Foshan Electrical and Lighting Co., Ltd
Semi-Annual Report 2009
Important Notice: The Board of Directors, the Supervisory Committee as well as directors,
supervisors and senior executives of Foshan Electrical and Lighting Co., Ltd. (hereinafter
referred to as the Company) guarantee that there are no significant omissions, fictitious or
misleading statements carried in the Report and will take individual and joint responsibilities
for the truthfulness, accuracy and completeness of the Report.
The semi-annual financial report 2009 has not been audited. This report is prepared both in
Chinese and English. Should there be any difference in interpretation of the two versions, the
Chinese version shall prevail.
Mr. Zhong Xincai, Chairman of the Board as well as the General Manager and person in charge
of accounting work, and Wang Shuqiong, Manager of Financial Department, hereby confirm
that the financial report enclosed in this Semi-Annual Report is true and complete.
Contents
I. Company Profile………………………………………………………………2
II. Changes in Shares Capital and Particulars about Shares Held by Principal
Shareholders………………………...…………………………………………4
III. Particulars about Directors, Supervisors and Senior Executives……………7
IV. Report of the Board of Directors………………………………………………8
V. Significant Events……………………………………………………………9
VI. Financial Report……………………………………………………………13
VII. Documents Available for Reference………………………….………………532
I. Company Profile
1. Legal name of the Company in Chinese: 佛山电器照明股份有限公司
Abbr.: Foshan Zhaoming
Legal Name of the Company in English: Foshan Electrical and Lighting Co., Ltd
Abbr.: FSL
2. Stock exchange listed with: Shenzhen Stock Exchange
Short form of the stock: Foshan Zhaoming (A share)
Yue Zhaoming (B share)
Stock code: 000541 (A share)
200541 (B share)
3. Registered and office address: No. 64, Fenjiang Road North, Chancheng District, Foshan
City, Guangdong Province
Post Code: 528000
International Website: www.chinafsl.com
E-mail: gzfsligh@pub.foshan.gd.cn
4. Legal representative: Zhong Xincai
5. Secretary of the Board of Directors: Lin Yihui
Address: No. 64, Fenjiang Road North, Chancheng District, Foshan City, Guangdong
Province
Tel: (0757) 82966098, 82810239
Fax: (0757) 82816276
E-mail: gzfsligh@pub.foshan.gd.cn
6. Newspapers designated for information disclosing: China Securities Journal, Securities
Times, Hongkong Ta Kung Pao
Website designated by CSRC: http://www.cninfo.com.cn
Place where the interim report is prepared and placed: Secretariat Office of Board of
Directors, Office Building of the Company
7. Main financial data and indices
Unit: RMB Yuan
At the end of this
report period
At the end of the
last report period
Increase/decrease at the end of
this report period compared with
the period-end of last year (%)
Total assets 2,833,844,624.59 2,830,268,837.06 0.13%
Owners’ equity（or shareholders’ equity） 2,519,151,420.20 2,601,745,087.26 -3.17%
Net assets per share 2.57 3.72 -30.91%
Report period (From
Jan. to Jun. 2009)
The same period
of last year
Increase/decrease of this report
period year-on-year (%)
Operating profit 93,814,743.80 199,771,253.27 -53.04%
Total profit 100,400,432.01 202,623,983.63 -50.45%
Net profit 71,180,439.19 159,920,282.08 -55.49%
Net profit after deducting non-recurring gains
and losses
69,944,469.18 74,966,539.68 -6.70%
Basic Earnings Per Share 0.07 0.16 -56.25%3
Fully diluted earnings per share 0.07 0.16 -56.25%
Profit margin on net assets 2.83% 6.30% -3.47%
Net cash flow arising from operating activities 227,660,822.71 -6,724,791.22 3,485.40%
Net cash flow per share arising from operating
activities
0.23 0.01 2,200.00%
Items and amount of non-recurring gains and losses
Unit: RMB Yuan
Items Amount
Annotation (if
applicable)
Gains and losses from disposal of non-current assets 6,175,726.04
Tax return and tax reduction that exceeded mandate of examination and approval or without
formal approval document
0.00
Government subsidies recorded into current gains and losses (excluding government
subsidies with close relationship with the Company’s business and rationed government
grants in line with the united standard and the state policy)
330,000.00
Capital occupied from non-financial enterprise recorded into current gains and losses 866,199.10
Gains and losses from combination costs and the fair value of the identifiable net assets when
the enterprise merged subsidiaries, affiliated companies and joint companies
1,420,800.00
Gains and losses from exchange of non-monetary assets 0.00
Gains and losses from entrusted investment or financing 0.00
Provisions for impairment of recorded assets due to the force majeure factor, such as natural
disaster
0.00
Gains and losses from debt restructuring 0.00
Expense of enterprise reorganization, expense of employee allocation and integration
expense, etc.
0.00
Gains and losses exceeding fair value due to trading price lost fair 0.00
Net current gains and losses of subsidiaries due to enterprise combination under the same
control form period-begin till combination date
0.00
Net gains and losses from contingencies irrespective of routine business 0.00
Gains and losses from changes in fair value due to transaction financial assets and liabilities,
and investment income from disposal of transaction financial assets, transaction financial
liabilities and financial assets available for sale, excluding valid hedging related to routine
operation of the Company
0.00
Switching back impairment provision of accounts receivable with separate test on impairment 0.00
Gains and losses from external entrusted loan 0.00
Gains and losses from changes in fair value of investment property with subsequent
measurement after adoption of fair value model
0.00
Impact of one-off adjustment on current gains and losses according to requirements of laws,
statutes concerning tax and accounting
0.00
Income from trusteeship fees 0.00
Other non-operating income and expense except the aforesaid items 79,891.27
Other gains and losses accorded with definition of non-current gains and losses -5,158,859.85
Impact on minority interests 0.00
Impact on income tax -2,477,786.55
Total 1,235,970.01 -4
Attachment of Profit Statement
Jan. to Jun. 2009 Jan. to Jun. 2008
Profit margin on net
assets (%)
Earnings per share
(Yuan)
Profit margin on
net assets (%)
Earnings per share
(Yuan)
Items
Fully
diluted
return
Weighted
average
return
Fully
diluted
return
Weighted
average
return
Fully
diluted
return
Weighted
average
return
Fully
diluted
return
Weighted
average
return
Operating Profit 3.66 3.66 0.10 0.10 7.57 7.57 0.20 0.20
Net profit 2.83 2.83 0.07 0.07 6.30 6.30 0.16 0.16
Net profit after deducting
non-recurring gains and losses
2.78 2.78 0.07 0.07 2.95 2.95 0.08 0.08
Difference between PRC GAAP and IFRS
Unit: RMB Yuan
PRC GAAP IFRS
Net profit 71,180,439.19 159,920,282.08
Net assets 71,180,439.19 159,920,282.08
Explanation for
the difference
There is no difference in net profit and net assets as of this report period measured based on
PRC GAAP and IFRS.
II. Changes in Shares Capital and Particulars about Shares Held by
Principal Shareholders
1. During the report period, the Company actualized capitalization of public reserves at the rate
of capitalizing 4 shares per 10 shares. The total shares capital of the Company has changed,
that is, the total of capital shares increased from former 698,974,104 shares up to 978,563,7415
shares.
Statement on changes in shares capital of the Company (Unit: share)
Prior to the change
Increase/decrease
for this time (+/-)
Subsequent to the change
Type of share
Number of
share
Proportion
(%)
Additional quantity
from capitalization
of public reserve
Number of
share
Number
of share
I. Shares subject to trading moratorium
1. Shares held by foreign legal person 94,154,061 13.47 37,661,624 131,815,685 13.47
2. Shares held by domestic legal person 3,281,552 0.47 1,312,621 4,594,173 0.47
3. Shares held by domestic natural person 7,524 0.001 3,009 10,533 0.001
4. Shares held by senior A shares 1,172,917 0.17 469,167 1,642,084 0.17
management B shares 3,989,280 0.57 1,595,712 5,584,992 0.57
Total number of shares subject to trading
moratorium
102,605,334 14.68 41,042,133 143,647,467 14.68
II. Shares not subject to trading moratorium
1. RMB common shares 439,483,050 62.88 175,793,220 615,276,270 62.88
2. Domestically listed foreign shares 156,885,720 22.44 62,754,288 219,640,008 22.44
Total number of shares not subject to
trading moratorium
596,368,770 85.32 238,547,508 834,916,278 85.32
III. Total shares 698,974,104 100.00 279,589,641 978,563,745 100.005
2. Statement on the top ten shareholders and the top ten shareholders holding shares not subject
to trading moratorium as of 30 Jun. 2009
Unit: Share
Total number of shareholders 134,845
Particulars about shares held by the top ten shareholders
Name of shareholders Nature of shareholders
Proportion
(%)
Total number
of shares held
Shares subject to trading
moratorium held
Shares pledged or
frozen
OSRAM Prosperity Holding Co., Ltd Foreign corporation 13.47% 131,815,685 131,815,685 0
Prosperity Lamps and Components Ltd. Foreign corporation 10.50% 102,751,648 0 0
DBS VICKERS (HONG KONG) LTD
A/C CLIENTS
Foreign corporation 1.21% 11,799,976 0 Unknown
Hai Tong Securities (HK) Brokerage Ltd Foreign corporation 1.16% 11,388,832 0 Unknown
Guangzhou Prosperity Lamps and
Components Trade Co., Ltd
Domestic non-stated
corporation
1.04% 10,148,040 0 0
EAST ASIA SECURITIES COMPANY
LIMITED
Foreign corporation 0.97% 9,527,080 0 Unknown
Zhuang Jianyi Foreign nature person 0.83% 8,155,732 8,155,732 0
Industrial & Commercial Bank of
China-Rongtong Shen Securities 100
Index Fund
Domestic non-stated
corporation
0.64% 6,287,257 0 Unknown
Chen Xun Domestic nature person 0.49% 4,788,538 0 Unknown
Lu Shanqing Domestic nature person 0.37% 3,644,909 0 Unknown
Particulars about shares held by the top ten shareholders not subject to trading moratorium
Name of shareholders Shares not subject to trading moratorium held Type of shares
Prosperity Lamps and Components Ltd. 102,751,648 A-share
DBS VICKERS (HONG KONG) LTD A/C CLIENTS 11,799,976 B-share
Hai Tong Securities (HK) Brokerage Ltd 11,388,832 B-share
Guangzhou Prosperity Lamps and Components Trade
Co., Ltd
10,148,040 A-share
EAST ASIA SECURITIES COMPANY LIMITED 9,527,080 B-share
Industrial & Commercial Bank of China-Rongtong
Shen Securities 100 Index Fund
6,287,257 A-share
Chen Xun 4,788,538 A-share
Lu Shanqing 3,644,909 A-share
Zhao Xiyi 3,245,255 A-share
NIHK-CUSTOMERS’SEGREGATED ACCOUNT 3,099,667 B-share
Explanation on associated
relationship among the top ten
shareholders or
acting-in-concert
Among the top ten shareholders of the Company, there exists association relationship among OSRAM
Prosperity Holding Company Limited, Prosperity Lamps and Components Limited and Zhuang Jianyi, but they
did not belong to acting-in-concert. The Company was unknown whether there is any associated relationship
among the any other shareholders among the top ten shareholders and among the top ten shareholders not
subject to moratorium, or whether there is any action-in-concert among them as described by the
Administrative Rules on Information Disclosure about Changing of Shareholding Status.6
3. Number of shares held by the top ten shareholders holding shares subject to moratorium and
trading moratorium
Unit: Share
No.
Name of shareholders subject to
moratorium
Shares subject to
moratorium held
Date of listing
for trade
Additional shares
could list for trade
Trading moratorium
1
OSRAM Prosperity Holding Co.,
Ltd
131,815,685 25 Apr. 2011 131,815,685
No listing and transfer may be
taken within 5 years as of the
date when the shares of the
Company held by this company
obtain the trading right.
2
Foshan Agent of Agricultural
Bank Trust Company
1,689,188 Uncertain 1,689,188
3 Foshan Jingmei Chemical Factory 675,675 Uncertain 675,675
4
Foshan Xinghua Commercial
Group Co., Ltd
337,838 Uncertain 337,838
5
Foshan Southern Industrial
Development Co., Ltd
337,837 Uncertain 337,837
6
Foshan Hongtu E-education
Centre
168,966 Uncertain 168,966
7
Nanhai Jianfeng Glass Mosaic
Factory
168,917 Uncertain 168,917
8
Zhongda Parts Operation
Department of Liwan District,
Guangzhou
111,488 Uncertain 111,488
9
Foshan Tangtou Industry & Trade
Company Sales Department
101,353 Uncertain 101,353
10 Foshan Jin Ge Mansion 87,973 Uncertain 87,973
Not all materials for application
on releasing trading
moratorium were ready.7
III. Particulars about Directors, Supervisors and Senior Executives
1. Change in shares held by directors, supervisors and senior executives
Name Duty
Share held at
the
year-begin
Increase in
this period
Decrease
in this
period
Shares held
at the report
period
Reason of change
Zhong
Xincai
Chairman of the
Board as well as
General Manager
602,647 241,059 — 843,706 Shares from converting the
public reserve into share capital
Zhuang
Jianyi
Vice Chairman of
the Board
5,825,523
(B-share)
2,330,209 — 8,155,732
Shares from converting purchase
shares into share capital
Liu
Xingming
Standing Director,
General Manager
241,200 96,480 — 337,680
Shares from converting the
public reserve into share capital
Mr.Joerg
Thaele
Director — — — — —
Francis
Michael
Piscitell（i Pan
Dali）
Director — — — — —
Ye Zaiyou Director — — — — —
Liang Zhen
Independent
director
— — — — —
Wu
Jianhong
Independent
director
— — — — —
Zhang
Haixia
Independent
director
— — — — —
Ye
Zhenghong
Chairman of the
Supervisory
Committee
11,400 4,560 — 15,960
Shares from converting the
public reserve into share capital
Li Jianwu Supervisor 39,007 15,603 — 54,610
Shares from converting the
public reserve into share capital
Jiao
Zhigang
Supervisor 13,843 5,537 — 19,380
Shares from converting the
public reserve into share capital
Chen
Guanbiao
Supervisor — — — — —
Chen
Weiqiang
Supervisor — — — — —
Huang
Guanxiong
Deputy GM 79,852 31,941 — 111,793
Shares from converting the
public reserve into share capital
Lin Yihui Secretary of the
Board
59,417 23,767 — 83,184
Shares from converting the
public reserve into share capital
Wang
Shuqiong
Manager of
Financial Dept.
92,224 36,890 — 129,114
Shares from converting the
public reserve into share capital
Total — 6,965,113 2,786,046 — 9,751,159 —8
2. Engagement or dismissal of directors, supervisors and senior executives during the report
period.
During the report period, directors, supervisors and senior executives remained unchanged.
IV. Report of the Board of Directors
(I) During the report period, the Company kept a steady development in operation without
significant change in any main financial target.
(II) Operation during the report period
The business scope of the Company remained unchanged during the report period. In
accordance with the market status and the production and operation target for the year 2009,
the Company has strengthened the operation management, controlled the costs, enlarged the
market development force and expanded the production scale. Meanwhile, the Company
accelerated development of production scale of Gaoming Industrial Park. At present, seventeen
T8 product lines have been put into production. During the report period, the Company has
kept a stable development in its production and operation as a whole. However, due to
influence of financial crisis, export of products was under great pressure. Sales income of the
first half year of 2009 registered a decrease from the same period of last year. From Jan. to Jun.
2009, the Company has realized the income from main operations of RMB 73,867.97, down
8.59% year-on-year, and total profit amounting to RMB 10,040.04, down 50.45% year-on-year,
as well as net profit of RMB 7,118.04, down 55.49% year-on-year. Profit of the first half year
of 2009 decreased over the same period of last year, mainly because the Company sold out 31
million stocks of Communication Bank in the first half year of 2008 and increased investment
income; but there were no investment income in the first half year of 2009. However, the main
operations of the Company kept a stable development, with the gross profit rate increasing by
4.54% over the same period of last year.
2. Main operations classified according to industries and products
Unit: RMB’0000 Yuan
Income from
main
operations
Cost of
main
operations
Gross
profit
ratio (%)
Increase/decrease
of income from
main operations
year-on-year (%)
Increase/decrease
of cost of main
operations
year-on-year (%)
Increase/decrease
of gross profit ratio
year-on-year (%)
Manufacturing
industry of light
73,867.97 55,742.34 24.54% -8.59% -13.13% 4.54%
Main operations classified according to products
Electro-optical
source products
73,867.97 55,742.34 24.54% -8.59% -13.13% 4.54%
The gross profit ratio as of this report period was 24.54%, a increase of 4.54 percent compared
with the gross profit ratio of 20.00%% in the same period of last year, which was mainly
because the Company controlled cost of production and operation in the first half year of 2009.9
3. Main operation classified according to products
Unit: RMB’0000 Yuan
Region Income from main operations Increase/decrease of income from main operations
Domestic 51,737.19 2.21%
Overseas 21,318.69 -27.96%
4. In the report period, the Company’s profit composing and main operations did not change.
5. In the report period, there was no other operating business that greatly influenced the
Company’s net profit except for investment income.
(III) Investment during the report period
1. Use of raised proceeds
During the report period, the Company had no proceeds raised through share offering or the
application of proceeds raised through previous share offering continued to the report period.
2. Significant investment projects by non-raised proceeds during the report period.
During the report period, the Company has implemented the resolution passed in the
Shareholders’ General Meeting to invest five projects by its self-owned capital of more than
RMB 600 million within three to five years, namely, to arrange and make the investment of
metal halide lamps, investment and expanded production of energy-saving lamps and
fluorescent lamps based on plan. All projects for new lamps and accessories have been put into
production, and sold together with optical source products of the Company.
V. Significant Events
1. During the report period, the Company implemented dividend distribution plan approved by
the Shareholders’ General Meeting 2008, that is to distribute cash dividends at the rate of RMB
2.20 for every 10 shares, meanwhile, implemented the plan of transferring share capital from
capital reserve at the rate of 4 for 10.
2. During the report period, there were no significant lawsuit and arbitration events in the
Company.
3. During the report period, there were no significant purchase, sales and assets reorganization
events in the Company.
4. During the report period, associated transactions occurred in the Company:
Associated transactions related to daily operation
Unit: RMB Yuan
Selling products and providing labor to
related parties
Purchasing products and receiving
labor from related parties
Related parties
Transaction
amount
Proportion in same
transaction amount
Transaction
amount
Proportion in same
transaction amount
Prosperity Lamps and Components Limited 29,835,879.07 4.02% 0
Prosperity Electrical (China) Co., Ltd. 900,788.18 0.12% 4,991,750.37 1.64%
Prosperity (Hangzhou) Lighting Electrical Co.,
Ltd.
7,959,292.57 1.07%
OSRAM (China) Lighting Ltd. 15,489,747.91 2.09%10
Foshan (Xinxiang) Electro-optical Machinery
Co., Ltd.
5,425,914.00 1.78%
Hangzhou Times Lighting & Electrical Appliance
Co., Ltd
208,501.02 0.07%
Total 54,185,707.73 7.31% 10,626,165.39 3.50%
From January to June 2009, the Company paid sales commission of RMB 936,080.29 in
total to Prosperity Lamps and Components Limited;
The aforesaid transactions were all priced based on the market price, which was fair and just;
The related transactions were necessary for the normal operation of the Company, which was
benefit to the long-term development of the Company.
No related transaction would adversely affect the independence of the Company.
5. The Company never held stocks of other listed companies during the report period.
6. Shares of non-listed financial enterprises and companies planned to list held during the
report period
Unit: RMB Yuan
Except for the above said equity of three financial enterprises, the Company did not hold any
equity of other non-listed financial enterprises, securities companies, insurance companies,
trust companies and futures companies in the report period.
7. Significant contract
① In the report period there was no significant trust, contract or lease of assets from other
companies, nor trust, contract and lease of our Company’s assets to any other companies which
occurred or extended to this report period.
② In the report period there was no significant guarantee in the Company occurred or extended
to this report period.
③ In the report period there was no significant trust for financing the cash assets of the
Company occurred or extended to this report period.
8. In the report period, no shareholders of the Company holding more than 5% (including 5%)
of Company’s shares or the Company has made any promise during the report period, or had
any promises made before and extended to this report period, which may possibly influence the
operation achievement and financial status of the Company.
9. The independent directors have issued the special explanations and independent opinions for
the related parities’ funds appropriation and external guarantee provided by the Company: As
examined and verified by the independent directors of the Company regarding the external
guarantee and the controlling shareholders’ and related parties’ funds appropriation, they
believed that the Company neither provided external guarantee, rule-breaking guarantee in first
Full name
Initial
investment
amount
Number of
shares held
(share)
Proportion in
equity of the
Company
Book value at
period-end
Gains and
losses in the
report period
Changes of
owners’ equity in
the report period
China Everbright Bank 30,828,816.00 24,176,768 0.29% 30,828,816.00
Guangdong Development Bank
Foshan Branch
500,000.00 229,792 0.002% 500,000.00
Xiamen City Commercial Bank 115,009,875.00 49,950,000 9.99% 115,009,875.00
Total 146,338,691.00 74,356,560.00 - 146,338,691.0011
half year of 2009, nor borrowed or lent funds or appropriated the funds with controlling
shareholder or related parties holding less 50% shares of the Company; meanwhile, there was
no external guarantee or rule-breaking guarantee occurred in previous years and accumulated
to 30 Jun. 2009, and no borrowing or lending the funds nor appropriation funds with
controlling shareholder and related parties holding less 50% shares of the Company occurred in
previous years and accumulated to 30 Jun. 2009.
10. The Company’s financial report of this period has not been audited.
11. Neither the Company nor its Board of Directors nor any of its directors has received any
check, administrative punishment or notice of criticism circulated by the China Securities
Regulatory Commission, or punishment from other administrative departments or public
condemn from the Stock Exchange during the report period.
12. Statement on reception of investigation, communication and interviews in the report period
Reception time Reception place Reception way Visitor Main discussion and materials provided
11 Feb. 2009 The Company Field investigation GF Securities Acquainting operation status of the Company
12 Feb. 2009 The Company Field investigation Citic Securities Acquainting operation status of the Company
12 Feb. 2009 The Company Field investigation Bohai Securities Acquainting operation status of the Company
12 Feb. 2009 The Company Field investigation Zhonghai Fund Acquainting operation status of the Company
4 Mar. 2009 The Company Field investigation CJIS Securities Acquainting operation status of the Company
4 Mar. 2009 The Company Field investigation
China Life Assets
Management Co., Ltd
Acquainting operation status of the Company
9 Mar. 2009 The Company Field investigation China Merchants Securities Acquainting operation status of the Company
9 Mar. 2009 The Company Field investigation Yinhua Fund Acquainting operation status of the Company
12 Mar. 2009 The Company Field investigation Greatwall Securities Acquainting operation status of the Company
1 Apr. 2009 The Company Field investigation Galaxy Securities Acquainting operation status of the Company
1 Apr. 2009 The Company Field investigation Hong Yuan Securities Acquainting operation status of the Company
1 Apr. 2009 The Company Field investigation Industrial Securities Acquainting operation status of the Company
1 Apr. 2009 The Company Field investigation Tian Hong Fund Acquainting operation status of the Company
24 Apr. 2009 The Company Field investigation GF Securities Acquainting operation status of the Company
24 Apr. 2009 The Company Field investigation Chang Xin Fund Acquainting operation status of the Company
13 May 2009 The Company Field investigation GE Assets Management Acquainting operation status of the Company
15 May 2009 The Company Field investigation Essence Securities Acquainting operation status of the Company
15 May 2009 The Company Field investigation Yinhua Fund Acquainting operation status of the Company
19 May 2009 The Company Field investigation Sinolink Securities Acquainting operation status of the Company
19 Jun. 2009 The Company Field investigation Guangzhou Securities Acquainting operation status of the Company12
13. Reference for information disclosure of significant events of the Company in the report
period
No. Date
Serial
No.
Contents of Public Notice
1 16 Jan. 2009 2009-001
Public Notice on Resolutions of the 14t h Meeting of the 5t h Board
of Directors
2 16 Jan. 2009 2009-002 Public Notice on related transaction of assignment of trademark
3 24 Feb. 209 2009-003
Public Notice on Foshan Electrical and Lighting Co., Ltd Being
cognized as Hi-tech Enterprise and Awarding state special
appropriation for Replacement of incandescent lamp by Energy
Saving Lamps
4 9 Apr. 2009 2009-004 Summary of Annual Report 2008
5 9 Apr. 2009 2009-005
Public Notice on Resolutions of the 15t h Meeting of the 5t h Board
of Directors
6 9 Apr. 2009 2009-006
Public Notice on the 6t h Meeting of the 5t h Supervisory
Committee
7 9 Apr. 2009 2009-007
Public Notice on Announcement of Holding the Shareholders’
General Meeting 2008
8 14 Apr. 2009 2009-008 Public Notice on Forecast of Rise of the 1s t quarter of 2009
9 24 Apr. 2009 2009-009 The 1s t Quarterly Report 2009
10 24 Apr. 2009 2009-010
Public Notice on Popularization projects of High-Efficiency
lighting products won the bidding
11 27 May 2009 2009-011 Public Notice on the Shareholders’ General Meeting 2008
12 3 Jun. 2009 2009-012
Suggestive Public Notice on Releasing Shares subject to Trading
Moratorium
13 12 Jun. 2009 2009-013
Public Notice on Undertaking task of popularization of
High-Efficiency lighting products
14 19 Jun. 2009 2009-014
二Public Notice on Implementation of Dividend Distribution and
Proposal on Capital Reserve Transferring into Share Capital in
2008
All the above public notices were published on China Securities Journal, Securities Times and
HK Ta Kung Pao as well as http://www.cinfo.com.cn.13
VI. Financial Report（Unaudited）
(I) Accounting Statement
Balance Sheet （Attachment: Table I）
Income Statement （Attachment: Table II）
Cash Flow Statement （Attachment: Table III）
Statement of Provision for Impairment of Assets（Attachment: Table IV）
Consolidated Statement of Change in Owners’ Equity（Attachment: Table V）
(II) Notes to Accounting Report
I . Company Prof i l e
Company History
Foshan Electrical & Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited
company jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed
Brick Field, and Foshan Poyang Printing Industrial Co. on Oct. 20, 1992 by raising funds under the approval
of YGS (1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in
Stock System of Guangdong Province and the Economic System Reform Commission of Guangdong
Province, is an enterprise with its shares held by both the corporate and the natural persons. As approved by
China Securities Regulatory Commission with Document (1993) No. 33, the Company publicly issued 19.3
million shares of social public shares (A shares) to the public in Oct., 1993, and was listed in Shenzhen Stock
Exchange for trade on Nov. 23, 1993. The Company was approved to issue 50,000,000 B shares on Jul. 23,
1995. And, as approved to change into a foreign-invested stock limited company on Aug. 26, 1996 by (1996)
WJMZEHZ No. 466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the
People’s Republic of China. On Dec. 11, 2000, as approved by China Securities Regulatory Commission
with ZJGS Zi [2000] No. 175 Document, the Company additionally issued 55,000,000 A shares. At approved
by the Shareholders’ General Meeting 2006, 2007 and 2008, the Company implemented the plan of
capitalization of capital reserve, after the transfer, the registered capital of the Company has increased to
RMB 978,563,745.00 Yuan. And the registration code for corporate business license is QGYZZ No. 002889.
Legal representative: Zhong Xincai
Address: No. 64, Fenjiang North Road, Foshan, Guangdong Province
Business Scope of the Company
R&D and production of electro-optical source products, electro-optical source equipment and electro-optical
accessories, sales of such products made by it on both the domestic and overseas markets, and the relevant
engineering consultation service. The main products of the Company include all kinds of electro-optical
source products.
Basic Structure of the Organ of the Company
Shareholders’ General Meeting is the highest authority organ of the Company, Board of Directors is an
executive organ to carry out the provisions formulated by the Shareholders’ General Meeting, Board of
supervisors is an internal supervision organ of the Company. and the General Manager is responsible for
routine operation and management. Up till the end of the reporting period, the Company owns 8 holding
subsidiaries such as Foshan Chanchang Lighting Components Co., Ltd., Foshan Chansheng Electronic14
Ballast Co., Ltd., Foshan Modern Lighting Co., Ltd., Foshan Chanchang Electric Appliance (Gaoming) Co.,
Ltd., Foshan Taimei Times Lighting Co., Ltd., Foshan Gaoming Fuwan Landscape Resort Co., Ltd.,
Prosperity (Nanjing) Lighting Components Co., Ltd. and Foshan Lighting Co., Ltd..
I I . St a t ement of Compl i anc e wi th Corpor a t e Ac count ing St anda rds
The financial statements prepared by the Company is in compliance with the requirements of Accounting
Standard for Business Enterprises, which give a true and fair view of the state of affairs of the company as
for the financial position and operating results & cash flows.
I I I . Ba s e of Financ i a l St a t ement Pr epa r a t ion
With sustaining operation as a postulate premise, the Company prepared the financial statement in
accordance with the regulations related with the Accounting Standard for Business Enterprise – General
Standard (CZBL No. 33) and the Circular of the Ministry of Finance of the People’s Republic of China on
Printing and Issuing the Thirty-eight Specific Standards such as Accounting Standard
for Business Enterprises No. 1 - Inventories (CK[2006] No. 3) promulgated by the Ministry of Finance on
February 15, 2006, and the Circular of the Ministry of Finance on Printing and Issuing Accounting Standard
for Business Enterprise - Application Guide (CK [2006] No. 18) (hereinafter referred to as “the new
accounting standard”) promulgated by the Ministry of Finance on October 20, 2006, as well as the Circular
on Issuing the No.7 Questions and Responses of Information Disclosure Standards of Public Companies
------ Compilation and Disclosure of the Comparative Financial Accounting Information during the
Transition Period between the New and Old Accounting Standards issued by China Securities Regulatory
Commission on February 15, 2007 and in line with the actual transactions and issues, and the following
primary accounting policies and accounting estimates.
IV. Ma in a c count ing pol i c i e s , a c count ing e s t ima t e s and me thods of pr epa r ing the Company’s
consol ida t ed f inanc i a l s t a t ement
Fiscal Year
A fiscal year is accounted from January 1 to December 31.
Functional Currency
Renminbi is taken as functional currency of the Company.
Accounting Basis and Principle
The accounting basis of the Company is the accrual system; generally by adopting of historical cost as the
accounting principle. And the Company adopts measurement replacement costs, net realizable values,
present values and fair values when the confirmed accounting elements accord with the requirements of the
accounting standard for business enterprise and can be reliably measured.
Accounting Method for Foreign Currency
Company day-to-day accounting operations for foreign currency non-monetary items is taken the medium
price issued on the first day of the month on the foreign exchange market as a standard, being accounted on
the basis of exchanged standard money. At end of each month, adjust the pecuniary resources and items with
respect to money debtor and creditor account on the balance sheet under the price of that day on the foreign
exchange market. The market benchmark rate on the same day when business is conducted is adopted for15
the exchange rate of foreign currency. As for any project involved in foreign currency, the balance of the
foreign currency is exchanged to RMB in accordance with the market benchmark rate at the end of the year.
The balance between the exchanged RMB amount at the end of the year and the original carrying amount,
which is related to the fix assets construction or purchase, shall be capitalized, and which is related to
production and operation shall be counted into financial costs.
Determination standard of cash and cash equivalents
Cash equivalents refer to a kind of investment that has a short duration of repayment (within 3 months),
mobility and low risk of price change, and is easy to be changed into a certain known amount of cash.
Financial Instruments
Financial Assets Classification, Recognition and Measurement
—— Four sorts are divided by the Company in the initial recognition: transaction financial assets, loan and
receivables, available-for-sale financial assets, and held-to-maturity investments. Carry out and evaluation at
each end of term. For initial recognition of financial assets, fair value is adopted. As for transaction financial
assets, related transaction costs are included in the current profit and loss. For other types of financial assets,
related transaction costs are included in the initial amount identified.
—— Transaction Financial Assets. Including the assets that the Company intends to sell in the near future at
the fair value as a short-term profit gaining model, and its extended financial portfolio of assets, and
derivative financial assets (designated as effective hedging tool for derivatives, financial guarantee contracts
are derivatives, and not in an active market in the Price and its fair value can not be reliably measured linked
to the interests of investment tools and are subject to the delivery settled equity instruments except
derivatives.) Transaction financial assets are accounted at the fair value after trading and the profit or loss
arising from change of faire value is accounted in the current profit and loss.
—— Loan and Receivables: The Company would take those assets that have not return from the active
market, fixed return amount or determined non-derivative financial assets to be loan and receivables, Which
is measured in accordance with real interest rate after amortized cost. Any gaining or loss after termination
or when value is reduced or when amortizing, is accounted in the current gains and losses.
—— Available-for-sale Financial Assets: The Company’s such assets refer to non-derivative financial assets
that are designated in the beginning to confirm available-for-sale financial assets, in addition to loans and
receivables and held-to-maturity investment, and other non-derivative financial assets out of financial
transactions assets, which is follow up measured at fair value of the profits or losses arising from fair value
change, and is directly accounted into the owner's equity, until the termination of such financial assets being
confirmed, or is accounted into current gains and losses when fair value is reduced. As the change of
holding wills or holding capacity, air value could not be no longer calculated reliably, or the holding time
has exceeded two entire fiscal years and fair value calculation becomes reasonable, such assets are measured
by the Company based on amortized cost. The book value of such financial assets is taken as amortized cost.
Related gains or losses of such financial assets that are originally calculated into directly owners' interests
are treated as the following two models: ① For the financial assets that have a fixed maturity date, actual
rate amortization method is adopted for the rest period and is accounted into the current gains and losses. For
the difference between amortization costs and amount at the date of maturity, actual rate amortization
method is adopted to account into current gains and losses. If occurring a value reducing in the following up
later years, roll out related gains and losses of the owners’ interests and directly included in the current
profits and losses. ② As for the financial assets that have no fixed deadline, take those as the owner's16
equity until the financial assets in the subsequent accounting period or termination of impairment occurred
during the confirmation transferred, included in current profit and loss.
—— Held-to-maturity Investments: The Company divides the non-derivative financial assets that the
management has a clear intention and has ability to hold to maturity, and has a fixed maturity date, and has a
fixed return amount, to be held-to-maturity investments. For such assets, maturity investments in real interest
rates, while sharing the cost to conduct a follow-up measurement, the termination of confirmed or
amortization, impairment in the profits or losses, gains and losses included in the current period.
held-to-maturity investment of the sale or re - Categories amount, so that the remaining part of the
investment is still as held-to-maturity investment is not appropriate, the rest of the investment will be
re-classified as available-for-sale financial assets, and to re-classification of the fair value of the carry-over,
and in this fiscal year and after two full fiscal years, no longer the financial assets classified as
held-to-maturity investments. in the weight classification, the remaining part of the investment cost more
than its share of the difference between the fair values and included all the rights until the termination of
financial assets available for sale to confirm or to the impairment occurred, included in current profit and
loss.
Classification, Recognition and Measurement of Financial Liabilities
— For initial recognition of financial liabilities, the Company divides it into two categories as follows:
Transaction financial liabilities, and other financial liabilities. The former of which is included in the fair
value and related costs are included in the current gains and losses; and the later of which of related costs are
included in initial recognition amount.
— Trading Financial Liabilities: Which refers to financial liabilities and financial liabilities and derivative
financial liabilities that the Company for the repurchase fair value in the recent period for short-term profit
gaining, model portfolio management tool (designated as effective hedging tool for derivatives, financial
guarantee contracts are derivatives, and not in an active market in the Price and its fair value can not be
reliably measured linked to the interests of investment tools and are subject to the delivery settled equity
instruments except derivatives.) which are included in the current gains and losses based on the change of
fair value
— Other Financial Liabilities: Effective interest method and amortized cost are adopted for other financial
liabilities; gains and losses generated from follow-up measurement of termination confirmation and
amortization are included in current gains and losses.
Confirmation of Fair Value of the Equity Instruments
— For financial instruments existed in active market, which fair value is determined according to market
price; for the financial instruments existed in non-active market, estimation is adopted to determine its faire
value. And the estimation include current transaction of each party in the familiar markets and essential the
same other faire values of financial instruments and currency flow analysis and black-Scholes option pricing
model.
Impairment Test of financial assets and declining-balance method
—The Company checks book value of trading financial assets on the date balance sheet is made, as for the
financial assets that have objective evidences to show the financial assets impairment occurred, aforesaid
difference against the impairment provision.
——Measurement of financial assets impairment measured on basis of amortized cost
If there is objective evidence to show that financial assets based on amortized cost are reducing, reduce book
value of such assets to foreseen future the present value of cash flow (excluding the future credit losses), the
amount accounted is the loss amount of assets, which are included in current gains and losses. Impairment17
test is adopted for the major assets separately. For non-big amount of financial assets individual or a
combination of impairment testing, does not exist have been identified by The value of objective evidence of
the amount of individual assets, again with similar credit risk characteristics of financial assets constitute a
combination of impairment testing, has been the basis of a single Provision for impairment of financial
assets in the portfolio will no longer be tested for impairment. in the follow-up period and, if objective
evidence shows that the value of financial assets has been restored, and with the objective to confirm the loss
in respect of matters occurring after the original recognized impairment losses should be reversed, the gains
and losses included in the current period. after it back The book value should not exceed Provision for
impairment assuming no circumstances under which financial assets in the back, I share the cost. measured
by share of the financial costs more than the actual loss of assets, and reduces related provision for
impairment has been prepared.
——Available-for-sale Financial Assets
If there is objective evidence to show that available-for-sale financial assets are reducing, even if the
termination of such financial assets has not reached, the cumulative decline in a loss for owners directly
included in the current gains and losses. The cumulative decline loss is the initial cost of such assets,
deducted the amount of recovery and amortization, fair value when impairment occurs and net value of the
original in the profit or loss.
Standards of Provisions on Bad Debts of Receivables and Withdrawal
— Bad debts are confirmed based on the following principles:
— Uncollectable claim in the event that debtor’s bankruptcy after legal proceedings;
— Debtor’s death that causes debt rights failure;
— Debtor dose not fulfill obligations for three years and there is conclusive evidence to show that the
recovery of claims is impossible, it may be listed to be bad debt after being approved by board of directors.
— Allowance method is adopted for bad debts, and the provisions are as follows:
— If at the end of term there is objective evidence to show receivables impairment, reduce its book value
to future cash flows, and the amount is recognized as an asset impairment losses, included in the
current gains and losses. The future present value of cash flow forecasted is determined on the basis
of the original effective interest rate discounted (excluding credit losses that have not yet occurred),
in addition to values of related guaranty. The original effective interest rate is the rate that is
determined in the initial recognition of the receivable. As for short-term receivables there is small
difference between forecasted future cash flow and present value, so there is no forecasted future cash
flow discounted.
— Impairment test separately to the receivable that has significant amount is required. If there is objective
evidence to sow impairment of its occurrence, confirm its impairment loss and bad debts in accordance with
its book value balance that is lower than future present value of cash flow. The significant amount refers
to receivable balance that ranks the top five or accounting for 10 percent receivables in total.
— If there is objective evidence to show impairment of a single non-major receivable, carry out
impairment test and confirm impairment loss and provision for bad debt. For other individual non-significant
amount of receivables, confirm its impairment loss and drawing bad debts provision on the basis of actual
loss ratio of accordance receivables of prior year, and 6% present end balance of receivables (excluding
consolidated financial statements of the exchanges between enterprises of internal funds.)
Accounting Method of Inventory
Inventory Category: Raw materials, products in processing, commissioned processing materials or finished
products or semi-finished and consumables.18
Inventory accounting: the inventories of the Company shall be made a daily accounting in the light of the
planned cost. Where the inventories shall be measured in the light of the planned cost when obtained and
outgone, and the cost difference shall be allotted month by month.
Inventory system: a perpetual inventory system is adopted.
Inventory Decline and Provision：In accordance with the individual inventory items to be lower than the net
value of the difference between the cost of carrying inventory provision for decline in value. Finished
products and materials for the sale can be used directly in the sale of the stock to the stock estimated selling
price minus the estimated cost of sales and related taxes and fees after the amount of its net realizable value;
need to go through the processing of materials inventory, production of finished products to the estimated
selling price less the completion of the estimated cost will be , it is estimated that the cost of sales and related
taxes and fees after the amount of its net realizable value.
Accounting Method on Long-term Investment
Long-term equity investment valuation
—Long-term equity investment arising from corporate merger
—As for the merger of the same type, the initial investment cost is taken according to the book value of
long-term cost, and related cists directly are included the current gains and losses.
—As for the merger of non-same type, the merger costs for the purchase of the Company in order to obtain
control of the other party to pay the assets or liabilities and commitments issue of the rights and interests of
the fair value of securities for the conduct of a corporate merger. Directly related to the costs included in
cost of the investment. Contract or the merger agreement may affect the future costs of the merger agreement
to purchase, if the estimate of future issues is likely to occur and the impact of the merger costs can be a
reliable measurement of the amount of the Company shall be included in its cost of the investment.
—Long-term equity investment based on currency payment. Take actual purchase price as the initial costs
that include directly related costs with respect to long-term equity gaining, taxes and other necessary
expenses.
—Long-term equity investments based on issuance of equity securities. Take faire value of equity securities
issued as initial investment cost.
—Long-term equity investments invested by investors. Take value provided in the contract as initial
investment cost, but except the value that is not fair.
—Long-term equity investment based on non-monetary assets exchange (commercial-type exchange). Take
fair value of such investment and related taxes as investment costs.
—Long-term equity investment gained from debt restructuring. Creditor has the rights to share faire value of
such share of the debtor's investment.
Follow-up measurement and revenue recognition on long-term equity investment
—Absorption costing method is adopted for the long-term equity investment that the Company is able to
control, and the investment that can not be controlled by the Company, and major investment that there is no
return from the market and it is impossible to measure its faire value. The cash dividends or net profit
distribution declared by the invested organ is included in the current profit, but is limited to accumulative
net profit distribution, the long-term investment that can be controlled by the Company, and fair value can
not be reliably measured by the cost of long-term equity investment method. declared to be distributed by
the investment of cash dividends or profits recognized as current investment income, but only Investment
units to be accepted after the total investment in the net profits of the quota.19
—Corporation's investment units have joint control or significant influence of the long-term equity
investment by the equity method. Long-term equity investment than the initial investment cost of
investment to be enjoyed by the investment unit fair value of identifiable net assets share, not adjusted
long-term equity investment in the initial investment cost long-term equity investment is less than the initial
investment cost of investment to be enjoyed by the investment unit fair value of identifiable net assets share,
and its variance included in the current loss, while the long-term equity investment costs. confirmed by the
investment units in a net loss to long-term equity investments and the book value of investments was
essentially a unit of the long-term interests of net investment is reduced to zero. limit (the Company has to
bear the additional losses with the exception of obligations). confirmation should be Investment units to be
the share of net profit or loss when the investment was to achieve the investment units to the fair value of
identifiable assets based on the investment unit's net profit was adjusted for confirmation - Company to be
invested units with a common control or significant impact on the long-term equity investment by the equity
method. long-term equity investment than the initial investment cost of investment to be enjoyed by the
investment unit fair value of identifiable net assets share, and not the long-term equity investment of the
initial investment cost, long-term equity investment is less than the initial investment cost of investment to
be enjoyed by the investment unit fair value of identifiable net assets share, and its variance included in the
current loss, while the long-term equity investment costs. confirmed by the investment units in a net loss to
long-term equity investments and the book value of investments was essentially a unit of the long-term
interests of net investment is reduced to zero. limit (the Company has to bear the additional losses with the
exception of obligations). should have been recognized in the investment unit share of the net profit or loss,
investment to be made of the investment units to the fair value of identifiable assets based on the investment
unit's net profit was adjusted for confirmation.
Impairment of long-term Investment
—At the end of reporting period, the Company shall check each item of the long-term investments. If the
recoverable amount of the assets are less than book value as market price declines or the Company invested
runs business weak, and it is impossible to be recovered within the future period forecasted, take the
difference of long-term investment of book value as the impairment provision. The recoverable amount in
accordance with the fair value of assets minus the net cost of disposal of assets and expected future cash
flows are the two values identified between higher. a long-term investment impairment losses recognized,
and in the subsequent accounting period may not be back - Company in the end of the reporting period on
the long-term investment itemized check, if the market value continued to decline due to investments or
units operating conditions worsening reasons for its recoverable amount lower than the book value, and this
could reduce the value of the estimated future period not restored, the recoverable amount will be lower than
the long-term investment in the difference between the book value as a long-term investment for impairment.
Recoverable according to the amount of the fair value of assets minus the net cost of disposal of assets and
expected future cash flows between the present values of the higher determined. long-term investment
impairment losses recognized, and in the subsequent accounting period shall not be reversed.
Fixed Asset Valuation and Depreciation Methods
Fixed asset criteria: company’s fixed assets are defined as the tangible assets for production and services,
lease or management, which has more than one year of life-span for use, and has a higher unit value.
Classification of fixed assets: buildings, machinery and equipment, transport equipment and other
equipment.
Fixed asset valuation and depreciation methods: Fixed assets at actual cost and straight-line method are
adopted in accordance with the estimated economic life of fixed assets and the projected net residuals20
depreciation rate. Various estimated economic life of fixed assets and depreciation rates are as follows:
Categories Useful life Yearly depreciation rate Residuals rate
Housing and building 3—25 31.67%-4.75% 5%
Machinery and equipment 2—8 47.50%-11.88% 5%
Transportation equipment 5—10 19%-9.50% 5%
Other equipment 2—8 47.50%-11.88% 5%
Fixed assets impairment provisions: The Company shall carry out check to each fixed asset at the end of
term. If the recoverable value is less than book value because of market price decline, aged technologies,
damage or long-time idle, the difference is adopted for its impairment provisions, which can not be returned
as of being confirmed. Recoverable amount in accordance with the fair value of assets minus the net cost of
disposal of assets and expected future cash flows of the present value identified between higher. future cash
flows of assets is the value of assets in accordance with the sustainable use of process and the final disposal
of produced by the estimated future cash flows, select appropriate discount rate for its discount rate after
the to be determined. fixed assets for impairment: in the end of the reporting period on fixed assets itemized
check, because if the market value continued to decline, or technological obsolescence, damage and
long-term idle, and other factors, led to the recoverable amount of fixed assets below their book value,
according to the difference Provision for impairment of fixed assets, an impairment loss of fixed assets
identified, and in the subsequent accounting period shall not be reversed. recoverable amount in accordance
with the fair value of assets minus the net cost of disposal of assets and expected future cash flows between
the present values of the higher determined. future cash flows of assets is the value of assets in accordance
with the sustainable use of process and the final disposal of produced by the estimated future cash flows,
select appropriate discount rate for its discount After the amount to be determined.
Accounting Methods for Construction-in-progress
Actual cost is taking as a base for construction-in-progress. And it is transferred to be fixed assets when it
reaches usable statue estimated at the provisionally estimated price. After final accounts of project, adjust
book value according to actual cost. Purchase or construction of the production line with the conditions of
capital assets specialized lending or borrowing of the general occupation of the borrower and the borrower
interest in supporting specific borrowing costs in the purchase or construction of the production line with
the conditions of capital assets can be used or can be scheduled for sale by the state before can be included
in the amount of capital assets cost was included in the current loss. construction - in-progress at actual cost,
and can be used to target by state temporarily transferred to the fixed assets valuation in the accounts for
completion, according to the actual cost of adjusting the book value of fixed assets. acquisition or
construction or the production of capital assets and the conditions of the specialized lending or borrowing
of the general occupation of the borrower and the borrower interest in supporting specific borrowing costs
in the purchase or construction of the production line with the conditions of capital assets can be used or
can be scheduled for sale Before the state can be on the amount of capital assets included in the cost was
included in the current loss.
Impairment Provisions for Construction-in-progress: The Company shall carry out a comprehensive check to
construction-in-progress at the end of each term. As for the project-in-progress that has been stopped for a
long time and can not be continued restarting in the future 3 years, and there is no a certain value whatever in
economic benefits or technical performance, or there is obvious evidence that may show the
construction-in-progress impairment occurred, the impairment provision is based on the difference that thee
recoverable amount less than book value. Once impairment loss of construction-in-progress is confirmed, it21
can not be reversed.
Valuation of Intangible Assets and Amortization Method
Valuation of intangible assets
—Cost of purchased intangible assets is accounted on the basis of actual expenditure of such assets when
reaching its expected usage.
—Expenditure in internal research and development phase. It would be valued into the current gains and
losses when it occurs. As for the expenditure that may meet the conditions of capitalization, it shall be
considered to be intangible asset cost.
—Intangible assets invested by investors. It would be valued under relevant provisions in the contract, but
except those that are unfair.
—Intangible assets accepted from debtor's non-cash assets or that replacement of receivable claims shall be
valued in accordance with the fair value.
—Intangible assets in non-monetary transaction shall be valued in accordance with its fair value and its
related tax costs.
Amortization of intangible assets: As for intangible assets that have the limited life-span, straight-line
amortization within its life-span is adopted. As for intangible assets that are impossible to be estimated for
their future economic interests to the Company, it is considered to be intangible assets that have
unpredictable life-span, upon which amortization is not carried out. As for the intangible assets, land use,
the life-span is 50 years for average amortization.
Impairment Provisions for intangible assets: It is required to conduct a comprehensive check to such
intangible assets at the end of term. For the intangible assets that have already been replaced by new
technology and its ability to create benefits for the Company suffered a great impact, or a significant
decline of market price and impossible to be covered within its remained life-span, or the duration is out of
protection by law, yet a certain utility value remained, or there is obvious evidence that may show the
construction-in-progress impairment occurred, the impairment provision is based on the difference that thee
recoverable amount less than book value. Once impairment loss of construction-in-progress is confirmed, it
can not be reversed.
Accounting Methods on Long-term Deferred Expenses
Long-term deferred expenses refers to expenses paid but attributable to the current and subsequent
accounting periods shall be accounted for as deferred charges or deferred expenses more than 1 year.
Long-term deferred expense shall be recorded into book in the light of the actual expenditure, and amortized
averagely in the light of straight-line method within benefit period. As for the long-term prepaid item that
can not benefit future accounting, transfer all their remained value to the current gains and losses.
Capitalized Accounting Method on Borrowing
Capitalized the borrowing that meet the following conditions ： Expenditure to acquire (including
expenditure for the acquisition or construction or production line with the conditions of the capital assets to
pay cash, or transfer of non-cash assets to bring in the form of interest-bearing debt expenditures) that has
occurred; borrowing costs has occurred; and for assets intended use or sale of the state may be necessary
for the acquisition or construction or production activities have already begun.
Capitalized amount of borrowing interest: For purchase or construction of the production line with the
conditions of capital assets and borrow specialized loan borrowers or occupier of the general interest in the22
borrower, in the purchase or construction of the production line with the conditions of capital assets can be
used or can be scheduled Before the state sales, according to the following methods of determining the
amount of capital: the capitalization of interest on the amount of the borrower: purchase or construction of
the production line with the conditions of capital assets and borrow specialized loan borrowers or occupier
of the general interest in the borrower, in the acquisition or construction or production comply with the
conditions of the capital assets can be used or can be scheduled for sale before the state, according to the
following methods of determining the amount of capital:
— Or borrowing that is for acquisition or construction of the production line with the conditions of capital
assets and borrow specialized lending, specialized lending to the current actual interest costs, net borrowing
will be used has yet to deposit funds in bank interest income or the temporary investment income defined as
the amount of capital should be the cost - or for the acquisition or construction of the production line with
the conditions of capital assets and borrow specialized lending, specialized lending to the current actual
interest costs, less will be the borrower of funds not yet spent Interest income deposited in the bank or
temporary investments of the amount of investment income should be defined as the cost of capital.
—Or for the acquisition or construction of the production line with the conditions of capital assets and
occupy the general borrowing, the Company According to the cumulative capital expenditure over specific
borrowing part of the capital expenditure multiplied by the weighted average number of borrowers
generally occupied by the capitalization rate to calculate the borrower determine general should be the
capital of the amount of interest. Capitalization rate borrowers under the general calculation of the weighted
average interest rate determined.
Suspension of capitalization: In the event the capital assets acquired or constructed in the course of
production is interrupted for over a continue three months, it is required to suspend capitalization of
borrowing such borrowing. And during the interruption the borrowing is recognized as costs, reckoned in
the current gains and losses till restarting of production. If the interruption is for purchased or produced in
line with the conditions of the capital assets or sale of state can be the necessary procedures, or
capitalization of borrowing costs, it is required to keep capitalization process of such borrowing.
Employee Emolument
Employee Emolument include various forms of compensation, salaries, bonuses, allowances, subsidies and
trade unions benefit costs, employee benefits , medical insurance for employees, aged insurance,
unemployment insurance, work-related injury insurance, maternity insurance, and other social insurance
and housing accumulation fund, etc., in the accounting period. In the labor contract expires before the
lifting of the trade unions and labor relations, or to encourage the workers to accept cuts to voluntary
compensation recommendation (to dissolve labor relations plan or proposed cuts to be implemented, and
the enterprises can not unilaterally withdraw), the companies confirmed The resulting projected liabilities,
included in expense in the current period.
Revenue Recognition Principle
Company has products, commodities, the main ownership of the risks and rewards transfer to the buyer, the
Company no longer the products, commodities, the right to continue to manage the implementation and
practical control of the related revenue has been received or receivable has been made effective
documentation, and with sales of the product, commodity-related costs can be measured reliably,
recognized the achievement of sales revenue.
Work completion percentage is adopted for income by providing labor services in the following conditions:
If the income amount can be reckoned clearly； if transaction related economic interests can be flown in; If23
transaction completion in progress can be determined reliably. In the event that costs in transaction process
or in the future can be measured reliably；and if results of transactions of labor service providing can no be
measured reliably and labor costs occurred can be compensated, revenue is recognized according to labor
costs already occurred. If labor cost occurred can not be fully compensated, the amount recognized for
labor cost is base on the amount that can be recognized. In the event that no labor cost can be compensated
fully, no revenue is recognized.
Revenue gained by providing others company's assets may be recognized if it meets the conditions as
follows: income related to transaction can be flown into the Company; the amount of revenue can be
measured reliably. As for the revenue gained by providing company’s assets shall be reckoned under
relevant provisions in contract.
Government subsidy
No government subsidy may be recognized unless the following conditions are met simultaneously as
follows: ① The enterprise can meet the conditions for the government subsidies; and ② The enterprise
can obtain the government subsidies.
If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivable
amount. If a government subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair
value cannot be obtained in a reliable way, it shall be measured at its nominal amount
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed
within the useful lives of the relevant assets, and included in the current profits and losses. But the
government subsidies measured at their nominal amounts shall be directly included in the current profits
and losses. The government subsidies pertinent to incomes shall be treated respectively in accordance with
the circumstances as follows: Those subsidies used for compensating the related future expenses or losses
of the enterprise shall be recognized as deferred income and shall included in the current profits and losses
during the period when the relevant expenses are recognized; or Those subsidies used for compensating the
related expenses or losses incurred to the enterprise shall be directly included in the current profits and
losses.
Accounting Methods on Income Tax
Balance sheet debt accounting is adopted for income tax. On the date that the balance sheet is made, the
Company recognizes, according to results of deductible temporary differences and income tax rate, deferred
income tax assets and corresponding deferred income tax income, and deferred income tax liabilities and its
corresponding deferred income tax expense.
Profit Distribution Method
Under the corporate by-law, corporate profits distribution shall be carried out in order as follows:
—Make up losses in the previous year;
—Extracting 10 percent statutory provident funds and the extraction can not be continued no longer when
accumulated amount reaches 50% registered capital;
—Extraction of optional accumulation fund can be carried out as of being approved by General Assembly;
—The remained profit can be distributed as of being approved by General Assembly;
Preparation Method for Consolidated Financial Statements
The Company takes all subsidiaries and branches into the consolidated range. The consolidated financial
statements include the financial statements of parent company and individual financial statements of each24
subsidiary and other relevant information. Any investment and internal exchange among parent company
and its subsidiaries, affiliates, shall be consolidated one by one, after all internal transaction are neutralized.
In the event accounting policies adopted in the subsidiaries are different from the parent companies, merging
shall be carried out under the accounting policies of the parent company after adjustment which shall under
the standard of the parent company.
V. Ma jor Taxe s
VAT
VAT of ales is 17% total sales income, according to the reference input tax deduction to allow deductions for
the payment of the difference between the company export approval of the taxation departments since
January 1, 2002 under the policy of tax exemption, crediting and return.
Business Income Tax
The Company was identified as a high-tech enterprise in December 2008, and obtained the “Certificate of
High-tech Enterprise” with serial number GR200844000085 after approval by Department of Science and
Technology of Guangdong Province, Department of Finance of Guangdong Province, Guangdong Provincial
Bureau of State Taxatio and Guangdong Provincial Bureau of Local Taxationon on 16 Dec. 2008. In
accordance with relevant provisions in Income Tax Law of the People's Republic of China and the
Administration Measures for Identification of High-tech Enterprises promulgated in 2007, the Company
enjoys a 15-percent rate for corporate income tax within three years since 1 Jan. 2008.
The subsidiaries of the Company, including Foshan Taimei Times Lighting Co., Ltd., Foshan Chansheng
Electronic Ballast Co., Ltd. and Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., are all
productive foreign funded enterprises, so that the said three companies enjoy a preferential CIT policy of
“Two plus three” (Exemption of enterprise income tax for the first two years of making profit, and 50% tax
reduction for following three years). Of which, year 2007 is the first profit-making year that Foshan Taimei
Times Lighting Co., Ltd. enjoys the said preferential policy of “Two plus three”, therefore, it should be
allowed a 50 percent reduction in 2009. Foshan Chansheng Electronic Ballast Co., Ltd. enjoyed the said
preferential policy of “Two plus three” since 2004, thus it should be levied at an income tax rate of 25% in
2009. As at 31 Dec. 2007, Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd. failed to enjoy the
said preferential CIT policy, in the light of relevant provisions of the Notice concerning Carrying out the
Transitional Preferential Policies on Corporate Income Tax (GF [2007] No. 39 document), it started to enjoy
the said preferential policy of “Two plus three” from 2008, therefore, the said company should be exempted
from the enterprise income tax in 2009.25
VI . Subs idi a r i e s cont rol l ed by the Company
General information of the shareholding subsidiaries
Name of invested
company
Date of
foundation
Registration
place
Registered
capital
(RMB’0000)
Amount
invested by
the
Company
(RMB’0000)
Equity
owned
Legal
representative
Main business
Consolidated
statement
Foshan Chanchang
Lighting
Components Co.,
Ltd.
1989 Foshan USD180 USD72 40% Zhong Xincai
Manufacturing bromine
tungsten-arc lamps, special lighting
source products and ancillary
devices
Yes
Foshan Chansheng
Electronic Ballast
Co., Ltd.
2003 Foshan RMB100 RMB75 75% Zhong Xincai
Manufacturing electronic ballasts,
electronic transformers, electronic
triggers.
Yes
Foshan Modern
Lighting Co., Ltd.
2004 Foshan RMB500 RMB450 90% Ou Muben
Research, development,
production and sales of lighting
appliances and household
appliances and accessories and
other lighting products
Yes
Foshan Chanchang
Electric Appliance
(Gaoming) Co., Ltd. 2005 Foshan RMB6000 RMB4200 70% Zhong Xincai
Production and operation of lamps,
electric light source products and
accessories, installation and
related engineering consulting
business.
Yes
Foshan Taimei
Times Lighting Co.,
Ltd. 2005 Foshan RMB50 RMB35 70% Ou Muben
Research, development,
production, sales of lighting,
household appliances and
accessories and other lighting
products.
Yes
Foshan Gaoming
Fuwan Landscape
Resort Co., Ltd. 2006 Foshan RMB480 RMB480 100% Zhong Xincai
In-progress of founding (tourist
industry, catering service, sauna,
foot-bathing, games, retail of
beverages, sports on the water,
chess)
Yes
Prosperity (Nanjing)
Lighting
Components Co.,
Ltd. 2002 Nanjing RMB4168.32 RMB7200 100% Zhuang Jianyi
Production of energy-saving
photoelectric source products,
lamps and lanterns, light source
equipments, illumination
engineering; technological
development of energy-saving and
production of relevant components;
sales of self-production products
Yes
Soshan Lighting
Co., Lt.d
2009 Foshan RMB500 RMB 300 60% Zhong Xincai Yes26
—Foshan Chanchang Lighting Components Co., Ltd. was founded in 1989, and the company holds 40% of
its shares. Under relevant provisions in the agreement between the company and Foshan Chanchang, the
company owns the rights of essential holding. So it was taken into the consolidated financial statements. In
accordance with the resolutions of board of directors of Foshan Chanchang, the company shall take charge
of its management and the benefits gained this year shall be distributed on the basis of ratio of contributions.
Owing to expiration of the term of the joint venture ended 30 Nov. 2008, the Board of this company decided
to terminate its operation. Relevant liquidation matters are in progress.
— Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd. Is a Sino-foreign joint ventures invested by
the company and Prosperity Lamps and Components Co., Ltd, approved by Foreign Trade and Economic
Cooperation Bureau of Gaoming District, Foshan (No. 79-2005) on August 23, 2005? And the company
holds 70% shares and it has been taken to be consolidated financial statements since its founding. The
company started running business since 2006.
—Foshan Taimei Times Lamps and Lanterns Co., Ltd. (the former name of FSL Times Lamps and Lanterns
Co., Ltd.) is a company invested by our company and Rebecca North American Investment Inc, a
Sino-foreign joint ventures, approved by Foreign Trade and Economic Cooperation Bureau of Gaoming
District, Foshan (No. 97-2005) on December 5, 2005, obtained its business license. And the company holds
70% shares and it has been taken to be consolidated financial statements since its founding. The company
put into production since 2006.
—Foshan Gaoming Fuwan Landscape Resort Co., Ltd. was invested by the company and it was founded on
November 23, 2006, obtaining its business license, And the company holds 70% shares and it has been taken
to be consolidated financial statements since its founding. The company started running business since
December 20, 2006.
—Prosperity Lighting Components Co., Ltd., in accordance with the Equity Transfer Agreement signed with
the Company on 27 Aug. 2008, transferred its 100% equity of Prosperity (Nanjing) Lighting Components
Co., Ltd. to the Company. Therefore, Prosperity Nanjing became the wholly-owned subsidiary of the
Company. The said company was included in the consolidated scope of the Company’s financial statement
since 1 Jan. 2009.
—Foshan Lighing Co., Ltd. was incorporated by the Company togeth Electric Appliance h Foshan Hao Zhi
Yuan Trading Co., Ltd., Shanghai Liangqi Electric Appliance Co., Ltd., Changzhou Sanfeng Electrical &
Lighting Co., Ltd., Henan Xingchen Electrical & Lighting Co., Ltd., Foshan Hongbang Electrical & Lighting
Co., Ltd. and Hebei Jinfen Trading Co., Ltd., and get the business license on 27 Mar. 2009, whose 60%
equities is held by the Company. Therefore, the said company was included in the consolidated scope of the
Company’s financial statement from the date this company t is established.27
— Minority interests and profits and losses of minority shareholders of controlling subsidiaries
The first half year of 2009 The first half year of 2008
Name of companies
Minority
interests
Profits and
losses of
minority
shareholders
Minority
interests
Profits and losses
of minority
shareholders
Foshan Chanchang Lighting Components
Co., Ltd. 15,976,161.95 5,168,126.44 9,517,197.11 -123,150.71
Foshan Chansheng Electronic Ballast Co.,
Ltd. 1,397,984.33 120,261.06 1,762,486.14 527,703.36
Foshan Modern Lighting Co., Ltd. 635,961.38 -12,924.27 602,022.61 -20,826.37
Foshan Chanchang Electric Appliance
( Gaoming) Co., Ltd. 20,536,308.10 3,152,623.18 18,199,461.94 272,123.59
Foshan Taimei Times Lighting Co., Ltd. 1,173,262.04 316,514.29 2,468,517.03 682,756.08
Foshan Lighting Co., Ltd. 2,340,302.97 340,302.97
Total 42,059,980.77 9,084,903.67 32,549,684.83 1,338,605.95
VI I . Not e s to Ma in I t ems of Consol ida t ed Financ i a l St a t ement s
1. Monetary Funds
Closing amount Opening amount
Item Original
currency
amount
Exchange
rate
Converted into
RMB
Original
currency
amount
Exchange
rate
Converted into
RMB
Cash 4,290.51 49,105.08
Bank
deposits
—RMB
Account
920,237,906.67 860,207,563.79
—Dollar
Account
USD870011.38 6.8319
5,943,830.75 HKD90.28 0.8819 68.30
—Euro
Account EUR18665.48 9.6408
179,950.16 USD344,002.73 6.8591 50,431,706.69
Other
currency
funds EUR763,096.60 10.8302 180,291.42
Total 926,365,978.09 17,000,000.00
—All bank deposits are in the name of the company or the subsidiaries which are within the scope of
consolidated financial statements.28
2. Notes Receivable
Items Closing amount Opening amount
Bank acceptance bill 37,818,320.07 38,410,882.00
Trade acceptance draft
Total 37,818,320.07 38,410,882.00
— Up till 30 June 2009, there are no trade acceptance draft receivable, undue bills discounted.
— There is no payment of a shareholder who holds over 5% (including 5%) of the company shares in
closing balance of notes receivable.
3. Accounts Receivable
Closing amount Opening amount
Items Aging
Amount
Proportion
(%)
Provision for
bad debts
Proportion
of
withdrawal
Amount
Proportion
(%)
Provision for
bad debts
Proportion
of
withdrawal
Accounts
receivable
with
significant
single
amounts
Within
1 year
45,866,250.98
17.07%
2,751,975.06 6% 66,455,617.69 28.47%
3,987,337.06 6%
Accounts
receivable
with
insignificant
single
amounts but
with
significant
credit risk
Over
3
years
Within
1 year
218,651,893.69
81.37%
13,119,113.62
6%
159,367,996.09 68.27%
9,703,244.21
6%
1-2
years
1,097,368.11
0.41%
65,842.09
6%
4,589,949.57 1.97%
60,749.51
6%
2-3
years
1,027,628.40
0.38%
61,657.70
6%
920,465.14 0.39%
55,227.91
6%
Other
insignificant
Over
3
years
2,076,032.21
0.77%
124,561.93 6% 435,237.00 0.13%
26,114.22
6%
Total
268,719,173.39
100.00%
16,123,150.40 233,433,521.05 100.00%
15,496,928.47
— The total amount of arrearages of the first five units in the closing balance of receivables is RMB
45,866,250.98Yuan, accounting for 17.07 of the accounts receivable balance.29
— See Note 9 for dues from shareholders holding more than 5% (including 5%) of the company’s stock in
the closing balance of accounts receivable.
4. Prepayment
Closing amount Opening amount
Aging
Amount
Proportion
（%）
Amount
Proportion
（%）
Within 1 year 22,387,659.70
57.52%
49,019,883.85
99.00%
1-2 years 16,200,273.80
41.62%
494,030.00
1.00%
2-3 years 332,482.96
0.85%
Over 3 years
Total 38,920,416.46
100.00%
49,513,913.85
100.00%
—The closing balance of prepayment has decreased by RMB 10,593,497.39 Yuan than the opening balance,
a decrease of 21.39%.
—There is no prepayment to shareholders holding more than 5% (including 5%) of the company’s stock in
the closing balance of prepayments.
5. Other Receivables
Closing amount Opening amount
Items Aging
Amount
Proportion
(%)
Provision
for bad
debts
Proportion
of
withdrawal
Amount
Proportion
(%)
Provision
for bad
debts
Proportion
of
withdrawal
Within
1 year
21,836,559.64 36.38% 1,310,193.58 6% 7,690,602.46 16.15% 461,436.15 6%
Accounts
receivable
with
significant
single
amounts
1-2
years
36,500,000.00 76.66% 2,190,000.00 6%
2-3
years
36,500,000.00 60.82% 2,190,000.00 6%
Accounts
receivable
with
insignificant
single
amounts but
with
significant
credit risk
Within
1 year
106552.5 0.22% 106,552.50 100%
Within
1 year
1,020,289.62 1.70% 61,217.38 6% 2,377,127.27 2.06% 55,451.07 6%
Other
insignificant
1-2
660,187.40 1.10% 39,611.24 1,586,453.80 3.33% 94,863.22 6%30
years
2-3
years
6% 253,550.67 0.54% 15,213.04 6%
Over
3
years
6% 494,718.00 1.04% 29,683.08 6%
Total 60,017,036.66 100.00% 3,601,022.20 49,009,004.70 2,953,199.06
—The total amount of arrearages of the first five units in the closing balance of other receivables is RMB
58,336,559.64 Yuan, accounting for 97.20 of the other accounts receivable balance.
— There is no due from shareholders holding more than 5% (including 5%) of the company’s stock in the
closing balance of other receivables.
6. Inventory
Closing amount Opening amount
Items
Amount Provision for falling price Amount Provision for falling price
Raw material
55,519,795.24 65,063,701.07
Good in process
13,451,378.24 7,213,267.32
Consigned materials for
processing
0.00
Finished goods
122,542,348.17 165,352.58 125,754,902.45 165,352.58
Self-manufactured
semi-finished products
67,005,066.85 91,404,649.94
Low value consumables
457,796.27 217,394.00
Total 258,976,384.77 165,352.58 289,653,914.78 165,352.58
7. Long-term Investment
Opening amount Closing amount
Items
Amount
Provision for
impairment
Increase for the
current period
Decrease for the
current period Amount
Provision for
impairment
Stock investment 11,850,000.00 5,850,000.00 11,850,000.00 5,850,000.00
Other long-term
investment
183,233,201.04 3,298,904.81
183,233,201.04 3,298,904.81
Total 195,083,201.04 9,148,904.81 195,083,201.04 9,148,904.81
Details of various types of long-term investment are as follows:31
— Stock investment
Investees
Nature of
stocks
Number of
shares
Proportion in
the investee’s
registered
capital
Investment
amount
Market price at the
period-end
Provision for
impairment
Shenzhen
Zhonghao
(Group) Co., Ltd.
Corporate
shares
650,000 Below 5% 5,850,000.00 - 5,850,000.00
Chengdu Hongbo
Industrial Co.,
Ltd.
Corporate
shares
5,000,000 6.94% 6,000,000.00 - -
Total 11,850,000.00 - 5,850,000.00
— Shenzhen Zhonghao (Group) Co., Ltd is insolvent, so the total depreciation reserve is withdrawn from
this investment.
— Other equity investment
Investees
Term of
investment
Opening
amount
Proportion
in the
investee’s
registered
capital
Increase/decrease
for the current
period
Closing
amount
Provision for
impairment
Guangdong Development
Bank Foshan Branch 500,000.00 Below 5% 500,000.00 -
Foshan Fochen Road
Development Company
Limited
13,175,627.38 7.66% 13,175,627.38 -
China Everbright Bank 30,828,816.00 0.29% 30,828,816.00 -
Guangzhou Zhujiang Asset
Management Company
Limited
10,000,000.00 15.38% 10,000,000.00 3,298,904.81
Shenzhen Liangke Venture
Capital Company Limited 50 years 13,718,882.66 18.50% 13,718,882.66 -
Xiamen Commercial Bank 115,009,875.00 9.99% 115,009,875.00 -
Total 183,233,201.04 183,233,201.04 3,298,904.81
— A heavy losses incurred by Guangzhou Zhujiang Asset Management Company Limited in 2008 , the
provision for impairment of long-term equity investment amounting to RMB 3,298,904.81 has been
withdrawn by the Company in 2008 in the light of the difference that recoverable amount is lower than
carrying value of long-term investment.32
8. Fixed Assets and Accumulated Depreciation
Items Opening amount
Increase in the
current period
Decrease in the
current period
Closing amount
Original value of
fixed assets
Housing and
building 511,842,013.23 15,186,599.82 12,457,658.01 514,570,955.04
Machinery
equipments 1,023,995,053.43 18,369,694.12 6,599,723.71 1,035,765,023.84
Transportation
equipments 13,918,352.93 146,337.61 97,300.00 13,967,390.54
Other equipment 16,328,582.03 9,567,446.21 189,850.00 25,706,178.24
Total 1,566,084,001.62 43,270,077.76 19,344,531.72 1,590,009,547.66
Accumulated
depreciation:
Housing and
building 206,097,646.01 13,741,108.61 731,340.14 219,107,414.48
Machinery
equipments 600,133,868.37 47,847,390.43 3,296,095.55 644,685,163.25
Transportation
equipments 9,302,300.29 508,859.86 12,397.60 9,798,762.55
Other equipment 9,352,737.01 1,204,945.19 183,125.27 10,374,556.93
Total 824,886,551.68 63,302,304.09 4,222,958.56 883,965,897.21
Net value 741,197,449.94 706,043,650.45
— Increase of fixed assets is mainly due to transfer-in from construction in process after completion of
installation and testing of such equipment as T8, Metal halogen lamp, high -tension line in Power Supply
Room 2# in the Industrial Park.
—Provision for impairment of fixed assets are as follows:
Items Opening amount
Increase in the
current period
Decrease in the
current period
Closing amount
Machinery equipments 2,043,648.78 - - 2,043,648.78
— The provision for impairment of fixed assets on machinery equipments, which such equipments fail to
meet demands of production processes and may result in losses, was withdrawn by the Company.33
9. Construction in Process
Name of projects Opening amount
Increase in the
current period
Amount
transferred into
fixed assets
Other
decrease Cclosing amount
Capital
source
Project
schedule
Fuwan Lighting Industrial Park
27,420,962.77
- -
27,420,962.77
Self-owned
fund
T8 production line
20,158,700.40
8,880,880.82
8,629,724.54
20,409,856.68
Self-owned
fund
80%
T5 fluorescent light production line
16,035,260.76
-256,812.01
222,636.83
15,555,811.92
Self-owned
fund
44%
Staff dormitory and power project of the
Fuwan Industrial Park
13,848,749.44
447,800.30
-
14,296,549.74
Self-owned
fund
SAP system
5,584,956.00
3,351,883.88
8,936,839.88
-
Self-owned
fund
Completion
Hard glass furnace
4,954,929.95
3,014,519.72
-
7,969,449.67
Self-owned
fund
98%
Workshop (II) of energy-saving lamps in
Fuwan Industrial Park
4,296,000.00
2,883,452.99
-
7,179,452.99
Self-owned
fund
56%
Flue gas scrubber of glass furnace and
desulphurization system of Gaoming
4,219,057.22
- -
4,219,057.22
Self-owned
fund
85%
Flue gas scrubber of tank furnace and
desulphurization system for Quadrant 3
4,215,271.12
612,336.05
-
4,827,607.17
Self-owned
fund
90%
Fugang Restaurant and its supporting facilities
3,446,647.30
1,506,871.50
624,004.72
4,329,514.08
Self-owned
fund
8# Furnace in Fuwan Industrial Park
1,686,266.67
- -
1,686,266.67
Self-owned
fund
98%
Overhaul of 6# glass furnace for Quadrant 3 - - Self-owned 67%34
3,218,669.27 3,218,669.27 fund
high -tension line in Power Supply Room 2# in
Fuwan Industrial Park and distribution
equipment
-
2,030,000.00
2,030,000.00
- Self-owned
fund
Completion
T8 3rd workshop in the Fuwan Industrial Park
7,168,584.00
281,603.35
7,450,187.35
Self-owned
fund
Other
13,773,148.78
33,643,143.78
6,357,066.51
89,381.20
40,969,844.85
Self-owned
fund
Total
126,808,534.41
59,614,349.65
26,800,272.48
89,381.20
159,533,230.38
—None of the items of projects under construction has any interest to be capitalized and exchange gain or loss.
—As at 30 Jun. 2009, the Company has no project under construction that needs to be withdrawn provision for impairment.
10. Intangible Assets
Types Original amount
Opening amount Increase in the
current period
Transfer out
in the current
period
Amortization in
the current period Closing amount
Term left for
amortization
Acquisition
mode
Land use right
214,654,209.88 191,397,059.58
1,801,658.22
189,595,401.36 214,654,209.88
Assignment
and purchase
Patent right
200,000.00 103,333.14
7,200,000.00 -
510,000.02 6,793,333.12 200,000.00
Input by
investors and
purchase
Total 214,854,209.88 191,500,392.72
2,311,658.24 196,388,734.48 214,854,209.88
—Increase of patent right is due to that Trademark QL of Foshan Chanchang Lighting Components Co., Ltd. was purchased by the Company in
the reporting period.
—As at 30 Jun. 2009, the Company never had the need to withdraw provision for impairment of intangible assets.35
11. Long-term Deferred Expenses
Types Original amount Opening amount
Increase in
the current
period
Amortization
in the current
period
Closing
amount
Term left for
amortization
Rent
4,167,435.60
169,127.42
92,232.00
76,895.42
1 years
Other
169,704.20
68,939.98
24,979.88
93,919.86
2 years
Total
4,337,139.80
238,067.40 170,815.28
12. Deferred Income Tax Assets and Deferred Income Tax Liabilities
Items Closing amount Opening amount
Deferred income tax assets 16,889,762.29 17,359,253.59
Deferred income tax liabilities 16,889,762.29 17,359,253.59
— The Company calculates deferred income tax assets and deferred income tax liabilities according to regulations
of the Accounting Standards for Enterprises-Income Tax and based on temporary differences.
13. Accounts Payable
—The closing balance of accounts payable is RMB 181,345,007.39 Yuan. The amount of items with an age of
more than 3 threes is RMB 2,257,217.42 Yuan.
—See Note IX for details of amount due from shareholders who hold 5% or more of the voting rights of the
Company in the closing balance of accounts payable.
14. Account collected in advance
— The closing balance of account collected in advance is RMB 10,674,616.56 , a decrease of RMB 5,391,172.46
over the period-begin, down by 34%.
—No amount due from shareholders who hold 5% or more of the voting rights of the Company is included in the
balance of account collected in advance.
15. Employee Compensation Payable
Items
Opening
amount
Increase in the
current period
Payment in the
current period Closing amount
Salary, bonus and allowance
554,998.34
86,935,542.43
87,396,832.70
93,708.07
Welfare expense
446,122.48
446,122.48
-
Equity incentive fund
36,685,877.53
36,685,877.53
Labor-union expenditure
-
Social insurance charges
396,262.43
3,821,801.84
3,917,934.27
300,130.00
Total
37,637,138.30
91,203,466.75
91,760,889.45
37,079,715.60
— The Company has no default on emoluments payable to staff.36
16. Taxes Payable
Type of taxation Closing amount Opening amount
Corporate income tax 5,516,174.39 -2,903,369.60
VAT 69,793.94 -10,251,310.16
Other 11,155,659.11 2,526,045.73
Total 16,741,627.44 -10,628,634.03
17. Other Payables
—The closing balance of other payables is RMB Yuan. The amount of items with an age of more than 3 threes
is RMB Yuan, which caused by the deposit paid by agents.
— The closing balance of other payables is RMB than the opening balance, a drop of RMB over the
period-begin, which was because the Company paid accounts that is due in the reporting period.
—See Note IX for details of amount due from shareholders who hold 5% or more of the voting rights of the
Company in the closing balance of other payables.
18. Share Capital
Prior to the change
Increase/decrease
for this time (+/-)
Subsequent to the
change
Type of share
Number of
share
Proportion
(%)
Additional
quantity from
capitalization of
public reserve
Number of
share
Number
of share
I. Shares subject to trading
moratorium
1. Shares held by foreign
legal person
94,154,061 13.47 37,661,624 131,815,685 13.47
2. Shares held by domestic
legal person
3,281,552 0.47 1,312,621 4,594,173 0.47
3. Shares held by domestic
natural person
7,524 0.001 3,009 10,533 0.001
A shares 1,172,917 4. Shares held by 0.17 469,167 1,642,084 0.17
senior
management
B shares
3,989,280 0.57 1,595,712 5,584,992 0.57
Total number of shares
subject to trading moratorium
102,605,334 14.68 41,042,133 143,647,467 14.68
II. Shares not subject to
trading moratorium
1. RMB common shares 439,483,050 62.88 175,793,220 615,276,270 62.88
2. Domestically listed foreign
shares
156,885,720 22.44 62,754,288 219,640,008 22.44
Total number of shares not
subject to trading moratorium
596,368,770 85.32 238,547,508 834,916,278 85.32
III. Total shares 698,974,104 100.00 279,589,641 978,563,745 100.0037
— As approved by the Annual Shareholders’ General Meeting 2008, the Company transferred capital reserve into
share capital at the rate of 4 for 10 based on the total share capital of 698,974,104 shares as at Dec. 31, 2008,
increasing by 279,589,641 shares, as a result, the total share capital is 978,563,745 shares.
19. Capital Reserve
Items Opening amount
Increase in
the current
period
Decrease in the
current period
closing amount
Share premium
859,157,193.53 279,589,641.00 579,567,552.53
Provision for equity investment 4,514.43 0.00 4,514.43
Change in fair value 0.00 0.00 0.00
Other 7,403,887.57 0.00 196.63 7,404,084.20
Total 866,565,595.53 0.00 279,589,837.63 586,976,151.16
— Decrease of share premium for the current period is caused by the conversion of RMB 279,589,641 Yuan of
capital reserves to share capital according to the resolutions of the Annual Shareholders’ General Meeting 2008.
20. Surplus Reserves
Items Opening amount
Increase in
the current
period
Decrease in
the current
period
Closing amount
Statutory surplus
reserves 371,440,759.66 371,440,759.66
Discretionary surplus
reserve 136,886,568.36 136,886,568.36
Total 508,327,328.02 508,327,328.02
21. Retained Profit
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Net profit 71,180,439.19 159,920,282.08
Plus: Retained profit as at 31 Dec. 2008 374,103,756.83 303,717,464.60
Less: Appropriation of statutory surplus reserves 0.00
Appropriation of discretionary surplus reserves 0.00
Cash dividends or profits payable 0.00
Retained profit 445,284,196.02 463,637,746.68
Of which: Cash dividends to be distributed 0.0038
22. Operating Income and Operating Cost
— Category of operating income and operating cost is listed as follows:
Jan.-Jun. 2009 Jan.-Jun. 2008
Items
Revenue Cost Revenue Cost
Main operation 738,679,727.79 557,423,427.88 802,127,297.64 641,666,615.99
Other 1,133,311.31 1,075,172.44 11,718,781.96 5,195,817.64
Total 739,813,039.10 558,498,600.32 813,846,079.60 646,862,433.63
— The total amount of sales revenue from the first five customers of the Company is RMB 79,397,256.70 Yuan in
the current period, accounting for 10.73%% of the total sales revenue of the company.
— Breakdown of the revenue of the main operation is as follows:
Segment items Jan.-Jun. 2009 Jan.-Jun. 2008
Domestic sales 517,371,935.32
506,180,442.93
Export sales 213,186,871.30
295,946,854.71
Total 730,558,806.62
802,127,297.64
—Breakdown of the revenue from hotels is as follows:
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Revenues from hotels 8,120,921.17
7,655,174.69
23. Taxes and Associate Charges
Items Jan.-Jun. 2009 Jan.-Jun. 2008
City maintenance and
construction tax 3,367,512.30 3,868,498.79
Educational surtax 1,458,302.09 1,660,795.14
Business tax 430,534.39 499,340.47
Other 8,025.55 0.00
Total 5,264,374.33 6,028,634.40
24. Administrative expenses
The current administrative expense has increased by RMB 8,112,935.96 Yuan than that of last year, up by 21.45
%, which was mainly due to increase of labor cost and office overhead along with expansion of business scale.
25. Sales expenses
The current sales expense has increased by RMB 10,706,398.83 Yuan over the same period of last year, up by
38.76 %, which was caused by increase of transport expenses and advertising and publicity costs in order to
ensure sales.39
26. Financial expense
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Interest expense 0.00
0.00
Less: Interest revenue 6,189,956.77
5,825,991.74
Exchange loss 3,244,483.50
3,023,471.78
Less: Exchange gain 0.00
Other 1,072,992.60
1,382,384.67
Total -1,872,480.67
-1,420,135.29
The current financial expense has decreased by RMB 452,345.38 Yuan than that of last year, a drop of 31.85 %,
which was mainly due to increase of bank interest income in the reporting period.
27. Assets Impairment Losses
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Loss on bad debts 1,274,045.07 7,587,598.30
Loss on falling price
of inventories
Loss on impairment of
investment
Loss on impairment of
fixed assets
Loss on impairment of
construction in
progress
Loss on impairment of
intangible assets
Other
Total 1,274,045.07 7,587,598.30
28. Investment Income
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Income from stock and fund investment 110,418,926.17
Income from bond investment
Profits distributed from affiliated or joint venture
corporations 1,420,800.00
Amortized investment cost of Foshan Fochen Highroad
Development Company Limited
Total 1,420,800.00 110,418,926.17
The current investment income has decreased by RMB 108,998,126.17 Yuan than that of last year, a drop of
98.71%, which was mainly because of no income from securities investment in the reporting period.40
29. Non-operating Income
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Governmental reward 330,000.00 1,895,412.00
Accounts payable that need
not be paid 0.00
Net income on disposal of
fixed assets 3,660,000.00 1,940,599.50
Other 7,719,839.09 61,428.56
Total 11,409,839.09 3,897,440.06
30. Non-operating expenses
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Loss on disposal of
fixed assets 4,066,273.96 1,041,799.73
Other 757,876.92 2,909.97
Total 4,824,150.88 1,044,709.70
31. Income Tax Expense
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Income tax payable for the
current period
19,697,957.01 49,433,202.39
Deferred income tax
expense
437,132.13 -8,068,106.79
Income tax expense for the
current period
20,135,089.14 41,365,095.60
32. Earnings per Share
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Basic earnings per share 0.07 0.16
Diluted earnings per share 0.07 0.16
—The above mentioned earnings per share are calculated according to the Rules for the Compilation of
Information Disclosures by the Companies That Offer Securities to the Public No.9-Computation and Disclosure
of Rate of Return on Common Stockholders’ Equity (revised in 2007). See note 14 for details of the computation
process.
33. Other Cash Received Relating to Operating Activities
Other cash received relating to operating activities is RMB 14,700,803.27 Yuan in the first half year of 2009,
main items are as follows:41
Items Amount
Interest revenue 11,771,768.29
Rent 438,598.11
34. Other Cash Paid Relating to Operating Activities
Other cash received relating to operating activities is RMB 19,686,975.53 Yuan in the first half year of 2009, main
items are as follows:
Items Amount
Transport charges 16,019,546.06
35. Other Cash Received Relating to Investing Activities
Other cash received relating to investing activities is RMB 10,000,000 Yuan in the first half year of 2009,
which are invested by the State in the Company’s energy-saving lamp workshop and supporting facilities of water
and power according to the relevant notice issued by National Development and Reform Commission.
36. Supplemental information of cash flow statement
Supplemental information Jan.-Jun. 2009 Jan.-Jun. 2008
1. Transferring net profit into cash flows of operating activities:
Net profit 80,265,342.87 161,258,888.03
Plus: Provision for assets impairment 1,274,045.07 7,587,598.30
Depreciation of fixed assets 62,055,384.65 70,293,223.15
Amortization of intangible assets 2,311,658.24 1,565,207.35
Amortization of long-term deferred expenses 92,232.00 102,232.02
Loss on disposal of fixed assets, intangible assets and other
long-term assets (income is listed as “-”)
-6,793,726.04 -898,799.77
Losses on change in fair value（income is listed as “-”） -
Financial expense（income is listed as “-”） 1,072,992.60 4,569,928.68
Investment losses（income is listed as “-”） -1,420,800.00 -110,418,926.17
Deferred tax – credit item（Less: debt item） -187,037.92 -21,346,752.64
Decrease of inventories (increase is listed as “-”) 30,677,530.01 -57,819,872.43
Decrease in operating receivables (increase is listed as “-”) -54,715,426.68 -159,396,126.14
Increase in operating payables (decrease is listed as “-”) 113,018,627.91 97,778,608.40
Other
Net cash flows arising from operating activities: 227,650,822.71 -6,724,791.22
2. Investing and financing activities that do not involving significant
cash receipts and payments
Conversion of debt into capital
Reclassify convertible bonds to be expired within one year as
current liabilities
Fixed assets financed by financing leases
3. Net increase in cash and cash equivalents:
Closing balance of cash 926,365,978.09 1,055,147,688.5142
Less: Opening balance of cash 927,868,735.28 1,098,078,385.11
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1,502,757.19 -42,930,696.60
VIII. Notes to the Financial Statement of Parent Company
1. Accounts Receivable
Closing amount Opening amount
Items Aging
Amount
Proportion
(%)
Provision
forbad debts
Withdrawal
proportion
Amount
Proportion
(%)
Provision
forbad debts
Withdrawal
proportion
Significant
single
amounts
Within
1 year
45,866,250.98
17.60%
2,751,975.06 6% 66,455,617.69 26.64%
3,987,337.06 6%
Insignificant
single
amounts but
with
significant
credit risk
Over 3
years
6% 1664255.56 0.67%
1664255.56 100%
Within
1 year
12,634,213.73
80.79%
12,634,213.73
6%
175,402,156.23 70.32%
9,310,062.84
6%
1-2
years
1,097,368.11
0.42%
65,842.09
6%
4,541,147.86 1.82%
69,821.41
6%
2-3
years
1,027,628.40
0.39%
61,657.70
6%
920,465.14 0.37%
55,227.91
6%
Other
insignificant
Over 3
years
2,076,032.21
0.80%
124,561.93 6% 435,237.00 0.17%
26,114.22
6%
Total
260,637,508.52
100.00%
15,638,250.51 249,418,879.48 100.00%
15,112,819.00
—The total amount of arrearages of the first five units in the closing balance of accounts receivable is RMB
45,866,250.98 Yuan, accounting for 17.60 of accounts receivable balance.
—See Note IX for details of amount due from shareholders who hold 5% or more of the voting rights of the
Company in the closing balance of accounts receivable.43
2. Other Receivables
Closing amount Opening amount
Items Aging
Amount
Proportion
(%)
Provision
forbad debts
Withdrawal
proportion
Amount
Proportion
(%)
Provision
forbad debts
Withdrawal
proportion
Within
1 year
25,887,993.87
31.35%
1,553,279.63 6% 8,746,914.18 15.38%
340,485.63
6%
Significant
single
amounts
1-2
years
36,500,000.00 64.17%
2,190,000.00
6%
2-3
years
36,500,000.00 44.20%
2,190,000.00
6% 10,655.50 0.19%
106,552.50
100%
Insignificant
single
amounts but
with
significant
credit risk
Within
1 year
Within
1 year
3,138,177.76
3.80%
188,290.67 6% 9,087,790.91 15.98%
169,873.24
6%
1-2
years
1,692,384.79 2.98%
91,485.48
6%
2-3
years
16,773,353.78
20.31%
1,006,401.23 6% 253,550.67 0.44%
15,213.04
6%
Other
insignificant
Over
3
years
275,212.77
0.33%
16,512.77 6% 494,718.00 0.86%
29,683.08
6%
Total
82,574,738.18 100.00%
4,954,484.29 56,786,014.05 100.00%
2,943,292.97
—The total amount of arrearages of the first five units in the closing balance of other receivables is RMB
62,387,993.87 Yuan, accounting for 75.55 of the other receivables balance.
—No amount due from shareholders who hold 5% or more of the voting rights of the Company is included in the
balance of other receivables.44
3. Long-term Equity Investment
Opening amount Closing amount
Items
Amount
Provision
for
impairment
Decrease in
the current
period
Increase in
the current
period
Amount
Provision
for
impairment
Stock
investment
11,850,000.00 5,850,000.00 11,850,000.00 5,850,000.00
Other equity
investment
310,963,590.88 3,298,904.81 3,000,000.00 313,963,590.88 3,298,904.81
Total 322,813,590.88 9,148,904.81 325,813,590.88 9,148,904.81
—Stock investment
Name of invested enterprise
Nature of
stocks
Number of
shares
Proportion in the
investee’s
registered capital
Investment
amount
Market price
as at 30 Jun.
2009.
Provision for
impairment
Shenzhen Zhonghao
(Group) Co., Ltd.
Corporate
shares 650,000 Below 5% 5,850,000.00 - 5,850,000.00
Chengdu Hongbo Industrial
Co.,Ltd.
Corporate
shares 5,000,000 6.94% 6,000,000.00 - -
Total 11,850,000.00 - 5,850,000.00
—Other equity investment
Name of invested
enterprise
Term of
investment
Opening amount
Proportion
in the
investee’s
registered
capital
Increase/decrease in
the current period
Closing amount
Provision for
impairment
Guangdong
Development
Bank Foshan
Branch
500,000.00
Below
5% - 500,000.00 -
Foshan Fochen
Highroad
Development
Company Limited
13,175,627.38 7.66% 13,175,627.38 -
China Everbright
Bank
30,828,816.00 0.29% 30,828,816.00 -
Xiamen
Commercial Bank
115,009,875.00 9.99% 115,009,875.00 -
Guangzhou
Zhujiang Asset
10,000,000.00 15.38% 10,000,000.00 3,298,904.8145
Management
Company Limited
Shenzhen
Liangke Venture
Capital Company
Limited
50 years
13,718,882.66 18.50% - 13,718,882.66 -
Foshan
Chanchang
Lighting
Components Co.,
Ltd.
3,330,389.84 40% - 3,330,389.84 -
Foshan
Chansheng
Electronic Ballast
Co., Ltd.
10 years
750,000.00 75% - 750,000.00 -
Foshan Modern
Lighting Co., Ltd.
4,500,000.00 90% - 4,500,000.00 -
Foshan
Chanchang
Electric
Appliance
(Gaoming) Co.,
Ltd.
42,000,000.00 70% - 42,000,000.00 -
Foshan Taimei
Times Lighting
Co., Ltd.
350,000.00 70% - 350,000.00 -
Foshan Gaoming
Fuwan Landscape
Resort Co., Ltd.
4,800,000.00 100% - 4,800,000.00 -
Prosperity
(Nanjing)
Lighting
Components Co.,
Ltd.
72,000,000.00 100% - 72,000,000.00 -
Foshan Lighting
Co., Ltd. - 60% 3,000,000.00 3,000,000.00 -
Total 310,963,590.88 3,000,000.00 313,963,590.88 3,298,904.8146
4. Investment Income
Items Jan.-Jun. 2009 Jan.-Jun. 2008
Income from stock Investment 110,418,926.17
Profits distributed from affiliated or joint venture
corporations 1,420,800.00
Amortized investment cost of Foshan Highroad
Development Company Limited
Total 1,420,800.00 110,418,926.17
The current investment income has decreased by RMB 108,998,126.17 Yuan than that of last year, a drop of
98.71 %, which was mainly because of no income from securities investment in the reporting period.
IX. Re l a t ed Pa r t i e s and Re l a t ed Pa r ty Tr ans a c t ions
Relationships between Related Parties
—related parties with controlling relationships with the Company
——Related parties with controlling relationships with the Company are as follows:
Name of enterprises Registration address Main business
Relationship
with the
Company
Organization
code
Legal
represent
ative
Foshan
Chanchang Lighting
Components Co.,
Ltd.
15 Fenjiang North
Road, Foshan
Manufacturing bromine tungsten-arc lamps,
special lighting source products and ancillary
devices, sales in home and export sales
Joint venture
corporation
under actual
control
61762135-X
Zhong
Xincai
Foshan Chansheng
Electronic Ballast
Co., Ltd.
15 Fenjiang North
Road, Foshan
Manufacturing electronic ballasts, electronic
transformers, electronic triggers.
Subsidiary 75207544-3
Zhong
Xincai
Foshan Modern
Lighting Co., Ltd.
15 Fenjiang North
Road, Foshan
Research, development, production and sales
of lighting appliances and household
appliances and accessories and other lighting
products
Subsidiary 76571028-2
Ou
Muben
Foshan Chanchang
Electric Appliance
(Gaoming) Co., Ltd.
Cangjiang
Industrial Park,
Gaoming District,
Foshan
Production and operation of lamps, electric
light source products and accessories,
installation and related engineering
consulting business.
Subsidiary 77920377-5
Zhong
Xincai
Foshan Taimei Times
Lamps and Lanterns
Co., Ltd.
Cangjiang
Industrial Park,
Gaoming District,
Foshan
Research, development, production, sales of
lighting, household appliances and
accessories and other lighting products.
Subsidiary 78203558-1
Ou
Muben
Foshan Gaoming
Fuwan Landscape
Resort Co., Ltd.
Side of the
Hengjiang Reservoir,
Hefu Road, Hecheng
In-progress of founding (tourist industry,
catering service, sauna, foot-bathing, games,
retail of beverages, sports on the water,
Subsidiary 79623406-3
Zhong
Xincai47
Street, Gaoming
District, Foshan City
chess)
Foshan Lighting Co.,
Ltd
Hefu Road East,
Cangjiang Industrial
Park, Gaoming District,
Foshan
Business scope: research, development and
production of electric light source products
and related accessories of electrical
engineering materials, metal materials and
non-metal materials. Sales of the above
products in domestic and foreign market, and
offer relevant technical service and
engineering project
Subsidiary 68638090-8
Zhong
Xincai
—Registered capital of related parties with controlling relationships with the Company and its change
Name of enterprises At the period-begin
Increase in this
period
Decrease in
this period
At the period-end
Foshan Chanchang Lighting Components
Co., Ltd.
USD1,800,000.00 - - USD1,800,000.00
Foshan Chansheng Electronic Ballast Co.,
Ltd.
RMB1,000,000.00 - - RMB1,000,000.00
Foshan Modern Lighting Co., Ltd. RMB 5,000,000.00 - - RMB 5,000,000.00
Foshan Chanchang Electric Appliance
(Gaoming) Co., Ltd.
RMB60,000,000.00 - - RMB60,000,000.00
Foshan Taimei Times Lamps and Lanterns
Co., Ltd.
RMB500,000.00 - - RMB500,000.00
Foshan Gaoming Fuwan Landscape Resort
Co., Ltd.
RMB4,800,000.00 - - RMB4,800,000.00
Foshan Lighting Co., Ltd RMB5,000,000 - RMB5,000,000
—Stock or equity held by related parties with controlling relationship the Company and its change
Name of enterprises At the period-begin
Propo
rtion
Increase in this
period
Decrease in
this period
At the period-end
Propo
rtion
Foshan Chanchang Lighting
Components Co., Ltd.
USD720,000.00 40% - - USD720,000.00 40%
Foshan Chansheng Electronic
Ballast Co., Ltd.
RMB750,000.00 75% - - RMB750,000.00 75%
Foshan Modern Lighting Co.,
Ltd.
RMB4,500,000.00 90% - - RMB4,500,000.00 90%
Foshan Chanchang Electric
Appliance (Gaoming) Co., Ltd.
RMB42,000,000.00 70% - - RMB42,000,000.00 70%
Foshan Taimei Times Lamps
and Lanterns Co., Ltd.
RMB350,000.00 70% - - RMB350,000.00 70%
Foshan Gaoming Fuwan
Landscape Resort Co., Ltd.
RMB4,800,000.00 100% - - RMB4,800,000.00 100%
Foshan Lighting Co., Ltd RMB3,000,000.00 - RMB3,000,000.00 60%48
—Related parties without controlling relationship with the Company
Name of related parties Relationship with the company
Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. Controlled by the Vice Chairman of the Board of the Company
Hangzhou Times Lighting and Electrical Co., Ltd. Controlled by the Vice Chairman of the Board of the Company
Prosperity Electrical (China) Co., Ltd. Controlled by the Vice Chairman of the Board of the Company
Prosperity Lamps Components Co., Ltd.
A shareholder holding over 50% equity of the Company, and
controlled by the Vice Chairman of the Board of the Company
Prosperity (Xinxiang) Electro-Optical Machinery Co., Ltd Controlled by the Vice Chairman of the Board of the Company
OSRAM (China) Lighting Co., Ltd. Controlled by the Vice Chairman of the Board of the Company
Related Transactions
—Purchase of raw materials
Amount in current period Amount in last period
Name of enterprises
Amount
Percentage
of the
purchase
for the
current
period
Amount
Percentage of
the purchase
for the current
period
Prosperity Lamps Components Co., Ltd. 5,217,031.92 1.26%
Prosperity Electrical (China) Co., Ltd. 4,991,750.37 1.83% 2,413,235.90 0.58%
OSRAM (China) Lighting Co., Ltd.
Prosperity (Xinxiang) Electro-Optical Machinery
Co., Ltd 147,000.00
0.05%
Prosperity (Foshan) Machinery Equipment Co., Ltd
Hangzhou Times Lighting and Electrical Co., Ltd. 208,501.02 0.08%
Total 5,347,251.39 1.96% 7,630,267.82 1.84%
— Sale of products
Amount in current period Amount in last period
Name of enterprises
Amount
Percentage of the sale
for the current period
Amount
Percentage of the
sale for the current
period
Prosperity Lamps Components Co., Ltd. 29,290,109.71 4.11% 36,049,711.34 4.49%
Prosperity (Hangzhou) Lighting and Electrical
Co., Ltd. 7,902,793.30 1.11% 7,165,372.44 0.89%
Hangzhou Times Lighting and Electrical Co.,
Ltd.
Prosperity Electrical (China) Co., Ltd. 900,788.18 0.13% 2,488,006.99 0.31%
Prosperity (Nanjing) Lighting Components
Co., Ltd.
OSRAM (China) Lighting Co., Ltd. 15,486,190.33 2.17% 29,027,447.92 3.62%
Total 53,579,881.52 7.52% 74,730,538.70 9.32%49
— Sale of Materials
Amount in current period Amount in last period
Name of enterprises
Amount
Percentage of the
sale for the current
period
Amount
Percentage of
the sale for the
current period
Prosperity (Hangzhou) Lighting and
Electrical Co., Ltd. 56,499.27 0.19% 240,099.16 0.03%
OSRAM (China) Lighting Co., Ltd. 3,557.58 0.01% 21,132.80 0.00%
Prosperity Lamps Components Co., Ltd. 545,769.36 1.85%
Total 605,826.21 2.05% 404,284.79 0.05%
—Purchase of fixed assets
Amount in current period Amount in last period
Name of enterprises
Amount
Proportion of purchase
of fixed assets for the
current period
Amount
Proportion of purchase
of fixed assets for the
current period
Prosperity (Xinxiang) Electro-Optical
Machinery Co., Ltd
5,278,914.00 16.70% 1,243,800.00 1.92%
Prosperity (Hangzhou) Lighting and
Electrical Co., Ltd.
Total 5,278,914.00 16.70% 1,243,800.00 1.92%
—Payment of sales commissions
The company signed the product sales commission agreement with Prosperity Lamps Components Co., Ltd. and
its supplementary agreement. According to the general practice of international market trade, the company pays
product sales commission to Prosperity Lamps Components Co., Ltd. according to a certain percentage (between
5% and 10%) of the actual amount of goods purchased from the company. Sales commissions are paid RMB
936,080.29 in the first half year of 2009.
—Balance of receivables and payables of related parties
Related parties Amount at the period-end Amount at the period-begin
Accounts receivable
Prosperity (Hangzhou) Lighting and
Electrical Co., Ltd.
5,397,457.62 4,607,179.14
Prosperity Electrical (China) Co., Ltd. 969,395.90 1,927,019.92
OSRAM (China) Lighting Co., Ltd. 3,373,936.59 4,055,123.41
Prosperity Lamps Components Co., Ltd. 13,192,534.65 7,603,340.59
Accounts payable
Prosperity Lamps Components Co., Ltd. 0.00 229,562.82
Prosperity Electrical (China) Co., Ltd. 0.00 119,656.00
Prepayments
Prosperity (Xinxiang) Electro-Optical
Machinery Co., Ltd.
6,176,095.57 173,900.5750
Other payables
Prosperity (Xinxiang) Electro-Optical
Machinery Co., Ltd.
0.00 5,000,000.00
Prosperity Lamps Components Co., Ltd. 0.00 12,174,789.08
XI. Contingent events
As at 30 Jun. 2009, the Company has no contingent events that need to be disclosed.
XII. Commitments
In accordance to the equipment purchase and construction contracts signed by the Company, the Company shall
pay RMB 3,841 Yuan for relevant items in 2009.
XIII. Events after Balance Sheet Date
The Company has no significant events after balance sheet date
XIV. Suppl ement a ry Informa t ion
1. Non-recurring gains and losses
The company collects and calculates non-recurring profit and loss items of the consolidated financial statement
according to relevant regulations of the Answers & Questions on Regulations on Information Disclosure by
Companies That Offer Securities to the Public of the China Securities Regulatory Commission No.1
–Non-recurring Profit and Loss (2008).
Items Amount
Annotation (if
applicable)
Gains and losses from disposal of non-current assets 6,175,726.04
Tax return and tax reduction that exceeded mandate of examination and approval or without
formal approval document
0.00
Government subsidies recorded into current gains and losses (excluding government
subsidies with close relationship with the Company’s business and rationed government
grants in line with the united standard and the state policy)
330,000.00
Capital occupied from non-financial enterprise recorded into current gains and losses 866,199.10
Gains and losses from combination costs and the fair value of the identifiable net assets when
the enterprise merged subsidiaries, affiliated companies and joint companies
1,420,800.00
Gains and losses from exchange of non-monetary assets 0.00
Gains and losses from entrusted investment or financing 0.00
Provisions for impairment of recorded assets due to the force majeure factor, such as natural
disaster
0.00
Gains and losses from debt restructuring 0.00
Expense of enterprise reorganization, expense of employee allocation and integration
expense, etc.
0.00
Gains and losses exceeding fair value due to trading price lost fair 0.00
Net current gains and losses of subsidiaries due to enterprise combination under the same
control form period-begin till combination date
0.00
Net gains and losses from contingencies irrespective of routine business 0.00
Gains and losses from changes in fair value due to transaction financial assets and liabilities,
and investment income from disposal of transaction financial assets, transaction financial
liabilities and financial assets available for sale, excluding valid hedging related to routine
0.0051
operation of the Company
Switching back impairment provision of accounts receivable with separate test on impairment 0.00
Gains and losses from external entrusted loan 0.00
Gains and losses from changes in fair value of investment property with subsequent
measurement after adoption of fair value model
0.00
Impact of one-off adjustment on current gains and losses according to requirements of laws,
statutes concerning tax and accounting
0.00
Income from trusteeship fees 0.00
Other non-operating income and expense except the aforesaid items 79,891.27
Other gains and losses accorded with definition of non-current gains and losses -5,158,859.85
Impact on minority interests 0.00
Impact on income tax -2,477,786.55
Total 1,235,970.01 -
2. Return on Equity and Earnings per Share of Consolidated Financial Statements
The company calculates the return on equity and earnings per share of consolidated financial statements within the
report period according to the requirements of the Rules for the Compilation of Information Disclosures by the
Companies That Offer Securities to the Public No.9-Computation and Disclosure of Return on Equity (revised in
2007) complied by the China Securities Regulatory Commission.
Return on equity (％)
Earnings per share
Items (Yuan)
Fully diluted Weighted average EPS-basic EPS-diluted
Net profit attributable to common
shareholders of the Company
2.83 2.83 0.07 0.07
The first
half year of
2009
Net profit attributable to common
shareholders of the Company after
deduction of non-recurring profit and loss
2.78 2.78 0.07 0.07
Net profit attributable to common
shareholders of the Company
6.30 6.30 0.16 0.16
The first
half year of
2008
Net profit attributable to common
shareholders of the Company after
deduction of non-recurring profit and loss
2.95 2.95 0.08 0.08
Formulas for computing various indexes are as follows:
(1) Fully diluted return on equity =P÷E
Of which: P is the net profit belonging to common stockholders of the company or the net profit belonging to
common stockholders of the company after deduction of non-recurring profit and loss；E is the closing net assets
belonging to common stockholders of the company.
(2) Weighted average yield of net assets =P/(E0＋NP÷2＋Ei×Mi÷M0－Ej×Mj÷M0±Ek×Mk÷M0)
Of which: P is the net profit belonging to common stockholders of the company or net profit belonging to
common stockholders of the company after deduction of non-recurring profit and loss；NP is the net profit
belonging to common stockholders of the company; E0 is the opening net assets belonging to common
shareholders of the company; Ei is the net assets newly added due to issuance of new shares or debt-to-equity
swap during the report period and belonging to common shareholders of the company; Ej is the net assets
decreased due to counter-purchase or cash bonus and belonging to common shareholders of the company; M0 is
the number of months of the report period; Mi is the number of months from the month following the increase of52
net assets to the end of the report period; Mj is the number of months from the month following the decrease of
net assets to the end of the report period; Ek is the change in net assets caused by other transactions or events; Mk
is the number of months from the month following the change of net assets to the end of the report period.
(3)Basic earnings per share=P÷S
S= S0＋S1＋Si×Mi÷M0－Sj×Mj÷M0－Sk
Of which: P is the net profit belonging to common stockholders of the company or net profit belonging to
common stockholders of the company after deduction of non-recurring profit and loss; S is the weighted mean of
the outstanding stock; S0 is the sum of shares at the beginning of the period; S1 is the number of shares increased
due to conversion of accumulation funds to capital stock or distribution of stock dividends during the report
period; Si is the number of shares increased due to issuance of new shares or debt-to-equity swap during the report
period; Sj is the number of shares decreased due to counter-purchase during the report period; Sk is the number of
shares reduced within the report period; M0 is the number of months of the report period; Mi is the number of
months from the month following the increase of net assets to the end of the report period; Mj is the number of
months from the month following the decrease of net assets to the end of the report period.
(4)Diluted earnings per share=[P+(Diluted potential common stock dividends confirmed as expenses －
conversion charge)×(1-income tax rate)]/(S0＋S1＋Si×Mi÷M0－Sj×Mj÷M0—Sk+ weighted mean of common
stock increased by subscription warrants, stock options and convertible bonds )
Of which: P is the net profit belonging to common stockholders of the company or the net profit belonging to
common stockholders of the company after deduction of non-recurring profit and loss.
The Company has no diluted potential ordinary share.
3. Provision for Impairment of Assets
Decrease in current period
Items
Amount at
period-begin
Increase in
current period
Amount
witching back
Other
decrease
Amount at
period-begin
Provision for bad debts
18,450,127.53 1,274,045.07
- -
19,724,172.60
Provision for falling price
of inventory
165,352.58 -
- -
165,352.58
Provision for impairment
of long-term investment
9,148,904.81 -
- -
9,148,904.81
Provision for impairment
of fixed assets
2,043,648.78 -
- -
2,043,648.78
Provision for impairment
of construction in
progress
- -
- -
-
Provision for impairment
of intangible assets
- -
- -
-
Total
29,808,033.70 1,274,045.07
- -
31,082,078.7753
VII. Documents Available for Reference
1. Text of the Semi-Annual Report 2009 carried the autograph of the chairman of the Board.
2. Financial Report carried signature and seal of person in charge of the Company, person in charge
of accounting work and person in charge of the accounting firm.
3. Original copies of all the documents of the Company and original manuscripts of public notices
disclosed publicly in newspapers designated by China Securities Regulatory Commission within the
reporting period.
4. Original copies of Articles of Association of the Company.
5. Other related materials
Board of Directors of
Foshan Electrical and Lighting Co., Ltd
18 Aug. 200954
Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd. 30 Jun. 2009 Unit: RMB Yuan
Closing amount Opening amount
Items
Consolidation Parent company Consolidation Parent company
Current assets:
Monetary funds 926,365,978.09 852,436,518.24 927,868,735.28 886,298,530.33
Settlement fund reserve
Dismantle fund
Transaction financial asset
Notes receivable 37,818,320.07 37,444,240.60 38,410,882.00 37,950,500.00
Account receivable 252,596,022.99 244,999,258.01 217,936,592.58 234,306,060.48
Account paid in advance 38,920,416.46 38,917,411.46 49,513,913.85 45,534,243.85
Premium receivables
Receivables from reinsurers
Reinsurance contract reserve
receivables
Interest receivable
Dividend receivable 1,376,373.53
Other account receivable 56,416,014.46 77,620,253.89 46,055,805.64 53,938,618.08
Financial assets purchased
under agreements to resell
Inventories 258,811,032.19 222,404,138.70 289,488,562.20 275,737,997.20
Non-current assets due within 1
year
Other current assets
Total current assets 1,570,927,784.26 1,473,821,820.90 1,569,274,491.55 1,535,142,323.47
Non-current assets:
Loans and advance
Available for sale financial assets
Held to maturity investments
Long-term account receivable
Long-term equity investment 185,934,296.23 316,664,686.07 185,934,296.23 313,664,686.07
Investing property
Fixed asset 704,000,001.67 633,081,896.89 739,153,801.16 650,536,282.48
Project in construction 159,533,230.38 129,788,250.69 126,808,534.41 116,670,796.50
Engineering material
Fixed asset disposal
Bearer biological asset
Oil assets
Intangible assets 196,388,734.48 166,838,710.26 191,500,392.72 161,838,003.50
Development expense
Goodwill
Long-term expense to be
apportioned
170,815.28 76,895.42 238,067.40 169,127.42
Deferred tax assets 16,889,762.29 17,054,648.08 17,359,253.59 17,274,045.17
Other non-current assets55
Total of non-current assets 1,262,916,840.33 1,263,505,087.41 1,260,994,345.51 1,260,152,941.14
Total assets 2,833,844,624.59 2,737,326,908.31 2,830,268,837.06 2,795,295,264.61
Current liabilities:
Short-term borrowings
Borrowing from Central Bank
Deposits and due to banks and
other financial institutions
Placements from banks and other
financial institutions
Transaction financial liabilities
Notes payable
Account payable 181,345,007.39 145,701,625.92 109,342,560.80 116,090,609.10
Account received in advance 10,674,616.56 10,000,000.00 16,065,789.02 15,246,368.29
Financial assets sold under
agreements to repurchase
Handling charges and commission
payable
Employee’s compensation
payable
37,079,715.60 15,244,098.07 37,637,138.30 36,870,520.50
Tax payable 16,741,627.44 37,056,007.53 -10,628,634.03 -10,688,266.86
Interest payable
dividend payable 723,431.20 723,431.20 1,521,857.82
Other account payable 26,068,825.44 22,938,125.28 43,159,960.81 42,649,059.53
Due to reinsurers
Insurance contract reserve
Customer deposits
Amount payables under security
underwriting
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 272,633,223.63 231,663,288.00 197,098,672.72 200,168,290.56
Non-current liabilities:
Long-term borrowings
Debentures payable
Long-term payables
Specific purpose account payables 450,000.00 450,000.00
Provisions for contingent
liabilities
Deferred tax liabilities
Other non-current liabilities
Total non-current liabilities 450,000.00 450,000.00
Total liabilities 272,633,223.63 231,663,288.00 197,548,672.72 200,618,290.56
Owner’s equity (or shareholders’
equity)
Paid-in capital (or share capital) 978,563,745.00 978,563,745.00 698,974,104.00 698,974,104.0056
Capital surplus 586,976,151.16 586,971,636.73 866,565,595.53 866,561,081.10
Less: Treasury Stock
Special reserve
Reserved fund 508,327,328.02 508,327,328.02 508,327,328.02 508,327,328.02
General risk provision
Retained earnings 445,284,196.02 431,800,910.56 527,878,059.71 520,814,460.93
Foreign exchange difference
Total owners' equity attributable
to holding company
2,519,151,420.20 2,505,663,620.31 2,601,745,087.26 2,594,676,974.05
Minority interest 42,059,980.76 30,975,077.08
Total owner’s equity 2,561,211,400.96 2,505,663,620.31 2,632,720,164.34 2,594,676,974.05
Total liabilities and owner’s
equity
2,833,844,624.59 2,737,326,908.31 2,830,268,837.06 2,795,295,264.61
Person in charge the Company: Zhong Xincai
Person in charge of accounting work: Zhong Xincai
Person in charge of accounting officer: Wang Shuqiong57
Income Statement
Prepared by Foshan Electrical and Lighting Co., Ltd. Jan.-Jun. 2009 Unit: RMB Yuan
Current period Same period of the previous year
Items
Consolidation Parent company Consolidation Parent company
I. Total sales 739,813,039.10 767,644,119.09 813,846,079.60 801,749,802.49
Including: Sales 739,813,039.10 767,644,119.09 813,846,079.60 801,749,802.49
Interests income
Premium income
Handling charges and
commission income
II. Total cost of sales 647,419,095.30 687,813,967.06 724,493,752.50 716,671,287.25
Including: Cost of sales 558,498,600.32 610,594,438.58 646,862,433.63 646,256,470.17
Interests expenses
Handling charges and
commission income
Cash surrender value
Net amount of claims
Net amount withdrawn from
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate charges 5,264,374.33 4,701,897.40 6,028,634.40 5,529,293.87
Selling and distribution
expenses
38,330,515.48 33,258,962.45 27,624,116.65 23,787,648.91
Administrative expenses 45,924,040.77 38,427,671.95 37,811,104.81 30,122,081.18
Financial expense -1,872,480.67 -1,705,626.15 -1,420,135.29 -1,316,149.68
Impairment loss 1,274,045.07 2,536,622.83 7,587,598.30 9,291,942.80
Add: gain/(loss) from change
in fair value (“-” means loss)
Investment income (“-” means
loss)
1,420,800.00 1,420,800.00 110,418,926.17 110,418,926.17
Including: income form
investment on affiliated enterprise
and jointly enterprise
Foreign exchange difference
(“-” means loss)
III. Business profit (“-” means
loss)
93,814,743.80 81,250,952.03 199,771,253.27 195,497,441.41
Plus: non-operation income 11,409,839.09 465,173.45 3,897,440.06 3,873,458.93
Less: non- operation expense 4,824,150.88 553,958.88 1,044,709.70 1,041,799.73
Including: loss from
non-current asset disposal
IV. Total profit (“-” means loss) 100,400,432.01 81,162,166.60 202,623,983.63 198,329,100.6158
Less: Tax expense 20,135,089.14 16,401,414.09 41,365,095.60 40,789,503.46
V. Net profit (“-” means loss) 80,265,342.87 64,760,752.51 161,258,888.03 157,539,597.15
Attributable to parent company 71,180,439.19 64,760,752.51 159,920,282.08 157,539,597.15
Minority interest 9,084,903.68 1,338,605.95
VI. Earnings per share
(I) basic earnings per share 0.07 0.16
(II) diluted earnings per share 0.07 0.16
Person in charge the Company: Zhong Xincai
Person in charge of accounting work: Zhong Xincai
Person in charge of accounting officer: Wang Shuqiong59
Foshan Electrical and Lighting Co., Ltd
Supporting Statement to the Income Statement
Return on Equity and Earnings per Share
Jan.-Jun. 2009 Jan.-Jun. 2008
Items Return on equity (%) Earnings per share (RMB) Return on equity (%) Earnings per share (RMB)
Fully diluted
Weighted
average
Fully
diluted
Weighted
average
Fully
diluted
Weighted
average
Fully
diluted
Weighted
average
Operating
profit
3.66 3.66 0.10 0.10 7.57 7.57 0.20 0.20
Net profit 2.83 2.83 0.07 0.07 6.30 6.30 0.16 0.16
Net profit
after
deducting
non-recurring
gains and
losses
2.78 2.78 0.07 0.07 2.95 2.95 0.08 0.0860
Cash Flow Statement
Prepared by Foshan Electrical and Lighting Co., Ltd. Jan.-Jun. 2009 Unit: RMB Yuan
Current period Same period of the previous year
Items
Consolidation Parent company Consolidation Parent company
Ⅰ.Cash flows from operating activities:
Cash received from sale of commodities
and rendering of service
806,092,242.90 775,196,453.91 833,003,995.91 820,705,695.54
Net increase of deposits from customers
and dues from banks
Net increase of loans from the central
bank
Net increase of funds borrowed from other
financial institutions
Cash received from premium of original
insurance contracts
Net cash received from reinsurance
business
Net increase of savings of policy holders
and investment fund
Net increase of disposal of tradable
financial assets
Cash received from interest, handling
charges and commissions
Net increase of borrowed inter-bank funds
Net increase of buy-back funds
Tax refunds received 8,393,944.52 8,393,944.52 1,355,892.33 1,354,108.33
Other cash received relating to operating
activities
14,700,803.27 17,842,089.60 12,138,199.24 12,250,332.22
Subtotal of cash inflows from operating
activities
829,186,990.69 801,432,488.03 846,498,087.48 834,310,136.09
Cash paid for purchase of commodities
and reception of service
437,024,191.79 453,178,837.73 558,504,530.59 565,893,436.90
Net increase of customer lending and
advances
Net increase of funds deposited in the
central bank and amount due from banks
Cash for paying claims of the original
insurance contract
Cash for paying interest, handling charges
and commissions
Cash for paying policy dividends
Cash paid to and for employees 92,109,149.41 79,808,693.89 159,034,300.32 148,984,870.87
Various taxes paid 52,715,851.25 42,027,289.71 73,214,061.69 65,024,047.86
Payment of cash relating to operating 19,686,975.53 26,641,635.50 62,469,986.10 62,127,214.5161
activities
Subtotal of cash outflows from operating
activities
601,536,167.98 601,656,456.83 853,222,878.70 842,029,570.14
Net cash flows from operating activities 227,650,822.71 199,776,031.20 -6,724,791.22 -7,719,434.05
Ⅱ. Cash flows from investment activities:
Cash received from disposal of
investments
571,205,033.41 571,205,033.41
Investment income 1,420,800.00 2,797,173.53 246,465,680.96 246,465,680.96
Net cash received from disposal of fixed
assets, intangible assets and other
long-term assets
-697,200.00 5,312,884.50 5,312,884.50
Net cash received from disposal of
subsidiary or other operating business
units
Other cash received relating to investment
activities
10,000,000.00 10,000,000.00
Subtotal of cash inflows from investment
activities
10,723,600.00 12,797,173.53 822,983,598.87 822,983,598.87
Cash paid to acquire fixed assets,
intangible assets and other long-term
assets
83,215,330.08 85,231,807.60 64,628,328.27 59,439,346.14
Cash paid for investment 9,574,789.08 12,574,789.08 531,394,913.49 531,394,913.49
Net increase of pledged loans
Net cash paid by subsidiaries and other
operating units
Payment of cash relating to other
investment activities
26,370.54 26,370.54
Subtotal of cash outflows from investment
activities
92,790,119.16 97,806,596.68 596,049,612.30 590,860,630.17
Net cash flows from investment activities -82,066,519.16 -85,009,423.15 226,933,986.57 232,122,968.70
Ⅲ.Cash flows from financing activities
Cash received from capital contribution 2,000,000.00
Of which: cash received from capital
contribution to subsidiaries by minority
shareholders
Cash received from borrowings
Cash received from issuance of bonds
Other cash received relating to financing
activities
Subtotal of cash flows from financing
activities
2,000,000.00
Cash repayments of amounts borrowed
Cash paid interest expenses and
distribution of dividends or profit
146,542,767.52 146,083,976.34 260,116,420.17 260,116,420.17
Of which: stock dividends and profits62
paid to minority shareholders by
subsidiaries.
Payment of cash relating to other
financing activities
Subtotal of cash outflows from financing
activities
146,542,767.52 146,083,976.34 260,116,420.17 260,116,420.17
Net cash flows from financing activities -144,542,767.52 -146,083,976.34 -260,116,420.17 -260,116,420.17
Ⅳ. Effect of foreign exchanges on cash
and cash equivalents
-2,544,293.22 -2,544,643.80 -3,023,471.78 -3,023,471.78
Ⅴ . Net increase of cash and cash
equivalents
-1,502,757.19 -33,862,012.09 -42,930,696.60 -38,736,357.30
Plus: beginning balance of cash and cash
equivalents
927,868,735.28 886,298,530.33 1,098,078,385.11 1,062,083,375.17
Ⅵ .Closing balance of cash and cash
equivalents
926,365,978.09 852,436,518.24 1,055,147,688.51 1,023,347,017.87
Person in charge the Company: Zhong Xincai
Person in charge of accounting work: Zhong Xincai
Person in charge of accounting officer: Wang Shuqiong63
Supporting Statement to the Cash Flow Statement
Prepared by Foshan Electrical and Lighting Co., Ltd. Jan.-Jun. 2009 Unit: RMB Yuan
Supplementary information Current period
Same period of the
previous year
1. Transferring net profit into cash flows of operating activities:
Net profit 80,265,342.87 161,258,888.03
Plus: Provision for assets impairment 1,274,045.07 7,587,598.30
Depreciation of fixed assets 62,055,384.65 70,293,223.15
Amortization of intangible assets 2,311,658.24 1,565,207.35
Amortization of long-term deferred expenses 92,232.00 102,232.02
Loss on disposal of fixed assets, intangible assets and other
long-term assets (income is listed as “-”)
-6,793,726.04 -898,799.77
Losses on change in fair value（income is listed as “-”） -
Financial expense（income is listed as “-”） 1,072,992.60 4,569,928.68
Investment losses（income is listed as “-”） -1,420,800.00 -110,418,926.17
Deferred tax – credit item（Less: debt item） -187,037.92 -21,346,752.64
Decrease of inventories (increase is listed as “-”) 30,677,530.01 -57,819,872.43
Decrease in operating receivables (increase is listed as “-”) -54,715,426.68 -159,396,126.14
Increase in operating payables (decrease is listed as “-”) 113,018,627.91 97,778,608.40
Other
Net cash flows arising from operating activities: 227,650,822.71 -6,724,791.22
2. Investing and financing activities that do not involving significant
cash receipts and payments
Conversion of debt into capital
Reclassify convertible bonds to be expired within one year as
current liabilities
Fixed assets financed by financing leases
3. Net increase in cash and cash equivalents:
Closing balance of cash 926,365,978.09 1,055,147,688.51
Less: Opening balance of cash 927,868,735.28 1,098,078,385.11
Add: Closing balance of cash equivalents
Less: Opening balance of cash equivalents
Net increase in cash and cash equivalents -1,502,757.19 -42,930,696.60
Person in charge the Company: Zhong Xincai
Person in charge of accounting work: Zhong Xincai
Person in charge of accounting officer: Wang Shuqiong64
Statement to the Provision for Impairment of Assets
(Consolidated accounting statement)
Prepared by Foshan Electrical and Lighting Co., Ltd. Jan.-Jun. 2009 Unit: RMB Yuan
Decrease in the reporting period
Items
Opening book
balance
Withdrawal in
the reporting
period Reversed amount Writing-off
Closing book
balance
I. Reserve for bad debts 18,450,127.53 1,274,045.07 19,724,172.60
II. Reserve for falling price of inventory 165,352.58 165,352.58
III. Provision for impairment of
financial assets available for sale
IV. Provision for impairment of
held-to-maturity investment
V. Provision for impairment of
long-term equity investment
9,148,904.81 9,148,904.81
VI. Provision for impairment of
investment real estate
VII. Provision for impairment of fixed
assets
2,043,648.78 2,043,648.78
VIII. Provision for impairment of
project materials
IX. Provision for impairment of
construction in progress
X. Provision for impairment of
productive biological assets
Of which: Provision for impairment
of mature productive biological assets
XI. Provision for impairment of oil–gas
assets
XII. Provision for impairment of
intangible assets
XIII. Provision for impairment of
goodwill
XIV. Other
Total 29,808,033.70 1,274,045.07 31,082,078.77
Person in charge the Company: Zhong Xincai
Person in charge of accounting work: Zhong Xincai
Person in charge of accounting officer: Wang Shuqiong65
Consolidated Statement of Change in Owners’ Equity
Prepared by Foshan Electrical and Lighting Co., Ltd. 30 Jun. 2009 Unit: RMB Yuan
Amount for the current period Amount for the previous period
Owners’ equity attributable to parent company Owners’ equity attributable to parent company
Items Paid-up
capital (or
share capital)
Capital reserve
Less
en:
treas
ury
stock
Spec
ial
reser
ve
Surplus
reserve
Gene
ral
risk
reser
ve
Retained profits
O
th
er
s
Minority
interests
Total of owners’
equity
Paid-up
capital (or
share capital)
Capital reserve
Less
en:
treas
ury
stock
Sp
eci
al
re
se
rv
e
Surplus reserve
G
en
er
al
ris
k
re
se
rv
e
Retained
profits
O
th
er
s
Minority
interests
Total of owners’
equity
I. Balance at the end of last year 698,974,104.00 866,565,595.53 508,327,328.02 527,878,059.71 30,975,077.08 2,632,720,164.34 465,982,737.00 1,436,625,679.93 508,327,328.02 576,317,365.16 31,211,078.87 3,018,464,188.98
Add: change of accounting policy
Correction of errors in previous
period
Other
II. Balance at the beginning of this
year
698,974,104.00 866,565,595.53 508,327,328.02 527,878,059.71 30,975,077.08 2,632,720,164.34 465,982,737.00 1,436,625,679.93 508,327,328.02 576,317,365.16 31,211,078.87 3,018,464,188.98
III. Increase/ decrease of amount
in this year (“-” means decrease)
279,589,641.00 -279,589,444.37 -82,593,863.69 11,084,903.68 -71,508,763.38 232,991,367.00 -570,060,084.40 -48,439,305.45 -236,001.79 -385,744,024.64
(I) Net profit 71,180,439.19 9,084,903.68 80,265,342.87 224,160,595.11 1,285,856.03 225,446,451.14
(II)Gain/loss listed to owners’
equity directly
196.63 0.00 196.63 -337,068,717.40 -337,068,717.40
1. Net amount on changes in book
value of financial assets available
for sale
-449,424,956.54 -449,424,956.54
2. Effect on changes in other
owners’ equity of invested units
under equity method66
3. Effect on income tax related to
items listed to owners’ equity
112,356,239.14 112,356,239.14
4. Others 196.63 196.63
Subtotal of (I)and (II) 196.63 71,180,439.19 9,084,903.68 80,265,539.50 -337,068,717.40 224,160,595.11 1,285,856.03 -111,622,266.26
(III) Input an reduced capital of
owners
2,000,000.00 2,000,000.00
1. Input capital of owners
2. Amount of Shares included in
the owners’ equity
3. Others 2,000,000.00 2,000,000.00
(IV) Profit distribution
-153,774,302.88 -153,774,302.88
-272,599,900.5
6
-1,521,857.82 -274,121,758.38
1．Withdrawing surplus public
reserve
2. Withdrawing general risk
reserve
-272,599,900.5
6
-1,521,857.82 -274,121,758.38
3．Distribution to owners
(shareholders)
-153,774,302.88 -153,774,302.88
4．Other
(V)Internal carrying forward of
owners’ equity
279,589,641.00 -279,589,641.00 232,991,367.00 -232,991,367.00
1. New increase of capital (share
capital) from capital reserves
279,589,641.00 -279,589,641.00 232,991,367.00 -232,991,367.00
2. Convert surplus reserves to
capital(share capital)
3. Surplus reserves make up
losses
4. Others
IV. Balance at the end of this
period
978,563,745.00 586,976,151.16 508,327,328.02 445,284,196.02 42,059,980.76 2,561,211,400.96 698,974,104.00 866,565,595.53 508,327,328.02 527,878,059.71 30,975,077.08 2,632,720,164.34
Person in charge the Company: Zhong Xincai Person in charge of accounting work: Zhong Xincai Person in charge of accounting officer: Wang Shuqiong67
Statement of Change in Owners’ Equity of Parent Company
Prepared by Foshan Electrical and Lighting Co., Ltd. Jan.-Jun. 2009 Unit: RMB Yuan
Amount for the current period Amount for the previous period
Items Paid-up capital
(or share capital)
Capital reserve
Lessen:
treasury
stock
Spec
ial
reser
ve
Surplus reserve Retained profits
Total of owners’
equity
Paid-up capital
(or share capital)
Capital reserve
Lessen
:
treasur
y stock
Speci
al
reserv
e
Surplus reserve Retained profits
Total of owners’
equity
I. Balance at the end of last year 698,974,104.00 866,561,081.10 508,327,328.02 520,814,460.93 2,594,676,974.05 465,982,737.00 1,436,621,165.50 508,327,328.02 566,317,089.19 2,977,248,319.71
Add: change of accounting policy
Correction of errors in previous period
Other
II. Balance at the beginning of this year 698,974,104.00 866,561,081.10 508,327,328.02 520,814,460.93 2,594,676,974.05 465,982,737.00 1,436,621,165.50 508,327,328.02 566,317,089.19 2,977,248,319.71
III. Increase/ decrease of amount in this year
(“-” means decrease)
279,589,641.00 -279,589,444.37 -89,013,550.37 -89,013,353.74 232,991,367.00 -570,060,084.40 -45,502,628.26 -382,571,345.66
(I) Net profit 64,760,752.51 64,760,752.51 227,097,272.30 227,097,272.30
(II)Gain/loss listed to owners’ equity directly 196.63 196.63 -337,068,717.40 -337,068,717.40
1. Net amount on changes in book value of
financial assets available for sale
-449,424,956.54 -449,424,956.54
2. Effect on changes in other owners’ equity
of invested units under equity method
3. Effect on income tax related to items listed
to owners’ equity
112,356,239.14 112,356,239.14
4. Others 196.63 196.63
Subtotal of (I)and (II) 196.63 64,760,752.51 64,760,949.14 -337,068,717.40 227,097,272.30 -109,971,445.10
(III) Input an reduced capital of owners
1. Input capital of owners
2. Amount of Shares included in the owners’
equity
3. Others
(IV) Profit distribution -153,774,302.88 -153,774,302.88 -272,599,900.56 -272,599,900.56
1．Withdrawing surplus public reserve68
2．Distribution to owners (shareholders) -153,774,302.88 -153,774,302.88 -272,599,900.56 -272,599,900.56
3．Other
(V)Internal carrying forward of owners’ equity 279,589,641.00 -279,589,641.00 0.00 232,991,367.00 -232,991,367.00
1. New increase of capital (share capital)
from capital reserves
279,589,641.00 -279,589,641.00 0.00 232,991,367.00 -232,991,367.00
2. Convert surplus reserves to capital(share
capital)
3. Surplus reserves make up losses
4. Others
IV. Balance at the end of this period 978,563,745.00 586,971,636.73 508,327,328.02 431,800,910.56 2,505,663,620.31 698,974,104.00 866,561,081.10 508,327,328.02 520,814,460.93 2,594,676,974.05
Person in charge the Company: Zhong Xincai Person in charge of accounting work: Zhong Xincai Person in charge of accounting officer: Wang Shuqiong
