Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 FOSHAN ELECTRICAL AND LIGHTING CO., LTD. FIRST QUARTER REPORT 2017 April 2017 1 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Section I Important Statements The board of directors (the “Board”), the supervisory board (the “Supervisory Board”), as well as the directors, supervisors and senior executive officers of Foshan Electrical and Lighting Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any false representation, misleading statements or material omissions in this Report. All directors attended the board meeting for the review of this Report. He Yong, head of the Company, Liu Xingming, accounting head for this Report, and Tang Qionglan, head of the accounting department (head of accounting), hereby guarantee that the financial statements carried in this Report are factual, accurate and complete. 2 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Section II Key Financial Results and Shareholders’ Profile I Key financial results Indicate by tick mark whether the Company retroactively restated any of its accounting data due to changes of accounting policies or correction of accounting errors. □ Yes √ No January-March 2017 January-March 2016 +/-% Operating revenues (RMB) 1,093,649,938.81 904,310,757.83 20.94% Net profit attributable to 119,874,574.94 107,776,865.30 11.22% shareholders of the Company (RMB) Net profit attributable to shareholders of the Company before 119,491,016.83 107,348,727.74 11.31% exceptional profit and loss (RMB) Net cash flows from operating -50,923,130.47 186,104,091.50 -127.36% activities (RMB) Basic earnings per share 0.0942 0.0847 11.22% (RMB/share) Diluted earnings per share 0.0942 0.0847 11.22% (RMB/share) Weighted average return on equity 2.36% 2.12% 0.24% (%) March 31, 2017 December 31, 2016 +/-% Total assets (RMB) 6,239,727,776.53 6,100,169,400.30 2.29% Net assets attributable to 5,188,960,827.09 4,990,466,577.12 3.98% shareholders of the Company (RMB) Exceptional profit/loss √ Applicable □ Not applicable Unit: RMB Item January-March 2017 Note Profit/loss on disposal of non-current assets (including -749,629.80 offset asset impairment provisions) Government subsidies charged to the profit/loss for this Reporting Period (except for the government grants closely related to the business of the Company and 546,259.98 given at a fixed quota or amount in accordance with the State’s uniform standards) 3 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Non-operating income and expense other than the above 639,662.92 Less: Corporate income tax 53,451.07 Minority interests (after tax) -716.08 Total 383,558.11 -- Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the said explanatory announcement to recurrent profit/loss □ Applicable √ Not applicable No such cases in this Reporting Period. II Total number of shareholders at the period-end and their shareholdings 1. Numbers of common shareholders and preference shareholders with resumed voting rights, as well as shareholdings of top ten shareholders Unit: share Total number of preference Total number of common shareholders with resumed 90,510 0 shareholders at the period-end voting rights at the period-end (if any) Top ten shareholders Number of Pledged or frozen shares Name of Nature of Shareholding Total shares held restricted shares shareholder shareholder percentage (%) at the period-end Status Number held Hong Kong Wah Shing Holding Foreign 13.47% 171,360,391 Pledged 83,966,592 Company corporation Limited Prosperity Lamps Foreign & Components 10.50% 133,577,143 corporation Limited Shenzhen Rising Investment State-owned 5.12% 65,178,305 Development corporation Co., Ltd. Guangdong Electronics State-owned Information 4.74% 60,357,728 Pledged 29,575,287 corporation Industry Group Ltd. 4 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Central Huijin Asset State-owned 2.42% 30,799,000 Management Co., corporation Ltd. Yunan International Trust Co., Other 1.91% 24,308,990 Ltd.-Heshun No. 6 Assembled Funds Trust Plan Essence International Foreign 1.91% 24,266,429 Securities (Hong corporation Kong) Co., Ltd. DBS Vickers Foreign (Hong Kong) Ltd 1.86% 23,645,755 corporation A/C Clients Hong Kong Rising Foreign Investment 1.82% 23,165,684 corporation Development Co., Ltd. Foreign Zhuang Jianyi 0.85% 10,821,372 8,116,029 individual Top ten non-restricted shareholders Type of shares Name of shareholder Number of non-restricted shares held at the period-end Type Number Hong Kong Wah Shing Holding RMB common 171,360,391 171,360,391 Company Limited share Prosperity Lamps & Components RMB common 133,577,143 133,577,143 Limited share Shenzhen Rising Investment RMB common 65,178,305 65,178,305 Development Co., Ltd. share Guangdong Electronics Information RMB common 60,357,728 60,357,728 Industry Group Ltd. share Central Huijin Asset Management RMB common 30,799,000 30,799,000 Co., Ltd. share Yunan International Trust Co., RMB common 24,308,990 24,308,990 Ltd.-Heshun No. 6 Assembled Funds share 5 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Trust Plan Domestically Essence International Securities 24,266,429 listed foreign 24,266,429 (Hong Kong) Co., Ltd. share Domestically DBS Vickers (Hong Kong) Ltd A/C 23,645,755 listed foreign 23,645,755 Clients share Domestically Hong Kong Rising Investment 23,165,684 listed foreign 23,165,684 Development Co., Ltd. share Domestically China Merchants Securities (HK) 10,589,256 listed foreign 10,589,256 Co., Limited share Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited, Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information Industry Group Ltd. and Hong Kong Rising Investment Development Co., Ltd. are Related or acting-in-concert parties acting-in-concert parties; and Prosperity Lamps & Components Limited and Zhuang Jianyi among the shareholders above are acting-in-concert parties. Apart from that, it is unknown whether there is among the top 10 shareholders any other related parties or acting-in-concert parties as defined in the Administrative Measures for the Acquisition of Listed Companies. Top ten common shareholders conducting securities margin trading N/A (if any) Indicate by tick mark whether any of the top ten common shareholders or the top ten non-restricted common shareholders of the Company conducted any promissory repo during this Reporting Period. □ Yea √ No No such cases in this Reporting Period. 2. Total number of preference shareholders and shareholdings of the top ten of them □ Applicable √ Not applicable 6 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Section III Significant Events I Changes in the key financial results of this Reporting Period, as well as the reasons for such changes √ Applicable □ Not applicable Unit: RMB March 31, December 31, 2016/ Statement item 2017/January-March +/-% Reason for change January-March 2016 2017 Accounts receivable 811,126,367.75 595,257,954.00 36.26% Increased operating revenues Increased income receivable from undue Interest receivable 6,726,391.09 4,612,406.80 45.83% bank’s wealth management products Other accounts 16,077,582.68 11,977,660.58 34.23% Increase in performance bonds paid receivable Year-end bonuses for last year were paid Payroll payable 66,821,140.57 96,021,156.06 -30.41% in the Current Period In the fourth quarter of last year, the income from the sale of Guoxuan Taxes and fares payable 34,756,373.76 138,282,644.72 -74.87% High-tech shares resulted in an increase in the corporate income tax payable, which was paid in the Current Period Dividends payable 0.00 6,287,923.09 -100.00% Payout of dividends by subsidiaries The charges for vehicle and vessel use and so on were included in the taxes and Taxes and surtaxes 9,755,058.67 4,841,999.66 101.47% surtaxes from May 1, 2016 as per the accounting and taxation regulatory document [2016] No. 22 Increase in transportation expenses and Selling expenses 38,400,329.73 27,744,850.71 38.41% other selling expenses due to increased sales 7 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Finance cost -5,743,864.20 -3,553,912.01 -61.62% Increased interest income Asset impairment loss 22,650,361.26 11,137,926.24 103.36% Inventory falling price provisions Increased income from bank’s wealth Investment income 2,646,308.80 -106,841.26 2576.86% management Minority shareholders’ 1,930,823.27 -378,242.41 610.47% Earnings of new subsidiaries income Other comprehensive Increased fair value of available-for-sale 78,619,675.02 -30,685,157.22 356.21% income net of tax financial assets Total comprehensive Increased net profit and fair value of 200,425,073.23 76,713,465.67 161.26% income available-for-sale financial assets Total comprehensive Increased total comprehensive income income attributable to 198,494,249.96 77,091,708.08 157.48% owners of the Company Considerable increase in material Net cash flows from -50,923,130.47 186,104,091.50 -127.36% procurement and corporate income tax due operating activities to business growth The Company has ceased its securities investment since April 2016 and Net cash flows from -29,321,560.03 -124,290,416.89 76.41% recovered the amount invested in bank’s investing activities wealth management products in the Current Period Net cash flows from -5,660,290.78 0.00 / Payout of dividends by subsidiaries financing activities II Progress of significant events and their influence and solutions √ Applicable □ Not applicable Summary of significant event Disclosure date Disclosure website On January 19, 2017, the Proposal on Transfer of Equity Interests of Qinghai 01/20/2017 www.cninfo.com.cn Fozhao Lithium Energy Exploitation Co., Ltd. 8 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 was considered and approved at the 12th meeting of the 8th Board. As such, the Board has agreed to transfer its 38% stake in Qinghai Fozhao to a potential buyer for RMB189.8176 million. The success of the said transaction still depends on the potential buyer’s execution results of its decision-making and approval procedure. Therefore, it is very uncertain whether this transaction can be successfully concluded or not. III Overdue commitments of the Company’s actual controller, shareholders, related parties and acquirer, as well as the Company and other commitment makers in this Reporting Period or ongoing at the period-end □ Applicable √ Not applicable No such cases in this Reporting Period. IV Operating result forecast for January-June 2017 Warning of a forecast deficit or considerable YoY change in the accumulative net profit made during the period from the beginning of the year to the end of the next reporting period, as well as explanation of why: □ Applicable √ Not applicable V Securities investments □ Applicable √ Not applicable No such cases in the Reporting Period. VI Investments in derivative financial instruments □ Applicable √ Not applicable No such cases in the Reporting Period. VII Visits paid to the Company in the Reporting Period for purposes of research, communication, interview, etc. √ Applicable □ Not applicable Date of visit Way of visit Type of visitor Main inquiry information See Easy IR-Investor Relations on 02/16/2017 One-on-one meeting Institution www.cninfo.com.cn 9 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 VIII Illegal provision of guarantees for external parties □ Applicable √ Not applicable No such cases in the Reporting Period. IX Occupation of the Company’s funds by the controlling shareholder or its related parties for non-operating purposes □ Applicable √ Not applicable No such cases in the Reporting Period. 10 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Section IV Financial Statements I Financial statements 1. Consolidated balance sheet Prepared by Foshan Electrical and Lighting Co., Ltd. March 31, 2017 Unit: RMB Item Closing balance Opening balance Current assets: Monetary funds 1,393,827,082.88 1,479,283,642.54 Settlement reserve Interbank lendings Financial assets at fair value through profit/loss Derivative financial assets Notes receivable 48,473,852.00 67,925,843.74 Accounts receivable 811,126,367.75 595,257,954.00 Accounts paid in advance 35,777,618.94 30,292,007.11 Premiums receivable Reinsurance premiums receivable Receivable reinsurance contract reserve Interest receivable 6,726,391.09 4,612,406.80 Dividends receivable Other accounts receivable 16,077,582.68 11,977,660.58 Financial assets purchased under agreements to resell Inventories 676,437,700.82 753,681,605.19 Assets held for sale Non-current assets due within one year Other current assets 432,782,210.54 441,205,461.72 Total current assets 3,421,228,806.70 3,384,236,581.68 Non-current assets: 11 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Loans and advances to customers Available-for-sale financial assets 1,824,394,592.21 1,732,150,857.01 Held-to-maturity investments Long-term accounts receivable Long-term equity investments 208,317,481.49 210,394,932.69 Investment property Fixed assets 446,158,295.04 446,006,929.66 Construction in progress 88,525,487.88 71,479,325.91 Engineering materials Disposal of fixed assets Productive living assets Oil-gas assets Intangible assets 159,251,490.70 160,330,395.13 R&D expenses Goodwill Long-term deferred expenses 6,096,713.09 6,897,119.78 Deferred tax assets 41,535,629.42 43,547,918.44 Other non-current assets 44,219,280.00 45,125,340.00 Total non-current assets 2,818,498,969.83 2,715,932,818.62 Total assets 6,239,727,776.53 6,100,169,400.30 Current liabilities: Short-term borrowings Borrowings from the Central Bank Money deposits accepted and inter-bank deposits Interbank borrowings Financial liabilities at fair value through profit/loss Derivative financial liabilities Notes payable Accounts payable 624,304,073.74 552,255,512.33 Accounts received in advance 45,363,524.40 41,180,818.13 Financial assets sold for repurchase Fees and commissions payable Payroll payable 66,821,140.57 96,021,156.06 12 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Taxes payable 34,756,373.76 138,282,644.72 Interest payable Dividends payable 6,287,923.09 Other accounts payable 36,685,273.36 50,104,338.81 Reinsurance premiums payable Insurance contract reserve Payables for acting trading of securities Payables for acting underwriting of securities Liabilities held for sale Non-current liabilities due within one year Other current liabilities Total current liabilities 807,930,385.83 884,132,393.14 Non-current liabilities: Long-term borrowings Bonds payable Of which: Preference shares Perpetual bonds Long-term accounts payable Long-term payroll payable Special payables Provisions Deferred income 11,911,018.51 10,449,768.49 Deferred tax liabilities 213,986,655.40 200,112,595.11 Other non-current liabilities Total non-current liabilities 225,897,673.91 210,562,363.60 Total liabilities 1,033,828,059.74 1,094,694,756.74 Owners’ equity: Share capital 1,272,132,868.00 1,272,132,868.00 Other equity instruments Of which: Preference shares Perpetual bonds Capital reserve 285,821,459.07 285,821,459.07 13 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Less: Treasury shares Other comprehensive income 1,212,591,047.27 1,133,971,372.25 Special reserve Surplus reserve 733,924,951.81 733,924,951.81 Provisions for general risks Retained earnings 1,684,490,500.94 1,564,615,925.99 Equity attributable to owners of the 5,188,960,827.09 4,990,466,577.12 Company Minority interests 16,938,889.70 15,008,066.44 Total owners’ equity 5,205,899,716.79 5,005,474,643.56 Total liabilities and owners’ equity 6,239,727,776.53 6,100,169,400.30 Legal representative: He Yong Accounting head for this Report: Liu Xingming Head of the accounting department: Tang Qionglan 2. Balance sheet of the Company Unit: RMB Item Closing balance Opening balance Current assets: Monetary funds 1,131,036,357.36 1,235,417,964.88 Financial assets at fair value through profit/loss Derivative financial assets Notes receivable 46,492,698.33 66,222,840.44 Accounts receivable 827,241,447.26 611,855,496.90 Accounts paid in advance 99,148,172.32 117,217,953.23 Interest receivable 5,576,877.20 3,590,629.01 Dividends receivable 14,671,820.57 Other accounts receivable 73,969,687.47 56,714,849.84 Inventories 626,573,651.25 717,097,516.25 Assets held for sale Non-current assets due within one year Other current assets 372,266,177.91 379,932,325.87 Total current assets 3,182,305,069.10 3,202,721,396.99 Non-current assets: Available-for-sale financial assets 1,824,394,592.21 1,732,150,857.01 14 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Held-to-maturity investments Long-term accounts receivable Long-term equity investments 691,914,771.25 693,992,222.45 Investment property Fixed assets 371,222,819.47 375,075,102.44 Construction in progress 85,852,715.45 69,589,510.14 Engineering materials Disposal of fixed assets Productive living assets Oil-gas assets Intangible assets 115,826,159.16 117,017,633.92 R&D expenses Goodwill Long-term deferred expenses 6,096,713.09 6,897,119.78 Deferred tax assets 35,795,534.18 37,790,043.38 Other non-current assets 43,812,480.00 44,519,790.00 Total non-current assets 3,174,915,784.81 3,077,032,279.12 Total assets 6,357,220,853.91 6,279,753,676.11 Current liabilities: Short-term borrowings Financial liabilities at fair value through profit/loss Derivative financial liabilities Notes payable Accounts payable 762,976,559.10 701,814,818.26 Accounts received in advance 43,977,440.53 38,406,798.91 Payroll payable 34,902,154.82 66,764,581.34 Taxes payable 23,848,519.90 121,939,572.62 Interest payable Dividends payable Other accounts payable 196,228,019.07 258,368,416.59 Liabilities held for sale Non-current liabilities due within one year Other current liabilities 15 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Total current liabilities 1,061,932,693.42 1,187,294,187.72 Non-current liabilities: Long-term borrowings Bonds payable Of which: Preference shares Perpetual bonds Long-term payables Long-term payroll payable Special payables Provisions Deferred income 11,484,768.34 9,984,768.34 Deferred tax liabilities 213,986,655.40 200,112,595.11 Other non-current liabilities Total non-current liabilities 225,471,423.74 210,097,363.45 Total liabilities 1,287,404,117.16 1,397,391,551.17 Owners’ equity: Share capital 1,272,132,868.00 1,272,132,868.00 Other equity instruments Of which: Preference shares Perpetual bonds Capital reserve 293,425,065.15 293,425,065.15 Less: Treasury shares Other comprehensive income 1,212,591,047.27 1,133,971,372.25 Special reserve Surplus reserve 733,924,951.81 733,924,951.81 Retained earnings 1,557,742,804.52 1,448,907,867.73 Total owners’ equity 5,069,816,736.75 4,882,362,124.94 Total liabilities and owners’ equity 6,357,220,853.91 6,279,753,676.11 Legal representative: He Yong Accounting head for this Report: Liu Xingming Head of the accounting department: Tang Qionglan 3. Consolidated income statement Unit: RMB Item January-March 2017 January-March 2016 1. Operating revenues 1,093,649,938.81 904,310,757.83 16 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Including: Sales income 1,093,649,938.81 904,310,757.83 Interest income Premium income Fee and commission income 2. Operating costs 951,661,802.26 776,257,794.04 Including: Cost of sales 830,819,079.30 681,520,513.44 Interest expenses Fee and commission expenses Surrenders Net claims paid Net amount provided as insurance contract reserve Expenditure on policy dividends Reinsurance premium Taxes and surtaxes 9,755,058.67 4,841,999.66 Selling expenses 38,400,329.73 27,744,850.71 Administrative expenses 55,780,837.50 54,566,416.00 Finance costs -5,743,864.20 -3,553,912.01 Asset impairment loss 22,650,361.26 11,137,926.24 Add: Profit on fair value changes (“-” means loss) Investment income (“-” means loss) 2,646,308.80 -106,841.26 Including: Share of profit/loss of 2,939.30 associates and joint ventures Exchange gains (“-” means loss) 3. Operating profit (“-” means loss) 144,634,445.35 127,946,122.53 Add: Non-operating income 1,445,858.46 1,187,884.46 Including: Profit on disposal of 0.00 10,852.26 non-current assets Less: Non-operating expense 1,009,565.36 1,239,705.73 Including: Loss on disposal of 749,629.80 50,139.27 non-current assets 4. Total profit (“-” means loss) 145,070,738.45 127,894,301.26 Less: Corporate income tax 23,265,340.24 20,495,678.37 5. Net profit (“-” means loss) 121,805,398.21 107,398,622.89 Net profit attributable to owners of 119,874,574.94 107,776,865.30 the Company 17 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Minority interests’ income 1,930,823.27 -378,242.41 6. Other comprehensive income net of tax 78,619,675.02 -30,685,157.22 Other comprehensive income net of tax attributable to owners of the 78,619,675.02 -30,685,157.22 Company 6.1 Other comprehensive income that will not be reclassified into profit/loss 6.1.1 Changes in net liabilities or assets with a defined benefit plan upon re-measurement 6.1.2 Share of other comprehensive income of investees that cannot be reclassified into profit/loss under the equity method 6.2 Other comprehensive income to be subsequently reclassified into 78,619,675.02 -30,685,157.22 profit/loss 6.2.1 Share of other comprehensive income of investees that will be reclassified into profit/loss under the equity method 6.2.2 Profit/loss on fair value changes of available-for-sale financial 78,619,675.02 -30,685,157.22 assets 6.2.3 Profit/loss on reclassifying held-to-maturity investments into available-for-sale financial assets 6.2.4 Effective profit/loss on cash flow hedges 6.2.5 Currency translation differences 6.2.6 Other Other comprehensive income net of tax attributable to minority interests 7. Total comprehensive income 200,425,073.23 76,713,465.67 Attributable to owners of the 198,494,249.96 77,091,708.08 Company Attributable to minority interests 1,930,823.27 -378,242.41 8. Earnings per share 8.1 Basic earnings per share 0.0942 0.0847 18 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 8.2 Diluted earnings per share 0.0942 0.0847 Where business mergers under the same control occurred in this Reporting Period, the net profit achieved by the merged parties before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB0.00. Legal representative: He Yong Accounting head for this Report: Liu Xingming Head of the accounting department: Tang Qionglan 4. Income statement of the Company Unit: RMB Item January-March 2017 January-March 2016 1. Operating revenues 1,065,186,916.21 916,228,477.71 Less: Operating costs 830,329,549.74 715,477,230.48 Taxes and surtaxes 6,876,291.73 2,844,766.16 Selling expenses 35,427,725.59 27,528,676.46 Administrative expenses 49,721,540.15 44,685,990.61 Finance costs -4,394,600.15 -2,174,344.12 Asset impairment loss 21,943,712.75 11,178,161.37 Add: profit on fair value changes (“-” means loss) Investment income (“-” means 2,202,183.81 -106,841.26 loss) Including: Share of profit/loss of 2,939.30 associates and joint ventures 2. Operating profit (“-” means loss) 127,484,880.21 116,581,155.49 Add: Non-operating income 1,262,962.66 1,041,340.99 Including: Profit on disposal of 0.00 non-current assets Less: Non-operating expense 706,740.75 71,261.90 Including: Loss on disposal of 448,822.74 32,003.23 non-current assets 3. Total profit (“-” means loss) 128,041,102.12 117,551,234.58 Less: Corporate income tax 19,206,165.33 17,626,085.93 4. Net profit (“-” means loss) 108,834,936.79 99,925,148.65 5. Other comprehensive income net of 78,619,675.02 -30,685,157.22 tax 5.1 Other comprehensive income that will not be reclassified into profit and loss 5.1.1 Changes in net liabilities or 19 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 assets with a defined benefit plan upon re-measurement 5.1.2 Share of other comprehensive income of investees that cannot be reclassified into profit/loss under the equity method 5.2 Other comprehensive income to be subsequently reclassified into 78,619,675.02 -30,685,157.22 profit/loss 5.2.1 Share of other comprehensive income of investees that will be reclassified into profit/loss under the equity method 5.2.2 Profit/loss on fair value changes of available-for-sale financial 78,619,675.02 -30,685,157.22 assets 5.2.3 Profit/loss on reclassifying held-to-maturity investments into available-for-sale financial assets 5.2.4 Effective profit/loss on cash flow hedges 5.2.5 Currency translation differences 5.2.6 Other 6. Total comprehensive income 187,454,611.81 69,239,991.43 7. Earnings per share 7.1 Basic earnings per share 7.2 Diluted earnings per share Legal representative: He Yong Accounting head for this Report: Liu Xingming Head of the accounting department: Tang Qionglan 5. Consolidated cash flow statement Unit: RMB Item January-March 2017 January-March 2016 1. Cash flows from operating activities: Cash received from sale of 891,447,570.02 751,648,546.04 commodities and rendering of service Net increase in money deposits from customers and interbank placements Net increase in loans from the Central Bank 20 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Net increase in funds borrowed from other financial institutions Cash received from premium of original insurance contracts Net cash received from reinsurance business Net increase in deposits of policy holders and investment fund Net increase in disposal of financial assets at fair value through profit/loss Interest, fees and commissions received Net increase in interbank borrowings Net increase in funds in repurchase business Tax refunds received 24,106,127.07 34,432,771.16 Cash received from other operating 5,770,626.16 10,956,963.96 activities Subtotal of cash inflows from operating 921,324,323.25 797,038,281.16 activities Cash paid for goods and services 552,182,800.34 388,307,756.52 Net increase in loans and advances to customers Net increase in funds deposited in the Central Bank and interbank placements Cash paid for claims of original insurance contracts Interest, fees and commissions paid Cash paid as policy dividends Cash paid to and for employees 198,007,961.77 142,895,599.81 Taxes paid 165,193,093.74 34,192,711.05 Cash paid for other operating 56,863,597.87 45,538,122.28 activities Subtotal of cash outflows due to 972,247,453.72 610,934,189.66 operating activities Net cash flows from operating -50,923,130.47 186,104,091.50 activities 2. Cash flows from investing activities: Cash received from retraction of 4,580,255.71 7,005.00 investments 21 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Cash received as investment income 5,202,481.38 341,953.73 Net cash received from disposal of fixed assets, intangible assets and other 54,000.00 long-term assets Net cash received from disposal of subsidiaries or other business units Cash received from other investing activities Subtotal of cash inflows from investing 9,782,737.09 402,958.73 activities Cash paid to acquire fixed assets, intangible assets and other long-term 39,104,297.12 14,704,385.62 assets Cash paid for investment 109,988,990.00 Net increase in pledged loans Net cash paid to acquire subsidiaries and other business units Cash paid for other investing activities Subtotal of cash outflows due to 39,104,297.12 124,693,375.62 investing activities Net cash flows from investing activities -29,321,560.03 -124,290,416.89 3. Cash flows from financing activities: Cash received from capital contributions Including: Cash received from minority shareholder investments by subsidiaries Cash received as borrowings Cash received from issuance of bonds Cash received from other financing activities Subtotal of cash inflows from financing activities Repayment of borrowings Cash paid for interest expenses and 5,660,290.78 distribution of dividends or profit Including: dividends or profit paid by subsidiaries to minority interests Cash paid for other financing activities 22 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 Sub-total of cash outflows due to 5,660,290.78 financing activities Net cash flows from financing -5,660,290.78 activities 4. Effect of foreign exchange rate 448,421.62 2,339,324.91 changes on cash and cash equivalents 5. Net increase in cash and cash -85,456,559.66 64,152,999.52 equivalents Add: Opening balance of cash and 1,479,283,642.54 935,241,205.20 cash equivalents 6. Closing balance of cash and cash 1,393,827,082.88 999,394,204.72 equivalents Legal representative: He Yong Accounting head for this Report: Liu Xingming Head of the accounting department: Tang Qionglan 6. Cash flow statement of the Company Unit: RMB Item January-March 2017 January-March 2016 1. Cash flows from operating activities: Cash received from sale of 862,744,439.39 746,819,116.75 commodities and rendering of service Tax refunds received 24,106,127.07 34,432,771.16 Cash received from other operating 3,825,641.43 8,309,282.13 activities Subtotal of cash inflows from operating 890,676,207.89 789,561,170.04 activities Cash paid for goods and services 699,760,627.60 492,802,614.83 Cash paid to and for employees 103,479,544.66 70,076,334.33 Taxes paid 132,294,837.84 9,335,332.53 Cash paid for other operating 50,830,424.51 43,078,475.07 activities Subtotal of cash outflows due to 986,365,434.61 615,292,756.76 operating activities Net cash flows from operating -95,689,226.72 174,268,413.28 activities 2. Cash flows from investing activities: Cash received from retraction of 4,580,255.71 7,005.00 investments Cash received as investment income 19,424,371.39 341,953.73 Net cash received from disposal of fixed assets, intangible assets and other 23 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 long-term assets Net cash received from disposal of subsidiaries or other business units Cash received from other investing activities Subtotal of cash inflows from investing 24,004,627.10 348,958.73 activities Cash paid to acquire fixed assets, intangible assets and other long-term 33,145,429.52 14,236,431.87 assets Cash paid for investment 109,988,990.00 Net cash paid to acquire subsidiaries and other business units Cash paid for other investing activities Subtotal of cash outflows due to 33,145,429.52 124,225,421.87 investing activities Net cash flows from investing activities -9,140,802.42 -123,876,463.14 3. Cash flows from financing activities: Cash received from capital contributions Cash received as borrowings Cash received from issuance of bonds Cash received from other financing activities Subtotal of cash inflows from financing activities Repayment of borrowings Cash paid for interest expenses and distribution of dividends or profit Cash paid for other financing activities Sub-total of cash outflows due to financing activities Net cash flows from financing activities 4. Effect of foreign exchange rate 448,421.62 2,339,324.46 changes on cash and cash equivalents 5. Net increase in cash and cash -104,381,607.52 52,731,274.60 equivalents Add: Opening balance of cash and 1,235,417,964.88 633,291,177.30 24 Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2017 cash equivalents 6. Closing balance of cash and cash 1,131,036,357.36 686,022,451.90 equivalents Legal representative: He Yong Accounting head for this Report: Liu Xingming Head of the accounting department: Tang Qionglan II Auditor’s report Is this Report audited? □ Yes √ No This Report is not audited. The Board of Directors Foshan Electrical and Lighting Co., Ltd. April 26, 2017 25