Foshan Electrical and Lighting Co., Ltd.
The semi-annual financial report 2020
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
30 June 2020
Unit: RMB
Item 30 June 2020 31 December 2019
Current assets:
Monetary assets 1,270,922,790.30 1,125,456,662.64
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 657,796,459.38 901,166,682.64
Derivative financial assets
Notes receivable 96,328,610.62 109,444,480.94
Accounts receivable 754,565,733.58 712,175,266.51
Accounts receivable financing
Prepayments 6,588,282.64 7,851,390.78
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 30,629,514.19 22,307,344.76
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 524,621,286.70 637,336,584.06
1
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 46,195,101.66 52,502,863.59
Total current assets 3,387,647,779.07 3,568,241,275.92
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 183,738,416.82 181,093,725.43
Investments in other equity
1,997,994,223.39 1,454,740,241.46
instruments
Other non-current financial assets
Investment property
Fixed assets 654,479,073.26 629,832,098.35
Construction in progress 82,647,609.80 119,030,610.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 165,612,140.26 167,826,499.74
Development costs
Goodwill
Long-term prepaid expense 6,241,458.24 7,727,394.74
Deferred income tax assets 31,706,831.27 36,847,064.36
Other non-current assets 7,440,250.54 9,861,098.08
Total non-current assets 3,129,860,003.58 2,606,958,732.32
Total assets 6,517,507,782.65 6,175,200,008.24
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
2
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Notes payable 245,253,258.83 374,665,327.74
Accounts payable 610,696,483.53 559,016,692.70
Advances from customers 50,449,357.17
Contract liabilities 41,949,069.17
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 44,377,716.78 83,156,852.86
Taxes payable 36,797,827.09 17,211,068.21
Other payables 55,847,187.57 46,073,344.71
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,034,921,542.97 1,130,572,643.39
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
3
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Deferred income tax liabilities 218,474,381.48 137,216,136.70
Other non-current liabilities
Total non-current liabilities 218,474,381.48 137,216,136.70
Total liabilities 1,253,395,924.45 1,267,788,780.09
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 1,238,009,149.48 776,260,348.19
Specific reserve
Surplus reserves 836,559,645.36 836,559,645.36
General reserve
Retained earnings 1,602,144,888.79 1,709,962,479.45
Total equity attributable to owners of
5,234,668,010.70 4,880,736,800.07
the Company as the parent
Non-controlling interests 29,443,847.50 26,674,428.08
Total owners’ equity 5,264,111,858.20 4,907,411,228.15
Total liabilities and owners’ equity 6,517,507,782.65 6,175,200,008.24
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2020 31 December 2019
Current assets:
Monetary assets 1,203,728,130.09 1,059,001,233.28
Held-for-trading financial assets 657,796,459.38 901,166,682.64
Derivative financial assets
Notes receivable 86,684,688.94 107,567,164.99
Accounts receivable 695,350,047.31 666,106,832.53
Accounts receivable financing
Prepayments 4,437,435.40 6,614,791.10
4
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Other receivables 46,389,136.26 37,934,614.96
Including: Interest receivable
Dividends receivable
Inventories 451,996,367.75 553,557,529.00
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 38,810,467.31 43,118,385.01
Total current assets 3,185,192,732.44 3,375,067,233.51
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 467,531,519.08 464,886,827.69
Investments in other equity
1,997,994,223.39 1,454,740,241.46
instruments
Other non-current financial assets
Investment property
Fixed assets 600,171,929.04 573,844,707.66
Construction in progress 82,477,792.67 116,240,559.37
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 123,833,564.79 125,673,065.66
Development costs
Goodwill
Long-term prepaid expense 4,118,018.95 4,891,398.93
Deferred income tax assets 28,591,147.92 34,205,213.27
Other non-current assets 6,121,450.54 8,440,448.08
Total non-current assets 3,310,839,646.38 2,782,922,462.12
Total assets 6,496,032,378.82 6,157,989,695.63
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
5
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Derivative financial liabilities
Notes payable 245,253,258.83 376,265,327.74
Accounts payable 742,443,210.84 689,846,497.35
Advances from customers 46,758,714.00
Contract liabilities 38,638,644.92
Employee benefits payable 31,813,426.00 68,658,329.30
Taxes payable 27,472,927.96 12,374,430.19
Other payables 152,464,042.95 125,001,875.83
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities
Total current liabilities 1,238,085,511.50 1,318,905,174.41
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 218,474,381.48 137,216,136.70
Other non-current liabilities
Total non-current liabilities 218,474,381.48 137,216,136.70
Total liabilities 1,456,559,892.98 1,456,121,311.11
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
6
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Perpetual bonds
Capital reserves 166,211,779.15 166,211,779.15
Less: Treasury stock
Other comprehensive income 1,238,008,872.55 776,242,987.90
Specific reserve
Surplus reserves 836,559,645.36 836,559,645.36
Retained earnings 1,399,346,034.78 1,523,507,818.11
Total owners’ equity 5,039,472,485.84 4,701,868,384.52
Total liabilities and owners’ equity 6,496,032,378.82 6,157,989,695.63
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
Item H1 2020 H1 2019
1. Revenue 1,522,884,127.04 1,687,184,660.86
Including: Operating revenue 1,522,884,127.04 1,687,184,660.86
Interest income
Insurance premium income
Handling charge and commission income
2. Costs and expenses 1,376,707,249.71 1,529,073,323.52
Including: Cost of sales 1,161,598,236.11 1,297,336,713.77
Interest expense
Handling charge and commission
expense
Surrenders
Net insurance claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surcharges 15,851,397.76 20,836,268.74
Selling expense 95,277,602.70 123,410,566.38
Administrative expense 64,215,895.53 67,537,179.69
R&D expense 59,098,081.73 29,860,632.61
7
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Finance costs -19,333,964.12 -9,908,037.67
Including: Interest expense
Interest
17,488,125.06 10,378,329.29
income
Add: Other income 3,028,003.10 5,523,870.00
Return on investment (“-” for loss) 36,143,255.71 43,839,659.74
Including: Share of profit or loss of joint
4,725,081.89 784,711.98
ventures and associates
Income from the derecognition of
financial assets at amortized cost (“-” for
loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-” for
loss)
Gain on changes in fair value (“-”
-1,532,350.00 -996,200.00
for loss)
Credit impairment loss (“-” for loss) -3,379,210.38 -1,036,971.94
Asset impairment loss (“-” for loss) -3,200,793.69 -12,239,244.21
Asset disposal income (“-” for loss) 7,489.02
3. Operating profit (“-” for loss) 177,243,271.09 193,202,450.93
Add: Non-operating income 662,887.00 1,941,872.57
Less: Non-operating expense 1,024,568.14 478,391.97
4. Profit before tax (“-” for loss) 176,881,589.95 194,665,931.53
Less: Income tax expense 23,050,722.70 27,167,288.57
5. Net profit (“-” for net loss) 153,830,867.25 167,498,642.96
5.1 By operating continuity
5.1.1 Net profit from continuing
153,830,867.25 167,498,642.96
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 owners of
151,061,447.83 167,275,725.75
the Company as the parent
5.2.1 Net profit attributable to
2,769,419.42 222,917.21
non-controlling interests
6. Other comprehensive income, net of
461,748,801.29 61,635,887.65
tax
Attributable to owners of the Company as 461,748,801.29 61,635,887.65
8
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
the parent
6.1 Items that will not be reclassified to
461,765,884.65 61,621,709.81
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit 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
461,765,884.65 61,621,709.81
investments in other equity instruments
6.1.4 Changes in the fair value arising
from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit
-17,083.36 14,177.84
or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under
the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Other comprehensive income
arising from the reclassification of
financial assets
6.2.4 Credit impairment allowance for
investments in other debt obligations
6.2.5 Reserve for cash flow hedges
6.2.6 Differences arising from the
translation of foreign
-17,083.36 14,177.84
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling interests
7. Total comprehensive income 615,579,668.54 229,134,530.61
Attributable to owners of the Company as
612,810,249.12 228,911,613.40
the parent
Attributable to non-controlling interests 2,769,419.42 222,917.21
8. Earnings per share
8.1 Basic earnings per share 0.1080 0.1195
8.2 Diluted earnings per share 0.1080 0.1195
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 .
9
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2020 H1 2019
1. Operating revenue 1,422,984,075.84 1,635,659,167.96
Less: Cost of sales 1,114,257,858.54 1,284,411,581.81
Taxes and surcharges 12,796,090.44 17,949,984.61
Selling expense 87,141,728.10 114,023,284.09
Administrative expense 56,438,900.74 58,470,337.78
R&D expense 53,411,931.20 28,129,639.08
Finance costs -19,059,613.45 -9,671,203.12
Including: Interest expense
Interest income 17,198,883.00 10,124,433.97
Add: Other income 2,807,028.00 5,323,870.00
Return on investment (“-” for
36,143,255.71 44,169,887.94
loss)
Including: Share of profit or loss of
4,725,081.89 784,711.98
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 (“-”
-1,532,350.00 -996,200.00
for loss)
Credit impairment loss (“-” for loss) -1,548,956.28 -99,161.29
Asset impairment loss (“-” for loss) -2,500,432.51 -11,804,419.91
Asset disposal income (“-” for loss) 7,489.02
2. Operating profit (“-” for loss) 151,373,214.21 178,939,520.45
Add: Non-operating income 527,849.42 1,748,491.88
Less: Non-operating expense 268,377.64 387,894.46
3. Profit before tax (“-” for loss) 151,632,685.99 180,300,117.87
Less: Income tax expense 16,915,430.83 22,896,024.86
4. Net profit (“-” for net loss) 134,717,255.16 157,404,093.01
4.1 Net profit from continuing 134,717,255.16 157,404,093.01
10
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
461,765,884.65 61,621,709.81
tax
5.1 Items that will not be reclassified to
461,765,884.65 61,621,709.81
profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
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
461,765,884.65 61,621,709.81
investments in other equity instruments
5.1.4 Changes in the fair value arising
from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
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 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance for
investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 596,483,139.81 219,025,802.82
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
11
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2020 H1 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities and
1,515,624,335.16 1,751,423,769.24
rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
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 from acting trading of
securities
Tax rebates 41,505,723.58 48,922,234.35
Cash generated from other operating
43,607,475.27 45,162,461.57
activities
Subtotal of cash generated from
1,600,737,534.01 1,845,508,465.16
operating activities
Payments for commodities and
939,689,423.66 1,126,149,726.07
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans
granted
12
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 310,458,004.56 322,785,746.27
Taxes paid 58,197,306.93 94,770,787.34
Cash used in other operating
91,315,095.41 111,120,372.00
activities
Subtotal of cash used in operating
1,399,659,830.56 1,654,826,631.68
activities
Net cash generated from/used in
201,077,703.45 190,681,833.48
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 245,000,000.00 6,000,000.00
Return on investment 35,020,943.18 48,172,890.30
Net proceeds from the disposal of
fixed assets, intangible assets and other 131,978.12 40,834.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
280,152,921.30 54,213,724.30
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 43,720,265.19 18,563,706.98
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 activities
Subtotal of cash used in investing
43,720,265.19 53,563,706.98
activities
Net cash generated from/used in
236,432,656.11 650,017.32
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised
13
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Interest and dividends paid 258,879,038.49 218,298,000.02
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing activities
Subtotal of cash used in financing
258,879,038.49 218,298,000.02
activities
Net cash generated from/used in
-258,879,038.49 -218,298,000.02
financing activities
4. Effect of foreign exchange rates
-103,583.76 -1,156,757.42
changes on cash and cash equivalents
5. Net increase in cash and cash
178,527,737.31 -28,122,906.64
equivalents
Add: Cash and cash equivalents,
1,049,833,555.02 795,285,756.38
beginning of the period
6. Cash and cash equivalents, end of the
1,228,361,292.33 767,162,849.74
period
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2020 H1 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities and
1,439,542,964.28 1,691,951,258.99
rendering of services
Tax rebates 41,500,167.87 48,910,795.69
Cash generated from other operating
36,847,098.74 34,052,232.29
activities
Subtotal of cash generated from
1,517,890,230.89 1,774,914,286.97
operating activities
Payments for commodities and
958,739,460.46 1,178,508,853.41
services
Cash paid to and for employees 237,328,269.38 244,677,337.79
Taxes paid 37,998,771.62 65,955,849.88
Cash used in other operating 84,878,540.95 100,456,711.55
14
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
activities
Subtotal of cash used in operating
1,318,945,042.41 1,589,598,752.63
activities
Net cash generated from/used in
198,945,188.48 185,315,534.34
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 245,000,000.00 6,000,000.00
Return on investment 35,020,943.18 48,503,118.50
Net proceeds from the disposal of
fixed assets, intangible assets and other 125,361.02 40,330.00
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
280,146,304.20 54,543,448.50
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 42,331,728.97 17,446,155.95
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 activities
Subtotal of cash used in investing
42,331,728.97 52,446,155.95
activities
Net cash generated from/used in
237,814,575.23 2,097,292.55
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Interest and dividends paid 258,879,038.49 218,298,000.02
Cash used in other financing activities
Subtotal of cash used in financing
258,879,038.49 218,298,000.02
activities
15
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Net cash generated from/used in
-258,879,038.49 -218,298,000.02
financing activities
4. Effect of foreign exchange rates
-92,218.76 -1,176,711.33
changes on cash and cash equivalents
5. Net increase in cash and cash
177,788,506.46 -32,061,884.46
equivalents
Add: Cash and cash equivalents,
983,378,125.66 747,588,730.42
beginning of the period
6. Cash and cash equivalents, end of the
1,161,166,632.12 715,526,845.96
period
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
7. Consolidated Statements of Changes in Owners’ Equity
H1 2020
Unit: RMB
H1 2020
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
Prefe Perpe ’
capita reserve c l Other
ry ve reserve earnin al interes
rred tual equity
l Other s reserve reserve
stock incom s gs ts
share bond
s s e
1,399
1. Balance as at 158,60 776,26 836,55 1,709, 4,880, 26,674 4,907,
,346,
the end of the 8,173. 0,348. 9,645. 962,47 736,80 ,428.0 411,22
154.0
prior year 07 19 36 9.45 0.07 8 8.15
0
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction of
previous error
Adjustment
for business
combination
under common
control
16
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Other
adjustments
1,399
2. Balance as at 158,60 776,26 836,55 1,709, 4,880, 26,674 4,907,
,346,
the beginning of 8,173. 0,348. 9,645. 962,47 736,80 ,428.0 411,22
154.0
the year 07 19 36 9.45 0.07 8 8.15
0
3. Increase/
461,74 -107,8 353,93 356,70
decrease in the 2,769,
8,801. 17,590 1,210. 0,630.
period (“-” for 419.42
29 .66 63 05
decrease)
3.1 Total 461,74 151,06 612,81 615,57
2,769,
comprehensive 8,801. 1,447. 0,249. 9,668.
419.42
income 29 83 12 54
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares increased
by owners
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
-258,8 -258,8 -258,8
3.3 Profit
79,038 79,038 79,038
distribution
.49 .49 .49
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3 -258,8 -258,8 -258,8
17
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Appropriation 79,038 79,038 79,038
to owners (or .49 .49 .49
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
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. Balance as at 1,399 158,60 1,238, 836,55 1,602, 5,234, 29,443 5,264,
18
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
the end of the ,346, 8,173. 009,14 9,645. 144,88 668,01 ,847.5 111,85
period 154.0 07 9.48 36 8.79 0.70 0 8.20
0
H1 2019
Unit: RMB
H1 2019
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’
Prefe Perp
capita reserve c l Other
ry ve reserve earnin al interest equity
rred etual
l Other s reserve reserve
stock incom s gs s
share bond
s s e
1,399
1. Balance as at 158,60 297,66 809,45 1,654, 4,319, 4,341,3
,346, 22,054,
the end of the 8,173. 7,872. 6,186. 181,03 259,41 14,281.
154.0 862.93
prior year 07 80 20 2.39 8.46 39
0
Add:
Adjustment for 289,35 289,35
289,351
change in 1,686. 1,686.
,686.49
accounting 49 49
policy
Adjustment
for correction
of previous
error
Adjustment
for business
combination
under common
control
Other
adjustments
1,399
2. Balance as at 158,60 587,01 809,45 1,654, 4,608, 4,630,6
,346, 22,054,
the beginning 8,173. 9,559. 6,186. 181,03 611,10 65,967.
154.0 862.93
of the year 07 29 20 2.39 4.95 88
0
3. Increase/
61,635 -51,02 10,613
decrease in the 222,917 10,836,
,887.6 2,274. ,613.3
period (“-” for .21 530.59
5 27 8
decrease)
3.1 Total 61,635 167,27 228,91 222,917 229,134
19
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
comprehensive ,887.6 5,725. 1,613. .21 ,530.61
income 5 75 40
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares
increased by
owners
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 -218,29
3.3 Profit
98,000 98,000 8,000.0
distribution
.02 .02 2
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-218,2 -218,2 -218,29
Appropriation
98,000 98,000 8,000.0
to owners (or
.02 .02 2
shareholders)
3.3.4
Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
20
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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
1,399
4. Balance as at 158,60 648,65 809,45 1,603, 4,619, 4,641,5
,346, 22,277,
the end of the 8,173. 5,446. 6,186. 158,75 224,71 02,498.
154.0 780.14
period 07 94 20 8.12 8.33 47
0
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
21
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2020
Unit: RMB
H1 2020
Other equity
Other Retaine
instruments Less: Total
Item Share Capital compreh Specific Surplus d
Preferr Perpet Treasury Other owners’
capital reserves ensive reserve reserves earning
ed ual Other stock equity
income s
shares bonds
1. Balance as at 1,399,3 1,523,5
166,211, 776,242, 836,559, 4,701,868,
the end of the 46,154. 07,818.
779.15 987.90 645.36 384.52
prior year 00 11
Add: Adjustment
for change in
accounting
policy
Adjustment
for correction of
previous error
Other
adjustments
2. Balance as at 1,399,3 1,523,5
166,211, 776,242, 836,559, 4,701,868,
the beginning of 46,154. 07,818.
779.15 987.90 645.36 384.52
the year 00 11
3. Increase/
-124,16
decrease in the 461,765, 337,604,1
1,783.3
period (“-” for 884.65 01.32
3
decrease)
3.1 Total 134,71
461,765, 596,483,1
comprehensive 7,255.1
884.65 39.81
income 6
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares increased
by owners
3.2.2 Capital
increased by
holders of other
22
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
3.2.4 Other
-258,87
3.3 Profit -258,879,0
9,038.4
distribution 38.49
9
3.3.1
Appropriation to
surplus reserves
3.3.2
-258,87
Appropriation to -258,879,0
9,038.4
owners (or 38.49
9
shareholders)
3.3.3 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
schemes
transferred to
retained earnings
3.4.5 Other
comprehensive
23
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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. Balance as at 1,399,3 1,399,3
166,211, 1,238,00 836,559, 5,039,472,
the end of the 46,154. 46,034.
779.15 8,872.55 645.36 485.84
period 00 78
H1 2019
Unit: RMB
H1 2019
Other equity
Other
instruments Less: Total
Item Share Capital compre Specific Surplus Retained
Preferr Perpet Treasur Other owners’
capital reserves hensive reserve reserves earnings
ed ual Other y stock equity
income
shares bonds
1. Balance as at 1,399,
166,211, 297,672 809,456 1,482,164 4,154,851,7
the end of the 346,15
779.15 ,884.34 ,186.20 ,706.92 10.61
prior year 4.00
Add:
Adjustment for
289,351 289,351,68
change in
,686.49 6.49
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as at 1,399,
166,211, 587,024 809,456 1,482,164 4,444,203,3
the beginning 346,15
779.15 ,570.83 ,186.20 ,706.92 97.10
of the year 4.00
3. Increase/ 61,621, -60,893,9 727,802.80
24
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
decrease in the 709.81 07.01
period (“-” for
decrease)
3.1 Total
61,621, 157,404,0 219,025,80
comprehensive
709.81 93.01 2.82
income
3.2 Capital
increased and
reduced by
owners
3.2.1 Ordinary
shares increased
by owners
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
3.3 Profit -218,298, -218,298,00
distribution 000.02 0.02
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation -218,298, -218,298,00
to owners (or 000.02 0.02
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
25
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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. Balance as at 1,399,
166,211, 648,646 809,456 1,421,270 4,444,931,1
the end of the 346,15
779.15 ,280.64 ,186.20 ,799.91 99.90
period 4.00
Legal representative: Wu Shenghui General Manager: Lei Zihe Chief Financial Officer: Tang Qionglan
26
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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. Wu Shenghui
Address: No. 64, Fenjiang North Road, Foshan, Guangdong Province
Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products
and electro technical products.
The business term of the Company is long-term, which was calculated from the date of issuance of License of
Business Corporation.
The Financial Report was approved and authorized for issue by the Board of Directors on 27 August 2020.
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”).
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
27
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 12. Accounts
Receivable), 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. Revenue), etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the Accounting Standards for Business
Enterprises, which factually and completely present the Company’s and the consolidated financial positions,
business results and cash flows, as well as other relevant information.
2. Fiscal Year
A fiscal year starts on January 1st and ends on December 31st according to the Gregorian calendar.
3. Operating Cycle
An operating cycle for the Company is 12 months, which is also the classification criterion for the liquidity of its
assets and liabilities.
4. Recording Currency
Renminbi is the recording currency for the statements of the Company, and the financial statements are listed and
presented by Renminbi.
28
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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
29
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(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
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;
30
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(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
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
Financial instruments refer to the contracts that constitute a company’s financial assets and the financial liabilities
or equity instruments of other units.
1. Recognition and derecognition of financial instruments
31
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
2. Classification and measurement of financial assets
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:
(1) 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.
(2) Investments in debt instruments measured at fair value and changes thereof recorded into other comprehensive
income
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
(3) 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
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.
(4) 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.
3. 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:
(1) 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
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
(2) Other financial liabilities
For such kind of financial liabilities, the subsequent measurement shall be conducted by effective interest method
based on the amortized cost.
4. 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 bad debt provision.
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
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 bad debt provision 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 bad debt provision 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 bad debt provision 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 bad debt provision 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 bad debt provision 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
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 12 Accounts Receivable.
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.
5. 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.
6. 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 bad debt provision 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
recognition principle, except for the financial guarantee contracts designated as financial liabilities measured at
fair value with changes recorded into current profits/losses.
7. 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.
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.
8. 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.
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 Making separate bad-debt provisions for accounts receivable with a significant single
receivable with a significant single amount amount
Making separate bad-debt provisions for For an account receivable with a significant single amount, the impairment test shall be
accounts receivable with a significant single carried out on it separately. If there is any objective evidence of impairment, the
amount 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:
Aging Withdrawal proportion of accounts receivable
Within 1 year (including 1 year) 3%
1 to 2 years 10%
2 to 3 years 30%
3 to 4 years 50%
4 to 5 years 80%
Over 5 years 100%
3. Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is Made
Independently
Reason of individually withdrawing bad debt There are definite evidences indicate the obvious difference of thee return
provision ability
Withdrawal method for bad debt provision Recognizing the impairment loss and withdrawing the bad debt provision
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
according to the difference between the present value of the account
receivable’s future cash flows and its carrying amount.
13. Accounts Receivable Financing
Not applicable
14. Other Receivables
Recognition method and accounting treatment for expected credit losses of other receivables
Refer to Note 12 Accounts Receivable for details about the recognition method and accounting treatment for
expected credit losses of other receivables which is the same as that of accounts receivable since 1 January 2019.
15. Inventories
1. Classification of Inventory
Inventory refers to finished products, goods in process, and materials consumed in the production process or the
provision of labor services held by the Company for sale in daily activities, mainly including raw materials, goods
in process, materials in transit, finished products, commodities, turnover materials, and commissioned processing
materials. Turnover materials include low-value consumables and packaging.
2. Pricing Method of Inventory Sent Out
The inventory is valued at actual cost when acquired, and inventory costs include procurement costs, processing
costs and other costs. The weighted average method is used when receiving or sending out inventory.
3. Basis for Determining the Net Realizable Value of Inventory and the Method of Withdrawal for Inventory
Impairment
Net realizable value refers to the estimated selling price of the inventory minus the estimated cost to be incurred at
the time of completion, the estimated selling expenses and the relevant taxes and fees in daily activities. In
determining the net realizable value of inventory, the conclusive evidence obtained is used as the basis and the
purpose of holding the inventory and the impact of the events after the balance sheet date should be taken into
account.
For finished products, the materials used for sale and other goods used for direct sale, the net realizable value is
determined by the estimated selling price of the inventory minus the estimated selling expenses and related taxes
in the process of normal production and operation.
For materials inventory needs to be processed, the net realizable value is determined by the estimated selling price
of the finished products minus the estimated cost to be incurred, the estimated sales costs and the relevant taxes
and fees in the process of normal production and operation.
4. Inventory System
The inventory system of the Company is perpetual inventory.
5. Amortization Method of Turnover Materials
Low-value consumables are amortized in one-off method.
The packaging is amortized in one-off method.
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
16. Contract Assets
The Company presents the right possessed to collect consideration from customers unconditionally (only
depending on the passing of time) as accounts receivable, and the right to charge the consideration through
transferring any commodity to clients which depends on other factors except the passing of time as contract assets.
As for the recognition method and accounting treatment for expected losses of contract assets, please refer to Note
V-12. Accounts Receivable.
17. Contract Cost
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
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
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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.
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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
received.
(6) The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at the
fair value.
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
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.
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 NotesⅥ. “Principles, Procedures and
Methods for the Preparation of Consolidated Statements” .
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 Notes 31. Impairment of Long-term Assets.
23. Investment Property
Measurement model for investment property
Not applicable
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Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 Useful life Annual deprecation
value
Housing and building Average method of
3—30 years 5% 31.67%-3.17%
useful life
Machinery equipments Average method of
2—10 years 5% 47.50%-9.50%
useful life
Transportation vehicle Average method of
5—10 years 5% 19.00%-9.50%
useful life
Average method of
Electronic equipment 2—8 years 5% 47.50%-11.88%
useful life
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable
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.
43
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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.
44
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
27. Living Assets
Not applicable
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
45
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Note 31: Long-term asset impairment under Note V.
(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
46
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
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
The Company’s obligation of transferring commodities to customers due to consideration received or receivable
from clients. If the client has paid the contract consideration or the Company has obtained the unconditional right
of collection before the Company transfers commodities to the customer, the Company shall present the accounts
received or receivable as contract liabilities at the earlier time between the time when the client actually conducts
payment and the deadline of payment. Contract assets and contract liabilities under the same contract shall be
presented based on the net amount, while those not under the same contract shall not be offset.
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
47
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
the corresponding payable and deposit amount should be included into the relevant assets cost or the current gains
and losses when happen.
(3) Accounting Treatment of the Demission Welfare
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor
contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a
layoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier date
between the time when the Group could not one-sided withdraw the demission welfare which offered by the plan
or layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost related to the
reorganization of the payment of the demission welfare and at the same time includes which into the current gains
and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report
within 12 months, should be disposed according to other long-term payroll payment.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare.
The group would recorded the salary and the social security insurance fees paid and so on from the employee’s
service terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under the
condition that they meet the recognition conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be
accounting disposed according to the setting drawing plan, while the rest should be disposed according to the
setting revenue plan.
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
48
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
37. Share-based Payment
Not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
Revenue is the total inflow of economic interests formed by the Company in its routine activities that increase
owners’ equity and are irrelevant to the capital contributed by the owners.
The Company recognizes revenue when it has fulfilled the obligation of contract performance, namely, when it
has acquired the control of the related commodity. The acquisition of control over a commodity refers to the
capacity to control the use of the commodity and to gain almost all economic interests thereof. The Company
recognizes revenue based on the net of consideration payable to customers upon the delivery of products to
customers as agreed in the contract. The Company recognizes the amount of contract consideration collected from
customers as contract liabilities when signing contracts with customers and receiving orders but without delivery
of products to customers.
Differences in accounting policies for the recognition of revenue caused by different business models for the same
type of business
Not applicable.
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
49
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 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
50
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
value of assets or liabilities and its tax base.
The Company recognizes all taxable temporary differences as deferred income tax liabilities unless taxable
temporary differences arise in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of the assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination and neither the accounting profit
nor the taxable income is incurred at the time of the transaction;
(2) The time of write-back of taxable temporary differences related to the investments in subsidiaries, associates
and joint ventures can be controlled and the temporary differences are likely to not be written back in the
foreseeable future.
The Company recognizes the deferred income tax assets arising from deductible temporary differences, subject to
the amount of taxable income obtained to offset the deductible temporary differences, unless the deductible
temporary differences arise in the following transactions:
(1) The transaction is not a business combination, and the transaction does not affect the accounting profit or the
amount of taxable income;
(2) The deductible temporary differences related to the investments in subsidiaries, associates and joint ventures
are not met simultaneously: Temporary differences are likely to be written back in the foreseeable future and are
likely to be used to offset the taxable income of deductible temporary differences in the future.
At the balance sheet date, the Company measures the deferred income tax assets and deferred income tax
liabilities at the applicable tax rate of the period expected to recover the asset or pay off the liabilities according to
tax law, and reflects the income tax effect of expected assets recovery or liabilities payoff method at the balance
sheet date.
At the balance sheet date, the Company reviews the book value of the deferred income tax assets. If it is likely
that sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in the
future period, the book value of the deferred income tax assets will be written down. If it is probable that
sufficient taxable income will be available, the amount of write-down will be written back.
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.
51
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(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.
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
On 5 July 2017, the Ministry of Finance issued the Notice
on Revising and Issuing the Accounting Standards for
Business Enterprises No.14-Revenue (CK(2017)No.22
and required those enterprises both listed in domestic and
aboard and those enterprises overseas listed with
International Financial Reporting Standards or
For details, refer to the
Accounting Standards for Business Enterprises for
Announcement on Changes in
preparation of financial statements to implement it since 1 Approved by the 35th Meeting of the
Accounting Policies
January 2018, required other domestically listed 8th Board of Directors
(Announcement No.: 2020-011)
enterprises to implement it since 1 January 2020 and
disclosed on cninfo.com.cn.
required non-listed enterprises carrying out the
Accounting Standards for Business Enterprises to
implement it since 1 January 2021. Thus, the Company
starts to implement the new standards governing revenue
since 1 January 2020 and has made the treatment in
accordance with governing connection regulation.
52
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(2) 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 Revenue or Leases since 2020
Applicable
Whether items of balance sheets at the beginning of the year need adjustment
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
Monetary assets 1,125,456,662.64 1,125,456,662.64
Settlement reserve
Interbank loans granted
Held-for-trading financial
901,166,682.64 901,166,682.64
assets
Derivative financial assets
Notes receivable 109,444,480.94 109,444,480.94
Accounts receivable 712,175,266.51 712,175,266.51
Accounts receivable
financing
Prepayments 7,851,390.78 7,851,390.78
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 22,307,344.76 22,307,344.76
Including: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 637,336,584.06 637,336,584.06
Contract assets
Assets held for sale
53
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Current portion of
non-current assets
Other current assets 52,502,863.59 52,502,863.59
Total current assets 3,568,241,275.92 3,568,241,275.92
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity
181,093,725.43 181,093,725.43
investments
Investments in other equity
1,454,740,241.46 1,454,740,241.46
instruments
Other non-current financial
assets
Investment property
Fixed assets 629,832,098.35 629,832,098.35
Construction in progress 119,030,610.16 119,030,610.16
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 167,826,499.74 167,826,499.74
Development costs
Goodwill
Long-term prepaid
7,727,394.74 7,727,394.74
expense
Deferred income tax assets 36,847,064.36 36,847,064.36
Other non-current assets 9,861,098.08 9,861,098.08
Total non-current assets 2,606,958,732.32 2,606,958,732.32
Total assets 6,175,200,008.24 6,175,200,008.24
Current liabilities:
Short-term borrowings
Borrowings from the
central bank
54
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Interbank loans obtained
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 374,665,327.74 374,665,327.74
Accounts payable 559,016,692.70 559,016,692.70
Advances from customers 50,449,357.17 -50,449,357.17
Contract liabilities 50,449,357.17 50,449,357.17
Financial assets sold under
repurchase agreements
Customer deposits and
interbank deposits
Payables for acting trading
of securities
Payables for underwriting
of securities
Employee benefits payable 83,156,852.86 83,156,852.86
Taxes payable 17,211,068.21 17,211,068.21
Other payables 46,073,344.71 46,073,344.71
Including: Interest
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,130,572,643.39 1,130,572,643.39
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
55
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Including: Preferred
shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
137,216,136.70 137,216,136.70
liabilities
Other non-current
liabilities
Total non-current liabilities 137,216,136.70 137,216,136.70
Total liabilities 1,267,788,780.09 1,267,788,780.09
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
776,260,348.19 776,260,348.19
income
Specific reserve
Surplus reserves 836,559,645.36 836,559,645.36
General reserve
Retained earnings 1,709,962,479.45 1,709,962,479.45
Total equity attributable to
owners of the Company as 4,880,736,800.07 4,880,736,800.07
the parent
Non-controlling interests 26,674,428.08 26,674,428.08
Total owners’ equity 4,907,411,228.15 4,907,411,228.15
Total liabilities and owners’
6,175,200,008.24 6,175,200,008.24
equity
Notes to adjustment
In accordance with the new standards governing revenue, “contract liabilities” refer to the Company’s obligations
56
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
in transferring commodities or services to the client for the received or predicted consideration. The “advances
from customers” of the Company received in advance due to performance of contract obligations by customers
shall be adjusted into “contract liabilities”.
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
Monetary assets 1,059,001,233.28 1,059,001,233.28
Held-for-trading financial
901,166,682.64 901,166,682.64
assets
Derivative financial assets
Notes receivable 107,567,164.99 107,567,164.99
Accounts receivable 666,106,832.53 666,106,832.53
Accounts receivable
financing
Prepayments 6,614,791.10 6,614,791.10
Other receivables 37,934,614.96 37,934,614.96
Including: Interest
receivable
Dividends
receivable
Inventories 553,557,529.00 553,557,529.00
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 43,118,385.01 43,118,385.01
Total current assets 3,375,067,233.51 3,375,067,233.51
Non-current assets:
Investments in debt
obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity
464,886,827.69 464,886,827.69
investments
Investments in other equity
1,454,740,241.46 1,454,740,241.46
instruments
57
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Other non-current financial
assets
Investment property
Fixed assets 573,844,707.66 573,844,707.66
Construction in progress 116,240,559.37 116,240,559.37
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 125,673,065.66 125,673,065.66
Development costs
Goodwill
Long-term prepaid
4,891,398.93 4,891,398.93
expense
Deferred income tax assets 34,205,213.27 34,205,213.27
Other non-current assets 8,440,448.08 8,440,448.08
Total non-current assets 2,782,922,462.12 2,782,922,462.12
Total assets 6,157,989,695.63 6,157,989,695.63
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 376,265,327.74 376,265,327.74
Accounts payable 689,846,497.35 689,846,497.35
Advances from customers 46,758,714.00 -46,758,714.00
Contract liabilities 46,758,714.00 46,758,714.00
Employee benefits payable 68,658,329.30 68,658,329.30
Taxes payable 12,374,430.19 12,374,430.19
Other payables 125,001,875.83 125,001,875.83
Including: Interest
payable
Dividends
payable
Liabilities directly
associated with assets held
for sale
58
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Current portion of
non-current liabilities
Other current liabilities
Total current liabilities 1,318,905,174.41 1,318,905,174.41
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual bonds
Lease liabilities
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
137,216,136.70 137,216,136.70
liabilities
Other non-current
liabilities
Total non-current liabilities 137,216,136.70 137,216,136.70
Total liabilities 1,456,121,311.11 1,456,121,311.11
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
776,242,987.90 776,242,987.90
income
Specific reserve
Surplus reserves 836,559,645.36 836,559,645.36
Retained earnings 1,523,507,818.11 1,523,507,818.11
Total owners’ equity 4,701,868,384.52 4,701,868,384.52
Total liabilities and owners’
6,157,989,695.63 6,157,989,695.63
equity
59
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Notes to adjustment
In accordance with the new standards governing revenue, “contract liabilities” refer to the Company’s obligations
in transferring commodities or services to the client for the received or predicted consideration. The “advances
from customers” of the Company received in advance due to performance of contract obligations by customers
shall be adjusted into “contract liabilities”.
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any New
Standards Governing Revenue or Leases since 2020
□ 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 6%, 9%, 13%
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%
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%
Foshan Lighting Lamps and Lanterns Co., Ltd. 25%
FSL Zhida Electric Technology Co., Ltd. 15%
FSL Lighting GmbH 15%
60
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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.
FSL Zhida Electric Technology Co., Ltd. passed the examination for High-tech Enterprises in December 2019,
and thus FSL Zhida Electric Technology Co., Ltd. paid the corporate income tax based on a tax rate of 15%
within three years since 1 January 2019 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.
According to Notice of Implementation of Inclusive Tax Reduction Policy to Small and Micro Enterprises by
Ministry of Finance and State Administration of Taxation (CS [2019] No. 13), Foshan Chansheng Electronic
Ballast Co., Ltd. is applicable to the preferential tax policy for small low-profit enterprises in 2019: the portion of
annual taxable income less than RMB1 million shall be included in the taxable income based on a tax rate of 25%
and 20% of preferential tax rate paid for the corporate income tax; the portion of annual taxable income more than
RMB1 million but less than RMB3 million shall be included in the taxable income based on a tax rate of 50% and
20% of preferential tax rate paid for the corporate income tax.
3. Other
Paid according to the relevant regulation of the tax law.
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 10,454.25 18,281.85
Bank deposits 1,222,758,444.44 1,048,694,037.32
Other monetary assets (note 1) 48,153,891.61 70,079,965.12
Unexpired interest (note 2) 6,664,378.35
Total 1,270,922,790.30 1,125,456,662.64
Of which: Total amount deposited
736,020.72 1,232,977.34
overseas
Other notes
Note 1: Other monetary assets were security deposits for notes, forward exchange settlement contracts and
performance bonds, as well as investments placed with security firm and the balance with e-commerce platforms,
61
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
of which the security deposits for notes, forward exchange settlement contracts and performance bonds were
restricted assets (see “81. Assets with Restricted Ownership or Right of Use” in Note “VII Notes to Consolidated
Financial Statements”).
Note 2: Unexpired interest did not belong to cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit
657,781,609.38 899,619,482.64
or loss
Including:
Wealth management products (note) 340,801,731.51 467,869,852.09
Structural deposits (note) 316,979,877.87 431,749,630.55
Financial assets designated to be measured
14,850.00 1,547,200.00
at fair value through profit or loss
Including:
Total 657,796,459.38 901,166,682.64
Other notes:
They are the low-risk wealth management products of banks with maturity date over three months and investment
cycle less than one year and the structural deposits cannot be terminated in advance.
3. Derivative Financial Assets
Not applicable
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 96,328,610.62 109,444,480.94
Total 96,328,610.62 109,444,480.94
Please refer to the relevant information of disclosure of bad debt provision of other receivables if adopting the
general mode of expected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Naught
62
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Of which, the bad debt provision reversed or collected 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 54,362,766.89
Total 54,362,766.89
(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 recognition termination at
Item
period-end the period-end
Bank acceptance bill 56,625,210.50
Total 56,625,210.50
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
(6) The Actual Write-off Notes 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
2.89% 69.58% 3.06% 69.58%
withdrawn bad debt 23.66 10.09 .57 3.66 0.09 7
63
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
provision separately
Of which:
Accounts receivable
786,091, 38,635,9 747,455,3 740,781,1 35,716,29 705,064,85
withdrawn bad debt 97.11% 4.91% 96.94% 4.82%
306.24 86.23 20.01 45.60 2.66 2.94
provision by group
Of which:
809,468, 54,902,7 754,565,7 764,158,3 51,983,10 712,175,26
Total 100.00% 6.78% 100.00% 6.80%
529.90 96.32 33.58 69.26 2.75 6.51
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.
Involving lawsuit and
Customer B 9,156,396.52 9,156,396.52 100.00% having a long account
age
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 786,091,306.24 38,635,986.23 4.91%
Total 786,091,306.24 38,635,986.23 --
Please refer to the relevant information of disclosure of bad debt provision of other receivables 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) 700,846,872.84
1 to 2 years 62,859,913.68
64
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
2 to 3 years 15,654,090.71
Over 3 years 30,107,652.67
3 to 4 years 15,515,563.07
4 to 5 years 1,781,966.16
Over 5 years 12,810,123.44
Total 809,468,529.90
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
amount Withdrawal Write-off Other
recovery
Accounts
51,983,102.75 2,919,831.52 137.95 54,902,796.32
receivable
Total 51,983,102.75 2,919,831.52 137.95 54,902,796.32
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
Other retails accounts 137.95
Total 137.95
Of which the verification of accounts receivable with significant amount: naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Ending balance of accounts Proportion to total ending balance Ending balance of bad debt
Name of units
receivable of accounts receivable (%) provision
No. 1 71,743,804.40 8.86% 2,152,314.13
No. 2 38,317,669.82 4.73% 1,149,530.09
No. 3 32,005,878.73 3.95% 960,176.36
No. 4 17,114,271.39 2.11% 2,187,526.58
No. 5 15,400,628.68 1.90% 462,018.86
Total 174,582,253.02 21.55%
65
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(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
7. Prepayment
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 2,958,264.98 44.90% 4,151,087.73 52.87%
1 to 2 years 323,788.69 4.91% 1,687,169.78 21.49%
2 to 3 years 1,402,335.30 21.29% 710,290.79 9.05%
Over 3 years 1,903,893.67 28.90% 1,302,842.48 16.59%
Total 6,588,282.64 -- 7,851,390.78 --
(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 prepayments (%) Aging
Company
No. 1 Non-related supplier 601,013.10 9.12% Within 3 years
No. 2 Non-related supplier 461,054.68 7.00% Within 1 year
No. 3 Non-related supplier 381,392.84 5.79% Within 1 year
No. 4 Non-related supplier 307,514.01 4.67% Within 3 years
No. 5 Non-related supplier 300,000.00 4.55% Over 3 years
Total 2,050,974.63 31.13%
8. Other Receivables
Unit: RMB
66
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Item Ending balance Beginning balance
Other receivables 30,629,514.19 22,307,344.76
Total 30,629,514.19 22,307,344.76
(1) Interest Receivable
Naught
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
VAT export tax refunds 12,598,007.93 8,154,485.23
Performance bond 3,984,660.80 3,236,931.10
Staff borrow and deposit 7,253,044.50 5,991,107.91
Rent, water & electricity fees 2,573,758.87 1,686,102.59
Other 6,627,837.16 5,187,134.14
Total 33,037,309.26 24,255,760.97
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
593,749.50 1,354,666.71 1,948,416.21
2020
Balance of 1 January
2020 in the Current —— —— —— ——
Period
Withdrawal of the
196,706.57 262,672.29 459,378.86
Current Period
Balance of 30 June 2020 790,456.07 1,617,339.00 2,407,795.07
67
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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) 26,348,537.05
1 to 2 years 3,629,105.42
2 to 3 years 2,220,271.55
Over 3 years 839,395.24
3 to 4 years 482,096.55
4 to 5 years 50,000.00
Over 5 years 307,298.69
Total 33,037,309.26
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
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Other receivables 1,948,416.21 459,378.86 2,407,795.07
Total 1,948,416.21 459,378.86 2,407,795.07
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
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Export rebates 12,598,007.93 Within 1 year 38.13% 377,940.24
No. 2 Other 1,888,515.60 Within 4 years 5.72% 534,299.21
68
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
No. 3 Social insurance 1,597,440.13 Within 1 year 4.84% 47,923.20
No. 4 Petty cash 938,266.21 Within 4 years 2.84% 83,256.53
No. 5 Petty cash 917,554.10 Within 5 years 2.78% 227,270.83
Total -- 17,939,783.97 -- 54.31% 1,270,690.01
6) Accounts Receivable Involving Government Grants
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 needs to comply with disclosure requirements for real estate industry
No
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves of reserves of
inventory or inventory or
Item
Carrying amount depreciation Carrying value Carrying amount depreciation Carrying value
reserves of reserves of
contract contract
performance cost performance cost
Raw materials 103,889,353.01 2,093,585.84 101,795,767.17 124,826,657.81 2,426,340.03 122,400,317.78
Goods in process 36,350,773.87 36,350,773.87 32,861,535.80 32,861,535.80
Inventory goods 310,383,717.01 25,231,188.47 285,152,528.54 380,880,872.40 25,335,631.67 355,545,240.73
Semi-finished
100,259,311.07 1,388,360.36 98,870,950.71 125,058,072.72 1,658,579.31 123,399,493.41
goods
Low priced and
2,451,266.41 2,451,266.41 3,129,996.34 3,129,996.34
easily worn
69
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
articles
Total 553,334,421.37 28,713,134.67 524,621,286.70 666,757,135.07 29,420,551.01 637,336,584.06
(2)Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 2,426,340.03 121,610.26 454,364.45 2,093,585.84
Inventory goods 25,335,631.67 3,009,515.62 3,113,958.82 25,231,188.47
Semi-finished
1,658,579.31 69,667.81 339,886.76 1,388,360.36
goods
Total 29,420,551.01 3,200,793.69 3,908,210.03 28,713,134.67
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Naught
(4) Amortization Amount of Contract Performance Cost during the Reporting Period
Naught
10. Contract Assets
Naught
11. Held-for-Sale Assets
Naught
12. Current Portion of Non-current Assets
Naught
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible input tax of VAT 46,195,101.66 49,860,530.03
Advance payment of enterprise income tax 2,642,333.56
70
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Total 46,195,101.66 52,502,863.59
14. Creditor’s Rights Investment
Naught
15. Other Creditor’s Rights Investment
Naught
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Beginnin Cash Withdraw Ending balance
Additiona losses nt of
g balance Reduced Changes bonus or al of balance of
Investees l recognize other
(carrying investmen of other profits impairme Other (carrying depreciati
investmen d under comprehe
value) t equity announce nt value) on
t the equity nsive
d to issue provision reserves
method income
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
ix 181,093,7 4,725,081 2,080,390 183,738,4
(Nanho) 25.43 .89 .50 16.82
Electronic
s Ltd.
181,093,7 4,725,081 2,080,390 183,738,4
Subtotal
25.43 .89 .50 16.82
181,093,7 4,725,081 2,080,390 183,738,4
Total
25.43 .89 .50 16.82
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
71
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Non-listed equity investment 711,571,895.07 711,571,895.07
Listed equity investment 1,286,422,328.32 743,168,346.39
Total 1,997,994,223.39 1,454,740,241.46
Disclosure of non-trading equity instrument investment by items
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
Not satisfied with
Stock of Guoxuan the condition of
999,789,809.36
High-tech trading equity
instrument
Not satisfied with
Stock of the condition of
3,969,005.36 42,747,631.50
Everbright Bank trading equity
instrument
Not satisfied with
the condition of
Xiamen Bank 10,971,417.60 413,943,585.67
trading equity
instrument
Not satisfied with
Guangdong
the condition of
Development
trading equity
Bank Co.,Ltd
instrument
Foshan Fochen Not satisfied with
Road the condition of
Development trading equity
Company instrument
Limited
Not satisfied with
Shenzhen
the condition of
Zhonghao
trading equity
(Group) Ltd
instrument
Total 14,940,422.96 1,456,481,026.53
72
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
19. Other Non-current Financial Assets
Naught
20. Investment Property
Naught
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 654,479,073.26 629,832,098.35
Total 654,479,073.26 629,832,098.35
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I. Original carrying
value
1. Beginning balance 871,680,760.24 735,281,251.39 21,672,517.21 29,297,960.13 1,657,932,488.97
2. Increased amount
48,006,011.64 10,823,316.21 395,090.98 717,172.87 59,941,591.70
of the period
(1) Purchase 4,292,101.66 395,090.98 585,926.58 5,273,119.22
(2) Transfer from
construction in 48,006,011.64 6,531,214.55 131,246.29 54,668,472.48
progress
(3) Enterprise
combination increase
3. Decreased amount
552,766.18 4,740,760.44 351,701.26 9,958.12 5,655,186.00
of the period
(1) Disposal or scrap 552,766.18 3,025,837.36 351,701.26 9,958.12 3,940,262.92
(2) Equipment
1,714,923.08 1,714,923.08
transformation
4. Ending balance 919,134,005.70 741,363,807.16 21,715,906.93 30,005,174.88 1,712,218,894.67
II. Accumulative
depreciation
73
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
1. Beginning balance 453,670,579.13 529,997,835.69 16,159,650.82 24,199,951.63 1,024,028,017.27
2. Increased amount
13,266,227.01 19,052,788.24 589,829.32 1,012,656.09 33,921,500.66
of the period
(1) Withdrawal 13,266,227.01 19,052,788.24 589,829.32 1,012,656.09 33,921,500.66
3. Decreased amount
406,070.64 3,517,542.11 338,602.41 8,972.16 4,271,187.32
of the period
(1) Disposal or scrap 406,070.64 2,416,208.72 338,602.41 8,972.16 3,169,853.93
(2) Equipment
1,101,333.39 1,101,333.39
transformation
4. Ending balance 466,530,735.50 545,533,081.82 16,410,877.73 25,203,635.56 1,053,678,330.61
III. Depreciation
reserves
1. Beginning balance 4,071,945.32 428.03 4,072,373.35
2. Increased amount
of the period
(1) Withdrawal
3. Decreased amount
10,882.55 10,882.55
of the period
(1) Disposal or scrap
(2) Equipment
10,882.55 10,882.55
transformation
4. Ending balance 4,061,062.77 428.03 4,061,490.80
IV. Carrying value
1. Ending carrying
452,603,270.20 191,769,662.57 5,305,029.20 4,801,111.29 654,479,073.26
value
2. Beginning
418,010,181.11 201,211,470.38 5,512,866.39 5,097,580.47 629,832,098.35
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Note
value depreciation reserves
T5, T8,
energy-saving lamp 7,940,325.52 5,945,024.07 1,943,741.93 51,559.52
production line
74
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Total 7,940,325.52 5,945,024.07 1,943,741.93 51,559.52
(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
Naught
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 82,647,609.80 119,030,610.16
Total 82,647,609.80 119,030,610.16
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Construction in
82,647,609.80 82,647,609.80 119,030,610.16 119,030,610.16
progress
Total 82,647,609.80 82,647,609.80 119,030,610.16 119,030,610.16
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Transferr Proporti Accumul Of Capitaliz
Beginnin Other
Increase ed in Ending on of Job ative which: ation rate Capital
Item Budget g decrease
d amount fixed balance accumul schedule amount amount of resources
balance d amount
assets ative of of interests
75
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
investme interest capitaliz for the
nt in capitaliz ed Reportin
construct ation interests g Period
ions to for the
budget Reportin
g Period
Gaoming
115,530, 2,188,11 2,188,11
Office 1.89% Other
000.00 5.98 5.98
Building
Reconstr
uction
project
of the
main
road
3,880,00 2,943,81 2,943,81
from the 75.87% 80.00% Other
0.00 6.51 6.51
west gate
to the
south
gate of
Gaoming
Plant
Section
II of the
upgradin
g and
reconstru
ction
project
of the
external
faade of
3,394,20 2,491,15 2,491,15
the 77.65% 95.00% Other
0.00 5.98 5.98
factory
next to
the main
road
from the
west gate
to the
south
gate of
Gaoming
76
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Plant
(motor
vehicle
lamps,
bidding
B and
bidding
G)
Upgradi
ng and
reconstru
ction
9,280,16 3,475,61 3,475,61
project 39.10% 30.00% Other
9.12 4.70 4.70
of the
road in
Gaoming
Plant
Project
of
building
the
greening
park for 2,820,75 1,982,05 287,716. 2,269,77
80.47% 95.00% Other
leisure 2.94 3.85 82 0.67
and sport
in
Gaoming
Branch
Plant
Section I
of the
upgradin
g and
reconstru
ction
project 2,377,80 1,745,17 1,745,17
73.39% 95.00% Other
of the 0.00 4.30 4.30
external
faade of
the
factory
next to
the main
77
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
road
from the
west gate
to the
south
gate of
Gaoming
Plant
(luminari
es, T8)
Fuwan
intellige
49,070,0 46,708,0 1,947,48 48,655,5
nt 99.16% 100.00% Other
00.00 62.10 9.96 52.06
worksho
pH
Gaoming
R&D
worksho 45,000,0 30,853,9 426,341. 31,280,2
69.51% 85.00% Other
p 11, 12, 00.00 31.43 57 73.00
13, 14
and 18
Automat
ic system
of
intellige
nt
21,920,0 11,117,8 11,117,8
producti 50.72% 90.00% Other
00.00 40.76 40.76
on
worksho
p
(worksh
op H)
Upgradi
ng
project
in Local
6,500,00 5,408,81 606,635. 6,015,45
roads 92.55% 95.00% Other
0.00 5.09 34 0.43
and
greening
of
Gaoming
Upgradi 4,200,00 3,502,56 3,502,56
83.39% 95.00% Other
ng 0.00 8.80 8.80
78
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
project
of
Standard
C
worksho
p
external
facade
48 tons
electric
melting
furnace 7,766,00 4,295,52 165,703. 4,461,22
57.45% 80.00% Other
(18025) 0.00 0.36 06 3.42
Gaoming
tank
furnace
271,738, 103,868, 16,277,7 48,655,5 71,491,0
Total -- -- --
922.06 792.39 64.22 52.06 04.55
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught
(4) Engineering Materials
Naught
23. Productive Living Assets
Naught
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Naught
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
79
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Non-patent Using right of
Item Land use right Patent Total
technology software
I. Original carrying
value
1. Beginning balance 233,741,723.60 200,000.00 2,773,651.87 236,715,375.47
2. Increased amount
of the period
(1) Purchase
(2) Internal R&D
(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 balance 66,689,185.37 200,000.00 1,999,690.36 68,888,875.73
2. Increased amount
2,157,510.14 56,849.34 2,214,359.48
of the period
(1) Withdrawal 2,157,510.14 56,849.34 2,214,359.48
3. Decreased amount
of the period
(1) Disposal
4. Ending balance 68,846,695.51 200,000.00 2,056,539.70 71,103,235.21
III. Depreciation
reserves
1. Beginning balance
2. Increased amount
of the period
(1) Withdrawal
80
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
3. Decreased
amount of the period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
164,895,028.09 717,112.17 165,612,140.26
value
2. Beginning
167,052,538.23 773,961.51 167,826,499.74
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending balance of
intangible assets was 0 %.
(2) Land Use Right with Certificate of Title Uncompleted
Naught
27. Development Costs
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
5,917,401.48 1,123,699.90 2,144,188.20 4,896,913.18
decoration expense
Other 1,809,993.26 465,448.20 1,344,545.06
Total 7,727,394.74 1,123,699.90 2,609,636.40 6,241,458.24
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Item Ending balance Beginning balance
81
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for impairment
95,935,216.86 14,925,270.31 93,274,443.32 14,388,688.12
of assets
Unrealized profit of
1,597,638.67 239,645.80 1,885,791.90 282,868.80
internal transactions
Depreciation of fixed
75,345,045.92 11,801,874.19 76,057,614.11 11,908,759.43
assets
Payroll payable 31,600,273.10 4,740,040.97 68,444,986.72 10,266,748.01
Total 204,478,174.55 31,706,831.27 239,662,836.05 36,847,064.36
(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 1,456,481,026.53 218,472,153.98 913,227,044.60 136,984,056.70
investment
Changes in fair value of
14,850.00 2,227.50 1,547,200.00 232,080.00
trading financial assets
Total 1,456,495,876.53 218,474,381.48 914,774,244.60 137,216,136.70
(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
31,706,831.27 36,847,064.36
assets
Deferred income tax
218,474,381.48 137,216,136.70
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Naught
82
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
None
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserve value amount reserve value
Prepayments for business facilities 7,440,250.54 7,440,250.54 9,861,098.08 9,861,098.08
Total 7,440,250.54 7,440,250.54 9,861,098.08 9,861,098.08
32. Short-term Borrowings
Naught
33. Trading Financial Liabilities
Naught
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 245,253,258.83 374,665,327.74
Total 245,253,258.83 374,665,327.74
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
Accounts payable 610,696,483.53 559,016,692.70
83
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Total 610,696,483.53 559,016,692.70
(2) Significant Accounts Payable Aging over One Year
Naught
37. Advances from Customer
Naught
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Contract liabilities 41,949,069.17 50,449,357.17
Total 41,949,069.17 50,449,357.17
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 83,156,852.86 264,360,371.72 303,139,507.80 44,377,716.78
II. Post-employment
benefit-defined 7,318,496.76 7,318,496.76
contribution plans
Total 83,156,852.86 271,678,868.48 310,458,004.56 44,377,716.78
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
82,843,966.12 240,873,217.05 279,647,267.73 44,069,915.44
allowance, subsidy
2. Employee welfare 7,831,519.90 7,831,519.90
3. Social insurance 7,393,860.99 7,393,860.99
Of which: Medical
4,912,736.13 4,912,736.13
insurance premiums
Work-related injury 158,444.30 158,444.30
84
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
insurance
Maternity insurance 2,322,680.56 2,322,680.56
4. Housing fund 6,443,415.90 6,443,415.90
5.Labor union budget
and employee education 312,886.74 1,818,357.88 1,823,443.28 307,801.34
budget
Total 83,156,852.86 264,360,371.72 303,139,507.80 44,377,716.78
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 7,162,965.35 7,162,965.35
2. Unemployment
155,531.41 155,531.41
insurance
Total 7,318,496.76 7,318,496.76
Other notes:
The Company participates in the scheme of pension insurance and unemployment insurance established by
government agencies as required. According to the scheme, fees are paid to it on a monthly basis and at the rate of
stipulated by government agencies. In addition to the above monthly deposit fees, the Company no longer
assumes further payment obligations. Corresponding expenses are recorded into the current profits or losses or the
cost of related assets when incurred.
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 17,663,202.53 2,848,860.13
Corporate income tax 11,806,372.90 12,419,827.14
Personal income tax 314,431.98 595,012.66
Urban maintenance and construction tax 1,201,573.35 385,734.01
Education surcharge 878,623.80 281,417.17
Property tax 2,911,388.90 264,468.41
Land use tax 1,814,012.67 187,752.00
Other 208,220.96 227,996.69
Total 36,797,827.09 17,211,068.21
85
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 55,847,187.57 46,073,344.71
Total 55,847,187.57 46,073,344.71
(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 1,126,231.95
Performance bond 36,709,870.57 29,641,485.45
Relevant expense of sales 3,143,931.43 3,323,583.65
Other 14,867,153.62 11,982,043.66
Total 55,847,187.57 46,073,344.71
2) Significant Other Payables Aging over One Year
Naught
42. Liabilities Held for sale
Naught
43. Current Portion of Non-current Liabilities
Naught
44. Other Current Liabilities
Naught
86
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
Naught
51. Deferred Income
Naught
52. Other Non-current Liabilities
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
87
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
151,362,201.53 151,362,201.53
(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 to transferred expense as the interests
Period profit or loss to retained parent after tax
in the earnings in after tax
Current the
Period Current
Period
I. Other comprehensive income
776,242,987 543,253,9 81,488,09 461,765,8 1,238,00
that may not subsequently be
.90 81.93 7.28 84.65 8,872.55
reclassified to profit or loss
Changes in fair value of
776,242,987 543,253,9 81,488,09 461,765,8 1,238,00
other equity instrument
.90 81.93 7.28 84.65 8,872.55
investment
II. Other comprehensive income
that may subsequently be 17,360.29 -17,083.36 -17,083.36 276.93
reclassified to profit or loss
Differences arising from 17,360.29 -17,083.36 -17,083.36 276.93
88
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
translation of foreign
currency-denominated financial
statements
Total of other comprehensive 776,260,348 543,236,8 81,488,09 461,748,8 1,238,00
income .19 98.57 7.28 01.29 9,149.48
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
699,673,077.00 699,673,077.00
reserves
Discretionary surplus
136,886,568.36 136,886,568.36
reserves
Total 836,559,645.36 836,559,645.36
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
1,709,962,479.45 1,654,181,032.39
adjustments
Beginning balance of retained earnings after
1,709,962,479.45 1,654,181,032.39
adjustments
Add: Net profit attributable to owners of the
151,061,447.83 167,275,725.75
Company as the parent
Dividend of ordinary shares payable 258,879,038.49 218,298,000.02
Ending retained earnings 1,602,144,888.79 1,603,158,758.12
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.
89
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1,504,924,771.42 1,148,135,574.08 1,670,888,644.93 1,283,982,749.97
Other operations 17,959,355.62 13,462,662.03 16,296,015.93 13,353,963.80
Total 1,522,884,127.04 1,161,598,236.11 1,687,184,660.86 1,297,336,713.77
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Type of products 1,522,884,127.04 1,522,884,127.04
Of which:
LED lighting products 1,165,303,011.92 1,165,303,011.92
Traditional lighting
300,738,547.81 300,738,547.81
products
Electrical products 38,883,211.69 38,883,211.69
Other 17,959,355.62 17,959,355.62
By operating places 1,522,884,127.04 1,522,884,127.04
Of which:
Domestic sales 944,602,854.41 944,602,854.41
Export sales 578,281,272.63 578,281,272.63
Total 1,522,884,127.04 1,522,884,127.04
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0.00 at the period-end.
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 4,998,635.00 8,002,766.99
Education surcharge 3,577,428.55 5,716,249.15
Property tax 3,633,352.66 3,616,025.09
Land use tax 2,684,232.16 2,499,767.83
Vehicle and vessel use tax 8,527.08 4,952.48
90
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Stamp duty 913,111.28 934,962.64
Environmental protection tax 36,111.03 61,544.56
Total 15,851,397.76 20,836,268.74
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 28,172,676.97 29,625,732.79
Freight 33,427,988.23 36,186,424.88
Business propagandize fees and
7,286,534.16 23,221,696.87
advertizing fees
Sales promotion fees 4,462,291.48 10,918,490.31
Business travel charges 2,464,021.64 5,908,417.09
Dealer meeting expense 513,244.52 2,629,705.03
Other 18,950,845.70 14,920,099.41
Total 95,277,602.70 123,410,566.38
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 35,721,650.78 41,310,326.31
Depreciation charge 8,106,951.60 7,701,119.24
Office expenses 5,964,403.64 5,056,903.17
Rent of land and management charge 2,862,186.81 2,757,197.21
Amortization of intangible assets 2,214,359.48 2,214,360.20
Other 9,346,343.22 8,497,273.56
Total 64,215,895.53 67,537,179.69
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 35,672,528.60 23,210,591.76
Expense on equipment debugging 2,837,455.51 1,357,085.75
Certification and testing fee 4,847,341.24 2,197,635.38
91
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Material consumption 3,242,624.38 1,955,730.02
Charges related to patents 2,724,900.93 187,908.12
Depreciation and long-term prepaid
5,814,964.29 303,946.75
expense
Other 3,958,266.78 647,734.83
Total 59,098,081.73 29,860,632.61
Other information:
1. R&D expense stood at RMB29,237,449.12 in the current period, up 97.91% year-on-year, primarily driven by a
considerable increase in labor cost, etc.
2. In respect of R&D expense incurred by the Company, expense other than that on bench-scale and pilot-scale
production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale
production is included in core business revenue and the relevant costs are included in cost of sales of core
business.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense
Less: Interest income 17,488,125.06 10,378,329.29
Foreign exchange gains or losses -2,544,700.07 -303,552.28
Other 698,861.01 773,843.90
Total -19,333,964.12 -9,908,037.67
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Subsidy for stabilizing posts 39,075.10
Supporting fund for import and export 126,000.00 4,494,490.00
Rewards of “Competition among Hundreds
700,000.00
of Enterprises”
Other 2,862,928.00 329,380.00
Total 3,028,003.10 5,523,870.00
68. Investment Income
Unit: RMB
92
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Item Reporting Period Same period of last year
Long-term equity investment income
4,725,081.89 784,711.98
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
14,940,422.96 13,957,444.99
equity instrument investment
Income received from financial products and
15,454,650.86 14,528,002.77
structural deposits
Other 1,023,100.00 -730,500.00
Total 36,143,255.71 43,839,659.74
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 assets -1,532,350.00
Trading financial liabilities -996,200.00
Total -1,532,350.00 -996,200.00
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables -459,378.86 -340,621.91
Bad debt loss of accounts receivable -2,919,831.52 -696,350.03
Total -3,379,210.38 -1,036,971.94
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and -3,200,793.69 -12,239,244.21
93
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
contract performance cost
Total -3,200,793.69 -12,239,244.21
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets 7,489.02
Total 7,489.02
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 grants 57,720.00 1,202,579.96 57,720.00
Total income from disposal of
43,653.10 43,653.10
non-current assets
Of which: Income from
43,653.10 43,653.10
disposal of fixed assets
Other 561,513.90 739,292.61 561,513.90
Total 662,887.00 1,941,872.57 662,887.00
Government grants 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
Due to
engaged in
special
Production
industry that
line of 50
the state
million Related to
Subsidy encouraged No No 77,499.96
energy-savin assets
and
g fluorescent
supported,
lamp
gained
subsidy
(obtaining in
94
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
line with the
law and the
regulations of
national
policy)
Subsidy from
Other R&D
miscellaneou technical Related to
Reward No No 57,720.00 1,125,080.00
s government updating and income
grants transformatio
n, etc.
Total 57,720.00 1,202,579.96
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
704,238.91 53,336.67 704,238.91
non-current assets
Of which: Losses from disposal
704,238.91 53,336.67 704,238.91
of fixed assets
Losses on inventories 274,833.59 170,523.69 274,833.59
Penalty 45,447.00 4,995.00 45,447.00
Delaying payment 47.09 239,571.80 47.09
Other 1.55 9,964.81 1.55
Total 1,024,568.14 478,391.97 1,024,568.14
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 18,140,342.11 23,839,915.08
Deferred income tax expense 4,910,380.59 3,327,373.49
Total 23,050,722.70 27,167,288.57
95
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 176,881,589.95
Current income tax expense accounted at statutory/applicable tax
26,532,238.49
rate
Influence of applying different tax rates by subsidiaries 2,102,297.10
Influence of income tax before adjustment -2,633,987.16
Investment income and final dividend -2,949,825.73
Income tax expense 23,050,722.70
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
Margin income 5,143,890.04 14,070,620.26
Deposit interest 20,811,434.74 8,960,610.92
Subsidy income 3,001,473.10 6,634,379.76
Income from waste 6,810,795.49 6,413,317.83
Property and rental income 3,790,160.94 3,133,802.35
Income from insurance compensation 11,293.51 245,123.30
Other 4,038,427.45 5,704,607.15
Total 43,607,475.27 45,162,461.57
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 22,211,979.63 15,681,410.19
Selling expense paid in cash 60,915,397.06 80,443,469.23
Finance costs paid in cash 516,972.81 237,571.61
96
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Returned cash deposit 4,145,401.79 7,855,566.14
Other 3,525,344.12 6,902,354.83
Total 91,315,095.41 111,120,372.00
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Naught
(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
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities:
Net profit 153,830,867.25 167,498,642.96
Add: Provision for impairment of assets 6,580,004.07 13,276,216.15
Depreciation of fixed assets, oil-gas assets,
33,921,500.66 31,885,398.98
and productive living assets
Amortization of intangible assets 2,214,359.48 2,214,360.20
Amortization of long-term prepaid expenses 2,609,636.40 3,198,379.16
Loss from disposal of fixed assets, intangible
assets and other long-term assets (gains: -7,489.02
negative)
Losses from scrapping of fixed assets (gains:
660,585.81 53,336.67
negative)
Losses from changes in fair value (gains:
1,532,350.00 996,200.00
negative)
97
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Investment loss (gains: negative) -36,143,255.71 -43,839,659.74
Decrease in deferred income tax assets
5,140,233.09 3,327,373.49
(increase: negative)
Increase in deferred income tax liabilities
-229,852.50
(“-” for decrease)
Decrease in inventory (“-” for increase) 113,422,713.70 116,836,131.75
Decrease in operating receivables (“-” for
-50,808,368.68 12,637,048.69
increase)
Increase in operating payables (“-” for
-31,645,581.10 -117,401,594.83
decrease)
Net cash generated from/used in operating
201,077,703.45 190,681,833.48
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 1,228,361,292.33 767,162,849.74
Less: Beginning balance of cash 1,049,833,555.02 795,285,756.38
Net increase in cash and cash equivalents 178,527,737.31 -28,122,906.64
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught
(3) Net Cash Received from Disposal of the Subsidiaries
Naught
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1,228,361,292.33 1,049,833,555.02
Including: Cash on hand 10,454.25 18,281.85
Bank deposit on demand 1,221,672,815.19 1,047,408,408.07
Other monetary assets on demand 6,678,022.89 2,406,865.10
III. Ending balance of cash and cash
1,228,361,292.33 1,049,833,555.02
equivalents
98
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposit of notes and security
Monetary assets 42,561,497.97 deposit of future foreign exchange
settlement
Notes receivable 54,362,766.89 Pledged for notes pool
Total 96,924,264.86 --
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 assets -- -- 1,376,612.78
Of which: USD 153,604.91 7.0795 1,087,445.93
EUR 36,322.93 7.9610 289,166.85
HKD
Accounts receivable -- -- 266,741,301.46
Of which: USD 37,677,985.94 7.0795 266,741,301.46
EUR
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
99
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Contract liabilities 15,818,117.57
Of which: USD 2,234,355.19 7.0795 15,818,117.57
Prepayments 1,061,246.78
Of which: USD 149,904.20 7.0795 1,061,246.78
Other payables 496,060.57
Of which: USD 70,070.00 7.0795 496,060.57
(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 Grants
(1) Basic Information on Government Grants
Unit: RMB
Type Amount Presented in Charged to current profit or loss
Subsidy for stabilizing posts 39,075.10 Other income 39,075.10
Supporting fund for import and
126,000.00 Other income 126,000.00
export
Other 2,862,928.00 Other income 2,862,928.00
Other miscellaneous
57,720.00 Non-operating income 57,720.00
government subsidies
Total 3,085,723.10 3,085,723.10
(2) Return of Government Grants
Naught
85. Other
Naught
100
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control in the Reporting Period
Naught
(2) Combination Cost and Goodwill
Naught
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Naught
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and
gaining the control during the Reporting Period
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Naught
(6) Other Notes
Naught
2. Business Combination under the Same Control
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
101
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as new establishment or liquidation of subsidiaries,
etc.) and relevant information: Naught
6. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating 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 Production and
Nanjing Nanjing 100.00% Acquired
Lighting sales
102
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Components
Manufacturing
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:
Naught
Basis of determining whether the Company is the agent or the principal:
Naught
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding Declaring dividends
The profit or loss Balance of
proportion of distributed to
Name attributable to the non-controlling interests
non-controlling non-controlling
non-controlling interests at the period-end
interests interests
Foshan Taimei Times Lamps
30.00% 1,025,914.03 10,238,829.41
and Lanterns Co., Ltd.
FSL Zhida Electric
49.00% 1,743,505.39 19,205,018.09
Technology Co., Ltd.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Foshan
63,630,0 17,115,8 80,745,8 46,616,4 46,616,4 40,797,2 17,975,7 58,772,9 28,063,2 28,063,2
Taimei
44.83 23.98 68.81 37.46 37.46 59.87 35.27 95.14 77.21 77.21
Times
103
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Lamps
and
Lanterns
Co., Ltd.
FSL
Zhida
Electric 84,408,3 8,382,86 92,791,1 40,951,3 40,951,3 79,707,2 9,067,38 88,774,5 40,492,9 40,492,9
Technolo 01.99 1.83 63.82 31.00 31.00 13.61 0.69 94.30 35.74 35.74
gy Co.,
Ltd.
Unit: RMB
Reporting Period Same period of last year
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
Foshan
Taimei Times
62,409,344.3 59,575,680.8
Lamps and 3,419,713.42 3,419,713.42 -2,169,954.22 1,509,228.08 1,509,228.08 778,035.37
5 6
Lanterns Co.,
Ltd.
FSL Zhida
Electric 45,607,598.0 38,271,963.9
3,558,174.26 3,558,174.26 -2,023,109.53 -469,084.10 -469,084.10 6,129,306.92
Technology 7 2
Co., Ltd.
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Naught
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
Naught
104
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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/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 183,738,416.82 181,093,725.43
The total of following items according to the
-- --
shareholding proportions
--Net profit 4,725,081.89 784,711.98
--Total comprehensive income 4,725,081.89 784,711.98
(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
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
105
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
(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, notes receivable, accounts receivable, notes
receivable, accounts payable, etc. The details of each financial instrument see relevant items of Note VII.
The main risks of the Company due to financial instruments were credit risk, liquidity risk and market risk. The
operating management of the Company was responsible for the risk management target and the recognition of the
policies.
(I) Credit risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the
other party. The credit risk the Company faced was selling on credit which leads to customer credit risk.
The Company will evaluate credit risk of new customer, and set credit limit, once the balance of account
receivable over credit limit, require the customer to pay or producing and delivering goods shall be approved by
the management of the Company.
The Company through monthly aging analysis of account receivable and monitoring the collection situation of the
customer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation,
the Company should conduct necessary measures to requesting the payment timely.
(II) Liquidity Risk
Liquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in the
way of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient
cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of the
Company. The financial department through supervising the balance of the cash and securities can be convert to
cash at any time and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficient
cash to pay the liabilities under the case of all reasonable prediction, Each financial liability of the Company was
estimated due within 1 year.
(III) Market risk
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
106
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
undertaken by the Company was mainly generated from USD and EUR. On 30 June 2020, 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
(I) Trading financial assets 14,850.00 657,781,609.38 657,796,459.38
1.Financial assets at fair
value through profit or 657,781,609.38 657,781,609.38
loss
2. Specified as financial
assets at fair value through 14,850.00 14,850.00
profit or loss
(III) Other equity
1,286,422,328.32 711,571,895.07 1,997,994,223.39
instrument investment
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 rate.
107
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
Items measured at fair value level 2 include bank's wealth management products and structured deposits, which are
measured at the contractual expected yield rate as a reasonable estimate of the fair value.
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
(1) Because the invested company, Xiamen Bank planned IPO and to list, significant changes have been occurred
to the business environment, operation conditions and financial conditions compared to the initial investment.
Refer to prospectus declaration and relative proportion between the recent issue price of similar listed banks and
net assets, as well as regard the period-end portion of net assets in Xiamen Bank enjoyed by the Company as the
reasonable estimation of fair value to measure.
(2) Because the business environment, operation conditions and financial conditions of the invested companies,
China Guangfa Bank and Foshan Fochen Expressway Development Co., Ltd. haven’t changed significantly, the
Company takes investment costs as the reasonable estimation of fair value to measure.
(3) Because the business environment, operation conditions and financial conditions of the invested company,
Shenzhen Zhonghao (Group) Co., Ltd. were deteriorated, the Company takes zero element as the reasonable
estimation of fair value to measure.
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
Financial assets and liabilities not measured at fair value include: monetary assets, accounts receivable and
accounts payable, etc. There is small difference between the carrying value of above financial assets and liabilities
and fair value.
9. Other
Naught
108
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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 4.85% 4.85%
Information Industry
Group Ltd.
Rising Investment
RMB200 million
Development Co., Hong Kong Investment 1.82% 1.82%
and HKD1 million
Ltd.
Guangdong Rising
Finance Holding Zhuhai Investment RMB1,393 million 0.82% 0.82%
Co., Ltd.
Total 26.08% 26.08%
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 2020, the aforesaid
persons acting in concert holding total A, B share of the Company 364,986,381 shares, 26.083 % of total share
equity of the Company.
The final controller of the Company was Guangdong Rising Assets Management Co., Ltd.
109
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
2. Subsidiaries of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Subsidiaries for details.
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 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
Guangdong Electronic Technology Research Institute Under same actual controller
Guangzhou Diansheng Property Management Co., Ltd. Under same actual controller
Zhuhai Doumen District Yongxingsheng Environmental
Under same actual controller
Industrial Wastes Recycling Comprehensive Treatment Co., Ltd.
Jiangmen Dongjiang Environmental Protection Technology Co.,
Under same actual controller
Ltd.
Foshan Fulong Environmental Protection Technology Co., Ltd. Under same actual controller
Guangdong Guangsheng Communications Technology Co., Ltd. Under same actual controller
Guangzhou Huajian Engineering Construction 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
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
110
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
The approval trade Whether exceed trade Same period of last
Related party Content Reporting Period
credit credit or not year
Foshan NationStar
Purchase of
Optoelectronics Co., 15,731,289.16 200,000,000.00 No 24,160,788.99
materials
Ltd.
PROSPERITY
LAMPS & Purchase of
1,070,878.91 11,000,000.00 No 1,358,912.39
COMPONENTS materials
LTD
Guangdong
Fenghua Advanced Purchase of
2,753,999.58 6,500,000.00 No 1,919,036.93
Technology Holding materials
Co., Ltd.
Prosperity Electrical Purchase of
118,407.08 1,000,000.00 No
(China) Co., Ltd. materials
Hangzhou Times
Purchase of
Lighting and 161,975.60 2,000,000.00 No 317,153.35
materials
Electrical Co., Ltd.
MTM
Purchase of
Semiconductor 261,855.01
equipment
Equipment Co., Ltd.
Guangdong
Electronic Purchase of
278,761.06 1,000,000.00 No 46,551.72
Technology equipment
Research Institute
Zhuhai Doumen
District
Yongxingsheng
Environmental Receiving labor
13,274.34 54,676.52
Industrial Wastes service
Recycling
Comprehensive
Treatment Co., Ltd.
Jiangmen Dongjiang
Environmental
Receiving labor
Protection 33,309.73
service
Technology Co.,
Ltd.
Foshan Fulong
Receiving labor
Environmental 42,477.88
service
Protection
111
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Technology Co.,
Ltd.
Guangdong
Electronic Receiving labor
3,033.63
Technology service
Research Institute
Total 20,207,406.97 221,500,000.00 28,118,974.91
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 9,332,663.68 11,773,638.34
COMPONENTS LTD
Prosperity Electrical (China)
Sale of products 11,282.10 56,974.66
Co., Ltd.
Guangzhou Diansheng Property
Sale of products 846.90
Management Co., Ltd.
Guangdong Rising Assets
Sale of products 34,336.28
Management Co., Ltd.
Guangdong Electronics
Information Industry Group Sale of products 8,004.42
Ltd.
Guangdong Rising
Communications Technology Sale of products 23,628.32
Co., Ltd.
Guangzhou Huajian
Engineering Construction Co., Sale of products 127,948.85
Ltd.
Total 9,537,863.65 11,831,459.90
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.
(2) Information on Related-party Trusteeship/Contract
Naught
(3) Information on Related-party Lease
The Company was lessor:
Naught
112
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
The Company was lessee:
Unit: RMB
The lease fee confirmed in The lease fee confirmed in the
Name of lessor Category of leased assets
the Reporting Period same period of last year
Guangdong Electronics Information
Vehicles 5,699.21
Industry Group 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 197,370.00
General Manager 548,526.00 707,777.02
Chairman of the Supervisory Committee 401,155.00 199,621.80
Secretary of the Board 66,667.00
Chief Financial Officer 401,155.00 407,777.02
Other 2,116,926.00 2,773,195.18
Total 3,665,132.00 4,155,038.02
(8) Other Related-party Transactions
Naught
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Item Related party Ending balance Beginning balance
113
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Carrying amount Bad debt provision Carrying amount Bad debt provision
Monetary
Guangdong Rising
capital-Interest 3,126,022.22
Finance Co., Ltd.
receivable
PROSPERITY
LAMPS &
Accounts receivable 2,082,583.52 62,477.51 3,158,126.65 94,743.80
COMPONENTS
LTD
Guangdong Vollsun
Accounts receivable Data Solid-state 2,653,280.00 265,328.00 2,653,280.00 265,328.00
Storage Co., Ltd.
OSRAM (China)
Accounts receivable 117,554.16 58,777.08 117,554.16 58,777.08
Lighting Co., Ltd.
Prosperity
(Hangzhou) Lighting
Accounts receivable 86,367.27 86,367.27 86,367.27 86,293.82
and Electrical Co.,
Ltd.
Guangzhou Huajian
Engineering
Accounts receivable 144,582.20 4,337.47
Construction Co.,
Ltd.
Foshan NationStar
Prepayments Optoelectronics Co., 17,742.86 4,866.76
Ltd.
Prosperity Electrical
Prepayments 39,428.00 7,521.37
(China) Co., Ltd.
Total 5,141,538.01 477,287.33 9,153,738.43 505,142.70
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Foshan NationStar
Accounts payable 15,055,064.50 13,443,520.14
Optoelectronics Co., Ltd.
PROSPERITY LAMPS &
Accounts payable 728,943.97
COMPONENTS LTD
Guangdong Fenghua Advanced
Accounts payable 2,621,004.33 384,036.84
Technology Holding Co., Ltd.
Hangzhou Times Lighting and
Accounts payable 169,522.41 219,439.95
Electrical Co., Ltd.
114
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Prosperity Electrical (China)
Accounts payable 160,759.70
Co., Ltd.
PROSPERITY LAMPS &
Other payables 488,822.33
COMPONENTS LTD
Guangdong Electronic
Other payables 210,500.00 181,700.00
Technology Research Institute
Prosperity Electrical (China)
Other payables 100,000.00 100,000.00
Co., Ltd.
Prosperity Electrical (China)
Contractual liabilities 56,438.08 52,619.26
Co., Ltd.
Total 18,941,473.29 15,030,898.22
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
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 4 June 2020.
Date of commitment making: 3 December 2019
Term of commitment: 6 months
Fulfillment: Fulfilled
(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.
115
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(3)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About reduction and regulation of related-party transactions
Content: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that during their direct or indirect holding of the Company’s shares, they
shall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE, the Company’s Articles of
Association, etc. and not harm the interests of the Company or other shareholders of the Company in their
production and operation activities by taking advantage of their position as the controlling shareholder and actual
controller; 2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run or associated
companies (the “Relevant Enterprises” for short) will try their best to avoid or reduce related-party transactions
with the Company or the Company’s subsidiaries; 3. strictly follow the market principle of justness, fairness and
equal value exchange for necessary and unavoidable related-party transactions between them and their Relevant
Enterprises and the Company, and withdraw from voting when a related-party transaction with them or their
Relevant Enterprises is being voted on at a general meeting or a board meeting, and execute the relevant approval
procedure and information disclosure duties pursuant to the applicable laws, regulations and 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
116
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
promise to follow the legal procedure in their recommendation of directors, supervisors and senior management
personnel to the Company and not to hire or dismiss employees beyond the Company’s Board of Directors and
General Meeting. 3. They will ensure the independence and completeness of the Company in asset: (1) They
promise that the Company will have a production system, an auxiliary production system and supporting facilities
for its operation; legally have the ownership or use rights of the land, plants, machines, trademarks, patents and
non-patented technology in relation to its production and operation; and have independent systems for the
procurement of raw materials and the sale of its products. (2) They promise that the Company will have
independent and complete assets all under the Company’s control and independently owned and operated by the
Company. And (3) They promise that they and their other controlled subsidiaries will not illegally occupy the
Company’s funds and assets in any way, or use the Company’s assets to provide guarantees for the debts of
themselves or their other controlled subsidiaries with. 4. They will ensure the independence of the Company in
organization: (1) They promise that the Company has a sound corporate governance structure as a joint-stock
company with an independent and complete organization structure. (2) They promise that the operational and
management organs within the Company will independently execute their functions according to laws, regulations
and the Company’s Articles of Association. 5. They will ensure the independence of the Company in finance: (1)
They promise that the Company will have an independent financial department and financial accounting system
with normative, independent financial accounting rules. (2) They promise that the Company will have
independent bank accounts and not share bank accounts with its related parties. (3) They promise that the
Company’s financial personnel do not hold concurrent positions in its related 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
117
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Naught
2. Contingency
(1) Significant Contingency on Balance Sheet Date
Naught
(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
118
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
4. Note to Other Events after Balance Sheet Date
Naught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
Naught
2. Debt Restructuring
Naught
3. Assets Replacement
Naught
4. Pension Plan
Naught
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. Notes Receivable
(1) Category of Notes Receivable
Unit: RMB
119
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Item 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
3.14% 69.58% 3.27% 69.58%
provision separately 23.66 10.09 .57 3.66 0.09 7
accrued
Of which:
Accounts receivable
for which bad debt 721,482, 33,242,4 688,239,6 691,130,6 32,134,19 658,996,41
96.86% 4.61% 96.73% 4.65%
provision accrued 087.55 53.81 33.74 12.31 3.35 8.96
by group
Of which:
744,859, 49,509,2 695,350,0 714,507,8 48,401,00 666,106,83
Total 100.00% 6.65% 100.00% 6.77%
311.21 63.90 47.31 35.97 3.44 2.53
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
Involving lawsuit and
Customer B 9,156,396.52 9,156,396.52 100.00% having a long account
age
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 721,482,087.55 33,242,453.81 4.61%
Total 721,482,087.55 33,242,453.81 --
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if
120
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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) 654,876,679.26
1 to 2 years 48,408,562.02
2 to 3 years 12,364,264.57
Over 3 years 29,209,805.36
3 to 4 years 15,515,563.07
4 to 5 years 1,781,966.16
Over 5 years 11,912,276.13
Total 744,859,311.21
(2) 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
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Accounts
48,401,003.44 1,108,377.31 116.85 49,509,263.90
receivable
Total 48,401,003.44 1,108,377.31 116.85 49,509,263.90
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
Other driblet small amount 116.85
Total 116.85
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Name Ending balance of accounts Proportion to total ending Ending balance of bad debt
121
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
receivable balance of accounts receivable provision
No. 1 71,743,804.40 9.63% 2,152,314.13
No. 2 38,317,669.82 5.14% 1,149,530.09
No. 3 32,005,878.73 4.30% 960,176.36
No. 4 15,809,222.09 2.12% 2,071,199.65
No. 5 15,400,628.68 2.07% 462,018.86
Total 173,277,203.72 23.26%
(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
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 46,389,136.26 37,934,614.96
Total 46,389,136.26 37,934,614.96
(1) Interest Receivable
Naught
(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 17,767,942.21 17,624,135.10
VAT export tax refunds 12,598,007.93 8,154,485.23
122
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Performance bond 3,939,060.80 3,231,331.10
Borrowings and petty cash for employees 6,501,149.15 5,436,926.32
Rental fees and water & electricity fees 2,351,406.74 1,476,056.29
Other 5,556,622.77 3,896,155.29
Total 48,714,189.60 39,819,089.33
2) 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
532,610.02 1,351,864.35 1,884,474.37
2020
Balance of 1 January
2020 in the Current —— —— —— ——
Period
Withdrawal of the
199,335.37 241,243.60 440,578.97
Current Period
Balance of 30 June 2020 731,945.39 1,593,107.95 2,325,053.34
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) 39,613,560.27
1 to 2 years 5,405,928.44
2 to 3 years 2,879,206.93
Over 3 years 815,493.96
3 to 4 years 458,195.27
4 to 5 years 50,000.00
Over 5 years 307,298.69
Total 48,714,189.60
123
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Other accounts
1,884,474.37 440,578.97 2,325,053.34
receivable
Total 1,884,474.37 440,578.97 2,325,053.34
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 total
Ending balance of
Name of the entity Nature Ending balance Aging ending balance of
bad debt provision
other receivables%
No. 1 Export rebates 12,598,007.93 Within 1 years 25.86% 377,940.24
Internal business Within 3 year
No. 2 12,423,925.40 25.50%
group
Internal business Within 1 year
No. 3 4,959,398.59 10.18%
group
No. 4 Other 1,888,515.60 Within 4 years 3.88% 534,299.21
No. 5 Social insurance 1,098,556.32 Within 1 years 2.26% 32,956.69
Total -- 32,968,403.84 -- 67.68% 945,196.14
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
124
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
183,738,416.82 183,738,416.82 181,093,725.43 181,093,725.43
associated
enterprises
Total 467,531,519.08 467,531,519.08 464,886,827.69 464,886,827.69
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease
Ending balance
balance Depreciation Ending balance
Investee Additional Reduced of depreciation
(carrying reserves Other (carrying value)
investment investment reserve
value) withdrawn
Foshan
Chansheng
2,744,500.00 2,744,500.00
Electronic
Ballast Co., Ltd.
FSL Chanchang
Optoelectronics 82,507,350.00 82,507,350.00
Co., Ltd.
Foshan Taimei
Times Lamps
350,000.00 350,000.00
and Lanterns
Co., Ltd.
Nanjing Fozhao
Lighting
72,000,000.00 72,000,000.00
Components
Manufacturing
125
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
25,500,000.00 25,500,000.00
Technology Co.,
Ltd.
FSL Lighting
195,812.50 195,812.50
GMBH
283,793,102.2
Total 283,793,102.26
6
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Beginnin Cash Withdraw Ending balance
Additiona losses nt of
g balance Reduced Changes bonus or al of balance of
Investee l recognize other
(carrying investmen of other profits impairme Other (carrying depreciati
investmen d under comprehe
value) t equity announce nt value) on
t the equity nsive
d to issue provision reserve
method income
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
181,093,7 4,725,081 2,080,390 183,738,4
ix
25.43 .89 .50 16.82
(Nanho)
Electronic
126
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
s Ltd.
181,093,7 4,725,081 2,080,390 183,738,4
Subtotal
25.43 .89 .50 16.82
181,093,7 4,725,081 2,080,390 183,738,4
Total
25.43 .89 .50 16.82
(3) Other Notes
Naught
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 1,364,657,069.47 1,068,734,161.29 1,587,821,567.72 1,245,016,649.64
Other business 58,327,006.37 45,523,697.25 47,837,600.24 39,394,932.17
Total 1,422,984,075.84 1,114,257,858.54 1,635,659,167.96 1,284,411,581.81
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0.00 at the period-end.
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
4,725,081.89 784,711.98
accounted by equity method
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
14,940,422.96 13,957,444.99
equity instrument investment
Investment income from financial products
15,454,650.86 14,528,002.77
and structural deposits
Other 1,023,100.00 -730,500.00
127
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
Total 36,143,255.71 44,169,887.94
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
-653,096.79
assets
Government grants recognized in the current
period, except for those acquired in the
ordinary course of business or granted at 2,920,648.00
certain quotas or amounts according to the
government’s unified standards
Gain/loss from change of fair value of
trading financial assets and liabilities,
derivative financial assets and liabilities, and
investment gains from disposal of trading
financial assets and liabilities, derivative -1,532,350.00
financial assets and liabilities, and
investment in other debt obligations, other
than valid hedging related to the Company’s
common businesses
Other non-operating income and expenses
241,184.67
other than the above
Less: Income tax effects 336,596.67
Non-controlling interests effects 13,177.38
Total 626,611.83 --
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
128
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2020
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
2.94% 0.1080 0.1080
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
2.92% 0.1075 0.1075
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
4. Other
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129
