Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
THIRD QUARTER REPORT 2019
October 2019
1
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (together
with its consolidated subsidiaries, the “Company”, e xcept where the context othe rwise
requires) hereby guarantee the factuality, accuracy and completeness of the contents of this
Report and its summary, and shall be jointly and severally liable for any misrepresentations,
misleading statements or material omissions therein.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
He Yong, the Company’s legal representative, Liu Xingming, the Company’s General
Manager, and Tang Qionglan, the Company’s Chief Financial Officer (CFO) hereby
guarantee that the financial statements carried in this Report are factual, accurate and
complete.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
2
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Part II Key Corporate Information
I Key Consolidated Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
30 September 2019 31 December 2018 Change (%)
Total assets (RMB) 5,512,912,337.32 5,588,166,699.30 -1.35%
Equity attributable to the listed
4,372,149,231.17 4,319,259,418.46 1.22%
company’s shareholders (RM B)
Q3 2019 YoY change (%) Q1-Q3 2019 YoY change (%)
Operating revenue (RM B) 755,281,612.77 -7.98% 2,442,466,273.63 -15.35%
Net profit attributable to the listed
63,440,260.60 -32.79% 230,715,986.35 -28.72%
company’s shareholders (RM B)
Net profit attributable to the listed
company’s shareholders before 64,734,076.20 -31.54% 219,252,063.86 -32.03%
exceptional items (RM B)
Net cash generated from/used in
-- -- 335,947,221.70 -34.18%
operating activities (RM B)
Basic earnings per share
0.0453 -32.89% 0.1649 -28.71%
(RM B/share)
Diluted earnings per share
0.0453 -32.89% 0.1649 -28.71%
(RM B/share)
Weighted average return on equity
1.52% -0.14% 5.29% -1.69%
(%)
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RM B
Item Q1-Q3 2019 Note
Gain or loss on disposal of non-current assets (inclusive of
-53,336.67
impairment allowance write-offs)
Government subsidies charged to current profit or loss (exclusive
of government subsidies given in the Company’s ordinary course
3,412,550.19
of business at fixed quotas or amounts as per government’s
uniform standards)
3
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Gain or loss on fair-value changes in trading financial assets and
liabilities and derivative financial assets and liabilities &
investment income from disposal of trading financial assets and
11,401,600.00
liabilities and derivative financial assets and liabilities, and other
creditors’ investment (exclusive of effective portion of hedges
that arise in the Company’s ordinary course of business)
Non-operating income and expense other than above -1,196,346.06
Less: Income tax effects 2,084,348.88
Non-controlling interests effects (net of tax) 16,196.09
Total 11,463,922.49 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
II Total Numbe r of Shareholde rs and Holdings of Top 10 Shareholde rs at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well as
Holdings of Top 10 Shareholders
Unit: share
Number of preferred
Number of ordinary shareholders 85,241 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Name of Nature of Shareholding Shares in pledge or frozen
Number of shares Restricted shares
shareholder shareholder percentage Status Shares
Hong Kong Wah
Foreign legal
Shing Holding 13.47% 188,496,430 In pledge 92,363,251
person
Company Limited
Prosperity Lamps
Foreign legal
& Components 10.50% 146,934,857
person
Limited
Shenzhen Rising
Investment State-owned legal
5.12% 71,696,136 In pledge 35,800,000
Development Co., person
Ltd.
4
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Guangdong
Electronics State-owned legal
4.74% 66,393,501 In pledge 32,532,815
Information person
Industry Group Ltd.
Central Huijin
State-owned legal
Asset M anagement 2.42% 33,878,900
person
Co., Ltd.
Essence
International Foreign legal
2.22% 31,008,913
Securities (Hong person
Kong) Limited
Rising Investment
Foreign legal
Development 1.82% 25,482,252
person
Limited
DBS VICKERS
(HONG KONG) Foreign legal
1.57% 22,002,137
LTD A/C person
CLIENTS
China M erchants
Foreign legal
Securities (HK) 0.87% 12,226,036
person
Co., Limited
Foreign natural
Zhuang Jianyi 0.85% 11,903,509 8,927,632
person
Top 10 unrestricted shareholders
Shares by type
Name of shareholder Unrestricted shares
Type Shares
Hong Kong Wah Shing Holding RM B-denominate
188,496,430 188,496,430
Company Limited d ordinary stock
Prosperity Lamps & Components RM B-denominate
146,934,857 146,934,857
Limited d ordinary stock
Shenzhen Rising Investment RM B-denominate
71,696,136 71,696,136
Development Co., Ltd. d ordinary stock
Guangdong Electronics Information RM B-denominate
66,393,501 66,393,501
Industry Group Ltd. d ordinary stock
Central Huijin Asset M anagement Co., RM B-denominate
33,878,900 33,878,900
Ltd. d ordinary stock
Domestically
Essence International Securities (Hong
31,008,913 listed foreign 31,008,913
Kong) Limited
stock
5
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Domestically
Rising Investment Development
25,482,252 listed foreign 25,482,252
Limited
stock
Domestically
DBS VICKERS (HONG KONG) LTD
22,002,137 listed foreign 22,002,137
A/C CLIENTS
stock
Domestically
China M erchants Securities (HK) Co.,
12,226,036 listed foreign 12,226,036
Limited
stock
RM B-denominate
Zhao Xiyi 7,868,765 7,868,765
d ordinary stock
Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited,
Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information
Related or acting-in-concert parties Industry Group Ltd. and Rising Investment Development Limited are acting-in-concert
among shareholders above 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 M easures for
the Acquisition of Listed Companies.
Top 10 ordinary shareholders involved
NA
in securities margin trading (if any)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
6
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Unit: RM B
30 September 2019 31 December 2018 (or
Item Change (%) Explanation of why
(or Q1~Q3 2019) Q1~Q3 2018)
Interests receivable 7,827,159.65 5,152,364.04 51.91% Primarily driven by increase in withdrawal of
interests of undue fixed time deposits in the
Reporting Period
Available-for-sale financial 897,716,590.20 -100.00% Primarily driven by the transfer of this item into
assets investments in other equity instruments for
accounting in accordance with the New Standards
Governing Financial Instruments in the Reporting
Period
Investments in other equity 939,350,512.41 N/A Primarily driven by the transfer of those originally
instruments recorded into available-for-sale financial assets into
this item for accounting in accordance with the New
Standards Governing Financial Instruments in the
Reporting Period
Other non-current assets 6,829,987.60 48,305,435.42 -85.86% Primarily driven by recovery of accounts
Trading financial liabilities 2,625,600.00 N/A Primarily driven by the transfer of those originally
recorded into financial liabilities at fair value through
profit or loss into this item for accounting in
accordance with the New Standards Governing
Financial Instruments in the Reporting Period
Financial liabilities at fair value 477,200.00 -100.00% Primarily driven by the transfer of this item into
through profit or loss trading financial liabilities for accounting in
accordance with the New Standards Governing
Financial Instruments in the Reporting Period
Payroll payable 65,113,082.24 96,088,621.59 -32.24% The payment in the current period of the year-end
bonuses of last year to the employees
Tax payable 16,204,972.79 25,354,466.37 -36.09% Decrease in VAT and income tax in the Reporting
Period
Deferred income 38,750.37 155,000.31 -75.00% Carry-over of some deferred income to
non-operating income in the Reporting Period
R&D expense 51,257,471.53 35,259,823.24 45.37% Primarily driven by increase in the salary of R&D
personnel for the Reporting Period compared to that
of last year
7
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Interest income 16,370,875.76 7,691,616.90 112.84% Primarily driven by increase in interests of deposits
for the Reporting Period
Other income 6,665,710.25 27,330,963.26 -75.61% A smaller amount of government subsidies received
in the Company’s ordinary course of business
Income from investment in joint 875,062.13 6,515,462.53 -86.57% Decrease in associated enterprises’ net profit
ventures and associated attributable to shareholders of the Company as the
enterprises parent in the Reporting Period
Gain on changes in fair value -2,148,400.00 -4,819,200.00 55.42% Primarily driven by decrease in amount of undue
forward foreign exchange settlement products as at
30 September 2019
Credit impairment loss 1,749,099.60 N/A Primarily driven by the presentation of bad debt
provision withdrawn for accounts receivable under
this item in accordance with the New Standards
Governing Financial Instruments in the Reporting
Period
Asset impairment loss -12,157,202.51 -31,327,824.39 61.19% Primarily driven by the presentation of bad debt
provision withdrawn for accounts receivable under
the item of credit impairment loss in accordance with
the New Standards Governing Financial Instruments
in the Reporting Period
Asset disposal income -78,039.44 100.00% Resale of non-current assets in the same period of
last year
Operating profit 271,171,799.88 387,876,055.36 -30.09% Decrease in operating revenue in the Reporting
Period
Non-operating income 2,672,321.16 2,040,284.75 30.98% Primarily driven by increase in non-operating income
for the Reporting Period
Non-operating expense 2,680,673.95 884,191.93 203.18% Increase in non-operating expense in the Reporting
Period
Profit before tax 271,163,447.09 389,032,148.18 -30.30% Decrease in operating revenue in the Reporting
Period
Income tax expense 38,512,677.43 62,530,147.85 -38.41% Decrease in profit before tax in the Reporting Period
Net profit attributable to 1,934,783.31 2,835,156.82 -31.76% Decrease in profits of non-wholly-owned subsidiaries
non-controlling interests in the Reporting Period
Other comprehensive income, 40,471,826.38 -333,328,064.68 112.14% Increase in fair value of investments in other equity
net of tax assets in the Reporting Period
Total comprehensive income 273,122,596.04 -6,826,064.35 4101.17% Increase in fair value of investments in other equity
instruments in the Reporting Period
Net cash generated from/used in 335,947,221.70 510,441,096.28 -34.18% Primarily driven by increase of mature bank
operating activities acceptance bills honored in the Reporting Period
compared to that of the same period of last year
Net cash generated from/used in 47,955,813.35 -20,911,229.55 329.33% Decrease in cash paid for construction of fixed
investing activities assets, intangible assets and other long-term assets in
8
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
the Reporting Period
Net cash generated from/used in -215,948,000.02 -405,163,764.00 46.70% Decrease in cash dividends paid in the Reporting
financing activities Period
Effect of foreign exchange rate 531,705.94 5,036,692.65 -89.44% Large fluctuation of exchange rates of the same
changes on cash and cash period of last year
equivalents
Net increase in cash and cash 168,486,740.97 89,402,795.38 88.46% Primarily driven by increase in cash flows from
equivalents financing activities
II Progress, Influence and Solutions with regard to Significant Events
□ Applicable √ Not applicable
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Pa rties,
Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Securities Investments
√ Applicable □ Not applicable
Unit: RM B
Gain/Lo
Accumu
ss on
lated Purchas
fair-valu Gain/los
Initial M easure Beginni e
fair-valu
ed in
Sold in
s in Ending
Security Security Security ng e Reporti Account Funding
investm ment carrying changes changes
Reporti
ng
Reporti carrying
type code name method in ng ng amount ing title source
ent cost amount charged Period
Reporti Period Period
to
ng
equity
Period
Investm
Domesti
Guoxua ent in
cally/Ov 160,00 Fair
n 525,465 43,182, 348,412 4,545,5 568,647 other Self-fun
erseas 0,000.0 value
002074 High-tec ,291.00 701.25 ,852.61 47.50 ,992.25 equity ded
listed 0 method
h instrum
stock
ents
9
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Investm
Domesti
ent in
cally/Ov China Fair
30,828, 68,622, 4,451,2 49,424, 2,986,0 73,074, other Self-fun
erseas 601818 Everbrig value
816.00 989.80 20.96 462.94 27.39 210.76 equity ded
listed ht Bank method
instrum
stock
ents
Investm
Domesti
ent in
cally/Ov 292,57
Xiamen Cost 292,574 10,971, 292,574 other Self-fun
erseas N/A 4,133.0
Bank method ,133.00 417.60 ,133.00 equity ded
listed 0
instrum
stock
ents
Foshan
branch Investm
Domesti
of ent in
cally/Ov
Guangd 500,00 Cost 500,000 7,962.3 500,000 other Self-fun
erseas N/A
ong 0.00 method .00 1 .00 equity ded
listed
Develop instrum
stock
ment ents
Bank
483,90
887,162 47,633, 397,837 18,510, 934,796
Total 2,949.0 -- 0.00 0.00 -- --
,413.80 922.21 ,315.55 954.80 ,336.01
0
Disclosure date of
announcement on Board’s
consent for securities
investments
Disclosure date of
announcement on general
meeting’s consent for
securities investments (if
any)
V Wealth Manage ment Entrustment
√ Applicable □ Not applicable
Unit: RM B’0,000 (in RM B ten thousand yuan)
Type of wealth Outstanding amount
Funding source Principal Overdue amount
management before maturity
Wealth management
product purchased from Self-funded 36,500 34,500 0
bank
10
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Structural deposits Self-funded 60,000 48,000 0
Total 96,500 82,500 0
High-risk wealth management entrustments with amounts that are individually s ignificant, or with low security,
low liquidity, or no protection of the principal:
√ Applicable □ Not applicable
Unit: RM B’0,000 (in RM B ten thousand yuan)
Overv
Collec
iew
tion/pa Throu
Type Refere Actual Any and
Invest Expect yment Impair gh
of Way nce gain/lo plan index
Type Fundi ment ed of ment prescri
Truste wealth Princi Start End of annual ss in for to
of ng with return gain/lo allowa bed
e manag pal date date payba ized Report further more
trustee source princi (if ss in nce (if proced
ement ck return ing entrust infor
pal any) Report any) ure or
product (%) Period ment matio
ing not
n (if
Period
any)
China
Guang
fa Payme
Bank Princip nt of
(Guan al-prot princi
Self-o 11 www.
gzhou ected 12 pal To be
wned Octob Invest cninfo
Devel Bank with 8,000 July and 3.90% 48.62 42.74 collect Yes Yes
idle er ment .com.c
opmen floatin 2019 interes ed
capital 2019 n
t g-rate t upon
Distric income maturi
t ty
sub-br
anch)
China
Payme
Guang
Princip nt of
fa
al-prot princi
Bank Self-o 21 www.
ected 23 pal To be
(Fosha wned Octob Invest cninfo
Bank with 5,000 July and 3.95% 48.7 37.34 collect Yes Yes
n idle er ment .com.c
floatin 2019 interes ed
Cheng capital 2019 n
g-rate t upon
nan
income maturi
sub-br
ty
anch)
Bohai Princip Self-o 9 10 Invest Payme To be www.
Bank 5,000 3.85% 97.57 27.42 Yes Yes
Bank al-prot wned Augus Februa ment nt of collect cninfo
11
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
(Shenz ected idle t 2019 ry princi ed .com.c
hen with capital 2020 pal n
Chego floatin and
ngmia g-rate interes
o income t upon
Branc maturi
h) ty
Payme
Princip nt of
Huaxi
al-prot princi
a Bank Self-o 7 www.
ected 9 pal To be
(Fosha wned Nove Invest cninfo
Bank with 3,000 Augus and 3.90% 28.85 16.67 collect Yes Yes
n idle mber ment .com.c
floatin t 2019 interes ed
branch capital 2019 n
g-rate t upon
)
income maturi
ty
China
Guang
fa Payme
Bank Princip nt of
(Guan al-prot princi
Self-o 18 www.
gzhou ected 20 pal To be
wned Nove Invest cninfo
Devel Bank with 2,000 Augus and 3.90% 19.23 8.76 collect Yes Yes
idle mber ment .com.c
opmen floatin t 2019 interes ed
capital 2019 n
t g-rate t upon
Distric income maturi
t ty
sub-br
anch)
China
Guang
fa Payme
Bank Princip nt of
(Guan al-prot princi
Self-o 25 www.
gzhou ected 27 pal To be
wned Nove Invest cninfo
Devel Bank with 5,000 Augus and 3.85% 47.47 17.93 collect Yes Yes
idle mber ment .com.c
opmen floatin t 2019 interes ed
capital 2019 n
t g-rate t upon
Distric income maturi
t ty
sub-br
anch)
PingA Bank Princip 3,500 Self-o 22 22 Invest Payme 3.85% 33.96 14.4 To be Yes Yes www.
12
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
n Bank al-prot wned Augus Nove ment nt of collect cninfo
(Fosha ected idle t 2019 mber princi ed .com.c
n with capital 2019 pal n
Jiangw floatin and
an g-rate interes
sub-br income t upon
anch) maturi
ty
China
Payme
Guang
Princip nt of
fa
al-prot princi
Bank Self-o 4 3 www.
ected pal To be
(Fosha wned Septe Dece Invest cninfo
Bank with 3,000 and 3.85% 28.48 8.23 collect Yes Yes
n idle mber mber ment .com.c
floatin interes ed
Cheng capital 2019 2019 n
g-rate t upon
nan
income maturi
sub-br
ty
anch)
34,500
Total -- -- -- -- -- -- 352.88 173.49 -- -- -- --
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: USD’0,000
Ending
investm
Actual
Relation Related- Purchas Impairm ent as %
Initial Beginni Sold in gain/los
ship party Type of ed in ent Ending of the
Counterpa investm Start End ng Reporti s in
with the transacti derivativ Reporti allowan investm Compan
rty ent date date investm ng Reporti
Compan on or e ng ce (if ent y’s
amount ent Period ng
y not Period any) ending
Period
net
assets
China Forward
Constructi forex 14
Not 12 July
on Bank Not settleme 1,200 January 200 200 0.00% -1.78
related 2018
(Foshan nt 2019
branch) portfolio
13
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Agricultur Forward
al Bank of forex 2 1
Not
China Not settleme 1,200 August Februar 400 400 0.00% -0.12
related
(Foshan nt 2018 y 2019
branch) portfolio
Guanzhou
Ordinary
Rural
forward 22 12
Commerci Not
Not forex 600 M arch June 600 600 0.00% -5.6
al Bank related
settleme 2019 2019
(Foshan
nt
branch)
Guanzhou
Ordinary
Rural
forward 31
Commerci Not 24 April
Not forex 600 October 600 600 0.96% -29.51
al Bank related 2019
settleme 2019
(Foshan
nt
branch)
China Ordinary
Constructi forward 15
Not 9 M ay
on Bank Not forex 500 October 500 400 100 0.16% -11.51
related 2019
(Foshan settleme 2019
branch) nt
Agricultur Ordinary
al Bank of forward 14
Not 9 M ay
China Not forex 500 October 500 400 100 0.16% -11.32
related 2019
(Foshan settleme 2019
branch) nt
Total 4,600 -- -- 600 2,200 2,000 0 800 1.28% -59.84
Funding source Self-funded
Legal matters involved (if applicable) N/A
Disclosure date of board
announcement approving derivative 23 M ay 2018
investment (if any)
Disclosure date of general meeting
announcement approving derivative
investment (if any)
Analysis of risks and control measures Risk Analysis of Forward Exchange Settlement Business: 1. Risk of exchange rate
associated with derivative investments fluctuations. In the case of large fluctuations in the exchange rate, the quoted price of the
held in Reporting Period (including but bank’s forward exchange rate may be lower than the Company’s quoted exchange rate to the
not limited to market risk, liquidity customer, which will make the Company unable to lock the quoted exchange rate to the
risk, credit risk, operational risk, legal customer or the bank’s forward exchange rate may deviate from the exchange rate at the time
14
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
risk, etc.) of the Company’s actual receipt and payment, and causes exchange losses. 2. Risk of
customer default. The customer’s accounts receivable may be overdue, and the payment for
goods cannot be recovered within the predictable payback period, which will result in the
loss of the Company due to the delayed forward settlement. 3. Risk of payback prediction.
The marketing department shall made corresponding payback prediction based on customer
orders and expected orders. However, during the actual implementation process, customers
may adjust their orders and predictions, which will result in the Company’s incorrect
payback prediction and cause the risk of delayed delivery of forward exchange settlement.
Adopted Risk Control M easures: 1. The Company will strengthen the research and analysis
of the exchange rate. When the exchange rate fluctuates greatly, it will adjust the business
strategy in a timely manner to stabilize the export business and avoid exchange losses to the
utmost. 2. The M anagement System for Forward Settlement and Sales of Foreign Exchanges
reviewed and approved by the board of directors of the Company stipulates that all forward
foreign exchange settlement businesses of the Company shall be based on the normal
production and operation, and relied on specific business operations to avoid and prevent
various exchange rate risks. However, speculative transaction and interest arbitrage are not
allowed. At the same time, the system clearly defines the operating principles, approval
authority, responsible department and responsible person, internal operation procedures,
information isolation measures, internal risk reporting system, risk management procedures,
and information disclosure related to the forward settlement business as well. In fact, the
system is conducive to strengthen the management of the Company’s forward foreign
exchange settlement business and prevent investment risks. 3. In order to prevent any delay
in the forward exchange settlement, the Company will strengthen the management of
accounts receivable, actively collect receivables, and avoid any overdue receivables. In the
meantime, the Company plans to increase the export purchases and purchase corresponding
credit insurance so as to reduce the risk of default and customer default. 4. The Company’s
forward foreign exchange settlement transactions must be based on the Company’s foreign
exchange earnings prediction. Besides, the Company shall strictly control the scale of it s
forward foreign exchange settlement business, and manage all risks that the Company may
face within a controllable range. 5. The internal audit department of the Company shall check
the actual signing and execution situation of all trading contracts on a regular or irregular
basis.
1. The Company has invested various derivatives including Forward Exchange Settlement
3+3 Portfolio. This product portfolio is superior to other ordinary forward settlement
products during the same period. The first three sessions of vesting conditions of this
portfolio are: the spot exchange rate at maturity is lower than the agreed front-end exchange
Changes in market prices or fair value
rate, and the exchange settlement shall be carried out based on the agreed front -end exchange
of derivative investments in Reporting
rate; if the spot exchange rate at maturity is higher than the agreed front -end exchange rate,
Period (fair value analysis should
the Company can choose not to settle the exchange or choose to settle the exchange based on
include measurement method and
the spot exchange rate at maturity. The back-end three sessions of vesting conditions are: the
related assumptions and parameters)
spot exchange rate at maturity is lower than the agreed back-end exchange rate, and the
Company can choose not to settle the exchange or choose to settle the exchange based on the
spot exchange rate at maturity; if the spot exchange rate at maturity is higher than the agreed
back-end exchange rate, the exchange settlement shall be carried out based on the agreed
15
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
back-end exchange rate. At present, in terms of Forward Exchange Settlement 3+3 Portfolio
purchased by the Company, the spot exchange rates at maturity are all higher than the agreed
front-end exchange rates, and the Company chooses not to exercise the right. Therefore, the
product’s fair value has not changed.
2. The Company has invested ordinary forward exchange settlement product and the
exchange settlement shall be carried out in accordance with the currency, amount and
exchange rate stipulated in the forward exchange settlement contract, and the fair value of
the product will change.
M ajor changes in accounting policies
and specific accounting principles
adopted for derivative investments in N/A
Reporting Period compared to last
reporting period
The independent directors of the Company are of the opinion that during the Reporting
Period, the Company carried out forward forex settlement in strict compliance with the
Company Law, the Regulations of the People’s Bank of China on Foreign Exchange
Opinion of independent directors on Settlement, Sale and Payment and the Company’s M anagement Rules for Forward Foreign
derivative investments and risk control Exchange Settlement and Sale, among others, as well as within the Board’s authorization.
Such trading is primarily aimed to prevent exchange rate fluctuations from impacting the
Company’s export business and operating earnings, with no speculative trading involved. It
is a necessity, and the risk is well under control.
VII Communications with the Investment Community such as Researches, Inquiries and
Inte rvie ws during the Reporting Period
√ Applicable □ Not applicable
Type of communication Index to main information
Date Way of communication
party communicated
2 September 2019 By one-on-one meeting Institution Cninf-Interactive-Investor Relations
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
16
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 September 2019
Unit: RM B
Item 30 September 2019 31 December 2018
Current assets:
M onetary capital 1,038,625,465.23 896,646,719.87
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 117,332,228.14 107,506,613.50
Accounts receivable 715,591,814.02 834,420,596.05
Accounts receivable financing
Prepayments 12,297,675.47 13,811,905.18
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 26,391,846.27 21,745,690.53
Including: Interest receivable 7,827,159.65 5,152,364.04
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 651,340,109.93 767,319,599.00
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
17
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Other current assets 864,628,092.32 864,093,663.30
Total current assets 3,426,207,231.38 3,505,544,787.43
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 897,716,590.20
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 180,213,036.07 182,458,559.69
Investments in other equity
939,350,512.41
instruments
Other non-current financial assets
Investment property
Fixed assets 578,059,529.88 512,106,912.39
Construction in progress 171,553,570.26 224,624,447.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 169,403,736.89 172,725,277.21
R&D expense
Goodwill
Long-term prepaid expense 7,691,746.38 6,852,985.35
Deferred income tax assets 33,602,986.45 37,831,704.45
Other non-current assets 6,829,987.60 48,305,435.42
Total non-current assets 2,086,705,105.94 2,082,621,911.87
Total assets 5,512,912,337.32 5,588,166,699.30
Current liabilities:
Short-term borrowings
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities 2,625,600.00
Financial liabilities at fair value
477,200.00
through profit or loss
Derivative financial liabilities
18
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Notes payable 419,896,446.04 452,683,676.97
Accounts payable 451,398,326.85 532,597,143.95
Advances from customers 51,392,925.18 43,850,788.04
Contractual liabilities
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 65,113,082.24 96,088,621.59
Taxes payable 16,204,972.79 25,354,466.37
Other payables 48,077,759.10 43,115,011.68
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,054,709,112.20 1,194,166,908.60
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 38,750.37 155,000.31
19
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Deferred income tax liabilities 59,675,597.34 52,530,509.00
Other non-current liabilities
Total non-current liabilities 59,714,347.71 52,685,509.31
Total liabilities 1,114,423,459.91 1,246,852,417.91
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 158,608,173.07 158,608,173.07
Less: Treasury stock
Other comprehensive income 338,139,699.18 297,667,872.80
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
General reserve
Retained earnings 1,666,599,018.72 1,654,181,032.39
Total equity attributable to owners of
4,372,149,231.17 4,319,259,418.46
the Company as the parent
Non-controlling interests 26,339,646.24 22,054,862.93
Total owners’ equity 4,398,488,877.41 4,341,314,281.39
Total liabilities and owners’ equity 5,512,912,337.32 5,588,166,699.30
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
2. Balance Sheet of the Company as the Parent
Unit: RM B
Item 30 September 2019 31 December 2018
Current assets:
M onetary capital 977,640,664.63 848,949,693.91
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 112,920,307.14 104,945,398.61
Accounts receivable 689,203,898.48 795,897,932.65
20
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Accounts receivable financing
Prepayments 10,690,306.76 25,444,445.34
Other receivables 53,009,127.43 43,538,848.72
Including: Interest receivable 7,827,159.65 5,152,364.04
Dividends receivable
Inventories 575,936,836.56 692,681,479.03
Contractual assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 862,211,256.36 856,504,839.81
Total current assets 3,281,612,397.36 3,367,962,638.07
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 897,716,590.20
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 464,006,138.33 466,251,661.95
Investments in other equity
939,350,512.41
instruments
Other non-current financial assets
Investment property
Fixed assets 520,809,674.90 427,947,613.74
Construction in progress 168,539,320.30 222,570,503.14
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 126,592,816.10 129,452,067.42
R&D expense
Goodwill
Long-term prepaid expense 5,184,296.98 5,106,268.25
Deferred income tax assets 31,390,774.48 35,908,741.15
Other non-current assets 5,190,287.60 46,852,235.42
Total non-current assets 2,261,063,821.10 2,231,805,681.27
21
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Total assets 5,542,676,218.46 5,599,768,319.34
Current liabilities:
Short-term borrowings
Trading financial liabilities 2,625,600.00
Financial liabilities at fair value
477,200.00
through profit or loss
Derivative financial liabilities
Notes payable 419,896,446.04 452,683,676.97
Accounts payable 584,693,750.70 681,490,174.69
Advances from customers 48,018,693.90 41,912,301.85
Contractual liabilities
Payroll payable 54,090,069.48 84,220,746.16
Taxes payable 17,278,471.94 17,528,644.83
Other payables 160,789,518.61 114,073,355.23
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,287,392,550.67 1,392,386,099.73
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities 59,675,597.34 52,530,509.00
Other non-current liabilities
Total non-current liabilities 59,675,597.34 52,530,509.00
22
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Total liabilities 1,347,068,148.01 1,444,916,608.73
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 166,211,779.15 166,211,779.15
Less: Treasury stock
Other comprehensive income 338,161,718.21 297,672,884.34
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,482,432,232.89 1,482,164,706.92
Total owners’ equity 4,195,608,070.45 4,154,851,710.61
Total liabilities and owners’ equity 5,542,676,218.46 5,599,768,319.34
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement for Q3
Unit: RM B
Item Q3 2019 Q3 2018
1. Revenue 755,281,612.77 820,735,540.10
Including: Operating revenue 755,281,612.77 820,735,540.10
Interest income
Premium income
Handling charge and
commission income
2. Operating costs and expenses 691,448,806.54 742,105,730.35
Including: Cost of sales 580,798,340.17 619,459,583.91
Interest expense
Handling charge and
commission expense
Surrenders
Net claims paid
Net amount provided as
policy reserve
Expenditure on policy
23
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
dividends
Reinsurance premium
expense
Taxes and surcharges 8,935,144.14 7,110,901.52
Selling expense 56,301,280.46 67,625,662.29
Administrative expense 38,716,494.36 45,731,759.35
R&D expense 21,396,838.92 16,316,330.46
Finance costs -14,699,291.51 -14,138,507.18
Including: Interest
expense
Interest
5,992,546.47 2,812,177.03
income
Add: Other income 1,141,840.25 26,312,578.09
Investment income (“-” for loss) 11,278,789.23 25,411,137.34
Including: Share of profit or loss
90,350.15 6,335,680.97
of joint ventures and associates
Derecognition income of financial
assets measured at amortized cost
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-1,152,200.00 -4,819,200.00
for loss)
Credit impairment loss (“-” for
2,786,071.54
loss)
Asset impairment loss (“-” for loss) 82,041.70 -15,320,954.56
Asset disposal income (“-” for
-78,039.44
loss)
3. Operating profit (“-” for loss) 77,969,348.95 110,135,331.18
Add: Non-operating income 730,448.59 370,428.32
Less: Non-operating expense 2,202,281.98 692,442.51
4. Profit before tax (“-” for loss) 76,497,515.56 109,813,316.99
Less: Income tax expense 11,345,388.86 15,486,002.15
5. Net profit (“-” for net loss) 65,152,126.70 94,327,314.84
5.1 By operating continuity
5.1.1 Net profit from continuing
65,152,126.70 94,327,314.84
operations (“-” for net loss)
24
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
63,440,260.60 94,389,387.69
owners of the Company as the parent
5.2.2 Net profit attributable to
1,711,866.10 -62,072.85
non-controlling interests
6. Other comprehensive income, net of
-21,164,061.27 -10,352,713.29
tax
Attributable to owners of the Company
-21,164,061.27 -10,352,713.29
as the parent
6.1 Items that will not be
-21,132,875.94
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
-21,132,875.94
investments in other equity instruments
6.1.4 Changes in the fair value of
the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to
-31,185.33 -10,352,713.29
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -10,354,561.67
assets
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.6 Allowance for credit
impairments in investments in other debt
25
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from the
translation of foreign
-31,185.33 1,848.38
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
interests
7. Total comprehensive income 43,988,065.43 83,974,601.55
Attributable to owners of the Company
42,276,199.33 84,036,674.40
as the parent
Attributable to non-controlling
1,711,866.10 -62,072.85
interests
8. Earnings per share
8.1 Basic earnings per share 0.0453 0.0675
8.2 Diluted earnings per share 0.0453 0.0675
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees bef ore
the combinations was RM B0.00, with the amount for the same period of last year being RM B0.00.
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
4. Income Statement of the Company as the Parent for Q3
Unit: RM B
Item Q3 2019 Q3 2018
1. Operating revenue 740,099,125.98 806,761,538.76
Less: Cost of sales 584,073,731.53 629,785,452.97
Taxes and surcharges 7,830,107.52 4,807,080.85
Selling expense 51,020,010.55 59,544,684.51
Administrative expense 33,727,059.40 42,369,376.35
R&D expense 19,137,384.89 15,372,638.99
Finance costs -14,606,198.25 -13,703,097.66
Including: Interest expense
Interest income 5,888,747.23 2,367,541.27
Add: Other income 1,003,660.25 24,812,879.00
Investment income (“-” for loss) 11,278,789.23 57,357,355.93
Including: Share of profit or 90,350.15 6,335,680.97
26
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
loss of joint ventures and associates
Derecognition income of
financial assets measured at amortized
cost
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-1,152,200.00 -4,819,200.00
for loss)
Credit impairment loss (“-” for
2,533,358.60
loss)
Asset impairment loss (“-” for
82,041.70 -15,359,989.07
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 72,662,680.12 130,576,448.61
Add: Non-operating income 674,724.20 330,267.62
Less: Non-operating expense 2,202,281.98 192,865.77
3. Profit before tax (“-” for loss) 71,135,122.34 130,713,850.46
Less: Income tax expense 9,973,689.36 12,679,416.15
4. Net profit (“-” for net loss) 61,161,432.98 118,034,434.31
4.1 Net profit from continuing
61,161,432.98 118,034,434.31
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-21,132,875.94 -10,354,561.67
tax
5.1 Items that will not be reclassified
-21,132,875.94
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
5.1.3 Changes in the fair value of
-21,132,875.94
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
27
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
5.2 Items that will be reclassified to
-10,354,561.67
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -10,354,561.67
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 40,028,557.04 107,679,872.64
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
5. Consolidated Income Statement for Q1~Q3
Unit: RM B
Item Q1~Q3 2019 Q1~Q3 2018
1. Revenue 2,442,466,273.63 2,885,514,830.09
Including: Operating revenue 2,442,466,273.63 2,885,514,830.09
Interest income
Premium income
28
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Handling charge and
commission income
2. Operating costs and expenses 2,220,522,130.06 2,538,665,681.86
Including: Cost of sales 1,878,135,053.94 2,198,751,451.80
Interest expense
Handling charge and
commission expense
Surrenders
Net claims paid
Net amount provided as
policy reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 29,771,412.88 29,073,419.76
Selling expense 179,711,846.84 171,542,672.76
Administrative expense 106,253,674.05 131,262,298.09
R&D expense 51,257,471.53 35,259,823.24
Finance costs -24,607,329.18 -27,223,983.79
Including: Interest
expense
Interest
16,370,875.76 7,691,616.90
income
Add: Other income 6,665,710.25 27,330,963.26
Investment income (“-” for loss) 55,118,448.97 49,921,007.70
Including: Share of profit or loss
875,062.13 6,515,462.53
of joint ventures and associates
Derecognition income of financial
assets measured at amortized cost
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-2,148,400.00 -4,819,200.00
for loss)
Credit impairment loss (“-” for
1,749,099.60
loss)
Asset impairment loss (“-” for loss) -12,157,202.51 -31,327,824.39
29
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Asset disposal income (“-” for
-78,039.44
loss)
3. Operating profit (“-” for loss) 271,171,799.88 387,876,055.36
Add: Non-operating income 2,672,321.16 2,040,284.75
Less: Non-operating expense 2,680,673.95 884,191.93
4. Profit before tax (“-” for loss) 271,163,447.09 389,032,148.18
Less: Income tax expense 38,512,677.43 62,530,147.85
5. Net profit (“-” for net loss) 232,650,769.66 326,502,000.33
5.1 By operating continuity
5.1.1 Net profit from continuing
232,650,769.66 326,502,000.33
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
230,715,986.35 323,666,843.51
owners of the Company as the parent
5.2.2 Net profit attributable to
1,934,783.31 2,835,156.82
non-controlling interests
6. Other comprehensive income, net of
40,471,826.38 -333,328,064.68
tax
Attributable to owners of the Company
40,471,826.38 -333,328,064.68
as the parent
6.1 Items that will not be
40,488,833.87
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
40,488,833.87
investments in other equity instruments
6.1.4 Changes in the fair value of
the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to
-17,007.49 -333,328,064.68
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
30
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -333,327,471.37
assets
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.6 Allowance for credit
impairments in investments in other debt
obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from the
translation of foreign
-17,007.49 -593.31
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
interests
7. Total comprehensive income 273,122,596.04 -6,826,064.35
Attributable to owners of the Company
271,187,812.73 -9,661,221.17
as the parent
Attributable to non-controlling
1,934,783.31 2,835,156.82
interests
8. Earnings per share
8.1 Basic earnings per share 0.1649 0.2313
8.2 Diluted earnings per share 0.1649 0.2313
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees bef ore
the combinations was RM B0.00, with the amount for the same period of last year being RM B0.00.
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RM B
Item Q1~Q3 2019 Q1~Q3 2018
1. Operating revenue 2,375,758,293.94 2,811,049,983.52
31
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Less: Cost of sales 1,868,485,313.34 2,217,179,773.50
Taxes and surcharges 25,780,092.13 22,021,486.96
Selling expense 165,043,294.64 150,661,877.23
Administrative expense 92,197,397.18 119,997,288.25
R&D expense 47,267,023.97 33,985,885.56
Finance costs -24,277,401.37 -26,358,156.78
Including: Interest expense
Interest income 16,013,181.20 6,799,775.32
Add: Other income 6,327,530.25 25,374,222.06
Investment income (“-” for loss) 55,448,677.17 78,395,196.25
Including: Share of profit or
875,062.13 6,515,462.53
loss of joint ventures and associates
Derecognition income of
financial assets measured at amortized
cost
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-2,148,400.00 -4,819,200.00
for loss)
Credit impairment loss (“-” for
2,434,197.31
loss)
Asset impairment loss (“-” for
-11,722,378.21 -30,584,644.12
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 251,602,200.57 361,927,402.99
Add: Non-operating income 2,423,216.08 1,902,719.21
Less: Non-operating expense 2,590,176.44 356,969.86
3. Profit before tax (“-” for loss) 251,435,240.21 363,473,152.34
Less: Income tax expense 32,869,714.22 45,627,355.24
4. Net profit (“-” for net loss) 218,565,525.99 317,845,797.10
4.1 Net profit from continuing
218,565,525.99 317,845,797.10
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
40,488,833.87 -333,327,471.37
tax
32
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
5.1 Items that will not be reclassified
40,488,833.87
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
40,488,833.87
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to
-333,327,471.37
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -333,327,471.37
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 259,054,359.86 -15,481,674.27
7. Earnings per share
7.1 Basic earnings per share
33
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
7.2 Diluted earnings per share
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RM B
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
2,592,925,263.78 2,646,375,234.95
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 76,915,672.88 109,951,990.96
Cash generated from other operating
101,313,019.67 71,257,187.00
activities
Subtotal of cash generated from
2,771,153,956.33 2,827,584,412.91
operating activities
Payments for commodities and
1,641,623,556.46 1,462,982,460.41
services
Net increase in loans and advances to
customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
34
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
insurance contracts
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 472,172,124.51 501,231,015.45
Taxes paid 145,610,049.05 195,992,337.25
Cash used in other operating
175,801,004.61 156,937,503.52
activities
Subtotal of cash used in operating
2,435,206,734.63 2,317,143,316.63
activities
Net cash generated from/used in
335,947,221.70 510,441,096.28
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 21,000,000.00 160,000,000.00
Investment income 60,410,002.14 45,348,316.28
Net proceeds from disposal of fixed
assets, intangible assets and other 40,834.00 507,597.20
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
81,450,836.14 205,855,913.48
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 33,495,022.79 136,815,616.01
long-lived assets
Payments for investments
Net increase in pledged loans granted
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
89,951,527.02
activities
Subtotal of cash used in investing
33,495,022.79 226,767,143.03
activities
Net cash generated from/used in
47,955,813.35 -20,911,229.55
investing activities
3. Cash flows from financing activities:
Capital contributions received 2,350,000.00
35
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Including: Capital contributions by
2,350,000.00
non-controlling interests to subsidiaries
Increase in borrowings obtained
Cash generated from other financing
activities
Subtotal of cash generated from
2,350,000.00
financing activities
Repayment of borrowings
Payments for interest and dividends 218,298,000.02 405,163,764.00
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
218,298,000.02 405,163,764.00
activities
Net cash generated from/used in
-215,948,000.02 -405,163,764.00
financing activities
4. Effect of foreign exchange rate
531,705.94 5,036,692.65
changes on cash and cash equivalents
5. Net increase in cash and cash
168,486,740.97 89,402,795.38
equivalents
Add: Cash and cash equivalents,
795,285,756.38 570,184,208.96
beginning of the period
6. Cash and cash equivalents, end of the
963,772,497.35 659,587,004.34
period
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RM B
Item Q1~Q3 2019 Q1~Q3 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
2,496,081,015.34 2,555,607,130.21
and rendering of services
Tax rebates 76,904,234.22 109,928,355.77
Cash generated from other operating
87,466,294.97 57,831,655.01
activities
Subtotal of cash generated from
2,660,451,544.53 2,723,367,140.99
operating activities
36
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Payments for commodities and
1,712,948,237.15 1,638,169,956.39
services
Cash paid to and for employees 357,209,702.93 311,008,108.99
Taxes paid 109,330,385.86 124,616,603.82
Cash used in other operating
158,745,798.35 141,247,884.47
activities
Subtotal of cash used in operating
2,338,234,124.29 2,215,042,553.67
activities
Net cash generated from/used in
322,217,420.24 508,324,587.32
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 21,000,000.00 140,000,000.00
Investment income 60,740,230.34 73,422,562.27
Net proceeds from disposal of fixed
assets, intangible assets and other 40,330.00
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
81,780,560.34 213,422,562.27
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 31,023,609.46 129,942,619.86
long-lived assets
Payments for investments
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing
89,951,527.02
activities
Subtotal of cash used in investing
31,023,609.46 219,894,146.88
activities
Net cash generated from/used in
50,756,950.88 -6,471,584.61
investing activities
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
37
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Repayment of borrowings
Payments for interest and dividends 218,298,000.02 405,163,764.00
Cash used in other financing
activities
Sub-total of cash used in financing
218,298,000.02 405,163,764.00
activities
Net cash generated from/used in
-218,298,000.02 -405,163,764.00
financing activities
4. Effect of foreign exchange rate
522,595.23 5,004,415.19
changes on cash and cash equivalents
5. Net increase in cash and cash
155,198,966.33 101,693,653.90
equivalents
Add: Cash and cash equivalents,
747,588,730.42 502,169,100.40
beginning of the period
6. Cash and cash equivalents, end of the
902,787,696.75 603,862,754.30
period
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New Standards
Governing Financial Instruments, Revenue or Leases from 2019
√ Applicable □ Not applicable
Consolidated balance sheet
Unit: RM B
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
M onetary capital 896,646,719.87 896,646,719.87
Settlement reserve
Interbank loans granted
Trading financial assets 6,000,000.00 6,000,000.00
Financial assets at fair
value through profit or loss
Derivative financial assets
Notes receivable 107,506,613.50 107,506,613.50
Accounts receivable 834,420,596.05 834,420,596.05
Accounts receivable
38
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
financing
Prepayments 13,811,905.18 13,811,905.18
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 21,745,690.53 21,745,690.53
Including: Interest
5,152,364.04 5,152,364.04
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 767,319,599.00 767,319,599.00
Contractual assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 864,093,663.30 864,093,663.30
Total current assets 3,505,544,787.43 3,511,544,787.43 6,000,000.00
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Available-for-sale financial
897,716,590.20 -897,716,590.20
assets
Investments in other debt
obligations
Held-to-maturity
investments
Long-term receivables
Long-term equity
182,458,559.69 182,458,559.69
investments
Investments in other equity
891,716,590.20 891,716,590.20
instruments
Other non-current financial
assets
39
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Investment property
Fixed assets 512,106,912.39 512,106,912.39
Construction in progress 224,624,447.16 224,624,447.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 172,725,277.21 172,725,277.21
R&D expense
Goodwill
Long-term prepaid
6,852,985.35 6,852,985.35
expense
Deferred income tax assets 37,831,704.45 37,831,704.45
Other non-current assets 48,305,435.42 48,305,435.42
Total non-current assets 2,082,621,911.87 2,076,621,911.87 -6,000,000.00
Total assets 5,588,166,699.30 5,588,166,699.30
Current liabilities:
Short-term borrowings
Borrowings from central
bank
Interbank loans obtained
Trading financial liabilities 477,200.00 477,200.00
Financial liabilities at fair
477,200.00 -477,200.00
value through profit or loss
Derivative financial
liabilities
Notes payable 452,683,676.97 452,683,676.97
Accounts payable 532,597,143.95 532,597,143.95
Advances from customers 43,850,788.04 43,850,788.04
Contractual liabilities
Financial assets sold under
repurchase agreements
Customer deposits and
interbank deposits
Payables for acting trading
of securities
Payables for underwriting
of securities
Payroll payable 96,088,621.59 96,088,621.59
40
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Taxes payable 25,354,466.37 25,354,466.37
Other payables 43,115,011.68 43,115,011.68
Including: Interest
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,194,166,908.60 1,194,166,908.60
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 155,000.31 155,000.31
Deferred income tax
52,530,509.00 52,530,509.00
liabilities
Other non-current
liabilities
Total non-current liabilities 52,685,509.31 52,685,509.31
Total liabilities 1,246,852,417.91 1,246,852,417.91
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
41
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Including: Preferred
shares
Perpetual
bonds
Capital reserves 158,608,173.07 158,608,173.07
Less: Treasury stock
Other comprehensive
297,667,872.80 297,667,872.80
income
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
General reserve
Retained earnings 1,654,181,032.39 1,654,181,032.39
Total equity attributable to
owners of the Company as 4,319,259,418.46 4,319,259,418.46
the parent
Non-controlling interests 22,054,862.93 22,054,862.93
Total owners’ equity 4,341,314,281.39 4,341,314,281.39
Total liabilities and owners’
5,588,166,699.30 5,588,166,699.30
equity
Notes to the adjustment
The M inistry of Finance enacted the revised Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of
Financial Instruments (CK [2017] No. 7), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (CK
[2017] No. 8), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (CK [2017] No. 9) and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments (CK [2017] No. 14) in 2017. The Company starts to
carry out above new financial accounting standards since 1 January 2019. In line with the convergence regulation, the information of
comparative period is unnecessary to be adjusted and for the difference with former standards when the new standards are carried out
on the first day, the beginning retained earnings and other comprehensive income for the Reporting Period shall be retroactively
adjusted.
Those originally recorded into “available-for-sale financial assets” are currently recorded into “trading financial assets” and
“investments in other equity instruments”; those originally recorded into “Financial liabilities at fair value through profit or loss” are
currently recorded into “trading financial liabilities”.
Balance sheet of the Company as the parent
Unit: RM B
Item 31 December 2018 1 January 2019 Adjustment
Current assets:
M onetary capital 848,949,693.91 848,949,693.91
Trading financial assets 6,000,000.00 6,000,000.00
Financial assets at fair
value through profit or loss
42
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Derivative financial assets
Notes receivable 104,945,398.61 104,945,398.61
Accounts receivable 795,897,932.65 795,897,932.65
Accounts receivable
financing
Prepayments 25,444,445.34 25,444,445.34
Other receivables 43,538,848.72 43,538,848.72
Including: Interest
5,152,364.04 5,152,364.04
receivable
Dividends
receivable
Inventories 692,681,479.03 692,681,479.03
Contractual assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 856,504,839.81 856,504,839.81
Total current assets 3,367,962,638.07 3,373,962,638.07 6,000,000.00
Non-current assets:
Investments in debt
obligations
Available-for-sale financial
897,716,590.20 -897,716,590.20
assets
Investments in other debt
obligations
Held-to-maturity
investments
Long-term receivables
Long-term equity
466,251,661.95 466,251,661.95
investments
Investments in other equity
891,716,590.20 891,716,590.20
instruments
Other non-current financial
assets
Investment property
Fixed assets 427,947,613.74 427,947,613.74
Construction in progress 222,570,503.14 222,570,503.14
43
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 129,452,067.42 129,452,067.42
R&D expense
Goodwill
Long-term prepaid
5,106,268.25 5,106,268.25
expense
Deferred income tax assets 35,908,741.15 35,908,741.15
Other non-current assets 46,852,235.42 46,852,235.42
Total non-current assets 2,231,805,681.27 2,225,805,681.27 -6,000,000.00
Total assets 5,599,768,319.34 5,599,768,319.34
Current liabilities:
Short-term borrowings
Trading financial liabilities 477,200.00 477,200.00
Financial liabilities at fair
477,200.00 -477,200.00
value through profit or loss
Derivative financial
liabilities
Notes payable 452,683,676.97 452,683,676.97
Accounts payable 681,490,174.69 681,490,174.69
Advances from customers 41,912,301.85 41,912,301.85
Contractual liabilities
Payroll payable 84,220,746.16 84,220,746.16
Taxes payable 17,528,644.83 17,528,644.83
Other payables 114,073,355.23 114,073,355.23
Including: Interest
payable
Dividends
payable
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,392,386,099.73 1,392,386,099.73
44
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax
52,530,509.00 52,530,509.00
liabilities
Other non-current
liabilities
Total non-current liabilities 52,530,509.00 52,530,509.00
Total liabilities 1,444,916,608.73 1,444,916,608.73
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 166,211,779.15 166,211,779.15
Less: Treasury stock
Other comprehensive
297,672,884.34 297,672,884.34
income
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,482,164,706.92 1,482,164,706.92
Total owners’ equity 4,154,851,710.61 4,154,851,710.61
Total liabilities and owners’
5,599,768,319.34 5,599,768,319.34
equity
Notes to the adjustment
The M inistry of Finance enacted the revised Accounting Standards for Business Enterprises No. 22-Recognition and Measurement of
Financial Instruments (CK [2017] No. 7), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (CK
[2017] No. 8), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (CK [2017] No. 9) and Accounting
45
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Standards for Business Enterprises No. 37-Presentation of Financial Instruments (CK [2017] No. 14) in 2017. The Company starts to
carry out above new financial accounting standards since 1 January 2019. In line with the convergence regulation, the information of
comparative period is unnecessary to be adjusted and for the difference with former standards when the new standards are carried out
on the first day, the beginning retained earnings and other comprehensive income for the Reporting Period shall be retroactively
adjusted.
Those originally recorded into “available-for-sale financial assets” are currently recorded into “trading financial assets” and
“investments in other equity instruments”; those originally recorded into “Financial liabilities at fair value through profit or loss” are
currently recorded into “trading financial liabilities”.
2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New Standards
Governing Financial Instruments or Leases from 2019
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd.
29 October 2019
46