Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2018 FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
FIRST QUARTER REPORT 2018
April 2018
Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2018 Part I Important Notes
The Board of Directors (or the “Board”), the Supervisory Board as well as the Directors, Supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (inclusive of its consolidated subsidiaries, the “Company”; exclusive of its subsidiaries, the “Parent Company”, except where the context otherwise requires) hereby guarantee the factuality, accuracy and completeness of the contents of this Report, and shall be jointly and severally liable for any misrepresentations, misleading statements or material omissions in this Report. All theCompany’s Directors have attended the Board meeting for the review of this Report. He Yong, theCompany’s legal representative, Liu Xingming, theCompany’s General Manager, and Tang Qionglan, theCompany’s Chief Financial Officer (CFO) hereby guarantee that the Financial Statements carried in this Report are factual, accurate and complete.
This Report has been prepared in both Chinese and English. Should there be any discrepancies or misunderstandings between the two versions, the Chinese version shall prevail.
Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2018 Part II Key Corporate Information
I Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes√ No
|||||
|-|-|-|-|
||January-March 2018|January-March 2017|Change|
|Sales revenue (RMB)|1,123,376,512.26|1,093,649,938.81|2.72%|
|Net income attributable to shareholders of|96,552,712.99|119,874,574.94||
||||-19.46%|
|the listed company (RMB)||||
|Net income attributable to shareholders of||||
|the listed company before nonrecurring|96,033,861.87|119,491,016.83|-19.63%|
|gains and losses (RMB)||||
|Net cash flows from operating activities|124,450,627.91|-50,923,130.47||
||||344.39%|
|(RMB)||||
|Basic earnings per share (RMB/share)|0.0759|0.0942|-19.43%|
|Diluted earnings per share (RMB/share)|0.0759|0.0942|-19.43%|
|Weighted average return on equity (%)|2.00%|2.36%|-0.36%|
||March 31, 2018|December 31, 2017|Change|
|Total assets (RMB)|5,832,891,424.79|5,675,811,824.29|2.77%|
|Equity attributable to shareholders of the|4,866,480,716.15|4,779,115,459.39||
||||1.83%|
|listed company (RMB)||||

Nonrecurring gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|Note|
|Profit/loss on disposal of non-current assets (including offset asset|||
||138,319.48||
|impairment provisions)|||
|Government subsidies charged to the profit/loss for this Reporting|||
|Period (except for the government grants closely related to the|||
||525,949.98||
|business of the Company and given at a fixed quota or amount in|||
|accordance with the State’s uniform standards)|||
|Non-operating income and expense other than above|-44,777.96||
|Less: Income tax effects|97,590.50||

Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2018
||||
|-|-|-|
|Non-controlling interests effects (net of tax)|3,049.88||
|Total|518,851.12|--|

Explanation of why the Company classifies an item as a nonrecurring gain/loss according to the definition in the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Nonrecurring Gains and Losses, or reclassifies any nonrecurring gain/loss item listed in the said explanatory announcement as a recurring gain/loss:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Top 10Shareholders’ Holdings at Period-End
1. Numbers of Common Shareholders and Preferred Shareholders with Resumed Voting Rights as well as Holdings of Top 10 Shareholders
Unit: share
||||||||||
|-|-|-|-|-|-|-|-|-|
|||||Preferred shareholders with|||||
|Common shareholders at|||||||||
|||90,239||resumed voting rights at|||0||
|period-end|||||||||
|||||period-end (if any)|||||
|Top 10 shareholders|||||||||
|||Shareholding||||Pledged or frozen shares|||
|Name of|Nature of||||||||
|||percentage at|Shares||Restricted shares||||
|shareholder|shareholder|||||Status||Shares|
|||period-end (%)|||||||
|Hong Kong WahShing HoldingCompanyLimited|Foreign juridicalperson|13.47%|171,360,391||||||
|||||||Pledged||83,966,592|
|Prosperity Lamps& ComponentsLimited|Foreign juridicalperson|10.50%|133,577,143||||||
|Shenzhen RisingInvestmentDevelopmentCo., Ltd.|State-ownedjuridical person|5.12%|65,178,305||||||
|||||||Pledged||23,000,000|
|GuangdongElectronicsInformationIndustry GroupLtd.|State-ownedjuridical person|4.74%|60,357,728||||||
|||||||Pledged||29,575,287|
|Central HuijinAssetManagement Co.,|State-ownedjuridical person|2.42%|30,799,000||||||

Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2018
||||||||
|-|-|-|-|-|-|-|
|Ltd.|||||||
|EssenceInternationalSecurities (HongKong) Co., Ltd.|Foreign juridicalperson|2.03%|25,796,350||||
|Hong KongRisingInvestmentDevelopmentCo., Ltd.|Foreign juridicalperson|1.82%|23,165,684||||
|DBS Vickers(Hong Kong) LtdA/C Clients|Foreign juridicalperson|1.73%|21,979,814||||
|China MerchantsSecurities (HongKong) Co., Ltd|Foreign juridicalperson|0.86%|10,968,061||||
|Zhuang Jianyi|Foreign naturalperson|0.85%|10,821,372|8,116,029|||
|Top 10 non-restricted shareholders|||||||
||||||Type of shares||
|Name of shareholder||Non-restricted shares held at period-end|||||
||||||Type|Shares|
|Hong Kong Wah Shing HoldingCompany Limited||171,360,391|||RMB common||
|||||||171,360,391|
||||||stock||
|Prosperity Lamps & ComponentsLimited||133,577,143|||RMB common||
|||||||133,577,143|
||||||stock||
|Shenzhen Rising InvestmentDevelopment Co., Ltd.||65,178,305|||RMB common||
|||||||65,178,305|
||||||stock||
|Guangdong Electronics InformationIndustry Group Ltd.||60,357,728|||RMB common||
|||||||60,357,828|
||||||stock||
|Central Huijin Asset ManagementCo., Ltd.||30,799,000|||RMB common||
|||||||30,799,000|
||||||stock||
|Essence International Securities(Hong Kong) Co., Ltd.||25,796,350|||Domestically||
||||||listed stock for|25,796,350|
||||||foreign investors||
|Hong Kong Rising InvestmentDevelopment Co., Ltd.||23,165,684|||Domestically||
||||||listed stock for|23,165,684|
||||||foreign investors||
|DBS Vickers (Hong Kong) Ltd A/CClients||21,979,814|||Domestically||
|||||||21,979,814|
||||||listed stock for||

Foshan Electrical and Lighting Co., Ltd. First Quarter Report 2018
|||||
|-|-|-|-|
|||foreign investors||
|China Merchants Securities (HongKong) Co., Ltd|10,968,061|Domestically||
|||listed stock for|10,968,061|
|||foreign investors||
|Peng Weiyan|9,036,588|RMB common||
||||9,036,588|
|||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.|||
||Among the top 10 non-restricted shareholders, natural person shareholder Peng Weiyan holds|||
|Shareholders conducting securities||||
||0 share through common securities account, and holds 9,036,588 shares through an account|||
|margin trading (if any)||||
||of collateral securities for margin trading, where the total shares is 9,036,588.|||

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. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
Part III Significant Events
I Changes in Selected Financial Statement Items and Explanation of why
√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|March 31, 2018/January-March2018|December 31,2017/January-March2017|Change|Explanation of why|
|Notes receivable|92,278,225.76|68,368,192.41|34.97%|Increase in bank acceptance billsreceived|
|Accountsreceivable|959,570,744.31|756,291,432.56|26.88%|Increase in undue accountsreceivable from increased salesrevenue|
|Construction inprogress|219,371,338.54|162,814,991.68|34.74%|Increased investment in Gaomingplant expansion|
|Taxes payable|52,342,529.05|27,350,670.40|91.38%|Increase in VAT payable|
|Taxes and surtaxes|14,410,687.99|9,755,058.67|47.73%|Increase in surtax driven by higherVAT payable|
|Selling expense|55,410,407.71|38,400,329.73|44.30%|Increases in transportation expenseand business promotion expensedriven by growing sales|
|Finance costs|5,223,638.39|-5,743,864.20|190.94%|Increase in foreign exchange losscaused by appreciation of RMB|
|Asset impairmentlosses|6,299,423.27|22,650,361.26|-72.19%|Decrease in allowance forinventory impairment|
|Investment income|7,509,169.19|2,646,308.80|183.76%|Increase in income frominvestments in bank’s wealthmanagement products|
|Other income|355,982.00|26,000.00|1269.16%|Increase in government subsidyarising from the Company’sordinary course of business|
|Non-operatingrevenue|692,142.62|1,419,858.46|-51.25%|Decrease in government subsidyirrelevant to operating activities|
|Non-operatingexpense|72,651.12|1,009,565.36|-92.80%|Decrease in loss on disposal ofnon-current assets|
|Net incomeattributable tonon-controlling|2,600,282.32|1,930,823.27|34.67%|Increase in income ofnon-wholly-owned subsidiary|

||||||
|-|-|-|-|-|
|interests|||||
|Othercomprehensiveincome, net of tax|-9,187,456.23|78,619,675.02|-111.69%|Decrease in Guoxuan High-techshares held by the Companycaused by some sales in Q3 2017and decrease in fair value ofavailable-for-sale financial assets|
|Totalcomprehensiveincome|89,965,539.08|200,425,073.23|-55.11%||
|Net cash flowsfrom operatingactivities|124,450,627.91|-50,923,130.47|344.39%|Effect of income tax paid inJanuary-March 2017 for sale ofshareholdings|
|Net cash flowsfrom investingactivities|-54,668,249.60|-29,321,560.03|-86.44%|Increased investment in property,plant and equipment|
|Net cash flowsfrom financingactivities|0.00|- 5 , 6 6 0 , 2 9 0 .7 8|100.00%|Effect of dividends distributed bysubsidiary in January-March 2017|
|Net increase incash and cashequivalents|66,459,645.26|-85,456,559.66|177.77%|Increase in net cash flows fromoperating activities|
|Cash and cashequivalents, end ofthe period|636,643,854.22|1,393,827,082.88|-54.32%|Increase in undue bank’s wealthmanagement products|

II Progress, Influence and Solutions Associated with Significant Events
□ Applicable√ Not applicable
III Commitments that theCompany’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 Operating Result Forecast for January-June 2018
Warning of a forecast loss on or a forecast significant year-over-year change in net income for January-June 2018, as well as explanation of why:
□ Applicable√ Not applicable
V Securities Investments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VI Investments in Derivative Financial Instruments
□ Applicable√ Not applicable
No such cases in the Reporting Period.
VII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
√ Applicable□ Not applicable
|||||
|-|-|-|-|
|Date of visit|Way of visit|Type of visitor|About|
|01/04/2018|By one-on-one meeting|Institution|Cninf-Interactive-Investor Relations|
|01/18/2018|By one-on-one meeting|Institution|Cninf-Interactive-Investor Relations|

 VIII Irregularities in Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Occupation of theCompany’s Money by Its Controlling Shareholder or Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
March 31, 2018
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|636,643,854.22|570,184,208.96|
|Settlement reserve|||
|Interbank loans granted|||
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|92,278,225.76|68,368,192.41|
|Accounts receivable|959,570,744.31|756,291,432.56|
|Prepayments|30,846,692.77|33,095,313.35|
|Premiums receivable|||
|Reinsurance receivables|||
|Receivable reinsurance contract|||
|reserve|||
|Interest receivable|11,010,654.12|12,428,451.86|
|Dividends receivable|||
|Other receivables|20,627,107.58|21,215,215.15|
|Financial assets purchased under|||
|resale agreements|||
|Inventories|588,148,362.16|746,466,889.87|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|995,886,865.32|1,006,062,102.56|
|Total current assets|3,335,012,506.24|3,214,111,806.72|
|Non-current assets:|||

||||
|-|-|-|
|Loans and advances to customers|||
|Available-for-sale financial assets|1,379,774,070.47|1,390,581,536.60|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|175,977,383.25|179,414,105.14|
|Investment property|||
|Property, plant and equipment|481,932,461.91|483,520,866.64|
|Construction in progress|219,371,338.54|162,814,991.68|
|Construction materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|154,365,815.93|155,544,720.36|
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|8,124,534.65|9,088,933.56|
|Deferred income tax assets|35,850,835.80|37,675,828.79|
|Other non-current assets|42,482,478.00|43,059,034.80|
|Total non-current assets|2,497,878,918.55|2,461,700,017.57|
|Total assets|5,832,891,424.79|5,675,811,824.29|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from central bank|||
|Customer deposits and deposits from|||
|banks and other financial institutions|||
|Interbank loans obtained|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|605,469,180.54|539,303,554.54|
|Advances from customers|38,641,032.65|48,706,778.49|
|Financial assets sold under|||
|repurchase agreements|||
|Handling charges and commissions|||

||||
|-|-|-|
|payable|||
|Payroll payable|66,484,870.05|81,948,630.59|
|Taxes payable|52,342,529.05|27,350,670.40|
|Interest payable|||
|Dividends payable|||
|Other payables|43,694,442.08|40,548,489.03|
|Reinsurance payables|||
|Insurance contract reserve|||
|Payables for trading of securities|||
|Payables for underwriting of|||
|securities|||
|Liabilities directly associated with|||
|assets classified as held for sale|||
|Current portion of non-current|||
|liabilities|||
|Other current liabilities|||
|Total current liabilities|806,632,054.37|737,858,123.05|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|11,819,580.51|11,858,330.49|
|Deferred income tax liabilities|124,839,131.04|126,460,250.96|
|Other non-current liabilities|||
|Total non-current liabilities|136,658,711.55|138,318,581.45|
|Total liabilities|943,290,765.92|876,176,704.50|
|Owners’ equity:|||
|Share capital|1,272,132,868.00|1,272,132,868.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||

||||
|-|-|-|
|Capital reserves|285,821,459.07|285,821,459.07|
|Less: Treasury shares|||
|Other comprehensive income|707,419,877.55|716,607,333.78|
|Specific reserve|||
|Surplus reserves|772,953,002.36|772,953,002.36|
|General reserve|||
|Retained earnings|1,828,153,509.17|1,731,600,796.18|
|Total equity attributable to owners of|||
||4,866,480,716.15|4,779,115,459.39|
|Parent Company|||
|Non-controlling interests|23,119,942.72|20,519,660.40|
|Total owners’ equity|4,889,600,658.87|4,799,635,119.79|
|Total liabilities and owners’ equity|5,832,891,424.79|5,675,811,824.29|

 Legal representative: He Yong General manager: Liu Xingming CFO: Tang Qionglan 2. Parent Company Balance Sheet
Unit: RMB
||||
|-|-|-|
|Item|March 31, 2018|December 31, 2017|
|Current assets:|||
|Monetary assets|553,127,826.68|502,169,100.40|
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes receivable|91,778,225.76|67,268,192.41|
|Accounts receivable|938,367,563.12|747,430,159.61|
|Prepayments|65,610,359.90|70,580,941.09|
|Interest receivable|8,828,070.80|9,744,035.20|
|Dividends receivable|||
|Other receivables|54,736,862.03|42,174,877.89|
|Inventories|530,829,118.01|670,527,529.71|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|768,393,182.81|777,495,203.31|
|Total current assets|3,011,671,209.11|2,887,390,039.62|
|Non-current assets:|||

||||
|-|-|-|
|Available-for-sale financial assets|1,379,774,070.47|1,390,581,536.60|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|659,770,485.51|663,207,207.40|
|Investment property|||
|Property, plant and equipment|403,881,979.18|404,667,257.11|
|Construction in progress|217,155,426.94|161,024,975.28|
|Construction materials|||
|Proceeds from disposal of property,|||
|plant and equipment|||
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|110,960,260.10|112,251,734.86|
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|7,351,634.26|8,209,699.77|
|Deferred income tax assets|31,189,406.90|32,985,075.62|
|Other non-current assets|42,113,490.00|42,661,573.80|
|Total non-current assets|2,852,196,753.36|2,815,589,060.44|
|Total assets|5,863,867,962.47|5,702,979,100.06|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value|||
|through profit or loss|||
|Derivative financial liabilities|||
|Notes payable|||
|Accounts payable|803,527,879.75|719,912,246.75|
|Advances from customers|35,361,984.74|47,306,971.94|
|Payroll payable|43,241,321.39|60,345,714.81|
|Taxes payable|36,626,598.06|13,294,037.24|
|Interest payable|||
|Dividends payable|||
|Other payables|111,888,855.02|96,824,757.90|
|Liabilities directly associated with|||
|assets classified as held for sale|||

||||
|-|-|-|
|Current portion of non-current|||
|liabilities|||
|Other current liabilities|||
|Total current liabilities|1,030,646,638.96|937,683,728.64|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Specific payables|||
|Provisions|||
|Deferred income|11,548,330.26|11,548,330.26|
|Deferred income tax liabilities|124,839,131.04|126,460,250.96|
|Other non-current liabilities|||
|Total non-current liabilities|136,387,461.30|138,008,581.22|
|Total liabilities|1,167,034,100.26|1,075,692,309.86|
|Owners’ equity:|||
|Share capital|1,272,132,868.00|1,272,132,868.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Capital reserves|293,425,065.15|293,425,065.15|
|Less: Treasury shares|||
|Other comprehensive income|707,421,742.57|716,608,088.78|
|Specific reserve|||
|Surplus reserves|772,953,002.36|772,953,002.36|
|Retained earnings|1,650,901,184.13|1,572,167,765.91|
|Total owners’ equity|4,696,833,862.21|4,627,286,790.20|
|Total liabilities and owners’ equity|5,863,867,962.47|5,702,979,100.06|

 Legal representative: He Yong General manager: Liu Xingming CFO: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Operating revenue|1,123,376,512.26|1,093,649,938.81|
|Including: Sales revenue|1,123,376,512.26|1,093,649,938.81|
|Interest revenue|||
|Premium revenue|||
|Handling charge and commission|||
|revenue|||
|2. Cost of operating revenue|1,012,171,251.73|951,661,802.26|
|Including: Cost of sales|874,409,768.15|830,819,079.30|
|Interest expense|||
|Handling charge and commission|||
|expense|||
|Surrenders|||
|Net claims paid|||
|Net amount provided as insurance|||
|contract reserve|||
|Expenditure on policy dividends|||
|Reinsurance premium expense|||
|Taxes and surtaxes|14,410,687.99|9,755,058.67|
|Selling expense|55,410,407.71|38,400,329.73|
|Administrative expense|56,417,326.22|55,780,837.50|
|Finance costs|5,223,638.39|-5,743,864.20|
|Asset impairment losses|6,299,423.27|22,650,361.26|
|Add: Gains on changes in fair value (“-”|||
|for losses)|||
|Investment income (“-” for loss)|7,509,169.19|2,646,308.80|
|Including: Share of profit or loss of|||
||-316,136.14|2,939.30|
|joint ventures and associates|||
|Foreign exchange gains (“-” for losses)|||
|Asset disposal income (“-” for loss)|||
|Other income|355,982.00|26,000.00|
|3. Operating income (“-” for loss)|119,070,411.72|144,660,445.35|
|Add: Non-operating revenue|692,142.62|1,419,858.46|
|Less: Non-operating expense|72,651.12|1,009,565.36|

||||
|-|-|-|
|4. Pretax income (“-” for loss)|119,689,903.22|145,070,738.45|
|Less: Income tax expense|20,536,907.91|23,265,340.24|
|5. Net income (“-” for net loss)|99,152,995.31|121,805,398.21|
|5.1 Net income from continuing|||
||99,152,995.31|121,805,398.21|
|operations (“-” for net loss)|||
|5.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|Attributable to owners of Parent|||
||96,552,712.99|119,874,574.94|
|Company|||
|Attributable to non-controlling|||
||2,600,282.32|1,930,823.27|
|interests|||
|6. Other comprehensive income, net of|||
||-9,187,456.23|78,619,675.02|
|tax|||
|Attributable to owners of Parent|||
||-9,187,456.23|78,619,675.02|
|Company|||
|6.1 Items that will not be|||
|reclassified to profit or loss|||
|6.1.1 Changes in net liabilities or|||
|assets caused by remeasurements on|||
|defined benefit pension schemes|||
|6.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified to profit or loss|||
|under equity method|||
|6.2 Items that may subsequently be|||
||-9,187,456.23|78,619,675.02|
|reclassified to profit or loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified to profit or loss under|||
|equity method|||
|6.2.2 Gains/Losses on changes in|||
|fair value of available-for-sale financial|-9,186,346.21|78,619,675.02|
|assets|||
|6.2.3 Gains/Losses arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale financial|||
|assets|||
|6.2.4 Effective gains/losses on|||
|cash flow hedges|||
|6.2.5 Differences arising from|||
|translation of foreign|-1,110.02||
|currency-denominated financial|||

||||
|-|-|-|
|statements|||
|6.2.6 Other|||
|Attributable to non-controllin|g||
|interests|||
|7. Total comprehensive income|89,965,539.08|200,425,073.23|
|Attributable to owners of Paren|t87,365,256.76||
|||198,494,249.96|
|Company|||
|Attributable to non-controllin|g2,600,282.32||
|||1,930,823.27|
|interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|0.0759|0.0942|
|8.2 Diluted earnings per share|0.0759|0.0942|

 Where business mergers under the same control occurred in the current period, the net income 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.
Legal representative: He Yong General manager: Liu Xingming CFO: Tang Qionglan 4. Parent Company Income Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Sales revenue|1,067,787,968.82|1,065,186,916.21|
|Less: Cost of sales|858,449,485.00|830,329,549.74|
|Taxes and surtaxes|12,057,313.68|6,876,291.73|
|Selling expense|48,345,146.83|35,427,725.59|
|Administrative expense|51,877,588.76|49,721,540.15|
|Finance costs|5,409,152.86|-4,394,600.15|
|Asset impairment losses|5,508,500.39|21,943,712.75|
|Add: Gains on changes in fair value(“-” for losses)|||
|Investment income (“-” for loss)|5,613,752.53|2,202,183.81|
|Including: Share of profit or lossof joint ventures and associates|||
||-316,136.14|2,939.30|
|Asset disposal income (“-” forloss)|||
|Other income|355,982.00|26,000.00|
|2. Operating income (“-” for loss)|92,110,515.83|127,510,880.21|
|Add: Non-operating revenue|645,474.35|1,236,962.66|
|Less: Non-operating expense|72,650.61|706,740.75|

||||
|-|-|-|
|3. Pretax income (“-” for loss)|92,683,339.57|128,041,102.12|
|Less: Income tax expense|13,949,921.35|19,206,165.33|
|4. Net income (“-” for net loss)|78,733,418.22|108,834,936.79|
|4.1 Net income from continuing|||
||78,733,418.22|108,834,936.79|
|operations (“-” for net loss)|||
|4.2 Net income from discontinued|||
|operations (“-” for net loss)|||
|5. Other comprehensive income, net of|||
||-9,186,346.21|78,619,675.02|
|tax|||
|5.1 Items that will not be reclassified|||
|to profit or loss|||
|5.1.1 Changes in net liabilities or|||
|assets caused by re-measurements on|||
|defined benefit pension schemes|||
|5.1.2 Share of other|||
|comprehensive income of investees that|||
|will not be reclassified into profit or|||
|loss under equity method|||
|5.2 Items that may subsequently be|||
||-9,186,346.21|78,619,675.02|
|reclassified to profit or loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|will be reclassified into profit or loss|||
|under equity method|||
|5.2.2 Gains/Losses on changes in|||
||-9,186,346.21|78,619,675.02|
|fair value of available-for-sale financial|||
|assets|||
|5.2.3 Gains/Losses arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|5.2.4 Effective gains/losses on|||
|cash flow hedges|||
|5.2.5 Differences arising from|||
|translation of foreign|||
|currency-denominated financial|||
|statements|||
|5.2.6 Other|||
|6. Total comprehensive income|69,547,072.01|187,454,611.81|
|7. Earnings per share|||
|7.1 Basic earnings per share|||
|7.2 Diluted earnings per share|||

Legal representative: He Yong General manager: Liu Xingming CFO: Tang Qionglan
5. Consolidated Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||888,818,669.95|891,447,570.02|
|and rendering of services|||
|Net increase in customer deposits|||
|and deposits from banks and other|||
|financial institutions|||
|Net increase in loans 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|||
|Net increase in proceeds from|||
|disposal of financial assets at fair value|||
|through profit or loss|||
|Interest, handling charges and|||
|commissions received|||
|Net increase in interbank loans|||
|obtained|||
|Net increase in proceeds from|||
|repurchase transactions|||
|Tax rebates|14,547,468.34|24,106,127.07|
|Cash generated by other operating|||
||28,140,908.49|5,770,626.16|
|activities|||
|Subtotal of cash generated by operating|||
||931,507,046.78|921,324,323.25|
|activities|||
|Payments for commodities and|||
||520,963,882.48|552,182,800.34|
|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|||
|insurance contracts|||

||||
|-|-|-|
|Interest, handling charges and|||
|commissions paid|||
|Policy dividends paid|||
|Cash paid to and for employees|181,134,694.05|198,007,961.77|
|Taxes paid|53,369,965.83|165,193,093.74|
|Cash used in other operating|||
||51,587,876.51|56,863,597.87|
|activities|||
|Subtotal of cash used in operating|||
||807,056,418.87|972,247,453.72|
|activities|||
|Net cash flows from operating|||
||124,450,627.91|-50,923,130.47|
|activities|||
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|10,000,000.00|4,580,255.71|
|Investment income|10,035,191.59|5,202,481.38|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
|intangible assets and other long-lived|||
|assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||20,035,191.59|9,782,737.09|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|74,703,441.19|39,104,297.12|
|and other 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|||
|activities|||
|Subtotal of cash used in investing|||
||74,703,441.19|39,104,297.12|
|activities|||
|Net cash flows from investing activities|-54,668,249.60|-29,321,560.03|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||

||||
|-|-|-|
|Including: Capital contributions|||
|by non-controlling interests to|||
|subsidiaries|||
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|||
|Payments for interest and dividends||5,660,290.78|
|Including: Dividends paid by|||
|||5,660,290.78|
|subsidiaries to non-controlling interests|||
|Cash used in other financing|||
|activities|||
|Subtotal of cash used in financing|||
|||5,660,290.78|
|activities|||
|Net cash flows from financing|||
|||-5,660,290.78|
|activities|||
|4. Effect of foreign exchange rate|||
||-3,322,733.05|448,421.62|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||66,459,645.26|-85,456,559.66|
|equivalents|||
|Add: Cash and cash equivalents,|||
||570,184,208.96|1,479,283,642.54|
|beginning of the period|||
|6. Cash and cash equivalents, end of|||
||636,643,854.22|1,393,827,082.88|
|the period|||

Legal representative: He Yong General manager: Liu Xingming CFO: Tang Qionglan 6. Parent Company Cash Flow Statement
Unit: RMB
||||
|-|-|-|
|Item|January-March 2018|January-March 2017|
|1. Cash generated by or used in|||
|operating activities:|||
|Proceeds from sale of commodities|||
||852,348,438.77|862,744,439.39|
|and rendering of services|||
|Tax rebates|14,547,468.34|24,106,127.07|
|Cash generated by other operating|||
||21,047,144.75|3,825,641.43|
|activities|||
|Subtotal of cash generated by operating|887,943,051.86|890,676,207.89|

||||
|-|-|-|
|activities|||
|Payments for commodities and|||
||595,935,971.69|699,760,627.60|
|services|||
|Cash paid to and for employees|112,947,808.95|103,479,544.66|
|Taxes paid|28,100,581.05|132,294,837.84|
|Cash used in other operating|||
||44,022,548.07|50,830,424.51|
|activities|||
|Subtotal of cash used in operating|||
||781,006,909.76|986,365,434.61|
|activities|||
|Net cash flows from operating|||
||106,936,142.10|-95,689,226.72|
|activities|||
|2. Cash generated by or used in|||
|investing activities:|||
|Proceeds from disinvestments|10,000,000.00|4,580,255.71|
|Investment income|10,035,191.59|19,424,371.39|
|Net proceeds from disposal of|||
|property, plant and equipment,|||
|intangible assets and other long-lived|||
|assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated by other investing|||
|activities|||
|Subtotal of cash generated by investing|||
||20,035,191.59|24,004,627.10|
|activities|||
|Payments for acquisition of property,|||
|plant and equipment, intangible assets|72,690,980.48|33,145,429.52|
|and other long-lived assets|||
|Payments for investments|||
|Net payments for acquisition of|||
|subsidiaries and other business units|||
|Cash used in other investing|||
|activities|||
|Subtotal of cash used in investing|||
||72,690,980.48|33,145,429.52|
|activities|||
|Net cash flows from investing activities|-52,655,788.89|-9,140,802.42|
|3. Cash generated by or used in|||
|financing activities:|||
|Capital contributions received|||
|Increase in borrowings obtained|||
|Net proceeds from issuance of bonds|||

||||
|-|-|-|
|Cash generated by other financing|||
|activities|||
|Subtotal of cash generated by financing|||
|activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|||
|Cash used in other financing|||
|activities|||
|Sub-total of cash used in financing|||
|activities|||
|Net cash flows from financing|||
|activities|||
|4. Effect of foreign exchange rate|||
||-3,321,626.93|448,421.62|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||50,958,726.28|-104,381,607.52|
|equivalents|||
|Add: Cash and cash equivalents,|||
||502,169,100.40|1,235,417,964.88|
|beginning of the period|||
|6. Cash and cash equivalents, end of|||
||553,127,826.68|1,131,036,357.36|
|the period|||

Legal representative: He Yong General manager: Liu Xingming CFO: Tang Qionglan II IndependentAuditor’s Report
Indicate by tick mark whether the Q1 financial statements have been audited by an independent auditor.
□Yes√ No
The Q1 financial statements have not been audited by such an auditor.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd. April 26, 2018