Foshan Electrical and Lighting Co., Ltd.
The semi-annual financial report 2018
1
Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?
□Yes √ No
They are unaudited by such an auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 June 2018
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 914,968,599.68 570,184,208.96
Settlement reserve
Interbank loans granted
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 67,325,195.40 68,368,192.41
Accounts receivable 994,690,386.07 756,291,432.56
Prepayments 30,415,238.48 33,095,313.35
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Interest receivable 1,589,090.91 12,428,451.86
Dividends receivable
Other receivables 37,100,965.10 21,215,215.15
Financial assets purchased under
resale agreements
Inventories 718,166,451.66 746,466,889.87
Assets classified as held for sale
Current portion of non-current assets
Other current assets 348,511,668.85 1,006,062,102.56
Total current assets 3,112,767,596.15 3,214,111,806.72
Non-current assets:
2
Loans and advances to customers
Available-for-sale financial assets 1,010,613,407.54 1,390,581,536.60
Held-to-maturity investments
Long-term receivables
Long-term equity investments 176,473,300.95 179,414,105.14
Investment property
Fixed assets 511,806,666.21 483,520,866.64
Construction in progress 189,368,112.34 162,814,991.68
Engineering materials
Proceeds from disposal of fixed
assets
Productive living assets
Oil and gas assets
Intangible assets 153,387,711.51 155,544,720.36
R&D expense
Goodwill
Long-term prepaid expense 7,405,224.79 9,088,933.56
Deferred income tax assets 34,933,025.45 37,675,828.79
Other non-current assets 42,106,140.00 43,059,034.80
Total non-current assets 2,126,093,588.79 2,461,700,017.57
Total assets 5,238,861,184.94 5,675,811,824.29
Current liabilities:
Short-term borrowings
Borrowings from central bank
Customer deposits and deposits from
banks and other financial institutions
Interbank loans obtained
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 2,652,485.00
Accounts payable 679,471,875.75 539,303,554.54
Advances from customers 39,197,246.65 48,706,778.49
Financial assets sold under
repurchase agreements
Handling charges and commissions
payable
Payroll payable 63,799,759.73 81,948,630.59
Taxes payable 46,542,385.81 27,350,670.40
Interest payable
Dividends payable
Other payables 35,648,829.55 40,548,489.03
Reinsurance payables
3
Insurance contract reserve
Payables for acting trading of
securities
Payables for underwriting of
securities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 867,312,582.49 737,858,123.05
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income 11,780,830.53 11,858,330.49
Deferred income tax liabilities 69,465,031.60 126,460,250.96
Other non-current liabilities
Total non-current liabilities 81,245,862.13 138,318,581.45
Total liabilities 948,558,444.62 876,176,704.50
Owners’ equity:
Share capital 1,399,346,154.00 1,272,132,868.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 158,608,173.07 285,821,459.07
Less: Treasury shares
Other comprehensive income 393,631,982.39 716,607,333.78
Specific reserve
Surplus reserves 772,953,002.36 772,953,002.36
General reserve
Retained earnings 1,542,346,538.43 1,731,600,796.18
Total equity attributable to owners of
4,266,885,850.25 4,779,115,459.39
the Company as the parent
Non-controlling interests 23,416,890.07 20,519,660.40
Total owners’ equity 4,290,302,740.32 4,799,635,119.79
Total liabilities and owners’ equity 5,238,861,184.94 5,675,811,824.29
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
4
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2018 31 December 2017
Current assets:
Monetary assets 624,071,920.48 502,169,100.40
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 66,615,195.40 67,268,192.41
Accounts receivable 972,172,168.34 747,430,159.61
Prepayments 66,845,395.68 70,580,941.09
Interest receivable 1,589,090.91 9,744,035.20
Dividends receivable
Other receivables 72,164,535.91 42,174,877.89
Inventories 646,102,715.85 670,527,529.71
Assets classified as held for sale
Current portion of non-current assets
Other current assets 339,075,203.39 777,495,203.31
Total current assets 2,788,636,225.96 2,887,390,039.62
Non-current assets:
Available-for-sale financial assets 1,010,613,407.54 1,390,581,536.60
Held-to-maturity investments
Long-term receivables
Long-term equity investments 660,266,403.21 663,207,207.40
Investment property
Fixed assets 425,385,486.39 404,667,257.11
Construction in progress 187,700,809.13 161,024,975.28
Engineering materials
Proceeds from disposal of fixed
assets
Productive living assets
Oil and gas assets
Intangible assets 109,868,785.34 112,251,734.86
R&D expense
Goodwill
Long-term prepaid expense 6,193,662.18 8,209,699.77
Deferred income tax assets 32,668,456.01 32,985,075.62
Other non-current assets 42,106,140.00 42,661,573.80
Total non-current assets 2,474,803,149.80 2,815,589,060.44
Total assets 5,263,439,375.76 5,702,979,100.06
Current liabilities:
Short-term borrowings
5
Financial liabilities at fair value
through profit or loss
Derivative financial liabilities
Notes payable 2,652,485.00
Accounts payable 877,507,812.49 719,912,246.75
Advances from customers 37,809,995.34 47,306,971.94
Payroll payable 43,953,007.55 60,345,714.81
Taxes payable 35,237,842.58 13,294,037.24
Interest payable
Dividends payable
Other payables 99,671,341.22 96,824,757.90
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,096,832,484.18 937,683,728.64
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Specific payables
Provisions
Deferred income 11,548,330.26 11,548,330.26
Deferred income tax liabilities 69,465,031.60 126,460,250.96
Other non-current liabilities
Total non-current liabilities 81,013,361.86 138,008,581.22
Total liabilities 1,177,845,846.04 1,075,692,309.86
Owners’ equity:
Share capital 1,399,346,154.00 1,272,132,868.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 166,211,779.15 293,425,065.15
Less: Treasury shares
Other comprehensive income 393,635,179.08 716,608,088.78
Specific reserve
Surplus reserves 772,953,002.36 772,953,002.36
Retained earnings 1,353,447,415.13 1,572,167,765.91
Total owners’ equity 4,085,593,529.72 4,627,286,790.20
6
Total liabilities and owners’ equity 5,263,439,375.76 5,702,979,100.06
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
Item H1 2018 H1 2017
1. Revenue 2,064,779,289.99 2,023,925,582.84
Including: Operating revenue 2,064,779,289.99 2,023,925,582.84
Interest income
Premium income
Handling charge and commission
income
2. Operating costs and expenses 1,812,566,821.34 1,764,705,009.46
Including: Cost of sales 1,579,291,867.89 1,546,931,779.85
Interest expense
Handling charge and commission
expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 21,962,518.24 20,386,602.33
Selling expense 103,917,010.47 81,651,993.69
Administrative expense 104,474,031.52 98,790,821.60
Finance costs -13,085,476.61 -7,115,907.36
Asset impairment loss 16,006,869.83 24,059,719.35
Add: Gain on changes in fair value (“-” for
loss)
Investment income (“-” for loss) 24,509,870.36 14,009,282.02
Including: Share of profit or loss of
179,781.56 1,543,965.79
joint ventures and associates
Foreign exchange gain (“-” for loss)
Asset disposal income (“-” for loss) -10,790.68
Other income 1,018,385.17 3,302,994.36
3. Operating profit (“-” for loss) 277,740,724.18 276,522,059.08
Add: Non-operating income 1,669,856.43 2,719,401.52
Less: Non-operating expense 191,749.42 4,758,983.01
4. Profit before taxation (“-” for loss) 279,218,831.19 274,482,477.59
Less: Income tax expense 47,044,145.70 42,597,501.35
5. Net profit (“-” for net loss) 232,174,685.49 231,884,976.24
5.1 Net profit from continuing 232,174,685.49 231,884,976.24
7
operations (“-” for net loss)
5.2 Net profit from discontinued
operations (“-” for net loss)
Net profit attributable to owners of
229,277,455.82 228,494,660.57
the Company as the parent
Net profit attributable to
2,897,229.67 3,390,315.67
non-controlling interests
6. Other comprehensive income, net of
-322,975,351.39 23,025,471.14
tax
Attributable to owners of the
-322,975,351.39 23,025,471.14
Company as the parent
6.1 Items that will not be
reclassified to profit or loss
6.1.1 Changes in net liabilities or
assets caused by remeasurements on
defined benefit pension schemes
6.1.2 Share of other
comprehensive income of investees that
will not be reclassified to profit or loss
under equity method
6.2 Items that may subsequently be
-322,975,351.39 23,025,471.14
reclassified to profit or loss
6.2.1 Share of other
comprehensive income of investees that
will be reclassified to profit or loss under
equity method
6.2.2 Gain/Loss on changes in fair
-322,972,909.70 23,025,471.14
value of available-for-sale financial assets
6.2.3 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.4 Effective gain/loss on cash
flow hedges
6.2.5 Differences arising from
translation of foreign
-2,441.69
currency-denominated financial
statements
6.2.6 Other
Attributable to non-controlling
interests
7. Total comprehensive income -90,800,665.90 254,910,447.38
Attributable to owners of the
-93,697,895.57 251,520,131.71
Company as the parent
8
Attributable to non-controlling
2,897,229.67 3,390,315.67
interests
8. Earnings per share
8.1 Basic earnings per share 0.1638 0.1633
8.2 Diluted earnings per share 0.1638 0.1633
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquirees
before the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Operating revenue 2,004,288,444.76 1,980,196,404.29
Less: Cost of sales 1,587,394,320.53 1,549,957,656.10
Taxes and surtaxes 17,214,406.11 14,028,299.06
Selling expense 91,117,192.72 74,062,826.39
Administrative expense 96,241,158.47 98,398,538.37
Finance costs -12,655,059.12 -4,474,253.64
Asset impairment loss 15,224,655.05 23,053,208.55
Add: Gain on changes in fair value
(“-” for loss)
Investment income (“-” for loss) 21,037,840.32 12,903,476.48
Including: Share of profit or loss
179,781.56 1,543,965.79
of joint ventures and associates
Asset disposal income (“-” for loss)
Other income 561,343.06 3,285,240.00
2. Operating profit (“-” for loss) 231,350,954.38 241,358,845.94
Add: Non-operating income 1,572,451.59 2,461,593.41
Less: Non-operating expense 164,104.09 2,041,377.50
3. Profit before taxation (“-” for loss) 232,759,301.88 241,779,061.85
Less: Income tax expense 32,947,939.09 34,045,999.98
4. Net profit (“-” for net loss) 199,811,362.79 207,733,061.87
4.1 Net profit from continuing
199,811,362.79 207,733,061.87
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-322,972,909.70 23,025,471.14
tax
5.1 Items that will not be reclassified
to profit or loss
5.1.1 Changes in net liabilities or
assets caused by remeasurements on
9
defined benefit pension schemes
5.1.2 Share of other
comprehensive income of investees
that will not be reclassified into profit
or loss under equity method
5.2 Items that may subsequently be
-322,972,909.70 23,025,471.14
reclassified to profit or loss
5.2.1 Share of other
comprehensive income of investees
that will be reclassified into profit or
loss under equity method
5.2.2 Gain/Loss on changes in fair
value of available-for-sale financial -322,972,909.70 23,025,471.14
assets
5.2.3 Gain/Loss arising from
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.4 Effective gain/loss on cash
flow hedges
5.2.5 Differences arising from
translation of foreign
currency-denominated financial
statements
5.2.6 Other
6. Total comprehensive income -123,161,546.91 230,758,533.01
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,769,237,743.67 1,754,303,637.97
and rendering of services
Net increase in customer deposits
and deposits from banks and other
financial institutions
Net increase in loans from central
bank
Net increase in loans from other
financial institutions
10
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Net increase in proceeds from
disposal of financial assets at fair value
through profit or loss
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Tax rebates 47,287,499.42 42,499,505.18
Cash generated from other operating
33,545,832.35 28,893,716.10
activities
Subtotal of cash generated from
1,850,071,075.44 1,825,696,859.25
operating activities
Payments for commodities and
1,131,421,056.92 1,114,835,724.72
services
Net increase in loans and advances
to customers
Net increase in deposits in central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 339,556,840.55 371,942,160.26
Taxes paid 137,020,623.78 262,092,182.25
Cash used in other operating
97,348,775.81 107,889,979.24
activities
Subtotal of cash used in operating
1,705,347,297.06 1,856,760,046.47
activities
Net cash generated from/used in
144,723,778.38 -31,063,187.22
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 660,000,000.00
Investment income 34,539,472.29 15,011,705.23
Net proceeds from disposal of fixed
1,626,000.00
assets, intangible assets and other
11
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
694,539,472.29 16,637,705.23
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 90,700,439.05 108,664,080.94
long-lived assets
Payments for investments 20,000,000.00
Net increase in pledged loans
granted
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing activities 3,304,699.80
Subtotal of cash used in investing
94,005,138.85 128,664,080.94
activities
Net cash generated from/used in
600,534,333.44 -112,026,375.71
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Payments for interest and dividends 405,163,764.00 522,068,416.83
Including: Dividends paid by
5,660,290.78
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
405,163,764.00 522,068,416.83
activities
Net cash generated from/used in
-405,163,764.00 -522,068,416.83
financing activities
4. Effect of foreign exchange rate
1,385,343.10 912,356.51
changes on cash and cash equivalents
5. Net increase in cash and cash 341,479,690.92 -664,245,623.25
12
equivalents
Add: Cash and cash equivalents,
570,184,208.96 1,479,283,642.54
beginning of the period
6. Cash and cash equivalents, end of
911,663,899.88 815,038,019.29
the period
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2018 H1 2017
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,712,676,401.03 1,700,716,001.72
and rendering of services
Tax rebates 47,263,864.23 42,499,505.18
Cash generated from other operating
26,388,452.49 24,406,290.15
activities
Subtotal of cash generated from
1,786,328,717.75 1,767,621,797.05
operating activities
Payments for commodities and
1,263,659,844.11 1,363,028,963.41
services
Cash paid to and for employees 209,185,383.63 167,453,782.97
Taxes paid 87,060,201.23 200,061,046.37
Cash used in other operating
85,851,338.88 101,737,482.16
activities
Subtotal of cash used in operating
1,645,756,767.85 1,832,281,274.91
activities
Net cash generated from/used in
140,571,949.90 -64,659,477.86
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 440,000,000.00 35,000,000.00
Investment income 30,667,499.69 28,724,845.24
Net proceeds from disposal of fixed
assets, intangible assets and other 1,580,000.00
long-lived assets
Net proceeds from disposal of
subsidiaries or other business units
Cash generated from other investing
activities
Subtotal of cash generated from
470,667,499.69 65,304,845.24
investing activities
Payments for acquisition of fixed
assets, intangible assets and other 85,557,155.41 99,538,768.93
long-lived assets
13
Payments for investments
Net payments for acquisition of
subsidiaries and other business units
Cash used in other investing activities 3,304,699.80
Subtotal of cash used in investing
88,861,855.21 99,538,768.93
activities
Net cash generated from/used in
381,805,644.48 -34,233,923.69
investing activities
3. Cash flows from financing activities:
Capital contributions received
Increase in borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Payments for interest and dividends 405,163,764.00 516,408,126.05
Cash used in other financing
activities
Sub-total of cash used in financing
405,163,764.00 516,408,126.05
activities
Net cash generated from/used in
-405,163,764.00 -516,408,126.05
financing activities
4. Effect of foreign exchange rate
1,384,289.90 912,356.51
changes on cash and cash equivalents
5. Net increase in cash and cash
118,598,120.28 -614,389,171.09
equivalents
Add: Cash and cash equivalents,
502,169,100.40 1,235,417,964.88
beginning of the period
6. Cash and cash equivalents, end of
620,767,220.68 621,028,793.79
the period
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
7. Consolidated Statements of Changes in Owners’ Equity
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent Non-co
Other equity Other Retaine ntrollin Total
Item Capital Less: Surplus
Share instruments compre Specific General d g owners’
reserve Treasur reserve
capital Prefer Perpe hensive reserve reserve earning interest equity
Other s y shares s
red tual income s s
14
shares bonds
1,272, 1,731,6 4,799,6
1. Balances as of 285,821 716,607 772,953 20,519,
132,86 00,796. 35,119.
end of prior year ,459.07 ,333.78 ,002.36 660.40
8.00 18 79
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business
combinations
under common
control
Other
adjustments
2. Balances as of 1,272, 1,731,6 4,799,6
285,821 716,607 772,953 20,519,
beginning of the 132,86 00,796. 35,119.
,459.07 ,333.78 ,002.36 660.40
year 8.00 18 79
3. Increase/
127,21 -127,21 -322,97 -189,25 -509,33
decrease in the 2,897,2
3,286. 3,286.0 5,351.3 4,257.7 2,379.4
period (“-” for 29.67
00 0 9 5 7
decrease)
3.1 Total -322,97
229,277 2,897,2 -90,800,
comprehensive 5,351.3
,455.82 29.67 665.90
income 9
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
Share-based
payments included
in owners’ equity
15
3.2.4 Other
-418,53 -418,53
3.3 Profit
1,713.5 1,713.5
distribution
7 7
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-418,53 -418,53
Appropriation to
1,713.5 1,713.5
owners (or
7 7
shareholders)
3.3.4 Other
3.4
127,21 -127,21
Carryforwards
3,286. 3,286.0
within owners’
00 0
equity
3.4.1 Increase
127,21 -127,21
in capital (or share
3,286. 3,286.0
capital) from
00 0
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
1,399, 1,542,3 4,290,3
4. Balances as of 158,608 393,631 772,953 23,416,
346,15 46,538. 02,740.
end of the period ,173.07 ,982.39 ,002.36 890.07
4.00 43 32
31 December 2017
Unit: RMB
16
H1 2017
Equity attributable to owners of the Company as the parent
Non-co
Other equity
Other Retaine ntrollin Total
Item instruments Capital Less: Surplus
Share compre Specific General d g owners’
Prefer Perpe reserve Treasur reserve
capital hensive reserve reserve earning interest equity
red tual Other s y shares s
income s s
shares bonds
1,272, 1,133,9 1,564,6 5,005,4
1. Balances as of 285,821 733,924 15,008,
132,86 71,372. 15,925. 74,643.
end of prior year ,459.07 ,951.81 066.44
8.00 25 99 56
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Adjustments for
business
combinations
under common
control
Other
adjustments
2. Balances as of 1,272, 1,133,9 1,564,6 5,005,4
285,821 733,924 15,008,
beginning of the 132,86 71,372. 15,925. 74,643.
,459.07 ,951.81 066.44
year 8.00 25 99 56
3. Increase/
-417,36 -205,83
decrease in the 39,028, 166,984 5,511,5
4,038.4 9,523.7
period (“-” for 050.55 ,870.19 93.96
7 7
decrease)
3.1 Total -417,36
740,308 5,511,5 328,456
comprehensive 4,038.4
,725.30 93.96 ,280.79
income 7
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary shares
increased by
shareholders
3.2.2 Capital
increased by
17
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-573,32 -534,29
3.3 Profit 39,028,
3,855.1 5,804.5
distribution 050.55
1 6
3.3.1
39,028, -39,028,
Appropriation to
050.55 050.55
surplus reserves
3.3.2
Appropriation to
general reserve
3.3.3
-534,29 -534,29
Appropriation to
5,804.5 5,804.5
owners (or
6 6
shareholders)
3.3.4 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
18
3.6 Other
1,272, 1,731,6 4,799,6
4. Balances as of 285,821 716,607 772,953 20,519,
132,86 00,796. 35,119.
end of the period ,459.07 ,333.78 ,002.36 660.40
8.00 18 79
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2018
Unit: RMB
H1 2018
Other equity instruments Other Retaine
Less: Total
Item Share Perpetu Capital compreh Specific Surplus d
Preferre Treasury owners’
capital al Other reserves ensive reserve reserves earning
d shares shares equity
bonds income s
1,272,13 1,572,1
1. Balances as of 293,425,0 716,608,0 772,953,0 4,627,286
2,868.0 67,765.
end of prior year 65.15 88.78 02.36 ,790.20
0 91
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of 1,272,13 1,572,1
293,425,0 716,608,0 772,953,0 4,627,286
beginning of the 2,868.0 67,765.
65.15 88.78 02.36 ,790.20
year 0 91
3. Increase/
-218,72
decrease in the 127,213, -127,213, -322,972, -541,693,
0,350.7
period (“-” for 286.00 286.00 909.70 260.48
8
decrease)
3.1 Total
-322,972, 199,811 -123,161,
comprehensive
909.70 ,362.79 546.91
income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary shares
increased by
shareholders
19
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-418,53
3.3 Profit -418,531,
1,713.5
distribution 713.57
7
3.3.1
Appropriation to
surplus reserves
3.3.2
-418,53
Appropriation to -418,531,
1,713.5
owners (or 713.57
7
shareholders)
3.3.3 Other
3.4
Carryforwards 127,213, -127,213,
within owners’ 286.00 286.00
equity
3.4.1 Increase
in capital (or share 127,213, -127,213,
capital) from 286.00 286.00
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
20
1,399,3 1,353,4
4. Balances as of 166,211,7 393,635,1 772,953,0 4,085,59
46,154. 47,415.
end of the period 79.15 79.08 02.36 3,529.72
00 13
31 December 2017
Unit: RMB
H1 2017
Other equity instruments Other Retaine
Less: Total
Item Share Perpetu Capital compreh Specific Surplus d
Preferre Treasury owners’
capital al Other reserves ensive reserve reserves earning
d shares shares equity
bonds income s
1,272,13 1,448,9
1. Balances as of 293,425,0 1,133,971 733,924,9 4,882,36
2,868.0 07,867.
end of prior year 65.15 ,372.25 51.81 2,124.94
0 73
Add: Adjustments
for changed
accounting
policies
Adjustments for
corrections of
previous errors
Other
adjustments
2. Balances as of 1,272,13 1,448,9
293,425,0 1,133,971 733,924,9 4,882,36
beginning of the 2,868.0 07,867.
65.15 ,372.25 51.81 2,124.94
year 0 73
3. Increase/
decrease in the -417,363, 39,028,05 123,259 -255,075,
period (“-” for 283.47 0.55 ,898.18 334.74
decrease)
3.1 Total
-417,363, 696,583 279,220,4
comprehensive
283.47 ,753.29 69.82
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
21
3.2.3
Share-based
payments included
in owners’ equity
3.2.4 Other
-573,32
3.3 Profit 39,028,05 -534,295,
3,855.1
distribution 0.55 804.56
1
3.3.1
39,028,05 -39,028,
Appropriation to
0.55 050.55
surplus reserves
3.3.2
-534,29
Appropriation to -534,295,
5,804.5
owners (or 804.56
6
shareholders)
3.3.3 Other
3.4
Carryforwards
within owners’
equity
3.4.1 Increase
in capital (or share
capital) from
capital reserves
3.4.2 Increase
in capital (or share
capital) from
surplus reserves
3.4.3 Surplus
reserves used to
make up losses
3.4.4 Other
3.5 Specific
reserve
3.5.1
Withdrawn for the
period
3.5.2 Used
during the period
3.6 Other
1,272,13 1,572,1
4. Balances as of 293,425,0 716,608,0 772,953,0 4,627,286
2,868.0 67,765.
end of the period 65.15 88.78 02.36 ,790.20
0 91
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
22
III Company Profile
Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited company
jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick Field, and
Foshan Poyang Printing Industrial Co. on 20 October 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 23 November 1993. The
Company was approved to issue 50,000,000 B shares on 23 July 1995. And, as approved to change into a
foreign-invested stock limited company on 26 August 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 11 December 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 Annual General Meeting of 2006, 2007, 2008, 2014,
and 2017 the Company implemented the plan of capitalization of capital reserve, after the transfer, the
registered capital of the Company has increased to RMB1,399,346,154.00
Credibility code of the Company: 91440000190352575W.
Legal representative: Mr. He Yong
Address: No. 64, Fenjiang North Road, Foshan, Guangdong Province
Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products
and electro technical products.
The business term of the Company is long-term, which was calculated from the date of issuance of License of
Business Corporation.
The Financial Report was approved and authorized for issue by the Board of Directors on 28 August 2018.
(II). Scope of the Consolidated Financial Statements
The consolidation scope of the financial statement during the Reporting Period including the Company and the
10 subordinate subsidiaries such as Foshan Lighting Chanchang Optoelectronics Co., Ltd.( referred to as
“Chanchang Company”), Foshan Chansheng Electronic Ballast Co., Ltd. ( referred to as “Chansheng Company”),
Foshan Taimei Times Lamps and Lanterns Co., Ltd. ( referred to as “Taimei Company”), Nanjing Fozhao Lighting
Components Co., Ltd. ( referred to as “Nanjing Fozhao”), FSL (Xinxiang) Lighting Co., Ltd. ( referred to as “Xinxiang
Company”), Foshan Electrical and Lighting New Light Source Technology Co., Ltd. ( referred to as “New Light
Source Company”), Guangdong Fozhao Leasing Co., Ltd. ( referred to as “Leasing Company”), Foshan Lighting
Lamps & Components Co., Ltd. ( referred to as “Lamps & Components Company”) and FSL Zhida Electric
Technology Co., Ltd( referred to as “Zhida Electric Technology”), and FSL Lighting GmbH (referred to as “FSL
Europe”).
For details, see relevant contents in Note VIII “Changes in the consolidation scope”, and Note IX “Equities in other
entities”
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company are based on the continuing operation, and are confirmed and
measured according to the actual transactions and events, the Accounting Standards for Business Enterprises -
23
Basic Standards, other various specific accounting standards, the application guide, the interpretation of
accounting standards for business enterprises (hereinafter referred to as the Accounting Standards for Business
Enterprises). And based on the following important accounting policies, and accounting estimations, they are
prepared according to the relevant regulations of Rules for the Information Disclosure of Companies Publicly
Issuing Securities No. 15 - General Provisions on Financial Reporting of China Securities Regulatory Commission
(Revised in 2014). Except the Cash Flow Statement prepared under the principle of cash basis, the rest of
financial statement of the Company are prepared under the principle of accrual basis.
The Company didn’t find anything like being suspicious of the ability of continuing operation within 12 months
from the end of the Reporting Period with all available information.
2. Continuation
The Company has no matters affecting the continuing operation of the Company and is expected to have the
ability to continue to operate in the next 12 months. The financial statements of the Company are prepared on
the basis of continuing operation.
V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The Company confirmed the specific accounting policies and estimations according to production and operation
features, mainly reflecting in the method of provision for accounts receivables bad debt (Note 11. Account
Receivables), pricing method of inventory (Note 12. Inventory), depreciation of fixed assets and amortization of
intangible assets (Note 16. Fixed Assets and Note 21. Intangible Assets), and recognized time point of income
(Note 28. Income), etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the Accounting Standards for Business
Enterprises, which factually and completely present the Company’s and the consolidated financial positions,
business results and cash flows, as well as other relevant information.
2. Fiscal Year
A fiscal year starts on January 1st and ends on December 31st according to the Gregorian calendar.
3. Operating Cycle
An operating cycle for the Company 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 statements of the Company, and the financial statements are listed
and presented by Renminbi.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not under the
Same Control
1. Business combinations under the same control
For the merger of enterprises under the same control, if the consideration of the merging enterprise is that it
makes payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of merger, regard the
24
share of the book value among final controller’s consolidated financial statement of the owner's equity of the
merged enterprise as the initial cost of the long-term equity investment. The difference between the initial cost
of the long-term equity investment and the payment in cash, non-cash assets transferred as well as the book
value of the debts borne by the merging party shall offset against the capital reserve. If the capital reserve is
insufficient to dilute, the retained earnings shall be adjusted.
If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger,
regard the share of the book value among final controller’s consolidated financial statement of the owner's
equity of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the
stocks issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term
equity investment and total face value of the shares issued shall offset against the capital reserve. If the capital
reserve is insufficient to dilute, the retained earnings shall be adjusted.
2. Business combinations not under the same control
The Company measured the paid assets as the consideration of business combination and liabilities happened or
undertaken by fair value. The difference between fair value and its book value shall be included into the current
losses and gains. The Company distributed combined cost on the purchasing date.
The difference of the combination cost greater than the fair value of the identifiable net assets of the acquiree
acquired is recognized as goodwill; the difference of the combination cost less than the fair value of the
identifiable net assets of the acquiree acquired is included into current losses and gains.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited
to the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely to
flow into the Company and their fair values can be measured reliably, they shall be separately recognized and
measured in light of their fair values; intangible asset whose fair value can be measured reliably shall be
separately recognized as an intangible asset and shall measured in light of its fair value; As for the liabilities other
than contingent liabilities acquired from the acquiree, if the performance of the relevant obligations is likely to
result in any out-flow of economic benefits from the Company, and their fair values can be measured reliably,
they shall be separately recognized and measured in light of their fair values; As for the contingent liabilities of
the acquiree, if their fair values can be measured reliably, they shall separately recognized as liabilities and shall
be measured in light of their fair values.
6. Methods for Preparing Consolidated Financial Statements
1. Principle of determining the scope of consolidation
The scope of consolidation of the consolidated financial statements of the Company is determined on the basis
of control. Control means that the investors has the right to invest in the investee and enjoy a variable return
through the participation of the relevant activities of the investee, and has the ability to use the power over the
investee to affect the amount of its return. The Company includes the subsidiaries with actual right of control
(including separate entity controlled by the Parent Company) into consolidated financial statements.
2. Principles, procedures and methods for the preparation of consolidated statements
(1) Principles, procedures and methods for the preparation of consolidated statements
All subsidiaries included into the scope of consolidated financial statements adopted same accounting policies
and fiscal year with the Company. If the accounting policies and fiscal year of the subsidiaries are different to the
Company’s, necessary adjustment should be made in accordance with the Company’s accounting policies and
fiscal year when consolidated financial statements are prepared.
The consolidated financial statements are based on the financial statements of the Parent Company and
subsidiaries included into the consolidated scope. The consolidated financial statements are prepared by the
Company who makes adjustment to long-term equity investment to subsidiaries by equity method according to
25
other relevant materials after the offset of the share held by the Parent Company in the equity capital investment
of the Parent Company and owner’s equity of subsidiaries and the significant transactions and intrabranch within
the Company.
For the balance formed because the current loss shared by the minority shareholders of the subsidiary is more
than the share enjoyed by the minority shareholders of the subsidiary in the initial shareholders’ equity, if the
Articles of Corporation or Agreement didn’t stipulate that minority shareholders should be responsible for it,
then the balance need to offset the shareholders’ equity of the Company; if the Articles of Corporation or
Agreement stipulated that minority shareholders should be responsible for it, then the balance need to offset
the minority shareholders’ equity.
(2) Treatment method of increasing or disposing subsidiaries during the Reporting Period
During the Reporting Period, if the subsidiaries were added due to Business combinations under the same
control, then initial book balance of consolidated balance sheet need to be adjusted; the income, expenses, and
profits of subsidiaries from the combination’s period-begin to the end of the reporting period need to be
included into consolidated income statement; the cash flow of subsidiaries from the combination’s period-begin
to the end of the reporting period need to be included into consolidated cash flow statement. if the subsidiaries
were added due to Business combinations not under the same control, then initial book balance of consolidated
balance sheet doesn’t need to be adjusted; the income, expenses, and profits of subsidiaries from the purchasing
date to the end of the reporting period need to be included into consolidated income statement; the cash flow of
subsidiaries from purchasing date to the end of the reporting period need to be included into consolidated cash
flow statement.
During the Reporting Period, if the Company disposed the subsidiaries, then the income, expenses, and profits of
subsidiaries from period-begin to the disposal date need to be included into consolidated income statement; the
cash flow of subsidiaries from period-begin to the disposal date need to be included into consolidated cash flow
statement.
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.
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
26
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 to 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
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.
27
(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.
(3)Available-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: the
transactional financial liabilities; and 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
28
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 two 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.
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.
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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
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.
7. Recognition method of fair value
Fair value refers to the price that market participants got from the sale of an asset or the price paid for the
transfer of a liability among the orderly transactions happened on the measurement date. For a financial
instrument with active market, its fair value shall be determined by the quotes in the active market. For a
financial instrument with no active market, its fair value shall be determined by adopting value appraisal
techniques. When the value is appraised, by adopting the value appraisal techniques applying to the current
situations with the support of enough available data and other information, the Company chooses the same
input value with features of assets and liabilities considered by market participants in the transactions of relevant
assets and liabilities, and gives priority in use of observable input value as far as possible. Unobservable input
value shall be used when the relevant observable input value cannot be obtained or the obtainment is not
practical.
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 Top five accounts receivable with the largest balances
with a significant single amount or accounts accounting for over 10% of the total
balance of receivables.
Making separate bad-debt provisions for accounts For an account receivable with a significant single
receivable with a significant single amount amount, the impairment test shall be carried out on it
separately. If there is any objective evidence of
impairment, the impairment loss is recognized and the
bad-debt provision is made according to the difference
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between the present value of the account receivable’s
future cash flows and its carrying amount. As for
non-significant accounts receivable for which separate
impairment provisions are not necessary as proved by
the impairment test, as well as other significant
accounts receivable that have not been impaired as
proved by a separate impairment test, they shall be
grouped according to their credit risks and account
ages, and then the impairment test is carried out on a
group basis.
(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 Aging analysis method
Internal transaction group Other methods
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion of account Withdrawal proportion of other
Aging
receivables account receivables
Within 1 year (including 1 year) 3.00% 3.00%
1 to 2 years 10.00% 10.00%
2 to 3 years 30.00% 30.00%
3 to 4 years 50.00% 50.00%
4 to 5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
In the groups, those adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
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 thee return ability
Withdraw the bad debt provision according to the
Withdrawal method for bad debt provision difference of which the future cash flow lower than the
book value.
12. Inventory
Is the Company subject to any disclosure requirements for special industries?
No.
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1. Classification of inventory
Inventory refers to finished products, goods in process, and materials consumed in the production process or the
provision of labor services held by the Company for sale in daily activities, mainly including raw materials, goods
in process, materials in transit, finished products, commodities, turnover materials, and commissioned
processing materials. Turnover materials include low-value consumables and packaging.
2. Pricing method of inventory sent out
The inventory is valued at actual cost when acquired, and inventory costs include procurement costs, processing
costs and other costs. The weighted average method is used when receiving or sending out inventory.
3. Basis for determining the net realizable value of inventory and the method of withdrawal for inventory
impairment
Net realizable value refers to the estimated selling price of the inventory minus the estimated cost to be incurred
at the time of completion, the estimated selling expenses and the relevant taxes and fees in daily activities. In
determining the net realizable value of inventory, the conclusive evidence obtained is used as the basis and the
purpose of holding the inventory and the impact of the events after the balance sheet date should be taken into
account.
For finished products, the materials used for sale and other goods used for direct sale, the net realizable value is
determined by the estimated selling price of the inventory minus the estimated selling expenses and related
taxes in the process of normal production and operation.
For materials inventory needs to be processed, the net realizable value is determined by the estimated selling
price of the finished products minus the estimated cost to be incurred, the estimated sales costs and the relevant
taxes and fees in the process of normal production and operation.
4. Inventory system
The inventory system of the Company is perpetual inventory.
5. Amortization method of turnover materials
Low-value consumables are amortized in one-off method.
The packaging is amortized in one-off method.
13. Assets Held for Sale
1. Assets held for sale
When a company relies mainly on selling (including the exchanges of non-monetary assets with commercial
substance) instead of continuing to use a non-current asset or disposal group to recover its book value, the
non-current asset or disposal group is classified as asset held for sale. The non-current assets mentioned above
do not include investment properties that are subsequently measured by the fair value model, biological assets
measured by fair value less net selling costs, assets formed from employee remuneration, financial assets,
deferred income tax assets and rights generated from insurance contracts.
Disposal group refers to a group of assets that are disposed of together as a whole through sale or other means
in a transaction, and the liabilities directly related to these assets transferred in the transaction. In certain
circumstances, the disposal group includes goodwill obtained in business combination.
The Company recognizes non-current assets or disposal groups that meet both of the following conditions as
held for sale: ① Assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions; ② Sales are highly likely to occur, that is,
the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and
the sale is expected to will be completed within one year, and the sale has been approved if relevant regulations
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require relevant authority or regulatory authority of the Company to approve it.
Non-current assets or disposal groups specifically obtained by the Company for resale will be classified by the
Company as a held-for-sale category on the acquisition date when they meet the stipulated conditions of
“expected to be sold within one year” on the acquisition date, and may well satisfy the category of held-for-sale
within a short time (which is usually 3 months).
If one of the following circumstances cannot be controlled by the Company and the transaction between
non-related parties fails to be completed within one year, and there is sufficient evidence that the Company still
promises to sell the non-current assets or disposal groups, the Company should continue to classify the
non-current assets or disposal groups as held-for-sale: ①The purchaser or other party unexpectedly sets
conditions that lead to extension of the sale. The Company has already acted on these conditions in a timely
manner and it is expected to be able to successfully deal with the conditions that led to the extension of the sale
within one year after the conditions were set. ②Due to unusual circumstances, the non-current assets or
disposal groups held for sale failed to be sold within one year. In the first year, the Company has taken necessary
measures for these new conditions and the assets or disposal groups meet the conditions of held-for-sale again.
If the Company loses control of a subsidiary due to the sale of investments to its subsidiaries, whether or not the
Company retains part of the equity investment after the sale, when the proposed sale of the investment to the
subsidiary meets the conditions of held- for-sale, the investment to the subsidiary will be classified as
held-for-sale in the individual financial statement of the parent company, and all the assets and liabilities of the
subsidiary will be classified as held-for-sale in the consolidated financial statement.
When the company initially measures or re-measures non-current assets or disposal groups held for sale on the
balance sheet date, if the book value is higher than the fair value minus the net amount of the sale costs, the
book value will be written down to the net amount of fair value minus the sale costs, and the amount written
down will be recognized as impairment loss of assets and included in the current profit and loss, and provision
for impairment of held-for-sale assets will be made. For the confirmed amount of impairment loss of assets of
the disposal groups held for sale, the book value of goodwill of the disposal groups will be offset first, and then
the book value of various non-current assets in the disposal groups will be offset according to the proportions.
If the net amount that the fair value of the non-current assets or disposal groups held for sale on the follow-up
balance sheet date minus the sale costs increases, the previous written-down amount will be restored, and
reversed to the asset impairment loss confirmed after the assets being classified as held-for-sale. The reversed
amount will be included in the current profit or loss. The book value of goodwill that has been deducted cannot
be reversed.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses of liabilities in the disposal group held for sale will be confirmed as
before.
When a non-current asset or disposal group ceases be classified as held-for-sale or a non-current asset is
removed out from the held-for-sale disposal group due to failure in meeting the classification conditions for the
category of held-for-sale, it will be measured by one of the followings whichever is lower:
① The book value before being classified as held for sale will be adjusted according to the depreciation,
amortization or impairment that would have been recognized under the assumption that it was not classified as
held for sale;
② The recoverable amount.
2. Termination of operation
Termination of operation refers to a separately identifiable constituent part that satisfies one of the following
conditions that has been disposed of by the Company or is classified as held-for-sale:
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(1) This constituent part represents an independent main business or a separate main business area.
(2) This constituent part is part of an associated plan that is intended to be disposed of in an independent main
business or a separate major business area.
(3) This constituent part is a subsidiary that is specifically acquired for resale.
3. Presentation
In the balance sheet, the Company distinguishes the non-current assets held for sale or the assets in the disposal
group held for sale separately from other assets, and distinguish the liabilities in the disposal group held for sale
separately from other liabilities. The non-current assets held for sale or the assets in the disposal group held for
sale are not be offset against the liabilities in the disposal group held for sale. They are presented as current
assets and current liabilities respectively.
The Company lists profit and loss from continuing operations and profit and loss from operating profits in the
income statement. For the termination of operations for the current period, the Company restates the
information originally presented as profit or loss of continuing operation in the current financial statements to
profit or loss of termination of the comparable accounting period. If the termination of operation no longer
meets the conditions of held-for-sale, the Company restates the information originally presented as a profit and
loss of termination in the current financial statements to profit or loss of continuing operation of the comparable
accounting period.
14. Long-term Equity Investments
Long-term equity investment refers to the Company’s long-term equity investment with control, joint control or
significant influence on the investee. The long-term equity investment of the Company which has no control,
joint control or significant influence on the investee is accounted for as financial assets available-for-sale or
financial assets at fair value and changes recognized in profit or loss for the current period. For details of
accounting policies, please refer to 10. Financial instruments in Notes V.
Joint control refers to the control that is common to an arrangement in accordance with the relevant agreement,
and the relevant activities of the arrangement must be agreed upon by the participant who has shared the
control. Significant influence refers to the Company has the power to participate in decision-making on the
financial and operating policies of the investee, but can’t control or jointly control the formulation of these
policies with other parties.
1. Investment cost recognition for long-term equity investments
(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.
34
(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 profit/loss
The long-term equity investment with joint control (except for the common operator) or significant influence on
the investee is accounted by equity method. In addition, the Company's financial statements use cost method to
calculate long-term equity investments that can control the investee.
(1) Long-term equity investment accounted by cost method
When the cost method is used for accounting, the long-term equity investment is priced at the initial investment
cost, and the cost of the long-term equity investment is adjusted according to additional investment or recovered
investment. Except the price actually paid when acquired investment or cash dividends or profits that have been
declared but not yet paid included in the consideration, current investment income is recognized by the cash
dividends or profits declared by the investee.
(2) Long-term equity investment accounted by equity method
When the equity method is used for accounting, if the initial investment cost of the long-term equity investment
is greater than the fair value of the investee’s identifiable net assets, the initial investment cost of the long-term
equity investment shall not be adjusted; if the initial investment cost is less than the fair value of the investee’s
identifiable net assets, the difference shall be recorded into the current profits and losses, and the cost of the
long-term equity investment shall be adjusted at the same time.
When the equity method is used for accounting, the investment income and other comprehensive income shall
be recognized separately according to the net profit or loss and other comprehensive income realized by the
investee, and the book value of the long-term equity investment shall be adjusted at the same time. The part
entitled shall be calculated according to the profits or cash dividends declared by the investee, and the book
value of the long-term equity investment shall be reduced accordingly. For other changes in the owner’s equity
other than the net profit or loss, other comprehensive income and profit distribution of the investee, the book
value of the long-term equity investment shall be adjusted and included in the capital reserve. When the share of
the net profit or loss of the investee is recognized, the net profit of the investee shall be adjusted and recognized
according to the fair value of the identifiable assets of the investee when the investment is made. If the
accounting policies and accounting periods adopted by the investee are inconsistent with the Company, the
financial statements of the investee shall be adjusted according to the accounting policies and accounting periods
of the Company and the investment income and other comprehensive income shall be recognized accordingly.
For the transactions between the Company and associates and joint ventures, if the assets made or sold don’t
constitute business, the unrealized gains and losses of the internal transactions are offset by the proportion
attributable to the Company, and the investment gains and losses are recognized accordingly. However, the loss
of unrealized internal transactions incurred by the Company and the investee attributable to the impairment loss
of the transferred assets shall not be offset. If the assets made to associates or joint ventures constitute business,
and the investor makes long-term equity investment but does not obtain the control, the fair value of the
investment shall be taken as the initial investment cost of the new long-term equity investment, and the
difference between initial investment and the book value of the investment is fully recognized in profit or loss for
the current period. If the assets sold by the Company to joint ventures or associates constitute business, the
35
difference between the consideration and the book value of the business shall be fully credited to the current
profits and losses. If the assets purchased by Company from joint ventures or associates constitute business,
conduct accounting treatment in accordance with the provisions of Accounting Standard for Business Enterprises
No. 20 - Business combination, and the profits or losses related to the transaction shall be recognized in full.
When the net loss incurred by the investee is recognized, the book value of the long-term equity investment and
other long-term equity that substantially constitute the net investment in the investee shall be written down to
zero. In addition, if the Company has an obligation to bear additional losses to the investee, the estimated
liabilities are recognized in accordance with the obligations assumed and included in the current investment
losses. If the investee has realized net profit in later period, the Company will resume the recognition of the
income share after the income share has made up the unrecognized loss share.
(3) Acquisition of minority interests
In the preparation of the consolidated financial statements, capital reserve shall be adjusted according to the
difference between the long-term equity investment increased due to the purchase of minority interests and the
share of the net assets held by the subsidiary from the date of purchase (or the date of combination) calculated
according to the proportion of the new shareholding ratio, and retained earnings shall be adjusted if the capital
reserve is insufficient to offset.
(4) Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially disposes of the long-term equity
investment in the subsidiary without the loss of control, and the difference between the disposal price and the
net assets of the subsidiary corresponding to the disposal of the long-term equity investment is included in the
shareholders’ equity. If the disposal of long-term equity investment in subsidiaries results in the loss of control
over the subsidiaries, handle in accordance with the relevant accounting policies described in 6. “Preparation
method of consolidated financial statements” in Notes V.
In other cases, the difference between the book value and the actual acquisition price shall be recorded into the
current profits and losses for the disposal of the long-term equity investment.
For long-term equity investment accounted by the equity method and residual equity after disposal still
accounted by the equity method, other comprehensive income originally included in the shareholders’ equity
shall be treated in the same basis of the investee directly disposing related assets or liabilities by corresponding
proportion. The owner’s equity recognized by the change of the owner’s equity of the investee other than the
net profit or loss, other comprehensive income and profit distribution is carried forward proportionally into the
current profits and losses.
For long-term equity investment accounted by the cost method and residual equity after disposal still accounted
by the cost method, other comprehensive income accounted by equity method or recognized by financial
instrument and accounted and recognized by measurement criteria before the acquisition of the control over the
investee is treated in the same basis of the investee directly disposing related assets or liabilities, and carried
forward proportionately into the current profits and losses. Other changes of owner’s equity in net assets of the
investee accounted and recognized by the equity method other than the net profit or loss, other comprehensive
income and profit distribution are carried forward proportionally into the current profits and losses.
3. Impairment provisions for long-term equity investments
For the relevant testing method and provision making method, see 22. Impairment of Long-term Assets in Notes
V herein.
15. Investment Real Estates
Measurement mode of investment real estates
Not applicable
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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 accounting year and unit price is higher. No fixed assets may be recognized
unless it simultaneously meets the conditions as follows: ① The economic benefits pertinent to the fixed asset
are likely to flow into the Company; and ② The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Housing and building Average method of
3—30 years 5% 31.67%-3.17%
useful life
Machinery equipments Average method of
2—10 years 5% 47.50%-9.50%
useful life
Transportation vehicle Average method of
5—10 years 5% 19.00%-9.50%
useful life
Average method of
Electronic equipment 2—8 years 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
1. Pricing of construction in progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carried
forward into fixed assets at the actual cost when reach intended usable condition. The borrowing expenses
eligible for capitalization incurred before the delivery of the construction are included in the construction cost;
after the delivery, the relevant interest expense shall be recorded into the current profits and losses.
2. Standard and time of construction in progress carrying forward into fixed assets
The Company’s construction in progress is carried forward into fixed assets when the construction completes and
reaches intended usable condition. The criteria for determining the intended usable condition shall meet one of
the following:
(1) The physical construction (including installation) of fixed assets has been completed or substantially
completed;
(2) Has been produced or run for trial, and the results indicate that the assets can run normally or can produce
stable products stably, or the results of the trial operation show that it can operate normally;
(3) The amount of the expenditure on the fixed assets constructed is little or almost no longer occurring;
(4) The fixed assets purchased have reached the design or contract requirements, or basically in line with the
37
design or contract requirements.
3. Provision for impairment of construction in progress
Please refer to Note 22: Long-term Asset Impairment under Note V for the impairment test method and
provision for impairment of construction in progress.
18. Borrowing Costs
The borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,
including interest on borrowings, amortization of discounts or premiums, ancillary expenses and exchange
differences arising from foreign currency borrowings. The borrowing costs incurred by the Company directly
attributable to the acquisition, construction or production of assets eligible for capitalization are capitalized and
included in the cost of the relevant assets. Other borrowing costs are recognized as expenses according to the
amount at the time of occurrence, and are included in the current profits and losses.
1. Principle of capitalization of borrowing costs
Borrowing costs can be capitalized when all the following conditions are met: Asset expenditure has already
occurred; borrowing costs have already occurred; construction or production activities necessary to bring the
assets to the intended useable or sellable status have already begun.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the capitalization of borrowing costs starting to the end of
capitalization, excluding the period when capitalization is suspended.
If assets that meet the conditions of capitalization are interrupted abnormally in the course of construction or
production, and the interruption time exceeds 3 consecutive months, the capitalization of borrowing costs shall
be suspended. The borrowing costs incurred during the interruption are recognized as expenses and included in
current profits and losses until the acquisition or construction of the assets is resumed. The capitalization of the
borrowing costs continues if the interruption is a procedure necessary for the purchase or production of assets
eligible for capitalization to meet the intended useable or sellable status.
The borrowing costs shall cease to be capitalized when the purchased or produced assets that meet the
conditions of capitalization meet the intended useable or sellable status. The borrowing costs incurred after the
assets eligible for capitalization meet the intended useable or sellable status can be included in the current
profits and losses when incurred.
3. Calculation method of capitalized amount of borrowing costs
During the period of capitalization, the capitalization amount of interests (including amortization of discounts or
premiums) for each accounting period is determined in accordance with the following provisions:
(1) For special borrowings for the acquisition or construction of assets eligible for capitalization, the interest
expenses actually incurred in the current period of borrowings shall be recognized after deducting the interest
income obtained by depositing the unused borrowing funds into the bank or investment income obtained from
temporary investment.
(2) Where the general borrowing is occupied for the acquisition or construction of assets eligible for
capitalization, the Company multiplies the weighted average of the asset expenditure of the accumulated asset
expenditure exceeding the special borrowing by the capitalization rate of the general borrowing to calculate the
amount of interest that should be capitalized for general borrowings. The capitalization rate is determined based
on the weighted average interest rate of general borrowings.
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19. Biological Assets
Not applicable
20. Oil-gas Assets
Not applicable
21. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Recognition criteria of intangible assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without
physical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to the
definition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into
the Company; (3) The costs of the assets can be measured reliably.
2. Initial measurement of intangible assets
Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets, including the purchase price, relevant taxes and other
expenses directly attributable to the intended use of the asset. The payment of purchase price of intangible
assets exceeding normal credit terms is deferred, and the cost of intangible assets having financing nature in
essence shall be recognized based on the present value of the purchase price. The difference between the actual
payment price and the present value of the purchase price shall be recorded into the current profits and losses in
the credit period except that can be capitalized in accordance with the Accounting Standard for Business
Enterprises No. 17 - Borrowing Cost.
(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in the
investment contract or agreement, except that the value of the contract or agreement is unfair.
3. Subsequent measurement of intangible assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets
is limited, and the years of the useful life or output that constitutes the useful life or similar measurement units
shall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term
that brings economic benefits to the Company is unforeseeable
Intangible assets with limited useful life shall be amortized by straight line method from the time when the
intangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertain
useful life shall not be amortized. The Company reviews the estimated useful life and amortization method of
intangible assets with limited useful life at the end of each year, and reviews the estimated useful life of
intangible assets with uncertain useful life in each accounting period. For intangible assets that evidence shows
the useful life is limited, the useful life shall be estimated and the intangible assets shall be amortized in the
estimated useful life.
4. Recognition criteria and withdrawal method of intangible asset impairment provision
The impairment test method and withdrawal method for impairment provision of intangible assets are detailed
in Note 22: Long-term asset impairment under Note V.
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(2) Accounting Policy for Internal Research and Development Expenditures
The expenditures in internal research and development projects of the Company are classified into expenditures
in research stage and expenditures in development stage. The expenditures in research stage are included in the
current profits and losses when incurred. The expenditures in development stage are recognized as intangible
assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits, including the proof that the products
produced with the intangible asset have market or the proof of its usefulness if the intangible asset has market
and will be used internally;
(4) Having sufficient technical, financial resources and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred since meeting intangible
assets recognition criterion until reaching intended use. Expenditures that have been expensed in previous
periods are no longer adjusted.
Non-monetary assets exchange, debt restructuring, government subsidies and the cost of intangible assets
acquired by business combination are recognized according to relevant provisions of Accounting Standard for
Business Enterprises No. 7 - Non-monetary assets exchange, Accounting Standard for Business Enterprises No. 12
- Debt restructuring, Accounting Standards for Business Enterprises No. 16 - Government subsidies, Accounting
Standard for Business Enterprises No. 20 - Business combination respectively.
22. Impairment of Long-term Assets
For non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited
useful life, investment real estate measured in cost mode and long-term equity investments in subsidiaries, joint
ventures and associates, the Company determines whether there is indication of impairment at balance sheet
date. If there is indication of impairment, then estimate the amount of its recoverable value and test the
impairment. Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached
useable state shall be tested for impairment every year, whether or not there is any indication of impairment.
If the impairment test results indicate that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be made at the difference and included in the impairment loss. The recoverable
amount is the higher of the fair value of the asset minus the disposal cost and the present value of the expected
future cash flow of the asset. The fair value of the asset is recognized according to the price of the sales
agreement in the fair trade; if there is no sales agreement but there is an active market, the fair value is
recognized according to the buyer’s bid of the asset; if there is no sales agreement or active market, the fair value
of asset shall be estimated based on the best information that can be obtained. Disposal costs include legal costs
related to disposal of assets, related taxes, handling charges, and direct costs incurred to enable the asset
reaching sellable status. The present value of the expected future cash flows of the assets is recognized by the
amount discounted at appropriate discount rate according to the expected future cash flows arising from the
continuing use of the asset and the final disposal. The provision for impairment of assets is calculated and
recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of individual
assets, the recoverable amount of the asset group shall be recognized by the asset group to which the asset
40
belongs. The asset group is the smallest portfolio of assets that can generate cash inflows independently.
The book value of the goodwill presented separately in the financial statements shall be apportioned to the asset
group or portfolio of asset groups that is expected to benefit from the synergies of the business combination
when the impairment test is conducted. The corresponding impairment loss is recognized if the test results
indicate that the recoverable amount of the asset group or portfolio of asset groups containing the apportioned
goodwill is lower than its book value. The amount of the impairment loss shall offset the book value of the
goodwill apportioned to the asset group or portfolio of asset groups, and offset the book value of other assets in
proportion according to the proportion of the book value of other assets except the goodwill in the asset group
or portfolio of asset groups.
Once the impairment loss of the above asset is recognized, the portion that the value is restored will not be
written back in subsequent periods.
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 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
Welfare after demission mainly includes defined contribution plans and defined benefit plans. Of which defined
contribution plans mainly include basic endowment insurance, unemployment insurance, annuity funds, etc.,
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
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 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
41
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.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
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.
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.
26. Share-based Payment
Not applicable
27. Other Financial Instruments such as Preferred Shares and Perpetual Capital Securities
Not applicable
42
28. Revenue
Is the Company subject to any disclosure requirements for special industries?
No
1. Sale of goods
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 could be reliably measured; and ④ The
relevant economic benefits may flow into the Company, and the relevant cost which had occurred or will occur
could be reliably measured.
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.
2. Provision of labor services
In the case that the results of the labor service transaction can be reliably estimated, the income from the
provision of labor services shall be recognized at the balance sheet date by the percentage of completion
method according to the progress of the labor transaction.
The result of the provision of labor services can be reliably estimated refers that all the following conditions are
met: ① The amount of income can be measured reliably; ②The relevant economic benefits are likely to inflow to
the enterprise; ③ The progress of the transaction can be reliably determined; ④ The cost incurred and to be
incurred in the transaction can be measured reliably.
If the result of the provision of labor services can’t be reliably estimated, the income from the provision of labor
services shall be recognized according to the cost of labor services that have incurred and are expected to be
compensated, and the cost of labor services that have incurred is recognized as the current expenses. If the cost
of labor services already incurred isn’t expected to be compensated, the income will not be recognized.
If the contract or agreement between the Company and other enterprises includes the sale of goods and the
provision of labor services, and the sale of goods and the provision of labor services can be distinguished and
measured separately, the sale of goods and the provision of labor services shall be dealt with separately; if the
sale of goods and the provision of labor services can’t be distinguished or can’t be measured separately, the
contract will be treated as sale of goods.
3. Income from transferring the right to use assets
The operating income is calculated and recognized according to the time and method stipulated by relevant
contracts and agreements.
4. Interest income
Recognized when all the following conditions are met: ① The amount of income can be measured reliably; ②
Economic benefits related to the transaction can inflow.
43
29. Government Subsidies
(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to Assets
The government subsidies related to assets refer to the government subsidies obtained for acquisition,
construction or otherwise formation of long-term assets. The government subsidies related to income refer to
the government subsidies except the government subsidies related to assets.
The specific standard of classifying the government subsidies as subsidies related to assets: government subsidies
for acquisition, construction or otherwise formation of long-term assets.
If the government documents do not specify the subsidy object, the bases that the Company classified the
government subsidies as assets-related subsidies or income-related subsidies were as follows: (1) If the specific
items for which the subsidy is targeted are stipulated in government documents, divide according to the relative
proportion of the amount of expenditure that forms assets and the amount of expenditure included in the cost in
the budget for that particular project, and the proportion shall be reviewed at each balance sheet date and
changed as necessary; (2) if the government documents only have a general statement of the purpose and do not
specify a specific project.
If a government subsidy is a monetary asset, it shall be measured according to the amount received or receivable.
If a government subsidy is a non-monetary asset, it shall be measured at its fair value, and shall be measured at a
nominal amount (RMB1) when the fair value cannot be obtained reliably.
For confirmed government subsidies that need to be returned, if there is relevant deferred income, the book
balance of related deferred income shall be written off and the excess shall be charged to profit or loss for the
Current Period; for other circumstances, it shall be directly charged to profit or loss for the Current.
The Company adopts the gross method to confirm government subsidies. The government subsidies related to
assets are recognized as deferred income, and are charged to the current profit or loss in a reasonable and
systematic manner within the useful lives of the relevant assets (subsidies related to the daily activities of the
Company are included in other income; while subsidies unrelated to the daily activities of the Company are
included in non-operating income). Government subsidies measured at nominal amounts are directly charged to
profit or loss for the Current Period. Where the relevant assets are sold, transferred, scrapped or damaged before
the end of their useful lives, the balance of related undistributed deferred income shall be transferred to the
profit or loss of the asset disposal in the Current Period.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Pertinent to Incomes
The specific criteria that the Company classifies government subsidies as income related is: other government
subsidies other than asset-related government subsidies.
Government subsidies related to income are treated as follows:
(1) government subsidies used to compensate the relevant costs, expenses or losses of the Company in the
subsequent period shall be recognized as deferred income, and shall be included in the current profit and loss
during the period of confirming the relevant costs, expenses or losses (subsidies related to the daily activities of
the Company are included in other income; while subsidies unrelated to the daily activities of the Company are
included in non-operating income);
(2) government subsidies used to compensate the relevant costs, expenses or losses incurred by the Company
shall be directly included in the current profits and losses (subsidies related to the daily activities of the Company
are included in other income; while subsidies unrelated to the daily activities of the Company are included in
44
non-operating income).
For government subsidies that include both assets-related and income-related parts, they should be
distinguished separately for accounting treatment; for government subsidies that are difficult to be distinguished,
they should be classified as income-related.
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The income tax of the Company includes the current income tax and deferred income tax. Both are recorded into
the current gains and losses as income tax expenses or revenue, except in the following circumstances:
(1) The income tax generated from the business combination shall be adjusted into goodwill;
(2) The income tax related to the transaction or event directly included in shareholders’ equity shall be recorded
into shareholders’ equity.
At the balance sheet date, the Company recognizes the deferred income tax assets or deferred income tax
liabilities in accordance with the balance sheet liability method for the temporary difference between the book
value of assets or liabilities and its tax base.
The Company recognizes all taxable temporary differences as deferred income tax liabilities unless taxable
temporary differences arise in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of the assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination and neither the accounting
profit nor the taxable income is incurred at the time of the transaction;
(2) The time of write-back of taxable temporary differences related to the investments in subsidiaries, associates
and joint ventures can be controlled and the temporary differences are likely to not be written back in the
foreseeable future.
The Company recognizes the deferred income tax assets arising from deductible temporary differences, subject
to the amount of taxable income obtained to offset the deductible temporary differences, unless the deductible
temporary differences arise in the following transactions:
(1) The transaction is not a business combination, and the transaction does not affect the accounting profit or
the amount of taxable income;
(2) The deductible temporary differences related to the investments in subsidiaries, associates and joint ventures
are not met simultaneously: Temporary differences are likely to be written back in the foreseeable future and are
likely to be used to offset the taxable income of deductible temporary differences in the future.
At the balance sheet date, the Company measures the deferred income tax assets and deferred income tax
liabilities at the applicable tax rate of the period expected to recover the asset or pay off the liabilities according
to tax law, and reflects the income tax effect of expected assets recovery or liabilities payoff method at the
balance sheet date.
At the balance sheet date, the Company reviews the book value of the deferred income tax assets. If it is likely
that sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in the
future period, the book value of the deferred income tax assets will be written down. If it is probable that
sufficient taxable income will be available, the amount of write-down will be written back.
31. Lease
(1) Accounting Treatment of Operating Lease
(1) The lease fee paid by the Company for rented assets shall be apportioned using the straight-line method over
45
the entire lease term without deducting the rent-free period and shall be included in the current period expenses.
The initial direct costs related to the lease transaction paid by the Company are included in current expenses.
When the lessor of the asset assumes the lease-related expenses that should be borne by the Company, the
Company should deduct the part of the expenses from the total rental amount, and the deducted rental
expenses are apportioned during the lease term and included in the current expenses.
(2) The rental fees received by the company for leasing assets are apportioned on a straight-line basis over the
entire lease term without deducting the rent-free period and are recognized as lease income. The initial direct
expenses related to lease transactions paid by the company are included in the current expenses; if the amount
is larger, they are capitalized and are recorded in the current period in stages on the same basis as the
recognition of lease income during the entire lease period.
When the company assumes the lease-related expenses that should be borne by the lessee, the company
deducts the expenses from the total amount of rental income and allocates the deducted rental expenses during
the lease period.
(2) Accounting Treatments of Financial Lease
(1) Financing leased assets: on the lease starting date, the Company recorded 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, recognized the amount of the minimum lease payments as the entering value in an
account of long-term account payable, and treated the balance between the recorded amount of the leased
asset and the long-term account payable as unrecognized financing charges. The company adopted the effective
interest method to amortize the unrecognized financing expenses during the asset lease period and included it
into financial expenses.
(2) Assets leased by finance: On the lease beginning date, the Company recognized the financial lease receivables,
and the difference between the sum of unguaranteed residual values and its present value as unrealized
financing income. It is recognized as lease income during any lease period in the future. The initial direct costs
incurred by the Company in relation to the lease transaction, were included in the initial measurement of the
financial lease receivable and the amount of revenue recognized during the lease period shall be reduced.
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) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
46
34. Other
None
VI Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or taxable
VAT 3%, 6%, 10%, 11%, 16%, 17%
service
Urban maintenance and construction tax Turnover tax payable 7%, 5%
Enterprise income tax Taxable income 15%, 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Taxpayer Income tax rate
Foshan Electrical and Lighting Co., Ltd. 15%
Foshan Lighting Chanchang Optoelectronics Co., Ltd. 25%
Foshan Chansheng Electronic Ballast Co., Ltd. 25%
Foshan Taimei Times Lamps and Lanterns Co., Ltd. 25%
Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. 25%
Foshan Electrical & Lighting (Xinxiang) Co., Ltd. 25%
FSL New Light Source Technology Co., Ltd. 25%
Guangdong Fozhao Leasing Co., Ltd. 25%
Foshan Lighting Lamps and Lanterns Co., Ltd. 25%
FSL Zhida Electric Technology Co., Ltd. 25%
FSL Lighting GMBH 15%
2. Tax Preference
The Company passed the re-examination for High-tech Enterprises in 2017, as well as won the “Certificate of
High-tech Enterprise” 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. 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 2017.
3. Other
Paid according to the relevant regulation of the tax law.
47
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Funds
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 53,998.39 52,031.79
Bank deposits 909,808,121.57 565,323,109.99
Other monetary funds 5,106,479.72 4,809,067.18
Total 914,968,599.68 570,184,208.96
Of which: total amount deposited
334,199.31 183,066.93
oversees
Other notes:
The ending balance of other monetary funds in the Reporting Period was the refundable deposits saved in
securities company, cash deposits, and e-commerce balance, among which the using right of cash deposits of
future foreign exchange settlement of RMB 2,447,280.00 and margin of RMB 857,419.80 were restricted.
2. Financial Assets at Fair Value through Profit or Loss
Naught
3. Derivative Financial Assets
□ Applicable √ Not applicable
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 67,325,195.40 68,368,192.41
Total 67,325,195.40 68,368,192.41
(2) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount
Bank acceptance bill 3,500,000.00
Total 3,500,000.00
48
(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 113,776,579.30
Total 113,776,579.30
(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
5. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra
Category Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Accounts receivable
with significant single
9,975,96 9,975,96 10,061, 10,061,64
amount for which 0.95% 100.00% 1.25% 100.00%
8.91 8.91 641.64 1.64
bad debt provision
separately accrued
Accounts receivable
withdrawn bad debt
1,042,31 47,620,8 994,690,3 795,800 39,509,24 756,291,43
provision according 99.05% 4.57% 98.75% 4.96%
1,223.06 36.99 86.07 ,674.49 1.93 2.56
to credit risks
characteristics
1,052,28 57,596,8 994,690,3 805,862 49,570,88 756,291,43
Total 100.00% 5.47% 100.00% 6.15%
7,191.97 05.90 86.07 ,316.13 3.57 2.56
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable（by Ending balance
unit） Accounts receivable Bad debt provision Withdrawal proportion Withdrawal reason
Suzhou Mont Lighting The debtor was at a
9,975,968.91 9,975,968.91 100.00%
Co., Ltd. continuous loss due to
49
the scale and market and
other reasons, so now it
is not suitable to produce
continuously.
Total 9,975,968.91 9,975,968.91 -- --
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 988,309,695.40 29,649,290.86 3.00%
Subtotal within 1 year 988,309,695.40 29,649,290.86 3.00%
1 to 2 years 32,213,727.24 3,221,372.72 10.00%
2 to 3 years 5,878,621.63 1,763,586.49 30.00%
3 to 4 years 1,334,879.69 667,439.85 50.00%
4 to 5 years 11,275,760.17 9,020,608.14 80.00%
Over 5 years 3,298,538.93 3,298,538.93 100.00%
Total 1,042,311,223.06 47,620,836.99 4.57%
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:
Naught
(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 8,026,000.50; the
amount of the reversed or collected part during the Reporting Period was of RMB 0.00.
(3) The Actual Write-off Accounts Receivable
Unit: RMB
Item Amount
Other retails accounts 78.17
Total 78.17
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Proportion of
ending balance Ending balance of bad
Name of units Relationship Amount Aging
of the total debt provision
accounts
50
receivable
Non-connected 191,461,593.37 18.19% 5,743,847.80
No. 1 Within 1 year
relationship
Non-connected 20,747,221.00 1.97% 684,803.17
No. 2 Within 2 years
relationship
Non-connected 20,371,305.32 1.94% 611,139.16
No. 3 Within 1 year
relationship
Non-connected 19,409,126.02 1.84% 582,273.78
No. 4 Within 1 year
relationship
Non-connected 15,148,133.08 1.44% 454,443.99
No. 5 Within 1 year
relationship
Total 267,137,378.79 25.39% 8,076,507.90
(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
6. Prepayment
(1) Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 22,468,064.03 73.87% 25,971,834.21 78.48%
1 to 2 years 3,604,426.17 11.85% 2,782,505.53 8.41%
2 to 3 years 111,031.47 0.37% 3,250,778.25 9.82%
Over 3 years 4,231,716.81 13.91% 1,090,195.36 3.29%
Total 30,415,238.48 -- 33,095,313.35 --
(2) Top 5 of the Ending Balance of the Prepayment Collected according to the Prepayment Target
Unit: RMB
Proportion of the total
Name of units Relationship Ending balance Aging
number
No. 1 Non-connected supplier 2,900,000.00 Over 3 years 9.53%
No. 2 Non-connected supplier 2,152,731.21 Within 1 year 7.08%
No. 3 Non-connected supplier 1,556,175.80 Within 1 year 5.12%
51
No. 4 Non-connected supplier 1,463,911.36 Within 1 year 4.81%
No. 5 Non-connected supplier 1,318,800.00 Within 2 year 4.34%
Total 9,391,618.37 30.88%
7. Interest Receivable
(1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Deposits on a regular basis 222,714.96 1,726,993.91
Bank financial products 4,745,863.01
Structural deposits 1,366,375.95 5,955,594.94
Total 1,589,090.91 12,428,451.86
(2) Significant Overdue Interest
Naught
8. Dividend Receivable
Naught
9. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra
Category Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Other accounts
receivable withdrawn
40,239,2 3,138,33 37,100,96 24,013, 2,797,844 21,215,215.
bad debt provision 99.27% 7.80% 98.79% 11.65%
98.09 2.99 5.10 060.03 .88 15
according to credit
risks characteristics
Other accounts
receivable with
295,120. 295,120. 295,120 295,120.0
insignificant single 0.73% 100.00% 1.21% 100.00%
00 00 .00 0
amount for which
bad debt provision
52
separately accrued
40,534,4 3,433,45 37,100,96 24,308, 3,092,964 21,215,215.
Total 100.00% 8.47% 100.00% 12.72%
18.09 2.99 5.10 180.03 .88 15
Other receivable with single significant amount and withdrawal bad debt provision separately at the end of the Period
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 33,350,359.64 1,000,510.79 3.00%
Subtotal within 1 year 33,350,359.64 1,000,510.79 3.00%
1 to 2 years 3,432,152.41 343,215.24 10.00%
2 to 3 years 167,542.81 50,262.84 30.00%
3 to 4 years 3,088,998.23 1,544,499.12 50.00%
4 to 5 years 2,000.00 1,600.00 80.00%
Over 5 years 198,245.00 198,245.00 100.00%
Total 40,239,298.09 3,138,332.99 7.80%
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 withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
The amount of bad debt provision was RMB 340,488.11, the amount of reversed or recovered bad debt provision
in the Reporting Period RMB 0.00.
(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 Ending carrying amount Beginning carrying amount
VAT export tax refunds 18,007,536.67 5,712,812.04
Performance bond 4,671,837.37 4,377,639.20
Staff borrow and deposit 8,327,131.18 4,343,208.32
Rent, water & electricity fees 420,600.59 1,293,281.97
Advance money for street light
3,777,672.16 3,777,672.16
construction
53
Internal business group 295,120.00 295,120.00
Others 5,034,520.12 4,508,446.34
Total 40,534,418.09 24,308,180.03
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion of ending
balance of the total Ending balance of
Name of units Nature Ending balance Aging
other accounts bad debt provision
receivable
No. 1 Export rebates 18,007,536.67 Within 1 year 44.43% 540,226.10
Advance money for
No. 2 street light 3,777,672.16 Within 4 years 9.32% 1,299,397.36
construction
No. 3 Others 2,122,656.00 Within 1 year 5.24% 63,679.68
No. 4 Margin 2,098,341.00 1-2 years 5.18% 209,834.10
No. 5 Reserved funds 1,272,056.18 Within 1 year 3.14% 38,161.69
Total -- 27,278,262.01 -- 67.30% 2,151,298.93
(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
(8) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Other Accounts Receivable
Naught
10. Inventory
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Raw materials 131,750,416.99 2,109,125.27 129,641,291.72 104,733,828.43 2,513,798.75 102,220,029.68
Goods in process 55,616,044.37 55,616,044.37 39,662,967.77 39,662,967.77
54
Inventory goods 400,549,699.56 15,543,022.09 385,006,677.47 466,813,177.48 10,984,333.96 455,828,843.52
Self-manufacture
d semi-finished 146,454,910.82 1,151,374.87 145,303,535.95 146,868,534.26 972,725.26 145,895,809.00
product
Low-value
2,598,902.15 2,598,902.15 2,859,239.90 2,859,239.90
fugitive items
Total 736,969,973.89 18,803,522.23 718,166,451.66 760,937,747.84 14,470,857.97 746,466,889.87
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting business
No
(2) Falling Price Reserves of Inventory
Unit: RMB
Increased amount Decreased amount
Beginning
Item Reverse or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 2,513,798.75 89,155.54 493,829.02 2,109,125.27
Inventory goods 10,984,333.96 7,319,251.26 2,760,563.13 15,543,022.09
Self-manufacture
d semi-finished 972,725.26 231,974.42 53,324.81 1,151,374.87
product
Total 14,470,857.97 7,640,381.22 3,307,716.96 18,803,522.23
Reason for the withdrawal and reverse of falling price reserves of inventory:
Reasons for the reverse or write-off of
Basis for provision for falling price of
Item falling price reserves of inventory of Remark
inventory
Reporting Period
According to the lower of inventory cost
Raw materials Raw materials sales or scrapping
and net realizable value
According to the lower of inventory cost
Inventory goods Products sales or scrapping
and net realizable value
Reason for the withdrawal of falling price reserves of inventory: withdrawn for non-circulation of a small number
of raw materials; some inventory goods were temporarily idle for product classification.
(3) Notes of the Ending Balance of the Inventory which Includes Capitalized Borrowing Expenses
Naught
(4) Completed Unsettled Assets Formed from the Construction Contact at the Period-end
Naught
55
11. Held-for-sale Assets
Naught
12. Non-current Assets Due within 1 Year
Naught
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible input tax of VAT 28,511,668.85 25,823,261.05
Advance payment of enterprise income tax 238,841.51
Bank financial products (Note) 470,000,000.00
Structural deposits (Note) 320,000,000.00 510,000,000.00
Total 348,511,668.85 1,006,062,102.56
Other notes:
Note: the bank principal-guaranteed financial products with maturity date more than three months but investment cycle shorter
than a year and structural deposit products which cannot be terminated in advance.
14. Available-for-sale Financial Assets
(1) List of Available-for-sale Financial Assets
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Available-for-sale equity
1,016,463,407.54 5,850,000.00 1,010,613,407.54 1,396,431,536.60 5,850,000.00 1,390,581,536.60
instruments
Measured by fair
706,985,098.14 706,985,098.14 1,086,953,227.20 1,086,953,227.20
value
Measured by cost 309,478,309.40 5,850,000.00 303,628,309.40 309,478,309.40 5,850,000.00 303,628,309.40
Total 1,016,463,407.54 5,850,000.00 1,010,613,407.54 1,396,431,536.60 5,850,000.00 1,390,581,536.60
(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 243,884,887.46 243,884,887.46
56
instruments/amortized
cost of the debt
instruments
Fair value 706,985,098.14 706,985,098.14
Changed amount of the
fair value that be
accumulatively recorded 463,100,210.68 463,100,210.68
in other comprehensive
income
(3) Available-for-sale Financial Assets Measured by Cost at the Period-end
Unit: RMB
Carrying amount Depreciation reserves 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 10,971,41
4.62%
Bank 3.00 3.00 7.60
Guangdon
g
500,000.0 500,000.0 Less than
Developm
0 0 5.00%
ent Bank
Co., Ltd.
Foshan
Fochen
Road
4,554,176. 4,554,176.
Developm 7.66%
40 40
ent
Company
Limited
309,478,30 309,478,30 5,850,000. 5,850,000. 10,971,41
Total --
9.40 9.40 00 00 7.60
57
(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
balance at the 5,850,000.00 5,850,000.00
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
15. Investment Held-to-maturity
Naught
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains and Ending
Adjustme
losses Cash Withdraw balance
Additiona nt of
Beginning Reduced recognize Changes bonus or al of Ending of
Investee l other
balance investme d under of other profits impairme Other balance impairme
investme comprehe
nt the equity announce nt nt
nt nsive
equity d to issue provision provision
income
method
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
179,414,1 179,781.5 3,120,585 176,473,3
ix
05.14 6 .75 00.95
(Nanho)
Electronic
58
s Ltd.
179,414,1 179,781.5 3,120,585 176,473,3
Subtotal
05.14 6 .75 00.95
179,414,1 179,781.5 3,120,585 176,473,3
Total
05.14 6 .75 00.95
Other notes:
The actual controller of Shenzhen Primatronix (Nanho) Electronics Ltd. is Guangdong Electronics Information Industrial (group)
Corp.
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 Total
buildings equipment equipment equipment
I. Original carrying
value
1. Beginning balance 682,933,149.57 689,839,173.35 23,667,381.11 24,917,745.28 1,421,357,449.31
2. Increased amount
27,268,792.63 33,501,668.80 28,376.07 2,589,689.54 63,388,527.04
of the period
(1) Purchase 797,188.08 26,133,191.07 28,376.07 463,880.06 27,422,635.28
(2) Transfer of
project under 26,471,604.55 7,368,477.73 2,125,809.48 35,965,891.76
construction
(3) Enterprises
combination
increase
3. Decreased 827,279.14 547,960.00 28,165.00 1,403,404.14
59
amount of the
period
(1) Disposal or
787,806.01 547,960.00 28,165.00 1,363,931.01
scrap
(2) Equipment
39,473.13 39,473.13
transformation
4. Ending balance 710,201,942.20 722,513,563.01 23,147,797.18 27,479,269.82 1,483,342,572.21
II. Accumulated
desperation
1. Beginning
409,156,400.86 491,616,205.03 16,048,566.76 18,722,379.66 935,543,552.31
balance
2. Increased
amount of the 11,537,432.84 21,228,837.48 684,845.71 1,547,267.76 34,998,383.79
period
(1) Withdrawal 11,537,432.84 21,228,837.48 684,845.71 1,547,267.76 34,998,383.79
3. Decreased
amount of the 751,551.71 520,562.00 26,946.75 1,299,060.46
period
(1) Disposal or
746,239.29 520,562.00 26,946.75 1,293,748.04
scrap
(2) Equipment
5,312.42 5,312.42
transformation
4. Ending balance 420,693,833.70 512,093,490.80 16,212,850.47 20,242,700.67 969,242,875.64
III. Depreciation
reserves
1. Beginning
2,292,602.33 428.03 2,293,030.36
balance
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal or
scrap
4. Ending balance 2,292,602.33 428.03 2,293,030.36
IV. Carrying value
1. Ending carrying
289,508,108.50 208,127,469.88 6,934,946.71 7,236,141.12 511,806,666.21
value
60
2. Beginning
273,776,748.71 195,930,365.99 7,618,814.35 6,194,937.59 483,520,866.64
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Remark
value depreciation reserves
Name of the
announcement:
Announcement on
Withdrawing the
Preparation for the
T5, T8, energy-saving Assets Impairment on
7,987,825.52 5,990,334.69 1,945,921.54 51,569.29
lamp production line the Idle Equipments and
Construction in Progress;
the Announcement No.:
2015-030; disclosure
website:
www.cninfo.com.cn
Total 7,987,825.52 5,990,334.69 1,945,921.54 51,569.29
(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 Certificate of Property
Other notes
The standard workshop E of the Company had been completed and put into use as well as carried over to fixed
assets in this year. As of 30 June 2018, the related certificates of property were in progress. The management
believed there were no substantial legal impediments in proceeding with the certificates of property and no
significant unfavorable effects to normal operation of the Company.
20. Construction in Progress
(1) List of Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
61
Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Construction in
189,368,112.34 189,368,112.34 162,814,991.68 162,814,991.68
progress
Total 189,368,112.34 189,368,112.34 162,814,991.68 162,814,991.68
(2) Changes of Significant Construction in Progress
Unit: RMB
Of
Amount Proporti which:
Accumul Capitaliz
that Other on the
ative ation
transferr decrease estimate amount
Estimate Beginnin Increase amount rate of Capital
Name of ed to d Ending d of the Project of the
d g d of the resource
item fixed amount balance project progress capitalize
number balance amount capitalize interests s
assets of of the accumul d
d of the
the period ative interests
interests period
period input of the
period
Fuwan
intelligen
51,500,0 25,715,0 9,608,30 35,323,3
t 68.59% 75.00% Other
00.00 29.09 7.84 36.93
worksho
pH
Fuwan
standard 24,500,0 14,115,3 4,909,41 19,024,7
77.65% 85.00% Other
worksho 00.00 45.92 2.88 58.80
p K3
Fuwan
standard 24,500,0 13,281,6 5,009,43 18,291,0
74.66% 85.00% Other
worksho 00.00 20.60 2.38 52.98
p K2
Fuwan
standard 23,000,0 12,491,8 4,057,47 16,549,2
71.95% 75.00% Other
worksho 00.00 25.29 2.64 97.93
p J3
Fuwan
standard 23,000,0 12,652,9 4,065,49 16,718,4
72.69% 75.00% Other
worksho 00.00 55.32 3.50 48.82
p K1
Fuwan
standard 21,500,0 11,760,0 3,755,78 15,515,8
72.17% 80.00% Other
worksho 00.00 18.73 3.46 02.19
p J1
62
Fuwan
standard 21,500,0 11,621,4 3,755,78 15,377,2
71.52% 80.00% Other
worksho 00.00 57.94 3.45 41.39
p J2
Automat
ic system
of
intelligen
t
21,920,0 8,479,33 8,479,33
producti 38.68% 60.00% Other
00.00 3.21 3.21
on
worksho
p
(worksh
op H)
LEDT8
automati
c line
transfor
8,000,00 6,971,14 321,629. 7,292,77
mation 91.16% 99.00% Other
0.00 2.75 83 2.58
(16033)
LED third
worksho
p
70,000
m2
factory
7,500,00 6,026,38 6,026,38
constru 80.35% 85.00% Other
0.00 6.72 6.72
cted by
Gao
Ming
Family
housing
of Gao 9,000,00 5,827,52 1,871,49 7,699,02
85.54% 99.00% Other
Ming, 0.00 8.35 8.77 7.12
Building
8#
Fuwan
standard 30,000,0 24,045,4 1,781,05 25,826,5
0.00 86.09% 100.00% Other
worksho 00.00 44.08 9.03 03.11
pE
265,920, 146,961, 45,162,2 25,826,5 166,297,
Total -- -- --
000.00 701.28 60.50 03.11 458.67
63
(3) List of the Withdrawal of the Impairment Provision of the Construction in Progress
Naught
21. Engineering Material
Naught
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
Using right of
Item Land use right Patent Non-patents Total
Software
I. Original carrying value
1. Beginning balance 211,719,938.60 200,000.00 2,773,651.87 214,693,590.47
2. Increased amount of
the period
(1) Purchase
(2) Internal R &D
(3) Increase from
enterprise combination
3. Decrease in the
Reporting Period
64
(1) Disposal
4. Ending balance 211,719,938.60 200,000.00 2,773,651.87 214,693,590.47
II. Total accrued
amortization
1. Beginning balance 57,449,354.58 200,000.00 1,499,515.53 59,148,870.11
2. Increased amount of
1,936,493.01 220,515.84 2,157,008.85
the period
(1) Withdrawal 1,936,493.01 220,515.84 2,157,008.85
3. Decrease in the
Reporting Period
(1) Disposal
4. Ending balance 59,385,847.59 200,000.00 1,720,031.37 61,305,878.96
III. Depreciation reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decrease in the
Reporting Period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 152,334,091.01 1,053,620.50 153,387,711.51
2. Beginning carrying
154,270,584.02 1,274,136.34 155,544,720.36
value
The proportion of the intangible assets formed from the internal R&D through the Company to the balance of
the intangible assets at the period-end was 0.00%.
(2) Details of Land Use Right Failed to Accomplish Certificate of Title
Naught
26. R&D Expenses
Naught
65
27. Goodwill
(1) Original Carrying value of Goodwill
Naught
(2) Impairment Provision of Goodwill
Naught
28. Long-term Unamortized Expenses
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount amount
Maintenance and
9,088,933.56 1,176,201.48 2,859,910.25 7,405,224.79
decoration expenses
Total 9,088,933.56 1,176,201.48 2,859,910.25 7,405,224.79
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
112,256,028.63 17,243,788.29 99,556,953.91 15,311,430.81
provision
Unrealized profits of
1,324,545.88 198,681.88 1,795,625.87 269,343.88
internal transactions
Deductible losses 897,811.61 224,452.90 10,594,861.17 2,648,715.29
Depreciation of fixed
69,138,726.15 10,701,998.82 67,261,836.57 10,420,465.38
assets
Payroll payable 43,760,690.41 6,564,103.56 60,172,489.55 9,025,873.43
Total 227,377,802.68 34,933,025.45 239,381,767.07 37,675,828.79
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of 463,100,210.68 69,465,031.60 843,068,339.74 126,460,250.96
66
available-for-sale
financial assets
Total 463,100,210.68 69,465,031.60 843,068,339.74 126,460,250.96
(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
34,933,025.45 37,675,828.79
assets
Deferred income tax
69,465,031.60 126,460,250.96
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Naught
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Naught
30. Other Non-current Assets
Unit: RMB
Item Ending balance Beginning balance
Land purchase and the ownership implicit
41,755,700.00 41,755,700.00
of relevant items
Prepayments for business facilities 350,440.00 1,303,334.80
Total 42,106,140.00 43,059,034.80
31. Short-term Loans
Naught
32. Financial Liabilities at Fair Value through Profit or Loss
Naught
33. Derivative Financial Liabilities
□ Applicable √ Not applicable
67
34. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 2,652,485.00
Total 2,652,485.00
The total unpaid notes payable due at the Period end was RMB0.00.
35. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Accounts payable 679,471,875.75 539,303,554.54
Total 679,471,875.75 539,303,554.54
(2) Notes of the Accounts Payable Aging Over One Year
Naught
36. Advance from Customers
(1) List of Advance from Customers
Unit: RMB
Item Ending balance Beginning balance
Advance from customers 39,197,246.65 48,706,778.49
Total 39,197,246.65 48,706,778.49
(2) Significant Advance from Customers Aging Over One Year
Naught
(3) Particulars of Settled but Unfinished Projects Formed by Construction Contract at Period-end
Naught
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
68
I. Short-term salary 81,948,630.59 301,930,908.07 320,079,778.93 63,799,759.73
II. Welfare after
demission - defined 19,477,061.62 19,477,061.62
contribution plans
Total 81,948,630.59 321,407,969.69 339,556,840.55 63,799,759.73
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
81,567,715.47 276,124,154.89 294,250,945.69 63,440,924.67
allowance, subsidy
2. Employee welfare 6,308,719.45 6,308,719.45
3. Social insurance 12,488,143.47 12,488,143.47
Including: Medical
10,721,495.58 10,721,495.58
insurance premiums
Work-related injury
757,389.39 757,389.39
insurance
Maternity insurance 1,009,258.50 1,009,258.50
4. Housing fund 4,841,241.50 4,841,241.50
5. Labor union budget
and employee education 380,915.12 2,168,648.76 2,190,728.82 358,835.06
budget
Total 81,948,630.59 301,930,908.07 320,079,778.93 63,799,759.73
(3) List of Drawing Scheme
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 18,665,445.40 18,665,445.40
2. Unemployment
811,616.22 811,616.22
insurance
Total 19,477,061.62 19,477,061.62
38. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 14,500,324.87 10,282,705.33
Corporate income tax 23,592,375.47 9,181,098.01
Personal income tax 1,782,936.65 1,591,053.45
Urban maintenance and construction tax 1,013,577.10 830,070.63
Education surcharge 723,983.65 596,707.51
69
Property tax 2,708,665.52 893,895.36
Land use tax 2,051,969.88 3,831,261.26
Other taxes 168,552.67 143,878.85
Total 46,542,385.81 27,350,670.40
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 Ending balance Beginning balance
Compensation for lawsuit 1,762,533.43 1,762,533.43
Performance bond 23,904,066.25 22,458,290.53
Others 9,982,229.87 16,327,665.07
Total 35,648,829.55 40,548,489.03
(2) Other Significant Accounts Payable with Aging Over One Year
Naught
42. Held-for-sale Liabilities
Naught
43. Non-current Liabilities Due within 1 Year
Naught
44. Other Current Liabilities
Naught
45. Long-term Borrowings
Naught
70
46. Bonds Payable
Naught
47. Long-term Accounts Payable
Naught
48. Long-term Payroll Payable
Naught
49. Specific Accounts Payable
Naught
50. Provisions
Naught
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Government subsidy
Government subsidy 11,858,330.49 77,499.96 11,780,830.53 related to
assets/income
Total 11,858,330.49 77,499.96 11,780,830.53 --
Item involving government subsidies:
Unit: RMB
Amount Amount
recorded into recorded into Amount
Amount of Related to
Beginning non-operatin other income offset cost in Other Ending
Item newly assets/relate
balance g income in in the the Reporting changes balance
subsidy d income
the Reporting Reporting Period
Period Period
LED
production
Related to
technical 9,852,274.95 9,852,274.95
assets
transformatio
n project
Production
Related to
line of 50 310,000.23 77,499.96 232,500.27
assets
million
71
energy-saving
fluorescent
lamp
Construction
of
Electro-optic
al Institute of Related to
1,000,000.00 1,000,000.00
Foshan income
Electrical and
Lighting Co.,
Ltd.
Standard
optical
components
Related to
testing 272,669.78 272,669.78
income
laboratory
capacity
construction
Overseas
protection
plan of Related to
250,000.00 250,000.00
intellectual income
property of
FSL
Standard
research on
Related to
cool LED light 173,385.53 173,385.53
income
with wide
angle
11,858,330.4 11,780,830.5
Total 77,499.96 --
9 3
52. Other Non-current Liabilities
Naught
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning balance New shares Bonus issue from Ending balance
Bonus shares Other Subtotal
issued profit
The sum of
1,272,132,868.00 127,213,286.00 127,213,286.00 1,399,346,154.00
shares
72
54. Other Equity Instrument
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
278,575,487.53 127,213,286.00 151,362,201.53
(premium on stock)
Other capital reserves 7,245,971.54 7,245,971.54
Total 285,821,459.07 127,213,286.00 158,608,173.07
Other notes, including changes and reason of change:
The decrease in capital premium (premium on stock) was mainly caused by the review and approval of the 2017
Profit Distribution and Bonus Issue from Profit Plan on the shareholders meeting held on 26 April 2018, in which,
the Company issues one share for every 10 share in capital reserves to the whole shareholders. The total bonus
issue from profit was 127,213,286.00 shares. The aforesaid profit distribution and bonus issue from profit plan
has been carried out completely on 16 May 2018.
56. Treasury Shares
Naught
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: recorded
in other
Attributabl
comprehensiv Attributabl
Income e to owners
e income in e to
Beginning before Less: of the Ending
Item prior period non-control
balance taxation in Income tax Company balance
and ling
the Current expense as the
transferred in interests
Period parent after
profit or loss after tax
tax
in the Current
Period
II. Other comprehensive income that
716,607,333. -379,970,57 -56,995,219 -322,975,35 393,631,9
may subsequently be reclassified to
78 0.75 .36 1.39 82.39
profit or loss
Gains or losses from changes in
716,608,088. -379,968,12 -56,995,219 -322,972,90 393,635,1
fair value of available-for-sale
78 9.06 .36 9.70 79.08
financial assets
Differences arising from -755.00 -2,441.69 -2,441.69 -3,196.69
73
translation of foreign
currency-denominated financial
statements
716,607,333. -379,970,57 -56,995,219 -322,975,35 393,631,9
Total of other comprehensive income
78 0.75 .36 1.39 82.39
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
636,066,434.00 636,066,434.00
reserves
Discretionary surplus
136,886,568.36 136,886,568.36
reserves
Total 772,953,002.36 772,953,002.36
60. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained profits before
1,731,600,796.18 1,564,615,925.99
adjustments
Beginning balance of retained profits after
1,731,600,796.18 1,564,615,925.99
adjustments
Add: Net profit attributable to owners of the
229,277,455.82 228,494,660.57
Company as the parent
Dividend of ordinary shares payable 418,531,713.57 534,295,804.56
Ending retained profits 1,542,346,538.43 1,258,814,782.00
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.
(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
74
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same Period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 2,048,839,316.62 1,568,876,663.19 2,010,535,149.65 1,537,416,165.51
Other operations 15,939,973.37 10,415,204.70 13,390,433.19 9,515,614.34
Total 2,064,779,289.99 1,579,291,867.89 2,023,925,582.84 1,546,931,779.85
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same Period of last year
Urban maintenance and construction tax 8,264,474.00 7,980,261.34
Education Surcharge 5,949,176.10 5,707,899.61
Property tax 4,231,277.07 3,045,704.60
Land use tax 2,590,984.95 2,621,884.53
Vehicles and vessels use tax 6,668.80 13,909.92
Stamp duty 906,543.92 1,016,936.24
Embankment-protection fees 6.09
Environmental protection tax 13,393.40
Total 21,962,518.24 20,386,602.33
63. Selling Expense
Unit: RMB
Item Reporting Period Same Period of last year
Employee’s remuneration 30,104,690.49 30,517,319.21
Freight 36,843,018.64 31,103,632.14
Business travel charges 4,436,361.10 5,183,499.37
Business propagandize fees and
9,922,450.58 3,408,430.38
advertizing fees
Dealer meeting expense 2,444,484.12 857,144.15
Sales promotion fees 7,768,266.90 6,799,707.29
Other 12,397,738.64 3,782,261.15
Total 103,917,010.47 81,651,993.69
64. Administrative Expense
Unit: RMB
Item Reporting Period Same Period of last year
Employee’s remuneration 65,793,996.37 57,456,446.88
Office expenses 5,211,417.98 5,128,247.37
75
Rent of land and management charge 3,135,605.89 3,054,887.77
Amortization of intangible assets 2,157,008.85 2,157,808.85
Depreciation charge 7,850,977.37 9,552,900.65
Other 20,325,025.06 21,440,530.08
Total 104,474,031.52 98,790,821.60
65. Finance Costs
Unit: RMB
Item Reporting Period Same Period of last year
Interest expense
Less: Interest income 4,879,439.87 15,609,163.27
Foreign exchange gains or losses -9,341,097.44 6,502,463.05
Other 1,135,060.70 1,990,792.86
Total -13,085,476.61 -7,115,907.36
66. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same Period of last year
I. Bad debt loss 8,366,488.61 10,677,806.99
II. Inventory falling price loss 7,640,381.22 13,381,912.36
Total 16,006,869.83 24,059,719.35
67. Gain on Changes in Fair Value
Naught
68. Investment Income
Unit: RMB
Item Reporting Period Same Period of last year
Long-term equity investment income
179,781.56 1,543,965.79
accounted by equity method
Investment income received from holding of
10,971,417.60 6,560,422.50
available-for-sale financial assets
Income received from financial products and
13,358,671.20 6,404,893.95
structural deposits
Other -500,000.22
Total 24,509,870.36 14,009,282.02
76
69. Asset Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Income from disposal of fixed assets -10,790.68
Total -10,790.68
70. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Subsidy for stabilizing posts 792,403.17 17,754.36
Supporting fund for import and export 3,249,240.00
Other 225,982.00 36,000.00
Total 1,018,385.17 3,302,994.36
71. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same Period of last year
non-recurring profit or loss
Government subsidy 914,699.96 584,709.96 914,699.96
Other 755,156.47 2,134,691.56 755,156.47
Total 1,669,856.43 2,719,401.52 1,669,856.43
Government subsidies recorded into current profit or loss
Unit: RMB
Whether
influence the Special Related to
Distribution Distribution Reporting Same period
Item Nature profits or subsidy or assets/relate
entity reason Period of last year
losses of the not d income
year or not
Due to
engaged in
special
industry that
Production
the state
line of 50
encouraged
million Related to
Subsidy and No No 77,499.96 77,499.96
energy-saving assets
supported,
fluorescent
gained
lamp
subsidy
(obtaining in
line with the
law and the
77
regulations of
national
policy)
Chancheng
Subsidy from
District
R&D
Economy and
Technical Related to
Science Award No No 300,000.00
updating and income
Promotion
transformatio
Bureau Talent
n, etc.
Subsidy
Subsidy from
R&D
Governmenta Technical Related to
Award No No 20,000.00
l reward fund updating and income
transformatio
n, etc.
Subsidy from
R&D
Other odd
Technical Related to
government Award No No 837,200.00 187,210.00
updating and income
subsidies
transformatio
n, etc.
Total -- -- -- -- -- 914,699.96 584,709.96 --
72. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same Period of last year
non-recurring profit or loss
Total losses from disposal of
70,182.97 4,244,373.75 70,182.97
non-current assets
Of which: losses from disposal
70,182.97 4,244,373.75 70,182.97
of fixed assets
Donations 2,000.00
Lawsuit compensation 65,000.00 65,000.00
Other 56,566.45 512,609.26 56,566.45
Total 191,749.42 4,758,983.01 191,749.42
73. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same Period of last year
78
Current income tax expense 44,301,342.36 39,780,075.57
Deferred income tax expense 2,742,803.34 2,817,425.78
Total 47,044,145.70 42,597,501.35
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 279,218,831.19
Current income tax expense accounted at statutory/applicable
41,671,742.41
tax rate
Influence of applying different tax rates by subsidiaries 4,549,768.16
Influence of income tax before adjustment 2,495,315.01
Influence of non-taxable income -1,672,679.87
Income tax expense 47,044,145.70
74. Other Comprehensive Income
Refer to Note 57 for details.
75. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Deposit interest 10,461,602.02 17,037,947.97
Income from insurance compensation 50,333.58 132,451.15
Cash deposit income 1,729,639.24 -3,637,333.34
Property and rental income 2,110,828.30 1,737,139.33
Income from subsidy 1,911,331.54 5,010,204.36
Income from waste 8,814,180.41 5,756,171.75
Other 8,467,917.26 2,857,134.88
Total 33,545,832.35 28,893,716.10
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same Period of last year
Administrative expense paid in cash 20,080,875.34 25,668,559.80
Selling expense paid in cash 70,572,897.55 74,020,250.31
Finance costs paid in cash 343,210.94 237,632.16
Other 6,351,791.98 7,963,536.97
Total 97,348,775.81 107,889,979.24
79
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same Period of last year
The future foreign exchange settlement
2,447,280.00
security deposit
Security deposit on quota 857,419.80
Total 3,304,699.80
(5) Cash Generated from Other Financing Activities
Naught
(6) Cash Used in Other Financing Activities
Naught
76. 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 232,174,685.49 231,884,976.24
Add: Provision for impairment of assets 16,006,869.83 24,059,719.35
Depreciation of fixed assets, oil-gas assets,
34,998,383.79 36,399,142.47
and productive living assets
Amortization of intangible assets 2,157,008.85 2,157,808.85
Amortization of long-term prepaid expenses 2,859,910.25 1,647,573.52
Losses from disposal of fixed assets,
intangible assets and other long-lived assets 166,326.42
(gains: negative)
Losses on scrap of fixed assets (gains:
70,182.97 4,088,838.01
negative)
Investment loss (gains: negative) -24,509,870.36 -14,009,282.02
Decrease in deferred income tax assets
2,742,803.34 2,817,425.78
(gains: negative)
Decrease in inventory (gains: negative) 23,967,773.95 17,780,154.35
80
Decrease in accounts receivable generated
-280,200,774.50 -214,104,001.05
from operating activities (gains: negative)
Increase in accounts payable used in
134,456,804.77 -123,951,869.14
operating activities (decrease: negative)
Net cash generated from/used in operating
144,723,778.38 -31,063,187.22
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Net increase/decrease of cash and cash
-- --
equivalent:
Ending balance of cash 911,663,899.88 815,038,019.29
Less: beginning balance of cash 570,184,208.96 1,479,283,642.54
Net increase in cash and cash equivalents 341,479,690.92 -664,245,623.25
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught
(3) Net Cash Receive from Disposal of the Subsidiaries
Naught
(4) Cash and Cash Equivalent
Unit: RMB
Item Ending balance Beginning balance
I. Cash 911,663,899.88 570,184,208.96
Including: Cash on hand 53,998.39 52,031.79
Bank deposit on demand 909,808,121.57 565,323,109.99
Other monetary fund on demand 1,801,779.92 4,809,067.18
III. Ending balance of cash and cash
911,663,899.88 570,184,208.96
equivalents
77. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount
adjusted:
Not applicable
78. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
81
Security deposit of future foreign
Monetary capital 3,304,699.80
exchange settlement and quota
Notes payable 3,500,000.00 Pledged for FSL Bank Notes Pool
Total 6,804,699.80 --
79. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary capital -- -- 12,621,526.35
Including: USD 1,851,278.58 6.6166 12,249,169.85
EUR 48,664.51 7.6515 372,356.50
Account receivable -- -- 377,725,324.07
Including: USD 57,087,525.93 6.6166 377,725,324.07
Advances from customers 19,944,524.61
Including: USD 2,929,395.82 6.6166 19,382,640.38
EUR 73,434.52 7.6515 561,884.23
Prepayments 669,198.69
Including: USD 101,139.36 6.6166 669,198.69
Accounts payable 849,507.92
Including: USD 128,390.40 6.6166 849,507.92
Other accounts payable 463,625.16
Including: USD 70,070.00 6.6166 463,625.16
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
□ Applicable √ not applicable
80. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of
arbitrage to disclose:
82
81. Other
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Naught
(2) Combination Cost and Goodwill
Naught
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Naught
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination
and gaining the control during the Reporting Period
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
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
83
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Naught
3. Counter Purchase
Naught
4. The Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of
subsidiaries, etc.) and relevant information:
Naught
6. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Registration Nature of Holding percentage (%)
Name Way of gaining
place place business Directly Indirectly
Foshan Chansheng
Production and Newly
Electronic Ballast Foshan Foshan 100.00%
sales established
Co., Ltd.
Foshan Lighting
Lamps & Production and Newly
Foshan Foshan 100.00%
Components Co., sales established
Ltd.
Guangdong Fozhao
Production and Newly
New Light Sources Foshan Foshan 100.00%
sales established
Technology Co., Ltd.
FSL Chanchang Foshan Foshan Production and 100.00% Newly
84
Optoelectronics Co., sales established
Ltd.
Foshan Taimei
Production and Newly
Times Lamps and Foshan Foshan 70.00%
sales established
Lanterns Co., Ltd.
Foshan Electrical &
Production and Newly
Lighting (Xinxiang) Xinxiang) Xinxiang) 100.00%
sales established
Co., Ltd.
Guangdong Fozhao Newly
Foshan Foshan Finance lease 100.00%
Leasing Co., Ltd. established
Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% Acquired
sales
Manufacturing Co.,
Ltd.
FSL Zhida Electric Production and Newly
Foshan Foshan 51.00%
Technology Co., Ltd. sales established
Production and Newly
FSL Lighting GmbH） Germany Germany 100.00%
sales established
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
The profit or loss Declaring dividends Balance of
Shareholding proportion
attributable to the distributed to non-controlling
Name of non-controlling
non-controlling non-controlling shareholders at the
shareholders
shareholders shareholders period-end
Foshan Taimei Times
Lamps and Lanterns Co., 30.00% 1,063,485.63 7,656,339.44
Ltd.
FSL Zhida Electric
49.00% 1,833,744.04 15,760,550.63
Technology Co., Ltd.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning 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
Taimei 57,511,7 16,910,0 74,421,7 48,900,6 48,900,6 74,373,9 15,493,3 89,867,3 67,891,1 67,891,1
Times 14.36 24.47 38.83 07.37 07.37 86.81 51.95 38.76 59.40 59.40
Lamps
85
and
Lanterns
Co., Ltd.
FSL
Zhida
Electric 87,826,8 10,663,6 98,490,5 51,234,2 51,234,2 89,763,0 10,457,8 100,220, 56,707,0 56,707,0
Technolo 82.64 20.19 02.83 77.06 77.06 66.89 49.42 916.31 25.32 25.32
gy Co.,
Ltd.
Unit: RMB
Reporting Period Same period of last year
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
Foshan
Taimei Times
73,606,152.8 11,967,649.4 82,641,917.3 23,327,544.4
Lamps and 3,544,952.10 3,544,952.10 2,008,910.10 2,008,910.10
7 2 2 9
Lanterns Co.,
Ltd.
FSL Zhida
Electric 56,884,635.5 66,773,802.1 -3,415,460.1
3,742,334.78 3,742,334.78 -6,170,821.36 5,689,066.62 5,689,066.62
Technology 4 5 7
Co., Ltd.
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated 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 the Owner’s Equity Share Changed in Subsidiary
Naught
86
(2) The Transaction’s Influence on the Equity of Non-controlling Shareholders and the Owner's Equity
Attributable to the Company as the Parent
Naught
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught
(2) Main Financial Information of Significant Joint Ventures
Naught
(3) Main Financial Information of Significant Associated Enterprise
Naught
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/The same period of last
Ending balance/Reporting Period
year
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
Total carrying value of investments 176,473,300.95 179,414,105.14
The total of following items according to the
-- --
shareholding proportions
--net profit 179,781.56 1,543,965.79
--total comprehensive income 179,781.56 1,543,965.79
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught
87
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught
4. Significant Common Operation
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Naught
6. Other
Naught
X. The Risk Related to 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 Ⅶ.
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.
(I) 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.
(II) 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.
(III) Market risk
88
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.
1. Exchange rate risk
Exchange rate risk was referred to risk of possible losses due to changes of exchange rate. The exchange rate risk
undertaken by the Company was mainly generated from USD and EUR. On 30 June 2018, all assets and liabilities
of the Company were balances in RMB except that the balances of assets and liabilities presented in the Note VII
(79) Foreign Currency Monetary Items were in USD and EUR. The exchange rate risk generated from those
balance of assets and liabilities in foreign currency might influence the running performance of the Company to
some extent.
The Company made efforts to avoid exchange rate risk through forward exchange settlement, improving
operation management and promoting the international competitiveness of the Company, etc.
2. 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
3. Other price risk
Naught
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending 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
(I)Available-for-sale
706,985,098.14 706,985,098.14
financial assets
(1) equity instrument
706,985,098.14 706,985,098.14
investment
The total amount of assets
consistently measured at 706,985,098.14 706,985,098.14
fair value
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
In line with the market price of shares on the balance sheet date
89
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 Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Naught
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Naught
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Naught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Naught
9. Other
Naught
XII. Connected Party and Connected Transaction
1. Information Related to the Company as the Parent of the Company
Proportion of share Proportion of voting
held by the rights owned by the
Name Registration place Nature of business Registered capital Company as the Company as the
parent against the parent against the
Company (%) Company (%)
Hong Kong Wah
Shing Holding Hong Kong Investment HKD110,000 13.47% 13.47%
Company Limited
Shenzhen Rising Shenzhen Investment RMB120 million 5.12% 5.12%
90
Investment
Development Co.,
Ltd.
Guangdong
Electronics
Guangzhou Sales & Production RMB462 million 4.74% 4.74%
Information Industry
Group Ltd.
Rising Investment
Development Co., Hong Kong Investment HKD1 million 1.82% 1.82%
Ltd.
Guangdong Rising
Finance Holding Co., Zhuhai Investment RMB1393 million 0.54% 0.54%
Ltd.
Total 25.70% 25.70%
Notes: Information on the Company as the parent of the Company:
The largest shareholder of the Company, Hong Kong Wah Shing Holding Co., Ltd., was the wholly-owned
subsidiary of Electronics Group, and Electronics Group, Shenzhen Rising Investment Development Co., Ltd.
( Hereinafter referred to as " Shenzhen Rising " ), Guangdong Rising Finance Holding Co., Ltd. ( Hereinafter
referred to as GD Rising Finance) and Rising Investment Development Co., Ltd. ( Hereinafter referred to as "
Rising Investment" ) were the wholly-owned subsidiaries of Guangdong Rising Assets Management Co., Ltd.
(Hereinafter referred to as “Rising Company”). In line with the relevant stipulation of Corporation Law and Rules
on Listed Companies Acquisition, Electronics Group, Shenzhen Rising and Rising Investment were persons acting
in concert, and the Rising Company was the actual controller of the Company. As of 30 June 2018, the aforesaid
persons acting in concert holding total A, B share of the Company 359,632,344 shares, 25.70 % of total share
equity of the Company. Guangdong Rising Assets Management Co., Ltd. became the actual controller of the
Company.
The final controller of the Company was Guangdong Rising Assets Management Co., Ltd.
2. Subsidiaries of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Subsidiary for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Joint Ventures or Associated Enterprises for details of
significant joint ventures or associated enterprises of the Company.
4. Information on Other Connected Parties
Name Relationship with the Company
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
Foshan NationStar Optoelectronics Co. Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology Holding Co., Ltd. Under same actual controller
Guangdong Rising Optoelectronics Co., Ltd. Under same actual controller
91
Guangdong Rising Data Solid State Disk Co., Ltd. Under same actual controller
Guangdong Huayuebao New Energy Co., Ltd. Under same actual controller
Guangdong Rising Finance Limited Under same actual controller
Guangdong Zhongke Hongwei Semiconductor Equipment Co.,
Under same actual controller
Ltd.
Hangzhou Times Lighting and Electrical Co., Ltd. Company controlled by related natural person
Henan Rising Technology Investment Co., Ltd. Under same actual controller
Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. Company controlled by related natural person
Prosperity Electrical (China) Co., Ltd. Company controlled by related natural person
Company controlled by related natural person with significant
OSRAM (China) Lighting Co., Ltd.
influence
Guangdong Electronic Technology Research Institute Under same actual controller
5. List of Connected Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Connected party Content Reporting Period
credit credit or not year
Prosperity Lamps
Purchase of
and Components 3,844,498.14 6,000,000.00 No 670,457.93
materials
Ltd.
Prosperity Electrical Purchase of
729,882.89 0.00 -32,104.28
(China) Co., Ltd. materials
Hangzhou Times
Purchase of
Lighting and 368,916.04 2,000,000.00 No 1,138,676.40
materials
Electrical Co., Ltd.
Foshan Nation Star
Purchase of
Optoelectronics Co., 43,595,754.55 200,000,000.00 No 38,972,909.25
materials
Ltd.
Guangdong
Fenghua Advanced Purchase of
5,172,863.77 11,000,000.00 No 4,100,354.77
Technology Holding materials
Co., Ltd.
Guangdong HYB
Purchase of
New Energy Co., 0.00 933,432.24
materials
Ltd.
Guangdong
Electronic Purchase of
760,683.76 3,000,000.00 No
Technology equipment
Research Institute
MTM Purchase of 323,282.05 1,000,000.00 No 164,400.00
92
Semiconductor equipment
Equipment Co., Ltd.
Guangdong Rising
Purchase of
Data Solid State 1,600,000.00 0.00
equipment
Disk Co., Ltd.
Total 56,395,881.20 No 45,948,126.31
Information of sales of goods and provision of labor service
Unit: RMB
Connected party Content Reporting Period Same period of last year
Prosperity Lamps and
Sale of products 18,871,809.73 14,820,551.42
Components Ltd.
Prosperity (Hangzhou) Lighting
Sale of products 46,299.15 38,649.58
and Electrical Co., Ltd.
Prosperity Electrical (China) Co.,
Sale of products 175,397.67 177,652.13
Ltd.
Foshan Nation Star
Sale of products 3,353.85
Optoelectronics Co., Ltd.
Hangzhou Times Lighting and
Sale of products 25,852.99
Electrical Co., Ltd.
Guangdong Rising
Sale of products 568.97
Optoelectronics Co., Ltd.
Total 19,094,075.52 15,066,059.97
(2) Information on Connected Trusteeship/Contract
Naught
(3) Information on Connected Lease
The Company was lessor:
Naught
The Company was lessee:
Unit: RMB
The lease fee confirmed in the The lease fee confirmed in the
Name of lessor Category of leased assets
Reporting Period same period of last year
Guangdong Electronics
Vehicles 8,333.31
Information Industry Group Ltd.
(4) Information on Connected Guarantee
Naught
93
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Connected Party
Naught
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Chairman of the Board 0.00 0.00
Director & GM 700,000.00 700,000.00
Chairman of the Supervisor 0.00 0.00
Secretary of the Board 400,000.00 400,000.00
CFO 400,000.00 400,000.00
Other 2,695,000.00 2,671,500.00
Total 4,195,000.00 4,171,500.00
(8) Other Connected Transactions
Naught
6. Accounts Receivable and Payable of Connected Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Connected party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Guangdong Rising
Interest receivable 1,622,133.34
Finance Co., Ltd.
Prosperity (Hangzhou)
Accounts receivable Lighting and Electrical 86,367.27 68,983.64 86,367.27 43,183.64
Co., Ltd.
Guangzhou Diansheng
Accounts receivable Property Management 660.00 19.80
Co., Ltd.
Prosperity Lamps and
Accounts receivable 8,037,364.18 241,120.93 4,487,199.01 134,615.97
Components Ltd.
OSRAM (China) Lighting
Accounts receivable 117,554.16 19,740.45 117,554.16 11,755.42
Co., Ltd.
Other accounts Henan Rising High-tech 117,000.00 117,000.00
94
receivable Investment Co., Ltd.
Guangdong Electronics
Other accounts
Information Industry 5,000.00 150.00 5,000.00 500.00
receivable
Group Ltd.
MTM Semiconductor
Prepayment 221,368.00 141,840.00
Equipment Co., Ltd.
Prosperity Electrical
Prepayment 7,521.37 7,521.37
(China) Co., Ltd.
Total 8,475,834.98 330,014.82 6,584,615.15 307,055.03
(2) Accounts Payable
Unit: RMB
Item Connected party Ending carrying amount Beginning carrying amount
Prosperity Lamps and
Accounts payable 3,359,930.74 529,296.77
Components Ltd.
Prosperity Electrical (China) Co.,
Accounts payable 1,026,400.70 204,381.06
Ltd.
Foshan Nation Star
Accounts payable 22,430,878.36 27,606,272.62
Optoelectronics Co., Ltd.
Hangzhou Times Lighting and
Accounts payable 138,597.54 467,927.45
Electrical Co., Ltd.
Guangdong Fenghua Advanced
Accounts payable 2,035,725.44 1,806,876.22
Technology Holding Co., Ltd.
Prosperity Lamps and
Other accounts payable 463,625.16 438,666.14
Components Ltd.
Prosperity Electrical (China) Co.,
Other accounts payable 100,000.00 100,000.00
Ltd.
MTM Semiconductor
Other accounts payable 54,624.00 102,484.00
Equipment Co., Ltd.
Guangdong Electronic
Other accounts payable 89,000.00
Technology Research Institute
Guangdong Electronics
Other accounts payable 2,777.76 11,111.12
Information Industry Group Ltd.
Prosperity Electrical (China) Co.,
Advances from customers 40,279.46 45,694.74
Ltd.
Total 29,741,839.16 31,312,710.12
7. Commitments of Connected Party
(1)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About avoidance of horizontal competition
95
Contents: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that the elimination of the horizontal competition between Foshan
NationStar Optoelectronics Co., Ltd. and the Company through business integration or other ways or
arrangements shall be completed before December 4, 2019.
Date of commitment making: 4 December 2017
Term of commitment: 24 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
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
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: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(3)
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
96
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: 4 December 2015
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 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 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, an 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
97
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: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
8. Other
Naught
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□ Applicable □ Not applicable
2. The Stock Payment Settled in Equity
□ Applicable □ Not applicable
3. The Stock Payment Settled in Cash
□ Applicable □ Not applicable
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Naught
2. Contingency
(1) Significant Contingency on Balance Sheet Date
Naught
98
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught
2. Profit Distribution
Naught
3. Sales Return
Naught
4. Notes to Other Events after Balance Sheet Date
Naught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
Naught
2. Debt Restructuring
Naught
3. Assets Replacement
Naught
4. Pension Plan
Naught
99
5. Discontinued Operations
Naught
6. Segment Information
Naught
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught
8. Other
Naught
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra
Category Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Accounts receivable
with significant single
9,975,96 9,975,96 10,061, 10,061,64
amount for which 0.97% 100.00% 1.26% 100.00%
8.91 8.91 641.64 1.64
bad debt provision
separately accrued
Accounts receivable
withdrawal of bad
1,017,59 45,420,0 972,172,1 785,497 38,067,10 747,430,15
debt provision of by 99.03% 4.46% 98.74% 4.85%
2,180.55 12.21 68.34 ,260.78 1.17 9.61
credit risks
characteristics:
1,027,56 55,395,9 972,172,1 795,558 48,128,74 747,430,15
Total 100.00% 5.39% 100.00% 6.05%
8,149.46 81.12 68.34 ,902.42 2.81 9.61
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end:
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable（by Ending balance
unit） Accounts receivable Bad debt provision Withdrawal proportion Withdrawal reason
100
The debtor is not
qualified to continuously
Suzhou Mont Lighting Co., produce for the time
9,975,968.91 9,975,968.91 100.00%
Ltd. being for continuing
losses caused by the
scale and market.
Total 9,975,968.91 9,975,968.91 -- --
In the groups, accounts receivable adopted aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 939,833,869.32 28,195,016.08 3.00%
Subtotal of within 1 year 939,833,869.32 28,195,016.08 3.00%
1 to 2 years 31,496,786.31 3,149,678.63 10.00%
2 to 3 years 5,826,031.83 1,747,809.55 30.00%
3 to 4 years 795,562.73 397,781.36 50.00%
4 to 5 years 11,179,760.17 8,943,808.14 80.00%
Over 5 years 2,985,918.45 2,985,918.45 100.00%
Total 992,117,928.81 45,420,012.21 4.58%
Notes to the determination basis for the group:
In the groups, accounts receivable adopted balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopted other methods to withdraw bad debt provision:
Unit: RMB
Ending balance
Name of the group
Accounts receivable Bad debt provision Withdrawal reason
Internal business group 25,474,251.74 0.00 Intercourse fund among
subsidiaries was not withdrawn
Total 25,474,251.74 0.00
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB7,267,309.90; the
amount of the reversed or collected part during the Reporting Period was of RMB 0.00.
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Other driblet small amount 71.59
Total 71.59
101
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
Proportion to the Ending balance of
Relationship with ending balance of bad debt provision
Name Ending balance Aging
the Company accounts receivable
(%)
Non-connected Within 1 year
No. 1 191,461,593.37 18.63% 5,743,847.80
party
Non-connected Within 1 year
No. 2 20,371,305.32 1.98% 611,139.16
party
Non-connected Within 1 year
No. 3 19,409,126.02 1.89% 582,273.78
party
Non-connected Within 2 years
No. 4 18,329,030.59 1.78% 612,257.46
party
Non-connected Within 1 year
No. 5 15,148,133.08 1.47% 454,443.99
party
Total -- 264,719,188,.38 -- 25.76% 8,003,962.19
(5) Accounts Receivable Derecognized due to the Transfer of Financial Assets
Naught
(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts Receivable
Naught
2. Other Accounts Receivable
(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra
Category Carrying Carrying
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Other accounts
receivable withdrawn
75,245,8 3,081,28 72,164,53 44,939, 2,764,316 42,174,877.
bad debt provision 99.61% 4.09% 99.35% 6.15%
16.55 0.64 5.91 194.60 .71 89
according to credit
risks characteristics
102
Other accounts
receivable with
insignificant single 295,120. 295,120. 295,120 295,120.0
0.39% 100.00% 0.65% 100.00%
amount for which 00 00 .00 0
bad debt provision
separately accrued
75,540,9 3,376,40 72,164,53 45,234, 3,059,436 42,174,877.
Total 100.00% 4.47% 100.00% 6.76%
36.55 0.64 5.91 314.60 .71 89
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 adopted aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 31,953,716.08 958,611.48 3.00%
Subtotal of within 1 year 31,953,716.08 958,611.48 3.00%
1 to 2 years 3,353,071.99 335,307.20 10.00%
2 to 3 years 167,542.81 50,262.84 30.00%
3 to 4 years 3,088,998.23 1,544,499.12 50.00%
4 to 5 years 2,000.00 1,600.00 80.00%
Over 5 years 191,000.00 191,000.00 100.00%
Total 38,756,329.11 3,081,280.64 7.95%
Notes to the determination basis for the Group:
In the groups, other accounts receivable adopted balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopted other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Ending balance
Name of the group
Other accounts receivable Bad debt provision Withdrawal reason
Internal business group 36,489,487.44 0.00 Intercourse fund among
subsidiaries was not withdrawn
Total 36,489,487.44 0.00
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB 316,963.93; the
amount of the reversed or collected part during the Reporting Period was of RMB0.00.
Naught
103
(3) Other Account Receivable Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Internal business group 36,784,607.44 21,987,838.89
VAT export tax refunds 18,007,536.67 5,712,812.04
Performance bond 4,007,646.20 4,377,639.20
Staff borrowings and petty cash 8,029,988.61 4,142,205.92
Rental fees and Water & electricity fees 420,000.59 1,293,281.97
Advance money for street light construction 3,777,672.16 3,777,672.16
Other 4,513,484.88 3,942,864.42
Total 75,540,936.55 45,234,314.60
(4) The Top Five Other Account Receivable Classified by Debtor at Period-end
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other accounts bad debt provision
receivable
VAT export tax 18,007,536.67 23.84% 540,226.10
No. 1 Within 1 year
refunds
Advance money for 3,777,672.16 5.00% 1,299,397.36
No. 2 street light Within 4 years
construction
No. 3 Others 2,122,656.00 Within 1 year 2.81% 63,679.68
No. 4 Margin 2,098,341.00 1 to 2 years 2.78% 209,834.10
No. 5 Provident fund 1,270,550.18 Within 1 year 1.68% 38,116.51
Total -- 27,276,756.01 -- 36.11% 2,151,253.75
(5) Account Receivable Involving Government Subsidies
Naught
(6) Other Accounts Receivable Derecognized due to the Transfer of Financial Assets
Naught
(7) Amount of Assets and Liabilities Generated from the Transfer and Continuous Involvement of Other
Accounts Receivable
Naught
104
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
508,153,102.26 24,360,000.00 483,793,102.26 508,153,102.26 24,360,000.00 483,793,102.26
subsidiaries
Investment to
joint ventures
176,473,300.95 176,473,300.95 179,414,105.14 179,414,105.14
and associated
enterprises
Total 684,626,403.21 24,360,000.00 660,266,403.21 687,567,207.40 24,360,000.00 663,207,207.40
(1) Investment to the Subsidiary
Unit: RMB
Depreciation Ending balance of
Beginning
Investee Increase Decrease Ending balance reserve depreciation
balance
withdrawn reserve
Foshan Chansheng
Electronic Ballast 2,744,500.00 2,744,500.00
Co., Ltd.
FSL Chanchang
Optoelectronics 82,507,350.00 82,507,350.00
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 (Xinxiang) 35,418,439.76 35,418,439.76
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 Financing
105
Leasing Co., Ltd.
Foshan Lighting
Lamps &
15,000,000.00 15,000,000.00
Components Co.,
Ltd.
FSL Zhida Electric
Technology Co., 25,500,000.00 25,500,000.00
Ltd.
FSL Lighting
195,812.50 195,812.50
GMBH
Suzhou Mont
24,360,000.00 24,360,000.00 24,360,000.00
Lighting Co., Ltd.
Total 508,153,102.26 508,153,102.26 24,360,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Gains and Ending
Adjustme
losses Cash Withdraw balance
Additiona nt of
Beginning Reduced recognize Changes bonus or al of Ending of
Investee l other
balance investme d under of other profits impairme Other balance depreciati
investme comprehe
nt the equity announce nt on
nt nsive
equity d to issue provision reserve
income
method
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
ix 179,414,1 179,781.5 3,120,585 176,473,3
(Nanho) 05.14 6 .75 00.95
Electronic
s Ltd.
179,414,1 179,781.5 3,120,585 176,473,3
Subtotal
05.14 6 .75 00.95
179,414,1 179,781.5 3,120,585 176,473,3
Total
05.14 6 .75 00.95
(3)Other Notes
Naught
106
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1,951,987,821.57 1,545,234,231.64 1,932,419,061.23 1,513,940,853.47
Other operations 52,300,623.19 42,160,088.89 47,777,343.06 36,016,802.63
Total 2,004,288,444.76 1,587,394,320.53 1,980,196,404.29 1,549,957,656.10
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
179,781.56 1,543,965.79
accounted by equity method
Investment income from the holding of
10,971,417.60 6,560,422.50
available-for-sale financial assets
Income received from financial products and
9,886,641.16 5,299,088.41
structural deposits
Other -500,000.22
Total 21,037,840.32 12,903,476.48
6. Other
Nought
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses on the disposal of non-current
-70,182.97
assets
Government subsidies recorded into the
current gains and losses (excluding the
government subsidies that are closely
914,699.96
relative to business and enjoyed in normed
way or quantitatively in accordance with the
national standards)
Other non-operating income and expense
633,590.02
other than the above
Less: Income tax effects 228,691.99
107
Non-controlling interests effects 195.91
Total 1,249,219.11 --
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Non-recurring 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 ordinary
5.32% 0.1638 0.1638
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
5.29% 0.1630 0.1630
deduction of non-recurring profit
and loss
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 any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Naught
4. Other
Naught
108
109
