Short Form of the Stock: Foshan Electrical & Lighting (A-Share), Yue Electrical & Lighting B (B-Share) Stock Code: 000541 (A-Share), 200541(B-Share) Announcement No.: 2010-048Foshan Electrical and Lighting Co., Ltd The Third Quarterly Report 2010§1 Important Notice1.1 The Board of Directors, the Supervisory Committee as well as directors, supervisors and senior executives of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as the Company) guarantee that there are no significant omissions, fictitious or misleading statements carried in the Report and will take individual and joint responsibilities for the truthfulness, accuracy and completeness of the Report.1.2 None of the directors demonstrated uncertainty or disagreement about the truthfulness, accuracy, and completeness of this quarterly report.1.3 The Financial Report of the third quarterly report period has not been audited. 1.4 Zhong Xincai, person in charge of the Company and Chief Financial Officer, and Wang Shuqiong, person in charge of accounting organ, hereby confirm that the financial report enclosed in this report is true and complete.§2 Company Profile2.1 Main accounting data and financial indicesUnit: EMB Yuan30 Sep. 2010 31 Dec. 2009Increase/decrease (%)Total assets (Yuan)3,044,376,557.102,995,100,164.41 1.65%Owner’s equity attributable to shareholders oflisted company (Yuan) 2,660,542,374.282,660,099,988.21 0.02%Share capital (Share) 978,563,745.00978,563,745.00 0.00%Net assets per share attributable to shareholders of listed company (Yuan/share) 2.722.72 0.00%Jul.-Sep. 2010Increase/decrease year-on-year (%)Jan.-Sep. 2010 Increase/decrease year-on-year (%)Operating revenue (Yuan)497,501,586.99-12.08%1,321,861,931.641.24%Net profit attributable to shareholders of listedcompany (Yuan)82,085,840.7329.82%162,903,608.69 21.20%Net cash flow arising from operating activities- - 76,255,089.28 -76.74%(Yuan)Net cash flow per share arising from operatingactivities (Yuan/share) - - 0.08-76.74%Basic earnings per share (Yuan/share) 0.0833.33%0.17 21.43% Diluted earnings per share (Yuan/share) 0.0833.33%0.17 21.43% Weighted average return on equity (%) 3.09%0.64% 6.12% 1.07% Weighted average return on equity afterdeducting non-recurring gains and losses (%)3.27%0.90% 6.18% 1.10%Items of non-recurring gains and losses Amount from the year-begin to theend of report periodNoteGains and losses from disposal of non-current assets 113,318.19Government subsidies recorded into current gains and losses,excluding government subsidies with close relationship with theCompany’s business and rationed government grants in line with theunited standard and the state policy1,372,111.77Capital occupied from non-financial enterprise recorded into currentgains and losses64,875.10Gains and losses from changes in fair value due to transaction financialassets and liabilities, and investment income from disposal oftransaction financial assets, transaction financial liabilities andfinancial assets available for sale, excluding valid hedging related toroutine operation of the Company178,118.10Other non-operating income and expense except the aforesaid items -3,537,167.93Impact on income tax 257,007.05Other gains and losses accorded with definition of non-current gainsand losses8,943.17Total -1,542,794.55 -2.2 Total number of shareholders at the end of the report period and statement onshares held by the top ten shareholders with shares not subject to trading moratoriumUnit: shareTotal number of shareholders at the period-end130,710 The top ten shareholders holding shares not subject to trading moratoriumFull name of shareholders Number of shares not subject to tradingmoratorium held at the period-endType of shareProsperity Lamps and Components Ltd. 102,751,648RMB ordinary share China Construction Bank-China AdvantageGrowth Stock Fund36,147,934RMB ordinary shareDBS VICKERS (HONG KONG) LTD A/C12,794,881Domestically listed foreign share CLIENTSTaifook Securities Company Limited-Account10,758,212Domestically listed foreign share ClientBank of China-E Fund Shenzhen Stock 1009,578,484RMB ordinary share Transaction Open-ended Index FundEAST ASIA SECURITIES COMPANY9,527,080Domestically listed foreign share LIMITEDICBC-Lion Stock Fund 8,458,435RMB ordinary shareBank of China-First-Trust Goodquality Life8,169,949RMB ordinary share Stock FundIndustrial & Commercial Bank of6,396,288RMB ordinary share China-Rongtong Shen Securities 100 Index FundGuangzhou Prosperity Lamps and Components4,911,140RMB ordinary share Trade Co., Ltd§3 Significant Events3.1 Significant changes in major accounting data, financial highlights and reasons forthese changes√Applicable □Inapplicable1. Monetary capital decreased 32.84% year-on-year, mainly because the Companyincrease capital on investment;2. Financial assets available for sale increased 100% year-on-year, mainly because theCompany transferred in items of long-tem equity investment of equities of China Everbright Bank in this year;3. Long-term equity increased 57.9% year-on-year, mainly because the Companyincrease investment in this year;4. Loss from assets impairment increased 304.50% year-on-year, mainly becausewithdrawal of bad debt reserves increased in this year;5. Income from investment decreased 76.89% year-on-year, mainly because bonusreceived from invested companies decreased in current year;6. Net cash flow arising from operating activities decreased 76.74% year-on-year,mainly because expenses for operating activities increased in current year;3.2 The progress of significant events and its influence, as well as the analysis andexplanation on solutions3.2.1 About non-standard opinion□Applicable √Inapplicable3.2.2 The Company offer capital to the controlling shareholder or other related partiesand provide external guarantees in violation of the prescribed procedures.□Applicable √Inapplicable3.2.3 Signing contract and execution of significant contract on routine operation□Applicable √Inapplicable3.2.4 Others√Applicable □Inapplicable1. The Company published public notice on Increasing Investment in Qinghai Fozhao Lithium Energy Exploitation Co., Ltd on 15 Jul. 2010, and the Company paid RMB 8,769,260 as registered capital. Relevant work on increasing investment has been completed.2. The Company published public notice on Official Purchase of 20% equity of Hefei GuoXuan High-tech Power Energy Co., Ltd held by Hefei GuoXuan Marketing Scheme Co., Ltd on 15 Jul. 2010, and relevant woke on purchase and transfer has been completed. Hefei GuoXuan High-tech Power Energy Co., Ltd reviewed and approved resolutions of the shareholders’ general meeting on 10 Aug. 2010, which approved to increase capital, introduce new strategic partner to invest RMB 88,800,000. After increasing capital ,the registered capital of the Company was RMB 111,100,000. Equity held by the Company was changed to 18.0018%.3. The Company published public notice on Signing Letter of Intent on cooperation of LED Project on 3 Aug. 2010, and the Company is testing samples provided by BridgeLux Inc.4. The Company published public notice on Starting Establishment of Qinghai Fozhao Lithium Ion Battery Cathode Materials Co., Ltd on 18 Aug. 2010. Up to 30 Sep. 2010, record of registration was still in progress according to relevant procedures.5. Proposal on Authorizing Operating Team to Prepare Production of Lithium Ion Battery and Integration of PACK Base was reviewed and approved at the 4th Meeting of the 6th Board of Directors of the Company, and the project was in progress of preparation.6. The Company published public notice on Signing Letter of Intent with PIHSIANG MACHINERY MFG. CO., LTD on 20 Aug. 2010, detailed cooperation project was in progress of negotiation.3.3 The fulfillment of the commitment made by the Company, shareholders and the actual controller√Applicable □InapplicableCommitment CommitmentmakerContent ExecutionCommitment on share merger reform OSRAM HoldingCo., LtdSpecial commitments: 1. No listing and transfermay be taken within 60 months as of the datewhen the shares of the Company held by thiscompany obtain the trading right [i] or beforeDec. 31, 2011 [ii] (taking the earlier date between[i] and [ii]). OSRAM Holding Co., Ltd wouldsubmit Shenzhen Stock Exchange to lock up thesaid shares in the course of the moratorium ofUnder executiontrading right of the aforesaid shares after transferof the shares.2. Germany OSRAM Company would purchasethe lamp products from FSL in accordance withthe clauses of the Purchase Contract on LampProducts signed between Germany OSRAMCompany and FSL on Aug. 31, 2004.3. As required by FSL, OSRAM PROSPERITYshould urge Germany OSRAM Company toprovide the relevant technology abidance andskill to FSL in accordance with the clauses andconditions negotiated between FSL and GermanyOSRAM Company.Commitment made in mergerreport or report on change ofequityNaught Naught NaughtCommitment made whenreorganization of significantassetsNaught Naught NaughtCommitment made whenofferingNaught Naught Naught Other commitments (includingadded commitment)Naught Naught Naught3.4 Warnings of possible loss or large-margin change of the accumulated net profitmade during the period from the beginning of the year to the end of the next report period compared with the same period of the last year according to prediction, as well as explanations on the reasons□Applicable √Inapplicable3.5 Other significant events need to be explained3.5.1 Securities Investment√Applicable □InapplicableUnit: RMB Yuan Serialnumber Securities varietySecuritiescodeShort formofsecuritiesInitialinvestmentamount(RMB)Number ofshares held attheperiod-end(share)Book value atperiod-end(RMB)Proportion intotalsecuritiesinvestment atperiod-end(%)Profits orlosses in thereport period1 0 0 0.0000.00 0.00% 0.00 Other securities investment held at the period-end 0.00- 0.00 0.00% 0.00Profits or losses of securities sold in the report period- - - - 178,118.10 Total0.00- 0.00100%178,118.10 Explanation on securities investmentUp to the end of report period, there was no securities investment on financial assetsavailable for sale.3.5.2 Researches, interviews and visits received in report periodReception time Reception place Reception way Visitor Main discussion and materials provided1 Jul. 2010 The Company Field research Guangdong New ValueInvestment Co., LtdInquired about the production andoperation of the Company7 Jul. 2010 The Company Field research Shenyin & WanguoSecuritiesInquired about the production andoperation of the Company7 Jul. 2010 The Company Field research ICBC Credit SuisseAsset ManagementInquired about the production andoperation of the Company14 Jul. 2010 The Company Field research Dongguan Securities Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research Guosen Securities Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research GoldState Securities Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research FCS Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research Citicinternational Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research Boyer Allan InvestmentManage mentInquired about the production andoperation of the Company20 Jul. 2010 The Company Field research Invesco Securities Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research China Post Fund Inquired about the production and operation of the Company20 Jul. 2010 The Company Field research Xiaoniu AssetManagementInquired about the production andoperation of the Company20 Jul. 2010 The Company Field research ICBC Credit SuisseAsset ManagementInquired about the production andoperation of the Company20 Jul. 2010 The Company Field research ZRGX AssetsManagementInquired about the production andoperation of the Company11 Aug. 2010 The Company Field research China Merchants Fund Inquired about the production and operation of the Company27 Aug. 2010 The Company Field research KBC GoldState FundManagementInquired about the production andoperation of the Company3.6 Investment of financial derivatives□Applicable √Inapplicable3.6.1 Financial derivatives held during this report period □Applicable √Inapplicable。
