意见反馈 手机随时随地看行情

公司公告

粤照明B:2010年第一季度报告全文(英文版)2010-04-28  

						The First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    1

    Foshan Electrical and Lighting Co., Ltd

    The First Quarterly Report for 2010

    §1 Important Notice

    1.1 The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior

    management staffs of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the

    Company”) individually and jointly accepted responsibility for the correctness, accuracy and

    completeness of the contents of this report and confirmed that there was no false information,

    misleading statement or material omissions.

    1.2 None of the directors demonstrated uncertainty or disagreement about the truthfulness, accuracy,

    and completeness of this quarterly report.

    1.3 All directors attended the Board meeting.

    1.4 The first quarterly financial report has not been audited by Accounting Firm.

    1.5 Zhong Xincai, Chairman of the Board and concurrently person in charge of accounting affairs,

    and Ms. Wang Shuqiong, the Manager of the Financial Department, hereby confirmed that the

    Financial Report enclosed in the quarterly report is true and complete

    §2 Company Profile

    2.1 Main accounting data and financial indices

    Unit: RMB Yuan

    At the end of the reporting

    period At the end of last year Increase/decrease (%)

    Total assets (RMB Yuan) 3,031,670,864.33 2,995,100,164.41 0.75%

    Owner’s equity attributable to shareholders of

    listed company (RMB Yuan) 2,687,755,143.63 2,660,099,988.21 1.04%

    Share capital (Share) 978,563,745.00 978,563,745.00 0.00%

    Net asset per share attributable to shareholders of

    listed company (RMB Yuan/share) 2.75 2.72 1.04%

    Reporting period Same period of last year Increase/decrease (%)

    Sales turnover (RMB Yuan) 374,418,879.89 374,846,671.69 -0.11%

    Net profit attributable to shareholders of listed

    company (RMB Yuan) 27,655,122.03 40,265,095.01 -31.32%

    Net cash flow arising from operating activities

    (RMB Yuan) 35,422,624.91 164,094,856.81 -78.41%

    Net cash flow per share arising from operating

    activities (RMB Yuan/share) 0.04 0.17 -78.41%

    Basic earnings per share (RMB Yuan/share) 0.03 0.04 -31.32%

    Diluted earnings per share (RMB Yuan/share) 0.03 0.04 -31.32%

    Weighted average return on equity (%) 0.01% 0.02% -32.02%

    Weighted average return on equity after

    deducting extraordinary gains and losses (%) 0.01% 0.02% -34.38%The First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    2

    Items of extraordinary gains and losses Amount from 1 Jan. to 31

    Mar. 2010

    Gains on disposal of non-current assets including reversal of the impairment loss -1,334.02

    Ultra vires approval, with or without formal approval documents, or occasional tax return, relief

    Government grant recognized in current year, except for those acquired in the ordinary course of

    business or granted continuously in certain standard quota according to relevant national laws and

    regulations

    559,516.22

    Included in current profit and loss against the non-financial enterprises occupation fee funds collected

    The investment cost of subsidiaries obtained by the enterprise, joint ventures and partnership enterprise

    is less than the revenues generated from the fair value of identifiable net assets of the unvested units

    Exchange gains and losses of non-monetary assets

    Gains and loss through entrust others to invest or manage assets

    Gains and loss for the provision of impairment of assets due to force majeure factors, such as victims of

    natural disaster

    Debt restructuring gains and losses

    Company restructuring expenses such as employee placement and integration costs

    Significant loss of fair trading price over the fair value of transactions generated part of the profit and

    loss

    Current net profit or loss from the beginning to the date of merge for the subsidiary resulted from the

    merge of the enterprise under the control of the same company.

    Profit or loss generated from the matters which is not related to the Company’s normal operation or

    contingency

    In addition to the normal operations associated with the company effective hedging business, holders of

    tradable financial assets, trading financial liabilities resulting from changes in fair value gains and

    losses, as well as the disposal of trading financial assets, trading financial liabilities and financial assets

    available for sale achieved an investment return

    141,819.06

    Separately tested for impairment of receivables impairment reversal

    Entrusted to the profit and loss made foreign loans

    Fair value model with subsequent measurement of investment real estate gains and losses arising from

    changes in fair value

    According to tax, accounting and other laws and regulations require a one-time adjustment of current

    profit and loss impact on the current profit and loss

    Entrusting fee incomes from entrust operation

    Other non-operating income and expense other than abovementioned 35,632.70

    Other non-recurring gains and losses in line with the definition of profit and loss items -1,229.55

    Influence amount of minority interest

    Influence amount of income tax -99,550.17

    Total 634,854.24

    Explanation on important items of extraordinary gains and losses:

    2.2 Statement on total number of shareholders and shares held by the top ten shareholders not

    subject to trading moratorium

    Unit: share

    Total number of shareholders 113,257

    Shares held by the top ten shareholders not subject to trading moratorium

    Full name of shareholders Shares not subject to trading moratorium

    held at the period-end Type of share

    Prosperity Lamps & Components Limited 102,751,648 RMB common shares

    DBS VICKERS (HONG KONG) LTD A/C

    CLIENTS 12,215,048 Domestically listed foreign share

    Hai Tong Securities (HK) Brokerage Ltd 10,576,390 Domestically listed foreign shareThe First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    3

    Industrial and Commercial Bank of China-GF

    Sustaining Growth Fund 10,499,948 RMB common shares

    China Construction Bank-China Selected Stock

    Fund 10,200,556 RMB common shares

    Bank of China-E Fund Shenzhen Stock 100

    Exchange Trade Fund 9,706,141 RMB common shares

    EAST ASIA SECURITIES COMPANY

    LIMITED 9,527,080 Domestically listed foreign share

    Bank of China-First-Trust Goodquality Life

    Stock Fund 8,075,170 RMB common shares

    Industrial and Commercial Bank of

    China-Rongtong Securities SZSE 100 Index

    Investment Fund

    6,358,080 RMB common shares

    China Everbright Bank Company Limited -

    First-Trust Leading Stategy Fund Open-ended

    Fund

    6,058,564 RMB common shares

    §3 Significant Events

    3.1 Significant changes in major accounting data, financial highlights and reasons for these changes.

    √Applicable □Non-applicable

    1. Advances to suppliers increased by 330.56% over the beginning of the year, which was because

    of payment for purchase paid by the Company according to the contract of long-term supply to

    obtain favorable price from suppliers;

    2. Accounts payable increased by 33.30% over the beginning of the year, which was caused by the

    increase in accounts payable for materials;

    3. Advances from customers decreased by 49.70% over the beginning of the year, which was

    because that the Company, in the reporting period, settled payment for goods advances received

    in the previous period and then returned the balance to customers.

    4. Other payables decreased by 36.41% over the beginning of the year, which was due to decrease

    in margin money of suppliers;

    5. Sale expense increased by 40.97% year-on-year, which was because of increasing promotion and

    general publicity expenses of products;

    6. Financial expense increased by 79.81% year-on-year, which was due to increase of interests;

    7. Non-operating income decreased by 93.63% year-on-year, which was because of gains on

    disposal of non-current assets at the same period of last year;

    8. Non-operating expense decreased by 96.07% year-on-year, which was because of cost on

    disposal of non-current assets at the same period of last year;

    9. Net cash flow arising from operating activities decreased by 78.41% year-on-year, which was

    caused by the increase of cash paid relating to operating activities in this reporting period;

    10. Net increase in cash and cash equivalents decreased by 119.34% year-on-year, which was caused

    by the decrease of net cash flow arising from operating activities in this reporting period;

    3.2 Process of significant events and influence, as well as analysis and explanation on resolving

    proposal

    □Applicable √Inapplicable

    3.3 Special commitments made by the company, shareholders and actual controllers

    √Applicable □InapplicableThe First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    4

    Commitment Commitment maker Contents of the commitment Execution

    Commitment concerning share

    merger reform

    OSRAM Holding

    Company Limited

    Name of shareholder: OSRAM Holding

    Company Limited

    Special commitment: No listing and transfer

    may be taken within 60 months as of the date

    when the shares of the Company held by this

    company obtain the trading right [i] or before

    Dec. 31, 2011 [ii] (taking the earlier date

    between [i] and [ii]). OSRAM would submit

    Shenzhen Stock Exchange to lock up the said

    shares in the course of the moratorium of trading

    right of the aforesaid shares after transfer of the

    shares.

    2. Germany OSRAM Company would purchase

    the lamp products from FSL in accordance with

    the clauses of the Purchase Contract on Lamp

    Products signed between Germany OSRAM

    Company and FSL on Aug. 31, 2004.

    3. As required by FSL, OSRAM should urge

    Germany OSRAM Company to provide the

    relevant technology abidance and skill to FSL in

    accordance with the clauses and conditions

    negotiated between FSL and Germany OSRAM

    Company.

    In progress of

    implementation

    Commitment concerning share

    trading moratorium N/A N/A N/A

    Commitments made in a purchase

    report or a report on changes of

    owners’ equity

    N/A N/A N/A

    Commitments made in material

    asset reorganization N/A N/A N/A

    Commitments made when issuing N/A N/A N/A

    Other commitments (including

    supplementary ones) N/A N/A N/A

    3.4 Warnings of possible loss or large-margin change of the accumulated net profit made during the

    period from the beginning of the year to the end of the next report period compared with the same

    period of the last year according to prediction, as well as explanations on the reasons

    □Applicable √Inapplicable

    3.5 Other significant events need to be explained

    3.5.1 Securities investment

    √Applicable □Inapplicable

    Unit: RMB Yuan

    No. Stock

    variety Stock code Short form of

    Stock

    Initial

    investment

    Shares held at

    the

    period-end

    Book value at the

    period-end

    Proportion to

    total

    securities

    investment at

    period-end

    (%)

    Profits and losses

    in reporting

    period

    1 Stock 002383 UniStrong Science

    &Technology 18,500.00 500.00 18,500.00 51.39%

    2 Stock 002382 Blue Sail 17,500.00 500.00 17,500.00 48.61%

    Other securities investment at the end of period -

    Investment gains/(losses) arising from sale of

    securities - - - - 141,819.06

    Total - 100%The First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    5

    Explanation on securities investment

    The above-mentioned stocks are those shares that the Company subscribed and won the lot for IPO,

    but not sell out.

    3.5.2 Reception of research, interviews and visits in the reporting period

    Reception time Reception place Reception way Reception object Major discussion content and the

    information provided by the Company

    13 Jan. 2010 The Company Field research Golden Eagle Asset

    Management Co., Ltd

    To know production and operation of the

    Company

    13 Jan. 2010 The Company Field research GF Securities To know production and operation of the

    Company

    13 Jan. 2010 The Company Field research New China Assets To know production and operation of the

    Company

    14 Jan. 2010 The Company Field research Everbright Securities To know production and operation of the

    Company

    22 Jan. 2010 The Company Field research Union Bank of

    Switzerland

    To know production and operation of the

    Company

    5 Mar. 2010 The Company Field research Guosen Securities To know production and operation of the

    Company

    5 Mar. 2010 The Company Field research Rising Securities To know production and operation of the

    Company

    5 Mar. 2010 The Company Field research Yinhua Fund

    Management Co., Ltd.

    To know production and operation of the

    Company

    17 Mar. 2010 The Company Field research Xiangcai Securities To know production and operation of the

    Company

    17 Mar. 2010 The Company Field research Ping’an Asset

    Management Co., Ltd.

    To know production and operation of the

    Company

    18 Mar. 2010 The Company Field research CITIC Securities To know production and operation of the

    Company

    18 Mar. 2010 The Company Field research China Southern Fund To know production and operation of the

    Company

    18 Mar. 2010 The Company Field research Boshi Fund Management

    Co., Ltd.

    To know production and operation of the

    Company

    19 Mar. 2010 The Company Field research Everbright Securities To know production and operation of the

    Company

    30 Mar. 2010 The Company Field research CINDA Securities To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research SYWG Securities To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research Guotai AMC To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research AEGON-Industrial Fund

    Management Co., Ltd.

    To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research Guoyuan Securities Co.,

    Ltd.

    To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research GF Fund To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research Rongtong Fund

    Management Co., Ltd.

    To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research Dacheng Fund

    Management Co., Ltd.

    To know production and operation of the

    Company

    31 Mar. 2010 The Company Field research Zhonghai Fund

    Management Co., Ltd.

    To know production and operation of the

    CompanyThe First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    6

    31 Mar. 2010 The Company Field research Harvest Fund

    Management Co., Ltd.

    To know production and operation of the

    Company

    3.5.3 Explanation on other significant events

    □Applicable √Inapplicable

    3.6 Derivative Investment

    □Applicable √Inapplicable

    3.6.1 Derivatives held as at the end of the report period

    □Applicable √Inapplicable

    §4 Attachment

    4.1 Balance sheet

    Prepared by Foshan Electrical and Lighting Co., Ltd. 31 Mar. 2010 Unit: RMB Yuan

    Closing balance Opening balance

    Item

    Consolidation Parent company Consolidation Parent company

    Current assets:

    Monetary funds 1,014,665,749.11 907,317,342.81 1,036,582,265.88 927,931,735.27

    Settlement fund reserve

    Dismantle fund

    Transaction financial asset 36,000.00 36,000.00 121,570.00 121,570.00

    Notes receivable 46,796,962.48 47,623,242.73 54,093,298.72 51,333,256.72

    Account receivable 300,366,040.53 294,218,947.21 284,367,231.84 304,213,230.54

    Account paid in advance 67,145,693.46 67,039,378.46 15,594,986.51 11,992,075.44

    Premium receivables

    Receivables from reinsurers

    Reinsurance contract reserve

    receivables

    Interest receivable

    Dividend receivable

    Other account receivable 14,392,105.36 52,807,346.93 12,842,598.07 46,329,398.39

    Financial assets purchased under

    agreements to resell

    Inventories 248,206,597.00 208,334,969.76 234,240,250.37 202,292,392.67

    Non-current assets due within 1

    year

    Other current assets

    Total current assets 1,691,609,147.94 1,577,377,227.90 1,637,842,201.39 1,544,213,659.03

    Non-current assets:

    Loans and advance

    Available for sale financial assets

    Held to maturity investments

    Long-term account receivable

    Long-term equity investment 254,124,296.23 385,904,686.07 254,124,296.23 385,904,686.07

    Investing property

    Fixed asset 639,524,715.83 580,812,333.55 667,218,994.19 605,693,295.95

    Project in construction 196,772,381.46 135,939,701.18 184,971,615.68 128,488,231.78

    Engineering materialThe First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    7

    Fixed asset disposal

    Bearer biological asset

    Oil assets

    Intangible assets 226,804,795.20 208,789,950.10 228,064,300.35 209,996,698.18

    Development expense

    Goodwill

    Long-term expense to be

    apportioned

    Deferred income tax assets 22,835,527.67 22,376,414.06 22,878,756.57 22,419,642.96

    Other non-current assets

    Total of non-current assets 1,340,061,716.39 1,333,823,084.96 1,357,257,963.02 1,352,502,554.94

    Total assets 3,031,670,864.33 2,911,200,312.86 2,995,100,164.41 2,896,716,213.97

    Current liabilities:

    Short-term borrowings

    Borrowings from Central Bank

    Deposits and due to banks and

    other financial institutions

    Borrowings from banks and other

    financial institutions

    Transactional financial liabilities

    Notes payable

    Accounts payable 187,611,534.27 132,976,136.35 140,739,081.85 120,577,073.98

    Accounts received in advance 15,835,314.18 14,653,525.05 31,482,851.09 29,945,697.96

    Financial assets sold under

    agreements to repurchase

    Handling charges and

    commissions payable

    Employee’s compensation

    payable 38,731,204.70 38,693,877.53 48,390,789.12 46,769,031.39

    Taxes and fares payable 20,652,717.76 20,487,347.59 22,246,390.83 21,042,745.31

    Interest payable

    Dividend payable 2,600,000.00

    Other accounts payable 23,140,343.26 22,333,590.11 36,391,801.59 26,152,530.24

    Due to reinsurers

    Insurance contract reserve

    Amount payable for acting

    trading securities

    Amount payable for acting

    underwriting securities

    Non-current liabilities due within

    1 year

    Other current liabilities

    Total current liabilities 288,571,114.17 229,144,476.63 279,250,914.48 244,487,078.88

    Non-current liabilities:

    Long-term borrowings

    Debentures payable

    Long-term payables

    Specific-purpose account

    payablesThe First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    8

    Accrued liabilities

    Deferred income tax liabilities

    Other non-current liabilities 11,263,551.96 10,633,949.94 9,852,274.95 9,852,274.95

    Total non-current liabilities 11,263,551.96 10,633,949.94 9,852,274.95 9,852,274.95

    Total liabilities 299,834,666.13 239,778,426.57 289,103,189.43 254,339,353.83

    Shareholders’ equity

    Share capital 978,563,745.00 978,563,745.00 978,563,745.00 978,563,745.00

    Capital surplus 586,925,987.92 586,971,473.49 586,925,954.53 586,971,440.10

    Less: Treasury Stock

    Special reserve

    Surplus reserve 528,474,746.92 528,474,746.92 526,651,752.67 526,651,752.67

    General risk provision

    Retained earnings 593,790,663.79 577,411,920.88 567,958,536.01 550,189,922.37

    Foreign exchange difference

    Total owners' equity attributable to

    holding company 2,687,755,143.63 2,660,099,988.21 2,642,376,860.14

    Minority interests 44,081,054.57 45,896,986.77

    Total owners’ equity 2,731,836,198.20 2,671,421,886.29 2,705,996,974.98 2,642,376,860.14

    Total liabilities and owners’ equity 3,031,670,864.33 2,911,200,312.86 2,995,100,164.41 2,896,716,213.97

    Person in charge of the Company: Zhong Xincai

    Person in charge of accounting affairs: Zhong Xincai

    Person in charge of accounting firm: Wang Shuqiong

    4.2 Income Statement

    Prepared by Foshan Electrical and Lighting Co., Ltd. Jan.- Mar. 2010 Unit: RMB Yuan

    Jan. – Mar. 2010 Jan. – Mar. 2009

    Items

    Consolidation Parent company Consolidation Parent company

    I. Total operating revenue 374,418,879.89 334,977,837.25 374,846,671.69 380,113,499.98

    Including: Sales 374,418,879.89 334,977,837.25 374,846,671.69 380,113,499.98

    Interest income

    Premium income

    Handling charges and

    commission income

    II. Total operating cost 341,193,265.20 303,086,422.41 325,753,834.12 333,613,131.07

    Including: Cost of sales 297,304,591.29 264,045,446.28 290,549,585.43 302,442,374.45

    Interest expenses

    Handling charges and

    commission expenses

    Cash surrender value

    Net amount of claims

    Net provision for

    insurance contract reserve

    Expenditure on policy

    dividends

    Reinsurance premium

    Taxes and associate

    charges 2,893,659.13 2,371,688.07 3,270,572.72 2,989,327.58

    Selling and distribution 20,876,610.08 18,653,059.72 14,809,401.59 13,361,954.22The First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    9

    expenses

    Administrative expenses 21,930,134.98 19,750,303.00 18,261,774.47 15,888,899.74

    Financial expenses -2,045,368.13 -1,734,074.66 -1,137,500.09 -1,069,424.92

    Asset impairment loss 233,637.85

    Add: Gain/(loss) from change in

    fair value (“-” means loss)

    Gain/(loss) from investment

    (“-” means loss) 141,819.06 1,891,819.06

    Including: income form

    investment on affiliated

    enterprises and jointly-run

    enterprises

    Foreign exchange difference (“-”

    means loss)

    III. Business profit (“-” means

    loss) 33,367,433.75 33,783,233.90 49,092,837.57 46,500,368.91

    Add: non-operation income 713,165.90 700,179.70 11,202,781.84 335,702.01

    Less: non-business expense 186,541.53 186,541.53 4,743,996.53 473,944.53

    Including: loss from non-current

    asset disposal

    IV. Total profit (“-” means loss) 33,894,058.12 34,296,872.07 55,551,622.88 46,362,126.39

    Less: Income tax expense 6,566,268.29 5,251,879.31 9,452,838.98 6,609,320.96

    V. Net profit (“-” means loss) 27,327,789.83 29,044,992.76 46,098,783.90 39,752,805.43

    Attributable to parent

    company 27,655,122.03 29,044,992.76 40,265,095.01 39,752,805.43

    Minority interests -327,332.20 5,833,688.89

    VI. Earnings per share

    (I) basic earnings per share 0.03 0.04

    (II) diluted earnings per

    share 0.03 0.04

    Ⅶ. Other comprehensive income

    Ⅷ. Total comprehensive income 27,327,789.83 29,044,992.76 46,098,783.90 39,752,805.43

    Attributable to owners of parent

    company 27,655,122.03 29,044,992.76 40,265,095.01 39,752,805.43

    Attributable to minority

    shareholders -327,332.20 5,833,688.89

    Person in charge of the Company: Zhong Xincai

    Person in charge of accounting affairs: Zhong Xincai

    Person in charge of accounting firm: Wang Shuqiong

    4.3 Cash Flow Statement

    Prepared by Foshan Electrical and Lighting Co., Ltd. Jan. - Mar. 2010 Unit: RMB Yuan

    Jan. – Mar. 2010 Jan. – Mar. 2009

    Items

    Consolidation Parent company Consolidation Parent company

    I. Cash flows from operating activities:

    Cash received from sale of commodities

    and rendering of service 402,283,908.13 358,173,412.72 399,761,356.80 391,364,642.82

    Net increase of deposits from customers

    and dues from banks

    Net increase of loans from the centralThe First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    10

    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 borrowings from banks

    and other financial institutions

    Net increase of buy-back funds

    Tax refunds received 5,372,993.03 5,102,993.03 6,975,105.24 6,975,105.24

    Other cash received relating to operating

    activities 7,922,307.54 7,516,195.58 22,316,528.57 21,561,106.45

    Subtotal of cash inflows from operating

    activities 415,579,208.70 370,792,601.33 429,052,990.61 419,900,854.51

    Cash paid for goods and services 271,452,808.90 245,955,010.27 173,323,883.09 180,397,064.88

    Net increase of customer lending and

    advance

    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 58,132,210.19 54,966,738.96 41,254,414.07 35,546,605.07

    Various taxes paid 22,522,813.01 15,599,094.92 21,406,777.35 18,496,656.56

    Other payment of cash relating to

    operating activities 28,048,751.69 24,511,449.69 28,973,059.29 30,221,164.29

    Subtotal of cash outflows from operating

    activities 380,156,583.79 341,032,293.84 264,958,133.80 264,661,490.80

    Net cash flows from operating activities 35,422,624.91 29,760,307.49 164,094,856.81 155,239,363.71

    II. Cash Flows from investment activities:

    Cash received from withdrawing

    investments 1,121,575.00 1,121,575.00

    Cash received from investment income 141,819.06 1,891,819.06 1,376,373.53

    Net cash received from disposal of fixed

    assets, intangible assets and other long-term

    assets

    Net cash received from disposal of

    subsidiary or other operating business units

    Other cash received relating to

    investment activities

    Subtotal of cash inflows from

    investment activities 1,263,394.06 3,013,394.06 1,376,373.53

    Cash paid to acquire fixed assets,

    intangible assets and other long-term assets 56,819,478.19 52,217,036.46 31,772,954.56 35,134,253.82The First Quarterly Report for 2010 of Foshan Electrical and Lighting Co., Ltd.

    11

    Cash paid for investment 1,036,005.00 1,036,005.00 17,574,789.08 17,574,789.08

    Net increase of pledged loans

    Net cash paid to acquire subsidiaries and

    other operating units

    Payment of cash relating to other

    investment activities

    Subtotal of cash outflows from investment

    activities 57,855,483.19 53,253,041.46 49,347,743.64 52,709,042.90

    Net cash flows from investment activities -56,592,089.13 -50,239,647.40 -49,347,743.64 -51,332,669.37

    III. Cash Flows from Financing Activities:

    Cash received from absorbing

    investment

    Including: Cash received by

    subsidiaries from increase in minority

    interests

    Cash received from borrowings

    Cash received from issuance of bonds

    Other cash received relating to

    financing activities

    Subtotal of cash inflows from financing

    activities

    Cash repayments of amounts borrowed

    Cash paid for interest expenses and

    distribution of dividends or profit 612,000.00 91,758.24

    Including: dividends or profit paid by

    subsidiaries to minority shareholders 612,000.00 91,758.24

    Other cash payments relating to

    financing activities

    Sub-total of cash outflows from financing

    activities 612,000.00 91,758.24

    Net cash flows from financing activities -612,000.00 -91,758.24

    IV. Effect of foreign exchange rate changes

    on cash and cash equivalents -135,052.55 -135,052.55 -1,305,145.33 -1,305,145.33

    V. Increase in cash and cash equivalents -21,916,516.77 -20,614,392.46 113,350,209.60 102,601,549.01

    Add : Cash and cash equivalents at

    year-begin 1,036,582,265.88 927,931,735.27 927,868,735.28 886,298,530.33

    VI. Cash and cash equivalents at the end of

    the year 1,014,665,749.11 907,317,342.81 1,041,218,944.88 988,900,079.34

    Person in charge of the Company: Zhong Xincai

    Person in charge of accounting affairs: Zhong Xincai

    Person in charge of accounting firm: Wang Shuqiong

    4.4 Auditor’s report

    Auditor’s opinion: un-audited

    Board of Directors of

    Foshan Electrical and Lighting Co., Ltd.

    27 Apr. 2010