Foshan Electrical and Lighting Co., Ltd. Interim Report 2020 (Summary)
Stock Code: 000541, 200541 Stock Name: FSL, FSL-B Announcement No. 2020-047
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
INTERIM REPORT 2020 (SUMMARY)
Part I Important Notes
This Summary is based on the full text of the Interim Report of Foshan Electrical and Lighting Co., Ltd. (together
with its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a full
understanding of the Company’s operating results, financial condition and future development plans, investors
should carefully read the aforesaid full text, which has been disclosed together with this Summary on the media
designated by the China Securities Regulatory Commission (the “CSRC”).
All the Company’s directors have attended the Board meeting for the review of this Report and its summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
Part II Key Corporate Information
1. Stock Profile
Stock name FSL, FSL-B Stock code 000541, 200541
Stock exchange for stock listing Shenzhen Stock Exchange
Contact information Board Secretary Securities Representative
Name Wu Shenghui Huang Yufen
Office address No. 64, Fenjiang North Road, No. 64, Fenjiang North Road,
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2020 (Summary)
Chancheng District, Foshan City, Chancheng District, Foshan City,
Guangdong Province, P.R.China Guangdong Province, P.R.China
Tel. 0757-82810239 0757-82966028
E-mail address fsldsh@chinafsl.com fslhyf@163.com
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
H1 2020 H1 2019 Change (%)
Operating revenue (RMB) 1,522,884,127.04 1,687,184,660.86 -9.74%
Net profit attributable to the listed
151,061,447.83 167,275,725.75 -9.69%
company’s shareholders (RMB)
Net profit attributable to the listed
company’s shareholders before exceptional 150,434,836.00 154,517,987.66 -2.64%
gains and losses (RMB)
Net cash generated from/used in operating
201,077,703.45 190,681,833.48 5.45%
activities (RMB)
Basic earnings per share (RMB/share) 0.1080 0.1195 -9.62%
Diluted earnings per share (RMB/share) 0.1080 0.1195 -9.62%
Weighted average return on equity (%) 2.94% 3.77% -0.83%
30 June 2020 31 December 2019 Change (%)
Total assets (RMB) 6,517,507,782.65 6,175,200,008.24 5.54%
Equity attributable to the listed company’s
5,234,668,010.70 4,880,736,800.07 7.25%
shareholders (RMB)
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
Number of preferred
Number of ordinary shareholders 87,618 shareholders with resumed 0
voting rights (if any)
Top 10 shareholders
Nature of Shareholding Shares in pledge or frozen
Name of shareholder Number of shares Restricted shares
shareholder percentage Status Shares
Hong Kong Wah
Foreign legal
Shing Holding 13.47% 188,496,430 0 In pledge 92,363,251
person
Company Limited
Prosperity Lamps & Foreign legal
10.50% 146,934,857 0
Components Limited person
Shenzhen Rising
Investment State-owned
5.12% 71,696,136 0 In pledge 35,800,000
Development Co., legal person
Ltd.
Guangdong
Electronics State-owned
4.85% 67,876,801 0 In pledge 32,532,815
Information Industry legal person
Group Ltd.
Central Huijin Asset State-owned
2.42% 33,878,900 0
Management Co., Ltd. legal person
Essence International Foreign legal 2.22% 31,059,913 0
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2020 (Summary)
Securities (Hong person
Kong) Co., Ltd.
Hong Kong Rising
Investment Foreign legal
1.82% 25,482,252 0
Development Co., person
Ltd.
DBS Vickers(Hong
Foreign legal
Kong) Ltd A/C 1.50% 20,929,637 0
person
Clients
China Merchants
Foreign legal
Securities (Hong 0.89% 12,494,704 0
person
Kong) Co., Ltd
Foreign natural
Zhuang Jianyi 0.85% 11,903,509 8,927,632
person
Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited,
Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information
Industry Group Ltd. and Hong Kong Rising Investment Development Co., Ltd. are
Related or acting-in-concert parties
acting-in-concert parties; and Prosperity Lamps & Components Limited and Zhuang
among the shareholders above
Jianyi are acting-in-concert parties. Apart from that, it is unknown whether there is among
the top 10 shareholders any other related parties or acting-in-concert parties as defined in
the Administrative Measures for the Acquisition of Listed Companies.
Shareholders involved in securities
None
margin trading (if any)
4. Change of the Controlling Shareholder or the Actual Controller in the Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstanding
before the date of this Report’s approval or were due but could not be redeemed in full?
No.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2020 (Summary)
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?
No.
The first half of 2020 saw a heavy hit by the COVID-19 pandemic to the global economy and consumer market.
This, together with the fierce competition in the lighting industry, put companies under tremendous pressure. In
face of the pressure and challenges, the Company forged ahead with great solidarity against headwinds. In
addition to playing its part in the fight against the pandemic, the Company tapped potential internally and
explored more markets externally. Through fully implementing the philosophy of “Focus on the Key Work,
Improve Weak Links, Solve Bottlenecks, Increase Efficiency and Promote Growth”, as well as by paying more
attention in various work, the Company has achieved a better level of production and operation. Due to the
pandemic, for the Reporting Period, the Company achieved operating revenue of RMB1522.8841million, a
year-on-year decrease of 9.74%; and a net profit attributable to the listed company’s shareholders of
RMB151.0614million, a year-on-year decrease of 9.69%.
In the first half year of 2020, the Company has carried out work mainly in the following aspects:
1. Stepping up effort in scientific and technological innovation to strengthen the momentum of development
The Company has continued to increase R&D spending since the beginning of the year. In the first half year, it
spent RMB64.96million on R&D, accounting for 4.27% of the operating revenue of the period. It completed the
development of 335 new products, applied for 53 new patents and was granted with 42 patents. To meet new
market demands in the context of COVID-19, the Company quickly mobilized forces to develop, upgrade and
release series of new functional products with anti-epidemic and disinfecting functions and new healthy lighting
products to the market. In addition, it further stepped up effort in the development and promotion of intelligent
lighting products.,accessed the IoT platforms such as Alibaba Cloud, and developed smart home lighting products
jointly with Alibaba (artificial intelligent lab o f Tmall Genie), Huiwei (Hilink) and Baidu (Duer) so as to provide
more abundant products and home application scenarios for users.The Company continued to promote
industry-education-research collaboration with key colleges and universities and professional research institutes
across the country, and extended business into new segments to produce stronger impetus for development.
2. Focusing on marketing model innovation and market expansion to boost sales
First, the Company effectively enhanced market activity through new marketing models, such as “live streaming
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2020 (Summary)
and crowd funding”. By hosting large-scale live streaming targeting the whole country, the Company improved
the operation efficiency of its online traffic, laying a solid foundation for raising sales revenue. Second, the
Company focused on developing key accounts and projects and further developed the potentials of existing key
accounts. While proactively entering into the centralized purchases of real estate companies, the Company
continuously expanded cooperation with home decor companies, property management companies, large chain
groups and other channel customers. On top of that, the Company actively developed the overseas market,
increase the development of new customers. At the same time, the Company further developed the potentials of
existing big accounts and provided quality services to them, so as to obtain more orders and develop more projects
of intelligent products and new lamps.
3. Tightening effort in delicacy management to enhance corporate management efficacy
The Company worked hard to increase revenue and reduce expenditure to counter the impact of the epidemic on
its production and operation. First, it controlled costs and cut expenses, analyzed and monitored budget execution,
and made “belt-tightening” plans with strict control over non-operating expenses. It continued to advance the
upgrading of production automation to cut labor costs and increase production efficiency. Second, it drove the
collection of accounts receivable by establishing a warning mechanism for Accounts receivable. Through stronger
effort in this aspect, the Company intended to prevent the risk of operating fund. Third, it improved its capacity
for supply chain delivery. Through coordination and cooperation among different departments, the Company
ensured timely receiving of materials and timely shipment of products.
4. Managing corporate culture and team building to enhance its cohesion
Guided by Party building, the Company set up multiple platforms, such as Key Party Members Pioneering Post,
Key Party Members Responsibility Zone, and Key Party Members Fortification Team, gave play to the leading
role of Party members. It published reports on meritorious deeds in lighting and the battle against the virus, and
commended 31 “Lighting Pioneers”. By doing this, the Company aimed to create a favorable atmosphere for
business development, make all staff pull together towards production and operation.
2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the Last
Accounting Period
√ Applicable □ Not applicable
Changes in accounting policy Approval procedure Remark
On 5 July 2017, the Ministry of Finance Approved by the 35th Meeting of the 8th For details, refer to the Announcement on
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2020 (Summary)
issued the Notice on Revising and Issuing Board of Directors Changes in Accounting Policies
the Accounting Standards for Business (Announcement No.: 2020-011) disclosed
Enterprises No.14-Revenue on cninfo.com.cn.
(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 Accounting
Standards for Business Enterprises for
preparation of financial statements to
implement it since 1 January 2018,
required other domestically listed
enterprises to implement it since 1 January
2020 and 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.
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the Reporting
Period
□ Applicable √ Not applicable
No such cases.
(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period
□ Applicable √ Not applicable
No such cases.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd.
27 August 2020
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