92
Total owners’ equity 4,474,428,468.94 4,154,851,710.61
Total liabilities and owners’ equity 5,838,948,177.10 5,599,768,319.34
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Revenue 889,232,750.52 1,123,376,512.26
Including: Operating revenue 889,232,750.52 1,123,376,512.26
Interest income
Premium income
Handling charge and commission
income
2. Costs and expenses 807,336,382.30 1,012,171,251.73
Including: Cost of sales 686,392,508.53 874,409,768.15
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 10,992,127.94 14,410,687.99
Selling expense 56,726,445.41 55,410,407.71
Administrative expense 32,701,258.08 48,496,349.98
R&D expense 14,375,055.48 7,920,976.24
Finance costs 3,967,630.69 5,223,638.39
Including: Interest expense
Interest income 4,993,925.50 2,238,215.91
Asset impairment loss 2,181,356.17 6,299,423.27
20
Credit impairment loss
Add: Other income 146,400.00 355,982.00
Return on investment (“-” for loss) 20,086,440.56 7,509,169.19
Including: Share of profit or loss of joint
-316,136.14
ventures and associates
Foreign exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on changes in fair value (“-” for loss) 377,800.00
Asset disposal income (“-” for loss)
3. Operating profit (“-” for loss) 102,507,008.78 119,070,411.72
Add: Non-operating income 207,409.53 692,142.62
Less: Non-operating expense 24,008.40 72,651.12
4. Profit before tax (“-” for loss) 102,690,409.91 119,689,903.22
Less: Income tax expense 16,233,962.80 20,536,907.91
5. Net profit (“-” for net loss) 86,456,447.11 99,152,995.31
5.1 By operating continuity
5.1.1 Net profit from continuing operations
86,456,447.11 99,152,995.31
(“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to owners of the
86,659,035.18 96,552,712.99
Company as the parent
5.2.1 Net profit attributable to
-202,588.07 2,600,282.32
non-controlling interests
6. Other comprehensive income, net of tax 239,269,215.96 -9,187,456.23
Attributable to owners of the Company as the
239,269,215.96 -9,187,456.23
parent
6.1 Items that will not be reclassified to
239,287,933.48
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit pension schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss under the
equity method
6.1.3 Changes in the fair value of
239,287,933.48
investments in other equity instruments
6.1.4 Changes in the fair value of the
company’s credit risks
21
6.1.5 Other
6.2 Items that will be reclassified to profit
-18,717.52 -9,187,456.23
or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under the
equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the fair
-9,186,346.21
value of available-for-sale financial assets
6.2.4 Other comprehensive income
arising from the reclassification of financial
assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity investments
to available-for-sale financial assets
6.2.6 Allowance for credit impairments in
investments in other debt obligations
6.2.7 Reserve for cash flow hedges
6.2.8 Differences arising from the
translation of foreign currency-denominated -18,717.52 -1,110.02
financial statements
6.2.9 Other
Attributable to non-controlling interests
7. Total comprehensive income 325,725,663.07 89,965,539.08
Attributable to owners of the Company as the
325,928,251.14 87,365,256.76
parent
Attributable to non-controlling interests -202,588.07 2,600,282.32
8. Earnings per share
8.1 Basic earnings per share 0.0619 0.0690
8.2 Diluted earnings per share 0.0619 0.0690
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
4. Income Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Operating revenue 852,343,699.73 1,067,787,968.82
22
Less: Cost of sales 670,506,168.18 858,449,485.00
Taxes and surcharges 9,152,146.60 12,057,313.68
Selling expense 51,507,913.46 48,345,146.83
Administrative expense 28,180,888.78 43,861,856.58
R&D expense 14,051,923.39 8,015,732.18
Finance costs 4,084,122.70 5,409,152.86
Including: Interest expense
Interest income 4,878,769.66 2,043,799.05
Asset impairment loss 1,386,674.74 5,508,500.39
Credit impairment loss
Add: Other income 146,400.00 355,982.00
Return on investment (“-” for
20,416,668.76 5,613,752.53
loss)
Including: Share of profit or
-316,136.14
loss of joint ventures and associates
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
377,800.00
for loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 94,414,730.64 92,110,515.83
Add: Non-operating income 53,128.97 645,474.35
Less: Non-operating expense 10,418.62 72,650.61
3. Profit before tax (“-” for loss) 94,457,440.99 92,683,339.57
Less: Income tax expense 14,168,616.14 13,949,921.35
4. Net profit (“-” for net loss) 80,288,824.85 78,733,418.22
4.1 Net profit from continuing
80,288,824.85 78,733,418.22
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
239,287,933.48 -9,186,346.21
tax
5.1 Items that will not be reclassified
239,287,933.48
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
23
pension schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
239,287,933.48
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to
-9,186,346.21
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -9,186,346.21
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 319,576,758.33 69,547,072.01
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
24
5. Consolidated Cash Flow Statement
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
860,544,423.63 888,818,669.95
and rendering of services
Net increase in customer deposits
and interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 25,748,584.53 14,547,468.34
Cash generated from other operating
17,661,656.41 28,140,908.49
activities
Subtotal of cash generated from
903,954,664.57 931,507,046.78
operating activities
Payments for commodities and
610,047,969.13 520,963,882.48
services
Net increase in loans and advances
to customers
Net increase in deposits in the
central bank and in interbank loans
granted
Payments for claims on original
25
insurance contracts
Net increase in financial assets held
for trading purposes
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 173,108,110.24 181,134,694.05
Taxes paid 37,615,521.94 53,369,965.83
Cash used in other operating
53,216,108.13 51,587,876.51
activities
Subtotal of cash used in operating
873,987,709.44 807,056,418.87
activities
Net cash generated from/used in
29,966,955.13 124,450,627.91
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 51,000,000.00 10,000,000.00
Return on investment 21,535,662.08 10,035,191.59
Net proceeds from the disposal of
fixed assets, intangible assets and other
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
72,535,662.08 20,035,191.59
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 12,790,270.47 74,703,441.19
long-lived assets
Payments for investments
Net increase in pledged loans
granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
12,790,270.47 74,703,441.19
activities
Net cash generated from/used in 59,745,391.61 -54,668,249.60
26
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions
by non-controlling interests to
subsidiaries
Borrowings obtained
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
activities
Net cash generated from/used in
financing activities
4. Effect of foreign exchange rate
-2,629,301.57 -3,322,733.05
changes on cash and cash equivalents
5. Net increase in cash and cash
87,083,045.17 66,459,645.26
equivalents
Add: Cash and cash equivalents,
795,285,756.38 570,184,208.96
beginning of the period
6. Cash and cash equivalents, end of
882,368,801.55 636,643,854.22
the period
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item Q1 2019 Q1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
828,912,698.12 852,348,438.77
and rendering of services
27
Tax rebates 25,745,430.08 14,547,468.34
Cash generated from other operating
13,446,529.19 21,047,144.75
activities
Subtotal of cash generated from
868,104,657.39 887,943,051.86
operating activities
Payments for commodities and
636,614,939.04 595,935,971.69
services
Cash paid to and for employees 133,856,759.29 112,947,808.95
Taxes paid 24,163,638.62 28,100,581.05
Cash used in other operating
49,548,623.78 44,022,548.07
activities
Subtotal of cash used in operating
844,183,960.73 781,006,909.76
activities
Net cash generated from/used in
23,920,696.66 106,936,142.10
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 51,000,000.00 10,000,000.00
Return on investment 21,865,890.28 10,035,191.59
Net proceeds from the disposal of
fixed assets, intangible assets and other
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
72,865,890.28 20,035,191.59
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 12,531,880.47 72,690,980.48
long-lived assets
Payments for investments
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
12,531,880.47 72,690,980.48
activities
Net cash generated from/used in
60,334,009.81 -52,655,788.89
investing activities
3. Cash flows from financing activities:
Capital contributions received
28
Borrowings obtained
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends
Cash used in other financing
activities
Subtotal of cash used in financing
activities
Net cash generated from/used in
financing activities
4. Effect of foreign exchange rate
-2,601,705.96 -3,321,626.93
changes on cash and cash equivalents
5. Net increase in cash and cash
81,653,000.51 50,958,726.28
equivalents
Add: Cash and cash equivalents,
747,588,730.42 502,169,100.40
beginning of the period
6. Cash and cash equivalents, end of
829,241,730.93 553,127,826.68
the period
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated balance sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary capital 896,646,719.87 896,646,719.87
Trading financial assets N/A 6,000,000.00 6,000,000.00
Notes and accounts
941,927,209.55 941,927,209.55
receivable
29
Including: Notes
107,506,613.50 107,506,613.50
receivable
Accounts
834,420,596.05 834,420,596.05
receivable
Prepayments 13,811,905.18 13,811,905.18
Other receivables 21,745,690.53 21,745,690.53
Including: Interest
5,152,364.04 5,152,364.04
receivable
Inventories 767,319,599.00 767,319,599.00
Other current assets 864,093,663.30 864,093,663.30
Total current assets 3,505,544,787.43 3,511,544,787.43 6,000,000.00
Non-current assets:
Available-for-sale financial
897,716,590.20 N/A -897,716,590.20
assets
Long-term equity
182,458,559.69 182,458,559.69
investments
Investments in other equity
N/A 891,716,590.20 891,716,590.20
instruments
Fixed assets 512,106,912.39 512,106,912.39
Construction in progress 224,624,447.16 224,624,447.16
Intangible assets 172,725,277.21 172,725,277.21
Long-term prepaid
6,852,985.35 6,852,985.35
expense
Deferred income tax assets 37,831,704.45 37,831,704.45
Other non-current assets 48,305,435.42 48,305,435.42
Total non-current assets 2,082,621,911.87 2,076,621,911.87 -6,000,000.00
Total assets 5,588,166,699.30 5,588,166,699.30
Current liabilities:
Trading financial liabilities N/A 477,200.00 477,200.00
Financial liabilities at fair
477,200.00 N/A -477,200.00
value through profit or loss
Notes and accounts
985,280,820.92 985,280,820.92
payable
Advances from customers 43,850,788.04 43,850,788.04
Payroll payable 96,088,621.59 96,088,621.59
Taxes payable 25,354,466.37 25,354,466.37
Other payables 43,115,011.68 43,115,011.68
30
Total current liabilities 1,194,166,908.60 1,194,166,908.60
Non-current liabilities:
Deferred income 155,000.31 155,000.31
Deferred income tax
52,530,509.00 52,530,509.00
liabilities
Total non-current liabilities 52,685,509.31 52,685,509.31
Total liabilities 1,246,852,417.91 1,246,852,417.91
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Capital reserves 158,608,173.07 158,608,173.07
Other comprehensive
297,667,872.80 297,667,872.80
income
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,654,181,032.39 1,654,181,032.39
Total equity attributable to
owners of the Company as 4,319,259,418.46 4,319,259,418.46
the parent
Non-controlling interests 22,054,862.93 22,054,862.93
Total owners’ equity 4,341,314,281.39 4,341,314,281.39
Total liabilities and owners’
5,588,166,699.30 5,588,166,699.30
equity
Notes to the adjustment
The Ministry of Finance enacted the revised Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of
Financial Instruments (CK [2017] No. 7), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (CK
[2017] No. 8), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (CK [2017] No. 9) and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments (CK [2017] No. 14) in 2017. The Company starts to
carry out above new financial accounting standards since 1 January 2019. In line with the convergence regulation, the information of
comparative period is unnecessary to be adjusted and for the difference with former standards when the new standards are carried out
on the first day, the beginning retained earnings and other comprehensive income for the Reporting Period shall be retroactively
adjusted.
Those originally recorded into “available-for-sale financial assets” are currently recorded into “trading financial assets” and
“investments in other equity instruments”; those originally recorded into “Financial liabilities at fair value through profit or loss” are
currently recorded into “trading financial liabilities”.
Balance sheet of the Company as the parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
Monetary capital 848,949,693.91 848,949,693.91
31
Trading financial assets N/A 6,000,000.00 6,000,000.00
Notes and accounts
900,843,331.26 900,843,331.26
receivable
Including: Notes
104,945,398.61 104,945,398.61
receivable
Accounts
795,897,932.65 795,897,932.65
receivable
Prepayments 25,444,445.34 25,444,445.34
Other receivables 43,538,848.72 43,538,848.72
Including: Interest
5,152,364.04 5,152,364.04
receivable
Inventories 692,681,479.03 692,681,479.03
Other current assets 856,504,839.81 856,504,839.81
Total current assets 3,367,962,638.07 3,373,962,638.07 6,000,000.00
Non-current assets:
Available-for-sale financial
897,716,590.20 N/A -897,716,590.20
assets
Long-term equity
466,251,661.95 466,251,661.95
investments
Investments in other equity
N/A 891,716,590.20 891,716,590.20
instruments
Fixed assets 427,947,613.74 427,947,613.74
Construction in progress 222,570,503.14 222,570,503.14
Intangible assets 129,452,067.42 129,452,067.42
Long-term prepaid
5,106,268.25 5,106,268.25
expense
Deferred income tax assets 35,908,741.15 35,908,741.15
Other non-current assets 46,852,235.42 46,852,235.42
Total non-current assets 2,231,805,681.27 2,225,805,681.27 -6,000,000.00
Total assets 5,599,768,319.34 5,599,768,319.34
Current liabilities:
Trading financial liabilities N/A 477,200.00 477,200.00
Financial liabilities at fair
477,200.00 N/A -477,200.00
value through profit or loss
Notes and accounts
1,134,173,851.66 1,134,173,851.66
payable
Advances from customers 41,912,301.85 41,912,301.85
32
Payroll payable 84,220,746.16 84,220,746.16
Taxes payable 17,528,644.83 17,528,644.83
Other payables 114,073,355.23 114,073,355.23
Total current liabilities 1,392,386,099.73 1,392,386,099.73
Non-current liabilities:
Deferred income tax
52,530,509.00 52,530,509.00
liabilities
Total non-current liabilities 52,530,509.00 52,530,509.00
Total liabilities 1,444,916,608.73 1,444,916,608.73
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Capital reserves 166,211,779.15 166,211,779.15
Other comprehensive
297,672,884.34 297,672,884.34
income
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,482,164,706.92 1,482,164,706.92
Total owners’ equity 4,154,851,710.61 4,154,851,710.61
Total liabilities and owners’
5,599,768,319.34 5,599,768,319.34
equity
Notes to the adjustment
The Ministry of Finance enacted the revised Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of
Financial Instruments (CK [2017] No. 7), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (CK
[2017] No. 8), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (CK [2017] No. 9) and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments (CK [2017] No. 14) in 2017. The Company starts to
carry out above new financial accounting standards since 1 January 2019. In line with the convergence regulation, the information of
comparative period is unnecessary to be adjusted and for the difference with former standards when the new standards are carried out
on the first day, the beginning retained earnings and other comprehensive income for the Reporting Period shall be retroactively
adjusted.
Those originally recorded into “available-for-sale financial assets” are currently recorded into “trading financial assets” and
“investments in other equity instruments”; those originally recorded into “Financial liabilities at fair value through profit or loss” are
currently recorded into “trading financial liabilities”.
2. Retrospective Restatement of Previous Comparative Data due to the First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
33
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd.
25 April 2019
34
