Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
INTERIM REPORT 2024
August 2024
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
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.
Wan Shan, the Company’s legal representative, Tang Qionglan, the Company’s Chief
Financial Officer (CFO), and Liang Yuefei, 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.
Any plans for the future and other forward-looking statements mentioned in this Report and
its summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Company has described in detail in this Report the risk of macro-economic fluctuations
and intensified market competition, the risk of rising raw material prices, the risk of exchange
rate fluctuations, and the risk of the recoverability of accounts receivable. Please refer to the
section headed “Risks Facing the Company and Countermeasures” in Item X of Part III of
this Report.
The Company has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Management Discussion and Analysis ............................................................................. 10
Part IV Corporate Governance ...................................................................................................... 36
Part V Environmental and Social Responsibility ......................................................................... 38
Part VI Significant Events ............................................................................................................... 51
Part VII Share Changes and Shareholder Information ............................................................... 70
Part VIII Preferred Shares ............................................................................................................. 79
Part IX Bonds ................................................................................................................................... 80
Part X Financial Statements ........................................................................................................... 81
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Documents Available for Reference
1. The financial statements signed and stamped by the Company’s legal representative, Chief
Financial Officer, and the person-in-charge of the Company’s accounting organ.
2. The originals of all the Company’s announcements and documents disclosed to the public during
the Reporting Period on the media designated by the CSRC for information disclosure.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Definitions
Term Definition
Foshan Electrical and Lighting Co., Ltd. and its consolidated subsidiaries,
The “Company”, “listed company”, “FSL” or “we”
except where the context otherwise requires
Rising Holdings Group Guangdong Rising Holdings Group Co., Ltd.
Electronics Group Guangdong Electronics Information Industry Group Ltd.
Hong Kong Rising Investment Rising Investment Development Limited
Hongkong Wah Shing Hongkong Wah Shing Holding Company Limited
Guangdong Rising Capital Investment Co., Ltd. (formerly known as
Rising Capital
“Guangdong Rising Finance Holding Co., Ltd.”)
Shenzhen Rising Investment Shenzhen Rising Investment Development Co., Ltd.
NationStar Optoelectronics Foshan NationStar Optoelectronics Co., Ltd. (stock code: 002449)
NationStar Semiconductor Foshan NationStar Semiconductor Technology Co., Ltd.
Sigma Foshan Sigma Venture Capital Co., Ltd.
Nanning Liaowang Nanning Liaowang Auto Lamp Co., Ltd.
Fenghua Semiconductor Guangdong Fenghua Semiconductor Technology Co., Ltd.
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.
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. Interim Report 2024
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name FSL, FSL-B Stock code 000541, 200541
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 佛山电器照明股份有限公司
Abbr. (if any) 佛山照明
Company name in English (if
FOSHAN ELECTRICAL AND LIGHTING GO.,LTD
any)
Abbr. (if any) FSL
Legal representative Wan Shan
II Contact Information
Board Secretary Securities Representative
Name Huang Zhenhuan Huang Yufen
No. 8, Zhihui Road, Chancheng District, No. 8, Zhihui Road, Chancheng District,
Address Foshan City, Guangdong Province, Foshan City, Guangdong Province,
P.R.China P.R.China
Tel. （0757）82810239 （0757）82966028
Fax （0757）82816276 （0757）82816276
Email address fsldsh@chinafsl.com fslhyf@163.com
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes,
website address, email address and other contact information of the Company in the Reporting Period.
Applicable □ Not applicable
No. 64, Fenjiang North Road, Chancheng District, Foshan City,
Registered address
Guangdong Province, P.R.China
Zip code 528099
No. 8, Zhihui Road, Chancheng District, Foshan City,
Office address
Guangdong Province, P.R.China
Zip code 528042
Company website www.chinafsl.com
Email address fsldsh@chinafsl.com
Date when the relevant announcement was disclosed on the
17 January 2024
designated website (if any)
Designated website on which the relevant announcement was
www.cninfo.com.cn
disclosed (if any)
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for
keeping the Company’s periodic reports in the Reporting Period.
Applicable □ Not applicable
Stock exchange website where this Report is disclosed www.szse.cn
Media and website where this Report is disclosed www.cninfo.com.cn
Board Office, FSL Office Building, No. 8, Zhihui Road,
Place where this Report is lodged Chancheng District, Foshan City, Guangdong Province,
P.R.China
Date when the relevant announcement was disclosed on the
17 January 2024
designated website (if any)
Designated website on which the relevant announcement was
www.cninfo.com.cn
disclosed (if any)
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
Yes □ No
Reason for retrospective restatement:
Other reason
H1 2023 Change (%)
H1 2024
Before Restated Restated
Operating revenue
4,784,545,767.42 4,566,062,729.02 4,566,062,729.02 4.78%
(RMB)
Net profit attributable
to the listed company’s 192,229,182.38 168,935,232.54 168,935,232.54 13.79%
shareholders (RMB)
Net profit attributable
to the listed company’s
shareholders before 178,842,912.77 180,389,211.53 180,914,198.99 -1.14%
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 384,593,044.61 387,869,057.20 387,869,057.20 -0.84%
activities (RMB)
Basic earnings per
0.1252 0.1252 0.1252 0.00%
share (RMB/share)
Diluted earnings per
0.1241 0.1240 0.1240 0.08%
share (RMB/share)
Weighted average
3.02% 3.23% 3.23% -0.21%
return on equity (%)
31 December 2023 Change (%)
30 June 2024
Before Restated Restated
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Total assets (RMB) 17,074,410,700.64 16,934,439,915.02 16,934,439,915.02 0.83%
Equity attributable to
the listed company’s 6,274,369,252.81 6,285,442,808.19 6,285,442,808.19 -0.18%
shareholders (RMB)
Note: The Company has adopted the Explanatory Announcement No. 1 on Information Disclosure for
Companies Offering Their Securities to the Public—Exceptional Gain/Loss Items (Revised in 2023) for the
current period, and carried out the relevant retrospective restatements for the same period of last year.
V 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 Differences under CAS and IFRS
□ Applicable Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current
assets (inclusive of impairment 65,734.07
allowance write-offs)
Government grants recognised in current
profit or loss (exclusive of those that are
closely related to the Company's normal
business operations and given in
28,947,688.70
accordance with defined criteria and in
compliance with government policies,
and have a continuing impact on the
Company's profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by a
non-financial enterprise, as well as on
disposal of financial assets and liabilities 2,805,784.23
(exclusive of the effective portion of
hedges that arise in the Company’s
ordinary course of business)
Capital occupation charges on a non-
159,108.10
financial enterprise that are charged to
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
current profit or loss
Reversed portions of impairment
allowances for receivables which are 137,714.26
tested individually for impairment
Non-operating income and expense other
2,403,799.26
than the above
Less: Income tax effects 3,935,014.64
Non-controlling interests effects
17,198,544.37
(net of tax)
Total 13,386,269.61
Details of other items that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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. Interim Report 2024
Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period
(I) Principal operations
The Company has been committed to the R&D, production and sale of high-quality and energy-efficient
lighting products in order to provide integrated lighting solutions for customers. It is the controlling shareholder
of Nanning Liaowang Auto Lamp Co., Ltd. ("Nanning Liaowang") and Foshan NationStar Optoelectronics Co.,
Ltd. ("NationStar Optoelectronics") through acquisition programs starting from 2021. At present, the principal
business of the Company mainly includes the R&D, production and sale of general lighting products, electrical
products, automotive lighting products, and LED packaging products.
The general lighting business of the Company mainly covers LED light sources, LED luminaries, traditional
lighting products and comprehensive lighting solutions for home lighting, commercial lighting, industrial
lighting, municipal road lighting and landscape lighting. Over recent years, the Company has been exploring
new fields, including smart lighting, healthy lighting, marine lighting, and animal and plant lighting.
Electrical products mainly include switches, sockets, smart control panels, and smart door locks.
Based on its own automotive light sources and modules, the Company, relying on its majority-owned subsidiary
Nanning Liaowang, has expanded the automotive lighting business into the automotive light assembly sector,
involving basically all the lights that an automobile requires, such as headlights, rear light combos, fog lights,
backup lights, interior lights, and license plate lights. The main clients of Nanning Liaowang include SAIC-
GM-Wuling Automobile, Chongqing Changan Automobile, Bestune, SAIC Maxus Automotive, DFLZM,
Dongfeng Xiaokang, SERES, and other whole-automobile manufacturers.
The Company conducts LED packaging business mainly by relying on its majority-owned subsidiary
NationStar Optoelectronics (stock code: 002449). The primary products include components (including
components for display, lighting, automotive applications, and optoelectronics), modules (including display and
backlight modules as well as mini backlight modules), LED epitaxial wafers and chips (including blue and
green display / digital indication / automotive high power flip-flop / vertical LED chip products / Mini/Micro
LED chip products), integrated circuit packaging components (including SOP/SOT/SOD/DFN/QFN products),
and third generation semiconductor packaging components and modules (including SiC-SBD/SiC-MOS/NSiC
power modules / NSGaN/E-mode series products). These products are widely used for consumer electronics,
home appliances, computers, communications, display and lighting products, general lighting, automotive
lighting, sterilization and purification, plant lighting, and other fields.
(II) Industry development
Currently, lighting enterprises remain under pressure in the face of difficulties and challenges such as
inadequate effective market demand and weak social expectations. Industry competition has further intensified.
Major enterprises accelerated transformation and upgrading to intelligent, energy-saving, and differentiated
products for new competitive edges. Enterprises with advantages in technology, fund and brand were gradually
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
expanding their market shares, and high-quality resources were being channeled to leading players.
Concurrently, with the continuously upgraded technologies and policy encouragement, segmentations such as
intelligent lighting, healthy lighting, marine lighting, and animal and plant lighting achieved sustained growth,
bringing new development opportunities for the industry.
Automotive lights are core parts of an automobile, which are closely linked to the development of the
automotive industry. In accordance with the statistics released by the China Association of Automobile
Manufacturers (CAAM), the automobile output and sales in China for the first half of the year reached 13.891
million and 14.047 million, up by 4.9% and 6.1% year on year, respectively. Particularly, the new energy
vehicle industry achieved ongoing fast growth. Statistically, the output and sales of new energy vehicles for the
first half of the year reached 4.929 million and 4.944 million, up by 30.1% and 32% year on year, respectively.
Additionally, the market share of new energy vehicles reached 35.2%. The growth in automobile output and
sales boosted steady scale growth in the automotive light market. As the new energy vehicle industry in China
has rapidly developed and the R&D capabilities of the upstream, midstream and downstream enterprises along
the domestic automotive-light industrial chain have improved in the last few years, Chinese auto parts
enterprises have gradually been incorporated by vehicle companies into their supply chain systems. This has
given good opportunities to Chinese automotive light enterprises. At the same time, the increasingly stricter
environmental protection and energy conservation requirements for and the continuous electronic, intelligent
and personalised development of automotive lights have placed higher demands on enterprises' technology
innovation.
Although LED packaging demand picked up in the first half of the year, the overall improvement fell short of
expectations. With the upgraded technologies as well as national and local policy support, product application
fields were constantly expanded. Leading LED packaging enterprises occupied more market shares based on
technical and cost advantages. Meanwhile, the new-generation display technology led by Mini/Micro LED
entered a phase of rapid development with its excellent characteristics such as low power consumption, high
integration, high display effect, and high technical life. Additionally, VR/AR devices, wearable devices, vehicle
displays, tablet/computer displays, and projection displays became important application scenarios of new
display technologies. Market opportunities continuously increased.
(III) Business models
1. Procurement model
The Company's procurement department should ensure that the procured materials and products meet the
prescribed requirements and that procurement activities are under control. Besides, it should consider the needs
of each department and the reasonable stock quantity before carrying out any procurement, determine suppliers
by means of bidding, price negotiation, and price comparison, as well as follow up on the purchase orders.
There should be several backup suppliers of each principal raw material to ensure fair procurement price, timely
material supply, and reliable quality.
2. Production model
For routine products, the production plan for the next month is prepared based on the analysis of the sales of
each month and changes in the future market demand and the safe stock benchmark. Each production
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
department produces products as planned so as to control the stock and meet the sales demand. For customized
products, the make-to-order strategy is implemented to effectively control the stock quantity of raw materials,
reduce the funds that are tied up, and improve the Company's operational efficiency.
3. Sales model
In the general lighting business, for domestic sales, the Company adopts the model of agency distribution and
direct supply to engineering projects. The Company sells in hardware distribution, home, engineering, and e-
commerce & retail sale channels. For foreign sales, the Company adopts the models of OEM and independent
brands. The sale of products of independent brands abroad is carried out mainly via agencies.
In the automotive lighting business, in the factory-installed market, the model of supplying automotive light
products directly to OEMs is mainly adopted; in the aftermarket, products are mainly sold by agencies.
In the LED packaging business, the direct sale model is mainly adopted, in which products are sold through
direct communication with clients.
(IV) Main driving forces for growth
The Company upholds the overall idea of "stabilizing the fundamentals and strengthening new businesses", and
continuously strengthens the innovation driver and refines the business portfolio. Additionally, it promotes the
change of the marketing model, intensifies management improvement, and vigorously explores market
segments. Since 2021, the Company has acquired Nanning Liaowang and NationStar Optoelectronics, which
has provided strong support for the Company to rapidly enter the OEM market and make the automobile vehicle
lamp business of the Company stronger and bigger, as well as to strengthen integration upstream and
downstream of the industrial chain of LED. Meanwhile, with the evolution of the industrial competition model,
consumers are getting increasingly concerned with product quality and brand. As a result, lighting 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 its primary products,
improve product quality, beef up market expansion and optimize the business portfolio 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.
II Core Competitiveness Analysis
The Company has been dedicated to the R&D, manufacturing and sale of lighting products since its
establishment. Through continuous channel development, branding, investment in R&D and innovation as well
as vertical integration of the industrial chain, the core competitiveness of the Company has been further
strengthened, which is mainly reflected in the following aspects:
Channel advantage
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
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 four major sales channels in domestic
market (hardware distribution, home, engineering, and e-commerce & retail sales 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. Nanning Liaowang is a major
manufacturer in the Chinese automotive light industry. It has accumulated stable whole-automobile
manufacturing clients and has been developing customers of medium- and high-end and new energy vehicle
makers. Its client entities are increasingly diverse. NationStar Optoelectronics has an excellent client structure.
It has established a long-term cooperative relationship with industry-leading display manufacturers and
internationally famous home appliance enterprises, has successfully showcased its products in many large
events and high-end venues at home and abroad, and is widely recognized by end clients and the market.
Brand advantage
As a national brand that has 66 years of experience in the lighting industry, the presence and value of “FSL” has
continued to increase. For 19 consecutive years, the Company has been included in the list of "China's 500 Most
Valuable Brands". In 2024, the value of FSL brand reached RMB39.382 billion. In 2014, “FSL” was recognized
by China’s Ministry of Commerce as a “China Time-honored Brand”. 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 accelerated brand building through high-end mainstream media platform,
Internet emerging media and offline terminal advertising respectively. Seizing the opportunities arising from the
recognition of “China Time-honored Brand”, the Company deeply explores the connotation and core values of
“China Time-honored Brand”, and promotes the optimisation and upgrading of the brand image, such as
signboards for stores and shelves for stores. By doing so, it has maximized the brand and product
communication effect, formed a comprehensive and diversified publicity position, and driven the transition of
“FSL” from an industrial brand to a popular brand to further stimulate vitality as a “China Time-honored
Brand”. 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.
Nanning Liaowang strictly abides by the national industry standards when producing automotive lights of the
"Liaowang" brand. It has been hailed as a high-quality supplier of car manufacturers for quite a few times.
NationStar Optoelectronics has been awarded honors such as "National High-tech Enterprise Certification",
"Brand Power", "Top 10 LED Packaging Brands", GREE’s “Excellent Display Device Suppler”, and Midea’s
“Partner of Excellent Quality”, which constantly enhances its image of professionalism and brand advantages.
R&D technical advantage
The Company values the R&D of new products and the development of innovation and R&D teams, and has
established a scientific and independent science and technology innovation system, and a team of well-
structured, collaborative and efficient talents. It has further increased spending on technology and introduced
first-class R&D equipment and facilities from home and abroad to provide favourable conditions for scientific
and technological innovation. The Company is a national high-tech company, and its testing center has the
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
CNAS-approved qualification. In addition, the Company has built innovative platforms such as "Guangdong
Engineering Technology Development Center", "Guangdong Industrial Design Center", "Guangdong Enterprise
Technology Center", and "Lighting Research Institute". Besides, the Company has won the titles of "National
IP Demonstration Enterprise" and “Guangdong Province Manufacturing Segment Champion Enterprise”, and
established a "Postdoctoral Research Station (Substation)" and a "Guangdong Science and Technology Expert
Workstation" to explore and intensify efforts in the cutting-edge technology of LEDs, and address key issues
and common technology issues in the industry. It has formed technical barriers with proprietary intellectual
property rights in lighting, spectroscopic, electrical, IoT, AI and many other fields. Cumulatively, the company
and its holding subsidiaries have been granted nearly 2,400 valid patents. The Company actively integrates
internal and external resources and collaborates with Tsinghua University, Fudan University, Sun Yat-sen
University, South China University of Technology, Dalian Ocean University, Institute of Deep-Sea Science and
Engineering of CAS, Ji Hua Laboratory, and other scientific research institutes to establish in-depth industrial
and research cooperation, so as to promote key technological breakthroughs and transformation of scientific and
technological achievements. Meanwhile, the Company has formed a smooth R&D talent cultivation channel to
provide a strong guarantee for the Company to maintain technological leadership and continuous product
innovation. Nanning Liaowang boasts a provincial enterprise technology center, a provincial R&D center, and a
Guangxi automotive lighting parts engineering technology research center; and established the Automotive
Lighting Research Institute and multiple R&D centres. In recent years, Nanning Liaowang has increased
investment in R&D, accelerated investment in various lens modules and interactive signal lamp technologies,
and continuously enhanced its R&D strength. NationStar Optoelectronics has created 14 R&D platforms,
including the Postdoctoral Research Station, and the National- and local-joint Engineering Laboratory for
Semiconductor Lighting Materials and Components. It has undertaken near 30 national research projects such
as the national "863" program and the key national R&D program, in addition to more than 100 provincial and
ministerial research projects. Besides, it has won a variety of honors such as "National Intellectual Property
Demonstration Enterprise", “China Patent Gold Award”, "National Science and Technology Progress Award
(first/second prize)", as well as “GG Golden Globe Award”. In recent years, it has launched Mini/Micro LED,
third-generation semiconductor power devices, smart health sensors, and vehicle-mounted devices, among other
products.
Scale advantage
As one of the enterprises to first step into the industry of producing and selling lighting products, the Company
forms a capability of mass manufacturing by years of experience accumulation. After years of continuous
investment, the Company has greatly improved its production automation level. 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 price negotiation. With
manufacturing bases in Nanning, Liuzhou, Chongqing, Qingdao, and Indonesia, Nanning Liaowang has an
annual production capacity of more than five million sets of automotive lights. NationStar Optoelectronics
began engaging in LED packaging in 1976. It is included in the first batch of enterprises that have produced
LED products and the first Chinese enterprise to go public with LED packaging as its principal business.
Besides, it is one of the largest LED manufacturers in China.
Advantage of a vertical and integrated LED industrial chain
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
By controlling NationStar Optoelectronics, whose business covers the entire LED industry chain, including
upstream LED chip manufacturing, midstream LED packaging, and downstream LED application products, the
Company has optimized the industry chain and further enhanced its competitiveness and visibility in the
industry.
III Analysis of Principal Operations
Overview
During the Reporting Period, in the face of the unfavourable factors of weak market demand and more intense
competition in the industry, the Company adhered to the operating principle of “strengthening the foundation,
promoting transformation, preventing risks and achieving new heights”. Seizing all favourable factors and
making use of all favourable conditions, the Company went all out to improve operation, strengthen
management, expand markets and drive growth. As a result, good results were achieved in various operational
aspects. During the first half of 2024, the Company recorded operating revenue of RMB4.785 billion, up 4.78%
year on year, and a net profit attributable to its shareholders of RMB192 million, increasing by 13.79% year on
year.
The highlights of the Company's work during the Reporting Period are as follows:
1. Focusing on market expansion, the Company achieved steadily improved operating results.
The Company implemented the business strategy of "enhancing brands, increasing varieties, improving quality,
and optimising services" in the first half of the year, stepping up efforts on all business segments and lines. First,
the marketing network endpoints were constantly expanded. The Company promoted channel extension on an
ongoing basis and the construction of retail outlets. A batch of exclusive stores were newly opened.
Furthermore, it developed untapped markets and improved its service to and control of retail outlets. Second,
support from large customers and large projects became stronger. The Company signed strategic cooperation
agreements with several capable large enterprises, successfully won bids for a number of centralised
procurement projects of large customers, and implemented several large rail transit projects and industrial
lighting projects, which effectively drove sales growth. Third, efforts were continued to expand overseas market.
The Company conducted in-depth exploration of the potential of major customers, actively engaged with
specific market needs, and enhanced its service capabilities. While consolidating markets where it has
competitive edges, the Company intensified the development of emerging markets. The operating revenue of
overseas independent brands kept increasing. Fourth, automotive lights maintained growth. The Company
seized market opportunities with technologies and services. Six automobile OEMs were newly developed and
ten new model projects were launched.
2. Focusing on technological innovation, the Company accelerated product transformation and upgrading.
The Company insisted on giving full play to the leading role of technology R&D in expanding major customers
and new customers, and on promoting projects with technologies. Targeting the development trends of
intelligent, healthy, low-carbon and other technologies, the Company consistently invested in R&D,
accelerating technological upgrades, product iterations, and the cultivation and development of new quality
productive forces. In the first half of the year, the Company invested a total of RMB289 million in R&D,
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
representing a year-on-year growth of 26.84%. The intensity of R&D investment reached 6.04%. The Company
targeted market demands and conducted technological research to develop innovative products. It identified five
product series, introducing new products such as intelligent parking lot lighting solutions, OLED photon beauty
devices, comfortable lamps to maintain good eye health and help with sleep, internationally certified sky lights
that meet European ERP energy efficiency requirements, and HD projection interactive modules with high pixel
density. The Company strengthened its efforts in applying for independent intellectual property rights. In the
first half of the year, it was granted 274 new patents, and issued 12 standards at various levels.
3. Focusing on quality and efficiency improvement, the Company effectively increased its profitability.
The Company identified "quality and efficiency improvement" as its annual battle, focusing on key points and
difficulties, and taking multiple measures to reduce costs and improve quality and efficiency. First, a variety of
measures were adopted to minimise costs. Through a combination of strategies including design optimisation,
procurement bids, lean production, and expense control, the Company tapped into the potential of the entire
supply chain. With respect to procurement, the Company decreased procurement costs by refining suppliers,
pre-judging price trends of relevant raw materials, reducing material specifications, and lowering prices through
volume increase, among other methods. In terms of production, the Company implemented measures such as
the "five cost reduction measures”, quantitative control of materials, as well as energy conservation and
consumption reduction to reduce manufacturing costs. As for management, the Company insisted on diligent
corporate management and enhanced expenditure control. Second, the Company strengthened its control over
inventory and accounts receivable. The Company fully implemented the "Inventory Control 369" rule. It
strengthened sales forecasting and the docking of production and marketing, and implemented real-time
monitoring and monthly inspections of product inventory, doing its utmost to control inventory levels
effectively. Furthermore, it adjusted sales policies, strictly controlled risk exposures, set up a leadership group
for the collection of overdue accounts receivable, and doubled collection efforts.
4. Focusing on reform and upgrading, the Company stimulated both vitality and impetus.
The Company centred its efforts on the goal of stimulating vitality and improving efficiency, and made every
effort to secure in-depth and solid advances in reform deepening and upgrading. First, the Company reshaped
the organisational structure, re-defined posts and pay grades, and optimised staffing. Based on the principle of
"research, production and sale" quick response, the function of "optimisation and small changes" was
transferred from the Institute to business departments and production departments so that efficiency was
boosted and that the Institute was able to be more focused on the R&D of innovative products. Second, the
Company rebuilt the orientation for talent use. As a key talent management system featuring "both integrity and
professional competence and an optimised structure" was established, the Company promoted the competitive
selection of middle-level management positions and continuously optimised the talent structure. Third, the
Company restructured the incentive system. The reform of the remuneration system was put fully into effect. A
differentiated performance appraisal and remuneration mechanism was implemented, effectively stimulating the
enthusiasm and motivation of all employees to strive for higher goals.
Year-on-year changes in key financial data:
Unit: RMB
H1 2023/31 December
H1 2024/30 June 2024 Change (%) Main reason for change
2023
16
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023/31 December
H1 2024/30 June 2024 Change (%) Main reason for change
2023
Operating revenue 4,784,545,767.42 4,566,062,729.02 4.78%
Cost of sales 3,861,658,076.61 3,733,474,828.88 3.43%
Business promotion and
advertising expenses,
employee remunerations,
and other expenses paid
Selling expense 175,810,829.30 131,921,130.00 33.27%
in the process of selling
products for market
expansion in the current
period
Administrative expense 226,332,962.51 200,946,085.42 12.63%
Finance costs -30,606,244.74 -30,162,622.41 -1.47%
Income tax expense 24,632,382.12 31,304,364.49 -21.31%
R&D expense 288,841,483.79 227,718,701.74 26.84%
Net cash generated
from/used in operating 384,593,044.61 387,869,057.20 -0.84%
activities
Purchase of a higher total
Net cash generated
amount of large
from/used in investing -831,982,796.40 -4,465,936.70 -18,529.53%
depository receipts in the
activities
current period
Higher amounts of cash
Net cash generated dividend payout and
from/used in financing 19,514,293.35 -359,583,672.75 105.43% borrowing repayment in
activities the same period of last
year
Decrease in net cash
Net increase in cash
-413,495,213.21 28,750,024.39 -1,538.24% generated from investing
and cash equivalents
activities
Decrease in bank
Accounts receivable acceptance bills of a high
296,834,332.74 443,201,960.02 -33.03%
financing credit level in the current
period
Increase in prepayments
in the ordinary course of
Prepayments 55,984,559.55 34,508,638.92 62.23%
business in the current
period
Receipt of customer
Contract assets 2,366,030.73 4,252,013.94 -44.36% payments in the current
period
Purchase of bank’s short-
term wealth management
Other current assets 195,745,670.47 109,292,399.14 79.10%
products in the current
period
Purchase of a higher total
Investments in other amount of large
1,124,498,738.94 454,822,905.25 147.24%
debt obligations depository receipts in the
current period
Surrender of some leases
Right-of-use assets 4,980,388.38 8,812,320.64 -43.48%
in the current period
Increase in long-term
Other non-current
157,198,709.48 119,327,703.18 31.74% assets to be disposed of in
assets
the current period
17
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023/31 December
H1 2024/30 June 2024 Change (%) Main reason for change
2023
Derecognition of
discounted notes with
Short-term borrowings 124,850,000.00 220,019,877.73 -43.26%
recourse in the current
period
Decrease in advances of
Advances from
231,062.59 466,872.69 -50.51% rentals in the current
customers period
Decreased advances from
Contract liabilities 136,319,866.46 235,335,693.28 -42.07% customers in the current
period
Increase in value added
Taxes payable 80,226,629.71 42,940,157.30 86.83% tax payable in the current
period
The 2023 final dividend
in cash was declared and
Other payables 614,845,550.63 362,491,923.01 69.62%
provided for in the
current period
Increase in notes
receivable that had been
Other current liabilities 194,436,120.52 95,008,427.01 104.65%
endorsed but were undue
in the current period
Surrender of some leases
Lease liabilities 1,976,953.14 4,310,967.92 -54.14%
in the current period
Transfer of output tax
Other non-current
205,769.48 -100.00% pending write-off in the
liabilities
current period
Establishment of specific
Specific reserve 4,407,364.68 1,213,325.92 263.25% reserve in the current
period
Increase in government
Other income 60,151,413.19 27,389,992.05 119.61% grants received in the
current period
Increased interest income
Return on investment from large depository
38,017,499.24 22,449,570.63 69.35%
(“-” for loss) receipts in the current
period
Decreased gain on
changes in fair value as a
result of the transfer of
Gain on changes in fair
-601,447.40 -22,153,522.56 97.29% investments in wealth
value (“-” for loss)
management instruments
to return on investment
upon maturity
Increased allowance for
Credit impairment loss
-38,270,808.58 -18,947,421.03 -101.98% expected credit loss in the
(“-” for loss)
current period
Increased inventory
Asset impairment loss
-36,958,804.89 -16,390,888.73 -125.48% valuation allowances in
(“-” for loss) the current period
Asset disposal income Loss on disposal of assets
-99,108.79 110,475.52 -189.71%
(“-” for loss) in the current period
A higher base of such
loss on damage and
Non-operating expense 486,217.43 4,780,570.32 -89.83% retirement of non-current
assets in the same period
of last year
18
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023/31 December
H1 2024/30 June 2024 Change (%) Main reason for change
2023
Decreased changes in the
fair value of investments
Other comprehensive in other equity
-22,766,075.54 -49,800,869.38 54.29%
income, net of tax instruments in the current
period compared with the
same period of last year
Other comprehensive Decreased changes in the
income, net of tax fair value of investments
in other equity
attributable to owners -22,203,388.92 -50,939,650.35 56.41%
instruments in the current
of the Company as the period compared with the
parent same period of last year
Decreased changes in the
Changes in the fair fair value of investments
value of investments in in other equity
-21,548,515.71 -52,237,967.85 58.75%
other equity instruments in the current
instruments period compared with the
same period of last year
Differences arising
from the translation of
Fluctuations of the RMB
foreign currency- -654,873.21 1,298,317.50 -150.44%
against foreign currencies
denominated financial
statements
Other comprehensive
income, net of tax Fluctuations of the RMB
-562,686.62 1,138,780.97 -149.41%
attributable to non- against foreign currencies
controlling interests
Decreased changes in the
fair value of investments
Total comprehensive in other equity
230,676,181.11 175,304,418.91 31.59%
income instruments in the current
period compared with the
same period of last year
Decreased changes in the
Total comprehensive fair value of investments
income attributable to in other equity
170,025,793.46 117,995,582.19 44.10%
owners of the instruments in the current
Company as the parent period compared with the
same period of last year
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ApplicableNot applicable
No such changes in the Reporting Period.
Breakdown of operating revenue:
Unit: RMB
H1 2024 H1 2023
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating
(%) revenue (%)
Total 4,784,545,767.42 100% 4,566,062,729.02 100% 4.78%
By operating division
Lighting products
2,867,569,798.18 59.93% 2,710,661,113.22 59.37% 5.79%
and luminaries
Electronic
component 1,441,392,532.40 30.13% 1,360,444,139.66 29.79% 5.95%
manufacturing
Export trade and 475,583,436.84 9.94% 494,957,476.14 10.84% -3.91%
19
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2024 H1 2023
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating
(%) revenue (%)
other
By product category
General lighting
1,718,962,585.41 35.93% 1,792,551,295.05 39.26% -4.11%
products
LED packaging
1,323,471,292.10 27.66% 1,253,523,386.12 27.45% 5.58%
and components
Auto lamps 1,045,063,423.50 21.84% 806,133,465.65 17.65% 29.64%
Trade and other 697,048,466.41 14.57% 713,854,582.20 15.63% -2.35%
By operating segment
Domestic 3,747,878,177.49 78.33% 3,478,275,919.17 76.18% 7.75%
Overseas 1,036,667,589.93 21.67% 1,087,786,809.85 23.82% -4.70%
Operating Division, Product Category or Operating Segment Contributing over 10% of Operating Revenue or
Operating Profit:
Applicable □ Not applicable
Unit: RMB
YoY change
Gross YoY change in YoY change in
in gross
Operating revenue Cost of sales profit operating cost of sales
profit
margin revenue (%) (%)
margin (%)
By operating division
Lighting
products and 2,867,569,798.18 2,194,117,341.06 23.49% 5.79% 3.17% 1.95%
luminaries
Electronic
component 1,441,392,532.40 1,235,716,493.51 14.27% 5.95% 7.54% -1.27%
manufacturing
Export trade and
475,583,436.84 431,824,242.04 9.20% -3.91% -5.66% 1.68%
other
By product category
General lighting
1,718,962,585.41 1,268,088,979.58 26.23% -4.11% -7.80% 2.96%
products
LED packaging
1,323,471,292.10 1,099,752,921.69 16.90% 5.58% 8.25% -2.05%
and components
Auto lamps 1,045,063,423.50 852,898,599.13 18.39% 29.64% 27.59% 1.31%
Trade and other 697,048,466.41 640,917,576.21 8.05% -2.35% -4.87% 2.43%
By operating segment
Domestic 3,747,878,177.49 2,991,223,462.34 20.19% 7.75% 6.97% 0.59%
Overseas 1,036,667,589.93 870,434,614.27 16.04% -4.70% -7.11% 2.18%
Data of principal operations of the latest period adjusted according to the changed statistical caliber in the
Reporting Period:
□ Applicable Not applicable
IV Analysis of Non-Principal Operations
Applicable □ Not applicable
Unit: RMB
20
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
As % of profit before
Amount Source/Reason Recurrent or not
tax
Dividend income from
other equity investments
Return on investment 38,017,499.24 13.67% held during the period, Yes
and interest income from
other debt investments
Gain/loss on changes in
Gain/loss on changes
-601,447.40 -0.22% fair value of financial Yes
in fair value
instruments
Inventory valuation
Asset impairments -36,958,804.89 -13.29% Yes
allowances
Revenue from liquidated
damages, and
Non-operating income 3,054,859.55 1.10% Not
carryforwards of payables
that require no payment
Loss on retirement of
Non-operating expense 486,217.43 0.17% non-current assets and Not
compensation expenses
Receipt of continuing
Other income 60,151,413.19 21.63% Not
government grants
Allowances for doubtful
Credit impairment loss -38,270,808.58 -13.76% accounts receivable and Yes
other receivables
Gains or losses on the
Asset disposal income -99,108.79 -0.04% disposal of non-current Not
assets
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2024 31 December 2023
Change in
Main reason for
As % of As % of percentage
significant change
Amount total Amount total (%)
assets assets
Purchase of large
Monetary assets 3,191,608,973.70 18.69% 3,596,049,654.55 21.24% -2.55% depository receipts
in the current period
Accounts Increased sales in the
2,452,672,368.91 14.36% 2,093,499,280.40 12.36% 2.00%
receivable current period
Contract assets 2,366,030.73 0.01% 4,252,013.94 0.03% -0.02%
The Company
enhanced inventory
Inventory 1,713,501,547.83 10.04% 1,971,171,641.14 11.64% -1.60%
control in the current
period.
Investment
160,155,678.54 0.94% 163,636,347.41 0.97% -0.03%
property
Long-term
equity 180,633,275.87 1.06% 179,188,555.15 1.06% 0.00%
investments
Fixed assets 3,481,812,429.68 20.39% 3,453,214,586.47 20.39% 0.00%
Increase in
construction in
Construction in
1,070,611,321.57 6.27% 1,174,533,505.11 6.94% -0.67% progress transferred
progress
to fixed assets in the
current period
21
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
30 June 2024 31 December 2023
Change in
Main reason for
As % of As % of percentage
significant change
Amount total Amount total (%)
assets assets
Right-of-use
4,980,388.38 0.03% 8,812,320.64 0.05% -0.02%
assets
Derecognition of
Short-term discounted notes
124,850,000.00 0.73% 220,019,877.73 1.30% -0.57%
borrowings with recourse in the
current period
Decreased advances
Contract
136,319,866.46 0.80% 235,335,693.28 1.39% -0.59% from customers in
liabilities
the current period
Long-term
274,397,540.10 1.61% 253,093,421.29 1.49% 0.12%
borrowings
Lease liabilities 1,976,953.14 0.01% 4,310,967.92 0.03% -0.02%
Maturity of some
Notes receivable 968,135,967.44 5.67% 1,057,352,267.60 6.24% -0.57% notes receivable in
the current period
Decrease in bank
Receivables acceptance bills of a
296,834,332.74 1.74% 443,201,960.02 2.62% -0.88%
financing high credit level in
the current period
Purchase of bank’s
short-term wealth
Other current
195,745,670.47 1.15% 109,292,399.14 0.65% 0.50% management
assets
products in the
current period
Purchase of a higher
Other debt total amount of large
1,124,498,738.94 6.59% 454,822,905.25 2.69% 3.90%
investments depository receipts
in the current period
Maturity of some
Notes payable 2,052,737,312.65 12.02% 2,271,174,787.69 13.41% -1.39% notes payable in the
current period
Accounts
2,971,638,357.60 17.40% 2,875,980,206.64 16.98% 0.42%
payable
The 2023 final
dividend in cash was
Other payables 614,845,550.63 3.60% 362,491,923.01 2.14% 1.46% declared and
provided for in the
current period
Increase in notes
receivable that had
Other current
194,436,120.52 1.14% 95,008,427.01 0.56% 0.58% been endorsed but
liabilities
were undue in the
current period
2. Major Assets Overseas
□ Applicable Not applicable
22
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
3. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss
on fair- Cumulative Impairment
Purchased
value fair-value allowance Sold in the
Beginning in the Other Ending
Item changes in changes for the Reporting
amount Reporting changes amount
the charged to Reporting Period
Period
Reporting equity Period
Period
Financial
assets
1. Held-
for-trading
financial
assets -
152,529,7 260,000,0 305,000,0 106,928,3
(exclusive 601,447.4
75.41 00.00 00.00 28.01
of 0
derivative
financial
assets)
2. Other
debt 454,822,9 727,000,0 70,000,00 12,675,83 1,124,498
investment 05.25 00.00 0.00 3.69 ,738.94
s
3.
Investment -
699,762,7 397,860,8 674,411,5
s in other 25,351,19
equity 46.35 90.64 51.40
4.95
instruments
4.
443,201,9 146,367,6 296,834,3
Receivable
60.02 27.28 32.74
s financing
Subtotal of -
1,750,317 397,860,8 987,000,0 521,367,6 12,675,83 2,202,672
financial 25,952,64
assets ,387.03 90.64 00.00 27.28 3.69 ,951.09
2.35
-
Total of the 1,750,317 397,860,8 987,000,0 521,367,6 12,675,83 2,202,672
25,952,64
above ,387.03 90.64 00.00 27.28 3.69 ,951.09
2.35
Financial
0.00 0.00
liabilities
Details about other changes:
(1) The purchased amount in the Reporting Period of other debt investments referred to the cash management
(large depository receipts) by the Company with its own temporarily idle funds, which was classified as
financial assets at fair value through other comprehensive income. RMB727,000,000.00 and
RMB70,000,000.00 of large depository receipts were purchased and sold, respectively, in the Reporting Period,
with the cumulative fair value changes being RMB0.00 and other changes being RMB12,675,833.69 of
cumulative recognized interest.
Significant changes to the measurement attributes of the major assets in the Reporting Period:
23
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
□ Yes No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposits for notes, performance bonds, payments by
Monetary assets 492,360,246.76
buyers for pre-sale of properties
In pledge for notes pool, undue notes receivable that have been
Notes receivable 750,368,403.26
endorsed or discounted
Receivables financing 31,596,200.00 In pledge for notes pool
Fixed assets 211,662,443.02
As mortgage and guarantee for related party, see XVI (III)
“Guarantees” in Part X
Intangible assets 10,497,200.96
Total 1,496,484,494.00 ——
VI Investments Made
1. Total Investment Amount
Applicable □ Not applicable
Investment amount in the Reporting Investment amount in the same period of
Change (%)
Period (RMB) last year (RMB)
88,163,470.03 30,578,843.07 188.32%
2. Major Equity Investments Made in the Reporting Period
□ Applicable Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
Applicable □ Not applicable
Unit: RMB
Reason
Cumul Cumu for
Industr Date
Fixed Input ative Pre lative failure to
Way y of of
Name asset in the input Fundin Project dic return reach the Disclosur
of the disclo
of invest Report as of g progre ted as of planned e index (if
invest invest sure
project ment ing the source ss ret the progress any)
ment ment (if
or not Period period- urn perio and any)
project
end d-end predicted
return
The Announce
10
produc LED 899,87 Self- ment on
5,568, 98.52 Janua
tion Other Yes packag 7,146. pooled N/A Investmen
000.00 % ry
ramp- ing 45 funds t in the
2019
up Productio
24
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
project n Ramp-
for up Project
new- for New-
genera generation
tion LED
LED Packaging
packag Devices
ing and Chips
device on
s and www.cnin
chips fo.com.cn
(announce
ment of
subsidiary
NationSta
r
Optoelectr
onics)
Announce
ment on
Investmen
t in the
Constructi
The on of
Jili NationSta
Industr r
ial Optoelectr
Park 7 onics’ Jili
LED 26,670 563,54 Self-
project 32.87 Augu Industrial
Other Yes packag ,733.9 1,550. pooled N/A
(not % st Park
ing 7 17 funds
includi 2020 Project on
ng www.cnin
land fo.com.cn
purcha (announce
se) ment of
subsidiary
NationSta
r
Optoelectr
onics)
32,238 1,463,
Total -- -- -- ,733.9 418,69 -- -- -- -- --
7 6.62
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
25
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Gain/ Accu
Loss mulat
on ed Purch
Meas Begin Sold Gain/l Endin
Initial fair- fair- ased
Securi Securi Securi ureme ning in oss in g Accou Fundi
invest value value in
ty ty ty nt carryi Repor Repor carryi nting ng
ment chang chang Repor
type code name metho ng ting ting ng title source
cost es in es ting
d value Period Period value
Repor charg Period
ting ed to
Period equity
Invest
Dome Gotio
ments
sticall n Fair -
83,01 368,3 245,0 1,713, 328,1 in Self-
y/Ove 00207 High- value 40,26
4,485. 76,50 97,61 379.1 12,09 other funde
rseas 4 tech metho 4,408.
13 6.50 2.52 0 7.65 equity d
listed Co., d 85
instru
stock Ltd.
ments
Invest
Dome
Xiam ments
sticall Fair
en 152,9 290,8 14,91 152,7 17,78 305,7 in Self-
y/Ove 60118 value
Bank 57,60 07,67 3,213. 63,27 1,139. 20,88 other funde
rseas 7 metho
Co., 6.83 1.05 90 8.12 65 4.95 equity d
listed d
Ltd. instru
stock
ments
Fosha
n
Invest
branc
ments
h of Fair
in Self-
Guan 500,0 value 500,0 500,0
Other N/A other funde
gdong 00.00 metho 00.00 00.00
equity d
Devel d
instru
opme
ments
nt
Bank
Held-
Dome
for-
sticall Fair
Lifan 1,176, tradin
y/Ove 60177 value 901,5 65,47 966,9
Techn 008.7 g Other
rseas 7 metho 22.76 3.72 96.48
ology 4 financ
listed d
ial
stock
assets
Held-
Dome
ZOT for-
sticall Fair
YE - tradin
y/Ove 00098 423,4 value 77,77 36,79
Auto 40,97 g Other
rseas 0 48.92 metho 5.02 9.59
mobil 5.43 financ
listed d
e ial
stock
assets
-
238,0 660,6 397,8 19,49 635,3
25,32
Total 71,54 -- 63,47 60,89 0.00 0.00 4,518. 36,77 -- --
6,696.
9.62 5.33 0.64 75 8.67
66
(2) Investments in Derivative Financial Instruments
Applicable □ Not applicable
26
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
1) Derivative Investments for Hedging Purposes in the Reporting Period
Applicable □ Not applicable
Unit: USD’0,000
Gain/Loss Ending
Beginnin Accumulat
on fair- Ending investment
g ed fair- Purchased
Initial value Sold in the amount as %
Type of value in the investm
investment investme changes in Reporting of the
derivative changes Reporting ent
amount nt the Period Company’s
recorded in Period amount
amount Reporting ending
equity
Period equity
General
400 0 0 0 400 400 0 0.00%
forward
General
200 0 1.39 0 200 0 200 0.15%
forward
Total 600 0 1.39 0 600 400 200 0.15%
Major changes
in accounting
policies and
specific
accounting
principles
adopted for No
hedges in the
Reporting
Period
compared to the
last reporting
period
Actual gain/loss
in the Reporting The actual gain stood at USD48,300 in the Reporting Period.
Period
The Company carries out foreign exchange hedging business appropriately according to specific situations,
Effectiveness of
which can effectively reduce the foreign exchange market risk, lock in industrial profit of export business and
hedging
avoid exchange rate risk.
Funding source Self-funded
Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of
economic changes at home and abroad, the foreign exchange hedging business faces market risk, to some
extent. 2. Foreign currency risk: When the foreign currency trend greatly deviates from the Company's
judgment of such trend, the expenses after locking the exchange rate might exceed that before doing so,
resulting in losses to the Company. 3. Internal control risk: Imperfect internal control policies probably trigger
Analysis of
risks to the foreign exchange hedging business, as it is highly professional and complex. 4. Trading default
risks and
risk: If the counterparty of foreign exchange hedging defaults by failing to pay hedging earnings to the
control
Company as agreed, the actual exchange loss of the Company will not be offset. 5. Collection forecast risk:
measures
Marketing departments forecast collection based on the actual and expected orders of customers. In practice,
associated with
customers may adjust such orders. As a result, the Company's collection forecast will not be accurate, leading
derivative
to delivery risks.
investments
Adopted risk control measures: 1. The Company will strengthen the research and analysis of the exchange rate.
held in
When the exchange rate fluctuates greatly, it will adjust the business strategy in a timely manner to stabilize
Reporting
the export business and avoid exchange losses to the utmost. 2. The Company has established the Management
Period
System for Foreign Exchange Hedging and majority-owned subsidiary NationStar Optoelectronics has also
(including but
formulated the Management System for Forward Forex Settlement and Sale and Forex Option Transactions,
not limited to
clearly defining the operating principles, approval authority, responsible department and responsible person,
market risk,
internal operation procedures, information isolation measures, internal risk reporting system, risk management
liquidity risk,
procedures, and information disclosure related to the foreign exchange hedging business. 3. In order to prevent
credit risk,
any delay in the foreign exchange hedging, the Company will strengthen the management of accounts
operational risk,
receivable, actively collect receivables, and avoid any overdue receivables. In the meantime, the Company
legal risk, etc.)
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 foreign exchange hedges must be strictly based on the
Company’s foreign exchange earnings prediction. Besides, the Company shall strictly control the scale of its
foreign exchange hedges, 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
27
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
contracts on a regular or irregular basis.
Changes in
market prices or
fair value of
derivative The Company carries out recognition and measurement in accordance with the Accounting Standard for
investments in Business Enterprises No. 22—Recognition and Measurement of Financial Instruments, the Accounting
Reporting Standard for Business Enterprises No. 24—Hedges, the Accounting Standard for Business Enterprises No.
Period (fair 37—Presentation of Financial Instrument and other applicable regulations. Fair value is arrived at based on the
value analysis price provided by pricing service providers such as banks or the price obtained. Fair value measurement and
should include recognition are carried out on a monthly basis. Changes in the fair value of forward exchange settlement
measurement contracts entered into by the Company are mainly attributable to difference arising from exchange rate
method and fluctuations.
related
assumptions
and parameters)
Legal matters
involved (if N/A
applicable)
Disclosure date
of
announcement
on board’s
1 August 2023, 30 April 2024
approving
derivative
investment (if
any)
2) Derivative Investments for Speculative Purposes in the Reporting Period
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
Applicable □ Not applicable
(1) General Information about Use of Raised Funds
Applicable □ Not applicable
Unit: RMB’0,000
Cumula
Re-
tive re- Purpose Amoun
purpose
Cumula purpose and t being
used in d
Total Net Cumula tive re- d wherea idle for
Year of Way of the amount Unused
amount proceed tively purpose amount bouts of more
raising raising current in the amount
raised s used d as % of the than
period Reporti
amount total unused two
ng
amount amount years
Period
raised
The
Issuanc Compa
e of ny had
shares 109,455 108,841 3,479.1 12,276. 96,771. a cash
2023 / / / /
to .18 .55 3 66 36 manage
specific ment
objects balance
of
28
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
RMB59
9
million
utilisin
g
tempor
arily
idle
raised
funds,
and the
remaini
ng
amount
was
deposit
ed in
the
special
account
for
raised
funds.
109,455 108,841 3,479.1 12,276. 96,771.
Total -- / / / -- /
.18 .55 3 66 36
Description of the use of raised funds
As approved by the Reply on the Approval of the Registration of Foshan Electrical and Lighting Co., Ltd. for the Issue of Shares
to Specific Objects (ZJXK [2023] No. 1974) issued by the China Securities Regulatory Commission ("CSRC"), the Company
issued 186,783,583 RMB-denominated ordinary shares (A shares) to specific objects at an issuance price of RMB5.86 per share.
As of 9 November 2023, the Company had actually issued 186,783,583 RMB-denominated ordinary shares (A shares) to 13
specific objects. The total amount raised was RMB1,094,551,796.38. Exclusive of the issuance costs including underwriting fees,
sponsor fees, audit fees, and attorney's fees equivalent to RMB6,136,307.56, the Company had actually raised net proceeds of
RMB1,088,415,488.82. The availability of the above proceeds has been verified by China Central Public Accounting Firm
(special general partnership), which issued the Capital Verification Report Z.H.Y.Z. (2023) No. 0500031.
As of the end of 2023, the amount of raised funds actually received by the Company was RMB1,091,377,596.17. In 2023,
RMB0.00 in the raised funds account was directly used in raised funds investment projects, a total self-pooled amount of
RMB87,975,313.46 was input in advance to the raised funds investment projects and awaited swap, and another amount of
RMB2,603,975.16 also awaited swap, which was the total of the self-pooled amount that had been paid in advance for issuance
costs and stamp duty and the issuance costs to be paid. These amounts that awaited swap have been verified by WUYIGE
Certified Public Accountants LLP, which issued the Verification Report D.X.Z.S.Z. [2023] No. 22-00052. And these amounts still
awaited swap by 31 December 2023. As of 31 December 2023, the balance was RMB1,091,632,250.94.
In the first half of 2024, RMB34,791,287.54 from the raised funds was directly used by the Company in raised funds investment
projects. As of 30 June 2024, the amount of raised funds cumulatively used by the Company was RMB122,766,601 and the
unused amount was RMB967,713,575.12.
The Company's use of the raised funds was subject to approval by dedicated personnel to ensure that the funds were earmarked for
their specific purposes only.
(2) Promised Use of Raised Funds
Applicable □ Not applicable
Unit: RMB’0,000
Promised Re- Total Adjusted Investme Cumulat Investme Time Returns Meeting Significa
project purpos promise total nt in the ive nt when the derived the nt
funded ed or d investme Reportin investme progress project in the expected change
with raised partial investme nt g Period nt as at the is ready Reportin returns to
29
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
funds and ly re- nt amount amount period- for its g Period or not project
investment purpos amount (1) at the end (3) intended feasibilit
with over- ed or with period- ＝(2)/(1) use y or not
raised not raised end (2)
funds funds
Promised projects
1. FSL’s
automation 1
36,464.2 35,850.6
and No 730.63 1,024.3 2.86% Novemb - N/A No
7 4 er 2026
digitalizati
on project
2. FSL’s
Hainan
25,252.9 25,252.9 1 May
industrial No 1,590.72 8,955.29 35.46% - N/A No
1 1 2025
park Phase
I
3. The
smart
1 May
street No 9,179.52 9,179.52 1.3 67.44 0.73% - N/A No
2025
lights
project
4. The
vehicle
light 1 May
No 24,008.8 24,008.8 801.06 951.59 3.96% - N/A No
module 2025
production
project
5. The
R&D
14,549.6 14,549.6 1 May
centre No 355.42 1,278.04 8.78% - N/A No
8 8 2026
constructio
n project
Subtotal of
109,455. 108,841. 12,276.6
promised -- 3,479.13 -- -- - -- --
18 55 6
projects
Use of over-raised funds
N/A
109,455. 108,841. 12,276.6
Total -- 3,479.13 -- -- - -- --
18 55 6
Explain
the
circumstan
ces and
On 18 June 2024, the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th
reasons for
Supervisory Committee, reviewing and passing the Proposal on Extending the R&D Centre Construction Project
failing to
Time. According to the construction status and implementation progress of the raised funds investment project, and
achieve the
in light of the demand for products in the downstream market, the relevant R&D projects planned for the
planned
Company's R&D centre are currently progressing steadily and the purchase of relevant R&D equipment and R&D-
progress
related software is under way in succession. However, as some experimental equipment needs to be customised and
and
the R&D equipment is characterised by small batches and multiple varieties, not all equipment has been procured,
expected
installed or commissioned adequately. In view of the above reasons, the Company agreed to extend the construction
returns by
period of the raised funds investment project "R&D centre construction project" by two years, that is, to extend the
item
time for the raised funds investment project to reach the intended status of use to May 2026.
(including
the reason
for
selecting
30
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
“N/A”
for
“Meeting
the
expected
returns or
not”)
Particulars
about
significant
No in the Reporting Period
change to
project
feasibility
Amount,
purpose
and use
N/A
progress of
over-raised
funds
Change of
implement
ation
location of
N/A
raised
funds
investment
projects
Applicable
Adjustmen
Occurred during the Reporting Period
ts to the
On 18 June 2024, the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th
way of
Supervisory Committee, reviewing and passing the Proposal on Adding Implementation Entities and Special
implement
Accounts for Raised Funds to Some Raised Funds Investment Projects and agreed to add FSL Chanchang Lighting
ation of
Co., Ltd. (hereinafter referred to as "Chanchang Company"), a wholly-owned subsidiary of the Company, as one of
raised
the implementation entities for the raised funds investment project "FSL's automation and digitalisation project". In
funds
consequence, the implementation entities of the raised funds investment project changed from the Company to the
investment
Company and Chanchang Company. The adjustment did not involve any change to the amount or purpose of the
projects
raised funds.
Advance Applicable
investment
s in
On 16 January 2024, the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the
promised
9th Supervisory Committee, reviewing and passing the Proposal on Using Raised Funds to Replace Self-raised
projects
Funds for Pre-invested Capital Projects and Paid Issuance Expenses and agreed based on the actual situation of the
funded
Company to use the raised funds to replace self-raised funds of RMB87,975,313.46 used for pre-invested capital
with raised
projects. Specifically, self-raised funds of RMB2,603,975.16 for paid issuance expenses would be replaced. By
funds and
January 2024, the Company had completed the swap of all the self-pooled funds.
subsequent
swaps
Use of idle
raised
funds for
temporaril
y N/A
supplemen
ting the
working
capital
31
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Surplus
amount of
raised
funds upon
N/A
project
implement
ation and
the reasons
Purpose
and As of 30 June 2024, the total amount of raised funds unused by the Company was RMB967,713,600. Specifically,
whereabou the balance of bank deposits deposited in the special account for raised funds was RMB368,713,600, and the
ts of amount of idle raised funds utilised for cash management and not yet due for redemption was RMB599 million. The
unused raised funds unused by the Company would be put into use according to the subsequent progress of the raised funds
raised investment projects.
funds
Problems On 16 January 2024, the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the
or other 9th Supervisory Committee, reviewing and passing the Proposal on Using Raised Funds to Provide Subsidiaries
issues with Loans for Implementing Raised Funds Investment Projects. Given that the implementation of the raised funds
arising in investment project "FSL Hainan Industrial Park I" is organised by Fozhao (Hainan) Technology Co., Ltd.
the use and (hereinafter referred to as "Hainan Technology"), a wholly-owned subsidiary of the Company, to guarantee the
disclosure successful implementation of the raised funds investment project, the Board of Directors agreed that the Company
of raised might use raised funds to provide an interest-free loan for Hainan Technology, with the total loan amount not
funds exceeding RMB252,529,100 and a loan term of three years.
(3) Re-purposed Raised Funds
□ Applicable Not applicable
No such cases in the Reporting Period.
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable Not applicable
VIII 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
Relationshi
Principal Registered Operating Operating
Name p with the Total assets Net assets Net profit
activity capital revenue profit
Company
Foshan Manufactur 618,477 6,457,769 3,825,359 1,853,708 52,118,60 56,242,43
Subsidiary
NationStar ing ,169.00 ,957.80 ,009.05 ,942.97 6.78 2.00
32
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Relationshi
Principal Registered Operating Operating
Name p with the Total assets Net assets Net profit
activity capital revenue profit
Company
Optoelectro
nics Co.,
Ltd.
Nanning
Liaowang Manufactur 35,055, 2,521,919 947,530,0 835,320,1 28,936,82 28,661,21
Subsidiary
Auto Lamp ing 700.00 ,065.89 76.32 28.96 9.29 4.92
Co., Ltd.
FSL Zhida
Electric Manufactur 38,150, 202,961,6 94,198,46 114,780,2 11,507,69 9,873,512
Subsidiary
Technolog ing 000.00 71.83 8.73 81.05 9.77 .27
y Co., Ltd.
FSL
Chanchang
Manufactur 72,782, 859,535,1 350,844,1 502,704,2 47,008,72 39,756,03
Optoelectro Subsidiary
nics Co.,
ing 944.00 00.78 26.12 02.93 2.42 1.83
Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
Applicable □ Not applicable
How the subsidiary was obtained or Impact on overall operations and
Name
disposed of in the Reporting Period performance
Fozhao Huaguang (Maoming) No significant impact on the Company’s
Newly established
Technology Co., Ltd. production and performance
Gaozhou NationStar Lighting No significant impact on the Company’s
Newly established
Technology Co., Ltd. production and performance
Information about major majority- and minority-owned subsidiaries:
—In a major asset restructuring in February 2022, the Company acquired a 21.32% interest in Foshan NationStar
Optoelectronics Co., Ltd. (NationStar) from Rising Holdings and its acting-in-concert party. Upon the conclusion
of the transaction, the Company eventually holds a 21.48% interest in NationStar, and NationStar has become a
majority-owned subsidiary of the Company. The Company has included NationStar in its consolidated financial
statements since Q1 2022.
—Nanning Liaowang Auto Lamp Co., Ltd. signed an equity agreement with its existing shareholders in July 2021,
and acquired Nanning Liaowang through equity acquisition and capital increase and share expansion. Upon the
conclusion of the transaction, the Company eventually holds a 53.79% interest in Nanning Liaowang, and
Nanning Liaowang has become a majority-owned subsidiary of the Company. The Company has included
Nanning Liaowang in its consolidated financial statements from the date when the Company obtained actual
control of it.
—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. FSL Zhida changed its registered capital on
the basis of paid-in-capital on 16 January 2023. Upon the completion of the change, the Company holds a stake of
33
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
66.84% in it. The Company has included FSL Zhida in its consolidated financial statements since the date of FSL
Zhida’s incorporation.
—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 FSL Chanchang
Optoelectronics Co., Ltd.
IX Structured Bodies Controlled by the Company
□ Applicable Not applicable
X Risks Facing the Company and Countermeasures
1. Risks of macro economic fluctuations and fiercer market competition
At present, economic uncertainties remain at home and abroad. If economic growth continues to slow down, it
may have an adverse impact on the development of the industry. Meanwhile, the lighting industry is a fully
competitive industry. And as market demand slows down in growth, the Company could be facing fiercer
competition.
Countermeasures: The Company will adhere to the set strategies, spend greater effort in developing new products,
constantly refine the business portfolio, and actively explore segment markets such as intelligent lighting, healthy
lighting, ocean lighting, animal and plant lighting. It will also accelerate the introduction of new manufacturing
processes, technologies and products to the market for new competitive edges. At the same time, by optimizing
marketing network and strengthening the business focus and expansion on domestic and foreign major customers,
the Company will improve service quality, strengthen internal management, and increase core competitive
capacity constantly.
2. Risk of raw material price fluctuations
34
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
The main raw materials of the Company and its subsidiaries include chips, lamp beads, electronic components,
aluminum substrates, plastic parts, metal materials, etc., and the price fluctuations of main raw materials will have
an impact on the Company's production costs. If the price of raw materials continues to rise in the future, it may
adversely affect the Company's production and operation.
Countermeasures: The Company will pay attention to market dynamics, collect information, analyze and pre-
judge supply of main raw materials and price trends, so as to make excellent sourcing plans. By enhancing
negotiation, refining suppliers, perfecting supply chain management, and promoting alternative materials, the
Company is able to decrease procurement costs.
3. Risk of exchange rate fluctuations
The overseas sales of the Company exceed 20%, which are mainly settled in USD. If RMB experiences
significant appreciation, the price competitiveness of overseas sales could be undermined and exchange losses
may increase, which will produce adverse impacts on the Company’s net profit.
Countermeasures: By keeping abreast of and analyzing exchange rate policies and fluctuation trend of settlement
currencies in time, intensifying settlement currency management, ,and carrying out foreign exchange hedging
business when the timing is right, the Company can relatively lock in exchange rates and minimize the risks
brought by exchange rate fluctuations.
4. Risk associated with the recoverability of accounts receivable
Receivables grow along with the Company's business. Customers who fail to repay loans timely or become
insolvent, due to changes in macroeconomic trends, market environments, and their business, will place the
Company at the risk of non-performing receivables.
Countermeasures: In order to reduce the receivable collection risk, the Company can constantly optimize the
receivable risk management system, categorize and manage customers, regularly assess customers' credit profiles,
and enhance customer risk assessment. Meanwhile, it can reinforce contract approval and management, double its
effort to collect receivables, and incorporate the collection of receivables into the performance assessment system
for business departments.
XI Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.
□ Yes No
35
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Resolutions of the
Meeting Type Convened date Disclosure date
participation ratio meeting
The First Resolutions of the
Extraordinary Extraordinary First Extraordinary
41.42% 26 February 2024 27 February 2024
General Meeting General Meeting General Meeting
of 2024 of 2024
Resolutions of the
The 2023 Annual Annual General
41.16% 14 May 2024 15 May 2024 2023 Annual
General Meeting Meeting
General Meeting
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
II Change of Directors, Supervisors and Senior Management
Applicable □ Not applicable
Name Office title Type Date Reason
Wan Shan Chairman of the Board Elected 26 February 2024 Elected
Director Elected 26 February 2024 Elected
Zhang Xuequan Appointed as General
General Manager Appointed 21 December 2023
Manager
Chen Mingjie Director Elected 26 February 2024 Elected
Appointed as
Executive Deputy
Zhang Yong Appointed 5 February 2024 Executive Deputy
General Managerv
General Managerv
Wu Shenghui Chairman of the Board Left 23 February 2024 Job transfer
Deputy General
Wei Bin Left 19 January 2024 Job transfer
Manager
Huang Zhiyong Director Left 5 February 2024 Job transfer
Supervisor, Chairman
Chen Xinjie of the Supervisory Elected 14 May 2024 Elected
Committee
Li Zehua Director Elected 14 May 2024 Elected
Engaged as Deputy
Zeng Xiaojing Senior management Engaged 14 May 2024
General Manager
III Interim Dividend Plan
□ Applicable Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
36
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □ Not applicable
1. Equity incentives
On 12 June 2023, the 2023 Restricted Share Incentive Plan (Draft), together with other relevant proposals, were
approved at the 44th Meeting of the Ninth Board of Directors and the 22nd Meeting of the Ninth Supervisory
Committee. As such, the Company intended to grant no more than 13,000,000 restricted shares to 262 awardees.
To be specific, there were 11.7 million shares for the first grant, accounting for 90.00% of the total grant under
the incentive plan; and there were 1.3 million reserved shares, accounting for 10.00% of the total grant under
the incentive plan. The restricted shares were A-stock ordinary shares repurchased by the Company. And the
grant price for the first grant was RMB3.81/share. This equity incentive plan is subject to approval by the State-
owned Assets Supervision and Administration Commission of Guangdong Province and a general meeting of
shareholders of the Company. For further information, see the 2023 Restricted Share Incentive Plan (Draft) and
Its Summary and other relevant proposals that have been disclosed on http://www.cninfo.com.cn/ dated 13 June
2023.
2. Implementation of Employee Stock Ownership Plans
□ Applicable Not applicable
3. Other Incentive Measures for Employees
□ Applicable Not applicable
37
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part V Environmental and Social Responsibility
I Major Environmental Issues
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
Environmental policies and standards:
During production and operations, the Company conscientiously implemented guidelines and policies for
environmental protection at all levels and strictly observed relevant laws and regulations for environmental
protection, such as Law of the People's Republic of China on Environmental Protection, Law of the People's
Republic of China on Prevention and Control of Air Pollution, Law of the People's Republic of China on
Prevention and Control of Water Pollution, Law of the People's Republic of China on Prevention and Control of
Environmental Pollution by Solid Waste, and Law of the People's Republic of China on Prevention and Control
of Noise Pollution. Meanwhile, it has put in place facilities for pollution prevention and control, and ensures the
stable operation of facilities. Additionally, the Company regularly commissions third parties to carry out
monitoring work in accordance with the requirements of the Environmental Monitoring Management Measures
to ensure that all pollutants are discharged in accordance with the standards.
Environment-related administrative permits:
Name of the
Administrative
Company or its Permit No. Date of grant Effective period
permit granted
subsidiary
Pollutant Discharge
Foshan Electrical
Registration for
and Lighting Co.,
Stationary Source of
91440000190352575W001W 17 March 2020 5 years
Ltd.
Pollutant
Foshan Electrical
and Lighting Co., Pollutant Discharge
Ltd. Gaoming Permit
91440600784850061B001U 1 June 2023 5 years
Branch
Foshan Taimei
Pollutant Discharge
Times Lamp Co.,
Permit
91440600782035581D001Q 17 November 2022 5 years
Ltd.
Pollutant Discharge
FSL Chanchang Registration for
Lighting Co., Ltd. Stationary Source of
91440600779203775W 18 March 2020 5 years
Pollutant
Pollutant Discharge
FSL Zhida Electric
Registration for
Technology Co.,
Stationary Source of
91440605MA4UWNPY98001W 1 September 2021 5 years
Ltd.
Pollutant
Pollutant Discharge
Foshan Haolaite
Lighting Co., Ltd.
Registration for 91440604MA552Q66XM001W 14 January 2021 5 years
Stationary Source of
38
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Name of the
Administrative
Company or its Permit No. Date of grant Effective period
permit granted
subsidiary
Pollutant
Foshan Electrical Pollutant Discharge
and Lighting Co., Registration for
Ltd. Gaoming Stationary Source of
914406005666224665001Y 20 August 2021 5 years
Lamp Branch Pollutant
Pollutant Discharge
Nanning Liaowang
Registration for
Auto Lamp Co.,
Stationary Source of
914501001983431121001Y 17 March 2020 5 years
Ltd.
Pollutant
Liuzhou Guige
Lighting Pollutant Discharge
Technology Co., Permit
914502000836092085001V 18 July 2023 5 years
Ltd.
Chongqing
Guinuo Lighting Pollutant Discharge
Technology Co., Permit
9150000035128048Y001Q 25 September 2022 5 years
Ltd.
Qingdao Guige Pollutant Discharge
Lighting Registration for
Technology Co., Stationary Source of
913702820530892807001W 26 November 2021 5 years
Ltd. Pollutant
Foshan
NationStar Pollutant Discharge
Permit
914406001935264036001X 24 June 2024 5 years
Optoelectronics
Co., Ltd.
Foshan NationStar
Pollutant Discharge
Semiconductor
Permit
91440600570160743B001Q 12 January 2024 5 years
Co., Ltd.
Guangdong
Pollutant Discharge
Fenghua
Registration for
Semiconductor
Stationary Source of
91440000725451562J001Y 27 February 2020 5 years
Technology Co.,
Pollutant
Ltd.
Discharge standards and pollutants discharged in production and operation activities:
Name of Type of Name of
Discharge
the Major and Major and Outlet Pollutant Total Total
Discharge Outlet Concentrat Excessive
Company Characteri Characteri Distributio Discharge Actual Discharge
Method Quantity ion Discharge
or its stic stic n Standards Discharge Approved
/intensity
subsidiary Pollutants Pollutants
Emission
Foshan
Standards
Electrical
Discharge for Air
and Exhaust d in an In the SO2: 280 Pollutants SO2:
Lighting SO2 1 0.48437 No
gas organized plant mg/m3 in Glass 40.597 t/y
Co., Ltd.
manner Industry
Gaoming
(DB44/21
Branch
59-2019)
Emission
Foshan
Standards
Electrical
Discharge for Air
and Exhaust Oxynitride Oxynitride
d in an In the Pollutants
Lighting Oxynitride 1 : 19.6186 : 149.839 No
gas organized plant in Glass
Co., Ltd. 550mg/m3 t/y
manner Industry
Gaoming
(DB44/21
Branch
59-2019)
Xylene,
SO2,
nitrogen Integrated
Liuzhou oxide, Discharge Emission
Discharge
Guige benzene, d upon Standards
Exhaust d in an In the
Lighting toluene, 1 reaching of Air / / No
gas organized plant
Technolog particulate applicable Pollutants
manner
y Co., Ltd. matter, standards (GB16297
volatile -1996)
organic
matter
39
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Name of Type of Name of
Discharge
the Major and Major and Outlet Pollutant Total Total
Discharge Outlet Concentrat Excessive
Company Characteri Characteri Distributio Discharge Actual Discharge
Method Quantity ion Discharge
or its stic stic n Standards Discharge Approved
/intensity
subsidiary Pollutants Pollutants
Integrated
Liuzhou Discharge Emission
Volatile Discharge
Guige d upon Standards
Exhaust organic d in an un- In the
Lighting 2 reaching of Air / / No
gas compound organized plant
Technolog applicable Pollutants
s manner
y Co., Ltd. standards (GB16297
-1996)
Foshan Discharge COD:21m
COD:1.43
NationStar COD, and d by Wastewate g/L
Wastewate GB39731- t/a
Optoelectr ammonia standards 1 r treatment Ammonia: / No
r 2020 Ammonia:
onics Co., nitrogen after station 0.035mg/
0.00238t/a
Ltd. treatment L
Roof of
the Total
Total Building VOCs:0.2 Total
Foshan VOCs, Discharge West and 2mg/m VOCs:0.1
DB44/814
NationStar non- d by Building Non- 9t/a Non-
Exhaust -2010DB
Optoelectr methane standards 3 East in methane methane / No
gas 44/2367-
onics Co., total after south area, total Hydrocarb
2022
Ltd. hydrocarb treatment roof of hydrocarb ons:6.37
ons Building ons:7.395 t/a
A in north mg/m
area
Daytime
Foshan
57
NationStar Discharge
Nighttime GB12348-
Optoelectr Noise Noise d by / / / / No
49 2008
onics Co., standards
Unit:
Ltd.
dB(A)
COD：
Foshan COD：
Discharge 43.12mg/ COD：
NationStar 2.199751t/
COD, and d by Wastewate L 9.771t/a
Semicond Wastewate DB44/26- a
ammonia standards 1 r treatment Ammonia Ammonia No
uctor r 2001 Ammonia
nitrogen after station nitrogen: nitrogen :1
Technolog nitrogen :0
treatment 2.569mg/ .221t/a
y Co., Ltd. .054532t/a
L
Foshan GB14554-
Discharge
NationStar Total 93DB44/2
d by Total Total
Semicond Exhaust Total Roof of a VOCs： 7-
standards 7 VOCs： VOCs： No
uctor gas VOCs building 1.421mg/ 2001DB44
after 1.0736t/a 6.757t/a
Technolog m /2367-
treatment
y Co., Ltd. 2022
Foshan Daytime
NationStar 59
Discharge
Semicond Nighttime GB12348-
Noise Noise d by / / / / No
uctor 49 2008
standards
Technolog Unit:
y Co., Ltd. dB(A)
Guangdon The main
Discharge
g Fenghua drain is
d by
Semicond Wastewate located COD： DB44/26 COD:2.03
COD standards 1 / No
uctor r next to the 19mg/L —2001 t/a
after
Technolog north duty
treatment
y Co., Ltd. room
Guangdon Exhaust Particulate Discharge Roof of Particulate DB44/27- Particulate
7 / No
g Fenghua gas matter, d by the plant I Matter: 2001 Matter:
40
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Name of Type of Name of
Discharge
the Major and Major and Outlet Pollutant Total Total
Discharge Outlet Concentrat Excessive
Company Characteri Characteri Distributio Discharge Actual Discharge
Method Quantity ion Discharge
or its stic stic n Standards Discharge Approved
/intensity
subsidiary Pollutants Pollutants
Semicond total standards 4.3mg/m, 0.089t/a
uctor VOCs after total Total
Technolog treatment VOCs:0.4 VOCs:0.0
y Co., Ltd. 6mg/m 12t/a
Guangdon Daytime
g Fenghua 48
Discharge
Semicond Nighttime GB12348-
Noise Noise d by / / / / No
uctor 45 2008
standards
Technolog Unit:
y Co., Ltd. dB(A)
Pollutant treatment:
Emission and treatment of the Company's main pollutants:
(1) Exhaust gas:
FSL: The flue gas of glass kilns and the high-temperature melting of glass raw materials generated air
pollutants, such as sulphur dioxide, nitric oxide, and smoke, during the manufacturing of semi-products, such as
glass bulb shells and lamp tubes. Such flue gas was treated with semi-dry desulfurization, electric precipitation,
and SCR denitration. Upon treatment, the standard limits for glass kilns in the Emission Standards for Air
Pollutants in Glass Industry (DB44/2159-2019): Table 1 Emission Limits of Air Pollutants were met.
Nanning Liaowang: Exhaust gases like volatile organic compounds (VOCs), were mainly generated during the
manufacturing of auto luminary, which were treated through Regenerative Thermal Oxidizer (RTO) catalytic
combustion and UV activated carbon adsorption. Upon treatment, the discharge limits and requirements
stipulated in Comprehensive Discharge Standards for Air Pollution (GB16297-1996) were met.
NationStar Optoelectronics: The manufacturing of LED mainly caused pollutants such as VOCs, NMHC, and
particulate matters, which was treated through three grades of dry filtration + secondary activated carbon
adsorption and three grades of dry filtration + activated carbon adsorption concentration + catalytic combustion.
Upon treatment, the Emission Limits of Air Pollutants (DB44/27-2001), the Emission Standard of Odor
Pollutants (GB14554-93), and the Integrated Emission Standard of Volatile Organic Compounds for Stationary
Pollution Source (DB44/ 2367—2022) were met.
NationStar Semiconductor: a) Pollutants, such as ammonia gas, was mainly generated during the
manufacturing of LED epitaxial wafers. Upon treatment through ammonia recycling, the Emission Standards
for Odour Pollutants (GB14554-93): Table 2 was met. b) The manufacturing of LED chips mainly caused
pollutants such as sulfuric acid mist, hydrochloric acid mist, chlorine, hydrogen chloride, fluorides, and
particulate matters. Upon treatment through Scrubber combustion-based washing and spraying equipment and
41
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
scrubbing towers for acid and alkali exhaust gas, the Emission Limits of Air Pollutants (DB44/27-2001) of
Guangdong Province: Standard Class II for Time Period II were met. c) Wastes, such as acetone, isopropyl
alcohol, esters, ethers, and amines, were mainly caused during the manufacturing of LED chips. Upon treated
through water spray + dehumidification and fog removal + secondary activated carbon adsorption, the discharge
limits and requirements stipulated in Table 1 of the Integrated Emission Standard of Volatile Organic
Compounds for Stationary Pollution Source (DB44/ 2367—2022) were met.
Fenghua Semiconductor: The sealing test of electronic components mainly generated pollutants, such as dust
and particulate matters, organic exhaust gas, sulfuric acid mist, and hydrogen chloride mist. Through filter vats
and activated carbon adsorption, and spraying alkali liquor for neutralization, the Emission Limits of Air
Pollutants (DB44/27-2001) of Guangdong Province: Standard Class II for Time Period II were met.
(2) Wastewater:
FSL: The Company's wastewater mainly came from offices and living. Domestic wastewater was treated with a
tertiary septic tank. Oily sewage from the canteen was pre-treated with an oil and residue separation system, and
then transferred to wastewater treatment stations for centralized treatment. Upon treatment, the discharge limits
and requirements stipulated in the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong
Province: Standard Class III for Time Period II were met.
Nanning Liaowang: The manufacturing of auto luminary did not generate industrial wastewater and mainly
caused wastes, such as domestic wastewater. Upon treatment through physicochemical and biochemical, the
discharge limits and requirements stipulated in the Level 1 standards of the Integrated Wastewater Discharge
Standard (GB 8978-1996) were met.
NationStar Optoelectronics: Wastes, such as COD and ammonia nitrogen, was mainly generated during the
manufacturing of LED products. Upon treatment through coagulation, sedimentation, and frame filtering, the
discharge limits and requirements stipulated in the Discharge Standard of Water Pollutants for Electronic
Industry (GB39731-2020) and the Discharge Limits of Water Pollutants (DB44/26-2001) were met.
NationStar Semiconductor: The manufacturing of LED chips mainly generated wastes, such as COD,
ammonia nitrogen, SS, and fluorides. Upon treatment through physicochemical and biochemical, the indirect
discharge limits and requirements stipulated in the Table 1 of the Discharge Standard of Water Pollutants for
Electronic Industry (DB39731-2020) were met.
42
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Fenghua Semiconductor: Pollutants, such as COD, ammonia nitrogen, and heavy metals, were mainly
generated during the sealing test of electronic components. Through physicochemical and biochemical
treatment, MBR films, and reverse osmosis (RO) membranes, the discharge limits and requirements stipulated
in the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong Province: Standard Class III for
Time Period II.
(3) Noises:
FSL: Noises mainly came from the operation of production machinery. Specifically, water pumps and fans that
would cause loud noises were placed in a soundproof room or covered with a noise enclosure. Hush pipes were
attached to exhaust gas exhaust pipes that would cause loud noises.
Nanning Liaowang: Noises mainly came from the operation of production machinery. Specifically, basic
damping, soundproof rooms, and soundproof cottons were applied to injection moulding and friction welding
that would cause loud noises. The Emission Standard for Noise of Industrial Enterprises at Boundary
(GB12348-2008): Standard Class III was met.
NationStar Optoelectronics: Noises mainly included mechanical and aerodynamic noises. Specifically,
production and process equipment were placed in a closed workshop. Soundproof rooms, vibration dampers,
and noise enclosures were adopted for Equipment, such as air compressors, water pumps, and fans, that would
cause loud noises.
NationStar Semiconductor: Noises mainly included mechanical and aerodynamic noises. Production and
process equipment was placed in a closed workshop. Soundproof rooms, vibration dampers, and noise
enclosures were adopted for equipment, such as air compressors, water pumps, and fans, that would cause loud
noises.
Fenghua Semiconductor: Noises mainly came from the operation of production machinery. Specifically, water
pumps and fans that would cause loud noises were placed in a soundproof room or covered with a noise
enclosure.
Construction and operation of pollution prevention and control facilities:
Date of
Total Date of
Constructio Design
No Investment Operation Actual Operatin
Facility n Operator Processes processing
. (RMB10,00 (MM/YYY capacity g hours
(MM/YYY capacity
0) Y)
Y)
Semi-dry flue gas
Exhaust gas desulphurization
November 2015 Gaoming 60000m3/
1 treatment 500 (SDFGD) + electric 60000m3/h 24h/d
2015 December Branch h
facilities precipitation + SCR
denitration
43
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Date of
Total Date of
Constructio Design
No Investment Operation Actual Operatin
Facility n Operator Processes processing
. (RMB10,00 (MM/YYY capacity g hours
(MM/YYY capacity
0) Y)
Y)
Exhaust gas Cyclone plate tower +
September Taimei 12000 m3/
2 treatment 30 May 2020 activated carbon 12000 m3/h 12h/d
2019 Company h
facilities adsorption
Conditioning +
Wastewater
September Taimei coagulation +
3 treatment 130 May 2020 120m/d 120m/d 12h/d
2019 Company sedimentation + air
facilities
flotation + filtration
Exhaust gas
Chanchang activated carbon
4 treatment 20 August 2014 August 2015 8000m3/h 8000m3/h 12h/d
Company adsorption
facilities
Exhaust gas UV photocatalytic
September October Zhida 35000m3/
5 treatment 48 oxidation + activated 35000m3/h 12h/d
2020 2021 Company h
facilities carbon adsorption
Photo-
Oxygen-
Activated carbon
Activated December 2022 Nanning 70000 ㎡
6 28 adsorption + UV photo- 70000 ㎡/h 24h/d
Carbon All- 2021 October Liaowang /h
oxidation catalysis
in-One
Machine
VOCs
organic
waste gas 10,000 9500
RTO December 2017 Liuzhou Activated carbon cubic cubic
7 500 24h/d
(regenerativ 2016 March Lighting adsorption + incineration meters per meters per
e thermal hour hour
incinerator)
oxidizer
VOC
organic
February Qingdao activated carbon 32000 ㎡
8 waste gas 28.11 June 2018 32000 ㎡/h 8h/d
2019 Lighting adsorption /h
treatment
facility
RTO
Zeolite
(Regenerativ October Chongqing 75000 ㎡
9 500 May 2018 adsorption+desorption+R 75000 ㎡/h 24h/d
e Thermal 2017 Guinuo /h
TO catalytic combustion
Incinerator)
UV Zeolite Adsorption +
October Chongqing 70000 ㎡
10 photocatalys 200 May 2018 Dedusting + UV 70000 ㎡/h 24h/d
2017 Guinuo /h
is Photocatalysis
Wastewater
Coagulation and
11 treatment 39.5 April 2017 May 2017 NationStar 600t/d 227.1t/d 24h/d
sedimentation
station
Method for
treating the
Dry filtration + secondary
exhaust 54330m
12 May 2023 June 2023 NationStar activated carbon 80000m/h 24h/d
gases of the h
adsorption
plant in the
west
259
Method for
treating the
Dry filtration + secondary
exhaust 65411m
13 May 2023 June 2023 NationStar activated carbon 110000m/h 24h/d
gases of the h
adsorption
plant in the
east
Exhaust gas Headquarters Dry filtration + activated
control of NationStar carbon adsorption 60000m
14 93 March 2024 April 2024 60000m/h 24h/d
facilities in Optoelectroni concentration + catalytic h
north area cs combustion
NATIONSTA
Wastewater
September December R Physiochemical and
15 treatment 356.7 1080t/d 287.83t/d 24h/d
2012 2012 Semiconducto biochemical processing
station
r
Method for November NATIONSTA ≥2000Nm3/
16 treating 467.9 July 2023 R Ammonia recovery unit 6546m/h 24h/d
2023 h
MOCVD Semiconducto
44
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Date of
Total Date of
Constructio Design
No Investment Operation Actual Operatin
Facility n Operator Processes processing
. (RMB10,00 (MM/YYY capacity g hours
(MM/YYY capacity
0) Y)
Y)
exhaust gas r
Method for
NATIONSTA Scrubber combustion
treating acid
September November R water washing spray 16607m
17 and alkali 348.405 45000m/h 24h/d
2012 2012 Semiconducto device + acid and alkali h
exhaust
r waste gas scrubber device
gases
Method for
NATIONSTA Scrubber combustion
treating acid
September November R water washing spray 13166m
18 and alkali 348.405 40000m/h 24h/d
2012 2012 Semiconducto device + acid and alkali h
exhaust
r waste gas scrubber device
gases
Method for
NATIONSTA Scrubber combustion
treating acid
November R water washing spray
19 and alkali 106.2 July 2023 40000m/h 7366 m/h 24h/d
2023 Semiconducto device + acid and alkali
exhaust
r waste gas scrubber device
gases
Water spray +
Method for NATIONSTA
dehumidification and fog
treating November R
20 119.87 July 2023 removal + secondary 20000m/h 4824 m/h 24h/d
organic 2023 Semiconducto
activated carbon
exhaust gas r
adsorption
Water spray +
Method for NATIONSTA
dehumidification and fog
treating November R 24410m
21 362.07 July 2023 removal + secondary 40000m/h 24h/d
organic 2023 Semiconducto h
activated carbon
exhaust gas r
adsorption
Water spray +
Method for NATIONSTA
dehumidification and fog
treating November R 10516m
22 362.07 July 2023 removal + secondary 20000m/h 24h/d
organic 2023 Semiconducto h
activated carbon
exhaust gas r
adsorption
Physicochemical,
Wastewater Fenghua
October biochemical, reverse
23 treatment 251 March 2016 Semiconducto 140t/d 70t/d 24h/d
2016 osmosis RO membrane
station r
processing technology
Exhaust gas Fenghua Filter cartridge dust
January
24 control 20 August 2005 Semiconducto removal + activated 15000m/h 7728m/h 24h/d
2006
facilities r carbon adsorption
Exhaust gas Fenghua Filter cartridge dust
January
25 control 20 August 2005 Semiconducto removal + activated 15000m/h 7728m/h 24h/d
2006
facilities r carbon adsorption
Exhaust gas Fenghua Filter cartridge dust
January
26 control 20 August 2005 Semiconducto removal + activated 15000m/h 7728m/h 24h/d
2006
facilities r carbon adsorption
Exhaust gas Fenghua Filter cartridge dust
January
27 control 20 August 2005 Semiconducto removal + activated 15000m/h 7728m/h 24h/d
2006
facilities r carbon adsorption
Exhaust gas Fenghua
January
28 control 19 August 2006 Semiconducto Lye spray 11000m/h 9000m/h 24h/d
2006
facilities r
Exhaust gas Fenghua
January
29 control 19 August 2006 Semiconducto Lye spray 11000m/h 9000m/h 24h/d
2006
facilities r
Exhaust gas January Fenghua
30 19 August 2006 Lye spray 11000m/h 9000m/h 24h/d
control 2006 Semiconducto
45
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Date of
Total Date of
Constructio Design
No Investment Operation Actual Operatin
Facility n Operator Processes processing
. (RMB10,00 (MM/YYY capacity g hours
(MM/YYY capacity
0) Y)
Y)
facilities r
Contingency plan for environmental emergencies:
The Company formulated the Contingency Plan for Environmental Emergencies of Foshan Electrical and
Lighting Co., Ltd. Gaoming Branch (Including Risk Assessment Report and Material Survey of Environmental
Emergencies in August 2017, had it reviewed by experts on 13 September 2017, and had it filed with the Foshan
Municipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-2017-094-L) on 24
October 2017. This document was revised in August 2020, reviewed by experts again on 7 September 2020, and
filed with the Foshan Municipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-
2020-056-M) on 25 September 2020.
In June 2018, Liuzhou Guige Lighting Technology Co., Ltd. completed the preparation of the Emergency Plan for
Environmental Emergencies of Liuzhou Guige Lighting Technology Co., Ltd. (including the Risk Assessment
Report for Environmental Emergencies and the Investigation Report for Emergency Resources for Environmental
Emergencies), which was reviewed by experts and released, and filed with Liudong Branch of Liuzhou
Environmental Protection Bureau on 29 August 2018 (No. 450203-2018-022-1). In August 2021, the Emergency
Plan for Environmental Emergencies of Liuzhou Guige Lighting Technology Co., Ltd. (including the Risk
Assessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources for
Environmental Emergencies) was updated and compiled, passed the expert review and released, and on 27
December 2021, the Emergency Plan was filed with the Ecological Environment Bureau of Liudong New Area,
Liuzhou City (No. 450203-2021-0019-L). The Emergency Plan for Environmental Emergencies of Liuzhou Guige
Lighting Technology Co., Ltd. (including the Risk Assessment Report for Environmental Emergencies and the
Investigation Report for Emergency Resources for Environmental Emergencies) was signed and issued on 30 May
2024. On 24 June 2024, the Emergency Plan was filed with the Ecological Environment Bureau of Liudong New
Area, Liuzhou City (No. 450203-2024-1006-L).
NationStar Optoelectronics revised the Contingency Plan for Environmental Emergencies of NationStar
Optoelectronics (Including Risk Assessment Report and Material Survey of Environmental Emergencies) in 2023
according to the requirements of the Management Methods for Environmental Emergencies, and had it filed with
the Foshan Municipal Ecology and Environment Bureau (Filing No.: 440604-2023-0040-L).
46
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
NationStar Semiconductor formulated the Contingency Plan for Environmental Emergencies of NationStar
Semiconductor (Including Risk Assessment Report and Material Survey of Environmental Emergencies)
according to the requirements of the Management Methods for Environmental Emergencies, and had it filed with
the Foshan Municipal Ecology and Environment Bureau (Filing No.: 440605-2023-0124-M) in 2023.
Fenghua Semiconductor formulated the Contingency Plan for Environmental Emergencies of Guangdong
Fenghua Semiconductor Technology Co., Ltd. (including Risk Assessment Report and Material Survey of
Environmental Emergencies) according to the requirements of the Management Methods for Environmental
Emergencies, and had it filed with the Guangzhou Municipal Ecology and Environment Bureau (Filing No.:
440112-2022-032-L) on in 2022.
Input in environmental governance and protection and the payment of environmental protection-related taxes:
During the Reporting Period, the input of the Company and its subsidiaries in the construction of environmental
protection facilities, the development of environmental protection standards, the treatment of exhaust gas,
wastewater, and waste residue, and routine detection totaled RMB5.5279 million, and their environmental
protection-related taxes paid amounted to RMB45,800.
Environmental self-monitoring plan:
Foshan Electrical and Lighting Co., Ltd. Gaoming Branch developed an environmental self-monitoring plan. It
entrusted a third-party environmental testing agency to perform the annual inspection of the exhaust outlet. All
the inspection results were lower than the standard limits. Meanwhile, it accepted the annual supervision and
monitoring by local environmental protection departments. All the monitoring results were lower than the
standard limits.
Liuzhou Guige Lighting Technology Co., Ltd. has put in place the Self-monitoring Plan of Liuzhou Guige
Lighting Technology Co., Ltd. It entrusted a third-party, Guangxi Huaqiang Environmental Monitoring Co.,
Ltd., to perform the annual inspection of the exhaust outlet. All the inspection results were lower than the
standard limits. Meanwhile, it accepted the annual supervision and monitoring by local environmental
protection departments. All the monitoring results were lower than the standard limits.
NationStar Optoelectronics, following the self-monitoring plan, entrusted a qualified third-party environmental
testing agency to perform inspection of various pollutants every half a year. All the inspection results were
lower than the standard limits. Meanwhile, it accepted the quarterly supervision and monitoring by local
environmental protection departments. All the monitoring results were lower than the standard limits.
47
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Foshan NationStar Semiconductor Technology Co., Ltd. abided by its self-monitoring plan. It entrusted a
qualified third-party environmental testing agency to perform the inspection of the pollutants on a half-year
basis. All the inspection results were lower than the standard limits. Meanwhile, it accepted the quarterly
supervision and monitoring by local environmental protection departments. All the monitoring results were
lower than the standard limits.
According to its self-monitoring plan, Guangdong Fenghua Semiconductor Technology Co., Ltd. entrusted a
qualified third-party environmental testing agency to perform the inspection of the pollutants on a half-year basis.
All the inspection results were lower than the standard limits. Meanwhile, it accepted the quarterly inspection by
local environmental protection departments. All the monitoring results were lower than the standard limits.
Administrative punishments received with respect to environmental issues in the Reporting Period:
The Impact on the
Reason for
Company/subsidia Incompliance Punishment Company’s Rectification
punishment
ry operations
N/A N/A N/A N/A N/A N/A
Other environment-related information that should be disclosed:
None.
Measures taken during the Reporting Period to reduce carbon emissions and the impact:
Applicable □ Not applicable
During the Reporting Period, the Company reduced electricity consumption under the same output value by
selecting high-efficiency and energy-saving equipment. The Company insists on constantly publicizing
environmental protection knowledge to employees, improving their awareness of environmental protection, and
realizing the sustainable development goal of harmonious coexistence between enterprises and the environment
through the joint efforts of all employees.
Other relevant information:
None.
II Social Responsibility
The Company places a high value on corporate social responsibility and commitment. Adhering to the "create the
value of light" corporate mission, the Company vigorously performs its social responsibility and constantly
enhances its protection for the interests of stakeholders in order to create a healthy and beautiful life of light for
customers, create and improve the space for personal development for employees and help them achieve the value
48
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
of life, and contribute to the sound and sustainable development of 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
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
49
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
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
The Company fully implements the social responsibility strategy. By carrying out a series of specific actions
and projects, it actively gives back to society and promotes sustainable development. During the Reporting
Period, the Company took an active part in rural revitalisation, voluntary blood donations, volunteer services,
employee care, health promotion, social welfare, and other fields. The cumulative amount of its donations and
support exceeded RMB537,000. During the Reporting Period, the Company donated solar street lamps to
Qianfeng Town, Yuncheng District, Yunfu City for rural beautification and lighting. In its efforts to vigorously
promote industrial assistance, it purchased assistance products worth more than RMB480,000 from the
assistance recipients, which boosted the sales of local agricultural products. It also organised voluntary blood
donations for the spring of 2024, attracting 96 participants. Additionally, the Company raised RMB57,000 in its
"Graciously Supporting Rural Revitalisation" charitable donation event. Moreover, it launched volunteer
activities of the Party Branch and the Labor Union, such as the "Lighting Project", tree planting, street
beautification, and learning from Lei Feng.
50
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part VI Significant Events
I Commitments of the Company’s De Facto 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
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□Yes No
These interim financial statements are unaudited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Independent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□ Applicable Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable Not applicable
VII Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
51
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
VIII Legal Matters
Significant lawsuits and arbitrations
□ Applicable Not applicable
No such cases in the Reporting Period.
Other legal matters
Applicable □ Not applicable
Basic Whether Lawsuit Execution of
Amount Lawsuit
information there are (arbitration) lawsuit Date of Disclosure
involved (arbitration)
on lawsuit accrued results and (arbitration) disclosure index
(RMB’0,000) progress
(arbitration) liabilities influences judgment
37 cases are at
the trial stage,
27 are closed,
92 other
24 are in the The closed
litigation
implementation cases have
matters that
37,683.98 No stage, 1 is in the no significant N/A N/A N/A
did not meet
performance influence on
litigation
stage and 3 are the Company
standards
in the
insolvency
stage.
IX Punishments and Rectifications
□ Applicable Not applicable
No such cases in the Reporting Period.
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
Applicable □ Not applicable
In the Reporting Period, the Company and its controlling shareholder and de facto controller were not involved
in any unsatisfied court judgments, large-amount overdue liabilities or the like.
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
Applicable □ Not applicable
52
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
Purch
Guan asing
gdong produ
Fengh cts
Bank
ua and
Under transf
Adva receiv Purch 27 www.
same ers or
nced ing ase of Marke 226.4 226.4 226.4 Febru cninfo
actual 0.07% 1,600 Not bank
Techn labor materi t price 1 1 1 ary .com.
contro als accept
ology servic 2024 cn
ller ance
Holdi e
notes
ng from
Co., relate
Ltd. d
party
Purch
asing
produ
Shenz cts
Bank
hen and
Under Recei transf
Yuepe receiv
same ving ers or
ng ing Marke 188.6 188.6 188.6
actual labor 0.56% bank
Const labor t price 5 5 5
contro servic accept
ructio servic e
ller ance
n Co., e
notes
Ltd. from
relate
d
party
Purch
asing
Zhuha
produ
i
cts
Dongj Bank
and
iang Under Recei transf
receiv
Envir same ving ers or
ing Marke
onme actual labor 27.13 27.13 0.12% bank 27.13
labor t price
ntal contro servic accept 27 www.
servic e
Techn ller ance Febru cninfo
e 300 Not
ology notes ary .com.
from
Co, 2024 cn
relate
Ltd.
d
party
Fosha Under Purch Recei Bank
n same asing ving transf
Marke
Fulon actual produ labor 7.05 7.05 0.03% ers or 7.05
t price
g contro cts servic bank
Envir ller and e accept
53
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
onme receiv ance
ntal ing notes
Techn labor
ology servic
Co., e
Ltd. from
relate
d
party
Purch
Shenz
asing
hen
produ
Longg
cts
ang Bank
and
Dongj Under Recei transf
receiv
iang same ving ers or
ing Marke
Indust actual labor 1.44 1.44 0.01% bank 1.44
labor t price
rial contro servic accept
servic e
Waste ller ance
e
Treat notes
from
ment
relate
Co.,
d
Ltd.
party
Purch
asing
produ
cts
Prima Bank
and
tronix Under transf
receiv Purch
Nanh same ers or
ing ase of Marke
o actual 1.67 1.67 0.00% bank 1.67
labor materi t price
Techn contro als accept
servic
ology ller ance
e
Ltd. notes
from
relate
d
party
Zhuha Purch
i asing
Bank
Doum produ
Under Recei transf
en cts
same ving ers or
Distri and Marke
actual labor 0.45 0.45 0.00% bank 0.45
ct receiv t price
contro servic accept
Yong ing e
ller ance
xings labor
notes
heng servic
Envir e
54
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
onme from
ntal relate
Indust d
ry party
Waste
Recov
ery
and
Comp
rehens
ive
Treat
ment
Co.,
Ltd.
Purch
asing
Jiang
produ
men
cts
Dongj Bank
and
iang Under Recei transf
receiv
Envir same ving ers or
ing Marke
onme actual labor 0.22 0.22 0.00% bank 0.22
labor t price
ntal contro servic accept
servic e
Techn ller ance
e
ology notes
from
Co,
relate
Ltd.
d
party
Purch
asing
produ
cts
Prima Bank
and
tronix Under Recei transf
receiv
Nanh same ving ers or
ing Marke
o actual labor 11.48 11.48 0.06% bank 11.48
labor t price
Techn contro servic accept
servic e
ology ller ance
e
Ltd. notes
from
relate
d
party
Guan Under Purch Recei Bank 27 www.
ving
gzhou same asing Marke 136.2 136.2 transf 136.2 Febru cninfo
labor 0.60% 1,200 Not
Sheng actual produ t price 6 6 ers or 6 ary .com.
servic
feng contro cts e bank 2024 cn
55
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
Cateri ller and accept
ng receiv ance
Mana ing notes
geme labor
nt servic
Servic e
e Co., from
Ltd. relate
d
party
Guan
gdong
Rising
Com
merci
Purch
al
asing
Devel
produ
opme
cts
nt Bank
and
Co., Under Recei transf
receiv
Ltd. same ving ers or
ing Marke
(form actual labor 20.94 20.94 0.09% bank 20.94
labor t price
erly: contro servic accept
servic e
Guan ller ance
e
gdong notes
from
Tianxi
relate
n
d
Com
party
merci
al
Servic
e Co.,
Ltd.)
Purch
asing
produ
cts
Guan Bank
and
gdong Under Recei transf
receiv
Great same ving ers or
ing Marke
Wall actual labor 0.57 0.57 0.00% bank 0.57
labor t price
Hotel contro servic accept
servic e
Co., ller ance
e
Ltd. notes
from
relate
d
party
56
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
Purch
asing
Guan produ
gzhou cts
Bank
Haixi and
Under Recei transf
nsha receiv
same ving ers or
Indust ing Marke
actual labor 51.32 51.32 0.58% bank 51.32
ry labor t price
contro servic accept
Gener servic e
ller ance
al e
notes
Comp from
any relate
d 27 www.
party Febru cninfo
900 Not
Purch ary .com.
asing 2024 cn
Guan
produ
gzhou
cts
Huaji Bank
and
an Under Recei transf
receiv
Busin same ving ers or
ing Marke
ess actual labor 8.74 8.74 0.04% bank 8.74
labor t price
Devel contro servic accept
servic e
opme ller ance
e
nt notes
from
Co.,
relate
Ltd.
d
party
Sellin
g
Share
produ
Prosp holder
cts Bank
erity that
and transf
Lamp holds Sellin 27 www.
provid ers or
s& over g Marke 573.2 573.2 573.2 Febru cninfo
ing 0.12% 3,600 Not bank
Comp 5% produ t price 4 4 4 ary .com.
labor cts accept
onents shares 2024 cn
servic ance
Limit of the
e to notes
ed Comp
relate
any
d
party
Guan Sellin Bank
Under
gdong g Sellin transf 27 www.
same
Fengh produ g Marke 457.2 457.2 ers or 457.2 Febru cninfo
actual 0.10% 2,000 Not
ua cts produ t price 7 7 bank 7 ary .com.
contro cts
Adva and accept 2024 cn
ller
nced provid ance
57
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
Techn ing notes
ology labor
Holdi servic
ng e to
Co., relate
Ltd. d
party
Sellin
g
Shand produ
ong cts Bank
Zhong Under and transf
Sellin 27 www.
jin same provid ers or
g Marke Febru cninfo
Lingn actual ing 0.91 0.91 0.00% 1,000 Not bank 0.91
produ t price ary .com.
an contro labor cts accept
2024 cn
Coppe ller servic ance
r Co., e to notes
Ltd. relate
d
party
Sellin
g
Guan produ
gdong cts Bank
Yixin Under and transf
Chang same provid Sellin ers or
g Marke
cheng actual ing 12.10 12.1 0.00% bank 12.10
produ t price
Const contro labor cts accept
ructio ller servic ance
n e to notes
Group relate
d
27 www.
party
Febru cninfo
Sellin 1,500 Not
ary .com.
Guan g
2024 cn
gzhou produ
Wans cts Bank
hun Under and transf
Invest same provid Sellin ers or
g Marke
ment actual ing 5.96 5.96 0.00% bank 5.96
produ t price
Mana contro labor cts accept
geme ller servic ance
nt e to notes
Co., relate
Ltd. d
party
Guan Under Sellin Sellin Marke 9.96 9.96 0.00% Bank 9.96
58
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Obtai
nable
As %
Appro marke
of Index
Relati Trans ved Over t price
Total total to
onshi Type Specif Pricin action transa the Metho for
Relate value value Disclo disclo
p with of ic g price ction appro d of same-
d (RMB of all sure sed
the transa transa princi (RMB line ved settle type
party ’0,000 same- date infor
Comp ction ction ple ’0,000 (RMB line or ment transa
) type matio
any ) ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
gdong same g g t price transf
Rising actual produ produ ers or
cts
Non- contro cts bank
ferrou ller and accept
s provid ance
Metal ing notes
Group labor
servic
e to
relate
d
party
Sellin
g
Guan produ
gdong cts Bank
Xinta Under and Provi transf
ochip same provid ding ers or
Marke
Micro actual ing labor 64.79 64.79 0.01% bank 64.79
t price
electr contro labor servic accept
onics ller servic e ance
Co., e to notes
Ltd. relate
d
party
1,806. 12,10
Total -- -- -- -- -- -- -- --
56 0
Large-amount sales return in detail N/A
In June 2024, the Company forecasted the aggregate amount of its routine connected
transactions with related parties including Prosperity Lamps & Components Limited and its
majority-owned subsidiaries, Guangdong Rising Holdings Group Co., Ltd., Guangdong
Fenghua Advanced Technology Holding Co., Ltd., Guangdong Electronics Information
Industry Group Ltd. and its majority-owned subsidiaries, Dongjiang Environmental
Give the actual situation in the Company Limited and its majority-owned subsidiaries, Guangdong Rising Property Group
Reporting Period (if any) where an Co., Ltd. and its majority-owned subsidiaries, Guangdong Rising Research and
estimate had been made for the Development Institute Co., Ltd. and its majority-owned subsidiaries, Guangdong Rising
total value of continuing related- Real Estate Group Co., Ltd. and its majority-owned subsidiaries, Guangdong Huajian
party transactions by type to occur Enterprise Group Co., Ltd. and its majority-owned subsidiaries, Guangdong Rising Non-
in the Reporting Period
ferrous Metal Group Co., Ltd. and its majority-owned subsidiaries, and Shenzhen Zhongjin
Lingnan Nonfemet Co., Ltd. and its majority-owned subsidiaries. In terms of related party
procurements, the actual transaction amount for June 2024 was RMB6,823,300,
representing 15.87% of the forecasted amount for the entire year of 2024; in terms of related
party sales, the actual transaction amount for June 2024 was RMB11,242,300, accounting
for 10.91% of the estimated total for the year 2024.
Reason for any significant
difference between the transaction
N/A
price and the market reference
price (if applicable)
59
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
Applicable □ Not applicable
Non-operating amounts due to and from related parties or not
□ Yes No
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
Applicable □ Not applicable
Deposit business:
Daily Actual amount
Beginning Ending
maximum Interest rate Total Total
Related party Relationship balance balance
limits range deposited in withdrawn
(RMB’0,000) (RMB’0,000)
(RMB’0,000) (RMB’0,000) (RMB’0,000)
Guangdong Controlled
Rising by the same
150,000 0.25%-2.8% 117,915.42 327,398.77 310,718.30 134,595.89
Finance Co., controlling
Ltd. shareholder
Loan business:
None
Credit or other financial business:
Total amount Actual amount
Related party Relationship Type of business
(RMB’0,000) (RMB’0,000)
Guangdong Rising Controlled by the same
Credit granting 200,000 0
Finance Co., Ltd. controlling shareholder
6. Transactions with Related Parties by Finance Company Controlled by the Company
□ Applicable Not applicable
No finance company controlled by the Company was involved in making deposits, borrowing, credit granting or
any other financial business with any related party.
7. Other Major Related-Party Transactions
Applicable □ Not applicable
Relationship Specific Pricing Transact
Type of Method of Disclosure
Related party with the transactio princip ion Disclosure date
transaction settlement website
Company n le amount
60
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(RMB’0
,000)
Purchasing
Guangdong Bank transfers
Under same products and Receivin
Zhongnan Market or bank 9 July 2021, 17 August www.cninfo.co
actual receiving labor g labor 826.63
Construction Co., price acceptance 2021, and 12 March 2022 m.cn
controller service from service
Ltd. notes
related party
Purchasing
Guangdong Yixin Bank transfers
Under same products and Receivin
Changcheng Market 4,749.32 or bank 6 May 2021 and 28 www.cninfo.co
actual receiving labor g labor
Construction price acceptance January 2022 m.cn
controller service from service
Group notes
related party
www.cninfo.co
Purchasing
Guangdong Bank transfers m.cn
Under same products and Receivin
Zhongren Group Market or bank (announcement
actual receiving labor g labor 240.76 1 December 2020
Construction Co., price acceptance of subsidiary
controller service from service
Ltd. notes NationStar
related party
Optoelectronics)
Index to the current announcement about the said related-party transaction disclosed:
Title of announcement Disclosure date Disclosure website
Announcement on a Related-Party www.cninfo.com.cn (announcement of
1 December 2020
Transaction Due to a Call for Public Bids subsidiary NationStar Optoelectronics)
Announcement on a Related-Party
6 May 2021 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
9 July 2021 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
17 August 2021 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
28 January 2022 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
12 March 2022 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
XII 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
Notes to leases
No such cases in the Reporting Period.
Lease items with a greater-than-10% impact on the Company’s gross profit during the Reporting Period:
□ Applicable Not applicable
61
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
No such cases in the Reporting Period.
2. Major guarantees
Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Guarantees provided by the Company as the parent for its subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Nanning
Liaowan
g Auto
Lamp
Co.,
Ltd.,
Liuzhou
Guige
2 March 25 April
Foreshin
2023 、 21 June 2022 -31
e 6,350 2,832.98 Secured Yes None No No
19 April 2023 Decemb
Technol
2024 er 2025
ogy Co.,
Ltd.,
Liuzhou
Guige
Lighting
Technol
ogy Co.,
Ltd.
25 May
Chongqi
2023 -
ng
2 March 24 May
Guinuo 10
2023、 2024,2
Lighting 7,000 February 4,930.6 Secured Yes None No No
19 April 1 May
Technol 2023
2024 2024 -
ogy Co.,
20 May
Ltd.
2025
Nanning 2 March 14,300 24 4,385.06 Secured Yes None 24 April No No
62
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Liaowan 2023 、 March 2022 -31
g Auto 19 April 2023 Decemb
Lamp 2024 er 2025
Co.,
Ltd.,
Liuzhou
Guige
Foreshin
e
Technol
ogy Co.,
Ltd.,
Liuzhou
Guige
Lighting
Technol
ogy Co.,
Ltd.
Total approved line Total actual amount
for such guarantees of such guarantees in
27,650 12,148.64
in the Reporting the Reporting Period
Period (C1) (C2)
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 27,650 the end of the 12,148.64
Reporting Period Reporting Period
(C3) (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the guarantee amount in
27,650 12,148.64
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
27,650 the end of the 12,148.64
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
1.94%
as % of the Company’s net assets
Of which:
Compound guarantees:
None.
Chongqing Guinuo Lighting Technology Co., Ltd. (referred to as “Chongqing Guinuo”), Liuzhou Guige
Foreshine Technology Co., Ltd. (referred to as “Liuzhou Foreshine”), and Liuzhou Guige Lighting Technology
Co., Ltd. (referred to as “Liuzhou Lighting”) are all wholly-owned subsidiaries of Nanning Liaowang Auto
Lamp Co., Ltd. (referred to as “Nanning Liaowang”). As of 30 June 2024, guarantees between Nanning
Liaowang and its subsidiaries and collaterals are set out in “3. Other” under “XVI Commitments and
Contingencies” in Part X of this Report.
3. Cash Entrusted for Wealth Management
Applicable □ Not applicable
Unit: RMB’0,000
Unrecovered Provision for
Type Funding source Amount Undue amount
overdue amount impairment on
63
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
unrecovered
overdue amount
Bank financial
Self-owned funds 26,000 10,500
products
Others Raised funds 59,900 59,900
Others Self-owned funds 61,670 61,670
Total 147,570 132,070
High-risk wealth management transactions with a significant single amount, or with low security and low
liquidity:
Applicable □ Not applicable
Unit: RMB'0,000
Index
An
Typ Pres to
nua Actu
e of Exp cribe transa
lize al Recei Allow
Ty weal ecte d Plan ction
Use d gain/ pt/pa ance
pe th Sour d proc for summ
Pri Beginn of Determi yiel loss ymen for
Trus of man ce of Ending yiel edur more ary
nci ing prin nation d in t of impair
tee tru age princ date d e transac and
pal date cipa of yield rate Repo such ment
ste men ipal (if exec tion or other
l for rting gain/l (if
e t any uted not infor
ref Perio oss any)
prod ) or matio
ere d
uct not n (if
nce
any)
Gua Anno
ngzh uncem
Incom
ou ent
Larg pliance
Bran Subject No.
e Self- with
ch of to 2023-
certi owne 6 6 To be prescri
Chin Ba 10, Oth actual 3.3 164.5 011
ficat d Januar January 990 recov Yes bed
a nk 000 y 2023 2026 er investm 0% 5 on
e of fund ered approv
Ever ent Conti
depo s al
brig period nuing
sit proced
ht to use
ure
Ban its
k Self-
Fosh owned
Incom
an Funds
Larg pliance
Bran Subject for
e Self- with
ch of to Entrus
certi owne 31 31 To be prescri
Ban Ba 5,0 Oth actual 2.9 ted
ficat d August August 435 73.31 recov Yes bed
k of nk 00 2023 2026 er investm 0% Wealt
e of fund ered approv
Com ent h
depo s al
muni period Mana
sit proced
catio gemen
ure
ns t and
Gua Anno
ngzh uncem
Incom
ou ent
Larg pliance
Bran Subject No.
e Self- with
ch of 3 3 to 2024-
certi owne To be prescri
Chin Ba 10, Novem Novem Oth actual 2.9 212.9 017
ficat d 870 recov Yes bed
a nk 000 ber ber er investm 0% 3 on
e of fund 2023 2026 ered approv
Ever ent Entrus
depo s al
brig period tment
sit proced
ht of
ure
Ban Some
k Idle
64
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Index
An
Typ Pres to
nua Actu
e of Exp cribe transa
lize al Recei Allow
Ty weal ecte d Plan ction
Use d gain/ pt/pa ance
pe th Sour d proc for summ
Pri Beginn of Determi yiel loss ymen for
Trus of man ce of Ending yiel edur more ary
nci ing prin nation d in t of impair
tee tru age princ date d e transac and
pal date cipa of yield rate Repo such ment
ste men ipal (if exec tion or other
l for rting gain/l (if
e t any uted not infor
ref Perio oss any)
prod ) or matio
ere d
uct not n (if
nce
any)
Fosh Funds
an for
Incom
Huji Wealt
Larg pliance
ng Subject h
e Self- with
Sub- 1 1 to Mana
certi owne 1,3 To be prescri
bran Ba 15, Decem Decem Oth actual 2.9 220.6 gemen
ficat d 27. recov Yes bed
ch of nk 000 ber ber er investm 5% 4 t on
e of fund 2023 2026 5 ered approv
Ban ent http://
depo s al
k of period www.
sit proced
Gua cninfo
ure
ngZ .com.c
hou n/
Fosh
an
Incom
Huji
Larg pliance
ng Subject
e with
Sub- Rais 5 to
certi 5 To be prescri
bran Ba 21, ed Februa Oth actual 2.7 1,7
ficat Februar 234.8 recov Yes bed
ch of nk 200 fund ry er investm 5% 49
e of y 2027 ered approv
Ban s 2024 ent
depo al
k of period
sit proced
Gua
ure
ngZ
hou
Gua
ngzh
Incom
ou
Larg pliance
Bran Subject
e with
ch of Rais 5 to
certi 5 To be prescri
Chin Ba 5,5 ed Februa Oth actual 2.6
ficat Februar 429 57.59 recov Yes bed
a nk 00 fund ry er investm 0%
e of y 2027 ered approv
Ever s 2024 ent
depo al
brig period
sit proced
ht
ure
Ban
k
Incom
Fosh
Larg pliance
an Subject
e with
Bran Rais 5 to
certi 5 1,1 To be prescri
ch of Ba 14, ed Februa Oth actual 2.6 149.7
ficat Februar 15. recov Yes bed
Hua nk 300 fund ry er investm 0% 4
e of y 2027 4 ered approv
xia s 2024 ent
depo al
Ban period
sit proced
k
ure
5 5
Fosh Ba Larg 8,2 Rais Oth Subject 2.6 639 To be Incom
Februa Februar 85.86 Yes
an nk e 00 ed ry y 2027 er to 0% .6 recov pliance
65
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Index
An
Typ Pres to
nua Actu
e of Exp cribe transa
lize al Recei Allow
Ty weal ecte d Plan ction
Use d gain/ pt/pa ance
pe th Sour d proc for summ
Pri Beginn of Determi yiel loss ymen for
Trus of man ce of Ending yiel edur more ary
nci ing prin nation d in t of impair
tee tru age princ date d e transac and
pal date cipa of yield rate Repo such ment
ste men ipal (if exec tion or other
l for rting gain/l (if
e t any uted not infor
ref Perio oss any)
prod ) or matio
ere d
uct not n (if
nce
any)
Bran certi fund 2024 actual ered with
ch of ficat s investm prescri
Chin e of ent bed
a depo period approv
Mer sit al
chan proced
ts ure
Ban
k
Incom
Fosh
Larg pliance
an Subject
e Self- with
Bran to
certi owne 8 8 To be prescri
ch of Ba 15, Oth actual 2.6 1,1 122.8
ficat d March March recov Yes bed
Hua nk 000 2024 2027 er investm 0% 70 8
e of fund ered approv
xia ent
depo s al
Ban period
sit proced
k
ure
Repay
Fosh the
an principa Incom
Bran Larg l and pliance
ch of e Self- interest with
Chin certi owne 29 29 when To be prescri
Ba 3,5 Oth 2.6
a ficat d March March due and 273 23.44 recov Yes bed
nk 00 2024 2027 er 0%
Mer e of fund subject ered approv
chan depo s to al
ts sit actual proced
Ban investm ure
k ent
period
Fosh
an Incom
Bran Larg pliance
Subject
ch of e Self- with
to
Chin certi owne 30 30 To be prescri
Ba 3,0 Oth actual 2.6
a ficat d April April 234 21.37 recov Yes bed
nk 00 2024 2027 er investm 0%
Mer e of fund ered approv
ent
chan depo s al
period
ts sit proced
Ban ure
k
Fosh Stru Self- Subject Incom
an ctur owne 18 to To be pliance
Ba 4,0 16 July Oth 3.0 56.
Sub- ed d Januar actual 51.57 recov Yes with
nk 00 2024 er 0% 6
bran depo fund y 2024 investm ered prescri
ch of sit s ent bed
66
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Index
An
Typ Pres to
nua Actu
e of Exp cribe transa
lize al Recei Allow
Ty weal ecte d Plan ction
Use d gain/ pt/pa ance
pe th Sour d proc for summ
Pri Beginn of Determi yiel loss ymen for
Trus of man ce of Ending yiel edur more ary
nci ing prin nation d in t of impair
tee tru age princ date d e transac and
pal date cipa of yield rate Repo such ment
ste men ipal (if exec tion or other
l for rting gain/l (if
e t any uted not infor
ref Perio oss any)
prod ) or matio
ere d
uct not n (if
nce
any)
LUS period approv
O al
Inter proced
natio ure
nal
Ban
king
Ltd.
Fosh
an
Sub- Incom
bran pliance
Subject
ch of Stru Self- with
to
LUS ctur owne 22 21 To be prescri
Ba 2,0 Oth actual 2.9 28.
O ed d April Octobe 10.67 recov Yes bed
nk 00 2024 r 2024 er investm 5% 14
Inter depo fund ered approv
ent
natio sit s al
period
nal proced
Ban ure
king
Ltd.
Fosh
an
Sub- Incom
bran pliance
Subject
ch of Stru Self- with
to
LUS ctur owne 10 12 To be prescri
Ba 2,5 Oth actual 2.8 17.
O ed d May August 9.52 recov Yes bed
nk 00 2024 2024 er investm 5% 55
Inter depo fund ered approv
ent
natio sit s al
period
nal proced
Ban ure
king
Ltd.
Fosh
an
Sub- Incom
bran pliance
Subject
ch of Stru Self- with
14 to
LUS ctur owne 21 To be prescri
Ba 2,0 Novem Oth actual 2.9 26.
O ed d May 6.08 recov Yes bed
nk 00 ber er investm 0% 9
Inter depo fund 2024 ered approv
2024 ent
natio sit s al
period
nal proced
Ban ure
king
Ltd.
67
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Index
An
Typ Pres to
nua Actu
e of Exp cribe transa
lize al Recei Allow
Ty weal ecte d Plan ction
Use d gain/ pt/pa ance
pe th Sour d proc for summ
Pri Beginn of Determi yiel loss ymen for
Trus of man ce of Ending yiel edur more ary
nci ing prin nation d in t of impair
tee tru age princ date d e transac and
pal date cipa of yield rate Repo such ment
ste men ipal (if exec tion or other
l for rting gain/l (if
e t any uted not infor
ref Perio oss any)
prod ) or matio
ere d
uct not n (if
nce
any)
121 9,3
1,444
Total ,20 -- -- -- -- -- -- 61. -- -- -- --
.95
0 69
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable Not applicable
4. Other Significant Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
Applicable □ Not applicable
On 6 December 2023 and 22 December 2023, the Company respectively held the 49th meeting of the 9th Board
of Directors and the Second Extraordinary General Meeting of 2023, which approved the Proposal on the
Disposal of Assets of the Company and Signing of Reserve Agreement, and agreed that the Company would sign
the Letter of Intent on Land Reserve with Foshan City Chancheng District Zumiao Street Office, and sign the
State-owned Land Use Right Reserve Agreement with Foshan City Chancheng District Land Reserve Center and
Foshan City Chancheng District Zumiao Street Office. After completing the preliminary land preparation work
such as demolition of buildings on the ground in accordance with relevant laws, regulations and policies, the No.
64 Fenjiang North Road land parcel in Chancheng District, Foshan City would be handed over in three years
batch by batch for pending expropriation. On 1 February 2024, the Company formally signed the State-owned
Land Use Right Reserve Agreement with Foshan City Chancheng District Land Reserve Center and Foshan City
Chancheng District Zumiao Street Office. The Company would conduct pending expropriation of Lot No. 64,
Fenjiang North Road in accordance with the relevant contents of the agreement. The Company will continue to
follow up on the progress of pending expropriation, and fulfill its information disclosure obligations in a timely
manner in accordance with relevant laws, regulations, and normative documents.
XIV Significant Events of Subsidiaries
Applicable □ Not applicable
Expropriation of land and above-ground housing of Nanjing Fozhao
The Company held the 24th Meeting of the Ninth Board of Directors on 15 December 2021, where the Proposal
on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary Nanjing Fozhao
Lighting Equipment Manufacturing Co., Ltd., was deliberated and adopted. The Board of Directors agreed that
Nanjing Lishui District People's Government expropriates the land use rights and above-land housing of
Nanjing Fozhao Lighting Equipment Manufacturing Co., Ltd. (hereinafter referred to as "Nanjing Fozhao"), a
wholly-owned subsidiary of the Company, at a compensation amount of RMB183,855,895.00, and Nanjing
Fozhao signed an expropriation and compensation agreement with Lishui County House Dismantling, Moving
& Resettling Development Co., Ltd., the implementing unit of the housing expropriation. As of 30 June 2024,
68
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Nanjing Fozhao has received 30% of the compensation, that is, RMB55,160,000.00, and the land use right
certificate and house ownership certificate of the assets involved have been cancelled. As of the date of this
report, the site handover is still in progress. After the demolition work is completed, Nanjing Fozhao plans to be
liquidated and cancelled.
69
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part VII 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
1. - -
197,537,2 57,371,44
Restricted 12.75% 140,165,7 140,165,7 3.70%
shares 41 7
94.00 94.00
1.1
Shares
held by
state
1.2
Shares
held by - -
69,136,16 46,695,89
state- 4.46% 22,440,27 22,440,27 3.02%
owned 7 6
1.00 1.00
legal
persons
1.3
Shares
held by - -
1,826,025 0.12% 1,747,919 0.11%
other 78,106.00 78,106.00
domestic
investors
Among
which:
Shares
held by 1,338,434 0.09% 0.00 0.00 1,338,434 0.09%
domestic
legal
persons
S
hares held
by - -
487,591 0.03% 409,485 0.03%
domestic 78,106.00 78,106.00
natural
persons
1.4
Shares - -
24,481,19 8,927,632
held by 1.58% 15,553,56 15,553,56 0.58%
foreign 6 .00
4.00 4.00
investors
Among
which: - -
Shares 11,604,09
0.75% 11,604,09 11,604,09 0 0.00%
held by 4
foreign 4.00 4.00
legal
70
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
persons
Shares - -
held by 12,877,10
0.83% 3,949,470 3,949,470 8,927,632 0.58%
foreign 2
natural .00 .00
persons
1.5.
Funds, - -
and other 102,093,8
6.59% 102,093,8 102,093,8 0 0.00%
financial 53
products, 53.00 53.00
etc.
2.
1,351,240 140,165,7 140,165,7 1,491,406
Unrestrict 87.25% 96.30%
ed shares ,989 94.00 94.00 ,783
2.1 RMB-
denomina
1,056,501 140,167,6 140,167,6 1,196,668
ted 68.22% 77.27%
ordinary ,050 83.00 83.00 ,733
shares
2.2
Domestic
294,739,9 294,738,0
ally listed 19.03% -1,889.00 -1,889.00 19.03%
foreign 39 50
shares
2.3
Overseas
listed
foreign
shares
2.4 Other
3. Total 1,548,778 1,548,778
100.00% 0.00 0.00 100.00%
shares ,230 ,230
Reasons for share changes:
Applicable □ Not applicable
1. In 2023, in accordance with the Reply on the Approval of the Registration of Foshan Electrical and Lighting
Co., Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the CSRC, the Company
issued 186,783,583 RMB-denominated ordinary shares (A shares) to 13 specific objects including Rising
Holdings Group, the Company's de facto controller, and such shares were listed on the Shenzhen Stock
Exchange on 4 December 2023. In the first half of 2024, the 140,087,688 restricted shares subscribed by 12
subscribers in this issue were relieved. For details, please refer to the Indicative Announcement on the Trading
on the Market of Restricted Shares Issued to Specific Objects That Have Been Relieved disclosed on 29 May
2024 on http://www.cninfo.com.cn.
2. Due to the resignation of directors and senior management, 78,106 tradable shares with unlimited selling
conditions were added in accordance with relevant regulations.
Approval of share changes:
Applicable □ Not applicable
During the Reporting Period, the application for the relief of the 140,087,688 restricted shares subscribed by 12
specific objects, which were issued by the Company in 2023, and their change to unrestricted shares was
approved by the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited.
Transfer of share ownership:
□Applicable Not applicable
Progress on any share repurchase:
71
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
□Applicable Not applicable
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
2. Changes in Restricted Shares
Applicable □ Not applicable
Unit: share
Restricted Restricted Restricted
Restricted Restricted
Name of the shares amount shares shares amount Restricted
shares relieved shares relieved
shareholders at the period- increased of the at the period- reasons
of the period date
begin period end
Relief of
restricted A
shares
Nuode Asset subscribed,
Management 33,373,720 33,373,720 0 0 which were 4 June 2024
Co., Ltd. issued by the
Company to
specific objects
in 2023
Relief of
restricted A
shares
Caitong Fund subscribed,
Management 44,658,703 44,658,703 0 0 which were 4 June 2024
Co., Ltd. issued by the
Company to
specific objects
in 2023
Relief of
restricted A
shares
subscribed,
CSC Financial
8,788,395 8,788,395 0 0 which were 4 June 2024
Co., Ltd.
issued by the
Company to
specific objects
in 2023
Relief of
restricted A
shares
UBSAG 6,484,641 6,484,641 0 0 subscribed, 4 June 2024
which were
issued by the
Company to
72
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Restricted Restricted Restricted
Restricted Restricted
Name of the shares amount shares shares amount Restricted
shares relieved shares relieved
shareholders at the period- increased of the at the period- reasons
of the period date
begin period end
specific objects
in 2023
Relief of
restricted A
shares
Morgan Stanley
subscribed,
& Co.
5,119,453 5,119,453 0 0 which were 4 June 2024
International
issued by the
plc
Company to
specific objects
in 2023
Relief of
restricted A
shares
CITIC subscribed,
Securities Co., 5,119,453 5,119,453 0 0 which were 4 June 2024
Ltd. issued by the
Company to
specific objects
in 2023
Guangdong
Rongchuang
Lingyue
Relief of
Intelligent
restricted A
Manufacturing
shares
and
subscribed,
Information
5,119,453 5,119,453 0 0 which were 4 June 2024
Technology
issued by the
Industry Equity
Company to
Investment
specific objects
Fund
in 2023
Partnership
(Limited
Partnership)
Relief of
restricted A
shares
Changsha Lugu
subscribed,
Capital
8,532,423 8,532,423 0 0 which were 4 June 2024
Management
issued by the
Co., Ltd.
Company to
specific objects
in 2023
Relief of
Huatai Asset
restricted A
Management
shares
Co., Ltd.-
subscribed,
Huatai
5,119,453 5,119,453 0 0 which were 4 June 2024
Youyi Stock
issued by the
Specialized
Company to
Pension
specific objects
Product
in 2023
Sichuan Pu Xin 5,119,453 5,119,453 0 0 Relief of 4 June 2024
73
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Restricted Restricted Restricted
Restricted Restricted
Name of the shares amount shares shares amount Restricted
shares relieved shares relieved
shareholders at the period- increased of the at the period- reasons
of the period date
begin period end
Chan Rong restricted A
Investment Co., shares
Ltd. subscribed,
which were
issued by the
Company to
specific objects
in 2023
Relief of
restricted A
shares
Horizon Asset subscribed,
Management 8,703,071 8,703,071 0 0 which were 4 June 2024
Co., Ltd. issued by the
Company to
specific objects
in 2023
Relief of
restricted A
shares
subscribed,
Wu Xiaochun 3,949,470 3,949,470 0 0 which were 4 June 2024
issued by the
Company to
specific objects
in 2023
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Wei Bin 78,919 0 26,307 105,226 directors, with rules on
supervisors and restricted
senior shares for
management senior
management
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Jiao Zhigang 67,799 67,799 0 0 directors, with rules on
supervisors and restricted
senior shares for
management senior
management
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Cheng Ke 8,662 8,662 0 0 directors, with rules on
supervisors and restricted
senior shares for
management senior
management
74
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Restricted Restricted Restricted
Restricted Restricted
Name of the shares amount shares shares amount Restricted
shares relieved shares relieved
shareholders at the period- increased of the at the period- reasons
of the period date
begin period end
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Xu Xiaoping 27,952 27,952 0 0 directors, with rules on
supervisors and restricted
senior shares for
management senior
management
Total 140,282,500 140,192,101 26,307 105,226 -- --
II. Issuance and Listing of Securities
□Applicable Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preference shareholders
shareholders at the period- 72,742 with resumed voting rights at the period- 0
end end (if any) (see Note 8)
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares
lent in refinancing)
Total Increase/de Shares in pledge, marked
Non-
Shareholdi ordinary crease in Restricted or frozen
Name of Nature of restricted
ng shares held the ordinary
shareholder shareholder ordinary
percentage at the Reporting shares held Status Shares
shares held
period-end Period
Hongkong
Wah Shing
Foreign 193,915,48 193,915,48
Holding 12.52% 5,419,050 0 N/A 0
corporation 0 0
Company
Limited
Prosperity
Lamps & Foreign 146,934,85 146,934,85
9.49% 0 0 N/A 0
Component corporation 7 7
s Limited
Guangdong
Electronics State-
131,439,54 131,439,54
Informatio owned 8.49% 8,745,300 0 N/A 0
n Industry corporation 6 6
Group Ltd.
Guangdong
Rising State-
129,826,79
Holdings owned 8.38% 0 46,695,895 83,130,898 N/A 0
Group Co., corporation 3
Ltd.
Essence
Internation
al
Foreign
Securities 2.50% 38,645,124 418,600 0 38,645,124 N/A 0
corporation
(Hong
Kong)
Limited
75
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Central
Huijin State-
Asset owned 2.14% 33,161,800 0 0 33,161,800 N/A 0
Manageme corporation
nt Co., Ltd.
Rising
Investment Foreign
1.65% 25,482,252 0 0 25,482,252 N/A 0
Developme corporation
nt Limited
Hong Kong
Securities
Foreign
Clearing 1.36% 21,004,044 -9,363,762 0 21,004,044 N/A 0
corporation
Company
Limited
Zhang Domestic
1.10% 17,000,000 5,300,000 0 17,000,000 N/A 0
Shaowu individual
Zhuang Foreign
0.77% 11,903,509 0 8,927,632 2,975,877 N/A 0
Jianyi individual
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, Guangdong
Rising Holdings Group Co., Ltd., Guangdong Electronics Information Industry Group Ltd. and
Related or acting-in-
Rising Investment Development Limited are acting-in-concert parties; and Prosperity Lamps &
concert parties among the
Components Limited and Zhuang Jianyi are acting-in-concert parties. Apart from that, it is unknown
shareholders above
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 Naught
with voting rights and
giving up voting rights
Special account for share
repurchases (if any) As of the period-end, the Company had 13,000,000 A-shares of it in its special account for share
among the top 10 repurchases, accounting for 0.84% of the Company’s total share capital.
shareholders (see note 11)
Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and executive lock-up shares)
Type of shares
Name of shareholder Unrestricted ordinary shares at the period-end
Type Shares
RMB-
denominate 188,496,43
d ordinary 0
Hongkong Wah Shing stock
Holding Company 193,915,480 Domestical
Limited ly listed
5,419,050
foreign
stock
RMB-
Prosperity Lamps & denominate 146,934,85
146,934,857
Components Limited d ordinary 7
stock
RMB-
Guangdong Electronics
denominate 131,439,54
Information Industry 131,439,546
d ordinary 6
Group Ltd.
stock
RMB-
Guangdong Rising denominate
83,130,898 83,130,898
Holdings Group Co., Ltd. d ordinary
stock
76
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Domestical
Essence International
ly listed
Securities (Hong Kong) 38,645,124 38,645,124
Limited foreign
stock
RMB-
Central Huijin Asset denominate
33,161,800 33,161,800
Management Co., Ltd. d ordinary
stock
Domestical
Rising Investment ly listed
25,482,252 25,482,252
Development Limited foreign
stock
Hong Kong Securities RMB-
denominate
Clearing Company 21,004,044 21,004,044
d ordinary
Limited stock
RMB-
denominate
Zhang Shaowu 17,000,000 17,000,000
d ordinary
stock
Domestical
China Merchants
ly listed
Securities (HK) Co., 8,567,891 8,567,891
Limited foreign
stock
Related or acting-in-
concert parties among the Among the top 10 unrestricted ordinary shareholders, Hongkong Wah Shing Holding Company
top 10 unrestricted Limited, Guangdong Rising Holdings Group Co., Ltd., Guangdong Electronics Information Industry
ordinary shareholders, as Group Ltd., and Rising Investment Development Limited are acting-in-concert parties; Apart from
well as between the top 10 that, it is unknown whether there is among the top 10 shareholders any other related parties or
unrestricted ordinary acting-in-concert parties as defined in the Administrative Measures for the Acquisition of Listed
shareholders and the top Companies.
10 ordinary shareholders
Top 10 ordinary
shareholders involved in
None
securities margin trading
(if any) (see note 4)
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing
shares lending
□Applicable Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return
compared with the prior period
□Applicable Not applicable
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.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
□Applicable Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in the Reporting
Period. See the 2023 Annual Report for more details.
77
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□Applicable Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□Applicable Not applicable
No such cases in the Reporting Period.
78
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part VIII Preference Shares
□Applicable Not applicable
No preference shares in the Reporting Period.
79
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part IX Bonds
□Applicable Not applicable
80
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Part X Financial Statements
I Auditor’s Report
Whether the interim report has been audited?
□Yes No
The interim report of the Company has not been audited.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 June 2024
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 3,191,608,973.70 3,596,049,654.55
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 106,928,328.01 152,529,775.41
Derivative financial assets
Notes receivable 968,135,967.44 1,057,352,267.60
Accounts receivable 2,452,672,368.91 2,093,499,280.40
Accounts receivable financing 296,834,332.74 443,201,960.02
Prepayments 55,984,559.55 34,508,638.92
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 57,278,936.88 49,108,300.85
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 1,713,501,547.83 1,971,171,641.14
Including: data resources
Contract assets 2,366,030.73 4,252,013.94
Assets held for sale 17,147,339.84 17,147,339.84
Current portion of non-current assets
Other current assets 195,745,670.47 109,292,399.14
Total current assets 9,058,204,056.10 9,528,113,271.81
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations 1,124,498,738.94 454,822,905.25
Long-term receivables
Long-term equity investments 180,633,275.87 179,188,555.15
Investments in other equity
674,411,551.40 699,762,746.35
instruments
81
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item 30 June 2024 1 January 2024
Other non-current financial assets
Investment property 160,155,678.54 163,636,347.41
Fixed assets 3,481,812,429.68 3,453,214,586.47
Construction in progress 1,070,611,321.57 1,174,533,505.11
Productive living assets
Oil and gas assets
Right-of-use assets 4,980,388.38 8,812,320.64
Intangible assets 395,232,106.46 434,549,913.99
Including: data resources
Development costs
Including: data resources
Goodwill 421,831,593.46 421,831,593.46
Long-term prepaid expense 220,312,810.06 190,362,699.25
Deferred income tax assets 124,528,040.70 106,283,766.95
Other non-current assets 157,198,709.48 119,327,703.18
Total non-current assets 8,016,206,644.54 7,406,326,643.21
Total assets 17,074,410,700.64 16,934,439,915.02
Current liabilities:
Short-term borrowings 124,850,000.00 220,019,877.73
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 2,052,737,312.65 2,271,174,787.69
Accounts payable 2,971,638,357.60 2,875,980,206.64
Advances from customers 231,062.59 466,872.69
Contract liabilities 136,319,866.46 235,335,693.28
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 197,680,567.52 193,830,812.66
Taxes payable 80,226,629.71 42,940,157.30
Other payables 614,845,550.63 362,491,923.01
Including: Interest payable
Dividends payable 184,293,387.60
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
380,199,297.64 343,914,214.45
liabilities
Other current liabilities 194,436,120.52 95,008,427.01
Total current liabilities 6,753,164,765.32 6,641,162,972.46
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 274,397,540.10 253,093,421.29
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 1,976,953.14 4,310,967.92
Long-term payables
Long-term employee benefits payable
82
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item 30 June 2024 1 January 2024
Provisions 16,495,438.86 14,277,087.30
Deferred income 67,417,473.08 75,185,461.27
Deferred income tax liabilities 166,936,684.37 174,806,746.25
Other non-current liabilities 205,769.48
Total non-current liabilities 527,224,089.55 521,879,453.51
Total liabilities 7,280,388,854.87 7,163,042,425.97
Owners’ equity:
Share capital 1,548,778,230.00 1,548,778,230.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 914,336,325.66 914,336,325.66
Less: Treasury stock 82,165,144.15 82,165,144.15
Other comprehensive income 337,823,638.67 360,027,027.59
Specific reserve 4,407,364.68 1,213,325.92
Surplus reserves 107,944,679.06 107,944,679.06
General reserve
Retained earnings 3,443,244,158.89 3,435,308,364.11
Total equity attributable to owners of the
6,274,369,252.81 6,285,442,808.19
Company as the parent
Non-controlling interests 3,519,652,592.96 3,485,954,680.86
Total owners’ equity 9,794,021,845.77 9,771,397,489.05
Total liabilities and owners’ equity 17,074,410,700.64 16,934,439,915.02
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2024 1 January 2024
Current assets:
Monetary assets 1,196,626,652.19 1,756,256,289.35
Held-for-trading financial assets 99,400.00
Derivative financial assets
Notes receivable 100,797,978.25 90,413,382.59
Accounts receivable 894,653,466.59 840,003,427.41
Accounts receivable financing 13,529,700.40 105,327,382.82
Prepayments 5,701,515.48 7,334,575.29
Other receivables 723,060,470.78 558,342,534.44
Including: Interest receivable
Dividends receivable
Inventories 299,958,974.53 462,793,053.42
Including: data resources
Contract assets 2,366,030.73 4,252,013.94
Assets held for sale
Current portion of non-current assets
Other current assets 868,495.65 8,244,786.97
Total current assets 3,237,662,684.60 3,832,967,446.23
Non-current assets:
Investments in debt obligations
Investments in other debt obligations 1,124,498,738.94 454,822,905.25
Long-term receivables
Long-term equity investments 2,561,988,701.78 2,502,623,981.06
83
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item 30 June 2024 1 January 2024
Investments in other equity
634,332,982.60 659,684,177.55
instruments
Other non-current financial assets
Investment property 45,659,514.37 47,163,026.83
Fixed assets 836,040,870.57 651,197,430.25
Construction in progress 55,054,639.18 205,106,029.03
Productive living assets
Oil and gas assets
Right-of-use assets 5,134,011.70 5,082,521.44
Intangible assets 59,236,789.26 93,932,977.96
Including: data resources
Development costs
Including: data resources
Goodwill
Long-term prepaid expense 22,824,457.66 29,727,301.65
Deferred income tax assets 38,868,999.60 36,285,162.26
Other non-current assets 93,456,548.50 48,331,060.62
Total non-current assets 5,477,096,254.16 4,733,956,573.90
Total assets 8,714,758,938.76 8,566,924,020.13
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 907,228,805.34 982,735,414.37
Accounts payable 1,043,067,777.80 977,444,406.30
Advances from customers
Contract liabilities 63,423,644.02 145,086,858.16
Employee benefits payable 82,707,806.22 64,958,645.43
Taxes payable 31,796,289.03 20,946,142.07
Other payables 593,057,848.13 324,137,191.03
Including: Interest payable
Dividends payable 184,293,387.60
Liabilities directly associated with
assets held for sale
Current portion of non-current
4,949,546.08 1,377,403.64
liabilities
Other current liabilities 96,594,079.44 82,802,283.98
Total current liabilities 2,822,825,796.06 2,599,488,344.98
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 262,647.65 3,705,117.80
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 58,942,641.95 63,366,691.06
Other non-current liabilities
Total non-current liabilities 59,205,289.60 67,071,808.86
Total liabilities 2,882,031,085.66 2,666,560,153.84
Owners’ equity:
Share capital 1,548,778,230.00 1,548,778,230.00
Other equity instruments
84
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item 30 June 2024 1 January 2024
Including: Preferred shares
Perpetual bonds
Capital reserves 909,058,541.44 909,058,541.44
Less: Treasury stock 82,165,144.15 82,165,144.15
Other comprehensive income 338,309,557.35 359,858,073.06
Specific reserve 3,493,553.56 897,781.74
Surplus reserves 339,248,748.30 339,248,748.30
Retained earnings 2,776,004,366.60 2,824,687,635.90
Total owners’ equity 5,832,727,853.10 5,900,363,866.29
Total liabilities and owners’ equity 8,714,758,938.76 8,566,924,020.13
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
3. Consolidated Income Statement
Unit: RMB
Item H1 2024 H1 2023
1. Revenue 4,784,545,767.42 4,566,062,729.02
Including: Operating revenue 4,784,545,767.42 4,566,062,729.02
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 4,531,278,513.54 4,299,771,626.28
Including: Cost of sales 3,861,658,076.61 3,733,474,828.88
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 37,916,939.23 37,443,299.13
Selling expense 175,810,829.30 131,921,130.00
Administrative expense 226,332,962.51 200,946,085.42
R&D expense 260,165,950.63 226,148,905.26
Finance costs -30,606,244.74 -30,162,622.41
Including: Interest expense 11,047,212.70 14,255,244.44
Interest income 25,938,447.85 24,520,047.73
Add: Other income 60,151,413.19 27,389,992.05
Return on investment (“-” for loss) 38,017,499.24 22,449,570.63
Including: Share of profit or loss
1,444,720.72 1,186,031.53
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 (“-”
-601,447.40 -22,153,522.56
for loss)
Credit impairment loss (“-” for
-38,270,808.58 -18,947,421.03
loss)
85
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item H1 2024 H1 2023
Asset impairment loss (“-” for
-36,958,804.89 -16,390,888.73
loss)
Asset disposal income (“-” for
-99,108.79 110,475.52
loss)
3. Operating profit (“-” for loss) 275,505,996.65 258,749,308.62
Add: Non-operating income 3,054,859.55 2,440,914.48
Less: Non-operating expense 486,217.43 4,780,570.32
4. Profit before tax (“-” for loss) 278,074,638.77 256,409,652.78
Less: Income tax expense 24,632,382.12 31,304,364.49
5. Net profit (“-” for net loss) 253,442,256.65 225,105,288.29
5.1 By operating continuity
5.1.1 Net profit from continuing
253,442,256.65 225,105,288.29
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
shareholders of the Company as the 192,229,182.38 168,935,232.54
parent (“-” for net loss)
5.2.1 Net profit attributable to non-
61,213,074.27 56,170,055.75
controlling interests (“-” for net loss)
6. Other comprehensive income, net of
-22,766,075.54 -49,800,869.38
tax
Attributable to owners of the
-22,203,388.92 -50,939,650.35
Company as the parent
6.1 Items that will not be
-21,548,515.71 -52,237,967.85
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
-21,548,515.71 -52,237,967.85
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
-654,873.21 1,298,317.50
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 currency- -654,873.21 1,298,317.50
denominated financial statements
6.2.7 Other
Attributable to non-controlling
-562,686.62 1,138,780.97
interests
7. Total comprehensive income 230,676,181.11 175,304,418.91
Attributable to owners of the
170,025,793.46 117,995,582.19
Company as the parent
Attributable to non-controlling 60,650,387.65 57,308,836.72
86
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item H1 2024 H1 2023
interests
8. Earnings per share
8.1 Basic earnings per share 0.1252 0.1252
8.2 Diluted earnings per share 0.1241 0.1240
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Operating revenue 1,799,801,338.92 1,767,119,810.22
Less: Cost of sales 1,377,838,357.05 1,475,930,147.80
Taxes and surcharges 15,272,851.85 14,118,151.89
Selling expense 111,657,013.75 76,993,414.88
Administrative expense 98,157,531.70 77,700,935.31
R&D expense 83,461,134.06 72,152,520.98
Finance costs -18,473,106.96 -23,728,727.28
Including: Interest expense 205,821.60 3,685,018.81
Interest income 8,056,174.38 7,478,589.21
Add: Other income 11,207,995.85 1,095,070.80
Return on investment (“-” for loss) 38,136,678.31 27,748,972.71
Including: Share of profit or loss
1,444,720.72 1,186,031.53
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 (“-”
99,400.00 -23,059,475.00
for loss)
Credit impairment loss (“-” for
-22,899,921.83 -9,630,073.47
loss)
Asset impairment loss (“-” for
-5,911,919.35 -1,814,506.09
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 152,519,790.45 68,293,355.59
Add: Non-operating income 1,706,418.89 36,865.24
Less: Non-operating expense 127,113.54 745,254.33
3. Profit before tax (“-” for loss) 154,099,095.80 67,584,966.50
Less: Income tax expense 18,488,977.50 3,301,961.09
4. Net profit (“-” for net loss) 135,610,118.30 64,283,005.41
4.1 Net profit from continuing
135,610,118.30 64,283,005.41
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-21,548,515.71 -52,237,967.85
tax
5.1 Items that will not be reclassified
-21,548,515.71 -52,237,967.85
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
87
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item H1 2024 H1 2023
loss under the equity method
5.1.3 Changes in the fair value of
-21,548,515.71 -52,237,967.85
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 114,061,602.59 12,045,037.56
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities
4,381,995,484.08 3,850,932,261.31
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 82,383,727.52 100,132,103.39
Cash generated from other operating
119,388,419.41 141,107,593.13
activities
Subtotal of cash generated from
4,583,767,631.01 4,092,171,957.83
operating activities
88
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item H1 2024 H1 2023
Payments for commodities and services 3,124,222,860.48 2,663,359,134.35
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 731,015,486.26 687,281,073.20
Taxes paid 151,177,949.87 204,166,141.70
Cash used in other operating activities 192,758,289.79 149,496,551.38
Subtotal of cash used in operating
4,199,174,586.40 3,704,302,900.63
activities
Net cash generated from/used in
384,593,044.61 387,869,057.20
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 305,000,000.00 190,981,292.12
Return on investment 24,056,243.57 22,659,407.23
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 22,544,055.06 1,402,000.00
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
351,600,298.63 215,042,699.35
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 159,583,095.03 109,147,876.06
lived assets
Payments for investments 1,024,000,000.00 110,000,000.00
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 360,759.99
Subtotal of cash used in investing
1,183,583,095.03 219,508,636.05
activities
Net cash generated from/used in
-831,982,796.40 -4,465,936.70
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised 200,111,329.57 126,598,725.21
Cash generated from other financing
7,224,809.91 381,437.71
activities
Subtotal of cash generated from
207,336,139.48 126,980,162.92
financing activities
Repayment of borrowings 136,959,822.56 323,893,000.00
Interest and dividends paid 39,360,714.14 160,367,407.65
Including: Dividends paid by
29,139,436.44 30,294,736.68
subsidiaries to non-controlling interests
Cash used in other financing activities 11,501,309.43 2,303,428.02
Subtotal of cash used in financing
187,821,846.13 486,563,835.67
activities
Net cash generated from/used in
19,514,293.35 -359,583,672.75
financing activities
4. Effect of foreign exchange rates
14,380,245.23 4,930,576.64
changes on cash and cash equivalents
89
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item H1 2024 H1 2023
5. Net increase in cash and cash
-413,495,213.21 28,750,024.39
equivalents
Add: Cash and cash equivalents,
3,101,252,943.88 1,945,971,307.26
beginning of the period
6. Cash and cash equivalents, end of the
2,687,757,730.67 1,974,721,331.65
period
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2024 H1 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,714,147,588.24 1,496,145,578.96
and rendering of services
Tax rebates 37,731,938.65 53,498,627.75
Cash generated from other operating
39,430,747.84 33,751,986.68
activities
Subtotal of cash generated from
1,791,310,274.73 1,583,396,193.39
operating activities
Payments for commodities and services 1,212,273,623.36 1,035,027,746.06
Cash paid to and for employees 231,944,514.55 232,728,601.56
Taxes paid 59,269,827.89 35,941,134.26
Cash used in other operating activities 68,770,731.65 56,041,082.96
Subtotal of cash used in operating
1,572,258,697.45 1,359,738,564.84
activities
Net cash generated from/used in
219,051,577.28 223,657,628.55
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 100,000,000.00
Return on investment 24,016,123.90 27,483,617.76
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 22,433,746.58
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
35,000,000.00
activities
Subtotal of cash generated from
81,449,870.48 127,483,617.76
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other long- 27,169,498.35 11,143,401.81
lived assets
Payments for investments 714,920,000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 178,883,363.61
Subtotal of cash used in investing
920,972,861.96 11,143,401.81
activities
Net cash generated from/used in
-839,522,991.48 116,340,215.95
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 178,893,000.00
90
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item H1 2024 H1 2023
Interest and dividends paid 119,898,677.90
Cash used in other financing activities
Subtotal of cash used in financing
298,791,677.90
activities
Net cash generated from/used in
-298,791,677.90
financing activities
4. Effect of foreign exchange rates
9,378,014.06 1,541,521.95
changes on cash and cash equivalents
5. Net increase in cash and cash
-611,093,400.14 42,747,688.55
equivalents
Add: Cash and cash equivalents,
1,610,082,668.66 461,062,144.20
beginning of the period
6. Cash and cash equivalents, end of the
998,989,268.52 503,809,832.75
period
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024
Unit: RMB
H1 2024
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1,5 3,4 6,2 3,4 9,7
914 82, 360 107
1. Balance as 48, 1,2 35, 85, 85, 71,
,33 165 ,02 ,94
at the end of 778 13, 308 442 954 397
6,3 ,14 7,0 4,6
the period of ,23 325 ,36 ,80 ,68 ,48
prior year 25. 4.1 27. 79.
0.0 .92 4.1 8.1 0.8 9.0
66 5 59 06
0 1 9 6 5
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as 1,5 3,4 6,2 3,4 9,7
914 82, 360 107
at the 48, 1,2 35, 85, 85, 71,
,33 165 ,02 ,94
beginning of 778 13, 308 442 954 397
6,3 ,14 7,0 4,6
the ,23 325 ,36 ,80 ,68 ,48
Reporting 25. 4.1 27. 79.
0.0 .92 4.1 8.1 0.8 9.0
Period 66 5 59 06
0 1 9 6 5
3. Increase/ - 3,1 7,9 - 33, 22,
decrease in
22, 94, 35, 11, 697 624
the period (“-
” for 203 038 794 073 ,91 ,35
91
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2024
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
decrease) ,38 .76 .78 ,55 2.1 6.7
8.9 5.3 0 2
2 8
-
192 170 60, 230
22,
3.1 Total ,22 ,02 650 ,67
203
comprehensi 9,1 5,7 ,38 6,1
ve income ,38
82. 93. 7.6 81.
8.9
38 46 5 11
2
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- - - -
184 184 29, 213
3.3 Profit ,29 ,29 139 ,43
distribution 3,3 3,3 ,43 2,8
87. 87. 6.4 24.
60 60 4 04
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
- - - -
3.3.3 184 184 29, 213
Appropriatio
,29 ,29 139 ,43
n to owners
(or 3,3 3,3 ,43 2,8
shareholders) 87. 87. 6.4 24.
60 60 4 04
3.3.4
92
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2024
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
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
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3,1 3,1 2,1 5,3
3.5
94, 94, 86, 80,
Specific
reserve 038 038 960 999
.76 .76 .89 .65
4,9 4,9 3,0 7,9
3.5.1
40, 40, 49, 90,
Increase in
the period 359 359 660 019
.02 .02 .90 .92
1,7 1,7 862 2,6
3.5.2 Used 46, 46, ,70 09,
in the period 320 320 0.0 020
.26 .26 1 .27
3.6 Other
4. Balance as 1,5 914 82, 337 4,4 107 3,4 6,2 3,5 9,7
at the end of 48, ,33 165 ,82 07, ,94 43, 74, 19, 94,
93
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2024
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
the 778 6,3 ,14 3,6 364 4,6 244 369 652 021
Reporting ,23 25. 4.1 38. .68 79. ,15 ,25 ,59 ,84
Period
0.0 66 5 67 06 8.8 2.8 2.9 5.7
0 9 1 6 7
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1,3 3,2 5,1 3,4 8,6
82, 498 91,
1. Balance as 61, 7,2 96, 73, 27, 00,
165 ,14 359
at the end of 994 45, 490 066 280 346
,14 1,0 ,02
the period of ,64 971 ,57 ,09 ,73 ,83
prior year 4.1 18. 7.1
7.0 .54 5.5 5.7 5.8 1.6
5 70 5
0 2 6 5 1
Add: -
- - -
Adjustment 101
54, 54, 47,
for change in ,77
accounting 747 747 032
9.1
policy .02 .02 .17
9
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as 1,3 3,2 5,1 3,4 8,6
82, 498 91,
at the 61, 7,2 96, 73, 27, 00,
165 ,14 359
beginning of 994 45, 435 011 233 245
,14 1,0 ,02
the ,64 971 ,82 ,34 ,70 ,05
Reporting 4.1 18. 7.1
7.0 .54 8.5 8.7 3.6 2.4
Period 5 70 5
0 0 4 8 2
- -
3. Increase/ 34, 27, 10,
50, 16,
decrease in 035 014 110
939 903
the period (“- ,76 ,10 ,21
” for ,65 ,88
7.8 0.0 7.5
decrease) 0.3 2.5
4 4 3
5 1
3.1 Total - 168 117 57, 175
comprehensi 50, ,93 ,99 308 ,30
ve income 939 5,2 5,5 ,83 4,4
94
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
,65 32. 82. 6.7 18.
0.3 54 19 2 91
5
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- - - -
134 134 30, 165
3.3 Profit ,89 ,89 294 ,19
distribution 9,4 9,4 ,73 4,2
64. 64. 6.6 01.
70 70 8 38
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
- - - -
3.3.3 134 134 30, 165
Appropriatio
,89 ,89 294 ,19
n to owners
(or 9,4 9,4 ,73 4,2
shareholders) 64. 64. 6.6 01.
70 70 8 38
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
95
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
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
comprehensi
ve 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
1,3 3,3 5,1 3,4 8,6
4. Balance as 82, 447 91,
61, 7,2 30, 56, 54, 10,
at the end of 165 ,20 359
994 45, 471 107 247 355
the ,14 1,3 ,02
Reporting ,64 971 ,59 ,46 ,80 ,26
4.1 68. 7.1
Period 7.0 .54 6.3 6.2 3.7 9.9
5 35 5
0 4 3 2 5
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
96
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024
Unit: RMB
H1 2024
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treas ehensi ic s ed owner
Other
capital red ual Other reserv ury ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as 1,548 2,824 5,900
909,0 82,16 359,8 339,2
at the end of ,778, 897,7 ,687, ,363,
58,54 5,144 58,07 48,74
the period of 230.0 81.74 635.9 866.2
prior year 1.44 .15 3.06 8.30
0 0 9
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as
at the 1,548 2,824 5,900
909,0 82,16 359,8 339,2
beginning of ,778, 897,7 ,687, ,363,
58,54 5,144 58,07 48,74
the 230.0 81.74 635.9 866.2
Reporting 1.44 .15 3.06 8.30
0 0 9
Period
3. Increase/ - - -
decrease in 2,595
21,54 48,68 67,63
the period (“- ,771.
” for 8,515 3,269 6,013
82
decrease) .71 .30 .19
-
3.1 Total 135,6 114,0
21,54
comprehensi 10,11 61,60
ve income 8,515
8.30 2.59
.71
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
97
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2024
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treas ehensi ic s ed owner
Other
capital red ual Other reserv ury ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
3.2.4
Other
- -
3.3 Profit 184,2 184,2
distribution 93,38 93,38
7.60 7.60
3.3.1
Appropriatio
n to surplus
reserves
3.3.2 - -
Appropriatio
184,2 184,2
n to owners
(or 93,38 93,38
shareholders) 7.60 7.60
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
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5 2,595 2,595
Specific ,771. ,771.
reserve 82 82
98
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2024
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treas ehensi ic s ed owner
Other
capital red ual Other reserv ury ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
3.5.1 4,106 4,106
Increase in ,091. ,091.
the period 11 11
1,510 1,510
3.5.2 Used
,319. ,319.
in the period
29 29
3.6 Other
4. Balance as 1,548 2,776 5,832
at the end of 909,0 82,16 338,3 3,493 339,2
,778, ,004, ,727,
the 58,54 5,144 09,55 ,553. 48,74
Reporting 230.0 366.6 853.1
1.44 .15 7.35 56 8.30
Period 0 0 0
H1 2023
Unit: RMB
H1 2023
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treas ehensi ic s ed owner
Other
capital red ual Other reserv ury ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as 1,361 2,810 4,919
7,426 82,16 498,7 322,6
at the end of ,994, ,316, ,023,
,635. 5,144 88,28 63,09
the period of 647.0 233.4 753.0
prior year 62 .15 4.79 6.39
0 1 6
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as
at the 1,361 2,810 4,919
7,426 82,16 498,7 322,6
beginning of ,994, ,316, ,023,
,635. 5,144 88,28 63,09
the 647.0 233.4 753.0
Reporting 62 .15 4.79 6.39
0 1 6
Period
3. Increase/ - - -
decrease in
52,23 70,61 122,8
the period (“-
” for 7,967 6,459 54,42
decrease) .85 .29 7.14
-
3.1 Total 64,28 12,04
52,23
comprehensi 3,005 5,037
ve income 7,967
.41 .56
.85
3.2 Capital
increased
and reduced
99
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treas ehensi ic s ed owner
Other
capital red ual Other reserv ury ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- -
3.3 Profit 134,8 134,8
distribution 99,46 99,46
4.70 4.70
3.3.1
Appropriatio
n to surplus
reserves
3.3.2 - -
Appropriatio
134,8 134,8
n to owners
(or 99,46 99,46
shareholders) 4.70 4.70
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
100
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
H1 2023
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treas ehensi ic s ed owner
Other
capital red ual Other reserv ury ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve 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 1,361 2,739 4,796
at the end of 7,426 82,16 446,5 322,6
,994, ,699, ,169,
the ,635. 5,144 50,31 63,09
Reporting 647.0 774.1 325.9
62 .15 6.94 6.39
Period 0 2 2
Legal representative: Wan Shan Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
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,
101
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
as approved to change into a foreign-invested stock limited company on 26 August 1996 by (1996) WJMZEHZ
No. 466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s
Republic of China. On 11 December 2000, as approved by China Securities Regulatory Commission with ZJGS
Zi [2000] No. 175 Document, the Company additionally issued 55,000,000 A shares. At approved by the
Shareholders’ General Meeting 2006, 2007, 2008, 2014 and 2017 the Company implemented the plan of
capitalization of capital reserve, after the transfer, the registered capital of the Company has increased to
RMB1,399,346,154.00. The Company held the 26th Meeting of the 9th Board of Directors on 14 January 2022,
where the Proposal on Cancelling Some Shares of the Company's Repurchase Special Securities Account was
deliberated and adopted. The repurchased 13 million A shares were used for the equity incentive plan. The
remaining 18,952,995 A shares and the repurchased 18,398,512 B shares, totaling 37,351,507 shares, were all
deregistered. On 8 February 2022, it was confirmed by Shenzhen Branch of CSDC that the number of
repurchased public shares canceled this time was 37,351,507, accounting for 2.67% of the total share capital of
the Company before the cancellation, including 18,952,995 A shares and 18,398,512 B shares. Upon the
cancellation of the shares, the total share capital of the Company was changed from 1,399,346,154 shares to
1,361,994,647 shares. The Company's registered capital was changed to RMB1,361,994,647.00. On 14 March
2023, the Company held the 39th Meeting of the Ninth Session of the Board of Directors and considered and
passed the Proposal on the Company's Compliance with the Conditions for the Issuance of A Shares to Specific
Objects, and the Board of Directors agreed that the Company should apply for the issuance of shares to specific
objects to the Shenzhen Stock Exchange (''SZSE''). According to the resolutions passed at the 39th Meeting of
the Ninth Board of Directors and the First Extraordinary General Meeting of 2023, the Company applied for the
issuance of ordinary shares (A shares) not exceeding 30% of the total share capital, i.e., not exceeding
408,598,394 shares to specific investors, and 186,783,583 shares were actually issued. After the issuance of
shares, the total share capital of the Company changed from 1,361,994,647 shares to 1,548,778,230 shares, and
the registered capital of the Company changed to RMB One Billion, Five Hundred and Forty-eight Million,
Seven Hundred and Seventy-eight Thousand, Two Hundred and Thirty (RMB1,548,778,230.00).
Credibility code of the Company: 91440000190352575W.
Legal representative: Mr. Wan Shan
Corporate domicile: No. 64, Fenjiang North Road, Chancheng District, Foshan, Guangdong Province
Office address: No. 8, Zhihui Road, Chancheng District, Foshan, Guangdong Province
102
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products,
electro technical products, vehicle lamp products, epitaxy and chip products, LED packaging and component
products, trade and other products.
The business term of the Company is long-term, which was calculated from the date of issuance of License of
Business Corporation.
(II) Authorized issuer and date of approval of the financial report
The Financial Report was approved and authorized for issue by the Board of Directors on 30 August 2024.
(III) 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 Lamp 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 Fozhao
Zhicheng Technology Co., Ltd. ( referred to as “Zhicheng Company”), FSL Zhida Electric Technology Co., Ltd
(referred to as “Zhida Company”), Foshan Hortilite Optoelectronics Co.,Ltd. (referred to as “Hortilite
Company”), Fozhao (Hainan) Technology Co., Ltd. (referred to as “Hainan Technology”), Foshan Kelian New
Energy Technology Co., Ltd. (referred to as “Foshan Kelian”), Nanning Liaowang Auto Lamp Co., Ltd.
(referred to as “Nanning Liaowang”), Foshan NationStar Optoelectronics Co., Ltd. (referred to as “NationStar
Optoelectronics”), Foshan Sigma Venture Capital Co., Ltd. (referred to as “Sigma”) and Fozhao Huaguang
(Maoming) Technology Co., Ltd. (referred to as “Huaguang Maoming”) in total 13 subsidiaries and Liuzhou
Guige Lighting Technology Co., Ltd. (referred to as “Liuzhou Lighting”), Liuzhou Guige Foreshine
Technology Co., Ltd. (referred to as “Liuzhou Foreshine”), Chongqing Guinuo Lighting Technology Co., Ltd.
(referred to as “Chongqing Guinuo”), Qingdao Guige Lighting Technology Co., Ltd. (referred to as “Qingdao
Lighting”), Indonesia Liaowang Auto Lamp Co., Ltd. (referred to as “Indonesia Liaowang”), Foshan NationStar
Electronic Manufacturing Co., Ltd. (referred to as “Guoxing Electronic”), Foshan NationStar Semiconductor
Co., Ltd. (referred to as “NationStar Semiconductor”), Nanyang Baoli Vanadium Industry Co., Ltd. (referred to
as “Baoli Vanadium Industry”), Guangdong New Electronic Information Ltd. (referred to as “New Electronic”),
NationStar Optoelectronics (Germany) Co., Ltd. (referred to as “Germany NationStar”), Guangdong Fenghua
Semiconductor Technology Co., Ltd. (referred to as “Fenghua Semiconductor”) and Gaozhou NationStar
Lighting Technology Co., Ltd. (referred to as “Gaozhou NationStar”) in total 12 sub-subsidiary.
103
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Given that Nanyang Baoli Vanadium Industry Co., Ltd. (Baoli Vanadium) is in a state of non-continuing
operations, the Financial Statements H1 2024 of Baoli Vanadium were formulated at fair value or costs
whichever was lower.
The scope of consolidation of the financial statements for this period increased by one subsidiary, Fozhao
Huaguang (Maoming) Technology Co., Ltd. (referred to as “Huaguang Maoming”) and one sub-subsidiary,
Gaozhou NationStar Lighting Technology Co., Ltd. (referred to as “Gaozhou NationStar”), compared with the
previous period. See Note IX "Changes in the scope of consolidation" and Note X "Interests in other entities"
for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The Company's financial statements are prepared on a going concern basis, based on transactions and events
that actually occur, in accordance with the provisions of the Accounting Standards for Business Enterprises -
Basic Guidelines and specific accounting standards issued by the Ministry of Finance (hereinafter referred to as
"ASBEs"), as well as the relevant provisions of "No. 15 of the Rules Governing the Preparation of Information
Disclosures by Companies Offering Securities to the Public - General Provisions on Financial Reporting" of the
China Securities Regulatory Commission and on the basis of the significant accounting policies and accounting
estimates formulated.
2. Going Concern
The Company has the ability to continue as a going concern for at least 12 months from the end of the
Reporting Period and there are no material matters affecting its ability to continue as a going concern.
V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The following significant accounting policies and accounting estimates of the Company have been formulated
in accordance with ASBEs. Operations not mentioned are treated in accordance with the relevant accounting
policies in the ASBE.
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 of the Company.
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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.
5. Methods for Determining materiality standards and selection criteria
Applicable □ Not applicable
1. Materiality of Financial Statement Items
The Company determines the materiality of financial statement items based on the principle of whether such items
affect the users of financial statements making economic decisions in terms of both the nature and amount. The
materiality of financial statement items in terms of the amount is determined based on a certain percentage of
relevant items in total assets, total liabilities, net assets, operating income, and net profit. The materiality of
financial statement items in terms of nature is based on factors with a significant impact on the Company's
financial position and operating results, such as whether they are part of routine operating activities, whether they
result in changes in profit or loss, and whether they affect regulatory indicators.
2. Materiality of Detailed Items in the Notes to Financial Statement Items
The Company determines the materiality of detailed items in the notes to financial statement items based on the
materiality of the financial statement items. This determination is made by considering a certain percentage of the
specific item, or a combination of the amount of the item, taking into account the nature of the specific item.
Certain items that are not material to the financial statements may be material to the notes and still require
separate disclosure in the notes. The materiality criteria related to the notes to the financial statement items are:
Item Materiality criteria
The individual amount accounts for more than 10% of the
Significant accounts receivable with bad debt provision
account receivable or bad debt provision, and the amount
separately accrued
exceeds RMB10 million.
Individual amount accounts for more than 10% of the current
Bad debt provision of accounts receivable collected or reversed
reversal of bad debt provision, and the amount exceeds RMB10
with significant amount in this year
million.
The individual amount accounts for more than 10% of the
Significant verification of accounts receivable in this year account receivable or bad debt provision, and the amount
exceeds RMB10 million.
The ending balance of an individual construction in progress
Significant construction in progress accounts for more than 10%, and the amount exceeds RMB50
million.
The individual amount accounts for more than 10% of accounts
Significant accounts payable/other payables over one year payable over 1 year/other payables, and the amount exceeds
RMB10 million.
Cash flows of an individual investment accounts for more than
Significant cash flows generated from investment activities 3% of the net assets at the period-end, and the amount exceeds
RMB100 million.
Significant non-wholly-owned subsidiary Minority shareholders hold more than 5% interest and any of
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the items of total assets, net assets, operating revenues and net
profits of the subsidiary accounts for more than 10% of the
corresponding items in the consolidated financial statements.
The investment income generated from joint ventures or
associated enterprises (The loss is calculated in absolute terms)
Significant joint ventures or associated enterprises
accounts for more than 10% of the net profit of consolidated
financial statements.
Significant debt reorganization The influence of individual amount on net profit exceeds 10%.
The amount of an individual commitment exceeds RMB10
Significant commitments
million.
The amount of money involved in cases exceeds RMB10
Significant contingency
million.
6. Accounting Methods for Business Combination Involving Enterprises under and not under the Same
Control
1. Business combination under the same control
In case of a long-term equity investment resulting from a business combination under the same control, if the
acquirer pays cash, transfers non-cash assets, assumes debts as merger consideration, the share of the Company's
equity of the acquiree obtained on combination date in the carrying value of the financial statements of the
ultimate controlling party is deemed as an initial investment cost of long-term equity investments. If the acquirer
issues equity instruments as consideration for a combination, the total par value of the shares issued is treated as
equity. The difference between the initial investment cost of a long-term equity investment and the carrying
amount of the consideration for consolidation (or the total nominal value of shares issued) shall be adjusted to
capital surplus; if capital surplus is not sufficient to offset the difference, retained earnings shall be adjusted.
2. Business combination not involving entities under the same control
In case of business combination involving enterprises not under the same control, the combination costs shall be
the total fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on the date of
acquisition by the acquirer in exchange for control on the acquiree. Identifiable assets, liabilities and contingent
liabilities of the acquiree acquired in a business combination not under the same control that qualify for
recognition are measured at fair value on the date of acquisition. The acquirer recognizes as goodwill the
difference between the combination costs and the fair value share of the identifiable net assets of the acquiree
obtained in the combination. If the combination costs are less than the fair value share of the acquiree's
identifiable net assets obtained in the combination, the difference between the combination costs still less than the
fair value share of the acquiree's identifiable net assets obtained in the combination after review shall be included
in the non-operating revenue for the current period.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
1. Judgment criteria for control
The scope of consolidation of the consolidated financial statements is determined on the basis of control. An
investee is considered to be controlled if the following three elements are present: the possession of power over
the investee, the enjoyment of variable returns as a result of participating in the relevant activities of the
investee, and the ability to use the power over the investee to affect the amount of returns.
2. Preparation methods for consolidation financial statements
(1) Unification of accounting policies, balance sheet dates and accounting periods of parent and subsidiary
companies
If the accounting policies and accounting period adopted by the subsidiaries are inconsistent with those of the
Company, necessary adjustments are made in accordance with the accounting policies and accounting period of
the Company when preparing the consolidated financial statements.
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(2) Offsetting items in the consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its subsidiaries
and have been offset by internal transactions that occurred between the Company and its subsidiaries and between
subsidiaries. The share of owners' equity of subsidiaries that do not belong to the Company is presented as
minority interests in the consolidated balance sheet under the item of shareholders' equity as "minority interests".
Long-term equity investments held by subsidiaries are deemed as the Company's treasury stock and presented as a
deduction from shareholders' equity in the consolidated balance sheet under the item "Less: treasury stock".
(3) Accounting treatment of the acquisition of subsidiaries through consolidation
For subsidiaries acquired through a business combination under common control, the assets, liabilities, operating
results, and cash flows are included in the consolidated financial statements from the beginning of the period of
consolidation as if the business combination had occurred at the time the ultimate controlling party began to
exercise control; for subsidiaries acquired through a business combination, not under the same control, the fair
value of the identifiable net assets on the acquisition date is used as the basis for preparing the consolidated
financial statements. The financial statements are adjusted based on the fair value of the identifiable net assets on
the acquisition date.
(4) Accounting treatment of disposal of subsidiaries
If a long-term equity investment in a subsidiary is partially disposed of without loss of control, the difference
between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the
long-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date is
adjusted to capital surplus in the consolidated financial statements, and retained earnings is adjusted if the capital
surplus is not sufficient to cover the reduction. If the control over the investee is lost due to the disposal of part of
equity investments, the residual equity are re-measured at fair value on the date of loss of control. The aggregate
of the consideration obtained by disposing of the equity and the fair value of the remaining equity less the portion
of the net assets of the subsidiary that has been measured, as calculated at the original shareholding proportion,
from the acquisition date or combination date is recognized in profit and loss of the current period on investments
in which the control is lost, and goodwill shall be offset. Other comprehensive income related to the equity
investments in the former subsidiary shall be included in the return on investment for the current period when the
Company lost the control.
8. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
1. Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not reached
through separate entities are classified as joint operations. Separate entities refer to entities with separate
identifiable financial structures, including separate legal entities and entities that do not have legal entity status but
are recognized by law. The joint arrangements reaching through separate entities are usually classified as joint
ventures. Where changes in relevant facts and circumstances result in changes in the rights and obligations of the
joint venture parties in the joint venture arrangement, the joint venture parties shall reassess the classification of
the joint venture arrangement.
2. Accounting treatment of joint operations
As a participant in a joint operation, the Company recognizes the following items related to its share of interest in
the joint operations. It accounts for them following the relevant Accounting Standards for Business Enterprises:
Recognition of assets or liabilities held separately, and recognition of assets or liabilities held jointly on a share
basis; recognition of revenue from the sale of the share of output from the joint operation to which it is entitled;
recognition of revenue from the joint operation arising from the sale of output on a share basis; and recognition of
expenses incurred separately, and recognition of expenses incurred in the joint operation on a share basis.
If the Company is a participant in a joint operation that does not enjoy joint control, and it owns the underlying
assets of the joint operation and assumes the liabilities related to the joint operation, the accounting treatment of
the joint operation partner shall be referred to; otherwise, the accounting treatment shall be carried out in
accordance with the relevant enterprise accounting standards.
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3. Accounting treatment of joint ventures
If the Company is a joint venture partner, it shall account for its investment in joint ventures following the
provisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity Investments; if the
Company is a non-joint venture partner, it shall account for its investment in such joint ventures based on the
extent of its influence on such joint ventures.
9. Recognition Criteria of Cash and Cash Equivalents
Cash, as determined by the Company in preparing the statement of cash flows, represents the Company's cash on
hand and deposits that are readily available for disbursement. Cash equivalents identified in the preparation of the
statement of cash flows are investments that are held for a short period of time, are highly liquid, are readily
convertible to known amounts of cash and are subject to an insignificant risk of change in value.
10. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
1. Conversion of 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. Exchange differences arising from the difference between the spot rate on that date and the
spot rate at initial recognition or on the previous balance sheet date are recognized in profit or loss, except for
exchange differences on special borrowings in foreign currencies that qualify for capitalization, which are
capitalized in the period in which they are capitalized and charged to the cost of the related assets. Non-monetary
items measured at historical costs in foreign currencies are still translated at the spot exchange rate on the
transaction date with the amount of standard currency for accounting unchanged. Non-monetary items measured
at fair value in foreign currencies are translated at the spot exchange rate on the date when the fair value is
determined. The difference between the amount of standard currency for accounting after translation and the
original amount shall be treated as a change in fair value (including exchange rate changes) and recognized in
current profit or loss or in other comprehensive income.
2. Conversion of foreign currency financial statements
If the Company's subsidiaries, joint ventures, and affiliated business use a different bookkeeping base currency
from the Company's, they need to convert their foreign currency financial statements before conducting
accounting and preparing consolidated financial statements. The assets and liabilities in the balance sheet shall be
translated at the spot rate on the balance sheet date. All items of owners' equity, except for "undistributed profit",
shall be translated at the spot exchange rate at the time of occurrence. Items under revenue and expenses in the
income statement are translated at the spot exchange rate on the transaction date. The exchange difference in
translating foreign operations arising from the translation are shown under other comprehensive income in the
owner's equity line in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchange
rate on the date of occurrence of the cash flows. The impact of exchange rate changes on cash is presented
separately in the cash flow statement. When an overseas operation is disposed of, the foreign currency statement
translation difference related to the overseas operation is transferred to the current profit and loss of the disposal in
full or in proportion to the disposal of the overseas operation.
11. Financial Instruments
1. Classification, recognition and measurement of financial instruments
(1) Financial assets
Based on the business model for managing financial assets and the contractual cash flow characteristics of
financial assets, the Company classifies its financial assets into the following three categories:
a) Financial assets are measured at the amortized cost. The business model of the Company for managing such
financial assets aims at obtaining contractual cash flow, and the characteristics of contractual cash flow of such
financial assets are basically the same as basic borrowing arrangement, namely the cash flow arising on a specific
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date, which are solely payments of principal and interest on the principal amount outstanding. Interest income is
subsequently recognized on such financial assets on the basis of the effective interest method.
b) Financial assets at fair value and changes included in other comprehensive income The business model of the
Company for managing such financial assets aims at receiving contractual cash flow as well as selling, and the
characteristics of contractual cash flow of such financial assets are basically the same as basic borrowing
arrangement. Such financial assets are subsequently measured at fair value with changes recognized in other
comprehensive income, except for interest income, impairment losses or gains calculated in accordance with the
effective interest method and foreign exchange gains or losses recognized in the current profit or loss.
c) Financial assets measured at fair value through profit or loss for the current period Financial assets held that are
not classified as at amortized cost and at fair value through other comprehensive income are measured at fair
value, with gains or losses (including interest and dividend income) recognized in profit or loss for the current
period. On initial recognition, a financial asset may be irrevocably designated as financial asset at fair value
through profit or loss if the accounting mismatch can be eliminated or reduced. The designation shall not be
revoked once made.
For instruments in non-business equity instruments, the Company may irrevocably assign such investments as
financial assets (equity instruments) measured at fair value through other comprehensive income at initial
recognition. The assignment is made based on investments by item, and the relevant investments meet the
definition of an equity instrument from the issuer's perspective. Such financial assets are subsequently measured at
fair value, and except for dividends received (except for the portion which forms part of investment cost
recovered), which are recognized in profit or loss, all other related gains and losses are recognized in other
comprehensive income and are not subsequently transferred to current profit or loss.
(2) Financial liabilities
On initial recognition, financial liabilities are classified into the following categories:
a) Financial liabilities measured at fair value through profit and loss for the current period. Such financial
liabilities are subsequently measured at fair value, and the resulting gains or losses are recognized in profit or loss
for the current period.
b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the
continuing involvement approach applies.
c) Financial liabilities measured at amortized cost. Such financial liabilities are measured at amortized cost using
the effective interest method.
2. Method for recognizing the fair value of financial instruments
For a financial instrument with an active market, its fair value is determined by its quoted price in the active
market; for a financial instrument without an active market, its fair value is determined by valuation techniques.
Under limited circumstances, if the information used to determine fair value is insufficient, or if the range of
possible estimates of fair value is wide and the cost represents the best estimate of fair value within that range, the
cost may represent its appropriate estimate of fair value within that range of distribution. The Company uses all
information available after the initial recognition date about the investee's performance and operations to
determine whether the cost represents fair value.
3. Derecognition of financial instruments
A financial asset is derecognized when one of the following conditions is met: (1) the contractual right to receive
cash flows from the financial asset is terminated; (2) the financial asset is transferred and the conditions for
derecognition are met.
If the present obligation of a financial liability is discharged in whole or in part, the discharged portion is
derecognized. If an existing liability is replaced by another financial liability from the same creditor on
substantially different terms, or the terms of an existing liability are substantially modified, the existing financial
liability is derecognized and a new financial liability is recognized simultaneously. All regular acquisitions or
sales of financial assets are recognized and derecognized on a transaction date basis.
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12. Notes Receivable
The determination methods and accounting methods of notes receivable are detailed in Note V-13. Accounts
Receivable.
13. Accounts Receivable
1. Measurement of expected credit loss
The Company uses expected credit losses as the basis for impairment accounting and recognizes an allowance for
bad debts for financial assets measured at amortized cost (including accounts receivable, including notes
receivable and accounts receivable), financing receivables, lease receivables, and other receivables.
2. Recognition method for expected credit losses
The general approach to expected credit losses is that: the Company assesses whether the credit risk of the
relevant financial instruments has increased significantly since the initial recognition on each balance sheet date,
divides the process of credit impairment of financial instruments into three stages, and applies different
accounting treatments to the impairment of financial instruments at different stages: (1) in the first stage, if the
credit risk of a financial instrument has not increased significantly since the initial recognition, the Company will
measure the loss reserves according to the amount equivalent to the expected credit losses in the next 12 months,
and calculate the interest revenue according to the book balance (i.e., before deducting the provision for
impairment) and the actual interest rate; (2) In the second stage, if the credit risk of a financial instrument has
increased significantly since the initial recognition but no credit impairment has occurred, the Company will
measure the loss reserves based on the expected credit loss over the entire life of the financial instrument and
calculates interest revenue based on the carrying amount of the financial instrument and the effective interest rate;
(3) In the third stage, if credit impairment occurs after the initial recognition, the Company will measure the loss
reserves based on the expected credit loss over the life of the financial instrument and calculates interest revenue
based on the amortized cost (carrying amount less provision for impairment) and the effective interest rate.
The simplified approach for expected credit losses is to always measure the allowance for losses at an amount
equal to the expected credit losses throughout their lives.
3. Accounting methods of the expected credit losses
To reflect the changes in credit risk of financial instruments since initial recognition, the Company remeasures
expected credit losses at each balance sheet date. The resulting increase or reversal amount of the loss provision
should be recognized as an impairment loss or gain in profit or loss and offset against the carrying amount of the
financial asset as stated in the balance sheet or included in projected liabilities, depending on the type of financial
instrument (loan commitments or financial guarantee contracts).
4. Method of the provision for losses on the measurement of receivables, lease receivables
(1) Receivables with no significant financing component. For receivables arising from transactions governed by
Accounting Standard for Business Enterprises No. 14 - Revenue that do not have a significant financing
component, the Company uses a simplified approach whereby the allowance for losses is always measured on the
basis of expected credit losses throughout their lives.
①Accounts receivable of expected credit losses withdrawn individually
Rationale for a single provision for expected
Objective evidence of impairment
credit losses
The impairment tests are conducted separately for accounts receivable individually
accrued. An impairment loss is recognized based on the difference between the
Individual accruals for expected credit losses
present value of future cash flows and their carrying amount, and an expected credit
loss is recorded
②Accounts Receivable with Expected Credit Losses Provision Based on Credit Risk Portfolio
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Portfolio name Basis for portfolio recognition Determination method of expected credit losses
General lighting, auto lamps and other
Prepare the comparative list between aging of accounts
relevant business with the Company as the
Business portfolio of receivable and expected credit loss rate over the entire life
parent and the subsidiary Nanning
general lighting and auto and calculate the expected credit loss by consulting
Liaowang as the representative, this
lamps historical experience in credit losses, combining current
portfolio takes the aging of accounts
situation and prediction for future economic situation.
receivable as the credit risk characteristics
LED packaging, components and other
Prepare the comparative list between aging of accounts
relevant business with the subsidiary
receivable and expected credit loss rate over the entire life
Business portfolio of LED NationStar Optoelectronics as the
and calculate the expected credit loss by consulting
packaging and components representative, this portfolio takes the aging
historical experience in credit losses, combining current
of accounts receivable as the credit risk
situation and prediction for future economic situation.
characteristics
Internal business portfolio Related parties and internal transactions Other methods
Notes Receivable for which the Expected Credit Loss is Withdrawn by Credit Risk Characteristics
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
Portfolio 1 Bank acceptance bill Low credit risk with no provision for bad debts
Prepare the comparative list between aging of accounts
receivable and expected credit loss rate over the entire life
Portfolio 2 Trade acceptance and calculate the expected credit loss by consulting
historical experience in credit losses, combining current
situation and prediction for future economic situation.
The aging analyses are based on their date of entry into the accounts.
Among portfolios, expected credit losses accrued by aging analysis:
Expected credit loss rate
Aging
Business portfolio of general lighting and Business portfolio of LED packaging and
auto lamps components
Within 1 year (including 1 year) 3% 2%
1 to 2 years 10% 10%
2 to 3 years 30% 30%
3 to 4 years 50% 50%
4 to 5 years 80% 80%
Over 5 years 100% 100%
(2) Receivables and lease receivables containing significant financing components.
For receivables with significant financing components and lease receivables, the Company measures the
provision for losses in accordance with the general method, i.e., the "three-stage" model. The credit risk
characteristics grouping, the aging calculation method based on the credit risk characteristics grouping, and the
criteria for determining individual provisioning are consistent with the recognition standards for those without
financing components.
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5. Method of measuring loss provision for other financial assets
For financial assets other than those mentioned above, such as debt investments, other debt investments, other
receivables and long-term receivables other than lease receivables, the Company measures the allowance for
losses in accordance with the general method, i.e. the "three-stage" model.
(1) Categories of bad debt provision according to credit risk characteristics and basis of determination
The Company divides other receivables into certain credit risk combinations based on the nature of the amounts. It
calculates expected credit losses based on the combinations, and the basis for determining the combinations is as
below:
Portfolio name Basis for portfolio recognition
Porfolio 1: Deposit, security deposit Based on nature of accounts
Porfolio 2: Amounts from related parties Based on nature of accounts
Porfolio 3: Advances on behalf of others Based on nature of accounts
(2) Aging calculation method for recognizing credit risk combinations based on aging
Refer to the description of receivables with no significant financing components.
(3) Criteria for determining the bad debt provision based on individual items
Refer to the description of receivables with no significant financing components.
14. Accounts Receivable Financing
The determination methods and accounting methods of receivables financing are detailed in Note V-13.
Accounts Receivable.
15. Other Receivables
The determination methods and accounting methods of expected credit losses of other receivables is the same as
that of accounts receivable, as detailed in Note V-13. Accounts Receivable.
16. Contract Assets
The Company presents the right to receive consideration for goods or services that have been transferred to the
customer (and which is dependent on factors other than time-lapse) as a contract asset. The provision for
impairment of contract assets is made with reference to the method of determining expected credit losses in this
note.
Contract assets are categorized into the following portfolios according to credit risk characteristics:
Portfolio Determination basis
General lighting, automotive lamps and related businesses represented by
Portfolio 1: General lighting and lamps business
the parent company and its subsidiary Nanning Liaowang. This portfolio
portfolio
uses the aging of accounts receivable as the credit risk characteristic.
LED packaging, components and other related businesses represented by
Portfolio 2: LED packaging and components business
subsidiary NationStar Optoelectronics. This portfolio uses the aging of
portfolio
accounts receivable as the credit risk characteristic
Portfolio 3: Internal business portfolio This portfolio involves related-party transactions and internal transactions
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17. Inventory
1. Classification of inventories
Inventories refer to the Company's finished goods or commodities for sale held in daily activities, unfinished
goods in manufacturing process, and materials and supplies consumed in process of manufacturing products or
providing services, etc. Inventories mainly include raw materials, goods in process, materials in transit, finished
goods, commodities, turnover materials, materials commissioned for processing, etc. Turnover materials include
low-value consumables and packaging materials.
2. Pricing method of issuing inventories
Inventories are valuated at the actual cost of the acquisition, and the inventory costs include procurement costs
and processing costs. Inventories are valuated using the weighted average method when being issued.
3. Inventory system of inventories
The perpetual inventory system is adopted for the inventories of the Company.
4. Amortization of low-value consumables and packing materials
The one-off charge-off method is used for low-value consumables and packaging materials.
5. Criteria for Recognizing and Accrual method of provision for decline in value of inventories
Net realizable value refers to the amount after deducting the cost estimated until completion, estimated selling
expenses, and relevant taxes from the estimated selling price of the inventory. The Company determines the net
realizable value of inventories based on solid evidence obtained and after taking into consideration the purpose for
which the inventory is held, and the impact of post-balance sheet events.
The net realizable value of finished goods, materials for sale, and other merchandise inventories used directly for
sale is determined in the normal course of production and operation as the estimated selling price of such
inventories, less estimated selling expenses, and related taxes.
The net realizable value of material inventories subject to processing is determined in the normal course of
production operations as the estimated selling price of the finished goods produced, less the estimated costs to be
incurred to completion, estimated selling expenses, and related taxes. The Company determines the net realizable
value of inventories based on solid evidence obtained and after taking into consideration the purpose for which the
inventory is held, and the impact of post-balance sheet events.
18. Assets Held for Sale
1. Recognition criteria and accounting treatment for non-current assets classified as held for sale or disposal
groups
A non-current asset or disposal group whose carrying value will be recovered principally through sale rather than
through continuing use is classified as held for sale and meets the following conditions: first, it is immediately
available for sale under current conditions based on the customary practice for sales of such assets or disposal
groups in similar transactions; and second, it is highly probable that the sale will occur, i.e., the enterprise has
already resolved on a plan for the sale and has obtained a firm commitment to purchase, and it is expected that the
sale is expected to be completed within one year. The relevant regulations require the approval of the relevant or
regulatory authority of the enterprise before the sale shall have been approved.
When the Company initially measures or remeasures non-current assets or disposal groups held for sale on the
balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, the
carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down
will be recognized as asset impairment loss and included in current profit and loss, and provision for impairment
of assets held for sale will be made.
The amount of asset impairment loss recognized for disposal groups held for sale shall be offset against the
carrying value of goodwill in the disposal group first, and then against the carrying value of each non-current asset
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proportionately according to the proportion of the carrying value of each non-current asset in the disposal group as
defined in the applicable measurement of the "Accounting Standards for Business Enterprises - Non-current
Assets Held for Sale, Disposal Groups and Discontinued Operations".
2. Recognition criteria and presentation of discontinued operations
Discontinued operations is a separately distinguishable component that meets one of the following conditions and
that has been disposed of by the Company or classified by the Company as held for sale: the component
represents a separate principal business or a separate principal operating area; the component is part of a related
program of proposed dispositions of a separate principal business or a separate principal operating area; The
component is a subsidiary acquired specifically for resale.
The Company presents gains and losses from continuing operations and gains and losses from discontinued
operations separately in the statement of income. Operating gains and losses, such as impairment losses and
reversal amounts for discontinued operations, and gains and losses on disposals are presented as gains and losses
from discontinued operations. The revenues, expenses, gross profit, income tax expense (benefit) and net profit
from discontinued operations, impairment losses recognized on assets or disposal groups of discontinued
operations and the amount of their reversal, total gain or loss on disposal of discontinued operations, income tax
expense (benefit) and net gain or loss on disposal, net cash flows from operating activities, investing activities and
financing activities of discontinued operations, and gains and losses from continuing operations and gains and
losses from discontinued operations attributable to owners of the parent company are disclosed in the notes.
19. Investment in Debt Obligations
Not applicable
20. Other Investment in Debt Obligations
The determination methods and accounting methods of other investment in debt obligations are detailed in Note
V-11. Financial Instruments.
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
1. Judgment criteria for joint control and significant influence
Joint control means that activities that have a significant impact on the return of an arrangement must be decided
upon with the unanimous consent of the participants sharing control, including sales and purchases of goods or
services, management of financial assets, purchases and disposals of assets, research and development activities,
and financing activities. Significant influence refers to the condition where an investor holds between 20% to 50%
of the voting capital in an investee, generally indicating a significant influence. Or, although less than 20%,
having a significant influence when one of the following conditions is met: Representation on the board of
directors or similar authority of the investee; participation in the policy-making process of the investee;
assignment of management personnel to the investee; reliance of the investee on the technology or technical
information of the investee; and major transactions with the investee.
2. Determination of initial investment cost
For long-term equity investments acquired through a business combination, in the case of a business combination
under the same control, the initial investment cost of the long-term equity investment shall be the share of the
owners' equity of the party being combined in the consolidated financial statements of the ultimate controlling
party on the combination date; in the case of a business combination not under the same control, the initial
investment cost of the long-term equity investment shall be the cost of combination determined on the acquisition
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date; for long-term equity investments acquired by paying cash, the initial investment cost is the actual purchase
price paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost is the
fair value of the equity securities issued; for long-term equity investments acquired through debt restructuring, the
initial investment cost is determined in accordance with the relevant provisions of Accounting Standards for
Business Enterprises No. 12-Debt Restructuring; for long-term equity investments acquired through exchange of
non-monetary assets, the initial investment cost is determined in accordance with the relevant provisions of
Accounting Standards for Business Enterprises No. 7-Exchange of Non-monetary Assets.
3. Method of subsequent measurement and recognition of profit or loss
Long-term equity investments in which the Company can exercise control over the investees are accounted for by
the cost method, and long-term equity investments in associates and joint ventures are accounted for by the equity
method. If a portion of the Company's equity investments in affiliates is held indirectly through venture capital
institutions, mutual funds, trust companies, or similar entities, including investment-linked funds, regardless of
whether the above entities have significant influence over this portion of the investment, the Company treats it in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 22-Recognition
and Measurement of Financial Instruments and accounts for the remaining portion with the equity method.
23. Investment Properties
Measurement model of investment property
Measurement of cost method
Depreciation or amortization method
The Company's investment property include leased land use rights, leased buildings, and land use rights held and
ready to be transferred after appreciation. Investment property is initially measured according to cost, and then
measured by cost model.
The Company uses the composite life depreciation method for buildings leased out of investment properties, and
the specific accounting policies are the same as those for fixed assets. Land use rights leased out of investment
properties and land use rights held and intended to be transferred after appreciation are amortized through the
straight-line method with the same accounting policies as those for the intangible assets segment.
24. Fixed Assets
(1) Recognition conditions
The fixed assets refer to tangible assets held for production of goods, provision of labour services, lease or
business with a service life of over a fiscal year. Recognition is made when the following conditions are met: The
economic benefits associated with the fixed-asset will probably flow to the enterprise; the cost of the fixed-asset
can be measured reliably.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciable life Residual value rate
rate
Straight-line
Houses and buildings 3-36 years 1%-10% 31.67%-3.17%
depreciation method
Straight-line
Machinery equipment 2-11 years 1%-10% 47.50%-8.18%
depreciation method
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Transportation Straight-line
5-10 years 1%-10% 19.00%-9.50%
equipment depreciation method
Straight-line
Electronic equipment 2-8 years 1%-10% 47.50%-11.88%
depreciation method
Straight-line
Other equipment 5 years 5%-10% 19%-18%
depreciation method
The Company's fixed assets are mainly classified into: buildings and structures, machinery and equipment,
electronic equipment, transportation equipment, other equipment, etc. The depreciation method is the average
annual limit method. The service lives and estimated residual values of fixed assets are determined according to
the nature and utilization of each category of fixed assets. At the end of the year, the service lives, estimated
residual values and depreciation methods of fixed assets are reviewed, and adjustments are made accordingly if
there are differences from the original estimates. All fixed assets are depreciated, except for fully depreciated
fixed assets that continue to be used and land that is separately accounted for.
25. Construction in Progress
The Company's construction in progress is divided into two types: Construction on a self-operation basis and a
contracted basis. The criteria and time point for carrying forward construction in progress to fixed assets are
based on the construction in progress reaching its intended state of use. The standard for determining the
intended usable condition shall be one of the following: The physical construction (including installation) of the
fixed assets has been fully completed or substantially completed; production or trial operation has been
conducted, and the results show that the assets can operate normally or can steadily produce qualified products,
or the results of the trial operation show that they can function normally or operate; the amount of expenditure
on the fixed assets constructed is little or almost no longer incurred; the fixed assets acquired have met the
design or contract requirements, or are substantially consistent with the design or contract requirements.
26. Borrowing Costs
1. Recognition principles for the capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributable to the acquisition, construction or
production of assets that meet the capitalization conditions, they shall be capitalized and included in the costs of
the underlying assets; other borrowing costs recognized as costs according to the amount incurred shall be
included in the profit and loss for the current period. Assets eligible for capitalization refer to assets, such as fixed
assets, investment properties, and inventories that require a long period for their acquisition or production
activities to reach the expected usable or saleable status.
2. Calculation of capitalization amount
The capitalization period refers to the period from when the capitalization of borrowing costs starts to when the
capitalization stops. The period during which capitalization of borrowing costs is suspended is not included.
Capitalization of borrowing costs shall be suspended if there is an abnormal interruption in the course of
acquisition or production and the interruption lasts for more than three consecutive months.
Borrowing of special borrowings is determined by the interest expense incurred in the period of the special
borrowings, less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or the
investment income earned by making temporary investments; the appropriation of general borrowings is
determined by multiplying the weighted average amount of asset expenses over the portion of special borrowings
by the capitalization rate of the general borrowings appropriated, which is the weighted average interest rate of
general borrowings; if there is a discount or premium on borrowings, the amount of discount or premium to be
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amortized in each accounting period is determined by the effective interest rate method. The amount of interest is
adjusted for each period.
The effective interest rate method is a method of calculating the amortized discount or premium or interest
expense on a borrowing based on its effective interest rate. The effective interest rate method calculates the
amortized discount or premium or interest expense on a borrowing based on its effective interest rate.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Intangible Assets
1. Pricing method of intangible assets
The Company initially measures the intangible assets at cost. For the acquired intangible assets, the actual prices
paid and related expenses shall be regarded as the actual costs. The actual cost of intangible assets invested by
investors shall be recognized according to the value agreed upon in the investment contract or agreement. In case
of unfair contract or agreement, the actual cost shall be recognized according to the fair value. The cost of self-
developed intangible assets shall be the total expenditure incurred before they reach the intended use.
2. Service life and its determination basis, estimation, amortization method, or review procedure
Intangible assets with finite service lives are amortized on a straight-line basis over their service lives, and the
service lives and amortization methods of intangible assets are reviewed at the end of the year and adjusted
accordingly if there are differences from the original estimates. Intangible assets with indefinite service lives are
not amortized, but are reviewed at the end of the year for service lives and estimated when there is conclusive
evidence that the service life is finite.
The useful life and its determination basis and amortization method of intangible assets with restricted useful life:
Category Useful life Determination basis of useful life Amortization method
Land use right 20-50 Duration of land use rights Method of line
Expected number of years of
Patent use right 5-20 Method of line
benefit
Expected number of years of
Software use right 3-10 Method of line
benefit
The intangible assets are regarded as intangible assets with uncertain service life if the term during which they can
bring economic benefits to the Company is unforeseeable or if their usage period is uncertain. The bases for
determining of uncertain service life are: The intangible assets come from contractual or other legal rights, but the
contract or laws have no certain stipulations of the service life; the term during which the intangible assets bring
economic benefits to the Company is still unforeseeable even with consideration of peer status or demonstrations
of related professionals.
At the end of each year, the review of service life of intangible assets with uncertain service life mainly adopts the
method of reviewing from lower department to upper department, where departments related to the use of
intangible assets shall conduct the basic review and make assessment of whether the determining basis of
uncertain service life changes.
3. The scope of R&D expenditure collection and the related accounting treatment
The scope of the Company's R&D expenditures is mainly formulated based on the Company's research and
development projects, which mainly includes: including R&D personnel's employee remuneration, direct input
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expenses, depreciation expenses and long-term amortization expenses, design expenses, equipment
commissioning expenses, amortization expenses of intangible assets, commissioned external research and
development expenses, and other expenses, etc.
Expenditures incurred during the research phase of an internal research and development project are recognized in
profit or loss when incurred; expenditures incurred during the development phase that meet the conditions for
recognition as an intangible asset are transferred to intangible asset accounting.
Specific criteria for dividing the research phase and development phase of internal research and development
projects: The expenditures in internal research and development projects of the Company are classified into
expenditures in research stage and expenditures in development stage. The expenditures in research stage are
included in the current profits and losses when incurred. The expenditures in development stage are recognized as
intangible assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits, including the proof that the products
produced with the intangible assets can be sold in a market or the proof of its usefulness if the intangible assets
can be sold in a 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 after meeting intangible assets
recognition criterion and before reaching intended use. Expenditures that have been expensed in previous periods
are no longer adjusted.
30. Impairment of Long-term Assets
For long-term assets having the indication of impairment on balance sheet date such as long-term equity
investments, investment property measured in cost mode, fixed assets, construction in progress, productive living
assets measured in cost mode, oil and gas assets, and intangible assets, the Company shall test the 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 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.
Goodwill presented separately in the financial statements shall be tested for impairment every year, whether or not
there is any indication of impairment. The book value of the goodwill shall be apportioned to the asset group or
portfolio of asset groups that is expected to benefit from the synergies of the business combination when the
impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that the
recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is lower
than its book value. The amount of the impairment loss shall offset the book value of the goodwill apportioned to
the asset group or portfolio of asset groups, and offset the book value of other assets in proportion according to the
proportion of the book value of other assets except the goodwill in the asset group or portfolio of asset groups.
Once the impairment loss of the above asset is recognized, the portion that the value is restored will not be written
back in subsequent periods.
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31. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (excluding one
year) that have occurred but are attributable to the current and future periods. Long-term prepaid expense shall be
amortized averagely within benefit period. In case of no benefit in the future accounting period, the amortized
value of such item that fails to be amortized shall be transferred into the current profits and losses.
32. Contract Liabilities
The Company presents the obligation of transferring goods to or providing services for customers for
consideration received or receivable as a contract liability. The Company presents contract asset and contract
liability under the same contract on a net basis.
33. Payroll
Employee benefits refer to all forms of remuneration or compensation given by the Company for services
rendered by employees or for the termination of employment relationships. Employee benefits mainly include
short-term benefits, post-employment benefits, termination benefits and other long-term employee benefits.
(1) Accounting treatments for short-term benefits
The short-term compensation actually happened during the accounting period when the active staff offering the
service for the Company should be recognized as liabilities and is included in the current profits and losses except
for those required or allowed to be included in the assets cost by the Accounting Standards for Business
Enterprises. The employee services benefits actually happened in the Company shall be included in the current
profits and losses or relevant assets cost according to the actual amount. Of which the non-monetary benefits
should be measured according to the fair value. During the accounting term in which employees provide service,
the Company calculates and determines the corresponding payroll amount in accordance with the withdrawal
basis and withdrawal proportion specified in regulations with the social insurance premiums such as medical
insurance premiums, industrial injury insurance premium and birth insurance premium, housing fund, and the
labour union budget and employee education budget withdrawn in regulations, and then recognizes it as liabilities
that are included in the current profits and losses or relevant assets cost.
(2) Accounting treatment of the welfare after demission
The payable and deposit amount calculated according to the defined contribution plan during the accounting
period when the active staff offering the service for the Company is recognized as liabilities and is included in the
current profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shall
be attributable to the period in which the employees provide services based on the formula determined by
expected cumulative welfare unit method and included in current profits and losses or cost of relevant asset.
(3) Accounting treatment of the demission welfare
When offering the demission welfare, the Company shall recognize the payroll liabilities incurred from the
demission welfare on the earlier of the date when the Company could not unilaterally withdraw the demission
welfare offered by the plan or layoff proposal owing to termination of the labour relationship or the date when the
Company recognizes the cost related to the reorganization of the payment of the demission welfare, and include
the payroll liabilities into the current profits and losses:
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(4) Accounting treatment of the welfare of other long-term staffs
The other long-term welfare that the Company offers to the staff, if met with the setting drawing plan, shall be
disposed of according to the relevant setting drawing plan; except for that, net liabilities or net assets of the
welfare of other long-term staff shall be recognized and measured according to the setting drawing plan.
34. Accrued liabilities
The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a current
obligation of the Company, and it is likely to cause any economic benefit to flow out of the enterprise as a result
of performance of the obligation, while the amount of the obligation can be measured in a reliable way. The
Company conducts the initial measurement 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 midpoint estimate within the range; if the contingencies concern two or more items, the best estimate shall be
calculated and determined in accordance with all possible outcomes and the relevant probabilities.
Review of the book value of provisions shall be conducted on the balance sheet date. The book value shall be
adjusted in accordance with the current best estimate when there is definite evidence indicating that the book
value cannot reflect the current best estimate in faithfulness.
35. Share-based Payment
Not applicable
36. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
37. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement by type of business
The Company recognizes revenue based on the transaction price apportioned to the performance obligation in a
contract when the customer obtains control of the underlying good or service. Obtaining control of related goods
refers to that customers can control the use of the goods and obtain almost all the economic benefits from the
goods. A performance obligation is a contractual commitment by the Company to transfer a clearly distinguishable
commodity to a customer. The transaction price is the amount of consideration that the Company expects to be
entitled to receive as a result of the transfer of the commodity to the customer, excluding amounts collected on
behalf of third parties and amounts that the Company expects to return to the customer.
Whether the performance obligation is to be fulfilled within a certain period of time or at a certain point in time
depends on the terms of the contract and the relevant legal provisions. If the performance obligation is fulfilled
within a certain period of time, the Company recognizes revenue in accordance with the progress of performance.
Otherwise, the Company recognizes revenue at a point in time when the customer obtains control of the
underlying asset.
The Company determines whether the Company's status is that of a principal or agent when engaging in a
transaction based on whether it has control over the goods or services prior to transferring them to the customer. If
the Company is able to control the goods or services before transferring them to the customer, the Company is the
principal responsible party and recognizes revenue based on the total consideration received or receivable.
Otherwise, the Company shall recognize revenue as an agent based on the amount of commissions or fees to
which it is expected to be entitled, which shall be determined at the net amount of the total consideration received
or receivable less the price payable to other related parties, or at the established commission amount or percentage,
etc.
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Specific principles and measurement methods for revenue recognition by business type: The Company recognizes
revenue from general lighting products, LED packaging and component products, automotive lamp products,
trading and other products as follows:
(1) Recognition of domestic sales revenue: Under the conventional settlement mode, 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;
under the consignment sales settlement mode, the Company recognizes sales revenue when the product is issued
and the settlement notice is issued after the customer inspection is qualified.
(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; products have been loaded on board; 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.
Different business models for the same type of business involving different revenue recognition and measurement
methods：None.
38. Contract Costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to fulfil a
contract with a customer. Incremental costs of obtaining a contract ("contract acquisition costs") are costs that
won't have been incurred if the contract is not acquired. The Company recognizes as an asset the incremental costs
of obtaining a contract with a customer if it expects to recover those costs.
Costs incurred for the performance of a contract that do not fall within the scope of other enterprise accounting
standards, such as inventory, are recognized as an asset as contract performance costs when the following
conditions are simultaneously met: The cost is directly related to a current or anticipated acquisition of a contract
and includes direct labour, direct materials, manufacturing overhead (or similar costs), costs explicitly attributable
to the user, and other costs incurred solely as a result of that contract; the cost increases the resources available to
meet future performance obligations; and the cost is expected to be recovered.
Contract performance costs recognized as assets are included in "Inventory" on the balance sheet if the
amortization period at the initial recognition doesn't exceed one year or one normal operating cycle; if the
amortization period at the initial recognition is more than one year or one normal operating cycle, they are
included in "Other non-current assets" on the balance sheet.
Contract acquisition cost recognized as assets are included in "Other current assets" on the balance sheet if the
amortization period at the initial recognition doesn't exceed one year or one normal operating cycle; if the
amortization period at the initial recognition is more than one year or one normal operating cycle, they are
included in "Other non-current assets" on the balance sheet.
The Company amortizes the assets recognized for contract acquisition costs and contract performance costs on the
same basis as the revenue recognition of the merchandise to which the assets relate, and recognizes them in profit
or loss for the current period. Assets formed from the incremental cost of acquiring a contract with an
amortization period of not more than one year are recognized in profit or loss for the current period when it occurs.
If the carrying amount of an asset related to the cost of a contract exceeds the difference between the following
two items, the Company makes an allowance for impairment and recognizes an asset impairment loss for the
excess: the remaining consideration expected to be received for the transfer of the merchandise to which the asset
relates; and the estimated costs to be incurred for the transfer of the related merchandise.
If the two differences above are higher than the book value of the assets due to the subsequent changes in the
impairment factors in previous periods, the asset impairment provisions set aside should be reversed and
recognized as profit and loss of the current period. However, upon the reversal, the book value of the assets shall
not exceed the book value of the assets on the reversal date, supposing that impairment provisions are not set aside.
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39. Government Subsidies
1. Category of and accounting treatment for government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from the
government (excluding the capital invested by the government as an equity holder). 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 when the fair
value cannot be obtained reliably.
Government subsidies related to the daily activities are included in other income in accordance with the nature of
economic business. Government subsidies unrelated to the daily activities are included in non-operating revenue.
Government subsidies are recognized as asset-related subsidies when stipulated by government documents to be
used for acquisition, construction or otherwise formation long-term assets. Government subsidies without subsidy
object specified by the government document shall be recognized as asset-related subsidies.
Government subsidies other than asset-related government subsidies are recognized as government subsidies
related to income. Government subsidies related to income 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 cost, expenses or losses; subsidies used to
compensate the relevant costs, expenses or losses incurred by the Company shall be directly included in the
current profits and losses.
2. Recognition time of government subsidies
Government subsidies shall be recognized when the Company satisfies the conditions attached to the government
subsidies and is able to receive them. Government subsidies measured according to the receivable amount shall be
recognized when there is positive evidence at the end of the period that they can meet the relevant conditions
stipulated by the financial support policies and are expected to receive financial support funds. Other government
subsidies other than government subsidies measured by amount receivable are recognized when the Company
actually receives the subsidies.
40. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. Recognition of deferred income tax
The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordance with the
applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the different
amount between the book value of assets or liabilities and its tax base (for items not recognized as assets and
liabilities, if its tax basis can be determined according to the tax law, the tax basis is recognized as the different
amount).
2. Measurement of deferred income tax
The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset the
deductible temporary differences. On the balance sheet date, deferred income tax assets without recognition
during the former accounting period shall be recognized if there are definite indications representing that it is
probable to have sufficient taxable income to offset the deductible temporary differences during the future period.
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.
For taxable temporary differences related to the investment in subsidiaries and associated enterprises, the deferred
income tax liabilities are recognized unless the time of temporary differences reversal can be controlled by the
Company and are probably not to be reversed in foreseeable future. For deductible temporary differences related
to the investment in subsidiaries and associated enterprises, the deferred income tax assets are recognized if the
temporary differences are probably to be reversed in foreseeable future and it is likely to have taxable income to
offset the deductible temporary differences.
3. Basis for netting off deferred income taxes
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Deferred income tax assets and deferred income tax liabilities are presented in net amount after offsetting when
the following conditions are simultaneously met: there is a legal right to settle current income tax assets and
current income tax liabilities on a net basis; the deferred income tax assets and deferred income tax liabilities are
related to income taxes levied by the same tax authority on the same taxable entity or are related to different
taxable entities, but are not expected to reverse in the future in each of the periods in which the deferred income
tax assets and deferred income tax liabilities are material; and the taxable entities involved intend to settle current
income tax assets and current income tax liabilities on a net basis. However, in each future period in which the
deferred tax assets and deferred tax liabilities are reversed, the taxable entity involved intends to either settle the
current income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle the
liabilities at the same time.
41. Lease
The Company assesses whether a contract is a lease or contains a lease at the inception date of the contract. A
contract is a lease or contains a lease if one of the parties to the contract has given up the right to control the use of
one or more identified assets for a specified period of time in exchange for consideration.
(1) Accounting treatment for leases as the lessee
1. On the start date of the lease term, the Company deems the right-of-use assets and lease liabilities of all the
operating leases except for the short-term leases and low-value leases, and recognizes the depreciation expense
and interest expense respectively within the lease term.
(1) Right-of-use assets
After the commencement date of the lease term, the Group uses the cost for initial measurement of right-of-use
assets. This cost includes the initial measurement amount of the lease liability, lease payments made on or before
the commencement date of the lease term net of lease incentives, and initial direct cost.
If it is reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term,
the Company will depreciate the leasehold property over its estimated remaining service life. If it is not
reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term, the
Company will depreciate the leased assets over the lease term or the remaining service life, whichever is shorter.
When the recoverable amount is less than the carrying amount of the right-of-use asset, the carrying amount is
written down to the recoverable amount.
(2) Lease liabilities
The Company initially measures the lease liabilities at the current value of the lease payments outstanding at the
start date of the lease term. Lease payments include fixed payments and payments that are reasonably certain to be
made when the option to purchase or terminate the lease is exercised. Variable lease payments that are not
covered in the measurement of the lease liabilities are included in current profit or loss when actually incurred.
The Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease
cannot be reasonably determined, the Company's incremental borrowing rate is used as the rate of discount.
Interest expense on the lease liability for each period during the lease term is calculated on the basis of a fixed
periodic rate, i.e., the discount rate used by the Company or a revised discount rate, and is included in finance
costs.
2. Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as a lessee for
simplified treatment
For short-term leases with a lease term of no exceeding 12 months and leases where the brand-new value of a
single asset is less than RMB40,000, the Company has elected not to recognize right-of-use assets and lease
liabilities, and to charge the related rental expenses to current profit or loss or the cost of the related assets on a
straight-line basis for each period during the lease term.
(2) Accounting treatment of leases as the lessor
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The Company recognizes leases that transfer substantially all the risks and rewards associated with ownership of
the leased asset as finance leases at the inception of the lease, and leases other than these are classified as
operating leases.
(1) Accounting treatment of operating leases
Rental income from operating leases is recognized on a straight-line basis over the lease term. Initial direct
expenses are capitalized and recognized as current income in instalments over the lease term on the same
recognition basis as rental income, and variable rentals not included in lease receipts are recognized as rental
income when they are actually incurred.
(2) Accounting treatment of financial lease
On the inception of a lease, the difference between the sum of finance lease receivable and unguaranteed residual
value and its present value is recognized as unrealised lease income by the Company, which is recognized as lease
income in each period when the rent is received in the future and the finance lease asset is derecognized. Initial
direct costs are included in the initial recorded value of the finance lease receivable.
42. Other Significant Accounting Policies and Estimates
(1) Safety production expenses
Operating in the electrical machinery and equipment manufacturing industry, the Company has accrued safety
production expenses in accordance with the relevant provisions of the Management Measures for the Provision
and Use of Enterprise Production Safety Costs (C.Z. [2022] No. 136) jointly issued by the Ministry of Finance
and the Ministry of Emergency Management on 21 November 2022. Safety production expenses, when accrued,
are included in costs or current profit or loss of relevant products and in the "Special Reserve" account. When
safety production expenses are used within the prescribed scope and are operating expenses, they are directly used
to offset the special reserves. If they form fixed assets, the expenses incurred are first aggregated under the
"Construction in Progress" account, and when the safety projects are completed and reach the predetermined
usable state, they are recognised as fixed assets. Meanwhile, the special reserves are offset as per the cost of
forming fixed assets, and an equivalent amount of accumulated depreciation is recognised. The aforesaid fixed
assets will not be depreciated as accrued in the future period.
43. Changes in Main Accounting Policies and Estimates
(1) Change in accounting policies
Applicable □ Not applicable
Unit: RMB
Name of statement item
Changes to the accounting policies and why Amount affected
materially affected
The Interpretation No. 17 of the Accounting Standards for Business
Enterprises (C.K. [2023] No. 21) issued by the Ministry of Finance on 25
October 2023 stipulates contents about “Classification of Current
No impact 0.00
Liabilities and Non-current Liabilities”, “Disclosure of Financing
Arrangement of Suppliers” and “Accounting Treatment for Sale-leaseback
Transactions”, which shall be implemented since 1 January 2024.
(2) Changes in accounting estimates
□Applicable Not applicable
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the New
Accounting Standards Implemented since 2024
□Applicable Not applicable
44. Other
None
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or
VAT 3%, 6%, 9%, 13%
taxable service
Urban maintenance and construction tax Turnover tax payable 7%, 5%
Enterprise income tax Taxable income 11%, 15%, 25%
Education surcharge 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, Chanchang Company,
Haolaite Company, Nanning Liaowang, Chongqing Guinuo,
Liuzhou Lighting, Liuzhou Foreshine, Qingdao Lighting, 15%
NationStar Optoelectronics, NationStar Semiconductor,
Germany NationStar, Fenghua Semiconductor
Indonesia Liaowang 11%
Other subsidiaries 25%
2. Tax Preference
1. The Company passed the review of high-tech enterprises in 2023 and obtained the certificate of high-tech
enterprise (Certificate No. GR202344003659) approved by the Guangdong Provincial Department of Science and
Technology, the Department of Finance of Guangdong Province, and the Guangdong Provincial Tax Service of
State Taxation Administration. According to relevant regulations, the Company is entitled to a reduced enterprise
income tax rate of 15% for three years starting from 2023.
2. Subsidiary Zhida Company passed the review of high-tech enterprises in December 2022 and obtained the
certificate of high-tech enterprise (Certificate No.: GR202244009711) approved by the Guangdong Provincial
Department of Science and Technology, the Department of Finance of Guangdong Province, and the Guangdong
Provincial Tax Service of State Taxation Administration. According to the relevant regulations, Zhida Company is
entitled to a reduced enterprise income tax rate of 15% for three years starting from 2022.
3. Subsidiary Chanchang Company passed the audit of high-tech enterprises in December 2021 and obtained the
certificate of high-tech enterprise (Certificate No.: GR202144000342) approved by the Guangdong Provincial
Department of Science and Technology, the Department of Finance of Guangdong Province, and the Guangdong
Provincial Tax Service of State Taxation Administration. According to the relevant regulations, Chanchang
Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2021. In
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
accordance with the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China,
Chanchang Company shall prepay the enterprise income tax for fiscal year 2024 at a tax rate of 15%.
4. Subsidiary Haolaite Company passed the review of high-tech enterprises in 2022 and obtained the certificate of
high-tech enterprise (Certificate No. GR202244003711) approved by the Guangdong Provincial Department of
Science and Technology, the Department of Finance of Guangdong Province, and the Guangdong Provincial Tax
Service of State Taxation Administration. According to relevant regulations, Haolaite Company is entitled to a
reduced enterprise income tax rate of 15% for three years starting from 2022.
5. Subsidiary Nanning Liaowang passed the review of high-tech enterprises in 2023 and obtained the certificate of
high-tech enterprise (Certificate No. GR202345001098) approved by the Science and Technology Department of
the Guangxi Zhuang Autonomous Region, the Department of Finance of Guangxi Zhuang Autonomous Region,
and the Guangxi Zhuang Autonomous Region Tax Service of State Taxation Administration. According to
relevant regulations, Nanning Liaowang is entitled to a reduced enterprise income tax rate of 15% for three years
starting from 2023.
6. Chongqing Guinuo, a wholly-owned subsidiary of Nanning Liaowang, enjoys the tax incentives of reducing
and exempting enterprise income tax for the development of western China since 1 January 2019, and is entitled
to a reduced enterprise income tax rate of 15% after examination by and filing with the tax authorities.
7. Liuzhou Lighting, a wholly-owned subsidiary of Nanning Liaowang, passed the review of high-tech enterprise
in 2022 and obtained the certificate of high-tech enterprise (Certificate No.: GR202245001221). According to
relevant regulations, Liuzhou Lighting will pay enterprise income tax at a reduced rate of 15% for three years
starting from 2022.
8. Liuzhou Fuxuan, a wholly-owned subsidiary of Nanning Liaowang, passed the review of high-tech enterprise in
November 2021 and obtained the certificate of high-tech enterprise (Certificate No.: GR202145001045) approved
by the Science and Technology Department of the Guangxi Zhuang Autonomous Region, the Department of
Finance of Guangxi Zhuang Autonomous Region, and the Guangxi Zhuang Autonomous Region Tax Service of
State Taxation Administration. According to relevant regulations, Liuzhou Fuxuan will pay enterprise income tax
at a reduced rate of 15% for three years starting from 2021. In accordance with the relevant provisions of the
Enterprise Income Tax Law of the People's Republic of China, Liuzhou Fuxuan shall prepay the enterprise income
tax for fiscal year 2024 at a tax rate of 15%.
9. Qingdao Lighting, a wholly-owned subsidiary of Nanning Liaowang, passed the review of high-tech enterprise
on 14 December 2022 and obtained the certificate of high-tech enterprise (Certificate No.: GR202237100785)
approved by the Qingdao Municipal Science and Technology Bureau, the Qingdao Municipal Finance Bureau,
and the Qingdao Municipal Tax Service of State Taxation Administration. According to relevant regulations,
Qingdao Optoelectronics will pay enterprise income tax at a reduced rate of 15% for three years starting from
2022.
10. Subsidiary NationStar Optoelectronics was recognized as a high-tech enterprise on 16 December 2008, and its
certificate number was GR200844000097. It was re-recognized as a high-tech enterprise in 2023, and its new
certificate number is GR202344017343. According to relevant regulations, NationStar Optoelectronics will pay
enterprise income tax at a reduced rate of 15% for three years starting from 2023.
11. NationStar Semiconductor, a wholly-owned subsidiary of NationStar Optoelectronics, was recognized as a
high-tech enterprise on 10 October 2015, and its certificate number was GR201544001238. It was re-recognized
as a high-tech enterprise in 2021, and its new certificate number is GR202144008779. According to relevant
regulations, NationStar Semiconductor will pay enterprise income tax at a reduced rate of 15% for three years
starting from 2021. In accordance with the relevant provisions of the Enterprise Income Tax Law of the People's
Republic of China, NationStar Semiconductor shall prepay the enterprise income tax for fiscal year 2024 at a tax
126
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
rate of 15%.
12. Fenghua Semiconductor, a majority-owned subsidiary of NationStar Optoelectronics, was recognized as a
high-tech enterprise on 16 December 2008, and its certificate number was GR200844000295. It was re-recognized
as a high-tech enterprise in 2021, and its new certificate number is GR202144008851. According to relevant
regulations, Fenghua Semiconductor will pay enterprise income tax at a reduced rate of 15% for three years
starting from 2021. In accordance with the relevant provisions of the Enterprise Income Tax Law of the People's
Republic of China, Fenghua Semiconductor shall prepay the enterprise income tax for fiscal year 2024 at a tax
rate of 15%.
13. Indonesia Liaowang, a wholly-owned subsidiary of Nanning Liaowang, is located in the country where
Indonesia's statutory corporate income tax rate is 22%, and there are local incentives for medium, small and micro
enterprises to reduce or waive income tax by 50%, therefore, Indonesia Liaowang is subject to a preferential tax
rate of 11% for the payment of enterprise income tax.
3. Other
Pay in accordance with the relevant provisions 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 41,943.58 42,466.76
Bank deposits 1,335,829,321.44 1,942,320,219.96
Other monetary assets (Note 1) 498,287,775.41 466,064,741.94
Deposits placed with finance companies
1,345,958,937.00 1,179,154,268.07
(Note 2)
To-be-received interest (Note 3) 11,490,996.27 8,467,957.82
Total 3,191,608,973.70 3,596,049,654.55
Of which: Total amount deposited
30,746,333.12 31,405,378.56
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 “31. Assets with Restricted Ownership or Right of Use” in
Note “VII Notes to Consolidate Financial Statements”).
Note 2: Deposits placed with finance companies refer to the amount deposited with Guangdong Rising Finance
Co., Ltd.
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Note 3: To-be-received interest was interest receivable on undue bank deposits and term deposits as of the end
of the Reporting Period, which is not recognised as cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through
106,928,328.01 152,529,775.41
profit or loss
Of which:
Wealth management products 105,825,131.94 151,550,477.63
Equity instrument investments 1,003,796.07 979,297.78
Others 99,400.00
Total 106,928,328.01 152,529,775.41
Other notes:
Naught.
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 882,662,892.04 984,928,441.40
Commercial acceptance bill 85,473,075.40 72,423,826.20
Total 968,135,967.44 1,057,352,267.60
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Notes
receivable 969,88 1,058,
1,744, 968,135 1,478,0 1,057,35
withdrawn bad 0,315. 100.00% 0.18% 830,30 100.00% 0.14%
348.47 ,967.44 37.27 2,267.60
debt provision 91 4.87
by group
Of which:
Bank 882,66 882,662 984,92 984,928,
91.01% 0.00 0.00% 93.02% 0.00 0.00%
acceptance bill 2,892. ,892.04 8,441. 441.40
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
04 40
87,217 73,901
Commercial 1,744, 85,473, 1,478,0 72,423,8
,423.8 8.99% 2.00% ,863.4 6.98% 2.00%
acceptance bill 348.47 075.40 37.27 26.20
7 7
969,88 1,058,
1,744, 968,135 1,478,0 1,057,35
Total 0,315. 100.00% 0.18% 830,30 100.00% 0.14%
348.47 ,967.44 37.27 2,267.60
91 4.87
Withdrawal of bad debt provision by group: RMB1,744,348.47 of bad debt provision by bank acceptance bill.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within one year 87,217,423.87 1,744,348.47 2.00%
Total 87,217,423.87 1,744,348.47
Notes:
Please refer to Note V-13. Accounts Receivable for details.
If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□Applicable Not applicable
(3) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawn Write-off Others
recovery
Commercial
1,478,037.27 266,311.20 1,744,348.47
acceptance bill
Total 1,478,037.27 266,311.20 1,744,348.47
Of which, bad debt provision collected or reversed with significant amount:
□Applicable Not applicable
(4) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount pledged at the period-end
Bank acceptance bill 609,340,614.44
Total 609,340,614.44
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(5) 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 214,209,835.91 141,027,788.82
Total 214,209,835.91 141,027,788.82
(6) Notes Receivable with Actual Verification for the Reporting Period
Naught
5. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Ageing Ending carrying balance Beginning carrying balance
Within one year (including one year) 2,300,520,301.54 1,944,758,964.52
One to two years 155,076,064.08 151,569,005.90
Two to three years 118,368,497.46 99,249,444.34
Over three years 58,543,775.35 40,389,042.02
Three to four years 24,878,664.34 9,919,239.39
Four to five years 5,320,094.97 7,074,054.82
Over five years 28,345,016.04 23,395,747.81
Total 2,632,508,638.43 2,235,966,456.78
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
85,206 50,838
which bad debt 34,368, 25,780, 21,977, 3,802,4
,971.6 3.24% ,105.5 59.66% 1.15% 85.25%
provision 866.08 344.44 900.85 43.59
3 5
accrued
separately
Of which:
Accounts
receivable 2,547, 128,99 2,418,3 2,210,1 2,089,6
120,489
withdrawal of 301,66 96.76% 8,163. 5.06% 03,502. 86,112. 98.85% 5.45% 96,836.
,275.53
bad debt 6.80 97 83 34 81
provision by
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
portfolio
Of which:
(1) Business
1,862, 114,58 1,747,6 1,698,4 1,588,8
portfolio of 109,583
285,38 70.74% 6,762. 6.15% 98,620. 28,474. 75.96% 6.45% 44,852.
general lighting ,622.27
2.77 69 08 56 29
and auto lamps
(2) Business
portfolio of 685,01 14,411
670,604 511,757 10,905, 500,851
LED packaging 6,284. 26.02% ,401.2 2.10% 22.89% 2.13%
,882.75 ,637.78 653.26 ,984.52
and 03 8
components
2,632, 179,83 2,452,6 2,235,9 2,093,4
142,467
Total 508,63 100.00% 6,269. 6.83% 72,368. 66,456. 100.00% 6.37% 99,280.
,176.38
8.43 52 91 78 40
Category name of bad debt provision accrued by item: Bad debt provision accrued by item of RMB50,838,105.55.
There is no significant individual provision for bad debts for accounts receivable in the current period.
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB114,586,762.69 for the portfolio of general
lighting and auto lamps; Withdrawal of bad debt provision of RMB14,411,401.28 for the portfolio of LED packaging and
component business.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
(1) Business portfolio of general
1,862,285,382.77 114,586,762.69 6.15%
lighting and auto lamps
(2) Business portfolio of LED
685,016,284.03 14,411,401.28 2.10%
packaging and components
Total 2,547,301,666.80 128,998,163.97
Notes:
Please refer to Note V-13. Accounts Receivable for details.
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable Not applicable
(3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Write-off for
Beginning the previous
Category Reversal Ending balance
balance period and Write-
Withdrawal or Others
transferred- off
recovery
back for the
current
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
period
Accounts receivable
for which bad debt
21,977,900.85 28,734,766.44 6,138.00 50,838,105.55
provision accrued 131,576.26
separately
Accounts receivable
withdrawal of bad
120,489,275.53 8,508,917.49 29.05 128,998,163.97
debt provision by
portfolio
Total 142,467,176.38 37,243,683.93 6,138.00 29.05 179,836,269.52
131,576.26
Of which, bad debt provision collected or reversed with significant amount: Naught.
The amount of expected credit losses accrued in the current period was RMB37,243,683.93, the amount of prior
period write-offs reversed in the current period was RMB131,576.26, the amount of expected credit losses
recovered or reversed in the current period was RMB6,138.00, the amount of expected credit losses written off
in the current period was RMB29.05, which is RMB5,839.52 different from the amount of credit impairment
loss accrued in the current period of RMB37,243,385.45, which is due to the difference in translation of foreign
currency statements at the end of the period.
(4) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount verified
Accounts receivable with actual verification 29.05
Of which, verification of significant accounts receivable: Naught.
Notes to verification of accounts receivable:
The amount of accounts receivable written off in the current period was RMB29.05, and the bad debt provision
was RMB29.05. The approval procedure was performed in accordance with provisions of the bad debt
management system of the Company.
(5) Top Five Accounts Receivable and Contract Assets in Ending Balance Collected According to the
Arrears Party
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Ending balance of
Ending balance of ending balance of of accounts
Ending balance of accounts
Name of the entity accounts accounts receivable and
contract assets receivable and
receivable receivable and impairment
contract assets
contract assets provision for
contract assets
No. 1 173,240,516.01 173,240,516.01 6.57% 5,197,215.48
No. 2 136,060,695.38 136,060,695.38 5.16% 4,081,820.86
No. 3 132,880,329.94 132,880,329.94 5.04% 3,986,409.90
No. 4 126,697,107.97 126,697,107.97 4.81% 3,803,407.33
No. 5 86,002,105.06 86,002,105.06 3.26% 2,656,192.76
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance of
Proportion to total bad debt provision
Ending balance of
Ending balance of ending balance of of accounts
Ending balance of accounts
Name of the entity accounts accounts receivable and
contract assets receivable and
receivable receivable and impairment
contract assets
contract assets provision for
contract assets
Total 654,880,754.36 654,880,754.36 24.84% 19,725,046.33
6. Contract Assets
(1) List of Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Bad debt Carrying Bad debt
Carrying value Carrying value
amount provision amount provision
Contract assets 3,380,043.90 1,014,013.17 2,366,030.73 6,074,305.63 1,822,291.69 4,252,013.94
Total 3,380,043.90 1,014,013.17 2,366,030.73 6,074,305.63 1,822,291.69 4,252,013.94
(2) Significant Changes in the Amount of Carrying Value and the Reason in the Reporting Period
There was no significant change in the book value during the Reporting Period.
(3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Withdrawal
of bad debt 3,380,0 1,014, 2,366,0 6,074,3 1,822,29 4,252,0
100.00% 30.00% 100.00% 30.00%
provision by 43.90 013.17 30.73 05.63 1.69 13.94
group
Of
Of which:
which:
Business
portfolio of
3,380,0 1,014, 2,366,0 6,074,3 1,822,29 4,252,0
general 100.00% 30.00% 100.00% 30.00%
43.90 013.17 30.73 05.63 1.69 13.94
lighting and
auto lamps
3,380,0 1,014, 2,366,0 6,074,3 1,822,29 4,252,0
Total 100.00% 30.00% 100.00% 30.00%
43.90 013.17 30.73 05.63 1.69 13.94
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB1,014,013.17 for the portfolio of general
lighting and auto lamps.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Business portfolio of general 3,380,043.90 1,014,013.17 30.00%
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
lighting and auto lamps
Total 3,380,043.90 1,014,013.17
Notes:
Please refer to Note V-16. Contract Assets
Withdrawal of bad debt provision by adopting the general mode of expected credit loss
□Applicable Not applicable
(4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Unit: RMB
Withdrawal of the Reversal or recovery in
Item Verification Reason
Current Period the Reporting Period
Provision for impairment
808,278.52
of contract assets
Total 808,278.52
Of which, bad debt provision collected or reversed with significant amount: Naught.
(5) Contract Assets Written-off in Current Period
Naught.
7. Accounts Receivable Financing
(1) Accounts Receivable Financing Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 296,834,332.74 443,201,960.02
Total 296,834,332.74 443,201,960.02
(2) Disclosure by Withdrawal Methods for Bad Debts
Naught.
The basis for the division of each phase and the withdrawal proportion of bad debt provision
Please refer to Note V-13. Accounts Receivable for details.
Explanation of significant changes in the accounts receivable financing book balance with changes in loss
reserves in the current period: Naught
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
(4) Accounts Receivable Financing Pledged by the Company at the Period-end
Unit: RMB
Item Amount pledged at the period-end
Bank acceptance bill 31,596,200.00
Total 31,596,200.00
(5) Accounts Receivable Financing 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 288,485,094.80
Total 288,485,094.80
(6) Accounts Receivable Financing with Actual Verification for the Current Period
Naught.
(7) The Changes of Accounts Receivable Financing in the Reporting Period and the Changes in Fair
Value
Naught.
(8) Other Notes
Naught.
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 57,278,936.88 49,108,300.85
Total 57,278,936.88 49,108,300.85
(1) Interest Receivable
1) Category of Interest Receivable
Naught
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
2) Significant Overdue Interest
Naught
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
5) Interests Receivable Written-off in Current Period
Naught.
(2) Dividends Receivable
1) Category of Dividends Receivable
Naught.
2) Significant Dividends Receivable Aged over One Year
Naught.
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
5) Dividends Receivable with Actual Verification during the Reporting Period
Naught.
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying balance Beginning carrying balance
Other intercourse 59,879,773.01 65,389,794.88
Performance bond 30,112,547.74 17,686,774.68
VAT export tax refunds 5,905,055.39 4,708,061.84
Staff borrow and petty cash 2,054,163.39 1,589,234.30
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Nature Ending carrying balance Beginning carrying balance
Rent, water & electricity fees 1,116,434.75 817,043.94
Total 99,067,974.28 90,190,909.64
2) Disclosure by Aging
Unit: RMB
Ageing Ending carrying balance Beginning carrying balance
Within one year (including one year) 55,131,877.28 46,054,067.53
One to two years 7,593,228.99 7,676,026.75
Two to three years 1,578,581.30 2,219,050.74
Over three years 34,764,286.71 34,241,764.62
Three to four years 6,180,482.37 5,990,920.12
Four to five years 3,620,295.50 4,583,526.14
Over five years 24,963,508.84 23,667,318.36
Total 99,067,974.28 90,190,909.64
3) Disclosure by Withdrawal Methods for Bad Debts
Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Bad debt
provision 31,541, 31,541,2 31,541,2 31,541,2
31.84% 100.00% 0.00 34.97% 100.00% 0.00
separately 239.47 39.47 39.47 39.47
accrued
Of which:
Withdrawal of
bad debt 67,526, 10,247,7 57,278,9 58,649,6 9,541,36 49,108,3
68.16% 15.18% 65.03% 16.27%
provision by 734.81 97.93 36.88 70.17 9.32 00.85
group
Of which:
Other
receivables of
bad debt
provision 67,526, 10,247,7 57,278,9 58,649,6 9,541,36 49,108,3
68.16% 15.18% 65.03% 16.27%
withdrawn by 734.81 97.93 36.88 70.17 9.32 00.85
credit risk
characteristic
portfolio:
99,067, 41,789,0 57,278,9 90,190,9 41,082,6 49,108,3
Total 100.00% 42.18% 100.00% 45.55%
974.28 37.40 36.88 09.64 08.79 00.85
Category name of bad debt provision accrued by item: Bad debt provision accrued by item of RMB31,541,239.47.
Unit: RMB
Name Beginning balance Ending balance
137
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Carrying Provision for Carrying Bad debt Withdrawal Reason for
amount impairment amount provision proportion withdrawal
Less likely to
Customer A 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00 100.00%
be recovered
Total 20,000,000.00 20,000,000.00 20,000,000.00 20,000,000.00
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB10,247,797.93 based on credit risk
characteristic portfolio
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Other receivables of bad debt
provision withdrawn by credit 67,526,734.81 10,247,797.93 15.18%
risk characteristic portfolio:
Total 67,526,734.81 10,247,797.93
Notes:
Please refer to Note V-13. Accounts Receivable for details.
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
Phase I Phase II Phase III
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss of duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
1,342,723.92 7,982,242.94 31,757,641.93 41,082,608.79
2024
Balance of 1 January
2024 in the Current
Period
Withdrawal of the
253,833.88 502,594.73 756,428.61
Current Period
Amount written-off for
50,000.00 50,000.00
the current period
Balance of 30 June
1,596,557.80 8,484,837.67 31,707,641.93 41,789,037.40
2024
The basis for the division of each phase and the withdrawal proportion of bad debt provision
Please refer to Note V-13. Accounts Receivable for details.
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Category Beginning Changes in the Reporting Period Ending balance
138
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
balance Reversal or Charged-
Withdrawal Others
recovery off/Written-off
Other 41,082,608.7 41,789,037.4
756,428.61 50,000.00
receivables 9 0
41,082,608.7 41,789,037.4
Total 756,428.61 50,000.00
9 0
The amount of expected credit losses accrued during the current period was RMB756,428.61, the amount of
expected credit losses recovered or reversed during the current period was RMB0.00, and the amount of
expected credit losses verified during the current period was RMB50,000.00, which was RMB4,683.32 different
from the amount of expected credit losses on other receivables accrued during the current period of
RMB761,111.93, which was due to the difference in translation of foreign currency statements at the end of the
current period.
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Naught.
5) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount verified
Customer A 50,000.00
Of which the verification of significant other receivables: Naught.
6) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Ageing
other receivables bad debt provision
(%)
No. 1 Other intercourse 20,000,000.00 Over five years 20.19% 20,000,000.00
No. 2 Other intercourse 15,883,375.00 Within one year 16.03% 476,501.25
No. 3 Performance bond 10,000,000.00 Within one year 10.09% 300,000.00
VAT export tax
No. 4 5,905,055.39 Within one year 5.96% 177,151.66
refunds
No. 5 Other intercourse 5,000,000.00 One to two years 5.05% 5,000,000.00
Total 56,788,430.39 57.32% 25,953,652.91
7) Presentation in Other Receivables Due to the Centralised Management of Fund
Naught.
9. Prepayments
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Ageing
Amount Proportion Amount Proportion
139
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Ageing
Amount Proportion Amount Proportion
Within one year 48,852,140.71 87.26% 27,750,424.91 80.42%
One to two years 3,253,316.42 5.81% 3,496,897.72 10.13%
Two to three years 1,227,273.96 2.19% 665,594.01 1.93%
Over three years 2,651,828.46 4.74% 2,595,722.28 7.52%
Total 55,984,559.55 34,508,638.92
Notes of the reasons of the prepayment aging over one year with significant amount but failed settled in time:
Naught.
(2) Top Five of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Relationship with the Proportion to total
Name of the entity Ending balance Ageing
Company prepayments (%)
No. 1 Unrelated party 8,406,000.00 Within one year 15.01%
No. 2 Unrelated party 4,791,920.00 Within one year 8.56%
No. 3 Unrelated party 3,997,613.78 Within one year 7.14%
No. 4 Unrelated party 2,772,000.00 Within one year 4.95%
No. 5 Unrelated party 1,990,400.00 Within one year 3.56%
Total 21,957,933.78 39.22%
Other notes: Naught.
10. 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 depreciation depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves of reserves of
contract contract
performance performance
cost cost
Raw materials 344,053,149.04 15,495,808.86 328,557,340.18 305,927,108.28 13,862,774.27 292,064,334.01
Goods in process 205,009,533.55 205,009,533.55 247,880,117.38 247,880,117.38
Inventory goods 958,249,713.55 172,754,438.69 785,495,274.86 1,051,891,889.47 146,951,222.27 904,940,667.20
Goods in transit 277,403,732.59 3,513,495.97 273,890,236.62 425,003,429.61 9,197,980.38 415,805,449.23
Semi-finished
96,587,205.46 4,911,245.36 91,675,960.10 96,957,960.11 4,480,118.25 92,477,841.86
goods
Low-value
1,916,139.64 1,916,139.64 1,322,185.78 1,322,185.78
consumables
140
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Falling price Falling price
reserves of reserves of
inventory or inventory or
Item depreciation depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves of reserves of
contract contract
performance performance
cost cost
Others 26,957,062.88 26,957,062.88 16,681,045.68 16,681,045.68
Total 1,910,176,536.71 196,674,988.88 1,713,501,547.83 2,145,663,736.31 174,492,095.17 1,971,171,641.14
(2) Data Resources Recognised as Inventory
Naught.
(3) Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Others Others
write-off
Raw materials 13,862,774.27 3,185,716.44 1,552,681.85 15,495,808.86
Inventory
146,951,222.27 30,846,707.82 5,043,491.40 172,754,438.69
goods
Goods in transit 9,197,980.38 388,014.16 6,072,498.57 3,513,495.97
Semi-finished
4,480,118.25 1,324,501.82 893,374.71 4,911,245.36
goods
Total 174,492,095.17 35,744,940.24 13,562,046.53 196,674,988.88
Provision for depreciation in value of inventories by portfolio: Naught.
Provision standards for depreciation in value of inventories by group
Please refer to Note V-17. Inventory.
(4) Notes to the Ending Balance of Inventories Including Capitalised Borrowing Expense
Naught
(5) Amortisation Amount of Contract Performance Cost during the Reporting Period
Naught
11. Held-for-Sale Assets
Unit: RMB
Ending Estimated
Depreciation Ending Estimated
Item carrying Fair value disposal
reserves carrying value disposal time
balance expense
141
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Houses,
buildings and 31 December
17,147,339.84 17,147,339.84 183,855,895.00 55,718,333.95
land involved 2024
in expropriation
Total 17,147,339.84 17,147,339.84 183,855,895.00 55,718,333.95
Other notes:
Note: For details, see Part X-XVIII. Other Major Events-8. Other: “Demolition Matters of Nanjing Fozhao” of
this Report. The estimated disposal costs include employee resettlement fees, compensation for the termination
of the original tenant’s contract, and taxes related to the proceeds of demolition.
12. Current Portion of Non-current Assets
Naught.
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Term deposits (note) 108,700,000.00 700,000.00
Input tax of VAT to be certified and deducted 79,617,000.29 94,451,130.80
Advance payment of enterprise income tax 4,381,508.30 11,454,058.94
Others 3,047,161.88 2,687,209.40
Total 195,745,670.47 109,292,399.14
Other notes:
Note: This is a fixed deposit with a term not exceeding one year from the date of purchase.
14. Investments in Debt Obligations
Naught
15. Other Investments in Debt Obligations
(1) List of Other Investments in Debt Obligations
Unit: RMB
Accumulated
Change in impairment
fair value Accumulated provision
Beginning Accrued Interest Ending
Item in the Cost changes in recognised in Note
balance interest adjustment balance
Reporting fair value other
Period comprehensive
income
Purchase held- Large
to-maturity 454,822,90 6,714,288. 411,537,19 400,000,0 deposit
investments in 5.25 43 3.68 00.00 certificate
2023 of a bank
Purchase held- 5,961,545. 712,961,54 707,000,0 Large
142
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Accumulated
Change in impairment
fair value Accumulated provision
Beginning Accrued Interest Ending
Item in the Cost changes in recognised in Note
balance interest adjustment balance
Reporting fair value other
Period comprehensive
income
to-maturity 26 5.26 00.00 deposit
investments in certificate
2024 of a bank
454,822,90 12,675,833 1,124,498, 1,107,000
Total
5.25 .69 738.94 ,000.00
Changes in the impairment provision for other investments in debt obligations during the current period: Naught.
(2) Significant Other Investments in Debt Obligations at the Period-end
Unit: RMB
Ending balance Beginning balance
Item Actual Actual
Coupon Overdue Coupon Overdue
Par value interest Maturity date Par value interest Maturity date
rate principal rate principal
rate rate
Large deposit
100,000, 6 January 100,000, 6 January
certificate of 3.30% 3.30% 3.30% 3.30%
000.00 2026 000.00 2026
Everbright Bank
Large deposit
certificate of 50,000,0 31 August 50,000,0 31 August
2.90% 2.90% 2.90% 2.90%
Bank of 00.00 2026 00.00 2026
Communications
Large deposit
100,000, 3 November 150,000, 3 November
certificate of 2.90% 2.90% 2.90% 2.90%
000.00 2026 000.00 2026
Everbright Bank
Large deposit
certificate of 150,000, 1 December 150,000, 1 December
2.95% 2.95% 2.95% 2.95%
Bank of 000.00 2026 000.00 2026
Guangzhou
Large deposit
certificate of 212,000, 5 February
2.75% 2.75%
Bank of 000.00 2027
Guangzhou
Large deposit
55,000,0 5 February
certificate of 2.60% 2.60%
00.00 2027
Everbright Bank
Large deposit
143,000, 5 February
certificate of 2.60% 2.60%
000.00 2027
Huaxia Bank
Large deposit
certificate of 82,000,0 5 February
2.60% 2.60%
China Merchants 00.00 2027
Bank
Large deposit
150,000, 8 March
certificate of 2.60% 2.60%
000.00 2027
Huaxia Bank
Large deposit 35,000,0 29 March
2.60% 2.60%
certificate of 00.00 2027
143
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Item Actual Actual
Coupon Overdue Coupon Overdue
Par value interest Maturity date Par value interest Maturity date
rate principal rate principal
rate rate
China Merchants
Bank
Large deposit
certificate of 30,000,0 30 April
2.60% 2.60%
China Merchants 00.00 2027
Bank
1,107,00 450,000,
Total
0,000.00 000.00
(3) Status of Accrued Depreciation Reserves
Naught.
The basis for the division of each phase and the withdrawal proportion of bad debt provision
Please refer to Note V-20. Other Debt Investments
(4) Status of Other Investments in Debt Obligations Written-off in Current Period
Naught.
16. Other Equity Instrument Investments
Unit: RMB
Reason for
assigning to
Losses Accumulative Accumulative
Gains recorded Dividend measure in fair
recorded in gains recorded losses recorded
in other income value and the
Beginning other in other in other Ending
Item comprehensive recognised changes
balance comprehensive comprehensive comprehensive balance
income in the in current included in
income in the income in the income in the
current period year other
current period current period current period
comprehensive
income
Equity
Gotion High-tech 368,376,50 1,713,379.1 328,112,09
40,264,408.85 245,097,612.52 instruments not
Co., Ltd. 6.50 0 7.65
held for trading
Equity
Xiamen Bank 290,807,67 17,781,139. 305,720,88
14,913,213.90 152,763,278.12 instruments not
Co.,Ltd. 1.05 65 4.95
held for trading
Guangdong Equity
30,000,000. 30,000,000.
Rising Finance 496,154.24 instruments not
00 00
Co., Ltd. held for trading
Beijing
Guangrong
Lianmeng Equity
7,078,568.8 7,078,568.8
Semiconductor instruments not
0 0
lighting Industry held for trading
Investment
Centre (L.P.)
144
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Reason for
assigning to
Losses Accumulative Accumulative
Gains recorded Dividend measure in fair
recorded in gains recorded losses recorded
in other income value and the
Beginning other in other in other Ending
Item comprehensive recognised changes
balance comprehensive comprehensive comprehensive balance
income in the in current included in
income in the income in the income in the
current period year other
current period current period current period
comprehensive
income
Foshan Nanhai
District United
Guangdong New Equity
3,000,000.0 3,000,000.0
Light Source instruments not
0 0
Industry held for trading
Innovation
Centre
Equity
China Guangfa
500,000.00 500,000.00 instruments not
Bank Co.,Ltd.
held for trading
699,762,74 19,990,672. 674,411,55
Total 14,913,213.90 40,264,408.85 397,860,890.64
6.35 99 1.40
Derecognition in the current period: Naught.
Disclosure of non-trading equity instrument investment by items
Unit: RMB
Amount of other Reason for assigning Reason for other
comprehensive to measure in fair comprehensive
Dividend
Accumulative Accumulative income value and the changes income
Item income
gains losses transferred to included in other transferred to
recognised
retained comprehensive retained
earnings income earnings
Not satisfied with the
Gotion High-tech Co., 1,713,379. 245,097,612
condition of trading Not applicable
Ltd. 10 .52
equity instrument
Not satisfied with the
17,781,139 152,763,278
Xiamen Bank Co.,Ltd. condition of trading Not applicable
.65 .12
equity instrument
Not satisfied with the
Guangdong Rising
496,154.24 644,988.33 condition of trading Not applicable
Finance Co., Ltd.
equity instrument
Beijing Guangrong
Lianmeng Not satisfied with the
Semiconductor lighting 995,839.20 condition of trading Not applicable
Industry Investment equity instrument
Centre (L.P.)
19,990,672 399,501,718
Total
.99 .17
Other notes:
Naught.
17. Long-term Receivables
Naught.
145
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
18. Long-term Equity Investment
Unit: RMB
Increase/decrease
Beginning Beginning Gains and Ending Ending
Adjustment
balance balance of losses Cash bonus Withdrawal balance balance of
Investee of other Changes
(carrying impairment Additional Reduced recognised comprehen of other or profits of
Others (carrying impairment
value) provision investment investment under the announced impairment value) provision
sive equity
equity to issue provision
income
method
I. Joint Ventures
II. Associated Enterprises
Shenzhen
Primatronix 180,63
179,188, 1,444,72
(Nanho) 3,275.8
555.15 0.72
Electronics 7
Ltd.
180,63
179,188, 1,444,72
Sub-total 3,275.8
555.15 0.72
7
180,63
179,188, 1,444,72
Total 3,275.8
555.15 0.72
7
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the expected future cash flow
□Applicable Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment
tests in prior years or external information
Naught.
The reason for the discrepancy between the information used in the Company’s impairment tests in prior years
and the actual situation of those years
Naught.
Other notes:
Naught.
19. Other Non-current Financial Assets
Naught.
146
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
Applicable □ Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
Progress
I. Original carrying value
1. Beginning balance 204,959,267.68 204,959,267.68
2. Increased amount of
the period
3. Decreased amount
of the period
4. Ending balance 204,959,267.68 204,959,267.68
II. Accumulative
depreciation and
accumulative amortisation
1. Beginning balance 41,322,920.27 41,322,920.27
2. Increased amount of
3,480,668.87 3,480,668.87
the period
(1) withdrawal or
3,480,668.87 3,480,668.87
amortisation
3. Decreased amount
of the period
4. Ending balance 44,803,589.14 44,803,589.14
III. Depreciation reserves
1. Beginning balance
2. Increased amount of
the period
3. Decreased amount
of the period
4. Ending balance
IV. Carrying value
1. Ending Carrying
160,155,678.54 160,155,678.54
Value
2. Beginning carrying
163,636,347.41 163,636,347.41
value
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the expected future cash flow
□Applicable Not applicable
147
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
The reason for the discrepancy between the foregoing information and the information used in the impairment
tests in prior years or external information
Naught.
The reason for the discrepancy between the information used in the Company’s impairment tests in prior years
and the actual situation of those years
Naught.
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable Not applicable
(3) Projects Converted to Investment Properties and Measured at Fair Value
Naught.
(4) Investment Property Failed to Accomplish Certification of Property
As of 30 June 2024, the relevant property certificates for the LED Workshop and R&D Workshop 18 are still in progress. The
Management believes that obtaining such property certificates is not subject to any substantive legal obstacles and has no
significant adverse impact on the Company’s normal operations.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 3,479,919,717.47 3,451,760,127.91
Disposal of fixed assets 1,892,712.21 1,454,458.56
Total 3,481,812,429.68 3,453,214,586.47
(1) List of Fixed Assets
Unit: RMB
Buildings and Machinery Transportation Electronic
Item Other (Note 1) Total
structures equipment equipment equipment
I. Original
carrying value
1. Beginning 2,159,878,650. 5,130,492,486. 7,493,531,647.
38,514,056.09 72,880,741.85 91,765,712.00
balance 29 84 07
2. Increased
amount of the 212,787,304.72 70,908,098.55 1,234,254.48 4,095,032.92 2,126,126.53 291,150,817.20
period
(1) Purchase 952,939.08 18,657,431.70 764,584.07 3,693,065.72 429,561.67 24,497,582.24
(2) Transfer
211,834,365.64 51,281,113.60 409,670.41 401,967.20 1,696,564.86 265,623,681.71
from
148
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Buildings and Machinery Transportation Electronic
Item Other (Note 1) Total
structures equipment equipment equipment
Construction in
progress
(3) Other (Note
969,553.25 60,000.00 1,029,553.25
2)
3. Decreased
amount of the 144,238,068.90 11,956,506.64 685,299.70 260,308.44 389,072.60 157,529,256.28
period
(1) Disposal or
10,991,457.51 679,081.00 260,078.93 384,334.40 12,314,951.84
scrap
(2) Equipment
398,251.96 398,251.96
transformation
(3) Other (Note
144,238,068.90 566,797.17 6,218.70 229.51 4,738.20 144,816,052.48
2)
4. Ending 2,228,427,886. 5,189,444,078. 7,627,153,207.
39,063,010.87 76,715,466.33 93,502,765.93
balance 11 75 99
II.
Accumulated
amortisation
1. Beginning 3,107,267,227. 4,033,966,802.
772,209,491.83 28,949,352.01 51,404,295.01 74,136,436.53
balance 12 50
2. Increased
amount of the 49,689,862.40 200,996,187.31 1,420,192.61 4,304,261.54 3,202,985.76 259,613,489.62
period
(1) Withdrawal 49,689,862.40 200,996,187.31 1,420,192.61 4,304,261.54 3,202,985.76 259,613,489.62
3. Decreased
amount of the 142,072,380.30 10,771,429.68 654,866.28 249,869.95 369,024.20 154,117,570.41
period
(1) Disposal or
10,245,692.75 648,709.76 249,642.74 359,531.17 11,503,576.42
scrap
(2) Equipment
209,802.10 209,802.10
transformation
(3) Other (Note
142,072,380.30 315,934.83 6,156.52 227.21 9,493.03 142,404,191.89
2)
4. Ending 3,297,491,984. 4,139,462,721.
679,826,973.93 29,714,678.34 55,458,686.60 76,970,398.09
balance 75 71
III.
Depreciation
reserves
1. Beginning
7,800,885.08 3,037.99 793.59 7,804,716.66
balance
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the 33,947.85 33,947.85
period
(1) Disposal or
scrap
(2) Equipment 33,947.85 33,947.85
149
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Buildings and Machinery Transportation Electronic
Item Other (Note 1) Total
structures equipment equipment equipment
transformation
4. Ending
7,766,937.23 3,037.99 793.59 7,770,768.81
balance
IV. Carrying
value
1. Ending 1,548,600,912. 1,884,185,156. 3,479,919,717.
9,348,332.53 21,253,741.74 16,531,574.25
carrying value 18 77 47
2. Beginning 1,387,669,158. 2,015,424,374. 3,451,760,127.
9,564,704.08 21,473,408.85 17,628,481.88
carrying value 46 64 91
Note 1: Fixed Assets - Other refer to cooling system and sewage treatment station of NationStar Optoelectronics
and instruments and implement of Nanning Liaowang.
Note 2: The original carrying value and accumulated depreciation, as well as other increases or decreases, are
due to the addition of ancillary facilities to properties and buildings, and the transfer to other non-current assets
because of purchase and storage.
(2) List of Temporarily Idle Fixed Assets
Naught.
(3) Fixed Assets Leased out by Operation Lease
Naught.
(4) Fixed Assets Failed to Accomplish Certification of Property
Other notes:
The Company’s Fuwan Standard Workshop J3, Fuwan Standard Workshop K1, Building 8 of Gaoming Family
Dormitory, Fuwan Staff Dormitory Building 7, Family Dormitory Building 3 to 6, Staff Village Dormitory
Building A, Staff Village Dormitory Building 2, 3, 5, 6, 10 to 13, Staff Dormitory Building 1 to 4, Fuwan
Energy Saving Lamp Workshop 2, Glass Workshop 8, Glass Workshop 9, Fluorescent Lamp Workshop,
Standard Workshop A, R&D Workshop 11 to 14, Kelian Building, and LED Workshop 1-3 have been
completed and put into use and carried forward fixed assets. As at 30 June 2024, the relevant property
certificates are still in progress. The Management believes that obtaining such property certificates is not subject
to any substantive legal obstacles and has no significant adverse impact on the Company’s normal operations.
In addition, the ten-story comprehensive building, Building 1 of Block A, Building 3 of Block B, etc., have no
property ownership certificates due to historical matters, and these properties and buildings are involved in the
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
“pending expropriation” project, which is planned to be implemented by the relevant government departments,
as detailed in Note VII-30. Other Non-current Assets.
(5) Impairment Test of Fixed Assets
□Applicable Not applicable
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Applying for scrapping indisposed
1,892,712.21 1,454,458.56
equipment
Total 1,892,712.21 1,454,458.56
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 1,070,611,321.57 1,174,533,505.11
Total 1,070,611,321.57 1,174,533,505.11
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Construction in 1,072,138,876. 1,070,611,321. 1,176,061,060. 1,174,533,505.
1,527,554.99 1,527,554.99
progress 56 57 10 11
1,072,138,876. 1,070,611,321. 1,176,061,060. 1,174,533,505.
Total 1,527,554.99 1,527,554.99
56 57 10 11
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of which:
Proportion of Amount of Capitalisation
Accumulative
Transferred Other accumulative capitalised rate of
Beginning Increased Ending Job amount of Capital
Item Budget in fixed decreased investment in interests for interests for
balance amount balance schedule interest resources
assets amounts constructions the the Reporting
capitalisation
to budget Reporting Period
Period
The Project
Self-
of the
1,714,54 467,955,50 24,826,9 492,782, financing
Geely 32.87% 32.87% 633,494.78 71,131.68 3.47%
6,700.00 7.68 21.02 428.70 and
Industrial
borrowing
Park
Kelian 726,738, 265,818,75 1,931,02 1,570,667.8 266,179, 41.63% 93.00% 36,640,953.0 Self-
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Of which:
Proportion of Amount of Capitalisation
Accumulative
Transferred Other accumulative capitalised rate of
Beginning Increased Ending Job amount of Capital
Item Budget in fixed decreased investment in interests for interests for
balance amount balance schedule interest resources
assets amounts constructions the the Reporting
capitalisation
to budget Reporting Period
Period
Building 900.00 1.84 6.18 7 110.15 2 financing
and
borrowing
FSL Fund
Hainan 310,400, 165,138,43 12,008,2 177,146, raising and
62.21% 63.00%
Industrial 000.00 1.72 36.18 667.90 self-
Park I financing
Gaoming
212,135, 164,777,14 52,955,8 211,834,36 5,898,58 Self-
office 3.03% 95.00%
300.00 5.48 08.81 5.64 8.65 financing
building
2,963,82 1,063,689, 91,721,9 211,834,36 1,570,667.8 942,006, 37,274,447.8
Total 71,131.68 3.47%
0,900.00 836.72 92.19 5.64 7 795.40 0
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught.
(4) Impairment Test of Construction in Progress
□Applicable Not applicable
(5) Engineering Materials
Naught.
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable Not applicable
(2) Impairment Testing of Productive Living Assets Adopting Cost Measurement Mode
□Applicable Not applicable
(3) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable Not applicable
24. Oil and Gas Assets
□Applicable Not applicable
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
25. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
Item Houses and buildings Total
I. Original carrying value
1. Beginning balance 16,811,584.09 16,811,584.09
2. Increased amount of the period 4,650,661.92 4,650,661.92
(1) Leased in 4,650,661.92 4,650,661.92
3. Decreased amount of the period 8,156,616.28 8,156,616.28
(1) Disposal 8,156,616.28 8,156,616.28
4. Ending balance 13,305,629.73 13,305,629.73
II. Accumulated amortisation
1. Beginning balance 7,999,263.45 7,999,263.45
2. Increased amount of the period 4,097,193.56 4,097,193.56
(1) Withdrawal 4,097,193.56 4,097,193.56
3. Decreased amount of the period 3,771,215.66 3,771,215.66
(1) Disposal 3,771,215.66 3,771,215.66
4. Ending Balance 8,325,241.35 8,325,241.35
III. Depreciation reserves
1. Beginning balance
2. Increased amount of the period
3. Decreased amount of the period
4. Ending balance
IV. Carrying value
1. Ending carrying value 4,980,388.38 4,980,388.38
2. Beginning carrying value 8,812,320.64 8,812,320.64
(2) Impairment Test of Right-of-use Assets
□Applicable Not applicable
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Software use
Item Land use right Patent Total
technology rights
I. Original carrying
value
1. Beginning balance 491,170,315.79 24,227,977.69 74,865,934.65 590,264,228.13
2. Increased amount
53,752.18 5,904,368.98 5,958,121.16
of the period
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Non-patent Software use
Item Land use right Patent Total
technology rights
(1) Purchase 53,752.18 5,904,368.98 5,958,121.16
3. Decreased amount
69,584,050.87 69,584,050.87
of the period
(1) Disposal 69,584,050.87 69,584,050.87
4. Ending balance 421,640,017.10 24,227,977.69 80,770,303.63 526,638,298.42
II. Accumulated
amortisation
1. Beginning balance 109,627,032.21 24,185,151.93 21,902,130.00 155,714,314.14
2. Increased amount
4,920,465.90 3,903.10 5,624,943.38 10,549,312.38
of the period
(1) Withdrawal 4,920,465.90 3,903.10 5,624,943.38 10,549,312.38
3. Decreased amount
34,857,434.56 34,857,434.56
of the period
(1) Disposal 34,857,434.56 34,857,434.56
4. Ending balance 79,690,063.55 24,189,055.03 27,527,073.38 131,406,191.96
III. Depreciation
Reserves
1. Beginning balance
2. Increased amount
of the period
3. Decreased amount
of the period
4. Ending balance
IV. Carrying value
1. Ending carrying
341,949,953.55 38,922.66 53,243,230.25 395,232,106.46
value
2. Beginning carrying
381,543,283.58 42,825.76 52,963,804.65 434,549,913.99
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 0.00%.
(2) Data Resources Recognised as Intangible Assets
Naught.
(3) Land Use Right with Certificate of Title Uncompleted
Naught.
(4) Impairment Test of Intangible Assets
□Applicable Not applicable
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27. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units
Beginning Formed by
or events Ending balance
balance business Disposal
generating
goodwill combination
Nanning
Liaowang Auto 16,211,469.82 16,211,469.82
Lamp Co., Ltd.
Foshan
NationStar
405,620,123.64 405,620,123.64
Optoelectronics
Co., Ltd.
Total 421,831,593.46 421,831,593.46
28. Long-term Prepaid Expense
Unit: RMB
Amortisation
Other decreased
Item Beginning balance Increased amount amount of the Ending balance
amount
period
Mould 130,329,590.74 115,507,296.40 65,168,696.17 13,253,649.00 167,414,541.97
Expense on
maintenance and 49,146,320.04 6,751,286.13 10,426,803.16 45,470,803.01
decoration
Boarding box 667,938.96 39,889.35 210,439.49 497,388.82
Others 10,218,849.51 830,927.90 4,119,701.15 6,930,076.26
Total 190,362,699.25 123,129,399.78 79,925,639.97 13,253,649.00 220,312,810.06
Other notes: Other decrease amount of moulds was mainly due to the provision for impairment and the sales of moulds
29. 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
435,105,859.50 66,462,224.17 390,622,029.71 59,298,411.33
impairment of assets
Unrealised profit of
110,879,700.14 16,631,955.04 37,737,392.89 5,660,608.94
internal transactions
Deductible loss 121,241,173.91 21,149,566.84 124,708,331.49 22,015,171.66
Estimated expense 50,202,680.16 7,530,402.02 46,135,701.47 6,920,355.22
Depreciation of fixed
49,521,055.65 7,428,158.35 54,793,929.61 8,219,089.44
assets
Accrued liabilities 16,495,438.86 2,474,315.82 14,277,087.30 2,141,563.09
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Changes in the fair
value of trading 726,609.03 108,991.36 751,107.32 112,666.10
financial assets
Lease liabilities and
17,716,016.40 2,742,427.10 12,750,617.72 1,915,901.17
others
Total 801,888,533.65 124,528,040.70 681,776,197.51 106,283,766.95
(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
Assets assessment
appreciation from
81,212,531.53 12,181,879.73 83,667,098.60 12,550,064.79
business consolidation not
under the same control
Changes in fair value of
other investments in 392,010,890.64 58,801,633.60 417,362,085.59 62,604,312.84
equity instruments
One-off depreciation of
626,634,231.58 94,353,357.81 649,066,960.98 97,598,859.53
fixed assets
Changes in the fair value
1,659,245.00 248,886.75 1,559,845.00 233,976.75
of trading financial assets
Right-of-use assets and
8,442,450.83 1,350,926.48 12,108,349.60 1,819,532.34
others
Total 1,109,959,349.58 166,936,684.37 1,163,764,339.77 174,806,746.25
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount Amount of deferred Mutual set-off amount Amount of deferred
of deferred income tax income tax assets or of deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set assets and liabilities at liabilities after off-set
the period-end at the period-end the period-begin at the period-begin
Deferred income tax
124,528,040.70 106,283,766.95
assets
Deferred income tax
166,936,684.37 174,806,746.25
liabilities
(4) List of Unrecognised Deferred Income Tax Assets
Naught.
(5) Deductible Losses of Unrecognised Deferred Income Tax Assets will Due in the Following Years
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
30. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Long-term
assets to be 80,601,020.69 80,601,020.69 41,955,426.17 41,955,426.17
disposed (note)
Prepaid long-
term assets
44,550,073.05 44,550,073.05 36,085,714.00 36,085,714.00
acquisition
funds
Advance
payment for
31,752,262.94 31,752,262.94 40,991,898.73 40,991,898.73
equipment and
project
Prepayment for
equity 10,000,000.00 10,000,000.00 10,000,000.00 10,000,000.00
acquisition
Others 295,352.80 295,352.80 294,664.28 294,664.28
Total 167,198,709.48 10,000,000.00 157,198,709.48 129,327,703.18 10,000,000.00 119,327,703.18
Other notes:
Note: The Company intends to hand over the plots of land located on the south and north sides of the Gongye
Road to the government for revitalisation in the form of “pending expropriation”. When the government
successfully sells the plots through a public auction, the Company will be given the compensation for the land
transfer according to the policy. The buildings and constructions to be revitalised include the plant of LED
Workshop 3, the added plant of LED Workshop 3, the large plant in the south area (single-end workshop), the
plant in the north area (four buildings), spark plug workshop of energy saving lamps warehouse, T8 Workshop
1 (Building 2), LED Workshop 2, Building 14 of Iodine Lamp Workshop 3155m, the Company’s new finished
goods warehouse 3662M2, materials warehouse (east end of single-end workshop), North Zone LPG station, T5
warehouse in the North Zone, ten-story comprehensive building, Building 1 of Block A, Building 3 of Block B,
etc.
31. Assets with Restricted Ownership or Right of Use
Unit: RMB
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of
amount value restriction restriction amount value restriction restriction
Bill Bill
Monetary 492,360,24 492,360,24 Restricted deposit, 486,328,75 486,328,75 Restricted deposit,
Assets 6.76 6.76 use guarantee 2.85 2.85 use guarantee
deposit, deposit,
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of
amount value restriction restriction amount value restriction restriction
pre-sale pre-sale
house house
payment, payment,
etc etc
Pledge of Pledge of
Pledge, bill pool, Pledge, bill pool,
endorsed or bills endorsed or bills
Notes 750,368,40 750,368,40 873,275,55 873,275,55
discounted receivable discounted receivable
receivable 3.26 3.26 6.80 6.80
but not yet endorsed or but not yet endorsed or
due discounted due discounted
and not due and not due
Mortgage Mortgage
Fixed 326,522,71 211,662,44 guarantee 326,522,71 219,746,33 guarantee
Pledge Pledge
assets 5.93 3.02 of related 5.93 1.38 of related
parties parties
Mortgage Mortgage
Intangible 15,551,408. 10,497,200. guarantee 15,551,408. 10,652,715. guarantee
Pledge Pledge
assets 00 96 of related 00 04 of related
parties parties
Accounts
31,596,200. 31,596,200. Pledge of 120,221,19 120,221,19 Pledge of
receivable Pledged Pledged
00 00 bill pool 9.92 9.92 bill pool
financing
1,616,398,9 1,496,484,4 1,821,899,6 1,710,224,5
Total
73.95 94.00 33.50 55.99
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged loans 39,850,000.00
Mortgage loans 20,000,000.00 83,330,000.00
Credit borrowings 65,000,000.00 70,000,000.00
Acceptance bill discount 66,689,877.73
Total 124,850,000.00 220,019,877.73
(2) List of the Short-term Borrowings Overdue but not Returned
Naught.
33. Trading Financial Liabilities
Naught.
34. Derivative Financial Liabilities
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 2,052,737,312.65 2,256,122,566.65
letter of credit 15,052,221.04
Total 2,052,737,312.65 2,271,174,787.69
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 2,971,638,357.60 2,875,980,206.64
Total 2,971,638,357.60 2,875,980,206.64
(2) Significant Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
No. 1 53,279,803.09 It has not reached the settlement period
Total 53,279,803.09
37. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 184,293,387.60
Other payables 430,552,163.03 362,491,923.01
Total 614,845,550.63 362,491,923.01
(1) Interest Payable
Naught.
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 184,293,387.60
Total 184,293,387.60
Other notes: Including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed: Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Transaction amount 140,671,169.10 122,073,392.43
Relevant expense of sales 109,951,518.01 88,852,388.08
Performance bond 96,000,687.89 76,508,284.65
Payments for demolition 34,898,417.30 36,592,784.44
Payment for equity transfer 5,000,000.00 5,000,000.00
Others 44,030,370.73 33,465,073.41
Total 430,552,163.03 362,491,923.01
2) Significant Other Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
Unit A 100,046,577.48 It has not reached the settlement period
Total 100,046,577.48
38. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advance payments received 231,062.59 466,872.69
Total 231,062.59 466,872.69
(2) Significant Advances from Customers Aging over One Year or Overdue
Naught.
39. Contract Liability
Unit: RMB
Item Ending balance Beginning balance
Advances on sales 136,319,866.46 235,335,693.28
Total 136,319,866.46 235,335,693.28
Significant contract liabilities aging over one year: Naught.
40. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 192,578,525.70 687,220,124.10 683,439,069.76 196,359,580.04
II. Post-employment
benefit-defined 1,252,286.96 60,736,517.03 60,667,816.51 1,320,987.48
contribution plans
III. Termination
712,550.73 712,550.73
benefits
Total 193,830,812.66 748,669,191.86 744,819,437.00 197,680,567.52
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
189,203,378.17 605,069,847.01 600,337,718.86 193,935,506.32
allowance, subsidy
2. Employee welfare 39,743.10 29,828,256.30 29,828,433.13 39,566.27
3. Social insurance 513,915.45 27,467,949.85 27,520,016.05 461,849.25
Of which:
Medical insurance 432,930.31 25,411,232.75 25,462,669.89 381,493.17
premiums
Work-
80,985.14 2,056,717.10 2,057,346.16 80,356.08
related injury insurance
4. Housing fund 498,319.50 19,702,612.21 19,681,009.93 519,921.78
5. Labour union budget
and employee 2,323,169.48 5,151,458.73 6,071,891.79 1,402,736.42
education budget
Total 192,578,525.70 687,220,124.10 683,439,069.76 196,359,580.04
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
941,107.39 56,317,069.74 56,310,872.05 947,305.08
benefits
2. Unemployment
29,771.68 2,015,785.00 2,015,259.25 30,297.43
insurance
3. Annuity 281,407.89 2,403,662.29 2,341,685.21 343,384.97
Total 1,252,286.96 60,736,517.03 60,667,816.51 1,320,987.48
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.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
41. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 37,093,526.88 15,318,825.56
Corporate income tax 24,245,663.48 17,336,516.13
Personal income tax 1,648,953.58 3,796,001.53
City maintenance and construction tax 3,270,422.27 1,905,489.83
Property tax 8,849,819.79 1,260,207.36
Education surcharge 2,260,139.15 1,423,582.17
Land use tax 1,320,801.82 247,268.25
Others 1,537,302.74 1,652,266.47
Total 80,226,629.71 42,940,157.30
42. Liabilities Held for sale
Naught.
43. Non-current Liabilities Due within One Year
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 376,755,861.52 339,846,622.13
Current portion of lease liabilities 3,443,436.12 4,067,592.32
Total 380,199,297.64 343,914,214.45
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT and others 8,817,198.94 23,162,317.81
Reversed notes that are endorsed and undue 185,618,921.58 71,846,109.20
Total 194,436,120.52 95,008,427.01
Increase/decrease of the short-term bonds payable: Naught.
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage loans 36,511,789.18 27,754,169.97
Credit borrowings 614,641,612.44 565,185,873.45
Less: Current portion of long-term
376,755,861.52 339,846,622.13
borrowings
Total 274,397,540.10 253,093,421.29
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46. Bonds Payable
Naught.
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Leasing liabilities 5,420,389.26 8,378,560.24
Less: current portion of lease liabilities 3,443,436.12 4,067,592.32
Total 1,976,953.14 4,310,967.92
Other notes:
Analysis of maturity fate of lease liabilities
Item Ending balance Beginning balance
One to two years 1,885,905.40 1,637,899.09
Two to five years 91,047.74 2,673,068.83
Total 1,976,953.14 4,310,967.92
48. Long-term Accounts Payable
Naught.
49. Long-term Employee Benefits Payable
Naught.
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Formed reason
Provision for product quality
Product quality assurance 16,495,438.86 14,277,087.30
guarantee expenses
Total 16,495,438.86 14,277,087.30
51. Deferred Income
Unit: RMB
Item Beginning balance Increase Decrease Ending balance Formed reason
Government
Government grants 75,185,461.27 12,184,500.00 19,952,488.19 67,417,473.08
allocations
Total 75,185,461.27 12,184,500.00 19,952,488.19 67,417,473.08
Other notes:
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Amount
Amount
recorded
recorded Amount
into non-
Amount into other offset cost Related to
Beginning operating Other Ending
Item of newly income in in the assets/related
balance income in changes balance
subsidy the Reporting income
the
Reporting Period
Reporting
Period
Period
Government grants related to 63,950,8 6,763,50 11,549,6 59,164,
assets 64.78 0.00 64.02 700.76
The Projects of the Production
Expansion and Technological
14,068,4 2,032,27 12,036, Related to
Transformation of Components of
97.44 5.84 221.60 assets
Small-spacing and Outdoor LED
Displays
The Project of the Innovation in
Packaging Technology and
Technological Transformation of Key 7,623,29 785,363. 6,837,9 Related to
Packaging Equipment of LEDs with 3.17 70 29.47 assets
High Colour Rendering Index for
Illumination
2023 Award Funds Project for
Industrial Enterprise Expansion
4,763,50 4,763,5 Related to
Investment, Technological Innovation
0.00 00.00 assets
and Quality Improvement of Hainan
Province
The Project of the Innovation in
Packaging Technology and
4,832,95 548,355. 4,284,5 Related to
Technological Transformation of Key
4.10 48 98.62 assets
Packaging Equipment of LEDs with
Small Spacing for Display
2022 Award Funds Project for
Industrial Enterprise Expansion
4,137,00 4,137,0 Related to
Investment, Technological Innovation
0.00 00.00 assets
and Quality Improvement of Hainan
Province
The Subsidy for Metal-organic
7,084,69 4,800,91 2,283,7 Related to
Chemical Vapour Deposition
6.84 2.92 83.92 assets
(MOCVD)
The First Batch of 2022 Special
Funds for Industrial Technological 2,047,99 128,000. 1,919,9 Related to
Transformation by the Finance 9.99 00 99.99 assets
Bureau of Liang Jiang New Area
The Project of Resource
2,440,48 671,246. 1,769,2 Related to
Conservation and Environmental
1.00 82 34.18 assets
Protection
The Second Batch of Support Funds
for the "Technological
1,566,66 100,000. 1,466,6 Related to
Transformation of Thousands of
6.58 02 66.56 assets
Enterprises" in the Guangxi Zhuang
Autonomous Region for 2021
The 2019 Second Batch of Special
Funds of RMB3 million for the 1,500,00 150,000. 1,350,0 Related to
Industrial and Information 0.00 00 00.00 assets
Development of the City
Special Project on Deep-sea 1,200,00 1,200,0 Related to
164
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Amount
Amount
recorded
recorded Amount
into non-
Amount into other offset cost Related to
Beginning operating Other Ending
Item of newly income in in the assets/related
balance income in changes balance
subsidy the Reporting income
the
Reporting Period
Reporting
Period
Period
Technology Industry Promotion 0.00 00.00 assets
(Industry Development Category) of
Hainan Deep-Sea Technology
Innovation Centre - Project on
Building and Commercial Operation
of Deep-sea Lighting Product
Production Line
The First Batch of Special Funds for
the Industrial and Information
Development for the Guangxi 1,366,66 199,999. 1,166,6 Related to
Zhuang Autonomous Region for 6.93 98 66.95 assets
2017 (Technological Transformation)
for Liuzhou Guige
The Project of the First Batch of
Support Funds for Enterprises in 1,200,00 150,000. 1,050,0 Related to
Liuzhou City for 2017 for Liuzhou 0.00 00 00.00 assets
Guige
Research and Development and
Industrialisation Project of Potassium
857,384. 56,798.7 800,585 Related to
Nitride-based Rf Devices in the Field
58 6 .82 assets
of Next Generation Mobile
Communication
Research on the Third-generation
800,000. 800,000 Related to
Semiconductor Power Device and
00 .00 assets
Module Packaging Technology
The 2019 14th Batch of Industrial 750,000. 75,000.0 675,000 Related to
Support Funds of RMB1.5 million 00 0 .00 assets
Intelligent Technology Reform
620,755. 620,755 Related to
Project of LED Packaging Workshop
00 .00 assets
in Geely Industrial Park (Phase I)
The First Batch of 2022 Special
560,000. 35,000.0 525,000 Related to
Funds for Micro, Small, and Medium
01 0 .01 assets
Enterprises
The Innovation Fund for Enterprises
600,000. 75,000.0 525,000 Related to
in Liudong New Area for 2017 for
00 0 .00 assets
Liuzhou Guige
The Project of the Third Batch of
Special Funds of Innovation-driven
520,000. 48,000.0 472,000 Related to
Development for the Guangxi
00 0 .00 assets
Zhuang Autonomous Region for
2018 for Liuzhou Guige
LED Technology for Efficient
607,172. 143,251. 463,921 Related to
Cultivation in Modern Agriculture
60 56 .04 assets
and Its Demonstrative Application
The Project of Support Funds for
516,666. 100,000. 416,666 Related to
Enterprises in Liuzhou City for 2020
57 02 .55 assets
for Liuzhou Guige
The Key Labs of Semiconductor 434,562. 37,718.7 396,843 Related to
165
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Amount
Amount
recorded
recorded Amount
into non-
Amount into other offset cost Related to
Beginning operating Other Ending
Item of newly income in in the assets/related
balance income in changes balance
subsidy the Reporting income
the
Reporting Period
Reporting
Period
Period
Micro Display Enterprises in 60 0 .90 assets
Guangdong Province (for 2020)
The Project of Key Technologies and
380,250. 30,495.0 349,755 Related to
Industrialisation of Silica-based
00 0 .00 assets
Gallium Nitride Power Components
The Project of Research and
Development and Industrialisation of
NB-IoT-based Multi-Mode Low- 361,725. 18,915.9 342,809 Related to
Power Wide-Area Internet of Things 80 0 .90 assets
Node Chips and Packaging
Technology
The Project of Financial Support for
Developing Liuzhou City into an
421,333. 79,000.0 342,333 Related to
Industrial Internet of Things (IIOT)
24 2 .22 assets
Demonstration City for 2021 for
Liuzhou Guige
The Demonstration of Industrial
Internet of Things (IIOT) 380,668. 67,332.7 313,336 Related to
Applications for LED Production 88 8 .10 assets
Control
9,072,08 1,216,99 7,855,0 Related to
Others
9.45 6.52 92.93 assets
Government grants related to 11,234,5 5,421,00 8,402,82 8,252,7
income 96.49 0.00 4.17 72.32
The Research on the Key Technology
of 4K/8K Full-colour Micro-LED 4,962,51 2,911,57 2,050,9 Related to
Displays with Ultra High Definition 6.28 6.13 40.15 income
(UHD)
2023 Automotive Lamp Production
765,000. 1,030,00 94,000.0 1,701,0 Related to
Digitalisation Workshop Technology
00 0.00 0 00.00 income
Improvement Project
Research on Key Technologies of the
Third Generation of High Frequency 1,705,47 33,235.8 1,672,2 Related to
Semiconductor Electronic Power 4.54 6 38.68 income
Module in Colleges and Universities
The Research on Full-colour and
Integrated Packaging of Micro-LED 1,770,40 877,192. 893,210 Related to
Display with High Brightness and 2.30 23 .07 income
Contrast
The Fund for the Intelligent
Transformation and Upgrading 487,333. 34,000.0 453,333 Related to
Projects of Automobile Enterprises 22 2 .20 income
for 2021
The Fund for the Project of the
Management Committee of the 448,000. 31,999.9 416,000 Related to
Liuzhou High-tech Industrial 12 8 .14 income
Development Zone
The Guangdong-Hong Kong-Macao 350,000. 3,983.07 346,016 Related to
166
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Amount
Amount
recorded
recorded Amount
into non-
Amount into other offset cost Related to
Beginning operating Other Ending
Item of newly income in in the assets/related
balance income in changes balance
subsidy the Reporting income
the
Reporting Period
Reporting
Period
Period
Joint Lab of Intelligent Micro-nano 00 .93 income
Photoelectric Technology
The Special Fund of the Science and
Technology Department of the
340,000. 30,000.0 310,000 Related to
Guangxi Zhuang Autonomous
00 0 .00 income
Region for Innovation-driven
Development for 2020
Epitaxial Growth and Chip
400,000. 400,000. Related to
Fabrication Techniques for High-
00 00 income
Performance Deep Ultraviolet LED
4,391,00 3,986,83 410,033 Related to
Others 5,870.03
0.00 6.88 .15 income
75,185,4 12,184,5 19,952,4 67,417,
Total
61.27 00.00 88.19 473.08
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT 205,769.48
Total 205,769.48
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
balance Bonus issue balance
New issues Bonus shares Others Sub-total
from profit
1,548,778,2 1,548,778,230
Total shares
30.00 .00
Other notes:
Beginning balance Ending balance
Item/Investor Increase Decrease
Invested amount Proportion Invested amount Proportion
Restricted shares 197,537,241.00 12.75% 140,165,794.00 57,371,447.00 3.70%
Unrestricted
1,351,240,989.00 87.25% 140,165,794.00 1,491,406,783.00 96.30%
shares
Total 1,548,778,230.00 100.00% 140,165,794.00 140,165,794.00 1,548,778,230.00 100.00%
54. Other Equity Instrument
Naught.
167
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
907,090,354.12 907,090,354.12
(premium on stock)
Other capital reserves 7,245,971.54 7,245,971.54
Total 914,336,325.66 914,336,325.66
Other notes, including a description of the increase or decrease for the current period and the reasons for the change: Naught.
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Treasury shares (A-
82,165,144.15 82,165,144.15
share)
Total 82,165,144.15 82,165,144.15
Other notes, including a description of the increase or decrease for the current period and the reasons for the change: Naught.
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: Recorded Less: Recorded
Attributab
in other in other
le to
Income comprehensive comprehensive Attributable
Beginning owners of Ending
Item before income in prior income in prior Less: to non-
balance the balance
taxation in period and period and Income tax controlling
Company
the Current transferred to transferred to expense interests
as the
Period profit or loss in retained after tax
parent
the Current earnings in the
after tax
Period Current Period
I. Other
comprehensive
- - -
income that may not 359,730, 338,181
25,351,194 3,802,679. 21,548,5
subsequently be 272.74 ,757.03
.95 24 15.71
reclassified to profit
or loss
Changes in fair
- - -
value of other 359,730, 338,181
25,351,194 3,802,679. 21,548,5
investments in equity 272.74 ,757.03
.95 24 15.71
instruments
II. Other
comprehensive - - -
296,754. -
income that may be 1,217,559. 654,873. 358,118
85 562,686.62
reclassified to profit 83 21 .36
or loss
Differences - - -
296,754. -
arising from 1,217,559. 654,873. 358,118
85 562,686.62
translation of foreign 83 21 .36
168
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Reporting Period
Less: Recorded Less: Recorded
Attributab
in other in other
le to
Income comprehensive comprehensive Attributable
Beginning owners of Ending
Item before income in prior income in prior Less: to non-
balance the balance
taxation in period and period and Income tax controlling
Company
the Current transferred to transferred to expense interests
as the
Period profit or loss in retained after tax
parent
the Current earnings in the
after tax
Period Current Period
currency-denominated
financial statements
Total of other - - -
360,027, - 337,823
comprehensive 26,568,754 3,802,679. 22,203,3
027.59 562,686.62 ,638.67
income .78 24 88.92
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effective
gain/loss on cash flow hedges:
Naught.
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Production safety
1,213,325.92 4,940,359.02 1,746,320.26 4,407,364.68
reserve
Total 1,213,325.92 4,940,359.02 1,746,320.26 4,407,364.68
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
The increase in the current year represents the safety production expenses accrued in accordance with the proportion stipulated in
the Notice on issuing the Management Measures for the Provision and Use of Enterprise Production Safety Costs (C.Z. [2022] No.
136), and the decrease in the current year represents the actual safety production expenses incurred.
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
66,264,408.10 66,264,408.10
reserve
Discretionary surplus
41,680,270.96 41,680,270.96
reserve
Total 107,944,679.06 107,944,679.06
60. Retained Profits
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings
3,435,308,364.11 3,296,490,575.52
before adjustments
169
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Reporting Period Same period of last year
Beginning balance of total retained
earnings of adjustments (“+” for -54,747.02
increase, “-” for decrease)
Beginning balance of retained earnings
3,435,308,364.11 3,296,435,828.50
after adjustments
Add: Net profit attributable to owners of
192,229,182.38 290,357,652.22
the Company as the parent
Less: Withdrawal of statutory surplus
16,585,651.91
reserves
Dividend of ordinary shares payable 184,293,387.60 134,899,464.70
Ending retained earnings 3,443,244,158.89 3,435,308,364.11
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
Note: Due to changes in accounting policies from the previous year, the retained profits at the beginning of the previous year were
RMB-54,747.02.
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 4,641,840,263.11 3,761,579,956.02 4,405,159,052.69 3,604,574,132.92
Other operations 142,705,504.31 100,078,120.59 160,903,676.33 128,900,695.96
Total 4,784,545,767.42 3,861,658,076.61 4,566,062,729.02 3,733,474,828.88
Breakdown information of operating revenue and cost of sales:
Unit: RMB
Total
Category of contracts
Operating revenue Cost of sales
Business type 4,784,545,767.42 3,861,658,076.61
Of which:
General lighting products 1,718,962,585.41 1,268,088,979.58
LED packaging and component products 1,323,471,292.10 1,099,752,921.69
Vehicle lamp products 1,045,063,423.50 852,898,599.13
Trade and other products 697,048,466.41 640,917,576.21
By operating places 4,784,545,767.42 3,861,658,076.61
Of which:
Domestic 3,747,878,177.49 2,991,223,462.34
Overseas 1,036,667,589.93 870,434,614.27
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not
170
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
completed at the end of the Reporting Period was RMB248,672,435.17.
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 11,477,398.90 11,300,137.99
Education surcharge 5,817,380.58 5,980,104.43
Property tax 12,240,976.04 11,009,535.41
Land use tax 1,862,982.54 3,483,007.51
Vehicle and vessel use tax 11,539.44 11,986.96
Stamp duty 4,090,236.94 3,297,666.10
Local education surcharge 2,386,760.07 2,165,938.97
Environmental protection tax 19,936.01 41,537.23
Embankment fee 2,613.03 128.45
Deed tax 146,289.40
Others 7,115.68 6,966.68
Total 37,916,939.23 37,443,299.13
63. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 130,927,710.77 125,958,952.18
Depreciation charge 39,408,441.47 25,811,976.14
Office expenses 18,519,960.05 13,062,802.09
Intermediary agency fee 5,246,590.63 4,119,910.31
Engineering decoration cost 4,801,504.22 6,357,723.64
Rent of land and management charge 4,141,330.16 1,104,528.44
Amortisation of intangible assets 4,114,485.79 4,630,270.87
Utilities 3,149,472.00 4,491,149.48
Labour cost 2,666,214.20 1,731,130.54
Security fund for the disabled 30,023.52 102,385.50
Party building funds 87,374.01
Others 13,327,229.70 13,487,882.22
Total 226,332,962.51 200,946,085.42
64. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 72,432,535.06 57,961,009.41
Business propagandise fees and
53,863,531.30 30,216,805.26
advertising fees
After-sales expenses 8,564,114.94 6,867,083.35
Office expenses 6,876,969.60 2,944,396.54
Sales promotion fees 6,294,529.20 7,233,896.10
Business travel charges 5,507,517.26 4,858,839.15
Commercial insurance premium 3,232,729.39 3,582,158.77
Others 19,038,902.55 18,256,941.42
171
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Reporting Period Same period of last year
Total 175,810,829.30 131,921,130.00
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Personnel and labour costs 126,235,339.99 108,806,040.39
Direct investment expenses 82,440,945.66 74,178,886.31
Depreciation expenses and long-term
22,649,859.13 22,819,097.36
prepaid expenses
Cost of outsourcing external R&D 3,917,155.30 188,759.61
Design fees 1,696,516.00 406,394.30
Amortisation charge of intangible assets 28,166.42 125,382.49
Other Fees 23,197,968.13 19,624,344.80
Total 260,165,950.63 226,148,905.26
Other notes:
In respect of R&D expense incurred by the Company, expense other than that on bench-scale and pilot-scale
production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale
production is included in core business revenue and the relevant costs are included in cost of sales of core
business.
66. Finance Cost
Unit: RMB
Item Reporting Period Same period of last year
Interest costs 11,047,212.70 14,255,244.44
Less: Interest income 25,938,447.85 24,520,047.73
Foreign exchange gains or losses -17,140,676.80 -21,315,108.34
Handling charge and others 1,425,667.21 1,417,289.22
Total -30,606,244.74 -30,162,622.41
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
The Deductible Input Tax for Advanced Manufacturing Enterprises 30,052,926.81
The Tax Incentives for The Poor 5,435,946.87 2,247,050.00
The Subsidy for Metal-organic Chemical Vapour Deposition
4,800,912.92 8,258,085.76
(MOCVD)
The Research on the Key Technology of 4K/8K Full-colour Micro-
2,911,576.13 1,338,901.10
LED Displays with Ultra High Definition (UHD)
The Projects of the Production Expansion and Technological
Transformation of Components of Small-spacing and Outdoor LED 2,032,275.84 2,032,275.84
Displays
CAE software Research Project for Multi-physics Field Coupling
1,890,966.85
Simulation of NationStar LED Products
Manufacturing Operation Management MOM Prototype Software 1,880,000.00
172
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Sources Reporting Period Same period of last year
Research Project for NationStar Manufacturing Scenarios
The Research on Full-colour and Integrated Packaging of Micro-LED
877,192.23 116,069.52
Display with High Brightness and Contrast
The Project of the Innovation in Packaging Technology and
Technological Transformation of Key Packaging Equipment of LEDs 785,363.70 1,014,030.94
with High Colour Rendering Index for Illumination
The Project of Resource Conservation and Environmental Protection 671,246.82 904,683.72
Support Fund for the Digital Intelligent Transformation of the
592,548.00 172,700.00
Manufacturing Industry
The Project of the Innovation in Packaging Technology and
Technological Transformation of Key Packaging Equipment of LEDs 548,355.48 510,442.92
with Small Spacing for Display
Chancheng District Government Quality Award 500,000.00
Reward Funds for Smart Factory Demonstration Enterprises and
500,000.00
Digital Workshops
Return of handling charges for withholding and remittance 479,040.08 737,693.99
Epitaxial Growth and Chip Fabrication Techniques for High-
400,000.00
Performance Deep Ultraviolet LED
Enterprise with 5A Quality Management Maturity 400,000.00
Standardised Strategy Municipal Subsidy Funds 370,000.00
Incentive for standard products of Foshan City 360,000.00 400,000.00
Incentive Subsidy for Digital and Intelligent Demonstration Workshop
2,000,000.00
of Foshan City in 2022
Subsidy for Industrial Logistics in the Second Quarter of 2022 808,200.00
The Research on the Key Technology of Full-colour Micro-LED
506,013.47
Displays with High Brightness and Contrast
The 2021 "100 Enterprises Strive for the First Place" bonus 500,000.00
The Visible Light Communication and Positioning System for the
473,516.21
Industrial Internet of Things (IIOT)
2022 Special Funds of Nanhai District, Foshan City for Promoting
347,360.00
High-quality Development of Foreign Trade
Enterprise R&D Reward and Subsidy 333,200.00
Others 4,663,061.46 4,689,768.58
Total 60,151,413.19 27,389,992.05
68. Net Gain on Exposure Hedges
Naught.
69. Gains from Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Financial assets held for trading -601,447.40 905,952.44
Trading financial liabilities -23,059,475.00
Total -601,447.40 -22,153,522.56
70. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
173
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Reporting Period Same period of last year
Long-term equity investment income
1,444,720.72 1,186,031.53
accounted by equity method
Investment income from disposal of
2,911,077.39 2,649,651.54
trading financial assets
Dividend income from holding of other
19,990,672.99 16,686,333.81
equity instrument investment
Interest income of investment in other
13,671,028.14
debt obligations during holding period
Investment income from financial
1,927,553.75
products and structural deposits
Total 38,017,499.24 22,449,570.63
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss on notes receivable -266,311.20 -512,338.76
Bad debt loss on accounts receivable -37,243,385.45 -19,672,657.13
Bad debt loss on other receivables -761,111.93 1,237,574.86
Total -38,270,808.58 -18,947,421.03
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
I. Loss on inventory valuation and
-29,752,322.32 -14,576,382.64
contract performance cost
IV. Loss on impairment of fixed assets -1,500,990.00
XI. Loss on impairment of contract
808,278.52 -313,516.09
Assets
XII. Others -8,014,761.09
Total -36,958,804.89 -16,390,888.73
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Gains/losses from the disposal of non-
-99,108.79 110,475.52
current assets
Total -99,108.79 110,475.52
74. Non-operating Income
Unit: RMB
Same period of Amount recorded in the current
Item Reporting Period
last year non-recurring profit or loss
174
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Same period of Amount recorded in the current
Item Reporting Period
last year non-recurring profit or loss
Government grants 11,000.00
Total income from scrap of non-current assets 320,853.22 37,753.32 320,853.22
Of which: income from scrap of fixed assets 320,853.22 37,753.32 320,853.22
Income from default money 1,460,120.49 11,400.00 1,460,120.49
Confiscated income 54,273.27 106,635.54 54,273.27
Others 1,219,612.57 2,274,125.62 1,219,612.57
Total 3,054,859.55 2,440,914.48 3,054,859.55
75. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Losses from damage and
156,010.36 1,547,347.79 156,010.36
scrap of non-current assets
Of which: Loss on disposal of
156,010.36 1,547,347.79 156,010.36
fixed assets
Penalty and fine for delaying
204,491.05 1,842,755.41 204,491.05
payment
Others 125,716.02 1,390,467.12 125,716.02
Total 486,217.43 4,780,570.32 486,217.43
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 31,645,407.23 34,309,667.76
Deferred income tax expense -7,013,025.11 -3,005,303.27
Total 24,632,382.12 31,304,364.49
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 278,074,638.77
Current income tax expense accounted at statutory/applicable
41,711,195.82
tax rate
Influence of applying different tax rates by subsidiaries 600,242.10
Influence of income tax before adjustment 2,642,987.97
Influence of non-taxable income -3,691,644.03
Influence of non-deductable costs, expenses and losses 9,442.91
The effect of using deductible losses of deferred income tax
-6,851,117.26
assets that have not been recognised in the previous period
Influence of unrecognised deductible temporary differences 8,588,753.73
175
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
and deductible losses
Influence of deduction -18,377,479.12
Income tax expenses 24,632,382.12
77. Other Comprehensive Income
Refer to Note VII Notes to Main Items of Consolidated Financial Statements-57 for details.
78. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash generated from other operating activities
Unit: RMB
Item Reporting Period Same period of last year
Margin 22,370,050.64 35,010,552.18
Deposit interest 22,332,393.90 19,310,323.07
Income from subsidy 20,458,063.38 10,420,346.33
Income from waste 14,076,991.86 12,864,885.36
Rental income from property and
2,272,907.82 3,406,219.56
equipment, utility
Others 37,878,011.81 60,095,266.63
Total 119,388,419.41 141,107,593.13
Cash used in other operating activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 61,546,270.39 56,194,828.30
Selling expense paid in cash 46,645,367.15 31,789,893.32
Finance costs paid in cash 1,012,751.95 1,521,292.79
Returned cash deposit 52,147,104.25 28,216,695.73
Others 31,406,796.05 31,773,841.24
Total 192,758,289.79 149,496,551.38
(2) Cash Related to Investing Activities
Cash generated from other investing activities
Naught.
Significant cash received related to investing activities
Naught.
Notes to other cash payments related to financing activities:
Naught.
Cash used in other investing activities
Unit: RMB
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Reporting Period Same period of last year
Others 360,759.99
Total 360,759.99
(3) Cash Related to Financing Activities
Cash generated from other financing activities
Unit: RMB
Item Reporting Period Same period of last year
Recapture bank acceptance bill margin 7,224,809.91 381,437.71
Total 7,224,809.91 381,437.71
Cash used in other financing activities
Unit: RMB
Item Reporting Period Same period of last year
Payment for cash deposit of bank
10,803,556.41 2,124,043.19
acceptance bills
Payment for financing intermediary fees,
211,897.22
etc
Others 485,855.80 179,384.83
Total 11,501,309.43 2,303,428.02
Changes in liabilities arising from financing activities
Applicable □ Not applicable
Unit: RMB
Beginning Increase Decrease
Item Ending balance
balance Cash Non-cash Cash Non-cash
Short-term
220,019,877.73 89,896,989.00 85,000,000.00 100,066,866.73 124,850,000.00
borrowings
Long-term 10,114,335.2 47,114,921.0
253,093,421.29 110,214,340.57 51,909,636.00 274,397,540.10
loans 7 3
Other payables
- equity transfer 5,000,000.00 5,000,000.00
payments
Non-current
64,060,020.1 27,774,936.9
liabilities due 343,914,214.45 380,199,297.64
4 5
within one year
Leasing
4,310,967.92 7,958,032.33 433,063.09 9,858,984.02 1,976,953.14
liabilities
82,132,387.7 184,815,708.
Total 826,338,481.39 200,111,329.57 137,342,699.09 786,423,790.88
4 73
(4) Explanation for Presentation of Cash Flows on a Net Basis
Naught.
177
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(5) Significant Activities and Financial Impact that Do Not Involve Current Cash Receipts and
Disbursements but Affect the Company’s Financial Position or May Affect the Company’s Cash Flows in
the Future
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 generated
from/used in operating activities:
Net profit 253,442,256.65 225,105,288.29
Add: Provision for impairment of assets 75,229,613.47 35,338,309.76
Depreciation of fixed assets, oil-gas assets,
263,094,158.49 261,275,385.66
and productive living assets
Depreciation of right-of-use assets 4,097,193.56 4,213,175.21
Amortisation of intangible assets 10,549,312.38 6,138,499.52
Amortisation of long-term deferred expenses 79,925,639.97 33,792,488.83
Loss from disposal of fixed assets, intangible
99,108.79 -110,475.52
assets and other long-term assets (gains: negative)
Losses from scrapping of fixed assets (gains:
-164,842.86 1,509,594.47
negative)
Losses from changes in fair value (gains:
601,447.40 22,153,522.56
negative)
Finance costs (gains: negative) -6,093,464.10 14,255,244.44
Investment loss (gains: negative) -38,017,499.24 -22,449,570.63
Decrease in deferred income tax assets
-18,244,273.75 -3,951,966.78
(increase: negative)
Increase in deferred income tax liabilities (“-”
-4,067,382.64 946,663.51
for decrease)
Decrease in inventory (“-” for increase) 227,917,770.99 367,566,004.75
Decrease in operating receivables (“-” for
-250,051,969.33 -492,079,133.11
increase)
Increase in operating payables (“-” for
-219,105,024.82 -65,833,973.76
decrease)
Others 5,380,999.65 0.00
Net cash generated from/used in operating
384,593,044.61 387,869,057.20
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
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Supplemental information Reporting Period Same period of last year
3.Net increase/decrease of cash and cash equivalents:
Ending balance of cash 2,687,757,730.67 1,974,721,331.65
Less: Beginning balance of cash 3,101,252,943.88 1,945,971,307.26
Add: Ending balance of cash equivalents
Less: Beginning balance of cash equivalents
Net increase in cash and cash equivalents -413,495,213.21 28,750,024.39
(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 2,687,757,730.67 3,101,252,943.88
Including: Cash on hand 41,943.58 42,466.76
Bank deposits available on demand 2,667,512,806.58 3,097,947,293.67
Other monetary assets on demand 20,202,980.51 3,263,183.45
III. Ending balance of cash and cash equivalents 2,687,757,730.67 3,101,252,943.88
(5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on Their Usage
Naught.
(6) Monetary Funds Other than Cash and Cash Equivalents
Unit: RMB
Reason for not classifying the
Item Reporting Period Same period of last year item as cash and cash
equivalents
Bill deposit, guarantee
deposit, pre-sale house 492,360,246.76 535,698,818.93 Specific purpose
payment, etc
Interest receivable on undue
bank deposits and term
To-be-received interest 11,490,996.27 8,255,130.73
deposits as of the end of the
Reporting Period
Total 503,851,243.03 543,953,949.66
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(7) Notes on Other Significant Activities
Naught.
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the same period of last year and the corresponding
amount:
Naught.
81. 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 240,519,383.87
Including: USD 30,122,860.10 7.1268 214,679,599.36
EUR 163,298.07 7.6617 1,251,140.82
HKD 51,810.41 0.91268 47,286.32
IDR 55,273,327,410.47 0.000444 24,541,357.37
Accounts receivable 367,246,194.87
Including: USD 50,952,638.99 7.1268 363,129,267.55
EUR 446,529.92 7.6617 3,421,178.29
HKD 24,796.39 0.91268 22,631.17
IDR 1,516,031,205.42 0.000444 673,117.86
Other receivables 1,391.14
Of which: IDR 3,133,197.00 0.000444 1,391.14
Accounts payable 23,156,860.15
Including: USD 2,631,991.97 7.1268 18,757,680.37
EUR 189,530.79 7.6617 1,452,128.05
IDR 6,637,503,901.41 0.000444 2,947,051.73
Other current assets 286,788.25
Of which: IDR 645,919,472.76 0.000444 286,788.25
(2) Notes to Overseas Entities Including: for Significant Overseas 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
82. Leases
(1) The Company Served as the Lessee:
Applicable □ Not applicable
Item Amount
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Amount
Simplified short-term lease charges recognised in the cost of the related
198,758.23
assets or in current profit or loss
Total cash outflows related to leases 2,508,044.34
Variable lease payments that are not covered in the measurement of the lease liabilities
□Applicable Not applicable
Simplified short-term lease or lease expense for low-value assets
□Applicable Not applicable
Circumstances involving sale and leaseback transactions
Naught.
(2) The Company Served as the Lessor:
Operating leases with the Company as lessor
Applicable □ Not applicable
Unit: RMB
Of which: income related to variable
Item Lease income lease payments not included in lease
receipts
House lease and others 7,202,722.94 0.00
Total 7,202,722.94 0.00
Finance leases with the Company as lessor
□Applicable Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable Not applicable
Reconciliation of undiscounted lease receipts to net investment in leases
Naught.
(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer or
Distributor
□Applicable Not applicable
83. Data Resources
Naught.
84. Others
Naught.
181
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
VIII. Research and Development Expenses
Unit: RMB
Item Reporting Period Same period of last year
Personnel and labour costs 126,235,339.99 108,806,040.39
Direct investment expenses 111,116,478.82 72,326,399.46
Depreciation expenses and long-term
22,649,859.13 22,819,097.36
prepaid expenses
Cost of outsourcing external R&D 3,917,155.30 188,759.61
Design fees 1,696,516.00 406,394.30
Amortisation charge of intangible assets 28,166.42 125,382.49
Other Fees 23,197,968.13 23,046,628.13
Total 288,841,483.79 227,718,701.74
Including: research and development
288,841,483.79 227,718,701.74
expenditures that are expensed
Note: 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.
1. Research and Development Projects Which are Eligible for Capitalisation
Naught.
2. Significant Outsourced Research and Development Projects in Progress
Naught.
IX. Change of Consolidation Scope
1. Business Combination Involving Entities not Under Common Control
(1) Business Combination Not under the Same Control during the Current Period
Naught.
(2) Combination Cost and Goodwill
Naught.
(3) Identifiable Assets and Liabilities of the Acquiree on the Acquisition Date
Naught.
182
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(4) Gain or Loss from Remeasurement of Equity Interests Held before the Acquisition Date at Fair Value
Whether there were several transactions to realise business combinations and acquire controls during the Reporting Period
□Yes No
(5) Notes to Failure to Reasonably Determine the Combination Consideration or the Fair Value of Identifiable Assets and
Liabilities of the Acquiree on the Acquisition Date or at the End of the Current Period
Naught.
(6) Other Notes
Naught.
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Current Period
Naught.
(2) Combination Cost
Naught.
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Naught.
3. Counter Purchase
Basic information of the transactions, basis of the counter purchase, basis and whether assets and liabilities retained by the listed
company constitute business, determination of the combination cost, the amount and calculation of the equity amount adjusted in
treatment for the equity transaction:
Naught.
4. Disposal of Subsidiary
Whether there were any transactions or events during the period in which control of the subsidiary was lost?
□Yes No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□Yes No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and
relevant information:
183
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Fozhao Huaguang (Maoming) Technology Co., Ltd. completed its business registration in April of the current
period, and the Company completed its capital injection in May. Huaguang (Maoming) has been included in the
merger scope since May 2024;
Gaozhou NationStar Lighting Technology Co., Ltd. completed its business registration in April of the current
period, and NationStar completed its capital injection in May. Gaozhou NationStar has been included in the
merger scope since May 2024.
6. Others
Naught.
X. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Unit: RMB
Main Holding percentage
Name of the Registered Registration Nature of Way of
operating
subsidiary capital place business Direct Indirect gaining
place
Foshan Fozhao
Zhicheng Production and Newly
50,000,000.00 Foshan Foshan 100.00%
Technology sales established
Co., Ltd.
FSL Chanchang
Production and Newly
Lighting Co., 72,782,944.00 Foshan Foshan 100.00%
sales established
Ltd.
Foshan Taimei
Production and Newly
Times Lamp 500,000.00 Foshan Foshan 70.00%
sales established
Co., Ltd.
Foshan
Electrical &
Production and Newly
Lighting 35,418,439.76 Xinxiang Xinxiang 100.00%
sales established
(Xinxiang) Co.,
Ltd.
Nanjing Fozhao
Lighting
Production and
Components 41,683,200.00 Nanjing Nanjing 100.00% Acquired
sales
Manufacturing
Co., Ltd.
FSL Zhida
Electric Production and Newly
38,150,000.00 Foshan Foshan 66.84%
Technology sales established
Co., Ltd.
Foshan Haolaite
Production and Newly
Lighting Co., 17,158,000.00 Foshan Foshan 51.00% 10.53%
sales established
Ltd.
NationStar 1,436,419.00 Germany Germany Trade 61.53% Business
184
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Main Holding percentage
Name of the Registered Registration Nature of Way of
operating
subsidiary capital place business Direct Indirect gaining
place
Optoelectronics combination
(Germany) Co., under the
Ltd. same control
Foshan Kelian Business
New Energy Property combination
170,000,000.00 Foshan Foshan 100.00%
Technology development under the
Co., Ltd. same control
Fozhao
(Hainan) Production and Newly
200,000,000.00 Haikou Haikou 100.00%
Technology sales established
Co., Ltd.
Nanning
Manufacturing
Liaowang Auto 35,055,700.00 Nanning Nanning 53.79% Acquired
of vehicle lamps
Lamp Co., Ltd.
Liuzhou Guige
Lighting Manufacturing
30,000,000.00 Liuzhou Liuzhou 53.79% Acquired
Technology of vehicle lamps
Co., Ltd.
Liuzhou Guige Manufacturing
Fuxuan of automotive
20,000,000.00 Liuzhou Liuzhou 53.79% Acquired
Technology electronic
Co., Ltd. products
Chongqing
Guinuo
Manufacturing
Lighting 30,000,000.00 Chongqing Chongqing 53.79% Acquired
of vehicle lamps
Technology
Co., Ltd.
Qingdao Guige
Lighting Manufacturing
30,000,000.00 Qingdao Qingdao 53.79% Acquired
Technology of vehicle lamps
Co., Ltd.
Indonesia
Manufacturing
Liaowang Auto 40,873,066.42 Indonesia Indonesia 53.79% Acquired
of vehicle lamps
Lamp Co., Ltd.
Business
Foshan Sigma
Business combination
Venture Capital 50,000,000.00 Foshan Foshan 100.00%
services under the
Co., Ltd.
same control
Fozhao
Huaguang
Production and Newly
(Maoming) 22,920,000.00 Maoming Maoming 100.00%
sales established
Technology
Co., Ltd.
Foshan Business
NationStar Electronic combination
618,477,169.00 Foshan Foshan 21.48%
Optoelectronics manufacturing under the
Co., Ltd. same control
Foshan Business
NationStar Electronic combination
820,000,000.00 Foshan Foshan 21.48%
Semiconductor manufacturing under the
Co., Ltd. same control
Foshan Guoxing Business
Electronic
Electronic 10,000,000.00 Foshan Foshan 21.48% combination
manufacturing
Manufacture under the
185
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Main Holding percentage
Name of the Registered Registration Nature of Way of
operating
subsidiary capital place business Direct Indirect gaining
place
Co., Ltd. same control
Nanyang Baoli Business
Vanadium combination
100,000,000.00 Henan Nanyang Mining 12.89%
Industry Co., under the
Ltd. same control
Guangdong Business
New Electronic combination
5,000,000.00 Guangzhou Guangzhou Trade 21.48%
Information under the
Ltd. same control
Guangdong
Business
Fenghua
Electronic combination
Semiconductor 200,000,000.00 Guangzhou Guangzhou 21.45%
manufacturing under the
Technology
same control
Co., Ltd.
Gaozhou
NationStar
Electronic Newly
Lighting 30,000,000.00 Maoming Maoming 21.48%
manufacturing established
Technology
Co., Ltd.
Notes to holding proportion in subsidiary different from voting proportion:
Naught.
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but not
controlling the investee:
Naught.
Significant structural entities and controlling basis in the scope of combination:
Naught.
Basis of determining whether the Company is the agent or the principal:
Naught.
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Balance of non-
Name of the subsidiary proportion of non- attributable to the non- distributed to non- controlling interests at
controlling interests controlling interests controlling interests the period-end
Nanning Liaowang
46.21% 12,280,230.29 469,759,697.56
Auto Lamp Co., Ltd.
Foshan NationStar
Optoelectronics Co., 78.52% 44,120,712.70 29,139,436.44 2,988,225,565.90
Ltd.
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
186
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Naught.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Name of
the Non- Non- Non- Non-
Current Total Current Total Current Total Current Total
subsidiary current current current current
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
2,5
Nanning 1,602 21, 1,590 2,48
919,0 1,508,7 896,9 1,512, 1,567,7
Liaowang ,836, 919 65,611, 1,574,38 ,859, 7,84 54,928,
82,69 77,464. 82,94 829,42 58,343.
Auto Lamp 374.9 ,06 525.40 8,989.57 943.2 2,89 920.36
0.98 17 8.71 2.99 35
Co., Ltd. 1 5.8 6 1.97
9
6,4
Foshan
4,002 2,455 57, 3,967 2,559 6,52
NationStar 2,253,6 2,340, 2,722,9
,485, ,284, 769 378,735 2,632,41 ,291, ,121, 6,41 382,388
Optoelectro 75,523. 584,27 73,125.
032.1 925.6 ,95 ,425.63 0,948.75 374.5 730.0 3,10 ,851.56
nics Co., 12 3.66 22
9 1 7.8 2 6 4.58
Ltd.
0
Unit: RMB
Reporting Period Same period of last year
Name of Total Cash flows Total Cash flows
the Operating comprehen from Operating comprehen from
subsidiary Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Nanning
Liaowang 835,320,1 28,661,21 27,445,52 15,328,78 720,209,3 22,341,74 24,793,71 8,225,803
Auto Lamp 28.96 4.92 7.70 6.43 06.91 9.52 6.86 .73
Co., Ltd.
Foshan
NationStar
1,853,708 56,242,43 56,242,43 140,461,3 1,758,744 53,804,45 53,804,45 102,905,0
Optoelectro
,942.97 2.00 2.00 98.36 ,095.83 2.96 2.96 50.77
nics Co.,
Ltd.
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught.
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of Consolidated
Financial Statements
Naught.
187
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Naught.
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner’s Equity Attributable to the
Company as the Parent
Naught.
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught.
(2) Main Financial Information of Significant Joint Ventures
Naught.
(3) Main Financial Information of Significant Associated 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 180,633,275.87 179,188,555.15
The total of following items according to
the shareholding proportions
--Net profit 1,444,720.72 1,186,031.53
--Total comprehensive income 1,444,720.72 1,186,031.53
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught.
(7) The Unrecognised Commitment Related to Investment to Joint Ventures
Naught.
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught.
4. Significant Common Operation
Naught.
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
Naught.
6. Others
Naught.
XI. Government Grants
1. Government Grants Recognised at the End of the Reporting Period at the Amount Receivable
□Applicable Not applicable
Reasons for failing to receive government grants in the estimated amount at the estimated point in time
□Applicable Not applicable
2. Liability Items Involving Government Grants
Applicable □ Not applicable
Unit: RMB
Amount
Amount
recorded into
carried Other
Amount of non-
Accounting Beginning forward other changes in Ending Related to
newly operating
items balance income in the the Reporting balance assets/income
subsidy income in the
Reporting Period
Reporting
Period
Period
Deferred 63,950,864.7 11,549,664.0 59,164,700. Related to
6,763,500.00
income 8 2 76 assets
Deferred 11,234,596.4 5,421,000.00 8,402,824.17 8,252,772.3 Related to
189
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
income 9 2 income
3. Government Grants Recognised in Profit or Loss for the Current Period
Applicable □ Not applicable
Unit: RMB
Accounting items Reporting Period Same period of last year
Other income 60,151,413.19 27,389,992.05
Non-operating income 11,000.00
XII. Risks Associated with Financial Instruments
1. Various Types of Risks Arising from Financial Instruments
The primary financial instruments of the Company include equity investments, bills receivable, accounts
receivable, other receivables, accounts payable, bills payable, other payables, short-term borrowings, long-term
borrowings, etc. The details of each financial instrument see relevant items of Note V.
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.
(1) Credit Risk
Credit risk was one party of the contract failed to fulfil 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.
(2) 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 centralised controlled by the Financial Department
of the Company. The liquidity risk is centralised 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
190
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
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.
(3) 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 refers to the risk of loss due to exchange rate changes. The Company’s exposure to foreign
exchange risk is mainly related to the US dollar and the euro. As of 30 June 2024, the Company’s assets and
liabilities were in RMB, except for the balances of USD, EUR, HKD and IDR as set out in this Note VII-81,
Foreign Currency Monetary Items. Foreign exchange risk arising from the assets and liabilities of such foreign
currency balances may have a certain impact on the Company’s operating results.
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 interest rates. The interest rate risk faced by the Company mainly comes from bank
borrowings. By establishing a good bank-enterprise relationship, the Company reasonably designed the credit
line, credit variety and credit period, ensured sufficient credit line of banks, and met various short-term
financing needs of the Company with preferential loan interest rates. As of 30 June 2024, the Company’s fixed
interest rate loan balance was RMB776,003,401.62, accounting for 100% of the total loan balance, and the risks
in this part were controllable.
3) Other Price Risk
Naught.
2. Hedge
(1) The Company Carries out Hedging Business for Risk Management
□Applicable Not applicable
(2) The Company Conducts Eligible Hedging Operations and Applies Hedge Accounting
Naught.
191
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
(3) The Company Conducts Hedging Operations for Risk Management, Expects to Achieve Its Risk Management
Objectives, but Does Not Apply Hedge Accounting
□Applicable Not applicable
3. Financial Assets
(1) Classification of Transfer Methods
Applicable □ Not applicable
Unit: RMB
Nature of Amount of
Transfer
financial assets financial assets Derecognition Basis for determining derecognition
methods
transferred transferred
Due to the low credit risk and deferred payment
risk of bank acceptance bills in accounts receivable
Accounts
Bills financing, and the transfer of interest rate risk
receivable 288,485,094.80 Yes
endorsement related to the bills to the bank, it can be concluded
financing
that almost all risks and rewards of ownership of
the bills have been transferred
Bills Notes Almost all risks and rewards related to the
74,782,858.81 Yes
endorsement receivable ownership of the bills have been transferred
Bills Notes Almost all risks and rewards related to the
139,426,977.10 Yes
discounting receivable ownership of the bills have been transferred
Bills Notes Retaining almost all risks and rewards, including
141,027,788.82 No
endorsement receivable default risks associated with them
Total 643,722,719.53
(2) Financial Assets Derecognised due to Transfer
Applicable □ Not applicable
Unit: RMB
Ways of transferring financial Derecognised financial Gains or losses related to
Item
assets asset amount derecognition
Accounts receivable financing Bills endorsement 288,485,094.80
Notes receivable Bills endorsement 74,782,858.81
Notes receivable Bills discounting 139,426,977.10
Total 502,694,930.71
(3) Continued Involvement in the Transfer of Assets Financial Assets
Applicable □ Not applicable
Unit: RMB
Amount of liabilities formed
Amount of assets formed due
Item Asset transfer methods due to continuous
to continuous involvement
involvement
Notes receivable
Of which: Bank’s acceptance
Bills endorsement 141,027,788.82
bill
192
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Total 141,027,788.82
XIII. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Level 1 Fair value Level 2 Fair value Level 3 Fair value
Total
measurement measurement measurement
I. Consistent fair value
-- -- -- --
measurement
1. Trading financial
1,103,196.07 105,825,131.94 106,928,328.01
assets
(1)Financial assets at
fair value through 1,103,196.07 105,825,131.94 106,928,328.01
profit or loss
1) Wealth management
105,825,131.94 105,825,131.94
products
2) Equity instrument
1,003,796.07 1,003,796.07
investment
3) Other 99,400.00 99,400.00
2. Other Investments in
1,124,498,738.94 1,124,498,738.94
Debt Obligations
3. Other equity
633,832,982.60 40,578,568.80 674,411,551.40
instrument investment
4. Accounts receivable
296,834,332.74 296,834,332.74
financing
Total assets measured
at fair value on a 634,936,178.67 1,230,323,870.88 337,412,901.54 2,202,672,951.09
recurring basis
II. Inconsistent fair
-- -- -- --
value measurement
2. Basis for Determining the Market Value of Continuing and Discontinuing Level 1 Fair Value
Measurement Items
Level 1 fair value measurements are determined based on the market price of equities at the balance sheet date and
the mid-price of the RMB exchange rate published by the State Administration of Foreign Exchange as quoted
prices in an active market.
3. Continuing and Discontinuing Level 2 Fair Value Measurement Items, Qualitative and Quantitative
Information on the Valuation Techniques Used and Significant Parameters
The fair value of financial products and other debt investment subscribed by the Group that are measured at fair
value is determined by reference to the expected rate of return provided by the financial institutions.
193
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
4. Continuing and Discontinuing Level 3 Fair Value Measurement Items, Qualitative and Quantitative
Information on the Valuation Techniques Used and Significant Parameters
(1) The Company measured the investment at cost as a reasonable estimate of fair value because there were no
significant changes in the business environment and operating and financial conditions of the investee, GF Bank.
(2) The Company measured the investee, Shenzhen Zhonghao (Group) Company Limited, at nil as a reasonable
estimate of fair value due to the deterioration of its business environment and operating and financial conditions.
(3) The Company measured the investment at cost as a reasonable estimate of fair value because there were no
significant changes in the business environment and operating and financial conditions of the investee companies,
Foshan Nanhai District United Guangdong New Light Source Industry Innovation Centre, Beijing Guang Rong
Union Semiconductor Lighting Industry Investment Centre and Guangdong Rising Finance Co., Ltd.
(4) The receivables financing represents bank acceptance notes held by the Company with a short remaining
maturity, the face value of which approximates the fair value and the face amount is used to recognise the fair
value at the statement date.
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning Carrying
Value and the Ending Carrying Value and Sensitivity Analysis on Unobservable Parameters
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 Valuation Techniques in the Reporting Period and Reasons for the 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. Others
Naught.
194
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
XIV. Related Party and Related-party Transactions
1. Information on the Company as the Parent
Proportion of
Proportion of share
voting rights
held by the
owned by the
Company 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 12.52% 12.52%
Company Limited
Guangdong Rising
Holdings Group Guangzhou Investment RMB10 billion 8.38% 8.38%
Co., Ltd.
Guangdong
Electronics
Production and
Information Guangzhou RMB1,162 million 8.49% 8.49%
sales
Industry Group
Ltd.
Rising Investment
RMB360 million
Development Hong Kong Investment 1.65% 1.65%
and HKD1 million
Limited
Total 31.04% 31.04%
Notes to the Company as the parent
Hongkong Wah Shing Holding Company Limited (hereinafter referred to as “Hongkong Wah Shing”), the largest shareholder of
the Company, is a wholly-owned subsidiary of Guangdong Electronics Information Industry Group Ltd. (hereinafter referred to as
“Electronics Group”), and Electronics Group, Shenzhen Rising Investment Development Co., Ltd. (hereinafter referred to as
“Shenzhen Rising”), Guangdong Rising Finance Holding Co., Ltd. (renamed Guangdong Rising Capital Investment Co., Ltd. on
13 December 2021, hereinafter referred to as “Rising Capital”) and Rising Investment Development Limited (hereinafter referred
to as “Rising Investment”) are wholly-owned subsidiaries of Guangdong Rising Holdings Group Co., Ltd. (hereinafter referred to
as “Rising Holdings Group”). According to the relevant provisions of the Company Law and the Measures for the Administrative
Measures on Acquisition of Listed Companies, Electronics Group, Shenzhen Rising, Rising Capital and Rising Investment are
concerted actors, and Rising Holdings Group becomes the actual controller of the Company. In December 2021, Shenzhen Rising
and Rising Capital transferred all their shares of the Company to Rising Holdings Group. After the transfer, Rising Holdings
Group, Electronics Group and Rising Investment acted in concert with each other. In February 2022, the Company repurchased
and cancelled part of its shares, and the proportion of shares held by the above parties acting in concert was 30.82% in aggregate;
in November 2023, the Company made a non-public offering of 186,783,583.00 shares of A-shares to a specific object, and Rising
Group subscribed 46,695,895.00 shares, and the proportion of shares held by the above parties acting in concert was 30.12%. In
June 2024, Electronic Group and Hongkong Wah Shing cumulatively increased their holdings of the Company’s shares by
15,487,850 shares through call auction on the Shenzhen Stock Exchange trading system. As of 30 June 2024, the total proportion
of shares held by the aforementioned concerted action parties was 31.04%.
The final controller of the Company is Guangdong Rising Holdings Group Co., Ltd.
2. Subsidiaries of the Company
Refer to Note X Equity in Other Entities-1. Equity in Subsidiaries for details of the Company’s subsidiaries.
195
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note X Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of significant joint
ventures or associated enterprises of the Company.
List of other joint ventures and associated enterprises that made connected transactions with the Company generating balance
during or before the Reporting Period:
Naught.
4. Information on Other Related Parties
Name of other related parties Relationship with the Company
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
Dongguan Hengjian Environmental Protection Technology Co., Ltd. Under same actual controller
Foshan Fulong Environmental Technology Co., Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology Holding Co., Ltd. Under same actual controller
Guangdong Rising Research and Development Institute Co. Ltd. Under same actual controller
Guangdong Heshun Property Management Co., Ltd. Rising
Under same actual controller
International Building Branch
Guangdong Huajian Enterprise Group Co., Ltd. Under same actual controller
Guangdong Electronics Information Industry Group Ltd. Under same actual controller
Guangdong Rising Finance Co., Ltd. Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Guangdong Zhongjin Lingnan Engineering Technology Co., Ltd. Under same actual controller
Guangdong Zhongnan Construction Co., Ltd. Under same actual controller
Guangdong Zhongren Group Construction Co., Ltd Under same actual controller
Guangdong Zhuyuan Construction Engineering Co., Ltd. Under same actual controller
Guangzhou Haixinsha Industrial Co., Ltd. Under same actual controller
Guangzhou Wanshun Investment Management Co., Ltd. Under same actual controller
Jiangmen Dongjiang Environmental Company Limited Under same actual controller
Zhuhai Doumen District Yongxingsheng Environmental Industry
Under same actual controller
Waste Recovery and Comprehensive Treatment Co., Ltd.
Shenzhen Longgang Dongjiang Industrial Waste Treatment Co., Ltd. Under same actual controller
Shenzhen Yuepeng Construction Co., Ltd. Under same actual controller
Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. Under same actual controller
Zhuhai Dongjiang Environmental Protection Technology Co., Ltd. Under same actual controller
Shandong Zhongjin Lingnan Copper Co., Ltd. Under same actual controller
Guangdong Great Wall Hotel Co., Ltd. Under same actual controller
Shenzhen Nanhe Mobile Communication Technology Co., Ltd. Under same actual controller
Guangdong Xintao Microelectronics Co., Ltd. Under same actual controller
Rising Nonferrous Metals Share Co., Ltd. Under same actual controller
Guangdong Huajian Engineering Construction Co., Ltd. Under same actual controller
Guangzhou Shengfeng Catering Management Service Co., Ltd. Under same actual controller
Guangdong Rising Commercial Development Co., Ltd.
Under same actual controller
(Renamed Guangzhou Tianxin Property Management Company)
Guangzhou Huajian Business Development Co., Ltd. Under same actual controller
Hongkong Wah Shing Holding Company Limited Under same actual controller
Rising Investment Development Limited Under same actual controller
Prosperity (China) Electrical Company Limited Enterprise controlled by related natural person
Hangzhou Times Lighting Electric Appliances Co., Ltd. Enterprise controlled by related natural person
Nanning Ruixiang Industrial Investment Co., Ltd. Enterprise significantly affected by related natural person
Under same actual controller (not included into the
Guangdong Electronic Technology Research Institute consolidation scope of Rising Holdings Group since
October 2023)
Guangdong The Great Wall Building Co., Ltd. Enterprises controlled by the same actual controller
196
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Name of other related parties Relationship with the Company
(cancelled in August 2023)
5. Transactions with Related Parties
(1) Information on Acquisition of Goods and Reception of Labour Service
Information on acquisition of goods and reception of labour service
Unit: RMB
Name of related Nature of The approval trade Whether exceed Same period of
Reporting Period
party transaction credit trade credit or not last year
Guangdong
Fenghua
Purchase of
Advanced 2,264,120.89 16,000,000.00 No 1,427,073.05
materials
Technology
Holding Co., Ltd.
Guangdong Yixin
Changcheng Receiving of
47,493,226.47 42,453,620.42
Construction labour service
Group
Guangdong
Zhongnan Receiving of
8,266,347.72 58,500,517.50
Construction Co., labour service
Ltd.
Guangdong
Zhongren Group Receiving of
2,407,583.18 26,677,655.81
Construction Co., labour service
Ltd
Shenzhen
Yuepeng Receiving of
1,886,492.75 754,528.33
Construction Co., labour service
Ltd.
Shenzhen Nanhe
Mobile
Receiving of
Communication 114,801.77
labour service
Technology Co.,
Ltd.
Zhuhai Dongjiang
Environmental
Receiving of
Protection 271,319.56 13,133.52
labour service
Technology Co.,
Ltd.
Foshan Fulong
Environmental Receiving of
70,467.96 162,917.93
Technology Co., labour service
Ltd.
3,000,000.00 No
Shenzhen Nanhe
Mobile
Purchase of
Communication 16,672.57
materials
Technology Co.,
Ltd.
Shenzhen
Longgang Receiving of
14,375.09 116,673.57
Dongjiang labour service
Industrial Waste
197
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Name of related Nature of The approval trade Whether exceed Same period of
Reporting Period
party transaction credit trade credit or not last year
Treatment Co.,
Ltd.
Zhuhai Doumen
District
Yongxingsheng
Environmental
Receiving of
Industry Waste 4,528.30
labour service
Recovery and
Comprehensive
Treatment Co.,
Ltd.
Jiangmen
Dongjiang Receiving of
2,169.81 69,970.76
Environmental labour service
Company Limited
Dongguan
Hengjian
Environmental Receiving of
76,930.19
Protection labour service
Technology Co.,
Ltd.
Guangdong The
Receiving of
Great Wall 22,053.55
labour service
Building Co., Ltd.
Guangzhou
Shengfeng
Receiving of
Catering 1,362,571.29
labour service
Management
Service Co., Ltd.
Guangdong Rising
Commercial
Development Co.,
12,000,000.00 No
Ltd. (renamed Receiving of
42,887.72 18,779.44
Guangzhou labour service
Tianxin Property
Management
Company)
Guangdong Great
Receiving of
Wall Hotel Co., 5,740.00
labour service
Ltd.
Guangzhou
Receiving of
Haixinsha 513,226.63 467,135.78
labour service
Industrial Co., Ltd.
Guangzhou 9,000,000.00 No
Huajian Business Receiving of
87,421.36
Development Co., labour service
Ltd.
Prosperity Lamps
Purchase of
& Components 3,000,000.00 No 57,268.76
materials
Limited
Total 64,823,953.07 43,000,000.00 No 130,818,258.61
Information of sales of goods and provision of labour service
Unit: RMB
198
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Name of related party Nature of transaction Reporting Period Same period of last year
Prosperity Lamps &
Sale of products 5,732,428.94 12,641,522.79
Components Limited
Guangdong Fenghua
Advanced Technology Sale of products 4,572,650.62 7,466,567.41
Holding Co., Ltd.
Guangdong Yixin
Changcheng Construction Sale of products 121,035.60
Group
Rising Nonferrous Metals
Sale of products 99,577.88
Share Co., Ltd.
Guangzhou Wanshun
Investment Management Co., Sale of products 59,565.75
Ltd.
Shandong Zhongjin Lingnan
Sale of products 9,102.65 223,796.46
Copper Co., Ltd.
Guangdong Zhongnan
Sale of products 3,012,466.81
Construction Co., Ltd.
Shenzhen Zhongjin Lingnan
Sale of products 710,376.99
Nonfemet Co., Ltd.
Guangdong Zhongjin Lingnan
Engineering Technology Co., Sale of products 23,113.27
Ltd.
Guangdong Zhuyuan
Construction Engineering Sale of products 12,318.58
Co., Ltd.
Guangdong Rising Holdings
Sale of products 2,787.61
Group Co., Ltd.
Total 10,594,361.44 24,092,949.92
Notes to acquisition of goods and reception of labour service
1. The pricing policy for related-party transactions between the Company and its related parties is as follows:
The pricing of related-party transactions should be market-oriented and subject to the market prices when such a
transaction occurs. The relevant funds should be paid on time according to the actual transaction.
2. The related-party transactions between the Company and its subsidiaries and between subsidiaries have been
offset during report consolidation.
(2) Connected Transactions with the Company as Entrustee/Contractor or Entruster/Contractee
The Company as entrustee/contractor:
Naught.
The Company as entruster/contractee:
Unit: RMB
Income
Name of the Name of the
Type Start date Due date Pricing basis recognised in this
entruster/contractee entrustee/contractor
Current Period
Guangdong
Foshan NationStar
Zhongren Group 30 December 31 December
Optoelectronics
Construction Co., 2020 2022
Co., Ltd.
Ltd
Fozhao (Hainan) Guangdong 30 March
14 May 2023
Technology Co., Zhongnan 2022
199
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Income
Name of the Name of the
Type Start date Due date Pricing basis recognised in this
entruster/contractee entrustee/contractor
Current Period
Ltd. Construction Co.,
Ltd.
Guangdong
Foshan Kelian New
Zhongnan 23 December
Energy Technology 23 June 2021
Construction Co., 2022
Co., Ltd.
Ltd.
Foshan Kelian New Guangdong Huajian
31 December
Energy Technology Enterprise Group 1 May 2023
2033
Co., Ltd. Co., Ltd.
Notes:
1. The Company’s subsidiary Foshan NationStar Optoelectronics Co., Ltd. entered into the General Contracting Contract of
NationStar Optoelectronics for the Survey, Design, and Construction of the Geely Industrial Park with Guangdong Zhongren
Group Construction Co., Ltd., Guangdong Architectural Design & Research Institute Co., Ltd., and CSIC International
Engineering Co., Ltd. on 30 December 2020. The above parties take charge of the survey, design, and construction of the Geely
Industrial Park. The total price of the contract is RMB509,292,500. As of the date of this report, the project is in the acceptance
inspection stage.
2. The Company’s subsidiary Fozhao (Hainan) Technology Co., Ltd. entered into the General Contracting Contract for Design and
Construction of FSL Hainan Industrial Park Phase I with Guangdong Zhongnan Construction Co., Ltd. and Guangdong
Architectural Design & Research Institute Co., Ltd. on 30 March 2022. The above parties take charge of the design and
construction of FSL Hainan Industrial Park. The total price of the contract is RMB179,051,600, and the planned total construction
period is 390 calendar days (50 days for design and 340 days for construction). As of the date of this report, the project has not yet
reached its intended usable state.
3. The Company’s subsidiary Foshan Kelian New Energy Technology Co., Ltd. entered into the General Contracting Contract for
Design and Construction of the Foshan Kelian Building Decoration Engineering with Guangdong Zhongnan Construction Co., Ltd.
and Guangdong Architectural Design & Research Institute Co., Ltd. on 23 June 2021. The above parties take charge of the survey,
design and construction of Kelian Building. The total price of the contract is RMB189,070,200, and the planned total construction
period is 240 calendar days. Among them, except for the self-used layers, the construction period shall be counted from the date
when the construction actually begins. As of the date of this report, the office self use floor of Building 2 has been completed and
passed the final acceptance inspection. The decoration work for the public areas and apartments on floors 4-8 of Building 2 has
been completed, and Building 1 is currently in the stage of detailed construction drawing design.
4. On 21 April 2023, the Company’s subsidiary Foshan Kelian New Energy Technology Co., Ltd. entered into the Contract on the
Operation and Investment Attraction Services for Kelian Building with Guangdong Huajian Enterprise Group Co., Ltd.
(hereinafter referred to as “Huajian Group”), and Foshan Kelian entrusted some of the properties of Kelian Building to Huajian
Group for operation. During the operation period, Huajian Group paid a guaranteed rental income to Foshan Kelian. As of the date
of this report, the property entrusted for operation is under renovation.
(3) Information on Connected Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Type of assets leased
in the Reporting Period in the same period of last year
Guangdong Rising Research Plant 647,933.71 582,347.85
200
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
The lease income confirmed The lease income confirmed
Name of lessee Type of assets leased
in the Reporting Period in the same period of last year
and Development Institute
Co., Ltd. and its majority-
owned subsidiaries
The Company served as the lessee:
Unit: RMB
Rental expenses of
Variable lease payments
short-term lease
not included in the Income expense of lease Increased right-of-use
simplified treated and Paid rent
Type of measurement of lease liabilities undertaken assets
low-value asset lease (if
Name of lessor assets liabilities (if applicable)
applicable)
leased
Same Same Same Same Same
Reporting Reporting Reporting Reporting Reporting
period of period of period of period of period of
Period Period Period Period Period
last year last year last year last year last year
Guangdong
The Great Wall Operating
64,954.29 1,801.29
Building Co., lease
Ltd.
Guangdong
Rising
Commercial
Development
Co., Ltd.
Operating
(renamed 166,520.05 65,059.65 3,420.80 1,211.87 291,156.20
lease
Guangzhou
Tianxin
Property
Management
Company)
Notes to connected lease:
Naught.
(4) Connected Guarantee
Naught.
(5) Interbank Borrowing and Lending of Capital by Connected Party
Naught.
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Naught.
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting Period Same period of last year
201
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Reporting Period Same period of last year
Chairman of the Board 412,195.28 486,397.79
General Manager 481,683.12 475,655.67
Chairman of the Supervisory Committee 615,288.82 467,681.15
Secretary of the Board 418,182.04 275,841.67
Chief Financial Officer 475,438.92 466,313.55
Others 2,568,209.82 3,782,176.00
Total 4,970,998.00 5,954,065.83
(8) Other Connected Transactions
In accordance with the Financial Service Agreement signed by the Company, the total maximum daily deposit
balance of the Company and its holding subsidiaries deposited in Guangdong Rising Finance Co., Ltd. shall not
exceed RMB1.5 billion, and the general credit limit provided by Guangdong Rising Finance Co., Ltd. for the
Company and its holding subsidiaries shall not exceed RMB2 billion. As of 30 June 2024, the deposit balance
of the Company and its holding subsidiaries deposited in Guangdong Rising Finance Co., Ltd. is
RMB1,345,958,900. The outstanding interest receivable is RMB6,007,900.
6. Receivables from and Payables to Related Parties
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Name of related
Item Provision for Provision for
party Carrying amount Carrying amount
impairment impairment
Monetary capital- Guangdong Rising
6,007,939.77 5,226,458.64
accrued interest Finance Co., Ltd.
Prosperity Lamps
Accounts
& Components 3,684,287.87 110,528.64 7,510,483.08 225,314.49
receivable
Limited
Guangdong
Fenghua
Accounts
Advanced 3,671,208.41 73,424.17 2,992,978.95 59,859.58
receivable
Technology
Holding Co., Ltd.
Guangdong
Accounts Zhongnan
3,423,458.25 339,854.41 4,612,923.23 188,722.11
receivable Construction Co.,
Ltd.
Guangdong Yixin
Accounts Changcheng
2,332,537.86 403,416.48 2,332,537.86 206,392.47
receivable Construction
Group
Guangdong
Zhuyuan
Accounts
Construction 510,276.71 15,308.30 510,276.71 15,308.30
receivable
Engineering Co.,
Ltd.
202
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Name of related
Item Provision for Provision for
party Carrying amount Carrying amount
impairment impairment
Shenzhen
Accounts Zhongjin Lingnan
504,147.00 31,536.61 566,449.00 16,993.47
receivable Nonfemet Co.,
Ltd.
Guangdong Xintao
Accounts
Microelectronics 457,251.11 9,145.02 266,736.05 5,334.72
receivable
Co., Ltd.
Guangdong
Accounts Zhongren Group
289,918.22 8,697.55 289,918.22 8,697.55
receivable Construction Co.,
Ltd
Guangdong
Zhongjin Lingnan
Accounts
Engineering 138,827.00 4,164.81 138,827.00 4,164.81
receivable
Technology Co.,
Ltd.
Guangdong
Huajian
Accounts
Engineering 44,297.00 29,813.02 44,297.00 22,148.50
receivable
Construction Co.,
Ltd.
Guangdong Rising
Accounts
Holdings Group 15,206.96 304.14 146,462.96 2,929.26
receivable
Co., Ltd.
Shandong
Accounts
Zhongjin Lingnan 10,286.00 308.58
receivable
Copper Co., Ltd.
Guangdong Rising
Accounts Research and
3,850.00 138.60 3,850.00 77.00
receivable Development
Institute Co. Ltd.
Guangdong
Heshun Property
Accounts Management Co.,
242,112.68 7,263.38
receivable Ltd. Rising
International
Building Branch
Prosperity (China)
Prepayments Electrical 39,428.00 39,428.00
Company Limited
Hangzhou Times
Lighting Electric
Prepayments 1,300.88 1,300.88
Appliances Co.,
Ltd.
Guangdong
Fenghua
Prepayments Advanced 148.68 148.68
Technology
Holding Co., Ltd.
Guangdong
Other receivables Huajian Enterprise 2,090,868.46 62,726.05 1,791,739.20 53,752.18
Group Co., Ltd.
Guangdong Rising
Other receivables 77,761.92 2,685.16 67,165.92 1,343.32
Commercial
203
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Name of related
Item Provision for Provision for
party Carrying amount Carrying amount
impairment impairment
Development Co.,
Ltd. (renamed
Guangzhou
Tianxin Property
Management
Company)
Nanning Ruixiang
Industrial
Other receivables 5,000.00 150.00 5,000.00 150.00
Investment Co.,
Ltd.
Guangdong
Zhongren Group
Other receivables 304.31 9.13 304.31 9.13
Construction Co.,
Ltd
Total 23,308,304.41 1,092,210.67 26,789,398.37 818,460.27
(2) Accounts Payable
Unit: RMB
Beginning carrying
Item Name of related party Ending carrying balance
balance
Guangdong Fenghua Advanced Technology
Notes payable 155,588.72 373,870.86
Holding Co., Ltd.
Notes payable Guangdong Zhongren Group Construction Co., Ltd 15,052,221.04
Accounts payable Guangdong Zhongren Group Construction Co., Ltd 113,478,475.81 117,665,437.46
Accounts payable Guangdong Yixin Changcheng Construction Group 95,910,150.20 65,992,673.05
Accounts payable Guangdong Zhongnan Construction Co., Ltd. 35,906,275.26 43,398,748.24
Guangdong Fenghua Advanced Technology
Accounts payable 2,096,767.69 1,385,589.20
Holding Co., Ltd.
Accounts payable Shenzhen Yuepeng Construction Co., Ltd. 1,123,472.38 1,174,680.84
Shenzhen Nanhe Mobile Communication
Accounts payable 306,838.00 14,457.85
Technology Co., Ltd.
Accounts payable Guangzhou Haixinsha Industrial Co., Ltd. 146,441.00 506,936.01
Accounts payable Prosperity Lamps & Components Limited 58,230.70 58,230.70
Guangdong Electronic Technology Research
Accounts payable 46,500.00 46,500.00
Institute
Accounts payable Nanning Ruixiang Industrial Investment Co., Ltd. 32,400.00
Guangzhou Shengfeng Catering Management
Accounts payable 665.00
Service Co., Ltd.
Shenzhen Longgang Dongjiang Industrial Waste
Accounts payable 9,478.00
Treatment Co., Ltd.
Zhuhai Dongjiang Environmental Protection
Accounts payable 1,325.10
Technology Co., Ltd.
Other payables Nanning Ruixiang Industrial Investment Co., Ltd. 100,046,577.48 103,639,661.12
Other payables Guangdong Huajian Enterprise Group Co., Ltd. 6,618,860.15 3,593,345.15
Guangdong Fenghua Advanced Technology
Other payables 5,035,015.07 5,030,015.07
Holding Co., Ltd.
Other payables Shenzhen Yuepeng Construction Co., Ltd. 406,880.64 474,900.64
Other payables Guangzhou Haixinsha Industrial Co., Ltd. 345,769.78 154,568.76
Guangzhou Shengfeng Catering Management
Other payables 268,000.00
Service Co., Ltd.
Other payables Guangzhou Huajian Business Development Co., 13,900.00
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Beginning carrying
Item Name of related party Ending carrying balance
balance
Ltd.
Shenzhen Nanhe Mobile Communication
Other payables 13,624.00
Technology Co., Ltd.
Other payables Guangdong Xintao Microelectronics Co., Ltd. 8,028.00 8,028.00
Other payables Guangdong Rising Holdings Group Co., Ltd. 4,750.00
Other payables Guangdong Zhongnan Construction Co., Ltd. 423,469.05
Zhuhai Dongjiang Environmental Protection
Other payables 20,000.00
Technology Co., Ltd.
Shenzhen Longgang Dongjiang Industrial Waste
Other payables 20,000.00
Treatment Co., Ltd.
Dividends payable Hongkong Wah Shing Holding Company Limited 23,211,071.75
Guangdong Electronics Information Industry Group
Dividends payable 15,772,745.52
Ltd.
Dividends payable Prosperity Lamps & Components Limited 17,632,182.84
Dividends payable Guangdong Rising Holdings Group Co., Ltd. 15,579,215.16
Dividends payable Rising Investment Development Limited 2,781,438.77
Contract liabilities,
other current Prosperity Lamps & Components Limited 57,547.68 59,428.00
liabilities
Other current
Guangdong Zhongren Group Construction Co., Ltd 568,478.42 0.00
liabilities
Other current
Guangdong Zhongnan Construction Co., Ltd. 500,000.00 6,700,000.00
liabilities
Other current Guangdong Fenghua Advanced Technology
207,244.60 339,669.91
liabilities Holding Co., Ltd.
Other current
Guangzhou Haixinsha Industrial Co., Ltd. 51,154.03 339,220.26
liabilities
Other current
Guangdong Yixin Changcheng Construction Group 69,483.06
liabilities
Total 438,384,288.65 366,551,937.37
7. Commitments of the Related Parties
1. Commitment on Avoidance of Horizontal Competition
(1) Commitment Makers: Electronics Group and Hong Kong Rising Investment
Contents: Electronics Group 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 FSL are
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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 honour 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.
Fulfilment: In execution.
(2) Commitment Maker: Rising Holdings Group
Contents: 1. The Promisor will take active measures to avoid any business or activity that competes or may
compete with the principal business of the Company and its auxiliary enterprises, and urge the Promisor to
control enterprises to avoid any business or activity that competes or may compete with the principal business
of the Company and its auxiliary enterprises. 2. If the Promisor and its controlled enterprises are given the
opportunity to engage in new business that constitutes or may constitute horizontal competition with the
principal businesses of the Company and its auxiliary enterprises, the Promisor will make every effort to make
the business opportunity first available to the Company or its auxiliary enterprises on reasonable and fair terms
and conditions on the premise that conditions permit and in the interest of the listed company.
Date of commitment making: 4 November 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
(3) Commitment Makers: Rising Holdings Group, Rising Capital, and Hongkong Wah Shing
Contents: 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 FSL for now, if the products or business of them or their relevant enterprises become the same with or
similar to those of FSL or its subsidiaries in the future, they shall take the following measures: (1) If FSL thinks
necessary, they and their relevant enterprises shall reduce and wholly transfer their relevant assets and business;
and (2) If FSL 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 FSL 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 honour all the relevant commitments. 3. If they or their directly or indirectly controlled
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subsidiaries break the aforesaid commitments and thus cause a loss for FSL, they shall compensate FSL on a
rational basis.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
2. Commitment on Reduction and Regulation of Related-party Transactions
(1) Commitment makers: Electronics Group and Hong Kong Rising Investment
Contents: Electronics Group 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.
Fulfilment: In execution.
(2) Commitment Maker: Rising Holdings Group
Contents: 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
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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.
Date of commitment making: 4 November 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
(3) Commitment makers: Rising Holdings Group, Rising Capital, and Hongkong Wah Shing
Contents: They have made a commitment that during their direct or indirect holding of FSL’s shares, they shall
1. strictly abide by the regulatory documents of the CSRC and the SZSE, FSL’s Articles of Association, etc. and
not harm the interests of the Company or other shareholders of FSL 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 FSL or FSL’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 FSL, 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 FSL, its subsidiaries or FSL’s other shareholders, they shall be obliged
to compensate.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
3. Commitment on Independence
(1) Commitment makers: Electronics Group and Hong Kong Rising Investment
Contents: In order to ensure the independence of FSL in business, personnel, asset, organisation and finance,
Electronics Group and Hong Kong Rising Investment have made the following commitments: 1. They will
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ensure the independence of FSL in business: (1) They promise that FSL 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 FSL’s business activities other than the execution
of their rights as FSL’s shareholders. (3) They promise that they and their related parties will not be engaged in
business that is substantially in competition with FSL’s business. And (4) They promise that they and their
related parties will try their best to reduce related-party transactions between them and FSL; 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 FSL in
personnel: (1) They promise that FSL’s GM, deputy GMs, CFO, Secretary of the Board and other senior
management personnel will work only for and receive remuneration from FSL, not holding any positions in
them or their other controlled subsidiaries other than director and supervisor. (2) They promise FSL’s absolute
independence from their related parties in labour, 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 FSL and not to hire or dismiss employees beyond FSL’s Board of Directors and General Meeting.
3. They will ensure the independence and completeness of FSL in asset: (1) They promise that FSL 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 FSL will have independent and complete assets all under FSL’s
control and independently owned and operated by FSL. And (3) They promise that they and their other
controlled subsidiaries will not illegally occupy FSL’s funds and assets in any way, or use the FSL’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 organisation: (1) They promise that FSL has a sound corporate governance
structure as a joint-stock company with an independent and complete organisational structure. (2) They promise
that the operational and management organs within FSL will independently execute their functions according to
laws, regulations and FSL’s Articles of Association. 5. They will ensure the independence of FSL in finance: (1)
They promise that FSL will have an independent financial department and financial accounting system with
normative, independent financial accounting rules. (2) They promise that FSL will have independent bank
accounts and not share bank accounts with its related parties. (3) They promise that FSL’s financial personnel
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do not hold concurrent positions in its related parties. (4) They promise that FSL will independently pay its tax
according to law. And (5) They promise that FSL can make financial decisions independently and that they will
not illegally intervene in FSL’s use of its funds.
Date of commitment making: 4 December 2015.
Term of commitment: Long-standing.
Fulfilment: In execution.
(2) Commitment makers: Rising Holdings Group
Contents: To maintain the independence of the Company, the Promisor has made the following commitments: It
will ensure the personnel independence of the Company. 1. It promises to ensure personnel independence with
the Company, and GM, deputy GMs, CFO, Secretary of the Board of Directors and other senior management
personnel of the Company will not hold positions other than directors and supervisors in the enterprises wholly
owned, controlled or actually controlled by it and its subsidiaries (hereinafter referred to as “subsidiaries”), and
will not receive salaries from it or its subsidiaries. 2. It will ensure the asset independence of the Company: (1)
It promises that the Company has independent and complete assets. (2) It promises that it and its subsidiaries
will not illegally occupy the Company’s funds and assets in any way. 3. It will ensure the financial
independence of the Company: (1) It promises that the Company will have an independent financial department
and financial accounting system. (2) It promises that the Company will have a standardised and independent
financial accounting system. (3) It promises that the Company will have independent bank accounts and not
share bank accounts with it. (4) It promises that the Company’s financial personnel do not hold concurrent
positions in it or its subsidiaries. And (5) It promises that the Company can make financial decisions
independently and that they will not illegally intervene in the Company’s use of its funds. 4. It will ensure the
independence of the Company in organisation: (1) It promises that the Company can operate independently with
an independent and complete organisation structure. (2) It promises that the office and production and business
premises of the Company are separated from those of Rising Holdings Group. And (3) It promises that the
Board of Directors, the Supervisory Committee and various functional departments of the Company operate
independently, and there is no subordinate relationship with the functional departments of Rising Holdings
Group. 5. It will ensure the independence of the Company in business: (1) It promises that the Company will
have independence in business. And (2) It promises 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.
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Date of commitment making: 4 November 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
4. Commitment on Effective Performance of Measures to Fill up Returns
Commitment makers: Rising Holdings Group, Rising Capital, Electronics Group, Hongkong Wah Shing, Hong
Kong Rising Investment and Shenzhen Rising Investment
Contents: 1. They promise not to interfere in the operation and management activities of the listed company
beyond their authority and not to encroach on the interests of the listed company. 2. From the date of issuance
of these commitments to the completion of this trading of the listed company, if the CSRC makes new
regulatory requirements on measures to fill up returns and commitments of relevant personnel, and the above
commitments cannot meet these new regulatory requirements of the CSRC, they promise to issue
supplementary commitments according to the latest regulations of the CSRC at that time. From the date of
issuance of these commitments to the completion of this trading of the listed company, if the CSRC makes new
regulatory requirements on measures to fill up returns and commitments of relevant personnel, and the above
commitments cannot meet these new regulatory requirements of the CSRC, they promise to issue
supplementary commitments according to the latest regulations of the CSRC at that time. 3. They promise to
earnestly fulfill the measures to fill up returns formulated by the listed company and any commitments made by
them. If they violate these commitments and causes losses to the listed company or investors, they are willing to
bear the compensation responsibility for the listed company or investors according to law. As one of the
subjects responsible for the measures to fill up returns, if they violate the above commitments or refuse to fulfil
the above commitments, they agree that the securities regulatory agencies such as the CSRC and the SZSE will
punish them or take relevant regulatory measures in accordance with the relevant regulations and rules they
formulated or issued.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
5. Commitment on Compensation for Possible Violations of Laws and Regulations by NATIONSTAR
Commitment makers: Rising Holdings Group, Electronics Group, and Rising Capital
Contents: If NationStar Optoelectronics is subject to administrative penalties such as accountability and fines by
relevant competent departments after the completion of this trading due to the illegal acts of NationStar
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Optoelectronics before the completion of this acquisition, they promise to fully bear the losses of NATIONSTAR
or FSL, as well as the expenses and fees under punishment or recourse, to ensure that NationStar Optoelectronics
or FSL will not suffer any economic losses.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
6. Commitment on the Truthfulness, Accuracy and Completeness of the Information Provided During This
Major Asset Restructuring
(1) Commitment makers: Rising Holdings Group, Electronics Group, and Rising Capital
Contents: 1. They promise that the information provided is true, accurate and complete, and there are no false
records, misleading statements or material omissions. 2. They have provided relevant information and
documents (including but not limited to original written materials, duplicate materials or oral testimony, etc.)
related to this trading to the intermediaries. They promise that the copies or photocopies of the documents and
materials provided are consistent with the originals, and that the signatures and seals of the documents and
materials are authentic, and the signatories of the documents have been legally authorised and effectively signed
the documents; that there are no false records, misleading statements or material omissions. 3. They promise
that the explanations and confirmations issued by them are true, accurate and complete, and there are no false
records, misleading statements or material omissions. 4. During this trading, they will disclose the information
about this trading in a timely manner in accordance with relevant laws and regulations, the CSRC and the SZSE,
and ensure the authenticity, accuracy and completeness of such information. 5. They shall bear legal
responsibility for the authenticity, accuracy and completeness of the information, documents, materials,
explanations and confirmations provided. In case of any violation or losses caused to the listed company,
investors, parties to the trading and intermediaries participating in this trading, they will be liable for
compensation according to law. 6. Where the information provided or disclosed by them in this trading is
suspected of false records, misleading statements or material omissions, and they are filed for investigation by
the judicial organ or by the CSRC, the shares with interests in the listed company will not be transferred until
the investigation conclusion is formed.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
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(2) Commitment Markers: Directors and Senior Management of the Company
Contents of Commitment: 1. We have provided relevant information and documents (including but not limited
to original written materials, duplicate materials or oral testimony, etc.) related to this trading to the
intermediaries providing professional services of auditing, assessment, legal and financial consultancy for this
trading. We promise that the copies or photocopies of the documents and materials provided are consistent with
the originals, and that the signatures and seals of the documents and materials are authentic, and the signatories
of the documents have been legally authorised and effectively signed the documents; that the provided
information and documents are authentic, accurate and complete and that there are no false records, misleading
statements or material omissions. We also promise to bear individual and joint and several liability. 2. We
promise that the information provided is true, accurate and complete. In case of any losses caused to investors
due to any false presentations, misleading statements or material omissions in the information provided, we will
be liable for compensation according to law. 3. Where the information provided or disclosed by us in this
trading is suspected of false records, misleading statements or material omissions, and we are filed for
investigation by the judicial organ or by the CSRC, the shares with interests in the listed company will not be
transferred until the investigation conclusion is formed.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
7. Commitment on the Clarity of the Underlying Assets of This Major Asset Restructuring
1) Commitment maker: Electronics Group
Contents: Electronics Group promises that the 100% equity of Sigma it held is clear in ownership and is not
subject to any dispute or potential dispute, and there is no situation affecting its legal existence; and there is no
pending or potential litigation, arbitration and any other administrative or judicial procedure that may lead to the
seizure, freezing, expropriation or restriction of transfer of the above-mentioned equity by the relevant judicial
or administrative organs. There is no entrusted shareholding or trust shareholding, restriction or prohibition of
transfer of the above-mentioned equity controlled by Electronics Group.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
2) Commitment Makers: Rising Holdings Group and Rising Capital
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Contents: They promise that shares of NATIONSTAR they held are clear in ownership and are not subject to
any dispute or potential dispute, and there is no situation affecting its legal existence; and there is no pending or
potential litigation, arbitration and any other administrative or judicial procedure that may lead to the seizure,
freezing, expropriation or restriction of transfer of the above-mentioned equity by the relevant judicial or
administrative organs. There is no entrusted shareholding or trust shareholding, restriction or prohibition of
transfer of the above-mentioned equity controlled by Rising Group and Rising Capital.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
8. About Measures to Fill up Returns for Risks Arising from Diluting Immediate Return in Major Asset
Restructuring
Commitment markers: Directors and Senior Management of the Company
Contents of Commitment: 1. We promise not to transfer benefits to other units or individuals free of charge or
under unfair conditions, and not to harm the interests of the Company in any other ways. 2. We promise to
restrain position-related consumption behaviour. 3. We promise not to use the Company’s assets to engage in
investment and consumption activities unrelated to the performance of duties. 4. We promise that the future
remuneration system formulated by the Board of Directors or the Remuneration and Assessment Committee
will be linked to the implementation of the Company’s measures to fill up returns. 5. If the Company formulates
an equity incentive plan in the future, we will actively promote the exercise conditions of the future equity
incentive plan to be linked with the implementation of the Company’s measures to fill up returns. 6. From the
date of issuance of these commitments to the completion of this major asset restructuring of the Company, if the
CSRC makes other new regulatory provisions on measures to fill up returns and the relevant commitments, and
these commitments cannot meet these provisions of the CSRC, we promise to issue supplementary
commitments in accordance with the latest regulations of the CSRC at that time. 7. We promise to earnestly
fulfil the compensation measures formulated by the Company and any commitments we make. If we violate any
of these commitments and cause losses to the Company or investors, we are willing to bear corresponding legal
responsibilities to the Company or investors according to law.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfilment: In execution.
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9. About the Measures to Fill up Immediate Returns Diluted by the Issuance of A-shares to Specific Objects in
2023
Commitment markers: Directors and Senior Management of the Company
Contents: According to the Opinions of the General Office of the State Council on Further Strengthening the
Protection of the Lawful Rights and Interests of Small and Medium-sized Investors in the Capital Market (G.B.F.
[2013] No. 110), Opinions of the State Council on Further Promoting the Sound Development of Capital
Markets (G.F. [2014] No. 17), Guiding Opinions on Matters concerning the Dilution of Immediate Return in
Initial Public Offering, Refinancing and Material Asset Restructuring (Z.J.H.G.G. [2015] No. 31) and other
relevant regulations, in order to protect the interests of small and medium-sized investors, the Directors and
Senior Management of the Company have made the following commitments that the measures to fill up
immediate returns diluted by the issuance of A-shares to specific objects can be effectively fulfilled: 1. We
promise not to transfer benefits to other units or individuals for free or under unfair conditions and not to
compromise the interests of the Company in other ways. 2. We promise to restrain position-related consumption
behaviour. 3. We promise not to use the Company’s assets to engage in investment and consumption activities
unrelated to the performance of duties. 4. We promise that the remuneration system formulated by the Board of
Directors or the Remuneration and Assessment Committee is linked to the implementation of the Company’s
measures to fill up returns. 5. If the Company implements an equity incentive plan in the future, the exercise
conditions of the future equity incentive plan will be linked with the implementation of the Company’s
measures to fill up returns. 6. From the date of issuance of these commitments to the completion of the issuance
of shares to specific objects, if the CSRC makes other new regulatory provisions on measures to fill up returns
and the relevant commitments, and these commitments cannot meet these provisions of the CSRC, we promise
to issue supplementary commitments in accordance with the latest regulations of the CSRC at that time. As one
of the subjects responsible for the measures to fill up returns, if we violate the above commitments or refuse to
fulfil the above commitments, we agree that the securities regulatory agencies such as the CSRC and the
Shenzhen Stock Exchange will punish us or take relevant regulatory measures in accordance with the relevant
regulations and rules they formulated or issued.
Date of commitment making: 14 March 2023.
Term of commitment: Long-standing.
Fulfilment: In execution.
10. About Matters on Special Self-inspection of the Real Estate Business
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Commitment makers: Directors and Senior Management of the Company, Rising Holdings Group, Electronics
Group, Hongkong Wah Shing, Hong Kong Rising Investment and Shenzhen Rising Investment
Contents: According to the laws and regulations issued by the State Council, such as the Notice of the State
Council on Resolutely Curbing the Soaring of Housing Prices in Some Cities (G.F. [2010] No. 10), the Notice of
the General Office of the State Council on Further Improving Regulation of the Real Estate Market (G.B.F.
[2013] No. 17) and the Adjustment of Regulatory Policies on Listed Companies’ Re-financing, Merger and
Acquisition and Reorganisation Involving Real Estate Business issued by the CSRC on the relevant
requirements for refinancing of listed companies involved in real estate business, the controlling shareholders
and all directors and Senior Management of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as
the “Company”) have made the following commitments: The Self-inspection Report on the Company’s
Involvement in Real Estate Business has truthfully disclosed the self-inspection of the real estate development
projects of the Company and its subsidiaries between 1 January 2020 and 31 December 2022. If the Company is
identified with illegalities or violations not disclosed as required by the self-inspection, such as idle land, land
speculation, holding real estate projects from selling, and house price rigging, thus causing losses to itself and
the investors, we will be liable for compensation in line with relevant laws, regulations, and requirements of
securities regulatory authorities.
Date of commitment making: 14 March 2023.
Term of commitment: Long-standing.
Fulfilment: In execution.
11. About the Effective Fulfilment of Measures Taken by Controlling Shareholders and De Facto Controller to
Fill up Immediate Returns
Commitment makers: Rising Holdings Group, Electronics Group, Hongkong Wah Shing, Hong Kong Rising
Investment and Shenzhen Rising Investment
Contents: According to the relevant provisions of the CSRC, in order to ensure that the measures to fill up
immediate returns diluted by the issuance of A-shares to specific objects can be practically fulfilled, the
Company’s controlling shareholders, Rising Holdings Group, Electronics Group, Hong Kong Rising Investment,
Hongkong Wah Shing, and the de facto controller, Rising Holdings Group, respectively, made the following
commitments: 1. We promise not to interfere in the operation and management activities of the listed company
beyond our authority and not to encroach on the interests of the listed company. 2. From the date of issuance of
these commitments to the completion of the issuance of shares to specific objects, if the CSRC makes new
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regulatory requirements on measures to fill up returns and commitments of relevant personnel, and the above
commitments cannot meet these new regulatory requirements of the CSRC, we promise to issue supplementary
commitments according to the latest regulations of the CSRC at that time. 3. They promise to earnestly fulfil the
measures to fill up returns formulated by the listed company and any commitments made by them. If they
violate these commitments and causes losses to the listed company or investors, they are willing to bear the
compensation responsibility for the listed company or investors according to law. As one of the subjects
responsible for the measures to fill up returns, if we violate the above commitments or refuse to fulfil the above
commitments, we agree that the securities regulatory agencies such as the CSRC and the Shenzhen Stock
Exchange will punish us or take relevant regulatory measures in accordance with the relevant regulations and
rules they formulated or issued.
Date of commitment making: 14 March 2023.
Term of commitment: Long-standing.
Fulfilment: In execution.
8. Other
Naught.
XV. Share-based Payment
1. Overview of Share-based Payments
□Applicable Not applicable
2. Equity-settled share-based payments
□Applicable Not applicable
3. The Stock Payment Settled in Cash
□Applicable Not applicable
4. Share-Based Payment Expenses for the Period
□Applicable Not applicable
5. Modification and Termination of Share-based Payment
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
6. Others
Naught.
XVI. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Commitment on the development of Haikou plot
In November 2021, Hainan Technology, a wholly-owned subsidiary of the Company, acquired an industrial
land located in Mei’an Science and Technology New City, Haikou, with a land area of 34,931.13 square meters
and a land price of RMB26,596,784.43. In the same month, Hainan Technology signed the Agreement on
Industrial Project Development and Land Access with Haikou National High-tech Industrial Development Zone
Management Committee (hereinafter referred to as the “Haikou Development Zone Management Committee”).
The agreement stipulates that the above-mentioned plot is used for the development of marine lighting R&D
and manufacturing base projects, and the investment of fixed assets is approximately RMB314 million
(including plants, equipment, and land, equivalent to RMB6 million per mu. Hainan Technology promises to
complete the planning scheme design within two months from the date of signing the Confirmation of Listing
and Transferring the Right to Use State-owned Construction Land; complete the construction drawing design
within three months after completing the planning scheme design and obtain the Building Construction Permits
and start construction at the same time (subject to the foundation concrete pouring of the main buildings).The
project will be put into production within 18 months from the date of signing the Confirmation of Listing and
Transferring the Right to Use State-owned Construction Land. From the date of signing the contract to the first
year after the project is put into production, the accumulated tax payment is not less than RMB10 million; the
accumulated tax payment in the first two years is not less than RMB27.4 million; the accumulated tax payment
in the first three years is not less than RMB67.1 million; the accumulated tax payment in the first four years is
not less than RMB117 million; the accumulated tax payment in the five years is not less than RMB203 million.
The total industrial output value (or revenue) in the first year after the project is put into production is not less
than RMB218 million; the accumulated value in the first two years is not less than RMB433 million; the
accumulated value in the first three years is not less than RMB929 million; the accumulated value in the first
four years is not less than RMB1,548 million; the accumulated value in the five years is not less than RMB2.62
billion. If the project fails to start construction within 12 months from the date of signing the Confirmation of
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Listing and Transferring the Right to Use State-owned Construction Land due to Hainan Technology reasons,
the Haikou Development Zone Management Committee has the right to unilaterally terminate the contract and
the municipal government will recover the land use rights according to law; if the total amount of tax paid in the
year after the project is put into production does not reach the total annual tax payment as agreed, Hainan
Technology shall pay liquidated damages to the Haikou Development Zone Management Committee according
to the difference; if Hainan Technology has idle land not due to government reasons and force majeure, the
municipal government shall collect idle land fees or recover the right to use state-owned construction land.
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1) Litigation between the Company and Yinghe (Shenzhen) Robotics and Automation Technology Co., Ltd.
Yinghe (Shenzhen) Robotics and Automation Technology Co., Ltd. (hereinafter referred to as the “Yinghe
Company”) and the Company entered into the Bulb Lamp Intelligent Manufacturing Workshop Project
Construction Contract in 2021. The project failed to meet the final acceptance inspection criteria, and after
repeated negotiations between both parties, no agreement was reached. Therefore, Yinghe Company filed a
lawsuit with the Chancheng District People’s Court of Foshan City in December 2023 with the amount of
RMB104,403,700 involved in litigation. In January 2024, the Company received the Notice of Response to the
Complaint, and on 12 January 2024, Everbright Bank froze RMB100 million of the Company’s large deposits
in Everbright Bank in accordance with the Notice of Assistance in Execution from the Chancheng District
People’s Court of Foshan City, and deposits of RMB4,403,700 in China Minsheng Bank were also frozen.
On 12 January 2024, the Company filed a counterclaim on the grounds that Yinghe’s failure to meet the final
acceptance standard for the project constructed by Yinghe after a delay of two years constituted a fundamental
breach of contract, and demanded Yinghe to return the contract sum of RMB26,904,000 and the liquidated
damages of RMB26,904,000 amounting to RMB53,808,000 in total. As of the date of this report, the case is still
in the first instance procedure.
2) Litigation between the Company and Dianbai County Construction Engineering Co., Ltd.
Dianbai County Construction Engineering Co., Ltd., as a customer of the Company, has a dispute with the
Company over a sales contract. The Company initiated arbitration with the Guangzhou Arbitration Commission
with the subject matter of the arbitration amounting to RMB24,804,400. As of the date of this report, the
Arbitration Commission has filed a case which came to trial on 27 August with no arbitration award yet. The
Company has already made a provision for bad debts of RMB9,554,400 based on expected credit losses.
3) Litigation between the Company and China Construction Fourth Engineering Division Installation
Engineering Co., Ltd.
China Construction Fourth Engineering Division Installation Engineering Co., Ltd., as a customer of the
Company, has a dispute with the Company over a sales contract. The Company initiated arbitration with the
Guangzhou Arbitration Commission with the subject matter of the arbitration amounting to RMB18,420,100.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
As of the date of this report, the Arbitration Commission has filed a case which is awaiting scheduling a court
hearing. The Company has made a provision for bad debts of RMB9,428,700 based on expected credit losses.
4) Litigation between Sub-subsidiary Chongqing Guinuo and Hasco VISION Technology (Chongqing) Co., Ltd.
and Hasco VISION Technology (Shanghai) Co., Ltd.
Hasco VISION Technology (Chongqing) Co., Ltd. and Hasco VISION Technology (Shanghai) Co., Ltd., as
customers of sub-subsidiary Chongqing Guinuo, have disputes with the sub-subsidiary Chongqing Guinuo over
sales contracts. Chongqing Guinuo has filed a lawsuit with Yubei Primary People’s Court, Chongqing, with the
subject matter of the lawsuit amounting to RMB15,672,000. The case was heard in the first instance on 20
August 2024. As of the date of this report, the case is still in the first instance procedure.
5) Litigation between the Company, the Subsidiary Hainan Technology and China Construction First Group
Corporation Limited
China Construction First Group Corporation Limited (hereinafter referred to as “China Construction First”), as
a customer of the Company and the subsidiary Hainan Technology, has disputes with the Company and the
subsidiary Hainan Technology over sales contracts. The Company initiated arbitration with the Shanghai
Arbitration Commission with the subject matter of the arbitration amounting to RMB14,191,000. As of the date
of this report, the Arbitration Commission has filed a case which is awaiting scheduling a court hearing. The
two sides are currently negotiating a settlement. The Company has made a provision for bad debts of
RMB6,810,200 based on expected credit losses.
6) Litigation of Land Use Payment Dispute in Respect of Sub-subsidiary Baoli Vanadium
According to the Notice of Xichuan County on the Preferential Policies for Accelerating the Development of
Industrial Clusters (Provisional) issued by the People’s Government of Xichuan County on 2 November 2009,
Baoli Vanadium, the Sub-subsidiary, paid a total amount of RMB10,994,400 to the People’s Government of
Xichuan County in 2011 for the application of land use. The land selected for the project site has not yet
completed the requisition procedures and has not yet started the bidding and auctioning procedures, so the
People’s Government of Xichuan County is unable to obtain the land use approval to complete the requisition
of the land and deliver the land. Baoli Vanadium has filed a lawsuit to Nanyang Intermediate People’s Court,
requesting the return of the advance payment and compensation for losses, and at the same time applying for the
return of RMB100,000 of environmental management and restoration deposit to Baoli Vanadium, and received
a judgment of first instance on 22 September 2023, which ruled that the defendant, the People’s Government of
Xichuan County, shall return the amount of RMB10,694,400 to the plaintiff, Nanyang Baoli Vanadium Industry
Co., Ltd. within 30 days from the date of the entry into force of the judgment. The People’s Government of
Xichuan County appealed against the judgment. On 26 December 2023, Baoli Vanadium received a deposit of
RMB100,000 for environmental management and restoration. In the second instance stage, Baoli Vanadium
reached a mediation agreement with the People’s Government of Xichuan County. On 21 May 2024, the Henan
Provincial Supreme People’s Court issued an administrative mediation agreement: The People’s Government of
Xichuan County shall pay RMB9 million to Baoli Vanadium. If the People’s Government of Xichuan County
fails to timely and fully pay RMB9 million as agreed in the mediation agreement, it shall still pay
RMB10,694,400 according to the first instance judgment. As of the date of this report, Baoli Vanadium has
received a total payment of RMB9 million and is currently undergoing liquidation and cancellation procedures.
7) Litigation between Sub-subsidiary Chongqing Guinuo and Hasco VISION Technology (Chongqing) Co., Ltd.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
The sub-subsidiary Chongqing Guinuo, has a dispute with Hasco VISION Technology (Chongqing) Co., Ltd.
(hereinafter referred to as “Hasco VISION”) over a lease contract. Hasco VISION has filed a lawsuit with
Yubei Primary People’s Court, Chongqing, with the subject matter of the lawsuit amounting to RMB10,433,900.
The case was heard in the first instance on 6 August 2024. As of the date of this report, the case is still in the
first instance procedure.
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other
(1) As of 30 June 2024, mutual guarantees among Nanning Liaowang and its subsidiaries were as follows
(RMB’0,000):
Principal debtee Type of Guarantee
No. Principal debtor Guarantor Amount
(Lender) guarantee balance
Nanning Liaowang Auto Lamp
Co., Ltd., Liuzhou Guige
Nanning Branch of Nanning Liaowang
1 Fuxuan Technology Co., Ltd., Pledge 6,350.00 2,832.98
Industrial Bank Auto Lamp Co., Ltd.
Liuzhou Guige Lighting
Technology Co., Ltd. (Note 1)
Chongqing Guinuo
Chongqing Guinuo Lighting Chongqing Branch
2 Lighting Technology Pledge 7,000.00 4,930.60
Technology Co., Ltd. (Note 2) of Industrial Bank
Co., Ltd.
Liuzhou Guige Lighting
Technology Co., Ltd., Nanning Liuzhou Guige
Nanning Branch of
3 Liaowang Auto Lamp Co., Ltd., Lighting Technology Pledge 14,300.00 4,385.06
Industrial Bank
and Liuzhou Guige Fuxuan Co., Ltd.
Technology Co., Ltd. (Note 3)
Total - - - 27,650.00 12,148.64
Note 1: Nanning Liaowang and Nanning Branch of Industrial Bank signed the Master Agreement for Domestic
Letter of Credit Financing numbered MO120240409000444, borrowing RMB20 million from Nanning Branch
of Industrial Bank (term from 15 April 2024 to 9 April 2025); Nanning Liaowang and Nanning Branch of
Industrial Bank entered into the Maximum Financing Agreement (X.Y.G.CH.B.R.Z.Z. [2022] No. (01)) to
conduct a bill transaction of RMB8,329,800. Nanning Liaowang provides mortgage guarantee with the
immovable property owned as collateral, and the balance of its creditor’s rights does not exceed the maximum
mortgage principal of RMB69,139,100. The mortgage amount is valid from 25 April 2022 to 31 December
2025 and the guarantee amount is RMB63.5 million. The mortgaged real estate is 1) Y.G. (2017)
N.N.SH.B.D.CH.Q.Z. No.0065501; 2) E.G. (2017) N.N.SH.B.D.CH.Q.Z. No.0065499; 3) S.G. (2017)
N.N.SH.B.D.CH.Q.Z. No.0065498; 4) S.G. (2017) N.N.SH.B.D.CH.Q.Z. No.0065497.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Note 2: Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Fixed Asset Loan
Contract numbered CQ2023-477, with the contract amount being RMB50 million (from 21 June 2023 to 20
June 2026). As at 30 June 2024, RMB36,506,000 had been used. Chongqing Guinuo and Chongqing Branch of
Industrial Bank entered into the Maximum Mortgage Contract (X.Y.Y.L.J.G.N.D. [2023] No. 001) to conduct a
bill transaction of RMB12.8 million. Chongqing Guinuo provides mortgage guarantee with the immovable
property owned as collateral, and the balance of its creditor’s rights does not exceed the maximum mortgage
principal of RMB122,294,700. The mortgage amount is valid from 25 May 2023 to 24 May 2024, May 21,
2024 to May 20, 2025 and the guarantee amount is RMB70 million. The mortgaged real estate is a) Y.Y. (2020)
L.J.X.Q.B.D.C.Q. No.000436821, b) E.Y. (2020) L.J.X.Q.B.D.C.Q. No.000437330, c) S.Y. (2020)
L.J.X.Q.B.D.C.Q. No.000437429 and d) S.Y. (2020) L.J.X.Q.B.D.C.Q. No.000437448.
Note 3: Liuzhou Photoelectric entered into the Maximum Financing Agreement numbered X.Y.G.CH.B.R.Z.Z.
(2022) No. (02) with Nanning Branch of Industrial Bank, incurring a note business of RMB43,850,600.
Liuzhou Guige Photoelectric provides mortgage guarantee with the immovable property owned as collateral,
and the balance of its creditor’s rights does not exceed the maximum mortgage principal of RMB139,943,700.
The mortgage amount is valid from 24 April 2022 to 31 December 2025 and the guarantee amount is RMB143
million. The mortgaged real estate is: a) Y.G. (2019) L.ZH.SH.B.D.CH.Q. No. 0191988, located at No. 1
Factory Building, No. 12 Hengsi Road, Cheyuan; b) E.G. (2019) L.ZH.SH.B.D.CH.Q. No. 0191991, located in
the mould Centre of No. 12 Hengsi Road, Cheyuan; c) S.G. (2019) L.ZH.SH.B.D.CH.Q. No. 0191994, located
in the logistics gate guard room at No. 12 Hengsi Road, Cheyuan; d) S.G. (2019) L.ZH.SH.B.D.CH.Q. No.
0191995, located in the guard room of Gate 12, Hengsi Road, Cheyuan.
XVII. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught.
2. Profit Distribution
Naught.
3. Sales Return
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
4. Notes to Other Events after Balance Sheet Date
Naught.
XVIII. Other Significant Matters
1. The Accounting Errors Correction in Previous Period
Naught.
2. Debt Restructuring
Naught.
3. Assets Replacement
Naught.
4. Pension Plans
In accordance with provisions of Measures for Enterprise Annuity (R.SH.B.L. No. 36), Measures for Managing
Enterprise Annuity Fund (R.SH.B.L. No. 11) and other policies, the Company has formulated the Enterprise
Annuity Plan of Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as the “Plan”).
The Plan adopts the corporate trusteeship mode. The collected enterprise annuity fund will be managed by the
trustee entrusted by Foshan Electrical and Lighting Co., Ltd. with the Enterprise Annuity Fund Trusteeship
Contract. The trustee of the enterprise annuity fund should appoint custodians, account managers, and
investment managers with the qualification of managing enterprise annuity to provide unified related services.
The expenses required shall be jointly borne by the Company and the employees. The payment channels of the
Company shall be implemented according to relevant regulations of the state, and the part that shall be paid by
employees themselves will be withheld and paid by the Company from their salaries.
The Plan has been filed at Chancheng District Human Resources and Social Security Bureau of Foshan City and
implemented since 1 June 2022. The management of the enterprise annuity fund is subject to the supervision
and inspection of relevant state departments.
5. Discontinued Operations
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
With the deployment of the Company’s strategic management and the expansion of business segments, based
on the requirements of regulatory laws and regulations, company management, etc., operating segments will be
determined, which are as follows:
General lighting, automotive lamps products segment: General lighting, automotive lamps products segment
research and development, manufacturing and sales;
LED packaging and components, other products segment: Research and development, manufacturing and
sales of LED packaging and components, and other products;
Inter-segment transfer prices are determined with reference to the prices used for sales to third parties. Assets,
liabilities and expenses are determined based on the financial data of each segment.
(2) The Financial Information of Reportable Segment
Unit: RMB
LED packaging and
General lighting and
Item component products Offset among segments Total
vehicle lamp products
and other products
I. Operating revenue 2,962,882,279.10 1,853,708,942.97 -32,045,454.65 4,784,545,767.42
II. Cost of sales 2,257,995,942.27 1,635,851,501.72 -32,189,367.38 3,861,658,076.61
III. Income from
investments to joint 1,444,720.72 1,682,561.70 -1,682,561.70 1,444,720.72
ventures and associates
IV. Credit impairment
-34,492,571.20 -4,060,752.39 282,515.01 -38,270,808.58
loss
V. Asset impairment
-26,622,907.83 -10,335,897.06 -36,958,804.89
loss
VI. Depreciation and
177,305,768.76 180,741,665.66 -381,130.02 357,666,304.40
amortisation cost
VII. Total profits 228,848,683.80 53,238,490.71 -4,012,535.74 278,074,638.77
VIII. Income tax
27,607,285.17 -3,003,941.29 29,038.24 24,632,382.12
expense
IX. Net profits 201,241,398.63 56,242,432.00 -4,041,573.98 253,442,256.65
X. Total assets 11,493,185,048.30 6,457,769,957.80 -876,544,305.46 17,074,410,700.64
XI. Total liabilities 4,696,923,558.72 2,632,410,948.75 -48,945,652.60 7,280,388,854.87
(3) If there Was no Reportable Segment, or the Total Amount of Assets and Liabilities of Each
Reportable Segment Could not Be Reported, Relevant Reasons Shall Be Clearly Stated
Naught.
(4) Other notes
Naught.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught.
8. Other
(1) Demolition Matters of Nanjing Fozhao
The Company held the 24th Meeting of the 9th Board of Directors on 15 December 2021, where the Proposal
on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary Nanjing Fozhao
Lighting Equipment Manufacturing Co., Ltd., was deliberated and adopted. The Board of Directors agreed that
Nanjing Lishui District People’s Government expropriates the land use rights and above-land housing of
Nanjing Fozhao Lighting Equipment Manufacturing Co., Ltd. (hereinafter referred to as “Nanjing Fozhao”), a
wholly-owned subsidiary of the Company, at a compensation amount of RMB183,855,895.00, and Nanjing
Fozhao signed an expropriation and compensation agreement with Lishui County House Dismantling, Moving
& Resettling Development Co., Ltd., the implementing unit of the housing expropriation. As of 30 June 2024,
Nanjing Fozhao has received 30% of the compensation, that is, RMB55,160,000.00, and the land use right
certificate and house ownership certificate of the assets involved have been cancelled. As of the date of this
report, the site handover is still in progress. After the demolition work is completed, Nanjing Fozhao plans to
carry out liquidation and cancellation.
(2) Land Purchase and Reserve
On 6 December 2023 and 22 December 2023, the Company held the 49th Meeting of the 9th Board of Directors
and the 2nd Extraordinary General Meeting of Shareholders, deliberating on and approved the Proposal on the
Disposal of Assets of the Company and Signing of Reserve Agreement. The Board of Directors agreed that the
Company would sign the Letter of Intent on Land Reserve with Foshan City Chancheng District Zumiao Street
Office, and sign the Agreement on the Use Right of State-owned Land with Foshan City Chancheng District
Land Reserve Centre and Foshan City Chancheng District Zumiao Street Office. After completing the
preliminary land preparation work such as demolition of buildings on the ground in accordance with relevant
laws, regulations and policies, the No. 64 Fenjiang North Road land parcel in Chancheng District, Foshan City
would be handed over in three years batch by batch for pending expropriation. On 1 February 2024, the
Company formally signed the State-owned Land Use Right Reserve Agreement with Foshan Chancheng
District Land Reserve Centre and Foshan Chancheng District Zumiao Street Office. The Company would
conduct pending expropriation of No. 64, Fenjiang North Road land parcel in accordance with the relevant
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
contents of the agreement. The Company will continue to follow up on the progress of land credit collection and
reserve, and fulfil its information disclosure obligations in a timely manner in accordance with relevant laws,
regulations, and normative documents.
(3) Equity Incentive Plan
On 12 June 2023, the Company held the 44th Meeting of the Ninth Board of Directors and the 22nd Meeting of
the Ninth Supervisory Committee, respectively, and reviewed and approved the 2023 Restricted Share Incentive
Plan (Draft) and related supporting proposals. The Company planned to grant no more than 13 million restricted
shares to 262 incentive objects, of which 11.7 million shares will be granted for the first time, accounting for
90.00% of the total number of shares granted under this incentive plan, and 1.3 million shares will be reserved,
accounting for 10.00% of the total number of shares granted under the incentive plan. The restricted shares were
A-stock ordinary shares repurchased by the Company. And the grant price for the first grant was
RMB3.81/share. This equity incentive plan is subject to approval by the State-owned Assets Supervision and
Administration Commission of Guangdong Province and a general meeting of shareholders of the Company.
For further information, see the 2023 Restricted Share Incentive Plan (Draft) and Its Summary and other
relevant proposals that have been disclosed on http://www.cninfo.com.cn/ dated 13 June 2023.
(4) Application for Registration and Issuance of SCP by NationStar Optoelectronics
NationStar Optoelectronics reviewed and approved the Proposal on Application for Registration and Issuance
of SCP at the 22nd Meeting of the 5th Board of Directors and the 19th Meeting of the 5th Supervisory
Committee held on 29 August 2022 and submitted it to the 3rd Extraordinary General Meeting of 2022 of
NationStar Optoelectronics for consideration. On 11 November 2022, NationStar Optoelectronics convened the
3rd Extraordinary General Meeting of 2022 to vote on above-mentioned proposal and agreed the application for
registration and issuance of SCP by NationStar Optoelectronics with the scale not exceeding RMB1 billion
(inclusive). The final registration amount will be subject to the amount stated in the registration notice of China
Interbank Market Dealers Association. The registration is valid for two years and may be issued multiple times
within the registration period with each issuance period not exceeding 270 days (inclusive). On 29 August 2023,
NationStar Optoelectronics announced that it had received the Notice of Acceptance of Registration (Z.SH.X.Z.
[2023] SCP No. 363) from National Association of Financial Market Institutional Investors (NAFMII), in which
NAFMII decided to accept the registration of NationStar Optoelectronics’ SCP with the registered amount of
RMB1 billion and the registration quota being valid for two years from the date of the notice. NationStar
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Optoelectronics may issue the SCP by instalment within the validity of the registration. At present, NationStar
Optoelectronics has not issued SCP.
XIX. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Ageing Ending carrying balance Beginning carrying balance
Within one year (including one year) 756,261,588.07 683,345,802.12
One to two years 94,055,752.47 125,068,556.37
Two to three years 112,055,133.50 92,436,464.67
Over three years 43,559,786.18 28,150,275.79
Three to four years 18,713,524.34 6,324,306.99
Four to five years 4,260,850.25 4,557,233.31
Over five years 20,585,411.59 17,268,735.49
Total 1,005,932,260.22 929,001,098.95
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Accounts
receivable for
73,902 41,240
which bad debt 32,661, 16,206, 13,266, 2,939,4
,016.8 7.35% ,741.1 55.80% 1.74% 81.86%
provision 275.68 226.20 776.46 49.74
4 6
accrued
separately
Of which:
Accounts
receivable
932,03 70,038
withdrawal of 861,992 912,794 75,730, 837,063
0,243. 92.65% ,052.4 7.51% 98.26% 8.30%
bad debt ,190.91 ,872.75 895.08 ,977.67
38 7
provision by
portfolio
Of which:
(1) Business
852,18 70,038
portfolio of 782,142 843,754 75,730, 768,023
0,624. 84.72% ,052.4 8.22% 90.83% 8.98%
general lighting ,572.49 ,827.55 895.08 ,932.47
96 7
and auto lamps
(2) Internal 79,849 79,849, 69,040, 69,040,
7.94% 7.43%
business ,618.4 618.42 045.20 045.20
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
portfolio 2
1,005, 111,27
894,653 929,001 88,997, 840,003
Total 932,26 100.00% 8,793. 11.06% 100.00% 9.58%
,466.59 ,098.95 671.54 ,427.41
0.22 63
Category name of bad debt provision accrued by item: Bad debt provision accrued by item of RMB41,240,741.16.
There is no significant individual provision for bad debts for accounts receivable in the current period.
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB70,038,052.47 for the portfolio of general
lighting and auto lamps.
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
(1) Business portfolio of general
852,180,624.96 70,038,052.47 8.22%
lighting and auto lamps
(2) Internal business portfolio 79,849,618.42
Total 932,030,243.38 70,038,052.47
Notes:
Please refer to Note V-13. Accounts Receivable for details.
If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable Not applicable
(3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Others
recovery
Accounts receivable
for which bad debt 13,266,776. 41,240,741.1
27,980,102.70 6,138.00
provision accrued 46 6
separately
Accounts receivable
withdrawal of bad 75,730,895. 70,038,052.4
-5,692,830.61 12.00
debt provision by 08 7
portfolio
88,997,671. 111,278,793.
Total 22,287,272.09 6,138.00 12.00
54 63
Of which, bad debt provision collected or reversed with significant amount: Naught.
(4) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
228
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Amount verified
Accounts receivable with actual verification 12.00
Of which, verification of significant accounts receivable: Naught.
Notes to verification of accounts receivable:
The amount of accounts receivable written off in the current period was RMB12.00, and the bad debt provision was RMB12.00.
The approval procedure was performed in accordance with provisions of the bad debt management system of the Company.
(5) Top Five Accounts Receivable and Contract Assets in Ending Balance Collected according to the
Arrears Party
Unit: RMB
Ending balance of
Proportion to total bad debt provision
Ending balance of
Ending balance of ending balance of of accounts
Ending balance of accounts
Name of the entity accounts accounts receivable and
contract assets receivable and
receivable receivable and impairment
contract assets
contract assets provision for
contract assets
No. 1 136,060,695.38 136,060,695.38 13.48% 4,081,820.86
No. 2 132,880,329.94 132,880,329.94 13.17% 3,986,409.90
No. 3 56,424,103.25 56,424,103.25 5.59%
No. 4 24,804,411.54 24,804,411.54 2.46% 9,554,411.54
No. 5 20,683,026.66 20,683,026.66 2.05% 620,490.80
Total 370,852,566.77 370,852,566.77 36.75% 18,243,133.10
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 723,060,470.78 558,342,534.44
Total 723,060,470.78 558,342,534.44
(1) Interest Receivable
1) Category of Interest Receivable
Naught.
2) Significant Overdue Interest
Naught.
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
229
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
5) Interests Receivable Written-off in Current Period
Naught.
(2) Dividends Receivable
1) Category of Dividends Receivable
Naught.
2) Significant Dividends Receivable Aged over 1 Year
Naught.
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
5) Dividends Receivable with Actual Verification during the Reporting Period
Naught.
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying balance Beginning carrying balance
Other intercourse 712,248,485.01 550,330,445.91
Performance bond 6,671,407.95 5,017,218.52
VAT export tax refunds 5,905,055.39 4,708,061.84
Staff borrow and petty cash 1,528,077.89 1,267,076.22
Rent, water & electricity fees 1,114,934.75 808,434.42
Total 727,467,960.99 562,131,236.91
2) Disclosure by Aging
Unit: RMB
Ageing Ending carrying balance Beginning carrying balance
230
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Ageing Ending carrying balance Beginning carrying balance
Within one year (including one year) 247,443,791.81 125,675,552.49
One to two years 63,089,679.83 40,089,841.13
Two to three years 413,074,772.94 393,099,727.65
Over three years 3,859,716.41 3,266,115.64
Three to four years 1,782,290.23 1,588,177.54
Four to five years 422,267.04 981,563.00
Over five years 1,655,159.14 696,375.10
Total 727,467,960.99 562,131,236.91
3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal value Withdrawal value
Amount Proportion Amount Amount Proportion Amount
proportion proportion
Of which:
Withdrawal of
bad debt 727,467 4,407,49 723,060, 562,131, 3,788,70 558,342,
100.00% 0.61% 100.00% 0.67%
provision by ,960.99 0.21 470.78 236.91 2.47 534.44
group
Of which:
Other
receivables of
bad debt
provision 727,467 4,407,49 723,060, 562,131, 3,788,70 558,342,
100.00% 0.61% 100.00% 0.67%
withdrawn by ,960.99 0.21 470.78 236.91 2.47 534.44
credit risk
characteristic
portfolio:
727,467 4,407,49 723,060, 562,131, 3,788,70 558,342,
Total 100.00% 0.61% 100.00% 0.67%
,960.99 0.21 470.78 236.91 2.47 534.44
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB4,407,490.21 based on credit risk
characteristic portfolio
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Other receivables of bad debt
provision withdrawn by credit 727,467,960.99 4,407,490.21 0.61%
risk characteristic portfolio:
Total 727,467,960.99 4,407,490.21
Notes:
Please refer to Note V-13. Accounts Receivable for details.
Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
Bad debt provision Phase I Phase II Phase III Total
231
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Expected loss in the
Expected loss in the
Expected credit loss of duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
841,350.40 2,947,352.07 3,788,702.47
2024
Balance of 1 January
2024 in the Current
Period
Withdrawal of the
179,217.48 439,570.26 618,787.74
Current Period
Balance of 30 June
1,020,567.88 3,386,922.33 4,407,490.21
2024
The basis for the division of each phase and the withdrawal proportion of bad debt provision
Please refer to Note V-13. Accounts Receivable for details.
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Charged- Ending balance
balance Withdrawal Others
recovery off/Written-off
Other
3,788,702.47 618,787.74 4,407,490.21
receivables
Total 3,788,702.47 618,787.74 4,407,490.21
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Naught.
5) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught.
6) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Ageing
other receivables bad debt provision
(%)
No. 1 Internal group 469,657,393.34 Within three years 64.56%
No. 2 Internal group 216,125,584.72 Within two years 29.71%
No. 3 Other intercourse 15,883,375.00 Within one year 2.18% 476,501.25
232
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Ageing
other receivables bad debt provision
(%)
VAT export tax
No. 4 5,905,055.39 Within one year 0.81% 177,151.66
refunds
No. 5 Other intercourse 3,467,318.54 Within one year 0.48% 104,019.56
Total 711,038,726.99 97.74% 757,672.47
7) Presentation in Other Receivables Due to the Centralised Management of Fund
Naught.
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Investment to 2,381,355,425. 2,381,355,425. 2,323,435,425. 2,323,435,425.
subsidiaries 91 91 91 91
Investment to
joint ventures
180,633,275.87 180,633,275.87 179,188,555.15 179,188,555.15
and associated
enterprises
2,561,988,701. 2,561,988,701. 2,502,623,981. 2,502,623,981.
Total
78 78 06 06
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease
Beginning Beginning Ending Ending
balance balance of Withdrawal balance balance of
Investee Additional Reduced of
(carrying impairment Others (carrying impairment
value) provision investment investment impairment value) provision
provision
Foshan
NationStar 1,212,090, 1,212,090,2
Optoelectronics 245.94 45.94
Co., Ltd.
Nanning
493,880,1 493,880,163
Liaowang Auto
63.76 .76
Lamp Co., Ltd.
Fozhao
(Hainan) 200,000,0 200,000,000
Technology 00.00 .00
Co., Ltd.
Foshan Kelian
New Energy 170,000,0 170,000,000
Technology 00.00 .00
Co., Ltd.
FSL Chanchang 82,507,35 82,507,350.
233
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Increase/decrease
Beginning Beginning Ending Ending
balance balance of Withdrawal balance balance of
Investee Additional Reduced of
(carrying impairment Others (carrying impairment
value) provision investment investment impairment value) provision
provision
Lighting Co., 0.00 00
Ltd.
Nanjing Fozhao
Lighting
72,000,00 72,000,000.
Components
0.00 00
Manufacturing
Co., Ltd.
Foshan
Electrical &
35,418,43 35,418,439.
Lighting
9.76 76
(Xinxiang) Co.,
Ltd.
FSL Zhida
Electric 25,500,00 25,500,000.
Technology 0.00 00
Co., Ltd.
Foshan Haolaite
16,685,00 16,685,000.
Lighting Co.,
0.00 00
Ltd.
Foshan Fozhao
Zhicheng 15,000,00 35,000,000 50,000,000.
Technology 0.00 .00 00
Co., Ltd.
Foshan Taimei
Times Lamps 350,000.0
350,000.00
and Lanterns 0
Co., Ltd.
Fozhao
Huaguang
22,920,000 22,920,000.
(Maoming)
.00 00
Technology
Co., Ltd.
Foshan Sigma
Venture Capital 4,226.45 4,226.45
Co., Ltd.
2,323,435, 57,920,000 2,381,355,4
Total
425.91 .00 25.91
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Gains and
Beginning Beginning Ending Ending
losses Adjustment of Cash bonus Withdrawal
balance balance of Changes balance balance of
Investee Additional Reduced recognised other or profits of
(carrying impairment of other Others (carrying impairment
investment investment under the comprehensive announced impairment
value) provision equity value) provision
equity income to issue provision
method
I. Joint ventures
234
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Increase/decrease
Gains and
Beginning Beginning Ending Ending
losses Adjustment of Cash bonus Withdrawal
balance balance of Changes balance balance of
Investee Additional Reduced recognised other or profits of
(carrying impairment of other Others (carrying impairment
investment investment under the comprehensive announced impairment
value) provision equity value) provision
equity income to issue provision
method
II. Associated enterprises
Shenzhen
Primatronix
179,188,55 1,444,720.7 180,633,27
(Nanho)
5.15 2 5.87
Electronics
Ltd.
179,188,55 1,444,720.7 180,633,27
Sub-total
5.15 2 5.87
179,188,55 1,444,720.7 180,633,27
Total
5.15 2 5.87
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable Not applicable
The recoverable amount is determined by the present value of the expected future cash flow
□Applicable Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairment
tests in prior years or external information
Naught.
The reason for the discrepancy between the information used in the Company’s impairment tests in prior years
and the actual situation of those years
Naught.
(3) Other Notes
Naught.
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 1,741,973,631.59 1,332,424,793.83 1,711,281,228.74 1,436,735,973.21
Other operations 57,827,707.33 45,413,563.22 55,838,581.48 39,194,174.59
Total 1,799,801,338.92 1,377,838,357.05 1,767,119,810.22 1,475,930,147.80
235
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Income from long-term equity
investments accounted for using cost 3,184,010.70 6,007,918.32
method
Income from long-term equity
investments accounted for using equity 1,444,720.72 1,186,031.53
method
Investment income from disposal of
342,400.00 2,154,000.00
trading financial assets
Dividend income from holding of other
19,494,518.75 16,633,969.35
equity instrument investment
Interest income of investment in other
13,671,028.14
debt obligations during holding period
Investment income from financial
1,767,053.51
products and structural deposits
Total 38,136,678.31 27,748,972.71
6. Others
Naught.
XX. Supplementary Materials
1. Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current
assets (inclusive of impairment 65,734.07
allowance write-offs)
Government grants recognised in current
profit or loss (exclusive of those that are
closely related to the Company's normal
business operations and given in
28,947,688.70
accordance with defined criteria and in
compliance with government policies,
and have a continuing impact on the
Company's profit or loss)
Gain or loss on fair-value changes in
financial assets and liabilities held by a
non-financial enterprise, as well as on
disposal of financial assets and liabilities 2,805,784.23
(exclusive of the effective portion of
hedges that arise in the Company’s
ordinary course of business)
Capital occupation charges on a non-
159,108.10
financial enterprise that are charged to
236
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
Item Amount Note
current profit or loss
Reversed portions of impairment
allowances for receivables which are 137,714.26
tested individually for impairment
Non-operating income and expense other
2,403,799.26
than the above
Less: Income tax effects 3,935,014.64
Non-controlling interests effects
17,198,544.37
(net of tax)
Total 13,386,269.61 --
Details of other items that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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
2. Return on Equity (ROE) and Earnings Per Share (EPS)
EPS (RMB/share)
Profit in the Reporting Period Weighted average ROE
Basic EPS (RMB/share) Diluted EPS (RMB/share)
Net profit attributable to the
Company’s ordinary 3.02% 0.1252 0.1241
shareholders
Net profit before exceptional
gains and losses attributable
2.81% 0.1165 0.1155
to the Company’s ordinary
shareholders
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.
237
Foshan Electrical and Lighting Co., Ltd. Interim Report 2024
4. Other
Naught.
Foshan Electrical and Lighting Co., Ltd.
Legal representative: Wan Shan
30 August 2024
238
