Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
SEMI-ANNUAL REPORT 2016
August 2016
1
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section I Important Statements, Contents and Terms
The board of directors (the “Board”), the board of supervisors (the “Board of Supervisors”) as well
as the directors, supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (the
“Company”) hereby guarantee the factuality, accuracy and completeness of the contents of the
Report, and shall be jointly and severally liable for any false representation, misleading statements
or material omissions in the Report.
All the directors attended the board meeting for the review of the Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into
share capital.
He Yong, head of the Company, Liu Xingming, accounting head for the Report, and Tang Qionglan,
head of the accounting organ (head of accounting), hereby guarantee that the Financial Report
carried in the Report is factual, accurate and complete.
Any future plans and other forward-looking statements mentioned in the Report shall not be
considered as virtual promises of the Company to investors. Therefore, investors are kindly
reminded to pay attention to possible investment risks.
The 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.
2
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Contents
Semi-annual Report 2016 .................................................................................................................. 1
Section I Important Statements, Contents and Terms .................................................................... 2
Section II Corporate Profile .............................................................................................................. 5
Section III Highlights of Accounting Data and Financial Indicators ............................................ 7
Section IV Report by the Board of Directors .................................................................................. 9
Section V Significant Events ........................................................................................................... 27
Section VI Share Changes and Shareholders’ Profile ................................................................... 43
Section VII Preference Shares ........................................................................................................ 48
Section VIII Directors, Supervisors and Senior Management..................................................... 49
Section IX Financial Report ............................................................................................................ 51
Section X Documents Available for Reference ............................................................................ 165
3
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Terms
Term Meaning
The Company, Company, FSL Foshan Electrical and Lighting Co., Ltd.
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
General Meeting Shareholders’ General Meeting of Foshan Electrical and Lighting Co., Ltd.
Board Board of Directors of Foshan Electrical and Lighting Co., Ltd.
Board of Supervisors Board of Supervisors of Foshan Electrical and Lighting Co., Ltd.
RMB Renminbi
Reporting Period, Current Period 1 January 2016-30 June 2016
4
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section II Corporate Profile
I Corporate information
Stock name FSL / FSL B Stock code 000541/200541
Stock exchange Shenzhen Stock Exchange
Company name in Chinese 佛山电器照明股份有限公司
Abbr. (if any) 佛山照明
Company name in English (if
FOSHAN ELECTRICAL AND LIGHTING CO.,LTD
any)
Abbr. (if any) FSL
Legal representative He Yong
II Contact information
Board Secretary Securities Representative
Name Lin Yihui Huang Yufen
No. 64, Fenjiang North Road, Chancheng No. 64, Fenjiang North Road, Chancheng
Address District, Foshan City, Guangdong District, Foshan City, Guangdong
Province, P.R.China Province, P.R.China
Tel. （0757）82966062/82810239 （0757）82966028
Fax （0757）82816276 （0757）82816276
E-mail fsl-yh@126.com fslhyf@163.com
III Other information
1. Ways to contact the Company
Did any change occur to the registered address, office address and their postal codes, website address and email
address of the Company during the Reporting Period?
□ Applicable √ Not applicable
The registered address, office address and their postal codes, website address and email address of the Company
did not change during the Reporting Period. The said information can be found in the 2015 Annual Report.
2. About information disclosure and the place where the Report is kept
Did any change occur to information disclosure media and the place where the Report is kept during the Reporting
Period?
5
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by CSRC for
disclosing the Report and the location where the Report is placed did not change during the Reporting Period. The
said information can be found in the 2015 Annual Report.
3. Change of the registered information
Did any change occur to the registered information during the Reporting Period?
□ Applicable √ Not applicable
The registration date and place of the Company, its business license No., taxation registration No. and
organizational code did not change during the Reporting Period. The said information can be found in the 2015
Annual Report.
6
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section III Highlights of Accounting Data and Financial Indicators
I Major accounting data and financial indicators
Whether the Company performs any retroactive adjustments to or restatements of its accounting data of last year
due to change in accounting policies or correction of accounting errors
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 1,755,670,927.44 1,524,362,786.49 15.17%
Net profit attributable to shareholders of
206,925,812.72 100,258,759.31 106.39%
the Company (RMB)
Net profit attributable to shareholders of
the Company after excluding exceptional 206,637,093.68 91,812,010.45 125.07%
profit and loss (RMB)
Net cash flows from operating activities
291,628,307.06 99,274,347.70 193.76%
(RMB)
Basic earnings per share (RMB/share) 0.1627 0.0788 106.47%
Diluted earnings per share (RMB/share) 0.1627 0.0788 106.47%
Weighted average return on equity (%) 3.94% 3.48% 0.46%
As at the end of the
As at the end of last year +/- (%)
Reporting Period
Total assets (RMB) 6,502,583,732.09 6,048,296,432.78 7.51%
Net assets attributable to shareholders of
5,354,894,438.92 5,023,546,888.12 6.60%
the Company (RMB)
II Differences in accounting data under domestic and overseas accounting standards
1. Differences in the net profit and the net assets disclosed in the financial reports prepared under
international and Chinese accounting standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Differences in the net profit and the net assets disclosed in the financial reports prepared under overseas
and Chinese accounting standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
7
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
III Exceptional profit and loss
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Profit/loss on disposal of non-current assets (including offset
-202,838.28
amount of asset impairment provisions)
Government grants charged to the profit/loss for the Reporting
Period (except for the government grants closely related to the
77,499.96
business of the Company and given at a fixed quota or amount in
accordance with the State’s uniform standards)
Profit/loss on entrusting others with investments or asset
2,659,136.99
management
Profit/loss on fair value changes of transactional financial assets
and liabilities & investment income from disposal of transactional
financial assets and liabilities as well as financial assets available 630,328.38
for sale, except for effectively hedging business related to normal
business operations of the Company
Non-operating income and expense other than the above -3,216,702.04
Other profit/loss that meet the definition of exceptional profit/loss 0.00
Less: Income tax 190,543.23
Minority interests (after tax) -531,837.26
Total 288,719.04 --
Explanation of why the Company classified an item as exceptional profit/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Profit and Loss, or reclassified any exceptional profit/loss item given as an example in the
said explanatory announcement to recurrent profit/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
8
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section IV Report by the Board of Directors
I Overview
Amid a stagnant macro-economy and increasingly intense competition in the Reporting Period, our management,
under the leadership of the Board, beefed up improvement and innovation of the Company so that we could keep
up with market changes. We extended our product line, broke into new markets and at the same time exerted strict
control over costs. As a result, our main business maintained a growing trend. For January-June 2016, we
achieved operating revenues of RMB 1755.6709 million, up 15.17% from a year earlier. To be specific, LED
products created sales revenue of RMB 1058.7601 million, up 42.27% from the same period of last year, while
traditional lighting products generated sales revenue of RMB 684.3323 million, representing a YoY decrease of
10.84%; our domestic sales revenue stood at RMB 1160.6609 million,, a 10.61% increase from the same period of
last year, while our overseas sales revenue stood at RMB 582.4315 million, up 25.96% on a year-on-year basis.
Our total profit stood at RMB 246.0382 million, up 97.70% year on year; and the net profit attributable to our
shareholders stood at RMB 206.9258 million, representing a YoY growth of 106.39%.
What we have done in the first half of 2016:
1. Optimized the structure of our channels and cultivated new growth points
In domestic marketing, in addition to solidifying our existing channel of wholesale, we also put in a great deal of
effort to develop new channels such as exclusive shop, commercial lighting, e-commerce and retail, which have
brought in decent revenue. In June 2016, we set up a new division of electrical equipment, trying to create a new
growth point for our future.
In overseas marketing, in face of a weak macro-economy, we continued to improve our market structure, further
solidifying the advantageous markets while expanding the strategic markets and breaking into new markets. We
adjusted our product and customer structure by strengthening the cooperation with heavy buyers. Also, we further
enhanced the promotion of our own brands for a larger market share. In the first half of 2016, our own brand
“FSL” saw a YoY surge of 172% in export revenue.
2. Beefed up R&D to create new growth points
Due to LED’s nature of a short life and fast update, we need to keep developing new products according to market
needs so that our LED revenue can keep growing. In the Reporting Period, we developed 116 new product series
(365 specifications) on our own, creating new growth points for revenue and profit.
3. Carried out automatic reform for better production efficiency
We have carried out automatic reform and trial production on different production lines by way of independent
9
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
improvement and purchase of external technology and equipment, which has yielded higher production efficiency,
a lower labor cost and better product quality. In the second half of the year, we will popularize a mature plan for
automatic reform on more production lines.
4. Strengthened management for higher profit
In face of a severe market situation, we have further improved management through improvement of various
management mechanisms. As a result, our gross profit margin and profit have also increased. Through
improvement and innovation in our procurement management, we have a better ability to bargain and the
procurement cost has been cut down. Meanwhile, our operating efficiency has increased due to better control over
the production process, inventories and accounts receivable. Keeping in mind “technology for benefits”, we have
cut down our costs and increased our efficiency with our R&D results. In addition, we have also brought up our
economic benefits by rational utilization of our own idle funds for better capital efficiency.
II Analysis of main business
YoY movements in major financial data
Unit: RMB
Main reason for
Reporting Period Same period of last year YoY +/-%
movement
Operating revenues 1,755,670,927.44 1,524,362,786.49 15.17%
Operating costs 1,322,982,560.70 1,166,043,441.01 13.46%
Selling expenses 73,251,807.41 82,224,380.27 -10.91%
Administrative expenses 82,117,827.94 114,295,848.69 -28.15%
Decrease in exchange
Finance costs -6,445,753.04 -11,207,940.80 42.49%
earnings
Corporate income tax 39,425,977.29 27,933,767.11 41.14% Increased total profit
R&D expenses 60,464,243.71 44,480,518.51 35.93% Increase in R&D inputs
Net cash flows from Increase in collected
291,628,307.06 99,274,347.70 193.76%
operating activities sales revenue
Increase in wealth
Net cash flows from
-429,601,884.64 -10,708,737.02 -3,911.70% management products
investing activities
purchased from banks
Net cash flows from Decrease in distributed
-15,935,708.57 -204,113,711.36 92.19%
financing activities cash dividends
Net increase in cash and Increase in investment
-152,952,917.79 -115,550,831.23 -32.37%
cash equivalents expenditure
Major changes to the profit structure or sources of the Company during the Reporting Period:
□ Applicable √ Not applicable
10
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
No major changes occurred to the profit structure or sources of the Company during the Reporting Period.
Reporting Period progress of the future development planning in the disclosed documents of the Company such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.:
□ Applicable √ Not applicable
The Company did not mention any future planning for the Reporting Period in its disclosed documents such as
share-soliciting prospectuses, offering prospectuses, asset reorganization reports, etc.
Review the progress of the previously disclosed business plan in the Reporting Period:
In the Reporting Period, according to the operating plan we drew up at the beginning of the year, we made rational
arrangements and then strictly implemented them. Therefore, we achieved a good result with our main business.
In the coming months of the year, we will continue to beef up all the work at a steady pace.
III Breakdown of main business
Unit: RMB
Operating Gross profit
Operating Gross profit Operating cost:
Operating cost revenue: YoY margin: YoY
revenue margin YoY +/-%
+/-% +/-%
By business segment
Lighting fixtures
1,743,092,467.69 1,315,261,790.95 24.54% 15.31% 13.32% 1.32%
and lamps
By product
Lighting fixtures
1,743,092,467.69 1,315,261,790.95 24.54% 15.31% 13.32% 1.32%
and lamps
Of which:
traditional 684,332,323.71 495,834,028.52 27.54% -10.84% -10.45% -0.32%
lighting products
LED 1,058,760,143.98 819,427,762.43 22.60% 42.27% 34.99% 4.16%
By geographical segment
Domestic 1,160,660,941.60 865,640,804.95 25.42% 10.61% 7.40% 2.23%
Overseas 582,431,526.09 449,620,986.00 22.80% 25.96% 26.76% -0.49%
IV Core competitiveness analysis
No significant changes occurred to our core competitiveness in the Reporting Period.
11
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
V Investment analysis
1. Investments in equities of external parties
(1) Investments in external parties
√ Applicable □ Not applicable
Investments in external parties
Investment amount in the Reporting Period Investment amount in the same period of last
+/-%
(RMB) year (RMB)
0.00 0.00 0.00%
Investees’ profile
Proportion of the Company’s
Name of investee Main business investment in the investee’s total
equity interests (%)
Qinghai Fozhao Lithium Energy Integrated development and utilization of salt
38.00%
Exploitation Co., Ltd. lake brine resource.
Electronic products, communication devices,
household appliances, furniture, speakers,
paper, paper products, chemicals for daily use,
shoes, hats and garment; domestic commerce,
Shenzhen Zhonghao (Group) Ltd. Lower than 5.00%
material supply and marketing (excluding
goods operated, sold and controlled by special
entities); supervision of the self-developed
projects
Production and sale of tungsten, molybdenum,
nickel and clad metal products, diamond die,
thin steel strips, electric light source products,
power supply products, industrial gas and
special equipment; production, installation,
sale, mechanic processing, vehicle repair,
Chengdu Hongbo Industrial Co., Ltd. consulting service, sale of goods (excluding 6.94%
those prohibited by the government from
circulating), export of products produced by it
or its member companies; import of needed
mechanic equipment, components, raw and
auxiliary materials; processing and
compensation trade
Development, manufacture and sale of lithium
ion batteries and materials, batteries, motors
Guoxuan High-tech Co., Ltd. and vehicle control systems; development, 8.33%
manufacture and sale of lithium ion battery
emergency power supply, energy storage
12
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
batteries and batteries for electric tools;
development, manufacture, sale and assembly
of high and low voltage switches and package
units, digital electric equipment, distribution
network intelligent equipment and components
and three box girders; development,
manufacture, sale and assembly of solar power,
wind power and other renewable power
equipment; development, manufacture, sale
and installation of energy-saving,
environment-friendly electrical appliances and
equipment, electrical appliances and
equipment for ships; development,
manufacture and sale of transformers,
transformer substations, large-scale charging
equipment and stations, and vehicle-mounted
chargers and high-voltage compartments;
import & export of its own goods and
technology and import & export of other
entities’ goods and technology as an agency;
and design and construction of city and road
lighting projects.
Foshan Fochen Road Development Building and operation of the Fochen (Foshan
7.66%
Company Limited Chencun) Road
(2) Equity-holdings in financial enterprises
√ Applicable □ Not applicable
Profit/loss
Initial Opening Closing
Opening Closing Closing in the
Enterprise Enterprise investment equity-hol equity-hol Accountin Equity
equity-hol equity-hol book value Reporting
name type cost dings dings g title source
dings (%) dings (%) (RMB) Period
(RMB) (share) (share)
(RMB)
Available
China
Commerci 30,828,816 69,735,795 -for-sale Additional
Everbright 18,546,754 0.04% 18,546,754 0.04% 0.00
al bank .00 .04 financial issue
Bank
assets
Available
Xiamen Commerci 292,574,13 109,714,17 109,714,17 292,571,13 -for-sale Additional
5.85% 5.85% 0.00
Bank al bank 3.00 6 6 3.00 financial issue
assets
Foshan Commerci Less than Less than Available Additional
500,000.00 229,792 229,792 500,000.00 0.00
branch of al bank 5.00% 5.00% -for-sale issue
13
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
China financial
Guangfa assets
Bank
323,902,94 128,490,72 128,490,72 362,806,92
Total -- -- 0.00 -- --
9.00 2 2 8.04
(3) Securities investments
√ Applicable □ Not applicable
Profit/loss in
Initial Opening Opening Closing Closing Closing
the Accou
Variety of Code of Name of investmen securities- securities- securities- securities- book Securities
Reporting nting
securities securities securities t cost holdings holdings holdings holdings value source
Period title
(RMB) (share) (%) (share) (%) (RMB)
(RMB)
Transa
ct
60,039,00 ional Purchase
Other 205007 7 Days 27,635.14
0.00 financi
al
asset
Transa
ct
140,001,0 ional Purchase
Other 205008 14 Days 131,177.73
00.00 financi
al
asset
Transa
ct
19,841,00 ional Purchase
Other 205010 28 Days 45,661.48
0.00 financi
al
asset
Transa
ct
19,800,19 ional Purchase
Bond 204001 GC001 1,342.23
8.00 financi
al
asset
Transa
79,803,19 ct Purchase
Bond 204004 GC004 26,965.79
2.00 ional
financi
14
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
al
asset
Transa
ct
238,911,9 ional Purchase
Bond 204007 GC007 112,566.52
45.00 financi
al
asset
Transa
ct
19,901,99 ional Purchase
Bond 204014 GC014 23,161.39
0.00 financi
al
asset
Transa
ct
ional Purchase
Stock 300456 Navior 7,005.00 5,018.10
financi
al
asset
578,305,3
Total 500 -- 0 -- 0.00 373,528.38 --
30.00
Disclosure date of the
announcement about the board’s
2014-01-23
consent for the securities
investment
Disclosure date of the
announcement about the general
meeting’s consent for the
securities investment (if any)
Note: The funds for the “pledged repo” and “reverse repo of government bonds” (“other” and “bond” in the table
above) were strictly controlled within the line approved by the board, without use out of line. In order to better use
the funds, we carried out repeated investment in the mature investment products above in multiple transactions. As
such, the investment costs for the “other” and “bond” were their accumulative amounts which were repeatedly
invested within the first quarter of 2016.
On 24 March 2016, the Eighth Board convened a third meeting, which resolved on the termination of the said
securities investment since April 2016. And we no longer conducted such business in the second quarter of the
year.
15
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(4) Shareholdings in other listed companies
√ Applicable □ Not applicable
In the Reporting Period, we held 73,006,150 shares in Guoxuan High-tech Co., Ltd. (stock name: Guoxuan
High-tech; stock code: 002074), representing a stake of 8.33%.
2. Cash management entrustment, derivative financial instrument investments and entrusted loans
(1) Cash management entrustment
√ Applicable □ Not applicable
Unit: RMB'0,000
Principals
Amount Actual
actually
Related Related Value of Commenc Way of provided profit/loss
Name of Product Terminati recovered Projected
party or transactio entrusted ement repaymen for in the
trustee type on date in the earnings
not n or not cash date t impairme Reporting
Reporting
nt (if any) Period
Period
Xindache
Guarantee Principal
ng
d repaymen
sub-branc
principal 2016-04- 2016-07- t with
h of Bank Not Not 3,000 22.17
and 05 07 interest
of
floating upon
Guangzho
earnings maturity
u
Foshan
Guarantee Principal
Dunhou
d repaymen
sub-branc
principal 2016-04- 2016-05- t with
h of Not Not 4,000 4,000 9.59
and 05 10 interest
China
floating upon
Construct
earnings maturity
ion Bank
Sales
Departme
nt of Guarantee Principal
Foshan d repaymen
branch of principal 2016-04- 2016-05- t with
Not Not 5,000 5,000 13.42
Industrial and 05 10 interest
and floating upon
Commerc earnings maturity
ial Bank
of China
Foshan Not Not Guarantee 8,000 2016-04- 2016-05- Principal 8,000 25.32
16
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
branch of d 15 20 repaymen
China principal t with
Minsheng and interest
Bank floating upon
earnings maturity
Guangzho
Guarantee Principal
u
d repaymen
Huanshid
principal 2016-04- 2016-07- t with
ong Not Not 8,000 58.8
and 08 08 interest
sub-branc
floating upon
h of SPD
earnings maturity
Bank
Guarantee Principal
Foshan d repaymen
branch of principal 2016-04- 2016-07- t with
Not Not 10,000 69.62
Huaxia and 15 04 interest
Bank floating upon
earnings maturity
Sales
Departme
nt of Guarantee Principal
Foshan d repaymen
branch of principal 2016-05- 2016-11- t with
Not Not 5,000 18.58
Industrial and 15 14 interest
and floating upon
Commerc earnings maturity
ial Bank
of China
Guarantee Principal
Foshan
d repaymen
Jiangwan
principal 2016-05- 2016-08- t with
sub-branc Not Not 3,000 11.3
and 12 11 interest
h of Ping
floating upon
An Bank
earnings maturity
Foshan
Guarantee Principal
Dunhou
d repaymen
sub-branc
principal 2016-05- 2016-11- t with
h of Not Not 8,000 31.25
and 16 14 interest
China
floating upon
Construct
earnings maturity
ion Bank
Sales Not Not Guarantee 3,000 2016-06- 2016-12- Principal 5.86
17
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Departme d 06 05 repaymen
nt of principal t with
Foshan and interest
branch of floating upon
Industrial earnings maturity
and
Commerc
ial Bank
of China
Total 57,000 -- -- -- 17,000 217.58 48.33
Source of entrusted cash Our own funds
Cumulative amount of principal and
0
earnings overdue
Lawsuits (if applicable) N/A
Disclosure date of the announcement about
the board’s consent for the cash 2016-03-28
management entrustment (if any)
Disclosure date of the announcement about
the general meeting’s consent for the cash
management entrustment (if any)
(2) Derivative financial instrument investments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Entrusted loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Use of raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Main controlled and joint stock companies
√ Applicable □ Not applicable
Main controlled and joint stock companies:
Unit: RMB
Company Relationship Industry Main Registered Total assets Net assets Operating Operating Net profit
18
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
name with the products/ser capital revenues profit
Company vices
Production
and
operation of
electronic
ballasts,
electronic
transformer
s, electronic
igniters,
electric
light source
products,
equipment,
fittings,
electrical
materials,
automobile
components
, home
Foshan
appliances,
Chansheng
Manufactur socket 1,000,000.0 43,702,754. 13,807,711. 79,251,285. -6,599,69
Electronic Subsidiary -5,044,920.47
e outlets, 0 65 03 62 6.06
Ballast Co.,
power
Ltd.
switches,
fire-protecti
on
products,
ventilation
equipment
and LED
products.
(Where
approval
from
relevant
authorities
is required
for an
operating
project
according
to law, it
19
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
shall be
obtained
before
operation.)
Producer of
lamps,
electric
lighting
Foshan
products
Chanchang
and related
Electric Manufactur 72,782,944. 106,992,54 100,014,58 25,826,877.
Subsidiary fittings, 53,421.66 43,965.75
Appliances e 00 2.19 0.81 82
providing
(Gaoming)
relevant
Co., Ltd.
installation
and
consulting
services
R&D,
production
and sales of
Foshan lamps,
Taimei household
Manufactur 66,390,080. 33,541,781. 51,763,010. 2,084,509
Times Subsidiary appliances 500,000.00 1,570,356.09
e 20 56 94 .17
Lamps Co., and fittings,
Ltd. and other
electric
lighting
products
Developme
nt and sale
of electrical
appliances,
lighting and
FSL New mechanical
Light & electrical
Manufactur 50,000,000. 63,574,387. 53,583,682. 10,645,659.
Source Subsidiary products; -8,138.48 -46,653.47
e 00 48 22 91
Technology engineering
Co., Ltd. design,
constructio
n and
maintenanc
e of lighting
and
20
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
mechanical
& electrical
projects;
design,
constructio
n and
technical
service for
intelligent
constructio
n projects;
investment,
design &
consulting
service,
constructio
n and
service for
energy-savi
ng projects;
contractual
energy
managemen
t and
technical
service;
energy-savi
ng project
appraisal;
internationa
l trade; and
developmen
t,
production
and sale of
electric
light source
products.
(Where
approval
from
relevant
authorities
is required
21
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
for an
operating
project
according
to law, it
shall be
obtained
before
operation.)
Production
of
energy-savi
ng lighting
products,
lamps and
lighting
Nanjing equipments;
Fozhao lighting
Lighting projects;
Manufactur 41,683,200. 110,017,67 63,727,345. 27,787,455. 1,422,793
Component Subsidiary energy-savi 1,119,556.01
e 00 4.89 06 59 .28
s ng
Manufacturi technology
ng Co., Ltd. developmen
t and
production
of relevant
fittings; sale
of
self-produc
ed products
Production
and sale of
equipments
and
products of
FSL electric
(Xinxiang) Manufactur light 35,418,439. 59,349,064. 43,874,051. 25,844,884. 4,576,506
Subsidiary 3,323,202.43
Lighting e source; and 76 06 70 01 .31
Co., Ltd. sale of
components
of electric
light
source,
related
22
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
materials,
electrical
materials,
automobile
components
, lamps and
fittings
Financing
lease, lease,
lease
consulting
and
guaranty,
financing
Guangdong
lease
Fozhao
service for 200,000,00 221,627,00 221,530,68 2,298,509
Financing Subsidiary Finance 0.00 1,723,882.35
new-energy 0.00 6.59 6.97 .80
Lease Co.,
automobiles
Ltd.
& main
components
,
energy-savi
ng lighting
products &
projects
R&D and
production
of electric
light source
products,
equipment,
fittings,
FSL electrical
Lighting materials,
manufactur 15,000,000. 64,480,414. 36,781,139. 73,670,084.
Equipment Subsidiary automobile 67,064.30 -360,881.70
e 00 64 12 44
Co., Ltd. components
, home
appliances,
socket
outlets,
power
switches,
fire-protecti
on
23
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
products,
ventilation
equipment,
LED
products,
etc.;
domestic
trade,
import and
export of
technology
and goods
5. Significant projects invested with non-raised funds
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Performance forecast for January-September 2016
Warning of possible loss or considerable YoY movement in the accumulated net profit made during the
period-beginning to the end of the next reporting period, as well as the reasons
□ Applicable √ Not applicable
VII Explanation of the Board of Directors and the Board of Supervisors on the
“non-standard” auditor’s report issued by the CPAs firm for the Reporting Period
□Applicable √ Not applicable
VIII Explanation of the Board of Directors on the issues mentioned in the “non-standard”
auditor’s report issued by the CPAs firm for last year
□Applicable √ Not applicable
IX Profit distribution in the Reporting Period
Profit distribution plan implemented in the Reporting Period, especially execution and adjustment of any cash
dividend plan and any plan for converting capital reserve into share capital
√ Applicable □ Not applicable
24
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
On 22 April 2016, the Preliminary Plan for Profit Distribution 2015 was considered and approved at the 2015
Annual General Meeting. According to the Plan, based on our total 1,272,132,868 shares as at the end of 2015, we
would distribute a cash dividend of RMB0.125 (tax inclusive; dividends for B-shareholders paid in HKD) per 10
shares to our A-shareholders and B-shareholders. On 7 May 2016, we disclosed the Announcement on
Implementation of Profit Distribution 2015, according to which the book closure day and ex-dividend day for
A-shareholders were 12 May 2016 and 13 May 2016 respectively, while the last trading day, ex-dividend day and
book closure day for B-shareholders were 12 May 2016, 13 May 2016 and 17 May 2016. By the end of the
Reporting Period, the implementation of the profit distribution plan 2015 had been completed.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of
Association and the resolution of the general Yes
meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and
Yes
mechanism
Independent directors fulfilled their
Yes
responsibilities and played their due role.
Minority shareholders have the chance to fully
express their opinion and desire and their legal Yes
rights and interests were fully protected.
In adjustment or alteration of the cash dividend
policy, the conditions and procedure were in Yes
compliance with regulations and transparent.
X Preliminary plan for profit distribution and converting capital reserve into share capital for
the Reporting Period
□ Applicable √ Not applicable
The Company plans not to distribute cash dividends or bonus shares or convert capital reserve into share capital
for the first half of the year.
XI Visits paid to the Company for purposes of research, communication, interview, etc.
√ Applicable □ Not applicable
Main discussion and
Date of visit Place of meeting Way of visit Type of visitor Visitor materials provided by the
Company
2016-01-28 Company building One-to-many Institution China Merchants Production and operation of
25
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
meeting Securities, China the Company
Southern Asset
Management,
Dacheng Fund,
Shenzhen Senhe
Asset Management
Huatai Securities,
One-to-many Baoying Fund, Production and operation of
2016-03-19 Company building Institution
meeting China Cinda Asset the Company
Management
The Listed
Companies
Association of
Guangdong,
One-to-many Production and operation of
2016-05-05 Company building Other Guangdong Radio
meeting the Company
and Television,
Investment
Express, 30
individuals
26
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section V Significant Events
I Corporate governance
In the Reporting Period, in strict accordance with the Company Law, the Securities Law, the Code of Corporate
Governance of Listed Companies, the Stock Listing Rules of Shenzhen Stock Exchange and other laws,
regulations and rules, we kept improving our corporate governance structure, optimizing internal management and
standardizing operation. We have formulated an organizational management system including the Shareholders’
General Meeting, the Board of Directors, the Board of Supervisors and the management team, which are
functioning smoothly. We have also formulated our Articles of Association, the Rules of Procedure for the
Shareholders’ General Meeting, the Board of Directors and the Board of Supervisors, the rules of procedure for
the special committees under the Board of Directors, the Working Rules for GM and some other rules, as well as
internal control rules governing almost all respects in operation and management such as financial management,
investment management, information disclosure, related transactions, provision of guarantees for external parties,
etc., which are all effectively executed. In the Reporting Period, the actual situation of our corporate governance
did not differ from the Company Law and the relevant CSRC requirements.
II Lawsuits
In March 2013, CSRC Guangdong administered an administrative punishment on the illegal information
disclosure of the Company. During the period from September 2013 to May 2016, a total of 2,767 plaintiffs
separately sued the Company to Guangzhou Intermediate People’s Court for false securities statements,
demanding civil compensations of RMB386.845 million and HKD1.328 million in total from the Company for its
illegal information disclosure. From November 2014 to December 2015, Guangzhou Intermediate People’s Court
made judgments for 2,755 of the aforesaid cases, ruling the Company to compensate the 2,755 plaintiffs with a
total of RMB182.7365 million and HKD7.3582 million and bear the legal fare of RMB3.2332 million. Currently,
except for 12 pending cases (RMB2.7336 million involved) and 31 appealing plaintiffs (RMB1.3682 million
involved), the judgments for all the other plaintiffs are final and effective. Up to 22 August 2016, the Company
has made a total compensation of RMB 190.0978 million (legal fares inclusive) to 2715 plaintiffs (excluding the
37 rejected plaintiffs). These cases of false securities statements had an influence of RMB61.4383 million on the
total profits of the Company in 2014 and RMB131.8899 million on that in 2015, and expectedly have no
significant influence on the financial position of the Company for 2016.
27
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Other lawsuits
□ Applicable √ Not applicable
III Queries raised by media
□ Applicable √ Not applicable
There were no such queries as raised by most media against the Company in the Reporting Period.
IV Bankruptcy and restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Asset transactions
1. Purchase of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Business mergers
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Implementation of equity incentive and its influence
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Significant related transactions
1. Related transactions arising from routine operation
√ Applicable □ Not applicable
Related Relation Type of Content Pricing Transact Transact As a Approve Over the Mode of Obtaina Disclosu Index
party with the transacti s of principl ion price ion percenta d approve settleme ble re date to the
28
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Compan on transacti e amount ge of transacti d line or nt market disclos
y on (RMB’0 transacti on line not price for ed
,000) ons of (RMB’0 transacti inform
the same ,000) ons of ation
kind the same
kind
Purchasi
Corpora ng
Prosperi
tion that products
ty
holds and Purchas
Lamps www.c
over 5% receivin e of Market Remitta 2016-03
& 120.58 120.58 0.11% 650 No 120.58 ninfo.c
shares g labor material price nce -28
Compon om.cn
of the service s
ents
Compan from
Limited
y related
party
Act-in-c
oncert Purchasi
party of ng
Prosperi
a products
ty
corporat and Purchas
Electric www.c
ion that receivin e of Market Remitta 2016-03
al 467 467 0.41% 1,500 No 467.00 ninfo.c
holds g labor material price nce -28
(China) om.cn
over 5% service s
Co.,
shares from the
Ltd.
of the related
Compan party
y
Act-in-c
oncert Purchasi
Hangzh party of ng
ou a products
Times corporat and Purchas
www.c
Lighting ion that receivin e of Market Remitta 2016-03
97.81 97.81 0.09% 350 No 97.81 ninfo.c
and holds g labor material price nce -28
om.cn
Electric over 5% service s
al Co., shares from the
Ltd. of the related
Compan party
y
Foshan Under Purchasi Purchas www.c
Market Remitta 2016-03
NationS the same ng e of 5093.54 5,093.54 4.47% 30,000 No 5,093.54 ninfo.c
price nce -28
tar actual products material om.cn
29
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Optoele controll and s
ctronics er receivin
Co., g labor
Ltd. service
from the
related
party
Purchasi
Guangd ng
ong products
Under
Fenghua and Purchas
the same www.c
Advanc receivin e of Market Remitta 2016-03
actual 295.04 295.04 0.26% 2,000 No 295.04 ninfo.c
ed g labor material price nce -28
controll om.cn
Holding service s
er
Co., from the
Ltd. related
party
Selling
Corpora
Prosperi products
tion that
ty and
holds
Lamps providin www.c
over 5% Selling Market Remitta 2016-03
& g labor 1382.87 1,382.87 0.72% 4,200 No 1,382.87 ninfo.c
shares products price nce -28
Compon service om.cn
of the
ents to the
Compan
Limited related
y
party
Act-in-c
oncert
Prosperi Selling
party of
ty products
a
(Hangzh and
corporat
ou) providin www.c
ion that Selling Market Remitta 2016-03
Lighting g labor 6.34 6.34 0.00% 350 No 6.34 ninfo.c
holds products price nce -28
and service om.cn
over 5%
Electric to the
shares
al Co., related
of the
Ltd. party
Compan
y
Prosperi Act-in-c Selling
ty oncert products www.c
Selling Market Remitta 2016-03
Electric party of and 12.78 12.78 0.01% 120 No 12.78 ninfo.c
products price nce -28
al a providin om.cn
(China) corporat g labor
30
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Co., ion that service
Ltd. holds to the
over 5% related
shares party
of the
Compan
y
Act-in-c
oncert
party of
a Selling
corporat products
OSRA
ion that and
M
holds providin www.c
(China) Selling Market Remitta 2016-03
over 5% g labor 497.48 497.48 0.26% 1,300 No 497.48 ninfo.c
Lighting products price nce -28
shares service om.cn
Co.,
of the to the
Ltd.
Compan related
y (for party
the past
12
months)
Act-in-c
oncert
party of
a Selling
corporat products
ion that and
Osram
holds providin www.c
Asia Selling Market Remitta 2016-03
over 5% g labor 548.02 548.02 0.28% 2,500 No 548.02 ninfo.c
Pacific products price nce -28
shares service om.cn
Ltd.
of the to the
Compan related
y (for party
the past
12
months)
Shangha A Selling
i compan products
www.c
Linxian y with a and Selling Market Remitta 2016-03
10.18 10.18 0.01% 70 No 10.18 ninfo.c
Mechani related providin products price nce -28
om.cn
cal and individu g labor
Electric al in it service
31
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
al as a to the
Equipm senior related
ent Co., executiv party
Ltd. e
Selling
Foshan products
NationS Under and
tar the same providin www.c
Selling Market Remitta 2016-03
Optoele actual g labor 14 14 0.01% 100 No 14.00 ninfo.c
products price nce -28
ctronics controll service om.cn
Co., er to the
Ltd. related
party
Total -- -- 8,545.64 -- 43,140 -- -- -- -- --
Details of any sales return of a large
Not applicable
amount
Give the actual situation in the On 22 April 2016, the Company convened the 2015 Annual Shareholders’ General Meeting,
Reporting Period (if any) where a at which the Proposal on the Routine Related-party Transactions for 2016 was reviewed and
forecast had been made for the total approved. It was estimated that the amount of procurement from related parties in 2016
amounts of routine related-party would stand at RMB345 million while the amount of sales to related parties at RMB86.4
transactions by type to occur in the million. In the Reporting Period, the actual amount of purchase from related parties was
Reporting Period RMB60.7397 million and that of sale to related parties was RMB24.7166 million.
Reason for any significant difference
between the transaction price and the Not applicable
market reference price (if applicable)
2. Related-party transactions arising from acquisition and sale of assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Related-party transactions arising from joint investment in external parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Credits and liabilities with related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
32
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
5. Other related transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Occupation of the Company’s funds for non-operating purposes by the controlling
shareholder and its related parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IX Significant contracts and fulfillment thereof
1. Trusteeship, contracting and leasing
(1) Trusteeship
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
√ Applicable □ Not applicable
Particulars about the leasing:
The Company and Shanghai Jiabao Industry & Commerce (Group) Co., Ltd. (hereinafter referred to as “Shanghai
Jiabao) signed the Trademark License Agreement, where Shanghai Jiabao agreed to license the Company to
exclusively use its trademarks “Hu Zi” (registration No.: 100940), “Lian He” (registration No.: 100950) and “Lian
He” (registration No.: 3603597) from 1 January 2014 to 31 December 2016; and the Company shall pay to
Shanghai Jiabao 1% of the net sales of products produced by the Company and carrying the licensed trademarks
as the license fee, but it shall not be less than RMB1 million per year (for details, see the Announcement No.
2014-002 on Signing the Trademark License Agreement disclosed on http://www.cninfo.com.cn dated 9 January
2014).
Any leasing event incurring gain/loss reaching more than 10% of the total profits of the Company in the Reporting
Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
33
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
2. Guarantees provided by the Company
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other significant contracts
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Other significant transactions
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Commitments made by the Company or any shareholder holding over 5% of the
Company’s shares in the Reporting Period or such commitments carried down into the
Reporting Period
√ Applicable □ Not applicable
Date of
Term of
Commitment Commitment maker Contents commitment Fulfillment
commitment
making
Commitments made in share
reform
Electronics Group and its
act-in-concert parties Shenzhen
Rising Investment and Hong
Kong Rising Investment have
made a commitment that within
12 months from the completion
of their acquisitions, they shall
Commitments made in not transfer or entrust others to
acquisition documents or Controlling manage the shares directly or
2015-12-04 12 months In execution
shareholding alteration shareholder indirectly held by them in the
documents Company, nor shall they allow
the Company to repurchase
those shares, except for the case
where those shares may be
transferred for no compensation
due to any business or asset
integration with their actual
controller or their actual
34
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
controller’s controlled
subsidiaries.
Electronics Group and its
act-in-concert parties Shenzhen
Rising Investment and Hong
Kong Rising Investment have
made a commitment that the
business of Foshan NationStar
Optoelectronics Co., Ltd. that is
in competition with the business
Controlling
of the Company takes up only a 2015-12-04 24 months In execution
shareholder
small part in NationStar’s total
business, they shall gradually
reduce or eliminate the
horizontal competition as
planned through business
integration or other ways or
arrangements within the coming
24 months.
Electronics Group and its
act-in-concert parties Shenzhen
Rising Investment and Hong
Kong Rising Investment have
made more commitments as
follows to avoid horizontal
competition with the Company:
1. They shall conduct
supervision and restraint on the
production and operation
activities of themselves and
their relevant enterprises so that
Controlling
besides the enterprise above that 2015-12-04 Long-standing In execution
shareholder
is in horizontal competition with
the Company for now, if the
products or business of them or
their relevant enterprises
become the same with or similar
to those of the Company or its
subsidiaries in the future, they
shall take the following
measures: (1) If the Company
thinks necessary, they and their
relevant enterprises shall reduce
and wholly transfer their
35
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
relevant assets and business;
and (2) If the Company thinks
necessary, it is given the priority
to acquire first, by proper
means, the relevant assets and
business of them and their
relevant enterprises. 2. All the
commitments made by them to
eliminate or avoid horizontal
competition with the Company
are also applicable to their
directly or indirectly controlled
subsidiaries. They are obliged to
urge and make sure that other
subsidiaries execute what’s
prescribed in the relevant
document and faithfully honor
all the relevant commitments. 3.
If they or their directly or
indirectly controlled
subsidiaries break the aforesaid
commitments and thus cause a
loss for the Company, they shall
compensate the Company on a
rational basis.
Electronics Group and its
act-in-concert parties Shenzhen
Rising Investment and Hong
Kong Rising Investment have
made a commitment that during
their direct or indirect holding
of the Company’s shares, they
shall 1. strictly abide by the
regulatory documents of the
Controlling
CSRC and the SZSE, the 2015-12-04 Long-standing In execution
shareholder
Company’s Articles of
Association, etc. and not harm
the interests of the Company or
other shareholders of the
Company in their production
and operation activities by
taking advantage of their
position as the controlling
shareholder and actual
36
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
controller; 2. make sure that
they or their other controlled
subsidiaries, branch offices,
jointly-run or associated
companies (the “Relevant
Enterprises” for short) will try
their best to avoid or reduce
related-party transactions with
the Company or the Company’s
subsidiaries; 3. strictly follow
the market principle of justness,
fairness and equal value
exchange for necessary and
unavoidable related-party
transactions between them and
their Relevant Enterprises and
the Company, and withdraw
from voting when a
related-party transaction with
them or their Relevant
Enterprises is being voted on at
a general meeting or a board
meeting, and execute the
relevant approval procedure and
information disclosure duties
pursuant to the applicable laws,
regulations and regulatory
documents. Where the aforesaid
commitments are broken and a
loss is thus caused for the
Company, its subsidiaries or the
Company’s other shareholders,
they shall be obliged to
compensate.
In order to ensure the
independence of the Company
in business, personnel, asset,
organization and finance,
Controlling Electronics Group and its
2015-12-04 Long-standing In execution
shareholder act-in-concert parties Shenzhen
Rising Investment and Hong
Kong Rising Investment have
made the following
commitments: 1. They will
37
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
ensure the independence of the
Company in business: (1) They
promise that the Company will
have the assets, personnel,
qualifications and capabilities
for it to operate independently
as well as the ability of
independent, sustainable
operation in the market. (2)
They promise not to intervene
in the Company’s business
activities other than the
execution of their rights as the
Company’s shareholders. (3)
They promise that they and their
related parties will not be
engaged in business that is
substantially in competition
with the Company’s business.
And (4) They promise that they
and their related parties will try
their best to reduce related-party
transactions between them and
the Company; for necessary and
unavoidable related-party
transactions, they promise to
operate fairly following the
market-oriented principle and at
fair prices, and execute the
transaction procedure and the
duty of information disclosure
pursuant to the applicable laws,
regulations and regulatory
documents. 2. They will ensure
the independence of the
Company in personnel: (1) They
promise that the Company’s
GM, deputy GMs, CFO,
Company Secretary and other
senior management personnel
will work only for and receive
remuneration from the
Company, not holding any
positions in them or their other
38
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
controlled subsidiaries other
than director and supervisor. (2)
They promise the Company’s
absolute independence from
their related parties in labor,
human resource and salary
management. And (3) They
promise to follow the legal
procedure in their
recommendation of directors,
supervisors and senior
management personnel to the
Company and not to hire or
dismiss employees beyond the
Company’s Board of Directors
and General Meeting. 3. They
will ensure the independence
and completeness of the
Company in asset: (1) They
promise that the Company will
have a production system, a
auxiliary production system and
supporting facilities for its
operation; legally have the
ownership or use rights of the
land, plants, machines,
trademarks, patents and
non-patented technology in
relation to its production and
operation; and have independent
systems for the procurement of
raw materials and the sale of its
products. (2) They promise that
the Company will have
independent and complete
assets all under the Company’s
control and independently
owned and operated by the
Company. And (3) They
promise that they and their other
controlled subsidiaries will not
illegally occupy the Company’s
funds and assets in any way, or
use the Company’s assets to
39
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
provide guarantees for the debts
of themselves or their other
controlled subsidiaries with. 4.
They will ensure the
independence of the Company
in organization: (1) They
promise that the Company has a
sound corporate governance
structure as a joint-stock
company with an independent
and complete organization
structure. And (2) They promise
that the operational and
management organs within the
Company will independently
execute their functions
according to laws, regulations
and the Company’s Articles of
Association. And 5. They will
ensure the independence of the
Company in finance: (1) They
promise that the Company will
have an independent financial
department and financial
accounting system with
normative, independent
financial accounting rules. (2)
They promise that the Company
will have independent bank
accounts and not share bank
accounts with its related parties.
(3) They promise that the
Company’s financial personnel
do not hold concurrent positions
in its related parties. (4) They
promise that the Company will
independently pay its tax
according to law. And (5) They
promise that the Company can
make financial decisions
independently and that they will
not illegally intervene in the
Company’s use of its funds.
Commitments made in time
40
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
of asset restructuring
Commitments made in time
of IPO or refinancing
The profits distributed by the
Company in cash every year
Other commitments made to
The Company shall not be less than 30% of the 2009-05-27 Long-standing In execution
minority shareholders
distributable profits it has
achieved in the year.
Executed in time Yes
Specific reasons for failing
to fulfill commitments in Not applicable
time and plans for next step
XI Engagement and disengagement of the CPAs firm
Has the semi-annual financial report been audited?
□Yes √ No
This semi-annual report is not audited.
XII Punishments and rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Delisting risk due to violation of any law or regulation
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Other significant events
√ Applicable □ Not applicable
In the Reporting Period, Suzhou Mont Lighting Co., Ltd. (Suzhou Mont), one of our controlled subsidiaries, was
sued by its creditor Suzhou LiftAll Electronics Co., Ltd. in the People’s Court of Suzhou Industrial Park,
requesting the Court to carry out bankruptcy liquidation on Suzhou Mont. The Court has ruled in favor of the
plaintiff and appointed Jiangsu Yingyuan Law Firm as the custodian of Suzhou Mont. We have an investment of
RMB24.36 million in Suzhou Mont, as well as creditor’s rights of RMB14.1873 million (not yet judicially
confirmed), totaling RMB38.5473 million. We had provided in full for the impairment of the said assets in 2015.
Therefore, the bankruptcy and liquidation of Suzhou Mont is expected to have no significant impact on our
41
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
business results of 2016 (for details, see our Announcement on Applied Bankruptcy and Liquidation for
Controlled Subsidiary Suzhou Mont Lighting Co., Ltd., Announcement on Court Acceptance of Controlled
Subsidiary’s Bankruptcy and Liquidation, Progress Announcement on Controlled Subsidiary’s Bankruptcy and
Liquidation disclosed on www.cninfo.com.cn dated 19 April 2016, 10 May 2016 and 4 June 2016 respectively).
XV Corporate bonds
Corporate bonds publicly offered and listed on the stock exchange which were undue before the approval date of
the Report or were due but could not be redeemed in full
No
42
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section VI Share Changes and Shareholders’ Profile
I Changes in shares
Unit: Share
Before Increase/decrease (+/-) After
Increase
Percentag New Bonus from Percentag
Number Other Subtotal Number
e issues shares capital e
reserve
12,655,86 12,658,18
0.99% 2,325 2,325 1.00%
1. Restricted shares 1 6
1.3 Shares held by other
4,539,832 0.36% 2,325 2,325 4,542,157 0.36%
domestic investors
Of which: shares held by
3,959,926 0.31% -17,564 -17,564 3,942,362 0.31%
domestic corporations
Shares held by
579,906 0.05% 19,889 19,889 599,795 0.05%
domestic individuals
1.4 Shares held by foreign
8,116,029 0.64% 8,116,029 0.64%
investors
Shares held by
8,116,029 0.64% 8,116,029 0.64%
foreign individuals
1,259,477, 1,259,474
99.01% -2,325 -2,325 99.00%
2. Non-restricted shares 007 ,682
974,861,5 974,838,4
2.1 RMB ordinary shares 76.63% -23,125 -23,125 76.63%
88 63
2.2 Domestically listed 284,615,4 284,636,2
22.37% 20,800 20,800 22.37%
foreign shares 19 19
1,272,132, 1,272,132
3. Total shares 100.00% 100.00%
868 ,868
Reasons for share changes
√ Applicable □ Not applicable
1. In the Reporting Period, the ownership of 17,564 restricted shares was transferred from domestic corporations
to domestic individuals.
2. In the Reporting Period, some supervisors of the Company increased their shareholdings in the Company,
43
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
representing an increase of 13,125 restricted shares.
3. In the Reporting Period, the Company’s shares held by some outgoing directors and senior executives were
locked up and unlocked as required, resulting in a decrease of 10,800 restricted shares.
4. Due to Item 2 and 3 above, the Company’s restricted shares increased by 2,325 shares in the Reporting Period.
Approval for share changes
□ Applicable √ Not applicable
Transfer of share ownership
□ Applicable √ Not applicable
Effects of share changes on the basic earnings per share, diluted earnings per share, net assets per share
attributable to ordinary shareholders of the Company and other financial indicators over last year and the last
reporting period
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulatory authorities to
disclose
□ Applicable √ Not applicable
Changes in the total shares, shareholder structure, asset structure and liability structure
□ Applicable √ Not applicable
II Total number of shareholders and their shareholdings
Unit: share
Total number of preference
Total number of ordinary shareholders who had resumed
shareholders at the end of the 83,929 their voting right at the end of 0
Reporting Period the Reporting Period (if any)
(see note 8)
Shareholdings of ordinary shareholders with a stake over 5% or top 10 ordinary shareholders
Number Pledged or frozen shares
of Increase/de Number
Shareholdin ordinary crease of of Number of
Name of Nature of g shares shares restricted non-restrict
shareholder shareholder percentage held at the during the ordinary ed ordinary Status Number
(%) end of the Reporting shares shares held
Reporting Period held
Period
44
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Hong Kong
Wah Shing
Foreign 171,360,3 171,360,39
Holding 13.47%
corporation 91 1
Company
Limited
Prosperity
Lamps & Foreign 133,577,1 133,577,14
10.50%
Components corporation 43 3
Limited
Guangdong
Electronics
State-owned 60,357,72
Information 4.74% 60,357,728
corporation 8
Industry Group
Ltd.
Shenzhen
Rising
State-owned 57,539,67
Investment 4.52% 18002924 57,539,671
corporation 1
Development
Co., Ltd.
Central Huijin
Asset State-owned 30,799,00
2.42% 30,799,000
Management corporation 0
Co., Ltd.
DBS Vickers
Foreign 23,514,35
(Hong Kong) 1.85% 23,514,355
corporation 5
Ltd A/C Clients
Hong Kong
Rising
Foreign 23,165,68
Investment 1.82% 23,165,684
corporation 4
Development
Co., Ltd.
Essence
International
Foreign 21,931,65
Securities 1.72% 21,931,657
corporation 7
(Hong Kong)
Co., Ltd.
National Social
15,903,95
Security Fund Other 1.25% 15,903,957
7
Portfolio 113
New China Life 10,918,99
Other 0.86% 10,918,992
Insurance Co., 2
45
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Ltd.-Conventio
nal-Common
Insurance
Product-018L-C
T001-Shenzhen
Strategic investor or general
corporation becoming a top ten
N/A
ordinary shareholder due to placing
of new shares (if any) (see Note 3)
Among the top ten shareholders of the Company, Hong Kong Wah Shing Holding Company
Limited, Guangdong Electronics Information Industry Group Ltd., Shenzhen Rising
Related or act-in-concert parties Investment Development Co., Ltd. and Hong Kong Rising Investment Development Co., Ltd.
among the shareholders above are act-in-concert parties. Apart from that, it is unknown whether there is among the top ten
shareholders any other related parties or act-in-concert parties as defined in the Administrative
Measures for the Acquisition of Listed Companies.
Shareholdings of the top ten non-restricted ordinary shareholders
Number of non-restricted ordinary shares held at the Type of shares
Name of shareholder
period-end Type Number
Hong Kong Wah Shing Holding RMB ordinary
171,360,391 171,360,391
Company Limited share
Prosperity Lamps & Components RMB ordinary
133,577,143 133,577,143
Limited share
Guangdong Electronics Information RMB ordinary
60,357,728 60,357,728
Industry Group Ltd. share
Shenzhen Rising Investment RMB ordinary
57,539,671 57,539,671
Development Co., Ltd. share
Central Huijin Asset Management RMB ordinary
30,799,000 30,799,000
Co., Ltd. share
Domestically
DBS Vickers (Hong Kong) Ltd A/C
23,514,355 listed foreign 23,514,355
Clients
share
Domestically
Hong Kong Rising Investment
23,165,684 listed foreign 23,165,684
Development Co., Ltd.
share
Domestically
Essence International Securities
21,931,657 listed foreign 21,931,657
(Hong Kong) Co., Ltd.
share
National Social Security Fund RMB ordinary
15,903,957 15,903,957
Portfolio 113 share
New China Life Insurance Co., 10,918,992 RMB ordinary 10,918,992
46
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Ltd.-Conventional-Common share
Insurance
Product-018L-CT001-Shenzhen
Related or act-in-concert parties Among the top ten non-restricted shareholders of the Company, Hong Kong Wah Shing
among the top 10 non-restricted Holding Company Limited, Guangdong Electronics Information Industry Group Ltd.,
ordinary shareholders as well as Shenzhen Rising Investment Development Co., Ltd. and Hong Kong Rising Investment
between the top 10 non-restricted Development Co., Ltd. are act-in-concert parties. Apart from that, it is unknown whether there
ordinary shareholders and the top 10 is among the top ten non-restricted shareholders any other related parties or act-in-concert
ordinary shareholders parties as defined in the Administrative Measures for the Acquisition of Listed Companies.
Top 10 ordinary shareholders
conducting securities margin trading N/A
(if any) (see Note 4)
Did any of the top 10 ordinary shareholders or the top 10 non-restricted ordinary shareholders of the Company
conduct any promissory repo during the Reporting Period?
□ Yea √ No
No such cases in the Reporting Period.
III Change of the controlling shareholder or the actual controller
Change of the controlling shareholder in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Any shareholding increase plan proposed or implemented by any shareholder or its
act-in-concert parties during the Reporting Period
√ Applicable □ Not applicable
Name of Initial disclosure Disclosure date of
shareholder or its Number of shares As a percentage Number of shares As a percentage date of the the completion of
act-in-concert to be increased in the total shares actually increased in the total shares shareholding the shareholding
party increase plan increase
Shenzhen Rising
Investment
18,002,924 1.42% 2016-06-06 2016-06-06
Development
Co., Ltd.
47
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
48
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section VIII Directors, Supervisors and Senior Management
I Shareholding changes of directors, supervisors and senior management
√ Applicable □ Not applicable
Number of Number of
Decrease
Increase in granted restricted Number of
Opening in the Closing
Incumbent the Current restricted shares granted restricted
Name Office title shareholdi Current shareholdi
/former Period shares at the granted in the shares at the
ng (share) Period ng (share)
(share) period-begin Current period-end
(share)
ning Period
Ye
Zhenghon Supervisor Incumbent 29,328 15,600 0 44,928 0 0 0
g
Zhang
Supervisor Incumbent 11,311 1,900 0 13,211 0 0 0
Xuequan
Chen
Director Former 0 10,000 0 10,000 0 0 0
Binghui
Total -- -- 40,639 27,500 0 68,139 0 0 0
II Changes in directors, supervisors and senior management
√ Applicable □ Not applicable
Name Office title Type of change Date Reason
Elected as a director for the eighth Board of the
Liu Xingming Director Elected 2016-04-22
Company
Liu Xingming General Manager Hired 2016-01-26 Hired by the Board
Lin Yihui Board Secretary Hired 2016-01-26 Hired by the Board
Tang Qionglan CFO Hired 2016-01-26 Hired by the Board
Vice General
Wei Bin Hired 2016-01-26 Hired by the Board
Manager
Vice General
Xie Qing Hired 2016-01-26 Hired by the Board
Manager
Vice General
Jiao Zhigang Hired 2016-01-26 Hired by the Board
Manager
Vice General
Chen Yu Hired 2016-01-26 Hired by the Board
Manager
49
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Vice General
Xu Xiaoping Hired 2016-01-26 Hired by the Board
Manager
Chen Binghui Director Left 2016-04-07 Left for personal reasons
Yin Jianchun CFO Left 2016-01-07 Left for personal reasons
50
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section IX Financial Report
I Auditor’s report
Has this semi-annual report been audited?
□ Yes √ No
This semi-annual financial report has not been audited.
II Financial statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated balance sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 788,093,190.58 935,241,205.20
Settlement reserve
Interbank lendings
Financial assets at fair value through
51,600.00
profit/loss
Derivative financial assets
Notes receivable 102,714,162.73 202,669,316.48
Accounts receivable 636,149,148.03 366,401,130.72
Accounts paid in advance 8,879,436.27 6,858,950.41
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserve
Interest receivable 6,716,920.78 3,022,646.23
Dividends receivable
Other accounts receivable 11,989,819.94 17,313,604.14
Financial assets purchased under
agreements to resell
Inventories 467,975,082.84 559,651,928.21
51
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Assets held for sale
Non-current assets due within one
year
Other current assets 453,759,682.20 91,060,842.89
Total current assets 2,476,277,443.37 2,182,271,224.28
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 3,256,038,295.94 3,092,416,162.34
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 362,997.40 382,637.52
Investment property
Fixed assets 454,154,610.43 484,436,218.17
Construction in progress 59,026,683.56 32,488,518.68
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 161,786,354.12 163,887,313.63
R&D expenses
Goodwill
Long-term deferred expenses 406,425.35
Deferred tax assets 48,280,480.77 42,744,728.66
Other non-current assets 46,656,866.50 49,263,204.15
Total non-current assets 4,026,306,288.72 3,866,025,208.50
Total assets 6,502,583,732.09 6,048,296,432.78
Current liabilities:
Short-term borrowings
Borrowings from the Central Bank
Money deposits accepted and
inter-bank deposits
Interbank borrowings
Financial liabilities at fair value
through profit/loss
Derivative financial liabilities
52
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Notes payable
Accounts payable 513,380,468.66 396,263,382.12
Accounts received in advance 28,879,558.31 71,531,790.37
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 70,128,051.59 72,004,987.32
Taxes and fares payable 41,755,353.76 12,969,090.31
Interest payable
Dividends payable
Other accounts payable 27,208,358.93 36,530,501.22
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 681,351,791.25 589,299,751.34
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions
Deferred income 11,124,775.06 10,722,275.02
Deferred tax liabilities 415,145,818.16 390,534,187.37
Other non-current liabilities
Total non-current liabilities 426,270,593.22 401,256,462.39
Total liabilities 1,107,622,384.47 990,556,213.73
53
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Owners’ equity:
Share capital 1,272,132,868.00 1,272,132,868.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 296,329,995.83 296,324,375.58
Less: Treasury shares
Other comprehensive income 2,353,306,934.70 2,212,989,156.02
Special reserve
Surplus reserve 628,439,107.12 628,439,107.12
Provisions for general risks
Retained earnings 804,685,533.27 613,661,381.40
Equity attributable to owners of the
5,354,894,438.92 5,023,546,888.12
Company
Minority interests 40,066,908.70 34,193,330.93
Total owners’ equity 5,394,961,347.62 5,057,740,219.05
Total liabilities and owners’ equity 6,502,583,732.09 6,048,296,432.78
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
2. Balance sheet of the Company
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 525,908,374.30 633,291,177.30
Financial assets at fair value through
51,600.00
profit/loss
Derivative financial assets
Notes receivable 96,029,717.27 200,483,728.48
Accounts receivable 680,955,435.38 387,870,578.18
Accounts paid in advance 62,695,733.29 6,258,960.70
Interest receivable 3,478,454.72 1,979,245.24
Dividends receivable
Other accounts receivable 55,920,542.31 47,175,016.15
Inventories 443,348,628.61 540,058,085.51
54
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Assets held for sale
Non-current assets due within one
year
Other current assets 449,454,801.46 87,132,242.99
Total current assets 2,317,791,687.34 1,904,300,634.55
Non-current assets:
Available-for-sale financial assets 3,256,038,295.94 3,092,416,162.34
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 417,952,937.16 417,972,577.28
Investment property
Fixed assets 378,495,897.23 403,470,166.52
Construction in progress 57,359,104.33 32,098,207.18
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 118,228,676.53 120,554,776.71
R&D expenses
Goodwill
Long-term deferred expenses
Deferred tax assets 40,785,535.93 36,469,936.66
Other non-current assets 46,201,818.50 49,025,459.75
Total non-current assets 4,315,062,265.62 4,152,007,286.44
Total assets 6,632,853,952.96 6,056,307,920.99
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through profit/loss
Derivative financial liabilities
Notes payable
Accounts payable 685,091,513.03 518,615,548.53
Accounts received in advance 28,659,444.09 70,168,946.84
Payroll payable 47,269,746.34 48,921,086.93
Taxes and fares payable 36,344,395.66 2,172,775.43
55
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Interest payable
Dividends payable
Other accounts payable 158,334,990.36 93,375,598.50
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 955,700,089.48 733,253,956.23
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income 10,582,274.95 10,102,274.95
Deferred tax liabilities 415,145,818.16 390,534,187.37
Other non-current liabilities
Total non-current liabilities 425,728,093.11 400,636,462.32
Total liabilities 1,381,428,182.59 1,133,890,418.55
Owners’ equity:
Share capital 1,272,132,868.00 1,272,132,868.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 293,425,065.15 293,419,444.90
Less: Treasury shares
Other comprehensive income 2,352,492,969.56 2,212,989,156.02
Special reserve
Surplus reserve 628,439,107.12 628,439,107.12
Retained earnings 704,935,760.54 515,436,926.40
Total owners’ equity 5,251,425,770.37 4,922,417,502.44
56
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Total liabilities and owners’ equity 6,632,853,952.96 6,056,307,920.99
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
3. Consolidated income statement
Unit: RMB
Item Reporting Period Same period of last year
1. Operating revenues 1,755,670,927.44 1,524,362,786.49
Including: Sales income 1,755,670,927.44 1,524,362,786.49
Interest income
Premium income
Fee and commission income
2. Operating costs 1,520,011,395.30 1,409,903,896.94
Including: Cost of sales 1,322,982,560.70 1,166,043,441.01
Interest expenses
Fee and commission expenses
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium
Business tax and surtaxes 12,251,578.46 11,924,833.78
Selling expenses 73,251,807.41 82,224,380.27
Administrative expenses 82,117,827.94 114,295,848.69
Finance costs -6,445,753.04 -11,207,940.80
Asset impairment loss 35,853,373.83 46,623,333.99
Add: Profit on fair value changes (“-”
1,272,770.46
means loss)
Return on investment (“-” means
13,720,747.77 20,709,165.82
loss)
Including: Share of profit/loss of
-19,640.12 -1,208.40
associates and joint ventures
Foreign exchange profit (“-” means
loss)
3. Operating profit (“-” means loss) 249,380,279.91 136,440,825.83
57
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Add: Non-operating income 1,575,016.58 2,944,702.35
Including: Profit on disposal of
20,253.97 6,114.53
non-current assets
Less: Non-operating expense 4,917,056.94 14,936,164.15
Including: Loss on disposal of
223,092.25 397,124.46
non-current assets
4. Total profit (“-” means loss) 246,038,239.55 124,449,364.03
Less: Corporate income tax 39,425,977.29 27,933,767.11
5. Net profit (“-” means loss) 206,612,262.26 96,515,596.92
Net profit attributable to owners of
206,925,812.72 100,258,759.31
the Company
Minority interests’ income -313,550.46 -3,743,162.39
6. After-tax net amount of other
140,317,778.68 1,395,836,581.16
comprehensive income
After-tax net amount of other
comprehensive income attributable to 140,317,778.68 1,395,836,581.16
owners of the Company
6.1 Other comprehensive income
that will not be reclassified into
profit/loss
6.1.1 Changes in net liabilities
or assets with a defined benefit plan upon
re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
6.2 Other comprehensive income
to be subsequently reclassified into 140,317,778.68 1,395,836,581.16
profit/loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss under
the equity method
6.2.2 Profit/loss on fair value
changes of available-for-sale financial 139,503,813.54 1,395,836,581.16
assets
6.2.3 Profit/loss on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective profit/loss on
58
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
cash flow hedges
6.2.5 Currency translation
differences
6.2.6 Other 813,965.14
After-tax net amount of other
comprehensive income attributable to
minority interests
7. Total comprehensive income 346,930,040.94 1,492,352,178.08
Attributable to owners of the
347,243,591.40 1,496,095,340.47
Company
Attributable to minority interests -313,550.46 -3,743,162.39
8. Earnings per share
8.1 Basic earnings per share 0.1627 0.0788
8.2 Diluted earnings per share 0.1627 0.0788
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the corresponding amount for the last period being RMB0.00.
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
4. Income statement of the Company
Unit: RMB
Item Reporting Period Same period of last year
1. Operating revenues 1,782,457,216.14 1,549,599,454.38
Less: Operating costs 1,355,707,509.94 1,213,318,424.48
Business tax and surtaxes 7,825,502.47 7,609,200.08
Selling expenses 72,636,241.42 79,948,452.69
Administrative expenses 82,409,260.52 91,564,361.63
Finance costs -3,798,619.84 -7,145,592.94
Asset impairment loss 35,788,227.78 43,024,657.06
Add: profit on fair value changes (“-”
1,272,770.46
means loss)
Return on investment (“-” means
13,720,747.77 20,709,165.82
loss)
Including: Share of profit/loss of
-19,640.12 -1,208.40
associates and joint ventures
2. Operating profit (“-” means loss) 245,609,841.62 143,261,887.66
Add: Non-operating income 1,389,423.13 2,326,541.73
Including: Profit on disposal of 9,401.71 6,114.53
59
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
non-current assets
Less: Non-operating expense 3,736,581.73 14,835,525.95
Including: Loss on disposal of
193,011.74 296,633.20
non-current assets
3. Total profit (“-” means loss) 243,262,683.02 130,752,903.44
Less: Corporate income tax 37,862,188.03 27,382,328.01
4. Net profit (“-” means loss) 205,400,494.99 103,370,575.43
5. After-tax net amount of other
139,503,813.54 1,395,836,581.16
comprehensive income
5.1 Other comprehensive income that
will not be reclassified into profit and
loss
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into profit/loss
under the equity method
5.2 Other comprehensive income to
be subsequently reclassified into 139,503,813.54 1,395,836,581.16
profit/loss
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into profit/loss
under the equity method
5.2.2 Profit/loss on fair value
changes of available-for-sale financial 139,503,813.54 1,395,836,581.16
assets
5.2.3 Profit/loss on reclassifying
held-to-maturity investments into
available-for-sale financial assets
5.2.4 Effective profit/loss on cash
flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 344,904,308.53 1,499,207,156.59
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
60
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
5. Consolidated cash flow statement
Unit: RMB
Item Reporting Period Same period of last year
1. Cash flows from operating activities:
Cash received from sale of
1,547,557,182.88 1,345,802,227.80
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from the
Central Bank
Net increase in funds borrowed from
other financial institutions
Cash received from premium of
original insurance contracts
Net cash received from reinsurance
business
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through profit/loss
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax refunds received 44,239,351.38 23,274,910.75
Cash received from other operating
15,057,708.67 13,548,303.57
activities
Subtotal of cash inflows from operating
1,606,854,242.93 1,382,625,442.12
activities
Cash paid for goods and services 850,216,733.93 821,473,245.91
Net increase in loans and advances to
customers
Net increase in funds deposited in the
Central Bank and interbank placements
Cash paid for claims of original
insurance contracts
Interest, fees and commissions paid
61
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Cash paid as policy dividends
Cash paid to and for employees 290,038,390.79 278,388,347.81
Taxes and fares paid 92,793,562.26 87,254,513.50
Cash paid for other operating
82,177,248.89 96,234,987.20
activities
Subtotal of cash outflows from
1,315,225,935.87 1,283,351,094.42
operating activities
Net cash flows from operating activities 291,628,307.06 99,274,347.70
2. Cash flows from investing activities:
Cash received from retraction of
7,005.00 5,059,989.08
investments
Cash received as return on
11,852,333.55 21,210,374.44
investments
Net cash received from disposal of
fixed assets, intangible assets and other 73,000.00 37,188.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
activities
Subtotal of cash inflows from investing
11,932,338.55 26,307,551.52
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 33,994,345.07 37,016,288.54
assets
Cash paid for investment 400,000,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
7,539,878.12
activities
Subtotal of cash outflows from
441,534,223.19 37,016,288.54
investing activities
Net cash flows from investing activities -429,601,884.64 -10,708,737.02
3. Cash flows from financing activities:
Cash received from capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings
62
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Cash received from issuance of
bonds
Cash received from other financing
activities
Subtotal of cash inflows from financing
activities
Repayment of borrowings
Cash paid for interest expenses and
15,935,708.57 204,113,711.36
distribution of dividends or profit
Including: dividends or profit paid
by subsidiaries to minority interests
Cash paid for other financing
activities
Sub-total of cash outflows from
15,935,708.57 204,113,711.36
financing activities
Net cash flows from financing activities -15,935,708.57 -204,113,711.36
4. Effect of foreign exchange rate
956,368.36 -2,730.55
changes on cash and cash equivalents
5. Net increase in cash and cash
-152,952,917.79 -115,550,831.23
equivalents
Add: Opening balance of cash and
933,546,108.37 989,718,395.60
cash equivalents
6. Closing balance of cash and cash
780,593,190.58 874,167,564.37
equivalents
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
6. Cash flow statement of the Company
Unit: RMB
Item Reporting Period Same period of last year
1. Cash flows from operating activities:
Cash received from sale of
1,583,633,686.90 1,295,186,863.29
commodities and rendering of service
Tax refunds received 44,239,351.38 23,117,146.79
Cash received from other operating
11,425,998.07 10,252,907.40
activities
Subtotal of cash inflows from operating
1,639,299,036.35 1,328,556,917.48
activities
Cash paid for goods and services 1,070,690,628.68 999,081,013.91
Cash paid to and for employees 118,971,583.13 115,370,248.82
63
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Taxes and fares paid 42,416,995.71 36,865,141.68
Cash paid for other operating
80,203,151.06 89,721,510.45
activities
Subtotal of cash outflows from
1,312,282,358.58 1,241,037,914.86
operating activities
Net cash flows from operating activities 327,016,677.77 87,519,002.62
2. Cash flows from investing activities:
Cash received from retraction of
7,005.00 5,059,989.08
investments
Cash received as return on
11,852,333.55 21,210,374.44
investments
Net cash received from disposal of
fixed assets, intangible assets and other 14,000.00 17,188.00
long-term assets
Net cash received from disposal of
subsidiaries or other business units
Cash received from other investing
activities
Subtotal of cash inflows from investing
11,873,338.55 26,287,551.52
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 31,293,478.92 34,075,558.41
assets
Cash paid for investment 400,000,000.00
Net cash paid to acquire subsidiaries
and other business units
Cash paid for other investing
7,500,000.00
activities
Subtotal of cash outflows from
438,793,478.92 34,075,558.41
investing activities
Net cash flows from investing activities -426,920,140.37 -7,788,006.89
3. Cash flows from financing activities:
Cash received from capital
contributions
Cash received as borrowings
Cash received from issuance of
bonds
Cash received from other financing
activities
Subtotal of cash inflows from financing
activities
64
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Repayment of borrowings
Cash paid for interest expenses and
15,935,708.57 204,113,711.36
distribution of dividends or profit
Cash paid for other financing
activities
Sub-total of cash outflows from
15,935,708.57 204,113,711.36
financing activities
Net cash flows from financing activities -15,935,708.57 -204,113,711.36
4. Effect of foreign exchange rate
956,368.17 -17,425.20
changes on cash and cash equivalents
5. Net increase in cash and cash
-114,882,803.00 -124,400,140.83
equivalents
Add: Opening balance of cash and
633,291,177.30 685,652,777.19
cash equivalents
6. Closing balance of cash and cash
518,408,374.30 561,252,636.36
equivalents
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
7. Consolidated statement of changes in owners’ equity
Reporting Period
Unit: RMB
Reporting period
Equity attributable to owners of the Company
Other equity
Other Retaine Minorit Total
Item instruments Less: General
Share Capital compre Special Surplus d y owners’
Prefer Perpet Treasur risk
capital reserve hensive reserve reserve earning interests equity
ence ual Other y shares reserve
income s
shares bonds
1. Balance at the 1,272, 2,212,9 5,057,7
296,324 628,439 613,661 34,193,
end of the prior 132,86 89,156. 40,219.
,375.58 ,107.12 ,381.40 330.93
year 8.00 02 05
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
65
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
mergers under the
same control
Other
2. Balance at the 1,272, 2,212,9 5,057,7
296,324 628,439 613,661 34,193,
beginning of the 132,86 89,156. 40,219.
,375.58 ,107.12 ,381.40 330.93
year 8.00 02 05
3. Increase/
decrease in the 5,620.2 140,317 191,024 5,873,5 337,221
period (“-” means 5 ,778.68 ,151.87 77.77 ,128.57
decrease)
3.1 Total
140,317 206,925 -313,55 346,930
comprehensive
,778.68 ,812.72 0.46 ,040.94
income
3.2 Capital
6,187,1 6,187,1
increased and
28.23 28.23
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
6,187,1 6,187,1
3.2.4 Other
28.23 28.23
3.3 Profit -15,901, -15,901,
distribution 660.85 660.85
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
-15,901, -15,901,
Appropriation to
660.85 660.85
owners (or
66
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
shareholders)
3.3.4 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
5,620.2 5,620.2
3.6 Other
5 5
1,272, 2,353,3 5,394,9
296,329 628,439 804,685 40,066,
4. Closing balance 132,86 06,934. 61,347.
,995.83 ,107.12 ,533.27 908.70
8.00 70 62
Same period of last year
Unit: RMB
Same period of last year
Equity attributable to owners of the Company
Other equity Minorit
Other Total
Item instruments Less: General Retaine y
Share Capital compre Specific Surplus owners’
Prefer Perpet Treasur risk d interest
capital reserve hensive reserve reserve equity
ence ual Other y shares reserve earnings s
income
shares bonds
1. Balance at the
978,56 589,892 72,150, 626,168 777,810 49,914, 3,094,4
end of the prior
3,745. ,717.59 338.69 ,440.86 ,478.44 198.66 99,919.
year
67
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
00 24
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Business
mergers under the
same control
Other
2. Balance at the 978,56 3,094,4
589,892 72,150, 626,168 777,810 49,914,
beginning of the 3,745. 99,919.
,717.59 338.69 ,440.86 ,478.44 198.66
year 00 24
3. Increase/
293,56 -293,56 2,140,8 -164,14 1,963,2
decrease in the 2,270,6 -15,720
9,123. 8,342.0 38,817. 9,097.0 40,299.
period (“-” means 66.26 ,867.73
00 1 33 4 81
decrease)
3.1 Total 2,140,8 2,178,5
53,405, -15,720
comprehensive 38,817. 23,542.
593.12 ,867.73
income 33 72
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
-217,55 -215,28
3.3 Profit 2,270,6
4,690.1 4,023.9
distribution 66.26
6 0
3.3.1 2,270,6 -2,270,6 0.00
68
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Appropriation to 66.26 66.26
surplus reserve
3.3.2
Appropriation to
general risk
provisions
3.3.3
-215,28 -215,28
Appropriation to
4,023.9 4,023.9
owners (or
0 0
shareholders)
3.3.4 Other
3.4 Internal 293,56 -293,56
carry-forward of 9,123. 9,123.0 0.00
owners’ equity 00 0
3.4.1 New
increase of capital 293,56 -293,56
(or share capital) 9,123. 9,123.0 0.00
from capital 00 0
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other 780.99 780.99
1,272, 2,212,9 5,057,7
296,324 628,439 613,661 34,193,
4. Closing balance 132,86 89,156. 40,219.
,375.58 ,107.12 ,381.40 330.93
8.00 02 05
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
69
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
8. Statement of changes in owners’ equity of the Company
Reporting Period
Unit: RMB
Reporting Period
Other equity instruments Other
Less: Retaine Total
Item Share Capital comprehe Special Surplus
Prefere
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at the
1,272,13 293,419,4 2,212,989 628,439,1 515,436 4,922,417
end of the prior
2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
year
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Other
2. Balance at the
1,272,13 293,419,4 2,212,989 628,439,1 515,436 4,922,417
beginning of the
2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
year
3. Increase/
decrease in the 139,503,8 189,498 329,008,2
5,620.25
period (“-” means 13.54 ,834.14 67.93
decrease)
3.1 Total
139,503,8 205,400 344,904,3
comprehensive
13.54 ,494.99 08.53
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
70
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
payments charged
to owners’ equity
3.2.4 Other
3.3 Profit -15,901, -15,901,6
distribution 660.85 60.85
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to -15,901, -15,901,6
owners (or 660.85 60.85
shareholders)
3.3.3 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other 5,620.25 5,620.25
1,272,13 293,425,0 2,352,492 628,439,1 704,935 5,251,425
4. Closing balance
2,868.00 65.15 ,969.56 07.12 ,760.54 ,770.37
Same period of last year
Unit: RMB
71
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Same period of last year
Other equity instruments Other
Less: Retaine Total
Item Share Prefere Capital comprehe Special Surplus
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at the
978,563, 586,987,7 72,150,33 626,168,4 710,284 2,974,155
end of the prior
745.00 86.91 8.69 40.86 ,953.94 ,265.40
year
Add: Changes
in accounting
policies
Correction of
errors in prior
periods
Other
2. Balance at the
978,563, 586,987,7 72,150,33 626,168,4 710,284 2,974,155
beginning of the
745.00 86.91 8.69 40.86 ,953.94 ,265.40
year
3. Increase/
-194,84
decrease in the 293,569, -293,568, 2,140,838 2,270,666 1,948,262
8,027.5
period (“-” means 123.00 342.01 ,817.33 .26 ,237.04
4
decrease)
3.1 Total
2,140,838 22,706, 2,163,545
comprehensive
,817.33 662.62 ,479.95
income
3.2 Capital
increased and
reduced by owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Amounts of
share-based
payments charged
to owners’ equity
3.2.4 Other
3.3 Profit 2,270,666 -217,55 -215,284,
72
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
distribution .26 4,690.1 023.90
6
3.3.1
2,270,666 -2,270,6
Appropriation to 0.00
.26 66.26
surplus reserve
3.3.2
-215,28
Appropriation to -215,284,
4,023.9
owners (or 023.90
0
shareholders)
3.3.3 Other
3.4 Internal
293,569, -293,569,
carry-forward of 0.00
123.00 123.00
owners’ equity
3.4.1 New
increase of capital
293,569, -293,569,
(or share capital) 0.00
123.00 123.00
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other 780.99 780.99
1,272,13 293,419,4 2,212,989 628,439,1 515,436 4,922,417
4. Closing balance
2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
Legal representative: He Yong Accounting head for the Report: Liu Xingming
Head of the accounting organ: Tang Qionglan
III. Company profile
1. Overview of the Company
Foshan Electrical & Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited company
73
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick Field, and
Foshan Poyang Printing Industrial Co. on October 20, 1992 by raising funds under the approval of YGS (1992)
No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of
Guangdong Province and the Economic System Reform Commission of Guangdong Province, is an enterprise
with its shares held by both the corporate and the natural persons. As approved by China Securities Regulatory
Commission with Document (1993) No. 33, the Company publicly issued 19.3 million shares of social public
shares (A shares) to the public in October 1993, and was listed in Shenzhen Stock Exchange for trade on
November 23, 1993. The Company was approved to issue 50,000,000 B shares on July 23, 1995. And, as
approved to change into a foreign-invested stock limited company on August 26, 1996 by (1996) WJMZEHZ No.
466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of
China. On December 11, 2000, as approved by China Securities Regulatory Commission with ZJGS Zi [2000] No.
175 Document, the Company additionally issued 55,000,000 A shares. At approved by the Shareholders’ General
Meeting 2006, 2007 and 2008, the Company implemented the plan of capitalization of capital reserve, after the
transfer, the registered capital of the Company has increased to RMB1,272,132,868.00. The unified social credit
code of the Company was “91440000190352575W”.
Legal representative: Mr. He Yong
Address: No. 64, Fenjiang North Road, Foshan, Guangdong Province
2. Business Scope of the Company
R&D and production of electro-optical source products, electro-optical source equipment and electro-optical
accessories, raw materials of electric light sources, lamps & fittings, electrical materials, motorcycle components,
household appliances, electric switches, electrical outlets, fire control products, ventilation devices, LED products,
lithium ion batteries and relevant materials; domestic and overseas sale of the aforesaid products; relevant
engineering consulting services. (Where a license is required, it must be obtained according to the government’s
rules before operation.)
3. Consolidation financial statement scope
The consolidation scope of the financial statement including the Company and the 9 subordinate subsidiaries such
as Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., Foshan Chansheng Electronic Ballast Co., Ltd.,
Foshan Taimei Times Lamps and Lanterns Co., Ltd., Nanjing Fozhao Lighting Components Co., Ltd., FSL
(Xinxiang) Lighting Co., Ltd., Foshan Electrical and Lighting New Light Source Technology Co., Ltd.,
Guangdong Fozhao Leasing Co., Ltd., and Foshan Lighting Lamps & Components Co., Ltd, Suzhou Mont
Lighting Co., Ltd.
As per the Accounting Standards for Business Enterprises, Suzhou Mont Lighting Co., Ltd. (Suzhou Mont) was
sued by its creditor Suzhou LiftAll Electronics Co., Ltd. in the People’s Court of Suzhou Industrial Park,
requesting the Court to carry out bankruptcy liquidation on Suzhou Mont. The Court ruled in favor of the plaintiff
on 9 May 2016 and appointed Jiangsu Yingyuan Law Firm as the custodian of Suzhou Mont on 3 June 2016.
Therefore, for the Reporting Period, only the income statement and cash flow statement of Suzhou Mont are
included in our consolidated statements.
4. Approval and Issue of the Financial Report
The Financial Report was approved and authorized for issue by the Board of Directors on 23 August 2016.
74
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
IV. Basis for preparation of financial statements
1. Preparation basis
With the going-concern assumption as the basis and based on transactions and other events that actually occurred,
the Group prepared financial statements in accordance with the Application Guidance of Accounting Standards for
Business Enterprises, the Interpretation of Accounting Standards for Business Enterprises and other regulations
issued and revised from 15 February 2006 onwards (hereinafter jointly referred to as “the Accounting Standards
for Business Enterprises”, “China Accounting Standards” or “CAS”).
2. Continuation
There will be no such events or situations in the 12 months from the end of the reporting period that will cause
material doubts as to the continuation capability of the Company.
V. Important accounting policies and estimations
Reminders of the specific accounting policies and accounting estimations:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with in compliance with the Accounting
Standards for Business Enterprises, which factually and completely present the Company’s, and the Group’s
financial positions as at 31 December 2014, business results and cash flows for the year of 2014, and other
relevant information.
2. Fiscal Year
A fiscal year starts on 1 January and ends on 31 December according to the Gregorian calendar.
3. Operating cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to realizing cash or
cash equivalents. An operating cycle for the Group is 12 months, which is also the classification criterion for the
liquidity of its assets and liabilities.
4. Recording Currency
Renminbi is the recording currency for the Company.
5. Accounting treatment methods for business combinations under the same control or not under the same
control
(1) Business combinations under the same control
A business combination under the same control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or the same parties both before and after the business
combination and on which the control is not temporary. In a business combination under the same control, the
75
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
party which obtains control of other combining enterprise(s) on the combining date is the combining party, the
other combining enterprise(s) is (are) the combined party. The “combining date” refers to the date on which the
combining party actually obtains control on the combined party.
The assets and liabilities that the combining party obtains in a business combination shall be measured on the
basis of their carrying amount in the combined party on the combining date. As for the balance between the
carrying amount of the net assets obtained by the combining party and the carrying amount of the consideration
paid by it (or the total par value of the shares issued), the additional paid-in capital (share premium) shall be
adjusted. If the additional paid-in capital (share premium) is not sufficient to be offset, the retained earnings shall
be adjusted. Consolidation date is the date that the combine party actually acquired the control right on the
combined party.
(2) Business combinations not under the same control
A business combination not under the same control is a business combination in which the combining enterprises
are not ultimately controlled by the same party or the same parties both before and after the business combination.
Among a business combination not under the same control, for the Intermediary fee and other relevant
management expenses such as the expenses for audit, legal services and assessment, and other administrative
expenses of the purchase party, which are recorded into the profits and losses in the current period; The trading
expenses for the equity securities or debt securities issued by the acquirer as the combination consideration shall
be recorded into the amount of initial measurement of the equity securities or debt securities. As for the difference
between the fair value of the paid assets and its book value, should be included in the current gains and losses.
Purchase date refers to the date that the combine party actually acquired the control right on the combined party.
The purchase party executes the distribution of the combined cost on the purchase date and recognizes the fair
value of each identifiable assets, liabilities or contingent liabilities acquired from the purchased party. The
acquirer shall recognize the positive balance between the combination costs and the fair value of the identifiable
net assets it obtains from the acquiree as business reputation; the difference that the combined cost smaller than
the fair value of the identifiable net assets acquired from the purchased party should be included in the gains and
losses.
6. Methods for preparing consolidated financial statements
(1) Principle for determining the consolidation scope
Recognize the consolidation scope of the consolidated financial statements based on control and the special
purpose entities controlled by the parent company are also included in the consolidation scope of the consolidated
financial statements. Exemption clause: if the parent company is the investment entity and without any subsidiary
that provides the relevant service for the investment activities, should not compile the consolidated financial
statements.
(2) Adopted accounting methods of the consolidated statements
76
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
The Company includes the subsidiaries and the special purpose entities with actual control rights into the scope of
the consolidated financial statements.
The Company compiles the consolidated financial statement according to the No. 33 of ASBE-Consolidated
Financial Statement and the relevant regulations and offset all the significant internal transactions and contracts
within the consolidation scope when merger. Among the shareholders equity of the subsidiaries which not
attributed to the part that owned by the parent company, should be individually listed under the shareholders’
equity of the consolidated financial statement as the minority shareholders’ equity.
The financial statements of subsidiaries are necessary adjusted in accordance with the accounting policies and
accounting period of the Group during the preparation of the consolidated financial statements, where the
accounting policies and the accounting periods are inconsistent between the Group and subsidiaries when
compiling the consolidated financial statements.
As for the subsidiaries acquired from the enterprise combine not under the same control, the individual financial
statement should be adjusted based on the fair value of the identifiable net assets on the purchase date when
compiling the consolidated financial statements; as for the subsidiaries acquired from the enterprise combine
under the same control, should be regarded as exist as the current state when each involved combine party starting
to execute the control in the ultimate control party, and should include the assets, liabilities, operating results and
the cash flow in the consolidated financial statements since the year-begin of the combine period and to adjust the
previous compared financial statement according to the above principles.
When the disposing the subsidiary during the reporting period, should include the operating results and the cash
flow from the period-begin to the disposing date into the consolidated financial statement of the subsidiaries.
7. Classification of joint arrangements and accounting treatment of joint operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and be divided into
joint operations and joint ventures.
When the Company is the joint venture party of the joint operations, should recognize the following items related
to the interests share of the joint operations:
(1) Recognize the assets individually held and the assets jointly held by recognizing according to the holding
share;
(2) Recognize the liabilities undertook individually and the liabilities jointly held by recognizing according to the
holding share;
(3) Recognize the revenues occurred from selling the output share of the joint operations enjoy by the Company;
(4) Recognize the revenues occurred from selling the assets of the joint operations according to the holding share;
(5) Recognize the expenses individually occurred and the expenses occurred from the joint operations according
to the holding share of the Company.
77
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
When the Company is the joint operation party of the joint ventures, should recognize the investment of the joint
ventures as the long-term equity investment and be measured according g to the said methods of the notes of the
long-term equity investment of the financial statement.
8. Recognition standard for cash and cash equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for
cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,
which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign currency and accounting method for foreign currency
(1) Foreign currency business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spot
exchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balance
sheet date and the spot exchange rate at the time of initial recognition or prior tot the balance sheet date shall be
recorded into the profits and losses at the current period except that the balance of exchange arising from foreign
currency borrowings for the purchase and construction or production of qualified assets shall be capitalized. The
foreign currency non-monetary items measured at the historical cost shall still be translated at the spot exchange
rate on the transaction date.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet
date. Among the owner’s equity items, except for the items as “undistributed profits”, other items shall be
translated at the spot exchange rate at the time when they are incurred. The revenues and the expenses items of the
income statement should be translated according to the spot rate on the exchange date. The difference of the
foreign currency financial statements occurred from the above translation should be listed under the “other
comprehensive income” item of the owners’ equity of the consolidated financial statement. As for the foreign
currency items which actually form into the net investment of the foreign operation, the exchange difference
occurred from the exchange rate changes should be listed under the “other comprehensive income” of the owners’
equity among the consolidated financial statement when compile the consolidated financial statement. When
disposing the foreign operation, as for the discounted difference of the foreign financial statement related to the
foreign operation should be transferred in the current gains and losses according to the proportion. The foreign
cash flow adopts the spot exchange rate on the occurring date of the cash flow. And the influenced amount of the
exchange rate changes should be individually listed among the cash flow statement.
10. Financial instruments
(1) Classification, recognition and measurement of financial assets
78
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Financial assets shall be classified into the following four categories when they are initially recognized: financial
assets measured at fair value and of which variations are recorded in the profits and losses for the current period,
loans and the account receivables, financial assets available for sale and the investments which will be held to their
maturity.
① Financial assets measured at fair value and of which variations are recorded in the profits and losses for the
current period refer to financial assets held by the Company for the purpose of selling in the near future, including
transactional financial assets, or financial assets designated by the management in the initial recognition to be
measured at fair value with variations recorded in the gains and losses for the current period. Financial assets
measured at fair value and of which variations are recorded in the profits and losses for the current period are
subsequently measured at their fair values. Interest or cash dividends arising from such assets during the holing
period are recognized as investment gains. Gains or losses arising from fair value changes are recorded in the gains
and losses for the current period at the end of the reporting period. When such assets are disposed, the difference
between their fair values and initially recognized amounts is recognized as investment gains and the gains and
losses arising from fair value changes are adjusted accordingly.
② Loan and accounts receivable: the non-derivative financial assets for which there is no quoted price in the active
market and of which the recoverable amount is fixed or determinable shall be classified as loan and accounts
receivable. The Company shall make subsequent measurement on its loan and accounts receivable on the basis of
the post-amortization costs by adopting the actual interest rate, from which gains and losses, when loan and
accounts receivable are terminated from recognizing, or are impaired or amortized, shall be recorded into the
profits and losses of the current period.
③Available-for-sale Financial Assets: the non-derivative financial assets which are designated as available-for-sale
financial assets when they are initially recognized as well as the non-derivative financial assets other than loans and
accounts receivables, investments held until their maturity; and transaction financial assets. The Company shall
make subsequent measurement on available-for-sale financial assets at fair value and recognize the interests or the
cash bonus acquired the holding period as the investment income, as well as directly include the profits or losses
formed by the changes of the fair value into the owners’ equity at the period-end, until the said financial assets shall
be transferred out when they are terminated from recognizing or are impaired, which shall be recorded into the
profits and losses of current period.
④ Held-to-maturity Investments: non-derivative financial asset with a fixed date of maturity, a fixed or
determinable recoverable amount and which the Company’s management holds for a definite purpose or the
Company’s management is able to hold until its maturity. The Company shall make subsequent measurement on its
Held-to-maturity Investments on the basis of the post-amortization costs by adopting the actual interest rate, from
which gains and losses, when loan and accounts receivable are terminated from recognizing, or are impaired or
amortized, shall be recorded into the profits and losses of the current period.
(2) Classification, Recognition and Measurement of Financial Liabilities
Financial liabilities shall be classified into the following two categories when they are initially recognized: (1) the
79
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
transactional financial liabilities; and (2) other financial liabilities. The financial liabilities initially recognized by
the Company shall be measured at their fair values. For the transactional financial liabilities, the transaction
expenses thereof shall be directly recorded into the profits and losses of the current period; for other categories of
financial liabilities, the transaction expenses thereof shall be included into the initially recognized amount.
① As for the financial liabilities measured by fair value and its changes be included in the current gains and losses,
which including trading financial liabilities and the financial liabilities be appointed to be measured by fair value
with the changes be included in the current gains and losses when being initially recognized, should be executed
subsequent measurement according to the fair value with the profits or losses formed by the changes of the fair
value be included in the current gains and losses.
② Other financial liabilities: The Company shall make subsequent measurement on its other financial liabilities on
the basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, when
other financial liabilities are terminated from recognizing or amortized, shall be recorded into the profits and losses
of the current period.
(3) Recognition and measurement of financial asset transfers
As for the Company transferred nearly all of the risks and rewards related to the ownership of a financial asset to
the transferee, should derecognize the financial assets; as for maintained nearly all of the risks and rewards related
to the ownership of a financial asset, should continue to recognize the transferred financial assets and recognize the
received counter price as a financial liability. Where the Company does not transfer or retain nearly all of the risks
and rewards related to the ownership of a financial asset (that is to say, it is not under a circumstance as mentioned
in Article 7 of these Standards), it shall deal with it according to the circumstances as follows, respectively: (1)If it
gives up its control over the financial asset, it shall stop recognizing the financial asset; (2)If it does not give up its
control over the financial asset, it shall, according to the extent of its continuous involvement in the transferred
financial asset, recognize the related financial asset and recognize the relevant liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between
the amounts of the following 2 items shall be recorded in the profits and losses of the current period: (1) The book
value of the transferred financial asset; (2) the sum of consideration received from the transfer, and the
accumulative amount of the changes of the fair value originally recorded in the owner's equities.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the difference
between the amounts of the following 2 items shall be included into the profits and losses of the current period:
(1)The book value of the portion whose recognition has been stopped; (2)The sum of consideration of the portion
whose recognition has been stopped, and the portion of the accumulative amount of the changes in the fair value
originally recorded in the owner's equities which is corresponding to the portion whose recognition has been
stopped.
80
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(4) De-recognition conditions of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly. Where the Group (debtor) enters into an agreement with a creditor
so as to substitute the existing financial liabilities by way of any new financial liability, and if the contractual
stipulations regarding the new financial liability is substantially different from that regarding the existing financial
liability, it terminates the recognition of the existing financial liability, and at the same time recognizes the new
financial liability. If executed practical modification on the whole or part of the contract regulations of the existing
financial liabilities, should terminate to recognize the existing financial liabilities or certain part of it and at the
same time recognize the revised financial liabilities as a new financial liabilities.
Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall include
into the profits and losses of the current period for the gap between the book value which has been terminated from
recognition and the considerations it has paid (including the non-cash assets it has transferred out and the new
financial liabilities it has assumed).
If the Company re-purchase part of the financial liabilities, should distribute the whole book value of the financial
liabilities according to the comparatively fair value between the continued reorganization part and the terminated
reorganization part on the re-purchase date. And the difference between the book value distributed to the terminated
recognition part and the counter price of the paid part (including the rolled out non-cash assets or the new financial
liabilities undertook) should be included in the current gains and losses.
(5) Recognition method of the fair value of the financial assets and the financial liabilities
As for the financial instruments for which there is an active market, the quoted prices in the active market shall be
used to determine the fair values thereof. Where there is no active market for a financial instrument, the Company
concerned shall adopt value appraisal techniques to determine its fair value. The value appraisal techniques mainly
include the prices adopted by the parties, who are familiar with the condition, in the latest market transaction upon
their own free will, the current fair value obtained by referring to other financial instruments of the same essential
nature, the cash flow capitalization method and the option pricing model, etc.
(6) Impairment test of financial assets (excluding the accounts receivable) and withdrawal method of impairment
provision
The Company inspects the book value of the financial assets on the balance sheet date to judge whether there are
evidences indicate that the financial assets had occurred impairment owning to the occurrence of one or multiple
events.
As for the measurement for impairment of financial assets measured on the basis of the post-amortization costs,
where there is any objective evidence proving that a financial asset measured on the basis of post-amortization
costs is impaired, should be recognized by the carrying amount of the difference between the said financial asset
which shall be written down to the current value of the predicted future cash flow (excluding the loss of future
credits not yet occurred) and the amount of the as written down which shall be recognized as loss of the
81
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
impairment of the asset. When calculating the current value of the estimated future cash flow, should adopt the
original effective interests’ rate of the financial assets as the discount rate. The book value of the assets should be
written down to the estimated recoverable amount through impairment provision items with the written down
amount be included in the current gains and losses. As for the financial assets with individual significant amount,
should adopt the individual assessment for ensure whether there are objective evidences indicate the impairment
provision and as for the other assets with insignificant amount, should be inspected by individual or group
assessment for ensure whether there are objective evidences indicate the impairment provision.
As for the financial assets measured by cost, if there are evidences indicate the impairment of the financial
instruments without market price which had not measured by fair value because the fair value could not be
reliable measured, the amount of the impairment losses should be measured by the difference between the book
value of the financial assets and the current value of the estimated future cash flow acquired from the discounting
measurement of the current market return rate of the similar financial assets.
Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the fair
value of the owner’s equity which was directly included shall be transferred out and recorded into the profits and
losses of the current period.
11. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individually
Definition or amount criteria for an account receivable with a Accounts receivable with a significant single amount refer to the
significant single amount top five accounts receivable with the largest balances or accounts
accounting for over 10% of the total balance of receivables.
Making separate bad-debt provisions for accounts receivable Where there is objective evidence proving that the Company is
with a significant single amount not able to recover the full amount of an account receivable
according to the original terms in relation to the account, an
independent impairment test is carried out on the account
receivable and the bad-debt provision is made according to the
difference between the present value of the account’s future cash
flows and the account’s carrying amount. If the independent
impairment test shows that the account receivable has not been
impaired, the balance of the account is put into the corresponding
group and the bad-debt provision is made using the balance
percentage method.
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
Group name Withdrawal method of bad debt provision
Common transaction group Percentage balance method
Internal transaction group Age analysis method
In the groups, those adopting aging analysis method to withdraw bad debt provision:
82
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
√ Applicable □ Not applicable
Withdrawal proportion of account Withdrawal proportion of other account
Aging
receivables receivables
Within 1 year (including 1 year) 6.00% 6.00%
1 to 2 years 6.00% 6.00%
2 to 3 years 6.00% 6.00%
Over 3 years 6.00% 6.00%
In the groups, those adopting balance percentage method to withdraw bad debt provision
√ Applicable □ Not applicable
Withdrawal proportion of account Withdrawal proportion of other account
Name of the group
receivables receivables
Ordinary business group 6.00% 6.00%
In the groups, those adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
Reason of individually withdrawing bad debt provision There are definite evidences indicate the obvious difference of the
returnability
Withdraw the bad debt provision according to the difference of
which the future cash flow lower than the book value. As for
other account receivables (including notes receivables,
Withdrawal method for bad debt provision prepayments, interests receivables and long-term accounts
receivables etc.), should 2ithdraw the bad debt provision
according to the difference of which the future cash flow lower
than the book value.
12. Inventory
Inventory category: raw materials, products in processing, materials for consigned processing, finished products,
semi-manufactured semi-finished products, and low-value consumption goods.
Accounting of inventory: raw materials and finished products shall be measured at actual cost, while weighted
average method shall be adopted when receiving or outgoing.
Recognition of provision for falling price of inventory and withdrawal: The Company shall make provision for
falling price of inventory on the basis of each item of inventory at the balance that net realizable value is lower
than carrying cost. For finished goods, merchandise inventories, and available for sale materials which are applied
directly for sales of stock inventory, the amount after deducting the estimated sale expense and relevant taxes from
the estimated sell price of the inventory shall be recognized as the net realizable value. For material inventories
83
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
which need to be processed, the amount after deducting the estimated cost of completion, estimated sale expense
and relevant taxes from the estimated sale price of produced finished goods shall be recognized as the net
realizable value.
Inventory system: a perpetual inventory system
13. Divided as assets held for sale
The Company recognizes the non-current assets (excludes the financial assets) which meet with the following
conditions as assets held for sale: ① the components must be immediately sold only according to the usual terms
of selling this kind of components under the current conditions; ② had made the solution on the disposal of the
component;③ had signed the irrevocable transformation agreement with the transferee;④ the transformation
should be completed within 1 year.
14. Long-term equity investments
(1) Recognition of provision for falling price of inventory and withdrawal
① For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the book
value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment, and the
direct relevant expenses occurred for the merger of enterprises shall be included into the profits and losses of the
current period.
② For the merger of enterprises not under the same control, The combination costs shall be the fair values, on the
acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the
Company in exchange for the control on the acquiree, and all relevant direct costs incurred to the acquirer for the
business combination. Where any future event that is likely to affect the combination costs is stipulated in the
combination contract or agreement, if it is likely to occur and its effects on the combination costs can be measured
reliably, the Company shall record the said amount into the combination costs.
③ The cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost which
is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-term equity
investment, taxes and other necessary expenses.
④ The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
value of the equity securities issued.
⑤ The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercial nature)
shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assets received.
⑥ The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at the fair
value.
(2) Subsequent measurement of long-term equity investment and recognized method of investment income
① The long-term equity investment of the Company that is able to control the invested enterprise should be
84
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
measured by cost method. The dividends or profits declared to distribute by the invested entity shall be recognized
as the current investment income.
② The Company measured the long-term equity investment of the joint ventures and the associated enterprises by
equity method. If the cost of the long-term equity investment is more than the Company's attributable share of the
fair value of the invested entity's identifiable net assets for the investment, the cost of the long-term equity
investment may not be adjusted;
③ If the cost of a long-term equity investment is less than the Company's attributable share of the fair value of the
invested entity's identifiable net assets for the investment, the difference shall be included in the current profits and
losses and the cost of the long-term equity investment shall be adjusted simultaneously. The Company shall
recognize the net losses of the invested enterprise until the book value of the long-term equity investment and other
long-term rights and interests which substantially form the net investment made to the invested entity are reduced
to zero, unless the investing enterprise has the obligation to undertake extra losses. The Company shall, on the
ground of the fair value of all identifiable assets of the invested entity when it obtains the investment, recognize the
attributable share of the net profits and losses of the invested entity after it adjusts the net profits of the invested
entity.
(3) Provision for impairment of long-term investment
The Company shall conduct inspection to long-term investment item by item at the end of reporting period. If the
market price of long-term investment falls into sustained decline or the invested enterprise’s operation status
grow worse, which will cause that the recoverable amount is lower than carrying value, moreover, such reduced
value will not be restored in predicted future period, then the negative balance between the recoverable amount and
carrying value of long-term investment shall be measured as provision for impairment of long-term investment.
The recoverable amount shall be determined in light of the higher one of the net amount of the fair value of the
long-term equity investment minus the disposal expenses and the current value of the expected future cash flow of
the long-term equity investment. Once any loss of impairment of the long-term investment is recognized, it shall
not be switched back in the future accounting periods.
15. Investment real estates
Measurement mode of investment real estates
Not applicable
16. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refers to the tangible assets that simultaneously possess the features as follows: they
are held for the sake of producing commodities, rendering labor service, renting or business management; and their
useful life is in excess of one fiscal year and unit price is higher.
85
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(2) Depreciation method
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Housing and building Average method of
3-30 5% 31.67%-3.17%
useful life
Machinery equipments Average method of
2-10 5% 47.50%-9.50%
useful life
Transportation vehicle Average method of
5-10 5% 19.00%-9.50%
useful life
Average method of
Electronic equipment 2-8 5% 47.50%-11.88%
useful life
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
Not applicable
17. Construction in Progress
Construction in progress shall be measured at actual cost. Constructions in progress shall be carried down to fixed assets by adopting
provisional estimate when bringing to the expected conditions for use. After completion and settlement procedures, the Company
shall adjust the carrying value of fixed assets at the actual cost. As for interests on borrowings incurred to special-borrowing loans or
general borrowing for the acquisition and construction or production of assets eligible for capitalization and the ancillary expense
incurred to special-borrowing loans, those incurred before a qualified asset under acquisition, construction or production is ready for
the intended use or sale shall be capitalized into capitalized cost, while those incurred after a qualified asset under acquisition and
construction or production is ready for the intended use or sale shall be included into the profits and losses of the current period.
Provision for impairment of construction in progress: the Company shall carry out overall inspection to the construction in progress
at the end of the reporting period. If the construction in progress has been stopped for a long time and cannot be continued restarting
in the coming three years, and such construction in progress has already fallen behind, whatever in performance or in technology,
resulting in an uncertainty to economic benefit of the Company, and there is an obvious evidence shows that the construction in
progress has been impaired, then provision for impairment of the construction in progress shall be withdrawn based on the negative
balance between the recoverable amount of single construction in progress and carrying value. Once any loss of impairment of the
construction in progress is recognized, it shall not be switched back in the future accounting periods.
18. Borrowing costs
Where the borrowing costs incurred to the Company can be directly attributable to the acquisition and construction or production of
assets eligible for capitalization, it shall be capitalized and recorded into the costs of relevant assets. Other borrowing costs shall be
recognized as expenses on the basis of the actual amount incurred, and shall be recorded into the current profits and losses.
The borrowing costs shall not be capitalized unless they simultaneously meet the following requirements: the asset disbursements
have already incurred, which shall include the cash, transferred non-cash assets or interest bearing debts paid for the acquisition and
86
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
construction or production activities for preparing assets eligible for capitalization; the borrowing costs has already incurred; and the
acquisition and construction or production activities which are necessary to prepare the asset for its intended use or sale have already
started.
To-be-capitalized amount of interests of borrowing: As for interests of borrowing occurred special-borrowing loans or general
borrowing for the acquisition and construction or production of assets eligible for capitalization, those incurred before a qualified
asset under acquisition, construction or production is ready for the intended use or sale shall be capitalized based on the following
methods:
As for special-borrowing loans for the acquisition and construction or production of assets eligible for capitalization, the
to-be-capitalized amount of interests shall be determined in light of the actual cost incurred of the specially borrowed loan at the
present period minus the income of interests earned on the unused borrowing loans as a deposit in the bank or as a temporary
investment.
19. Biological assets
Not applicable
20. Oil-gas assets
Not applicable
21. Intangible assets
(1) Pricing method, useful life and impairment test
(1) Measurement of intangible assets
① The cost of outsourcing intangible assets shall be measured at actual expenditures occurred for reaching the expected use
purpose.
② The research expenditures for its internal research and development projects of the Company shall be recorded into the profit or
loss for the current period. The development expenditures for its internal research and development projects of the Company may be
confirmed as cost of intangible assets when they satisfy capitalization conditions.
③ The cost invested into intangible assets by investors shall be determined according to the conventional value in the investment
contract or agreement, except for those of unfair value in the contract or agreement.
④ The intangible assets received by the Company through accepting debtor’s non-cash assets for compensation for debts, or by
receivables, shall be measured at the fair value of the intangible assets received.
⑤ The cost invested into intangible assets by non-monetary transaction shall be determined according to the fair value of
non-monetary assets and relevant payable taxes.
(2) Amortization of intangible assets
87
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Intangible assets with limited service life shall be amortized by the straight-line method within its estimated service life. If it is
unable to forecast the period when the intangible asset can bring economic benefits to the Company, it shall be regarded as an
intangible asset with uncertain service life. Intangible assets with uncertain service life may not be amortized.
(3) Provision for impairment of intangible assets
The Company shall made overall inspection to the intangible asset at the end of reporting period. If the intangible assets have already
been replaced by other new technologies, resulting in the Company’s ability to create economic benefits suffering materials adverse
influence, or a sustained decline of market price of intangible assets and impossible to be recover within the residual amortization
years, or certain intangible asset has exceeded the term protected by law but still part of useful value is remained, or there is an
obvious evidence shows that the intangible assets has been impaired, then provision for impairment of the intangible assets shall be
withdrawn based on the balance between the recoverable amount of single intangible assets and carrying value. Once any loss of
impairment of the intangible assets is recognized, it shall not be switched back in the future accounting periods.
(2) Accounting polices of internal R & D expenses
Inapplicable
22. Impairment of long-term assets
Not applicable
23. Amortization method of long-term deferred expenses
Long-term deferred expenses refer to general expenses with the apportioned period over one year (one year excluded) that have
occurred but attributable to the current and future periods. Long-term deferred expense shall be recoded into book in the light of the
actual expenditure, and amortized averagely within benefit period. In case of no benefit in the future accounting period, the amortized
value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
24. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and benefits, medical
insurance premiums, birth insurance premium, industrial injury insurance premium, housing fund, labor union expenditure and
personnel education fund, non-monetary benefits etc. The short-term compensation actually happened during the accounting period
when the active staff offering the service for the Group should be recognized as liabilities and is included in the current gains and
losses or relevant assets cost. Of which the non-monetary benefits should be measured according to the fair value.
(2) Accounting treatment of the welfare after demission
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor contract or brings
forward any compensation proposal for the purpose of encouraging the employee to accept a layoff, and should recognize the payroll
liabilities occurred from the demission welfare base on the earlier date between the time when the Group could not one-sided
88
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
withdraw the demission welfare which offered by the plan or layoff proposal owning to relieve the labor relationship and the date the
Group recognizes the cost related to the reorganization of the payment of the demission welfare and at the same time includes which
into the current gains and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report
within 12 months, should be disposed according to other long-term payroll payment.
Welfare after demission mainly includes setting drawing plan. Of which setting the drawing plan mainly includes basic endowment
insurance and unemployment insurance, and the corresponding payable and deposit amount should be included into the relevant
assets cost or the current gains and losses when happen.
(3) Accounting treatment of the demission welfare
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare. The group would
recorded the salary and the social security insurance fees paid and so on from the employee’s service terminative date to normal
retirement date into current profits and losses (dismiss ion welfare) under the condition that they meet the recognition conditions of
estimated liabilities.
(4) Accounting treatment of the welfare of other long-term staffs
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be accounting disposed
according to the setting drawing plan, while the rest should be disposed according to the setting revenue plan.
25. Estimated liabilities
(1) Recognition of estimated debts
The obligation such as external guaranty, pending litigation or arbitration, product quality assurance, layoff plan, loss contract,
restructuring and disposal of fixed assets, pertinent to a contingencies shall be recognized as an estimated debts when the following
conditions are satisfied simultaneously: ① That obligation is a current obligation of the enterprise; ② It is likely to cause any
economic benefit to flow out of the enterprise as a result of performance of the obligation; and ③ The amount of the obligation can
be measured in a reliable way.
(2) Measurement of estimated debts
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for the performance of
the current obligation. If there is a sequent range for the necessary expenses and if all the outcomes within this range are equally
likely to occur, the best estimate shall be determined in accordance with the middle estimate within the range. In other cases, the best
estimate shall be conducted in accordance with the following situations, respectively: ① If the Contingencies concern a single item,
it shall be determined in the light of the most likely outcome. ② If the Contingencies concern two or more items, the best estimate
should be calculated and determined in accordance with all possible outcomes and the relevant probabilities. ③ When all or some
of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be compensated by a third party, the
compensation should be separately recognized as an asset only when it is virtually certain that the reimbursement will be obtained.
The Company shall check the book value of the estimated debts on the balance sheet date. The amount of compensation is not
exceeding the book value of the recognized estimated liabilities.
89
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
26. Share-based payment
Not applicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Not applicable
28. Revenue
(1) No revenue from selling goods may be recognized unless the following conditions are met simultaneously:
① The significant risks and rewards of ownership of the goods have been transferred to the buyer by the Company;
② The Company retains neither continuous management right that usually keeps relation with the ownership nor effective control
over the sold goods;
③ The revenue amount and the relevant cost which had occurred or will occur could be reliable measured;
④ The relevant economic benefits may flow into the Company.
(2) Specific principles for recognition of the “domestic sale and export” incomes of the Company:
① Method for recognition of the domestic sale income: According to the buyer’s requirements, the Company delivers to the buyer
the products that have been considered qualified upon examination. The amount of the income has been determined and the sales
invoice has been issued. The payment for the delivered products has been received in full or is expectedly recoverable.
② Method for recognition of the export income: The Company produces the products according to the contract signed with the
buyer. After the products have been examined as qualified, the Company completes the customs clearing procedure for export. The
shipping company loads the products for shipping. The amount of the income has been determined and the export sales invoice has
been issued. The payment for the delivered products has been received in full or is expectedly recoverable.
(3) The Company provides the external labor service with the revenues should be recognized according to the following
methods:
① The labor service started and completed during the same accounting year should be recognized as revenues when the labor
service completed. While if the starting and the completion of the labor service attribute to different accounting year, and the
Company can, on the date of the balance sheet, reliably estimate the outcome of a transaction concerning the labor services it
provides, it shall recognize the relevant revenue from providing services employing the percentage-of-completion method.
② If an enterprise can not, on the date of the balance sheet, measure the result of a transaction concerning the providing of labor
services in a reliable way, it shall be conducted in accordance with the following circumstances, respectively: If the cost of labor
services incurred is expected to be compensated, the revenue from the providing of labor services shall be recognized in accordance
with the amount of the cost of labor services incurred, and the cost of labor services shall be carried forward at the same amount; If
the cost of labor services incurred is not expected to compensate, the revenue shall be recognized in accordance with the amount of
the cost of labor service can be compensated, and regard the occurred labor cost as the current cost; if all cost of labor services
90
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
incurred is not expected to compensate and no revenue from the providing of labor services may be recognized and regard the
occurred labor cost as the current cost.
(4) The revenue from abalienating of right to use assets consists of interest revenue and royalty revenue, and no revenue from
abalienating of right to use assets may be recognized unless the following conditions are met simultaneously: ① The relevant
economic benefits are likely to flow into the Company; ② The amount of revenues can be measured in a reliable way. ③ The
royalty revenue of the revenue from abalienating of right to use assets, should be recognized as the operation revenue according to
the chargeable time as well as the calculation method stipulated by the relevant contracts and agreements.
29. Government Subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
No government subsidy may be recognized unless the following conditions are met simultaneously: (1) The Company can meet the
conditions for the government subsidies; and (2) The Company can obtain the government subsidies.
If a government subsidy is a monetary asset, it shall be measured in the light of the received or receivable amount. If a government
subsidy is a non-monetary asset, it shall be measured at its fair value. If its fair value cannot be obtained in a reliable way, it shall be
measured at its nominal amount.
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within the useful lives of the
relevant assets, and included in the current profits and losses. But the government subsidies measured at their nominal amounts shall
be directly included in the current profits and losses.
(2) Judgment basis and accounting treatment of government subsidies related to profits
The government subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances as follows: those
subsidies used for compensating the related future expenses or losses of the enterprise shall be recognized as deferred income and
shall included in the current profits and losses during the period when the relevant expenses are recognized; or those subsidies used
for compensating the related expenses or losses incurred to the enterprise shall be directly included in the current profits and losses.
30. Deferred income tax assets/deferred income tax liabilities
(1) Basic of recognizing the deferred income tax assets
① As for the book value and the tax base of the assets and the liabilities exist deductible temporary difference, the Company shall
recognize the deferred income tax liability arising from a deductible temporary difference to the extent of the amount of the taxable
income which it is most likely to obtain and which can be deducted from the deductible temporary difference according to the
applicable tax rate of the period which recovered the estimated assets or paid off the liabilities.
② On the balance sheet date, if there is any exact evidence showing that it is likely to acquire a sufficient amount of taxable income
in a future period to offset against the deductible temporary difference, the deferred income tax assets unrecognized in prior periods
shall be recognized.
91
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
③ The book value of deferred income tax assets shall be reviewed at each balance sheet date. If it is unlikely to obtain sufficient
taxable income to offset against the benefit of the deferred income tax asset, the book value of the deferred income tax assets shall be
written down. Any such write-down should be subsequently reversed where it becomes probable that sufficient taxable income will
be available.
(2) Basic of recognizing the deferred income tax liabilities
As for the book value and the tax base of the assets and the liabilities exist payable temporary difference, the Company shall
recognize the deferred income tax liability arising from a payable temporary difference according to the applicable tax rate of the
period which recovered the estimated assets or paid off the liabilities.
31. Lease
(1) Accounting treatment of operating lease
For the leasee of he operating lease, the rent expenses from operating leases shall be recorded by the lessee in the relevant asset costs
or the profits and losses of the current period by using the straight-line method over each period of the lease term. The initial direct
costs shall be recognized as the profits and losses of the current period; the contingent rents shall be recorded into the profits and
losses of the current period in which they actually arise. A lessor shall include the assets subject to operating leases in relevant items
of its balance sheets in light of the nature of the asset；The rents from operating leases shall be recorded in the profits and losses of
the current period by using the straight-line method over each period of the lease term；the initial direct costs incurred to a lessor shall
be recorded into the profits and losses of the current period. As for the fixed assets subject to operating leases, the lessor shall
calculate the depreciation of it by adopting depreciation policy for similar assets; as for other leased assets, systematic and reasonable
methods shall be adopted for its amortization; the contingent rents shall be recorded in the profits and losses of the period in which
they actually arise.
(2) Accounting treatments of financial lease
On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the present value of the
minimum lease payments on the lease beginning date as the entering value in an account, recognize the amount of the minimum lease
payments as the entering value in an account of long-term account payable, and treat the balance between the recorded amount of the
leased asset and the long-term account payable as unrecognized financing charges; the initial direct costs such as commissions,
attorney's fees and traveling expenses, stamp duties directly attributable to the leased item incurred during the process of lease
negotiating and signing the leasing agreement shall be recorded in the asset value of the current period; when amortizing the
unrecognized financial charges during each period within the lease term, should recognize the current financial expenses by the
actual interests rate; and the contingent rental should be included the current gains and losses when actually arise When a lessee
calculates the present value of the minimum lease payments, if it can obtain the lessor's interest rate implicit in the lease, it shall
adopt the interest rate implicit in the lease as the discount rate. Otherwise, it shall adopt the interest rate provided in the lease
agreement as the discount rate. In case the lessee cannot obtain the lessor's interest rate implicit in the lease and no interest rate is
provided in the lease agreement, the lessee shall adopt the borrowing interest rate of the bank for the same period as the discount rate.
If it is reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term expires, the leased
asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will obtain the ownership of the
92
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
leased asset at the expiry of the lease term, the leased asset shall be fully depreciated over the shorter one of the lease term or its
useful life. On the beginning date of the lease term, a lessor shall recognize the sum of the minimum lease receipts on the lease
beginning date and the initial direct costs as the entering value in an account of the financing lease values receivable, and record the
unguaranteed residual value at the same time; the balance between the sums of the minimum lease receipts, the initial direct costs and
the unguaranteed residual value, and the sum of their present values shall be recognized as unrealized financing income; the
unrealized financing income shall be allocated to each period during the lease term; the lessor shall calculate the financing income at
the current period by adopting the effective interest rate method; contingent rents shall be recognized as an expense in the period in
which they are actually incurred.
32. Other significant accounting policies and estimates
Not applicable
33. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √Not applicable
(2) Change of main accounting estimates
□ Applicable √ Not applicable
34. Other
Not applicable
VI. Taxation
1. Main taxes and tax rate
Category of taxes Tax basis Tax rate
VAT Sales revenues 17%, 11%, 6%
Urban maintenance and construction tax Turnover tax payable 7%, 5%
Enterprise income tax Income tax payable 25%, 15%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Foshan Electrical and Lighting Co., Ltd. 15%
Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd. 25%
Foshan Chansheng Electronic Ballast Co., Ltd. 25%
Foshan Taimei Times Lamps and Lanterns Co., Ltd. 25%
93
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
FSL New Light Source Technology Co., Ltd. 25%
Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. 25%
Foshan Electrical & Lighting (Xinxiang) Co., Ltd. 25%
Foshan Lighting Lamps and Lanterns Co., Ltd. 25%
Guangdong Fozhao Leasing Co., Ltd. 25%
2. Tax preference
(1) The Company had passed the re-examination for the First Batch High-tech Enterprise in 2014 of Guangdong
Province as well as won the “Certificate of High-tech Enterprise” with serial number GR201444001411 after
approval by Department of Science and Technology of Guangdong Province, Department of Finance of
Guangdong Province, Guangdong Provincial Bureau of State Taxation and Guangdong Provincial Bureau of Local
Taxation on 17 March 2015. In accordance with relevant provisions in Corporate Income Tax Law of the People's
Republic of China and the Administration Measures for Identification of High-tech Enterprises promulgated in
2007, the Company paid the corporate income tax based on a tax rate of 15% within three years since 1 January
2014.
3. Other
It is paid according to the relevant regulation of the tax law.
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 58,201.50 36,008.01
Bank deposits 769,190,457.49 855,342,849.29
Other currency funds 18,844,531.59 79,862,347.90
Total 788,093,190.58 935,241,205.20
Other notes
—The closing balance of the other monetary funds of the Reporting Period were the refundable deposits, forward foreign exchange
settlement and sale deposits and the balance of the Alipay, of which the usage right of the forward foreign exchange settlement and
sale deposits of RMB7,500,000.00 were restricted.
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Unit: RMB
Item Closing balance Opening balance
Financial assets appointed to be measured 51,600.00
94
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
by fair value with the changes be included
in the current gains and losses
Investment on equity instruments 51,600.00
Total 51,600.00
3. Derivative financial assets
□ Applicable √ Not applicable
4. Notes receivable
(1) Notes receivable listed by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 102,714,162.73 58,819,605.04
Commercial acceptance bill 0.00 143,849,711.44
Total 102,714,162.73 202,669,316.48
(2) Notes receivable pledged by the Company at the period-end
Not applicable
(3) Notes receivable which had endorsed by the Company or had discounted and had not due on the
balance sheet date at the period-end
Unit: RMB
Amount of recognition termination at the Amount of not terminated recognition at
Item
period-end the period-end
Bank acceptance bill 74,523,613.06
Total 74,523,613.06
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or agreement
Naught
Other notes
—The closing balance of the notes receivable increased of RMB 99,955,153.75 over the period-begin with the growing rate of
49.32%, which was mainly due to the increase that the Company adopted the commercial acceptance bill for settling accounts.
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
95
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
wal Proportio Withdrawal Book value
Amount Proportion Amount value Amount Amount
proportio n proportion
n
Accounts receivable
withdrawn bad debt
676,754, 40,605,2 636,149,1 389,788 23,387,30 366,401,13
provision according 98.13% 6.00% 99.02% 6.00%
412.80 64.77 48.03 ,436.93 6.21 0.72
to credit risks
characteristics
Accounts receivable
with insignificant
single amount for 12,919,8 12,919,8 3,874,6 3,874,675
1.87% 100.00% 0.00 0.98% 100.00% 0.00
which bad debt 64.11 64.11 75.02 .02
provision separately
accrued
689,674, 53,525,1 636,149,1 393,663 27,261,98 366,401,13
Total 100.00% 7.76% 100.00% 6.93%
276.91 28.88 48.03 ,111.95 1.23 0.72
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 649,263,997.32 38,955,839.83 6.00%
Subtotal within 1 year 649,263,997.32 38,955,839.83 6.00%
1 to 2 years 9,259,118.42 555,547.11 6.00%
2 to 3 years 13,436,116.78 806,167.01 6.00%
Over 3 years 4,795,180.28 287,710.82 6.00%
Total 676,754,412.80 40,605,264.77 6.00%
Notes of confirming the basis of the groups:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Accounts receivable withdraw, reversed or collected during the reporting period
96
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB 26,263,147.65; the amount of the
reversed or collected part during the Reporting Period was of RMB 2,348,386.55.
Of which, the significant amount of the reverses or collected part of the bad debt provisions during the Reporting Period:
Unit: RMB
Name of units Amount Method
Foshan Sanshui Center of Science and
Technology Industrial Park Development 2,069,866.90 Cash recover
Co., Ltd.
Kunming Hong guangming Commerce and
278,519.65 Cash recover
Trade Co., Ltd.
Total 2,348,386.55 --
(3) The actual write-off accounts receivable
Unit: RMB
Item Amount
Tianjin Jishi Shengda Lighting Co., Ltd. 160,306.56
Other retails accounts 107.59
Total 160,414.15
Of which, the list of the significant write-off accounts receivable:
Not applicable
(4) Top 5 of the closing balance of the accounts receivable colleted according to the arrears party
Unit: RMB
Proportion of Closing
the total year balance of bad
Name Nature Closing balance Aging end balance of debt provision
the accounts
receivable
**COMPANY Goods 73,183,103.06 Within 1 year 10.61% 4,390,986.18
payment
*****PRODUCTS INC. Goods 19,219,934.89 Within 1 year 2.79% 1,153,196.09
payment
Henan **** Lighting Co., Ltd. Goods 16,988,574.91 Within 1 year 2.46% 1,019,314.49
payment
**Light Electrical lighting L.L.C Goods 13,984,860.67 Within 1 year 2.03% 839,091.64
payment
Changsha ** Equipments Co., Goods 13,242,817.51 Within 1 year 1.92% 794,569.05
Ltd. payment
Total 136,619,291.04 19.81% 8,197,157.46
97
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
Naught
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of accounts receivable
Naught
Other notes:
—The closing balance of the accounts receivable at the period-end increased RMB 269,748,017.31 over the period-begin with the
increase range of 73.62 %, which mainly due to the sales volume of the Reporting Period increased.
6. Prepayment
(1) List by aging analysis
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 3,324,369.22 37.44% 5,151,048.23 75.10%
1 to 2 years 4,180,334.98 47.08% 942,100.92 13.74%
2 to 3 years 815,578.73 9.19% 610,778.10 8.90%
Over 3 years 559,153.34 6.30% 155,023.16 2.26%
Total 8,879,436.27 -- 6,858,950.41 --
Notes of the reasons of the prepayment ages over 1 year with significant amount but failed settled in time:
(2) Top 5 of the closing balance of the prepayment colleted according to the prepayment target
Unit: RMB
Name of units Relationship Amount Age limit Proportion
Foshan **** Development Co., 2,900,000.00 1 to 2 years 32.66%
Non-related relationship
Ltd.
Guangdong Branch of China 474,470.12 Within 1 year 5.34%
Non-related relationship
****Insurance Company
*** (Lianjiang) Electric Appliance 433,332.92 1 to 2 years 4.88%
Non-related relationship
Co., Ltd.
Hangzhou **** Electric Appliance 350,000.00 Within 1 year 3.94%
Non-related relationship
Co., Ltd.
Zhongshan *** Lighting Science 334,872.64 Within 1 year 3.77%
Non-related relationship
and Technology Co., Ltd.
Total 4,492,675.68 50.60%
98
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
7. Interest receivable
(1) Category of interest receivable
Unit: RMB
Item Closing balance Opening balance
Deposits on a regular basis 4,147,571.46 3,022,646.23
Interests of the funds deposited in the bank 2,569,349.32 0.00
Total 6,716,920.78 3,022,646.23
(2) Significant overdue interest
Naught
Other notes:
—The interests receivable at the period-end increased of RMB 3,694,274.55 over that of the period-begin with the increased range of
122.22%, which mainly due to the increase of the withdrawal of the interests of the bank financial products of the Reporting Period.
8. Dividend receivable
(1) Dividend receivable
Naught
(2) Significant dividend receivable aged over 1 year
Naught
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Category Closing balance Category Closing balance
Category Withdra
Opening Opening
Proportio wal Proportio Withdrawal
Amount Amount balance Amount Amount balance
n proportio n proportion
n
Other accounts
receivable withdrawn
12,755,1 765,307. 11,989,81 18,418, 1,105,123 17,313,604.
bad debt provision 97.74% 6.00% 100.00% 6.00%
27.59 65 9.94 727.80 .66 14
according to credit
risks characteristics
Other accounts 295,120. 2.26% 295,120. 100.00% 0.00 0.00 0.00% 0.00 0.00% 0.00
99
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
receivable with 00 00
insignificant single
amount for which
bad debt provision
separately accrued
13,050,2 1,060,42 11,989,81 18,418, 1,105,123 17,313,604.
Total 100.00% 8.13% 100.00% 6.00%
47.59 7.65 9.94 727.80 .66 14
Other accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 7,496,618.80 449,797.13 6.00%
Subtotal within 1 year 7,496,618.80 449,797.13 6.00%
1 to 2 years 4,940,341.88 296,420.51 6.00%
2 to 3 years 58,690.39 3,521.42 6.00%
Over 3 years 259,476.52 15,568.59 6.00%
Total 12,755,127.59 765,307.65 6.00%
Notes of confirming the basis of the groups:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to accrue bad debt provision:
□ Applicable √ Not applicable
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB-44,696.01；the amount of the reversed or
collected part during the Reporting Period was of RMB 0.00.
Of which, the significant amount of the reversed or collected part of the bad debt provisions of the Reporting Period:
Naught
(3) The actual write-off other accounts receivable
Naught
100
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(4) Other accounts receivable classified by the nature of accounts
Unit: RMB
Nature Closing book balance Opening book balance
VAT export tax refunds 0.00 10,002,722.46
Performance earnest money 3,667,013.20 3,712,081.83
Employee loans and petty cash 4,813,137.69 843,146.81
Rent and water and electricity charges 694,190.64 490,494.61
Advance funds for street light construction 2,523,547.23 2,523,547.23
Other 1,352,358.83 846,734.86
Total 13,050,247.59 18,418,727.80
(5) Top 5 of the closing balance of the other accounts receivable colleted according to the arrears party
Unit: RMB
Proportion of the Closing balance of
total year end bad debt provision
Name of units Nature Closing balance Aging
balance of the
accounts receivable
Guangdong **** Advance funds for
Engineering Co., street light 2,523,547.23 1 to 2 years 19.34% 151,412.83
Ltd. construction
Guangzhou ****
Performance earnest
Engineering 1,000,000.00 Within 1 year 7.66% 60,000.00
money
Management Center
Foshan **** Co., Performance earnest
1,000,000.00 1 to 2 years 7.66% 60,000.00
Ltd. money
Social security
Other 552,131.23 Within 1 year 4.23% 33,127.87
charges
Foshan **** Co., Performance earnest
480,000.00 1 to 2 years 3.68% 28,800.00
Ltd. money
Total -- 5,555,678.46 -- 42.57% 333,340.70
(6) Accounts receivable involved with government subsidies
Naught
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Naught
101
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Other notes:
—The closing balance of the other accounts receivables of the current period decreased of RMB 5,323,784.20 over the period-begin
with the reduction amplitude of 30.75%, which was mainly due to receiving of the VAT export tax refunds from the period-begin of
the Reporting Period.
10. Inventory
(1) Category of inventory
Unit: RMB
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 78,352,216.32 3,864,531.86 74,487,684.46 77,384,147.93 8,137,865.12 69,246,282.81
Goods in process 37,526,823.51 37,526,823.51 25,812,370.33 25,812,370.33
Inventory goods 250,363,636.63 29,037,275.27 221,326,361.36 366,582,258.72 17,263,510.85 349,318,747.87
Self-manufacture
d semi-finished 135,723,307.22 3,309,604.97 132,413,702.25 116,119,714.01 3,963,130.61 112,156,583.40
product
Low-value
2,220,511.26 2,220,511.26 3,117,943.80 3,117,943.80
fugitive items
Total 504,186,494.94 36,211,412.10 467,975,082.84 589,016,434.79 29,364,506.58 559,651,928.21
(2) Falling price reserves of inventory
Unit: RMB
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 8,137,865.12 2,032,913.92 1,498,586.50 4,807,660.68 3,864,531.86
Inventory goods 17,263,510.85 18,049,465.31 4,566,596.36 1,709,104.53 29,037,275.27
Self-manufacture
d semi-finished 3,963,130.61 1,078,225.69 165,420.06 1,566,331.27 3,309,604.97
product
Total 29,364,506.58 21,160,604.92 6,230,602.92 8,083,096.48 36,211,412.10
102
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
Naught
(4) Completed unsettled assets formed from the construction contact at the period-end
Naught
11. Assets divided as held-to-sold
Naught
12. Non-current assets due within 1 year
Naught
13. Other current assets
Unit: RMB
Item Closing balance Opening balance
Deductible input tax of VAT 27,631,736.56 56,770,134.59
Advance payment of enterprise income tax 17,184,961.89 25,347,724.55
Unsettled assets profit and loss 8,942,983.75 8,942,983.75
Bank financial products 400,000,000.00 0.00
Total 453,759,682.20 91,060,842.89
Other notes:
—The balance of the unsettled assets profit and loss was the damage of the inventory owning to the rainstorm and flood in October
2015, and the Company had submitted the claims to the insurance company and up to 30 June 2016, the insurance claims were still in
progress that the expected amount of insurance compensation according to the patch of the damaged inventory was listed as the
unsettled asset profit and loss temporarily.
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity 3,261,888,295. 3,256,038,295. 3,098,266,162.3
5,850,000.00 5,850,000.00 3,092,416,162.34
instruments 94 94 4
103
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Measured by fair 2,951,288,535. 2,951,288,535. 2,787,166,401.9
2,787,166,401.96
value 54 54 6
Measured by cost 310,599,760.40 5,850,000.00 304,749,760.40 311,099,760.38 5,850,000.00 305,249,760.38
3,261,888,295. 3,256,038,295. 3,098,266,162.3
Total 5,850,000.00 5,850,000.00 3,092,416,162.34
94 94 4
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
Cost of the equity
instruments/amortized
183,649,747.82 183,649,747.82
cost of the debt
instruments
Fair value 2,951,288,535.54 2,951,288,535.54
Changed amount of the
fair value that be
accumulatively recorded 2,352,492,969.56 2,352,492,969.56
in other comprehensive
income
Withdrawn impairment
0.00 0.00
amount
(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB
Book balance Impairment provision Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the reporting
investees period
Shenzhen
Zhonghao 5,850,000. 5,850,000. 5,850,000. 5,850,000. Less than
(Group) 00 00 00 00 5.00%
Ltd.
Chengdu
Hongbo 6,000,000. 6,000,000.
6.94%
Industrial 00 00
Co., Ltd.
Xiamen 292,574,13 292,574,13 5.85%
104
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Bank Co., 3.00 3.00
Ltd.
Foshan
Branch of
Guangdon Less than
g 500,000.00 500,000.00
5.00%
Developm
ent Bank
Co., Ltd.
Foshan
Fochen
Road
6,175,627. 5,675,627.
Developm 499,999.98 7.66%
38 40
ent
Company
Limited
311,099,76 310,599,76 5,850,000. 5,850,000.
Total 499,999.98 --
0.38 0.40 00 00
(4) Changes of the impairment of the available-for-sale financial assets during the Reporting Period
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
Withdrawn impairment
balance at the 5,850,000.00 5,850,000.00
period-begin
Withdrawn impairment
5,850,000.00 5,850,000.00
balance at the period-end
(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or
temporarily fell but not withdrawn the impairment provision
Naught
Other notes
—The revenue of the investee company, Foshan Fochen Road Development Company Limited had be included in the unified
collection distribution system of Foshan road and bridge tolls, and the Company had executed amortization within the remained
planting duration by regarding the investment balance as the usufruct and the amortized investment cost of the reporting period was
of RMB 499,999.98.
105
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
15. Investment held-to-maturity
(1) List of the investment held-to-maturity
Naught
(2) Significant investment held-to-maturity at the period-end
Naught
(3) Significant held-to-maturity re-classified during the Reporting Period
Naught
16. Long-term accounts receivable
(1) List of the long-term accounts receivable
Naught
(2) Long-term accounts receivable derecognized owning to the transfer of the financial assets
Naught
(3) The amount of the assets and liabilities formed by the transfer and the continues involvement of
long-term accounts receivable
Naught
17. Long-term equity investment
Unit: RMB
Increase/decrease
Closing
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Opening Reduced Changes bonus or al of Closing of
Investees l recognize other
balance investmen of other profits impairme Other balance impairme
investmen d under comprehe
t equity announce nt nt
t the equity nsive
d to issue provision provision
method income
I. Joint ventures
II. Associated enterprises
Qinghai 382,637.5 -19,640.1 362,997.4
FSL 2 2 0
106
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Lithium
Energy
Exploitati
on Co.,
Ltd.
382,637.5 -19,640.1 362,997.4
Subtotal
2 2 0
382,637.5 -19,640.1 362,997.4
Total
2 2 0
18. Investment property
(1) Investment property adopting cost measurement mode
□ Applicable √ Not applicable
(2) Investment property adopting fair value measurement mode
□ Applicable √ Not applicable
(3) List of the investment property failed to completed the property certificate
Naught
19. Fixed assets
(1) List of fixed assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item
buildings equipment Total
equipment equipment
I. Original book
value:
1. Opening
638,249,602.24 906,292,098.16 21,230,148.30 24,043,747.30 1,589,815,596.00
balance
2. Increased
778,133.60 7,330,082.30 1,020,574.75 916,186.04 10,044,976.69
amount of the period
(1) Purchase 778,133.60 1,925,393.20 1,020,574.75 916,186.04 4,640,287.59
(2) Transfer of
project under 5,404,689.10 5,404,689.10
construction
107
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) Enterprises
combination increase
3. Decreased
7,015,375.92 450,616.48 445,588.18 7,911,580.58
amount of the period
(1) Disposal or
2,887,221.88 450,616.48 108,881.48 3,446,719.84
scrap
(2) Equipment
2,542,388.24 2,542,388.24
transformation
(3) Other 1,585,765.80 336,706.70 1,922,472.50
4. Closing balance 639,027,735.84 906,606,804.54 21,800,106.57 24,514,345.16 1,591,948,992.11
II. Accumulated
desperation
1. Opening
358,763,342.24 673,160,992.83 14,213,165.13 14,482,647.84 1,060,620,148.04
balance
2. Increased
13,530,934.91 21,695,359.85 626,510.27 1,666,243.09 37,519,048.12
amount of the period
(1) Withdrawal 13,530,934.91 21,695,359.85 626,510.27 1,666,243.09 37,519,048.12
3. Decreased
4,349,797.77 418,638.63 335,124.26 5,103,560.66
amount of the period
(1) Disposal or
2,658,492.86 418,638.63 103,437.40 3,180,568.89
scrap
(2) Equipment
1,362,032.43 1,362,032.43
transformation
(3) Other 329,272.48 231,686.86 560,959.34
4. Closing balance 372,294,277.15 690,506,554.91 14,421,036.77 15,813,766.67 1,093,035,635.50
III. Impairment
provision
1. Opening
44,757,883.48 1,346.31 44,759,229.79
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
245.03 238.58 483.61
amount of the period
108
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(1) Disposal or
245.03 238.58 483.61
scrap
4. Closing balance 44,757,638.45 1,107.73 44,758,746.18
IV. Book value
1. Closing book
266,733,458.69 171,342,611.18 7,379,069.80 8,699,470.76 454,154,610.43
value
2. Opening book
279,486,260.00 188,373,221.85 7,016,983.17 9,559,753.15 484,436,218.17
value
(2) List of temporarily idle fixed assets
Unit: RMB
Accumulated Impairment
Item Original book value Net book value Remark
depreciation provision
Name of the
announcement:
Announcement on
Withdrawing the
Preparation for the
Assets Impairment
T5, T8,
on the Idle
energy-saving lamp 180,869,238.81 142,466,206.96 37,880,650.98 522,380.87
Equipments and
production line
Construction in
Progress; the
Announcement No.:
2015-030; disclosure
website:
www.cninfo.com.cn
(3) Fixed assets leased in from financing lease
Naught
(4) Fixed assets leased out from operation lease
Naught
(5) Details of fixed assets failed to accomplish certification of property
Naught
109
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
20. Construction in progress
(1) List of construction in progress
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Construction in
59,026,683.56 59,026,683.56 32,488,518.68 32,488,518.68
progress
Total 59,026,683.56 59,026,683.56 32,488,518.68 32,488,518.68
(2) Changes of significant construction in progress
Unit: RMB
Of
Amount Proporti which:
Accumul
that on the Capitaliz
Other ative
Increase transferr estimate amount ation rate
Estimate decrease amount
Name o f Opening d amount ed to Closing d of the Project of the of the Capital
d d amount of
item balance of the fixed balance project progress capitaliz interests resources
number of the capitaliz
period assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
Reforma
7,500,00 4,904,80 2,032,51 6,937,32
tion of 92.50% 90.00% Other
0.00 5.77 7.09 2.86
9# kiln
Reforma
tion of
the LED 3,500,00 3,462,63 49,712.4 3,512,34
100.35% 99.00% Other
third 0.00 1.58 0 3.98
worksho
p
SGLC
color tile
engineeri
ng for 5,000,00 2,702,11 610,167. 3,312,27
66.25% 60.00% Other
leak 0.00 0.21 74 7.95
repairing
of each
worksho
110
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
p
Gaoming
Jiangbin
Shangri-
La
Garden 4,350,00 2,206,74 2,206,74
50.73% 60.00% Other
commerc 0.00 0.10 0.10
ial
residenti
al
building
D project
of
Gaoming 30,000,0 7,839,68 7,839,68
26.13% 30.00% Other
standard 00.00 6.90 6.90
worksho
p
Fuwan
standard 30,000,0 1,371,64 1,371,64
4.57% 10.00% Other
worksho 00.00 5.50 5.50
pE
9
assembly 4,000,00 2,066,98 2,066,98
51.67% 70.00% Other
lines of 0.00 4.52 4.52
LED
3#
2,000,00 755,618. 755,618.
worksho 37.78% 80.00% Other
0.00 40 40
p
86,350,0 13,276,2 14,726,3 28,002,6
Total -- -- --
00.00 87.66 32.55 20.21
(3) List of the withdrawal of the impairment provision of the construction in progress
Naught
Other notes
—The balance of the construction in progress at the period-end increased of RMB 26,538,164.88 over that of the period-begin with
the increase range of 81.68%, which mainly due to the construction and investemnt of the new workshop during the Reporting
Period.
21. Engineering material
Naught
111
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
22. Liquidation of fixed assets
Naught
23. Productive biological assets
(1) Productive biological assets adopting cost measurement mode
□ Applicable √ Not applicable
(2) Productive biological assets adopting fair value measurement mode
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) Information
Unit: RMB
Item Land use right Patent Non-patents Software use right Total
I. Total original
book value
1. Opening balance 211,719,938.60 20,700,700.00 1,636,664.95 234,057,303.55
2. Increase in the
reporting period
(1) Purchase
(2) Internal R &D
(3) Increase from
enterprise
combination
3. Decrease in the
20,500,700.00 20,500,700.00
reporting period
(1) Purchase
(2) Other 20,500,700.00 20,500,700.00
4. Closing balance 211,719,938.60 200,000.00 1,636,664.95 213,556,603.55
II. Total accrued
112
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
amortization
1. Opening balance 48,760,068.42 4,091,720.00 709,221.50 53,561,009.92
2. Increase in the
1,937,293.01 163,666.50 2,100,959.51
reporting period
(1) Withdrawal 1,937,293.01 163,666.50 2,100,959.51
3. Decrease in the
3,891,720.00 3,891,720.00
reporting period
(1) Disposal
(2) Other 3,891,720.00 3,891,720.00
4. Closing balance 50,697,361.43 200,000.00 872,888.00 51,770,249.43
III. Total impairment
provision
1. Opening balance 16,608,980.00 16,608,980.00
2. Increase in the
reporting period
(1) Withdrawal
3. Decrease in the
16,608,980.00 16,608,980.00
reporting period
(1) Disposal
(2) Other 16,608,980.00 16,608,980.00
4. Closing balance
IV. Total book value
of intangible assets
1. Book value of
161,022,577.17 763,776.95 161,786,354.12
the period-end
2. Book value of
162,959,870.18 927,443.45 163,887,313.63
the period-begin
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of the intangible assets
at the period-end was 0.00%.
(2) Details of fixed assets failed to accomplish certification of land use right
Naught
Other notes:
For the details, please refer to “3. Consolidated financial statement scope of III. Company profile of Section IV. Financial Report”
113
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
26. R&D expenses
Naught
27. Goodwill
(1) Original book value of goodwill
Unit: RMB
Name of the Increase Decrease
investees or the
Opening balance Formed from the Closing balance
events formed Disposal Other
enterprise merger
goodwill
Suzhou Mont
7,360,330.45 7,360,330.45
Lighting Co., Ltd.
Total 7,360,330.45 7,360,330.45
(2) Impairment provision of goodwill
Unit: RMB
Name of the Increase Decrease
investees or the
Opening balance Closing balance
events formed Withdrawal Disposal Other
goodwill
Suzhou Mont
7,360,330.45 7,360,330.45
Lighting Co., Ltd.
Total 7,360,330.45 7,360,330.45
Notes to the recognition methods of the goodwill impairment test process, parameters and goodwill impairment losses:
Other notes
For the details, please refer to “3. Consolidated financial statement scope of III. Company profile of Section IV. Financial Report”
28. Long-term unamortized expenses
Unit: RMB
Amortization
Item Opening balance Increase Decrease Closing balance
amount
Decoration of lease
406,425.35 84,671.95 321,753.40
workshop
Total 406,425.35 84,671.95 321,753.40
Other notes
For the details, please refer to “3. Consolidated financial statement scope of III. Company profile of Section IV. Financial Report”
114
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
167,003,264.97 25,395,069.21 136,195,788.86 20,975,403.88
provision
Unrealized profits of
1,659,255.53 248,888.33 1,195,795.66 179,369.35
internal transactions
Deductible losses 23,278,730.28 5,819,682.57 16,661,633.81 4,165,408.45
Depreciation of fixed
66,043,450.62 10,132,487.72 66,856,506.21 10,254,446.06
assets
Payroll payable 44,562,352.93 6,684,352.94 47,800,672.81 7,170,100.92
Total 302,547,054.33 48,280,480.77 268,710,397.35 42,744,728.66
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes of the fair value
of the available-for-sale 2,767,638,787.72 415,145,818.16 2,603,516,654.14 390,527,498.12
financial assets
Changes of the fair value
of the tradable financial 44,595.00 6,689.25
assets
Total 2,767,638,787.72 415,145,818.16 2,603,561,249.14 390,534,187.37
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax 48,280,480.77 42,744,728.66
115
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
assets
Deferred income tax
415,145,818.16 390,534,187.37
liabilities
(4) List of unrecognized deferred income tax assets
Unit: RMB
Item Closing balance Opening balance
Deductible temporary difference 48,954,169.89
Total 48,954,169.89
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Unit: RMB
Years Closing balance Opening balance Notes
Y2016 2,660,641.73
Y2017 3,594,775.22
Y2018 6,538,750.63
Y2019 9,391,991.19
Y2020 16,981,086.28
Total 39,167,245.05
30. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Land purchase and the ownership implicit
41,755,700.00 41,755,700.00
of relevant items
Prepayments for business facilities 4,901,166.50 7,507,504.15
Total 46,656,866.50 49,263,204.15
Other notes:
31. Short-term loans
(1) Category of short-term loans
Naught
116
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(2) List of the overdue unpaid short-term loans
Naught
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
Naught
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
Naught
35. Accounts payable
(1) List of accounts payable
Unit: RMB
Category Closing balance Opening balance
Accounts payable 513,380,468.66 396,263,382.12
Total 513,380,468.66 396,263,382.12
(2) Notes of the accounts payable aging over one year
Naught
36. Advance from customers
(1) List of advance from customers
Unit: RMB
Item Closing balance Opening balance
Prepayments 28,879,558.31 71,531,790.37
Total 28,879,558.31 71,531,790.37
(2) Significant advance from customers aging over one year
Naught
117
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) Particulars of settled but unfinished projects formed by construction contract at period-end
Naught
Other notes:
—The closing balance of the prepayments at the period-end decreased of RMB 42,652,232.06 over the period-begin with the
reduction amplitude of 59.63%, which was mainly due to the prepayments of the period-begin had been settled of the Reporting
Period.
37. Payroll payable
(1) List of Payroll payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 70,996,987.32 275,543,316.60 276,412,252.33 70,128,051.59
II. Welfare after
demission - defined 19,707,013.28 19,707,013.28
contribution plans
III. Dismission welfare 1,008,000.00 1,008,000.00
Total 72,004,987.32 295,250,329.88 297,127,265.61 70,128,051.59
(2) List of Short-term salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus,
70,635,830.10 250,780,045.31 251,707,902.26 69,707,973.15
allowance, subsidy
2. Employee welfare 7,691,708.21 7,691,708.21
3. Social insurance 11,578,990.72 11,578,990.72
Including: 1. Medical
9,516,479.10 9,516,479.10
insurance premiums
Work-related injury
1,162,931.54 1,162,931.54
insurance
Maternity insurance 899,580.08 899,580.08
4. Housing fund 3,275,018.50 3,275,018.50
5. Labor union budget
and employee education 361,157.22 2,217,553.86 2,158,632.64 420,078.44
budget
Total 70,996,987.32 275,543,316.60 276,412,252.33 70,128,051.59
118
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) List of drawing scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 18,962,892.87 18,962,892.87
2. Unemployment
744,120.41 744,120.41
insurance
Total 19,707,013.28 19,707,013.28
Other notes:
38. Taxes payable
Unit: RMB
Item Closing balance Opening balance
VAT 19,000,809.81 6,471,716.18
Business tax 0.00 300,148.90
Corporate income tax 15,955,117.99 3,666,766.26
Personal income tax 577,914.55 869,010.09
Urban maintenance and construction tax 2,296,208.47 471,260.34
Other taxes 3,925,302.94 1,190,188.54
Total 41,755,353.76 12,969,090.31
Other notes:
39. Interest payable
Naught
40. Dividends payable
Naught
41. Other accounts payable
(1) Other accounts payable listed by nature of the account
Unit: RMB
Item Closing balance Opening balance
Compensation for lawsuit 1,879,275.16 13,872,398.53
performance bond 10,137,033.02 9,053,678.50
119
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Relevant fees of sale 1,563,012.86 1,924,886.76
Intercourse funds 8,076,410.52 8,076,410.52
Other 5,552,627.37 3,603,126.91
Total 27,208,358.93 36,530,501.22
(2) Other significant accounts payable with aging over one year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Intercourse funds 8,076,410.52
Total 8,076,410.52 --
42. Liabilities classified as holding for sale
Naught
43. Non-current liabilities due within 1 year
Naught
44. Other current-liabilities
Naught
45. Long-term loan
(1) Category of long-term loan
Naught
46. Bonds payable
(1) Bonds payable
Naught
(2) Increase/decrease of bonds payable (excluding the other financial instruments classified as the
preference shares, perpetual capital securities of the financial liabilities)
Naught
120
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) Notes to the conditions and time of the shares transfer of the convertible corporate bonds
Naught
(4) Notes to the other financial instruments classified as financial liabilities
Naught
47. Long-term payable
(1) Long-term payable listed by nature
Naught
48. Long-term payroll payable
(1) Long-term payroll payable chart
Naught
(2) List of the changes of defined benefit plans
Naught
49. Special payable
Naught
50. Accrued liabilities
Naught
51. Deferred income
Unit: RMB
Item Opening balance Increase Decrease Closing balance Formation reasons
Government
Government
10,722,275.02 480,000.00 77,499.96 11,124,775.06 subsidies related to
subsidies
assets income
Total 10,722,275.02 480,000.00 77,499.96 11,124,775.06 --
Items involved in government subsidies:
Unit: RMB
Item Opening balance Amount of newly Amount accrued Other changes Closing balance Related to the
121
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
subsidy in non-business assets/ income
income
LED production
technical Related to the
9,852,274.95 9,852,274.95
transformation assets
project
Production line of
50 million Related to the
620,000.07 77,499.96 542,500.11
energy-saving assets
fluorescent lamp
New type of low
cost silicon
substrate LED Related to the
250,000.00 250,000.00
light source income
module
technology
Standard optical
components
testing laboratory
capacity Related to the
480,000.00 480,000.00
construction and income
products quality
guarantee
engineering
Total 10,722,275.02 480,000.00 77,499.96 11,124,775.06 --
52. Other non-current liabilities
Naught
53. Share capital
Unit: RMB
Increase/decrease (+/-)
Opening Capitalization Closing
Newly issue
balance Bonus shares of public Other Subtotal balance
share
reserves
The sum of 1,272,132,868. 1,272,132,868.
shares 00 00
122
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
54. Other equity instruments
(1) Basic condition of the other financial instruments such as the outstanding preference shares and
perpetual capital securities at the period-end
Naught
(2) Change table of the financial instruments such as the outstanding preference shares and perpetual
capital securities at the period-end
Naught
55. Capital reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium 289,084,024.29 289,084,024.29
Other capital reserves 7,240,351.29 5,620.25 7,245,971.54
Total 296,324,375.58 5,620.25 296,329,995.83
Other notes, including changes and reason of change:
—Other capital reserves increased of RMB 5,620.25 during the Reporting Period, which mainly due to the income of the historical
odd lots dividends of the listed companies returned by the Shenzhen Branch of CSDCC. The securities companies had cleared the
historical odd lots dividends that kept by the securities companies according to the Notice of the Related Events of the Return of the
Historical Odd Lots Dividends issued by Shenzhen Branch of CSDCC and had returned the historical odd lots dividends to the listed
companies; at the same time, the listed companies included the historical odd lots dividends into the relevant reserved funds subjects
of the shareholders’ equities.
56. Treasury stock
Naught
57. Other comprehensive income
Unit: RMB
Reporting period
Less: Amount
transferred
Amount After-tax After-tax
Opening into profit and Less: Closing
Item incurred attribute to attribute to
balance loss in the income tax balance
before the parent minority
current period expense
income tax company shareholder
that
recognized
123
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
into other
comprehensive
income in
prior period
II. Other comprehensive income 2,212,989,15 164,936,09 24,618,320. 140,317,77 2,353,306
reclassify into profits and losses 6.02 8.72 04 8.68 ,934.70
Profits or losses from the change of 2,212,989,15 164,122,13 24,618,320. 139,503,81 2,352,492
fair value of available for sale
6.02 3.58 04 3.54 ,969.56
financial assets
813,965.1
Other 813,965.14 0.00 813,965.14
4
2,212,989,15 164,936,09 24,618,320. 140,317,77 2,353,306
Total of other comprehensive income
6.02 8.72 04 8.68 ,934.70
58. Special reserves
Naught
59. Surplus reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
491,552,538.76 491,552,538.76
reserves
Discretional surplus
136,886,568.36 136,886,568.36
reserves
Total 628,439,107.12 628,439,107.12
Notes to the surplus reserves including the notes to the increase/decrease during the Reporting Period as well as the reasons:
60. Retained profits
Unit: RMB
Item Amount Withdrawal or distributed proportion
Opening balance of retained profits before
613,661,381.40 777,810,478.44
adjustments
Opening balance of retained profits after
613,661,381.40 777,810,478.44
adjustments
Add: Net profit attributable to owners of the
206,925,812.72 100,258,759.31
Company
Dividend of common stock payable 15,901,660.85 215,284,023.90
Closing retained profits 804,685,533.27 662,785,213.85
List of adjustment of opening retained profits:
124
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
1) RMB0.00 opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards for
Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained profits was affected by changes on accounting policies.
3) RMB0.00 opening retained profits was affected by correction of significant accounting errors.
4) RMB0.00 opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00 opening retained profits was affected totally by other adjustments.
61. Revenue and cost of sales
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 1,743,092,467.69 1,315,261,790.95 1,511,711,913.81 1,160,678,870.83
Other operations 12,578,459.75 7,720,769.75 12,650,872.68 5,364,570.18
Total 1,755,670,927.44 1,322,982,560.70 1,524,362,786.49 1,166,043,441.01
62. Business tax and surcharges
Unit: RMB
Item Reporting Period Same period of last year
Business tax 233,406.51 663,020.91
Urban maintenance and construction tax 7,002,504.08 6,547,903.14
Education Surcharge 5,015,667.87 4,713,909.73
Total 12,251,578.46 11,924,833.78
63. Sales expenses
Unit: RMB
Item Reporting Period Same period of last year
Transport fees 26,988,943.15 30,979,809.21
Salary 23,124,058.32 22,850,138.19
Sales promotion fee& dealer meeting
8,919,049.44 7,365,122.95
expense
Business propagandize fee 5,771,832.24 9,569,210.87
Business travel charges 3,730,926.88 2,050,131.78
Street light project maintenance fee 40,600.00 104,300.00
Service charges on promotion of
0.00 6,103,936.07
energy-saving products ee
125
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Others 4,676,397.38 3,201,731.20
Total 73,251,807.41 82,224,380.27
Other notes
64. Administration expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 25,133,604.07 27,766,417.20
Depreciation charge 9,506,297.68 12,550,537.58
Tax expenses 7,387,142.35 8,023,991.73
Office expenses 4,466,075.16 3,086,027.82
R&D expenses 3,198,358.61 3,669,947.35
Amortization of intangible assets 2,100,959.51 3,019,175.39
Testing expense 680,292.67 652,439.04
Others 29,645,097.89 55,527,312.58
Total 82,117,827.94 114,295,848.69
65. Financial expenses
Unit: RMB
Item Reporting Period Same period of last year
Interest expenses
Less: Interest income 6,489,563.72 7,469,744.78
Exchange loss -556,267.25 -5,153,449.97
Others 600,077.93 1,415,253.95
Total -6,445,753.04 -11,207,940.80
66. Asset impairment loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 14,692,768.91 6,742,683.01
II. Inventory falling price loss 21,160,604.92
VII. Impairment losses of fix asset
37,880,650.98
impairment loss
IX. Impairment losses of construction in 2,000,000.00
126
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
process
Total 35,853,373.83 46,623,333.99
Other notes:
67. Gains and losses from changes in fair value
Unit: RMB
Sources Reporting Period Same period of last year
2. Financial assets measured by fair value
and the changes be included in the current 1,272,770.46
profits and losses
Total 1,272,770.46
68. Investment income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
-19,640.12 -1,208.40
accounted by equity method
Investment income received from financial
assets measured by fair value and the changes
870.00
be included in the current profits and losses
during holding period
Investment income received from disposal of
financial assets measured by fair value and the
261,818.10 640,080.26
changes be included in the current profits and
losses during holding period
Investment income received from holding of
10,950,922.50 3,449,696.24
available-for-sale financial assets
Investment income received from disposal of
17,063,266.56
available-for-sale financial assets
Gain/loss on entrusting others with
2,659,136.99
investments or asset management
Others -131,489.70 -443,538.84
Total 13,720,747.77 20,709,165.82
69. Non-operating gains
Unit: RMB
127
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Total gains from disposal of
20,253.97 6,114.53 20,253.97
non-current assets
Including: Gains from disposal
20,253.97 6,114.53 20,253.97
of fixed assets
Government subsidies 505,099.96 2,519,246.86 505,099.96
Others 1,049,662.65 419,340.96 1,049,662.65
Total 1,575,016.58 2,944,702.35 1,575,016.58
Government subsidies recorded into current profits and losses
Unit: RMB
Whether
subsidies
Special Related to
Distribution Distribution influence the Reporting Same period
Item Nature subsidy or assets/related
entity reason current Period of last year
not income
profits and
losses or not
Guangdong
province
hundreds and
Subsidy from
millions of
R&D
LED indoor
Technical Related to the
lighting Subsidy No No 1,802,496.00
updating and income
demonstratio
transformatio
n zone
n, etc.
construction
project
engineering
Special funds Subsidy from
for export R&D
enterprises Technical Related to the
Award No No 69,000.00
exploiting the updating and income
international transformatio
market n, etc.
Subsidy from
Award for
R&D
adopting
Technical Related to the
international Award No No 150,000.00
updating and income
standard
transformatio
products
n, etc.
Project of Subsidy Due to No No 28,166.86 Related to the
128
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
FGD fly ash engaged in assets
removal of special
furnace industry that
system the state
encouraged
and
supported,
gained
subsidy
(obtaining in
line with the
law and the
regulations of
national
policy)
Due to
engaged in
special
industry that
the state
Production encouraged
line of 50 and
million supported, Related to the
Subsidy No No 77,499.96 77,499.93
energy-savin gained assets
g fluorescent subsidy
lamp (obtaining in
line with the
law and the
regulations of
national
policy)
Chancheng
Subsidy from
District
R&D
Economy and
Technical Related to the
Science Award No No 66,000.00
updating and income
Promotion
transformatio
Bureau Talent
n, etc.
Subsidy
The Subsidy from
development R&D
Related to the
of science Award Technical No No 93,600.00
income
and updating and
technology transformatio
129
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
plan project n, etc.
funds
Special fund
for Subsidy from
Guangdong R&D
province Technical Related to the
Award No No 66,666.67
steady updating and income
growth and transformatio
adjusting the n, etc.
structure
Subsidy from
2014 Suzhou
R&D
No. 32
Technical Related to the
Sci-tech Award No No 90,000.00
updating and income
development
transformatio
project funds
n, etc.
Clean energy
reward for
social
Subsidy from
Development
R&D
Management
Technical Related to the
Branch of Award No No 330,000.00
updating and income
Luocun
transformatio
Town,
n, etc.
Nanhai
District,
Foshan City
Subsidy from
R&D
Other odd
Technical Related to the
government Award No No 49,000.00 124,417.40
updating and income
subsidies
transformatio
n, etc.
Total -- -- -- -- -- 505,099.96 2,519,246.86 --
70. Non-operating expenses
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Loss on disposal of non-current
223,092.25 397,124.46 223,092.25
assets
130
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Including: Loss on disposal of
223,092.25 397,124.46 223,092.25
fixed assets
The inventory scrap loss 3,403,353.00 0.00 3,403,353.00
Lawsuit compensation 100,000.00 14,167,695.69 100,000.00
Others 1,190,611.69 371,344.00 1,190,611.69
Total 4,917,056.94 14,936,164.15 4,917,056.94
71. Income tax expense
(1) Lists of income tax expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 44,968,418.65 30,879,655.70
Deferred income tax expense -5,542,441.36 -2,945,888.59
Total 39,425,977.29 27,933,767.11
(2) Adjustment process of accounting profit and income tax expense:
Unit: RMB
Item Reporting Period
Total profits 246,038,239.55
Current income tax expense accounted by tax and relevant
37,027,830.75
regulations
Influence of different tax rate suitable to subsidiary 396,181.53
Influence of income tax before adjustment 3,644,603.38
Influence of non taxable income -1,642,638.37
Income tax expense 39,425,977.29
72. Other comprehensive income
For details, please refer to Notes on major items in consolidated financial statements of the Company, 57.
73. Supplementary information to cash flow statement
(1) Other cash received relevant to operating activities:
Unit: RMB
Item Reporting Period Same period of last year
131
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Deposit interest 5,465,229.02 5,785,682.33
Income from waste 1,910,274.50 1,274,788.64
Property and rental income 1,058,343.21 1,136,667.64
Guaranteed income 2,428,184.00 431,500.00
Income from subsidy 939,625.32 2,983,009.39
Income from insurance compensation 2,217,602.70 0.00
Others 1,038,449.92 1,936,655.57
Total 15,057,708.67 13,548,303.57
(2) Other cash paid relevant to operating activities:
Unit: RMB
Item Reporting Period Same period of last year
Transport fees 32,535,287.92 36,536,448.87
Donations, punishment, lawsuit
12,680,691.76 16,443,916.00
compensation
Advertising expense 9,850,522.41 11,248,789.70
Audit fees, attorney fees, appraisal cost
6,382,707.08 6,535,761.28
and detect cost
Business office expenses 4,324,091.36 3,651,094.22
The spare parts, maintenance, and service
1,076,002.69 1,958,384.21
charge
Margin 864,301.00 2,296,906.74
Business travel charges 4,541,469.24 3,689,247.96
Commission 0.00 387,472.35
Energy-saving promotion fee 368,987.65 4,239,305.40
Street light project construction and
1,677,736.31 1,311,367.18
maintenance
Land rent and management fee 3,311,454.39 1,361,983.61
Trademark fee& patent fee 442,693.00 445,459.94
Others 4,121,304.08 6,128,849.74
Total 82,177,248.89 96,234,987.20
(3) Other cash received relevant to investment activities
Naught
132
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(4) Other cash paid relevant to investment activity
Unit: RMB
Item Reporting Period Same period of last year
Others 39,878.12
The future foreign exchange settlement
7,500,000.00
guarantee deposit
Total 7,539,878.12
(5) Other cash received relevant to financing activities
Naught
(6) Other cash paid relevant to financing activities
Naught
74. Supplemental information for Cash Flow Statement
(1) Supplemental information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities
Net profit 206,612,262.26 96,515,596.92
Add: Provision for impairment of assets 35,853,373.83 46,623,333.99
Depreciation of fixed assets, of oil-gas
37,519,048.12 36,034,850.96
assets, of productive biological assets
Amortization of intangible assets 2,100,959.51 3,073,889.51
Long-term unamortized expenses 84,671.95 515,785.87
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: -20,253.97
negative)
Loss on retirement of fixed assets (gains:
223,092.25 391,009.93
negative)
Losses from variation of fair value (gains:
-1,272,770.46
negative)
Financial cost (gains: negative) -956,368.36 1,839,130.38
Investment loss (gains: negative) -13,720,747.77 -20,709,165.82
133
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Decrease in deferred income tax assets
-5,535,752.11 2,229,221.95
(gains: negative)
Increase in deferred income tax liabilities
-6,689.25 190,915.57
(“-” means decrease)
Decrease in inventory (gains: negative) 84,829,939.85 20,977,215.53
Decrease in accounts receivable from
-161,829,594.02 -143,332,226.48
operating activities (gains: negative)
Increase in payables from operating
106,474,364.77 56,197,559.85
activities (decrease: negative)
Net cash flows generated from operating
291,628,307.06 99,274,347.70
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of cash 780,593,190.58 874,167,564.37
Less: Opening balance of cash 933,546,108.37 989,718,395.60
Net increase in cash and cash equivalents -152,952,917.79 -115,550,831.23
(2) Net Cash paid of obtaining the subsidiary
Naught
(3) Net Cash receive from disposal of the subsidiary
Naught
(4) Cash and cash equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 780,593,190.58 933,546,108.37
Including: Cash on hand 58,201.50 36,008.01
Bank deposit on demand 769,190,457.49 853,647,752.46
Other monetary funds on demand 11,344,531.59 79,862,347.90
III. Closing balance of cash and cash
780,593,190.58 933,546,108.37
equivalents
134
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
75. Notes to items of changes in owner's equity
Note to name of "other" item adjusted closing balance and the adjustment amount:
Not applicable
76. The assets with the ownership or use right restricted
Unit: RMB
Item Closing book value Restricted reason
The future foreign exchange settlement
Monetary capital 7,500,000.00
guarantee deposit
Total 7,500,000.00 --
77. Foreign currency monetary items
(1) Foreign currency monetary items
Unit: RMB
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital -- -- 3,303,409.05
Including: USD 497,854.53 6.6312 3,301,372.96
EUR 276.08 7.3750 2,036.09
Account receivable -- -- 201,345,705.80
Including: USD 30,363,389.10 6.6312 201,345,705.80
Accounts payable 245,354.40
Including: USD 37,000.00 6.6312 245,354.40
Advance from customers 12,303,523.31
Including: USD 1,855,399.22 6.6312 12,303,523.31
(2) Note to oversea entities including: for significant oversea entities, shall disclose main operating place,
recording currency and selection basis, if there are changes into recording currency, shall also disclose the
reason.
□ Applicable √ Not applicable
78. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable
135
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
79. Other
Not applicable
VIII. Changes of merge scope
1. Business combination not under the same control
(1) Business combination under the same control during the Reporting Period
Naught
(2) Combination cost and goodwill
Naught
(3) Identifiable assets and liabilities of acquiree on purchase date
Naught
(4) Profits or losses of residual equity held before purchase dare recalculated in line with fair value
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the control
during the Reporting Period
□ Yes √ No
(5) Note to merger could not be determined reasonable consideration or Identifiable assets, Fair value of
liabilities of the acquiree at acquisition date or closing period of the merge
Naught
(6) Other notes
Naught
2. Business combination under the same control
(1) Business combination under the same control during the Reporting Period
Naught
(2) Combination cost
Naught
136
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) The book value of the assets and liabilities of the combined party at combining date
Naught
3. Counter purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of the listed companies
whether constituted a business and its basis, the determination of the combination costs, the amount and calculation of adjusted rights
and interests in accordance with the equity transaction process.
Naught
4. The disposal of subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in Reporting Period
□ Yes √ No
5. Other reasons for the changes in combination scope
Note to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant
information:
For details see 3. Consolidated Financial Statement Scope, III. Company Profile, Section IX Financial Report.
6. Other
Naught
IX. Equity in other entities
1. Equity in subsidiary
(1) The structure of the enterprise group
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Foshan
Chansheng Production and Newly
Foshan Foshan 100.00% 0.00%
Electronic Ballast sales established
Co., Ltd.
Foshan
Production and Newly
Chanchang Foshan Foshan 70.00% 0.00%
sales established
Electric
137
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Appliance
(Gaoming) Co.,
Ltd.
Foshan Taimei
Production and Newly
Times Lamps and Foshan Foshan 70.00% 0.00%
sales established
Lanterns Co., Ltd.
Guangdong
Fozhao New
Production and Newly
Light Sources Foshan Foshan 100.00% 0.00%
sales established
Technology Co.,
Ltd.
Foshan Electrical
& Lighting Production and Newly
Xinxiang) Xinxiang) 100.00% 0.00%
(Xinxiang) Co., sales established
Ltd.
Guangdong
Newly
Fozhao Leasing Foshan Foshan Finance lease 100.00% 0.00%
established
Co., Ltd.
Foshan Lighting
Lamps & Production and Newly
Foshan Foshan 100.00% 0.00%
Components Co., sales established
Ltd.
Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% 0.00% Purchase
sales
Manufacturing
Co., Ltd.
Notes: holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been
controlled investee:
Naught
Significant structure entities and controlling basis in the scope of combination:
Naught
Basis of determine whether the Company is the agent or the principal:
Naught
(2) Significant not wholly owned subsidiary
Unit: RMB
Name Shareholding proportion The profits and losses Declaring dividends Balance of minority
138
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
of minority shareholder arbitrate to the minority distribute to minority shareholder at closing
shareholders shareholder period
Foshan Chanchang
Electric Appliance 30.00% 13,189.73 30,004,374.24
(Gaoming) Co., Ltd.
Foshan Taimei Times
Lamps and Lanterns Co., 30.00% 471,106.83 10,062,534.46
Ltd.
Total 484,296.56 40,066,908.70
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Naught
(3) The main financial information of significant not wholly owned subsidiary
Unit: RMB
Closing balance Opening balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Foshan
Chancha
ng
Electric
73,783,1 33,209,4 106,992, 6,977,96 6,977,96 73,220,6 35,531,3 108,752, 8,781,43 8,781,43
Applianc
40.92 01.27 542.19 1.38 1.38 99.00 55.54 054.54 9.48 9.48
e
(Gaomin
g) Co.,
Ltd.
Foshan
Taimei
Times
59,034,5 7,355,56 66,390,0 32,848,2 32,848,2 51,164,1 8,097,17 59,261,2 27,289,8 27,289,8
Lamps
11.59 8.61 80.20 98.64 98.64 04.98 0.56 75.54 50.07 50.07
and
Lanterns
Co., Ltd.
132,817, 40,564,9 173,382, 39,826,2 39,826,2 124,384, 43,628,5 168,013, 36,071,2 36,071,2
Total
652.51 69.88 622.39 60.02 60.02 803.98 26.10 330.08 89.55 89.55
Unit: RMB
Reporting Period Same period of last year
Name Operation Total Operating Operation Total Operating
Net profit Net profit
revenue comprehensi cash flow revenue comprehensi cash flow
139
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
ve income ve income
Foshan
Chanchang
Electric 25,826,877.8 18,925,514.2
43,965.75 43,965.75 -502,668.93 -1,498,575.91 -1,498,575.91 -5,993,838.17
Appliance 2 2
(Gaoming)
Co., Ltd.
Foshan
Taimei Times
51,763,010.9 67,478,345.3
Lamps and 1,570,356.09 1,570,356.09 301,174.27 2,603,080.01 2,603,080.01 -4,255,519.21
4 3
Lanterns Co.,
Ltd.
77,589,888.7 86,403,859.5 -10,249,357.3
Total 1,614,321.84 1,614,321.84 -201,494.66 1,104,504.10 1,104,504.10
6 5 8
(4) Significant restrictions of using enterprise group assets and pay off enterprise group debt
Naught
(5) Provide financial support or other support for structure entities incorporate into the scope of
consolidated financial statements
Naught
2. The transaction of the Company with its owner’s equity share changed but still controlling the subsidiary
(1) Note to owner’s equity share changed in subsidiary
Naught
(2) The transaction’s influence to equity of minority shareholders and attributable to the owner's equity of
the parent company
Naught
3. Equity in joint venture arrangement or associated enterprise
(1) Significant joint venture arrangement or associated enterprise
Naught
(2) Main financial information of significant joint venture
Naught
140
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(3) Main financial information of significant associated enterprise
Naught
(4) Summary financial information of insignificant joint venture or associated enterprise
Unit: RMB
Closing balance/ Reporting Period Opening balance /last period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
Total investment book value 362,997.40 382,637.52
The total of following items according to the
-- --
shareholding proportions
--Net profits -19,640.12 -3,307,086.87
--Total comprehensive income -19,640.12 -3,307,086.87
(5) Note to the significant restrictions of the ability of joint venture or associated enterprise transfer funds
to the Company
Naught
(6) The excess loss of joint venture or associated enterprise
Naught
(7) The unrecognized commitment related to joint venture investment
Naught
(8) Contingent liabilities related to joint venture or associated enterprise investment
Naught
4. Significant common operation
Naught
5. Equity of structure entity not including in the scope of consolidated financial statements
Naught
141
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
6. Other
Naught
X. The risk related financial instruments
The financial instruments of the Company included: monetary funds, accounts receivable, notes receivable,
accounts payable, etc. The details of each financial instrument see relevant items of note V.
The main risks of the Company due to financial instruments were credit risk, liquidity risk and market risk. The
operating management of the Company was responsible for the risk management target and the recognition of the
policies.
1 Credit risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the
other party. The credit risk the Company faced was selling on credit which leads to customer credit risk.
The Company will evaluate credit risk of new customer, and set credit limit, once the balance of account
receivable over credit limit, require the customer to pay or producing and delivering goods shall be approved by
the management of the Company.
The Company through monthly aging analysis of account receivable and monitoring the collection situation of the
customer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation,
the Company should conduct necessary measures to requesting the payment timely.
2. Liquidity Risk
Liquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in the
way of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient
cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of the
Company. The financial department through supervising the balance of the cash and securities can be convert to cash at any time
and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficient cash to pay the liabilities under the
case of all reasonable prediction, Each financial liability of the Company was estimated due within 1 year.
3. Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the
change of market price, including: exchange rate risk, interest rate risk and other price risk.
A. Exchange rate risk
Exchange rate risk was referred to the possible loss due to changes of exchange rate in the financial activities that
economic agents held or used the foreign exchange. The Company’s export business was settled by USD which
avoided exchange risk the Company faced in transaction.
B. Interest rate risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due
to the change of market price. There was no bank loan in the Company, thus no RMB benchmark interest rate
changes
C. Other price risk
N/A
142
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
XI. The disclosure of the fair value
1. Closing fair value of assets and liabilities calculated by fair value
Unit: RMB
Closing fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(II) Available-for-sale
2,951,288,535.54 2,951,288,535.54
financial assets
(2) Equity tool investment 2,951,288,535.54 2,951,288,535.54
Total assets of consistent
2,951,288,535.54 2,951,288,535.54
fair value measurement
II. Inconsistent fair value
-- -- -- --
measurement
2. Market price recognition basis for consistent and inconsistent fair value measurement items at level 1
The recognition judgment of the fair value measurement items at level 1 was the stock price on assets balance sheet date
3. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 2
Naught
4. Valuation technique adopted and nature and amount determination of important parameters for
consistent and inconsistent fair value measurement items at level 3
Naught
5. Sensitiveness analysis on unobservable parameters and adjustment information between opening and
closing book value of consistent fair value measurement items at level 3
Naught
6. Explain the reason for conversion and the policy governing when the conversion happens if conversion
happens among consistent fair value measurement items at different levels
Naught
143
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
7. Changes in the valuation technique in the current period and the reason for change
Naught
8. Fair value of financial assets and liabilities not measured at fair value
Naught
9. Other
Naught
XII. Related party and related Transaction
1. Information related to parent company of the Company
Proportion of voting
Proportion of share
rights owned by
Name of parent held by parent
Registration place Nature of business Registered capital parent company
company company against the
against the Company
Company (%)
(%)
Hong Kong Wah
Shing Holding Hong Kong / / 13.47% 13.47%
Company Limited
Guangdong
Electronics
Guangzhou Production, sale RMB462 million 4.75% 4.75%
Information Industry
Group Ltd.
Shenzhen
Guangsheng
Investment Shenzhen Investment RMB120 million 4.52% 4.52%
Development Co.,
Ltd.
Guangsheng
Investment
Hong Kong / / 1.82% 1.82%
Development Co.,
Ltd.
Total 24.56% 24.56%
Notes: Information on the parent company:
-9 September 2015, the Company’s original first majority shareholder OSRAM Holding Company Limited signed Equity Transfer
Agreement with Guangdong Electronics Information Industry Group Co., Ltd. (Hereinafter referred to as "Electronics Group”)
Germany OSRAM Company Limited transfer its 100% share equity to Electronics Group. The relevant transaction was completed on
4 December 2015. Electronics Group became only controlling shareholder of OSRAM Holding (Renamed as Hong Kong Wah Shing
144
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Holding Company Limited (hereinafter referred to as “Hong Kong Wah Shing Holding”) and indirectly became the first majority
shareholder of the Company.
-The first majority shareholder of the Company, Hong Kong Huasheng Holding Co., Ltd. was the wholly owned subsidiary of
Electronics Group, and Electronics Group, Shenzhen Guangsheng Investment Development Co., Ltd. ( Hereinafter referred to as
" Shenzhen Guangsheng " ) and Guangsheng Investment Development Co., Ltd. ( Hereinafter referred to as " Guangsheng
Investment" )were the wholly owned subsidiaries of Guangdong Rising Assets Management Co., Ltd. In line with the relevant
stipulation of Corporation Law and Rules on Listed Companies Acquisition, Electronics Group, Shenzhen Guangsheng and
Guangsheng Investment were persons acting in concert. As of 31 December 2015, the aforesaid persons acting in concert holding
total A, B share of the Company 294,420,550 shares, 23.144 % of total share equity of the Company.
-From 29 April 2016 to 18 May 2016, the Company's controlling shareholder and person acting in concert Shenzhen Guangsheng
Investment Development Co., Ltd. ( Hereinafter referred to as " Shenzhen Guangsheng " ) increased shareholding of A share of the
Company 18,002,924 shares, 1.415% of total share capital of the Company through SSE system. After increasing shareholding, as
of 30 June 2016, the aforesaid persons acting in concert holding total A, B share of the Company 312,423,474 shares, 24.559% of
total share equity of the Company.
The final controller of the Company is Guangdong Rising Assets Management Co., Ltd. (GRAM)
2. Subsidiaries of the Company
See details to Notes IX. Equity in other entities, 1. Equity in subsidiary.
3. Information on the joint ventures and associated enterprises of the Company
The details of significant joint venture and associated enterprise of the Company, please refer to Notes IX. Equity in other entities, 3.
Equity in the joint venture arrangement or associated enterprise
4. Information on other related parties of the Company
Name Relationship
Acting-in-concert party of a corporation with a stake over 5% in
Guangdong Electronics Information Industry Group Ltd.
the Company
Acting-in-concert party of a corporation with a stake over 5% in
OSRAM (China) Lighting Co., Ltd.
the Company within the past 12 months
Acting-in-concert party of a corporation with a stake over 5% in
OSRAM Asia Pacific Ltd.
the Company within the past 12 months
Prosperity Lamps and Components Ltd. Shareholder owning over 5% shares
Prosperity Electrical (China) Co., Ltd. Company controlled by related natural person
Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. Company controlled by related natural person
Hangzhou Times Lighting and Electrical Co., Ltd. Company controlled by related natural person
Foshan NationStar Optoelectronics Co. Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology Holding Co., Ltd. Under same actual controller
Henan Guangsheng Technology Investment Co., Ltd. Under same actual controller
145
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Shanghai Linxian Mechanical and Electrical Equipment Co., Ltd. Related natural person as a senior manager in the company
5. List of related-party transactions
(1) Information on acquisition of goods and reception of labor service (unit: ten thousand Yuan)
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Related party Content Reporting Period
credit credit or not year
Prosperity Lamps
Purchase of raw
and Components 1,205,832.30 6,500,000.00 No 6,199,780.58
material
Ltd.
Prosperity Electrical Purchase of raw
4,670,025.04 15,000,000.00 No 11,980,714.88
(China) Co., Ltd. material
Hangzhou Times
Purchase of raw
Lighting and 978,074.43 3,500,000.00 No 1,886,095.56
material
Electrical Co., Ltd.
Prosperity
(Xinxiang) Purchase of
No 169,129.06
Electro-Optical equipment
Machinery Co., Ltd
Foshan NationStar
Purchase of raw
Optoelectronics 50,935,351.13 300,000,000.00 No 0.00
material
Co., Ltd.
Guangdong
Fenghua Advanced Purchase of raw
2,950,368.03 20,000,000.00 No 0.00
Technology Holding material
Co., Ltd.
Total 60,739,650.93 345,000,000.00 No 20,235,720.08
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Prosperity Lamps and
Sale of products 13,828,671.26 16,513,390.54
Components Ltd.
Prosperity (Hangzhou) Lighting
Sale of products 63,364.11 1,231,915.65
and Electrical Co., Ltd.
Prosperity Electrical (China)
Sale of products 127,799.81 475,973.15
Co., Ltd.
146
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
OSRAM (China) Lighting Co.,
Sale of products 4,974,811.87 8,267,791.27
Ltd.
OSRAM Asia Pacific Ltd. Sale of products 5,480,151.82 6,634,481.40
Shanghai Linxian Mechanical
and Electrical Equipment Co., Sale of products 101,813.76 109,372.97
Ltd.
Foshan NationStar
Sale of products 139,981.43 0.00
Optoelectronics Co., Ltd.
Total 24,716,594.06 33,232,924.98
(2) Related trusteeship/contract
Naught
(3) Information of related lease
The Company was lessor:
Unit: RMB
The lease income confirmed in The lease income confirmed in
Name of lessee Category of leased assets
this year last year
Shanghai Linxian Mechanical
and Electrical Equipment Co., House property 45,000.00 22,500.00
Ltd.
The Company was lessee:
Unit: RMB
The lease income confirmed in
lessor Category of leased assets Category of leased assets
this year
Guangdong Electronics
Information Industry Group Transportation equipment 24,500.00 0.00
Ltd.
(4) Related-party guarantee
Naught
(5) Inter-bank lending of capital of related parties：
Naught
147
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(6) Related party asset transfer and debt restructuring
Naught
(7) Rewards for the key management personnel
Unit: RMB
Item Reporting Period Same period of last year
Chairman of the Board 945,000.00
Director & GM 496,125.00 708,750.00
Chairman of the Supervisor 259,998.00
Chairman Secretary 358,314.00 358,314.00
CFO 298,595.00 567,000.00
Others 2,099,970.00 1,569,321.00
Total 3,253,004.00 4,408,383.00
Note；The Director of the Board, Chairman of the Supervisory did not gain reward from the Company.
(8) Other related-party transactions
Naught
6. Receivables and payables of related parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Name o f item Related party
Book balance Bad debt provision Book balance Bad debt provision
Prosperity
(Hangzhou) Lighting
Account receivable 405,503.27 24,330.20 1,183,367.27 71,002.04
and Electrical Co.,
Ltd.
Prosperity Electrical
Account receivable 28,772.70 1,726.36 0.00 0.00
(China) Co., Ltd.
OSRAM (China)
Account receivable 2,810,729.88 168,643.79 2,305,508.76 138,330.53
Lighting Co., Ltd.
Foshan NationStar
Account receivable Optoelectronics Co., 0.00 0.00 538,938.00 32,336.28
Ltd.
Account receivable Prosperity Lamps 4,035,055.27 242,103.32 8,110,971.49 486,658.29
148
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
and Components
Ltd.
OSRAM Asia
Account receivable 869,222.29 52,153.34 5,551,463.20 333,087.79
Pacific Ltd.
Shanghai Linxian
Mechanical and
Account receivable 30,299.68 1,817.98 115,788.02 6,947.28
Electrical Equipment
Co., Ltd.
Shanghai Linxian
Other accounts Mechanical and
7,500.00 450.00 0.00 0.00
receivable Electrical Equipment
Co., Ltd.
Henan Guangsheng
Prepayment Technology 117,000.00 0.00 117,000.00 0.00
Investment Co., Ltd.
Prosperity Electrical
Prepayment 93,168.39 0.00 0.00 0.00
(China) Co., Ltd.
(2) Payables
Unit: RMB
Name o f item Related party Closing book balance Opening book balance
Prosperity Lamps and
Accounts payable 2,655,530.46 1,733,345.47
Components Ltd.
Prosperity Electrical (China)
Accounts payable 2,622,446.00 6,457,303.92
Co., Ltd.
Foshan NationStar
Accounts payable 20,583,923.01 28,114,401.12
Optoelectronics Co., Ltd.
Hangzhou Times Lighting and
Accounts payable 587,272.51 275,413.63
Electrical Co., Ltd.
Guangdong Fenghua Advanced
Accounts payable 1,810,347.22 440,962.32
Technology Holding Co., Ltd.
Prosperity Electrical (China)
Other account payable 100,000.00 0.00
Co., Ltd.
Prosperity Lamps and
Other account payable 448,258.77 0.00
Components Ltd.
Prosperity Electrical (China)
Advance from customers 0.00 18,133.90
Co., Ltd.
Foshan NationStar
Advance from customers 0.07 0.00
Optoelectronics Co., Ltd.
149
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
7. Related party commitment
(1)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About share lock-up
Contents: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that within 12 months from the completion of their acquisitions, they shall
not transfer or entrust others to manage the shares directly or indirectly held by them in the Company, nor shall
they allow the Company to repurchase those shares, except for the case where those shares may be transferred for
no compensation due to any business or asset integration with their actual controller or their actual controller’s
controlled subsidiaries.
Date of commitment making: 2015-12-04
Term of commitment: 12 months
Fulfillment: In execution
(2)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About avoidance of horizontal competition
Content: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that the business of Foshan NationStar Optoelectronics Co., Ltd. that is in
competition with the business of the Company takes up only a small part in NationStar’s total business, they shall
gradually reduce or eliminate the horizontal competition as planned through business integration or other ways or
arrangements within the coming 24 months.
Date of commitment making: 2015-12-04
Term of commitment: 24 months
Fulfillment: In execution
(3)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About avoidance of horizontal competition
Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made more commitments as follows to avoid horizontal competition with the Company: 1. They
shall conduct supervision and restraint on the production and operation activities of themselves and their relevant
enterprises so that besides the enterprise above that is in horizontal competition with the Company for now, if the
products or business of them or their relevant enterprises become the same with or similar to those of the
Company or its subsidiaries in the future, they shall take the following measures: (1) If the Company thinks
necessary, they and their relevant enterprises shall reduce and wholly transfer their relevant assets and business;
and (2) If the Company thinks necessary, it is given the priority to acquire first, by proper means, the relevant
assets and business of them and their relevant enterprises. 2. All the commitments made by them to eliminate or
avoid horizontal competition with the Company are also applicable to their directly or indirectly controlled
subsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the
150
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
relevant document and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly
controlled subsidiaries break the aforesaid commitments and thus cause a loss for the Company, they shall
compensate the Company on a rational basis.
Date of commitment making: 2015-12-04
Term of commitment: Long-standing
Fulfillment: In execution
(4)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About reduction and regulation of related-party transactions
Content: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that during their direct or indirect holding of the Company’s shares, they
shall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE, the Company’s Articles of
Association, etc. and not harm the interests of the Company or other shareholders of the Company in their
production and operation activities by taking advantage of their position as the controlling shareholder and actual
controller; 2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run or associated
companies (the “Relevant Enterprises” for short) will try their best to avoid or reduce related-party transactions
with the Company or the Company’s subsidiaries; 3. strictly follow the market principle of justness, fairness and
equal value exchange for necessary and unavoidable related-party transactions between them and their Relevant
Enterprises and the Company, and withdraw from voting when a related-party transaction with them or their
Relevant Enterprises is being voted on at a general meeting or a board meeting, and execute the relevant approval
procedure and information disclosure duties pursuant to the applicable laws, regulations and regulatory documents.
Where the aforesaid commitments are broken and a loss is thus caused for the Company, its subsidiaries or the
Company’s other shareholders, they shall be obliged to compensate.
Date of commitment making: 2015-12-04
Term of commitment: Long-standing
Fulfillment: In execution
(5)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About independence
In order to ensure the independence of the Company in business, personnel, asset, organization and finance,
Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made the following commitments: 1. They will ensure the independence of the Company in
business: (1) They promise that the Company will have the assets, personnel, qualifications and capabilities for it
to operate independently as well as the ability of independent, sustainable operation in the market. (2) They
promise not to intervene in the Company’s business activities other than the execution of their rights as the
Company’s shareholders. (3) They promise that they and their related parties will not be engaged in business that
is substantially in competition with the Company’s business. And (4) They promise that they and their related
parties will try their best to reduce related-party transactions between them and the Company; for necessary and
unavoidable related-party transactions, they promise to operate fairly following the market-oriented principle and
at fair prices, and execute the transaction procedure and the duty of information disclosure pursuant to the
151
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
applicable laws, regulations and regulatory documents. 2.They will ensure the independence of the Company in
personnel: (1) They promise that the Company’s GM, deputy GMs, CFO, Company Secretary and other senior
management personnel will work only for and receive remuneration from the Company, not holding any positions
in them or their other controlled subsidiaries other than director and supervisor. (2) They promise the
Company’s absolute independence from their related parties in labor, human resource and salary management.
And (3) They promise to follow the legal procedure in their recommendation of directors, supervisors and senior
management personnel to the Company and not to hire or dismiss employees beyond the Company’s Board of
Directors and General Meeting. 3. They will ensure the independence and completeness of the Company in asset:
(1) They promise that the Company will have a production system, a auxiliary production system and supporting
facilities for its operation; legally have the ownership or use rights of the land, plants, machines, trademarks,
patents and non-patented technology in relation to its production and operation; and have independent systems for
the procurement of raw materials and the sale of its products. (2) They promise that the Company will have
independent and complete assets all under the Company’s control and independently owned and operated by the
Company. And (3) They promise that they and their other controlled subsidiaries will not illegally occupy the
Company’s funds and assets in any way, or use the Company’s assets to provide guarantees for the debts of
themselves or their other controlled subsidiaries with. 4. They will ensure the independence of the Company in
organization: (1) They promise that the Company has a sound corporate governance structure as a joint-stock
company with an independent and complete organization structure. (2) They promise that the operational and
management organs within the Company will independently execute their functions according to laws, regulations
and the Company’s Articles of Association. 5. They will ensure the independence of the Company in finance: (1)
They promise that the Company will have an independent financial department and financial accounting system
with normative, independent financial accounting rules. (2) They promise that the Company will have
independent bank accounts and not share bank accounts with its related parties. (3) They promise that the
Company’s financial personnel do not hold concurrent positions in its related parties. (4) They promise that the
Company will independently pay its tax according to law. And (5) They promise that the Company can make
financial decisions independently and that they will not illegally intervene in the Company’s use of its funds.
Date of commitment making: 2015-12-04
Term of commitment: Long-standing
Fulfillment: In execution
8. Other
Naught
XIII. Stock payment
1. The Stock payment overall situation
□ Applicable √ Not applicable
2. The Stock payment settled by equity
□ Applicable √ Not applicable
152
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
3. The Stock payment settled by cash
□ Applicable √ Not applicable
4. Modification and termination of the stock payment
Naught
5. Other
Naught
XIV. Commitments
1. Significant commitments
Significant commitments at balance sheet date
Naught
2. Contingency
(1) Significant contingency at balance sheet date
Naught
(2) The Company have no significant contingency to disclose, also should be stated
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after balance sheet date
1、 Significant events had not adjusted
Naught
2. Profit distribution
Naught
3. Sales return
Naught
153
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
4. Notes of other significant events
Naught
XVI. Other significant events
1. The accounting errors correction in previous period
Naught
2. Debt restructuring
Naught
3. Replacement of assets
Naught
4. Pension plan
Naught
5. Discontinuing operation
Naught
6. Segment information
7. Other important transactions and events have an impact on investors’ decision-making
Naught
8. Other
Naught
XVII. Notes of main items in the financial statements of the Company
1. Accounts receivable
(1) Accounts receivable classified by category
Unit: RMB
Category Closing balance Opening balance
154
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Book balance Bad debt provision Book balance Bad debt provision
Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with insignificant
single amount for 12,986, 12,986,75
3.05% 100.00%
which bad debt 752.44 2.44
provision separately
accrued
Accounts receivable
withdrawal of bad
721,220, 40,264,8 680,955,4 410,900 23,029,47 387,870,57
debt provision of by 98.24% 5.58% 96.40% 5.60%
332.61 97.23 35.38 ,049.63 1.45 8.18
credit risks
characteristics:
Accounts receivable
with insignificant
single amount for 12,919,8 12,919,8 2,352,9 2,352,989
1.76% 100.00% 0.55% 100.00%
which bad debt 64.11 64.11 89.65 .65
provision separately
accrued
734,140, 53,184,7 680,955,4 426,239 38,369,21 387,870,57
Total 100.00% 7.24% 100.00% 9.00%
196.72 61.34 35.38 ,791.72 3.54 8.18
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
□ Applicable √ Not applicable
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Account receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 645,360,241.39 38,721,614.48 6.00%
Subtotal of within 1 year 645,360,241.39 38,721,614.48 6.00%
1 to 2 years 7,898,702.81 473,922.17 6.00%
2 to 3 years 13,340,116.38 800,406.99 6.00%
Over 3 years 4,482,559.80 268,953.59 6.00%
Total 671,081,620.38 40,264,897.23 6.00%
Notes:
155
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB 17,163,934.35; the amount of the
reversed or collected part during the Reporting Period was of RMB 2,348,386.55.
Significant amount of reversed or recovered bad debt provision:
Unit: RMB
Name of the entity Amount Method
Foshan Three Water Center Science &
Technology Industry Park Development Co., 2,069,866.90 Cash recover
Ltd.
Kunming Hong Guang Ming Commerce
278,519.65 Cash recover
and Trade Co., Ltd.
Total 2,348,386.55 --
(3) Particulars of the actual verification of accounts receivable during the Reporting Period
Unit: RMB
Item Amount
Tianjin Jishi Shengda Lighting Co. , Ltd. 160,306.56
Other driblet small amount 107.59
Total 160,414.15
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Name of the entity Nature Closing balance Aging Proportion%
**COMPANY Goods payment 73,183,103.06 Within 1 year 9.97%
Nanjing Fozhao Lighting Components Goods payment 35,769,195.88 Within 1 year 4.87%
Manufacturing Co., Ltd.
***** PRUDUCTS INC. Goods payment 19,219,934.89 Within 1 year 2.62%
Henan Province***Lighting Co. , Ltd. Goods payment 16,988,574.91 Within 1 year 2.31%
** Light Electrical lighting L.L.C Goods payment 13,984,860.67 Within 1 year 1.90%
Total 159,145,669.41 21.68%
156
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(5) Derecogniziton of account receivable due to the transfer of financial assets
Naught
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Naught
Other notes:
-The closing balance of account receivable increase RMB 293,084,857.20, 75.56% of the total, comparing to that in opening period,
mainly was the sale amount increased.
2. Other accounts receivable
(1) Other account receivable classified by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Other accounts
receivable withdrawn
56,660,6 740,152. 55,920,54 48,263, 1,088,491 47,175,016.
bad debt provision 99.48% 1.31% 99.39% 2.26%
94.89 58 2.31 507.82 .67 15
according to credit
risks characteristics
Other accounts
receivable with
insignificant single 295,120. 295,120. 295,120 295,120.0
0.52% 100.00% 0.00 0.61% 100.00% 0.00
amount for which 00 00 .00 0
bad debt provision
separately accrued
56,955,8 1,035,27 55,920,54 48,558, 1,383,611 47,175,016.
Total 100.00% 1.82% 100.00% 2.85%
14.89 2.58 2.31 627.82 .67 15
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
157
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 7,126,094.61 427,565.68 6.00%
Subtotal of within 1 year 7,126,094.61 427,565.68 6.00%
1 to 2 years 4,928,341.88 295,700.51 6.00%
2 to 3 years 35,733.32 2,144.00 6.00%
Over 3 years 245,706.52 14,742.39 6.00%
Total 12,335,876.33 740,152.58 6.00%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB -348,339.09, the amount of reversed or recovered bad debt provision in the Reporting
Period RMB0.00
(3) Particulars of the actual verification of other accounts receivable during the Reporting Period
Naught
(4) Other account receivable classified by account nature
Unit: RMB
Nature Closing book balance Opening book balance
Internal business group 44,324,818.56 30,417,099.89
VAT export tax refunds 0.00 10,002,722.46
Performance bond 3,660,163.20 3,554,295.96
Staff borrow and deposit 4,676,026.62 730,813.84
Water & electricity fees 674,756.07 490,494.61
Advance money for street light construction 2,523,547.23 2,523,547.23
Other 1,096,503.21 839,653.83
Total 56,955,814.89 48,558,627.82
158
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
(5) The top five other account receivable classified by debtor at period-end
Unit: RMB
Closing balance of
Name of the entity Nature Closing balance Aging Proportion%
bad debt provision
Foshan Lighting
Internal business
Lamps & 21,185,987.05 Within 1 year 37.20% 0.00
group
Components Co., Ltd.
Nanjing Fozhao
Lighting Components Internal business
8,915,708.33 Within 1 year 15.65% 0.00
Manufacturing Co., group
Ltd.
Foshan Chansheng
Internal business
Electronic Ballast 4,427,811.01 Within 1 year 7.77% 0.00
group
Co., Ltd.
Foshan Taimei Times
Internal business
Lamps and Lanterns 3,593,455.63 Within 1 year 6.31% 0.00
group
Co., Ltd.
Guangdong Fozhao
Internal business
New Light Sources 3,027,945.48 Within 1 year 5.32% 0.00
group
Technology Co., Ltd.
Total -- 41,150,907.50 -- 72.25% 0.00
(6) Account receivable involving government subsidies
Naught
(7) Other account receivable derecognized due to the transfer of financial assets
Naught
(8) Amount of transfer other account receivable and assets and liabilities formed by its continuous
involvement
Naught
3. Long-term equity investment
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
159
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Investment to the
441,949,939.76 24,360,000.00 417,589,939.76 441,949,939.76 24,360,000.00 417,589,939.76
subsidiary
Investment to
joint ventures and
362,997.40 362,997.40 382,637.52 382,637.52
associated
enterprises
Total 442,312,937.16 24,360,000.00 417,952,937.16 442,332,577.28 24,360,000.00 417,972,577.28
(1) Investment to the subsidiary
Unit: RMB
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
Reporting Period
Foshan Chansheng
Electronic Ballast 2,744,500.00 2,744,500.00
Co., Ltd.
Foshan Chanchang
Electric Appliance
42,000,000.00 42,000,000.00
(Gaoming) Co.,
Ltd.
Foshan Taimei
Times Lamps and 350,000.00 350,000.00
Lanterns Co., Ltd.
Nanjing Fozhao
Lighting
Components 72,000,000.00 72,000,000.00
Manufacturing
Co., Ltd.
Foshan Electrical
& Lighting
35,418,439.76 35,418,439.76
(Xinxiang) Co.,
Ltd.
Guangdong
Fozhao New Light
Sources 50,077,000.00 50,077,000.00
Technology Co.,
Ltd.
Guangdong
200,000,000.00 200,000,000.00
Fozhao Leasing
160
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Co., Ltd.
Foshan Lighting
Lamps &
15,000,000.00 15,000,000.00
Components Co.,
Ltd.
Suzhou Mont
24,360,000.00 24,360,000.00 24,360,000.00
Lighting Co., Ltd.
Total 441,949,939.76 441,949,939.76 24,360,000.00
(2) Investment to joint ventures and associated enterprises
Unit: RMB
Increase/decrease in Reporting Period
Investme Closing
Adjustme
nt profit Withdraw balance
Additiona nt of Declarati
Opening Negative and loss Other n Closing of
Investee l other on of cash
balance investmen recognize equity impairme Others balance impairme
investmen comprehe dividends
t d under changes nt nt
t nsive or profits
the equity provision provision
income
method
I. Joint ventures
II. Associated enterprises
Qinghai
Salt Lake
Fozhao
382,637.5 -19,640.1 362,997.4
Lanke
2 2 0
Lithium
Industry
Co., Ltd.
382,637.5 -19,640.1 362,997.4
Subtotal
2 2 0
382,637.5 -19,640.1 362,997.4
Total
2 2 0
(3) Other notes
Naught
4. Revenue and Cost of Sales
Unit: RMB
161
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 1,734,702,749.77 1,312,995,991.44 1,459,454,200.77 1,136,562,737.09
Other operations 47,754,466.37 42,711,518.50 90,145,253.61 76,755,687.39
Total 1,782,457,216.14 1,355,707,509.94 1,549,599,454.38 1,213,318,424.48
5. Investment income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
-19,640.12 -1,208.40
accounted by equity method
Investment income received from financial
assets measured by fair value and the
870.00
changes be included in the current profits
and losses during holding period
Investment income received from disposal of
financial assets measured by fair value and
261,818.10 640,080.26
the changes be included in the current profits
and losses during holding period
Investment income received from holding of
10,950,922.50 3,449,696.24
available-for-sale financial assets
Investment income received from disposal of
17,063,266.56
available-for-sale financial assets
Gain/loss on entrusting others with
2,659,136.99
investments or asset management
Others -131,489.70 -443,538.84
Total 13,720,747.77 20,709,165.82
6. Other
Naught
XVIII. Supplementary materials
1. Items and amounts of extraordinary gains and losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
162
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Gains/losses on the disposal of non-current
-202,838.28
assets
Tax rebates, reductions or exemptions due to
approval beyond authority or the lack of 77,499.96
official approval documents
Gain/loss on entrusting others with
2,659,136.99
investments or asset management
Gain/loss from change of fair value of
transactional assets and liabilities, and
investment gains from disposal of
transactional financial assets and liabilities 630,328.38
and available-for-sale financial assets, other
than valid hedging related to the Company’s
common businesses
Other non-operating income and expenses
-3,216,702.04
other than the above
Project confirmed with the definition of
0.00
non-recurring gains and losses and losses
Less: Income tax effects 190,543.23
Minority interests effects -531,837.26
Total 288,719.04 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Not applicable
2. Return on equity and earnings per share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
3.94% 0.1627 0.1627
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
3.94% 0.1624 0.1624
deduction of non-recurring profit
and loss
163
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
3. Differences between accounting data under domestic and overseas accounting standards
(1) Differences of net profit and net assets disclosed in financial reports prepared under international and
Chinese accounting standards
□ Applicable √ Not applicable
(2) Differences of net profit and net assets disclosed in financial reports prepared under overseas and
Chinese accounting standards
□ Applicable √ Not applicable
(3) Explain reasons for the differences between accounting data under domestic and overseas accounting
standards, for audit data adjusting differences had been foreign audited, should indicate the name of the
foreign institutions
□ Applicable √ Not applicable
4. Other
Naught
164
Foshan Electrical and Lighting Co., Ltd. Semi-annual Report 2016
Section X Documents Available for Reference
Investors and relevant departments may refer to the following materials placed in the Board
Secretariat in the office building of the Company:
1. Financial statements signed and sealed by the legal representative, the accounting head for the
Report and the manager of the finance department;
2. All originals of the Company’s documents and announcements disclosed on China Securities
Journal, Securities Times, and Ta Kung Pao in the Reporting Period;
The Board of Directors
Foshan Electrical and Lighting Co., Ltd
23 August 2016
165
