Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 FOSHAN ELECTRICAL AND LIGHTING CO., LTD. THIRD QUARTER REPORT 2018
October 2018
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 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”, except where the context otherwise 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 theCompany’s directors have attended the Board meeting for the review of this Report and its summary.
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 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.
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 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 2018||31 December 2017||Change (%)||
|Total assets (RMB)|5,655,661,465.4||9 5,675,811,824.29||-0.36%||
|Equity attributable to the listed|4,350,922,524.6||5 4,779,115,459.39||||
||||||-8.96%||
|company’s shareholders (RMB)|||||||
||Q3 2018|YoY change (%)||Q1-Q3 2018||YoY change (%)|
|Operating revenue (RMB)|820,735,540.10|-11.40%||2,885,514,830.09||-2.19%|
|Net profit attributable to the listed|94,389,387.69|||323,666,843.51|||
|||-79.03%||||-52.30%|
|company’s shareholders (RMB)|||||||
|Net profit attributable to the listed|||||||
|company’s shareholders before|94,550,677.32|43.79%||322,578,914.03||10.12%|
|exceptional items (RMB)|||||||
|Net cash generated from/used in||||510,441,096.28|||
||--|--||||591.72%|
|operating activities (RMB)|||||||
|Basic earnings per share|0.0675|||0.2313|||
|||-79.01%||||-52.30%|
|(RMB/share)|||||||
|Diluted earnings per share|0.0675|||0.2313|||
|||-79.01%||||-52.30%|
|(RMB/share)|||||||
|Weighted average return on equity|||||||
||1.66%|-6.77%||6.98%||-6.44%|
|(%)|||||||

Exceptional gains and losses:
√ Applicable□ Not applicable
Unit: RMB
||||
|-|-|-|
|Item|Q1-Q3 2018|Note|
|Gain or loss on disposal of non-current assets (inclusive of|||
||-137,807.23||
|impairment allowance write-offs)|||
|Government subsidies charged to current profit or loss (exclusive|||
|of government subsidies given in the Company’s ordinary course|1,078,870.94||
|of business at fixed quotas or amounts as per government’s|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|uniform standards)|||
|Non-operating income and expense other than above|136,989.67||
|Less: Income tax effects|114,938.42||
|Non-controlling interests effects (net of tax)|-124,814.52||
|Total|1,087,929.48|--|

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 thePublic—Exceptional Gain/Loss Items:
□ Applicable√ Not applicable
No such cases for the Reporting Period.
II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2018 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||91,412||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 WahShing HoldingCompany Limited|Foreign legalperson|13.47%|188,496,430||||||
|||||||In pledge||92,363,251|
|Prosperity Lamps& ComponentsLimited|Foreign legalperson|10.50%|146,934,857||||||
|Shenzhen RisingInvestmentDevelopment Co.,Ltd.|State-owned legalperson|5.12%|71,696,136||||||
|||||||In pledge||28,300,000|
|GuangdongElectronicsInformationIndustry Group Ltd.|State-owned legalperson|4.74%|66,393,501||||||
|||||||In pledge||32,532,815|
|Central Huijin|State-owned legal|2.42%|33,878,900||||||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
|||||||
|-|-|-|-|-|-|
|Asset ManagementCo., Ltd.|person|||||
|EssenceInternationalSecurities (HongKong) Limited|Foreign legalperson|2.09%|29,313,386|||
|Rising InvestmentDevelopmentLimited|Foreign legalperson|1.82%|25,482,252|||
|DBS Vickers (HongKong) Ltd A/CClients|Foreign legalperson|1.58%|22,102,137|||
|China MerchantsSecurities (HK)Co., Limited|Foreign legalperson|0.88%|12,381,736|||
|Peng Weiyan|Foreign naturalperson|0.86%|12,032,113|||
|Top 10 unrestricted shareholders||||||
|||||Shares by type||
|Name of shareholder||Unrestricted shares||||
|||||Type|Shares|
|Hong Kong Wah Shing HoldingCompany Limited||188,496,430||RMB-denominate||
||||||188,496,430|
|||||d ordinary stock||
|Prosperity Lamps & ComponentsLimited||146,934,857||RMB-denominate||
||||||146,934,857|
|||||d ordinary stock||
|Shenzhen Rising InvestmentDevelopment Co., Ltd.||71,696,136||RMB-denominate||
||||||71,696,136|
|||||d ordinary stock||
|Guangdong Electronics InformationIndustry Group Ltd.||66,393,501||RMB-denominate||
||||||66,393,501|
|||||d ordinary stock||
|Central Huijin Asset Management Co.,Ltd.||33,878,900||RMB-denominate||
||||||33,878,900|
|||||d ordinary stock||
|Essence International Securities (HongKong) Limited||29,313,386||Domestically||
|||||listed foreign|29,313,386|
|||||stock||
|Rising Investment DevelopmentLimited||25,482,252||Domestically||
|||||listed foreign|25,482,252|
|||||stock||
|DBS Vickers (Hong Kong) Ltd A/CClients||22,102,137||Domestically||
|||||listed foreign|22,102,137|
|||||stock||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
|||||
|-|-|-|-|
|China Merchants Securities (HK) Co.,Limited|12,381,736|Domestically||
|||listed foreign|12,381,736|
|||stock||
|Peng Weiyan|12,032,113|RMB-denominate||
||||12,032,113|
|||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 Measures for|||
||the Acquisition of Listed Companies.|||
||Among the top 10 unrestricted shareholders, natural person Peng Weiyan holds 0 shares in the|||
|Top 10 ordinary shareholders involved|Company through her common stock accounts and 12,032,113 shares in the Company|||
|in securities margin trading (if any)|through her accounts of collateral securities for margin trading, representing a total holding of|||
||12,032,113 shares in the Company.|||

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.
□ Yea√ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable√ Not applicable
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 Part III Significant Events
I Changes in Selected Consolidated Financial Statement Line Items and Explanation of why√ Applicable□ Not applicable
Unit: RMB
||||||
|-|-|-|-|-|
|Item|30 September 2018 (orQ1~Q3 2018)|31 December 2017 (orQ1~Q3 2017)|Change (%)|Explanation of why|
|Monetary capital|749,538,531.36|570,184,208.96|31.46%|Reclassification into this item ofmature structured deposits andwealth management productspurchased from bank|
|Prepayments|22,321,352.49|33,095,313.35|-32.55%|Decline in advances to suppliers|
|Construction inprogress|224,495,198.68|162,814,991.68|37.88%|More investments in the expansionof the plant in Gaoming|
|Financial liabilitiesat fair valuethrough profit orloss|4,819,200.00|||Trading financial assets or liabilitieswere recognized at fair value on theforward forex settlement contractsentered into during the ReportingPeriod|
|Notes andaccounts payable|1,018,391,858.14|539,303,554.54|88.83%|More bank acceptance bills wereused in the settlement withsuppliers|
|Deferred income|1,600,076.52|11,858,330.49|-86.51%|Return of government subsidy inthe current period|
|Deferred incometax liabilities|67,637,756.02|126,460,250.96|-46.51%|Decline in the fair value ofavailable-for-sale financial assets|
|Capital reserves|158,608,173.07|285,821,459.07|-44.51%|Bonus issue from capital reserves inthe current period|
|Othercomprehensiveincome|383,279,269.10|716,607,333.78|-46.51%|Decline in the fair value ofavailable-for-sale financial assets|
|R&D expense|35,259,823.24|24,371,396.18|44.68%|Rise in R&D expense in this item|
|Finance costs|-27,223,983.79|-6,116,872.70|-345.06%|Higher exchange income resultedfrom the depreciation of the RMBagainst the U.S. dollar|
|Interest income|7,691,616.90|19,973,130.75|-61.49%|More bank deposits were used topurchase wealth management|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||||
|-|-|-|-|-|
|||||products, from which the incomegenerated was recognized ininvestment income|
|Gain on changes infair value|-4,819,200.00|||Trading financial assets or liabilitieswere recognized at fair value on theforward forex settlement contractsentered into during the ReportingPeriod|
|Investment income|49,921,007.70|499,104,903.93|-90.00%|Sale of holdings in Qinghai Fozhao(associate) and Guoxuan High-techin the same period of last year|
|Share of profit orloss of jointventures andassociates|6,515,462.53|185,758,558.04|-96.49%|Sale of holdings in Qinghai Fozhao(associate) in the same period oflast year|
|Asset disposalincome|-78,039.44|-10,790.68|-623.21%|Sale of non-current assets|
|Other income|27,330,963.26|3,609,964.36|657.10%|More government subsidiesreceived during the ordinary courseof business|
|Operating profit|387,876,055.36|799,290,326.43|-51.47%|Higher investment income in thesame period of last year due to thesale of holdings in Qinghai Fozhao(associate) and Guoxuan High-tech,while there were no such events inthe current period|
|Non-operatingexpense|884,191.93|4,838,741.81|-81.73%|Reduction in the loss onnon-current asset disposal|
|Profit before tax|389,032,148.18|797,243,162.69|-51.20%|Higher investment income in thesame period of last year due to thesale of holdings in Qinghai Fozhao(associate) and Guoxuan High-tech,while there were no such events inthe current period|
|Income taxexpense|62,530,147.85|114,494,430.09|-45.39%|Decline in profit before tax|
|Net profit|326,502,000.33|682,748,732.60|-52.18%|Higher investment income in thesame period of last year due to thesale of holdings in Qinghai Fozhao(associate) and Guoxuan High-tech,while there were no such events in|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||||
|-|-|-|-|-|
|||||the current period|
|Net profitattributable toowners of theCompany as theparent|323,666,843.51|678,531,026.31|-52.30%|Higher investment income in thesame period of last year due to thesale of holdings in Qinghai Fozhao(associate) and Guoxuan High-tech,while there were no such events inthe current period|
|Net profitattributable tonon-controllinginterests|2,835,156.82|4,217,706.29|-32.78%|Decline in subsidiaries’ profit|
|Othercomprehensiveincome, net of tax|-333,328,064.68|-213,210,507.23|-56.34%|Decline in the fair value ofavailable-for-sale financial assets|
|Totalcomprehensiveincome|-6,826,064.35|469,538,225.37|-101.45%|Decline in the fair value ofavailable-for-sale financial assets|
|Net cash generatedfrom/used inoperating activities|510,441,096.28|-103,806,526.11|591.72%|More bank acceptance bills wereused in the settlement withsuppliers in Q3, and the longer daysof such payables outstandingresulted in a decrease in cash usedin operating activities|
|Net cash generatedfrom/used ininvesting activities|-20,911,229.55|12,659,213.62|-265.19%|Sale of holdings in Qinghai Fozhao(associate) and Guoxuan High-techin the same period of last year|
|Effect of foreignexchange ratechanges on cashand cashequivalents|5,036,692.65|-3,350,808.67|250.31%|Higher exchange income resultedfrom the depreciation of the RMB|
|Net increase incash and cashequivalents|89,402,795.38|-616,566,537.99|114.50%|Rise in net cash generated fromoperating activities|

II Progress, Influence and Solutions Associated with Significant Events
□ Applicable√ Not applicable
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 III Commitments that theCompany’s Actual Controller, Shareholders, Related Parties and Acquirers, as well as the Company Itself and Other Parties, Failed to Fulfill on Time during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IV 2018 Annual Operating Performance Forecast
Warning of a forecast loss on or a forecast significant year-on-year change in net profit for year 2018, as well as explanation of why:
□ Applicable√ Not applicable
V Securities Investments
√ Applicable□ Not applicable
Unit: RMB
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||Gain/Lo||||||||
||||||||Accumu|||||||
|||||||ss on||||||||
||||||||lated|||||||
||||Initial|||fair-valu||Purchas||Gain/los||||
||||||Beginni||fair-valu||Sold in|||||
|Security|Security|Security||Measure||e||ed in||s in|Ending|Account|Funding|
||||investm|ment|ng|changes|e|Reporti|Reporti|Reporti|carrying|||
|type|code|name|||carrying||changes||ng|||ing title|source|
||||ent cost|method|amount|in|charged|ng|Period|ng|amount|||
|||||||Reporti||Period||Period||||
||||||||to|||||||
|||||||ng||||||||
||||||||equity|||||||
|||||||Period||||||||
|||||||||||||Availabl||
|Domestic||Guoxua||||||||||||
|||||Fair|1,011,83||-389,55|||||e-for-sal||
|ally/Overs||n|160,000|||||||4,545,5|622,285|||
|||||value|8,873.5||3,420.7|||||e|Self-funded|
|eas listed|002074|High-tec|,000.00|||||||47.50|,452.75|||
|||||method|0||5|||||financia||
|stock||h||||||||||||
|||||||||||||l assets||
|||||||||||||Availabl||
|Domestic||||||||||||||
|||China||Fair||||||||e-for-sal||
|ally/Overs|||30,828,||75,114,3||-2,596,5|||3,356,9|72,517,|||
||601818|Everbrig||value||||||||e|Self-funded|
|eas listed|||816.00||53.70||45.56|||62.47|808.14|||
|||ht Bank||method||||||||financia||
|stock||||||||||||||
|||||||||||||l assets||
|||||||||||||Availabl||
|Domestic||||||||||||||
|||||||||||||e-for-sal||
|ally/Overs||Xiamen|292,574|Cost|292,574|||||10,971,|292,574|||
||N/A|||||||||||e|Self-funded|
|eas listed||Bank|,133.00|method|,133.00|||||417.60|,133.00|||
|||||||||||||financia||
|stock||||||||||||||
|||||||||||||l assets||
|Domestic||Foshan|500,000|Cost|500,000||||||500,000|Availabl||
||N/A||||||||||||Self-funded|
|ally/Overs||branch|.00|method|.00||||||.00|e-for-sal||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|eas listed|of||||||||||e||
|stock|Guangd||||||||||financia||
||ong||||||||||l assets||
||Develop||||||||||||
||ment||||||||||||
||Bank||||||||||||
|||||1,380,0||-392,14|||||||
|||483,902|||||||18,873,|987,877|||
|Total|||--|27,360.|0.00|9,966.3|0.00|0.00|||--|--|
|||,949.00|||||||927.57|,393.89|||
|||||20||1|||||||
|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)|||||||||||||

VI Wealth Management Entrustment
√ Applicable□ Not applicable
Unit:RMB’0,000 (in RMB ten thousand yuan)
||||||
|-|-|-|-|-|
|Type of wealth|||Outstanding amountbefore maturity||
||Funding source|Principal||Overdue amount|
|management|||||
|Wealth management|||||
|product purchased from|Self-funded|50,000|21,000|0|
|bank|||||
|Structural deposits|Self-funded|61,000|61,000|0|
|Total||111,000|82,000|0|

 High-risk wealth management entrustments with amounts that are individually significant, or with low security, low liquidity, or no protection of the principal:
√ Applicable□ Not applicable
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||Typeof|||||||Referenceannualizedreturn(%)||Actualgain/loss inReportingPeriod|Collec||Throu|Any|Overv|
||||||||Invest|||Expect|||Impair||||
|||||||||Way||||tion/pa||gh|plan|iew|
||Type|||Fundi|||ment|||ed|||ment||||
|Trustee||wealth|Princi||Start|Enddate||of||||yment||prescri|for|and|
||of|||ng|||with|||return|||allowa||||
|||manag|pal||date|||payba||||of||bed|further|index|
||trustee|||source|||princi|||(if|||nce (if||||
|||ementproduct||||||ck||||gain/lo||proced|entrust|to|
||||||||pal|||any)|||any)||||
|||||||||||||ss in||ure or|ment|more|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||||||Report||not||infor|
|||||||||||||ing||||matio|
|||||||||||||Period||||n (if|
|||||||||||||||||any)|
|China|||||||||||||||||
|Guang|||||||||||||||||
|fa||||||||Payme|||||||||
|Bank||Princip||||||nt of|||||||||
|(Guan||al-prot||||||princi|||||||||
|||||Self-o||8||||||||||www.|
|gzhou||ected|||6|||pal||||To be|||||
|||||wned||Octob|Invest|||||||||cninfo|
|Devel|Bank|with|3,000||Augus|||and|4.85%|37.47|34.28|collect|0|Yes|Yes||
|||||idle||er|ment|||||||||.com.c|
|opmen||floatin|||t 2018|||interes||||ed|||||
|||||capital||2018||||||||||n|
|t||g-rate||||||t upon|||||||||
|Distric||income||||||maturi|||||||||
|t||||||||ty|||||||||
|sub-br|||||||||||||||||
|anch)|||||||||||||||||
|Industr||||||||Payme|||||||||
|ial||Princip||||||nt of|||||||||
|Bank||al-prot||||||princi|||||||||
|||||Self-o||6||||||||||www.|
|(Guan||ected||||||pal||||To be|||||
|||||wned|6 July|Octob|Invest|||||||||cninfo|
|gzhou|Bank|with|6,000|||||and|4.50%|69.53|63.62|collect|0|Yes|Yes||
|||||idle|2018|er|ment|||||||||.com.c|
|Baiyu||floatin||||||interes||||ed|||||
|||||capital||2018||||||||||n|
|n||g-rate||||||t upon|||||||||
|sub-br||income||||||maturi|||||||||
|anch)||||||||ty|||||||||
|||||||||Payme|||||||||
|||Princip||||||nt of|||||||||
|Huaxi|||||||||||||||||
|||al-prot||||||princi|||||||||
|a Bank||||Self-o||10||||||||||www.|
|||ected|||10|||pal||||To be|||||
|(Fosha||||wned||Octob|Invest|||||||||cninfo|
||Bank|with|3,000||July|||and|4.30%|32.52|28.98|collect|0|Yes|Yes||
|n||||idle||er|ment|||||||||.com.c|
|||floatin|||2018|||interes||||ed|||||
|branch||||capital||2018||||||||||n|
|||g-rate||||||t upon|||||||||
|)|||||||||||||||||
|||income||||||maturi|||||||||
|||||||||ty|||||||||
|PingA||||||||Payme|||||||||
|||Princip|||||||||||||||
|n Bank||||||||nt of|||||||||
|||al-prot|||||||||||||||
|(Fosha||||Self-o||6||princi||||||||www.|
|||ected|||6|||||||To be|||||
|n||||wned||Nove|Invest|pal||||||||cninfo|
||Bank|with|3,000||Augus||||4.45%|33.65|20.48|collect|0|Yes|Yes||
|Jiangw||||idle||mber|ment|and||||||||.com.c|
|||floatin|||t 2018|||||||ed|||||
|an||||capital||2018||interes||||||||n|
|||g-rate|||||||||||||||
|sub-br||||||||t upon|||||||||
|||income|||||||||||||||
|anch)||||||||maturi|||||||||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
|||||||||ty|||||||||
|PingAn Bank(Guangzhou||||||||Payme|||||||||
|||Princip||||||nt of|||||||||
|||al-prot||||||princi|||||||||
|||||Self-o|13|12||||||||||www.|
|||ected||||||pal||||To be|||||
|||||wned|Septe|Dece|Invest|||||||||cninfo|
|Huans|Bank|with|3,000|||||and|4.00%|29.59|5.59|collect|0|Yes|Yes||
|||||idle|mber|mber|ment|||||||||.com.c|
|hi EastRoadsub-branch)||floatin||||||interes||||ed|||||
|||||capital|2 018|2018||||||||||n|
|||g-rate||||||t upon|||||||||
|||income||||||maturi|||||||||
|||||||||ty|||||||||
|ChinaGuangfaBank(Guangzhou|||||||||||||||||
|||||||||Payme|||||||||
|||Princip||||||nt of|||||||||
|||al-prot||||||princi|||||||||
|||||Self-o|28|||||||||||www.|
|||ected||||7January 2019||pal||||To be|||||
|||||wned|Septe||Invest|||||||||cninfo|
|Devel|Bank|with|3,000|||||and|4.10%|34.04|0.67|collect|0|Yes|Yes||
|||||idle|mber||ment|||||||||.com.c|
|opmentDistrictsub-branch)||floatin||||||interes||||ed|||||
|||||capital|2 018|||||||||||n|
|||g-rate||||||t upon|||||||||
|||income||||||maturi|||||||||
|||||||||ty|||||||||
|Total|||21,000|--|--|--|--|--|--|236.8|153.62|--||--|--|--|

 Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:□ Applicable√ Not applicable
VII Investments in Derivative Financial Instruments
√ Applicable□ Not applicable
|||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|-|
||Relationshipwith theCompany|||||||||||Ending||
|||||||||||||investm||
|||Related-||||||Purchased inReportingPeriod||Impairm||ent as %|Actual|
|||||Initial|||Beginni||Sold in|||||
|||party|Type of|||||||ent|Ending|of the|gain/loss|
|Counterpa||||investm|Start|End|ng||Reporti|||||
|||transacti|derivativ|||||||allowan|investm|Compan|in|
|rty||||ent|date|date|investm||ng|||||
|||on or|e|||||||ce (if|ent|y’s|Reporting|
|||||amount|||ent||Period|||||
|||not||||||||any)||ending|Period|
|||||||||||||net||
|||||||||||||assets||
|Bank of|Not||Forward|US$12|29 May|30||US$12million|||US$4||US$0.5771|
|||Not||||||||||0.63%||
|China|related||forex|million|2018|Novemb|||||million||million|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||||||||||||
|-|-|-|-|-|-|-|-|-|-|-|-|-|
|(Foshan|||settleme|||er 2018|||||||
|branch)|||nt||||||||||
||||portfolio||||||||||
|Industrial|||||||||||||
|and|||Forward||||||||||
|Commerci|||forex|||21|||||||
||Not|||US$12|19 June|||US$12||US$6|||
|al Bank of||Not|settleme|||Decemb|||||0.94%||
||related|||million|2018|||million||million|||
|China|||nt|||er 2018|||||||
|(Foshan|||portfolio||||||||||
|branch)|||||||||||||
|China|||Forward||||||||||
|Constructi|||forex|||14|||||||
||Not|||US$12|12 July|||US$12||US$8|||
|on Bank||Not|settleme|||January|||||1.26%||
||related|||million|2018|||million||million|||
|(Foshan|||nt|||2019|||||||
|branch)|||portfolio||||||||||
|Agricultur|||Forward||||||||||
|al Bank of|||forex||2|1|||||||
||Not|||US$12||||US$12||US$10|||
|China||Not|settleme||August|Februar|||||1.57%||
||related|||million||||million||million|||
|(Foshan|||nt||2018|y 2019|||||||
|branch)|||portfolio||||||||||
|||||US$48||||US$48||US$28||US$0.5771|
|Total|||||--|--|0||0||4.40%||
|||||million||||million||million||million|
|Funding source||||Self-funded|||||||||
|Legal matters involved (if applicable)||||N/A|||||||||
|Disclosure date of board|||||||||||||
|announcement approving derivative||||23 May 2018|||||||||
|investment (if any)|||||||||||||
|Disclosure date of general meeting|||||||||||||
|announcement approving derivative|||||||||||||
|investment (if any)|||||||||||||
|||||Risk Analysis of Forward Exchange Settlement Business: 1. Risk of exchange rate fluctuations.|||||||||
|||||In the case of large fluctuations in the exchange rate, the quoted price of the bank’s forward|||||||||
|||||exchange rate may be lower than the Company’s quoted exchange rate to the customer, which|||||||||
|Analysis of risks and control measures||||will make the Company unable to lock the quoted exchange rate to the customer or the bank’s|||||||||
|associated with derivative investments||||forward exchange rate may deviate from the exchange rate at the time of the Company’s actual|||||||||
|held in Reporting Period (including but||||receipt and payment, and causes exchange losses. 2. Risk of customer default. The customer’s|||||||||
|not limited to market risk, liquidity||||accounts receivable may be overdue, and the payment for goods cannot be recovered within the|||||||||
|risk, credit risk, operational risk, legal||||predictable payback period, which will result in the loss of the Company due to the delayed|||||||||
|risk, etc.)||||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|||||||||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
|||
|-|-|
||delivery of forward exchange settlement.|
||Adopted Risk Control Measures: 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 Management 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 its 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.|
||At present, 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 rate, and the|
|Changes in market prices or fair value||
||exchange settlement shall be carried out based on the agreed front-end exchange rate; if the spot|
|of derivative investments in Reporting||
||exchange rate at maturity is higher than the agreed front-end exchange rate, the Company can|
|Period (fair value analysis should||
||choose not to settle the exchange or choose to settle the exchange based on the spot exchange|
|include measurement method and||
||rate at maturity. The back-end three sessions of vesting conditions are: the spot exchange rate at|
|related assumptions and parameters)||
||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 back-end exchange rate.|
|Major changes in accounting policies||
|and specific accounting principles||
|adopted for derivative investments in|N/A|
|Reporting Period compared to last||
|reporting period||
|Opinion of independent directors on|The independent directors of the Company are of the opinion that during the Reporting Period,|
|derivative investments and risk control|the Company carried out forward forex settlement in strict compliance with the Company Law,|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||
|-|
|the Regulations of the People’s Bank of China on Foreign Exchange Settlement, Sale and|
|Payment and the Company’s Management Rules for Forward Foreign 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.|

VIII Visits Paid to the Company for Purposes of Research, Communication, Interview, etc. during Reporting Period
□ Applicable√ Not applicable
No such cases in the Reporting Period.
IX Irregularities in Provision of Guarantees for External Parties
□ Applicable√ Not applicable
No such cases in the Reporting Period.
X Occupation of theCompany’s Capital by Controlling Shareholder or Its Related Parties for Non-Operating Purposes
□ Applicable√ Not applicable
No such cases in the Reporting Period.
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 September 2018
Unit: RMB
||||
|-|-|-|
|Item|30 September 2018|31 December 2017|
|Current assets:|||
|Monetary capital|749,538,531.36|570,184,208.96|
|Settlement reserve|||
|Interbank loans granted|||
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes and accounts receivable|964,049,240.32|824,659,624.97|
|Including: Notes receivable|57,849,304.52|68,368,192.41|
|Accounts receivable|906,199,935.80|756,291,432.56|
|Prepayments|22,321,352.49|33,095,313.35|
|Premiums receivable|||
|Reinsurance receivables|||
|Receivable reinsurance contract reserve|||
|Other receivables|33,684,051.70|33,643,667.01|
|Financial assets purchased under resale|||
|agreements|||
|Inventories|866,754,132.32|746,466,889.87|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|860,560,643.22|1,006,062,102.56|
|Total current assets|3,496,907,951.41|3,214,111,806.72|
|Non-current assets:|||
|Loans and advances to customers|||
|Available-for-sale financial assets|998,431,570.29|1,390,581,536.60|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|182,808,981.92|179,414,105.14|
|Investment property|||
|Fixed assets|510,562,776.79|483,520,866.64|
|Construction in progress|224,495,198.68|162,814,991.68|
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|152,308,807.07|155,544,720.36|
|R&D expense|||
|Goodwill|||
|Long-term prepaid expense|7,244,514.48|9,088,933.56|
|Deferred income tax assets|34,833,190.83|37,675,828.79|
|Other non-current assets|48,068,474.02|43,059,034.80|
|Total non-current assets|2,158,753,514.08|2,461,700,017.57|
|Total assets|5,655,661,465.49|5,675,811,824.29|
|Current liabilities:|||
|Short-term borrowings|||
|Borrowings from central bank|||
|Customer deposits and interbank|||
|deposits|||
|Interbank loans obtained|||
|Financial liabilities at fair value through|||
||4,819,200.00||
|profit or loss|||
|Derivative financial liabilities|||
|Notes and accounts payable|1,018,391,858.14|539,303,554.54|
|Advances from customers|38,982,523.04|48,706,778.49|
|Financial assets sold under repurchase|||
|agreements|||
|Handling charges and commissions|||
|payable|||
|Payroll payable|74,050,420.24|81,948,630.59|
|Taxes payable|31,677,981.39|27,350,670.40|
|Other payables|44,224,308.27|40,548,489.03|
|Reinsurance payables|||
|Insurance contract reserve|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Payables for acting 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|1,212,146,291.08|737,858,123.05|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Provisions|||
|Deferred income|1,600,076.52|11,858,330.49|
|Deferred income tax liabilities|67,637,756.02|126,460,250.96|
|Other non-current liabilities|||
|Total non-current liabilities|69,237,832.54|138,318,581.45|
|Total liabilities|1,281,384,123.62|876,176,704.50|
|Owners’ equity:|||
|Share capital|1,399,346,154.00|1,272,132,868.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Capital reserves|158,608,173.07|285,821,459.07|
|Less: Treasury stock|||
|Other comprehensive income|383,279,269.10|716,607,333.78|
|Specific reserve|||
|Surplus reserves|772,953,002.36|772,953,002.36|
|General reserve|||
|Retained earnings|1,636,735,926.12|1,731,600,796.18|
|Total equity attributable to owners of the|||
||4,350,922,524.65|4,779,115,459.39|
|Company as the parent|||
|Non-controlling interests|23,354,817.22|20,519,660.40|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Total owners’ equity|4,374,277,341.87|4,799,635,119.79|
|Total liabilities and owners’ equity|5,655,661,465.49|5,675,811,824.29|

 Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
2. Balance Sheet of the Company as the Parent
Unit: RMB
||||
|-|-|-|
|Item|30 September 2018|31 December 2017|
|Current assets:|||
|Monetary capital|693,814,281.32|502,169,100.40|
|Financial assets at fair value through|||
|profit or loss|||
|Derivative financial assets|||
|Notes and accounts receivable|967,352,000.98|814,698,352.02|
|Including: Notes receivable|56,887,304.52|67,268,192.41|
|Accounts receivable|910,464,696.46|747,430,159.61|
|Prepayments|31,148,101.99|70,580,941.09|
|Other receivables|62,459,291.31|51,918,913.09|
|Inventories|785,672,315.61|670,527,529.71|
|Assets classified as held for sale|||
|Current portion of non-current assets|||
|Other current assets|847,914,047.61|777,495,203.31|
|Total current assets|3,388,360,038.82|2,887,390,039.62|
|Non-current assets:|||
|Available-for-sale financial assets|998,431,570.29|1,390,581,536.60|
|Held-to-maturity investments|||
|Long-term receivables|||
|Long-term equity investments|466,602,084.18|663,207,207.40|
|Investment property|||
|Fixed assets|425,089,236.42|404,667,257.11|
|Construction in progress|222,803,290.28|161,024,975.28|
|Productive living assets|||
|Oil and gas assets|||
|Intangible assets|108,677,310.57|112,251,734.86|
|R&D expense|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Goodwill|||
|Long-term prepaid expense|6,202,381.60|8,209,699.77|
|Deferred income tax assets|32,516,908.25|32,985,075.62|
|Other non-current assets|46,278,074.02|42,661,573.80|
|Total non-current assets|2,306,600,855.61|2,815,589,060.44|
|Total assets|5,694,960,894.43|5,702,979,100.06|
|Current liabilities:|||
|Short-term borrowings|||
|Financial liabilities at fair value through|||
||4,819,200.00||
|profit or loss|||
|Derivative financial liabilities|||
|Notes and accounts payable|1,194,704,799.17|719,912,246.75|
|Advances from customers|37,719,898.28|47,306,971.94|
|Payroll payable|55,154,399.63|60,345,714.81|
|Taxes payable|22,801,429.04|13,294,037.24|
|Other payables|117,443,683.70|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|1,432,643,409.82|937,683,728.64|
|Non-current liabilities:|||
|Long-term borrowings|||
|Bonds payable|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Long-term payables|||
|Long-term payroll payable|||
|Provisions|||
|Deferred income|1,406,326.23|11,548,330.26|
|Deferred income tax liabilities|67,637,756.02|126,460,250.96|
|Other non-current liabilities|||
|Total non-current liabilities|69,044,082.25|138,008,581.22|
|Total liabilities|1,501,687,492.07|1,075,692,309.86|
|Owners’ equity:|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Share capital|1,399,346,154.00|1,272,132,868.00|
|Other equity instruments|||
|Including: Preferred shares|||
|Perpetual bonds|||
|Capital reserves|166,211,779.15|293,425,065.15|
|Less: Treasury stock|||
|Other comprehensive income|383,280,617.41|716,608,088.78|
|Specific reserve|||
|Surplus reserves|772,953,002.36|772,953,002.36|
|Retained earnings|1,471,481,849.44|1,572,167,765.91|
|Total owners’ equity|4,193,273,402.36|4,627,286,790.20|
|Total liabilities and owners’ equity|5,694,960,894.43|5,702,979,100.06|

 Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement for Q3
Unit: RMB
||||
|-|-|-|
|Item|Q3 2018|Q3 2017|
|1. Revenue|820,735,540.10|926,328,050.98|
|Including: Operating revenue|820,735,540.10|926,328,050.98|
|Interest income|||
|Premium income|||
|Handling charge and|||
|commission income|||
|2. Operating costs and expenses|757,426,684.91|888,962,375.54|
|Including: Cost of sales|619,459,583.91|760,791,362.20|
|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|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Taxes and surcharges|7,110,901.52|10,388,130.08|
|Selling expense|67,625,662.29|67,350,699.34|
|Administrative expense|45,731,759.35|37,516,789.65|
|R&D expense|16,316,330.46|10,162,478.73|
|Finance costs|-14,138,507.18|999,034.66|
|Including: Interest|||
|expense|||
|Interest|||
||2,812,177.03|4,363,967.48|
|income|||
|Asset impairment loss|15,320,954.56|1,753,880.88|
|Add: Other income|26,312,578.09|306,970.00|
|Investment income (“-” for loss)|25,411,137.34|485,095,621.91|
|Including: Share of profit or|||
||6,335,680.97|184,214,592.25|
|loss of joint ventures and associates|||
|Gain on changes in fair value (“-”|||
||-4,819,200.00||
|for loss)|||
|Foreign exchange gain (“-” for|||
|loss)|||
|Asset disposal income (“-” for|||
||-78,039.44||
|loss)|||
|3. Operating profit (“-” for loss)|110,135,331.18|522,768,267.35|
|Add: Non-operating income|370,428.32|72,176.55|
|Less: Non-operating expense|692,442.51|79,758.80|
|4. Profit before tax (“-” for loss)|109,813,316.99|522,760,685.10|
|Less: Income tax expense|15,486,002.15|71,896,928.74|
|5. Net profit (“-” for net loss)|94,327,314.84|450,863,756.36|
|5.1 Net profit from continuing|||
||94,327,314.84|450,863,756.36|
|operations (“-” for net loss)|||
|5.2 Net profit from discontinued|||
|operations (“-” for net loss)|||
|Net profit attributable to owners of|||
||94,389,387.69|450,036,365.74|
|the Company as the parent|||
|Net profit attributable to|||
||-62,072.85|827,390.62|
|non-controlling interests|||
|6. Other comprehensive income, net of|||
||-10,352,713.29|-236,235,978.37|
|tax|||
|Attributable to owners of the|||
||-10,352,713.29|-236,235,978.37|
|Company as the parent|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|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|||
||-10,352,713.29|-236,235,978.37|
|reclassified to profit or loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|||-21,831,908.42|
|will be reclassified to profit or loss|||
|under equity method|||
|6.2.2 Gain/Loss on changes in|||
|fair value of available-for-sale financial|-10,354,561.67|-214,404,069.95|
|assets|||
|6.2.3 Gain/Loss arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|6.2.4 Effective gain/loss on cash|||
|flow hedges|||
|6.2.5 Differences arising from|||
|translation of foreign|||
||1,848.38||
|currency-denominated financial|||
|statements|||
|6.2.6 Other|||
|Attributable to non-controlling|||
|interests|||
|7. Total comprehensive income|83,974,601.55|214,627,777.99|
|Attributable to owners of the|||
||84,036,674.40|213,800,387.37|
|Company as the parent|||
|Attributable to non-controlling|||
||-62,072.85|827,390.62|
|interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|0.0675|0.3216|
|8.2 Diluted earnings per share|0.0675|0.3216|

Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018 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: RMB
||||
|-|-|-|
|Item|Q3 2018|Q3 2017|
|1. Operating revenue|806,761,538.76|903,446,254.75|
|Less: Cost of sales|629,785,452.97|763,482,738.06|
|Taxes and surcharges|4,807,080.85|7,416,305.60|
|Selling expense|59,544,684.51|62,278,091.63|
|Administrative expense|42,369,376.35|38,062,103.46|
|R&D expense|15,372,638.99|7,969,145.28|
|Finance costs|-13,703,097.66|2,362,018.02|
|Including: Interest expense|||
|Interest income|2,367,541.27|2,994,352.24|
|Asset impairment loss|15,359,989.07|1,617,784.82|
|Add: Other income|24,812,879.00|306,970.00|
|Investment income (“-” for loss)|57,357,355.93|484,167,951.90|
|Including: Share of profit or|||
||6,335,680.97|184,214,592.25|
|loss of joint ventures and associates|||
|Gain on changes in fair value (“-”|||
||-4,819,200.00||
|for loss)|||
|Asset disposal income (“-” for|||
|loss)|||
|2. Operating profit (“-” for loss)|130,576,448.61|504,732,989.78|
|Add: Non-operating income|330,267.62|14,884.74|
|Less: Non-operating expense|192,865.77|49,663.66|
|3. Profit before tax (“-” for loss)|130,713,850.46|504,698,210.86|
|Less: Income tax expense|12,679,416.15|67,376,029.03|
|4. Net profit (“-” for net loss)|118,034,434.31|437,322,181.83|
|4.1 Net profit from continuing|||
||118,034,434.31|437,322,181.83|
|operations (“-” for net loss)|||
|4.2 Net profit from discontinued|||
|operations (“-” for net loss)|||
|5. Other comprehensive income, net of|||
||-10,354,561.67|-236,235,978.37|
|tax|||
|5.1 Items that will not be reclassified|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|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|||
|5.2 Items that may subsequently be|||
||-10,354,561.67|-236,235,978.37|
|reclassified to profit or loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|||-21,831,908.42|
|will be reclassified to profit or loss|||
|under equity method|||
|5.2.2 Gain/Loss on changes in fair|||
|value of available-for-sale financial|-10,354,561.67|-214,404,069.95|
|assets|||
|5.2.3 Gain/Loss arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|5.2.4 Effective gain/loss 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|107,679,872.64|201,086,203.46|
|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 forQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2018|Q1~Q3 2017|
|1. Revenue|2,885,514,830.09|2,950,253,633.82|
|Including: Operating revenue|2,885,514,830.09|2,950,253,633.82|
|Interest income|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Premium income|||
|Handling charge and|||
|commission income|||
|2. Operating costs and expenses|2,569,993,506.25|2,653,667,385.00|
|Including: Cost of sales|2,198,751,451.80|2,307,723,142.05|
|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 surcharges|29,073,419.76|30,774,732.41|
|Selling expense|171,542,672.76|149,002,693.03|
|Administrative expense|131,262,298.09|122,098,693.80|
|R&D expense|35,259,823.24|24,371,396.18|
|Finance costs|-27,223,983.79|-6,116,872.70|
|Including: Interest|||
|expense|||
|Interest|||
||7,691,616.90|19,973,130.75|
|income|||
|Asset impairment loss|31,327,824.39|25,813,600.23|
|Add: Other income|27,330,963.26|3,609,964.36|
|Investment income (“-” for loss)|49,921,007.70|499,104,903.93|
|Including: Share of profit or|||
||6,515,462.53|185,758,558.04|
|loss of joint ventures and associates|||
|Gain on changes in fair value (“-”|||
||-4,819,200.00||
|for loss)|||
|Foreign exchange gain (“-” for|||
|loss)|||
|Asset disposal income (“-” for|||
||-78,039.44|-10,790.68|
|loss)|||
|3. Operating profit (“-” for loss)|387,876,055.36|799,290,326.43|
|Add: Non-operating income|2,040,284.75|2,791,578.07|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Less: Non-operating expense|884,191.93|4,838,741.81|
|4. Profit before tax (“-” for loss)|389,032,148.18|797,243,162.69|
|Less: Income tax expense|62,530,147.85|114,494,430.09|
|5. Net profit (“-” for net loss)|326,502,000.33|682,748,732.60|
|5.1 Net profit from continuing|||
||326,502,000.33|682,748,732.60|
|operations (“-” for net loss)|||
|5.2 Net profit from discontinued|||
|operations (“-” for net loss)|||
|Net profit attributable to owners of|||
||323,666,843.51|678,531,026.31|
|the Company as the parent|||
|Net profit attributable to|||
||2,835,156.82|4,217,706.29|
|non-controlling interests|||
|6. Other comprehensive income, net of|||
||-333,328,064.68|-213,210,507.23|
|tax|||
|Attributable to owners of the|||
||-333,328,064.68|-213,210,507.23|
|Company as the parent|||
|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|||
||-333,328,064.68|-213,210,507.23|
|reclassified to profit or loss|||
|6.2.1 Share of other|||
|comprehensive income of investees that|||
|||-21,831,908.42|
|will be reclassified to profit or loss|||
|under equity method|||
|6.2.2 Gain/Loss on changes in|||
|fair value of available-for-sale financial|-333,327,471.37|-191,378,598.81|
|assets|||
|6.2.3 Gain/Loss arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|6.2.4 Effective gain/loss on cash|||
|flow hedges|||
|6.2.5 Differences arising from|||
||-593.31||
|translation of foreign|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|currency-denominated financial|||
|statements|||
|6.2.6 Other|||
|Attributable to non-controlling|||
|interests|||
|7. Total comprehensive income|-6,826,064.35|469,538,225.37|
|Attributable to owners of the|||
||-9,661,221.17|465,320,519.08|
|Company as the parent|||
|Attributable to non-controlling|||
||2,835,156.82|4,217,706.29|
|interests|||
|8. Earnings per share|||
|8.1 Basic earnings per share|0.2313|0.4849|
|8.2 Diluted earnings per share|0.2313|0.4849|

 Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
6. Income Statement of the Company as the Parent forQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2018|Q1~Q3 2017|
|1. Operating revenue|2,811,049,983.52|2,883,642,659.04|
|Less: Cost of sales|2,217,179,773.50|2,313,440,394.16|
|Taxes and surcharges|22,021,486.96|21,444,604.66|
|Selling expense|150,661,877.23|136,340,918.02|
|Administrative expense|119,997,288.25|122,757,707.29|
|R&D expense|33,985,885.56|21,672,079.82|
|Finance costs|-26,358,156.78|-2,112,235.62|
|Including: Interest expense|||
|Interest income|6,799,775.32|15,944,654.30|
|Asset impairment loss|30,584,644.12|24,670,993.37|
|Add: Other income|25,374,222.06|3,592,210.00|
|Investment income (“-” for loss)|78,395,196.25|497,071,428.38|
|Including: Share of profit or|||
||6,515,462.53|185,758,558.04|
|loss of joint ventures and associates|||
|Gain on changes in fair value (“-”|||
||-4,819,200.00||
|for loss)|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Asset disposal income (“-” for|||
|loss)|||
|2. Operating profit (“-” for loss)|361,927,402.99|746,091,835.72|
|Add: Non-operating income|1,902,719.21|2,476,478.15|
|Less: Non-operating expense|356,969.86|2,091,041.16|
|3. Profit before tax (“-” for loss)|363,473,152.34|746,477,272.71|
|Less: Income tax expense|45,627,355.24|101,422,029.01|
|4. Net profit (“-” for net loss)|317,845,797.10|645,055,243.70|
|4.1 Net profit from continuing|||
||317,845,797.10|645,055,243.70|
|operations (“-” for net loss)|||
|4.2 Net profit from discontinued|||
|operations (“-” for net loss)|||
|5. Other comprehensive income, net of|||
||-333,327,471.37|-213,210,507.23|
|tax|||
|5.1 Items that will not be reclassified|||
|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|||
|5.2 Items that may subsequently be|||
||-333,327,471.37|-213,210,507.23|
|reclassified to profit or loss|||
|5.2.1 Share of other|||
|comprehensive income of investees that|||
|||-21,831,908.42|
|will be reclassified to profit or loss|||
|under equity method|||
|5.2.2 Gain/Loss on changes in fair|||
|value of available-for-sale financial|-333,327,471.37|-191,378,598.81|
|assets|||
|5.2.3 Gain/Loss arising from|||
|reclassification of held-to-maturity|||
|investments to available-for-sale|||
|financial assets|||
|5.2.4 Effective gain/loss on cash|||
|flow hedges|||
|5.2.5 Differences arising from|||
|translation of foreign|||
|currency-denominated financial|||
|statements|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|5.2.6 Other|||
|6. Total comprehensive income|-15,481,674.27|431,844,736.47|
|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
7. Consolidated Cash Flow Statement forQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2018|Q1~Q3 2017|
|1. Cash flows from operating activities:|||
|Proceeds from sale of commodities|||
||2,646,375,234.95|2,689,003,504.65|
|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|||
|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|109,951,990.96|74,944,574.17|
|Cash generated from other operating|||
||71,257,187.00|40,868,251.39|
|activities|||
|Subtotal of cash generated from|||
||2,827,584,412.91|2,804,816,330.21|
|operating activities|||
|Payments for commodities and|1,462,982,460.41|1,873,635,380.49|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|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|501,231,015.45|538,117,713.71|
|Taxes paid|195,992,337.25|328,954,823.22|
|Cash used in other operating|||
||156,937,503.52|167,914,938.90|
|activities|||
|Subtotal of cash used in operating|||
||2,317,143,316.63|2,908,622,856.32|
|activities|||
|Net cash generated from/used in|||
||510,441,096.28|-103,806,526.11|
|operating activities|||
|2. Cash flows from investing activities:|||
|Proceeds from disinvestment|160,000,000.00|19,221,175.20|
|Investment income|45,348,316.28|479,129,177.90|
|Net proceeds from disposal of fixed|||
|assets, intangible assets and other|507,597.20|1,626,000.00|
|long-lived assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated from other investing|||
|activities|||
|Subtotal of cash generated from|||
||205,855,913.48|499,976,353.10|
|investing activities|||
|Payments for acquisition of fixed|||
|assets, intangible assets and other|136,815,616.01|177,317,139.48|
|long-lived assets|||
|Payments for investments||310,000,000.00|
|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|||
||226,767,143.03|487,317,139.48|
|activities|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Net cash generated from/used in|||
||-20,911,229.55|12,659,213.62|
|investing activities|||
|3. Cash flows from 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 from other financing|||
|activities|||
|Subtotal of cash generated from|||
|financing activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|405,163,764.00|522,068,416.83|
|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|||
||405,163,764.00|522,068,416.83|
|activities|||
|Net cash generated from/used in|||
||-405,163,764.00|-522,068,416.83|
|financing activities|||
|4. Effect of foreign exchange rate|||
||5,036,692.65|-3,350,808.67|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||89,402,795.38|-616,566,537.99|
|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 the|||
||659,587,004.34|862,717,104.55|
|period|||

Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
8. Cash Flow Statement of the Company as the Parent forQ1~Q3
Unit: RMB
||||
|-|-|-|
|Item|Q1~Q3 2018|Q1~Q3 2017|
|1. Cash flows from operating activities:|||
|Proceeds from sale of commodities|||
||2,555,607,130.21|2,602,335,552.74|
|and rendering of services|||
|Tax rebates|109,928,355.77|74,944,574.17|

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Cash generated from other operating|||
||57,831,655.01|33,784,521.55|
|activities|||
|Subtotal of cash generated from|||
||2,723,367,140.99|2,711,064,648.46|
|operating activities|||
|Payments for commodities and|||
||1,638,169,956.39|2,191,779,261.68|
|services|||
|Cash paid to and for employees|311,008,108.99|236,224,216.19|
|Taxes paid|124,616,603.82|242,191,570.41|
|Cash used in other operating|||
||141,247,884.47|172,691,140.62|
|activities|||
|Subtotal of cash used in operating|||
||2,215,042,553.67|2,842,886,188.90|
|activities|||
|Net cash generated from/used in|||
||508,324,587.32|-131,821,540.44|
|operating activities|||
|2. Cash flows from investing activities:|||
|Proceeds from disinvestment|140,000,000.00|19,221,175.20|
|Investment income|73,422,562.27|492,162,728.87|
|Net proceeds from disposal of fixed|||
|assets, intangible assets and other||1,580,000.00|
|long-lived assets|||
|Net proceeds from disposal of|||
|subsidiaries or other business units|||
|Cash generated from other investing|||
|activities|||
|Subtotal of cash generated from|||
||213,422,562.27|512,963,904.07|
|investing activities|||
|Payments for acquisition of fixed|||
|assets, intangible assets and other|129,942,619.86|164,644,278.87|
|long-lived assets|||
|Payments for investments||265,000,000.00|
|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|||
||219,894,146.88|429,644,278.87|
|activities|||
|Net cash generated from/used in|||
||-6,471,584.61|83,319,625.20|
|investing activities|||
|3. Cash flows from financing activities:|||
|Capital contributions received|||
|Increase in borrowings obtained|||

Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2018
||||
|-|-|-|
|Net proceeds from issuance of bonds|||
|Cash generated from other financing|||
|activities|||
|Subtotal of cash generated from|||
|financing activities|||
|Repayment of borrowings|||
|Payments for interest and dividends|405,163,764.00|516,408,126.05|
|Cash used in other financing|||
|activities|||
|Sub-total of cash used in financing|||
||405,163,764.00|516,408,126.05|
|activities|||
|Net cash generated from/used in|||
||-405,163,764.00|-516,408,126.05|
|financing activities|||
|4. Effect of foreign exchange rate|||
||5,004,415.19|-3,350,808.67|
|changes on cash and cash equivalents|||
|5. Net increase in cash and cash|||
||101,693,653.90|-568,260,849.96|
|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 the|||
||603,862,754.30|667,157,114.92|
|period|||

Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
II IndependentAuditor’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.
25 October 2018