Foshan Electrical and Lighting Co., Ltd.
The semi-annual financial report 2019
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Financial Statements
I Auditor’s Report
Whether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.
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.
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
Monetary capital 829,509,716.65 896,646,719.87
Settlement reserve
Interbank loans granted
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 135,766,529.32 107,506,613.50
Accounts receivable 765,827,365.76 834,420,596.05
Financing backed by accounts
receivable
Prepayments 11,891,130.86 13,811,905.18
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 27,065,266.07 21,745,690.53
Including: Interest receivable 5,828,623.70 5,152,364.04
Dividends receivable
1
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Financial assets purchased under
resale agreements
Inventories 644,986,460.94 767,319,599.00
Contract assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 913,945,157.63 864,093,663.30
Total current assets 3,328,991,627.23 3,505,544,787.43
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Available-for-sale financial assets 897,716,590.20
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 180,122,685.92 182,458,559.69
Investments in other equity
964,212,719.39
instruments
Other non-current financial assets
Investment property
Fixed assets 586,093,658.59 512,106,912.39
Construction in progress 158,184,271.59 224,624,447.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 170,510,917.01 172,725,277.21
R&D expense
Goodwill
Long-term prepaid expense 8,361,600.95 6,852,985.35
Deferred income tax assets 34,504,330.96 37,831,704.45
Other non-current assets 47,366,671.02 48,305,435.42
Total non-current assets 2,149,356,855.43 2,082,621,911.87
Total assets 5,478,348,482.66 5,588,166,699.30
Current liabilities:
Short-term borrowings
2
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Borrowings from central bank
Interbank loans obtained
Trading financial liabilities 1,473,400.00
Financial liabilities at fair value
477,200.00
through profit or loss
Derivative financial liabilities
Notes payable 375,906,405.75 452,683,676.97
Accounts payable 508,983,045.12 532,597,143.95
Advances from customers 35,916,666.09 43,850,788.04
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Payroll payable 64,798,848.43 96,088,621.59
Taxes payable 28,472,607.76 25,354,466.37
Other payables 47,164,268.80 43,115,011.68
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Contract liabilities
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,062,715,241.95 1,194,166,908.60
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
3
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income 77,500.35 155,000.31
Deferred income tax liabilities 63,404,928.38 52,530,509.00
Other non-current liabilities
Total non-current liabilities 63,482,428.73 52,685,509.31
Total liabilities 1,126,197,670.68 1,246,852,417.91
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 158,608,173.07 158,608,173.07
Less: Treasury stock
Other comprehensive income 359,303,760.45 297,667,872.80
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
General reserve
Retained earnings 1,603,158,758.12 1,654,181,032.39
Total equity attributable to owners of
4,329,873,031.84 4,319,259,418.46
the Company as the parent
Non-controlling interests 22,277,780.14 22,054,862.93
Total owners’ equity 4,352,150,811.98 4,341,314,281.39
Total liabilities and owners’ equity 5,478,348,482.66 5,588,166,699.30
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2019 31 December 2018
Current assets:
4
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Monetary capital 777,873,712.87 848,949,693.91
Trading financial assets
Financial assets at fair value through
profit or loss
Derivative financial assets
Notes receivable 134,345,022.32 104,945,398.61
Accounts receivable 709,370,406.65 795,897,932.65
Financings backed by accounts
receivable
Prepayments 26,317,689.21 25,444,445.34
Other receivables 49,579,918.55 43,538,848.72
Including: Interest receivable 5,828,623.70 5,152,364.04
Dividends receivable
Inventories 575,485,441.72 692,681,479.03
Contract assets
Assets classified as held for sale
Current portion of non-current assets
Other current assets 908,608,201.81 856,504,839.81
Total current assets 3,181,580,393.13 3,367,962,638.07
Non-current assets:
Investments in debt obligations
Available-for-sale financial assets 897,716,590.20
Investments in other debt obligations
Held-to-maturity investments
Long-term receivables
Long-term equity investments 463,915,788.18 466,251,661.95
Investments in other equity
964,212,719.39
instruments
Other non-current financial assets
Investment property
Fixed assets 528,301,991.89 427,947,613.74
Construction in progress 156,307,643.11 222,570,503.14
Productive living assets
Oil and gas assets
Right-of-use assets
5
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Intangible assets 127,512,566.55 129,452,067.42
R&D expense
Goodwill
Long-term prepaid expense 5,477,080.74 5,106,268.25
Deferred income tax assets 32,238,587.52 35,908,741.15
Other non-current assets 45,858,121.02 46,852,235.42
Total non-current assets 2,323,824,498.40 2,231,805,681.27
Total assets 5,505,404,891.53 5,599,768,319.34
Current liabilities:
Short-term borrowings
Trading financial liabilities 1,473,400.00
Financial liabilities at fair value
477,200.00
through profit or loss
Derivative financial liabilities
Notes payable 375,906,405.75 452,683,676.97
Accounts payable 668,029,057.46 681,490,174.69
Advances from customers 31,494,990.99 41,912,301.85
Contract liabilities
Payroll payable 53,654,091.41 84,220,746.16
Taxes payable 26,618,163.16 17,528,644.83
Other payables 129,244,340.97 114,073,355.23
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets classified as held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,286,420,449.74 1,392,386,099.73
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
6
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax liabilities 63,404,928.38 52,530,509.00
Other non-current liabilities
Total non-current liabilities 63,404,928.38 52,530,509.00
Total liabilities 1,349,825,378.12 1,444,916,608.73
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 166,211,779.15 166,211,779.15
Less: Treasury stock
Other comprehensive income 359,294,594.15 297,672,884.34
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,421,270,799.91 1,482,164,706.92
Total owners’ equity 4,155,579,513.41 4,154,851,710.61
Total liabilities and owners’ equity 5,505,404,891.53 5,599,768,319.34
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
Item H1 2019 H1 2018
1. Revenue 1,687,184,660.86 2,064,779,289.99
Including: Operating revenue 1,687,184,660.86 2,064,779,289.99
Interest income
Premium income
Handling charge and
commission income
2. Costs and expenses 1,529,073,323.52 1,796,559,951.51
Including: Cost of sales 1,297,336,713.77 1,579,291,867.89
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Interest expense
Handling charge and
commission expense
Surrenders
Net claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 20,836,268.74 21,962,518.24
Selling expense 123,410,566.38 103,917,010.47
Administrative expense 67,537,179.69 85,530,538.74
R&D expense 29,860,632.61 18,943,492.78
Finance costs -9,908,037.67 -13,085,476.61
Including: Interest
expense
Interest
income
Add: Other income 5,523,870.00 1,018,385.17
Return on investment (“-” for loss) 43,839,659.74 24,509,870.36
Including: Share of profit or loss
784,711.98 179,781.56
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Foreign exchange gain (“-” for
loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-996,200.00
for loss)
Credit impairment loss (“-” for
-1,036,971.94
loss)
Asset impairment loss (“-” for loss) -12,239,244.21 -16,006,869.83
Asset disposal income (“-” for
8
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
loss)
3. Operating profit (“-” for loss) 193,202,450.93 277,740,724.18
Add: Non-operating income 1,941,872.57 1,669,856.43
Less: Non-operating expense 478,391.97 191,749.42
4. Profit before tax (“-” for loss) 194,665,931.53 279,218,831.19
Less: Income tax expense 27,167,288.57 47,044,145.70
5. Net profit (“-” for net loss) 167,498,642.96 232,174,685.49
5.1 By operating continuity
5.1.1 Net profit from continuing
167,498,642.96 232,174,685.49
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
167,275,725.75 229,277,455.82
owners of the Company as the parent
5.2.1 Net profit attributable to
222,917.21 2,897,229.67
non-controlling interests
6. Other comprehensive income, net of
61,635,887.65 -322,975,351.39
tax
Attributable to owners of the Company
61,635,887.65 -322,975,351.39
as the parent
6.1 Items that will not be
61,621,709.81
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
61,621,709.81
investments in other equity instruments
6.1.4 Changes in the fair value of
the company’s credit risks
6.1.5 Other
6.2 Items that will be reclassified to
14,177.84 -322,975,351.39
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
9
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -322,972,909.70
assets
6.2.4 Other comprehensive
income arising from the reclassification
of financial assets
6.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale financial
assets
6.2.6 Allowance for credit
impairments in investments in other debt
obligations
6.2.7 Reserve for cash flow
hedges
6.2.8 Differences arising from the
translation of foreign
14,177.84 -2,441.69
currency-denominated financial
statements
6.2.9 Other
Attributable to non-controlling
interests
7. Total comprehensive income 229,134,530.61 -90,800,665.90
Attributable to owners of the Company
228,911,613.40 -93,697,895.57
as the parent
Attributable to non-controlling
222,917.21 2,897,229.67
interests
8. Earnings per share
8.1 Basic earnings per share 0.1195 0.1638
8.2 Diluted earnings per share 0.1195 0.1638
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 last year being RMB0.00 .
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2019 H1 2018
1. Operating revenue 1,635,659,167.96 2,004,288,444.76
Less: Cost of sales 1,284,411,581.81 1,587,394,320.53
Taxes and surcharges 17,949,984.61 17,214,406.11
Selling expense 114,023,284.09 91,117,192.72
Administrative expense 58,470,337.78 77,627,911.90
R&D expense 28,129,639.08 18,613,246.57
Finance costs -9,671,203.12 -12,655,059.12
Including: Interest expense
Interest income
Add: Other income 5,323,870.00 561,343.06
Return on investment (“-” for
44,169,887.94 21,037,840.32
loss)
Including: Share of profit or
784,711.98 179,781.56
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-996,200.00
for loss)
Credit impairment loss (“-” for
-99,161.29
loss)
Asset impairment loss (“-” for
-11,804,419.91 -15,224,655.05
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 178,939,520.45 231,350,954.38
Add: Non-operating income 1,748,491.88 1,572,451.59
Less: Non-operating expense 387,894.46 164,104.09
3. Profit before tax (“-” for loss) 180,300,117.87 232,759,301.88
Less: Income tax expense 22,896,024.86 32,947,939.09
4. Net profit (“-” for net loss) 157,404,093.01 199,811,362.79
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
4.1 Net profit from continuing
157,404,093.01 199,811,362.79
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
61,621,709.81 -322,972,909.70
tax
5.1 Items that will not be reclassified
61,621,709.81
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
pension schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
61,621,709.81
investments in other equity instruments
5.1.4 Changes in the fair value of
the company’s credit risks
5.1.5 Other
5.2 Items that will be reclassified to
-322,972,909.70
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Gain/Loss on changes in the
fair value of available-for-sale financial -322,972,909.70
assets
5.2.4 Other comprehensive income
arising from the reclassification of
financial assets
5.2.5 Gain/Loss arising from the
reclassification of held-to-maturity
investments to available-for-sale
financial assets
5.2.6 Allowance for credit
impairments in investments in other
debt obligations
12
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
5.2.7 Reserve for cash flow hedges
5.2.8 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.9 Other
6. Total comprehensive income 219,025,802.82 -123,161,546.91
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 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,751,423,769.24 1,769,237,743.67
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans
obtained
Net increase in proceeds from
repurchase transactions
Net proceeds for acting trading of
13
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
securities
Tax rebates 48,922,234.35 47,287,499.42
Cash generated from other operating
45,162,461.57 33,545,832.35
activities
Subtotal of cash generated from
1,845,508,465.16 1,850,071,075.44
operating activities
Payments for commodities and
1,126,149,726.07 1,131,421,056.92
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
Net increase in financial assets held
for trading
Net increase in interbank loans
granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 322,785,746.27 339,556,840.55
Taxes paid 94,770,787.34 137,020,623.78
Cash used in other operating
111,120,372.00 97,348,775.81
activities
Subtotal of cash used in operating
1,654,826,631.68 1,705,347,297.06
activities
Net cash generated from/used in
190,681,833.48 144,723,778.38
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 6,000,000.00 660,000,000.00
Return on investment 48,172,890.30 34,539,472.29
Net proceeds from the disposal of
fixed assets, intangible assets and other 40,834.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
14
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
activities
Subtotal of cash generated from
54,213,724.30 694,539,472.29
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 18,563,706.98 90,700,439.05
long-lived assets
Payments for investments 35,000,000.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
3,304,699.80
activities
Subtotal of cash used in investing
53,563,706.98 94,005,138.85
activities
Net cash generated from/used in
650,017.32 600,534,333.44
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings obtained
Net proceeds from issuance of bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends 218,298,000.02 405,163,764.00
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
activities
Subtotal of cash used in financing
218,298,000.02 405,163,764.00
activities
Net cash generated from/used in
-218,298,000.02 -405,163,764.00
financing activities
4. Effect of foreign exchange rate
-1,156,757.42 1,385,343.10
changes on cash and cash equivalents
15
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
5. Net increase in cash and cash
-28,122,906.64 341,479,690.92
equivalents
Add: Cash and cash equivalents,
795,285,756.38 570,184,208.96
beginning of the period
6. Cash and cash equivalents, end of the
767,162,849.74 911,663,899.88
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 2019 H1 2018
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,691,951,258.99 1,712,676,401.03
and rendering of services
Tax rebates 48,910,795.69 47,263,864.23
Cash generated from other operating
34,052,232.29 26,388,452.49
activities
Subtotal of cash generated from
1,774,914,286.97 1,786,328,717.75
operating activities
Payments for commodities and
1,178,508,853.41 1,263,659,844.11
services
Cash paid to and for employees 244,677,337.79 209,185,383.63
Taxes paid 65,955,849.88 87,060,201.23
Cash used in other operating
100,456,711.55 85,851,338.88
activities
Subtotal of cash used in operating
1,589,598,752.63 1,645,756,767.85
activities
Net cash generated from/used in
185,315,534.34 140,571,949.90
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 6,000,000.00 440,000,000.00
Return on investment 48,503,118.50 30,667,499.69
Net proceeds from the disposal of
fixed assets, intangible assets and other 40,330.00
long-lived assets
Net proceeds from the disposal of
16
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
54,543,448.50 470,667,499.69
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 17,446,155.95 85,557,155.41
long-lived assets
Payments for investments 35,000,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
3,304,699.80
activities
Subtotal of cash used in investing
52,446,155.95 88,861,855.21
activities
Net cash generated from/used in
2,097,292.55 381,805,644.48
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings obtained
Net proceeds from the issuance of
bonds
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayments of borrowings
Payments for interest and dividends 218,298,000.02 405,163,764.00
Cash used in other financing
activities
Subtotal of cash used in financing
218,298,000.02 405,163,764.00
activities
Net cash generated from/used in
-218,298,000.02 -405,163,764.00
financing activities
4. Effect of foreign exchange rate
-1,176,711.33 1,384,289.90
changes on cash and cash equivalents
5. Net increase in cash and cash
-32,061,884.46 118,598,120.28
equivalents
17
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Add: Cash and cash equivalents,
747,588,730.42 502,169,100.40
beginning of the period
6. Cash and cash equivalents, end of the
715,526,845.96 620,767,220.68
period
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
H1 2019
Equity attributable to owners of the Company as the parent
Other equity Other Non-c
Total
instruments Less: compr Surplu Retain ontroll
Item Share Capital Specifi Genera owners
Treasu ehensi s ed Subtot ing
capita Prefe Perpe reserve c l Other ’
ry ve reserve earnin al interes
l rred tual s reserve reserve equity
share bond Other stock incom s gs ts
s s
e
1,399
1. Balances as 158,60 297,66 809,45 1,654, 4,319, 22,054 4,341,
,346,
at the end of the 8,173. 7,872. 6,186. 181,03 259,41 ,862.9 314,28
154.0
prior year 07 80 20 2.39 8.46 3 1.39
0
Add:
Adjustments for
changed
accounting
policies
Adjustments
for corrections
of previous
errors
Adjustments
for business
combinations
under common
control
Other
adjustments
2. Balances as 1,399 158,60 297,66 809,45 1,654, 4,319, 22,054 4,341,
at the beginning ,346, 8,173. 7,872. 6,186. 181,03 259,41 ,862.9 314,28
18
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
of the year 154.0 07 80 20 2.39 8.46 3 1.39
0
3. Increase/
61,635 -51,02 10,613 10,836
decrease in the 222,91
,887.6 2,274. ,613.3 ,530.5
period (“-” for 7.21
5 27 8 9
decrease)
3.1 Total 61,635 167,27 228,91 229,13
222,91
comprehensive ,887.6 5,725. 1,613. 4,530.
7.21
income 5 75 40 61
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
3.2.4 Other
-218,2 -218,2 -218,2
3.3 Profit
98,000 98,000 98,000
distribution
.02 .02 .02
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3 -218,2 -218,2 -218,2
19
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Appropriation 98,000 98,000 98,000
to owners (or .02 .02 .02
shareholders)
3.3.4 Other
3.4 Transfers
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 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
20
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
in the period
3.6 Other
1,399
4. Balances as 158,60 359,30 809,45 1,603, 4,329, 22,277 4,352,
,346,
at the end of the 8,173. 3,760. 6,186. 158,75 873,03 ,780.1 150,81
154.0
period 07 45 20 8.12 1.84 4 1.98
0
H1 2018
Unit: RMB
H1 2018
Equity attributable to owners of the Company as the parent
Other equity Other Non-co
instruments Less: compr Surplu Retain ntrollin Total
Item Share Capital Specifi Genera
Treasu ehensi s ed Subtot g owners’
capita Prefe Perp reserve c l Other
ry ve reserve earnin al interest equity
l rred etual s reserve reserve
Other
share bond stock incom s gs s
s s
e
1,272
1. Balances as 285,82 716,60 772,95 1,731, 4,779, 4,799,6
,132, 20,519,
at the end of 1,459. 7,333. 3,002. 600,79 115,45 35,119.
868.0 660.40
the prior year 07 78 36 6.18 9.39 79
0
Add:
Adjustments
for changed
accounting
policies
Adjustments
for corrections
of previous
errors
Adjustments
for business
combinations
under common
control
Other
adjustments
2. Balances as 1,272
285,82 716,60 772,95 1,731, 4,779, 4,799,6
at the ,132, 20,519,
1,459. 7,333. 3,002. 600,79 115,45 35,119.
beginning of 868.0 660.40
07 78 36 6.18 9.39 79
the year 0
3. Increase/ 127,2 -127,2 -322,9 -189,2 -512,2 2,897,2 -509,33
21
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
decrease in the 13,28 13,286 75,351 54,257 29,609 29.67 2,379.4
period (“-” for 6.00 .00 .39 .75 .14 7
decrease)
3.1 Total -322,9 229,27 -93,69
2,897,2 -90,800
comprehensive 75,351 7,455. 7,895.
29.67 ,665.90
income .39 82 57
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
3.2.4
Other
-418,5 -418,5 -418,53
3.3 Profit
31,713 31,713 1,713.5
distribution
.57 .57 7
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3 -418,5 -418,5 -418,53
Appropriation 31,713 31,713 1,713.5
to owners (or .57 .57 7
22
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
shareholders)
3.3.4
Other
3.4 Transfers 127,2 -127,2
within owners’ 13,28 13,286
equity 6.00 .00
3.4.1
Increase in
127,2 -127,2
capital (or
13,28 13,286
share capital)
6.00 .00
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus reserves
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensive
income
transferred to
retained
earnings
3.4.6
Other
3.5 Specific
reserve
3.5.1
23
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Increase in the
period
3.5.2 Used
in the period
3.6 Other
1,399
4. Balances as 158,60 393,63 772,95 1,542, 4,266, 4,290,3
,346, 23,416,
at the end of 8,173. 1,982. 3,002. 346,53 885,85 02,740.
154.0 890.07
the period 07 39 36 8.43 0.25 32
0
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 2019
Unit: RMB
H1 2019
Other equity
Other Retaine
instruments Less: Total
Item Share Capital compreh Specific Surplus d
Treasury Other owners’
capital Preferr Perpet reserves ensive reserve reserves earning
ed ual Other stock equity
income s
shares bonds
1. Balances as at 1,399,3 1,482,1
166,211, 297,672, 809,456, 4,154,851,
the end of the 46,154. 64,706.
779.15 884.34 186.20 710.61
prior year 00 92
Add:
Adjustments for
changed
accounting
policies
Adjustments
for corrections of
previous errors
Other
adjustments
2. Balances as at 1,399,3 1,482,1
166,211, 297,672, 809,456, 4,154,851,
the beginning of 46,154. 64,706.
779.15 884.34 186.20 710.61
the year 00 92
3. Increase/
61,621,7 -60,893 727,802.8
decrease in the
09.81 ,907.01 0
period (“-” for
24
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
decrease)
3.1 Total 157,40
61,621,7 219,025,8
comprehensive 4,093.0
09.81 02.82
income 1
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
3.2.4 Other
-218,29
3.3 Profit -218,298,0
8,000.0
distribution 00.02
2
3.3.1
Appropriation to
surplus reserves
3.3.2
-218,29
Appropriation to -218,298,0
8,000.0
owners (or 00.02
2
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
25
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
pension schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
income
transferred to
retained earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balances as at 1,399,3 1,421,2
166,211, 359,294, 809,456, 4,155,579,
the end of the 46,154. 70,799.
779.15 594.15 186.20 513.41
period 00 91
H1 2018
Unit: RMB
H1 2018
Other equity
Other
instruments Less: Total
Item Share Capital compre Specific Surplus Retained
Treasur Other owners’
capital Preferr Perpet reserves hensive reserve reserves earnings
ed ual Other y stock equity
income
shares bonds
26
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
1. Balances as 1,272,
293,425 716,608 772,953 1,572,167 4,627,286,7
at the end of the 132,86
,065.15 ,088.78 ,002.36 ,765.91 90.20
prior year 8.00
Add:
Adjustments for
changed
accounting
policies
Adjustments
for corrections
of previous
errors
Other
adjustments
2. Balances as 1,272,
293,425 716,608 772,953 1,572,167 4,627,286,7
at the beginning 132,86
,065.15 ,088.78 ,002.36 ,765.91 90.20
of the year 8.00
3. Increase/
127,21 -127,21 -322,97
decrease in the -218,720, -541,693,26
3,286. 3,286.0 2,909.7
period (“-” for 350.78 0.48
00 0 0
decrease)
3.1 Total -322,97
199,811,3 -123,161,54
comprehensive 2,909.7
62.79 6.91
income 0
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
27
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
included in
owners’ equity
3.2.4 Other
3.3 Profit -418,531, -418,531,71
distribution 713.57 3.57
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation -418,531, -418,531,71
to owners (or 713.57 3.57
shareholders)
3.3.3 Other
3.4 Transfers 127,21 -127,21
within owners’ 3,286. 3,286.0
equity 00 0
3.4.1
Increase in 127,21 -127,21
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 Loss
offset by
surplus reserves
3.4.4
Changes in
defined benefit
pension
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
income
28
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
transferred to
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balances as 1,399,
166,211, 393,635 772,953 1,353,447 4,085,593,5
at the end of the 346,15
779.15 ,179.08 ,002.36 ,415.13 29.72
period 4.00
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
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 Shareholders’ General
Meeting 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
29
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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 XXX August 2019.
The consolidation scope of the financial statement during the Reporting Period including the Company and the 9
subsidiaries such as FSL 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”),
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 LIGHTING”).
The consolidation scope of the financial statements decreases one subsidiary that is Guangdong Fozhao Financial
Leasing Co., Ltd. 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 - 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
30
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Receivables), pricing method of inventory (Note 15. Inventory), depreciation of fixed assets and amortization of
intangible assets (Note 24. Fixed Assets and Note 30. Intangible Assets), and recognized time point of income
(Note 39. 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 Period
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 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
31
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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
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
32
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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 Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for
cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,
which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency and Accounting Method for Foreign Currency
1. Foreign Currency Business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spot
exchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balance
sheet date and the spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be
33
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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
(Applicable from January 1,2019)
Financial instruments refer to the contracts that constitute a company’s financial assets and the financial liabilities
or equity instruments of other units.
Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial
liability.
A financial asset (or part of a financial asset or part of a group of similar financial assets) that meets the following
conditions should be derecognized, or in other words, be written off from its account and balance sheet:
1) The right to receive cash flow from the financial asset has expired;
2) The right to receive cash flow from the financial asset has been transferred, or the “transfer” agreement
specifies the obligation to duly pay the full amount of cash flow received to a third party; and (a) has transferred
substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
A financial liability that has been fulfilled, canceled or expired should be derecognized. If a financial liability is
replaced with another financial liability by the same creditor on almost entirely different terms materially, or the
terms for an existing liability have been almost fully revised materially, such replacement or revision should be
treated as derecognition of the original liability and recognition of the new liability, and the difference should be
included into current profits/losses.
A financial asset traded in a conventional manner should be recognized and derecognized by trade-date
accounting. The trading of financial assets in a conventional manner means that financial assets are received or
delivered by the deadline as specified in regulations or general practice according to contract provisions. Trade
date refers to the date committed by the Company to buy or sell a financial asset.
Classification and measurement of financial assets
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
The Company classifies the financial assets when initially recognized into financial assets measured at amortized
cost, financial assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets management
and characteristics of contractual cash flow of financial assets. Financial assets initially recognized shall be
measured at their fair values. For accounts receivable and notes receivable excluding major financing or without
regard to financing over one year generated from ales of commodities or provision of labor services, the initial
measurement shall be conducted based on the transaction price.
For financial assets at fair value through profit or loss, the transaction expenses thereof shall be directly included
into the current profit or loss; for other financial assets, the transaction expenses thereof shall be included into the
initially recognized amount.
The subsequent measurement of financial assets depends on the classification thereof:
Debt instrument investments measured at amortized cost
Financial assets meeting the following conditions at the same time shall be classified as financial assets measured
at amortized cost: the business mode of the Company to manage such financial assets targets at collecting the
contractual cash flow. The contract of such financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. The interest income
for this kind of financial assets shall be recognized by effective interest method, and the gains or losses generated
from the derecognition, modification or impairment shall all be included into the current profit or loss. This kind
of financial assets mainly consist of monetary capital, accounts receivable and notes receivable, other receivables,
investments in debt obligations and long-term receivables. The Company presents the investments in debt
obligations due within one year since the balance sheet date and long-term receivables as current portion of
non-current assets and the original investments in debt obligations with maturity date within one year as other
current assets.
Investments in debt instruments measured at fair value and changes thereof recorded into other comprehensive
income
Financial assets meeting the following conditions at the same time shall be classified as financial assets measured
at fair value and changes thereof recorded into other comprehensive income: the business mode of the Company
to manage such financial assets takes contract cash flow collected as target and selling as target. The contract of
such financial assets stipulates that the cash flow generated in the specific date is the payment of the interest based
on the principal and outstanding principal amount. The interest income for this kind of financial assets shall be
recognized by effective interest method.
All changes in fair value should be included into other comprehensive income except for interest income,
impairment losses and exchange differences, which should be recognized as current profits/losses. When a
financial asset is derecognized, the cumulative gains or losses included into other comprehensive income
previously should be transferred out and included into current profits/losses. Such financial assets should be
presented as other credit investments. Other credit investments that will mature within one year from the date of
balance sheet should be presented as non-current assets due within one year, and other credit investments with the
original maturity date coming within one year should be presented as other current assets.
Equity instrument investment measured at fair value with changes included into other comprehensive income
The Company irrevocably chooses to designate part of non-trading equity instrument investments as financial
assets measured at fair value with changes included into other comprehensive income. Only related dividend
income (excluding the dividend income confirmed to be recovered as part of investment costs) will be recognized
into current profits/losses, while subsequent changes in fair value will be recognized into other comprehensive
income without the withdrawal of impairment provisions required. When a financial asset is derecognized, the
35
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
cumulative gains or losses included into other comprehensive income previously should be recognized into
retained earnings. Such financial assets should be presented as other equity investments.
A financial asset that meets one of the following conditions is classified as a trading financial asset: The financial
asset has been acquired in order to be sold or repurchased in the near future; the financial asset is part of an
identifiable financial instrument portfolio under centralized management, and there is evidence proving that the
company has recently adopted a short-term profit model; it is a derivative instrument, but derivative instruments
that are designated as and are effective hedging instruments and those conforming with financial guarantee
contracts are excluded.
Financial assets at fair value through profit or loss
The Company classifies financial assets except for above-mentioned financial assets measured with amortized
cost and financial assets measured with fair value whose change is included into other comprehensive income into
financial assets at fair value through profit or loss. The subsequent measurement of such kind of financial assets
shall be conducted by fair value method and all changes in fair value shall be recorded into the current profit or
loss. Such financial assets shall be presented as trading financial assets, and those will due over one year since the
balance sheet date and expectedly held over one year shall be presented as other non-current financial assets.
Classification and measurement of financial liabilities
The Company’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss, other financial liabilities and derivative instruments designated as effective hedging
instruments. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediately
recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are
included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities (including the derivative
instruments belonging to financial liabilities) and financial liabilities designated at the initial recognition to be
measured by the fair value and their changes are recorded in the current profit or loss.
A financial liability that meets one of the following conditions is classified as a trading financial liability: The
financial liability has been undertaken in order to be sold or repurchased in the near future; the financial liability is
part of an identifiable financial instrument portfolio under centralized management, and there is evidence proving
that the company has recently adopted a short-term profit model; it is a derivative instrument, but derivative
instruments that are designated as and are effective hedging instruments and those conforming with financial
guarantee contracts are excluded. Trading financial liabilities (including derivative instruments classified as
financial liabilities) should be subsequently measured at fair value, and all changes in fair value should be
recorded into current profits/losses, except for those related to hedging accounting.
Other financial liabilities
For such kind of financial liabilities, the subsequent measurement shall be conducted by effective interest method
based on the amortized cost.
Impairment of financial instruments
Based on expected credit losses, the Company carries out impairment treatment on financial assets measured at
amortized cost and debt instrument investments measured at fair value with changes included into other
comprehensive income, rental receivables, contract assets and financial assets and recognizes provisions for
losses.
Credit losses refer to the difference between all contract cash flows discounted by the original actual interest rate
receivable according to contracts and all cash flows expected to be received by the Company, which is the present
36
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
value of all cash shortfalls. The financial assets purchased by or originating from the Company with credit
impairment should be discounted by the actual interest rate of the financial assets after credit adjustment.
In respect of receivable accounts and contract assets that do not contain significant financing components, the
Company uses the simplified measurement method to measure provisions for losses by the amount equivalent to
the expected credit losses of the whole duration.
In respect of receivable accounts and contract assets that contain significant financing components, the Company
opts to use the simplified measurement method to measure provisions for losses by the amount equivalent to the
expected credit losses for the whole duration.
For other financial assets and financial guarantee contracts than the above using the simplified measurement
method, the Company on the balance sheet date assesses whether their credit risks have increased substantially
since the initial recognition. If the credit risks have not increased substantially since the initial recognition and are
in the first stage, the Company will measure provisions for losses by the amount equivalent to the expected credit
losses for the next 12 months and calculate interest income by the book balance and the actual interest rate; if the
credit risks have increased obviously without credit impairment since the initial recognition and are in the second
stage, the Company will measure provisions for losses by the amount equivalent to the expected credit losses for
the whole duration and calculate interest income by the book balance and the actual interest rate; if the credit risks
have increased substantially with credit impairment since the initial recognition and are in the third stage, the
Company will measure provisions for losses by the amount equivalent to the expected credit losses for the whole
duration and calculate interest income by the amortized cost and the actual interest rate. For financial instruments
with only low credit risks on the balance sheet date, the Company assumes that their credit risks have not
increased substantially since the initial recognition.
The Company 1) assesses expected credit losses of financial assets with credit impairment based on individual
items; 2) assesses expected credit losses of financial assets that are not derecognized but with changes in contract
cash flows due to revision of or renegotiation on contracts by the Company and the counterparty, based on
individual items; 3) assesses expected credit losses of other financial assets based on age combination.
The Company considers related past matters, current conditions, the reasonableness of the forecast on future
economic conditions and well-founded information when assessing expected credit losses.
The Company’s information of the judgment standards for remarkable increase in credit risks, definition of assets
with incurred credit impairment and assumption of measurement on expected credit losses is disclosed in this
Note.
When no longer reasonably expects to recover all or partial contractual cash flow of financial assets, the Company
directly writes down the carrying amount of the financial assets.
Financial instruments offset
a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet when
the following conditions are met at the same time: When the Company has a legal right that is currently
enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net
basis, or to realize the financial asset and settle the financial liability simultaneously.
Financial guarantee contract
A financial guarantee contract refers to a contract in which a specific debtor shall compensate the contract holder
suffering the losses when the debtor is unable to repay the debt in due course according to the debt instrument
terms. Financial guarantee contracts are measured at fair value at the initial recognition. After the initial
recognition, all financial guarantee contracts should be subsequently measured by the higher amount between the
amount of provisions for expected credit losses recognized on the balance sheet date and the balance of the
initially recognized amount deducting the cumulative amortization recognized according to the income
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
recognition principle, except for the financial guarantee contracts designated as financial liabilities measured at
fair value with changes recorded into current profits/losses.
Derivative financial instruments
The Company uses derivative financial instruments, which are initially measured at the fair value on the signature
date of the derivative transaction contract and subsequently measured at their fair value. A derivative financial
instrument with a positive fair value is recognized as an asset and that with a negative fair value is recognized as a
liability.
Gains or losses from changes in the fair value of derivative instruments are directly recognized into current
profits/losses.
Revision of financial assets
For the financial assets that are not derecognized but with changes in contract cash flows due to revision of or
renegotiation on contracts by the Company and the counterparty, the Company recalculates the book balance of
the financial assets according to the renegotiated or revised contract cash flows by the discounted value of the
original actual interest rate (or the actual interest rate after credit adjustment). Relevant gains or losses are
recorded into current profits/losses. Costs or expenses for the revision of financial assets are adjusted to the
revised book balance of financial assets and amortized in the remaining period of the revised financial assets.
Transfer of financial assets
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.
Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a
financial asset, 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 and recognize the assets and liabilities
generated; (2) If it does not give up its control over the financial asset, it shall, according to the extent of its
continuous involvement in the transferred financial asset, recognize the related financial asset and recognize the
relevant liability accordingly.
11. Notes Receivable
Category Accounting estimate policy
Bank’s acceptance bill The Company evaluates that the portfolio has relatively low credit risks, and
generally no provision for impairment is made.
12. Accounts Receivable
The Company withdraws the impairment loss for accounts receivable excluding significant financing component
with the simplified method.
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 or
with a significant single amount accounts accounting for over 10% of the total balance of
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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
between the present value of the account receivable’s
future cash flows and its carrying amount.
2) Accounts Receivable for 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
Aging Withdrawal proportion of accounts Withdrawal proportion of other
receivable 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
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Reason of individually withdrawing bad debt provision There are definite evidences indicate the obvious
difference of thee return ability
Withdrawal method for bad debt provision Recognizing the impairment loss and withdrawing the
bad debt provision according to the difference between
the present value of the account receivable’s future cash
flows and its carrying amount.
13. Financing Backed by Accounts Receivable
Not applicable
14. Other Receivables
Recognition method and accounting treatment for expected credit losses of other receivables
Refer to Note 10 for details about the recognition method and accounting treatment for expected credit losses of
other receivables since 1 January 2019.
15. Inventories
Is the Company subject to any disclosure requirements for special industries?
No.
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
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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.
16. Contract Assets
Not applicable
17. Contract Costs
Not applicable
18. 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 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
41
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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:
(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
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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.
19. Investments in Debt Obligations
Not applicable
20. Other Investments in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. 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.
(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
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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 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.
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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（2）. “Principles, Procedures and
Methods for the Preparation of Consolidated 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 31. Impairment of Long-term Assets in Notes V
herein.
23. Investment Property
Measurement mode of investment property
Not applicable
45
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
24. 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 Depreciable life Annual deprecation
value
Housing and building Straight-line method 3—30 years 5% 31.67%-3.17%
Machinery equipments Straight-line method 2—10 years 5% 47.50%-9.50%
Transportation
Straight-line method 5—10 years 5% 19.00%-9.50%
equipments
Electronic equipment Straight-line method 2—8 years 5% 47.50%-11.88%
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable
25. 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 design
or contract requirements.
3. Provision for Impairment of Construction in Progress
Please refer to Note 31: Long-term Asset Impairment under Note V for the impairment test method and provision
46
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
for impairment of construction in progress.
26. 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.
27. Living Assets
Not applicable
47
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
Not applicable
30. 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 31: Long-term asset impairment under Note V.
48
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(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.
31. 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 belongs. The asset group is the smallest portfolio of assets that
49
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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.
32. Long-term Prepaid Expense
Long-term prepaid expense refers 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.
33. Contract Liabilities
Not applicable
34. 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
50
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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 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 Other Long-term Welfare for Staff
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.
35. Lease Liabilities
Not applicable
36. Provisions
1. Recognition of Provisions
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
provisions 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 Provisions
The provisions 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 provisions 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
provisions on the balance sheet date. The amount of compensation is not exceeding the book value of the
recognized provisions.
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
37. Share-based Payment
Not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
39. Revenue
Is the Company subject to any disclosure requirements for special industries?
No
Has implemented the new standards governing revenue?
□ Yes √ 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
52
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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.
40. Government Subsidies
1. Category of Government Subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Company from the
government, which mainly include government subsidies related to assets and government subsidies related to
income.
2. Distinction Standard of Government Subsidies Related to Assets with Government Subsidies Related to Income
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.
The specific criteria that the Company classifies government subsidies as income related is: other government
subsidies other than asset-related government subsidies.
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, the subsidy is recognized as government subsidy related to income.
3. Measurement of Government Subsidies
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.
4. Accounting Treatment for Government Subsidies
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
53
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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.
Government subsidies related to income shall be 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
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.
41. 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.
54
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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.
42. 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
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.
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Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
43. Other Significant Accounting Policies and Estimates
Not applicable
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√ Applicable □ Not applicable
Changes in accounting policy Approval procedure Remark
In 2017, the Ministry of Finance revised and issued
the Accounting Standards for Business Enterprises
No.22-Recognition and Measurement of Financial
Instruments, Accounting Standards for Business
Enterprises No.24-Hedge Accounting, Accounting
Standards for Business Enterprises
No.37-Presentation of Financial Instruments and
required enterprises listed both domestically and
overseas as well as companies listed overseas with For details, refer to the
financial report prepared in accordance with Announcement on Changes in
Reviewed and approved by the 30th
International Financial Reporting Standards or Accounting Policies
Meeting of the 8th Board of Directors
Accounting Standards for Business Enterprises to (Announcement No.: 2019-020)
carry out the revised accounting standards since 1 disclosed on cninfo.com.cn.
January 2018, required other domestically listed
companies to carry out the revised standards since 1
January 2019, and required unlisted enterprises
implementing Accounting Standards for Business
Enterprises to carry out the revised standards since 1
January 2021. Thus the Company starts to implement
the changed new standards governing financial
instruments since 1 January 2019.
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
56
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Current assets:
Monetary capital 896,646,719.87 896,646,719.87
Settlement reserve
Interbank loans granted
Trading financial assets 6,000,000.00 6,000,000.00
Financial assets at fair
value through profit or loss
Derivative financial assets
Notes receivable 107,506,613.50 107,506,613.50
Accounts receivable 834,420,596.05 834,420,596.05
Financing backed by
accounts receivable
Prepayments 13,811,905.18 13,811,905.18
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 21,745,690.53 21,745,690.53
Including: Interest
5,152,364.04 5,152,364.04
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 767,319,599.00 767,319,599.00
Contract assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 864,093,663.30 864,093,663.30
Total current assets 3,505,544,787.43 3,511,544,787.43 6,000,000.00
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
57
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Available-for-sale financial
897,716,590.20 -897,716,590.20
assets
Investments in other debt
obligations
Held-to-maturity
investments
Long-term receivables
Long-term equity
182,458,559.69 182,458,559.69
investments
Investments in other equity
891,716,590.20 891,716,590.20
instruments
Other non-current financial
assets
Investment property
Fixed assets 512,106,912.39 512,106,912.39
Construction in progress 224,624,447.16 224,624,447.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 172,725,277.21 172,725,277.21
R&D expense
Goodwill
Long-term prepaid
6,852,985.35 6,852,985.35
expense
Deferred income tax assets 37,831,704.45 37,831,704.45
Other non-current assets 48,305,435.42 48,305,435.42
Total non-current assets 2,082,621,911.87 2,076,621,911.87 -6,000,000.00
Total assets 5,588,166,699.30 5,588,166,699.30
Current liabilities:
Short-term borrowings
Borrowings from central
bank
Interbank loans obtained
Trading financial liabilities 477,200.00 477,200.00
Financial liabilities at fair
477,200.00 -477,200.00
value through profit or loss
Derivative financial
liabilities
58
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Notes payable 452,683,676.97 452,683,676.97
Accounts payable 532,597,143.95 532,597,143.95
Advances from customers 43,850,788.04 43,850,788.04
Financial assets sold under
repurchase agreements
Customer deposits and
interbank deposits
Payables for acting trading
of securities
Payables for underwriting
of securities
Payroll payable 96,088,621.59 96,088,621.59
Taxes payable 25,354,466.37 25,354,466.37
Other payables 43,115,011.68 43,115,011.68
Including: Interest
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Contract liabilities
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,194,166,908.60 1,194,166,908.60
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
59
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Long-term payables
Long-term payroll payable
Provisions
Deferred income 155,000.31 155,000.31
Deferred income tax
52,530,509.00 52,530,509.00
liabilities
Other non-current
liabilities
Total non-current liabilities 52,685,509.31 52,685,509.31
Total liabilities 1,246,852,417.91 1,246,852,417.91
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 158,608,173.07 158,608,173.07
Less: Treasury stock
Other comprehensive
297,667,872.80 297,667,872.80
income
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
General reserve
Retained earnings 1,654,181,032.39 1,654,181,032.39
Total equity attributable to
owners of the Company as 4,319,259,418.46 4,319,259,418.46
the parent
Non-controlling interests 22,054,862.93 22,054,862.93
Total owners’ equity 4,341,314,281.39 4,341,314,281.39
Total liabilities and owners’
5,588,166,699.30 5,588,166,699.30
equity
Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments (CK[2017]No.7), the Accounting Standards for Business Enterprises No. 23 – Transfer of
Financial Assets (CK[2017]No.8), the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting (CK[2017]No.9),
and the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (CK[2017]No.14). The
Company starts to implement above new standards since 1 January 2019. In accordance with the link up provision, no adjustment
was made to information of comparative period, and the Company retroactively adjusted the retained earnings of period-begin or
60
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
other comprehensive income based on the difference between the original standards and the new standards on the first execution date.
Those originally recorded into “available-for-sale financial assets” are now recorded into “trading financial assets” and “other
investments in equity instruments”; those originally recorded into “financial liabilities at fair value through profit or loss” are now
recorded into “trading financial liabilities”.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2018 1 January 2019 Adjusted
Current assets:
Monetary capital 848,949,693.91 848,949,693.91
Trading financial assets 6,000,000.00 6,000,000.00
Financial assets at fair
value through profit or loss
Derivative financial assets
Notes receivable 104,945,398.61 104,945,398.61
Accounts receivable 795,897,932.65 795,897,932.65
Financings backed by
accounts receivable
Prepayments 25,444,445.34 25,444,445.34
Other receivables 43,538,848.72 43,538,848.72
Including: Interest
5,152,364.04 5,152,364.04
receivable
Dividends
receivable
Inventories 692,681,479.03 692,681,479.03
Contract assets
Assets classified as held
for sale
Current portion of
non-current assets
Other current assets 856,504,839.81 856,504,839.81
Total current assets 3,367,962,638.07 3,373,962,638.07 6,000,000.00
Non-current assets:
Investments in debt
obligations
Available-for-sale financial
897,716,590.20 -897,716,590.20
assets
Investments in other debt
61
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
obligations
Held-to-maturity
investments
Long-term receivables
Long-term equity
466,251,661.95 466,251,661.95
investments
Investments in other equity
891,716,590.20 891,716,590.20
instruments
Other non-current financial
assets
Investment property
Fixed assets 427,947,613.74 427,947,613.74
Construction in progress 222,570,503.14 222,570,503.14
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 129,452,067.42 129,452,067.42
R&D expense
Goodwill
Long-term prepaid
5,106,268.25 5,106,268.25
expense
Deferred income tax assets 35,908,741.15 35,908,741.15
Other non-current assets 46,852,235.42 46,852,235.42
Total non-current assets 2,231,805,681.27 2,225,805,681.27 -6,000,000.00
Total assets 5,599,768,319.34 5,599,768,319.34
Current liabilities:
Short-term borrowings
Trading financial liabilities 477,200.00 477,200.00
Financial liabilities at fair
477,200.00 -477,200.00
value through profit or loss
Derivative financial
liabilities
Notes payable 452,683,676.97 452,683,676.97
Accounts payable 681,490,174.69 681,490,174.69
Advances from customers 41,912,301.85 41,912,301.85
Contract liabilities
Payroll payable 84,220,746.16 84,220,746.16
62
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Taxes payable 17,528,644.83 17,528,644.83
Other payables 114,073,355.23 114,073,355.23
Including: Interest
payable
Dividends
payable
Liabilities directly
associated with assets
classified as held for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,392,386,099.73 1,392,386,099.73
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities
Long-term payables
Long-term payroll payable
Provisions
Deferred income
Deferred income tax
52,530,509.00 52,530,509.00
liabilities
Other non-current
liabilities
Total non-current liabilities 52,530,509.00 52,530,509.00
Total liabilities 1,444,916,608.73 1,444,916,608.73
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
63
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Capital reserves 166,211,779.15 166,211,779.15
Less: Treasury stock
Other comprehensive
297,672,884.34 297,672,884.34
income
Specific reserve
Surplus reserves 809,456,186.20 809,456,186.20
Retained earnings 1,482,164,706.92 1,482,164,706.92
Total owners’ equity 4,154,851,710.61 4,154,851,710.61
Total liabilities and owners’
5,599,768,319.34 5,599,768,319.34
equity
Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognition
and Measurement of Financial Instruments (CK[2017]No.7), the Accounting Standards for Business Enterprises No. 23 – Transfer of
Financial Assets (CK[2017]No.8), the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting (CK[2017]No.9),
and the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (CK[2017]No.14). The
Company starts to implement above new standards since 1 January 2019. In accordance with the link up provision, no adjustment
was made to information of comparative period, and the Company retroactively adjusted the retained earnings of period-begin or
other comprehensive income based on the difference between the original standards and the new standards on the first execution date.
Those originally recorded into “available-for-sale financial assets” are now recorded into “trading financial assets” and “other
investments in equity instruments”; those originally recorded into “financial liabilities at fair value through profit or loss” are now
recorded into “trading financial liabilities”.
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any New
Standards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
45. Other
Naught
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%, 9%, 10%, 11%, 13%, 16%
service
Urban maintenance and construction tax Turnover tax payable 7%, 5%
Enterprise income tax Taxable income 15%, 20%, 25%
Educational surtax Turnover tax payable 3%
64
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
Foshan Electrical and Lighting Co., Ltd. 15%
FSL Chanchang Optoelectronics Co., Ltd. 25%
Foshan Chansheng Electronic Ballast Co., Ltd. 20%
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 Financial Leasing Co., Ltd. 25%
Foshan Lighting Lamps and Lanterns Co., Ltd. 25%
FSL Zhida Electric Technology Co., Ltd. 25%
FSL Europe 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.
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Capital
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 41,073.13 34,937.47
Bank deposits 766,646,136.79 784,166,295.87
Other monetary capital 62,822,506.73 112,445,486.53
Total 829,509,716.65 896,646,719.87
65
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Of which: Total amount deposited
1,018,633.97 739,617.83
oversees
Other notes
Note: Other monetary capital includes cash deposit for notes, cash deposit for future foreign exchange settlement, investment fund
deposited in securities companies and e-commerce balance, of which, the cash deposit for notes and cash deposit for future foreign
exchange settlement are restricted assets. For details, please refer to Note VII-Notes to Items of Consolidated Financial Statements
(81. Assets with Restricted Ownership and Right to Use).
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Of which:
Financial assets assigned measured by fair
value and the changes be included in the 6,000,000.00
current gains and losses
Of which:
Total 6,000,000.00
Other notes:
The reason for the decrease of trading financial assets at the period-end is the Company transferred 69% of shares in Chengdu
Hongbo Enterprise Co., Ltd. to Xiamen Tungsten Co., Ltd. in the Reporting Period.
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 135,766,529.32 107,506,613.50
Total 135,766,529.32 107,506,613.50
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Item Carrying Carrying
Proportio Withdra Proportio Withdraw
Amount Amount value Amount Amount value
n wal n al
66
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
proportio proportio
n n
Of which:
Notes receivable
135,766, 135,766,5 107,506,6 107,506,6
withdrawn bad debt 100.00% 100.00%
529.32 29.32 13.50 13.50
provision by group
Of which:
135,766, 135,766,5 107,506,6 107,506,6
Total 100.00% 100.00%
529.32 29.32 13.50 13.50
Individual withdrawal of bad debt provision:
Naught
Withdrawal of bad debt provision by group:
Naught
Notes of confirming the basis of the groups:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable √ Not applicable
(2) Notes Receivable Withdrawn, Reversed or Collected during the Reporting Period
Information of bad debt provision in the Reporting Period:
Naught
Of which bad debt provision recovered or reversed with significant amount during the Reporting Period:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged at the Period-end
Unit: RMB
Item Amount pledged at the period-end
Bank acceptance bill 79,189,073.66
Total 79,189,073.66
(4) 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 47,238,011.00
Total 47,238,011.00
67
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
(6) The Actual Write-off Accounts Receivable
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
Category Withdra Withdraw
Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Accounts receivable
23,377,2 16,266,8 7,110,413 23,377,22 16,266,81 7,110,413.5
withdrawn bad debt 2.87% 69.58% 2.65% 69.58%
23.66 10.09 .57 3.66 0.09 7
provision separately
Of which:
Accounts receivable
792,053, 33,336,0 758,716,9 860,060,6 32,750,48 827,310,18
withdrawn bad debt 97.13% 4.21% 97.35% 3.81%
023.50 71.31 52.19 68.85 6.37 2.48
provision by group
Of which:
815,430, 49,602,8 765,827,3 883,437,8 49,017,29 834,420,59
Total 100.00% 6.08% 100.00% 5.55%
247.16 81.40 65.76 92.51 6.46 6.05
Individual withdrawal of bad debt provision:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Involved in the lawsuit,
the Company won the
Customer A 14,220,827.14 7,110,413.57 50.00% lawsuit in the first
instance, and the other
side has appealed.
68
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Involved in the lawsuit,
Customer B 9,156,396.52 9,156,396.52 100.00% the case hasn’t been
finalized
Total 23,377,223.66 16,266,810.09 -- --
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk group 792,053,023.50 33,336,071.31 4.21%
Total 792,053,023.50 33,336,071.31 --
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 724,279,399.86
1 to 2 years 30,884,789.03
2 to 3 years 7,653,591.61
3 to 4 years 2,782,638.29
4 to 5 years 226,946.97
Over 5 years 0.00
Total 765,827,365.76
(2) Accounts Receivable Withdrawn, Reversed or Collected during the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Category Beginning amount Ending balance
Withdrawal Reversal or recovery Write-off
Accounts receivable 49,017,296.46 696,350.03 0.00 110,765.09 49,602,881.40
Total 49,017,296.46 696,350.03 110,765.09 49,602,881.40
69
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Of which bad debt provision recovered or reversed with significant amount during Reporting Period:
Naught
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
No. 1 110,652.83
Other retails accounts 112.26
Of which verification of significant accounts receivable:
Naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Relationship with the Carrying amount Amount of bad debt Proportion to total
Name of units
Company provision withdrawn accounts receivable (%)
No. 1 Non-related party 116,548,474.42 3,496,454.23 14.29%
No. 2 Non-related party 21,132,097.12 691,796.76 2.59%
No. 3 Non-related party 19,446,088.18 876,795.88 2.38%
No. 4 Non-related party 17,103,092.54 513,092.78 2.10%
No. 5 Non-related party 16,775,164.92 503,254.95 2.06%
Total 191,004,917.18 6,081,394.60 23.42%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Naught
6. Accounts Receivable Financing
Naught
70
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
7. Prepayment
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 7,024,075.66 59.07% 8,074,848.21 58.46%
1 to 2 years 2,549,809.80 21.44% 3,525,963.03 25.53%
2 to 3 years 706,193.75 5.94% 721,403.24 5.22%
Over 3 years 1,611,051.65 13.55% 1,489,690.70 10.79%
Total 11,891,130.86 -- 13,811,905.18 --
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
Naught
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Unit: RMB
Name of units Relationship with the Ending balance Proportion to total Aging
Company prepayments (%)
No. 1 Non-related supplier 1,190,838.91 10.01% Within 1 year
No. 2 Non-related supplier 1,043,968.84 8.78% Within 1 year
No. 3 Non-related supplier 600,525.92 5.05% Within 2 years
No. 4 Non-related supplier 591,568.29 4.97% Within 2 years
No. 5 Non-related supplier 418,205.26 3.52% Within 1 year
Total 3,845,107.22 32.33%
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 5,828,623.70 5,152,364.04
Dividend receivable 0.00 0.00
Other receivables 21,236,642.37 16,593,326.49
Total 27,065,266.07 21,745,690.53
71
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Deposits on a regular basis 1,575,001.54 56,317.78
Entrusted loan 0.00
Bond investment 0.00
Structural deposit 2,400,361.88 3,151,895.54
Bank financial products 1,853,260.28 1,944,150.72
Total 5,828,623.70 5,152,364.04
2) Significant Overdue Interest
Naught
3) Information of Withdrawal of Bad Debt Provision
□Applicable √Not applicable
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Accounts Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Staff borrow and deposit 6,418,419.33 3,451,053.16
VAT export tax refunds 6,006,579.00 6,252,642.96
Performance bond 3,949,456.48 2,905,450.00
Rent, water & electricity fees 1,516,762.13 765,582.10
Other 5,017,418.94 4,549,969.87
Total 22,908,635.88 17,924,698.09
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Bad debt provision Expected credit loss Expected loss in the Expected loss in the Total
of the next 12 months duration (credit impairment duration (credit impairment
72
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
not occurred) occurred)
Balance of 1 January
427,381.20 903,990.40 1,331,371.60
2019
Balance of 1 January
2019 in the current —— —— —— ——
period
Withdrawal of the
149,282.77 191,339.14 340,621.91
current period
Balance of 30 June 2019 576,663.97 1,095,329.54 1,671,993.51
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable √Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 18,645,468.79
1 to 2 years 1,584,151.10
2 to 3 years 938,235.43
3 to 4 years 11,181.16
4 to 5 years 57,605.89
Over 5 years 0.00
Total 21,236,642.37
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Category Beginning balance Ending balance
Withdrawal Reversal or recovery
Other receivables 1,331,371.60 340,621.91 1,671,993.51
Total 1,331,371.60 340,621.91 1,671,993.51
Of which bad debt provision reversed or recovered with significant amount during Reporting Period:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Name of the entity Nature Ending balance Aging Proportion to ending Ending balance of
73
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
balance of other bad debt provision
receivables (%)
No. 1 Export rebates 6,006,579.00 Within 1 year 26.22% 180,197.37
No. 2 Social insurance 1,532,340.79 Within 1 year 6.69% 45,970.22
No. 3 Other 1,296,947.31 1 to 3 years 5.66% 314,327.63
No. 4 Other 1,157,064.20 Within 1 year 5.05% 34,711.93
No. 5 Petty cash 1,151,893.62 1 to 3 years 5.03% 70,085.15
Total -- 11,144,824.92 -- 48.65% 645,292.30
6) Accounts Receivable Involving Government Subsidies
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other Receivables
Naught
9. Inventory
Whether the Company has executed the new income standards
□ Yes √ No
(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 101,814,729.03 2,221,937.15 99,592,791.88 126,493,040.39 1,912,404.69 124,580,635.70
Goods in process 67,462,606.70 67,462,606.70 34,923,287.33 34,923,287.33
Inventory goods 393,861,262.51 30,812,489.13 363,048,773.38 495,768,205.24 25,743,927.08 470,024,278.16
Semi-finished
112,541,908.64 906,893.85 111,635,014.79 135,536,163.37 787,982.05 134,748,181.32
goods
Low priced and
easily worn 3,247,274.19 3,247,274.19 3,043,216.49 3,043,216.49
articles
Total 678,927,781.07 33,941,320.13 644,986,460.94 795,763,912.82 28,444,313.82 767,319,599.00
Whether the Company need satisfy relevant disclosure requirements stated in SZSE Industrial Information Disclosure Guidance
No.4---Listed Company Specialized in Seed Industry and Planting Businesses or not?
No
74
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(2) Falling Price Reserves of Inventory
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 1,912,404.69 1,217,399.07 907,866.61 2,221,937.15
Inventory goods 25,743,927.08 10,637,928.27 5,569,366.22 30,812,489.13
Semi-finished
787,982.05 383,916.87 265,005.07 906,893.85
goods
Total 28,444,313.82 12,239,244.21 6,742,237.90 33,941,320.13
Reason for withdrawal and reversal of falling price reserves of inventories
Item Reasons for the reverse or write-off of
Basis for provision for falling price of
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
(3) Notes to the Ending Balance of Inventory Including Capitalized Borrowing Expense
Not applicable
(4) Completed Unsettled Assets Formed from the Construction Contact at the Period-end
Naught
10. Contract Assets
Naught
11. Held-for-Sale Assets
Naught
12. Current Portion of Non-current Assets
Naught
75
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
13. Other Current Assets
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Ending balance Beginning balance
Deductible input tax of VAT 38,945,157.63 21,691,700.53
Advance payment of enterprise income tax 2,401,962.77
Bank financial products (Note) 295,000,000.00 240,000,000.00
Structural deposits (Note) 580,000,000.00 600,000,000.00
Total 913,945,157.63 864,093,663.30
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. Creditors' Investment
Naught
15. Other Creditors' Investment
Naught
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Beginnin Reduced Changes bonus or al of Ending of
Investees l recognize other
g balance investmen of other profits depreciati Other balance depreciati
investmen d under comprehe
t equity announce on on
t the equity nsive
d to issue reserves reserves
method income
I. Joint ventures
II. Associated enterprises
Shenzhen 182,458,5 784,711.9 3,120,585 180,122,6
Primatron 59.69 8 .75 85.92
76
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
ix
(Nanho)
Electronic
s Ltd.
182,458,5 784,711.9 3,120,585 180,122,6
Subtotal
59.69 8 .75 85.92
182,458,5 784,711.9 3,120,585 180,122,6
Total
59.69 8 .75 85.92
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Non-listed equity investment 297,628,309.40 297,628,309.40
Listed equity investment 666,584,409.99 594,088,280.80
Total 964,212,719.39 891,716,590.20
Disclosure of Non-trading Equity Instrument Investment
Unit: RMB
Reason for
Amount of other assigning to Reason for other
comprehensive measure in fair comprehensive
Dividend income Accumulative Accumulative
Item income value and the income
recognized gains losses
transferred to changes included transferred to
retained earnings in the current retained earnings
gains and losses
Shares of
Guoxuan 375,686,137.61
High-tech
Shares of
2,986,027.39 47,013,384.92
Everbright Bank
Total 2,986,027.39 422,699,522.53
19. Other Non-current Financial Assets
Naught
20. Investment Property
Naught
77
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 586,093,658.59 512,106,912.39
Disposal of fixed assets 0.00 0.00
Total 586,093,658.59 512,106,912.39
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I. Original carrying
value
1. Beginning
710,892,641.29 721,559,752.40 22,584,005.26 27,863,135.01 1,482,899,533.96
balance
2. Increased
96,636,567.00 8,632,421.52 92,758.58 639,458.50 106,001,205.60
amount of the period
(1) Purchase 4,044,140.03 92,758.58 639,458.50 4,776,357.11
(2) Transfer
from construction in 96,636,567.00 4,588,281.49 101,224,848.49
progress
(3) Enterprise
combination increase
3. Decreased
1,209,668.15 431,957.26 49,799.75 1,691,425.16
amount of the period
(1) Disposal or
1,159,375.15 431,957.26 49,799.75 1,641,132.16
scrap
(2) Equipment
50,293.00 50,293.00
transformation
4. Ending balance 807,529,208.29 728,982,505.77 22,244,806.58 28,452,793.76 1,587,209,314.40
II. Accumulative
depreciation
1. Beginning
432,350,311.91 497,669,898.94 16,516,228.63 21,965,331.34 968,501,770.82
balance
2. Increased
9,828,642.78 20,205,006.36 561,299.96 1,290,449.88 31,885,398.98
amount of the period
78
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(1) Withdrawal 9,828,642.78 20,205,006.36 561,299.96 1,290,449.88 31,885,398.98
3. Decreased
1,104,695.59 410,359.40 47,309.75 1,562,364.74
amount of the period
(1) Disposal or
1,093,945.45 410,359.40 47,309.75 1,551,614.60
scrap
(2) Equipment
10,750.14 10,750.14
transformation
4. Ending balance 442,178,954.69 516,770,209.71 16,667,169.19 23,208,471.47 998,824,805.06
III. Depreciation
reserves
1. Beginning
0.00 2,290,422.72 0.00 428.03 2,290,850.75
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal or
scrap
4. Ending balance 2,290,422.72 428.03 2,290,850.75
IV. Carrying value
1. Ending carrying
365,350,253.60 209,921,873.34 5,577,637.39 5,243,894.26 586,093,658.59
value
2. Beginning
278,542,329.38 221,599,430.74 6,067,776.63 5,897,375.64 512,106,912.39
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Note
value depreciation reserves
Name of the
T5, T8,
announcement:
energy-saving lamp 7,940,325.52 5,945,024.07 1,943,741.93 51,559.52
Announcement on
production line
Withdrawing the
79
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Preparation for the
Assets Impairment
on the Idle
Equipments and
Construction in
Progress; the
Announcement No.:
2015-030; disclosure
website:
www.cninfo.com.cn
(3) Fixed Assets Leased in by Financing Lease
Naught
(4) Fixed Assets Leased out by Operation Lease
Naught
(5) Fixed Assets Failed to Accomplish Certification of Property
Naught
(6) Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Total 0.00 0.00
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 158,184,271.59 224,624,447.16
Engineering materials 0.00 0.00
Total 158,184,271.59 224,624,447.16
(1) List of Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
80
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Construction in
158,184,271.59 158,184,271.59 224,624,447.16 224,624,447.16
progress
Total 158,184,271.59 158,184,271.59 224,624,447.16 224,624,447.16
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Proporti
which:
on of Accumul Capitaliz
amount
accumul ated ation rate
Transferr of
Beginnin Other ated amount of
Increase ed in Ending Job capitaliz Capital
Item Budget g decrease investme of interests
d amount fixed balance schedule ed resources
balance d amount nt in interest for the
assets interests
construct capitaliz Reportin
for the
ions to ation g Period
Reportin
budget
g Period
Fuwan
intellige
52,040,0 41,583,1 5,042,50 33,168.6 46,592,4
nt 89.53% 99.00% Other
00.00 09.95 5.78 2 47.11
worksho
pH
Gaoming
R&D
worksho 40,000,0 12,615,0 11,372,8 1,212,57 22,775,3
56.94% 65.00% Other
p 11, 12, 00.00 97.54 59.14 6.14 80.54
13, 14
and 18
Fuwan
standard 23,775,0 19,241,4 439,002. 210,108. 19,470,3
81.89% 99.00% Other
worksho 00.00 52.36 14 52 45.98
p K1
Fuwan
standard 23,775,0 19,015,0 305,357. 210,108. 19,110,3
80.38% 99.00% Other
worksho 00.00 75.82 32 51 24.63
p J3
Family
housing 10,100,0 7,693,42 920,308. 8,610,06
3,663.06 85.25% 99.00% Other
of Gao 00.00 3.10 42 8.46
Ming,
81
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Building
8#
Employe
e
6,500,00 5,643,72 599,922. 99,829.2 6,143,82
Housing 94.52% 99.00% Other
0.00 9.10 96 3 2.83
Seven of
Fuwan
Automat
ic system
of
intellige
nt
21,920,0 11,604,4 486,620. 11,117,8
producti 0.00 50.72% 85.00% Other
00.00 61.41 65 40.76
on
worksho
p
(worksh
op H)
Fuwan
standard 22,310,0 18,583,8 1,267,02 19,850,8
100.00% 100.00% Other
worksho 00.00 45.29 2.40 67.69
p J1
Fuwan
standard 22,310,0 18,367,6 1,122,12 19,489,7
100.00% 100.00% Other
worksho 00.00 69.88 5.31 95.19
p J2
Fuwan
standard 26,200,0 21,702,4 3,259,15 24,961,5
100.00% 100.00% Other
worksho 00.00 30.93 3.06 83.99
p K2
Fuwan
standard 26,200,0 21,942,2 3,841,30 25,783,5
100.00% 100.00% Other
worksho 00.00 87.85 6.92 94.77
p K3
275,130, 197,992, 28,169,5 90,085,8 2,256,07 133,820,
Total -- -- --
000.00 583.23 63.45 41.64 4.73 230.31
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught
82
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(4) Engineering Materials
Unit: RMB
Ending balance Beginning balance
Item Depreciation Carrying Depreciation
Carrying amount Carrying value Carrying value
reserves amount reserves
Total 0.00 0.00
23. Productive Living 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. Right-to-use Assets
Naught
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Using right of
Item Land use right Patent Total
technology software
I. Original carrying
value
1. Beginning
233,741,723.60 200,000.00 2,773,651.87 236,715,375.47
balance
2. Increased
amount of the period
(1) Purchase
(2) Internal
R&D
83
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(3) Business
combination increase
3. Decreased
amount of the period
(1) Disposal
4. Ending balance 233,741,723.60 200,000.00 2,773,651.87 236,715,375.47
II. Accumulated
amortization
1. Beginning
61,904,106.59 200,000.00 1,885,991.67 63,990,098.26
balance
2. Increased
2,157,510.86 56,849.34 2,214,360.20
amount of the period
(1) Withdrawal 2,157,510.86 56,849.34 2,214,360.20
3. Decreased
amount of the period
(1) Disposal
4. Ending balance 64,061,617.45 200,000.00 1,942,841.01 66,204,458.46
III. Depreciation
reserves
1. Beginning
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
amount of the period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
169,680,106.15 830,810.86 170,510,917.01
value
84
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
2. Beginning
171,837,617.01 887,660.20 172,725,277.21
carrying value
(2) Land Use Right with Certificate of Title Uncompleted
Naught
27. R&D Expense
Naught
28. Goodwill
Naught
29. Long-term Prepaid Expense
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount of the period amount
Engineering
6,004,040.42 2,914,673.24 2,832,554.17 6,086,159.49
decoration expenses
Other 848,944.93 1,792,321.52 365,824.99 2,275,441.46
Total 6,852,985.35 4,706,994.76 3,198,379.16 8,361,600.95
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that 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
Provision for impairment
93,357,045.81 14,481,934.60 86,933,832.63 13,391,933.49
of assets
Unrealized profit of
1,363,677.73 204,551.66 1,187,129.74 178,069.46
internal transactions
Depreciation of fixed
74,907,420.57 11,577,365.09 75,022,616.39 11,594,644.46
assets
Payroll payable 53,463,130.75 8,019,469.61 83,969,846.94 12,595,477.04
85
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Changes in fair value of
trading financial 1,473,400.00 221,010.00 477,200.00 71,580.00
liabilities
Total 224,564,674.86 34,504,330.96 247,590,625.70 37,831,704.45
(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
other equity instrument 422,699,522.53 63,404,928.38 350,203,393.34 52,530,509.00
investment
Total 422,699,522.53 63,404,928.38 350,203,393.34 52,530,509.00
(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
34,504,330.96 37,831,704.45
assets
Deferred income tax
63,404,928.38 52,530,509.00
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
31. Other Non-current Assets
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
86
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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 5,610,971.02 6,549,735.42
Total 47,366,671.02 48,305,435.42
32. Short-term Borrowings
Naught
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Of which:
Specified as financial liabilities at fair
1,473,400.00 477,200.00
value through profit or loss
Of which:
Total 1,473,400.00 477,200.00
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Trade acceptance 0.00
Bank’s acceptance bill 375,906,405.75 452,683,676.97
Total 375,906,405.75 452,683,676.97
The total amount of the due but not paid notes payable at the end of the period was of RMB0.00.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
87
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Accounts payable 508,983,045.12 532,597,143.95
Total 508,983,045.12 532,597,143.95
(2) Significant Accounts Payable Aging over One Year
Naught
37. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 35,916,666.09 43,850,788.04
Total 35,916,666.09 43,850,788.04
(2) Significant Advances from Customers Aging over One Year
Naught
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-end
Naught
38. Contract Liabilities
Naught
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 96,088,621.59 271,353,842.77 302,643,615.93 64,798,848.43
II. Post-employment
benefit-defined 20,142,130.34 20,142,130.34
contribution plans
Total 96,088,621.59 291,495,973.11 322,785,746.27 64,798,848.43
88
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
95,725,486.52 245,059,024.54 276,318,324.20 64,466,186.86
allowance, subsidy
2. Employee welfare 6,362,973.01 6,362,973.01
3. Social insurance 12,654,519.65 12,654,519.65
Of which: Medical
10,015,605.90 10,015,605.90
insurance premiums
Work-re
514,975.61 514,975.61
lated injury insurance
Materni
2,123,938.14 2,123,938.14
ty insurance
4. Housing fund 5,257,270.50 5,257,270.50
5.Labor union budget
and employee education 363,135.07 2,020,055.07 2,050,528.57 332,661.57
budget
Total 96,088,621.59 271,353,842.77 302,643,615.93 64,798,848.43
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 19,470,095.01 19,470,095.01
2. Unemployment
672,035.33 672,035.33
insurance
Total 20,142,130.34 20,142,130.34
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 12,661,807.02 3,147,064.81
Corporate income tax 6,230,743.24 14,907,122.79
Personal income tax 1,273,129.98 704,101.03
Urban maintenance and construction tax 1,627,040.15 761,673.03
Education surcharge 1,162,171.53 544,052.17
89
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Property tax 3,035,301.90 2,374,748.34
Land use tax 2,311,597.02 2,750,413.52
Other 170,816.92 165,290.68
Total 28,472,607.76 25,354,466.37
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 47,164,268.80 43,115,011.68
Total 47,164,268.80 43,115,011.68
(1) Interest Payable
Naught
(2) Dividends Payable
Naught
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Compensation for lawsuit 1,126,231.95 1,762,533.43
Performance bond 31,524,138.52 27,413,254.10
Other 14,513,898.33 13,939,224.15
Total 47,164,268.80 43,115,011.68
2) Significant Other Payables Aging over One Year
Naught
42. Held-for-sale Liabilities
Naught
43. Current Portion of Non-current Liabilities
Naught
90
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
44. Other Current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Naught
45. Long-term Borrowings
Naught
46. Bonds Payable
Naught
47. Lease Liabilities
Naught
48. Long-term Payables
Naught
49. Long-term Payroll Payable
Naught
50. Provisions
Whether the Company has executed the new income standards
□ Yes √ No
Naught
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Government
Government
155,000.31 77,499.96 77,500.35 subsidies related to
subsidies
assets/income
Total 155,000.31 77,499.96 77,500.35 --
91
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
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/related
balance g income in in the the Reporting changes balance
subsidy to income
the Reporting Reporting Period
Period Period
Production
line of 50
million Related to
155,000.31 77,499.96 77,500.35
energy-savin assets
g fluorescent
lamp
Total 155,000.31 77,499.96 77,500.35
52. Other Non-current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Naught
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning
New shares Bonus issue Ending balance
balance Bonus shares Other Subtotal
issued from profit
The sum of 1,399,346,154. 1,399,346,154.
shares 00 00
54. Other Equity Instruments
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium 151,362,201.53 151,362,201.53
92
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(premium on stock)
Other capital reserves 7,245,971.54 7,245,971.54
Total 158,608,173.07 158,608,173.07
56. Treasury Shares
Naught
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less:
Less: Recorded
Recorded in in other
other comprehe Attributabl
Income comprehensi nsive e to Attributabl
before ve income in income in Less: owners of e to
Beginning Ending
Item taxation in prior period prior Income the non-contro
balance balance
the and period and tax Company lling
Current transferred in transferred expense as the interests
Period profit or loss in retained parent after tax
in the earnings in after tax
Current the
Period Current
Period
I. Other comprehensive income
297,672,884 72,496,12 10,874,41 61,621,70 359,294,
that may not subsequently be
.34 9.19 9.38 9.81 594.15
reclassified to profit or loss
Changes in fair value of
297,672,884 72,496,12 10,874,41 61,621,70 359,294,
other equity instrument
.34 9.19 9.38 9.81 594.15
investment
II. Other comprehensive income
that may subsequently be -5,011.54 14,177.84 14,177.84 9,166.30
reclassified to profit or loss
Differences arising from
translation of foreign
-5,011.54 14,177.84 14,177.84 9,166.30
currency-denominated financial
statements
Total of other comprehensive 297,667,872 72,510,30 10,874,41 61,635,88 359,303,
income .80 7.03 9.38 7.65 760.45
93
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
672,569,617.84 672,569,617.84
reserves
Discretionary surplus
136,886,568.36 136,886,568.36
reserves
Total 809,456,186.20 809,456,186.20
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
1,654,181,032.39 1,731,600,796.18
adjustments
Beginning balance of retained earnings after
1,654,181,032.39 1,731,600,796.18
adjustments
Add: Net profit attributable to owners of the
167,275,725.75 229,277,455.82
Company as the parent
Dividend of ordinary shares payable 218,298,000.02 418,531,713.57
Ending retained earnings 1,603,158,758.12 1,542,346,538.43
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
Item Reporting Period Same Period of last year
94
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1,670,888,644.93 1,283,982,749.97 2,048,839,316.62 1,568,876,663.19
Other operations 16,296,015.93 13,353,963.80 15,939,973.37 10,415,204.70
Total 1,687,184,660.86 1,297,336,713.77 2,064,779,289.99 1,579,291,867.89
Whether the Company has executed the new income standards
□ Yes √ No
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 8,002,766.99 8,264,474.00
Education surcharge 5,716,249.15 5,949,176.10
Property tax 3,616,025.09 4,231,277.07
Land use tax 2,499,767.83 2,590,984.95
Vehicle and vessel use tax 4,952.48 6,668.80
Stamp duty 934,962.64 906,543.92
Environmental protection tax 61,544.56 13,393.40
Total 20,836,268.74 21,962,518.24
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 29,625,732.79 30,104,690.49
Freight 36,186,424.88 36,843,018.64
Business travel charges 5,908,417.09 4,436,361.10
Business propagandize fees and
23,221,696.87 9,922,450.58
advertizing fees
Dealer meeting expense 2,629,705.03 2,444,484.12
Sales promotion fees 10,918,490.31 7,768,266.90
Other 14,920,099.41 12,397,738.64
Total 123,410,566.38 103,917,010.47
64. Administrative Expense
Unit: RMB
95
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Item Reporting Period Same period of last year
Employee’s remuneration 41,310,326.31 56,356,593.01
Office expenses 5,056,903.17 5,211,417.98
Rent of land and management charge 2,757,197.21 3,135,605.89
Amortization of intangible assets 2,214,360.20 2,157,008.85
Depreciation charge 7,701,119.24 7,681,086.49
Other 8,497,273.56 10,988,826.52
Total 67,537,179.69 85,530,538.74
65. R&D Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 23,210,591.76 13,466,962.82
Expense on equipment debugging 1,357,085.75 2,277,877.56
Fees for certification testing 2,197,635.38 1,851,079.26
Material consumption 1,955,730.02 598,544.26
Charges related to patents 187,908.12 494,973.06
Depreciation and long-term prepayments 303,946.75 169,890.88
Other 647,734.83 84,164.94
Total 29,860,632.61 18,943,492.78
Other notes:
1. The R&D expense of the Reporting Period was RMB10,917,139.83 with increase of 57.63% compared with that of last year which
was due to the huge increase in labor costs compared with that of last year.
2. In the Company’s R&D activities, the expense on bench-scale and pilot-scale production is recorded in R&D expense, the revenue
generated from the sale of products through bench-scale and pilot-scale production is recorded in main operation revenue, and the
costs incurred are recorded in the cost of sales of main operation.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense
Less: Interest income 10,378,329.29 4,879,439.87
Foreign exchange gains or losses -303,552.28 -9,341,097.44
Other 773,843.90 1,135,060.70
Total -9,908,037.67 -13,085,476.61
96
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Subsidy for stabilizing posts 792,403.17
Supporting fund for import and export 4,494,490.00
Competition among Hundreds of
700,000.00
Enterprises
Other 329,380.00 225,982.00
Total 5,523,870.00 1,018,385.17
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
784,711.98 179,781.56
accounted by equity method
Investment income from holding of trading
1,750,000.00
financial assets
Investment income from disposal of trading
13,550,000.00
financial assets
Investment income from holding of other
13,957,444.99
equity instrument investment
Investment income from holding of
10,971,417.60
available–for-sale financial assets
Income received from financial products and
14,528,002.77 13,358,671.20
structural deposits
Other -730,500.00
Total 43,839,659.74 24,509,870.36
69. Net Gain on Exposure Hedges
Naught
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Trading financial liabilities -996,200.00
97
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Total -996,200.00
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables -340,621.91
Bad debt loss of accounts receivable -696,350.03
Total -1,036,971.94
72. Assets Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss -8,366,488.61
II. Loss on inventory valuation -12,239,244.21 -7,640,381.22
Total -12,239,244.21 -16,006,869.83
73. Assets Disposal Income
Naught
74. 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 1,202,579.96 914,699.96 1,202,579.96
Other 739,292.61 755,156.47 739,292.61
Total 1,941,872.57 1,669,856.43 1,941,872.57
Government subsidies recorded in current profit or loss:
Unit: RMB
Whether
influence the Special Related to
Distribution Distribution Reporting Same period
Item Nature profits or subsidy or assets/related
entity reason Period of last year
losses of the not to income
year or not
98
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Due to
engaged in
special
industry that
the state
Production encouraged
line of 50 and
million supported, Related to
Subsidy No No 77,499.96 77,499.96
energy-savin gained assets
g fluorescent subsidy
lamp (obtaining in
line with the
law and the
regulations of
national
policy)
Subsidy from
Other R&D
miscellaneou Technical Related to
Rewards No No 1,125,080.00 837,200.00
s government updating and income
subsidies transformatio
n, etc.
Total 1,202,579.96 914,699.96
75. 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
53,336.67 70,182.97 53,336.67
non-current assets
Of which: Losses from disposal
53,336.67 70,182.97 53,336.67
of fixed assets
Losses on inventories 170,523.69 170,523.69
Penalty 4,995.00 4,995.00
Delaying payment 239,571.80 239,571.80
Lawsuit compensation 65,000.00
Other 9,964.81 56,566.45 9,964.81
Total 478,391.97 191,749.42 478,391.97
99
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 23,839,915.08 44,301,342.36
Deferred income tax expense 3,327,373.49 2,742,803.34
Total 27,167,288.57 47,044,145.70
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 194,665,931.53
Current income tax expense accounted at statutory/applicable tax
28,967,898.33
rate
Influence of applying different tax rates by subsidiaries 1,166,469.64
Influence of income tax before adjustment -443,721.62
Influence of non-taxable income -2,523,357.78
Income tax expense 27,167,288.57
77. Other Comprehensive Income
Refer to Note 57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Deposit interest 8,960,610.92 10,461,602.02
Income from insurance compensation 245,123.30 50,333.58
Cash deposit income 14,070,620.26 1,729,639.24
Property and rental income 3,133,802.35 2,110,828.30
Income from subsidy 6,634,379.76 1,911,331.54
Income from waste 6,413,317.83 8,814,180.41
Other 5,704,607.15 8,467,917.26
100
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Total 45,162,461.57 33,545,832.35
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 15,681,410.19 20,080,875.34
Selling expense paid in cash 80,443,469.23 70,572,897.55
Finance costs paid in cash 237,571.61 343,210.94
Returned cash deposit 7,855,566.14
Other 6,902,354.83 6,351,791.98
Total 111,120,372.00 97,348,775.81
(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
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
101
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities:
Net profit 167,498,642.96 232,174,685.49
Add: Provision for impairment of assets 13,276,216.15 16,006,869.83
Depreciation of fixed assets, oil-gas assets,
31,885,398.98 34,998,383.79
and productive living assets
Amortization of intangible assets 2,214,360.20 2,157,008.85
Amortization of long-term prepaid expenses 3,198,379.16 2,859,910.25
Losses from disposal of fixed assets (gains:
53,336.67 70,182.97
negative)
Losses from changes in fair value (gains:
996,200.00
negative)
Investment loss (gains: negative) -43,839,659.74 -24,509,870.36
Decrease in deferred income tax assets
3,327,373.49 2,742,803.34
(increase: negative)
Decrease in inventory (gains: negative) 116,836,131.75 23,967,773.95
Decrease in accounts receivable generated
12,637,048.69 -280,200,774.50
from operating activities (gains: negative)
Increase in accounts payable used in
-117,401,594.83 134,456,804.77
operating activities (decrease: negative)
Net cash generated from/used in operating
190,681,833.48 144,723,778.38
activities
2.Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3.Net increase/decrease of cash and cash
-- --
equivalents:
Ending balance of cash 767,162,849.74 911,663,899.88
Less: Beginning balance of cash 795,285,756.38 570,184,208.96
Net increase in cash and cash equivalents -28,122,906.64 341,479,690.92
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught
(3) Net Cash Received from Disposal of the Subsidiaries
Naught
102
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 767,162,849.74 795,285,756.38
Including: Cash on hand 41,073.13 34,937.47
Bank deposit on demand 765,976,136.79 783,346,295.87
Other monetary capital on demand 1,145,639.82 11,904,523.04
III. Ending balance of cash and cash
767,162,849.74 795,285,756.38
equivalents
80. 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
81. Assets with Restricted Ownership or Right to Use
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposit of notes and security
Monetary capital 62,346,866.91 deposit of future foreign exchange
settlement
Notes receivable 79,189,073.66 Pledged for notes pool
Total 141,535,940.57 --
82. 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 -- -- 2,363,055.17
Of which: USD 194,325.01 6.8747 1,335,926.15
EUR 131,396.83 7.8170 1,027,129.02
HKD
Accounts receivable -- -- 278,313,858.59
103
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Of which: USD 40,483,782.36 6.8747 278,313,858.59
EUR
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
Advances from customers 15,878,401.30
Of which: USD 2,250,062.46 6.8747 15,468,504.40
EUR 52,436.60 7.8170 409,896.90
Prepayments 1,462,174.10
Of which: USD 212,689.15 6.8747 1,462,174.10
Other payables 481,710.23
Of which: USD 70,070.00 6.8747 481,710.23
(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
83. Arbitrage
Naught
84. Government Subsidy
(1) Basic Information on Government Subsidy
Unit: RMB
Type Amount Presented in Charged to current profit or loss
Rewards for Competition
700,000.00 Other income 700,000.00
among Hundreds of Enterprises
Supporting fund for import and
4,494,490.00 Other income 4,494,490.00
export
Other 329,380.00 Other income 329,380.00
Production line of 50 million
77,499.96 Non-operating income 77,499.96
energy-saving fluorescent lamp
104
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Other miscellaneous
1,125,080.00 Non-operating income 1,125,080.00
government subsidies
Total 6,726,449.96 6,726,449.96
(2) Return of Government Subsidy
□ Applicable √ Not applicable
85. Other
Naught
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
Naught
2. Business Combination under the Same Control
Naught
3. Counter Purchase
Naught
4. 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:
The original subsidiary not included in combination scope in the current year
On September 7, 2018, the Company held the 26th meeting of the 8th Board of Directors, in which examined and approved the
Proposal on Cancelling the Wholly-owned Subsidiary Guangdong FSL Finance Leasing Co., Ltd.(hereinafter referred as “FSL
Leasing Company). The Company received the Notice of Approval of Cancellation and Registration issued by Market Supervision
and Administration of Foshan on March 26, 2019 and has completed the registration cancellation of FSL Leasing Company. FSL
105
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Leasing Company will not be included in the consolidated financial statements of the Company after cancelling thereof.
6. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Foshan
Chansheng Production and Newly
Foshan Foshan 100.00%
Electronic Ballast sales established
Co., Ltd.
Foshan Lighting
Lamps & Production and Newly
Foshan Foshan 100.00%
Components Co., sales established
Ltd.
Guangdong
Fozhao New
Production and Newly
Light Sources Foshan Foshan 100.00%
sales established
Technology Co.,
Ltd.
FSL Chanchang
Production and Newly
Optoelectronics Foshan Foshan 100.00%
sales established
Co., Ltd.
Foshan Taimei
Production and Newly
Times Lamps and Foshan Foshan 70.00%
sales established
Lanterns Co., Ltd.
Foshan Electrical
& Lighting Production and Newly
Xinxiang Xinxiang 100.00%
(Xinxiang) Co., sales established
Ltd.
Nanjing Fozhao
Lighting Production and
Nanjing Nanjing 100.00% Acquired
Components sales
Manufacturing
106
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Co., Ltd.
FSL Zhida
Electric Production and Newly
Foshan Foshan 51.00%
Technology Co., sales established
Ltd.
FSL LIGHTING Production and Newly
Germany Germany 100.00%
GmbH sales established
Notes: Holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not been
controlled investee:
Naught
Significant structured entities and controlling basis in the scope of combination:
Basis of determining whether the Company is the agent or the principal:
Naught
Other notes:
Naught
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends Balance of
Name of non-controlling attributable to the distributed to non-controlling interests
interests non-controlling interests non-controlling interests at the period-end
Foshan Taimei Times
Lamps and Lanterns Co., 30.00% 452,768.42 8,560,833.21
Ltd.
FSL Zhida Electric
49.00% -229,851.21 13,716,946.93
Technology Co., Ltd.
Holding proportion of minority shareholder in subsidiary different from voting proportion:
Naught
Other notes:
Naught
(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
107
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Foshan
Taimei
Times
36,400,4 19,106,4 55,506,8 26,970,7 26,970,7 35,881,0 19,031,5 54,912,5 27,885,7 27,885,7
Lamps
05.91 61.76 67.67 56.97 56.97 53.56 31.64 85.20 02.58 02.58
and
Lanterns
Co., Ltd.
FSL
Zhida
Electric 74,496,8 10,281,0 84,777,9 41,692,3 41,692,3 74,044,5 10,388,8 84,433,3 40,878,6 40,878,6
Technolo 65.78 76.04 41.82 35.84 35.84 33.25 13.87 47.12 57.04 57.04
gy Co.,
Ltd.
110,897, 29,387,5 140,284, 68,663,0 68,663,0 109,925, 29,420,3 139,345, 68,764,3 68,764,3
Total
271.69 37.80 809.49 92.81 92.81 586.81 45.51 932.32 59.62 59.62
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
59,575,680.8 73,606,152.8 11,967,649.4
Lamps and 1,509,228.08 1,509,228.08 778,035.37 3,544,952.10 3,544,952.10
6 7 2
Lanterns Co.,
Ltd.
FSL Zhida
Electric 38,271,963.9 56,884,635.5
-469,084.10 -469,084.10 6,129,306.92 3,742,334.78 3,742,334.78 -6,170,821.36
Technology 2 4
Co., Ltd.
97,847,644.7 130,490,788.
Total 1,040,143.98 1,040,143.98 6,907,342.29 7,287,286.88 7,287,286.88 5,796,828.06
8 41
(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
108
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
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 Enterprises
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 ventures: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprises: -- --
Total carrying value of investment 180,122,685.92 182,458,559.69
The total of following items according to the
-- --
shareholding proportions
--Net profit 784,711.98 179,781.56
--Total comprehensive income 784,711.98 179,781.56
(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
109
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(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
110
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
estimated due within 1 year.
(III) Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the
change of market price, including: exchange rate risk, interest rate risk and other price risk.
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 June 30, 2019, all assets and
liabilities of the Company were balances in RMB except that the balances of assets and liabilities presented in the
Note VII (82) 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
(III) Other equity
666,584,409.99 666,584,409.99
instrument investment
The total amount of assets
consistently measured at 666,584,409.99 666,584,409.99
fair value
(VII) Specified as
financial liabilities at fair
1,473,400.00 1,473,400.00
value through profit or
loss
The total amount of
1,473,400.00 1,473,400.00
liabilities consistently
111
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
measured at 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 and forward foreign exchange option exchange rate.
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
112
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
XII. Related Party and Related-party Transactions
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
Investment RMB135.409614
Shenzhen Investment 5.12% 5.12%
Development Co., million
Ltd.
Guangdong
Electronics
Guangzhou Sales & Production RMB462 million 4.74% 4.74%
Information Industry
Group Ltd.
Rising Investment
RMB 200 million
Development Co., Hong Kong Investment 1.82% 1.82%
and HKD1 million
Ltd.
Guangdong Rising
Finance Holding Zhuhai Investment RMB1393 million 0.54% 0.54%
Co., Ltd.
Total 25.70% 25.70%
Notes: Information on the Company as the parent
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 2019, the aforesaid persons acting in concert
holding total A, B share of the Company 359,632,344.00 shares, 25.70 % of total share equity 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 Subsidiaries for details.
113
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of significant joint ventures
or associated enterprises of the Company.
4. Information on Other Related 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
Guangdong Vollsun Data Solid-state Storage Co., Ltd Under same actual controller
Guangdong Rising Finance Limited Under same actual controller
MTM Semiconductor Equipment Co., Ltd. Under same actual controller
Henan Rising Technology Investment Co., Ltd. Under same actual controller
Guangdong Electronic Technology Research Institute Under same actual controller
Guangzhou Diansheng Property Management Co., Ltd. Under same actual controller
Hangzhou Times Lighting and Electrical Co., Ltd. Company controlled by related natural person
Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. Company controlled by related natural person
Prosperity Electrical (China) Co., Ltd. Company controlled by related natural person
Siteco Prosperity Lighting (Langfang) Co., Ltd. Company controlled by related natural person
Company controlled by related natural person with significant
OSRAM (China) Lighting Co., Ltd.
influence
5. List of Related-party 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
Related party Content Reporting Period
credit credit or not year
Prosperity Lamps
Purchase of
and Components 1,358,912.39 12,000,000.00 No 3,844,498.14
materials
Ltd.
Prosperity Electrical Purchase of
4,500,000.00 No 729,882.89
(China) Co., Ltd. materials
114
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Hangzhou Times
Purchase of
Lighting and 317,153.35 1,000,000.00 No 368,916.04
materials
Electrical Co., Ltd.
Foshan NationStar
Purchase of
Optoelectronics 24,160,788.99 210,000,000.00 No 43,595,754.55
materials
Co., Ltd.
Guangdong
Fenghua Advanced Purchase of
1,919,036.93 10,000,000.00 No 5,172,863.77
Technology Holding materials
Co., Ltd.
Guangdong
Electronic Purchase of
46,551.72 3,000,000.00 No 760,683.76
Technology equipment
Research Institute
MTM
Purchase of
Semiconductor 261,855.01 1,000,000.00 No 323,282.05
equipment
Equipment Co., Ltd.
Guangdong Vollsun
Purchase of
Data Solid-state 1,600,000.00
equipment
Storage Co., Ltd.
Total 28,064,298.39 241,500,000.00 56,395,881.20
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
PROSPERITY LAMPS &
Sale of products 11,773,638.34 18,871,809.73
COMPONENTS LTD
Prosperity Electrical (China) Co.,
Sale of products 56,974.66 175,397.67
Ltd.
Prosperity (Hangzhou) Lighting and
Sale of products 46,299.15
Electrical Co., Ltd.
Guangdong Rising Optoelectronics
Sale of products 568.97
Co., Ltd.
Guangzhou Diansheng Property
Sale of products 846.90
Management Co., Ltd.
Total 11,831,459.90 19,094,075.52
Information of sales/purchase of goods and provision/reception of labor service
The pricing for related-party transactions observes the principle of market subject to the market price when the transaction happens
and relevant accounts shall be paid on time based on actual transaction.
115
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(2) Information on Related-party Trusteeship/Contract
Naught
(3) Information on Related-party 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
Information Industry Group Vehicles 5,699.21 8,333.31
Ltd.
(4) Information on Related-party Guarantee
Naught
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Related 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
General Manager 707,777.02 700,000.00
Chairman of the Supervisory Committee 199,621.80 0.00
Secretary of the Board 66,667.00 400,000.00
Chief Financial Officer 407,777.02 400,000.00
Other 2,773,195.18 2,695,000.00
Total 4,155,038.02 4,195,000.00
116
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(8) Other Related-party Transactions
Naught
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Guangdong Rising
Interest receivable 16,711.11 49,800.02
Finance Co., Ltd.
Guangdong Vollsun
Accounts receivable Data Solid-state 2,753,280.00 82,598.40 2,753,280.00 82,598.40
Storage Co., Ltd.
Guangzhou
Diansheng Property
Accounts receivable 957.00 28.71
Management Co.,
Ltd.
PROSPERITY
LAMPS &
Accounts receivable 3,642,370.89 109,271.13 3,676,377.29 110,291.32
COMPONENTS
LTD
Prosperity
(Hangzhou) Lighting
Accounts receivable 86,367.27 86,293.82 86,367.27 69,093.82
and Electrical Co.,
Ltd.
OSRAM (China)
Accounts receivable 117,554.16 41,566.93 117,554.16 35,266.25
Lighting Co., Ltd.
Prosperity Electrical
Prepayments 7,521.37 7,521.37
(China) Co., Ltd.
MTM
Prepayments Semiconductor 28,368.00
Equipment Co., Ltd
Guangdong
Electronics
Other receivables 19,500.00 585.00
Information Industry
Group Ltd.
Total 6,624,761.80 319,758.99 6,738,768.11 297,834.79
117
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Foshan NationStar
Accounts payable 15,740,680.29 17,964,138.25
Optoelectronics Co., Ltd.
Guangdong Fenghua Advanced
Accounts payable 1,757,507.91 1,489,703.61
Technology Holding Co., Ltd.
Siteco Prosperity Lighting
Accounts payable 251,021.56 251,021.56
(Langfang) Co., Ltd.
Prosperity Electrical (China)
Accounts payable 160,759.70 160,759.70
Co., Ltd.
Hangzhou Times Lighting and
Accounts payable 197,700.70 229,109.60
Electrical Co., Ltd.
Prosperity Lamps and
Accounts payable 554,680.06
Components Ltd.
Guangdong Electronic
Other payables 181,700.00 179,000.00
Technology Research Institute
Prosperity Electrical (China)
Other payables 100,000.00 100,000.00
Co., Ltd.
MTM Semiconductor
Other payables 21,000.00 38,600.00
Equipment Co., Ltd.
Prosperity Lamps and
Other payables 481,710.23 480,904.43
Components Ltd.
Foshan NationStar
Other payables 200,000.00
Optoelectronics Co., Ltd.
Guangdong Electronics
Other payables Information Industry Group 11,111.12
Ltd.
Prosperity Electrical (China)
Advances from customers 57,295.04 38,646.66
Co., Ltd.
Total 19,149,375.43 21,497,674.99
7. Commitments of Related Party
(1)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About avoidance of horizontal competition
Contents: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
118
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Investment have made a commitment that the elimination of the horizontal competition between Foshan Nation
Star 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
119
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
procedure and information disclosure duties pursuant to the applicable laws, regulations and regulatory documents.
Where the aforesaid commitments are broken and a loss is thus caused for the Company, its subsidiaries or the
Company’s other shareholders, they shall be obliged to compensate.
Date of commitment making: 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
120
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
independent bank accounts and not share bank accounts with its related parties. (3) They promise that the
Company’s financial personnel do not hold concurrent positions in its related parties. (4) They promise that the
Company will independently pay its tax according to law. And (5) They promise that the Company can make
financial decisions independently and that they will not illegally intervene in the Company’s use of its funds.
Date of commitment making: 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
121
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
2. Contingency
(1) Significant Contingency on Balance Sheet Date
Naught
(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
122
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
3. Assets Replacement
Naught
4. Pension Plan
Naught
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
Category Withdra Withdraw
Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Accounts receivable
for which bad debt 23,377,2 16,266,8 7,110,413 23,377,22 16,266,81 7,110,413.5
3.09% 69.58% 2.78% 69.58%
provision separately 23.66 10.09 .57 3.66 0.09 7
accrued
Of which:
Accounts receivable 732,299, 96.91% 30,039,3 4.10% 702,259,9 819,146,6 97.22% 30,359,11 3.71% 788,787,51
123
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
for which bad debt 386.93 93.85 93.08 35.09 6.01 9.08
provision accrued by
group
Of which:
755,676, 46,306,2 709,370,4 842,523,8 46,625,92 795,897,93
Total 100.00% 6.13% 100.00% 5.53%
610.59 03.94 06.65 58.75 6.10 2.65
Individual withdrawal of bad debt provision by single item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Involved in the lawsuit;
the Company won in the
Customer A 14,220,827.14 7,110,413.57 50.00% first instance judgment
and the other side had
appealed
Involved in the lawsuit,
Customer B 9,156,396.52 9,156,396.52 100.00% the case hasn’t been
finalized
Total 23,377,223.66 16,266,810.09 -- --
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal reason
Credit risk 732,299,386.93 30,039,393.85 4.10%
Total 732,299,386.93 30,039,393.85 --
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 676,467,035.42
1 to 2 years 22,338,039.73
2 to 3 years 7,653,591.61
3 to 4 years 2,782,638.29
4 to 5 years 129,101.60
124
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Total 709,370,406.65
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Category Beginning balance Ending balance
Withdrawal Reversal or recovery Write-off
Accounts receivable 46,625,926.10 -210,202.38 109,519.78 46,306,203.94
Total 46,625,926.10 -210,202.38 109,519.78 46,306,203.94
Of which bad debt provision recovered or reversed with significant amount during the Reporting Period:
Naught
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
No. 1 109,420.64
Other driblet small amount 99.14
Of which verification of significant accounts receivable:
Naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Relationship with the Carrying amount Amount of bad debt Proportion to total
Name
Company provision withdrawn accounts receivable
No. 1 Non-related party 116,548,474.42 3,496,454.23 15.42%
No. 2 Non-related party 21,132,097.12 691,796.76 2.80%
No. 3 Non-related party 18,052,065.50 834,975.20 2.39%
No. 4 Non-related party 17,103,092.54 1,710,309.25 2.26%
No. 5 Non-related party 16,775,164.92 1,677,516.49 2.22%
Total 189,610,894.50 8,411,051.93 25.09%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
125
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Naught
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Interest receivable 5,828,623.70 5,152,364.04
Other receivables 43,751,294.85 38,386,484.68
Total 49,579,918.55 43,538,848.72
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
Item Ending balance Beginning balance
Fixed time deposit 1,575,001.54 56,317.78
Structural deposit 2,400,361.88 3,151,895.54
Bank financial products 1,853,260.28 1,944,150.72
Total 5,828,623.70 5,152,364.04
2) Significant Overdue Interest
Naught
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Accounts Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Internal business group 23,824,279.81 22,478,786.69
Borrowings and petty cash for employees 6,070,982.35 3,294,170.26
VAT export tax refunds 6,006,579.00 6,252,642.96
126
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Performance bond 3,904,842.00 2,905,450.00
Rental fees and water & electricity fees 1,253,446.62 765,582.10
Other 4,302,146.66 3,991,470.59
Total 45,362,276.44 39,688,102.60
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Bad debt provision Expected credit loss Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
406,679.05 894,938.87 1,301,617.92
2019
Balance of 1 January
2019 in the current —— —— —— ——
period
Withdrawal of the
132,933.30 176,430.37 309,363.67
current period
Balance of 30 June 2019 539,612.35 1,071,369.24 1,610,981.59
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 41,271,745.79
1 to 2 years 1,483,985.07
2 to 3 years 927,958.10
3 to 4 years 10,000.00
4 to 5 years 57,605.89
Total 43,751,294.85
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision
Unit: RMB
Changes in the Reporting Period
Category Beginning balance Ending balance
Withdrawal Reversal or recovery
Other accounts
1,301,617.92 309,363.67 1,610,981.59
receivable
Total 1,301,617.92 309,363.67 1,610,981.59
127
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Of which bad debt provision recovered or reversed with significant amount during the Reporting Period:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to ending
Ending balance of
Name of the entity Nature Ending balance Aging balance of total other
bad debt provision
receivables%
Internal business
No. 1 18,835,715.58 Within 3 years 41.52%
group
No. 2 Export rebates 6,006,579.00 Within 1 year 13.24% 180,197.37
Internal business
No. 3 4,584,479.53 Within 1 year 10.11%
group
No. 4 Other 1,296,947.31 Within 3 years 2.86% 314,327.63
No. 5 Other 1,157,064.20 Within 1 year 2.55% 34,711.93
Total -- 31,880,785.62 -- 70.28% 529,236.93
6) Accounts Receivable Involving Government Subsidies
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other Receivables
Naught
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
283,793,102.26 283,793,102.26 283,793,102.26 283,793,102.26
subsidiaries
Investment to
joint ventures and
180,122,685.92 180,122,685.92 182,458,559.69 182,458,559.69
associated
enterprises
Total 463,915,788.18 463,915,788.18 466,251,661.95 466,251,661.95
128
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(1) Investment to Subsidiaries
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
35,418,439.76 35,418,439.76
(Xinxiang) Co.,
Ltd.
Guangdong
Fozhao New Light
Sources 50,077,000.00 50,077,000.00
Technology Co.,
Ltd.
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
Total 283,793,102.26 283,793,102.26
129
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Beginnin Reduced Changes bonus or al of Ending of
Investee l recognize other
g balance investmen of other profits impairme Other balance depreciati
investmen d under comprehe
t equity announce nt on
t the equity nsive
d to issue provision reserve
method income
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
ix 182,458,5 784,711.9 3,120,585 180,122,6
(Nanho) 59.69 8 .75 85.92
Electronic
s Ltd.
182,458,5 784,711.9 3,120,585 180,122,6
Subtotal
59.69 8 .75 85.92
182,458,5 784,711.9 3,120,585 180,122,6
Total
59.69 8 .75 85.92
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 business 1,587,821,567.72 1,245,016,649.64 1,951,987,821.57 1,545,234,231.64
Other business 47,837,600.24 39,394,932.17 52,300,623.19 42,160,088.89
Total 1,635,659,167.96 1,284,411,581.81 2,004,288,444.76 1,587,394,320.53
Whether the Company has executed the new income standards
□ Yes √ No
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
784,711.98 179,781.56
accounted by equity method
130
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
Investment income from disposal of
330,228.20
long-term equity investment
Investment income from holding of trading
1,750,000.00
financial assets
Investment income from disposal of trading
13,550,000.00
financial assets
Dividend income from holding of other
13,957,444.99
equity instrument investment
Investment income from holding of
10,971,417.60
available-for-sale financial assets
Investment income from financial products
14,528,002.77 9,886,641.16
and structural deposits
Other -730,500.00
Total 44,169,887.94 21,037,840.32
6. Other
Naught
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
-53,336.67
assets
Government grants recognized in the current
period, except for those acquired in the
ordinary course of business or granted at 2,231,959.96
certain quotas or amounts according to the
government’s unified standards
Gain/loss from change of fair value of
trading assets and liabilities, derivative in
financial assets and liabilities, and
Mainly because investment income
investment gains from disposal of trading
12,553,800.00 obtained from selling equity of Chengdu
financial assets and liabilities, derivative
Hongbo Enterprise Co., Ltd.
financial assets and liabilities, and other
creditors’ investment, other than valid
hedging related to the Company’s common
131
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
businesses
Other non-operating income and expenses
314,237.31
other than the above
Less: Income tax effects 2,287,287.39
Non-controlling interests effects 1,635.12
Total 12,757,738.09 --
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
3.77% 0.1195 0.1195
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
3.49% 0.1104 0.1104
deduction of non-recurring profit or
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
132
Foshan Electrical and Lighting Co., Ltd.The semi-annual financial report 2019
4. Other
Naught
133
