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