Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
ANNUAL REPORT 2020
April 2021
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Wu Shenghui, the Company’s legal representative, Tang Qionglan, the Company’s Chief
Financial Officer (CFO), and Peng Fentao, the person-in-charge of the Company’s accounting
organ (equivalent to accounting manager) hereby guarantee that the Financial Statements
carried in this Report are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
The future plans and other forward-looking statements, as well as the cautionary statements
mentioned in this Report shall NOT be considered as virtual promises of the Company to
investors. And investors are kindly reminded to be well aware of possible risks.
The Company has described in detail in this Report the risk of uncertainty in macro-economy,
the risk of fiercer market competition, the risk of rising raw material prices, and the risk of
exchange rate fluctuations. Please refer to the section headed “Potential Risks” in Item IX of
Part IV of this Report.
The Board has approved a final dividend plan as follows: based on the share capital of the
total share capital minus the shares in the share repurchase account at the date of record, a
cash dividend of RMB 1 (tax inclusive) per 10 shares is to be distributed to the shareholders,
with no bonus issue from either profit or capital reserves.
This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions, the Chinese version shall
prevail.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 5
Part III Business Summary ............................................................................................................. 10
Part IV Operating Performance Discussion and Analysis ........................................................... 15
Part V Significant Events ................................................................................................................ 44
Part VI Share Changes and Shareholder Information ................................................................. 73
Part VII Preferred Shares ............................................................................................................... 83
Part VIII Convertible Corporate Bonds ........................................................................................ 84
Part IX Directors, Supervisors, Senior Management and Staff................................................... 85
Part X Corporate Governance ........................................................................................................ 99
Part XI Corporate Bonds .............................................................................................................. 107
Part XII Financial Statements ...................................................................................................... 108
Part XIII Documents Available for Reference ............................................................................. 252
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Definitions
Term Definition
Foshan Electrical and Lighting Co., Ltd. and its consolidated subsidiaries,
The “Company”, “FSL” or “we”
except where the context otherwise requires
Rising Group Guangdong Rising Holdings Group Co., Ltd.
Electronics Group Guangdong Electronics Information Industry Group Ltd.
GD Rising Finance Guangdong Rising Finance Holding Co., Ltd.
Shenzhen Rising Investment Shenzhen Rising Investment Development Co., Ltd.
Hong Kong Rising Investment Rising Investment Development Limited
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
General meeting General meeting of Foshan Electrical and Lighting Co., Ltd.
Board of Directors The board of directors of Foshan Electrical and Lighting Co., Ltd.
Supervisory Committee The supervisory committee of Foshan Electrical and Lighting Co., Ltd.
Annual report auditor Zhongzheng Tiantong Certified Public Accountants LLP
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB, RMB’0,000, RMB’00,000,000
of Renminbi, expressed in hundreds of millions of Renminbi
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name FSL, FSL-B Stock code 000541, 200541
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 佛山电器照明股份有限公司
Abbr. 佛山照明
Company name in English (if
FOSHAN ELECTRICAL AND LIGHTING CO.,LTD
any)
Abbr. (if any) FSL
Legal representative Wu Shenghui
Registered address No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.China
Zip code 528000
Office address No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.China
Zip code 528000
Company website www.chinafsl.com
Email address gzfsligh@pub.foshan.gd.cn
II Contact Information
Board Secretary Securities Representative
Name Wu Shenghui Huang Yufen
No. 64, Fenjiang North Road, Chancheng No. 64, Fenjiang North Road, Chancheng
Address District, Foshan City, Guangdong District, Foshan City, Guangdong
Province, P.R.China Province, P.R.China
Tel. （0757）82810239 （0757）82966028
Fax （0757）82816276 （0757）82816276
Email address fsldsh@chinafsl.com fslhyf@163.com
III Media for Information Disclosure and Place where this Report Is Lodged
Newspapers designated by the Company for China Securities Journal, Securities Times, Securities Daily, Ta Kung Pao
information disclosure (HK)
Website designated by CSRC for publication of this
http://www.cninfo.com.cn
Report
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Board Secretary’s Office, FSL Office Building, No. 64, Fenjiang North
Place where this Report is lodged
Road, Chancheng District, Foshan City, Guangdong Province, P.R.China
IV Change to Company Registered Information
Unified social credit code 91440000190352575W
Change to principal activity of the Company
Unchanged
since going public (if any)
Every change of controlling shareholder since
Unchanged
incorporation (if any)
V Other Information
The independent audit firm hired by the Company:
Name Zhongzheng Tiantong Certified Public Accountants LLP
Office address 13/F, Tower B, Jinyun Building, A43 Xizhimen Avenue North, Haidian District, Beijing
Accountants writing signatures Tong Quanyong, Chen Wenhong
The independent sponsor hired by the Company to exercise constant supervision over the Company in the
Reporting Period:
□ Applicable √ Not applicable
The independent financial advisor hired by the Company to exercise constant supervision over the Company in
the Reporting Period:
□ Applicable √ Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
√ Yes □ No
Reason for retrospective restatement:
Business combination involving entities under common control.
2020-over-
2019 2019 2018
2020
change (%)
Before Restated Restated Before Restated
Operating revenue (RMB) 3,744,914,452.72 3,337,576,747.66 3,337,576,747.66 12.20% 3,801,955,946.76 3,801,955,946.76
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Net profit attributable to the
listed company’s 316,914,185.34 301,182,906.24 296,077,926.11 7.04% 377,615,133.62 374,497,830.80
shareholders (RMB)
Net profit attributable to the
listed company’s
shareholders before 276,795,046.07 283,753,154.31 283,753,154.31 -2.45% 354,513,585.67 354,513,585.67
exceptional gains and losses
(RMB)
Net cash generated
from/used in operating 394,828,331.90 508,084,757.46 509,889,792.05 -22.57% 617,987,487.05 629,289,534.87
activities (RMB)
Basic earnings per share
0.2265 0.2152 0.2116 7.04% 0.2699 0.2676
(RMB/share)
Diluted earnings per share
0.2265 0.2152 0.2116 7.04% 0.2699 0.2676
(RMB/share)
Weighted average return on
5.82% 6.37% 6.18% -0.36% 8.36% 8.30%
equity (%)
Change of
31
December
31 December 31 December 2019 2020 over 31 December 2018
2020 31
December
2019 (%)
Before Restated Restated Before Restated
Total assets (RMB) 8,519,336,914.11 6,175,200,008.24 6,477,955,373.32 31.51% 5,588,166,699.30 5,796,822,947.25
Equity attributable to the
listed company’s 6,263,921,304.54 4,880,736,800.07 4,944,201,236.25 26.69% 4,319,259,418.46 4,387,828,834.77
shareholders (RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before
and after exceptional gains and losses was negative for the last three accounting years, and the latest independent
auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern.
□ Yes √ No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s shareholders before
and after exceptional gains and losses was negative.
□ Yes √ No
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity under CAS and IFRS
□ Applicable √ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable √ Not applicable
No difference for the Reporting Period.
VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 560,357,960.57 962,526,166.47 1,036,642,740.19 1,185,387,585.49
Net profit attributable to the listed
32,282,776.35 118,778,671.48 81,713,561.32 84,139,176.19
company’s shareholders
Net profit attributable to the listed
company’s shareholders before 34,187,987.98 116,246,848.02 71,099,990.80 55,260,219.27
exceptional gains and losses
Net cash generated from/used in
-24,040,955.33 225,118,658.78 151,006,248.62 42,744,379.83
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their summations differs
materially from what have been disclosed in the Company’s quarterly or interim reports.
□ Yes √ No
IX Exceptional Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item 2020 2019 2018 Note
Gain or loss on disposal of non-current
assets (inclusive of impairment allowance 7,466,798.65 -413,275.62 -1,671,154.30
write-offs)
Government subsidies charged to current
profit or loss (exclusive of government 25,372,941.13 6,485,365.31 30,005,231.23
subsidies given in the Company’s ordinary
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
course of business at fixed quotas or
amounts as per the government’s uniform
standards)
Capital occupation charges on non-financial
enterprises that are recognized in profit or 1,337,410.12
loss
Current profit or loss on subsidiaries
obtained in business combinations involving
-5,613,743.03 -5,104,980.13 -3,117,302.82
entities under common control from the
period-beginning to combination dates, net
Gain or loss on fair-value changes on
held-for-trading and derivative financial
assets and liabilities & income from disposal
of held-for-trading and derivative financial
8,463,850.00 15,574,400.00 -477,200.00
assets and liabilities and other debt
investments (exclusive of the effective
portion of hedges that arise in the
Company’s ordinary course of business)
Reversed portions of impairment allowances
for receivables and contract assets which are 9,156,396.52
tested individually for impairment
Non-operating income and expense other
-123,367.66 -2,543,083.02 -594,356.14
than the above
Less: Income tax effects 5,643,715.91 2,635,263.29 4,222,066.76
Non-controlling interests effects (net
297,430.55 -961,608.55 -61,093.92
of tax)
Total 40,119,139.27 12,324,771.80 19,984,245.13 --
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part III Business Summary
I Principal Activity of the Company in the Reporting Period
1. The Company’s Principal Activities or Products
We design, manufacture and market high-quality, green and energy-efficient lighting products and electrical
products, as well as provide complete lighting and electrical solutions. Our products mainly include electrical
products such as LED light sources and luminaries, automotive LED luminaries, traditional light sources switches
and socket. Currently, we have three major operating divisions, namely, lighting, electrical products and vehicle
lighting. Upon years of development, we have won quite many honors, and our “FSL” and “Fenjiang” brands
have been certified as “Famous China Brands”.
2. Main business models
(1) Procurement model
We mainly procure raw materials such as LED lamp beads, electronic components, aluminum substrate, plastic
parts, metal materials,and fuel by way of bids invitation. A bids invitation supervisory committee consisting of
personnel from several departments will be set up in the future. For every kind of our main raw materials, we
usually have a few suppliers to choose from in procurement so that the procurement prices would be fair, the
supply of raw materials in time and the good quality of the raw materials ensured.
(2) Production models
① Production of the conventional products
Concerning the conventional products, we analyze sales of every month and predict future market demand so as to
formulate a production plan for the coming month. And our workshops produce according to the plan to avoid
extra stock and at the same time ensure that there is enough for sale.
② Production according to orders
Different from the conventional lighting products which are of little variation in specifications, LED lighting
products are at a fast pace of renewal and different customers often have different requirements regarding the
products’ appearances and performance indexes. Therefore, we have to organize individualized production for
some orders for LED lighting products, export orders in particular. For this kind of orders, we formulate our
production plans based on them and then make procurement plans according to the production plans, which will
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
help effectively control the stock and the procurement prices of raw materials, reduce capital occupation and
improve our operating efficiency to the maximum.
③ Combination of independent production and outsourcing
With a high production capacity, we produce most of our products and parts on our own. Only a small portion of
parts and low-tech products is outsourced to sub-manufacturers, who will produce in strict accordance with our
requirements. We will also tag along their production processes and examine carefully the quality of the products
finished. In this way, our supply of products is guaranteed.
(3) Sales model
Domestically, we mainly adopt a commercial agent model. In terms of channels, we have wholesale, franchised
store, illumination engineering & commercial lighting, industrial and mining outdoor channels, e-commerce &
retail sales and automotive lighting channels.
For overseas markets, we primarily adopt OEM/ODM models and also sell under our own brands (through
agents).
3. Main driving forces for growth
During the Reporting Period, the global economy was impacted by the Covid-19 pandemic, and the downward
pressure on the economy increased drastically. However, China realized adequate containment of the pandemic
and full reopening of its economy in a short period of time, effectively safeguarding enterprises to resume normal
production and operation. The Dual-Circulation strategy (accelerating efforts to establish a new development
pattern in which the domestic and international circulations boost each other, with the domestic circulation as the
mainstay) and the New Infrastructure, Rural Revitalization, Smart Cities and other programs launched by the
Central Government have brought new development opportunities for the domestic lighting industry. Meanwhile,
with the evolution of the industrial competition model, consumers are getting increasingly concerned with product
quality and brand. As a result, companies with weak competitiveness will be gradually elbowed out of the market
while large enterprises or enterprises with core competitiveness will have more market opportunities. By virtue of
its advantages in technology, brand, channel and scale, the Company has continued to promote the technical
upgrading of main products, improve product quality, beef up market expansion and optimize and upgrade the
product sales structure through sustained spending on R&D and technical innovation. Meanwhile, it has gained an
advantageous position in the process of enhancing market concentration by increasing the level of production
automation, effectively controlling purchase costs and ramping up production efficiency.
4. Development stage and periodicity of the lighting industry as well as our position in the market
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
At present, the lighting industry has transitioned from a high-speed development period, which occurred a few
years ago, to a stable development period and is suffering significant structural overcapacity. With rigidly
increasing operating costs, the profit margins of lighting enterprises have been squeezed to a certain extent. From
the perspective of the global market, with the emergence of the anti-globalization movement, the fluctuations in
the RMB-to-USD exchange rate and the global Covid-19 pandemic pending effective control, the lighting industry
is facing many uncertainties in export, and many export-oriented enterprises are turning to the domestic market,
exacerbating the competition in the domestic market. Under the dual pressures from market demand and fierce
competition, large enterprises are seeking expansion through merger and restructuring while improving their
market competitiveness through transformation and upgrading, thereby continuously improving their market
position.
Generally speaking, China’s lighting industry is insufficiently centralized with no overwhelmingly superior
enterprises despite an enlarging market share of competitive brands. Upon years of development, we have become
a leading and quite competitive lighting enterprise with strong competitiveness in brand, production scale, channel,
R&D, etc.
II Significant Changes in Major Assets
1. Significant Changes in Major Assets
Major assets Main reason for significant changes
The ending amount was up 113.16% from the beginning amount, primarily driven by an
Equity assets increase in the fair value of investments in other equity instruments held by the Company
in the current period.
Fixed assets No significant change in the current period
Intangible assets No significant change in the current period
The ending amount was up 28.40% from the beginning amount, primarily driven by the
Construction in progress acquisition of Hunan Keda New Energy Investment and Development Co., Ltd. in the
current period.
2. Major Assets Overseas
□ Applicable √ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
III Core Competitiveness Analysis
The core competitiveness of the Company mainly reflects on fours aspects listed below:
Channel advantage
The Company has been sticking to the market strategy of deeply cultivating and refining channels. Over years of
development and experience, the Company has been equipped with five major sales channels in domestic market
(wholesale, franchised store, e-commerce & retail sales, illumination engineering & commercial lighting and
industrial and mining outdoor channels), forming a marketing network covering the whole country; in foreign
market, the Company has made active steps to develop international market business, sold products to more than
120 countries and regions in North America, Europe, Southeast Asia, Africa and Oceania, and kept improving
overseas sales channel. By virtue of its powerful and comprehensive sales channels, the Company has enabled its
products to enter market rapidly, substantially enhancing its market development abilities and competitiveness.
Brand advantage
The Company has accumulated more than 60 years’ experience in the lighting industry and enjoyed continuously
increasing influence and brand value for its “FSL”. In recent years, with the enhancement of its development
positioning, product design and user experience, the Company has initiated the strategy of brand upgrading and
carried out promotion by centering around the new “Professional, Healthy, Fashionable and Intelligent”. In
addition, it has driven the transition of “FSL” from an industrial brand to a popular brand to maintain the brand
vitality and competitiveness. Among the Company’s brands, both “FSL” and “Fenjiang” are China Famous
Trademarks. The brand “FSL” has become one of the most influential and popular industrial brands in China, and
the powerful brand influence has played a key role in driving the sustained growth of the Company’s sales.
R&D technical advantage
The Company has been valuing the R&D of new products and the development of innovation and R&D teams. It
has further increased spending on technology and independent product innovation. The company is a certified
high-tech company, it has its own testing center (national CNAS-Certified laboratory), Guangdong Engineering
Technology Development Center, Guangdong Industrial Design Center, Guangdong Enterprise Technology
Center, and Lighting Research Institute (municipal-level). It has won the titles of “National IP Advantaged
Enterprise” and “Guangdong IP Demonstration Enterprise”, and has been cumulatively granted 607 valid patents,
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
including 39 foreign ones. In terms of the development of the R&D team, the Company has formulated a
comprehensive R&D personnel management policy and appraisal system, intensified the introduction of high
calibre talents, and reinforced cooperation with colleges and universities in industry-university-research projects,
which has created a smooth path for the development of R&D professionals and provided strong support for it to
maintain a technology-leading position and to further carry out product innovation.
Scale advantage
As one of the enterprises to first step into the industry of producing and selling lighting products, the Company
form a capability of mass manufacturing by years of experience accumulation. The Company has production
bases in Foshan, Nanjing and Xinxiang. The large-scale and centralized production brings obvious economic
benefits to the Company, which not only shows in manufacture cost of products, but also shows in aspects such as
raw material procurement and product pricing.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part IV Operating Performance Discussion and Analysis
I Overview
The year 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 resumed production in an orderly manner,
furthered lean management and reform internally, and explored more markets and segment markets externally.
Through fully implementing the philosophy of “Focus on the Key Work, Improve Weak Links, Solve Bottlenecks,
and Increase Efficiency”, as well as by paying more attention in various work, the Company has achieved a better
level of production and operation. For the Reporting Period, the Company achieved operating revenue of RMB
3744.9145 million, a year-on-year increase of 12.20%; and a net profit attributable to the listed company’s
shareholders of RMB316.9142 million, a year-on-year increase of 7.04%.
In 2020, the Company has carried out tasks in the following major fronts:
1. Investment in technological innovation to boost the Company's momentum of development
Since 2020, the Company has been increasing investment in research and development (R&D), focus on the
development of new products . We have improved our R&D system and policy and have attracted more high-end
R&D talents to join us, making concrete progresses in driving technological advancement and innovation. In 2020,
a total of 12 high-tech projects and 747 new products were completed, achieving breakthroughs and innovation
with respect to technologies including toning drive, DOB, data processing, intelligent synchronous control,
lighting, mechanical and electrical system integration, new optical system design. The Company highly values
independent intellectual property. A total of 232 patents were applied, and 186 patents were granted during the
year. The Company was also involved in the drafting of 1 international standard, the proposing of 9 international
standards, in addition to the drafting and formulation of 16 national standards and the amending of 10 national
standards. The series of healthy lighting products with eyesight protection, disinfection and sterilization functions
developed by the Company have been commercially launched. A series of smart products have been launched for
in-depth cooperation with Alibaba and other mainstream platform ecosystems, promoting our smart home
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
products and solutions. Continuous efforts were made to promote cooperation with national key universities and
specialized research institutions and plan for entry into new niche markets, thereby boosting the momentum of
development.
2. Marketing model innovation and market exploitation to improve sales performance
First, live-streaming, crowdfunding and other new marketing models were employed to effectively boost market
activity level, and several nation-wide large live-streaming events were held to improve traffic operation
efficiency, help boost sales revenue. Second, existing competitive products were marketed using "volume breaks",
"differential provincial strategies" and other promotion strategies to effectively compete with competing products
and increase customer confidence. Third, we worked to develop new large customers and large projects and fully
explore the potential of existing large customers as a top priority. In addition to the progress made in seeking
partnership with the centralized procurement systems of real estate companies, we continued to expand our
cooperation with channel customers such as home decoration companies, property management agencies, large
chain group companies and overseas chain supermarkets. We actively worked to develop new sales points and
new customers while continuing to explore the potential of and improving our services to existing customers. We
implemented a project management model in which a dedicated team is assigned for each project. The sales to
some large customers grew year-on-year, and more projects were launched for smart products and new
luminaries.
3. Operation improvement to strengthen the foundation of development
First, budget implementation was analyzed and monitored as a top priority. We set a tight budget for the year and
firmly stuck to it by rigorously controlling various costs and expenditures. Second, The cost of production was
reduced by implementing product design, process improvement, accurate production scheduling, production
automation and other projects. Purchase cost was reduced through means such as locking material prices in
advance, implementing new replacement materials and rigorously implementing price bidding. Third, measures
were taken to ensure timely collection of accounts receivable. An account payable alert system was established,
and accounts receivable collection measures were strengthened to prevent operating capital risks.
4. Corporate culture and human resource development to strengthen the cohesiveness of the Company
First, measures were taken to stimulate employees' passion for work. A company atmosphere that enables
employee performance excellence through mutual competition, learning and assistance and strongly encourages
hard work and entrepreneurship was created, which has helped motivate every managers and employees to work
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
hard and take result-oriented actions and mobilize all employees' energies to the Company's production and
operation. Second, we continued to attract and nurture professionals in R&D, marketing, management and other
fields, thereby enhancing the Company's personnel development and providing the talent needed in the
Company’s development.
II Core Business Analysis
1. Overview
See “I Overview” above.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
2020 2019
As % of total As % of total
Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%) (%)
Total 3,744,914,452.72 100% 3,337,576,747.66 100% 12.20%
By operating division
Lighting products
3,744,914,452.72 100.00% 3,337,576,747.66 100.00% 12.20%
and luminaries
By product category
LED products 2,904,440,872.64 77.56% 2,530,826,166.63 75.83% 14.76%
Traditional lighting
689,743,873.34 18.42% 685,726,922.53 20.55% 0.59%
products
Electrical products 105,652,219.59 2.82% 80,498,200.00 2.41% 31.25%
Other 45,077,487.15 1.20% 40,525,458.50 1.21% 11.23%
By operating segment
Domestic 2,264,373,046.87 60.47% 1,983,289,202.28 59.42% 14.17%
Overseas 1,480,541,405.85 39.53% 1,354,287,545.38 40.58% 9.32%
(2) Operating Division, Product Category or Operating Segment Contributing over 10% of Operating
Revenue or Operating Profit
√ Applicable □ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Unit: RMB
YoY change in YoY change in
Operating Gross profit YoY change in
Cost of sales operating revenue gross profit
revenue margin cost of sales (%)
(%) margin (%)
By operating division
Lighting products
3,744,914,452.72 2,996,273,910.80 19.99% 12.20% 17.02% -3.29%
and luminaries
By product category
LED products 2,904,440,872.64 2,380,574,742.69 18.04% 14.76% 20.48% -3.89%
Traditional
689,743,873.34 508,266,318.83 26.31% 0.59% 2.18% -1.15%
lighting products
Electrical
105,652,219.59 68,817,185.52 34.86% 31.25% 31.75% -0.25%
products
Other 45,077,487.15 38,615,663.76 14.33% 11.23% 10.60% 0.49%
By operating segment
Domestic 2,264,373,046.87 1,741,470,345.52 23.09% 14.17% 17.31% -2.06%
Overseas 1,480,541,405.85 1,254,803,565.28 15.25% 9.32% 16.62% -5.30%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable √ Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
√ Yes □ No
Operating division Item Unit 2020 2019 Change (%)
Unit sales Piece 716,506,189 626,090,881 14.44%
Lighting products
Output Piece 714,484,762 606,160,734 17.87%
and luminaries
Inventory Piece 99,324,809 101,346,236 -1.99%
Any over 30% YoY movements in the data above and why:
□ Applicable √ Not applicable
(4) Execution Progress of Major Signed Sales Contracts in the Reporting Period
□ Applicable √ Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
Unit: RMB
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2020 2019
Operating division Item As % of total cost As % of total cost Change (%)
Cost of sales Cost of sales
of sales (%) of sales (%)
Lighting products
2,996,273,910.80 100.00% 2,560,513,052.56 100.00% 17.02%
and luminaries
Lighting products
Raw materials 2,230,736,822.88 74.45% 1,939,695,600.35 75.75% 15.00%
and luminaries
Lighting products
Labor cost 447,002,407.48 14.92% 340,520,251.28 13.30% 31.27%
and luminaries
Lighting products Depreciation
279,919,016.68 9.34% 245,381,314.70 9.58% 14.08%
and luminaries and other
Lighting products
Other 38,615,663.76 1.29% 34,915,886.23 1.36% 10.60%
and luminaries
Unit: RMB
2020 2019
Product category Item As % of total cost As % of total cost Change (%)
Cost of sales Cost of sales
of sales (%) of sales (%)
LED lighting
Raw materials 1,845,481,153.40 61.59% 1,571,660,353.88 61.38% 17.42%
products
LED lighting
Labor cost 331,960,030.45 11.08% 237,779,502.49 9.29% 39.61%
products
LED lighting Depreciation and
203,133,558.84 6.78% 166,485,580.19 6.50% 22.01%
products other
LED lighting
Subtotal 2,380,574,742.69 79.45% 1,975,925,436.56 77.17% 20.48%
products
Traditional
Raw materials 330,075,681.13 11.02% 323,991,639.55 12.65% 1.88%
lighting products
Traditional
Labor cost 107,276,584.12 3.58% 98,224,247.66 3.84% 9.22%
lighting products
Traditional Depreciation and
70,914,053.58 2.37% 75,222,442.56 2.94% -5.73%
lighting products other
Traditional
Subtotal 508,266,318.83 16.96% 497,438,329.77 19.43% 2.18%
lighting products
Electrical
Raw materials 55,179,988.35 1.84% 44,043,606.92 1.72% 25.28%
products
Electrical
Labor cost 7,765,792.91 0.26% 4,516,501.13 0.18% 71.94%
products
Electrical Depreciation and 5,871,404.26 0.20% 3,673,291.95 0.14% 59.84%
19
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
products other
Electrical
Subtotal 68,817,185.52 2.30% 52,233,400.00 2.04% 31.75%
products
Other products
Other 38,615,663.76 1.29% 34,915,886.23 1.36% 10.60%
and services
Total 2,996,273,910.80 100.00% 2,560,513,052.56 100.00% 17.02%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
√ Yes □ No
For details, see “VIII YoY Changes to the Scope of the Consolidated Financial Statements” in Part V of this
Report.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable √ Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 731,644,144.29
Total sales to top five customers as % of total sales of the
19.53%
Reporting Period (%)
Total sales to related parties among top five customers as
0.00%
% of total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for
No. Customer As % of total sales revenue (%)
the Reporting Period (RMB)
1 Customer A 449,281,338.89 12.00%
2 Customer B 109,286,004.14 2.92%
3 Customer C 83,604,263.43 2.23%
4 Customer D 50,347,369.79 1.34%
5 Customer E 39,125,168.04 1.04%
Total -- 731,644,144.29 19.53%
Other information about major customers:
√ Applicable □ Not applicable
20
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
None of the top five customers is a related party of the Company.
Major suppliers:
Total purchases from top five suppliers (RMB) 248,755,173.91
Total purchases from top five suppliers as % of total
10.15%
purchases of the Reporting Period (%)
Total purchases from related parties among top five
suppliers as % of total purchases of the Reporting Period 2.21%
(%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 80,119,950.58 3.27%
2 Supplier B 54,268,443.27 2.21%
3 Supplier C 39,869,011.31 1.63%
4 Supplier D 39,432,973.66 1.61%
5 Supplier E 35,064,795.09 1.43%
Total -- 248,755,173.91 10.15%
Other information about major suppliers:
√ Applicable □ Not applicable
Among the top five suppliers, the 2nd supplier is a related party of the Company while the other 4 are not.
3. Expense
Unit: RMB
2020 2019 Change (%) Reason for any significant change
Mainly due to that it will be transferred
to cost of sales with the freight in
relation to contract performance for
Selling expense 145,219,700.35 243,824,295.42 -40.44%
accounting since the implementation of
the new standards governing revenue
in this year.
Administrative expense 155,365,373.75 149,186,469.90 4.14%
Primarily driven by the appreciation of
Finance costs -5,623,285.45 -27,724,766.79 79.72%
RMB in the current period
R&D expense 108,885,296.71 79,444,261.80 37.06% Greater investments in R&D in the
21
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
current period, with a larger team and
an increase in projects
4. R&D Investments
√ Applicable □ Not applicable
The Company always took science and technology as the first priority, paid attention to technology R&D,
constantly researched and developed new products meeting market demands, promoted the optimization and
upgrade of product structure, improved the technology content of products, and improved the core
competitiveness of the Company. First, the Company keeps developing new products independently according to
market demand, and launches them to the market for a bigger market share. Second, customized new products are
developed to satisfy needs of different customers.
According to the Measures for the Administration of the Accreditation of High-Tech Enterprises, R&D
investments include the R&D investments recorded in cost of sales and the R&D investments expensed as per the
relevant accounting standards. In 2020, the Company’s R&D investments amounted to RMB161.1983 million,
accounting for 4.30% of the operating revenue. The revenue generated from the sale of products through the
bench-scale and pilot-scale production was recorded in the core business revenue, while RMB47.9749 million and
RMB108.8853 million of the costs and expenses incurred were recorded in the cost of sales of core businesses and
the R&D expense respectively.
Unit: RMB’0,000
Of which: R&D Of which: R&D
R&D investments
Operating investments investments
Year R&D investments as % of operating
revenue recognized in cost recognized in R&D
revenue
of sales expense
2020 374,491.45 16,119.83 4.30% 4,797.49 10,888.53
2019 333,757.67 13,905.44 4.17% 5,542.57 7,944.43
Details about R&D expense:
2020 2019 Change (%)
Number of R&D personnel 856 632 35.44%
R&D personnel as % of total
10.81% 8.38% 2.43%
employees
R&D investments (RMB) 161,198,331.61 139,054,379.24 15.92%
R&D investments as % of
4.30% 4.17% 0.13%
operating revenue
22
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Capitalized R&D investments
0.00 0.00 0.00%
(RMB)
Capitalized R&D investments
0.00% 0.00% 0.00%
as % of total R&D investments
Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable √ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable √ Not applicable
5. Cash Flows
Unit: RMB
Item 2020 2019 Change (%)
Subtotal of cash generated from
3,574,410,231.32 3,726,486,854.96 -4.08%
operating activities
Subtotal of cash used in
3,179,581,899.42 3,216,597,062.91 -1.15%
operating activities
Net cash generated from/used in
394,828,331.90 509,889,792.05 -22.57%
operating activities
Subtotal of cash generated from
467,212,335.49 70,764,256.00 560.24%
investing activities
Subtotal of cash used in
544,306,623.11 189,536,941.41 187.18%
investing activities
Net cash generated from/used in
-77,094,287.62 -118,772,685.41 35.09%
investing activities
Subtotal of cash generated from
48,300,000.00 79,950,000.00 -39.59%
financing activities
Subtotal of cash used in
536,686,783.37 218,298,000.02 145.85%
financing activities
Net cash generated from/used in
-488,386,783.37 -138,348,000.02 -253.01%
financing activities
Net increase in cash and cash
-175,350,823.84 252,892,057.87 -169.34%
equivalents
Explanation of why any of the data above varies significantly:
√ Applicable □ Not applicable
1. Net cash generated from operating activities decreased 22.57% year on year, primarily because longer payment
days were given by the Company to its customers, but not by the suppliers to the Company accordingly, and
23
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
because the labor cost increased, in the current period.
2. Net cash generated from investing activities increased 35.09% year on year, primarily driven by an increase in
payments for investment acquisition due to the acquisition of Hunan Keda New Energy Investment and
Development Co., Ltd., and the disinvestment in bank’s wealth management products upon maturity, in the
current period.
3. Net cash generated from financing activities decreased 253.01% year on year, Primarily because the Company
repaid the loan to Huajian Group on behalf of Foshan Kelian in the current period
Explanation of why net cash generated from/used in operating activities varies significantly from net profit for the
Reporting Period:
□ Applicable √ Not applicable
III Analysis of Non-Core Businesses
√ Applicable □ Not applicable
Unit: RMB
Amount As % of gross profit Main source/Reason Recurrent or not
Income from investments in low-risk
wealth management products of
Return on investment 44,236,204.90 12.02% bank, and dividends received during Not
the period of holding investments in
other equity instruments
Gain/loss on changes Gain/loss on changes in fair value of
4,785,700.00 1.30% Not
in fair value derivative financial instruments
Asset impairments -7,581,307.74 -2.06% Inventory valuation allowances Not
Non-operating income 2,164,694.19 0.59% Rebates of taxes, levies and fees Not
Non-operating Loss on retirement of non-current
3,854,417.99 1.05% Not
expense assets
Receipt of government subsidies that
Other income 28,989,528.20 7.88% arose in the ordinary course of Not
business
Credit impairment
-16,109,592.36 -4.38% Allowances for doubtful accounts Not
loss
Disposal of immovable properties in
Asset disposal income 9,090,874.79 2.47% Not
the current period
24
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Indicate whether the Company has adopted the new accounting standards governing revenue and leases since
2020 and restated the beginning amounts of relevant financial statement line items in the year.
Applicable.
Unit: RMB
31 December 2020 1 January 2020 Change in
Reason for any significant
As % of As % of percentage
Amount Amount change
total assets total assets (%)
Acquisition of Hunan Keda New
Energy Investment and
Monetary assets 981,249,699.49 11.52% 1,131,305,521.09 17.46% -5.94%
Development Co., Ltd. in the
current period
Accounts
1,134,233,235.70 13.31% 712,175,266.51 10.99% 2.32%
receivable
Inventory 735,685,116.91 8.64% 637,336,584.06 9.84% -1.20%
Long-term equity
181,365,016.32 2.13% 181,093,725.43 2.80% -0.67%
investments
Fixed assets 685,707,548.55 8.05% 630,001,778.81 9.73% -1.68%
Construction in
503,941,120.31 5.92% 392,463,954.62 6.06% -0.14%
progress
Increase in the fair value of
Investments in
investments in other equity
other equity 3,305,501,030.06 38.80% 1,454,740,241.46 22.46% 16.34%
instruments held in the current
instruments
period
2. Assets and Liabilities at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gain/loss on Cumulative
Impairment
fair-value fair-value Purchased in Sold in the
Beginning allowance for Other Ending
Item changes in the changes the Reporting Reporting
amount the Reporting changes amount
Reporting charged to Period Period
Period
Period equity
Financial
assets
25
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2.
Derivative 6,332,900.0
1,547,200.00 4,785,700.00
financial 0
assets
4.
Investments
1,454,740,241 1,850,760,78 3,305,501,0
in other
.46 8.60 30.06
equity
instruments
Subtotal of
1,456,287,441 1,850,760,78 3,311,833,9
financial 4,785,700.00
.46 8.60 30.06
assets
Total of the 1,456,287,441 1,850,760,78 3,311,833,9
4,785,700.00
above .46 8.60 30.06
Financial
0.00 0.00
liabilities
Details about other changes:
Investments in wealth management products and structured deposits are not included in the item of “other
changes”. For further information, see “ⅩⅦ Major Contracts and Execution thereof ” in Part V of this Report.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes √ No
3. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Monetary assets Security deposits for notes and performance
104,962,316.07
bonds
Notes receivable 57,702,279.27 In pledge for notes pool
Total 162,664,595.34
V Investments Made
1. Total Investment Amount
√ Applicable □ Not applicable
26
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Investment amount in the Reporting Period Investment amount in the same period of
Change (%)
(RMB) last year (RMB)
328,313,442.49 0.00 100.00%
2. Major Equity Investments Made in the Reporting Period
√ Applicable □ Not applicable
Unit: RMB
Status as
Investme Whether
Name of on the
Investme Shareholdi Funding Predict nt return involved Date of Disclosure
investee Main Invested Partner Investmen Produ date of
nt ng Resource ed in the in any disclosur index (if
enterpris businesses amount s t Duration ct type the
methods percentage s return current legal e (if any) any)
e balance
period actions
sheet
R&D,
manufactur
ing and
sales of
lighting
products,
lighting
equipment,
lighting
accessories Title of
and raw announceme
materials, nt:
(I would Announcem
suggest ent on the
"lighting Investment
accessories, in and
lighting Compan Establishme
materials.") y nt of a Joint
traffic registrati Venture to
lights, Foshan on Address
Foshan luminaries, Nation procedur Horizontal
Haolaite decorative Newly Star e Competition
16,685,0 Self-own -616,653 29 May
Lighting lights and establish 51.00% Optoel Long term complete 0.00 No Issues and
00.00 ed funds .01 2020
Co., Ltd accessories, ed ectroni d; normal the
(Note 1) and motor cs Co., running Related-Part
vehicle Ltd. of y
accessories; business Transactions
undertaking activities ; No. of
of lighting started announceme
engineering nt:
projects; 2020-024;
lighting published
engineering on: Cninfo
technologic (http://www.
al cninfo.com.
developme cn/).
nt,
consulting,
services, (I
would
suggest
"consulting
and other
services.")
and project
27
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
investment;
import and
export of
goods or
technologie
s
Title of
announceme
nt:
Announcem
ent on the
Acquisition
Energy All
of the 100
investment creditor's
Percent of
with rights
the Equity
self-owned and
Hunan of Hunan
assets; new liabilities
Keda Guang Keda New
materials involved
New dong Energy
and have
Energy Huajia Investment
technologie been
Investme 311,628, n 3 and
s promotion Self-own transferre -5,613,7
nt and Acquired 100.00% Enterpr Long term 0.00 No Decembe Developmen
services; 442.49 ed funds d. The 43.03
Develop ise r 2020 t Co., Ltd.
developme equity
ment Group and the
nt, was
Co., Co., Related-Part
consulting transferre
Ltd(Note Ltd. y
and transfer d to the
2) Transactions
of Compan
; No. of
new-energy y in
announceme
technologie January
nt:
s 2021.
2020-060;
published
on: Cninfo
(http://www.
cninfo.com.
cn/).
328,313,
442.49 -6,230,3
Total -- -- -- -- -- -- -- -- 0.00 -- -- --
96.04
Note:
Note 1: In July 2020, the Company and NationStar contributed jointly funds to establish Haolaite with a registered
capital of RMB17,158,000. The Company contributed RMB16,685,000 in monetary funds. Specifically,
RMB8,750,600 was for subscription of registered capital, and the remaining funds were recognized as capital
reserves, accounting for 51%. NationStar contributed RMB16.03 million with physical assets and intangible assets.
Specifically, RMB8,407,400 was for subscription of registered capital, and the remaining funds were recognized as
capital reserves, accounting for 49%. In light of Haolaite’s Articles of Association, the Board of Directors had a
total of five members, including three directors from the Company and two directors from NationStar.
Note2: On December 18, 2020, the Company convened the third extraordinary general meeting, where the Proposal
on the Related Party Transaction of Acquisition of 100% Equities of Hunan Keda New Energy Investment and
Development Co., Ltd. was reviewed and approved. In the same month, the Company signed an agreement on equity
transfer with Arcplus Group PLC to acquire 100% equities of Hunan Keda at a consideration of RMB311,628,400
and pay a total of RMB394,627,800 of debts off to Arcplus Group PLC and its subsidiaries on behalf of Hunan Keda.
The transaction constituted a business combination under common control, and the equity amount was fully paid in
that month.
28
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Unit: RMB
Gain/Lo
Accumu
ss on
lated
fair-valu Purchas Gain/los
Initial Beginni fair-valu Sold in
Security Security Security Measure e ed in s in Ending Account Funding
ng e Reporti
investm ment changes Reporti Reporti carrying
type code name carrying changes ng
method in ng ng value ing title source
ent cost value charged Period
Reporti Period Period
to
ng
equity
Period
Investm
Domesti
Guoxua ents in
cally/Ov Fair 1,116,84 1,557,9 1,778,2
n 160,000 661,377 other Self-fun
erseas 002074 value 1,020.7 83,042. 18,182.
High-tec ,000.00 ,161.25 equity ded
listed method 5 36 00
h instrum
stock
ents
Investm
Domesti
ents in
cally/Ov China Fair
30,828, 81,791, -7,789,6 50,351, 3,969,0 74,001, other Self-fun
erseas 601818 Everbrig value
816.00 185.14 36.68 800.64 05.36 548.46 equity ded
listed ht Bank method
instrum
stock
ents
Investm
Domesti
ents in
cally/Ov Fair 1,155,6 1,448,2
Xiamen 292,574 706,517 741,709 10,971, other Self-fun
erseas 601187 value 52,990. 27,123.
Bank ,133.00 ,718.67 ,404.53 417.60 equity ded
listed method 20 20
instrum
stock
ents
Foshan
branch Investm
Domesti
of ents in
cally/Ov Fair
Guangd 500,000 500,000 500,000 other Self-fun
erseas N/A value 0.00 0.00
ong .00 .00 .00 equity ded
listed method
Develop instrum
stock
ment ents
Bank
Total 483,902 -- 1,450,1 1,850,7 2,763,9 0.00 0.00 14,940, 3,300,9 -- --
29
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
,949.00 86,065. 60,788. 87,833. 422.96 46,853.
06 60 20 66
Disclosure date of
announcement on Board’s
consent for securities
investments
Disclosure date of
announcement on general
meeting’s consent for
securities investments (if
any)
(2) Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: US$’0,000
Ending
Actua
investm
l
Relation Related- Impairm ent as %
Initial Beginni Purchas gain/l
ship party Type of Sold in ent Ending of the
Operatin investm Beginni Ending ng ed in oss in
with the transacti derivativ Reportin allowan investm Compan
g party ent ng date date investm Reportin Repor
Compan on or e g Period ce (if ent y’s
amount ent g Period ting
y not any) ending
Perio
net
d
assets
Foshan
branch Not General 4 Nov. 7 Jan.
Not 800 400 400 6.14
of Bank related forward 2019 2020
of China
Foshan
branch
of the
Not General 4 Dec. 1 Apr.
Agricult Not 1,200 1,200 1,200 4.43
related forward 2019 2020
ural
Bank of
China
Foshan
branch
of Not General 17 Mar. 27 Mar.
Not 100 100 100 0.23
Guangz related forward 2020 2020
hou
Rural
30
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Commer
cial
Bank
Foshan
branch
of
Guangz
Not General 28 Apr. 28 Jul.
hou Not 450 450 450 4.17
related forward 2020 2020
Rural
Commer
cial
Bank
Foshan
branch
of the
Not General 25 Aug. 29 Mar.
Agricult Not 600 600 600 0.62%
related forward 2020 2021
ural
Bank of
China
Foshan
branch
of the
Industri
Not General 15 Sept. 23 Dec.
al and Not 300 300 300 12.82
related forward 2020 2020
Commer
cial
Bank of
China
Foshan
branch
of the
Industri
Not General 18 Sept. 23 Nov.
al and Not 400 400 400 3.93
related forward 2020 2020
Commer
cial
Bank of
China
Foshan
branch
of the Not General 22 Sept. 24 Nov.
Not 200 200 200 3.22
Industri related forward 2020 2020
al and
Commer
31
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
cial
Bank of
China
Foshan
branch
of the
Not General 24 Sept. 30 Dec.
Agricult Not 600 600 600 14.37
related forward 2020 2020
ural
Bank of
China
Foshan
branch
of the
Industri
Not General 30 Sept. 23 Feb.
al and Not 300 300 300 0.31%
related forward 2020 2021
Commer
cial
Bank of
China
Foshan
branch
of the
Industri
Not General 20 Oct. 23 Apr.
al and Not 600 600 600 0.62%
related forward 2020 2021
Commer
cial
Bank of
China
Foshan
branch
of the
Industri
Not General 28 Oct. 29 Jan.
al and Not 300 300 300 0.31%
related forward 2020 2021
Commer
cial
Bank of
China
Foshan
branch
of the Not General 3 Dec. 29 Jan.
Not 200 200 200 0.21%
Industri related forward 2020 2021
al and
Commer
32
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
cial
Bank of
China
Total 6,050 -- -- 1,600 4,050 3,650 2,000 2.07% 49.31 4
Funding source All self-funded
Legal matters involved (if applicable) N/A
Disclosure date of board
announcement approving derivative 10 April 2020
investment (if any)
Disclosure date of general meeting
announcement approving derivative 7 May 2020
investment (if any)
Risk Analysis of Forward Exchange Settlement Business: 1. Risk of exchange rate
fluctuations. In the case of large fluctuations in the exchange rate, the quoted price of the
bank’s forward exchange rate may be lower than the Company’s quoted exchange rate to the
customer, which will make the Company unable to lock the quoted exchange rate to the
customer or the bank’s forward exchange rate may deviate from the exchange rate at the
time of the Company’s actual receipt and payment, and causes exchange losses. 2. Risk of
customer default. The customer’s accounts receivable may be overdue, and the payment for
goods cannot be recovered within the predictable payback period, which will result in the
loss of the Company due to the delayed forward settlement. 3. Risk of payback prediction.
The marketing department shall made corresponding payback prediction based on customer
orders and expected orders. However, during the actual implementation process, customers
may adjust their orders and predictions, which will result in the Company’s incorrect
Analysis of risks and control payback prediction and cause the risk of delayed delivery of forward exchange settlement.
measures associated with derivative
investments held in Reporting Period Adopted Risk Control Measures: 1. The Company will strengthen the research and analysis
(including but not limited to market of the exchange rate. When the exchange rate fluctuates greatly, it will adjust the business
risk, liquidity risk, credit risk, strategy in a timely manner to stabilize the export business and avoid exchange losses to the
operational risk, legal risk, etc.) utmost. 2. The Management System for Forward Settlement and Sales of Foreign Exchanges
reviewed and approved by the board of directors of the Company stipulates that all forward
foreign exchange settlement businesses of the Company shall be based on the normal
production and operation, and relied on specific business operations to avoid and prevent
various exchange rate risks. However, speculative transaction and interest arbitrage are not
allowed. At the same time, the system clearly defines the operating principles, approval
authority, responsible department and responsible person, internal operation procedures,
information isolation measures, internal risk reporting system, risk management procedures,
and information disclosure related to the forward settlement business as well. In fact, the
system is conducive to strengthen the management of the Company’s forward foreign
exchange settlement business and prevent investment risks. 3. In order to prevent any delay
in the forward exchange settlement, the Company will strengthen the management of
accounts receivable, actively collect receivables, and avoid any overdue receivables. In the
33
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
meantime, the Company plans to increase the export purchases and purchase corresponding
credit insurance so as to reduce the risk of default and customer default. 4. The Company’s
forward foreign exchange settlement transactions must be based on the Company’s foreign
exchange earnings prediction. Besides, the Company shall strictly control the scale of its
forward foreign exchange settlement business, and manage all risks that the Company may
face within a controllable range. 5. The internal audit department of the Company shall
check the actual signing and execution situation of all trading contracts on a regular or
irregular basis.
The Company carries out recognition and measurement in accordance with the Accounting
Standard for Business Enterprises No. 22—Recognition and Measurement of Financial
Changes in market prices or fair value
Instruments, the Accounting Standard for Business Enterprises No. 24—Hedges, the
of derivative investments in
Accounting Standard for Business Enterprises No. 37—Presentation of Financial Instrument
Reporting Period (fair value analysis
and other applicable regulations. Fair value is arrived at based on the price provided by
should include measurement method
pricing service providers such as banks or the price obtained. Fair value measurement and
and related assumptions and
recognition are carried out on a monthly basis. Changes in the fair value of forward
parameters)
exchange settlement contracts entered into by the Company are mainly attributable to
difference arising from exchange rate fluctuations.
Major changes in accounting policies
and specific accounting principles
adopted for derivative investments in N/A
Reporting Period compared to last
reporting period
Opinions of the Independent Directors: The forward foreign exchange settlement
transactions conducted by the Company are based on normal production and operation, are
supported by specific businesses, aim to avoid and prevent foreign exchange risks associated
with export businesses, do not involve speculative operations and are consistent with the
Opinion of independent directors on
needs of the Company's operation and development. The Company has established relevant
derivative investments and risk
business management policies and risk control and prevention measures. The risk is
control
controllable. The proposal was passed following a lawful, valid decision-making procedure,
has no negative impact on the Company's normal operation and business development and
does not undermine the interest of the Company and its shareholders. Therefore, the
Company's conducting forward foreign exchange settlement transactions is approved.
5. Use of Funds Raised
□ Applicable √ Not applicable
No such cases in the Reporting Period
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
34
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
No such cases in the Reporting Period
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
VII Major Subsidiaries
√ Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the
Company’s net profit:
Unit: RMB
Relationship Principal Registered Operating Operating
Name with the activity Total assets Net assets Net profit
capital revenue profit
Company
FSL
Chanchang Manufacturin 72,782,944.0 256,672,209. 148,323,085. 263,390,220. 27,996,114.1 21,008,566.5
Subsidiary
Optoelectroni g 0 23 84 18 3 3
cs Co., Ltd.
Foshan
Taimei Times Manufacturin 86,586,924.6 35,693,580.4 145,973,615.
Subsidiary 500,000.00 7,614,724.99 4,983,862.50
Lamps Co., g 2 3 97
Ltd.
FSL New
Light Source Manufacturin 50,000,000.0 59,088,331.9 57,844,267.1 14,352,978.2
Subsidiary 1,035,316.86 815,141.95
Technology g 0 5 1 8
Co., Ltd.
FSL
(Xinxiang) Manufacturin 35,418,439.7 65,845,437.7 53,745,924.0 47,677,755.1
Subsidiary 4,482,967.11 3,374,710.61
Lighting Co., g 6 5 3 0
Ltd.
FSL Lighting
Equipment Manufacturin 15,000,000.0 64,906,377.3 57,939,316.9 61,037,062.7
Subsidiary 2,750,828.47 2,028,858.56
Co., Ltd. g 0 3 5 8
Nanjing
Fozhao
Lighting Manufacturin 41,683,200.0 95,535,303.7 68,972,226.0 35,081,400.6 11,123,281.4
Subsidiary 7,789,766.00
Components g 0 1 4 6 3
Manufacturin
g Co., Ltd.
35
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
FSL Zhida
Electric Manufacturin 50,000,000.0 121,158,874. 57,462,689.7 123,690,820. 10,221,462.3
Subsidiary 8,881,031.22
Technology g 0 60 8 25 1
Co., Ltd.
FSL Lighting Manufacturin
Subsidiary 195,812.50 1,151,741.34 5,451.07 2,148,324.25 37,900.72 37,900.72
GmbH g
Foshan
Haolaite Manufacturin 17,158,000.0 63,442,036.6 31,505,876.4 30,156,976.5 -1,603,434.1 -1,209,123.5
Subsidiary
Lighting Co., g 0 4 5 8 6 5
Ltd.
Hunan Keda
New Energy Investment
Investment and 100,000,000. 490,497,684. 57,850,693.1 -7,495,870.9 -5,613,743.0
Subsidiary
and technology 00 79 5 2 3
Development development
Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
√ Applicable □ Not applicable
How subsidiary was obtained or disposed Effects on overall operations and operating
Subsidiary
in the Reporting Period performance
Foshan Chansheng Electronic Ballast Co.,
De-registered No impact
Ltd.
Information about major majority- and minority-owned subsidiaries:
—FSL Chanchang Optoelectronics Co., Ltd. (renamed on 19 June 2018 from “Foshan Chanchang Electric
Appliances (Gaoming) Co., Ltd.”), which is a Sino-foreign joint venture invested and established by the Company
and Prosperity Lamps and Components Ltd, had obtained license for business corporation on 23 August 2005
through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District, Foshan with
document “MWJMY Zi [2005] No. 79”. The Company holds 70% equities of the said company; therefore the said
subsidiary was included into the scope of the consolidated financial statements since the date of foundation.
On 23 August 2016, the Company and Prosperity Lamps and Components Ltd signed the equity transfer
agreement. The Company purchased 30% equity of Foshan Chanchang Electric Appliances (Gaoming) Co., Ltd.
held by Prosperity Lamps and Components Ltd. After the purchasing, the Company held 100% equity of Foshan
Chanchang Electric Appliances (Gaoming) Co., Ltd.
—Foshan Taimei Times Lamps Co., Ltd., which is a Sino-foreign joint venture invested and established by the
36
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Company and Reback North America Investment Limited, had obtained license for Business Corporation on 5
December 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District,
Foshan with document “MWJMY Zi [2005] No. 97”. The Company holds 70% equities of the said company;
therefore the said subsidiary was included into the scope of the consolidated financial statements since the date of
foundation.
—FSL New Light Source Technology Co., Ltd. (its predecessor was “Foshan Lighting Lamps and Lanterns Co.,
Ltd.” and it changed its name to “FSL New Light Source Technology Co., Ltd.” on 17 December 2014), which is
invested and established by the Company together with Foshan Haozhiyuan Trading Co., Ltd., Shanghai Liangqi
Electric Co., Ltd, Changzhou Sanfeng Electrical & Lighting Co., Ltd., Henan Xingchen Electrical & Lighting Co.,
Ltd., Foshan Hongbang Electrical & Lighting Co., Ltd., Hebei Jinfen Trading Co., Ltd., obtaining its license for
Business Corporation on 27 September 2009. The Company holds 60% equities of this company. Therefore the
said subsidiary was included into the scope of the consolidated financial statements since the date of foundation.
On 25 September 2009 and 19 November 2010, the equity transfer agreement was signed between the Company
and the minority shareholders, in which the minority shareholders respectively transferred their equities of Foshan
Lighting Lamps and Lanterns Co., Ltd. to the Company. After transfer, the Company holds 100% equities of
Foshan Lighting Lamps and Lanterns Co., Ltd.
—FSL (Xinxiang) Lighting Co., Ltd. is a limited liability company which is invested and established by the
Company, obtaining its license for Business Corporation on 17 April 2009. The Company holds 100% equities of
the said company, therefore the said subsidiary was included into the scope of the consolidated financial
statements since date of foundation.
On 27 August 2013, the 3rd Meeting of the 7th Board of Directors reviewed and approved to invest another
RMB2 million (land in an industrial park in Xinxiang, Henan Province and monetary funds) in FSL (Xinxiang)
Lighting, increasing the registered capital of FSL (Xinxiang) Lighting to RMB35,418,439.76.
—Foshan Lighting Lamps and Lanterns Co., Ltd. is a limited liability company invested and established by the
Company with the registered capital of RMB15 million, which had obtained its license for Business Corporation
on 8 May 2013. And the Company holds 100% equities of this company. Therefore the said subsidiary was
included into the scope of the consolidated financial statements since the date of foundation.
—In accordance with the equity transfer agreement signed between the Company and Prosperity Lamps and
Components Ltd. on 27 August 2008, Prosperity Lamps and Components Ltd. transferred 100% equities of
Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. (formerly known as “Prosperity (Nanjing)
37
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Lighting Components Co., Ltd.”, and changed name to “Nanjing Fozhao Lighting Components Manufacturing
Co., Ltd.” on 15 November 2010.) to the Company. Therefore, Nanjing Fozhao Lighting Components
Manufacturing Co., Ltd. became a wholly-owned subsidiary of the Company. The said subsidiary was included
into the scope of the consolidated financial statements since the merger date.
—FSL Zhida Electric Technology Co., Ltd. (FSL Zhida) was incorporated by the Company, Foshan Zhibida
Enterprise Management Co., Ltd. and Dongguan Baida Semiconductor Material Co., Ltd. on a joint investment
basis. FSL Zhida obtained its business license on 21 October 2016. Holding a stake of 51% in it, the Company has
included FSL Zhida in its consolidated financial statements since the date of FSL Zhida’s incorporation.
—FSL Lighting GmbH is a Limited Liability company invested and set up in German with registered capital
Euro25,000. It got the business license on 30 November 2017 whose 100% stock equity is held by the Company,
and it is included into the scope of consolidated financial statement from the date of establishment.
—Foshan Haolaite was incorporated by the Company and Foshan NationStar, with a registered capital of
RMB17,158,000 contributed by the Company and Foshan NationStar and the corporate business license granted
on 30 July 2020. The Company owns 51 percent of the equity of Foshan Haolaite, which has been included in the
scope of the consolidated financial statements of the Company since its day of incorporation.
—The 100 percent of the equity of Hunan Keda was transferred from Guangdong Huajian to the Company under
an equity transfer agreement between the Company and Guangdong Huajian signed on 21 December 2020,
whereby Hunan Keda has become a wholly owned subsidiary of the Company. Hunan Keda has been included in
the scope of the consolidated financial statements of the Company since the day the Company assumed actual
control over Hunan Keda.
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Prospects
(I) Development trend of the Industry
1. Competitive landscape in the industry
The lighting industry saw an obvious slowdown in growth in recent years following the fast development of the previous years. Due
to the low barrier of entry into the downstream LED application sector, the LED lighting industry is experiencing
significant structural overcapacity, which leads to increasingly fierce market competition. In addition, the
38
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
increasing raw material and labor costs have brought a big pressure on the rapid development and profitability of
enterprises. However, as lighting products are developing in the direction of being more smart, individualized and
customized, enterprises with competitive technology, brand, financial resources and capabilities will survive and
prevail through the survival-of-the-fittest mechanism of market competition, and the industry is expected to
experience accelerated mergers, acquisitions and restructuring. Mergers and acquisitions enable enterprises to
expand their business space, increase their existing market share or create a larger market space in specific market
segments, thereby increasing the degree of concentration of the industry. The lighting industry will have a
competitive landscape in which "the big becomes bigger, the strong becomes stronger."
2. Development trend of the industry
(1) Accelerated pace of smartization and upgrading
In the application sector, standardized, modularized and low-cost products and systems will be the main
development direction of future LED applications. In terms of cross-industry synergy, LED technology and
new-generation information technology will be integrated in-depth, and products that have smart, remote, digital
and networking functionalities will be the trend of development. With the emergence of innovative technologies,
the industry will experience further accelerated intrusion of smart technologies. Traditional lighting products,
which are characterized by simple functionalities, will be gradually replaced by smart products, finally leading to
smart homes, smart cities and other overall solutions.
(2) Human-oriented lighting is a major development trend
Consumers become increasingly aware of the concept of healthy lighting. The applications of light are expanding.
With deepening research into the light spectrum, in addition to satisfying measurable parameters such as
illuminance and brightness, lighting and illumination are expected to be healthy, comfortable and efficient with
respect to the spatial, atmospheric, natural lighting, climatic, physiological, and psychological characteristics of
the scenario of use, and illumination light environment are expected to be conducive to physical and
psychological health. Human-oriented lighting is a major component of future cities and represents a major
development trend of the future lighting industry. This trend implies higher requirements for the product
innovation, solution provision and service capabilities of lighting enterprises.
(3) The industry has entered the mature stage and innovation is key to development
After the decade-plus of fast development, the LED industry, under the impact of both internal and external
environment, is experiencing a slow growth in overall market size. The technologies for all links of the industry
39
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
chain have gradually become mature. And the industry has entered the mature stage. Enterprises cannot maintain
their competitive advantages and increase their market share simply through the means of price and economy of
scale. They must keep developing new application and new products through innovation so as to expand the
market. The scaling-up and commercialization of new technologies will drive the LED industry to a new stage of
development.
(II) The Company's strategies for future development
The Company will take technology and services as two top-priority fronts, focus on brand and value and center its
efforts on upgrading to medium- to high-end smart manufacturing, transitioning to a provider of products and
integrated solutions and transcending to "smart, healthy, green and human-oriented lighting." The Company will
step up efforts on the application end, further exploit the Internet-of-Things (IoT) ecosphere and niche markets,
develop more new application scenarios and products, continuously improve our core competitiveness and
accelerate the new round of development.
(III) Work plan for 2021
1. To continue to focus on technological innovation to improve the market competitiveness of products
In 2021, the Company will continue to increase financial investment in R&D, optimize the R&D functions,
improve our capability for product planning, increase investment in core smart technologies, accelerate the R&D
of new products with distinguishing functions and features, launch more products with high added-value and high
gross profit and drive the commercialization of various application scenarios and solutions. The Company will
partner with research institutions and universities more closely, promote the application of research results and
build a product system with unique features.
2. To step up market development and increase brand influence
(1) To optimize the industry layout
The Company will accelerate the development of smart lighting, healthy lighting, 5G smart street lamp and other
niche markets, optimize our product structure, grab market share in growing segments and increase the proportion
of the sales revenue from products with high added-value.
(2) To expand the e-commerce business
The Company will expand e-commerce business by enriching and optimizing e-commerce products, developing
and launching more products that sell well, lead the market and are suitable for online selling, improving market
response speed. Eventually, the e-commerce business will grow rapidly.
40
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(3) To strengthen the development of large customers
The Company will strengthen market investigation to obtain more effective, more accurate data about the market
and customer demand. On this basis, we will develop and launch more that differential, customized and
high-cost-performance products and solutions, provider better services to our customers and exploit the full
potential of large customers to expand the scope of business cooperation. We will continue to develop large
customers such as large domestic real estate developers and the procurement centers of large chain shops, thereby
expanding sales channel and increasing sales volume.
(4) To further exploit the international markets
The Company will step up efforts to exploit the international markets, develop more large OEM customers and
overseas agents with capabilities, channels and self-owned brands, strengthen the construction of overseas local
market channels and the development of terminal networks, continue to increase the overseas influence of the FSL
brand and create new points of export growth.
3. To optimize internal management to invigorate the Company
(1) To improve the response speed of the supply chain
The Company will improve the capability of our R&D, Procurement, Production and Sales Departments for
high-efficiency coordination and high-speed response, shorten product delivery lead time and improve customer
satisfaction and operational efficiency.
(2) To establish a cost control mechanism with competitive advantages
The Company will reduce the manufacturing cost through means such as improving manufacturing processes,
optimizing production modules, upgrading with automation technologies and integrating supply chain resources to
reduce procurement cost.
(3) To optimize the talent structure
An adequate allocation of various professionals, especially professional teams or high-end talents in sales and
R&D, will be maintained in alignment with the Company's development. In addition, the Company will continue
to implement the strategy of all-round development of human resources and optimize our talent echelon structure.
(IV) Potential risks
1. Risks associated with the uncertainties of the macroeconomy
At present, the global Covid-19 pandemic has not been effectively controlled, global economic growth is still
41
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
under great pressure and uncertainty, which may have an adverse impact on the development of the industry.
2. Risk of intensified market competition
The lighting industry is an industry with global competition. In particular, domestic enterprises in the downstream
lighting application sector face not only the competition from international lighting companies with well-known
brands but also the competition from home appliances enterprises, electronics enterprises and IC enterprises in the
midstream and upstream of the LED industry as these enterprises keep expanding into the lighting application
sector. The Company will be facing a market environment with increasingly fierce competition.
3. Risk of fluctuations in raw material prices
The Company's raw material costs account for a high proportion of the operating costs. Because the price of some
raw materials is significantly related to uncontrollable factors such as the global market conditions and national
macro policies, the raw material price fluctuations pose a risk to the Company.
4. Risk of exchange rate fluctuation
The fluctuating global economy, the escalating tensions in local hotspots and changes in the monetary policies of
various countries may lead to exchange rate fluctuations. Export accounts for a large proportion of the Company's
revenue. A significant appreciation of the RMB will negatively impact the company's performance.
X Communications with the Investment Community such as Researches, Inquiries and
Interviews
1. During the Reporting Period
√ Applicable □ Not applicable
Main
Type of discussions and Index to main
Way of Communication
Date Place communication materials information
communication party
party provided by the communicated
Company
Discussions
were about the
production and
Investor
One-on-one China Great operation of the
24 July 2020 The Company Institution Relations-EasyIR-
meeting Wall Securities Company, with
www.cninfo.com.cn
no materials
provided by the
Company.
42
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Times of visit 1
Number of visiting institutions 1
Number of visiting individuals 78
Number of other visitors 0
Tip-offs or leakages of substantial
supposedly-confidential information during None
communications
43
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part V Significant Events
I Profit Distributions to Ordinary Shareholders (in the Form of Cash and/or Stock)
How the profit distribution policy, especially the cash dividend policy, for ordinary shareholders was formulated,
executed or revised in the Reporting Period:
√ Applicable □ Not applicable
According to the CSRC Notice on Further Implementing Matters Related to Cash Dividend Distribution of Listed
Companies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Notice on Further Implementing
Regulations Related to Dividend Distribution of Listed Companies (Guang-Dong-Zheng-Jian [2012] No. 91), in
order to further standardize the dividend mechanism, promote a scientific, sustained and stable dividend
mechanism and protect legal rights and interests of investors, in 2012, the Company convened a general meeting
to revise the dividend-related contents in its Articles of Association and specify the dividend conditions, the
lowest dividend ratio, the decision-making procedure, etc.. Meanwhile, it formulated the Management Rules for
Profit Distribution and the Return for Shareholder Plan for the Coming Three Years (2018-2020), specifying the
arrangements and forms of dividends, the cash dividend planning and the distribution intervals, which further
improved the decision-making and supervision procedures for dividend distribution. According to the Company’s
Articles of Association, the profit distributed in cash shall not be less than 30% of the distributable profit achieved
in the year.
Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
Non-controlling interests are able to fully express their opinion
Yes
and desire and their legal rights and interests are fully protected
In case of adjusting or changing the cash dividend policy, the
conditions and procedures involved are in compliance with Yes
applicable regulations and transparent
44
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
The profit distributions to ordinary shareholders, either in the form of cash or stock, in the past three years
(including the Reporting Period) are summarized as follows:
For 2018, based on the total 1,399,346,154 shares of the Company as at 31 December 2018, a cash dividend of
RMB1.56 (tax included and dividends for B-share holders to be paid in the Hong Kong dollars) will be distributed to
the A-share and B-share holders for every 10 shares they hold, with the total distributed cash dividends reaching
RMB 218,298,000.02.
For 2019, based on the total 1,399,346,154 shares of the Company as at 31 December 2019, a cash dividend of
RMB1.85 (tax included and dividends for B-share holders to be paid in the Hong Kong dollars) will be distributed to
the A-share and B-share holders for every 10 shares they hold, with the total distributed cash dividends reaching
RMB258,879,038.49.
For 2020, based on the share capital of the total share capital minus the shares in the share repurchase account at
the date of record, a cash dividend of RMB 1 (tax included and dividends for B-share holders to be paid in the Hong
Kong dollars) will be distributed to the A-share and B-share holders for every 10 shares they hold.
Cash dividend for ordinary shareholders in the past three years (including the Reporting Period):
Unit: RMB
Net profit
attributable to
ordinary Total cash
Cash shareholders Cash dividends dividends
A as % of B in other forms C as % of B D as % of B
Year dividends (tax of the listed (including
(%) (such as share (%) (%)
inclusive) (A) company in repurchase) (C) those in other
consolidated forms) (D)
statements for
the year (B)
2020 136,447,615.20 316,914,185.34 43.06% 0.00 0.00% 136,447,615.20 43.06%
2019 258,879,038.49 296,077,926.11 87.45% 0.00 0.00% 258,879,038.49 87.45%
2018 218,298,000.02 374,497,830.80 58.29% 0.00 0.00% 218,298,000.02 58.29%
Note: The 2020 cash dividend payout amount was calculated based on the number of shares of the total share
capital of 1,399,346,154 shares as at the end of 2020 minus the 34,870,002 shares in the share repurchase account
as at 31 March 2021. And the final payout amount will be calculated based on the number of shares of the total
share capital as at the date of record minus the shares in the share repurchase account as at the date of record.
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for the ordinary
shareholders despite the facts that the Company has made profits in the Reporting Period and the profits of the
45
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Company as the parent distributable to the ordinary shareholders are positive.
□ Applicable √ Not applicable
II Final Dividend Plan for the Reporting Period
√Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 1
Additional shares to be converted from capital
0
reserve for every 10 shares (share)
Total shares as the basis for the profit distribution Total share capital minus the shares in the share repurchase account at the date
proposal (share) of record
Cash dividends (RMB) (tax inclusive) 136,447,615.20
Cash dividends in other forms (such as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other
136,447,615.20
forms) (RMB)
Distributable profit (RMB) 1,591,884,733.49
Total cash dividends (including those in other
100%
forms) as % of total profit distribution
Cash dividend policy
Where the Company is at a mature stage of development and has plans for considerable spending, in profit distribution, cash
dividends shall reach at least 40% in the total profit to be distributed.
Details about the proposal for profit distribution and converting capital reserve into share capital
As audited by Zhongzheng Tiantong Certified Public Accountants LLP, the after-tax net profits of RMB327,255,953.87 of the
Company as the parent for 2020, plus the beginning retained profits of RMB1,523,507,818.11, minus the distributed profits of
RMB258,879,038.49 for 2019, equal the ending profits distributable to shareholders of RMB1,591,884,733.49 for 2020. The Board
of Directors has proposed to allocate profits for 2020 as follows: Based on the total share capital minus the shares in the share
repurchase account at the date of record, a cash dividend of RMB 1 (tax included and dividends for B-share holders to be paid in
the Hong Kong dollars) will be distributed to the A-share and B-share holders for every 10 shares they hold. The retained profits
will be carried forward into the next year. The profit allocation preplan can be effective upon review and approval of the
Shareholders’ General Meeting of the Company.
Note: The 2020 cash dividend payout amount was calculated based on the number of shares of the total share
capital of 1,399,346,154 shares as at the end of 2020 minus the 34,870,002 shares in the share repurchase account
as at 31 March 2021. And the final payout amount will be calculated based on the number of shares of the total
share capital as at the date of record minus the shares in the share repurchase account as at the date of record.
46
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
III Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller, Shareholders, Related Parties and Acquirers, as well
as the Company Itself and other Entities Fulfilled in the Reporting Period or Ongoing at the Period-end
√Applicable □ Not applicable
Date of
Type of Term of
Commitment Promisor Details of commitment commitment Fulfillment
commitment commitment
making
Electronics Group and its
acting-in-concert parties
Shenzhen Rising
Investment and Hong
Kong Rising Investment
have made a commitment
that they shall eliminate
About avoidance
Controlling the horizontal competition 3 December
of horizontal Six months Completed
shareholder between Foshan 2019
competition
NationStar
Optoelectronics Co., Ltd.
and the Company through
business integration or
other ways or
Commitments made arrangements before 4
in acquisition June 2020.
documents or Electronics Group and its
shareholding acting-in-concert parties
alteration Shenzhen Rising
documents Investment and Hong
Kong Rising Investment
have made more
commitments as follows
to avoid horizontal
About avoidance
Controlling competition with the 4 December Long-standi
of horizontal Ongoing
shareholder Company: 1. They shall 2015 ng
competition
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
47
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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.
48
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
About reduction advantage of their position
Controlling and regulation of as the controlling 4 December Long-standi
Ongoing
shareholder related-party shareholder and actual 2015 ng
transactions 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
49
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Company, and withdraw
from voting when a
related-party transaction
with them or their
Relevant Enterprises is
being voted on at a
general meeting or a
board meeting, and
execute the relevant
approval procedure and
information disclosure
duties pursuant to the
applicable laws,
regulations and regulatory
documents. Where the
aforesaid commitments
are broken and a loss is
thus caused for the
Company, its subsidiaries
or the Company’s other
shareholders, they shall be
obliged to compensate.
In order to ensure the
independence of the
Company in business,
personnel, asset,
organization and finance,
Electronics Group and its
acting-in-concert parties
Shenzhen Rising
Investment and Hong
Kong Rising Investment
Controlling About have made the following 4 December Long-standi
Ongoing
shareholder independence commitments: 1. They 2015 ng
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
50
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
51
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
receive remuneration from
the Company, not holding
any positions in them or
their other controlled
subsidiaries other than
director and supervisor.
(2) They promise the
Company’s absolute
independence from their
related parties in labor,
human resource and salary
management. And (3)
They promise to follow
the legal procedure in
their recommendation of
directors, supervisors and
senior management
personnel to the Company
and not to hire or dismiss
employees beyond the
Company’s Board of
Directors and General
Meeting. 3. They will
ensure the independence
and completeness of the
Company in asset: (1)
They promise that the
Company will have a
production system, a
auxiliary production
system and supporting
facilities for its operation;
legally have the
ownership or use rights of
the land, plants, machines,
trademarks, patents and
non-patented technology
in relation to its
production and operation;
and have independent
systems for the
procurement of raw
materials and the sale of
its products. (2) They
52
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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.
And (2) They promise that
the operational and
management organs
within the Company will
independently execute
their functions according
to laws, regulations and
the Company’s Articles of
Association. And 5. They
will ensure the
independence of the
Company in finance: (1)
They promise that the
Company will have an
independent financial
department and financial
53
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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.
The profits distributed by
the Company in cash
Other commitments
About cash every year shall not be Long-standi
made to minority The Company 27 May 2009 Ongoing
dividends less than 30% of the ng
interests
distributable profits it has
achieved in the year.
Executed on time or
Yes
not
Specific reasons for
failing to fulfill
commitments on N/A
time and plans for
next step
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period, explain why the forecast has been reached for the Reporting Period.
□Applicable √ Not applicable
54
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
IV Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
V Explanations Given by the Board of Directors, the Supervisory Board and the Independent
Directors (if any) Regarding the Independent Auditor's “Modified Opinion” on the Financial
Statements of the Reporting Period
□ Applicable √ Not applicable
VI YoY Changes to Accounting Policies, Estimates and Methods
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VII Retrospective Restatements due to Correction of Material Accounting Errors in the
Reporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII YoY Changes to the Scope of the Consolidated Financial Statements
√Applicable □ Not applicable
Foshan Haolaite Lighting Co., Ltd. ("Foshan Haolaite"), Hunan Keda New Energy Investment and Development
Co., Ltd. ("Hunan Keda") and Foshan Kelian New Energy Technology Co., Ltd. ("Foshan Kelian") are newly
included, and Foshan Chansheng Electronic Ballast Co., Ltd. ("Foshan Chansheng") is excluded, in the scope of
the consolidated financial statements of the Reporting Period.
Foshan Haolaite was incorporated by the Company and Foshan NationStar Optoelectronics Co., Ltd. ("Foshan
NationStar") in 2020, with a registered capital of RMB17,158,000 contributed by the Company and Foshan
NationStar and the corporate business license granted on 30 July 2020. The Company owns 51 percent of the
equity of Foshan Haolaite, which has been included in the scope of the consolidated financial statements of the
Company since its day of incorporation.
The 100 percent of the equity of Hunan Keda was transferred from Guangdong Huajian Enterprise group Co., Ltd.
("Guangdong Hujia") to the Company under an equity transfer agreement between the Company and Guangdong
55
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Huajian signed on 21 December 2020, whereby Hunan Keda became a wholly owned subsidiary of the Company.
Hunan Keda has been included in the scope of the consolidated financial statements of the Company since the day
the Company assumed actual control over Hunan Keda. Foshan Kelian is a wholly owned subsidiary of Hunan
Keda.
The company registration of Foshan Chansheng was canceled by the Notice on Approval of Registration
Cancellation issued by Foshan Municipal Administration of Market Regulation in December 2020, and the
company registration cancellation procedure has been completed. Foshan Chansheng has been excluded in the
scope of the consolidated financial statements since the day the company registration cancellation procedure was
completed.
IX Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor Zhongzheng Tiantong Certified Public Accountants LLP
The Company’s payment to the domestic independent auditor
130
(RMB’0,000)
How many consecutive years the domestic independent auditor
5
has provided audit service for the Company
Names of the certified public accountants from the domestic
Tong Quanyong and Chen Wenhong
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
from the domestic independent auditor have provided audit 5
service for the Company
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.
□ Yes √ No
Independent auditor, financial advisor or sponsor engaged for the audit of internal controls:
√ Applicable □ Not applicable
In the Reporting Period, the Company engaged Beijing Zhongzheng Tiantong Certified Public Accountants LLP
as its internal control auditor with the total audit fees of RMB420,000.
X Possibility of Delisting after Disclosure of this Report
□ Applicable √ Not applicable
56
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
XI Insolvency and Reorganization
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XII Major Legal Matters
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIII Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
√Applicable □ Not applicable
In the Reporting Period, the Company and its controlling shareholder and actual controller were not involved in
any unsatisfied court judgments, large-amount overdue liabilities or the like.
XV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XVI Major Related-Party Transactions
1. Continuing Related-Party Transactions
√Applicable □ Not applicable
As % of Obtaina
Approv Index
Relation Transact total Over ble
Total ed Method to
ship Type of Specific Pricing ion value of the market
Related value transacti of Disclos disclose
with the transacti transacti principl price all approve price for
party (RMB’0 on line settleme ure date d
Compan on on e (RMB’0 same-ty d line or same-ty
,000) (RMB’0 nt informa
y ,000) pe not pe
,000) tion
transacti transacti
57
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
ons ons
(RMB’0
,000)
Purchasi
ng Bank
Foshan products transfer
Under
NationSta and Purchas s or
same www.c
r receivin e of Market 5,426.8 5,426.8 bank 5,426.8 10 Apr.
actual 2.21% 20,000 Not ninfo.c
Optoelect g labor material price 4 4 accepta 4 2020
controll om.cn
ronics service s nce
er
Co., Ltd. from notes
related
party
Purchasi
Guangdo ng
Bank
ng products
Under transfer
Fenghua and Purchas
same s or www.c
Advanced receivin e of Market 10 Apr.
actual 881.00 881 0.36% 650 Yes bank 881.00 ninfo.c
Technolo g labor material price 2020
controll accepta om.cn
gy service s
er nce
Holding from
notes
Co., Ltd. related
party
Purchasi
Shareho ng
Bank
lder that products
Prosperity transfer
holds and Purchas
Lamps & s or www.c
over 5% receivin e of Market 10 Apr.
Compone 312.82 312.82 0.13% 1100 Not bank 312.82 ninfo.c
shares g labor material price 2020
nts accepta om.cn
of the service s
Limited nce
Compan from
notes
y related
party
Acting-i Purchasi
n-conce ng
Bank
Hangzhou rt party products
transfer
Times of a 5% and Purchas
s or www.c
Lighting greater receivin e of Market 10 Apr.
44.88 44.88 0.02% 200 Not bank 44.88 ninfo.c
and sharehol g labor material price 2020
accepta om.cn
Electrical der of service s
nce
Co., Ltd. the from
notes
Compan related
y party
58
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Acting-i Purchasi
n-conce ng
Bank
rt party products
transfer
Prosperity of a 5% and Purchas
s or www.c
Electrical greater receivin e of Market 10 Apr.
11.84 11.84 0.00% 100 Not bank 11.84 ninfo.c
(China) sharehol g labor material price 2020
accepta om.cn
Co., Ltd. der of service s
nce
the from
notes
Compan related
y party
Purchasi
ng
Guangdo Bank
products
ng Under transfer
and Purchas
Electronic same s or www.c
receivin e of Market 10 Apr.
Technolo actual 72.44 72.44 1.48% 100 Not bank 72.44 ninfo.c
g labor equipme price 2020
gy controll accepta om.cn
service nt
Research er nce
from
Institute notes
related
party
Purchasi
ng
Bank
Guangdo products
Under transfer
ng and
same Receivin s or
Zhongnan receivin Market 13,973. 13,973. 13,973.
actual g labor 60.72% bank N/A
Construct g labor price 41 41 41
controll service accepta
ion Co., service
er nce
Ltd. from
notes
related
party
Purchasi
Jiangmen ng
Bank
Dongjian products
Under transfer
g and
same receivin s or
Environm receivin Market
actual g labor 32.62 32.62 28.40% bank 32.62 N/A
ental g labor price
controll service accepta
Technolo service
er nce
gy Co, from
notes
Ltd. related
party
Foshan Under Purchasi receivin Market Bank
4.25 4.25 3.70% 4.25 N/A
Fulong same ng g labor price transfer
59
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Environm actual products service s or
ental controll and bank
Technolo er receivin accepta
gy Co., g labor nce
Ltd. service notes
from
related
party
Purchasi
ng
Shaoguan Bank
products
Green Under transfer
and
Resource same Receivin s or
receivin Market
Recycling actual g labor 3.52 3.52 3.06% bank 3.52 N/A
g labor price
Develop controll service accepta
service
ment Co., er nce
from
Ltd. notes
related
party
Purchasi
ng
Guangdo Bank
products
ng Under transfer
and
Electronic same Receivin s or
receivin Market
Technolo actual g labor 1.69 1.69 0.07% bank 1.69 N/A
g labor price
gy controll service accepta
service
Research er nce
from
Institute notes
related
party
Zhuhai
Doumen
District Purchasi
Yongxing ng
Bank
sheng products
Under transfer
Environm and
same Receivin s or
ental receivin Market
actual g labor 1.33 1.33 1.16% bank 1.33 N/A
Industrial g labor price
controll service accepta
Wastes service
er nce
Recycling from
notes
Compreh related
ensive party
Treatment
Co., Ltd.
Prosperity Shareho Selling Selling Market 2,358.1 2,358.1 0.63% 3,500 Not Bank 2,358.1 10 Apr. www.c
60
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Lamps & lder that products products price 9 9 transfer 9 2020 ninfo.c
Compone holds and s or om.cn
nts over 5% providin bank
Limited shares g labor accepta
of the service nce
Compan to notes
y related
party
Selling
Guangdo
products Bank
ng New
Under and transfer
Electronic
same providin s or
s Selling Market 1,325.7 1,325.7 1,325.7
actual g labor 0.35% bank N/A
Informati products price 7 7 7
controll service accepta
on
er to nce
Import&E
related notes
xport Ltd.
party
Selling
products Bank
Guangdo
Under and transfer
ng
same providin s or
Zhongnan Selling Market
actual g labor 247.88 247.88 0.07% bank 247.88 N/A
Construct products price
controll service accepta
ion Co.,
er to nce
Ltd.
related notes
party
Selling
products Bank
Guangdo
Under and transfer
ng Yixin
same providin s or
Changche Selling Market
actual g labor 200.11 200.11 0.05% bank 200.11 N/A
ng products price
controll service accepta
Construct
er to nce
ion Group
related notes
party
Selling
Guangdo Bank
products
ng Under transfer
and
Electronic same s or
providin Selling Market
Technolo actual 85.68 85.68 0.02% bank 85.68 N/A
g labor products price
gy controll accepta
service
Research er nce
to
Institute notes
related
61
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
party
Selling
Guangzho products Bank
u Huajian Under and transfer
Engineeri same providin s or
Selling Market
ng actual g labor 67.86 67.86 0.02% bank 67.86 N/A
products price
Construct controll service accepta
ion er to nce
Co.,Ltd. related notes
party
Selling
products Bank
Shenzhen Under and transfer
Zhongjin same providin s or
Selling Market
Lingnan actual g labor 50.81 50.81 0.01% bank 50.81 N/A
products price
Nonfemet controll service accepta
Co. Ltd. er to nce
related notes
party
Guangdo Selling
ng products Bank
Zhongjin Under and transfer
Lingnan same providin s or
Selling Market
Equipmen actual g labor 36.79 36.79 0.01% bank 36.79 N/A
products price
t controll service accepta
Technolo er to nce
gy Co., related notes
Ltd. party
Selling
products Bank
Guangdo and transfer
ng Rising Actual providin s or
Selling Market
Holdings controll g labor 5.74 5.74 0.00% bank 5.74 N/A
products price
Group er service accepta
Co., Ltd. to nce
related notes
party
Acting-i Selling Bank
Prosperity n-conce products transfer
www.c
Electrical rt party and Selling Market s or 10 Apr.
4.49 4.49 0.00% 100 Not 4.49 ninfo.c
(China) of a 5% providin products price bank 2020
om.cn
Co., Ltd. greater g labor accepta
sharehol service nce
62
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
der of to notes
the related
Compan party
y
Guangdo Selling
ng products Bank
Guangshe Under and transfer
ng same providin s or
Selling Market
Communi actual g labor 2.36 2.36 0.00% bank 2.36 N/A
products price
cation controll service accepta
Technolo er to nce
gy Co., related notes
Ltd. party
Guangdo Selling
ng products Bank
Electronic Under and transfer
s same providin s or
Selling Market
Informati actual g labor 0.80 0.8 0.00% bank 0.80 N/A
products price
on controll service accepta
Industry er to nce
Group related notes
Ltd. party
25,153.
Total -- -- -- 25,750 -- -- -- -- --
12
Large-amount sales return in detail N/A
In April 2020, the Company estimated the total value of its continuing transactions with
Give the actual situation in the related parties Foshan NationStar Optoelectronics Co., Ltd., Guangdong Fenghua Advanced
Reporting Period (if any) where an Technology Holding Co., Ltd., Prosperity Lamps & Components Limited, Hangzhou Times
estimate had been made for the total Lighting and Electrical Co., Ltd., Prosperity Electrical (China) Co., Ltd., and Guangdong
value of continuing related-party Electronic Technology Research Institute. Concerning the purchases from its related parties,
transactions by type to occur in the the actual amount in 2020 was RMB207.6664 million, accounting for 93.75% of the
Reporting Period estimate for 2020. As for the sales to its related parties, the actual amount in 2020 was
RMB43.8649 million, accounting for 121.85% of the estimate for 2020.
Reason for any significant difference
between the transaction price and the N/A
market reference price (if applicable)
Note: The related-party transaction with Guangdong Zhongnan Construction Co., Ltd. in the table above arose
from the Company's acquisition of the 100% interests of Hunan Keda New Energy Investment and Development
Co., Ltd. in 2020, which resulted in change in the scope of the consolidated financial statements.
63
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
√ Applicable □ Not applicable
Book Estimated
Content value of value of Transacti
Transacti
Related Related of related the the on gains
Related Pricing on price Settlemen Date of Disclosur
relationsh party party transferre transferre and losses
party policy (RMB’0, t method disclosure e index
ip name transactio d assets d assets (RMB’0,
000)
n (RMB’0, (RMB’0, 000)
000) 000)
Title of
announce
ment:
Announc
ement on
the
Acquisiti
on of 100
Percent of
the
Equity of
Hunan
The Keda
Company New
acquired Energy
Controlle 100 The Investme
Guangdo
d by the percent of estimated nt and
ng
same Equity the equity price was 3 Develop
Huajian
controllin acquisitio of a used as 7,299.89 31,162.85 31,162.84 Cash 0 December ment Co.,
Enterprise
g n wholly the basis 2020 Ltd. and
Group
sharehold owned of the
Co., Ltd.
er subsidiary pricing. Related-P
of the arty
related Transacti
party. ons: No.
of
announce
ment:
2020-060
;
published
on:
Cninfo
(http://w
ww.cninf
o.com.cn/
).
Reasons for considerable differences
between the transaction price and the book None
value or estimated value (if applicable)
Impact on the Company's operating results
None
and financial conditions
The actual performance during the
Reporting Period if the related-party
N/A
transaction is conditioned on the
performance.
64
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
3. Related Transactions Regarding Joint Investments in Third Parties
√ Applicable □ Not applicable
Registered
Total assets of Net assets of Net profits of
Name of capital of
Related Main business of investee investee investee
Co-investor investee investee
relationship investee enterprise enterprise enterprise enterprise
enterprise enterprise
(RMB’0,000) (RMB’0,000) (RMB’0,000)
(RMB’0,000)
R&D,
manufacturing and
sales of lighting
products, lighting
equipment,
lighting
accessories and
raw materials,
traffic lights,
luminaries,
decorative lights
and accessories,
Foshan Controlled by Foshan
and motor vehicle
NationStar the same Haolaite
accessories; 1,715.80 6,344.2 3,150.59 -120.91
Optoelectroni controlling Lighting Co.,
undertaking of
cs Co., Ltd. shareholder Ltd.
lighting
engineering
projects; lighting
engineering
technological
development,
consulting,
services, and
project investment;
import and export
of goods or
technologies
Progress (if any) of
significant projects under
None
construction of investee
enterprise
4. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Major Related-Party Transactions
√ Applicable □ Not applicable
1. On 21 June 2019, the Company held the 31st Meeting of the 8th Board of Directors, and the Proposal on Signing
the Financial Services Agreement with Guangdong Rising Finance Co., Ltd. was examined and approved at the
meeting. On the same day, the Company signed the Financial Services Agreement with Guangdong Rising
Finance Co., Ltd. (hereinafter referred to as “Rising Finance”), and Rising Finance would provide deposit and
settlement services for the Company for a term of one year. During the term of validity of the Agreement, the
65
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
daily deposit balance of the Company in Rising Finance Company shall not exceed RMB150 million.
2. On 16 October 2020, the Company held the Second Extraordinary General Meeting in 2020, and the Proposal
on Signing the Financial Services Agreement with Guangdong Rising Finance Co., Ltd. was examined and
approved at the meeting. On the same day, the Company signed the Financial Services Agreement with
Guangdong Rising Finance Co., Ltd. (hereinafter referred to as “Rising Finance”), and Rising Finance would
provide deposit and settlement services for the Company for a term of one year. During the term of validity of the
Agreement, the daily deposit balance of the Company in Rising Finance Company shall not exceed RMB300
million.
Index to the current announcements about the said related-party transactions disclosed:
Title of announcement Disclosure date Disclosure website
Announcement on Signing Financial Service
Agreement with Guangdong Rising Finance 22 June 2019 www.cninfo.com.cn
Co., Ltd.
Announcement on Signing Financial Service
Agreement with Guangdong Rising Finance 25 August 2020 www.cninfo.com.cn
Co., Ltd.
XVII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leases
□ Applicable √ Not applicable
No such cases in the Reporting Period.
66
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Major guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Overview of cash entrusted for wealth management during the Reporting Period
Unit: RMB'0,000
Unrecovered overdue
Type Funding source Amount Undue amount
amount
Bank’s wealth
Self-funded 25,000 40,000 0
management products
Others Self-funded 67,000 0 0
Total 92,000 40,000 0
High-risk wealth management transactions with a significant single amount, or with low security, low liquidity or
no principal protection:
√ Applicable □ Not applicable
Unit: RMB’0,000
Index
to
transa
Annua Allow Prescr
Type Actual Receip Plan ction
lized Expect ance ibed
of Source Deter gain/lo t/paym for summ
Type Begin Use of yield ed for proced
Truste wealth Princi of Endin minati ss in ent of more ary
of ning princi rate yield impair ure
e manag pal princi g date on of Report such transa and
trustee date pal for (if ment execut
ement pal yield ing gain/lo ction other
refere any) (if ed or
product Period ss or not infor
nce any) not
matio
n (if
any)
China Not The Repay
www.
Merch princip Comp 17 17 ment To be
Invest cninfo
ants Bank al-prot 10,000 any’s Sept. Sept. of 4.30% 428.82 123.7 receiv Yes Yes
ment .com.c
Bank ected own 2020 2021 princi ed
n
(Fosha with idle pal
67
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
n floatin funds with
branch g yield yield
) upon
maturi
ty
Industr Repay
ial ment
Not
Bank The of
princip
(sub-b Comp princi www.
al-prot 31 31 To be
ranch any’s Invest pal cninfo
Bank ected 10,000 Dec. Mar. 3.60% 88.77 0.99 receiv Yes Yes
of own ment with .com.c
with 2020 2021 ed
Baiyu idle yield n
floatin
n, funds upon
g yield
Guang maturi
zhou) ty
Repay
China ment
Not
Merch The of
princip
ants Comp princi www.
al-prot 30 31 To be
Bank any’s Invest pal cninfo
Bank ected 20,000 Dec. Mar. 3.60% 179.51 3.95 receiv Yes Yes
(Fosha own ment with .com.c
with 2020 2021 ed
n idle yield n
floatin
branch funds upon
g yield
) maturi
ty
Total 40,000 -- -- -- -- -- -- 697.10 128.64 -- -- -- --
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable √ Not applicable
(2) Entrusted Loans
□ Applicable √ Not applicable
No such cases in the Reporting Period.
4. Significant Contracts Arising in the Ordinary Course of Business
□ Applicable √ Not applicable
5. Other Significant Contracts
□ Applicable √ Not applicable
68
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
No such cases in the Reporting Period.
XVIII Corporate Social Responsibility (CSR)
1. Measures Taken to Fulfill CSR Commitment
We have always attached importance to the accomplishment of our social value. With “provide returns for
shareholders, provide a platform for employees, create value for customers and create prosperity for the society”
as our mission, we take on the social responsibilities to protect the interests of our creditors, employees, customers,
suppliers and community. We have been utilizing resources in a scientific, rational way, effectively protecting the
natural environment and safeguarding social safety so as to promote common, harmonious and sustainable
development of the Company and the society.
1. Protection of the rights and interests of our shareholders and creditors
We continuously improve our corporate governance structure, regulate our operation and enhance our
management on information disclosure and investor relations. We treat all our investors fairly and justly, ensure
their rights to know about, participate in and vote on the significant events of the Company, and safeguard the
legal rights and interests of all our shareholders, especially our minority shareholders.
2. Protection of the rights and interests of our employees
Considering employees the most valuable resource for our survival and development, we constantly improve our
employment system, improve the compensation packages for our employees and attach importance to talent
cultivation so as to provide opportunities and space for the sustainable development of our employees as well as
realize the common development of the employees and the Company. We also pay attention to the health of our
employees, attach importance to production safety and labor protection, and improve the working and living
conditions for our employees so as to formulate harmonious and stable labor relations.
3. Protection of the rights and interests of our customers and consumers
We have been upholding the “Customer First” principle in our provision of quality products and services to
customers. We operate honestly and disallow any unfair trade practice against commercial ethics, market rules and
the fair competition principle. We also improve our product quality and after-sales services and try to build a
win-win relationship with our customers.
4. Protection of the rights and interests of our suppliers
69
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
We respect and protect the legal rights and interests of our suppliers, carefully protect their secret and proprietary
information, encourage and push them to continuously improve the quality of their products and services through
creating an environment for open and fair competition among them so as to realize mutual benefits and mutual
development of the suppliers and the Company.
5. Production Safety, Environmental Protection and Sustainable Development
The Company sees production safety, environmental protection and energy conservation as an important part of
its strategy of sustainable development. It implements accountability systems in relation environmental protection
and production safety in strict accordance with the applicable laws and regulations. In addition, it is ISO9001-(a
quality management system), IATF16949-(a quality management system), ISO14001-(an environment
management system), ISO45001-(a management system for occupational health and safety) and ISO50001-(an
energy management system) certified. In 2018, upon the review and publication by the Ministry of Industry and
Information Technology, the Company was certified as one of the second batch of National Demonstration Entity
of Green Factory.
6. Public relations and welfare
We attach importance to the realization of our social value and see creating a prosperous society as a commitment
that we should take on, trying to boost the local economy through our own development. We have been granted by
the local government the title of “Foshan Over-100-Million Tax Payer” for many years due to our contributions in
boosting the harmonious development of the Company and the community. After the outbreak of the COVID-19
pandemic in China in early 2020, the company donated in a timely manner ceiling lights, ultraviolet disinfection
lights, switches and the like to the Huoshenshan Hospital in Wuhan City, the 4th People’s Hospital in Foshan City,
the Zhengzhou City-version of “Xiaotangshan Hospital” in Henan Province, and the newly infected ward of the
Hospital of Fuqing City, Fujian Province. The Company play its part as a corporate citizen with real actions.
2. Measures Taken for Targeted Poverty Alleviation
Measurement
Indicator Amount/Progress
unit
I. General condition —— ——
Of which: 1. Funds RMB’0,000 3
2. Discount on supplies RMB’0,000 0.5
3. Number of people out of poverty being helped to establish Person
70
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
archival cards
II. Itemized investment —— ——
8. Social poverty alleviation —— ——
Of which: 8.1 Input amount of cooperation of the eastern and western
RMB’0,000 3.5
poverty alleviation
8.2 Input amount of fixed-point poverty alleviation RMB’0,000
8.3 Input amount of public welfare fund for poverty
RMB’0,000
alleviation
Since 2018, The Company vigorously responds to the government’s call to participate in the poverty alleviation
undertaking., and signed the contract of social forces and pairing system with Luohong Jiagu Village in Kuyi
County, Zhaojue Town, Liangshan Prefecture, Sichuan Province. According to the contract, the Company has
donated industrial support funds every year for three consecutive years, and launched the activities including
“purchase instead of donation”, students assistance and love assistance, etc.., actively fulfilled the social
responsibility of targeted poverty alleviation.
3. Issues Related to Environmental Protection
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the
environmental protection authorities.
□ Yes √ No
No.
In strict accordance with the government’s requirements, the Company has been conscientiously carrying out
environment-related work, including establishing and improving various related systems, and continuously
increasing related expenditure. These environment improvement efforts have helped build a good image of the
Company in relation to environmental protection. Meanwhile, the Company’s environmental protecting facilities
have been running stably, with the discharge of waste gas and water in compliance with the relevant standards. No
pollution incidents have occurred.
In addition to the environmental protection authorities’ quarterly examination and supervision, the Company has
also entrusted, on a yearly basis, an independent institution to exam the Company’s waste gas treatment systems,
as well as waste water and noise discharges, so as to minimize environment risk. All the examinations and tests
have been documented and released to the employees on the environmental protection and safety bulletin boards
71
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
at every workshop. Employees at all levels, with a strong awareness of environment protection, have been
cooperating closely with each other to implement the policy of “Save Energy, Reduce Consumption, Lower
Pollution and Increase Efficiency”. In all, the Company’s environment risk is controllable and its environment
management keeps improving.
XIX Other Significant Events
√ Applicable □ Not applicable
On 18 December 2020, the Company called the third extraordinary general meeting of 2020, at which the Proposal
on the Repurchase of Part of the Company's Renminbi-Denominated Ordinary Shares (A-Shares) and Domestic
Listed Foreign Investment Shares (B-Shares) was examined and approved. For details, see the Announcement on
the Repurchase of Part of the Company's Renminbi-Denominated Ordinary Shares (A-Shares) and Domestic Listed
Foreign Investment Shares (B-Shares) published on the China Securities Journal, the Securities Times, the
Securities Daily, Ta Kung Pao and Cninfo (cninfo.com.cn). As of 31 December 2021, the Company had
repurchased a total of 31,070,300 A-Shares and 3,799,702 B-shares of the Company through centralized bidding.
The repurchased shares account for 2.49% of the Company's total share capital. The A-shares were repurchased at a
highest price of RMB6.70 per share and a lowest price of RMB6.03 per share, with a total cost of RMB 196.959
million (excluding transaction costs). The B shares were repurchased a highest price of HKD3.40 per share and a
lowest price of HKD3.14 per share, with a total cost of HKD 12.4382 million(excluding transaction costs).
XX Significant Events of Subsidiaries
□ Applicable √ Not applicable
72
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part VI Share Changes and Shareholder Information
I. Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares as
Shares as
dividend
dividend
Percentag New converted Percentag
Shares converted Other Subtotal Shares
e (%) issues from e (%)
from
capital
profit
reserves
13,653,05 13,169,19
1. Restricted shares 0.98% -483,855 -483,855 0.94%
1 6
1.2 Shares held by
1 0.00% 1 0.00%
state-owned legal persons
1.3 Shares held by other
4,725,418 0.34% -483,855 -483,855 4,241,563 0.30%
domestic investors
Among which: Shares held
3,753,972 0.27% 0 3,753,972 0.27%
by domestic legal persons
Shares held
971,446 0.07% -483,855 -483,855 487,591 0.03%
by domestic natural persons
1.4 Shares held by foreign
8,927,632 0.64% 0 8,927,632 0.64%
investors
Shares held by
8,927,632 0.64% 0 8,927,632 0.64%
foreign natural persons
1,385,693, 1,386,176
2. Unrestricted shares 99.02% 483,855 483,855 99.06%
103 ,958
2.1 RMB-denominated 1,072,554, 1,073,038
76.65% 483,855 483,855 76.68%
ordinary shares 652 ,507
2.2 Domestically listed 313,138,4 313,138,4
22.38% 0 22.38%
foreign shares 51 51
1,399,346, 1,399,346
3. Total shares 100.00% 0 100.00%
154 ,154
Reasons for share changes:
73
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
√ Applicable □ Not applicable
Unrestricted shares increased 483,855 shares since the shares held by directors and senior management of the
Company who left during the Reporting Period were freed from the lock-in-period.
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Progress on any share repurchases:
√ Applicable □ Not applicable
On 18 December 2020, the Company convened the third extraordinary general meeting of 2020, at which the
Proposal on the Repurchase of Part of the Company's Renminbi-Denominated Common Shares (A-Shares) and
Domestic Listed Foreign Investment Shares (B-Shares) was examined and approved. For details, see the
Announcement on the Repurchase of Part of the Company's Renminbi-Denominated Common Shares (A-Shares)
and Domestic Listed Foreign Investment Shares (B-Shares) published on the China Securities Journal, the
Securities Times, the Securities Daily, Ta Kung Pao and Cninfo (cninfo.com.cn) dated 24 December 2020. As of
31 December 2020, no transaction of repurchase of the Company's shares had been made.
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable √ Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the
Company’s ordinary shareholders and other financial indicators of the prior year and the prior accounting period,
respectively:
□ Applicable √ Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□ Applicable √ Not applicable
74
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Changes in Restricted Shares
□ Applicable √ Not applicable
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable √ Not applicable
2. Changes to Total Shares, Shareholder Structure and Asset and Liability Structures
□ Applicable √ Not applicable
3. Existing Staff-Held Shares
□ Applicable √ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
Number of preferred
Number of
ordinary shareholders with
preferred
Number of shareholders at resumed voting
shareholders with
ordinary 78,500 the month-end 73,406 0 rights at the 0
resumed voting
shareholders prior to the month-end prior
rights (if any) (see
disclosure of this to the disclosure
note 8)
Report of this Report (if
any) (see note 8)
5% or greater shareholders or top 10 shareholders
Increase/dec Shares in pledge or frozen
Shareholdi Total shares Restricted
Nature of rease in the Unrestricted
Name of shareholder ng held at the shares
shareholder Reporting shares held Status Shares
percentage period-end held
Period
Hongkong Wah
Foreign legal
Shing Holding 13.47% 188,496,430 0 0 188,496,430 In pledge 92,363,251
person
Company Limited
Prosperity Lamps & Foreign legal
10.50% 146,934,857 0 0 146,934,857
Components Limited person
Guangdong State-owned 8.77% 122,694,246 56,300,745 0 122,694,246 In pledge 32,532,815
75
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Electronics legal person
Information Industry
Group Ltd.
Shenzhen Rising
Investment State-owned
5.12% 71,696,136 0 0 71,696,136 In pledge 35,800,000
Development Co., legal person
Ltd.
Central Huijin Asset
State-owned
Management Co., 2.42% 33,878,900 0 0 33,878,900
legal person
Ltd.
Essence International
Foreign legal
Securities (Hong 2.36% 33,050,128 2,041,215 0 33,050,128
person
Kong) Co., Ltd.
Rising Investment
Foreign legal
Development 1.82% 25,482,252 0 0 25,482,252
person
Limited
DBS Vickers(Hong
Foreign legal
Kong) Ltd A/C 1.33% 18,637,655 -3,364,482 0 18,637,655
person
Clients
China Merchants
Foreign legal
Securities (Hong 1.00% 13,963,394 1,803,158 0 13,963,394
person
Kong) Co., Ltd
Foreign
Zhuang Jianyi 0.85% 11,903,509 0 8,927,632 2,975,877
natural person
Strategic investors or general
corporations becoming top-ten
Naught
shareholders due to placing of new
shares (if any) (see Note 3)
Among the top 10 shareholders, Hongkong Wah Shing Holding Company Limited, Shenzhen
Rising Investment Development Co., Ltd., Guangdong Electronics Information Industry Group
Ltd. and Rising Investment Development Limited are acting-in-concert parties; and Prosperity
Related or acting-in-concert parties
Lamps & Components Limited and Zhuang Jianyi are acting-in-concert parties. Apart from that,
among the shareholders above
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.
Above shareholders involved in
entrusting/being entrusted with
Naught
voting rights and giving up voting
rights
Top 10 unrestricted shareholders
Name of shareholder Unrestricted shares at the Period-end Type of shares
76
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Type Shares
Hongkong Wah Shing Holding RMB-denominate
188,496,430 188,496,430
Company Limited d ordinary stock
Prosperity Lamps & Components RMB-denominate
146,934,857 146,934,857
Limited d ordinary stock
Guangdong Electronics Information RMB-denominate
122,694,246 122,694,246
Industry Group Ltd. d ordinary stock
Shenzhen Rising Investment RMB-denominate
71,696,136 71,696,136
Development Co., Ltd. d ordinary stock
Central Huijin Asset Management RMB-denominate
33,878,900 33,878,900
Co., Ltd. d ordinary stock
Domestically
Essence International Securities
33,050,128 listed foreign 33,050,128
(Hong Kong) Co., Ltd.
stock
Domestically
Rising Investment Development
25,482,252 listed foreign 25,482,252
Limited
stock
Domestically
DBS Vickers(Hong Kong) Ltd A/C
18,637,655 listed foreign 18,637,655
Clients
stock
Domestically
China Merchants Securities (Hong
13,963,394 listed foreign 13,963,394
Kong) Co., Ltd
stock
Guangdong Rising Finance Holding RMB-denominate
11,434,762 11,434,762
Co., Ltd. d ordinary stock
Related or acting-in-concert parties Among the top 10 unrestricted ordinary shareholders, Hongkong Wah Shing Holding Company
among the top 10 unrestricted Limited, Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics
ordinary shareholders, as well as Information Industry Group Ltd., Guangdong Rising Finance Holding Co., Ltd. and Rising
between the top 10 unrestricted Investment Development Limited are acting-in-concert parties; Apart from that, it is unknown
ordinary shareholders and the top 10 whether there is among the top 10 shareholders any other related parties or acting-in-concert
ordinary shareholders parties as defined in the Administrative Measures for the Acquisition of Listed Companies.
Top 10 ordinary shareholders
involved in securities margin None
trading (if any) (see note 4)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
77
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Legal
Name of controlling Unified social credit
representative/person Date of establishment Principal activity
shareholder code
in charge
Development, production and
sale of electronics, IT products
and electrical appliances,
operation of electronic
information networks and
computers, electronic computer
technology service, and
equipment and venue rental
service; sale of electronic
computers and fittings, electronic
components, electron devices,
and electrical machinery and
Guangdong Electronics
equipment; wholesale of coal;
Information Industry Liu Shaoping 19 October 2000 91440000725458764N
energy performance contracting
Group Ltd.
service, development and
consulting service of
energy-saving technology, and
manufacture and installation of
energy-saving equipment;
parking lot operation (188
Yueken Road, Tianhe District,
Guangzhou, Guangdong
Province, P.R.China); import and
export of goods; and training of
professional and technical
personnel.
Equity and venture capital
investment (approval shall be
obtained for each specific
Shenzhen Rising investment project); industrial
Investment Wu Xiaohui 27 August 2003 91440300754255560K investment (approval shall be
Development Co., Ltd. obtained for each specific
investment project); trustee
service for asset management
(not including securities,
78
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
insurance, funds, financial
service, human resources
consulting service and other
restricted business); and
investment information
consulting service, economic
information consulting service,
investment management
planning, corporate identity
design (excluding restricted
business).
Guangdong Rising
Investment and asset
Finance Holding Co., Liu Zumian 14 November 2014 91440400315213166P
management
Ltd.
Rising Investment Investment and asset
Yao Shu 11 July 2001 764105
Development Limited management
At the end of the Reporting Period,
1. Guangdong Electronics Information Industry Group Ltd. held 79,753,050 shares in Foshan NationStar
Optoelectronics Co., Ltd., representing 12.90% of the total shares of Foshan NationStar Optoelectronics
Co., Ltd.
2. Shenzhen Rising Investment Development Co., Ltd. held shares in domestic and overseas listed
companies as follows:
(1) held 139,715,902 shares in Zhongjin Lingnan (000060), accounting for 3.91% of total shares of
Shareholdings of Zhongjin Lingnan
controlling shareholder (2) held 4,192,734 shares in Fenghua Advanced Technology (000636), accounting for 0.47% of total
in other listed shares of Fenghua Advanced Technology
companies at home or (3) held 1,302,027 shares in Dongjiang Environmental (002672), accounting for 0.15% of total shares of
abroad in reporting Dongjiang Environmental
period 3. Guangdong Rising Finance Holding Co., Ltd. held shares in domestic and overseas listed companies as
follows:
(1) held 33,597,756 shares in Dongjiang Environmental (002672), accounting for 3.82% of total shares of
Dongjiang Environmental
(2) held 78,547,925 shares in Zhongjin Lingnan (000060), accounting for 2.20% of total shares of
Zhongjin Lingnan
(3) held 5,791,924 shares in NationStar Optoelectronics (002449), accounting for 0.94% of total shares of
NationStar Optoelectronics
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
79
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: legal person
Legal
Date of Unified social credit
Name of actual controller representative/pers Principal activity
establishment code
on in charge
Asset management and operation,
equity management and operation,
investment operation, and management
and re-investment of investment
earnings; other business authorized by
the state-owned assets administration
of the Guangdong Province; contractor
service for overseas projects and
domestic projects calling for
Guangdong Rising Holdings 23 December international bids, contractor service
Liu Weidong 91440000719283849E
Group Co., Ltd. 1999 for survey, consulting, design and
supervision of the aforesaid overseas
projects, export of equipment and
materials for the aforesaid overseas
projects, and dispatch of contract
workers for the aforesaid overseas
projects; property rental service; and
exploitation, sale and deep processing
of rare earth (operated by the branches
with the relevant licenses).
At the end of the Reporting Period, Guangdong Rising Holdings Group Co., Ltd. directly or indirectly
held the following stakes in other listed companies at home or abroad:
Shareholdings of the actual 1. a 42.87% stake of 129,372,517 shares in Rising Nonferrous (stock code: 600259);
controller in other listed 2. a 34.48% stake of 1,230,807,848 shares in Zhongjin Lingnan Nonfemet (stock code: 000060);
companies at home or 3. a 20.50% stake of 183,495,085 shares in Fenghua Advanced (stock code: 000636);
abroad in this Reporting 4. a 21.32% stake of 131,804,995 shares in NationStar Optoelectronics (stock code: 002449);
Period 5. a 25.72% stake of 226,147,494 A shares and H shares in Dongjiang Environment (stock code:
002672);
6. a 6.94% stake of 5,614,082,653 shares in China Telecom (stock code: 00728. HK).
Change of the actual controller during the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
80
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Ownership and control relations between the actual controller and the Company:
State-owned Assets Supervision and Administration Commission of the People`s
Government of Guangdong Province
100%
Guangdong Rising Assets Management Co.,Ltd.
100% 100% 100%
Guangdong Rising Finance Rising Investment Guangdong Electronics
Holding Co.,Ltd. Development Limited Information industry Group Ltd.
89.71% 8.768% 100%
0.817%
Hongkong Wah Shing
Shenzhen Rising Investment 1.821%
Holding Company Limited
Development Co.,Ltd.
5.124% 13.470%
Foshan Electrical and Lighting Co.,Ltd.
Indicate by tick mark whether the actual controller controls the Company via trust or other ways of asset
management.
□ Applicable √ Not applicable
4. Other 10% or Greater Corporate Shareholders
√ Applicable □ Not applicable
Legal representative / Date of
Name of corporate shareholder Registered capital Business scope
company principal establishment
Import and export of
electronics, electric lighting
products, lamps, electric
Prosperity Lamps & Components
Zhuang Jianyi 28 April 1978 HKD2 million lighting equipment, etc., and
Limited
design, installation and
after-sales service of
lighting solutions
81
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
5. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder, Actual Controller,
Reorganizer and Other Commitment Makers
□ Applicable √ Not applicable
82
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
83
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part VIII Convertible Corporate Bonds
□ Applicable √ Not applicable
No convertible corporate bonds in the Reporting Period.
84
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part IX Directors, Supervisors, Senior Management and Staff
I Change in Shareholdings of Directors, Supervisors and Senior Management
Beginnin Increase Decrease
Other Ending
g in the in the
Office Incumben Start of End of increase/d sharehold
Name Gender Age sharehold Reporting Reporting
title t/Former tenure tenure ecrease ing
ing Period Period
(share) (share)
(share) (share) (share)
Wu Board Incumben 24 August 23 August
Male 50 0 0 0 0 0
Shenghui Chairman t 2020 2023
Vice 23 August
Zhuang Incumben 24 August 11,903,50 11,903,50
Board Male 69 2023 0 0 0
Jianyi t 2020 9 9
Chairman
Director Incumben 24 August 23 August
Lei Zihe Male 53 0 0 0 0 0
& GM t 2020 2023
Zhang Incumben 24 August 23 August
Director Male 50 0 0 0 0 0
Xianfeng t 2020 2023
Incumben 24 August 23 August
Cheng Ke Director Male 46 11,550 0 0 0 11,550
t 2020 2023
Huang Incumben 24 August 23 August
Director Male 51 0 0 0 0 0
Zhiyong t 2020 2023
Independ 23 August
Zhang Incumben 24 August
ent Female 71 2023 0 0 0 0 0
Nan t 2020
Director
Independ 23 August
Incumben 24 August
Lu Rui ent Male 45 2023 0 0 0 0 0
t 2020
Director
Independ 23 August
Dou Incumben 24 August
ent Male 61 2023 0 0 0 0 0
Linping t 2020
Director
Chairman 23 August
of the 2023
Li Superviso Incumben 24 August
Male 57 0 0 0 0 0
Huashan ry t 2020
Committe
e
Superviso Incumben 24 August 23 August
Li Yizhi Male 33 0 0 0 0 0
r t 2020 2023
85
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Zhuang Superviso Incumben 24 August 23 August
Male 35 0 0 0 0 0
Junjie r t 2020 2023
Ye 23 August
Superviso Incumben 24 August
Zhenghon Male 47 2023 77,561 0 0 0 77,561
r t 2020
g
Superviso Incumben 24 August 23 August
Lin Qing Male 51 22,583 0 0 0 22,583
r t 2020 2023
Zhang Executive Incumben 24 August 23 August
Male 43 73,052 0 0 0 73,052
Xuequan Vice GM t 2020 2023
Tang Incumben 24 August 23 August
CFO Female 50 75,940 0 0 0 75,940
Qionglan t 2020 2023
Incumben 24 August 23 August
Wei Bin Vice GM Male 51 105,226 0 0 0 105,226
t 2020 2023
Jiao Incumben 24 August 23 August
Vice GM Male 48 90,399 0 0 0 90,399
Zhigang t 2020 2023
Incumben 24 August 23 August
Chen Yu Vice GM Male 48 66,066 0 0 0 66,066
t 2020 2023
Zhang Incumben 24 August 23 August
Vice GM Male 46 77,596 0 0 0 77,596
Yong t 2020 2023
Xu Incumben 24 August 23 August
Vice GM Male 50 37,270 0 0 0 37,270
Xiaoping t 2020 2023
25
Board 24 April
He Yong Former Male 60 December 0 0 0 0 0
Chairman 2020
2015
25
Liu Director 24 April
Former Male 58 December 645,140 0 0 0 645,140
Xingming & GM 2020
2015
25
24 August
Qi Siyin Director Former Male 40 December 0 0 0 0 0
2020
2015
25
Liang Superviso 24 August
Former Female 46 December 0 0 0 0 0
Yueyi r 2020
2015
Independ 25
24 August
Lyu Wei ent Former Male 56 December 0 0 0 0 0
2020
Director 2015
13,185,89 13,185,89
Total -- -- -- -- -- -- 0 0 0
2 2
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
II Change of Directors, Supervisors and Senior Management
√Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Elected as a director at a general meeting and as
Wu Shenghui Board Chairman Elected 24 August 2020 the Chairman of the Board by the Board of
Directors.
Elected as director of the Company by
Lei Zihe Director & GM Elected 24 August 2020 shareholders’ meeting and appointed as GM of the
Company by the Board
Elected as director of the Company by
Zhang Xianfeng Director Elected 24 August 2020
shareholders’ meeting
Independent Elected as independent director of the Company by
Dou Linping Elected 24 August 2020
Director shareholders’ meeting
Elected as supervisor of the Company by
Li Yizhi Supervisor Elected 24 August 2020
shareholders’ meeting
He Yong Board Chairman Left 24 April 2020 Job turnover
Liu Xingming Director & GM Left 24 April 2020 Resign for personal reason
Independent
Lyu Wei Left 24 August 2020 Resign for personal reason
Director
Left for
Qi Siyin Director expiration of 24 August 2020 Left for expiration of appointment
appointment
Left for
Liang Yueyi Supervisor expiration of 24 August 2020 Left for expiration of appointment
appointment
III Biographical Information
Professional backgrounds, major work experience and current duties in the Company of the incumbent directors,
supervisors and senior management:
1. Working Experience of the Directors
Mr. Wu Shenghui: Han nationality, was born in July 1970. He is a member of the CPC and has no right of
permanent residence in a foreign country. He finished a part-time postgraduate program. Previously, he has served
as Senior Staff Member and then Principal Staff Member of Guuangdong Provincial Commission for Discipline
Inspection, Assistant Manager and then Manager of the Human Resources Department and then Manager of the
Department of Party and Mass Work and Personnel of Guangdong Rising Holdings Group Co., Ltd., and CPC
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Committee Secretary, then Full-Time Deputy Secretary and then Director of Shenzhen Zhongjin Lingnan
Nonfemet Company Limited. He became CPC Committee Member and Secretary of the Company in April 2020
and became President of the Board of Directors of the Company in May 2020.
Mr. Zhuang Jianyi: born in 1951, with a bachelor’s degree and MBA. He now acts as the Chairman of Hong
Kong Youchang Lighting Equipment, and has been engaged in the electric light source equipment production as
well as the trading business for about 40 years. From 1995 to 2010, he acted as the Directors, the Vice Chairman
and the Chairman of the Company. And he serves as a vice chairman of the Company since December 2015.
Mr. Lei Zihe: Han nationality, was born in August 1967. He is a member of the CPC and has no right of
permanent residence in a foreign country. He finished a postgraduate program and bears a professional title of
Senior Engineer. Previously, he has served as Assistant Manager of the Quality Management Department, then
Manager of the Technical Department, then Director of the No. 1 Device Factory, and then Manager of the Second
Marketing Department of Foshan Optoelectronic Devices Company, Assistant to the General Manager and then
Secretary of the Board of Directors of Foshan NationStar Optoelectronic Technology Co., Ltd., CPC Committee
Member, then Vice General Manager and General Manager of the RGB Device Division, then Director, and then
Executive General Manager of Foshan NationStar Optoelectronics Co., Ltd., and President of the Board of
Directors of Foshan NationStar Semiconductor Technology Co., Ltd.. He became CPC Committee Member and
Deputy Secretary of the Company in April 2020 and became Director and General Manager of the Company in
May 2020.
Mr. Zhang Xianfeng: Han nationality, was born in July 1970. He is a member of the CPC and has no right of
permanent residence in a foreign country. He finished a MBA program at Renmin University of China and bears
professional titles of Senior Political Mentor and Economist. Previously, he has served as Assistant Departmental
Manager and then Departmental Manager of China Guangdong International Economic and Technological
Cooperation (Group) Company, Assistant Director and then Director of the General Office of Guangdong
Xinguang International Group Co., Ltd., Assistant Manager of the Human Resources Department, then Assistant
Manager of the Department of Party and Mass Work and Personnel, then Assistant Director of the CPC
Committee's General Office, and then Manager of the Department of Party and Mass Work of Guangdong Rising
Holdings Group Co., Ltd.. He became CPC Committee Member and Deputy Secretary of the Company in June
2020, became Chairman of the Labor Union of the Company in July 2020, and became Director of the Company
in August 2020.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Mr. Cheng Ke: Han nationality, born in February 1974, a member of the Communist Party of China and an
auditor with the bachelor’s degree. He once acted as the Vice-Minister and the Minister of the Financing Plan
Department and Vice Minister of Audit Department in Guangdong Rising Holdings Group Co., Ltd., Vice GM of
Hubei Ashennan Expressway Development Co., Ltd., the Executive Deputy GM of Hubei Gdrising Han-E
Expressway Co., Ltd. and Hubei Han-Cai Expressway Co., Ltd., the Director of Guangdong Rising Finance Co.,
Ltd and Rising Investment Development Limited. And now acts as the Full-time Director accredited to the
Company by Capital Operation Department of Guangdong Rising Holdings Group Co., Ltd., Director of
Guangdong Fenghua Advanced Technology Holding Co., Ltd and Foshan NationStar Optoelectronics Co., Ltd. He
serves as a Director of the Company since December 2015.
Mr. Huang Zhiyong: Han nationality, born in August 1969, a member of the Communist Party of China and an
engineer. He graduated from Xidian University with a bachelor’s degree of Electronic Devices Structures. He
once acted as the Vice GM of Shenzhen Primatronix (Nanho) Electronics Ltd., the Minister of Enterprise
Development Department, the GM Assistant and Vice GM in Guangdong Electronics Information Industry Group
Ltd. He now acts as a member of CPC, Deputy Secretary of CPC and Chairman of Labor Union in Guangdong
Electronics Information Industry Group Ltd. And he serves as a Director of the Company since December 2015.
Ms. Zhang Nan: Han nationality, born in February 1949, a member of the Communist Party of China and a
senior economist. She graduated from Chinese Academy of Social Sciences with a master degree of economic law.
After joining the workforce, she worked at Sinopec Yanshan Petro-Chemical Industry Corporation and then the
former Beijing Municipal Office of the Electronics Industry. In 1992, she was transferred to the former State
Economic and Trade Commission (SETC) and worked at the Research Laboratory, then the Regulations Bureau,
and then the Economic Cadre Training Center with a rank of Division Head, then Deputy Bureau Director, and
then Bureau Director. Later, she was transferred to the State-owned Assets Supervision and Administration
Commission of the State Council and served as bureau-level full-time Supervisor. She retired in March 2009. She
used to be an Independent Director of CSCL and Guandgong Rising Nonferrous Metals Co., Ltd. after she retired.
And she serves as an independent director of the Company since December 2015.
Mr. Lu Rui: Chinese Han Nationality, no permanent residency abroad, born in January 1975. He graduated in
2003 from the Management Accounting of Sun Yat-Sen University with a master’s degree of Management; and in
2006, he graduated from the Management Accounting of Sun Yat-Sen University with a doctor’s degree of
Management. He once acted as the Teaching Assistant and the Lecturer of the Financial Accounting Department
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
of Guangzhou Finance & Trade Management Institute; the Lecturer and associate professor of the Finance and
Taxation Department of Lingnan College of Sun Yat-Sen University; and the associate professor of Finance of the
Lingnan College of Sun Yat-Sen University. And he now acts as a profession of Finance and doctorial tutor at the
Lingnan College and director of Accounting and Capital Operation Research Center in Sun Yat-Sen University.
His other academic and social posts mainly include: the member of Expert Committee of China Association for
Public Companies, a national leading accounting professional recognized by the Ministry of Finance, the member
of All-China Financial Youth Federation, the member of the senior member of Accounting Society of China, the
member of Accounting Society of America; the Independent Director of Guangzhou Goaland Energy
Conservation Tech Co., Ltd., Shenzhen Kingsion Technology Co, Ltd., Bank of Guangzhou Co., Ltd., Huabang
Construction Investment Group and PSBC Consumer Finance Co., Ltd. And he serves as an independent director
of the Company since December 2015.
Mr. Dou Linping: Han nationality, was born in August 1959. He is of Chinese nationality and has no right of
permanent residence in a foreign country. He received a bachelor's degree and bears a professional title of Senior
Engineer. Previously, he has served as Director of the Office of Design Standards and then Vice Director of
Beijing Luminaries Research Institution, Deputy Secretary-General and Managing Director of China Association
of Lighting Industry, and Managing Director and Secretary-General of China Illuminating Engineering Society. At
present, he serves as Vice Director-General of China Solid State Lighting Alliance and Independent Director of
Hengdian Group TOSPO Lighting Co., Ltd.. He serves as an independent director of the Company since August
2020.
2. Working Experience of the Supervisors
Mr. Li Huashan: Male, a member of the Communist Party of China, Chinese Han Nationality, born in September
1963, an engineer graduated from Air Force Telecommunications Engineering Academy with a bachelor degree.
He once acted as the wireless engineer and the director in the Communication Repair Institute of Air Force Unit
86336, the staff officer of Air Command Communication Agency of Guangzhou Military Area, assistant to office
director, head of Administration and Security Division, vice minister of Administration and Security Department,
and vice minister of Operation Department in Guangdong Rising Holdings Group Co., Ltd., director, deputy Party
secretary, secretary of Committee for Discipline Inspection in Guangdong Zhongren Group Co., Ltd., director,
deputy Party secretary, secretary of Committee for Discipline Inspection, vice GM in Guangdong Rising
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Investment Group Co., Ltd., Party secretary, deputy chairman of the board in Guangdong Huihua Group Co., Ltd.,
director, deputy Party secretary, secretary of Committee for Discipline Inspection, chairman of the labor union in
Guangdong Rising Real Estate Group Co., Ltd. He serves as the member of the Party Committee, secretary of
Committee for Discipline Inspection of the Company since December 2018 and the chairman of the Supervisory
Committee of the Company since April 2019.
Mr. Li Yizhi: Han nationality, was born in March 1987. He is a member of the CPC. He received a bachelor's
degree and is an Association of Chartered Certified Accountants (ACCA) certified accountant. Previously, he has
worked at the Guangzhou Office of WUYIGE Certified Public Accountants LLP (special general partnership) as
an Audit Assistant, at the Guandong Office of Pan-China Certified Public Accountants LLP (special general
partnership) as a Project Manager, at the Shenzhen Office of PricewaterhouseCoopers Zhong Tian LLP (special
general partnership) as an auditor, and at the Guangdong Office of China Central Public Accounting Firm (special
general partnership) as a Project Manager. At present, he serves as Supervisor of the Finance Department
(Settlement Center) of Guangdong Rising Holdings Group Co., Ltd.. He serves as a supervisor of the Company
since August 2020.
Mr. Zhuang Junjie: Born in September 1985, a Hong Kong permanent resident. He graduated with a bachelor’s
degree and once acted as the Consultant Manager of Accenture Software and now acts as the Director of Hong
Kong Prosperity Lighting Equipment Co., Ltd. And he serves as a supervisor of the Company since December
2015.
Mr. Ye Zhenghong: Born in June 1973, a member of the Communist Party of China with a college degree. He
joined the Company from July 1995; worked in the Machine Repair Shop from July 1995 to June 1997; worked in
the Mechanical Power Department from July 1997 to January 2001; acted as Equipment Management Director in
T8 Fluorescent Lamp Factory from February 2001 to January 2005; acted as Director of Machine Repair Workshop
from May 2005 to January 2007; acted as Chief Officer of Machinery Dynamic Department from May 2006 to
December 2007; and acted as factory director of T8 Fluorescent Lamp Factory from January 2008 to February 2016;
and acted as Chief Officer of Production Department from March 2016 to March 2019; and acted as the director of
E-Commerce Business Department from April 2019 to June 2020; and acted as the vice GM of FSL Zhida Electric
Technology Co., Ltd. from November 2016 to February 2020, and acted as the GM of FSL Zhida Electric
Technology Co., Ltd. since March 2020 ; the Chairman of the 5th Supervisory Committee and the Employee
Supervisor of the 6th, 7th, 8th and 9th Supervisory Committee.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Mr. Lin Qing: born in September 1969, member of the Communist Party of China, undergraduate degree, electric
light source engineer; has been working in the company since August 1991; worked as mercury lamp workshop
technician and workshop director from June 1996 to February 2002; as the workshop director and factory director of
the fluorescent lamp factory from March 2002 to September 2009; as the director of Technology Department from
October 2009 to September 2020 ; as the Technical Director of the R&D and Technology Department since October
2020; in July 2015, elected as a discipline committee member of the company’s CPC committee. And he serves as
an Employee Supervisor of the Company since September 2016.
3. Working experience of the Senior Management Staff
Mr. Lei Zihe: Han nationality, was born in August 1967. He is a member of the CPC and has no right of
permanent residence in a foreign country. He finished a postgraduate program and bears a professional title of
Senior Engineer. Previously, he has served as Assistant Manager of the Quality Management Department, then
Manager of the Technical Department, then Director of the No. 1 Device Factory, and then Manager of the
Second Marketing Department of Foshan Optoelectronic Devices Company, Assistant to the General Manager
and then Secretary of the Board of Directors of Foshan NationStar Optoelectronic Technology Co., Ltd., CPC
Committee Member, then Vice General Manager and General Manager of the RGB Device Division, then
Director, and then Executive General Manager of Foshan NationStar Optoelectronics Co., Ltd., and President of
the Board of Directors of Foshan NationStar Semiconductor Technology Co., Ltd.. He became CPC Committee
Member and Deputy Secretary of the Company in April 2020 and became Director and General Manager of the
Company in May 2020.
Mr. Zhang Xuequan: Born in December 1977, a member of the Communist Party of China, MBA of Lingnan
College of Sun Yat-Sen University. He joined the Company in 1996. He worked in the former Iodine-tungsten
Lamp Workshop from October to December 1996; worked in the Technology Department and then the Quality
Control Department from January 1997 to August 2002; acted as the Workshop Manager of Lamp Workshop from
September 2002 to May 2008; acted as the Department Director of the Business Management Department of the
Company from June 2008 to August 2016. He has concurrently acted as the Office Director from February 2016
to December 2018. He has been the Party Branch Secretary for the Administrative Office of the Company from
July 2010 to June 2017, and a member of the party committee of the Company since July 2015. He was a
supervisor of the Company from May 2013 to August 2016 and has been a vice GM of the Company since August
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2016; Act as the Deputy General Manager of the Company since March 2020.
Ms. Tang Qionglan: born in March 1970, member of the Communist Party of China, bachelor degree, China
Certified Public Accountant, served as audit manager of BDO China Shu Lun Pan Certified Public Accountants
LLP Foshan Branch; as Deputy Manager of the Finance Department, Manager, Chief Financial Officer, Deputy
General Manager and Chief Financial Officer of Foshan NationStar Optoelectronics Co., Ltd.. and serves as the
Chief Financial Officer of the Company since January 2016.
Mr. Wei Bin: Born in May 1969, a member of the Communist Party of China and a Senior engineer of electronic
engineering technology with a Master’s degree. He joined in the Company in 1991, and responsible for the product
development of the graduate school of the Company from March 1992 to December 1996, acted as Workshop
Manager of Energy Saving Lamp Workshop from January 1997 to December 2004, acted as Workshop Manager of
HID Workshop from January to December 2005, acted as Workshop Manager of T5 Workshop from January 2006
to November 2008, acted as the Department Director of the Technology Department from November 2008 to
August 2009 and acted as Vice GM of the Company from September 2009.
Mr. Jiao Zhigang: Born in May 1972, a member of the Communist Party of China with a bachelor’s degree. He
entered the Company in 1994. He acted as Warehouse Director of the Company from August 1995 to September
2013, acted as Department Director of Human Resources Department from May 2010 to September 2013; acted as
Supervisor from March 2007 to September 2013, and as Chairman of the Supervisory of the Company from May
2010 to September 2013. He acted as Vice GM of the Company in September 2013.
Mr. Chen Yu: Born in December 1972, a member of the Communist Party of China and an engineer with a
bachelor’s degree. He entered the Company in 1994. And acted as workshop manager of parabolic reflector, coating
film, energy saving lamp, factory director of the branch factory of Gaoming and workshop manager of general bulbs
from January 1997 to December 2012, acted as Director of Production Department, OEM Department and
Mechanical Dynamics Department from January to August 2013, acted as Director of Production Department and
OEM Department from September 2013 to May 2014 as well as acted as Vice GM of the Company from May 2014.
Mr. Zhang Yong: Born in June 1974, a member of the Communist Party of China and a senior engineer with a
bachelor degree. He joined in the Company in July 1997. and successively acted as Deputy Director and Director of
Lamp Filament Appliance Workshop from October 1999 to June 2008; acted as Factory Director of Gaoming
Fluorescent Lamp Factory and Factory Director of Gaoming Branch Factory from July 2008 to December 2008;
respectively acted as Department Director of Product Department, OEM Department, Mechanical Dynamics
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Department and Infrastructure Department from January 2009 to December 2012; acted as General Manager
Assistant from March 2013 to August 2016. He was a supervisor and the Chairman of the Board of Supervisors of
the Company from September 2013 to August 2016; served as the chairman of the Labor Union of the Company
from September 2013 to May 2019; was elected as the Deputy Party Secretary in July 2015; and has been a vice GM
of the Company since August 2016.
Mr. Xu Xiaoping: born in July 1970, member of the Communist Party of China, postgraduate degree, engineer.
Worked as Deputy General Manager and General Manager of Guangdong Fenghua Advanced Technology Holding
Co., Ltd. Xin’gu Branch, also as the General Manager of Guangdong Fenghua Semiconductor Technology Co., Ltd.,
and Deputy Director of Headquarters Operations Center; as the General Manager of Guangdong Fenghua Advanced
Technology Holding Co., Ltd. Lihua Branch from March 2015 to January 2016; won the first prize of scientific and
technological progress of Zhaoqing in 2008; won the title of the “Ninth Batch of Top Talents of Zhaoqing” in 2010;
served as Deputy General Manager of the Company since January 2016.
Offices held concurrently in shareholding entities:
√Applicable □Not applicable
Office held in the Remuneration or
Name Shareholding entity shareholding Start of tenure End of tenure allowance from the
entity shareholding entity
Full-time director
accredited to the
Guangdong Rising Holdings Group Co.,
Cheng Ke listed company by Yes
Ltd.
capital operation
department
Deputy Secretary
Guangdong Electronics Information of CPC, Chairman
Huang Zhiyong Yes
Industry Group Ltd. of the Labor
Union
Prosperity Lamps & Components Chairman of the
Zhuang Jianyi Yes
Limited Board
Prosperity Lamps & Components
Zhuang Junjie Director Yes
Limited
Offices held concurrently in other entities:
√Applicable □Not applicable
Remuneration or
Office held in
Name Other entity Start of tenure End of tenure allowance from
the entity
the entity
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Lingnan (University) College of Sun Professor and
Lu Rui Yes
Yat-Sen University doctoral tutor
CHINA SOLED STATE LIGHTING Vice
Dou Linping Yes
ALLIANCE Chairman
Punishments imposed in the recent three years by the securities regulator on the incumbent directors, supervisors
and senior management as well as those who left in the Reporting Period:
□ Applicable √ Not applicable
IV Remuneration of Directors, Supervisors and Senior Management
Decision-making procedure, determination basis and actual payments of remuneration for directors, supervisors
and senior management:
The Remuneration & Appraisal Committee under the Board of Directors decides the
remuneration of senior management in 2019 in accordance with the Plan for Implementing
the Equity Incentive Mechanism for Middle-and Top-Rank Management Personnel, and
Compensation Plan for Executive Officers, reviewed and approved on the 2001 Annual
Decision-making procedure for the
Shareholders’ General Meeting, and the particulars on completing current main financial
remuneration of directors,
indexes & operating goals, as well as the fulfillment of job responsibilities by them.
supervisors and senior management
The remuneration of the Company's Directors and senior managers for year 2020 will be
determined through assessment by the Board of the Company according to the Measures of
Foshan Electrical and Lighting Co., Ltd. for Managing the Remuneration of the Leadership
Team Members.
The remuneration of senior management in 2019 was decided in accordance with the Plan for
Implementing the Equity Incentive Mechanism for Middle-and Top-Rank Management
Personnel, and Compensation Plan for Executive Officers; The remuneration of the
Company's Directors and senior managers for year 2020 will be determined through
Basis for determining the
assessment according to the Measures of Foshan Electrical and Lighting Co., Ltd. for
remuneration of directors,
Managing the Remuneration of the Leadership Team Members. The Supervisors are
supervisors and senior management
remunerated according to their administrative duties and are not additionally compensated for
their performing supervisory duties. The allowance of independent directors should be
granted according to the standard reviewed and approved by 2015 Annual Shareholders’
General Meeting.
Actual payment of the remuneration The total remuneration (before tax) actually paid to the directors, supervisors and senior
of directors, supervisors and senior management staff for 2020 were RMB12.0912 million.
management
Remuneration of directors, supervisors and senior management for the Reporting Period
Unit: RMB'0,000
Total before-tax Any
Incumbent/Forme
Name Office title Gender Age remuneration remuneration
r
from the from related party
95
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Company
Wu Shenghui Board Chairman Male 50 Incumbent 55.32 No
Vice Board
Zhuang Jianyi Male 69 Incumbent Yes
Chairman
Lei Zihe Director & GM Male 53 Incumbent 55.27 No
Zhang Xianfeng Director Male 50 Incumbent 35.07 No
Cheng Ke Director Male 46 Incumbent Yes
Huang Zhiyong Director Male 51 Incumbent Yes
Independent
Zhang Nan Female 71 Incumbent No
Director
Independent
Lu Rui Male 45 Incumbent 14.4 No
Director
Independent
Dou Linping Male 61 Incumbent 4.80 No
Director
Chairman of the
Li Huashan Supervisory Male 57 Incumbent 101.14 No
Committee
Li Yizhi Supervisor Male 33 Incumbent Yes
Zhuang Junjie Supervisor Male 35 Incumbent Yes
Ye Zhenghong Supervisor Male 47 Incumbent 57.29 No
Lin Qing Supervisor Male 51 Incumbent 36.28 No
ExecutiveVice
Zhang Xuequan Male 43 Incumbent 87.61 No
GM
Tang Qionglan CFO Female 50 Incumbent 99.29 No
Wei Bin Vice GM Male 51 Incumbent 96.00 No
Jiao Zhigang Vice GM Male 48 Incumbent 91.89 No
Chen Yu Vice GM Male 48 Incumbent 87.47 No
Zhang Yong Vice GM Male 46 Incumbent 87.54 No
Xu Xiaoping Vice GM Male 50 Incumbent 73.30 No
He Yong Board Chairman Male 60 Former Yes
Liu Xingming Director & GM Male 58 Former 169.42 No
Qi Siyin Director Male 40 Former Yes
Independent
Lyu Wei Male 56 Former 9.60 No
Director
Liang Yueyi Supervisor Female 46 Former 47.43 No
Total -- -- -- -- 1,209.12 --
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Equity incentives for directors, supervisors and senior management in the Reporting Period:
□ Applicable √ Not applicable
V Employees
1. Number, Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company 5,753
Number of in-service employees of main subsidiaries 2,163
Total number of in-service employees 7,916
Total number of employees with remuneration in this Reporting
7,916
Period
Number of retirees to whom the Company or its main
0
subsidiaries need to pay retirement pension
Functions
Function Number of employees
Production 6,081
Sales 801
Technical 764
Financial 50
Administrative 220
Total 7,916
Educational backgrounds
Educational background Number of employees
Master and above 35
Bachelor 731
College 1,054
Technical secondary school and high school 1,188
Below high school 4,908
Total 7,916
2. Employee Remuneration Policy
The general principal of the employee’s remuneration policy is: as for the external part, the Company should
maintain the market competitiveness of the talents by possessing of the attraction and as for the internal part,
should possess of the impartiality and consistency. The salary level of the external labor market and the social
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
average salary level as well as the wage guiding issued by the governmental department are the important
reference basis for the confirm of the salary standard of the Company; to confirm different pay grade according to
different positions and the position characteristics and to furthest incentive the enthusiasm of the employees; to
abide with the principal of giving priority to efficiency and give consideration of the fairness and to object to the
equalitarianism when distributing the remunerations, to pay with generous compensation for those excellent
employees who creates great value, to appropriately incline to the key talents and the market supply shortage
talents; the lowest salary of the Company should not be lower than the local lowest salary standard.
3. Employee Training Plans
The Company has been setting great store on the training and development work of the employees, and combined
with the actual situation, annual plan, the position nature and the responsibilities as well as the development
demands, the Company built up a complete training plan and required all departments to work out annual training
plan. The training plan will be implemented through the methods of having classes by internal lecturers and
external engaged professors as well as going out. In addition, a training system with multiple levels, channels,
fields and ways will be built. The main training work includes the new employee orientation training, the
on-the-job personnel professional training, the frontline staff skills training, skills training for sales personnel,
skills training for managerial personnel, skills training for professional technical personnel etc., to constantly
improve the overall quality of the current employees for realizing the win-win situation and mutual progress.
4. Labor Outsourcing
□ Applicable √ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part X Corporate Governance
I General Information of Corporate Governance
During the Reporting Period, in strict accordance with relevant requirements of Company Law, Securities Law,
Code of Corporate Governance of Listed Companies and Rules of Stock Listing of Shenzhen Stock Exchange as
well as other relevant laws, rules and regulations, the Company continuously perfected the corporate governance
structure and set up an effective corporate governance system. At present, the Company has set up governance
structure of responsible Shareholders’ General Meeting, the Board of Directors, the Supervisory Committee and
managers, who performed right of decision-making, execution and supervision respectively according to their
duties; besides, the Company set up special committees of the Board of Directors and system for independent
directors. The Company strengthened information disclosure of principal shareholders and persons
acting-in-concert, forbidden shareholders of the Company to misapply their rights. The Company separated from
the principal shareholder in personnel, assets, business, financial affairs and organizational, and was absolutely
impendent. The Company timely revised and perfected various systems in accordance with the latest issued laws
& rules and relevant regulations of CSRC and Shenzhen Stock Exchange. And the corporate governance is
basically in line with the requirements of relevant laws, regulations and regulatory documents.
Indicate by tick market whether there is any material incompliance with the regulatory documents issued by the
CSRC governing the governance of listed companies.
□ Yes √ No
No such cases in the Reporting Period.
II The Company’s Independence from Its Controlling Shareholder in Business, Personnel,
Asset, Organization and Financial Affairs
The Company is completely separated from its controlling shareholder in aspects such as business, personnel,
assets, institutions and finance and possesses independent and complete business and self-dependent operating
ability.
1. As for the business, the Company is independent of the controlling shareholders and the subordinate enterprises
and owns the independent business departments and management system as well as possesses of impendent and
entire business and self-dependent operating ability.
2. As for the personnel, the Company formulates the independent management system such as the labor, personnel
and the salary, possesses the independent personnel department and the operating management team. The Senior
Executives of the Company are serving at the Company in full time and receiving the salary from the Company.
3. As for the assets, the assets of the Company are independent and entire with clear ownership, and possesses the
independent production system, BOP system and the supporting facilities, as well as possesses the legal ownership
of the land, factories, equipments related to the production and operating and the assets such as the trademark,
patent and the non-patent technology, and possesses the entire control and govern power of all the assets of the
Company without any behavior such as any controlling shareholder occupies the assets of the Company.
4. As for the institutions, the Company set up the independent and entire organizations and institutions, and the
construction as well as the operating of the corporate governance institutions is executed strictly executed
according to the Articles of Association, and the production and operating as well as the offices are entirely
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
independent from the controlling shareholders with any situation of working under one roof with the controlling
shareholders.。
5. As for the finance, the Company set up the independent finance department and builds up the independent and
normative accounting and financial control system according to the requirements of the ASBE, set up the
independent bank account and pays the taxes legally and independently and the Company could make the
financial decisions independently without any situation of the shareholding intervenes the capital usage.
III Horizontal Competition
□ Applicable √ Not applicable
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Date of the meeting Disclosure date
participation ratio information
Announcement on
Resolutions of the
The 2019 Annual Annual General 2019 Annual General
38.22% 7 May 2020 8 May 2020
General Meeting Meeting Meeting (No.
2020-020) disclosed on
www.cninfo.com.cn
Announcement on
Resolutions of the 1st
The 1st Extraordinary
Extraordinary Extraordinary General
General Meeting of 41.95% 24 August 2020 25 August 2020
General Meeting Meeting of 2020 (No.
2020
2020-042) disclosed on
www.cninfo.com.cn
Announcement on
nd
The 2 Resolutions of the 2nd
Extraordinary Extraordinary Extraordinary General
41.38% 16 October 2020 17 October 2020
General Meeting of General Meeting Meeting of 2020 (No.
2020 2020-053) disclosed on
www.cninfo.com.cn
Announcement on
The 3 rd
Resolutions of the 3rd
Extraordinary Extraordinary Extraordinary General
41.66% 18 December 2020 19 December 2020
General Meeting of General Meeting Meeting of 2020 (No.
2020 2020-065) disclosed on
www.cninfo.com.cn
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
V Performance of Duty by Independent Directors in the Reporting Period
1. Attendance of Independent Directors at Board Meetings and General Meetings
Attendance of independent directors at board meetings and general meetings
Total number The
Board
of board Board Board independent
Board meetings
meetings the meetings meetings the director failed General
Independent meetings attended by
independent attended independent to attend two meetings
director attended on way of
director was through a director failed consecutive attended
site telecommunica
eligible to proxy to attend board meetings
tion
attend (yes/no)
Zhang Nan 15 2 13 0 0 No 2
Lu Rui 15 3 12 0 0 No 3
Dou Linping 7 1 6 0 0 No 0
2. Objections Raised by Independent Directors on Matters of the Company
Indicate by tick mark whether any independent directors raised any objections on any matter of the Company.
□ Yes √ No
No such cases in the Reporting Period.
3. Other Information about the Performance of Duty by Independent Directors
Indicate by tick mark whether any suggestions from independent directors were adopted by the Company.
√ Yes □ No
Suggestions from independent directors adopted or not adopted by the Company:
During the reporting period, the Independent Directors of the Company worked to fulfill their functions and duties,
actively attended Board of Directors meetings and Shareholders’ General Meetings, offered advices and
suggestions and performed their rights, functions, duties, and obligations as defined in the Company Law, the
Securities Law and the Articles of Association. They fulfilled their role as an Independent Director, upheld the
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
legitimate rights and interests of the Company and its shareholders, especially the minority shareholders,
promoted further improvement in corporate governance and effectively facilitated regulatory compliance of the
Company's operation. During the reporting period, the Independent Directors of the Company performed their
functions and duties, made full use of their professional knowledge, worked diligently to fulfill their duties and
offered many invaluable advices and suggestions on the Company's management decision-making and major
matters based on their in-depth understanding of the Company's operations. They offered independent, unbiased
opinions on the Company's matters such as purchase of finance products, profit distribution, avoidance of
horizontal competition, recruitment of accounting firms, related-party transactions, share repurchase and measures
for managing the remuneration of the leadership team members. They played their due role in improving the
Company's supervision mechanism, promoting improvement in the Company's risk control capacity and
upholding the legitimate rights and interests of the Company and its shareholders.
VI Performance of Duty by Specialized Committees under the Board in the Reporting Period
(I) Work Accomplished by the Audit Committee
According to the related provisions of China Securities Regulatory Commission and Shenzhen Stock Exchange,
as well as the Rules of Implementation for the Audit Committee of the Board, the Audit Committee diligently
performed the following work duties:
1. On 25 March 2020, the Audit Committee convened a meeting to discuss and approve the following topics:
(1) 2019 financial audit and internal control audit report of the Company;
(2) 2019 annual work report and 2020 work plan of the Audit Department;
(3) 2020 report on risk evaluation of the Company.
2. 9 July 2020, the Audit Committee convened a meeting to discuss and approve the following topics:
(1) Work summary of the Audit Department for Q1 2020;
(2) Proposal on revising internal audit systems.
3. 25 September 2020, the Audit Committee convened a meeting to discuss and approve the following topics:
(1) Proposal on renewing the engagement of auditing agency for 2020;
(2) Work summary of the Audit Department for H1 2020.
4. 10 December 2020, the Audit Committee convened a meeting to discuss and approve the Work Summary of the
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Audit Department for the First Three Quarter of 2020.
(II) Work Accomplished by the Remuneration and Assessment Committee
On 25 March 2020, the Remuneration and Assessment Committee of the Board of Directors convened a meeting to
assess of the remuneration of the senior management of the Company based on the major financial indicators and
business objectives of the Company in 2019, the scope of work and major responsibilities of the senior management
of the Company and the indicators of assessment system related to the senior management’s job performance. It was
considered that the remuneration of the senior management personnel of the Company in 2019 was determined
based on the principle of “Remuneration Plan for Senior Management” and the relevant regulations of
“Remuneration System” of the Company. The implementation of the Company's accrued incentive fund was in line
with the “Establishment of Equity Incentive System for Middle and Senior Management” which was reviewed and
approved at the general meeting of shareholders. The incentives implemented by the Company for middle and
senior management personnel, business and technology elites was legal and reasonable, and it was conducive to
improve the integration of interests of the management and the Company as well as shareholders.
(III) Work Accomplished by the Nomination Committee
1. On 24 April 2020, the Nomination Committee of the Board of Directors convened a meeting to review the
qualifications of candidates Mr. Wu Shenghui and Mr. Lei Zihe for directors and considered that they were
eligible and agreed to submit the proposal to the Board for review.
2. On 6 August 2020, the Nomination Committee of the Board of Directors convened a meeting to review the
qualifications of candidates for non-independent and independent directors of the 9th Board of Directors and
considered that they were eligible and agreed to submit the proposal to the Board for review.
VII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its supervision in
the Reporting Period.
□ Yes √ No
The Supervisory Committee raised no objections in the Reporting Period.
VIII Appraisal of and Incentive for Senior Management
The Remuneration & Appraisal Committee under the Board of Directors decides the remuneration of senior
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management in 2019 in accordance with the Plan for Implementing the Equity Incentive Mechanism for
Middle-and Top-Rank Management Personnel, and Compensation Plan for Executive Officers, reviewed and
approved on the 2001 Annual Shareholders’ General Meeting, and the particulars on completing current main
financial indexes & operating goals, as well as the fulfillment of job responsibilities by them.
The remuneration of the Company's Directors and senior managers for year 2020 will be determined through
assessment by the Board of the Company according to the Measures of Foshan Electrical and Lighting Co., Ltd.
for Managing the Remuneration of the Leadership Team Members.
IX Internal Control
1. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes √ No
2. Internal Control Self-Evaluation Report
Disclosure date of the internal control
9 April 2021
self-evaluation report
Index to the disclosed internal control
See www.cninfo.com.cn for the Internal Control Self-Evaluation Report 2020
self-evaluation report
Evaluated entities’ combined assets as
100.00%
% of consolidated total assets
Evaluated entities’ combined
operating revenue as % of 100.00%
consolidated operating revenue
Identification standards for internal control weaknesses
Weaknesses in internal control over financial Weaknesses in internal control not related to
Type
reporting financial reporting
Defect with one of the following Defect with one of the following
characteristics should be recognized as a characteristics should be recognized as a
serious defect: 1. the defect involved with the serious defect: 1. being punished for
malpractices of the Directors, the Supervisors seriously violating the national laws, the
and the Senior Executives; 2. the controlled administrative laws and regulations and the
Nature standard environment is invalid; 3. the CPA discovered normative documents; 2. the Company
any significant misstatement from the current suffers a serious economic loss due to any
financial report while the internal control serious errors made in decision-making
could not discover the mistake during the caused by serious lack of decision-making
operating process; 4. the supervision from the procedures on significant events or unfair
Corporate Audit Committee and the internal decision-making; 3. the Company’s
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
audit institution on the internal control. If reputation has been unrepairably damaged by
there met with one of the situation of the any conduct in violation of laws and
following, should be recognized as an regulations which produces a far-reaching
important defect: 1. the recognized important negative impact and draws the public’s
defect is not solved during the reasonable attention widely; 4. the major business
period; 2. corrects the published financial involved with the production and operating
report; 3. the function of the internal audit of of the Company lack of the system control or
the Company is invalid; 4. the control of the system control is invalid; 5. the results of
whether execute the selection and the the internal control assessment turn out to
application of the accounting policies include any serious defects and such defects
according to the Generally Accepted fail to be rectified effectively within 12
Accounting Principles is invalid. months. Defects with the following
characteristics should be recognized as
important defects: 1. owing to partly lack of
the decision-making process on significant
events and the undemocratic
decision-making process which caused the
decision-making mistake that led the
Company face with certain economic losses;
2. the negative influences owning to the
unlawful acts and the irregularities h involve
with wide range and cause public concern
among the partial regions which bring
certain harms to the reputation of the
Company; 3. the system of the major
business involved with the production and
operating of the Company is incomplete or
partially invalid; 4. the results of the internal
control assessment turn out to include any
serious defects and such defects fail to be
rectified effectively within 6 months.
Based on the data of the 2020 consolidated According to the quantitative criterion of the
statements, the quantitative criterion of internal control defects of the financial
confirming the important degree of the report, the quantitative criterion of the
misstatement (including the false negatives) internal control defects assessment of the
from of the consolidated statements of the non-financial report confirmed by the
listed companies is as follows: serious defect: Company is as follows: serious defect:
Quantitative standard
misstatement ≥1.0% of the total assets misstatement ≥1.0% of the total assets
amount; important defects: 0.5% of the total amount; important defects: 0.5% of the total
assets amount ≤misstatement＜1.0% of the assets amount ≤misstatement＜1.0% of the
total assets amount; common defects: total assets amount; common defects:
misstatement ＜ 0.5% of the total assets misstatement ＜ 0.5% of the total assets
amount. amount.
Number of material weaknesses in 0
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
internal control over financial
reporting
Number of material weaknesses in
internal control not related to financial 0
reporting
Number of serious weaknesses in
internal control over financial 0
reporting
Number of serious weaknesses in
internal control not related to financial 0
reporting
X Independent Auditor’s Report on Internal Control
√ Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
Zhongzheng Tiantong Certified Public Accountants LLP considered that: Foshan Electrical and Lighting Co., Ltd. maintained
effective internal control of the financial report in all significant aspects according to the Basic Standards for Internal Control and
relevant regulations.
Independent auditor’s report on
Disclosed
internal control disclosed or not
Disclosure date 9 April 2021
Index to such report disclosed See www.cninfo.com.cn for the Auditor’s Report on Internal Control
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal
control not related to financial None
reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report on the
Company’s internal control.
□ Yes √ No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is consistent
with the internal control self-evaluation report issued by the Company’s Board.
√ Yes □ No
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part XI 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. Annual Report 2020
Part XII Financial Statements
I Independent Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report 7 April 2021
Name of the independent auditor Zhongzheng Tiantong Certified Public Accountants LLP
No. of independent auditor’s report ZZTT (2021) Auditor’s Report No. 0700001
Names of certified public accountants Tong Quanyong, Chen Wenhong
Text of the Independent Auditor’s Report
To the Shareholders of Foshan Electrical and Lighting Co., Ltd.
I Opinion
We have audited the financial statements of Foshan Electrical and Lighting Co., Ltd. (the “Company”), which
comprise the consolidated balance sheets and balance sheet of the Company as the parent as of 31 December 2020,
the consolidated income statement and income statement of the Company as the parent, consolidated cash flow
statement and cash flow statement of the Company as the parent and consolidated statement of changes in owners’
equity and statement of changes in owners’ equity of the Company as the parent for the year then ended, as well as
the notes to the financial statements.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated
and parent company financial position of the Company at 31 December 2020, and the consolidated and the
company as the parent operating results and cash flows for the year then ended, in conformity with the Chinese
Accounting Standards (CAS).
II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants, and we have fulfilled our other ethical responsibilities in accordance with
the said Code of Ethics. We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
III Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of
the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters. And key audit matter identified in our audit is summarized as follows:
(I) Recognition of Revenue
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
1. Event description
As described in "Note V. Major accounting policies and accounting estimates (XXXIX)" to the consolidated
financial statements, on 1 January 2020, the Company started implementing the revised Accounting Standards for
Enterprises No. 14--Revenues issued by the Ministry of Finance in 2017. Since then, revenue is recognized only
when the customer has gained the relevant control of the commodity. In 2020, the Company recorded a revenue of
RMB 3,744,914,452.72, up by RMB 407,337,705.06 or 12.20% year-on-year. Considering that the Company may
have incorrectly classified, measured and reported revenue items due to inadequate understanding of the new
standards, that revenue is used by FSL as a key indicator of performance, and that revenue has an inherent risk of
being manipulated to reach the target or anticipated level, revenue has been defined by FSL as a key matter in the
scope of audit.
2. Audit response
With regard to FSL’s revenue recognition, we mainly implemented the following procedures: (1) Understand and
test the design and implementation of key internal control related to revenue recognition to verify the
effectiveness of internal control operation. (2) Sales contracts will be sample-checked to identify terms and
conditions on the transfer of the control of commodities and assess whether the Company complies with the new
accounting standards in terms of the time of recognition of revenue. (3) The Company's revenue transactions will
be sampled to check the invoices, shipping documents and customs clearance documents and assess whether the
revenues are recorded in the appropriate accounting periods. (4) Obtain the record of product replacement and
return and check whether there is any major abnormal replacement or return. (5) Letters of confirmation will be
obtained from customers to check the exactness and completeness of the data about the balances of accounts
receivable. (6) By comparing with industrial peers and considering the changes in FSL’s customers, product mix,
price management and other related factors, assess the reasonableness of the changes in FSL’s operating revenue.
(7) Revenues and costs will be analyzed following pre-established procedures, including an analysis of the
variations in revenue, cost and gross margin between product categories and a comparison with previous periods.
(8) The industrial and commercial registration information of customers will be sampling checked through public
information platforms, including a list of the related parties of each customer for checking the related-party
relationship between FSL and customers. (9) The record of the revenue transactions in the current period will be
checked for exactness and completeness by using other audit procedures such as checking the payment collections
and sales returns subsequent to the current period and the letters of reconciliation between FSL and customers.
(II) Matters concerning acquisition of Hunan Keda's equities
1. Event description
As described in the note to the consolidated financial statements "VIII. Changes in the Scope of Consolidation
(II.)" and "XIV. Notes for the Main Items of the Parent Company's Financial Statements (III.), FSL acquired
100% equities of Hunan Keda New Energy Investment and Development Co., Ltd. (hereinafter referred to as
"Hunan Keda") with a consideration of RMB311,628,442.49 in December 2020. Given that the transaction
involved complicated business combination accounting like business combination and equity purchase under
common control, the management engaged an independent asset appraiser to evaluate Hunan Keda to determine
the fair value of its identifiable assets and liabilities, requiring the use of many evaluation hypotheses and
estimates like cash flow prediction and discounting rate. Therefore, we determined that this equity acquisition
matter was a key audit matter.
2. Audit response
In terms of FSL’s acquisition of Hunan Keda’s equities, we performed the following main procedures: (1)
Learning and testing the design and implementation of FSL’s internal control policies related to investment
activities in an effort to confirm the effectiveness of internal control operation. (2) Inquiring the management to
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
learn the commercial substance of this equity transaction matter and assess its rationality. (3) Obtaining and
consulting such documents as the equity transfer agreement, meeting resolutions related to equity acquisition of
the Board of Shareholders and Board of Directors, documents of equity amount payment, and procedures for the
transfer of control rights, inspecting whether relevant legal procedures are finished. (4) Obtaining the asset
evaluation report produced by a third-party evaluation institution, evaluate the competence, professionalism and
objectivity of the appraiser, and review the accuracy and rationality of the parameters used during the evaluation
process. (5) Evaluating the adequacy and suitability of the information on the equity acquisition matter disclosed
in the financial statements.
IV Other Information
The Company’s management is responsible for the other information. The other information comprises all of the
information included in the Company’s 2020 Annual Report other than the financial statements and our auditor’s
report thereon.
Our opinion on the financial statements does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our
knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have
performed, we conclude that there is a material misstatement of this other information, we are required to report
that fact. We have nothing to report in this regard.
V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair view in
accordance with CAS, and for designing, implementing and maintaining such internal control as the management
determines is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the management is responsible for assessing the Company’s ability to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the going
concern basis of accounting unless the management either intends to liquidate the Company or to cease operations,
or have no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Company’s financial reporting process.
VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with CAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error
and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with CAS, we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
misrepresentations, or the override of internal control.
(2) Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and, based
on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required by CAS to draw users’ attention in our auditor’s report to the related
disclosures in the financial statements or, if such disclosures are inadequate, we should express modified opinion.
Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation, structure and content of the financial statements, including the disclosures,
and whether the financial statements represent the underlying transactions and events in a manner that achieves
fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements. We are responsible for the
direction, supervision and performance of the Company audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and
timing of the audit and significant audit findings, including any noteworthy deficiencies in internal control that we
identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of
most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.
Beijing Zhongzheng Tiantong Certified Chinese CPA:
Public Accountants LLP （Engagement Partner）
Tong Quanyong
Chinese CPA:
Beijing China Chen Wenhong
7 April 2021
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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.
31 December 2020
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets:
Monetary assets 981,249,699.49 1,131,305,521.09
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 407,619,201.36 901,166,682.64
Derivative financial assets
Notes receivable 140,972,143.00 109,444,480.94
Accounts receivable 1,134,233,235.70 712,175,266.51
Accounts receivable financing
Prepayments 11,994,745.05 7,851,390.78
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 20,194,968.19 24,268,554.00
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 735,685,116.91 637,336,584.06
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 175,090,368.85 69,375,238.73
Total current assets 3,607,039,478.55 3,592,923,718.75
Non-current assets:
Loans and advances to customers
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 181,365,016.32 181,093,725.43
Investments in other equity
3,305,501,030.06 1,454,740,241.46
instruments
Other non-current financial assets
Investment property
Fixed assets 685,707,548.55 630,001,778.81
Construction in progress 503,941,120.31 392,463,954.62
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 170,693,873.30 167,826,499.74
Development costs
Goodwill
Long-term prepaid expense 13,411,226.23 9,036,943.97
Deferred income tax assets 40,253,777.17 40,007,412.46
Other non-current assets 11,423,843.62 9,861,098.08
Total non-current assets 4,912,297,435.56 2,885,031,654.57
Total assets 8,519,336,914.11 6,477,955,373.32
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 480,971,214.80 374,665,327.74
Accounts payable 1,059,674,020.99 559,016,692.70
Advances from customers 1,285,357.28 55,615,216.17
Contract liabilities 65,777,726.45
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Payables for acting trading of
securities
Payables for underwriting of
securities
Employee benefits payable 82,485,090.47 83,156,852.86
Taxes payable 18,876,657.51 17,374,063.48
Other payables 76,668,330.66 280,035,419.34
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 5,503,702.07
Total current liabilities 1,791,242,100.23 1,369,863,572.29
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
Deferred income tax liabilities 414,670,609.97 137,216,136.70
Other non-current liabilities 1,244,064.84
Total non-current liabilities 415,914,674.81 137,216,136.70
Total liabilities 2,207,156,775.04 1,507,079,708.99
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Including: Preferred shares
Perpetual bonds
Capital reserves 15,157,514.90 231,608,173.07
Less: Treasury stock
Other comprehensive income 2,349,388,533.61 776,260,348.19
Specific reserve
Surplus reserves 741,567,039.55 836,559,645.36
General reserve
Retained earnings 1,758,462,062.48 1,700,426,915.63
Total equity attributable to owners of
6,263,921,304.54 4,944,201,236.25
the Company as the parent
Non-controlling interests 48,258,834.53 26,674,428.08
Total owners’ equity 6,312,180,139.07 4,970,875,664.33
Total liabilities and owners’ equity 8,519,336,914.11 6,477,955,373.32
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 31 December 2019
Current assets:
Monetary assets 896,261,882.77 1,059,001,233.28
Held-for-trading financial assets 407,619,201.36 901,166,682.64
Derivative financial assets
Notes receivable 137,477,199.21 107,567,164.99
Accounts receivable 1,030,713,074.22 666,106,832.53
Accounts receivable financing
Prepayments 9,581,302.45 6,614,791.10
Other receivables 462,284,585.09 37,934,614.96
Including: Interest receivable
Dividends receivable
Inventories 615,106,650.81 553,557,529.00
Contract assets
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Assets held for sale
Current portion of non-current assets
Other current assets 139,275,518.71 43,118,385.01
Total current assets 3,698,319,414.62 3,375,067,233.51
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 536,949,311.73 464,886,827.69
Investments in other equity
3,305,501,030.06 1,454,740,241.46
instruments
Other non-current financial assets
Investment property
Fixed assets 628,174,755.88 573,844,707.66
Construction in progress 54,652,119.14 116,240,559.37
Productive living assets
Oil and gas assets
Right-of-use assets
Intangible assets 122,391,701.60 125,673,065.66
Development costs
Goodwill
Long-term prepaid expense 11,651,100.48 4,891,398.93
Deferred income tax assets 31,403,727.94 34,205,213.27
Other non-current assets 7,548,885.47 8,440,448.08
Total non-current assets 4,698,272,632.30 2,782,922,462.12
Total assets 8,396,592,046.92 6,157,989,695.63
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 484,230,566.21 376,265,327.74
Accounts payable 1,108,208,382.75 689,846,497.35
Advances from customers 46,758,714.00
Contract liabilities 53,572,800.70
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Employee benefits payable 62,075,512.08 68,658,329.30
Taxes payable 7,819,839.48 12,374,430.19
Other payables 171,916,835.73 125,001,875.83
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities
Other current liabilities 4,483,279.11
Total current liabilities 1,892,307,216.06 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 414,670,609.97 137,216,136.70
Other non-current liabilities
Total non-current liabilities 414,670,609.97 137,216,136.70
Total liabilities 2,306,977,826.03 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 7,426,635.62 166,211,779.15
Less: Treasury stock
Other comprehensive income 2,349,389,658.23 776,242,987.90
Specific reserve
117
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Surplus reserves 741,567,039.55 836,559,645.36
Retained earnings 1,591,884,733.49 1,523,507,818.11
Total owners’ equity 6,089,614,220.89 4,701,868,384.52
Total liabilities and owners’ equity 8,396,592,046.92 6,157,989,695.63
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
3. Consolidated Income Statement
Unit: RMB
Item 2020 2019
1. Revenue 3,744,914,452.72 3,337,576,747.66
Including: Operating revenue 3,744,914,452.72 3,337,576,747.66
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 3,438,752,837.39 3,043,399,217.05
Including: Cost of sales 2,996,273,910.80 2,560,513,052.56
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 38,631,841.23 38,155,904.16
Selling expense 145,219,700.35 243,824,295.42
Administrative expense 155,365,373.75 149,186,469.90
R&D expense 108,885,296.71 79,444,261.80
Finance costs -5,623,285.45 -27,724,766.79
Including: Interest
expense
118
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Interest
37,650,815.03 24,425,342.69
income
Add: Other income 28,989,528.20 11,202,255.25
Return on investment (“-” for loss) 44,236,204.90 60,878,425.30
Including: Share of profit or loss
2,351,681.39 1,755,751.49
of joint 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 (“-”
4,785,700.00 2,024,400.00
for loss)
Credit impairment loss (“-” for
-16,109,592.36 -3,851,172.58
loss)
Asset impairment loss (“-” for loss) -7,581,307.74 -16,675,215.52
Asset disposal income (“-” for
9,090,874.79
loss)
3. Operating profit (“-” for loss) 369,573,023.12 347,756,223.06
Add: Non-operating income 2,164,694.19 3,072,145.61
Less: Non-operating expense 3,854,417.99 5,517,243.94
4. Profit before tax (“-” for loss) 367,883,299.32 345,311,124.73
Less: Income tax expense 45,714,707.53 46,963,633.47
5. Net profit (“-” for net loss) 322,168,591.79 298,347,491.26
5.1 By operating continuity
5.1.1 Net profit from continuing
322,168,591.79 298,347,491.26
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
316,914,185.34 296,077,926.11
owners of the Company as the parent
5.2.1 Net profit attributable to
5,254,406.45 2,269,565.15
non-controlling interests
6. Other comprehensive income, net of
1,573,128,185.42 189,240,788.90
tax
Attributable to owners of the Company
1,573,128,185.42 189,240,788.90
as the parent
119
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
6.1 Items that will not be
1,573,146,670.33 189,218,417.07
reclassified to 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
1,573,146,670.33 189,218,417.07
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
-18,484.91 22,371.83
profit 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
-18,484.91 22,371.83
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income 1,895,296,777.21 487,588,280.16
Attributable to owners of the Company
1,890,042,370.76 485,318,715.01
as the parent
Attributable to non-controlling
5,254,406.45 2,269,565.15
interests
8. Earnings per share
8.1 Basic earnings per share 0.2265 0.2116
120
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
8.2 Diluted earnings per share 0.2265 0.2116
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB-5,613,743.03, with the amount for last year being RMB-5,104,980.13.
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Operating revenue 3,490,267,102.53 3,235,948,439.05
Less: Cost of sales 2,860,949,556.76 2,538,328,460.62
Taxes and surcharges 32,375,835.55 32,695,622.91
Selling expense 126,810,307.11 222,786,236.44
Administrative expense 129,489,381.94 124,637,990.70
R&D expense 96,789,792.55 69,817,196.60
Finance costs -4,922,225.34 -27,260,802.84
Including: Interest expense
Interest income 36,942,203.37 23,903,504.29
Add: Other income 27,001,177.15 10,837,075.25
Return on investment (“-” for
87,972,948.71 61,208,653.50
loss)
Including: Share of profit or
2,351,681.39 1,755,751.49
loss of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
4,785,700.00 2,024,400.00
for loss)
Credit impairment loss (“-” for
-10,299,990.56 -2,467,565.77
loss)
Asset impairment loss (“-” for
-6,366,924.12 -16,240,391.22
loss)
Asset disposal income (“-” for
9,090,874.79
loss)
121
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Operating profit (“-” for loss) 360,958,239.93 330,305,906.38
Add: Non-operating income 1,892,869.67 2,522,638.65
Less: Non-operating expense 2,969,626.09 3,039,777.74
3. Profit before tax (“-” for loss) 359,881,483.51 329,788,767.29
Less: Income tax expense 32,625,529.64 43,044,196.92
4. Net profit (“-” for net loss) 327,255,953.87 286,744,570.37
4.1 Net profit from continuing
327,255,953.87 286,744,570.37
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
1,573,146,670.33 189,218,417.07
tax
5.1 Items that will not be reclassified
1,573,146,670.33 189,218,417.07
to 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
1,573,146,670.33 189,218,417.07
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
122
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income 1,900,402,624.20 475,962,987.44
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities
3,342,410,171.83 3,513,304,043.27
and 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 112,333,842.35 83,431,462.66
Cash generated from other operating
119,666,217.14 129,751,349.03
activities
123
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Subtotal of cash generated from
3,574,410,231.32 3,726,486,854.96
operating activities
Payments for commodities and
2,077,887,848.58 2,167,028,031.70
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
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 690,837,445.67 622,553,822.30
Taxes paid 203,087,061.81 192,654,679.26
Cash used in other operating
207,769,543.36 234,360,529.65
activities
Subtotal of cash used in operating
3,179,581,899.42 3,216,597,062.91
activities
Net cash generated from/used in
394,828,331.90 509,889,792.05
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 405,000,000.00 19,550,000.00
Return on investment 52,397,663.37 51,173,422.00
Net proceeds from the disposal of
fixed assets, intangible assets and other 9,814,672.12 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
467,212,335.49 70,764,256.00
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 232,678,180.62 134,536,941.41
long-lived assets
Payments for investments 311,628,442.49 55,000,000.00
Net increase in pledged loans granted
Net payments for the acquisition of
124
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
544,306,623.11 189,536,941.41
activities
Net cash generated from/used in
-77,094,287.62 -118,772,685.41
investing activities
3. Cash flows from financing activities:
Capital contributions received 300,000.00 2,350,000.00
Including: Capital contributions by
300,000.00 2,350,000.00
non-controlling interests to subsidiaries
Borrowings raised 48,000,000.00 77,600,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
48,300,000.00 79,950,000.00
financing activities
Repayment of borrowings 277,807,744.88
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
536,686,783.37 218,298,000.02
activities
Net cash generated from/used in
-488,386,783.37 -138,348,000.02
financing activities
4. Effect of foreign exchange rates
-4,698,084.75 122,951.25
changes on cash and cash equivalents
5. Net increase in cash and cash
-175,350,823.84 252,892,057.87
equivalents
Add: Cash and cash equivalents,
1,051,079,042.41 798,186,984.54
beginning of the period
6. Cash and cash equivalents, end of the
875,728,218.57 1,051,079,042.41
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
125
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2020 2019
1. Cash flows from operating activities:
Proceeds from sale of commodities
3,158,187,056.43 3,381,315,269.05
and rendering of services
Tax rebates 112,333,842.35 83,431,462.66
Cash generated from other operating
100,553,598.15 103,736,924.38
activities
Subtotal of cash generated from
3,371,074,496.93 3,568,483,656.09
operating activities
Payments for commodities and
2,140,803,641.40 2,259,948,774.41
services
Cash paid to and for employees 531,803,255.67 465,547,076.42
Taxes paid 151,834,032.77 146,779,499.56
Cash used in other operating
187,443,912.27 207,660,819.69
activities
Subtotal of cash used in operating
3,011,884,842.11 3,079,936,170.08
activities
Net cash generated from/used in
359,189,654.82 488,547,486.01
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 407,744,500.00 19,550,000.00
Return on investment 95,949,228.67 51,503,650.20
Net proceeds from the disposal of
fixed assets, intangible assets and other 9,787,055.02 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
513,480,783.69 71,093,980.20
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 183,152,607.04 50,654,548.37
long-lived assets
Payments for investments 328,313,442.49 55,000,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
126
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
activities
Subtotal of cash used in investing
511,466,049.53 105,654,548.37
activities
Net cash generated from/used in
2,014,734.16 -34,560,568.17
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 277,807,744.88
Interest and dividends paid 258,879,038.49 218,298,000.02
Cash used in other financing
activities
Subtotal of cash used in financing
536,686,783.37 218,298,000.02
activities
Net cash generated from/used in
-536,686,783.37 -218,298,000.02
financing activities
4. Effect of foreign exchange rates
-4,630,938.55 100,477.42
changes on cash and cash equivalents
5. Net increase in cash and cash
-180,113,332.94 235,789,395.24
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
803,264,792.72 983,378,125.66
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
7. Consolidated Statements of Changes in Owners’ Equity
2020
Unit: RMB
2020
Equity attributable to owners of the Company as the parent Non-c Total
Item
Share Other equity Capital Less: Other Specifi Surplu Genera Retain Subtot ontroll owners
Other
capita instruments reserve Treasu compr c s l ed al ing ’
127
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
l Prefe Perpe s ry ehensi reserve reserve reserve earnin interes equity
rred tual stock ve s gs ts
Other
share bond incom
s s e
1,399
1. Balance as at 231,60 776,26 836,55 1,700, 4,944, 26,674 4,970,
,346,
the end of the 8,173. 0,348. 9,645. 426,91 201,23 ,428.0 875,66
154.0
prior year 07 19 36 5.63 6.25 8 4.33
0
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction of
previous error
Adjustment
for business
combination
under common
control
Other
adjustments
1,399
2. Balance as at 231,60 776,26 836,55 1,700, 4,944, 26,674 4,970,
,346,
the beginning of 8,173. 0,348. 9,645. 426,91 201,23 ,428.0 875,66
154.0
the year 07 19 36 5.63 6.25 8 4.33
0
3. Increase/
-216,4 1,573, -94,99 58,035 1,319, 21,584 1,341,
decrease in the
50,658 128,18 2,605. ,146.8 720,06 ,406.4 304,47
period (“-” for
.17 5.42 81 5 8.29 5 4.74
decrease)
3.1 Total 1,573, 316,91 1,890, 1,895,
5,254,
comprehensive 128,18 4,185. 042,37 296,77
406.45
income 5.42 34 0.76 7.21
3.2 Capital
-216,4 -94,99 -311,4 16,330 -295,1
increased and
50,658 2,605. 43,263 ,000.0 13,263
reduced by
.17 81 .98 0 .98
owners
3.2.1
16,330 16,330
Ordinary shares
,000.0 ,000.0
increased by
0 0
owners
3.2.2
128
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
payments
included in
owners’ equity
-216,4 -94,99 -311,4 -311,4
3.2.4 Other 50,658 2,605. 43,263 43,263
.17 81 .98 .98
-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
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
129
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 15,157 2,349, 741,56 1,758, 6,263, 48,258 6,312,
,346,
the end of the ,514.9 388,53 7,039. 462,06 921,30 ,834.5 180,13
154.0
period 0 3.61 55 2.48 4.54 3 9.07
0
2019
Unit: RMB
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
Prefe Perp Treasu ehensi s ed Subtot g owners’
capita reserve c l Other
rred etual ry ve reserve earnin al interest equity
l Other s reserve reserve
share bond stock incom s gs s
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
130
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 73,000 68,569
-4,430, 68,569,
combination ,000.0 ,416.3
583.69 416.31
under common 0 1
control
Other
adjustments
1,399
2. Balance as at 231,60 587,01 809,45 1,649, 4,677, 4,699,2
,346, 22,054,
the beginning 8,173. 9,559. 6,186. 750,44 180,52 35,384.
154.0 862.93
of the year 07 29 20 8.70 1.26 19
0
3. Increase/
189,24 27,103 50,676 267,02
decrease in the 4,619,5 271,640
0,788. ,459.1 ,466.9 0,714.
period (“-” for 65.15 ,280.14
90 6 3 99
decrease)
3.1 Total 189,24 296,07 485,31
2,269,5 487,588
comprehensive 0,788. 7,926. 8,715.
65.15 ,280.16
income 90 11 01
3.2 Capital
increased and 2,350,0 2,350,0
reduced by 00.00 00.00
owners
3.2.1
Ordinary shares 2,350,0 2,350,0
increased by 00.00 00.00
owners
3.2.2
Capital
increased by
holders of other
equity
instruments
3.2.3
Share-based
131
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
payments
included in
owners’ equity
3.2.4
Other
27,103 -245,4 -218,2 -218,29
3.3 Profit
,459.1 01,459 98,000 8,000.0
distribution
6 .18 .02 2
3.3.1
27,103 -27,10
Appropriation
,459.1 3,459.
to surplus
6 16
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
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
132
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 231,60 776,26 836,55 1,700, 4,944, 4,970,8
,346, 26,674,
the end of the 8,173. 0,348. 9,645. 426,91 201,23 75,664.
154.0 428.08
period 07 19 36 5.63 6.25 33
0
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2020
Unit: RMB
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
133
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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/
decrease in the -158,785 1,573,14 -94,992, 68,376, 1,387,745,
period (“-” for ,143.53 6,670.33 605.81 915.38 836.37
decrease)
3.1 Total 327,25
1,573,14 1,900,402,
comprehensive 5,953.8
6,670.33 624.20
income 7
3.2 Capital
increased and -158,785 -94,992, -253,777,7
reduced by ,143.53 605.81 49.34
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
-158,785 -94,992, -253,777,7
3.2.4 Other
,143.53 605.81 49.34
-258,87
3.3 Profit -258,879,0
9,038.4
distribution 38.49
9
3.3.1
134
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
4. Balance as at 1,399,3 1,591,8
7,426,63 2,349,38 741,567, 6,089,614,
the end of the 46,154. 84,733.
5.62 9,658.23 039.55 220.89
period 00 49
2019
Unit: RMB
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/
decrease in the 189,218 27,103, 41,343,11 257,664,98
period (“-” for ,417.07 459.16 1.19 7.42
decrease)
3.1 Total
189,218 286,744,5 475,962,98
comprehensive
,417.07 70.37 7.44
income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary shares
increased by
136
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 27,103, -245,401, -218,298,00
distribution 459.16 459.18 0.02
3.3.1
Appropriation 27,103, -27,103,4
to surplus 459.16 59.16
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
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
137
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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, 776,242 836,559 1,523,507 4,701,868,3
the end of the 346,15
779.15 ,987.90 ,645.36 ,818.11 84.52
period 4.00
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
III Company profile
(I) Basic Information
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 7 April 2021.
(II) Consolidation Scope of Financial Statements
The consolidation scope of the financial statement during the Reporting Period including the Company and FSL
Chanchang Optoelectronics Co., Ltd. ( referred to as “Chanchang 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 Company”), FSL LIGHTING GmbH (referred to as “FSL
LIGHTING”), Foshan Haolaite Lighting Co., Ltd. (referred to as “Haolaite Company”), Hunan Keda New Energy
Investment and Development Co., Ltd. (referred to as “Hunan Keda”) in total 10 subsidiaries and one
sub-subsidiary Foshan Kelian New Energy Technology Co., Ltd. (referred to as “Foshan Kelian”) .
The consolidation scope of financial statements for the Reporting Period increases two subsidiaries Haolaite
Company and Hunan Keda and one sub-subsidiary Foshan Kelian, decreases one subsidiary Foshan Chansheng
Electronic Ballast Co., Ltd. ( referred to as “Chansheng Company”). For details, see relevant contents in Note VIII
“Changes in the consolidation scope”, and Note IX “Equities in other entities”.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company are based on the continuing operation, and are confirmed and measured
according to the actual transactions and events, the Accounting Standards for Business Enterprises - Basic
Standards, other various specific accounting standards, the application guide, the interpretation of accounting
standards for business enterprises (hereinafter referred to as the Accounting Standards for Business Enterprises).
And based on the following important accounting policies, and accounting estimations, they are prepared
according to the relevant regulations of Rules for the Information Disclosure of Companies Publicly Issuing
Securities No. 15 - General Provisions on Financial Reporting of China Securities Regulatory Commission
(Revised in 2014). Except the Cash Flow Statement prepared under the principle of cash basis, the rest of financial
statement of the Company are prepared under the principle of accrual basis.
The Company didn’t find anything like being suspicious of the ability of continuing operation within 12 months
from the end of the Reporting Period with all available information.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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:
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 expected credit loss of accounts receivables (Note 12.
Accounts Receivable), depreciation of fixed assets and amortization of intangible assets (Note 24. Fixed Assets
and Note 30. Intangible Assets), and recognition of revenue (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.
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
dilute, the retained earnings shall be adjusted.
If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger,
regard the share of the book value among final controller’s consolidated financial statement of the owner's equity
of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the stocks
issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term equity
investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is
insufficient to dilute, the retained earnings shall be adjusted.
2. Business Combinations not under the Same Control
The Company measured the paid assets as the consideration of business combination and liabilities happened or
undertaken by fair value. The difference between fair value and its book value shall be included into the current
losses and gains. The Company distributed combined cost on the purchasing date.
The difference of the combination cost greater than the fair value of the identifiable net assets of the acquiree
acquired is recognized as goodwill; the difference of the combination cost less than the fair value of the
identifiable net assets of the acquiree acquired is included into current losses and gains.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to
the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely to
flow into the Company and their fair values can be measured reliably, they shall be separately recognized and
measured in light of their fair values; intangible asset whose fair value can be measured reliably shall be
separately recognized as an intangible asset and shall measured in light of its fair value; As for the liabilities other
than contingent liabilities acquired from the acquiree, if the performance of the relevant obligations is likely to
result in any out-flow of economic benefits from the Company, and their fair values can be measured reliably,
they shall be separately recognized and measured in light of their fair values; As for the contingent liabilities of
the acquiree, if their fair values can be measured reliably, they shall separately recognized as liabilities and shall
be measured in light of their fair values.
6. Methods for Preparing Consolidated Financial Statements
1. Principle of Determining the Scope of Consolidation
The scope of consolidation of the consolidated financial statements of the Company is determined on the basis of
control. Control means that the investors has the right to invest in the investee and enjoy a variable return through
the participation of the relevant activities of the investee, and has the ability to use the power over the investee to
affect the amount of its return. The Company includes the subsidiaries with actual right of control (including
separate entity controlled by the Parent Company) into consolidated financial statements.
2. Principles, Procedures and Methods for the Preparation of Consolidated Statements
(1) Principles, Procedures and Methods for the Preparation of Consolidated Statements
All subsidiaries included into the scope of consolidated financial statements adopted same accounting policies and
fiscal year with the Company. If the accounting policies and fiscal year of the subsidiaries are different to the
Company’s, necessary adjustment should be made in accordance with the Company’s accounting policies and
fiscal year when consolidated financial statements are prepared.
The consolidated financial statements are based on the financial statements of the Parent Company and
subsidiaries included into the consolidated scope. The consolidated financial statements are prepared by the
Company who makes adjustment to long-term equity investment to subsidiaries by equity method according to
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
141
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
the Company.
For the balance formed because the current loss shared by the minority shareholders of the subsidiary is more than
the share enjoyed by the minority shareholders of the subsidiary in the initial shareholders’ equity, if the Articles
of Corporation or Agreement didn’t stipulate that minority shareholders should be responsible for it, then the
balance need to offset the shareholders’ equity of the Company; if the Articles of Corporation or Agreement
stipulated that minority shareholders should be responsible for it, then the balance need to offset the minority
shareholders’ equity.
(2) Treatment Method of Increasing or Disposing Subsidiaries during the Reporting Period
During the Reporting Period, if the subsidiaries were added due to Business combinations under the same control,
then initial book balance of consolidated balance sheet need to be adjusted; the income, expenses, and profits of
subsidiaries from the combination’s period-begin to the end of the reporting period need to be included into
consolidated income statement; the cash flow of subsidiaries from the combination’s period-begin to the end of
the reporting period need to be included into consolidated cash flow statement. if the subsidiaries were added due
to Business combinations not under the same control, then initial book balance of consolidated balance sheet
doesn’t need to be adjusted; the income, expenses, and profits of subsidiaries from the purchasing date to the end
of the reporting period need to be included into consolidated income statement; the cash flow of subsidiaries from
purchasing date to the end of the reporting period need to be included into consolidated cash flow statement.
During the Reporting Period, if the Company disposed the subsidiaries, then the income, expenses, and profits of
subsidiaries from period-begin to the disposal date need to be included into consolidated income statement; the
cash flow of subsidiaries from period-begin to the disposal date need to be included into consolidated cash flow
statement.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and be divided into
joint operations and joint ventures.
When the Company is the joint venture party of the joint operations, should recognize the following items related
to the interests share of the joint operations:
(1) Recognize the assets individually held and the assets jointly held by recognizing according to the holding
share;
(2) Recognize the liabilities undertook individually and the liabilities jointly held by recognizing according to the
holding share;
(3) Recognize the revenues occurred from selling the output share of the joint operations enjoy by the Company;
(4) Recognize the revenues occurred from selling the assets of the joint operations according to the holding share;
(5) Recognize the expenses individually occurred and the expenses occurred from the joint operations according
to the holding share of the Company.
When the Company is the joint operation party of the joint ventures, should recognize the investment of the joint
ventures as the long-term equity investment and be measured according g to the said methods of the notes of the
long-term equity investment of the financial statement.
8. Recognition Standard for Cash and Cash Equivalents
In the 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,
142
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
143
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
144
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 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 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
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
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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.
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 Expected Credit Loss is Made Individually
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Definition or amount criteria for an account Making separate expected credit loss for accounts receivable with a significant
receivable with a significant single amount single amount
Making separate expected credit loss for accounts For an account receivable with a significant single amount, the impairment test
receivable with a significant single amount shall be carried out on it separately. If there is any objective evidence of
impairment, the impairment loss is recognized and the expected credit loss 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 Expected Credit Loss is Withdrawn by Credit Risk Characteristics
Group name Withdrawal method of expected credit loss
Common transaction group Aging analysis method
Internal transaction group Other methods
In the groups, those adopting aging analysis method to withdraw expected credit loss:
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 Expected Credit Loss is Made
Independently
Reason of individually withdrawing expected credit loss There are definite evidences indicate the obvious difference of thee
return ability
Withdrawal method for expected credit loss Recognizing the impairment loss and withdrawing the expected credit
loss 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
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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.
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.
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
12. Accounts Receivable.
17. Contract Cost
Not applicable
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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
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
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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.
19. Investments in Debt Obligations
Not applicable
20. Other Investments in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
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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.
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
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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.
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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. 1. Initial
recognition of fixed assets The Company's fixed assets are initially measured at cost. Specifically, the costs of
purchased fixed assets include the purchase price, relevant taxes and fees, and other expenditures incurred before
the fixed assets reach the pre-determined serviceable condition that can be directly attributable to the assets. The
costs of self-built fixed assets contain the necessary expenditures incurred before the assets built reach their
pre-determined serviceable condition. If the amount paid for the purchase of fixed assets witnesses postponed
payment due to that the normal credit conditions are exceeded and is actually financing in nature, the costs of such
fixed assets shall be determined on the basis of the present value of the purchase price. The difference between the
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actual amount paid and the present value of the purchase price, except for the difference that should be capitalized,
shall be recognized as profit and loss of the current period during the credit period.
(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
25. Construction in Progress
1. Pricing of Construction in Progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carried forward
into fixed assets at the actual cost when reach intended usable condition. The borrowing expenses eligible for
capitalization incurred before the delivery of the construction are included in the construction cost; after the
delivery, the relevant interest expense shall be recorded into the current profits and losses.
2. Standard and Time of Construction in Progress Carrying Forward into Fixed Assets
The Company’s construction in progress is carried forward into fixed assets when the construction completes and
reaches intended usable condition. The criteria for determining the intended usable condition shall meet one of the
following:
(1) The physical construction (including installation) of fixed assets has been completed or substantially
completed;
(2) Has been produced or run for trial, and the results indicate that the assets can run normally or can produce
stable products stably, or the results of the trial operation show that it can operate normally;
(3) The amount of the expenditure on the fixed assets constructed is little or almost no longer occurring;
(4) The fixed assets purchased have reached the design or contract requirements, or basically in line with the
design or contract requirements.
3. Provision for Impairment of Construction in Progress
Please refer to Note 31: Long-term Asset Impairment under Note V for the impairment test method and provision
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
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differences arising from foreign currency borrowings. The borrowing costs incurred by the Company directly
attributable to the acquisition, construction or production of assets eligible for capitalization are capitalized and
included in the cost of the relevant assets. Other borrowing costs are recognized as expenses according to the
amount at the time of occurrence, and are included in the current profits and losses.
1. Principle of capitalization of borrowing costs
Borrowing costs can be capitalized when all the following conditions are met: Asset expenditure has already
occurred; borrowing costs have already occurred; construction or production activities necessary to bring the
assets to the intended useable or sellable status have already begun.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the capitalization of borrowing costs starting to the end of
capitalization, excluding the period when capitalization is suspended.
If assets that meet the conditions of capitalization are interrupted abnormally in the course of construction or
production, and the interruption time exceeds 3 consecutive months, the capitalization of borrowing costs shall be
suspended. The borrowing costs incurred during the interruption are recognized as expenses and included in
current profits and losses until the acquisition or construction of the assets is resumed. The capitalization of the
borrowing costs continues if the interruption is a procedure necessary for the purchase or production of assets
eligible for capitalization to meet the intended useable or sellable status.
The borrowing costs shall cease to be capitalized when the purchased or produced assets that meet the conditions
of capitalization meet the intended useable or sellable status. The borrowing costs incurred after the assets eligible
for capitalization meet the intended useable or sellable status can be included in the current profits and losses
when incurred.
3. Calculation method of capitalized amount of borrowing costs
During the period of capitalization, the capitalization amount of interests (including amortization of discounts or
premiums) for each accounting period is determined in accordance with the following provisions:
(1) For special borrowings for the acquisition or construction of assets eligible for capitalization, the interest
expenses actually incurred in the current period of borrowings shall be recognized after deducting the interest
income obtained by depositing the unused borrowing funds into the bank or investment income obtained from
temporary investment.
(2) Where the general borrowing is occupied for the acquisition or construction of assets eligible for capitalization,
the Company multiplies the weighted average of the asset expenditure of the accumulated asset expenditure
exceeding the special borrowing by the capitalization rate of the general borrowing to calculate the amount of
interest that should be capitalized for general borrowings. The capitalization rate is determined based on the
weighted average interest rate of general borrowings.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
Not applicable
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30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Recognition Criteria of Intangible Assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without
physical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to the
definition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into
the Company; (3) The costs of the assets can be measured reliably.
2. Initial Measurement of Intangible Assets
Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets, including the purchase price, relevant taxes and other expenses
directly attributable to the intended use of the asset. The payment of purchase price of intangible assets exceeding
normal credit terms is deferred, and the cost of intangible assets having financing nature in essence shall be
recognized based on the present value of the purchase price. The difference between the actual payment price and
the present value of the purchase price shall be recorded into the current profits and losses in the credit period
except that can be capitalized in accordance with the Accounting Standard for Business Enterprises No. 17 -
Borrowing Cost.
(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in the
investment contract or agreement, except that the value of the contract or agreement is unfair.
3. Subsequent Measurement of Intangible Assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets
is limited, and the years of the useful life or output that constitutes the useful life or similar measurement units
shall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term that
brings economic benefits to the Company is unforeseeable
Intangible assets with limited useful life shall be amortized by straight line method from the time when the
intangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertain useful
life shall not be amortized. The Company reviews the estimated useful life and amortization method of intangible
assets with limited useful life at the end of each year, and reviews the estimated useful life of intangible assets
with uncertain useful life in each accounting period. For intangible assets that evidence shows the useful life is
limited, the useful life shall be estimated and the intangible assets shall be amortized in the estimated useful life.
4. Recognition Criteria and Withdrawal Method of Intangible Asset Impairment Provision
The impairment test method and withdrawal method for impairment provision of intangible assets are detailed in
Note 31: Long-term asset impairment under Note V.
(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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
produced with the intangible asset have market or the proof of its usefulness if the intangible asset has market and
will be used internally;
(4) Having sufficient technical, financial resources and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred since meeting intangible assets
recognition criterion until reaching intended use. Expenditures that have been expensed in previous periods are no
longer adjusted.
Non-monetary assets exchange, debt restructuring, government subsidies and the cost of intangible assets acquired
by business combination are recognized according to relevant provisions of Accounting Standard for Business
Enterprises No. 7 - Non-monetary assets exchange, Accounting Standard for Business Enterprises No. 12 - Debt
restructuring, Accounting Standards for Business Enterprises No. 16 - Government subsidies, Accounting
Standard for Business Enterprises No. 20 - Business combination respectively.
31. Impairment of Long-term Assets
For non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited
useful life, investment real estate measured in cost mode and long-term equity investments in subsidiaries, joint
ventures and associates, the Company determines whether there is indication of impairment at balance sheet date.
If there is indication of impairment, then estimate the amount of its recoverable value and test the impairment.
Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached useable state
shall be tested for impairment every year, whether or not there is any indication of impairment.
If the impairment test results indicate that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be made at the difference and included in the impairment loss. The recoverable
amount is the higher of the fair value of the asset minus the disposal cost and the present value of the expected
future cash flow of the asset. The fair value of the asset is recognized according to the price of the sales agreement
in the fair trade; if there is no sales agreement but there is an active market, the fair value is recognized according
to the buyer’s bid of the asset; if there is no sales agreement or active market, the fair value of asset shall be
estimated based on the best information that can be obtained. Disposal costs include legal costs related to disposal
of assets, related taxes, handling charges, and direct costs incurred to enable the asset reaching sellable status. The
present value of the expected future cash flows of the assets is recognized by the amount discounted at appropriate
discount rate according to the expected future cash flows arising from the continuing use of the asset and the final
disposal. The provision for impairment of assets is calculated and recognized on the basis of individual assets. If it
is difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shall
be recognized by the asset group to which the asset belongs. The asset group is the smallest portfolio of assets that
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.
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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
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
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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
1. Accounting policies adopted in revenue recognition and measurement
The Company recognizes revenue when it has satisfied its performance obligations under the contract, i.e., when the
customer has obtained control of relevant goods or services. Obtaining control of relevant goods or services means
being able to direct the use of them and obtain substantially all of the benefits from them.
Where the contract contains two or more performance obligations, the Company, at the inception date of the
contract, allocates the transaction price to each performance obligation in accordance with the relative proportion of
the stand-alone selling price of the goods or services promised by each performance obligation. The Company
measures revenue on the basis of the transaction price allocated to each performance obligation.
Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer, excluding amounts collected on behalf of third parties and amounts
expected to be returned to the customer. The Company determines the transaction price in accordance with the terms
of the contract, with past business practices taken into account. When determining the transaction price, it considers
the impact of variable consideration, the existence of a significant financing component in the contract, non-cash
consideration, consideration payable to a customer and other factors. The transaction price is recognized only to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not
occur when the relevant uncertainty is resolved. Where a contract contains a significant financing component, the
Company determines the transaction price on the basis of the amount presumably payable in cash when the
customer obtains control of the goods or services, and uses the actual interest method to amortize the difference
between the transaction price and the contract consideration during the contract period.
A performance obligation is satisfied over time if one of the following conditions is met; otherwise, it is treated as
satisfied at a point in time:
(1) The customer simultaneously receives and consumes the benefits provided by the Company's performance as the
Company performs.
(2) The customer can control the goods as they are created during the Company's performance.
(3) The goods produced by the Company's performance have no alternative use, and the Company has the right to
collect payment for performance completed to date during the entire contract period.
Where a performance obligation is to be satisfied over time, the Company recognizes revenue in accordance with
the progress of performance during that period, except when the progress cannot be reasonably determined. In
determining the progress of performance, the Company takes into account the nature of the goods or services and
adopts the output methods or the input methods.
Where the performance progress cannot be reasonably determined, and the costs incurred are expected to be
recovered, the Company recognizes revenue according to the amount of the costs incurred until the progress can be
reasonably determined.
Where the performance obligation is to be satisfied at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether the customer has
obtained control of goods or services, the Company considers the following indicators:
(1) The Company has a present right to receive payment for the goods or services, i.e., the customer has a present
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
obligation to pay for the goods or services.
(2) The Company has transferred the legal ownership of the goods to the customer, i.e., the customer has obtained
the legal ownership of the goods.
(3) The Company has transferred physical possession of the goods to the customer, i.e., the customer has taken
physical possession of the goods.
(4) The Company has transferred significant risks and rewards of ownership of the goods to the customer, i.e., the
customer has obtained significant risks and rewards of ownership of the goods.
(5) The customer has accepted the goods or services.
2. Specific methods
(1) Recognition of domestic sales revenue: The Company has delivered goods that have passed inspection to the
purchaser as required by the purchaser; the amount of revenue has been determined, a sales invoice has been issued
and the payment has been received or is expected to be recovered.
(2) Recognition of export sales revenue: The Company has produced goods according to the requirements stipulated
in the sales contract, and completed the export declaration procedures after the goods have passed inspection; the
freight company has shipped the goods, the amount of revenue has been determined, an export sales invoice has
been issued, and the payment has been received or is expected to be recovered.
40. Government Subsidies
1. Category of Government Subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Company from the
government, which mainly include government subsidies related to assets and government subsidies related to
income.
2. Distinction Standard of Government Subsidies Related to Assets with Government Subsidies Related to Income
The government subsidies related to assets refer to the government subsidies obtained for acquisition, construction
or otherwise formation of long-term assets. The government subsidies related to income refer to the government
subsidies except the government subsidies related to assets.
The specific standard of classifying the government subsidies as subsidies related to assets: government subsidies
for acquisition, construction or otherwise formation of long-term assets.
The specific criteria that the Company classifies government subsidies as income related is: other government
subsidies other than asset-related government subsidies.
If the government documents do not specify the subsidy object, the bases that the Company classified the
government subsidies as assets-related subsidies or income-related subsidies were as follows: (1) If the specific
items for which the subsidy is targeted are stipulated in government documents, divide according to the relative
proportion of the amount of expenditure that forms assets and the amount of expenditure included in the cost in
the budget for that particular project, and the proportion shall be reviewed at each balance sheet date and changed
as necessary; (2) if the government documents only have a general statement of the purpose and do not specify a
specific project, the subsidy is recognized as government subsidy related to income.
3. Measurement of Government Subsidies
If a government subsidy is a monetary asset, it shall be measured according to the amount received or receivable.
If a government subsidy is a non-monetary asset, it shall be measured at its fair value, and shall be measured at a
nominal amount (RMB1) when the fair value cannot be obtained reliably.
For confirmed government subsidies that need to be returned, if there is relevant deferred income, the book
balance of related deferred income shall be written off and the excess shall be charged to profit or loss for the
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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. Accounting treatment of operating lease
(1) The lease fee paid by the Company for rented assets shall be apportioned using the straight-line method over
the entire lease term without deducting the rent-free period and shall be included in the current period expenses.
The initial direct costs related to the lease transaction paid by the Company are included in current expenses.
When the lessor of the asset assumes the lease-related expenses that should be borne by the Company, the
Company should deduct the part of the expenses from the total rental amount, and the deducted rental expenses
are apportioned during the lease term and included in the current expenses.
(2) The rental fees received by the company for leasing assets are apportioned on a straight-line basis over the
entire lease term without deducting the rent-free period and are recognized as lease income. The initial direct
expenses related to lease transactions paid by the company are included in the current expenses; if the amount is
larger, they are capitalized and are recorded in the current period in stages on the same basis as the recognition of
lease income during the entire lease period.
When the company assumes the lease-related expenses that should be borne by the lessee, the company deducts
the expenses from the total amount of rental income and allocates the deducted rental expenses during the lease
period.
(2) Accounting Treatments of Financial Lease
(1) Financing leased assets: on the lease starting date, the Company recorded the lower one of the fair value of the
leased asset and the present value of the minimum lease payments on the lease beginning date as the entering
value in an account, recognized the amount of the minimum lease payments as the entering value in an account of
long-term account payable, and treated the balance between the recorded amount of the leased asset and the
long-term account payable as unrecognized financing charges. The company adopted the effective interest method
to amortize the unrecognized financing expenses during the asset lease period and included it into financial
expenses.
(2) Assets leased by finance: On the lease beginning date, the Company recognized the financial lease receivables,
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
Accounting Standards for Business Enterprises
for preparation of financial statements to For details, refer to (3) of the Note 44.
Approved by the 35th Meeting of the 8th
implement it since 1 January 2018, required other Changes in Main Accounting Policies
Board of Directors
domestically listed enterprises to implement it and Estimates
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) 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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2019 1 January 2020 Adjusted
Current assets:
Monetary assets 1,131,305,521.09 1,131,305,521.09
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 24,268,554.00 24,268,554.00
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
Current portion of
non-current assets
Other current assets 69,375,238.73 69,375,238.73
Total current assets 3,592,923,718.75 3,592,923,718.75
Non-current assets:
Loans and advances to
customers
Investments in debt
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 630,001,778.81 630,001,778.81
Construction in progress 392,463,954.62 392,463,954.62
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
9,036,943.97 9,036,943.97
expense
Deferred income tax assets 40,007,412.46 40,007,412.46
Other non-current assets 9,861,098.08 9,861,098.08
Total non-current assets 2,885,031,654.57 2,885,031,654.57
Total assets 6,477,955,373.32 6,477,955,373.32
Current liabilities:
Short-term borrowings
Borrowings from the
central bank
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 55,615,216.17 2,065,579.05 -53,549,637.12
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Contract liabilities 49,696,889.89 49,696,889.89
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 17,374,063.48 17,374,063.48
Other payables 280,035,419.34 280,035,419.34
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 3,852,747.23 3,852,747.23
Total current liabilities 1,369,863,572.29 1,369,863,572.29
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 1,507,079,708.99 1,507,079,708.99
Owners’ equity:
Share capital 1,399,346,154.00 1,399,346,154.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 231,608,173.07 231,608,173.07
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 1,700,426,915.63 1,700,426,915.63
Total equity attributable to
owners of the Company as 4,944,201,236.25 4,944,201,236.25
the parent
Non-controlling interests 26,674,428.08 26,674,428.08
Total owners’ equity 4,970,875,664.33 4,970,875,664.33
Total liabilities and owners’
6,477,955,373.32 6,477,955,373.32
equity
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 43,441,342.76 43,441,342.76
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
Current portion of
non-current liabilities
Other current liabilities 3,317,371.24 3,317,371.24
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
171
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
(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
172
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or taxable
VAT 3%, 6%, 9%, 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
The Company, Zhida Company 15%
FSL Lighting GmbH 15%
Chansheng Company 20%
Other subsidiaries 25%
2. Tax Preference
The Company passed the re-examination for High-tech Enterprises in 2020, 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 2020.
Zhida Company passed the examination for High-tech Enterprises in December 2019, and thus Zhida Company
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 2020: 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.
173
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 14,800.25 18,281.85
Bank deposits 883,112,636.02 1,054,542,895.77
Other monetary assets(Note 1) 96,541,013.22 70,079,965.12
Unexpired interest(Note 2) 1,581,250.00 6,664,378.35
Total 981,249,699.49 1,131,305,521.09
Of which: Total amount deposited
1,127,886.79 1,232,977.34
overseas
Other notes
Note 1: Other monetary assets were security deposits for notes and performance bonds, as well as investments
placed with security firm and the balance with e-commerce platforms, of which the security deposits for notes 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
407,619,201.36 901,166,682.64
or loss
Including:
Debt instrument investments
Equity instrument investments
Wealth management products (note) 401,286,301.36 467,869,852.09
Structural deposits (note) 431,749,630.55
Others 6,332,900.00 1,547,200.00
Including:
Total 407,619,201.36 901,166,682.64
174
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Other notes:
The ending amount of held-for-trading financial assets was RMB-493,547,481.28, down 54.77% from the
beginning amount, primarily driven by a decrease in structured deposits.
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 140,972,143.00 109,444,480.94
Total 140,972,143.00 109,444,480.94
Note:
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
(3) Notes Receivable Pledged at the Period-end
Unit: RMB
Item Amount pledged at the period-end
Bank acceptance bill 57,702,279.27
Total 57,702,279.27
(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 80,164,112.05
Total 80,164,112.05
175
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(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
15,257,6 9,569,33 5,688,330 23,377,22 16,266,81 7,110,413.5
withdrawn bad debt 1.27% 62.72% 3.06% 69.58%
62.85 1.99 .86 3.66 0.09 7
provision separately
Of which:
Accounts receivable
1,185,34 56,797,2 1,128,544 740,781,1 35,716,29 705,064,85
withdrawn bad debt 98.73% 4.79% 96.94% 4.82%
2,187.03 82.19 ,904.84 45.60 2.66 2.94
provision by group
Of which:
(1) General business 1,185,34 56,797,2 1,128,544 740,781,1 35,716,29 705,064,85
98.73% 4.79% 96.94% 4.82%
portfolio 2,187.03 82.19 ,904.84 45.60 2.66 2.94
(2) Internal business
portfolio
1,200,59 66,366,6 1,134,233 764,158,3 51,983,10 712,175,26
Total 100.00% 5.53% 100.00% 6.80%
9,849.88 14.18 ,235.70 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
Customer A 14,220,827.14 8,532,496.28 60.00% Involved in the lawsuit,
176
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
the Company won the
lawsuit in the first
instance, and the other
side has appealed.
Involved in the lawsuit,
the Company won the
Customer B 1,036,835.71 1,036,835.71 100.00% case, but the counterpart
had no property for
repayment
Total 15,257,662.85 9,569,331.99 -- --
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk group 1,185,342,187.03 56,797,282.19 4.79%
Total 1,185,342,187.03 56,797,282.19 --
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) 1,097,460,394.68
1 to 2 years 44,704,753.46
2 to 3 years 32,964,657.02
Over 3 years 25,470,044.72
3 to 4 years 15,327,726.67
4 to 5 years 4,739,947.50
Over 5 years 5,402,370.55
Total 1,200,599,849.88
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Beginning Changes in the Reporting Period
Category Ending balance
amount Withdrawal Reversal or Write-off Other
177
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
recovery
Accounts
51,983,102.75 24,997,812.75 9,156,396.52 1,457,904.80 66,366,614.18
receivable
Total 51,983,102.75 24,997,812.75 9,156,396.52 1,457,904.80 66,366,614.18
Of which bad debt provision recovered or reversed with significant amount during Reporting Period:
Unit: RMB
Name Amount recovered or reversed Method
No. 1 8,541,244.40
No. 2 615,152.12
Total 9,156,396.52 --
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
No. 1 902,127.23
No. 2 545,941.76
No. 3 5,480.00
No. 4 2,858.68
No. 5 826.32
No. 6 367.27
Other retails accounts 303.54
Total 1,457,904.80
Note:
The approval procedure for the verification of accounts receivable during the Reporting Period had been performed in accordance
with provisions of the bad debt management system of the Company.
(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. 1 266,975,642.87 22.24% 8,009,269.29
No. 2 29,740,558.56 2.48% 892,216.76
No. 3 27,606,151.04 2.30% 828,184.53
No. 4 27,107,127.00 2.26% 813,213.81
No. 5 24,563,132.27 2.05% 736,893.97
178
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Total 375,992,611.74 31.33%
(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 9,193,885.82 76.65% 4,151,087.73 52.87%
1 to 2 years 355,870.31 2.97% 1,687,169.78 21.49%
2 to 3 years 1,081,261.45 9.01% 710,290.79 9.05%
Over 3 years 1,363,727.47 11.37% 1,302,842.48 16.59%
Total 11,994,745.05 -- 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 Prepayment time
Company (%)
No. 1 Non-related supplier 2,450,000.00 20.43% 2020
No. 2 Non-related supplier 686,250.00 5.72% 2020
No. 3 Non-related supplier 601,013.10 5.01% 2017-2019
No. 4 Non-related supplier 530,000.00 4.42% 2020
No. 5 Non-related supplier 516,148.86 4.30% 2020
Total 4,783,411.96 39.88%
179
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 20,194,968.19 24,268,554.00
Total 20,194,968.19 24,268,554.00
(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 195,141.85 8,154,485.23
Performance bond 4,166,580.10 3,236,931.10
Staff borrow and petty cash 7,866,311.07 5,991,107.91
Rent, water & electricity fees 3,389,778.15 1,686,102.59
Other 7,020,439.45 7,375,033.47
Total 22,638,250.62 26,443,660.30
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
595,234.83 1,579,871.47 2,175,106.30
2020
Balance of 1 January
2020 in the Current —— —— —— ——
Period
180
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Withdrawal of the
-95,772.42 363,948.55 268,176.13
Current Period
Balance of 31 December
499,462.41 1,943,820.02 2,443,282.43
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) 16,648,747.99
1 to 2 years 2,327,104.43
2 to 3 years 1,794,985.63
Over 3 years 1,867,412.57
3 to 4 years 1,361,587.47
4 to 5 years 70,024.80
Over 5 years 435,800.30
Total 22,638,250.62
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 2,175,106.30 268,176.13 2,443,282.43
Total 2,175,106.30 268,176.13 2,443,282.43
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
Name of the entity Nature Ending balance Aging
ending balance of bad debt provision
181
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
other receivables
(%)
No. 1 Other 2,305,195.33 Within 1 year 10.18% 69,155.86
No. 2 Petty cash 2,096,135.88 Within 1 year 9.26% 62,884.08
No. 3 Social insurance 1,645,606.53 Within 1 year 7.27% 49,368.19
No. 4 Petty cash 1,386,940.21 Within 1 year 6.13% 41,608.21
No. 5 Other 1,296,947.31 Within 4 years 5.73% 598,956.46
Total -- 8,730,825.26 -- 38.57% 821,972.80
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 177,234,228.73 2,901,800.45 174,332,428.28 124,826,657.81 2,426,340.03 122,400,317.78
Goods in process 40,969,288.80 40,969,288.80 32,861,535.80 32,861,535.80
Inventory goods 387,194,563.02 13,992,901.12 373,201,661.90 380,880,872.40 25,335,631.67 355,545,240.73
182
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Semi-finished
145,960,270.11 1,013,387.91 144,946,882.20 125,058,072.72 1,658,579.31 123,399,493.41
goods
Low priced and
easily worn 2,234,855.73 2,234,855.73 3,129,996.34 3,129,996.34
articles
Total 753,593,206.39 17,908,089.48 735,685,116.91 666,757,135.07 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 1,755,526.86 1,280,066.44 2,901,800.45
Inventory goods 25,335,631.67 5,312,819.41 16,655,549.96 13,992,901.12
Semi-finished
1,658,579.31 512,961.47 1,158,152.87 1,013,387.91
goods
Total 29,420,551.01 7,581,307.74 19,093,769.27 17,908,089.48
Item Basis for withdrawal of falling price reserves Reasons for reversal or write-off of Note
of inventory falling price reserves of inventory
The lower one between the inventory cost Sales or scrap of raw materials
Raw materials
and net realizable value
The lower one between the inventory cost Sales or scrap of products
Inventory goods
and net realizable value
Reasons for the provision for inventory depreciation: Provisions are set for the stagnancy of a few raw materials;
some inventory products become temporarily idle due to classification.
(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
183
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
Large bank deposit certificate (note) 90,417,315.07
Deductible input tax of VAT 84,673,053.78 66,732,905.17
Advance payment of enterprise income tax 2,642,333.56
Total 175,090,368.85 69,375,238.73
Other notes;
Bank deposit receipts of large amounts with a maturity of over three months which were transferable but not redeemable until
maturity.
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
184
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
ix 181,093,7 2,351,681 2,080,390 181,365,0
(Nanho) 25.43 .39 .50 16.32
Electronic
s Ltd.
181,093,7 2,351,681 2,080,390 181,365,0
Subtotal
25.43 .39 .50 16.32
181,093,7 2,351,681 2,080,390 181,365,0
Total
25.43 .39 .50 16.32
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Non-listed equity investment 5,054,176.40 711,571,895.07
Listed equity investment 3,300,446,853.66 743,168,346.39
Total 3,305,501,030.06 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
1,557,983,042.36
High-tech trading equity
instrument
Not satisfied with
the condition of
Xiamen Bank 10,971,417.60 1,155,652,990.20
trading equity
instrument
Stock of Not satisfied with
3,969,005.36 50,351,800.64
Everbright Bank the condition of
185
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
trading equity
instrument
Total 14,940,422.96 2,763,987,833.20
19. Other Non-current Financial Assets
Naught
20. Investment Property
Naught
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 685,707,548.55 630,001,778.81
Total 685,707,548.55 630,001,778.81
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I. Original carrying
value
1. Beginning
871,680,760.24 735,281,251.39 21,946,195.19 29,297,960.13 1,658,206,166.95
balance
2. Increased
81,478,751.39 50,410,269.14 767,306.06 2,689,384.81 135,345,711.40
amount of the period
(1) Purchase 24,147,841.67 713,675.06 1,777,696.48 26,639,213.21
(2) Transfer
from construction in 81,478,751.39 21,922,651.47 828,013.33 104,229,416.19
progress
(4) Others
4,339,776.00 53,631.00 83,675.00 4,477,082.00
(note)
3. Decreased
4,142,650.75 27,266,621.82 901,098.80 13,585.25 32,323,956.62
amount of the period
(1) Disposal or
4,142,650.75 25,551,698.74 901,098.80 13,585.25 30,609,033.54
scrap
186
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(2) Equipment
1,714,923.08 1,714,923.08
transformation
4. Ending balance 949,016,860.88 758,424,898.71 21,812,402.45 31,973,759.69 1,761,227,921.73
II. Accumulative
depreciation
1. Beginning
453,670,579.13 529,997,835.69 16,263,648.34 24,199,951.63 1,024,132,014.79
balance
2. Increased
35,612,870.12 37,795,438.69 1,132,067.85 2,222,228.73 76,762,605.39
amount of the period
(1) Withdrawal 35,612,870.12 37,795,438.69 1,132,067.85 2,222,228.73 76,762,605.39
3. Decreased
3,816,460.98 22,831,759.96 754,521.75 12,417.93 27,415,160.62
amount of the period
(1) Disposal or
3,816,460.98 21,730,426.57 754,521.75 12,417.93 26,313,827.23
scrap
(2) Equipment
1,101,333.39 1,101,333.39
transformation
4. Ending balance 485,466,988.27 544,961,514.42 16,641,194.44 26,409,762.43 1,073,479,459.56
III. Depreciation
reserves
1. Beginning
4,071,945.32 428.03 4,072,373.35
balance
3. Decreased
2,031,459.73 2,031,459.73
amount of the period
(1) Disposal or
2,020,577.18 2,020,577.18
scrap
(2) Equipment
10,882.55 10,882.55
transformation
4. Ending balance 2,040,485.59 428.03 2,040,913.62
IV. Carrying value
1. Ending carrying
463,549,872.61 211,422,898.70 5,171,208.01 5,563,569.23 685,707,548.55
value
2. Beginning
418,010,181.11 201,211,470.38 5,682,546.85 5,097,580.47 630,001,778.81
carrying value
Note: “Other” refers to physical assets such as machinery equipment input by Foshan NationStar Optoelectronics Co., Ltd. to Foshan
Haolaite
187
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(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 7,076,654.88 5,462,065.44 1,568,283.13 46,306.31
production line
Total 7,076,654.88 5,462,065.44 1,568,283.13 46,306.31
(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
Fuwan standard workshop J3 and K1, Gaoming Family Housing Building Eight and Fuwan Employee Dormitory
Seven have been put into use and carried over fixed assets. As of 31 December 2020, relevant certificates of
property were in procedure. The management layer is of the opinion that there is no substantial legal impediment
in the procedure of certificates as well as no significant negative influence to the normal operation of the
Company.
(6) Disposal of Fixed Assets
Naught
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 503,941,120.31 392,463,954.62
Total 503,941,120.31 392,463,954.62
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item
Carrying amount Depreciation Carrying value Carrying amount Depreciation Carrying value
188
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
reserves reserves
Construction in
503,941,120.31 503,941,120.31 392,463,954.62 392,463,954.62
progress
Total 503,941,120.31 503,941,120.31 392,463,954.62 392,463,954.62
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Proporti
which:
on of Accumul Capitaliz
amount
accumul ative ation rate
Transferr of
Beginnin Other ative amount of
Increase ed in Ending Job capitaliz Capital
Item Budget g decrease investme of interests
d amount fixed balance schedule ed resources
balance d amount nt in interest for the
assets interests
construct capitaliz Reportin
for the
ions to ation g Period
Reportin
budget
g Period
Kelian 726,738, 273,433, 175,162, 448,595, 24,783,1 11,857,7
67.28% 95.00% 3.30% Other
Building 900.00 344.46 020.50 364.96 97.62 55.40
Gaoming
R&D
worksho 45,000,0 30,853,9 756,878. 31,610,8
73.81% 85.00% Other
p 11, 12, 00.00 31.43 08 09.51
13, 14
and 18
Gaoming
115,530, 5,236,80 5,236,80
Office 4.59% 0.00% Other
000.00 1.98 1.98
Building
48 tons
electric
melting
furnace 7,766,00 4,295,52 425,598. 4,721,11
68.70% 80.00% Other
(18025) 0.00 0.36 73 9.09
Gaoming
tank
furnace
Fuwan
intellige
57,575,0 46,708,0 1,947,29 48,655,3
nt 91.90% 100.00% Other
00.00 62.10 0.26 52.36
worksho
pH
189
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Automat
ic system
of
intellige
nt
21,920,0 11,117,8 7,351,78 18,469,6
producti 96.97% 100.00% Other
00.00 40.76 2.99 23.75
on
worksho
p
(worksh
op H)
Upgradi
ng and
reconstru
ction
5,780,00 4,161,54 4,161,54
project 78.48% 100.00% Other
0.00 2.67 2.67
of the
road in
Gaoming
Plant
Upgradi
ng
project
in Local
6,500,00 5,408,81 606,635. 6,015,45
roads 98.76% 100.00% Other
0.00 5.09 34 0.43
and
greening
of
Gaoming
Upgradi
ng
project
of
Standard 4,200,00 3,502,56 350,642. 3,853,21
100.00% 100.00% Other
C 0.00 8.80 20 1.00
worksho
p
external
facade
Reconstr
uction 7,380,16 5,056,05 5,056,05
77.08% 100.00% Other
project 9.12 9.68 9.68
of the
190
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
main
road
from the
west gate
to the
south
gate of
Gaoming
Plant
Section
II of the
upgradin
g and
reconstru
ction
project
of the
external
faade of
the
factory
next to
the main
3,394,20 2,836,61 2,836,61
road 91.09% 100.00% Other
0.00 1.96 1.96
from the
west gate
to the
south
gate of
Gaoming
Plant
(motor
vehicle
lamps,
bidding
B and
bidding
G)
Project
of
building 2,820,75 1,982,05 633,218. 2,615,27
100.00% 100.00% Other
the 2.94 3.85 53 2.38
greening
park for
191
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
leisure
and sport
in
Gaoming
Branch
Plant
Section I
of the
upgradin
g and
reconstru
ction
project
of the
external
faade of
the
factory 2,377,80 2,049,62 2,049,62
93.96% 100.00% Other
next to 0.00 3.40 3.40
the main
road
from the
west gate
to the
south
gate of
Gaoming
Plant
(luminari
es, T8)
1,006,98 377,302, 206,574, 87,697,2 6,015,45 490,164, 24,783,1 11,857,7
Total -- -- --
2,822.06 136.85 706.32 97.20 0.43 095.54 97.62 55.40
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught
(4) Engineering Materials
Naught‘
192
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
Non-patent
Item Land use right Patent Software Others Total
technology
I. Original
carrying value
1. Beginning
233,741,723.60 200,000.00 2,773,651.87 236,715,375.47
balance
2. Increased
amount of the 1,823,767.58 7,622,600.00 9,446,367.58
period
(1) Purchase 1,823,767.58 1,823,767.58
(2) Internal
R&D
(3) Business
combination
increase
(4) Others
7,622,600.00 7,622,600.00
(note)
3. Decreased
amount of the 1,542,630.92 200,000.00 1,742,630.92
period
(1) Disposal 200,000.00 200,000.00
(2) Others 1,542,630.92 1,542,630.92
4. Ending
232,199,092.68 4,597,419.45 7,622,600.00 244,419,112.13
balance
193
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
II. Accumulated
amortization
1. Beginning
66,689,185.37 200,000.00 1,999,690.36 68,888,875.73
balance
2. Increased
amount of the 4,566,539.40 215,737.03 254,086.67 5,036,363.10
period
(1)
4,566,539.40 215,737.03 254,086.67 5,036,363.10
Withdrawal
3. Decreased
amount of the 200,000.00 200,000.00
period
(1) Disposal 200,000.00 200,000.00
4. Ending
71,255,724.77 2,215,427.39 254,086.67 73,725,238.83
balance
III. Depreciation
reserves
1. Beginning
balance
2. Increased
amount of the
period
(1)
Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending
balance
IV. Carrying
value
1. Ending
160,943,367.91 2,381,992.06 7,368,513.33 170,693,873.30
carrying 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.
Note: Others refer to the marketing channels and human resources invested in Foshan Haolaite Lighting Co., Ltd. by NationStar.
194
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(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
Expense on
maintenance and 7,226,950.71 10,040,169.96 6,438,345.58 10,828,775.09
decoration
Other 1,809,993.26 2,358,490.54 1,586,032.66 2,582,451.14
Total 9,036,943.97 12,398,660.50 8,024,378.24 13,411,226.23
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for impairment
88,758,899.69 14,118,876.93 93,501,133.41 14,445,360.64
of assets
Unrealized profit of
5,784,713.24 867,706.99 1,885,791.90 282,868.80
internal transactions
Undistributed deficit 20,735,316.21 5,183,829.06 12,414,702.31 3,103,675.58
Depreciation of fixed
71,106,985.78 10,810,152.06 76,057,614.11 11,908,759.43
assets
Payroll payable 61,821,414.20 9,273,212.13 68,444,986.72 10,266,748.01
Total 248,207,329.12 40,253,777.17 252,304,228.45 40,007,412.46
195
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(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
financial assets recorded
2,758,137,833.20 413,720,674.97 913,227,044.60 136,984,056.70
into other comprehensive
income
Changes in fair value of
held-for-trading financial 6,332,900.00 949,935.00 1,547,200.00 232,080.00
assets
Total 2,764,470,733.20 414,670,609.97 914,774,244.60 137,216,136.70
(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
40,253,777.17 40,007,412.46
assets
Deferred income tax
414,670,609.97 137,216,136.70
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Naught
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Naught
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserve value amount reserve value
196
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
10,401,758.4 10,401,758.4
Prepayments for business facilities 9,861,098.08 9,861,098.08
7 7
Assets of subsidiaries to be cleared and
1,022,085.15 1,022,085.15
cancelled
11,423,843.6 11,423,843.6
Total 9,861,098.08 9,861,098.08
2 2
32. Short-term Borrowings
Naught
33. Held-for-trading Financial Liabilities
Naught
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 480,971,214.80 374,665,327.74
Total 480,971,214.80 374,665,327.74
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 1,059,674,020.99 559,016,692.70
Total 1,059,674,020.99 559,016,692.70
Other notes:
The ending amout of accounts payable was RMB500,657,328.29, up 89.56% from the beginning amount, primarily because the
Company increased its procurement volume and the prices of materials went up in the current period.
197
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(2) Significant Accounts Payable Aging over One Year
Naught
37. Advances from Customer
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 1,285,357.28 2,065,579.05
Total 1,285,357.28 2,065,579.05
(2) Significant Advances from Customers Aging over One Year
Naught
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 65,777,726.45 49,696,889.89
Total 65,777,726.45 49,696,889.89
39. Employee Benefits Payable
(1) List of Employee Benefits Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 83,156,852.86 669,630,701.67 670,302,464.06 82,485,090.47
II. Post-employment
benefit-defined 21,447,593.89 21,447,593.89
contribution plans
Total 83,156,852.86 691,078,295.56 691,750,057.95 82,485,090.47
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus, 82,843,966.12 615,410,323.53 616,122,894.86 82,131,394.79
198
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
allowance, subsidy
2. Employee welfare 20,680,728.67 20,680,728.67
3. Social insurance 19,060,245.60 19,060,245.60
Of which: Medical
13,821,028.32 13,821,028.32
insurance premiums
Work-re
424,250.53 424,250.53
lated injury insurance
Materni
4,814,966.75 4,814,966.75
ty insurance
4. Housing fund 10,651,740.65 10,651,740.65
5. Labor union budget
and employee education 312,886.74 3,827,663.22 3,786,854.28 353,695.68
budget
Total 83,156,852.86 669,630,701.67 670,302,464.06 82,485,090.47
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 21,006,600.51 21,006,600.51
2. Unemployment
440,993.38 440,993.38
insurance
Total 21,447,593.89 21,447,593.89
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 7,470,456.34 2,848,860.13
Corporate income tax 6,753,904.80 12,419,827.14
Personal income tax 1,009,832.30 758,007.93
Urban maintenance and construction tax 1,174,681.01 385,734.01
Education surcharge 845,486.44 281,417.17
199
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Property tax 315,798.24 264,468.41
Land use tax 187,752.00 187,752.00
Other 1,118,746.38 227,996.69
Total 18,876,657.51 17,374,063.48
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 76,668,330.66 280,035,419.34
Total 76,668,330.66 280,035,419.34
(1) Interest Payable
Naught
(2) Dividends Payable
Naught
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Performance bond 42,365,111.53 37,741,485.45
Relevant expense of sales 3,143,336.62 3,323,583.65
Compensation for lawsuit 1,082,784.95 1,126,231.95
Other 30,077,097.56 237,844,118.29
Total 76,668,330.66 280,035,419.34
2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
Company A 8,000,000.00 The contract is not settled yet
Total 8,000,000.00 --
200
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Other notes:
The ending amout of other payables was RMB-203,367,088.68, down 72.62% from the beginning amount, primarily because Hunan
Keda repaid a loan to its former shareholder Guangdong Huajian Enterprise Group Co., Ltd.
42. Liabilities Held for sale
Naught
43. Current Portion of Non-current Liabilities
Naught
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT 5,503,702.07 3,852,747.23
Total 5,503,702.07 3,852,747.23
45. Long-term Borrowings
Naught
46. Bonds Payable
Naught
47. Lease Liabilities
Naught
48. Long-term Payables
Naught
49. Long-term Employee Benefits Payable
Naught
50. Provisions
Naught
201
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
51. Deferred Income
Naught
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Liabilities of subsidiaries to be cleared and
1,244,064.84
cancelled
Total 1,244,064.84
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
Other notes:
The unrestricted shares increased 483,855 shares since shares held by former directors and senior management of the Company were
freed from lock-in-period as required during the Reporting Period.
54. Other Equity Instruments
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
224,362,201.53 216,450,658.17 7,911,543.36
(premium on stock)
Other capital reserves 7,245,971.54 7,245,971.54
Total 231,608,173.07 216,450,658.17 15,157,514.90
Other notes, including changes and reasons thereof:
Primarily because the premium of the Company’s acquisition of the 100% equity of Hunan Keda in a business combination
involving entities under common control was charged to capital premium in the Reporting Period.
202
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 1,850,760, 277,614,1 1,573,146, 2,349,38
that may not subsequently be
.90 788.60 18.27 670.33 9,658.23
reclassified to profit or loss
Changes in fair value of
776,242,987 1,850,760, 277,614,1 1,573,146, 2,349,38
other equity instrument
.90 788.60 18.27 670.33 9,658.23
investment
II. Other comprehensive income
-1,124.6
that may subsequently be 17,360.29 -18,484.91 -18,484.91
2
reclassified to profit or loss
Differences arising from
translation of foreign -1,124.6
17,360.29 -18,484.91 -18,484.91
currency-denominated financial 2
statements
Total of other comprehensive 776,260,348 1,850,742, 277,614,1 1,573,128, 2,349,38
income .19 303.69 18.27 185.42 8,533.61
Other notes, including the adjustment of the effective gain/loss on cash flow hedges to the initial recognized amount:
The ending balance of other comprehensive income was RMB1,573,128,185.42 increasing 202.65% compared with that at the
beginning of the period, mainly due to the remarkable rise of the ending fair value of stocks in Guoxuan High-tech and Xiamen Bank
held by the Company.
203
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 94,992,605.81 41,893,962.55
reserves
Total 836,559,645.36 94,992,605.81 741,567,039.55
Notes including changes and reasons thereof:
Notes: 1. In line with the Company's Articles of Association, if the Company's accumulative statutory surplus reserve exceeds the
Company's registered capital by over 50%, withdrawal is not required any more.
2. Business combination under common control takes place during the reporting period. The premium of the Company's incoming
purchase of 100% equities of Hunan Keda will offset the capital premium, and the part that was not offset will offset the
discretionary surplus reserve of RMB94,992,605.81.
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
1,700,426,915.63 1,654,181,032.39
adjustments
Total retained earnings at the beginning of
-4,430,583.69
adjustments (“+” for increase, “-“ for decrease)
Beginning balance of retained earnings after
1,700,426,915.63 1,649,750,448.70
adjustments
Add: Net profit attributable to owners of the
316,914,185.34 296,077,926.11
Company as the parent
Less: Statutory surplus reserves withdrawn 27,103,459.16
Dividend of ordinary shares payable 258,879,038.49 218,298,000.02
Ending retained earnings 1,758,462,062.48 1,700,426,915.63
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.
204
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(4) RMB-4,430,583.69 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 3,699,836,965.57 2,957,658,247.04 3,297,051,289.16 2,525,597,166.33
Other operations 45,077,487.15 38,615,663.76 40,525,458.50 34,915,886.23
Total 3,744,914,452.72 2,996,273,910.80 3,337,576,747.66 2,560,513,052.56
Whether the lower of the net profit before and after deduction of non-recurring gains and losses through audit is negative
□ Yes √ No
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 12,797,350.61 13,718,448.61
Education surcharge 5,487,588.14 5,875,150.20
Property tax 8,136,199.68 7,253,138.07
Land use tax 5,170,804.93 5,170,993.34
Vehicle and vessel use tax 15,852.28 8,963.29
Stamp duty 2,847,363.44 2,069,121.21
VAT of land 414,132.63
Environmental protection tax 101,985.20 143,335.69
Levee protection fees 212.76
Local education surcharge 3,660,351.56 3,916,753.75
Total 38,631,841.23 38,155,904.16
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Freight 72,159,943.87
Employee benefits 62,699,560.82 59,514,723.34
205
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Business propagandize fees and
23,567,538.03 45,672,213.07
advertizing fees
Sales promotion fees 10,124,091.58 18,636,028.73
Business travel charges 9,248,697.83 14,446,070.14
Dealer meeting expense 974,212.62 3,071,651.46
Commercial insurance premium 5,257,100.62 2,954,194.12
Other 33,348,498.85 27,369,470.69
Total 145,219,700.35 243,824,295.42
Note: The Company starts to implement the new standards governing revenue since 1 January 2020 and it will be transferred to cost
of sales with the freight in relation to contract performance for accounting.
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 89,335,431.10 85,589,824.43
Depreciation charge 16,796,115.88 15,750,023.49
Office expenses 14,548,829.21 15,207,413.51
Party construction funds 5,050,315.69 0.00
Rent of land and management charge 5,822,250.99 5,704,743.98
Amortization of intangible assets 5,036,363.10 4,898,777.47
Engineering decoration cost 4,504,630.47 3,089,457.07
Other 14,271,437.31 18,946,229.95
Total 155,365,373.75 149,186,469.90
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 64,755,944.49 56,240,623.29
Certification and testing fee 12,746,279.58 6,986,168.45
Material consumption 8,251,441.92 5,534,108.08
Expense on equipment debugging 7,866,127.63 7,388,906.41
Depreciation and long-term prepaid
6,884,584.37 663,707.88
expense
Charges related to patents 1,970,723.98 607,081.96
206
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Other 6,410,194.74 2,023,665.73
Total 108,885,296.71 79,444,261.80
Other notes:
1. 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.
2. R&D expense stood at RMB29,441,034.91 in the current period, up 37.06% year-on-year, primarily driven by a considerable
increase of input in R&D, expansion of R&D teams and R&D projects, etc.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense
Less: Interest income 37,650,815.03 24,425,342.69
Foreign exchange gains or losses 30,819,758.83 -4,684,048.90
Other 1,207,770.75 1,384,624.80
Total -5,623,285.45 -27,724,766.79
Other notes:
The finance costs increased RMB22,101,481.34 compared with that of the same period of last year, mainly due to increase in foreign
exchange losses driven by appreciation of Renminbi and increase of export business.
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Supporting fund for import and export 3,674,307.07 5,228,150.25
Subsidies for position training of
5,541,000.00
employees
Foshan's funds for promotion of robot
4,988,602.00 1,278,519.00
application and industrial development
Foshan's special funds for supporting
3,000,000.00
industrial Internet development
Subsidy for stabilizing posts 2,907,529.01
Chancheng District's funds for supporting
example setting and quality improvement
1,422,900.00
of high-tech enterprises (towns and streets)
in 2018
207
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Foshan's funds for supporting
municipal-level development of industrial 1,000,000.00
design
Chancheng District's government quality
1,000,000.00
award in 2019
Rewards of “Competition among Hundreds
500,000.00 700,000.00
of Enterprises”
Other 4,955,190.12 3,995,586.00
Total 28,989,528.20 11,202,255.25
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
2,351,681.39 1,755,751.49
accounted by equity method
Investment income from holding of
1,750,000.00
held-for-trading financial assets
Investment income from disposal of
13,550,000.00
held-for-trading financial assets
Dividend income from holding of other equity
14,940,422.96 18,510,954.80
instrument investment
Income received from financial products and
23,451,129.06 29,554,019.01
structural deposits
Other 3,492,971.49 -4,242,300.00
Total 44,236,204.90 60,878,425.30
69. Net Gain on Exposure Hedges
Naught
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Held-for-trading financial assets 4,785,700.00 2,024,400.00
Total 4,785,700.00 2,024,400.00
208
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables -268,176.13 -774,487.72
Bad debt loss of accounts receivable -15,841,416.23 -3,076,684.86
Total -16,109,592.36 -3,851,172.58
Other notes:
The credit impairment losses in the current period grow by 318.30% from the previous period to RMB12,258,419.78, which is
mainly because that the increased credit lines of some domestic customers and the remarkable growth of export business with longer
payment days cause an increase in the base figure of accounts receivable.
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
-7,581,307.74 -14,846,135.46
contract performance cost
V. Loss on fixed asset impairment -1,829,080.06
Total -7,581,307.74 -16,675,215.52
Other notes:
The asset impairment losses in the current period drop by 54.54% from the previous period to RMB-9,093,907.78, which is mainly
because that the centralized disposal of many overstocked products in the current period leads to less unrealized losses of provisions
for inventories that stay in the warehouse for long compared with the previous period.
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets 9,090,874.79
Total 9,090,874.79
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 57,720.00 511,260.31 57,720.00
Total income from scrap of 48,168.04 48,168.04
209
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
non-current assets
Of which: Income from scrap of
48,168.04 48,168.04
fixed assets
Other 2,058,806.15 2,560,885.30 2,058,806.15
Total 2,164,694.19 3,072,145.61 2,164,694.19
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
industry that
the state
Production encouraged
line of 50 and
million supported, Related to
Subsidy No No 155,000.31
energy-savin gained assets
g fluorescent subsidy
lamp (obtaining in
line with the
law and the
regulations of
national
policy)
Subsidy from
Other R&D
miscellaneou technical Related to
Reward No No 57,720.00 356,260.00
s government updating and income
grants transformatio
n, etc.
75. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Donations 104,364.08 111,946.90 104,364.08
210
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Total losses from scrap of
1,672,244.18 413,275.62 1,672,244.18
non-current assets
Of which: Losses from scrap of
1,672,244.18 413,275.62 1,672,244.18
fixed assets
Losses on inventories 291,692.80 2,618,995.48 291,692.80
Delaying payment 556.29 230,330.34 556.29
Penalty 26,000.00 7,095.00 26,000.00
Other 1,759,560.64 2,135,600.60 1,759,560.64
Total 3,854,417.99 5,517,243.94 3,854,417.99
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 46,120,717.25 47,448,443.11
Deferred income tax expense -406,009.72 -484,809.64
Total 45,714,707.53 46,963,633.47
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 367,883,299.32
Current income tax expense accounted at statutory/applicable tax
55,182,494.90
rate
Influence of applying different tax rates by subsidiaries 4,536,989.31
Influence of income tax before adjustment -2,601,564.42
Influence of non-deductable costs, expenses and losses -5,041,533.99
Influence of deductable losses of unrecognized deferred income
667,214.25
tax at the beginning of the Reporting Period
Influence of R&D expense deduction -4,901,045.91
Regarded as sales 438,192.27
Investment income and final dividend -2,566,038.88
Income tax expense 45,714,707.53
211
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
77. Other Comprehensive Income
Refer to Note 57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Deposit interest 38,946,211.76 17,817,845.30
Government grants 29,323,585.92 12,161,459.24
Income from waste 18,500,712.83 15,659,638.44
Margin income 12,240,049.79 14,050,387.86
Property and rental income 9,828,318.01 8,290,054.43
Income from insurance compensation 21,871.82 1,379,315.03
Land purchase and recognition of accounts
41,755,700.00
thereof
Front money received from Chuanglian
8,000,000.00
Real Estate
Other 10,805,467.01 10,636,948.73
Total 119,666,217.14 129,751,349.03
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 51,683,094.67 58,172,206.27
Selling expense paid in cash 139,896,500.31 156,269,017.78
Finance costs paid in cash 509,435.98 361,714.92
Returned cash deposit 8,933,825.48 16,375,903.00
Other 6,746,686.92 3,181,687.68
Total 207,769,543.36 234,360,529.65
(3) Cash Generated from Other Investing Activities
Naught
212
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(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 322,168,591.79 298,347,491.26
Add: Provision for impairment of assets 23,690,900.10 20,526,388.10
Depreciation of fixed assets, oil-gas
76,762,605.39 64,837,850.34
assets, and productive living assets
Depreciation of right-of-use assets
Amortization of intangible assets 5,036,363.10 4,898,777.47
Amortization of long-term prepaid
8,024,378.24 7,144,022.07
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term assets -9,090,874.79
(gains: negative)
Losses from scrapping of fixed assets
1,624,076.14 413,275.62
(gains: negative)
Losses from changes in fair value
-4,785,700.00 -2,024,400.00
(gains: negative)
Finance costs (gains: negative)
Investment loss (gains: negative) -44,236,204.90 -60,878,425.30
Decrease in deferred income tax assets
-246,364.71 -716,889.64
(increase: negative)
Increase in deferred income tax 717,855.00 232,080.00
213
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
liabilities (“-” for decrease)
Decrease in inventory (“-” for increase) -105,929,840.59 115,136,879.48
Decrease in operating receivables (“-”
86,704,874.15 261,708,815.89
for increase)
Increase in operating payables (“-” for
34,387,672.98 -199,736,073.24
decrease)
Others
Net cash generated from/used in
394,828,331.90 509,889,792.05
operating activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
Transfer of debts into capital
Current portion of convertible corporate
bonds
Fixed assets leased in for financing
3.Net increase/decrease of cash and cash
-- --
equivalents:
Ending balance of cash 875,728,218.57 1,051,079,042.41
Less: Beginning balance of cash 1,051,079,042.41 798,186,984.54
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents -175,350,823.84 252,892,057.87
(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 875,728,218.57 1,051,079,042.41
214
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Including: Cash on hand 14,800.25 18,281.85
Bank deposit on demand 870,224,197.60 1,048,653,895.46
Other monetary assets on demand 5,489,220.72 2,406,865.10
III. Ending balance of cash and cash
875,728,218.57 1,051,079,042.41
equivalents
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposit of notes, letter of
Monetary assets 104,962,316.07
guarantee, etc.
Notes receivable 57,702,279.27 Pledged for notes pool
Total 162,664,595.34 --
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 -- -- 2,077,769.18
Of which: USD 294,561.17 6.5249 1,921,982.18
EUR 19,412.71 8.025 155,787.00
HKD
Accounts receivable -- -- 445,612,167.02
Of which: USD 68,294,099.07 6.5249 445,612,167.02
EUR
HKD
Long-term borrowings -- --
215
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Of which: USD
EUR
HKD
Prepayments 542,684.22
Of which: USD 83,171.27 6.5249 542,684.22
Contract liabilities 19,592,137.86
Of which: USD 3,002,672.51 6.5249 19,592,137.86
(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
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Naught
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Type Amount Presented in Charged to current profit or loss
Other miscellaneous
57,720.00 Non-operating income 57,720.00
government grants
Supporting fund for import and
3,674,307.07 Other income 3,674,307.07
export
Subsidies for position training
5,541,000.00 Other income 5,541,000.00
of employees
Foshan's funds for promotion of
robot application and industrial 4,988,602.00 Other income 4,988,602.00
development
Foshan's special funds for
supporting industrial Internet 3,000,000.00 Other income 3,000,000.00
development
Subsidy for stabilizing posts 2,907,529.01 Other income 2,907,529.01
Chancheng District's funds for
1,422,900.00 Other income 1,422,900.00
supporting example setting and
216
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
quality improvement of
high-tech enterprises (towns
and streets) in 2018
Foshan's funds for supporting
municipal-level development of 1,000,000.00 Other income 1,000,000.00
industrial design
Chancheng District's
government quality award in 1,000,000.00 Other income 1,000,000.00
2019
Rewards for “Competition
among Hundreds of 500,000.00 Other income 500,000.00
Enterprises”
Others 4,955,190.12 Other income 4,955,190.12
Total 29,047,248.20 29,047,248.20
(2) Return of Government Grants
□ Applicable √ Not applicable
85. Other
Naught
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
217
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Naught
(6) Other Notes
Naught
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Income from Net profits
the from the Income of the Net profits of
Recognition
period-begin period-begin acquiree the acquiree
Combined Proportion of Combination basis of
Basis ning to the ning to the during the during the
party the equity date combination
combination combination period of period of
date
date of the date of the comparison comparison
acquiree acquiree
The date
when the
Hunan Keda ownership
New Energy Under the transfer
Investment control of the 31 December conditions
100.00% -5,613,743.03 -5,104,980.13
and same actual 2020 are satisfied
Development controller stipulated in
Co., Ltd. the
acquisition
agreement
(2) Combination Cost
Note to contingent consideration and the changes:
The Company acquired 100% equities of Hunan Keda, with the agreed acquisition consideration reaching RMB311,628,400. Since it
was a combination under common control, the Company determined the initial investment cost of RMB57,850,700 in line with the
shares of Hunan Keda's book net assets on the combination date.
218
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Hunan Keda New Energy Investment and Development Co., Ltd.
Combination date Period-end of the last period
Assets: 490,497,684.79 302,755,365.08
Monetary assets 14,374,800.50 5,848,858.45
Fixed assets 117,681.70 169,680.46
Other receivables 135,829.25 1,961,209.24
Other current assets 21,796,568.57 16,872,375.14
Construction in progress 448,595,364.96 273,433,344.46
Long-term prepaid expense 436,516.35 1,309,549.23
Deferred income tax assets 5,040,923.46 3,160,348.10
Liabilities: 432,646,991.64 239,290,928.90
Accounts payable 6,015,705.48
Contract liabilities 12,695,576.15 4,739,320.18
Employee benefits payable 458,401.28
Taxes and levies payable 349,880.40 162,995.27
Other payables 411,984,826.48 233,962,074.63
Other current liabilities 1,142,601.85 426,538.82
Net assets 57,850,693.15 63,464,436.18
Net assets acquired 57,850,693.15 63,464,436.18
3. Counter Purchase
No such cases in the Reporting Period.
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Haolaite Company was incorporated in July 2020 and has been included in the consolidation scope since the establishment date;
Chansheng Company has completed the industrial and commercial cancellation in December 2020 and no longer included in the
consolidation scope since the cancellation date.
219
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
6. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Holding percentage (%)
Name Registration place Nature of business Way of gaining
place Directly Indirectly
Foshan Lighting
Production and Newly
Lamps & Components Foshan Foshan 100.00%
sales established
Co., Ltd.
Guangdong Fozhao
Production and Newly
New Light Sources Foshan Foshan 100.00%
sales established
Technology Co., Ltd.
FSL Chanchang
Production and Newly
Optoelectronics Co., Foshan Foshan 100.00%
sales established
Ltd.
Foshan Taimei Times
Production and Newly
Lamps and Lanterns Foshan Foshan 70.00%
sales established
Co., Ltd.
Foshan Electrical &
Production and Newly
Lighting (Xinxiang) Xinxiang Xinxiang 100.00%
sales established
Co., Ltd.
Nanjing Fozhao
Lighting Components Production and
Nanjing Nanjing 100.00% Acquired
Manufacturing Co., sales
Ltd.
FSL Zhida Electric Production and Newly
Foshan Foshan 51.00%
Technology Co., Ltd. sales established
FSL LIGHTING Production and Newly
Germany Germany 100.00%
GmbH sales established
Foshan Haolaite Production and Newly
Foshan Foshan 51.00%
Lighting Co., Ltd. sales established
Hunan Keda New
Investment and
Energy Investment
Changsha Changsha technology 100.00% Acquired
and Development Co.,
development
Ltd.
220
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Foshan Kelian New
Property
Energy Technology Foshan Foshan 100.00% Acquired
development
Co., Ltd.
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss
Declaring dividends Balance of
proportion of attributable to the
Name distributed to non-controlling interests
non-controlling non-controlling
non-controlling interests at the period-end
interests interests
Foshan Taimei Times Lamps
30.00% 1,495,158.75 10,708,074.14
and Lanterns Co., Ltd.
FSL Zhida Electric
49.00% 4,351,705.30 22,113,217.99
Technology Co., Ltd.
Foshan Haolaite Lighting Co.,
49.00% -592,457.60 15,437,542.40
Ltd.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Foshan
Taimei
Times
71,270,5 15,316,4 86,586,9 50,893,3 50,893,3 40,797,2 17,975,7 58,772,9 28,063,2 28,063,2
Lamps
18.28 06.34 24.62 44.19 44.19 59.87 35.27 95.14 77.21 77.21
and
Lanterns
Co., Ltd.
FSL
Zhida
Electric 112,196, 8,962,67 121,158, 63,696,1 63,696,1 79,707,2 9,067,38 88,774,5 40,492,9 40,492,9
Technolo 198.34 6.26 874.60 84.82 84.82 13.61 0.69 94.30 35.74 35.74
gy Co.,
Ltd.
Foshan
51,192,0 12,249,9 63,442,0 31,936,1 31,936,1
Haolaite
90.96 45.68 36.64 60.19 60.19
Lighting
221
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Co., Ltd.
234,658, 36,529,0 271,187, 146,525, 146,525, 120,504, 27,043,1 147,547, 68,556,2 68,556,2
Total
807.58 28.28 835.86 689.20 689.20 473.48 15.96 589.44 12.95 12.95
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
145,973,615. 129,622,438.
Lamps and 4,983,862.50 4,983,862.50 -1,854,553.69 3,682,835.31 3,682,835.31 4,489,707.08
97 26
Lanterns Co.,
Ltd.
FSL Zhida
Electric 123,690,820. 88,828,868.2 11,912,536.0
8,881,031.22 8,881,031.22 2,202,238.82 2,376,968.48 2,376,968.48
Technology 25 3 3
Co., Ltd.
Foshan
Haolaite 30,156,976.5
-1,209,123.55 -1,209,123.55 -5,636,610.73
Lighting Co., 8
Ltd.
299,821,412. 12,655,770.1 12,655,770.1 218,451,306. 16,402,243.1
Total -5,288,925.60 6,059,803.79 6,059,803.79
80 7 7 49 1
(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
222
Foshan Electrical and Lighting Co., Ltd. Annual Report 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 181,365,016.32 181,093,725.43
The total of following items according to the
-- --
shareholding proportions
--Net profit 2,351,681.39 1,755,751.49
--Total comprehensive income 2,351,681.39 1,755,751.49
(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
223
Foshan Electrical and Lighting Co., Ltd. Annual Report 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: equity investment, notes receivable, accounts 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
224
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
undertaken by the Company was mainly generated from USD and EUR. On 31 December 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) Held-for-trading
6,332,900.00 401,286,301.36 407,619,201.36
financial assets
1. Financial assets at fair
value through profit or 6,332,900.00 401,286,301.36 407,619,201.36
loss
(III) Other equity
3,300,446,853.66 5,054,176.40 3,305,501,030.06
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 option rate.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 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 are bank's wealth management products, 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 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.
(2) 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
226
Foshan Electrical and Lighting Co., Ltd. Annual Report 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
Hongkong Wah
Shing Holding Hong Kong Investment HKD110,000 13.47% 13.47%
Company Limited
Shenzhen Rising
Investment RMB135.409416
Shenzhen Investment 5.12% 5.12%
Development Co., million
Ltd.
Guangdong
Electronics
Guangzhou Sales & Production RMB462 million 8.77% 8.77%
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 30.00% 30.00%
Notes: Information on the Company as the parent
The largest shareholder of the Company, Hongkong Wah Shing Holding Company Limited, 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
Holdings Group Co., Ltd. (hereinafter referred to as “Rising Group”). 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 Group was the controlling shareholder of the Company. As of 31 December 2020 the aforesaid persons acting in
concert holding total A, B share of the Company 419,803,826.00 shares, 30.00 % of total share equity of the Company.
The final controller of the Company was Guangdong Rising Holdings Group Co., Ltd. .
2. Subsidiaries of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Subsidiaries for details.
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
Guangdong Rising Holdings Group Co., Ltd. The Company’s actual controller
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
Jiangmen Dongjiang Environmental Protection Technology Co.,
Under same actual controller
Ltd.
Foshan Fulong Environmental Protection Technology Co., Ltd. Under same actual controller
Guangdong Electronics Information Industry Group 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
Zhuhai Doumen District Yongxingsheng Environmental
Under same actual controller
Industrial Wastes Recycling Comprehensive Treatment Co., Ltd.
Guangdong Zhongnan Construction Co., Ltd. Under same actual controller
Shaoguan Green Resource Recycling Development Co., Ltd. Under same actual controller
Guangdong New Electronic Information Ltd. Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Guangdong Zhongjin Lingnan Equipment Technology Co., Ltd. Under same actual controller
Shenzhen Zhongjin Lingnan Nonfemet Company Limited Under same actual controller
Acting-in-concert party of a 5% greater shareholder of the
Hangzhou Times Lighting and Electrical Co., Ltd.
Company
Acting-in-concert party of a 5% greater shareholder of the
Prosperity (Hangzhou) Lighting and Electrical Co., Ltd.
Company
Acting-in-concert party of a 5% greater shareholder of the
Prosperity Electrical (China) Co., Ltd.
Company
228
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Company controlled by related natural person with significant
OSRAM (China) Lighting Co., Ltd.
influence
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed Same period of last
Related party Content Reporting Period
credit trade credit or not year
Foshan NationStar Purchase of
54,268,443.27 200,000,000.00 Not 47,177,854.15
Optoelectronics Co., Ltd. materials
Guangdong Fenghua
Purchase of
Advanced Technology 8,810,002.31 6,500,000.00 Yes 2,719,775.90
materials
Holding Co., Ltd.
PROSPERITY LAMPS & Purchase of
3,128,174.91 11,000,000.00 Not 3,874,689.74
COMPONENTS LTD materials
Hangzhou Times Lighting Purchase of
448,824.06 2,000,000.00 Not 674,827.48
and Electrical Co., Ltd. materials
Prosperity Electrical Purchase of
118,407.08 1,000,000.00 Not
(China) Co., Ltd. materials
MTM Semiconductor Purchase of
410,527.58
Equipment Co., Ltd. equipment
Guangdong Electronic
Purchase of
Technology Research 724,424.77 1,000,000.00 Not 46,551.72
equipment
Institute
Guangdong Zhongnan Receiving labor
139,734,113.59 64,815,051.48
Construction Co., Ltd. service
Jiangmen Dongjiang
Receiving labor
Environmental Protection 326,229.47
service
Technology Co., Ltd.
Foshan Fulong
Receiving labor
Environmental Protection 42,477.88
service
Technology Co., Ltd.
Shaoguan Green Resource
Receiving labor
Recycling Development 35,150.44 93,318.58
service
Co., Ltd.
Guangdong Electronic Receiving labor
16,851.55
Technology Research service
229
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Institute
Zhuhai Doumen District
Yongxingsheng
Environmental Industrial Receiving labor
13,274.34 54,676.52
Wastes Recycling service
Comprehensive Treatment
Co., Ltd.
Total 207,666,373.67 221,500,000.00 119,867,273.15
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 23,581,892.27 20,323,829.52
COMPONENTS LTD
Guangdong New Electronic Information
Sale of products 13,257,739.83
Ltd.
Guangdong Zhongnan Construction
Sale of products 2,478,832.12
Co., Ltd.
Guangdong Yixin Changcheng
Sale of products 2,001,082.10
Construction Group
Guangdong Electronic Technology
Sale of products 856,798.23
Research Institute
Guangzhou Huajian Engineering
Sale of products 678,572.88
Construction Co., Ltd.
Shenzhen Zhongjin Lingnan Nonfemet
Sale of products 508,074.33
Company Limited
Guangdong Zhongjin Lingnan
Sale of products 367,903.54
Equipment Technology Co., Ltd.
Guangdong Rising Holdings Group Co.,
Sale of products 57,417.70
Ltd.
Prosperity Electrical (China) Co., Ltd. Sale of products 44,923.04 78,769.53
Guangdong Rising Communications
Sale of products 23,628.32
Technology Co., Ltd.
Guangdong Electronics Information
Sale of products 8,004.42
Industry Group Ltd.
Guangzhou Diansheng Property
Sale of products 846.90
Management Co., Ltd.
Total 43,864,868.78 20,403,445.95
Information of sales/purchase of goods and provision/reception of labor service
1. The pricing policy for related-party transactions is as follows:
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Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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. The related-party transactions between the Company and subsidiaries and among subsidiaries have been offset when consolidating
financial statements.
(2) Information on Related-party Trusteeship/Contract
Naught
(3) Information on Related-party Lease
The Company was lessor:
Naught
The Company was lessee:
Unit: RMB
The lease fee confirmed in the The lease fee confirmed in
Name of lessor Category of leased assets
Reporting Period the 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
Related party Content of the related-party transaction Reporting Period The same period of last year
The Company purchased 100% of
equity in Hunan Keda New Energy
Guangdong Huajian Enterprise
Investment and Development Co., Ltd., 311,628,442.49 0.00
Group Co., Ltd.
the wholly-owned subsidiary of the
related party
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
231
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Chairman of the Board 553,233.53
General Manager 2,246,860.84 1,415,554.04
Chairman of the Supervisory Committee 1,011,360.58 777,020.00
Secretary of the Board 250,000.00
Chief Financial Officer 992,873.82 815,554.04
Other 7,286,668.80 6,040,140.36
Total 12,090,997.57 9,298,268.44
Note: The former General Manger Liu Xingming left on 24 April 2020 receiving the pre-tax remuneration from the Company of
RMB1,694,153.82 in this year; the General Manager Lei Zihe takes office since April 2020 receiving the pre-tax remuneration from
the Company of RMB552,707.02 in this year.
(8) Other Related-party Transactions
Funds Interests of Related Parties
Related party Content Reporting Period Same period of last year
Guangdong Huajian Enterprise Group Borrowing interest 11,857,755.40 8,923,401.51
Co., Ltd. (Note) expense
Total 11,857,755.40 8,923,401.51
Note: Interest expense on the loan from Hua Jian Group to Foshan Kelian, a subsidiary acquired in a business
combination involving entities under common control.
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Related party Bad debt
Carrying amount Bad debt provision Carrying amount
provision
Monetary
Guangdong Rising
capital-Interest 1,581,250.00 3,126,022.22
Finance Co., Ltd.
receivable
Guangdong New
Accounts receivable Electronic Information 14,131,264.06 423,937.92
Ltd.
PROSPERITY LAMPS
Accounts receivable 3,953,777.97 118,613.34 3,158,126.65 94,743.80
& COMPONENTS LTD
Guangdong Zhongnan
Accounts receivable 2,642,688.00 79,280.64
Construction Co., Ltd.
232
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Guangdong Yixin
Accounts receivable Changcheng Construction 2,261,222.79 67,836.68
Group
Guangdong Vollsun Data
Accounts receivable Solid-state Storage Co., 2,553,280.00 765,984.00 2,653,280.00 265,328.00
Ltd.
Shenzhen Zhongjin
Accounts receivable Lingnan Nonfemet 574,124.00 17,223.72
Company Limited
Guangdong Zhongjin
Accounts receivable Lingnan Equipment 415,731.00 12,471.93
Technology Co., Ltd.
Guangzhou Huajian
Accounts receivable Engineering Construction 289,857.54 8,695.73
Co., Ltd.
OSRAM (China)
Accounts receivable 117,554.16 94,043.33 117,554.16 58,777.08
Lighting Co., Ltd.
Prosperity (Hangzhou)
Accounts receivable Lighting and Electrical 86,000.00 86,000.00 86,367.27 86,293.82
Co., Ltd.
Guangdong Zhongnan
Other receivables 2,000,000.00 200,000.00
Construction Co., Ltd.
Prosperity Electrical
Prepayments 39,428.00 7,521.37
(China) Co., Ltd.
Foshan NationStar
Prepayments 31,266.86 4,866.76
Optoelectronics Co., Ltd.
Total 28,677,444.38 1,674,087.29 11,153,738.43 705,142.70
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Foshan NationStar
Accounts payable 32,866,944.98 13,443,520.14
Optoelectronics Co., Ltd.
Guangdong Fenghua Advanced
Accounts payable 5,258,863.67 384,036.84
Technology Holding Co., Ltd.
PROSPERITY LAMPS &
Accounts payable 1,350,955.58
COMPONENTS LTD
Hangzhou Times Lighting and
Accounts payable 289,282.42 219,439.95
Electrical Co., Ltd.
233
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Prosperity Electrical (China)
Accounts payable 160,759.70
Co., Ltd.
Guangdong Huajian Enterprise
Other payables 9,358,999.63 225,025,442.21
Group Co., Ltd.
Guangdong Electronic
Other payables 260,860.00 181,700.00
Technology Research Institute
Foshan NationStar
Other payables 279,800.91
Optoelectronics Co., Ltd.
Guangdong Fenghua Advanced
Other payables 30,000.00
Technology Holding Co., Ltd.
PROSPERITY LAMPS &
Other payables 488,822.33
COMPONENTS LTD
Prosperity Electrical (China)
Other payables 100,000.00
Co., Ltd.
Prosperity Electrical (China)
Advances from customers 39,764.94 52,619.26
Co., Ltd.
Total 49,735,472.13 240,056,340.43
7. Commitments of Related Party
1. Commitment on Avoidance of Horizontal Competition
Commitment maker: Controlling shareholder
Contents of Commitment:Electronics Group and its acting-in-concert parties Shenzhen Rising Invesment and
Hong Kong Rising Investment have made a commitment that the elimination of the horizontal competition
between Foshan Nation Star OptoelectronicsCo., Ltd and the Company through business integration or other ways
or arrangements shall be completed before 4 June 2020.
Date of commitment making: 3December 2019
Term of commitment: 6 months
Fulfillment: Complete
2. Commitment on Avoidance of Horizontal Competition
Commitment maker: Controlling shareholder
Contents of Commitment: 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
234
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
prescribed in the relevant document and faithfully honor all the relevant commitments. 3. If they or their directly
or indirectly controlled subsidiaries break the aforesaid commitments and thus cause a loss for the Company, they
shall compensate the Company on a rational basis.
Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
3. Commitment on Reduction and Regulation of Related-party Transactions
Commitment maker: Controlling shareholder
Contents of Commitment: 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 on Independence
Commitment maker: Controlling shareholder
Contents of Commitment: In order to ensure the independence of the Company in business, personnel, asset,
organization and finance, Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong
Kong Rising Investment have made the following commitments: 1. They will ensure the independence of the
Company in business: (1) They promise that the Company will have the assets, personnel, qualifications and
capabilities for it to operate independently as well as the ability of independent, sustainable operation in the market.
(2) They promise not to intervene in the Company’s business activities other than the execution of their rights as the
Company’s shareholders. (3) They promise that they and their related parties will not be engaged in business that is
substantially in competition with the Company’s business. And (4) They promise that they and their related parties
will try their best to reduce related-party transactions between them and the Company; for necessary and
unavoidable related-party transactions, they promise to operate fairly following the market-oriented principle and at
fair prices, and execute the transaction procedure and the duty of information disclosure pursuant to the applicable
laws, regulations and regulatory documents. 2.They will ensure the independence of the Company in personnel: (1)
They promise that the Company’s GM, deputy GMs, CFO, Company Secretary and other senior management
personnel will work only for and receive remuneration from the Company, not holding any positions in them or their
other controlled subsidiaries other than director and supervisor. (2) They promise the Company’s absolute
independence from their related parties in labor, human resource and salary management. And (3) They promise to
follow the legal procedure in their recommendation of directors, supervisors and senior management personnel to
235
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
4. Modification and Termination of the Stock Payment
Naught
236
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Type of commitment: Commitment about cash dividends
Commitment maker: The Company
Contents: The annual profits distributed in cash by the Company shall be not less than 30% of the distributable
profits of the year.
Date of commitment making: 27 May 2009
Term of commitment: Long-standing
Fulfillment: In execution
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1. Securities false statement liability disputes
According to the Supreme People's Court of the People's Supreme People’s Court of the People's Republic of
China (2017) Supreme People’s Court No. 3437 to No. 3466, No. 3499 and No. 3480 Civil Ruling, the Plaintiff of
the Securities False Statement Liability Disputes (Retrial Application 32) The 32 people were not satisfied with
the Guangdong Provincial Higher People's Court (2016) Guangdong People's Court Decision No. 407-436 and No.
1841-1852 and applied to the Supreme People's Court for a retrial. The Supreme People’s Court ruled that it
should be tried. As of 31 December 2020, thirty one of the above-mentioned cases had concluded. The remaining
one case has been sent back to the Intermediate People’s Court of Guangdong Province for trial with the amount
involved of RMB107,549.00.
2. The lawsuit with Beijing Zhengshi
As Beijing Zhongao Zhengshi Lighting Appliance Co., Ltd. and its subordinate dealers (hereinafter referred to as
“Beijing Zhengshi”) defaulted on the Company’s payment for goods, the Company filed a lawsuit with the Foshan
Chancheng District People’s Court in September 2017 (Case No.: (2017) Yue 0604 MC No. 13425), demanding
an immediately settlement of the payment and overdue liquidated damages of the loan interest rate at the same
period from 31 July 2017 from No. 1 defendant, Beijing Zhengshi, as well as jointly and severally liability for the
above debt from No. 2 defendant Jiang Zhenghao. On 10 May 2018, in People’s Court of Chancheng District,
Foshan City (2017) Yue 0604 MC No. 13425 Civil Ruling, Beijing Zhengshi was adjudged to pay the payment for
goods of RMB14,220,827.14 and liquidated damages for the Company and Jiang Zhenghao undertook the jointly
and severally liability. Beijing Zhengshi and Jiang Zhenghao were not satisfied with the judgment and applied to
the Foshan Intermediate People’s Court on 24 May 2018 and asked for the revocation of the first instance
judgment and rejection of all claims of the Company. As of the date of the audit report, the above-mentioned case
was at the reception stage and hadn’t yet been concluded.
3. The lawsuit with Shanghai Dinghui
237
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Among the year of 2016 and 2017, goods of lamp bead from Shanghai Toplite Technology Co, Ltd. (hereinafter
referred to as “Shanghai Toplite”) supplied to the Company existed quality problems, and the Company shall
return the goods and not pay the payment. Therefore, Shanghai Toplite filed a lawsuit with the Foshan Chancheng
District People’s Court, demanding the payment of RMB2,183,009.58 from the Company and to compute the
interest of the loan interest rate floating 50% at the same period from 21 January 2018 to the actual settlement date
of the payment. In 2019, the Company filed a counterclaim to Foshan Chancheng District People’s Court,
demanding to return goods of lamp bead provided by Shanghai Toplite with RMB3,168,204.00 including tax price,
as well as to compensate the economic loss of RMB2,916,735.00 to the Company (total amount of counterclaim:
6,084,759.00). As of the date of the audit report, the case hasn’t been concluded.
4. Construction contract dispute with Jianyue Group
In July 2018, the Company signed the Standard Construction Contract of Guangdong Province for Construction
Projects with the contract number being FSL-JJ-2017-00073 with Jianyue Construction Group Co., Ltd.
(hereinafter referred to as "Jianyue Group"). However, Jianyue Group required the Company to compensate for the
material price difference multiple times after starting work, suspended work from time to time with such excuse, and
has completely stopped working since January 2020. The Company gained no results after communicating with it
and requesting it to resume work multiple times. In order to protect legal rights and interests, the Company instituted
a lawsuit to the People’s Court of Gaoming District, Foshan City in September 2020, requesting: (1) Terminating
the Standard Construction Contract of Guangdong Province for Construction Projects signed between the two
parties, and ordering the defendant to immediately clear the site and hand over the construction site to the Company;
(2) Ordering the defendant to pay RMB3,786,112.50 as liquidated damages for default on the construction period,
and compensating the Company's economic losses of RMB1,000,000.00 resulting from the delayed construction
period; (3) Ordering the defendant to return to the Company RMB3,000,000.00 (a amount temporarily determined;
the final amount shall be calculated based on the appraisal conclusion of the cost of construction finished by the
defendant) of the project amount excessively paid; (4) Ordering the defendant to assist the Company in performing
the construction completion acceptance procedures, and provide the Company and hand over all construction
materials necessary for the construction completion acceptance; (5) Ordering the defendant to bear all litigation
expenses of this case. The total amount of the aforesaid lawsuit object is RMB7,786,112.50. As at the audit report
date, the People’s Court of Gaoming District, Foshan City had not accepted the case and had not yet finalized it.
5. Disputes of Guangdong Cobra Industry Co., Ltd. and FSL over infringement on patent rights of exterior design
Because of the dispute over the patent rights of exterior design, Guangdong Cobra Industrial Co., Ltd. brought a
lawsuit against the Company to the Guangzhou Intellectual Property Court (Case No.: (2019) Y. 73 M.C. No. 865)
in 2019. On November 20, 2020, the Guangzhou Intellectual Property Court made a ruling that the Company shall,
within ten days from the effective date of the ruling, compensate the plaintiff Guangdong Cobra Industrial Co., Ltd.
for economic losses and reasonable rights protection expenses of a total of RMB60,000.00. Since the Company was
not satisfied with the aforesaid ruling, it planned to submit an appeal. As at the audit report date, the case had not yet
been finalized.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
238
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(3) Other Information Required by Guidelines of Information Disclosure for Industries in Relation to
Automobile Manufacturing
The amount of sales in such models as mortgage sales and financial leasing accounted for over 10% of revenue.
□Applicable √ Not applicable
Guarantees of the Company for dealers
□Applicable √ Not applicable
3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught
2. Profit Distribution
The profit distribution plan in 2020 of the Company is : based on the total share capital on the registration date of
implementing equity distribution after deducted the shares in the Company’s special repurchase accounts, the
Company intends to distribute a cash dividend of RMB 1 (tax included and dividends for B-share holders to be
paid in the Hong Kong dollars) for every 10 shares held by A-share and B-share holder.
3. Sales Return
Naught
4. Notes to Other Events after Balance Sheet Date
(I) Profit Distribution Plan
The profit distribution plan in 2020 of the Company is as follows: based on the total share capital on the
registration date of implementing equity distribution after deducted the shares in the Company’s special
repurchase accounts, the Company intends to distribute a cash dividend of RMB 1 (tax included and dividends for
B-share holders to be paid in the Hong Kong dollars) for every 10 shares held by A-share and B-share holder.
Apart from the aforesaid cash dividend, the Company would not offer bonus issue from capital reserves and bonus
issue from profit in this profit distribution.
The proposal is still to be submitted to the 2020 Annual General Meeting for review.
(II) Repurchase of Shares
On 18 December 2020, the Company held the 3rd Extraordinary General Meeting of 2020 on which the Proposal
on Repurchase of Some RMB-Denominated Ordinary Shares (A-Share) and Domestically Listed Foreign Shares
(B-Share) was reviewed and approved. As of 31 March 2021, the Company accumulatively repurchased it’s
A-share and B-share 31,070,300 shares and 3,799,702 shares respectively by means of centralized bidding,
239
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
accounting for 2.49% of total share capital in total. RMB196.959 million (excluding transaction cost) has been
spent on the repurchase of A-shares with the highest price of RMB6.70 per share and the lowest price of
RMB6.03 per share; HKD 12.4382 million (excluding transaction cost) has been spent on the repurchase of
B-shares with the highest price of HKD3.40 per share and the lowest price of HKD3.14 per share.
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
(I) About Equity Incentive Fund
On 16 May 2002, the resolution of The 2001 Annual General Meeting of the Company passed the proposal of
establishing equity incentive system for middle and senior executives, which stipulated that the assessment target
shall be annual return on net assets of 6%. When the annual return on net assets reached 6%, withdraw equity
incentive funds by 5% of the net profit, the accruing proportion of incentive funds and the increase ratio of return
on net assets should increase simultaneously. The scheme was implemented from the fiscal year 2001. The
Company accrued no equity incentive fund for the present year since the return of equity of this year did not reach
6%.
240
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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
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 15,257,6 9,569,33 5,688,330 23,377,22 16,266,81 7,110,413.5
1.40% 62.72% 3.27% 69.58%
provision separately 62.85 1.99 .86 3.66 0.09 7
accrued
Of which:
Accounts receivable
for which bad debt 1,073,14 48,124,8 1,025,024 691,130,6 32,134,19 658,996,41
98.60% 4.48% 96.73% 4.65%
provision accrued 9,615.48 72.12 ,743.36 12.31 3.35 8.96
by group
Of which:
(1) Common 1,012,03 48,124,8 963,906,5 683,827,2 32,134,19 651,693,09
92.98% 4.76% 95.71% 4.70%
business portfolio 1,374.59 72.12 02.47 87.86 3.35 4.51
(2) Internal business 61,118,2 61,118,24 7,303,324 7,303,324.4
5.62% 1.02%
portfolio 40.89 0.89 .45 5
1,088,40 57,694,2 1,030,713 714,507,8 48,401,00 666,106,83
Total 100.00% 5.30% 100.00% 6.77%
7,278.33 04.11 ,074.22 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 8,532,496.28 60.00% first instance judgment
and the other side had
appealed
Involved in the lawsuit;
Customer B 1,036,835.71 1,036,835.71 100.00%
the Company won the
241
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
case, but the counterpart
has no property for
repayment
Total 15,257,662.85 9,569,331.99 -- --
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk portfolio 1,073,149,615.48 48,124,872.12 4.48%
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 998,219,393.68
1 to 2 years 39,086,815.01
2 to 3 years 26,938,607.96
Over 3 years 24,162,461.68
3 to 4 years 14,917,990.94
4 to 5 years 4,739,947.50
Over 5 years 4,504,523.24
Total 1,088,407,278.33
(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 19,005,303.28 9,156,396.52 555,706.09 57,694,204.11
receivable
Total 48,401,003.44 19,005,303.28 9,156,396.52 555,706.09 57,694,204.11
Of which bad debt provision recovered or reversed with significant amount during the Reporting Period:
Unit: RMB
242
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Name Amount of reversal or recovery Collection way
No. 1 8,541,244.40
No.2 615,152.12
Total 9,156,396.52 --
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
No. 1 545,941.76
No. 2 5,480.00
No. 3 2,858.68
No. 4 826.32
No. 5 367.27
Other driblet small amount 232.06
Total 555,706.09
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Ending balance of accounts Proportion to total ending Ending balance of bad debt
Name
receivable balance of accounts receivable provision
No. 1 266,975,642.87 24.53% 8,009,269.29
No. 2 46,832,862.15 4.30% 0.00
No. 3 29,740,558.56 2.73% 892,216.76
No. 4 27,606,151.04 2.54% 828,184.53
No. 5 27,107,127.00 2.49% 813,213.81
Total 398,262,341.62 36.59%
(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
243
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 462,284,585.09 37,934,614.96
Total 462,284,585.09 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 443,820,864.80 17,624,135.10
Borrowings and petty cash for employees 7,403,907.26 5,436,926.32
Performance bond 4,025,073.30 3,231,331.10
Rental fees and water & electricity fees 2,989,445.13 1,476,056.29
VAT export tax refunds 195,141.85 8,154,485.23
Other intercourse funds 6,185,710.92 3,896,155.29
Total 464,620,143.26 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
244
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Period
Withdrawal of the
-77,788.29 528,872.09 451,083.80
Current Period
Balance of 31 December
454,821.73 1,880,736.44 2,335,558.17
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) 455,288,838.51
1 to 2 years 4,174,330.91
2 to 3 years 3,309,830.60
Over 3 years 1,847,143.24
3 to 4 years 1,341,318.14
4 to 5 years 70,024.80
Over 5 years 435,800.30
Total 464,620,143.26
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 1,884,474.37 451,083.80 2,335,558.17
Total 1,884,474.37 451,083.80 2,335,558.17
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
245
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Proportion to total
Ending balance of
Name of the entity Nature Ending balance Aging ending balance of
bad debt provision
other receivables%
Internal business
No. 1 394,627,792.74 Within 1 years 84.94%
group
Internal business
No. 2 19,936,475.39 Within 1 years 4.29%
group
Internal business
No. 3 17,995,308.05 Within 3 year 3.87%
group
Internal business
No. 4 10,535,474.03 Within 2 year 2.27%
group
No. 5 Provident fund 2,263,797.33 Within 1 years 0.49% 67,913.92
Total -- 445,358,847.54 -- 95.86% 67,913.92
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
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
355,584,295.41 355,584,295.41 283,793,102.26 283,793,102.26
subsidiaries
Investment to
joint ventures and
181,365,016.32 181,365,016.32 181,093,725.43 181,093,725.43
associated
enterprises
Total 536,949,311.73 536,949,311.73 464,886,827.69 464,886,827.69
246
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
(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
Components 72,000,000.00 72,000,000.00
Manufacturing
Co., Ltd.
Foshan
Electrical &
Lighting 35,418,439.76 35,418,439.76
(Xinxiang) Co.,
Ltd.
Guangdong
Fozhao New
Light Sources 50,077,000.00 50,077,000.00
Technology Co.,
Ltd.
Foshan Haolaite
Lighting Co., 16,685,000.00 16,685,000.00
Ltd.
Foshan Lighting
Lamps &
15,000,000.00 15,000,000.00
Components
Co., Ltd.
FSL Zhida 25,500,000.00 25,500,000.00
247
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Electric
Technology Co.,
Ltd.
FSL Lighting
195,812.50 195,812.50
GmbH
Hunan Keda
New Energy
Investment and 57,850,693.15 57,850,693.15
Development
Co., Ltd.
283,793,102.2
Total 74,535,693.15 2,744,500.00 355,584,295.41
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
ix 181,093,7 2,351,681 2,080,390 181,365,0
(Nanho) 25.43 .39 .50 16.32
Electronic
s Ltd.
181,093,7 2,351,681 2,080,390 181,365,0
Subtotal
25.43 .39 .50 16.32
181,093,7 2,351,681 2,080,390 181,365,0
Total
25.43 .39 .50 16.32
(3) Other Notes
Naught
248
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
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 3,341,450,360.57 2,726,640,272.12 3,124,143,587.99 2,445,365,718.26
Other business 148,816,741.96 134,309,284.64 111,804,851.06 92,962,742.36
Total 3,490,267,102.53 2,860,949,556.76 3,235,948,439.05 2,538,328,460.62
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
2,351,681.39 1,755,751.49
accounted by equity method
Investment income from disposal of
43,551,565.30 330,228.20
long-term equity investment
Investment income from holding of
1,750,000.00
held-for-trading financial assets
Investment income from disposal of
13,550,000.00
held-for-trading financial assets
Dividend income from holding of other
14,940,422.96 18,510,954.80
equity instrument investment
Investment income from financial products
23,451,129.06 29,554,019.01
and structural deposits
Other 3,678,150.00 -4,242,300.00
Total 87,972,948.71 61,208,653.50
6. Other
Naught
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
249
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Gain/Loss arising from disposal of non-current assets 7,466,798.65
Government grants recognized in the current period,
except for those acquired in the ordinary course of
25,372,941.13
business or granted at certain quotas or amounts
according to the government’s unified standards
Capital occupation charges on non-financial enterprises
1,337,410.12
that are recorded into current profit or loss
Current net profit or loss of subsidiaries acquired in
business combination under the same control from -5,613,743.03
period-beginning to combination date
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 8,463,850.00
financial assets and liabilities, and other creditor’s
rights investment, other than valid hedging related to
the Company’s common businesses
Reverse of provision for impairment of accounts
receivable and contract assets individually conducting 9,156,396.52
impairment test
Other non-operating income and expenses other than
-123,367.66
the above
Less: Income tax effects 5,643,715.91
Non-controlling interests effects 297,430.55
Total 40,119,139.27 --
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to ordinary
5.82% 0.2265 0.2265
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
5.08% 0.1978 0.1978
deduction of non-recurring profit or
loss
250
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Naught
4. Other
Naught
251
Foshan Electrical and Lighting Co., Ltd. Annual Report 2020
Part XIII Documents Available for Reference
Investors and interested parties can get access to the following materials in the Board Secretary’s
Office in the Company’s office building:
1. The financial statements signed and sealed by the Company’s legal representative, General
Manager and Chief Financial Officer;
2. The original copy of the Independent Auditor’s Report signed and sealed by the certified public
accountants and stamped by the CPA firm.
3. All the originals of the Company’s announcements and documents that were disclosed to the
public during the Reporting Period on the media designated by the CSRC for information
disclosure.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd.
7 April 2021
252
