Foshan Electrical and Lighting Co., Ltd
Report for the Third Quarter of 2011
§1 Important Notice
1.1 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.
1.2 The Financial Report for this third quarter has not been audited by an accounting
firm.
1.3 Zhong Xincai, Company Principal and chief of the accounting work, and Wang
Shuqiong, person in charge of the accounting organ, hereby confirm that the financial
report enclosed in this report is true and complete.
§2 Company Profile
2.1 Main accounting data and financial indices
Unit: EMB Yuan
30 Sept. 2011 31 Dec. 2010 Increase/decrease (%)
Total assets (Yuan) 3,169,114,420.10 3,128,547,460.46 1.30%
Owner’s equity attributable to shareholders of
2,719,205,325.24 2,766,913,027.29 -1.72%
listed company (Yuan)
Share capital (Share) 978,563,745.00 978,563,745.00 0.00%
Net assets per share attributable to
2.78 2.83 -1.77%
shareholders of listed company (Yuan/share)
Increase/decrease Increase/decrease
Jul.-Sept. 2011 Jan.-Sept. 2011
year-on-year (%) year-on-year (%)
Gross revenues (Yuan) 627,892,452.32 26.21% 1,723,211,755.56 30.36%
Net profit attributable to shareholders of listed
100,718,418.62 22.70% 218,585,875.90 34.18%
company (Yuan)
Net cash flow arising from operating activities
- - 83,592,769.78 9.62%
(Yuan)
Net cash flow per share arising from operating
- - 0.09 9.62%
activities (Yuan/share)
1
Basic earnings per share (Yuan/share) 0.10 25.00% 0.22 29.41%
Diluted earnings per share (Yuan/share) 0.10 25.00% 0.22 29.41%
Weighted average return on equity (%) 3.70% 0.74% 8.04% 36.54%
Weighted average return on equity after
3.75% 0.09% 8.21% 38.16%
deducting non-recurring gains and losses (%)
Non-recurring gains and losses
√Applicable □Inapplicable
Unit: RMB Yuan
Notes (if
Items of non-recurring gains and losses Amount
applicable)
Gains and losses from disposal of non-current assets -5,220,229.28
Government subsidies recorded into current gains and losses,
excluding those which are closely related to the Company’s normal
710,499.98
business and are granted to the Company at fixed amounts or
proportions according to certain standards and state policies
Capital occupation fees received from non-financial enterprises which
246,474.41
are recorded into current gains and losses
Gains and losses from changes in fair value due to transactional
financial assets and liabilities, and investment income from disposal of
transactional financial assets, transactional financial liabilities and 461,621.82
financial assets available for sale, excluding valid hedging related to
routine operation of the Company
Other non-operating income and expense except the aforesaid items -1,687,141.58
Income tax effects 863,205.95
Other gains and losses which meet the definition of non-current gains
-63,525.68
and losses
Total -4,689,094.38
2.2 Total number of shareholders at the end of the reporting period and shares
held by the top ten shareholders with shares not subject to trading moratorium
Unit: share
Total number of shareholders at the period-end 155,608
The top ten shareholders holding shares not subject to trading moratorium
Number of shares not subject to trading
Full name of shareholders Type of share
moratorium held at the period-end
Prosperity Lamps and Components Ltd._ 102,751,648 RMB ordinary share
DBS VICKERS (HONG KONG) LTD A/C
13,415,143 Domestically listed foreign share
CLIENTS_
Taifook Securities Company Limited-Account
10,906,212 Domestically listed foreign share
Client_
2
EAST ASIA SECURITIES COMPANY
9,527,080 Domestically listed foreign share
LIMITED_
Zhuang Jianyi_ 8,404,132 Domestically listed foreign share
Bank of China-E Fund SSE 100 Transaction
7,978,793 RMB ordinary share
Open-ended Index Fund_
Bank of China-First-Trust Goodquality Life
6,450,000 RMB ordinary share
Stock Fund_
ICBC-Rongtong SSE 100 Index Fund_ 5,826,954 RMB ordinary share
Guangzhou Prosperity Lamps and Components
4,911,140 RMB ordinary share
Trading Co., Ltd. _
National Social Security Fund-Portfolio 601_ 3,567,299 RMB ordinary share
§3 Significant Events
3.1 Significant changes in major accounting data, financial highlights and
reasons for these changes
√Applicable □Inapplicable
1. Transactional financial assets decreased 88.74% from the year-begin, which was
mainly because this year, the Company has called back some transactional financial
assets of the end of last year.
2. Prepayments increased 342.05% from the year-begin, which was mainly because
prepayments for materials rose this year.
3. Other receivables decreased 69.18% from the year-begin, which was mainly
because receivables of last year were settled this year.
4. Inventory increased 47.85% from the year-begin, which was mainly because the
value of material stocks and finished products increased.
5. Accounts payable increased 48.73% from the year-begin, which was mainly
because payables for materials increased.
6. Operating revenue from the year-begin to the period-end increased 30.36% on a
year-on-year basis, which was mainly due to the increased main operating revenue
this year.
7. Selling expense from the year-begin to the period-end increased 47.49% on a
year-on-year basis, which was mainly due to more input for advertising, etc. this year.
8. Tax and fare rebates received increased 451.66% on a year-on-year basis, which
was mainly because the Company received more export tax rebates this year.
9. Cash received from returns on investments increased 213.11% on a year-on-year
basis, which was mainly due to the gains on selling securities investments this year.
3.2 The progress of significant events and its influence, as well as the analysis and
explanation on solutions
3.2.1 About non-standard audit opinion
□Applicable √Inapplicable
3
3.2.2 The Company offers capital to the controlling shareholder or its related
parties or provides external guarantees in violation of the prescribed procedures.
□Applicable √Inapplicable
3.2.3 Signing and execution of significant contracts concerning routine operation
□Applicable √Inapplicable
3.2.4 Others
□Applicable √Inapplicable
3.3 Commitments made by the Company, shareholders and the actual controller
Commitments made by the Company, its directors, supervisors, senior executives,
shareholders with an over 5% shareholding, actual controller and other stakeholders
during the reporting period, or such commitments carried down into the reporting
period:
□Applicable √Inapplicable
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 reporting 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
3.5.1 Securities investment
√Applicable □Inapplicable
Unit: RMB Yuan
Proportion in
Number of the total
Initial Profits or
Serial Short form shares held at Book value at securities
Securities investment losses in the
numbe Securities variety of the the period-end investment at
code amount reporting
r securities period-end (RMB) the
(RMB) period
(share) period-end
(%)
Other securities investment held at the period-end 5,000,000.00 - 4,281,660.50 100.00% 0.00
Profits or losses from securities sold in the reporting
- - - - 1,123,051.10
period
Total 5,000,000.00 - 4,281,660.50 100% 1,123,051.10
Explanation on securities investments:
Other securities investments were wealth management products bought from
securities traders, which was reviewed and approved at the board session held on 25
Nov. 2010. The purchase of the said products was in strict compliance with the
Management Rules for Securities Investment of the Company.
3.5.2 Researches, interviews and visits received in the reporting period
The Company received no field researches, phone calls or written inquiries from
4
investors.
3.6 Investment of financial derivatives
□Applicable √Inapplicable
3.6.1 Financial derivatives held at the end of the reporting period
□Applicable √Inapplicable
§4 Attachments
4.1 Balance Sheet
Prepared by: Foshan Electrical and Lighting Co., Ltd. 30 Sept. 2011 Unit: (RMB) Yuan
Amount at the period-end Amount at the year-begin
Items
Consolidation The Company Consolidation The Company
Current Assets:
Monetary funds 525,557,066.13 255,242,507.39 711,853,632.95 681,198,634.58
Settlement reserves
Intra-group lendings
Transactional financial assets 4,311,449.25 4,311,449.25 38,287,211.70 5,097,211.70
Notes receivable 99,022,314.17 96,122,314.17 79,964,518.10 74,911,048.10
Accounts receivable 349,290,994.42 372,539,140.18 317,185,505.67 332,564,283.12
Accounts paid in advance 129,819,554.12 109,844,955.70 29,367,891.60 18,230,151.84
Premiums receivable
Reinsurance premiums
receivable
Receivable reinsurance contract
reserves
Interest receivable
Dividend receivable 7,018,946.03 7,228,228.30
Other accounts receivable 6,241,345.55 55,179,878.76 20,254,086.70 62,118,207.87
Financial assets purchased
under agreements to resell
Inventories 540,278,694.95 481,064,619.51 365,413,882.78 339,343,349.75
Non-current assets due within 1
year
Other current assets
Total current assets 1,654,521,418.59 1,381,323,810.99 1,562,326,729.50 1,520,691,115.26
Non-current assets:
Loans by mandate and
5
advances granted
Available-for-sale financial
69,462,965.60 69,462,965.60 95,740,001.28 95,740,001.28
assets
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investment 453,634,733.18 819,112,093.18 443,373,689.60 598,850,689.60
Investing property
Fixed assets 633,423,320.07 540,246,659.32 683,122,864.12 591,335,800.42
Construction in progress 120,447,069.95 72,556,762.21 100,914,324.93 72,198,935.48
Engineering materials
Disposal of fixed assets
Production biological assets
Oil-gas assets
Intangible assets 215,657,401.93 197,923,614.81 220,607,352.76 202,020,835.92
R&D expense
Goodwill
Long-term deferred expenses
Deferred income tax assets 21,967,510.78 21,828,222.79 22,462,498.27 22,323,210.28
Other non-current assets
Total of non-current assets 1,514,593,001.51 1,721,130,317.91 1,566,220,730.96 1,582,469,472.98
Total assets 3,169,114,420.10 3,102,454,128.90 3,128,547,460.46 3,103,160,588.24
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Customer bank deposits and
due to banks and other financial
institutions
Intra-group borrowings
Transactional financial
liabilities
Notes payable
Accounts payable 286,472,445.54 296,003,270.02 192,615,874.39 214,720,055.92
Accounts received in advance 18,833,502.59 27,298,587.63 22,598,645.79 37,156,710.99
Financial assets sold for
repurchase
6
Handling charges and
commissions payable
Employee’s compensation
42,072,896.53 42,119,291.53 54,092,566.23 53,759,277.53
payable
Tax payable -6,415,517.55 -8,846,971.14 -5,013,034.54 -3,412,797.35
Interest payable
Dividend payable
Other accounts payable 37,585,562.93 37,093,453.82 30,383,813.76 28,785,087.45
Reinsurance premiums payable
Insurance contract reserves
Payables for acting trading of
securities
Payables for acting
underwriting of securities
Non-current liabilities due
within 1 year
Other current liabilities
Total current liabilities 378,548,890.04 393,667,631.86 294,677,865.63 331,008,334.54
Non-current liabilities:
Long-term borrowings
Bonds payable
Long-term payables
Specific payables
Estimated liabilities
Deferred income tax liabilities 5,915,623.37 5,915,623.37 9,736,677.79 9,736,677.79
Other non-current liabilities 17,784,274.99 10,429,691.68 11,951,441.65 10,556,441.65
Total non-current liabilities 23,699,898.36 16,345,315.05 21,688,119.44 20,293,119.44
Total liabilities 402,248,788.40 410,012,946.91 316,365,985.07 351,301,453.98
Owners’ equity (or shareholders’
equity)
Paid-up capital (or share
978,563,745.00 978,563,745.00 978,563,745.00 978,563,745.00
capital)
Capital reserves 623,594,132.83 620,493,305.89 645,246,774.53 642,145,947.59
Less: Treasury stock
Specific reserves
Surplus reserves 555,433,925.97 555,433,925.97 555,433,925.97 555,433,925.97
7
Provisions for general risks
Retained profits 561,613,521.44 537,950,205.13 587,668,581.79 575,715,515.70
Foreign exchange difference
Total equity attributable to owners
2,719,205,325.24 2,692,441,181.99 2,766,913,027.29 2,751,859,134.26
of the Company
Minority interests 47,660,306.46 45,268,448.10
Total owners’ equity 2,766,865,631.70 2,692,441,181.99 2,812,181,475.39 2,751,859,134.26
Total liabilities and owners’
3,169,114,420.10 3,102,454,128.90 3,128,547,460.46 3,103,160,588.24
equity
4.2 Income statement as of the reporting period
Prepared by: Foshan Electrical and Lighting Co., Ltd. Jul-Sept. 2011 Unit: (RMB) Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 627,892,452.32 576,634,602.55 497,501,586.99 476,580,967.30
Including: Sales income 627,892,452.32 576,634,602.55 497,501,586.99 476,580,967.30
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 508,779,562.46 467,190,622.64 387,510,579.67 382,565,765.27
Including: Cost of sales 436,962,860.64 401,265,258.52 337,731,634.39 341,508,682.97
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
7,092,028.07 6,426,441.16 4,901,702.39 4,473,063.69
charges
Selling and distribution
28,549,292.01 27,279,976.30 15,457,890.77 12,966,308.14
expenses
8
Administrative expenses 37,708,787.99 32,633,033.25 25,102,166.36 22,994,609.61
Financial expenses -1,496,564.27 -1,116,748.02 -99,024.61 65,201.57
Asset impairment loss -36,841.98 702,661.43 4,416,210.37 557,899.29
Add: Gain/(loss) from change in
-512,886.83 -512,886.83
fair value (“-” means loss)
Gain/(loss) from investment
34,079.46 34,378.27 987,024.98 21,797,885.39
(“-” means loss)
Including: share of profits in
associates and joint ventures
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
118,634,082.49 108,965,471.35 110,978,032.30 115,813,087.42
loss)
Add: non-operating income 1,224,801.40 887,788.32 535,944.55 501,440.36
Less: non-operating expense 3,157,125.83 3,151,820.27 1,589,607.87 1,487,964.71
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) 116,701,758.06 106,701,439.40 109,924,368.98 114,826,563.07
Less: Income tax expense 14,552,879.42 12,998,131.22 25,409,138.31 22,866,950.95
V. Net profit (“-” means loss) 102,148,878.64 93,703,308.18 84,515,230.67 91,959,612.12
Attributable to owners of the
100,718,418.62 93,703,308.18 82,085,840.73 91,959,612.12
Company
Minority shareholders’
1,430,460.02 2,429,389.94
income
VI. Earnings per share
(I) Basic earnings per share 0.10 0.08
(II) Diluted earnings per
0.10 0.08
share
Ⅶ. Other comprehensive incomes -14,813,916.82
Ⅷ. Total comprehensive incomes 87,334,961.82 93,703,308.18 84,515,230.67 91,959,612.12
Attributable to owners of the
85,904,501.80 93,703,308.18 82,085,840.73 91,959,612.12
Company
Attributable to minority
1,430,460.02 2,429,389.94
shareholders
Where there were business combinations under the same control in the reporting
period, the combined parties achieved net profits of RMB 0.00 before the
combinations.
9
4.3 Income statement for the period from the year-begin to the end of the reporting
period
Prepared by: Foshan Electrical and Lighting Co., Ltd. Jan.-Sept. 2011 Unit: (RMB) Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Total operating revenues 1,723,211,755.56 1,659,544,072.24 1,321,861,931.64 1,229,733,591.57
Including: Sales income 1,723,211,755.56 1,659,544,072.24 1,321,861,931.64 1,229,733,591.57
Interest income
Premium income
Handling charge and
commission income
II. Total operating cost 1,453,355,156.29 1,420,082,714.88 1,111,657,257.68 1,038,308,200.13
Including: Cost of sales 1,258,079,060.65 1,241,626,754.87 963,201,948.60 912,988,263.07
Interest expenses
Handling charge and
commission expenses
Surrenders
Net claims paid
Net amount withdrawn for
the insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
Taxes and associate
18,952,606.58 16,590,921.51 12,130,056.38 10,881,094.51
charges
Selling and distribution
80,659,397.62 77,025,816.81 54,689,508.27 47,124,234.05
expenses
Administrative expenses 96,899,961.50 85,036,256.39 80,961,297.56 65,433,773.76
Financial expenses -2,550,215.87 -1,701,445.24 -3,556,351.01 -2,944,096.32
Asset impairment loss 1,314,345.81 1,504,410.54 4,230,797.88 4,824,931.06
Add: Gain/(loss) from change in
-675,462.45 -675,462.45
fair value (“-” means loss)
Gain/(loss) from investment
1,085,250.10 9,054,494.93 1,165,143.08 26,674,756.40
(“-” means loss)
Including: share of profits in
associates and joint ventures
10
Foreign exchange gains (“-”
means loss)
III. Business profit (“-” means
270,266,386.92 247,840,389.84 211,369,817.04 218,100,147.84
loss)
Add: non-operating income 2,825,159.90 2,367,496.75 2,067,585.06 1,732,763.67
Less: non-operating expense 9,022,030.78 8,231,932.20 4,119,323.03 4,012,679.87
Including: loss from non-current
asset disposal
IV. Total profit (“-” means loss) 264,069,516.04 241,975,954.39 209,318,079.07 215,820,231.64
Less: Income tax expense 39,698,427.90 35,100,328.71 43,468,064.73 38,509,905.88
V. Net profit (“-” means loss) 224,371,088.14 206,875,625.68 165,850,014.34 177,310,325.76
Attributable to owners of the
218,585,875.90 206,875,625.68 162,903,608.69 177,310,325.76
Company
Minority shareholders’
5,785,212.24 2,946,405.65
income
VI. Earnings per share
(I) Basic earnings per share 0.22 0.17
(II) Diluted earnings per
0.22 0.17
share
Ⅶ. Other comprehensive incomes -27,349,571.03
Ⅷ. Total comprehensive incomes 197,021,517.11 206,875,625.68 165,850,014.34 177,310,325.76
Attributable to owners of the
191,236,304.87 206,875,625.68 162,903,608.69 177,310,325.76
Company
Attributable to minority
5,785,212.24 2,946,405.65
shareholders
Where there were business combinations under the same control from the year-begin
to the period-end, the combined parties achieved net profits of RMB 0.00 before the
combinations.
4.4 Cash flow statement for the period from the year-begin to the end of the
reporting period
Prepared by: Foshan Electrical and Lighting Co., Ltd. Jan.-Sept. 2011 Unit: (RMB) Yuan
Reporting period Same period of last year
Items
Consolidation The Company Consolidation The Company
I. Cash flows from operating
activities:
Cash received from sale of 1,730,626,728.25 1,692,377,076.38 1,416,879,115.86 1,215,343,563.86
11
commodities and rendering of
service
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 deposits 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 intra-group
borrowings
Net increase of funds in
repurchase business
Tax refunds received 51,675,517.34 51,427,532.15 9,367,323.31 9,092,042.85
Other cash received relating to
10,949,778.65 13,391,223.34 14,326,753.20 13,409,765.55
operating activities
Subtotal of cash inflows from
1,793,252,024.24 1,757,195,831.87 1,440,573,192.37 1,237,845,372.26
operating activities
Cash paid for goods and
1,268,643,798.28 1,307,128,399.98 990,134,771.20 830,383,609.67
services
Net increase of customer
lendings and advances
Net increase of funds deposited
in the central bank and amount
due from banks
Cash for paying claims of the
original insurance contracts
Cash for paying interest,
12
handling charges and
commissions
Cash for paying policy
dividends
Cash paid to and for employees 227,507,691.76 192,640,404.70 198,592,313.80 170,875,205.56
Various taxes paid 127,899,189.76 105,737,185.67 122,680,792.96 106,048,191.07
Other cash payment relating to
85,608,574.66 91,096,499.73 52,910,225.13 48,712,411.65
operating activities
Subtotal of cash outflows from
1,709,659,254.46 1,696,602,490.08 1,364,318,103.09 1,156,019,417.95
operating activities
Net cash flows from operating
83,592,769.78 60,593,341.79 76,255,089.28 81,825,954.31
activities
II. Cash flows from investing
activities:
Cash received from investment
34,200,139.56 1,010,139.56 1,193,874.04 1,193,874.04
retractions
Cash received from returns on
3,534,506.52 3,534,506.52 1,128,844.04 6,298,547.52
investments
Net cash received from disposal
of fixed assets, intangible assets
and other long-term assets
Net cash received from disposal
of subsidiaries or other business
units
Other cash received relating
to investing activities
Subtotal of cash inflows
37,734,646.08 4,544,646.08 2,322,718.08 7,492,421.56
from investing activities
Cash paid to acquire fixed
assets, intangible assets and other 46,784,060.17 23,905,044.72 44,262,972.72 33,837,918.73
long-term assets
Cash paid for investment 13,806,800.00 223,806,800.00 169,805,265.00 169,805,265.00
Net increase of pledged loans
Net cash paid to acquire
subsidiaries and other business
units
Other cash payments relating to
investing activities
13
Subtotal of cash outflows from
60,590,860.17 247,711,844.72 214,068,237.72 203,643,183.73
investing activities
Net cash flows from investing
-22,856,214.09 -243,167,198.64 -211,745,519.64 -196,150,762.17
activities
III. Cash flows from financing
activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments
by subsidiaries
Cash received from
borrowings
Cash received from issuance
of bonds
Other cash received relating to
financing activities
Subtotal of cash inflows from
financing activities
Repayment of borrowings
Cash paid for interest
expenses and distribution of 247,859,202.46 244,442,619.88 203,059,995.03 201,781,832.57
dividends or profit
Including: dividends or profit
paid by subsidiaries to minority
shareholders
Other cash payments relating
to financing activities
Sub-total of cash outflows from
247,859,202.46 244,442,619.88 203,059,995.03 201,781,832.57
financing activities
Net cash flows from financing
-247,859,202.46 -244,442,619.88 -203,059,995.03 -201,781,832.57
activities
IV. Effect of foreign exchange
rate changes on cash and cash 1,054,308.25 1,060,349.54 -1,842,384.69 -1,839,498.76
equivalents
V. Net increase in cash and cash
-186,068,338.52 -425,956,127.19 -340,392,810.08 -317,946,139.19
equivalents
Add: Opening balance of
711,625,404.65 681,198,634.58 1,036,582,265.88 927,931,735.27
cash and cash equivalents
14
VI. Closing balance of cash and
525,557,066.13 255,242,507.39 696,189,455.80 609,985,596.08
cash equivalents
4.5 Audit report
Auditor’s opinion: un-audited
15
