Foshan Electrical and Lighting Co., Ltd. Interim Report 2018 (Summary)
Stock Code: 000541, 200541 Stock Name: FSL, FSL-B Announcement No. 2018-027
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
INTERIM REPORT 2018 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the 2018 Interim Report of Foshan Electrical and Lighting Co., Ltd.
(together with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In
order for a full understanding of the Company’s operating results, financial condition and future development
plans, investors should carefully read the aforesaid full text, which has been disclosed together with this Summary
on the media designated by the China Securities Regulatory Commission (the “CSRC”).
All the Company’s directors have attended the Board meeting for the review of this Report and its summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
Part II Key Corporate Information
1. Stock Profile
Stock name FSL, FSL-B Stock code 000541, 200541
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Lin Yihui Huang Yufen
No. 64, Fenjiang North Road, Chancheng No. 64, Fenjiang North Road, Chancheng
Office address District, Foshan City, Guangdong Province, District, Foshan City, Guangdong Province,
P.R.China P.R.China
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2018 (Summary)
Tel. 0757-82810239 0757-82966028
E-mail address fsl-yh@126.com fslhyf@163.com
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2018 H1 2017 Change (%)
Operating revenue (RMB) 2,064,779,289.99 2,023,925,582.84 2.02%
Net profit attributable to the listed
229,277,455.82 228,494,660.57 0.34%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 228,028,236.71 227,184,233.70 0.37%
items (RMB)
Net cash generated from/used in operating
144,723,778.38 -31,063,187.22 565.90%
activities (RMB)
Basic earnings per share (RMB/share) 0.1638 0.1633 0.31%
Diluted earnings per share (RMB/share) 0.1638 0.1633 0.31%
Weighted average return on equity (%) 5.32% 4.99% 0.33%
30 June 2018 31 December 2017 Change (%)
Total assets (RMB) 5,238,861,184.94 5,675,811,824.29 -7.70%
Equity attributable to the listed company’s
4,266,885,850.25 4,779,115,459.39 -10.72%
shareholders (RMB)
3. Shareholders and Their Holdings at Period-End
Unit: share
Number of preferred
Number of ordinary shareholders 93,117 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Name of Nature of Shareholding Number of Pledged or frozen shares
Restricted shares
shareholder shareholder percentage shares Status Shares
Hong Kong
Wah Shing
Foreign legal
Holding 13.47% 188,496,430 In pledge 92,363,251
person
Company
Limited
Prosperity
Lamps & Foreign legal
10.50% 146,934,857
Components person
Limited
Shenzhen
Rising
State-owned
Investment 5.12% 71,696,136 In pledge 25,300,000
legal person
Development
Co., Ltd.
Guangdong
Electronics
State-owned
Information 4.74% 66,393,501 In pledge 32,532,815
legal person
Industry Group
Ltd.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2018 (Summary)
Central Huijin
Asset State-owned
2.42% 33,878,900
Management legal person
Co., Ltd.
Essence
International
Foreign legal
Securities 2.09% 29,313,386
person
(Hong Kong)
Co., Ltd.
Hong Kong
Rising
Foreign legal
Investment 1.82% 25,482,252
person
Development
Co., Ltd.
DBS Vickers
Foreign legal
(Hong Kong) 1.70% 23,811,009
person
Ltd A/C Clients
China
Merchants
Foreign legal
Securities 0.88% 12,322,811
person
(Hong Kong)
Co., Ltd
Domestic
Peng Weiyan 0.86% 12,032,113
natural person
Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited, Shenzhen
Rising Investment Development Co., Ltd., Guangdong Electronics Information Industry Group
Related or acting-in-concert
Ltd. and Hong Kong Rising Investment Development Co., Ltd. are acting-in-concert parties.
parties among shareholders
Apart from that, it is unknown whether there is among the top 10 shareholders any other related
above
parties or acting-in-concert parties as defined in the Administrative Measures for the Acquisition
of Listed Companies.
Among the top 10 shareholders, natural person Peng Weiyan holds 0 shares in the Company
Shareholders conducting margin through her common stock accounts and 12,032,113 shares in the Company through her accounts
trading (if any) of collateral securities for margin trading, representing a total holding of 12,032,113 shares in the
Company.
4. Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2018 (Summary)
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were undue before
the date of this Report’s approval or were due but could not be redeemed in full?
No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
The first half of 2018 saw changes in China’s economy with mounting pressure on foreign trade. Domestically, in
spite of a steady economy, growth in investment and consumption demand registered new lows amid deleveraging.
Internationally, export growth was under greater pressure caused by the tightening monetary policies of developed
economies, decreasing liquidity across the globe and rising trade frictions. In face of these economic changes and
the fierce competition industrywide, the Company’s management continued to focus on the strategic objectives of
“Cutting-Edge Technologies, Internationally-Famous Brands and Large-Scale Production” the Board had put
forward, strengthening innovation, optimizing the product mix and improving manufacturing and management. As
a result, the Company delivered a good operating performance for the Reporting Period. For this period, the
Company recorded operating revenue of RMB 2.065 billion, up 2.02% compared to the same period of last year,
and net profit attributable to the listed company’s shareholders of RMB 0.229 billion, representing a year-on-year
growth of 0.34%.
The work that the Company has done in the first half of 2018 is summarized as follows:
A. Strengthening market expansion for better competitiveness
(a) Domestically, the Company has made new changes to its distribution channels for better competitiveness.
In light of changes in the industry, the Company has reformed its distribution channels, helping distributors shift
from passivity to initiative, adopting flat management on distribution channels, and strengthening control over
channel terminals. Additionally, the Company has adjusted and integrated its distribution channels, and has made
clear the priorities for all these channels, so as to increase competitiveness in this respect.
(b) As for export, the Company continued to maintain good and stable cooperation with valued customers. Orders
kept increasing as the Company further extended its product range, offered products with high added value and
enhanced customer service. In addition, continuous effort was spent on attracting new customers to drive future
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2018 (Summary)
growth.
B. Enhancing innovation and improving manufacturing
The Company has enhanced innovation in the Reporting Period. A greater focus was given on smart lighting,
healthy lighting and smart electrical products. It also focused on product transitions and the development of new
products, particularly high-end products. To do so, it brought in high-end R&D talent and reformed the
performance appraisal system for R&D personnel so as to further stimulate their creativity.
To reduce marginal costs in procurement, manufacturing, equipment, etc., modularization, standardization and
generalization were promoted in product design. Meanwhile, the Company continued to automate its production
lines in a deeper and faster manner. It was trying to improve manufacturing through lean management and
automation.
C. Optimizing the product mix with smart lighting products being launched to the market one after another
During the Reporting Period, the Company reinforced the development of smart lighting products and
successfully developed 129 specifications. And it also showed its strength in smart lighting and electrical products
to the market at large international and domestic lighting exhibitions and smart showrooms including the Light +
Building exhibition at Frankfurt, Germany and the Guangzhou International Lighting Exhibition. The Company’s
smart lighting products have started to generate sales revenue in the Reporting Period, and the Company will
strengthen the marketing of these products in the second half of the year.
In addition to a greater investment in smart products, the Company also continued to promote the shift of its
products from light sources to luminaries through enriching the luminary portfolio with a higher proportion of
medium- and high-end luminaries.
D. Reinforcing control over costs and expenses for more economic benefits
The Company got down to details in production management and enhanced control over process indexes. It kept
material consumption and product quality indexes well under control with a double-appraisal system. It also
enhanced control over costs and expenses, seeking better economic benefits. Additionally, product cost estimates
and production analyses were made on a monthly basis and production summaries were given in a timely manner
to prevent risks.
2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to Last
Accounting Period
□ Applicable √ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2018 (Summary)
No such changes.
(2) Retrospective Restatements due to Correction of Material Accounting Errors in Reporting Period
□ Applicable √ Not applicable
No such cases.
(3) Changes to Scope of Consolidated Financial Statements Compared to Last Accounting Period
□ Applicable √ Not applicable
No such changes.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd.
28 August 2018
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