Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
THIRD QUARTER REPORT 2017
October 2017
1
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Part I Important Statements
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management 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 the directors of the Company 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) of the Company, hereby
guarantee that the financial statements carried in this Report are factual, accurate and
complete.
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Part II Company Fundamentals
I Key Consolidated Operating Results
Indicate by tick mark whether the Company needs to retrospectively restate any of its accounting data.
□ Yes √ No
September 30, 2017 December 31, 2016 Change
Total assets (RMB) 5,863,350,363.96 6,100,169,400.30 -3.88%
Equity attributable to owners of the
4,921,491,291.64 4,990,466,577.12 -1.38%
parent (RMB)
January-September
July-September 2017 YoY change YoY change
2017
Net sales (RMB) 926,328,050.98 13.03% 2,950,253,633.82 14.56%
Net margin attributable to
shareholders of the Company 450,036,365.74 514.98% 678,531,026.31 142.24%
(RMB)
Net margin attributable to
shareholders of the Company
65,754,068.84 -10.42% 292,938,302.54 4.60%
before exceptional gains and losses
(RMB)
Net cash from operating activities
-- -- -103,806,526.11 -132.03%
(RMB)
Basic earnings per share
0.3538 515.30% 0.5334 142.23%
(RMB/share)
Diluted earnings per share
0.3538 515.30% 0.5334 142.23%
(RMB/share)
Weighted average return on equity
8.43% 6.94% 13.42% 7.89%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
Item January-September 2017 Note
Gains/Losses on disposal of non-current assets (inclusive of offset
-4,255,164.43
asset impairment provisions)
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Government grants charged to the profit/loss for this Reporting
Period (except for the government grants closely related to the
4,234,669.94
business of the Company and given at a fixed quota or amount in
accordance with the State’s uniform standards)
Gains/Losses on fair value changes of trading financial assets and
liabilities & investment income from disposal of trading financial
assets and liabilities as well as financial assets available for sale 269,362,165.95
(exclusive of effective hedges related to normal business
operations of the Company)
Non-operating income and expense other than above 1,572,504.43
Other gain and loss items that meet definition of extraordinary
182,463,231.03
gain/loss
Less: Income tax effects 67,778,283.66
Minority interests effects (after tax) 6,399.49
Total 385,592,723.77 --
Explanation of why the Company classified an item as an exceptional gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the
said explanatory announcement as a recurrent gain/loss:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
II Total Number of Shareholders and Shareholdings of Top 10 Shareholders at Period-End
1. Numbers of Common Shareholders and Preference Shareholders with Resumed Voting Rights, and
Shareholdings of Top 10 Shareholders
Unit: share
Total number of preference
Total number of common shareholders with resumed
92,189 0
shareholders at period-end voting rights at period-end (if
any)
Top 10 shareholders
Name of Nature of Shareholding Total shares held Restricted shares Pledged or frozen shares
shareholder shareholder percentage at period-end held at period-end Status Number
Hong Kong Wah
Shing Holding Foreign
13.47% 171,360,391 Pledged 83,966,592
Company corporation
Limited
Prosperity Lamps Foreign 10.50% 133,577,143
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
& Components 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.
Central Huijin
Asset State-owned
2.42% 30,799,000
Management Co., corporation
Ltd.
Essence
International Foreign
1.91% 24,277,429
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.
China Merchants
Foreign
Securities (HK) 0.86% 10,928,556
corporation
Co., Limited
Foreign
Zhuang Jianyi 0.85% 10,821,372 8,116,029
individual
Top 10 non-restricted shareholders
Type of stock
Name of shareholder Non-restricted shares held at period-end
Type Number
Hong Kong Wah Shing Holding RMB common
171,360,391 171,360,391
Company Limited stock
Prosperity Lamps & Components RMB common
133,577,143 133,577,143
Limited stock
Shenzhen Rising Investment 65,178,305 RMB common 65,178,305
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Development Co., Ltd. stock
Guangdong Electronics Information RMB common
60,357,728 60,357,728
Industry Group Ltd. stock
Central Huijin Asset Management RMB common
30,799,000 30,799,000
Co., Ltd. stock
Domestically
Essence International Securities
24,277,429 listed stock for 24,277,429
(Hong Kong) Co., Ltd.
foreign investors
Domestically
DBS Vickers (Hong Kong) Ltd A/C
23,645,755 listed stock for 23,645,755
Clients
foreign investors
Domestically
Hong Kong Rising Investment
23,165,684 listed stock for 23,165,684
Development Co., Ltd.
foreign investors
Domestically
China Merchants Securities (HK)
10,928,556 listed stock for 10,928,556
Co., Limited
foreign investors
RMB common
Peng Weiyan 8,546,042 8,546,042
stock
Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited,
Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information
Industry Group Ltd. and Hong Kong Rising Investment Development Co., Ltd. are
Related or acting-in-concert parties
acting-in-concert parties; and Prosperity Lamps & Components Limited and Zhuang Jianyi
among 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.
Individual Shareholder Peng Weiyan held 000 shares in the Company through her common
Top 10 common shareholders
stock accounts and held 8,546,042 shares in the Company through her accounts of collateral
conducting securities margin trading
securities for margin trading, representing a total holding of 8,546,042 shares in the
(if any)
Company.
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
2. Total Number of Preference Shareholders and Shareholdings of Top 10 of Them at Period-End
□ Applicable √ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Part III Significant Events
I Changes in Key Consolidated Financial Statement Items and Reasons for Such Changes
√ Applicable □ Not applicable
Unit: RMB
September 30, December 31,
Item 2017/January-Septemb 2016/January-Septemb Change Main reason for change
er 2017 er 2016
Monetary funds 862,717,104.55 1,479,283,642.54 -41.68% Cash dividend distribution during this year
Notes receivable 46,511,928.45 67,925,843.74 -31.53% Increase in bank acceptance bills received and
used to pay to suppliers with endorsement
Accounts receivable 835,008,250.20 595,257,954.00 40.28% Increased net sales and credit period adjustments
for domestic customers
Prepayments 45,923,008.15 30,292,007.11 51.60% Increase in prepayments to suppliers
Interest receivable 8,203,896.29 4,612,406.80 77.87% Increase in undue bank interest
Other receivables 77,025,711.18 11,977,660.58 543.08% Outstanding amount resulted from selling
interests in associated company, and receivable
VAT rebates for exports
Other current assets 755,215,346.30 441,205,461.72 71.17% Increase in undue bank’s wealth management
products
Construction in 157,263,729.32 71,479,325.91 120.01% Accelerated expansion of plants in Gaoming
progress
Disposal of fixed 1,299,216.85 - / Disposal of fixed assets uncompleted
assets
Long-term deferred 9,476,005.79 6,897,119.78 37.39% Higher expenditure on decoration
expense
Payroll payable 62,849,578.17 96,021,156.06 -34.55% Last year’s year-end bonuses for employees
were paid in current period
Taxes payable 72,837,956.78 138,282,644.72 -47.33% Income from sale of shares of Guoxuan
High-tech stock had resulted in increase in
income taxes in fourth quarter of last year, and
corresponding income tax was paid in current
period
Dividend payable - 6,287,923.09 -100.00% Dividend distribution by subsidiaries
Taxes and surtaxes As per Finance & Tax Document [2016] No. 22,
30,774,732.41 17,649,693.22 74.36% vehicle and vessel use tax has been included in
taxes and surtaxes since May 1, 2016
Finance costs -6,116,872.70 -12,127,352.31 49.56% Greater foreign exchange losses caused by RMB
appreciation
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Investment income Sale of interests in associate Qinghai Fozhao
499,104,903.93 18,682,665.76 2571.49% and of shares of Guoxuan High-tech stock in
current period
Operating margin 795,691,152.75 344,516,114.27 130.96% Increased main operating margin and investment
income
Non-operating 6,401,542.43 1,805,821.67 254.49% Increased government subsidies
income
Non-operating 4,849,532.49 7,092,231.89 -31.62% Loss on inventories due to flooding in same
expense period of last year
Gross margin 797,243,162.69 339,229,704.05 135.02% Increased main operating margin and investment
income
Income tax expense 114,494,430.09 58,506,429.76 95.70% Increase in gross margin
Net margin 682,748,732.60 280,723,274.29 143.21% Increased main operating margin and investment
income
Net margin 678,531,026.31 280,104,920.60 142.24% Increased main operating margin and investment
attributable to income
owners of the parent
Minority interests 4,217,706.29 618,353.69 582.09% Increased earnings of subsidiaries
income
Total comprehensive Increase in net margin attributable to owners of
469,538,225.37 26,222,196.02 1690.61%
income the parent
Earnings per share Increase in net margin attributable to owners of
0.5334 0.2202 142.23%
the parent
Net cash flows from Income from sale of shares of Guoxuan
operating activities High-tech stock had resulted in increase in
-103,806,526.11 324,048,913.00 -132.03% income taxes in fourth quarter of last year, and
corresponding income tax was paid in current
period; and prepayments to suppliers increased
Net cash flows from Sale of interests in associate Qinghai Fozhao
investing activities 12,659,213.62 -605,074,904.70 102.09% and of shares of Guoxuan High-tech stock in
current period
Net cash flows from Significant increase in cash dividends paid
-522,068,416.83 -15,935,708.57 -3176.09%
financing activities
Effect of foreign Greater foreign exchange losses caused by RMB
exchange rate appreciation
-3,350,808.67 833,739.33 -501.90%
changes on cash and
cash equivalents
Net increase in cash Decrease in net cash flows from operating and
-616,566,537.99 -296,127,960.94 -108.21%
and cash equivalents financing activities
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
II Progress, Influence and Solutions Associated with Significant Events
√ Applicable □ Not applicable
1. On June 27, 2017, the Company signed an Equity Transfer Agreement with KEDA Clean Energy Co., Ltd.,
transferring the Company’s 38% stake in Qinghai Fozhao Lithium Energy Exploitation Co., Ltd. to the latter for
RMB189.8176 million. On August 28, 2017, the equity transfer formalities were completed with the industrial
and commercial administration. The Company recognized, on this transaction, an investment income of
RMB184.2847 million and a net margin of RMB160.4804million (net of tax) for the third quarter of 2017.
2. During the period July 6, 2017 through August 1, 2017, the Company sold 8,770,400 (approximately 0.9994%)
shares of the Guoxuan High-tech stock through bidding at the relevant stock exchange for RMB304,428,520.24 in
total. Excluding the related costs and tax, the Company obtained, from this transaction, an investment income of
RMB270.9981 million and a net margin of RMB228.9578 million for the third quarter of 2017.
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties and
Acquirers, as well as the Company and Other Commitment Makers, Failed to Fulfill on Time
During Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Forecast of 2017 Annual Operating Results
Warning of a possible loss on or a significant year-over-year change in accumulative net margin during the period
the beginning of the current year through the end of the next reporting period, as well as the reasons:
□ 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.
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc.
during Reporting Period
√ Applicable □ Not applicable
Date of visit Way of visit Type of visitor About
See www.cninfo.com.cn – EasyIR –
07/06/2017 By one-on-one meeting Institution
Investor Relations
08/30/2017 By phone Institution
VIII Irregularities Arising from Provision of Guarantees for Third Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Funds by Its Controlling Shareholder or Related Parties for
Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the third quarter of the year and has no such plans for now.
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
September 30, 2017
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 862,717,104.55 1,479,283,642.54
Settlement reserve
Interbank lendings
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable 46,511,928.45 67,925,843.74
Accounts receivable 835,008,250.20 595,257,954.00
Prepayments 45,923,008.15 30,292,007.11
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract reserve
Interest receivable 8,203,896.29 4,612,406.80
Dividends receivable
Other accounts receivable 77,025,711.18 11,977,660.58
Financial assets purchased under
agreements to resell
Inventories 696,098,069.44 753,681,605.19
Assets held for sale
Non-current assets due within one year
Other current assets 755,215,346.30 441,205,461.72
Total current assets 3,326,703,314.56 3,384,236,581.68
Non-current assets:
Loans and advances to customers
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Available-for-sale financial assets 1,487,028,388.75 1,732,150,857.01
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 178,570,902.09 210,394,932.69
Investment property
Fixed assets 467,695,253.63 446,006,929.66
Construction in progress 157,263,729.32 71,479,325.91
Engineering materials
Disposal of fixed assets 1,299,216.85
Productive living assets
Oil-gas assets
Intangible assets 157,093,681.84 160,330,395.13
R&D expense
Goodwill
Long-term deferred expense 9,476,005.79 6,897,119.78
Deferred income tax assets 34,747,640.13 43,547,918.44
Other non-current assets 43,472,231.00 45,125,340.00
Total non-current assets 2,536,647,049.40 2,715,932,818.62
Total assets 5,863,350,363.96 6,100,169,400.30
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Money deposits accepted and inter-bank
deposits
Interbank borrowings
Financial liabilities at fair value through
gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 527,220,341.52 552,255,512.33
Advances received 42,661,372.56 41,180,818.13
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 62,849,578.17 96,021,156.06
Taxes payable 72,837,956.78 138,282,644.72
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Interest payable
Dividends payable 6,287,923.09
Other accounts payable 42,588,320.54 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 748,157,569.57 884,132,393.14
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 11,988,518.55 10,449,768.49
Deferred income tax liabilities 162,487,211.47 200,112,595.11
Other non-current liabilities
Total non-current liabilities 174,475,730.02 210,562,363.60
Total liabilities 922,633,299.59 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
Less: Treasury shares
Other comprehensive income 920,760,865.02 1,133,971,372.25
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Special reserve
Surplus reserve 733,924,951.81 733,924,951.81
Provisions for general risks
Retained earnings 1,708,851,147.74 1,564,615,925.99
Equity attributable to owners of the parent 4,921,491,291.64 4,990,466,577.12
Minority interests 19,225,772.73 15,008,066.44
Total owners’ equity 4,940,717,064.37 5,005,474,643.56
Total liabilities and owners’ equity 5,863,350,363.96 6,100,169,400.30
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
2. Parent Company Balance Sheet
Unit: RMB
Item September 30, 2017 December 31, 2016
Current assets:
Monetary funds 667,157,114.92 1,235,417,964.88
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable 46,261,928.45 66,222,840.44
Accounts receivable 839,280,380.89 611,855,496.90
Prepayments 82,556,888.67 117,217,953.23
Interest receivable 6,801,320.95 3,590,629.01
Dividends receivable 14,671,820.57
Other accounts receivable 147,874,521.01 56,714,849.84
Inventories 622,228,347.25 717,097,516.25
Assets held for sale
Non-current assets due within one year
Other current assets 644,989,742.55 379,932,325.87
Total current assets 3,057,150,244.69 3,202,721,396.99
Non-current assets:
Available-for-sale financial assets 1,487,028,388.75 1,732,150,857.01
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 662,168,191.85 693,992,222.45
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Investment property
Fixed assets 389,773,077.10 375,075,102.44
Construction in progress 156,507,082.15 69,589,510.14
Engineering materials
Disposal of fixed assets 1,298,243.60
Productive living assets
Oil-gas assets
Intangible assets 113,443,209.63 117,017,633.92
R&D expense
Goodwill
Long-term deferred expense 9,028,211.01 6,897,119.78
Deferred income tax assets 29,075,542.10 37,790,043.38
Other non-current assets 43,011,520.00 44,519,790.00
Total non-current assets 2,891,333,466.19 3,077,032,279.12
Total assets 5,948,483,710.88 6,279,753,676.11
Current liabilities:
Short-term borrowings
Financial liabilities at fair value through
gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 741,919,260.89 701,814,818.26
Advances received 41,580,168.01 38,406,798.91
Payroll payable 37,021,297.12 66,764,581.34
Taxes payable 58,163,522.65 121,939,572.62
Interest payable
Dividends payable
Other accounts payable 115,761,425.55 258,368,416.59
Liabilities held for sale
Non-current liabilities due within one year
Other current liabilities
Total current liabilities 994,445,674.22 1,187,294,187.72
Non-current liabilities:
Long-term borrowings
Bonds payable
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income 11,639,768.34 9,984,768.34
Deferred income tax liabilities 162,487,211.47 200,112,595.11
Other non-current liabilities
Total non-current liabilities 174,126,979.81 210,097,363.45
Total liabilities 1,168,572,654.03 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 920,760,865.02 1,133,971,372.25
Special reserve
Surplus reserve 733,924,951.81 733,924,951.81
Retained earnings 1,559,667,306.87 1,448,907,867.73
Total owners’ equity 4,779,911,056.85 4,882,362,124.94
Total liabilities and owners’ equity 5,948,483,710.88 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 for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 926,328,050.98 819,510,785.90
Including: Net sales 926,328,050.98 819,510,785.90
Interest revenue
Premium revenue
Fee and commission revenue
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
2. Operating expenses 888,962,375.54 729,336,869.53
Including: Cost of sales 760,791,362.20 624,355,439.15
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 10,388,130.08 5,398,114.76
Selling expense 67,350,699.34 69,476,830.23
Administrative expense 47,679,268.38 46,549,040.03
Finance costs 999,034.66 -5,681,599.27
Asset impairment losses 1,753,880.88 -10,760,955.37
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for losses) 485,095,621.91 4,961,917.99
Including: Share of gains/losses of
184,214,592.25 -6,569.56
associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 522,461,297.35 95,135,834.36
Add: Non-operating income 379,146.55 230,805.09
Including: Gains on disposal of
non-current assets
Less: Non-operating expense 79,758.80 2,175,174.95
Including: Losses on disposal of
776,026.47
non-current assets
4. Gross margin (“-” for losses) 522,760,685.10 93,191,464.50
Less: Income tax expense 71,896,928.74 19,080,452.47
5. Net margin (“-” for losses) 450,863,756.36 74,111,012.03
Attributable to owners of the
450,036,365.74 73,179,107.88
parent
Attributable to minority interests 827,390.62 931,904.15
6. Other comprehensive income, net of
-236,235,978.37 -394,818,856.95
tax
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Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Other comprehensive income, net
of tax attributable to owners of the -236,235,978.37 -394,818,856.95
parent
6.1 Other comprehensive
income that will not be reclassified into
gains/losses
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 gains/losses
under equity method
6.2 Other comprehensive
income to be subsequently reclassified -236,235,978.37 -394,818,856.95
into gains/losses
6.2.1 Share of other
comprehensive income of investees that
-21,831,908.42
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale -214,404,069.95 -394,818,856.95
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses
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 214,627,777.99 -320,707,844.92
Attributable to owners of the
213,800,387.37 -321,639,749.07
parent
Attributable to minority interests 827,390.62 931,904.15
8. Earnings per share
8.1 Basic earnings per share 0.3538 0.0575
8.2 Diluted earnings per share 0.3538 0.0575
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
18
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
4. Parent Company Income Statement for July-September
Unit: RMB
Item July-September 2017 July-September 2016
1. Operating revenue 903,446,254.75 831,582,855.08
Less: Operating expenses 763,482,738.06 637,457,080.01
Taxes and surtaxes 7,416,305.60 2,932,685.10
Selling expense 62,278,091.63 68,412,649.71
Administrative expense 46,031,248.74 45,821,532.99
Finance costs 2,362,018.02 -4,467,105.10
Asset impairment losses 1,617,784.82 -10,827,360.48
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for loss) 484,167,951.90 4,961,917.99
Including: Share of gains/losses of
184,214,592.25 -6,569.56
associates and joint ventures
Other income
2. Operating margin (“-” for losses) 504,426,019.78 97,215,290.84
Add: Non-operating income 321,854.74 158,665.11
Including: Gains on disposal of
non-current assets
Less: Non-operating expense 49,663.66 2,113,816.96
Including: Losses on disposal of
744,668.48
non-current assets
3. Gross margin (“-” for losses) 504,698,210.86 95,260,138.99
Less: Income tax expense 67,376,029.03 18,378,235.96
4. Net margin (“-” for losses) 437,322,181.83 76,881,903.03
5. Other comprehensive income, net of
-236,235,978.37 -394,818,856.95
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
19
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to
be subsequently reclassified into -236,235,978.37 -394,818,856.95
gains/losses
5.2.1 Share of other
comprehensive income of investees that
-21,831,908.42
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial -214,404,069.95 -394,818,856.95
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 201,086,203.46 -317,936,953.92
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 Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 2,950,253,633.82 2,575,181,713.34
Including: Net sales 2,950,253,633.82 2,575,181,713.34
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating expenses 2,653,667,385.00 2,249,348,264.83
20
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Including: Cost of sales 2,307,723,142.05 1,947,337,999.85
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 30,774,732.41 17,649,693.22
Selling expense 149,002,693.03 142,728,637.64
Administrative expense 146,470,089.98 128,666,867.97
Finance costs -6,116,872.70 -12,127,352.31
Asset impairment losses 25,813,600.23 25,092,418.46
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for losses) 499,104,903.93 18,682,665.76
Including: Share of gains/losses of
185,758,558.04 -26,209.68
associates and joint ventures
Exchange gains (“-” for losses)
Other income
3. Operating margin (“-” for losses) 795,691,152.75 344,516,114.27
Add: Non-operating income 6,401,542.43 1,805,821.67
Including: Gains on disposal of
20,253.97
non-current assets
Less: Non-operating expense 4,849,532.49 7,092,231.89
Including: Losses on disposal of
4,255,164.43 999,118.72
non-current assets
4. Gross margin (“-” for losses) 797,243,162.69 339,229,704.05
Less: Income tax expense 114,494,430.09 58,506,429.76
5. Net margin (“-” for losses) 682,748,732.60 280,723,274.29
Attributable to owners of the
678,531,026.31 280,104,920.60
parent
Attributable to minority interests 4,217,706.29 618,353.69
6. Other comprehensive income, net of
-213,210,507.23 -254,501,078.27
tax
Other comprehensive income, net
-213,210,507.23 -254,501,078.27
of tax attributable to owners of the
21
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
parent
6.1 Other comprehensive
income that will not be reclassified into
gains/losses
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 gains/losses
under equity method
6.2 Other comprehensive
income to be subsequently reclassified -213,210,507.23 -254,501,078.27
into gains/losses
6.2.1 Share of other
comprehensive income of investees that
-21,831,908.42
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale -191,378,598.81 -255,315,043.41
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses
on cash flow hedges
6.2.5 Currency translation
differences
6.2.6 Other 813,965.14
Other comprehensive income, net
of tax attributable to minority interests
7. Total comprehensive income 469,538,225.37 26,222,196.02
Attributable to owners of the
465,320,519.08 25,603,842.33
parent
Attributable to minority interests 4,217,706.29 618,353.69
8. Earnings per share
8.1 Basic earnings per share 0.5334 0.2202
8.2 Diluted earnings per share 0.5334 0.2202
Where business mergers under the same control occurred in the current period, the net margin achieved by the merged parties before
the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
22
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
6. Parent Company Income Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Operating revenue 2,883,642,659.04 2,614,040,071.22
Less: Operating expenses 2,313,440,394.16 1,993,164,589.95
Taxes and surtaxes 21,444,604.66 10,758,187.57
Selling expense 136,340,918.02 141,048,891.13
Administrative expense 144,429,787.11 128,230,793.51
Finance costs -2,112,235.62 -8,265,724.94
Asset impairment losses 24,670,993.37 24,960,867.30
Add: Gains on fair value changes (“-”
for losses)
Investment income (“-” for loss) 497,071,428.38 18,682,665.76
Including: Share of gains/losses of
185,758,558.04 -26,209.68
associates and joint ventures
Other income
2. Operating margin (“-” for losses) 742,499,625.72 342,825,132.46
Add: Non-operating income 6,068,688.15 1,548,088.24
Including: Gains on disposal of
9,401.71
non-current assets
Less: Non-operating expense 2,091,041.16 5,850,398.69
Including: Losses on disposal of
1,528,785.79 937,680.22
non-current assets
3. Gross margin (“-” for losses) 746,477,272.71 338,522,822.01
Less: Income tax expense 101,422,029.01 56,240,423.99
4. Net margin (“-” for losses) 645,055,243.70 282,282,398.02
5. Other comprehensive income, net of
-213,210,507.23 -255,315,043.41
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
23
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to
be subsequently reclassified into -213,210,507.23 -255,315,043.41
gains/losses
5.2.1 Share of other
comprehensive income of investees that
-21,831,908.42
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial -191,378,598.81 -255,315,043.41
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 431,844,736.47 26,967,354.61
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
7. Consolidated Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in
operating activities:
Cash generated by sale of
2,689,003,504.65 2,312,207,975.75
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from Central
Bank
Net increase in funds borrowed from
other financial institutions
24
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Cash received as premiums of
original insurance contracts
Net cash generated by reinsurance
business
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through gains/losses
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax rebates received 74,944,574.17 58,629,989.95
Cash generated by other operating
40,868,251.39 33,828,787.79
activities
Subtotal of cash generated by operating
2,804,816,330.21 2,404,666,753.49
activities
Cash paid for goods and services 1,873,635,380.49 1,340,524,458.10
Net increase in loans and advances to
customers
Net increase in funds deposited in
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 538,117,713.71 442,206,958.62
Taxes paid 328,954,823.22 176,309,686.13
Cash used in other operating
167,914,938.90 121,576,737.64
activities
Subtotal of cash used in operating
2,908,622,856.32 2,080,617,840.49
activities
Net cash from operating activities -103,806,526.11 324,048,913.00
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments 19,221,175.20 7,005.00
Cash received as investment income 479,129,177.90 17,173,398.25
Net cash generated by disposal of
fixed assets, intangible assets and other 1,626,000.00 73,000.00
long-term assets
25
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Net cash generated by disposal of
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
499,976,353.10 17,253,403.25
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 177,317,139.48 68,923,429.83
assets
Cash paid for investments 310,000,000.00 545,865,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
7,539,878.12
activities
Subtotal of cash used in investing
487,317,139.48 622,328,307.95
activities
Net cash from investing activities 12,659,213.62 -605,074,904.70
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings
Cash generated by issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
activities
Repayment of borrowings
Cash paid for interest expenses and
522,068,416.83 15,935,708.57
distribution of dividends or profit
Including: dividends or profit paid
5,660,290.78
by subsidiaries to minority interests
Cash used in other financing
activities
Sub-total of cash used in financing
522,068,416.83 15,935,708.57
activities
Net cash from financing activities -522,068,416.83 -15,935,708.57
26
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
4. Effect of foreign exchange rate
-3,350,808.67 833,739.33
changes on cash and cash equivalents
5. Net increase in cash and cash
-616,566,537.99 -296,127,960.94
equivalents
Add: Opening balance of cash and
1,479,283,642.54 933,546,108.37
cash equivalents
6. Closing balance of cash and cash
862,717,104.55 637,418,147.43
equivalents
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
8. Parent Company Cash Flow Statement for January-September
Unit: RMB
Item January-September 2017 January-September 2016
1. Cash generated by or used in
operating activities:
Cash generated by sale of
2,602,335,552.74 2,340,439,622.75
commodities and rendering of service
Tax rebates received 74,944,574.17 58,629,989.95
Cash generated by other operating
33,784,521.55 28,947,588.49
activities
Subtotal of cash generated by operating
2,711,064,648.46 2,428,017,201.19
activities
Cash paid for goods and services 2,191,779,261.68 1,675,836,030.87
Cash paid to and for employees 236,224,216.19 170,220,863.77
Taxes paid 242,191,570.41 101,878,975.55
Cash used in other operating
172,691,140.62 117,489,938.22
activities
Subtotal of cash used in operating
2,842,886,188.90 2,065,425,808.41
activities
Net cash from operating activities -131,821,540.44 362,591,392.78
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments 19,221,175.20 7,005.00
Cash received as investment income 492,162,728.87 17,173,398.25
Net cash generated by disposal of
fixed assets, intangible assets and other 1,580,000.00 14,000.00
long-term assets
Net cash generated by disposal of
subsidiaries or other business units
27
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Cash generated by other investing
activities
Subtotal of cash generated by investing
512,963,904.07 17,194,403.25
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 164,644,278.87 63,757,043.28
assets
Cash paid for investments 265,000,000.00 545,865,000.00
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
7,500,000.00
activities
Subtotal of cash used in investing
429,644,278.87 617,122,043.28
activities
Net cash from investing activities 83,319,625.20 -599,927,640.03
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Cash received as borrowings
Cash generated by issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
activities
Repayment of borrowings
Cash paid for interest expenses and
516,408,126.05 15,935,708.57
distribution of dividends or profit
Cash used in other financing
activities
Sub-total of cash used in financing
516,408,126.05 15,935,708.57
activities
Net cash from financing activities -516,408,126.05 -15,935,708.57
4. Effect of foreign exchange rate
-3,350,808.67 833,739.14
changes on cash and cash equivalents
5. Net increase in cash and cash
-568,260,849.96 -252,438,216.68
equivalents
Add: Opening balance of cash and
1,235,417,964.88 633,291,177.30
cash equivalents
6. Closing balance of cash and cash
667,157,114.92 380,852,960.62
equivalents
28
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2017
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
II Auditor’s Report
Are the Q3 2017 financial statements audited?
□Yes √ No
These financial statements are unaudited.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd.
October 25, 2017
29
