Foshan Electrical and Lighting Co., Ltd.
The semi-annual financial report 2022
1
Foshan Electrical and Lighting Co., Ltd. semi-annual financial report of 2022
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 2022
Unit: RMB
Item 30 June 2022 1 January 2022
Current assets:
Monetary assets 1,839,439,636.83 2,381,911,655.35
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 64,068,462.40 348,248,125.61
Derivative financial assets
Notes receivable 1,413,792,273.37 1,690,356,491.64
Accounts receivable 2,186,178,543.84 1,981,538,844.26
Accounts receivable financing
Prepayments 38,244,161.07 33,474,104.32
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 31,235,165.53 37,523,072.02
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 1,819,669,430.66 1,969,998,988.39
Contract assets 8,089,556.63 8,561,303.10
Assets held for sale 17,147,339.84 23,831,992.10
Current portion of non-current assets
2
Other current assets 54,343,517.04 125,675,148.17
Total current assets 7,472,208,087.21 8,601,119,724.96
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 180,115,189.99 181,545,123.09
Investments in other equity
1,164,717,479.92 1,504,980,024.07
instruments
Other non-current financial assets
Investment property 42,165,255.37 43,347,824.34
Fixed assets 3,337,546,197.41 3,360,339,910.95
Construction in progress 1,094,362,246.23 1,087,261,052.63
Productive living assets
Oil and gas assets
Right-of-use assets 11,363,508.05 14,126,206.08
Intangible assets 364,277,890.38 368,954,162.34
Development costs
Goodwill 421,831,593.46 421,831,593.46
Long-term prepaid expense 174,834,483.73 152,726,512.56
Deferred income tax assets 79,972,630.78 82,261,788.58
Other non-current assets 49,992,676.97 499,349,770.41
Total non-current assets 6,921,179,152.29 7,716,723,968.51
Total assets 14,393,387,239.50 16,317,843,693.47
Current liabilities:
Short-term borrowings 65,115,000.00 226,779,997.01
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities 6,544,500.00 9,367.37
Derivative financial liabilities
Notes payable 1,607,406,305.48 2,067,111,789.71
Accounts payable 2,228,681,333.31 2,429,896,658.92
Advances from customers 4,959,545.56 8,106,923.79
Contract liabilities 161,528,315.35 140,228,127.84
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 140,988,596.59 167,784,089.64
Taxes payable 77,374,922.57 90,981,474.60
3
Other payables 297,828,933.33 333,128,771.81
Including: Interest payable
Dividends payable 15,646.07 15,646.07
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
30,383,518.75 27,600,186.15
liabilities
Other current liabilities 9,952,101.27 10,577,082.29
Total current liabilities 4,630,763,072.21 5,502,204,469.13
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 556,590,467.75
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 7,287,442.67 8,065,560.58
Long-term payables
Long-term employee benefits payable
Provisions 18,378,155.88 17,418,343.01
Deferred income 108,223,263.15 116,761,570.35
Deferred income tax liabilities 252,930,119.39 280,172,789.59
Other non-current liabilities 11,334.19 22,653.46
Total non-current liabilities 943,420,783.03 422,440,916.99
Total liabilities 5,574,183,855.24 5,924,645,386.12
Owners’ equity:
Share capital 1,361,994,647.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 7,245,971.54 994,114,567.16
Less: Treasury stock 82,165,144.15 250,600,874.54
Other comprehensive income 754,018,430.97 982,972,358.89
Specific reserve
Surplus reserves 86,780,516.19 741,353,347.96
General reserve
Retained earnings 3,245,999,616.02 3,119,317,423.25
Total equity attributable to owners of the
5,373,874,037.57 6,986,502,976.72
Company as the parent
Non-controlling interests 3,445,329,346.69 3,406,695,330.63
Total owners’ equity 8,819,203,384.26 10,393,198,307.35
Total liabilities and owners’ equity 14,393,387,239.50 16,317,843,693.47
4
Legal representative: Wu Shenghui 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 2022 1 January 2022
Current assets:
Monetary assets 424,568,145.97 1,017,365,290.91
Held-for-trading financial assets 304,385,804.11
Derivative financial assets
Notes receivable 66,011,888.67 72,114,026.44
Accounts receivable 1,187,803,897.82 1,058,935,664.33
Accounts receivable financing
Prepayments 10,173,470.35 9,292,256.82
Other receivables 447,027,739.63 511,056,231.24
Including: Interest receivable
Dividends receivable
Inventories 451,972,910.39 617,905,747.50
Contract assets 8,089,556.63 8,561,303.10
Assets held for sale
Current portion of non-current assets
Other current assets 3,364,413.79 36,097,001.14
Total current assets 2,599,012,023.25 3,635,713,325.59
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2,476,746,428.40 1,243,081,889.11
Investments in other equity
1,123,657,619.00 1,474,860,785.15
instruments
Other non-current financial assets
Investment property 42,165,255.37 43,347,824.34
Fixed assets 556,849,101.34 576,386,630.08
Construction in progress 159,339,701.41 120,514,314.18
Productive living assets
Oil and gas assets
Right-of-use assets 8,374,369.62 9,827,757.94
Intangible assets 121,933,831.47 123,089,721.51
Development costs
Goodwill
Long-term prepaid expense 30,088,478.45 31,897,595.21
Deferred income tax assets 30,707,247.51 31,373,123.07
Other non-current assets 12,476,726.67 460,618,564.04
5
Total non-current assets 4,562,338,759.24 4,114,998,204.63
Total assets 7,161,350,782.49 7,750,711,530.22
Current liabilities:
Short-term borrowings 127,596,999.82
Held-for-trading financial liabilities 6,544,500.00
Derivative financial liabilities
Notes payable 302,876,558.69 445,480,718.92
Accounts payable 895,575,614.41 949,520,447.82
Advances from customers 4,571,428.58 6,857,142.86
Contract liabilities 60,532,518.14 64,120,388.15
Employee benefits payable 36,712,883.94 51,520,068.31
Taxes payable 17,175,805.06 57,207,865.54
Other payables 190,933,919.17 223,535,108.76
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
2,561,186.34 2,800,876.97
liabilities
Other current liabilities 6,598,016.36 5,920,593.62
Total current liabilities 1,524,082,430.69 1,934,560,210.77
Non-current liabilities:
Long-term borrowings 336,484,109.53
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 5,813,183.28 7,026,880.97
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 132,200,329.05 173,532,376.03
Other non-current liabilities
Total non-current liabilities 474,497,621.86 180,559,257.00
Total liabilities 1,998,580,052.55 2,115,119,467.77
Owners’ equity:
Share capital 1,361,994,647.00 1,399,346,154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 17,742,717.33 22,568,665.93
Less: Treasury stock 82,165,144.15 250,600,874.54
Other comprehensive income 754,235,498.30 984,695,765.83
Specific reserve
6
Surplus reserves 300,561,517.94 741,353,347.96
Retained earnings 2,810,401,493.52 2,738,229,003.27
Total owners’ equity 5,162,770,729.94 5,635,592,062.45
Total liabilities and owners’ equity 7,161,350,782.49 7,750,711,530.22
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
3. Consolidated Income Statement
Unit: RMB
Item H1 2022 H1 2021
1. Revenue 4,348,268,999.31 3,626,200,260.17
Including: Operating revenue 4,348,268,999.31 3,626,200,260.17
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 4,084,194,362.54 3,409,104,001.88
Including: Cost of sales 3,588,065,798.35 3,009,499,337.22
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 24,369,990.32 22,743,190.88
Selling expense 109,839,926.73 96,772,619.15
Administrative expense 177,742,698.77 139,620,767.72
R&D expense 208,176,593.76 144,120,095.18
Finance costs -24,000,645.39 -3,652,008.27
Including: Interest expense 6,688,232.76 2,871,203.53
Interest income 12,905,461.82 14,130,946.82
Add: Other income 37,771,447.80 33,569,233.15
Return on investment (“-” for loss) 19,613,744.86 5,493,482.75
Including: Share of profit or loss
650,457.40 37,460.99
of joint ventures and associates
Income from the
derecognition of financial assets at
amortized cost (“-” for loss)
7
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-10,766,595.97 1,929,788.30
for loss)
Credit impairment loss (“-” for
-17,052,498.84 1,681,781.89
loss)
Asset impairment loss (“-” for
-23,388,143.98 -23,464,653.80
loss)
Asset disposal income (“-” for
82,362.19 1,782,280.34
loss)
3. Operating profit (“-” for loss) 270,334,952.83 238,088,170.92
Add: Non-operating income 8,961,693.96 3,948,332.41
Less: Non-operating expense 7,844,063.02 3,694,645.11
4. Profit before tax (“-” for loss) 271,452,583.77 238,341,858.22
Less: Income tax expense 41,141,912.01 43,339,378.75
5. Net profit (“-” for net loss) 230,310,671.76 195,002,479.47
5.1 By operating continuity
5.1.1 Net profit from continuing
230,310,671.76 195,002,479.47
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
160,664,433.28 122,377,552.60
owners of the Company as the parent
5.2.1 Net profit attributable to
69,646,238.48 72,624,926.87
non-controlling interests
6. Other comprehensive income, net of
-128,025,149.83 -243,003,831.01
tax
Attributable to owners of the
-128,036,703.73 -243,003,831.01
Company as the parent
6.1 Items that will not be
-128,132,332.34 -242,940,301.27
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
-128,132,332.34 -242,940,301.27
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
8
6.2 Items that will be reclassified to
95,628.61 -63,529.74
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
95,628.61 -63,529.74
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
11,553.90
interests
7. Total comprehensive income 102,285,521.93 -48,001,351.54
Attributable to owners of the
32,627,729.55 -120,626,278.41
Company as the parent
Attributable to non-controlling
69,657,792.38 72,624,926.87
interests
8. Earnings per share
8.1 Basic earnings per share 0.1191 0.0907
8.2 Diluted earnings per share 0.1180 0.0899
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB9,568,639.83, with the amount for the same period of last year being RMB 89,810,090.36.
Legal representative: Wu Shenghui 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 2022 H1 2021
1. Operating revenue 1,809,179,992.86 1,797,795,292.73
Less: Cost of sales 1,476,364,107.19 1,485,965,900.74
Taxes and surcharges 10,450,725.11 11,528,913.49
Selling expense 60,671,112.08 58,577,327.98
Administrative expense 65,659,865.20 69,674,599.21
9
R&D expense 80,982,862.27 66,804,608.38
Finance costs -11,830,352.67 -3,595,436.39
Including: Interest expense 4,427,927.34
Interest income 3,313,721.07 7,925,093.81
Add: Other income 5,635,099.60 5,739,842.06
Return on investment (“-” for loss) 21,542,755.12 11,964,194.51
Including: Share of profit or loss
650,457.40 37,460.99
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 (“-”
-10,811,400.00 1,940,000.00
for loss)
Credit impairment loss (“-” for
-9,623,686.25 2,978,976.42
loss)
Asset impairment loss (“-” for
-6,552,785.39 -9,907,597.40
loss)
Asset disposal income (“-” for
1,781,700.24
loss)
2. Operating profit (“-” for loss) 127,071,656.76 123,336,495.15
Add: Non-operating income -667,333.19 2,012,089.62
Less: Non-operating expense 4,998,457.51 226,124.51
3. Profit before tax (“-” for loss) 121,405,866.06 125,122,460.26
Less: Income tax expense 15,251,135.30 18,362,006.98
4. Net profit (“-” for net loss) 106,154,730.76 106,760,453.28
4.1 Net profit from continuing
106,154,730.76 106,760,453.28
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
-129,543,043.34 -242,940,301.27
tax
5.1 Items that will not be reclassified
-129,543,043.34 -242,940,301.27
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
-129,543,043.34 -242,940,301.27
investments in other equity instruments
5.1.4 Changes in the fair value
10
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 -23,388,312.58 -136,179,847.99
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2022 H1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities
4,002,503,578.81 3,946,336,085.43
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
11
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 145,624,893.13 93,570,819.45
Cash generated from other operating
119,333,795.35 89,817,744.05
activities
Subtotal of cash generated from
4,267,462,267.29 4,129,724,648.93
operating activities
Payments for commodities and
3,065,999,967.63 2,761,223,153.05
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans granted
Interest, handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 702,961,459.58 622,589,181.75
Taxes paid 182,912,490.66 122,117,306.79
Cash used in other operating activities 165,553,443.03 177,582,001.14
Subtotal of cash used in operating
4,117,427,360.90 3,683,511,642.73
activities
Net cash generated from/used in
150,034,906.39 446,213,006.20
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 502,992,240.66 315,735,017.52
Return on investment 21,038,833.14 454,878,942.50
Net proceeds from the disposal of
fixed assets, intangible assets and other 232,233.41 7,762,670.18
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
12
Subtotal of cash generated from
524,263,307.21 778,376,630.20
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 330,641,926.08 215,505,442.11
long-lived assets
Payments for investments 71,695,763.31 29,402,110.68
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
402,337,689.39 244,907,552.79
activities
Net cash generated from/used in
121,925,617.82 533,469,077.41
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised 687,436,000.00
Cash generated from other financing
53,126,214.00 1,339,606.80
activities
Subtotal of cash generated from
740,562,214.00 1,339,606.80
financing activities
Repayment of borrowings 309,876,000.00
Interest and dividends paid 159,400,451.54 36,111,859.97
Including: Dividends paid by
23,912,623.05
subsidiaries to non-controlling interests
Cash used in other financing activities 1,062,094,428.42 304,224,485.91
Subtotal of cash used in financing
1,531,370,879.96 340,336,345.88
activities
Net cash generated from/used in
-790,808,665.96 -338,996,739.08
financing activities
4. Effect of foreign exchange rates
19,953,587.60 -8,764,472.98
changes on cash and cash equivalents
5. Net increase in cash and cash
-498,894,554.15 631,920,871.55
equivalents
Add: Cash and cash equivalents,
1,886,894,463.37 1,325,464,361.36
beginning of the period
6. Cash and cash equivalents, end of the
1,387,999,909.22 1,957,385,232.91
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
13
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2022 H1 2021
1. Cash flows from operating activities:
Proceeds from sale of commodities
1,647,925,557.33 1,850,655,815.39
and rendering of services
Tax rebates 66,177,691.70 63,217,537.03
Cash generated from other operating
49,023,640.18 51,058,701.35
activities
Subtotal of cash generated from
1,763,126,889.21 1,964,932,053.77
operating activities
Payments for commodities and
1,182,528,555.48 1,436,749,486.58
services
Cash paid to and for employees 279,898,010.00 314,880,615.57
Taxes paid 111,471,325.43 24,295,009.50
Cash used in other operating activities 63,008,054.83 110,890,242.14
Subtotal of cash used in operating
1,636,905,945.74 1,886,815,353.79
activities
Net cash generated from/used in
126,220,943.47 78,116,699.98
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 492,992,240.66 262,773,600.62
Return on investment 23,125,665.53 454,663,109.72
Net proceeds from the disposal of
fixed assets, intangible assets and other 42,771.45 1,720,784.40
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
516,160,677.64 719,157,494.74
investing activities
Payments for the acquisition of fixed
assets, intangible assets and other 59,178,832.68 53,582,153.85
long-lived assets
Payments for investments 1,166,664,444.95 49,402,110.68
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
1,225,843,277.63 102,984,264.53
activities
Net cash generated from/used in
-709,682,599.99 616,173,230.21
investing activities
14
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 382,336,000.00
Cash generated from other financing
activities
Subtotal of cash generated from
382,336,000.00
financing activities
Repayment of borrowings 197,016,000.00
Interest and dividends paid 135,641,014.35
Cash used in other financing activities 220,895,890.55
Subtotal of cash used in financing
332,657,014.35 220,895,890.55
activities
Net cash generated from/used in
49,678,985.65 -220,895,890.55
financing activities
4. Effect of foreign exchange rates
15,401,360.65 -7,632,408.62
changes on cash and cash equivalents
5. Net increase in cash and cash
-518,381,310.22 465,761,631.02
equivalents
Add: Cash and cash equivalents,
861,826,014.29 803,264,792.72
beginning of the period
6. Cash and cash equivalents, end of the
343,444,704.07 1,269,026,423.74
period
Legal representative: Wu Shenghui 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 2022
Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent
Other equity Oth
Non Tota
instruments Less er
-con l
Shar Capi : com Spe Surp Gen Reta
Item Pref Perp troll own
e tal Trea preh cific lus eral ined Oth Subt
erre etua ing ers’
capi Oth rese sury ensi rese rese rese earn er otal
d l inter equi
tal er rves stoc ve rve rves rve ings
shar bon ests ty
k inco
es ds
me
1,3 3,1 6,9 3,4 10,
1. Balance as 994 250 982 741
99, 19, 86, 06, 393
at the end of ,11 ,60 ,97 ,35
346 317 502 695 ,19
4,5 0,8 2,3 3,3
the period of ,15 ,42 ,97 ,33 8,3
67. 74. 58. 47.
4.0 3.2 6.7 0.6 07.
prior year 16 54 89 96
0 5 2 3 35
15
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as
1,3 3,1 6,9 3,4 10,
at the 994 250 982 741
99, 19, 86, 06, 393
beginning of ,11 ,60 ,97 ,35
346 317 502 695 ,19
4,5 0,8 2,3 3,3
the ,15 ,42 ,97 ,33 8,3
67. 74. 58. 47.
4.0 3.2 6.7 0.6 07.
Reporting 16 54 89 96
0 5 2 3 35
Period
3. Increase/ -1, -1,
-37 -98 -16 -22 -65 126 38,
decrease in 612 573
,35 6,8 8,4 8,9 4,5 ,68 634
,62 ,99
the period 1,5 68, 35, 53, 72, 2,1 ,01
8,9 4,9
(“-” for 07. 595 730 927 831 92. 6.0
39. 23.
00 .62 .39 .92 .77 77 6
decrease) 15 09
-12 160 32, 69, 102
3.1 Total 8,0 ,66 627 657 ,28
comprehensi 36, 4,4 ,72 ,79 5,5
ve income 703 33. 9.5 2.3 21.
.73 28 5 8 93
-1, -1,
3.2 Capital -37 -98 -16 -65 -6,
510 517
increased ,35 6,8 8,4 4,5 740
,35 ,09
1,5 68, 35, 72, ,91
and reduced 7,2 8,1
07. 595 730 831 2.6
04. 16.
by owners 00 .62 .39 .77 2
00 62
3.2.1
Ordinary
shares
increased by
owners
16
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
-1, -1,
-37 -98 -16 -65 -6,
510 517
3.2.4 ,35 6,8 8,4 4,5 740
,35 ,09
1,5 68, 35, 72, ,91
Other 7,2 8,1
07. 595 730 831 2.6
04. 16.
00 .62 .39 .77 2
00 62
-13 -13 -24 -15
3.3 Profit 4,8 4,8 ,28 9,1
99, 99, 2,8 82,
distribution
464 464 63. 328
.70 .70 70 .40
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
3.3.3
-13 -13 -24 -15
Appropriatio 4,8 4,8 ,28 9,1
n to owners 99, 99, 2,8 82,
(or 464 464 63. 328
.70 .70 70 .40
shareholders)
3.3.4
Other
3.4
-10 100
Transfers 0,9 ,91
0.0
within 17, 7,2
0
owners’ 224 24.
.19 19
equity
3.4.1
Increase in
capital (or
share capital)
17
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
-10 100
comprehensi 0,9 ,91
0.0
ve income 17, 7,2
0
transferred to 224 24.
.19 19
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 1,3 3,2 5,3 3,4 8,8
82, 754 86,
at the end of 61, 7,2 45, 73, 45, 19,
165 ,01 780
994 45, 999 874 329 203
the ,14 8,4 ,51
,64 971 ,61 ,03 ,34 ,38
Reporting 4.1 30. 6.1
7.0 .54 6.0 7.5 6.6 4.2
5 97 9
Period 0 2 7 9 6
18
H1 2021
Unit: RMB
H1 2021
Equity attributable to owners of the Company as the parent
Other equity Oth
Non Tota
instruments Less er
-con l
Shar Capi : com Spe Surp Gen Reta
Item Pref Perp troll own
e tal Trea preh cific lus eral ined Oth Subt
erre etua ing ers’
capi Oth rese sury ensi rese rese rese earn er otal
d l inter equi
tal er rves stoc ve rve rves rve ings
shar bon ests ty
k inco
es ds
me
1. Balance as
at the end of 1,39 15,1 2,34 741, 1,75 6,26 48,2 6,31
9,34 57,5 9,38 567, 8,46 3,92 58,8 2,18
the period of
6,15 14.9 8,53 039. 2,06 1,30 34.5 0,13
prior year 4.00 0 3.61 55 2.48 4.54 3 9.07
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Adjustment
991
for business 1,16 2,77 3,93
,44 169,
-121 1,14 4,02 5,17
combination 4,7 825,
,812 7,99 2,48 0,47
under 57. 049.
.33 4.67 2.92 7.59
70 30
common
control
Other
adjustments
2. Balance as
at the
10,2
beginning of 1,39 1,00 2,34 741, 1,92 7,42 2,82
47,3
9,34 6,60 9,26 567, 8,28 5,06 2,28
the 50,6
6,15 2,27 6,72 039. 7,11 9,29 1,31
16.6
Reporting 4.00 2.60 1.28 55 1.78 9.21 7.45
6
Period
3. Increase/
decrease in - -9,4 220, -598 -187 470, -358 44,1 -314
19
the period 02,1 708, ,873 ,889 342, ,828 45,5 ,682
10.6 001. ,384 .31 967. ,417 30.3 ,887
(“-” for
8 24 .43 80 .86 9 .47
decrease)
3.1 Total -243 122, -120 72,6 -48,
comprehensi ,003 377, ,626 24,9 001,
ve income ,831 552. ,278 26.8 351.
.01 60 .41 7 54
3.2 Capital
increased -9,4 220, -230 -229
-187 725,
02,1 708, ,298 ,572
and reduced - ,889 095.
10.6 001. ,001 ,905
.31 44
by owners 8 24 .23 .79
3.2.1
Ordinary 220, -220 -220
shares 708, ,708 ,708
increased by 001. ,001 ,001
24 .24 .24
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 -9,4 -9,5 -8,8
-187 725,
02,1 89,9 64,9
Other ,889 095.
10.6 99.9 04.5
.31 44
8 9 5
3.3 Profit -7,9 -7,9 -29, -37,
04,1 04,1 204, 108,
distribution
38.2 38.2 491. 630.
2 2 92 14
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
3.3.3
20
Appropriatio -7,9 -7,9 -29, -37,
04,1 04,1 204, 108,
n to owners
38.2 38.2 491. 630.
(or 2 2 92 14
shareholders)
3.3.4
Other
3.4
Transfers -355 355,
within ,869 869,
owners’ ,553 553.
.42 42
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 -355 355,
ve income ,869 869,
transferred to ,553 553.
.42 42
retained
earnings
3.4.6
Other
21
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
4. Balance as
at the end of 1,39 997, 220, 1,75 741, 2,39 7,06 2,86 9,93
the 9,34 200, 708, 0,39 379, 8,63 6,24 6,42 2,66
Reporting 6,15 161. 001. 3,33 150. 0,07 0,88 6,84 7,72
4.00 92 24 6.85 24 9.58 1.35 7.84 9.19
Period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2022
Unit: RMB
H1 2022
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as
1,399 2,738 5,635
at the end of 22,56 250,6 984,6 741,3
,346, ,229, ,592,
8,665 00,87 95,76 53,34
the period of 154.0 003.2 062.4
.93 4.54 5.83 7.96
0 7 5
prior year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
22
error
Other
adjustments
2. Balance as
at the
1,399 2,738 5,635
beginning of 22,56 250,6 984,6 741,3
,346, ,229, ,592,
8,665 00,87 95,76 53,34
the 154.0 003.2 062.4
.93 4.54 5.83 7.96
0 7 5
Reporting
Period
3. Increase/
decrease in -37,3 -4,82 -168, -230, -440, 72,17 -472,
the period 51,50 5,948 435,7 460,2 791,8 2,490 821,3
(“-” for 7.00 .60 30.39 67.53 30.02 .25 32.51
decrease)
3.1 Total -129, 106,1 -23,3
comprehensi 543,0 54,73 88,31
ve income 43.34 0.76 2.58
3.2 Capital
increased -37,3 -4,82 -168, -440, -314,
51,50 5,948 435,7 791,8 533,5
and reduced
7.00 .60 30.39 30.02 55.23
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 -37,3 -4,82 -168, -440, -314,
51,50 5,948 435,7 791,8 533,5
Other
7.00 .60 30.39 30.02 55.23
3.3 Profit -134, -134,
899,4 899,4
distribution
64.70 64.70
3.3.1
23
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio -134, -134,
n to owners 899,4 899,4
(or 64.70 64.70
shareholders)
3.3.3
Other
3.4
Transfers -100, 100,9
within 917,2 17,22 0.00
owners’ 24.19 4.19
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 -100, 100,9
comprehensi 917,2 17,22 0.00
ve income 24.19 4.19
transferred to
24
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
4. Balance as
at the end of 1,361 2,810 5,162
17,74 82,16 754,2 300,5
,994, ,401, ,770,
the 2,717 5,144 35,49 61,51
647.0 493.5 729.9
Reporting .33 .15 8.30 7.94
0 2 4
Period
H1 2021
Unit: RMB
H1 2021
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as
at the end of
1,399 7,426 2,349 741,5 1,591 6,089
,346, ,635. ,389, 67,03 ,884, ,614,
the period of 154.0 62 658.2 9.55 733.4 220.8
prior year 0 3 9 9
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
25
Other
adjustments
2. Balance as
at the
1,399 7,426 2,349 741,5 1,591 6,089
,346, ,635. ,389, 67,03 ,884, ,614,
beginning of 154.0 62 658.2 9.55 733.4 220.8
the 0 3 9 9
Reporting
Period
3. Increase/
decrease in
220,7 -598, -187, 462,6 -357,
08,00 809,8 889.3 30,00 075,7
the period 1.24 54.69 1 6.70 38.54
(“-” for
decrease)
3.1 Total
-242, 106,7 -136,
comprehensi
940,3 60,45 179,8
ve income 01.27 3.28 47.99
3.2 Capital
increased
220,7 -187, -220,
08,00 889.3 895,8
and reduced 1.24 1 90.55
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
3.2.4 220,7 -187, -220,
Other 08,00 889.3 895,8
1.24 1 90.55
3.3 Profit
distribution
3.3.1
Appropriatio
26
n to surplus
reserves
3.3.2
Appropriatio
n to owners
(or
shareholders)
3.3.3
Other
3.4
Transfers
-355, 355,8
869,5 69,55
within 53.42 3.42
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
-355, 355,8
869,5 69,55
comprehensi 53.42 3.42
ve income
transferred to
retained
27
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2
Used in the
period
3.6 Other
4. Balance as
at the end of
1,399 7,426 220,7 1,750 741,3 2,054 5,732
,346, ,635. 08,00 ,579, 79,15 ,514, ,538,
the 154.0 62 1.24 803.5 0.24 740.1 482.3
Reporting 0 4 9 5
Period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
III Company profile
Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited
company jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick
Field, and Foshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval of YGS
(1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of
Guangdong Province and the Economic System Reform Commission of Guangdong Province, is an enterprise
with its shares held by both the corporate and the natural persons. As approved by China Securities Regulatory
Commission with Document (1993) No. 33, the Company publicly issued 19.3 million shares of social public
shares (A shares) to the public in October 1993, and was listed in Shenzhen Stock Exchange for trade on 23
November 1993. The Company was approved to issue 50,000,000 B shares on 23 July 1995. And, as approved to
change into a foreign-invested stock limited company on 26 August 1996 by (1996) WJMZEHZ No. 466
Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China.
On 11 December 2000, as approved by China Securities Regulatory Commission with ZJGS Zi [2000] No. 175
Document, the Company additionally issued 55,000,000 A shares. At approved by the Shareholders’ General
Meeting 2006, 2007, 2008, 2014 and 2017 the Company implemented the plan of capitalization of capital reserve,
after the transfer, the registered capital of the Company has increased to RMB1,399,346,154.00. 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,
28
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.
Credibility code of the Company: 91440000190352575W.
Legal representative: Mr. Wu Shenghui
Address: No. 64, Fenjiang North Road, Foshan, Guangdong Province
Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products,
electro technical products, vehicle lamp products, epitaxy and chip products, LED packaging and component
products, trade and application products.
The business term of the Company is long-term, which was calculated from the date of issuance of License of
Business Corporation.
The Financial Report was approved and authorized for issue by the Board of Directors on 30 August 2022.
The consolidation scope of the financial statement during the Reporting Period including the Company and FSL
Chanchang Optoelectronics Co., Ltd. ( referred to as “Chanchang Company”), Foshan Taimei Times Lamps and
Lanterns Co., Ltd. ( referred to as “Taimei Company”), Nanjing Fozhao Lighting Components Co., Ltd. ( referred
to as “Nanjing Fozhao”), FSL (Xinxiang) Lighting Co., Ltd. ( referred to as “Xinxiang Company”), Foshan
Lighting Lamps & Components Co., Ltd. ( referred to as “Lamps & Components Company”), FSL Zhida Electric
Technology Co., Ltd ( referred to as “Zhida Company”), FSL LIGHTING GMBH (referred to as “FSL
LIGHTING”), 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”) and Foshan Sigma
Venture Capital Co., Ltd. (referred to as “Sigma”) in total 14 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 “NationStar Electronic Manufacturing”), Foshan NationStar
Semiconductor Technology 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”) and NationStar Optoelectronics (Germany) Co., Ltd. (referred to as “Germany
NationStar”) in total ten sub-subsidiary.
Given that Nanyang Baoli Vanadium Industry Co., Ltd. (Baoli Vanadium), a subsidiary of NationStar
Optoelectronics, is in a state of non-continuous operations, the Interim Report 2022 of Baoli Vanadium for the
current period was formulated at fair value or costs whichever was lower.
Compared with the previous period, the consolidation scope of the current financial statements added two
subsidiaries of NationStar Optoelectronics and Sigma, and five sub-subsidiaries of NationStar Electronic
Manufacturing, NationStar Semiconductor, Baoli Vanadium Industry, New Electronic and Germany NationStar.
For details, please refer to Note VIII “Changes in the Scope of Consolidation" and Note IX "Interests in Other
Subjects".
29
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company are based on the continuing operation, and are confirmed and measured
according to the actual transactions and events, the Accounting Standards for Business Enterprises - Basic
Standards, other various specific accounting standards, the application guide, the interpretation of accounting
standards for business enterprises (hereinafter referred to as the Accounting Standards for Business Enterprises).
And based on the following important accounting policies, and accounting estimations, they are prepared
according to the relevant regulations of Rules for the Information Disclosure of Companies Publicly Issuing
Securities No. 15 - General Provisions on Financial Reporting of China Securities Regulatory Commission
(Revised in 2014). Except the Cash Flow Statement prepared under the principle of cash basis, the rest of financial
statement of the Company are prepared under the principle of accrual basis.
The Company didn’t find anything like being suspicious of the ability of continuing operation within 12 months
from the end of the Reporting Period with all available information.
2. Continuation
The Company has no matters affecting the continuing operation of the Company and is expected to have the
ability to continue to operate in the next 12 months. The financial statements of the Company are prepared on the
basis of continuing operation.
V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The Company confirmed the specific accounting policies and estimations according to production and operation
features, mainly reflecting in the method of provision for expected credit loss of accounts receivables (Note 12.
Accounts Receivable), depreciation of fixed assets and amortization of intangible assets (Note 24. Fixed Assets
and Note 30. Intangible Assets), and recognition of revenue (Note 39. Revenue), etc.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the Accounting Standards for Business
Enterprises, which factually and completely present the Company’s and the consolidated financial positions,
business results and cash flows, as well as other relevant information.
2. Fiscal Year
A fiscal year starts on January 1st and ends on December 31st according to the Gregorian calendar.
3. Operating Cycle
An operating cycle for the Company is 12 months, which is also the classification criterion for the liquidity of its
assets and liabilities.
30
4. Recording Currency
Renminbi is the recording currency for the statements of the Company, and the financial statements are listed and
presented by Renminbi.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not under the
Same Control
1. Business Combinations under the Same Control
For the merger of enterprises under the same control, if the consideration of the merging enterprise is that it makes
payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of merger, regard the share of the
book value among final controller’s consolidated financial statement of the owner's equity of the merged
enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the
long-term equity investment and the payment in cash, non-cash assets transferred as well as the book value of the
debts borne by the merging party shall offset against the capital reserve. If the capital reserve is insufficient to
dilute, the retained earnings shall be adjusted.
If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger,
regard the share of the book value among final controller’s consolidated financial statement of the owner's equity
of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the stocks
issued shall be regarded as the capital stock, while the difference between the initial cost of the long-term equity
investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is
insufficient to dilute, the retained earnings shall be adjusted.
2. Business Combinations not under the Same Control
The Company measured the paid assets as the consideration of business combination and liabilities happened or
undertaken by fair value. The difference between fair value and its book value shall be included into the current
losses and gains. The Company distributed combined cost on the purchasing date.
The difference of the combination cost greater than the fair value of the identifiable net assets of the acquiree
acquired is recognized as goodwill; the difference of the combination cost less than the fair value of the
identifiable net assets of the acquiree acquired is included into current losses and gains.
As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to
the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely to
flow into the Company and their fair values can be measured reliably, they shall be separately recognized and
measured in light of their fair values; intangible asset whose fair value can be measured reliably shall be
separately recognized as an intangible asset and shall measured in light of its fair value; As for the liabilities other
than contingent liabilities acquired from the acquiree, if the performance of the relevant obligations is likely to
result in any out-flow of economic benefits from the Company, and their fair values can be measured reliably,
they shall be separately recognized and measured in light of their fair values; As for the contingent liabilities of
the acquiree, if their fair values can be measured reliably, they shall separately recognized as liabilities and shall
be measured in light of their fair values.
6. Methods for Preparing Consolidated Financial Statements
1. Principle of Determining the Scope of Consolidation
The scope of consolidation of the consolidated financial statements of the Company is determined on the basis of
control. Control means that the investors has the right to invest in the investee and enjoy a variable return through
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the participation of the relevant activities of the investee, and has the ability to use the power over the investee to
affect the amount of its return. The Company includes the subsidiaries with actual right of control (including
separate entity controlled by the Parent Company) into consolidated financial statements.
2. Principles, Procedures and Methods for the Preparation of Consolidated Statements
(1) Principles, Procedures and Methods for the Preparation of Consolidated Statements
All subsidiaries included into the scope of consolidated financial statements adopted same accounting policies and
fiscal year with the Company. If the accounting policies and fiscal year of the subsidiaries are different to the
Company’s, necessary adjustment should be made in accordance with the Company’s accounting policies and
fiscal year when consolidated financial statements are prepared.
The consolidated financial statements are based on the financial statements of the Parent Company and
subsidiaries included into the consolidated scope. The consolidated financial statements are prepared by the
Company who makes adjustment to long-term equity investment to subsidiaries by equity method according to
other relevant materials after the offset of the share held by the Parent Company in the equity capital investment
of the Parent Company and owner’s equity of subsidiaries and the significant transactions and intrabranch within
the Company.
For the balance formed because the current loss shared by the minority shareholders of the subsidiary is more than
the share enjoyed by the minority shareholders of the subsidiary in the initial shareholders’ equity, if the Articles
of Corporation or Agreement didn’t stipulate that minority shareholders should be responsible for it, then the
balance need to offset the shareholders’ equity of the Company; if the Articles of Corporation or Agreement
stipulated that minority shareholders should be responsible for it, then the balance need to offset the minority
shareholders’ equity.
(2) Treatment Method of Increasing or Disposing Subsidiaries during the Reporting Period
During the Reporting Period, if the subsidiaries were added due to Business combinations under the same control,
then initial book balance of consolidated balance sheet need to be adjusted; the income, expenses, and profits of
subsidiaries from the combination’s period-begin to the end of the reporting period need to be included into
consolidated income statement; the cash flow of subsidiaries from the combination’s period-begin to the end of
the reporting period need to be included into consolidated cash flow statement. if the subsidiaries were added due
to Business combinations not under the same control, then initial book balance of consolidated balance sheet
doesn’t need to be adjusted; the income, expenses, and profits of subsidiaries from the purchasing date to the end
of the reporting period need to be included into consolidated income statement; the cash flow of subsidiaries from
purchasing date to the end of the reporting period need to be included into consolidated cash flow statement.
During the Reporting Period, if the Company disposed the subsidiaries, then the income, expenses, and profits of
subsidiaries from period-begin to the disposal date need to be included into consolidated income statement; the
cash flow of subsidiaries from period-begin to the disposal date need to be included into consolidated cash flow
statement.
7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and be divided into
joint operations and joint ventures.
When the Company is the joint venture party of the joint operations, should recognize the following items related
to the interests share of the joint operations:
(1) Recognize the assets individually held and the assets jointly held by recognizing according to the holding
share;
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(2) Recognize the liabilities undertook individually and the liabilities jointly held by recognizing according to the
holding share;
(3) Recognize the revenues occurred from selling the output share of the joint operations enjoy by the Company;
(4) Recognize the revenues occurred from selling the assets of the joint operations according to the holding share;
(5) Recognize the expenses individually occurred and the expenses occurred from the joint operations according
to the holding share of the Company.
When the Company is the joint operation party of the joint ventures, should recognize the investment of the joint
ventures as the long-term equity investment and be measured according g to the said methods of the notes of the
long-term equity investment of the financial statement.
8. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for
cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,
which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency and Accounting Method for Foreign Currency
1. Foreign Currency Business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spot
exchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balance
sheet date and the spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be
recorded into the profits and losses at the current period except that the balance of exchange arising from foreign
currency borrowings for the purchase and construction or production of qualified assets shall be capitalized. The
foreign currency non-monetary items measured at the historical cost shall still be translated at the spot exchange
rate on the transaction date.
2. Translation of Foreign Currency Financial Statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet
date. Among the owner’s equity items, except for the items as “undistributed profits”, other items shall be
translated at the spot exchange rate at the time when they are incurred. The revenues and the expenses items of the
income statement should be translated according to the spot rate on the exchange date.
The difference of the foreign currency financial statements occurred from the above translation should be listed
under the “other comprehensive income” item of the owners’ equity of the consolidated financial statement. As
for the foreign currency items which actually form into the net investment of the foreign operation, the exchange
difference occurred from the exchange rate changes should be listed under the “other comprehensive income” of
the owners’ equity among the consolidated financial statement when compile the consolidated financial statement.
When disposing the foreign operation, as for the discounted difference of the foreign financial statement related to
the foreign operation should be transferred in the current gains and losses according to the proportion. The foreign
cash flow adopts the spot exchange rate on the occurring date of the cash flow. And the influenced amount of the
exchange rate changes should be individually listed among the cash flow statement.
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10. Financial Instruments
Financial instruments refer to the contracts that constitute a company’s financial assets and the financial liabilities
or equity instruments of other units.
1. Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument, it shall recognize a financial asset or financial
liability.
A financial asset (or part of a financial asset or part of a group of similar financial assets) that meets the following
conditions should be derecognized, or in other words, be written off from its account and balance sheet:
1) The right to receive cash flow from the financial asset has expired;
2) The right to receive cash flow from the financial asset has been transferred, or the “transfer” agreement
specifies the obligation to duly pay the full amount of cash flow received to a third party; and (a) has transferred
substantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
A financial liability that has been fulfilled, canceled or expired should be derecognized. If a financial liability is
replaced with another financial liability by the same creditor on almost entirely different terms materially, or the
terms for an existing liability have been almost fully revised materially, such replacement or revision should be
treated as derecognition of the original liability and recognition of the new liability, and the difference should be
included into current profits/losses.
A financial asset traded in a conventional manner should be recognized and derecognized by trade-date
accounting. The trading of financial assets in a conventional manner means that financial assets are received or
delivered by the deadline as specified in regulations or general practice according to contract provisions. Trade
date refers to the date committed by the Company to buy or sell a financial asset.
2. Classification and measurement of financial assets
The Company classifies the financial assets when initially recognized into financial assets measured at amortized
cost, financial assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets management
and characteristics of contractual cash flow of financial assets. Financial assets initially recognized shall be
measured at their fair values. For accounts receivable and notes receivable excluding major financing or without
regard to financing over one year generated from ales of commodities or provision of labor services, the initial
measurement shall be conducted based on the transaction price.
For financial assets at fair value through profit or loss, the transaction expenses thereof shall be directly included
into the current profit or loss; for other financial assets, the transaction expenses thereof shall be included into the
initially recognized amount.
The subsequent measurement of financial assets depends on the classification thereof:
(1) Debt instrument investments measured at amortized cost
Financial assets meeting the following conditions at the same time shall be classified as financial assets measured
at amortized cost: the business mode of the Company to manage such financial assets targets at collecting the
contractual cash flow. The contract of such financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. The interest income
for this kind of financial assets shall be recognized by effective interest method, and the gains or losses generated
from the derecognition, modification or impairment shall all be included into the current profit or loss. This kind
of financial assets mainly consist of monetary capital, accounts receivable and notes receivable, other receivables,
investments in debt obligations and long-term receivables. The Company presents the investments in debt
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obligations due within one year since the balance sheet date and long-term receivables as current portion of
non-current assets and the original investments in debt obligations with maturity date within one year as other
current assets.
(2) Investments in debt instruments measured at fair value and changes thereof recorded into other comprehensive
income
Financial assets meeting the following conditions at the same time shall be classified as financial assets measured
at fair value and changes thereof recorded into other comprehensive income: the business mode of the Company
to manage such financial assets takes contract cash flow collected as target and selling as target. The contract of
such financial assets stipulates that the cash flow generated in the specific date is the payment of the interest based
on the principal and outstanding principal amount. The interest income for this kind of financial assets shall be
recognized by effective interest method. All changes in fair value should be included into other comprehensive
income except for interest income, impairment losses and exchange differences, which should be recognized as
current profits/losses. When a financial asset is derecognized, the cumulative gains or losses included into other
comprehensive income previously should be transferred out and included into current profits/losses. Such
financial assets should be presented as other credit investments. Other credit investments that will mature within
one year from the date of balance sheet should be presented as non-current assets due within one year, and other
credit investments with the original maturity date coming within one year should be presented as other current
assets.
(3) Equity instrument investment measured at fair value with changes included into other comprehensive income
The Company irrevocably chooses to designate part of non-trading equity instrument investments as financial
assets measured at fair value with changes included into other comprehensive income. Only related dividend
income (excluding the dividend income confirmed to be recovered as part of investment costs) will be recognized
into current profits/losses, while subsequent changes in fair value will be recognized into other comprehensive
income without the withdrawal of impairment provisions required. When a financial asset is derecognized, the
cumulative gains or losses included into other comprehensive income previously should be recognized into
retained earnings. Such financial assets should be presented as other equity investments.
A financial asset that meets one of the following conditions is classified as a trading financial asset: The financial
asset has been acquired in order to be sold or repurchased in the near future; the financial asset is part of an
identifiable financial instrument portfolio under centralized management, and there is evidence proving that the
company has recently adopted a short-term profit model; it is a derivative instrument, but derivative instruments
that are designated as and are effective hedging instruments and those conforming with financial guarantee
contracts are excluded.
(4) Financial assets at fair value through profit or loss
The Company classifies financial assets except for above-mentioned financial assets measured with amortized
cost and financial assets measured with fair value whose change is included into other comprehensive income into
financial assets at fair value through profit or loss. The subsequent measurement of such kind of financial assets
shall be conducted by fair value method and all changes in fair value shall be recorded into the current profit or
loss. Such financial assets shall be presented as trading financial assets, and those will due over one year since the
balance sheet date and expectedly held over one year shall be presented as other non-current financial assets.
3. Classification and measurement of financial liabilities
The Company’s financial liabilities are, on initial recognition, classified into financial liabilities at fair value
through profit or loss, other financial liabilities and derivative instruments designated as effective hedging
instruments. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediately
recognized in profit or loss for the current period, and transaction costs relating to other financial liabilities are
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included in the initial recognition amounts.
The subsequent measurement of financial liabilities depends on the classification thereof:
(1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities (including the derivative
instruments belonging to financial liabilities) and financial liabilities designated at the initial recognition to be
measured by the fair value and their changes are recorded in the current profit or loss.
A financial liability that meets one of the following conditions is classified as a trading financial liability: The
financial liability has been undertaken in order to be sold or repurchased in the near future; the financial liability is
part of an identifiable financial instrument portfolio under centralized management, and there is evidence proving
that the company has recently adopted a short-term profit model; it is a derivative instrument, but derivative
instruments that are designated as and are effective hedging instruments and those conforming with financial
guarantee contracts are excluded. Trading financial liabilities (including derivative instruments classified as
financial liabilities) should be subsequently measured at fair value, and all changes in fair value should be
recorded into current profits/losses, except for those related to hedging accounting.
(2) Other financial liabilities
For such kind of financial liabilities, the subsequent measurement shall be conducted by effective interest method
based on the amortized cost.
4. Impairment of financial instruments
Based on expected credit losses, the Company carries out impairment treatment on financial assets measured at
amortized cost and debt instrument investments measured at fair value with changes included into other
comprehensive income, rental receivables, contract assets and financial assets and recognizes bad debt provision.
Credit losses refer to the difference between all contract cash flows discounted by the original actual interest rate
receivable according to contracts and all cash flows expected to be received by the Company, which is the present
value of all cash shortfalls. The financial assets purchased by or originating from the Company with credit
impairment should be discounted by the actual interest rate of the financial assets after credit adjustment.
In respect of receivable accounts that do not contain significant financing components, the Company uses the
simplified measurement method to measure bad debt provision by the amount equivalent to the expected credit
losses of the whole duration.
In respect of receivable accounts that contain significant financing components, the Company opts to use the
simplified measurement method to measure bad debt provision by the amount equivalent to the expected credit
losses for the whole duration.
For other financial assets and financial guarantee contracts than the above using the simplified measurement
method, the Company on the balance sheet date assesses whether their credit risks have increased substantially
since the initial recognition. If the credit risks have not increased substantially since the initial recognition and are
in the first stage, the Company will measure bad debt provision by the amount equivalent to the expected credit
losses for the next 12 months and calculate interest income by the book balance and the actual interest rate; if the
credit risks have increased obviously without credit impairment since the initial recognition and are in the second
stage, the Company will measure bad debt provision by the amount equivalent to the expected credit losses for the
whole duration and calculate interest income by the book balance and the actual interest rate; if the credit risks
have increased substantially with credit impairment since the initial recognition and are in the third stage, the
Company will measure bad debt provision by the amount equivalent to the expected credit losses for the whole
duration and calculate interest income by the amortized cost and the actual interest rate. For financial instruments
with only low credit risks on the balance sheet date, the Company assumes that their credit risks have not
increased substantially since the initial recognition.
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The Company 1) assesses expected credit losses of financial assets with credit impairment based on individual
items; 2) assesses expected credit losses of financial assets that are not derecognized but with changes in contract
cash flows due to revision of or renegotiation on contracts by the Company and the counterparty, based on
individual items; 3) assesses expected credit losses of other financial assets based on age combination.
The Company considers related past matters, current conditions, the reasonableness of the forecast on future
economic conditions and well-founded information when assessing expected credit losses.
The Company’s information of the judgment standards for remarkable increase in credit risks, definition of assets
with incurred credit impairment and assumption of measurement on expected credit losses is disclosed in this
Note 12 Accounts Receivable.
When no longer reasonably expects to recover all or partial contractual cash flow of financial assets, the Company
directly writes down the carrying amount of the financial assets.
5. Financial instruments offset
a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet when
the following conditions are met at the same time: When the Company has a legal right that is currently
enforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a net
basis, or to realize the financial asset and settle the financial liability simultaneously.
6. Financial guarantee contract
A financial guarantee contract refers to a contract in which a specific debtor shall compensate the contract holder
suffering the losses when the debtor is unable to repay the debt in due course according to the debt instrument
terms. Financial guarantee contracts are measured at fair value at the initial recognition. After the initial
recognition, all financial guarantee contracts should be subsequently measured by the higher amount between the
amount of bad debt provision for expected credit losses recognized on the balance sheet date and the balance of
the initially recognized amount deducting the cumulative amortization recognized according to the income
recognition principle, except for the financial guarantee contracts designated as financial liabilities measured at
fair value with changes recorded into current profits/losses.
7. Derivative financial instruments
The Company uses derivative financial instruments, which are initially measured at the fair value on the signature
date of the derivative transaction contract and subsequently measured at their fair value. A derivative financial
instrument with a positive fair value is recognized as an asset and that with a negative fair value is recognized as a
liability. Gains or losses from changes in the fair value of derivative instruments are directly recognized into
current profits/losses.
For the financial assets that are not derecognized but with changes in contract cash flows due to revision of or
renegotiation on contracts by the Company and the counterparty, the Company recalculates the book balance of
the financial assets according to the renegotiated or revised contract cash flows by the discounted value of the
original actual interest rate (or the actual interest rate after credit adjustment). Relevant gains or losses are
recorded into current profits/losses. Costs or expenses for the revision of financial assets are adjusted to the
revised book balance of financial assets and amortized in the remaining period of the revised financial assets.
8. Transfer of financial assets
As for the Company transferred nearly all of the risks and rewards related to the ownership of a financial asset to
the transferee, should derecognize the financial assets; as for maintained nearly all of the risks and rewards related
to the ownership of a financial asset, should continue to recognize the transferred financial assets.
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Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a
financial asset, it shall deal with it according to the circumstances as follows, respectively: (1) If it gives up its
control over the financial asset, it shall stop recognizing the financial asset and recognize the assets and liabilities
generated; (2) If it does not give up its control over the financial asset, it shall, according to the extent of its
continuous involvement in the transferred financial asset, recognize the related financial asset and recognize the
relevant liability accordingly.
11. Notes Receivable
The Company will always measure the provision for notes receivable whether including major financing
components or not based on the amount similar to that of expected credit losses for the whole existence period and
the amount increased or reversed of impairment for losses generated shall be recorded into the current profit or
loss as gains or losses of impairment. The bill risk portfolio determined by the Company and basis thereof are as
follows:
Item Basis
Group 1 Bank acceptance bills
Group 2 Commercial acceptance bills
For notes receivable classified into the Group 1 with low credit risks, no bad debt provision will be withdrawn.
For notes receivable classified into the Group 2, the bad debt provision shall be withdrawn based on aging with
reference to the Group 1 of accounts receivable.
12. Accounts Receivable
The Company withdraws the impairment loss for accounts receivable excluding significant financing component
with the simplified method.
1. Accounts Receivable with Significant Single Amount for which the Expected Credit Loss is Made Individually
Definition or amount criteria for an account Making separate expected credit loss for accounts receivable with a significant
receivable with a significant single amount single amount
Making separate expected credit loss for accounts For an account receivable with a significant single amount, the impairment test
receivable with a significant single amount shall be carried out on it separately. If there is any objective evidence of
impairment, the impairment loss is recognized and the expected credit loss is made
according to the difference between the present value of the account receivable’s
future cash flows and its carrying amount.
2. Accounts Receivable for which the Expected Credit Loss is Withdrawn by Credit Risk Characteristics
Group name Withdrawal method of expected credit loss
Common transaction group Aging analysis method
Internal transaction group Other methods
In the groups, those adopting aging analysis method to withdraw expected credit loss:
Aging Withdrawal proportion of expected credit loss
Within 1 year (including 1 year) 3%
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1 to 2 years 10%
2 to 3 years 30%
3 to 4 years 50%
4 to 5 years 80%
Over 5 years 100%
3. Accounts Receivable with an Insignificant Single Amount but for which the Expected Credit Loss is Made
Independently
Reason of individually withdrawing expected credit loss There are definite evidences indicate the obvious difference of thee
return ability
Withdrawal method for expected credit loss Recognizing the impairment loss and withdrawing the expected credit
loss according to the difference between the present value of the account
receivable’s future cash flows and its carrying amount.
13. Accounts Receivable Financing
Not applicable
14. Other Receivables
Recognition method and accounting treatment for expected credit losses of other receivables
Recognition method and accounting treatment for expected credit losses of other receivables
Refer to Note 12 Accounts Receivable for details about the recognition method and accounting treatment for
expected credit losses of other receivables which is the same as that of accounts receivable.
15. Inventories
1. Classification of Inventory
Inventory refers to finished products, goods in process, and materials consumed in the production process or the
provision of labor services held by the Company for sale in daily activities, mainly including raw materials, goods
in process, materials in transit, finished products, commodities, turnover materials, and commissioned processing
materials. Turnover materials include low-value consumables and packaging.
2. Pricing Method of Inventory Sent Out
The inventory is valued at actual cost when acquired, and inventory costs include procurement costs, processing
costs and other costs. The weighted average method is used when receiving or sending out inventory.
3. Basis for Determining the Net Realizable Value of Inventory and the Method of Withdrawal for Inventory
Impairment
Net realizable value refers to the estimated selling price of the inventory minus the estimated cost to be incurred at
the time of completion, the estimated selling expenses and the relevant taxes and fees in daily activities. In
determining the net realizable value of inventory, the conclusive evidence obtained is used as the basis and the
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purpose of holding the inventory and the impact of the events after the balance sheet date should be taken into
account.
For finished products, the materials used for sale and other goods used for direct sale, the net realizable value is
determined by the estimated selling price of the inventory minus the estimated selling expenses and related taxes
in the process of normal production and operation.
For materials inventory needs to be processed, the net realizable value is determined by the estimated selling price
of the finished products minus the estimated cost to be incurred, the estimated sales costs and the relevant taxes
and fees in the process of normal production and operation.
4. Inventory System
The inventory system of the Company is perpetual inventory.
5. Amortization Method of Turnover Materials
Low-value consumables are amortized in one-off method.
The packaging is amortized in one-off method.
16. Contract Assets
The Company presents the right possessed to collect consideration from customers unconditionally (only
depending on the passing of time) as accounts receivable, and the right to charge the consideration through
transferring any commodity to clients which depends on other factors except the passing of time as contract assets.
As for the recognition method and accounting treatment for expected losses of contract assets, please refer to Note
12. Accounts Receivable.
17. Contract Cost
The assets related to contract costs of the Company include contract acquisition costs and contract performance
costs. They are presented in inventories, other current assets, and other non-current assets, respectively, in
accordance with their liquidity.
The incremental cost incurred by the acquisition of a contract would be recognized as an asset in the form of a
contract acquisition cost, if it was expected to be recovered. Or if the amortization period of the asset does not
exceed a year, the asset would be recognized as profit and loss of the current period, when it occurred.
Costs incurred for performing a contract, which was not within the scope of other accounting standards for
enterprises and met the following conditions, should be recognized as an asset in the form of a contract
performance cost:
(1) The costs were directly related to a current or expected contract, including direct labor, direct materials,
manufacturing overhead (or similar), costs that are explicitly chargeable to the customer, and other costs incurred
solely because of the contract;
(2) The costs increased the future resources of the Company to perform performance obligations;
(3) The costs were expected to be recovered.
Assets related to contract costs were amortized on the same basis as the revenue recognition related to the assets,
and recognized as profit and loss of the current period.
For assets related to contract costs, if the book value was higher than the difference between the following two
items, the Company would set aside impairment provisions for the extra portion and recognize the impairment
provisions as impairment losses on assets:
(1) The remaining consideration that the Company expected to obtain due to the transfer of commodities related to
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the assets;
(2) Estimated costs to be incurred for the transfer of the related commodities.
If the result of (1) minus (2) was higher than the book value of the assets, due to the subsequent changes in the
factors of impairment in previous periods, the asset impairment provisions set aside should be reversed and
recognized as profit and loss of the current period. However, the book value of the assets, upon the reversal,
should not exceed the book value of the assets on the reversal date supposing that impairment provisions were not
set aside.
18. Assets Held for Sale
1. Assets Held for Sale
When a company relies mainly on selling (including the exchanges of non-monetary assets with commercial
substance) instead of continuing to use a non-current asset or disposal group to recover its book value, the
non-current asset or disposal group is classified as asset held for sale. The non-current assets mentioned above do
not include investment properties that are subsequently measured by the fair value model, biological assets
measured by fair value less net selling costs, assets formed from employee remuneration, financial assets, deferred
income tax assets and rights generated from insurance contracts.
Disposal group refers to a group of assets that are disposed of together as a whole through sale or other means in a
transaction, and the liabilities directly related to these assets transferred in the transaction. In certain
circumstances, the disposal group includes goodwill obtained in business combination.
The Company recognizes non-current assets or disposal groups that meet both of the following conditions as held
for sale: ① Assets or disposal groups can be sold immediately under current conditions based on the practice of
selling such assets or disposal groups in similar transactions; ② Sales are highly likely to occur, that is, the
Company has already made a resolution on a sale plan and obtained a certain purchase commitment, and the sale
is expected to will be completed within one year, and the sale has been approved if relevant regulations require
relevant authority or regulatory authority of the Company to approve it.
Non-current assets or disposal groups specifically obtained by the Company for resale will be classified by the
Company as a held-for-sale category on the acquisition date when they meet the stipulated conditions of
“expected to be sold within one year” on the acquisition date, and may well satisfy the category of held-for-sale
within a short time (which is usually 3 months).
If one of the following circumstances cannot be controlled by the Company and the transaction between
non-related parties fails to be completed within one year, and there is sufficient evidence that the Company still
promises to sell the non-current assets or disposal groups, the Company should continue to classify the
non-current assets or disposal groups as held-for-sale: ①The purchaser or other party unexpectedly sets
conditions that lead to extension of the sale. The Company has already acted on these conditions in a timely
manner and it is expected to be able to successfully deal with the conditions that led to the extension of the sale
within one year after the conditions were set. ②Due to unusual circumstances, the non-current assets or disposal
groups held for sale failed to be sold within one year. In the first year, the Company has taken necessary measures
for these new conditions and the assets or disposal groups meet the conditions of held-for-sale again.
If the Company loses control of a subsidiary due to the sale of investments to its subsidiaries, whether or not the
Company retains part of the equity investment after the sale, when the proposed sale of the investment to the
subsidiary meets the conditions of held- for-sale, the investment to the subsidiary will be classified as
held-for-sale in the individual financial statement of the parent company, and all the assets and liabilities of the
subsidiary will be classified as held-for-sale in the consolidated financial statement.
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When the company initially measures or re-measures non-current assets or disposal groups held for sale on the
balance sheet date, if the book value is higher than the fair value minus the net amount of the sale costs, the book
value will be written down to the net amount of fair value minus the sale costs, and the amount written down will
be recognized as impairment loss of assets and included in the current profit and loss, and provision for
impairment of held-for-sale assets will be made. For the confirmed amount of impairment loss of assets of the
disposal groups held for sale, the book value of goodwill of the disposal groups will be offset first, and then the
book value of various non-current assets in the disposal groups will be offset according to the proportions.
If the net amount that the fair value of the non-current assets or disposal groups held for sale on the follow-up
balance sheet date minus the sale costs increases, the previous written-down amount will be restored, and reversed
to the asset impairment loss confirmed after the assets being classified as held-for-sale. The reversed amount will
be included in the current profit or loss. The book value of goodwill that has been deducted cannot be reversed.
Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses of liabilities in the disposal group held for sale will be confirmed as
before.
When a non-current asset or disposal group ceases be classified as held-for-sale or a non-current asset is removed
out from the held-for-sale disposal group due to failure in meeting the classification conditions for the category of
held-for-sale, it will be measured by one of the followings whichever is lower:
① The book value before being classified as held for sale will be adjusted according to the depreciation,
amortization or impairment that would have been recognized under the assumption that it was not classified as
held for sale;
② The recoverable amount.
2. Termination of Operation
Termination of operation refers to a separately identifiable constituent part that satisfies one of the following
conditions that has been disposed of by the Company or is classified as held-for-sale:
(1) This constituent part represents an independent main business or a separate main business area.
(2) This constituent part is part of an associated plan that is intended to be disposed of in an independent main
business or a separate major business area.
(3) This constituent part is a subsidiary that is specifically acquired for resale.
3. Presentation
In the balance sheet, the Company distinguishes the non-current assets held for sale or the assets in the disposal
group held for sale separately from other assets, and distinguish the liabilities in the disposal group held for sale
separately from other liabilities. The non-current assets held for sale or the assets in the disposal group held for
sale are not be offset against the liabilities in the disposal group held for sale. They are presented as current assets
and current liabilities respectively.
The Company lists profit and loss from continuing operations and profit and loss from operating profits in the
income statement. For the termination of operations for the current period, the Company restates the information
originally presented as profit or loss of continuing operation in the current financial statements to profit or loss of
termination of the comparable accounting period. If the termination of operation no longer meets the conditions of
held-for-sale, the Company restates the information originally presented as a profit and loss of termination in the
current financial statements to profit or loss of continuing operation of the comparable accounting period.
19. Investments in Debt Obligations
Not applicable
42
20. Other Investments in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
Long-term equity investment refers to the Company’s long-term equity investment with control, joint control or
significant influence on the investee.
Joint control refers to the control that is common to an arrangement in accordance with the relevant agreement,
and the relevant activities of the arrangement must be agreed upon by the participant who has shared the control.
Significant influence refers to the Company has the power to participate in decision-making on the financial and
operating policies of the investee, but can’t control or jointly control the formulation of these policies with other
parties.
1. Investment Cost Recognition for Long-term Equity Investments
(1) For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment,
and the direct relevant expenses occurred for the merger of enterprises shall be included into the profits and losses
of the current period.
(2) For the merger of enterprises not under the same control, The combination costs shall be the fair values, on the
acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the
Company in exchange for the control on the acquiree, and all relevant direct costs incurred to the acquirer for the
business combination. Where any future event that is likely to affect the combination costs is stipulated in the
combination contract or agreement, if it is likely to occur and its effects on the combination costs can be measured
reliably, the Company shall record the said amount into the combination costs.
(3) The cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost
which is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-term
equity investment, taxes and other necessary expenses.
(4) The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
value of the equity securities issued.
(5) The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercial
nature) shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assets
received.
(6) The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at the
fair value.
2. Subsequent Measurement of Long-term Equity Investment and Recognized Method of Profit/Loss
The long-term equity investment with joint control (except for the common operator) or significant influence on
the investee is accounted by equity method. In addition, the Company's financial statements use cost method to
calculate long-term equity investments that can control the investee.
(1) Long-term Equity Investment Accounted by Cost Method
When the cost method is used for accounting, the long-term equity investment is priced at the initial investment
cost, and the cost of the long-term equity investment is adjusted according to additional investment or recovered
43
investment. Except the price actually paid when acquired investment or cash dividends or profits that have been
declared but not yet paid included in the consideration, current investment income is recognized by the cash
dividends or profits declared by the investee.
(2) Long-term Equity Investment Accounted by Equity Method
When the equity method is used for accounting, if the initial investment cost of the long-term equity investment is
greater than the fair value of the investee’s identifiable net assets, the initial investment cost of the long-term
equity investment shall not be adjusted; if the initial investment cost is less than the fair value of the investee’s
identifiable net assets, the difference shall be recorded into the current profits and losses, and the cost of the
long-term equity investment shall be adjusted at the same time.
When the equity method is used for accounting, the investment income and other comprehensive income shall be
recognized separately according to the net profit or loss and other comprehensive income realized by the investee,
and the book value of the long-term equity investment shall be adjusted at the same time. The part entitled shall be
calculated according to the profits or cash dividends declared by the investee, and the book value of the long-term
equity investment shall be reduced accordingly. For other changes in the owner’s equity other than the net profit
or loss, other comprehensive income and profit distribution of the investee, the book value of the long-term equity
investment shall be adjusted and included in the capital reserve. When the share of the net profit or loss of the
investee is recognized, the net profit of the investee shall be adjusted and recognized according to the fair value of
the identifiable assets of the investee when the investment is made. If the accounting policies and accounting
periods adopted by the investee are inconsistent with the Company, the financial statements of the investee shall
be adjusted according to the accounting policies and accounting periods of the Company and the investment
income and other comprehensive income shall be recognized accordingly. For the transactions between the
Company and associates and joint ventures, if the assets made or sold don’t constitute business, the unrealized
gains and losses of the internal transactions are offset by the proportion attributable to the Company, and the
investment gains and losses are recognized accordingly. However, the loss of unrealized internal transactions
incurred by the Company and the investee attributable to the impairment loss of the transferred assets shall not be
offset. If the assets made to associates or joint ventures constitute business, and the investor makes long-term
equity investment but does not obtain the control, the fair value of the investment shall be taken as the initial
investment cost of the new long-term equity investment, and the difference between initial investment and the
book value of the investment is fully recognized in profit or loss for the current period. If the assets sold by the
Company to joint ventures or associates constitute business, the difference between the consideration and the book
value of the business shall be fully credited to the current profits and losses. If the assets purchased by Company
from joint ventures or associates constitute business, conduct accounting treatment in accordance with the
provisions of Accounting Standard for Business Enterprises No. 20 - Business combination, and the profits or
losses related to the transaction shall be recognized in full.
When the net loss incurred by the investee is recognized, the book value of the long-term equity investment and
other long-term equity that substantially constitute the net investment in the investee shall be written down to zero.
In addition, if the Company has an obligation to bear additional losses to the investee, the estimated liabilities are
recognized in accordance with the obligations assumed and included in the current investment losses. If the
investee has realized net profit in later period, the Company will resume the recognition of the income share after
the income share has made up the unrecognized loss share.
(3) Acquisition of Minority Interests
In the preparation of the consolidated financial statements, capital reserve shall be adjusted according to the
difference between the long-term equity investment increased due to the purchase of minority interests and the
share of the net assets held by the subsidiary from the date of purchase (or the date of combination) calculated
44
according to the proportion of the new shareholding ratio, and retained earnings shall be adjusted if the capital
reserve is insufficient to offset.
(4) Disposal of Long-term Equity Investment
In the consolidated financial statements, the parent company partially disposes of the long-term equity investment
in the subsidiary without the loss of control, and the difference between the disposal price and the net assets of the
subsidiary corresponding to the disposal of the long-term equity investment is included in the shareholders’ equity.
If the disposal of long-term equity investment in subsidiaries results in the loss of control over the subsidiaries,
handle in accordance with the relevant accounting policies described in NotesⅥ. “Principles, Procedures and
Methods for the Preparation of Consolidated Statements” .
In other cases, the difference between the book value and the actual acquisition price shall be recorded into the
current profits and losses for the disposal of the long-term equity investment.
For long-term equity investment accounted by the equity method and residual equity after disposal still accounted
by the equity method, other comprehensive income originally included in the shareholders’ equity shall be treated
in the same basis of the investee directly disposing related assets or liabilities by corresponding proportion. The
owner’s equity recognized by the change of the owner’s equity of the investee other than the net profit or loss,
other comprehensive income and profit distribution is carried forward proportionally into the current profits and
losses.
For long-term equity investment accounted by the cost method and residual equity after disposal still accounted by
the cost method, other comprehensive income accounted by equity method or recognized by financial instrument
and accounted and recognized by measurement criteria before the acquisition of the control over the investee is
treated in the same basis of the investee directly disposing related assets or liabilities, and carried forward
proportionately into the current profits and losses. Other changes of owner’s equity in net assets of the investee
accounted and recognized by the equity method other than the net profit or loss, other comprehensive income and
profit distribution are carried forward proportionally into the current profits and losses.
3. Impairment Provisions for Long-term Equity Investments
For the relevant testing method and provision making method, see Notes 31. Impairment of Long-term Assets.
23. Investment Property
Measurement model for investment property
Cost method measurement
Method for depreciation or amortization
The Company's investment real estates include leased land use rights, leased buildings, and land use rights held
and ready to be transferred after appreciation. Investment real estate is initially measured according to cost, and
then measured by cost model.
1. Recognition of investment real estate
Investment real estate can only be recognized if it meets the following conditions at the same time: (1) Economic
benefits related to investment real estate are likely to flow into enterprises. (2) The cost of the investment real
estate can be measured reliably.
2. Initial measurement of investment real estate
(1) The cost of purchased investment real estate includes the purchase price, relevant taxes and fees and other
expenses directly attributable to the asset.
(2) The cost of self-construction of investment real estate consists of the necessary expenses incurred before the
construction of the asset reaches the predetermined serviceable condition.
45
(3) The cost of investment real estate acquired by other means shall be determined in accordance with relevant
accounting standards.
(4) Subsequent expenditures related to investment real estate, if they meet the confirmation conditions of
investment real estate, shall be included in the cost of investment real estate; those that do not meet the
recognition conditions are included in the current profits and losses when they occur.
3. Subsequent measurement of investment real estate
The Company adopts the cost model to carry out subsequent measurement of investment real estate on the balance
sheet date. According to the relevant provisions of Accounting Standard for Business Enterprises No.4-Fixed
Assets and Accounting Standard for Business Enterprises No.6-Intangible Assets, the investment real estate is
amortized or depreciated according to the life average method within the expected useful life.
4. Conversion of investment real estate
The Company has conclusive evidence that the use of real estate has changed, and the investment real estate is
converted into other assets, or other assets are converted into investment real estate, and the book value before the
conversion of real estate is taken as the recorded value after the conversion.
24. Fixed Assets
(1) Recognition Conditions
Fixed assets of the Company refers to the tangible assets that simultaneously possess the features as follows: they
are held for the sake of producing commodities, rendering labor service, renting or business management; and their
useful life is in excess of one accounting year and unit price is higher. No fixed assets may be recognized unless it
simultaneously meets the conditions as follows: ① The economic benefits pertinent to the fixed asset are likely to
flow into the Company; and ② The cost of the fixed asset can be measured reliably. The Company's fixed assets are
initially measured at cost. Specifically, the costs of purchased fixed assets include the purchase price, relevant taxes
and fees, and other expenditures incurred before the fixed assets reach the pre-determined serviceable condition that
can be directly attributable to the assets. The costs of self-built fixed assets contain the necessary expenditures
incurred before the assets built reach their pre-determined serviceable condition. If the amount paid for the purchase
of fixed assets witnesses postponed payment due to that the normal credit conditions are exceeded and is actually
financing in nature, the costs of such fixed assets shall be determined on the basis of the present value of the
purchase price. The difference between the actual amount paid and the present value of the purchase price, except
for the difference that should be capitalized, shall be recognized as profit and loss of the current period during the
credit period.
(2) Depreciation Method
Category of fixed Expected net salvage
Method Useful life Annual deprecation
assets value
Housing and building Average method of
3—30 years 1%-5% 31.67%-3.17%
useful life
Machinery equipments Average method of
2—10 years 1%-5% 47.50%-9.50%
useful life
Transportation vehicle Average method of
5—10 years 1%-5% 19.00%-9.50%
useful life
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Average method of
Electronic equipment 2—8 years 1%-5% 47.50%-11.88%
useful life
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
A finance lease refers to a lease where all the risks and rewards, related to the ownership of the leasehold property,
are substantially transferred, regardless of whether the ownership is eventually transferred or not. The policy for the
accrual of the depreciation of the leasehold property for the fixed assets acquired under the finance lease was
consistent with that adopted for the Company's self-owned fixed assets. Where it could be reasonably certain that
the Company would obtain the ownership of the leasehold property at the end of the lease term, the leasehold
property would be depreciated within the service life. Where it could not be reasonably certain that the Company
could obtain ownership of the leased property at the end of the lease term, the leased property would be depreciated
within the lease term or the service life of the leased property whichever was shorter.
25. Construction in Progress
1. Pricing of Construction in Progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carried forward
into fixed assets at the actual cost when reach intended usable condition. The borrowing expenses eligible for
capitalization incurred before the delivery of the construction are included in the construction cost; after the
delivery, the relevant interest expense shall be recorded into the current profits and losses.
2. Standard and Time of Construction in Progress Carrying Forward into Fixed Assets
The Company’s construction in progress is carried forward into fixed assets when the construction completes and
reaches intended usable condition. The criteria for determining the intended usable condition shall meet one of the
following:
(1) The physical construction (including installation) of fixed assets has been completed or substantially
completed;
(2) Has been produced or run for trial, and the results indicate that the assets can run normally or can produce
stable products stably, or the results of the trial operation show that it can operate normally;
(3) The amount of the expenditure on the fixed assets constructed is little or almost no longer occurring;
(4) The fixed assets purchased have reached the design or contract requirements, or basically in line with the
design or contract requirements.
3. Provision for Impairment of Construction in Progress
Please refer to Note 31 Impairment of Long-term Assets, for details of impairment test methods and impairment
provision methods of construction in progress.
26. Borrowing Costs
The borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,
including interest on borrowings, amortization of discounts or premiums, ancillary expenses and exchange
differences arising from foreign currency borrowings. The borrowing costs incurred by the Company directly
attributable to the acquisition, construction or production of assets eligible for capitalization are capitalized and
included in the cost of the relevant assets. Other borrowing costs are recognized as expenses according to the
amount at the time of occurrence, and are included in the current profits and losses.
1. Principle of capitalization of borrowing costs
Borrowing costs can be capitalized when all the following conditions are met: Asset expenditure has already
occurred; borrowing costs have already occurred; construction or production activities necessary to bring the
47
assets to the intended useable or sellable status have already begun.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the capitalization of borrowing costs starting to the end of
capitalization, excluding the period when capitalization is suspended.
If assets that meet the conditions of capitalization are interrupted abnormally in the course of construction or
production, and the interruption time exceeds 3 consecutive months, the capitalization of borrowing costs shall be
suspended. The borrowing costs incurred during the interruption are recognized as expenses and included in
current profits and losses until the acquisition or construction of the assets is resumed. The capitalization of the
borrowing costs continues if the interruption is a procedure necessary for the purchase or production of assets
eligible for capitalization to meet the intended useable or sellable status.
The borrowing costs shall cease to be capitalized when the purchased or produced assets that meet the conditions
of capitalization meet the intended useable or sellable status. The borrowing costs incurred after the assets eligible
for capitalization meet the intended useable or sellable status can be included in the current profits and losses
when incurred.
3. Calculation method of capitalized amount of borrowing costs
During the period of capitalization, the capitalization amount of interests (including amortization of discounts or
premiums) for each accounting period is determined in accordance with the following provisions:
(1) For special borrowings for the acquisition or construction of assets eligible for capitalization, the interest
expenses actually incurred in the current period of borrowings shall be recognized after deducting the interest
income obtained by depositing the unused borrowing funds into the bank or investment income obtained from
temporary investment.
(2) Where the general borrowing is occupied for the acquisition or construction of assets eligible for capitalization,
the Company multiplies the weighted average of the asset expenditure of the accumulated asset expenditure
exceeding the special borrowing by the capitalization rate of the general borrowing to calculate the amount of
interest that should be capitalized for general borrowings. The capitalization rate is determined based on the
weighted average interest rate of general borrowings.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
On the start date of the lease term, the Company recognizes its right to use the leasehold property in the lease term
as right-of-use assets, including: The initial measurement amount of the lease obligation; the lease payment paid
on or before the start date of the lease term. If there is a lease incentive, the amount related to the lease incentive
taken should be deducted. the initial direct cost incurred by the lessee; the estimated cost that the lessee will use to
pull down and remove the leasehold property, and restore the site of the leasehold property or restore the
leasehold property to the state agreed in the lease clauses. Then, the Company will depreciate the right-of-use
assets with the straight-line method. 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 remaining
48
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 asset(s) over the lease term or the remaining service life,
whichever is shorter. When the Company re-calculates the lease obligation using the present value (PV) of the
changed lease payment and correspondingly adjusts the book value of the right-of-use assets, if the book value is
already reduced to zero, yet the lease obligation still needs to be reduced further, the Company will include the
remaining amount in the current profit or loss.
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Recognition Criteria of Intangible Assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without
physical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to the
definition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into
the Company; (3) The costs of the assets can be measured reliably.
2. Initial Measurement of Intangible Assets
Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets, including the purchase price, relevant taxes and other expenses
directly attributable to the intended use of the asset. The payment of purchase price of intangible assets exceeding
normal credit terms is deferred, and the cost of intangible assets having financing nature in essence shall be
recognized based on the present value of the purchase price. The difference between the actual payment price and
the present value of the purchase price shall be recorded into the current profits and losses in the credit period
except that can be capitalized in accordance with the Accounting Standard for Business Enterprises No. 17 -
Borrowing Cost.
(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in the
investment contract or agreement, except that the value of the contract or agreement is unfair.
3. Subsequent Measurement of Intangible Assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets
is limited, and the years of the useful life or output that constitutes the useful life or similar measurement units
shall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term that
brings economic benefits to the Company is unforeseeable
Intangible assets with limited useful life shall be amortized by straight line method from the time when the
intangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertain useful
life shall not be amortized. The Company reviews the estimated useful life and amortization method of intangible
assets with limited useful life at the end of each year, and reviews the estimated useful life of intangible assets
with uncertain useful life in each accounting period. For intangible assets that evidence shows the useful life is
limited, the useful life shall be estimated and the intangible assets shall be amortized in the estimated useful life.
4. Recognition Criteria and Withdrawal Method of Intangible Asset Impairment Provision
The impairment test method and withdrawal method for impairment provision of intangible assets are detailed in
Note 31: Long-term asset impairment under Note V.
(2) Accounting Policy for Internal Research and Development Expenditures
The expenditures in internal research and development projects of the Company are classified into expenditures in
49
research stage and expenditures in development stage. The expenditures in research stage are included in the
current profits and losses when incurred. The expenditures in development stage are recognized as intangible
assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits, including the proof that the products
produced with the intangible asset have market or the proof of its usefulness if the intangible asset has market and
will be used internally;
(4) Having sufficient technical, financial resources and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred since meeting intangible assets
recognition criterion until reaching intended use. Expenditures that have been expensed in previous periods are no
longer adjusted.
Non-monetary assets exchange, debt restructuring, government subsidies and the cost of intangible assets acquired
by business combination are recognized according to relevant provisions of Accounting Standard for Business
Enterprises No. 7 - Non-monetary assets exchange, Accounting Standard for Business Enterprises No. 12 - Debt
restructuring, Accounting Standards for Business Enterprises No. 16 - Government subsidies, Accounting
Standard for Business Enterprises No. 20 - Business combination respectively.
31. Impairment of Long-term Assets
For non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited
useful life, investment real estate measured in cost mode and long-term equity investments in subsidiaries, joint
ventures and associates, the Company determines whether there is indication of impairment at balance sheet date.
If there is indication of impairment, then estimate the amount of its recoverable value and test the impairment.
Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached useable state
shall be tested for impairment every year, whether or not there is any indication of impairment.
If the impairment test results indicate that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be made at the difference and included in the impairment loss. The recoverable
amount is the higher of the fair value of the asset minus the disposal cost and the present value of the expected
future cash flow of the asset. The fair value of the asset is recognized according to the price of the sales agreement
in the fair trade; if there is no sales agreement but there is an active market, the fair value is recognized according
to the buyer’s bid of the asset; if there is no sales agreement or active market, the fair value of asset shall be
estimated based on the best information that can be obtained. Disposal costs include legal costs related to disposal
of assets, related taxes, handling charges, and direct costs incurred to enable the asset reaching sellable status. The
present value of the expected future cash flows of the assets is recognized by the amount discounted at appropriate
discount rate according to the expected future cash flows arising from the continuing use of the asset and the final
disposal. The provision for impairment of assets is calculated and recognized on the basis of individual assets. If it
is difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shall
be recognized by the asset group to which the asset belongs. The asset group is the smallest portfolio of assets that
can generate cash inflows independently.
The book value of the goodwill presented separately in the financial statements shall be apportioned to the asset
group or portfolio of asset groups that is expected to benefit from the synergies of the business combination when
50
the impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that
the recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is
lower than its book value. The amount of the impairment loss shall offset the book value of the goodwill
apportioned to the asset group or portfolio of asset groups, and offset the book value of other assets in proportion
according to the proportion of the book value of other assets except the goodwill in the asset group or portfolio of
asset groups.
Once the impairment loss of the above asset is recognized, the portion that the value is restored will not be written
back in subsequent periods.
32. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (one year
excluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shall
be amortized averagely within benefit period. In case of no benefit in the future accounting period, the amortized
value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
The amortization period of various expenses is as follows:
Item Amortization Period
Expenditure on improvement of rented fixed assets 3-5 years
Fixed repair expenditure 5 years
Mould 3 years
Wrap-around boxes 2 years
33. Contract Liabilities
The Company’s obligation of transferring commodities to customers due to consideration received or receivable
from clients. If the client has paid the contract consideration or the Company has obtained the unconditional right
of collection before the Company transfers commodities to the customer, the Company shall present the accounts
received or receivable as contract liabilities at the earlier time between the time when the client actually conducts
payment and the deadline of payment. Contract assets and contract liabilities under the same contract shall be
presented based on the net amount, while those not under the same contract shall not be offset.
34. Payroll
(1) Accounting Treatment of Short-term Compensation
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and
benefits, medical insurance premiums, birth insurance premium, industrial injury insurance premium, housing
fund, labor union expenditure and personnel education fund, non-monetary benefits etc. The short-term
compensation actually happened during the accounting period when the active staff offering the service for the
Group should be recognized as liabilities and is included in the current gains and losses or relevant assets cost. Of
51
which the non-monetary benefits should be measured according to the fair value.
(2) Accounting Treatment of the Welfare after Demission
Welfare after demission mainly includes defined contribution plans and defined benefit plans. Of which defined
contribution plans mainly include basic endowment insurance, unemployment insurance, annuity funds, etc., and
the corresponding payable and deposit amount should be included into the relevant assets cost or the current gains
and losses when happen.
(3) Accounting Treatment of the Demission Welfare
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor
contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a
layoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier date
between the time when the Group could not one-sided withdraw the demission welfare which offered by the plan
or layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost related to the
reorganization of the payment of the demission welfare and at the same time includes which into the current gains
and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report
within 12 months, should be disposed according to other long-term payroll payment.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare.
The group would recorded the salary and the social security insurance fees paid and so on from the employee’s
service terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under the
condition that they meet the recognition conditions of estimated liabilities.
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be
accounting disposed according to the setting drawing plan, while the rest should be disposed according to the
setting revenue plan.
35. Lease Liabilities
On the start date of the lease term, the Company recognizes the PV of the unpaid lease payment as a lease
obligation, except for the short-term and low-value asset leases. It will regard the interest rate implicit in lease as
the rate of discount, when calculating the PV of the lease payment. The incremental lending rate of the lessee will
be deemed as the rate of discount, if the interest rate implicit in lease cannot be confirmed. The Company
calculates the interest charge of the lease obligation in each period in the lease term at a fixed periodic interest rate
and includes it in the current profit or loss, unless such interest charge is stipulated to be included in the
underlying asset cost. Variable lease payments that are not included in the measurement of the lease obligation
should be included in the current profit or loss when they are actually incurred, unless such payments are
stipulated to be included in the underlying asset cost.
The Company will re-calculate the lease obligation using the PV of the changed lease payment, if the actual fixed
payment, the estimated payable of the residual value of the guarantee, the index or rate used to confirm the lease
payment, or the assessment result of the call option, the renewal option, or the termination option, or the actual
exercise changes, after the start date of the lease term.
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36. Provisions
1. Recognition of Provisions
The obligation such as external guaranty, pending litigation or arbitration, product quality assurance, layoff plan,
loss contract, restructuring and disposal of fixed assets, pertinent to a contingencies shall be recognized as an
provisions when the following conditions are satisfied simultaneously: ① That obligation is a current obligation of
the enterprise; ① It is likely to cause any economic benefit to flow out of the enterprise as a result of performance
of the obligation; and ① The amount of the obligation can be measured in a reliable way
2. Measurement of Provisions
The provisions shall be initially measured in accordance with the best estimate of the necessary expenses for the
performance of the current obligation. If there is a sequent range for the necessary expenses and if all the
outcomes within this range are equally likely to occur, the best estimate shall be determined in accordance with
the middle estimate within the range. In other cases, the best estimate shall be conducted in accordance with the
following situations, respectively: ① If the Contingencies concern a single item, it shall be determined in the light
of the most likely outcome. ① If the Contingencies concern two or more items, the best estimate should be
calculated and determined in accordance with all possible outcomes and the relevant probabilities. ① When all or
some of the expenses necessary for the liquidation of an provisions of an enterprise is expected to be compensated
by a third party, the compensation should be separately recognized as an asset only when it is virtually certain that
the reimbursement will be obtained. The Company shall check the book value of the provisions on the balance
sheet date. The amount of compensation is not exceeding the book value of the recognized provisions.
37. Share-based Payment
Not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
1. Accounting policies adopted in revenue recognition and measurement
The Company recognizes revenue when it has satisfied its performance obligations under the contract, i.e., when the
customer has obtained control of relevant goods or services. Obtaining control of relevant goods or services means
being able to direct the use of them and obtain substantially all of the benefits from them.
Where the contract contains two or more performance obligations, the Company, at the inception date of the contract,
allocates the transaction price to each performance obligation in accordance with the relative proportion of the
stand-alone selling price of the goods or services promised by each performance obligation. The Company measures
revenue on the basis of the transaction price allocated to each performance obligation.
Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer, excluding amounts collected on behalf of third parties and amounts
expected to be returned to the customer. The Company determines the transaction price in accordance with the terms
of the contract, with past business practices taken into account. When determining the transaction price, it considers
53
the impact of variable consideration, the existence of a significant financing component in the contract, non-cash
consideration, consideration payable to a customer and other factors. The transaction price is recognized only to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not
occur when the relevant uncertainty is resolved. Where a contract contains a significant financing component, the
Company determines the transaction price on the basis of the amount presumably payable in cash when the
customer obtains control of the goods or services, and uses the actual interest method to amortize the difference
between the transaction price and the contract consideration during the contract period.
A performance obligation is satisfied over time if one of the following conditions is met; otherwise, it is treated as
satisfied at a point in time:
(1) The customer simultaneously receives and consumes the benefits provided by the Company's performance as the
Company performs.
(2) The customer can control the goods as they are created during the Company's performance.
(3) The goods produced by the Company's performance have no alternative use, and the Company has the right to
collect payment for performance completed to date during the entire contract period.
Where a performance obligation is to be satisfied over time, the Company recognizes revenue in accordance with
the progress of performance during that period, except when the progress cannot be reasonably determined. In
determining the progress of performance, the Company takes into account the nature of the goods or services and
adopts the output methods or the input methods.
Where the performance progress cannot be reasonably determined, and the costs incurred are expected to be
recovered, the Company recognizes revenue according to the amount of the costs incurred until the progress can be
reasonably determined.
Where the performance obligation is to be satisfied at a certain point in time, the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether the customer has
obtained control of goods or services, the Company considers the following indicators:
(1) The Company has a present right to receive payment for the goods or services, i.e., the customer has a present
obligation to pay for the goods or services.
(2) The Company has transferred the legal ownership of the goods to the customer, i.e., the customer has obtained
the legal ownership of the goods.
(3) The Company has transferred physical possession of the goods to the customer, i.e., the customer has taken
physical possession of the goods.
(4) The Company has transferred significant risks and rewards of ownership of the goods to the customer, i.e., the
customer has obtained significant risks and rewards of ownership of the goods.
(5) The customer has accepted the goods or services.
2. Specific methods
(1) Recognition of domestic sales revenue: 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; the
freight company has shipped the goods, the amount of revenue has been determined, an export sales invoice has
54
been issued, and the payment has been received or is expected to be recovered.
Differences in accounting policies for the recognition of revenue caused by different business models for the same
type of business
40. Government Subsidies
1. Category of Government Subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Company from the
government, which mainly include government subsidies related to assets and government subsidies related to
income.
2. Distinction Standard of Government Subsidies Related to Assets with Government Subsidies Related to Income
The government subsidies related to assets refer to the government subsidies obtained for acquisition, construction
or otherwise formation of long-term assets. The government subsidies related to income refer to the government
subsidies except the government subsidies related to assets.
The specific standard of classifying the government subsidies as subsidies related to assets: government subsidies
for acquisition, construction or otherwise formation of long-term assets.
The specific criteria that the Company classifies government subsidies as income related is: other government
subsidies other than asset-related government subsidies.
If the government documents do not specify the subsidy object, the bases that the Company classified the
government subsidies as assets-related subsidies or income-related subsidies were as follows: (1) If the specific
items for which the subsidy is targeted are stipulated in government documents, divide according to the relative
proportion of the amount of expenditure that forms assets and the amount of expenditure included in the cost in
the budget for that particular project, and the proportion shall be reviewed at each balance sheet date and changed
as necessary; (2) if the government documents only have a general statement of the purpose and do not specify a
specific project, the subsidy is recognized as government subsidy related to income.
3. Measurement of Government Subsidies
If a government subsidy is a monetary asset, it shall be measured according to the amount received or receivable.
If a government subsidy is a non-monetary asset, it shall be measured at its fair value, and shall be measured at a
nominal amount (RMB1) when the fair value cannot be obtained reliably.
For confirmed government subsidies that need to be returned, if there is relevant deferred income, the book
balance of related deferred income shall be written off and the excess shall be charged to profit or loss for the
Current Period; for other circumstances, it shall be directly charged to profit or loss for the Current.
4. Accounting Treatment for Government Subsidies
The Company adopts the gross method to confirm government subsidies.
The government subsidies related to assets are recognized as deferred income, and are charged to the current
profit or loss in a reasonable and systematic manner within the useful lives of the relevant assets (subsidies related
to the daily activities of the Company are included in other income; while subsidies unrelated to the daily
activities of the Company are included in non-operating income). Government subsidies measured at nominal
amounts are directly charged to profit or loss for the Current Period. Where the relevant assets are sold, transferred,
scrapped or damaged before the end of their useful lives, the balance of related undistributed deferred income
shall be transferred to the profit or loss of the asset disposal in the Current Period.
Government subsidies related to income shall be treated as follows:
55
(1) government subsidies used to compensate the relevant costs, expenses or losses of the Company in the
subsequent period shall be recognized as deferred income, and shall be included in the current profit and loss
during the period of confirming the relevant costs, expenses or losses (subsidies related to the daily activities of
the Company are included in other income; while subsidies unrelated to the daily activities of the Company are
included in non-operating income);
(2) government subsidies used to compensate the relevant costs, expenses or losses incurred by the Company
shall be directly included in the current profits and losses (subsidies related to the daily activities of the Company
are included in other income; while subsidies unrelated to the daily activities of the Company are included in
non-operating income).
For government subsidies that include both assets-related and income-related parts, they should be distinguished
separately for accounting treatment; for government subsidies that are difficult to be distinguished, they should be
classified as income-related.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The income tax of the Company includes the current income tax and deferred income tax. Both are recorded into
the current gains and losses as income tax expenses or revenue, except in the following circumstances:
(1) The income tax generated from the business combination shall be adjusted into goodwill;
(2) The income tax related to the transaction or event directly included in shareholders’ equity shall be recorded
into shareholders’ equity.
At the balance sheet date, the Company recognizes the deferred income tax assets or deferred income tax
liabilities in accordance with the balance sheet liability method for the temporary difference between the book
value of assets or liabilities and its tax base.
The Company recognizes all taxable temporary differences as deferred income tax liabilities unless taxable
temporary differences arise in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of the assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination and neither the accounting profit
nor the taxable income is incurred at the time of the transaction;
(2) The time of write-back of taxable temporary differences related to the investments in subsidiaries, associates
and joint ventures can be controlled and the temporary differences are likely to not be written back in the
foreseeable future.
The Company recognizes the deferred income tax assets arising from deductible temporary differences, subject to
the amount of taxable income obtained to offset the deductible temporary differences, unless the deductible
temporary differences arise in the following transactions:
(1) The transaction is not a business combination, and the transaction does not affect the accounting profit or the
amount of taxable income;
(2) The deductible temporary differences related to the investments in subsidiaries, associates and joint ventures
are not met simultaneously: Temporary differences are likely to be written back in the foreseeable future and are
likely to be used to offset the taxable income of deductible temporary differences in the future.
At the balance sheet date, the Company measures the deferred income tax assets and deferred income tax
liabilities at the applicable tax rate of the period expected to recover the asset or pay off the liabilities according to
tax law, and reflects the income tax effect of expected assets recovery or liabilities payoff method at the balance
sheet date.
56
At the balance sheet date, the Company reviews the book value of the deferred income tax assets. If it is likely
that sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in the
future period, the book value of the deferred income tax assets will be written down. If it is probable that
sufficient taxable income will be available, the amount of write-down will be written back.
42. Lease
(1) Accounting Treatment of Operating Lease
As the lessee:
On the start date of the lease term, the Company deems the right-of-use assets and lease obligations of all the
operating leases, except for the simplified short-term lease and low-value leases. See Note 29. Right-of-use Assets
and 35. Lease Liabilities for the general accounting treatment of the Company as the lessee.
Lease change
A lease change refers to a change in the scope, consideration, and term of lease outside the original contract
clauses, including the addition or termination of the one or several rights to use lease assets, and the extension or
reduction of the lease term specified in the contract.
When the lease changes and the following conditions are met, the Company will regard the lease charge as a
separate lease for accounting treatment:
(1) The lease change expands the scope of lease through the increase of one or several rights to use the lease
assets;
(2) The increased consideration and the separate price of the expanded part of the scope of lease are the same,
upon adjustment, according to the contract.
If the lease change is not deemed as a separate lease for accounting treatment, the Company will re-amortize the
consideration of the changed contract, re-confirm the lease term, and re-calculate the PV of the lease obligation
using the changed lease payment and the revised rate of discount, on the date when the lease change takes effect.
The Company will correspondingly reduce the book value of the right-of-use assets and include the profit or loss
of the lease terminated in part or whole in the current profit or loss, if the lease change narrows the scope of lease
or shortens the lease term. The Company will correspondingly adjust the book value of the right-of-use assets, if
other lease changes result in the re-calculation of the lease obligation.
Short-term and low-value asset leases
The Company chooses not to confirm the right-of-use assets and lease obligations of the short-term and low-value
asset leases, and include the relevant lease payment in each period in the lease term in the current profit or loss or
the underlying asset cost on a straight-line basis. A short-term lease refers to the lease whose lease term does not
exceed 12 months and that does not include the call option on the start date of the lease term. A low-value asset
lease refers to the lease where the value will be low when the single lease asset is the new asset. For the leasehold
property that is underleased or expected to be underleased, the original lease does not belong to low-value asset
lease.
As the lessor:
The Company classifies lease into finance and operating leases on the start date of the lease term. A finance lease
refers to the lease where almost all the risks and remuneration, related to the ownership of the leasehold property,
is transferred, no matter whether the ownership is finally transferred or not. An operating lease refers to all leases
other than finance leases.
57
The lease receivable of the operating lease in each period in the lease term is deemed as a rental on a straight-line
basis. The Company capitalizes the initial direct cost related to the operating finance, amortize and include it in
the current profit or loss on the basis same as the recognition of rentals in the lease term. Variable lease payments
that are not included in the lease receivable are included in the current profit or loss when they are actually
incurred. If an operating lease changes, the Company will regard it as a new lease for accounting treatment from
the effective date of the change. The advance receipt or the lease receivable related to the lease prior to the change
is recognized as the payment receivable of the new lease.
(2) Accounting Treatments of Financial Lease
As the lessee:
For financing leased assets, on the beginning date of the lease term, the lower of the fair value of the leased asset and
the present value of the minimum lease payment amount on the lease commencement date is taken as the recorded
value of the leased asset, the minimum lease payment amount is regarded as the recorded value of long-term
payables, and the difference is regarded as unrecognized financing expense, which is apportioned by the effective
interest rate method in each period of the lease term. The contingent rentals are included in the profit or loss for the
current period upon actual incurrence thereof.
As the lessor:
The Company confirms the finance lease receivable of the finance lease and finally confirms the finance leasehold
property on the start date of the lease term. It recognizes the net investment in the lease as the entry value of the
finance lease, when initially calculating the finance lease receivable. The net investment in the lease is the sum of
the net value of the unguaranteed residual value and the lease receivable not received on the start date of the lease
term at the interest rate implicit in lease. The Company calculates and confirms the interest income at a fixed
periodic interest rate in each period in the lease term.
43. Other Significant Accounting Policies and Estimates
Naught
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
□Applicable Not applicable
(2) Changes in Accounting Estimates
□Applicable Not applicable
45. Other
Naught
58
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or taxable
VAT 3%, 6%, 9%, 13%
service
Urban maintenance and construction tax Turnover tax payable 7%, 5%
Enterprise income tax Taxable income 10%, 15%, 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company, Zhida Company, Chanchang Company, Nanning
Liaowang, Chongqing Guinuo, Liuzhou Lighting, Liuzhou
15%
Foreshine, Headquarters of NationStar Optoelectronics,
NationStar Semiconductor, Germany NationStar
FSL Lighting GmbH 15%
Indonesia Liaowang 10%
Other subsidiaries 25%
2. Tax Preference
1. The Company passed the re-examination for High-tech Enterprises in 2020, as well as won the “Certificate of
High-tech Enterprise” after approval by Department of Science and Technology of Guangdong Province,
Department of Finance of Guangdong Province, Guangdong Provincial Bureau of State Taxation and Guangdong
Provincial Bureau of Local Taxation. In accordance with relevant provisions in Corporate Income Tax Law of the
People’s Republic of China and the Administration Measures for Identification of High-tech Enterprises
promulgated in 2007, the Company paid the corporate income tax based on a tax rate of 15% within three years
since 1 January 2020.
2. Zhida Company and Chanchang Company passed the examination for High-tech Enterprises respectively in
December 2019 and December 2021, and thus Zhida Company and Chanchang Company paid the corporate
income tax based on a tax rate of 15% within three years respectively since 1 January 2019 and 1 January 2021 in
accordance with relevant provisions in Corporate Income Tax Law of the People’s Republic of China and the
Administration Measures for Identification of High-tech Enterprises promulgated in 2007.
3. According to the Decision on Tax Matters approved by the Local Taxation Bureau of Nanning High-tech
Industrial Development Zone (NGDSSB [2015] No. 1), Nanning Liaowang will enjoy the preferential tax reduction
and exemption of enterprise income tax in the western development from 1 January 2015, and the enterprise income
tax will be levied at a reduced rate of 15%.
4. After being examined and filed by the competent tax authorities, Chongqing Guinuo will enjoy the preferential
59
tax reduction and exemption of enterprise income tax in the western development from 1 January 2019, and the
enterprise income tax will be levied at a reduced rate of 15%.
5. According to the letter (LFGH Zi [2020] No. 196) issued by Liuzhou Development and Reform Commission on
17 August 2020, Liuzhou Guige Photoelectric is determined to be in line with the encouraged industries in the
western region, and the enterprise income tax will be paid at a reduced rate of 15% from 1 January 2020.
6. According to the letter (GKGH [2021] No. 237) jointly issued by the Science and Technology Department of
Guangxi Zhuang Autonomous Region, Finance Department of Guangxi Zhuang Autonomous Region and Guangxi
Zhuang Autonomous Region Tax Service, State Taxation Administration on 30 November 2021, Liuzhou Guige
Foreshine is recognized as a high-tech enterprise (the certificate has not been obtained yet), and the preferential tax
rate of income tax for high-tech enterprises is 15%.
7. NationStar Optoelectronics, a subsidiary of the Company, 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 2020, and its new certificate number is GR202044006337 dated 9 December 2020. Its corporate income tax
rate for 2020-2022 is 15%.
8. Foshan NationStar Semiconductor Technology Co., Ltd., 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 dated 20 December 2021. Its corporate income tax rate for 2021-2023 is 15%.
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 68,284.86 24,635.14
Bank deposits 1,399,979,420.13 1,800,849,053.18
Other monetary assets (Note 1) 436,039,030.34 578,254,717.74
Unexpired interest (Note 2) 3,352,901.50 2,783,249.29
Total 1,839,439,636.83 2,381,911,655.35
Of which: Total amount deposited
38,119,429.22 27,310,928.58
overseas
Total amount with
restrictions on use due to mortgage, 448,713,603.58 247,425,015.48
pledge or freeze
Other notes
Note 1: Other monetary assets were security deposits for notes and performance bonds, as well as investments
placed with security firm and the balance with e-commerce platforms, of which the security deposits for notes and
performance bonds were restricted assets (see “81. Assets with Restricted Ownership or Right of Use” in Note
“VII Notes to Consolidated Financial Statements”).
Note 2: Unexpired interest did not belong to cash and cash equivalents.
60
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through
64,068,462.40 348,248,125.61
profit or loss
Including:
Equity instrument investments 1,397,612.10 1,558,778.18
Wealth management products 62,670,850.30 342,422,447.43
Others 4,266,900.00
Including:
Total 64,068,462.40 348,248,125.61
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 1,372,158,706.47 1,659,553,102.56
Commercial acceptance bill 41,633,566.90 30,803,389.08
Total 1,413,792,273.37 1,690,356,491.64
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Categor
Withdra Carrying Withdra Carrying
y Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Of
which:
notes
receivab
le
withdra 1,415,0 1,413,7 1,690,9 1,690,3
1,287,6 628,640
wn bad 79,909. 100.00% 100.00% 92,273. 85,132. 100.00% 100.00% 56,491.
36.09 .59
debt 46 37 23 64
provisio
n by
group
Of
which:
Bank 1,372,1 96.97% 0.00 0.00% 1,372,1 1,659,5 98.14% 0.00 0.00% 1,659,5
61
acceptan 58,706. 58,706. 53,102. 53,102.
ce bill 47 47 56 56
Commer
cial 42,921, 1,287,6 41,633, 31,432, 628,640 30,803,
3.03% 100.00% 1.86% 100.00%
acceptan 202.99 36.09 566.90 029.67 .59 389.08
ce bill
1,415,0 1,413,7 1,690,9 1,690,3
1,287,6 628,640
Total 79,909. 100.00% 100.00% 92,273. 85,132. 100.00% 100.00% 56,491.
36.09 .59
46 37 23 64
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 42,921,202.99 1,287,636.09 3.00%
Total 42,921,202.99 1,287,636.09
Note:
Please refer to the relevant information of disclosure of bad debt provision of other receivables if adopting the general mode of
expected credit loss to withdraw bad debt provision of notes receivable.
□Applicable Not applicable
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Notes
receivable
withdrawn bad
debt provision
separately
Notes
receivable
withdrawn bad 628,640.59 658,995.50 1,287,636.09
debt provision
by group
Total 628,640.59 658,995.50 1,287,636.09
For commercial acceptance bills, there is difference in withdrawal proportion of bad debts between the Company
as the Parent and the majority-owned subsidiary NationStar. The Company unified the accounting estimates in the
consolidated financial statements and complementally withdrew the bad debt provision of RMB429,212.03 for
notes receivable.
Of which, bad debt provision collected or reversed with significant amount:
□Applicable Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
62
Item Amount pledged at the period-end
Bank acceptance bill 821,993,782.57
Total 821,993,782.57
(4) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not recognition termination at
Item
period-end the period-end
Bank acceptance bill 675,292,723.41
Total 675,292,723.41
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
(6) The Actual Write-off Notes Receivable
Naught
5. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Categor
Withdra Carrying Withdra Carrying
y Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Account
s
receivab
le
withdra
33,512, 33,367, 144,991 33,512, 31,123, 2,389,1
wn bad 1.45% 99.57% 1.60% 92.87%
866.15 874.59 .56 866.15 709.17 56.98
debt
provisio
n
separatel
y
Of
which:
63
Account
s
receivab
le
withdra 2,284,4 2,186,0 2,063,2 1,979,1
98,441, 84,056,
74,693. 98.55% 4.31% 33,552. 05,995. 98.40% 4.07% 49,687.
wn bad 141.68 307.99
96 28 27 28
debt
provisio
n by
group
Of
which:
(1)
General 2,284,4 2,186,0 2,063,2 1,979,1
98,441, 84,056,
74,693. 98.55% 4.31% 33,552. 05,995. 98.40% 4.07% 49,687.
business 141.68 307.99
96 28 27 28
portfolio
(2)
Internal
business
portfolio
2,317,9 2,186,1 2,096,7 1,981,5
131,809 115,180
Total 87,560. 100.00% 5.69% 78,543. 18,861. 100.00% 5.49% 38,844.
,016.27 ,017.16
11 84 42 26
Individual withdrawal of bad debt provision:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Involved in the lawsuit,
the Company won the
lawsuit in the second
Customer A 11,220,827.14 11,220,827.14 100.00%
instance, which had not
yet executed
completely
Existing pending
Customer B 9,111,336.51 9,111,336.51 100.00%
litigation matters
Less likely to be
Customer C 6,024,216.41 6,024,216.41 100.00%
recovered
Existing pending
Customer D 4,702,051.28 4,702,051.28 100.00%
litigation matters
The compensation
amount of the customer
Customer E 815,484.27 815,484.27 100.00% lawsuit is large, and
less likely to be
recovered
Existing pending
Customer F 526,858.54 526,858.54 100.00%
litigation matters
Customer G 523,448.92 523,448.92 100.00% The customer had
64
executed bankruptcy
liquidation in
December 2020, thus
the accounts were
unrecoverable.
Expected to be
Customer H 395,321.00 395,321.00 100.00%
unrecoverable
In the processing of
customer complaints,
Customer I 193,322.08 48,330.52 25.00%
the possibility of bad
debts is greater
Total 33,512,866.15 33,367,874.59
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk group 2,284,474,693.96 98,441,141.68 4.31%
Total 2,284,474,693.96 98,441,141.68
Please refer to the relevant information of disclosure of bad debt provision of other receivables if adopting the general mode of
expected credit loss to withdraw bad debt provision of accounts receivable.
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 2,141,771,714.41
1 to 2 years 97,849,610.15
2 to 3 years 12,018,016.13
Over 3 years 66,348,219.42
3 to 4 years 29,532,295.52
4 to 5 years 21,599,874.05
Over 5 years 15,216,049.85
Total 2,317,987,560.11
(2) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Bad debt
provision 31,123,709.1 33,367,874.5
2,244,165.42
separately 7 9
accrued
65
Bad debt
provision
84,056,307.9 14,385,162.7 98,441,141.6
withdrawn 329.04
9 3 8
according to
groups
115,180,017. 16,629,328.1 131,809,016.
Total 329.04
16 5 27
For common business group, there is difference in withdrawal proportion of expected credit losses between the
Company as the Parent and the majority-owned subsidiary NationStar. The Company unified the accounting
estimates in consolidated financial statements and complementally withdrew bad debt provision of
RMB6,019,862.42 for accounts receivable.
The amount of expected credit loss accrued in the current period is RMB16,527,279.88, and the amount of
expected credit loss recovered or reversed in the current period is RMB0.00, which is RMB102,048.27 different
from the amount of credit impairment loss accrued in the current period of RMB16,629,328.15, which is caused
by the translation difference of foreign currency statement of Indonesia Liaowang at the end of the period.
(3) Accounts Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount
Other retails accounts 329.04
Of which, verification of significant accounts receivable:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
The approval
procedure is
carried out
Other retails
Payment for goods 329.04 Unrecoverable according to the Not
accounts
Company’s rules
for managing bad
debt.
Total 329.04
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Proportion to total ending
Ending balance of accounts Ending balance of bad debt
Name of units balance of accounts
receivable provision
receivable (%)
No. 1 152,875,068.03 6.60% 4,586,252.04
No. 2 89,987,854.53 3.88% 2,699,635.64
66
No. 3 79,809,077.83 3.44% 2,394,272.33
No. 4 71,161,243.67 3.07% 2,134,837.31
No. 5 55,652,405.43 2.40% 1,669,572.16
Total 449,485,649.49 19.39%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Naught
6. Accounts Receivable Financing
Naught
Increase or decrease of accounts receivable financing and changes in fair value thereof
□Applicable Not applicable
If the depreciation reserve for accounts receivable financing was withdrawn in accordance with the general model
of expected credit losses, the information related to depreciation reserve shall be disclosed by reference to the
disclosure method of other receivables:
□Applicable Not applicable
7. Prepayment
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 28,409,430.08 74.28% 26,325,276.67 78.64%
1 to 2 years 7,056,500.42 18.45% 4,740,160.27 14.16%
2 to 3 years 229,005.90 0.60% 553,744.18 1.65%
Over 3 years 2,549,224.67 6.67% 1,854,923.20 5.54%
Total 38,244,161.07 33,474,104.32
67
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Unit: RMB
Name of Relationship with the Proportion to total prepayments
Ending balance Prepayment time
units Company (%)
No. 1 Non-related party 2,731,478.94 7.14% 1 to 2 years
No. 2 Non-related party 1,436,720.69 3.76% Within 1 year
No. 3 Non-related party 1,407,273.77 3.68% Within 1 year
No. 4 Non-related party 1,327,340.00 3.47% Within 1 year
No. 5 Non-related party 1,083,340.97 2.83% Within 1 year
Total —— 7,986,154.37 20.88% ——
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 31,235,165.53 37,523,072.02
Total 31,235,165.53 37,523,072.02
(1) Interest Receivable
1) Category of Interest Receivable
Naught
2) Significant Overdue Interest
Naught
3) Withdrawal of Bad Debt Provision
□Applicable Not applicable
68
(2) Dividends Receivable
1) Category of Dividends Receivable
Naught
2) Significant Dividends Receivable Aged over 1 Year
Naught
3) Withdrawal of Bad Debt Provision
□Applicable Not applicable
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
VAT export tax refunds 5,260,428.72 4,674,335.06
Performance bond 15,114,786.48 12,056,403.00
Staff borrow and petty cash 2,342,223.49 4,018,439.87
Rent, water & electricity fees 1,458,352.75 2,564,557.87
Other 38,298,697.53 45,643,798.95
Total 62,474,488.97 68,957,534.75
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Expected loss in the
Bad debt provision Expected credit loss of duration (credit Total
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
890,724.80 6,224,279.95 24,319,457.98 31,434,462.73
2022
Balance of 1 January
2022 in the Current
Period
Withdrawal of the
-234,354.72 103,008.43 -131,346.29
Current Period
Verification of the
6,100.00 27,693.00 30,000.00 63,793.00
Current Period
Balance of 30 June
650,270.08 6,299,595.38 24,289,457.98 31,239,323.44
2022
Changes of carrying amount with significant amount changed of loss provision in the current period
69
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 22,573,384.78
1 to 2 years 8,058,085.07
2 to 3 years 5,938,709.25
Over 3 years 25,904,309.87
3 to 4 years 2,907,396.35
4 to 5 years 1,049,775.73
Over 5 years 21,947,137.79
Total 62,474,488.97
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Other 31,434,462.7 31,239,323.4
-131,346.29 63,793.00
receivables 3 4
31,434,462.7 31,239,323.4
Total -131,346.29 63,793.00
3 4
For common business group, there is difference in withdrawal proportion of expected credit losses between the
Company as the Parent and the majority-owned subsidiary NationStar. The Company unified the accounting
estimates in consolidated financial statements and complementally withdrew bad debt provision of
RMB11,531.29 for other receivables.
The amount of expected credit loss accrued in the current period is RMB-133,776.54, and the amount of expected
credit loss recovered or reversed in the current period is RMB0.00, which is RMB2,430.55 different from the
amount of credit impairment loss accrued in the current period of RMB-131,346.29, which is caused by the
translation difference of foreign currency statement of Indonesia Liaowang at the end of the period.
Of which bad debt provision revered or recovered with significant amount:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
Item Amount
70
Bid security and deposit 32,743.00
Others 31,050.00
Of which significant actual verification of other receivables:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
The approval
procedure shall be
carried out
according to the
Litigation costs are Company’s rules
Other retails Bid security and
32,743.00 high and there is a for managing bad Not
accounts deposit
risk of losing debts regarding to
verification
application before
accounts can be
verified
The approval
procedure shall be
carried out
according to the
Litigation costs are Company’s rules
Other retails
Other 31,050.00 high and there is a for managing bad Not
accounts
risk of losing debts regarding to
verification
application before
accounts can be
verified
Total 63,793.00
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Intercourse
20,000,000.00 Over 5 years 32.01% 20,000,000.00
accounts
No. 2 VAT export tax
4,496,365.98 Within 1 year 7.20% 172,842.34
refunds
No. 3 Intercourse
2,673,256.53 Within 2 years 4.28% 428,945.80
accounts
No. 4 Performance bond 1,946,000.00 Within 1 year 3.11% 122,223.17
No. 5 Intercourse
1,712,634.80 Within 3 years 2.74% 583,800.00
accounts
Total 30,828,257.31 49.34% 21,307,811.31
71
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Naught
9. Inventory
Whether the Company needs to comply with disclosure requirements for real estate industry
No
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves of reserves of
inventory or inventory or
Item Carrying depreciation Carrying depreciation
Carrying value Carrying value
amount reserves of amount reserves of
contract contract
performance performance
cost cost
358,341,044. 352,004,114. 381,168,885. 14,729,292.6 366,439,592.
Raw materials 6,336,930.47
72 25 07 4 43
Goods in 12,237,323.8 12,237,323.8 317,007,606. 317,007,606.
process 2 2 13 13
Inventory 1,192,382,48 133,644,653. 1,058,737,82 1,223,620,51 135,963,343. 1,087,657,16
goods 0.34 16 7.18 1.60 21 8.39
Revolving
5,434,655.63 5,434,655.63 3,231,115.87 3,231,115.87
materials
69,802,063.2 66,611,234.8 93,671,492.2 90,140,697.8
Goods in transit 3,190,828.40 3,530,794.31
6 6 0 9
Semi-finished 304,323,618. 303,995,116. 100,723,505. 100,345,745.
328,502.08 377,760.65
goods 44 36 66 01
20,649,158.5 20,649,158.5
Others 5,177,062.67 5,177,062.67
6 6
Total 1,963,170,34 143,500,914. 1,819,669,43 2,124,600,17 154,601,190. 1,969,998,98
72
4.77 11 0.66 9.20 81 8.39
(2)Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
14,729,292.6
Raw materials 592,123.14 8,984,485.31 6,336,930.47
4
Inventory 135,963,343. 19,075,837.9 21,394,528.0 133,644,653.
goods 21 9 4 16
Semi-finished
377,760.65 90,386.67 139,645.24 328,502.08
goods
Goods in transit 3,530,794.31 -339,965.91 3,190,828.40
154,601,190. 19,418,381.8 30,518,658.5 143,500,914.
Total
81 9 9 11
Item Basis for withdrawal of falling price Reasons for reversal or write-off of falling Note
reserves of inventory price reserves of inventory
The lower one between the inventory Sales or scrap of raw materials
Raw materials
cost and net realizable value
The lower one between the inventory Sales or scrap of products
Inventory goods
cost and net realizable value
Goods in transit The lower one between the inventory Sales or scrap of products
cost and net realizable value
Reasons for the provision for inventory depreciation: Provisions are set for the stagnancy of a few raw materials;
some inventory products become idle due to classification.
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Naught
(4) Amortization Amount of Contract Performance Cost during the Reporting Period
Naught
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item
Carrying Depreciation Carrying value Carrying Depreciation Carrying value
73
amount reserves amount reserves
Contract assets 8,794,261.68 704,705.05 8,089,556.63 8,826,085.67 264,782.57 8,561,303.10
Total 8,794,261.68 704,705.05 8,089,556.63 8,826,085.67 264,782.57 8,561,303.10
If the bad debt provision for contract assets in accordance with the general model of expected credit losses, the
information related to the bad debt provision shall be disclosed by reference to the disclosure method of other
receivables:
□Applicable Not applicable
11. Held-for-Sale Assets
Unit: RMB
Ending Estimated
Depreciation Ending Estimated
Item carrying Fair value disposal
reserves carrying value disposal time
amount expense
Houses,
buildings and 17,147,339.8 17,147,339.8 183,855,895. 55,718,333.9 31 December
land involved in 4 4 00 5 2022
expropriation
17,147,339.8 17,147,339.8 183,855,895. 55,718,333.9
Total --
4 4 00 5
Other notes:
Note: For details, see Part X-XVI.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
Input tax of VAT to be certified and
40,618,746.09 111,605,177.04
deducted
Advance payment of enterprise income
10,323,874.76 10,562,615.78
tax
Others 3,400,896.19 3,507,355.35
Total 54,343,517.04 125,675,148.17
74
14. Investments in debt obligations
Naught
15. Other Investments in Debt Obligations
Naught
16. Long-term Accounts Receivable
(1) List of Long-term Receivables
Naught
(2) Derecognition of Long-term Receivables due to the Transfer of Financial Assets
Naught
(3) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Long-term Receivables
Naught
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains
Ending
and Cash
Beginni Adjust Withdra balance
losses bonus Ending
ng Additio Reduce ment of Change wal of of
Investe recogni or balance
balance nal d other s of depreci depreci
es zed profits Other (carryin
(carryin investm investm compre other ation ation
under announ g value)
g value) ent ent hensive equity reserve reserve
the ced to
income s s
equity issue
method
I. Joint ventures
Jiangsu
Fozhao
Contrac
t
Energy
4,804,
Manage
965.64
ment
Develo
pment
Co.,
Ltd.
75
Shenzh
en
Primatr
onix 181,54 180,11
650,45 2,080,
(Nanho 5,123. 5,189.
7.40 390.50
) 09 99
Electro
nics
Ltd.
Subtota 181,54 180,11
650,45 2,080, 4,804,
5,123. 5,189.
l 7.40 390.50 965.64
09 99
II. Associated enterprises
181,54 180,11
650,45 2,080, 4,804,
Total 5,123. 5,189.
7.40 390.50 965.64
09 99
Other notes
1. The Company's subsidiary, NationStar Optoelectronics, entered into the Contribution Agreement of Jiangsu Fozhao Contract
Energy Management Development Co., Ltd. with the natural persons, Ye Zongcai and Zhao Qiaoyue, on 3 August 2012, to jointly
establish Jiangsu Fozhao Contract Energy Management Development Co., Ltd. (Jiangsu Fozhao) with the registered capital of
RMB20 million, wherein NationStar Optoelectronics contributed RMB5 million, representing 25.00% of the total investment.
2. Jiangsu Fozhao has been in the red since its establishment, so its production and operations have been stopped. Additionally, its
cash realizable value is quite low. Up to now, impairment provisions have been set aside to fully cover the long-term equity
investment of Jiangsu Fozhao, in line with relevant regulations, such as the No. 8 Accounting Standards for Business
Enterprises—Asset Impairment.
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Non-listed equity investment 41,559,860.92 41,559,860.92
Listed equity investment 1,123,157,619.00 1,463,420,163.15
Total 1,164,717,479.92 1,504,980,024.07
Disclosure of non-trading equity instrument investment by items
Unit: RMB
Reason for
Amount of Reason for
assigning to
other other
measure in fair
Dividend comprehensive comprehensive
Accumulative Accumulative value and the
Item income income income
gains losses changes
recognized transferred to transferred to
included in
retained retained
other
earnings earnings
comprehensive
76
income
Not satisfied
with the
Gotion 698,286,384. Sale of
1,715,644.18 6,804,316.24 condition of
High-tech 47 shareholdings
trading equity
instrument
Not satisfied
with the
Stock of 14,339,628.7 188,899,142. 94,112,907.9 Sale of
condition of
Xiamen Bank 5 57 5 shareholdings
trading equity
instrument
Beijing
Guangrong Not satisfied
Lianmeng with the
Semiconductor
601,263.41 condition of Not applicable
lighting
Industry trading equity
Investment instrument
Center(L.P.)
19. Other Non-current Financial Assets
Naught
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 49,792,377.90 49,792,377.90
2. Increased amount of
the period
(1) Outsourcing
(2) Transfer from
inventories/fixed
assets/construction in
progress
(3) Enterprise
combination increase
3. Decreased amount of
the period
77
(1) Disposal
(2) Other transfer
4. Ending balance 49,792,377.90 49,792,377.90
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 6,444,553.56 6,444,553.56
2. Increased amount of
1,182,568.97 1,182,568.97
the period
(1) Withdrawal or
1,182,568.97 1,182,568.97
amortization
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 7,627,122.53 7,627,122.53
III. Depreciation
reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying
42,165,255.37 42,165,255.37
value
2. Beginning carrying
43,347,824.34 43,347,824.34
value
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable Not applicable
(3) Investment Property Failed to Accomplish Certification of Property
Naught
Other notes
In October 2021, the Company held the 20th meeting of the ninth Board of Directors, where the Proposal on
Changing Some Self-used Real Estate into Investment Real Estate and Measuring by Cost Model was deliberated
78
and adopted, and the K2 and K3 buildings of Gaoming Fuwan Standard Workshop were changed from fixed
assets projects to investment real estate projects, measured by cost model, and depreciation was accrued by the
same method as fixed assets.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 3,336,828,807.79 3,360,175,223.96
Disposal of fixed assets 717,389.62 164,686.99
Total 3,337,546,197.41 3,360,339,910.95
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Other Total
buildings equipment equipment equipment
I. Original
carrying value
1. Beginning 1,737,595,30 4,469,670,84 42,703,535.6 61,090,328.9 83,460,720.9 6,394,520,72
balance 0.29 1.25 6 8 7 7.15
2. Increased
227,234,238. 231,114,447.
amount of the 894,770.78 534,994.18 2,246,529.05 203,915.31
39 71
period
(1) 23,124,224.5 25,309,983.0
21,554.42 534,994.18 1,582,994.99 46,214.90
Purchase 7 6
(2)
Transfer from 204,110,013. 205,804,464.
873,216.36 663,534.06 157,700.41
construction in 82 65
progress
(3)
Enterprise
combination
increase
3. Decreased
128,375,789. 132,802,155.
amount of the 2,990,815.72 1,188,796.00 246,754.89
06 67
period
(1)
125,062,387. 129,484,460.
Disposal or 2,986,522.62 1,188,796.00 246,754.89
40 91
scrap
(2)
Equipment 1,239,430.79 1,239,430.79
transformation
(3) Others 2,073,970.87 4,293.10 2,078,263.97
4. Ending 1,738,490,07 4,568,529,29 40,247,714.1 62,148,062.0 83,417,881.3 6,492,833,01
79
balance 1.07 0.58 2 3 9 9.19
II.
Accumulative
depreciation
1. Beginning 663,293,540. 2,232,542,16 31,417,598.5 45,052,211.2 60,223,768.3 3,032,529,28
balance 68 5.32 1 2 2 4.05
2. Increased
36,832,884.6 192,945,811. 236,835,122.
amount of the 1,090,607.05 2,142,857.84 3,822,961.11
0 92 52
period
(1) 36,832,884.6 192,945,811. 236,835,122.
1,090,607.05 2,142,857.84 3,822,961.11
Withdrawal 0 92 52
3. Decreased
115,883,809. 118,680,980.
amount of the -690,268.32 2,296,635.98 951,698.38 239,105.20
56 80
period
(1)
112,711,842. 115,509,013.
Disposal or -690,268.32 2,296,635.98 951,698.38 239,105.20
37 61
scrap
(2) Others 3,171,967.19 3,171,967.19
4. Ending 700,816,693. 2,309,604,16 30,211,569.5 46,243,370.6 63,807,624.2 3,150,683,42
balance 60 7.68 8 8 3 5.77
III.
Depreciation
reserves
1. Beginning
1,815,791.11 428.03 1,816,219.14
balance
2. Increased
amount of the 3,529,839.60 3,529,839.60
period
(1)
3,529,839.60 3,529,839.60
Withdrawal
3. Decreased
amount of the 25,273.11 25,273.11
period
(1)
Disposal or 25,273.11 25,273.11
scrap
4. Ending
5,320,357.60 428.03 5,320,785.63
balance
IV. Carrying
value
1. Ending 1,037,673,37 2,253,604,76 10,036,144.5 15,904,263.3 19,610,257.1 3,336,828,80
carrying value 7.47 5.30 4 2 6 7.79
2. Beginning 1,074,301,75 2,235,312,88 11,285,937.1 16,037,689.7 23,236,952.6 3,360,175,22
carrying value 9.61 4.82 5 3 5 3.96
80
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Note
value depreciation reserves
T5, T8,
energy-saving
6,962,212.78 5,382,345.77 1,536,408.16 43,458.85
lamp production
line
(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 and
led Workshop have been completed and put into use and carried forward fixed assets. As of 30 June 2022, the
relevant real estate licenses are being processed. In addition, the ownership of two parking spaces of Nanning
Liaowang at No. 155 Kerui Jiangyun and No. 160 Kerui Jiangyun, are being processed. The management believed
that there are no substantive legal barriers to the handling of these title certificates, and it will not have a significant
adverse impact on the normal operation of the Company.
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Scrap equipment 717,389.62 164,686.99
Total 717,389.62 164,686.99
22. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 1,094,362,246.23 1,087,261,052.63
Total 1,094,362,246.23 1,087,261,052.63
(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 1,095,681,04 1,094,362,24 1,088,579,85 1,087,261,05
1,318,800.00 1,318,800.00
progress 6.23 6.23 2.63 2.63
81
1,095,681,04 1,094,362,24 1,088,579,85 1,087,261,05
Total 1,318,800.00 1,318,800.00
6.23 6.23 2.63 2.63
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Propor
which:
tion of Capital
Accum amoun
accum ization
ulative t of
Transf Other ulative rate of
Beginn Increas amoun capital
erred decrea Ending invest Job interes Capital
ing ed t of ized
Item Budget in sed balanc ment schedu ts for resour
balanc amoun interes interes
fixed amoun e in le the ces
e t t ts for
assets t constr Report
capital the
uctions ing
ization Report
to Period
ing
budget
Period
Kelian 726,7 501,5 29,32 530,9 36,64
80.00 80.23
Buildi 38,90 94,85 9,889 24,74 0,953 Other
ng % %
0.00 2.04 .54 1.58 .02
15th
and
16th
floors 115,7 106,1 2,896 109,0
100.0 98.00
office 52,76 95,22 ,780. 92,00 Other
buildin 0% %
3.00 2.94 26 3.20
gs of
R&F
Center
Gaomi
ng
R&D 71,69 53,53 53,66
Works 130,6 84.00 88.00
0,000 1,061 1,728 Other
hop 66.92 % %
11, 12, .00 .32 .24
13, 14
and 18
FSL
intellig
ent 89,68 23,80 23,80
manuf 30.00 33.00
0,000 8,849 8,849 Other
acturin % %
g .00 .57 .57
factory
project
Gaomi
ng 115,0 22,20 16,76 38,97
40.00 25.00
office 00,00 9,451 6,092 5,543 Other
buildin % %
0.00 .41 .08 .49
g
Overh
aul of
Gaomi 10,89 6,242 1,055 7,297
68.00 75.00
ng No. 0,000 ,799. ,044. ,844. Other
8 tank % %
.00 53 70 23
furnac
e Work
82
order:
20029
Gaomi
ng
tank
furnac
e
The
Renov
ation
Project
of the
Pipe
Netwo
rk for
Rain
and
Sewag
e
Divers
ion in 8,000 3,428 3,626
198,1 46.00 52.00
,000. ,042. ,155. Other
the 13.21 % %
00 56 77
Gaomi
ng
Distric
t
Produc
tion
Base,
Foshan
City,
Guang
dong
Provin
ce
The
Project
of the
MES
Contra
814,4 814,4 80.00
ct of 0.00% Other
89.37 89.37 %
the
Circuit
Board
Works
hop
The 450,0 497,8 -0.01 497,8 102.0 99.00 Other
83
Circul 00.00 89.31 89.30 0% %
ar
Autom
atic
Downl
ight
Assem
bly
Line.
Work
Order
No.:
21007
Gaomi
ng
Ceilin
g
Downl
ight
Works
hop
The
Project
of
Reloca
tion
and
Renov
ation 1,874
303,3 649,3 952,6 52.00 60.00
of the ,500. Other
08.37 43.04 51.41 % %
Haloge 00
n
Lamp
Works
hop
(forme
rly T8
III)
The 2,250
411,2 411,2 21.00 30.00
PLM ,978. Other
39.71 39.71 % %
system 00
A 14,67
594,7 594,7 98.24 98.24
batch 6,705 0.00 Other
23.15 23.15 % %
of .40
84
machi
nery
and
equip
ment
from
Chong
qing
Guinu
o
Lighti
ng
Techn
ology
Co.,
Ltd.
(Chon
gqing
Guinu
o)
The
LED
R&D
and
Produc
tion
Base
on 16,55 7,348 12,01 17,96 1,401
85.02
Jihua 0,000 ,850. 4,860 2,468 ,241. Other
%
Secon .00 20 .18 .80 58
d
Road.
Others
(spora
dic
equip
ment)
The
Project
of 913,4 107,9 85,47 173,7 19,69
93.33
Produc 12,50 86,24 1,636 58,74 9,139 Other
%
tion 0.00 4.68 .87 2.29 .26
Expan
sion of
85
Packag
ing
Comp
onents
and
Chips
of
New-g
enerati
on
LEDs
The
Project
of the 1,714
234,3 9,542 3,433 240,4
,546, 15.43
Geely 19,70 ,742. ,628. 28,81 Other
700.0 %
Industr 1.33 29 26 5.36
0
ial
Park
The
Project
of
Produc
tion 20,39 2,217 4,033 3,323 2,927
58.95
0,000 ,699. ,628. ,893. ,433. Other
Expan %
.00 14 27 77 64
sion of
Chips
and
LEDs
The
sporad
ic
equip
ment
of
Foshan
Nation 14,15 4,793 4,652
370,1 511,1 67.08
7,853 ,237. ,186. Other
Star 15.00 66.05 %
.80 86 81
Semic
onduct
or
Techn
ology
Co.,
Ltd.
86
3,836 1,072 1,035
166,5 203,7 36,64
,060, ,253, ,030,
Total 03,33 25,64 0,953
900.2 243.7 931.7
1.07 3.08 .02
0 7 6
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Oxidation line engineering 1,318,800.00 Idleness
Total 1,318,800.00 --
(4) Engineering Materials
Naught
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable Not applicable
24. Oil and Gas Assets
□Applicable Not applicable
25. Right-of-use Assets
Unit: RMB
Item Houses and buildings Land use right Total
I. Original carrying value
1. Beginning balance 17,864,418.29 25,688,364.03 43,552,782.32
2. Increased amount of the
1,426,984.46 1,426,984.46
period
(1) Leased in 1,426,984.46 1,426,984.46
3. Decreased amount of the
255,370.07 255,370.07
period
（1）Disposal 255,370.07 255,370.07
4. Ending balance 19,036,032.68 25,688,364.03 44,724,396.71
II. Accumulated amortization
1. Beginning balance 5,377,288.39 24,049,287.85 29,426,576.24
2. Increased amount of the
3,701,364.73 612,660.58 4,314,025.31
period
87
(1) Withdrawal 3,701,364.73 612,660.58 4,314,025.31
3. Decreased amount of the
379,712.89 379,712.89
period
(1) Disposal 379,712.89 379,712.89
4. Ending balance 8,698,940.23 24,661,948.43 33,360,888.66
III. Depreciation reserves
1. Beginning balance
2. Increased amount of the
period
(1) Withdrawal
3. Decreased amount of the
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 10,337,092.45 1,026,415.60 11,363,508.05
2. Beginning carrying value 12,487,129.90 1,639,076.18 14,126,206.08
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Software use
Item Land use right Patent Others Total
technology right
I. Original
carrying value
1. Beginning 449,104,554. 19,301,370.3 29,895,792.5 24,344,062.2 522,645,779.
balance 53 9 2 6 70
2. Increased
amount of the 1,687,660.31 1,687,660.31
period
(1)
1,687,660.31 1,687,660.31
Purchase
(2)
Internal R&D
(3)
Business
combination
increase
3. Decreased
amount of the 1,141,509.42 5,421.50 1,146,930.92
period
(1)
1,141,509.42 5,421.50 1,146,930.92
Disposal
88
4. Ending 449,104,554. 18,159,860.9 31,578,031.3 24,344,062.2 523,186,509.
balance 53 7 3 6 09
II. Accumulated
amortization
1. Beginning 96,525,621.7 18,579,985.3 13,864,588.5 24,332,807.8 153,303,003.
balance 8 3 5 3 49
2. Increased
amount of the 4,633,012.89 222,875.07 1,284,927.22 6,138.70 6,146,953.88
period
(1)
4,633,012.89 222,875.07 1,284,927.22 6,138.70 6,146,953.88
Withdrawal
3. Decreased
amount of the 929,952.53 929,952.53
period
(1)
929,952.53 929,952.53
Disposal
4. Ending 101,158,634. 17,872,907.8 15,149,515.7 24,338,946.5 158,520,004.
balance 67 7 7 3 84
III.
Depreciation
reserves
1. Beginning
388,613.87 388,613.87
balance
2. Increased
amount of the
period
(1)
Withdrawal
3.
Decreased
amount of the
period
(1)
Disposal
4. Ending
388,613.87 388,613.87
balance
IV. Carrying
value
1. Ending 347,945,919. 16,039,901.6 364,277,890.
286,953.10 5,115.73
carrying value 86 9 38
2. Beginning 352,578,932. 15,642,590.1 368,954,162.
721,385.06 11,254.43
carrying value 75 0 34
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%.
89
(2) Land Use Right with Certificate of Title Uncompleted
Naught
27. Development Costs
Naught
28. 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
combination
goodwill
Nanning
16,211,469.8 16,211,469.8
Liaowang Auto
2 2
Lamp Co., Ltd.
Foshan
NationStar 405,620,123. 405,620,123.
Optoelectronics 64 64
Co., Ltd.
421,831,593. 421,831,593.
Total
46 46
(2) Depreciation Reserves of Goodwill
Naught
Other notes:
In 2014, Guangdong Electronics Information Industry Group Ltd., a wholly-owned subsidiary of Guangdong
Rising Holdings Group Co., Ltd., acquired NationStar. The difference between the fair value and NationStar’s
equity attributable to its shareholders on the date of acquisition resulted in a goodwill of RMB405,620,123.64.
29. Long-term Prepaid Expense
Unit: RMB
Amortization
Other decreased
Item Beginning balance Increased amount amount of the Ending balance
amount
period
Expense on
maintenance and
decoration 53,715,154.13 3,937,631.77 8,835,275.10 48,817,510.80
Mould 85,904,279.61 92,939,851.70 55,913,148.49 7,976,283.18 114,954,699.64
Boarding box 2,991,248.46 1,769,090.34 1,222,158.12
Other 10,115,830.36 3,197,070.34 3,472,785.53 9,840,115.17
Total 152,726,512.56 100,074,553.81 69,990,299.46 7,976,283.18 174,834,483.73
90
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for
343,849,141.56 52,131,048.21 336,887,150.45 51,499,888.34
impairment of assets
Unrealized profit of
15,842,184.29 2,376,327.64 21,677,239.37 3,251,585.91
internal transactions
Deductible loss 32,499,529.28 6,913,494.03 36,016,962.39 7,312,677.73
Depreciation of fixed
59,870,010.69 8,980,501.62 63,273,361.51 9,491,004.25
assets
Payroll payable 36,470,119.42 5,470,517.91 51,262,888.11 7,689,433.22
Change in fair value of
trading financial 6,698,629.55 1,004,794.43 154,129.55 23,119.43
liabilities
Accrued liabilities 17,418,343.01 2,612,751.45 17,418,343.01 2,612,751.45
Others 1,262,443.60 466,005.70 1,625,953.13 364,138.46
Lease liabilities 114,035.93 17,189.79 114,035.93 17,189.79
Total 514,024,437.33 79,972,630.78 528,430,063.45 82,261,788.58
(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
business consolidation 91,030,799.80 13,654,619.97 93,485,366.87 14,022,805.03
not under the same
control
Changes in fair value
of other investments in 881,335,527.03 132,200,329.05 1,152,615,606.86 172,892,341.03
equity instruments
Changes in fair value
of trading financial 816,070.56 178,835.44 4,912,265.32 776,194.13
assets
One-off depreciation of
712,642,232.89 106,896,334.93 616,542,996.01 92,481,449.40
fixed assets
Total 1,685,824,630.28 252,930,119.39 1,867,556,235.06 280,172,789.59
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
91
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
79,972,630.78 82,261,788.58
assets
Deferred income tax
252,930,119.39 280,172,789.59
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Naught
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Naught
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserve amount reserve
Prepayments
for equity 10,000,000.0 10,000,000.0 465,129,434. 10,000,000.0 455,129,434.
acquisition 0 0 98 0 98
(note)
Prepayments
49,249,379.0 49,249,379.0 43,316,448.1 43,316,448.1
for construction
4 4 3 3
and equipment
Assets of
subsidiaries to
743,297.93 743,297.93 903,887.30 903,887.30
be cleared and
cancelled
59,992,676.9 10,000,000.0 49,992,676.9 509,349,770. 10,000,000.0 499,349,770.
Total
7 0 7 41 0 41
Other notes:
Notes:
1. The other non-current assets of RMB455 million at the beginning of the period was the advance payment for the equity acquisition
(such payment accounted for 30% of the total price of the equity acquisition) paid by NationStar Optoelectronics to the original
shareholders of NationStar Optoelectronics, in accordance with the Share Transfer Agreement. The merger under the same control
for the current period has been completed.
92
2. The Company's subsidiary, NationStar Optoelectronics, entered into the Capital Injection Agreement with Nanyang Xicheng
Technology Co., Ltd. (Xicheng Tech). The Company paid RMB10 million for capital injection. Later, the agreement was re-signed to
change the investment method. In order to address issues related to the above payment, NationStar Optoelectronics filed a lawsuit
with the court, claiming the return of the above payment for capital injection. Currently, the court has rejected the claim. As of the
end of the Reporting Period, the impairment provision had been set aside in full.
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage loans 65,000,000.00
Guarantee loans 97,700,000.00
Credit loans 128,914,000.00
Interest from short-term borrowings 115,000.00 165,997.01
Total 65,115,000.00 226,779,997.01
Notes of short-term borrowings category:
List of short-term borrowings as of 30 June 2022 was as follows:
Unit: RMB
Borrowing contract number Loan balance Term of borrowing Conditions of Annual interest rate (%)
loan
XY WYZH2022050700423 15,000,000.00 2022-5-7 to 2023-5-7 Mortgage 2.97
XY WYZH2022021100248 30,200,000.00 2022-2-11 to 2023-2-11 Mortgage 2.76
XY WYZH2022021100314 19,800,000.00 2022-2-11 to 2023-2-11 Mortgage 2.76
Total 65,000,000.00 —— —— ——
Note: see Note XIV-3. Others in Part X for details about guarantees of short-term borrowings.
(2) List of the Short-term Borrowings Overdue but not Returned
Naught
33. Held-for-trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Including:
Financial liabilities designated to be
measured at fair value through profit or 6,544,500.00 9,367.37
loss
Including:
Other 6,544,500.00 9,367.37
Total 6,544,500.00 9,367.37
93
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 1,607,406,305.48 2,067,111,789.71
Total 1,607,406,305.48 2,067,111,789.71
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 2,228,681,333.31 2,429,896,658.92
Total 2,228,681,333.31 2,429,896,658.92
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Supplier A 32,217,532.68 No settlement yet for quality dispute
Supplier B 11,091,509.09 No settlement yet for quality dispute
Supplier C 2,568,149.78 No settlement yet for quality dispute
Supplier D 2,525,721.16 No settlement yet for quality dispute
Supplier E 2,110,178.88 No settlement yet for quality dispute
Supplier F 1,257,661.77 No settlement yet for quality dispute
Total 51,770,753.36
37. Advances from Customer
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 4,959,545.56 8,106,923.79
Total 4,959,545.56 8,106,923.79
94
(2) Significant Advances from Customers Aging over One Year
Naught
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Contract liabilities 161,528,315.35 140,228,127.84
Total 161,528,315.35 140,228,127.84
Significant changes in amount of carrying value and the reason in the Reporting Period
Naught
39. Employee Benefits Payable
(1) List of Employee Benefits Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 167,333,777.54 640,377,296.30 667,411,966.26 140,299,107.58
II. Post-employment
benefit-defined 450,312.10 50,630,612.22 50,391,435.31 689,489.01
contribution plans
III. Termination
34,907.78 34,907.78
benefits
Total 167,784,089.64 691,042,816.30 717,838,309.35 140,988,596.59
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
164,406,249.14 563,033,208.86 589,519,439.23 137,920,018.77
allowance, subsidy
2. Employee welfare 793,469.95 31,796,269.92 31,922,739.41 667,000.46
3. Social insurance 477,866.35 25,494,234.34 25,735,883.50 236,217.19
Of which: Medical
405,051.37 24,376,859.15 24,626,222.78 155,687.74
insurance premiums
Work
-related injury 68,516.97 1,074,573.06 1,066,858.59 76,231.44
insurance
Mater
4,298.01 42,802.13 42,802.13 4,298.01
nity insurance
4. Housing fund 162,954.71 14,238,109.71 14,130,367.52 270,696.90
5. Labor union budget 1,493,237.39 5,815,473.47 6,103,536.60 1,205,174.26
95
and employee
education budget
Total 167,333,777.54 640,377,296.30 667,411,966.26 140,299,107.58
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
435,529.62 48,061,567.85 47,833,007.93 664,089.54
benefits
2. Unemployment
14,782.48 739,364.37 728,747.38 25,399.47
insurance
3. Annuity 1,829,680.00 1,829,680.00
Total 450,312.10 50,630,612.22 50,391,435.31 689,489.01
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.
(4) Termination Benefits
Unit: RMB
Beginning
Item Increase Decrease Ending balance
balance
1. Compensation for termination of 34,907.78 34,907.78
labor relations
2. Estimated internal staff
expenditure
Total 34,907.78 34,907.78
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 43,758,037.53 18,987,452.44
Corporate income tax 19,928,441.78 55,204,098.83
Personal income tax 982,742.53 3,520,595.97
Urban maintenance and construction tax 3,373,803.44 2,527,033.79
VAT of land 6,392,510.40
Education surcharge 2,358,869.88 1,870,243.81
Property tax 3,891,553.04 829,364.85
Land use tax 2,379,358.66 545,215.31
Other 702,115.71 1,104,959.20
Total 77,374,922.57 90,981,474.60
96
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 15,646.07 15,646.07
Other payables 297,813,287.26 333,113,125.74
Total 297,828,933.33 333,128,771.81
(1) Interest Payable
Naught
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 15,646.07 15,646.07
Total 15,646.07 15,646.07
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Payments for demolition 37,232,380.44 54,990,047.00
Performance bond 67,505,949.95 56,777,893.86
Relevant expense of sales 13,665,427.58 11,266,922.58
Account current 9,773,968.09 186,628,343.72
Other 169,635,561.20 23,449,918.58
Total 297,813,287.26 333,113,125.74
2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
Unit A 5,752,000.00 Unsettled for involving in lawsuits
Unit B 120,352,181.20 Unsettled
Total 126,104,181.20
42. Liabilities Held for sale
Naught
43. Current Portion of Non-current Liabilities
Unit: RMB
97
Item Ending balance Beginning balance
Current portion of long-term borrowings
20,122,394.84 19,423,561.38
(note)
Current portion of lease liabilities 10,261,123.91 8,176,624.77
Total 30,383,518.75 27,600,186.15
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT 9,952,101.27 10,577,082.29
Total 9,952,101.27 10,577,082.29
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Credit borrowings 555,550,952.38
Interest of long-term borrowings 1,039,515.37
Total 556,590,467.75
Notes:
List of long-term borrowings as of 30 June 2022:
Unit: RMB
Borrowing contract number Loan balance Term of borrowing Conditio Annual
ns of interest
loan rate
2022.01.06 to Credit 3.2689
China Development Bank 4410202101100001613 US$40,000,000.00
2025.01.06 loans %
2022.02.22 to Credit 3.2689
China Development Bank 4410202101100001613 US$10,000,000.00
2025.01.06 loans %
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2023.12.10 loans
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2024.06.10 loans
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2024.12.10 loans
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2025.06.10 loans
98
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2025.12.10 loans
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2026.06.10 loans
Project Loan of China Development Bank 2022.06.29 to Credit
20,000,000.00 2.80%
4410202201100001709 2026.12.10 loans
Project Loan of China Development Bank 2022.06.29 to Credit
30,000,000.00 2.80%
4410202201100001709 2027.06.29 loans
Project Loan of China Development Bank 2022.05.30 to Credit
119,047.62 3.40%
4410202201100001708 2023.12.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
119,047.62 3.40%
4410202201100001708 2024.06.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
119,047.62 3.40%
4410202201100001708 2024.12.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
8,333,333.33 3.40%
4410202201100001708 2025.06.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
8,333,333.33 3.40%
4410202201100001708 2025.12.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
8,333,333.33 3.40%
4410202201100001708 2026.06.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
8,333,333.33 3.40%
4410202201100001708 2026.12.10 loans
Project Loan of China Development Bank 2022.05.30 to Credit
16,190,476.20 3.40%
4410202201100001708 2027.05.30 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
5,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2024.11.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
5,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2025.05.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2025.11.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2026.05.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2026.11.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2027.05.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2027.11.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2028.05.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2028.11.27 loans
99
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
10,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2029.05.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
5,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2029.11.27 loans
Construction Project Loan of Guangzhou Branch of 2022.06.28 to Credit
5,000.00 3.70%
Minsheng Bank GGDZ No. ZH2200000071614 2030.05.27 loans
US$50,000,000.00
Total
219,980,952.38
46. Bonds Payable
(1) List of Bonds Payable
Naught
(2) Increase/Decrease of Bonds Payable (Excluding Other Financial Instrument Classified as Financial
Liabilities such as Preferred Shares and Perpetual Bonds)
Naught
(3) Notes to the Conditions and Time of the Shares Transfer of the Convertible Corporate Bonds
Naught
(4) Notes to Other Financial Instruments Classified as Financial Liabilities
Naught
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 11,403,854.44 15,921,272.74
Less: current portion of lease liabilities -4,116,411.77 -7,855,712.16
Total 7,287,442.67 8,065,560.58
Analysis on maturity date of lease liabilities
Unit: RMB
Item Ending balance Beginning balance
1 to 2 years 2,902,042.05 2,983,039.14
3 to 5 years 4,385,400.62 4,095,243.05
Over 5 years - 987,278.39
Total 7,287,442.67 8,065,560.58
100
48. Long-term Payables
Unit: RMB
Item Ending balance Beginning balance
Long-term payables 0.00 0.00
(1) Long-term Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Principal and interest of financing lease
6,341,995.19 19,423,561.38
borrowings (note)
Less: Current portion of long-term
6,341,995.19 19,423,561.38
payables
Total 0.00 0.00
Other notes:
Note: The ending balance is generated from the financial leasing business of Nanning Liaowang.
(2) Specific Payables
Naught
49. Long-term Employee Benefits Payable
(1) List of Long-term Payroll Payable
Naught
(2) Changes in Defined Benefit Plans
Naught
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Withdrawal of customers’
Product quality assurance 18,378,155.88 17,418,343.01 claims for quality and product
quality assurance expenses
Total 18,378,155.88 17,418,343.01
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
101
Government grants 116,761,570.35 13,164,706.27 21,703,013.47 108,223,263.15
Total 116,761,570.35 13,164,706.27 21,703,013.47 108,223,263.15
Item involving government grants:
Unit: RMB
Amount
Amount
recorded
recorded Amount
into Related to
Amount of into other offset cost
Beginning non-operati Other Ending assets/relat
Item newly income in in the
balance ng income changes balance ed to
subsidy the Reporting
in the income
Reporting Period
Reporting
Period
Period
The Project
of the
Innovation
in
Packaging
Technology
and
Technologi
cal
Transforma 4,590,348 328,521.6 4,261,827 Related to
tion of Key .80 0 .20 assets
Packaging
Equipment
of LEDs
with High
Color
Rendering
Index for
Illuminatio
n
The Project
of the
Innovation
in
Packaging
2,340,610 269,756.2 2,070,854 Related to
Technology
.65 2 .43 assets
and
Technologi
cal
Transforma
tion of Key
102
Packaging
Equipment
of LEDs
with Small
Spacing for
Display
The Project
of the
Innovation
in
Packaging
Technology
and
Technologi
cal 3,959,107 240,686.7 3,718,420 Related to
Transforma .65 0 .95 assets
tion of Key
Packaging
Equipment
of LEDs
with Small
Spacing for
Display
(Phase II)
The
Industrializ
ation and
Related to
Application 2,299.50 1,971.00 328.50
assets
of
High-powe
r LEDs
The Key
Technology
in the
Industrializ
ation of
LED
Related to
Indoor 30,448.12 7,314.36 23,133.76
assets
Lighting
Sources
with High
Reliability
and
Directional
103
ity
The
Light-conv
erting
Films and
1,322,376 294,038.4 1,028,337 Related to
Component
.26 6 .80 assets
s of Highly
Efficient
White-light
LEDs
The
Structural
Design of
Epitaxial
Wafers and
Chips of
Highly
774,741.6 164,174.1 610,567.4 Related to
Efficient
4 6 8 assets
LEDs and
the R&D of
Key
Technology
in
Industrializ
ation
The
Research
and
Implement
ation of
Standard Related to
97,557.92 18,744.12 78,813.80
Optical assets
Component
s of LEDs
for
Illuminatio
n
The
Industrializ
ation of
475,956.8 421,370.3 Related to
LED 54,586.51
1 0 assets
Flip-chips
and Light
Source
104
Modules
for the
Backlight
of
Large-size
LCDs
The Central
R&D
Institute of Related to
48,196.60 4,709.40 43,487.20
NationStar assets
Optoelectro
nics
The R&D
and
Industrializ
ation of the
Optical
Related to
Component 37,559.42 37,559.42
income
s of LEDs
with
Integrated
Circuits
(ICs)
The
Research
and
Industrializ
ation of
LED
Flip-chips
with Related to
52,662.57 4,034.71 48,627.86
Combined assets
Electrodes
and Chip
Scale
Package
(CSP) with
Thin Film
Substrates
The
Research
294,305.0 266,973.6 Related to
and 27,331.38
0 2 assets
Industrializ
ation of
105
Near
Ultraviolet
LED
Flip-chips
with High
Density
and Power
and Their
Packaging
The
Research
and
Industrializ
ation of the
Fluorescent
Coating
Process of
High-qualit 131,956.7 122,657.4 Related to
9,299.22
y LEDs 0 8 assets
and the
Key
Packaging
Technology
of Highly
Efficient
White-light
LEDs
The
Projects of
the
Production
Expansion
and
Technologi
cal
22,197,60 2,032,275 20,165,32 Related to
Transforma
0.80 .84 4.96 assets
tion of
Component
s of
Small-spaci
ng and
Outdoor
LED
Displays
106
The Key
Packaging
Technology
Related to
and 13,476.00 3,978.60 9,497.40
assets
Industrializ
ation of
LED Chips
The R&D
of
Chip-on-B
oard (COB)
Integrated
Packaging
and Related to
1,100,000 1,106,061
84,920.52 78,858.84 assets/inco
Systems of .00 .68
me
LED
Displays
with High
Density
and Small
Spacing
The
Research
on the Key
Technology
in the
Packaging
and
Application
Related to
of 36,008.52 2,512.62 33,495.90
assets
Full-spectr
um
White-light
LEDs and
LEDs for
Wide Color
Gamut
Backlight
The
Research
and 603,919.6 363,472.5 240,447.0 Related to
Application 2 9 3 income
of Epitaxial
Wafers,
107
Chips, and
Packaging
of Near
Ultraviolet
Silica-base
d AlGaN
Vertical
LEDs with
High
Power
The
Technology
Research
on Color
Micro-LED
116,348.9 Related to
Displays 36,348.91 80,000.00
1 income
and
Ultra-high
Brightness
Micro
Displays
The
Research
and
Industrializ
ation of
1,537,498 769,003.7 768,494.3 Related to
New and
.09 8 1 income
High-perfo
rmance
Display
Component
s
The
Research
on the Key
Technology
of
High-lume 367,534.4 1,800,000 1,029,372 1,138,161 Related to
n 8 .00 .73 .75 income
Compound
Reflex
LED Chips
for
Automobil
108
es and
High-densit
y Matrix
Packaging
The
Technology
Research
and
Industrializ
ation of the
Micro 340,000.0 108,309.9 275,444.7 Related to
43,754.74
Display 0 7 7 income
Module
Based on
Highly
Efficient
Color
Conversion
New
Ceramic
Substrates
for the
Packaging 192,775.8 181,939.5 Related to
10,836.30
with 0 0 assets
Inorganic
Materials
of Power
Electronics
The
Research
on the Key
Technology
and
Innovative 1,067,475 253,944.7 813,530.6 Related to
Application .44 6 8 income
of Deep
Ultraviolet
Solid-state
Light
Sources
The Key
Labs of 1,216,601 489,875.6 726,725.8 Related to
Semicondu .56 8 8 income
ctor Micro
109
Display
Enterprises
in
Guangdong
Province
(for 2020)
The R&D
and
Industrializ
ation of
Quantum
Dot
Light-emitt
355,431.4 268,290.4 Related to
ing 87,141.04
8 4 income
Materials
and
Component
s with Low
Environme
ntal
Pollution
The
Demonstrat
ion of
Industrial
Internet of Related to
957,037.0 374,369.8 582,667.2
Things assets/inco
7 5 2
(IIOT) me
Application
s for LED
Production
Control
The
Guangdong
-Hong
Kong-Mac
ao Joint
873,271.8 348,873.5 524,398.3 Related to
Lab of
5 5 0 income
Intelligent
Micro-nano
Photoelectr
ic
Technology
6,867,900 500,000.0 268,537.6 7,099,362 Related to
Others
.00 0 4 .36 assets
110
The
Subsidy for
Metal-orga
nic 42,090,26 9,999,999 32,090,26 Related to
Chemical 1.19 .60 1.59 assets
Vapor
Deposition
(MOCVD)
The Project
of
Resource
Conservati 6,059,215 904,683.7 5,154,532 Related to
on and .88 2 .16 assets
Environme
ntal
Protection
The
Technology
R&D
Center of Related to
66,000.28 10,999.98 55,000.30
Epitaxial assets
Wafers and
Chips of
LEDs
The
Research
and
Industrializ
ation of
LED Chips
Related to
for 75,000.00 7,500.00 67,500.00
assets
Displays
with Micro
Spacing
and Key
Packaging
Technology
The Key
Technology
R&D of
Related to
New 67,666.64 6,000.00 61,666.64
assets
High-volta
ge
High-speed
111
LEDs for
the
Conductivit
y and
Illuminatio
n of
Optical
Communic
ation
Devices
The R&D
Project of
Wafer-level
Growth of
GaN 662,368.6 310,611.4 351,757.2 Related to
Nanowire 8 1 7 income
Arrays and
Ultraviolet
Detector
Chips
The
Research
on the Key
Technology
of
Full-color 2,096,708 502,006.2 402,926.5 2,195,788 Related to
Micro-LED .45 7 4 .18 income
Displays
with High
Brightness
and
Contrast
The Visible
Light
Communic
ation and
Positioning
540,000.0 518,824.6 Related to
System for 21,175.39
0 1 income
the
Industrial
Internet of
Things
(IIOT)
6,822,700 190,473.9 6,632,226 Related to
The Project
.00 7 .03 assets
112
of the
Innovation
in
Packaging
Technology
and
Technologi
cal
Transforma
tion of Key
Packaging
Equipment
of LEDs
with High
Color
Rendering
Index for
Illuminatio
n (Phase II)
The
Research
on the Key
Technology
of 4K/8K
Full-color 2,100,000 2,100,000 Related to
Micro-LED .00 .00 income
Displays
with
Ultra-High
Definition
(UHD)
The First
Batch of
Special
Funds for
the
Industrial
2,166,666 199,999.9 1,966,666 Related to
and
.85 8 .87 assets
Informatio
n
Developme
nt for the
Guangxi
Zhuang
113
Autonomo
us Region
for 2017
(technical
transformat
ion) for
Liuzhou
Guige
Photoelectr
ic
Technology
Co., Ltd.
(Liuzhou
Guige)
The
Innovation
Fund for
Enterprises
900,000.0 825,000.0 Related to
in Liudong 75,000.00
0 0 assets
New Area
for 2017
for Liuzhou
Guige
The Project
of the First
Batch of
Support
Funds for
1,800,000 150,000.0 1,650,000 Related to
Enterprises
.00 0 .00 assets
in Liuzhou
City for
2017 for
Liuzhou
Guige
The Project
of the First
Batch of
Support
Funds for 405,999.8 377,999.8 Related to
28,000.02
Enterprises 9 7 assets
in Liuzhou
City for
2018 for
Liuzhou
114
Guige
The Project
of Support
Funds for
Enterprises
916,666.6 100,000.0 816,666.6 Related to
in Liuzhou
5 2 3 assets
City for
2020 for
Liuzhou
Guige
The Project
of the
Third
Batch of
Special
Funds of
Innovation-
driven
712,000.0 664,000.0 Related to
Developme 48,000.00
0 0 assets
nt for the
Guangxi
Zhuang
Autonomo
us Region
for 2018
for Liuzhou
Guige
The Project
of
Financial
Support for
Developing
Liuzhou
City into an
Industrial 737,333.3 658,333.3 Related to
79,000.02
Internet of 2 0 assets
Things
(IIOT)
Demonstrat
ion City for
2021 for
Liuzhou
Guige
1,966,666 100,000.0 1,866,666 Related to
The Second
.66 2 .64 assets
115
Batch of
Support
Funds for
the
"Technolog
ical
Transforma
tion of
Thousands
of
Enterprises
" in the
Guangxi
Zhuang
Autonomo
us Region
for 2021
Funding for
352,000.0 328,000.0 Related to
innovative 24,000.00
0 0 income
projects
The Special
Fund of the
Science
and
Technology
Department
of the
Guangxi 108,000.0 102,000.0 Related to
6,000.00
Zhuang 0 0 income
Autonomo
us Region
for
Innovation-
driven
Developme
nt for 2020
The Fund
for the
Project of
the 576,000.0 544,000.0 Related to
31,999.98
Manageme 4 6 income
nt
Committee
of the
116
Liuzhou
High-tech
Industrial
Developme
nt Zone
The Fund
for the
Intelligent
Transforma
tion and
623,333.3 589,333.2 Related to
Upgrading 34,000.02
0 8 income
Projects of
Automobil
e
Enterprises
for 2021
The Second
Batch of
Special
Funds for
the
Industrial
2,100,000 150,000.0 1,950,000 Related to
and
.00 0 .00 assets
Informatio
n
Developme
nt of the
City for
2019
The 14th
Batch of
Industrial 1,050,000 975,000.0 Related to
75,000.00
Support .00 0 assets
Funds for
2019
116,761,5 13,164,70 21,703,01 108,223,2
Total 0.00 0.00 0.00
70.35 6.27 3.47 63.15
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Liabilities of subsidiaries to be cleared
11,334.19 22,653.46
and cancelled
Total 11,334.19 22,653.46
117
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
New shares Bonus issue
balance Bonus shares Other (note) Subtotal balance
issued from profit
The sum of 1,399,346,15 -37,351,507. -37,351,507. 1,361,994,64
shares 4.00 00 00 7.00
Other notes:
Item/Investor Beginning balance Ending balance
Increase Decrease
Invested amount Proportion Invested amount Proportion
Restricted shares 13,169,196.00 0.94% 2,403,332.00 10,765,864.00 0.79%
Unrestricted shares 1,386,176,958.00 99.06% 34,948,175.00 1,351,228,783.00 99.21%
Total 1,399,346,154.00 100.00% 37,351,507.00 1,361,994,647.00 100.00%
Note: Other decrease in share capital was due to deregistration of treasury shares. For details, please refer to Part
VI-XIII. Other Significant Events-Cancellation of Shares of this Report.
54. Other Equity Instruments
(1) The Basic Information of Other Financial Instruments such as Preferred Stock and Perpetual Bond
Outstanding at the End of the Period
Naught
(2) Changes in Financial Instruments such as Preferred Stock and Perpetual Bond Outstanding at the End
of the Period
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
979,245,995.62 979,245,995.62 0.00
(premium on stock)
Other capital reserves 14,868,571.54 7,622,600.00 7,245,971.54
Total 994,114,567.16 986,868,595.62 7,245,971.54
Other notes, including changes and reason of change:
1. The cancellation of treasury shares offset the capital reserve of RMB4,825,948.60.
2. Due to the merger of NationStar Optoelectronics under the same control in the current period, the opening balance of the capital
reserve, upon retroactive adjustment, was RMB982,042,647.02. The merger in the current period decreased by RMB982,042,647.02.
118
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease (note) Ending balance
Treasury shares
201,955,572.33 119,790,428.18 82,165,144.15
(A-share)
Treasury shares
48,645,302.21 48,645,302.21
(B-share)
Total 250,600,874.54 168,435,730.39 82,165,144.15
Other notes, including changes and reason of change:
Note: The decrease in treasury shares for the Reporting Period was due to deregistration of treasury shares. For
details, please refer to Part VI-XIII. Other Significant Events-Cancellation of Shares of this Report.
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: Less:
Recorded Recorded
in other in other
comprehen comprehen Attributabl
Attributabl
Income sive sive e to owners
e to
Beginning before income in income in Less: of the Ending
Item non-control
balance taxation in prior period prior period Income tax Company balance
ling
the Current and and expense as the
interests
Period transferred transferred parent after
after tax
to profit or to retained tax
loss in the earnings in
Current the Current
Period Period
I. Other
comprehen
sive
income that
may not 983,157,2 -150,743, 100,917,2 -22,611,5 -229,049, 754,107,6
subsequentl 54.51 920.40 24.19 88.06 556.53 97.98
y be
reclassified
to profit or
loss
Changes in 983,157,2 -150,743, 100,917,2 -22,611,5 -229,049, 754,107,6
fair value 54.51 920.40 24.19 88.06 556.53 97.98
of other
119
equity
instrument
investment
II. Other
comprehen
sive
income that
may -184,895. 107,182.5 -89,267.0
95,628.61 11,533.90
subsequentl 62 1 1
y be
reclassified
to profit or
loss
Differences
arising
from
translation -184,895. 107,182.5 -89,267.0
95,628.61 11,533.90
of foreign 62 1 1
currency-d
enominated
financial
statements
Total of
other
982,972,3 -150,636, 100,917,2 -22,611,5 -228,953, 754,018,4
comprehen 11,533.90
58.89 737.89 24.19 88.06 927.92 30.97
sive
income
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
699,673,077.00 612,892,560.81 86,780,516.19
reserves
Discretionary surplus
41,680,270.96 41,680,270.96 0.00
reserves
Total 741,353,347.96 654,572,831.77 86,780,516.19
Notes including changes and reasons thereof:
The decrease in surplus reserves for the Reporting Period is mainly due to the de-registration of treasury shares
and the combination of NationStar under the same control in the Reporting Period.
120
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings
3,119,317,423.25 1,758,462,062.48
before adjustments
Beginning balance of total retained
earnings of adjustments (“+” for 169,825,049.30
increase, “-“ for decrease)
Beginning balance of retained earnings
3,119,317,423.25 1,928,287,111.78
after adjustments
Add: Net profit attributable to owners of
160,664,433.28 293,738,869.27
the Company as the parent
Dividend of ordinary shares
134,899,464.70 143,751,806.92
payable
Add: Others (note) -100,917,224.19 -1,041,043,249.12
Ending retained earnings 3,245,999,616.02 3,119,317,423.25
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB169,825,049.30 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.
Other notes:
Note: Refer to the accumulative change of fair value which was transferred into retained earnings from other comprehensive income
when stocks were sold in the Reporting Period.
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 4,200,923,124.71 3,480,433,322.74 3,563,272,369.88 2,954,407,457.50
Other operations 147,345,874.60 107,632,475.61 62,927,890.29 55,091,879.72
Total 4,348,268,999.31 3,588,065,798.35 3,626,200,260.17 3,009,499,337.22
Relevant information of revenue:
Category of contracts Segment 1 Segment 2 Total
Types of products 4,348,268,999.31 4,348,268,999.31
Of which:
General lighting products 1,794,373,850.48 1,794,373,850.48
LED packaging and
1,285,748,494.95 1,285,748,494.95
component products
Vehicle lamp products 788,150,928.31 788,150,928.31
121
Epitaxy and chip products 57,483,341.92 57,483,341.92
Trade and other products 422,512,383.65 422,512,383.65
By operating places 4,348,268,999.31 4,348,268,999.31
Of which:
Domestic 3,277,500,277.81 3,277,500,277.81
Overseas 1,070,768,721.50 1,070,768,721.50
Information related to performance obligations:
Naught
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB282,686,589.87 at the period-end.
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 7,260,191.27 7,329,896.91
Education surcharge 3,981,871.52 4,354,217.61
Property tax 7,097,473.37 4,823,023.37
Land use tax 2,985,827.87 2,550,114.66
Vehicle and vessel use tax 13,021.56 7,800.88
Stamp duty 3,644,570.41 2,268,530.04
Local education surcharge 997,922.28 911,424.77
VAT of land (note) -2,047,738.45 403,671.24
Environmental protection tax 34,492.30 93,522.65
Others 402,358.19 988.75
Total 24,369,990.32 22,743,190.88
Other notes:
Note: It was mainly because of the land appreciation tax accrued for the sale of real estate in the previous period.
The over-accrued land appreciation tax of RMB2,047,738.45 was released, when the actual payment was made
this year.
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 55,164,807.55 47,774,786.46
Business propagandize fees and
18,529,841.39 12,593,620.80
advertizing fees
Sales promotion fees 5,847,930.26 4,687,482.20
Business travel charges 2,109,153.50 3,945,263.27
Dealer meeting expense 516,954.49 201,586.16
122
Commercial insurance premium 2,387,669.16 2,132,533.15
Other 25,283,570.38 25,437,347.11
Total 109,839,926.73 96,772,619.15
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 109,407,584.44 83,987,194.14
Depreciation charge 19,194,923.21 15,037,827.30
Office expenses 10,061,100.07 8,318,762.66
Rent of land and management charge 298,021.09 1,842,382.96
Amortization of intangible assets 5,701,115.82 6,144,160.12
Utilities 3,880,679.53 372,571.56
Engineering decoration cost 2,822,639.45 3,786,630.64
Intermediary agency fee 3,536,961.00 2,870,509.21
Others 22,839,674.16 17,260,729.13
Total 177,742,698.77 139,620,767.72
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 97,286,487.05 73,244,875.54
Expense on equipment debugging 3,503,274.86 5,213,427.98
Certification and testing fee 4,983,719.59 4,174,101.50
Material consumption 27,204,093.78 6,478,539.00
Charges related to patents 1,323,834.59 944,967.99
Depreciation and long-term prepaid
21,427,223.15 17,196,866.49
expense
Other 52,447,960.74 36,867,316.68
Total 208,176,593.76 144,120,095.18
Other notes:
1. In respect of R&D expense incurred by the Company, expense other than that on bench-scale and pilot-scale
production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale
production is included in core business revenue and the relevant costs are included in cost of sales of core
business.
2. The R&D expense stood at RMB64,056,498.58 in the current period, up 44.45% year-on-year, primarily
driven by acquisition of Nanning Liaowang, a subsidiary not under the same control in Q3 2021.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 6,688,232.76 2,871,203.53
Less: Interest income 12,905,461.82 14,130,946.82
Foreign exchange gains or losses -18,641,308.34 5,974,891.14
123
Handling charge and others 857,892.01 1,632,843.88
Total -24,000,645.39 -3,652,008.27
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Government grants related to assets in
14,936,360.57 14,387,027.62
carry-over deferred income
Government grants related to income in
5,665,652.84 5,523,368.01
carry-over deferred income
Foshan's funds for promotion of robot
2,000,000.00
application and industrial development
The Support Fund of the Foshan
Municipal Financial Bureau for
Promoting the Digital Intelligent 2,000,000.00
Transformation of the Manufacturing
Industry in Foshan City for 2021
The Special Fund for Promoting
1,842,190.69 1,762,092.60
High-quality Economic Development
The Special Support Fund for the
Industrial Internet of Things (IIOT)
Development in Foshan City for 2021 1,320,000.00
(the Special Project of IIOT
Demonstration) (the First Batch)
The Subsidy of the Chancheng District
Human Resources and Social Security
Bureau, Foshan City, for the Skill 1,148,000.00
Training of Millions of Workers for
March 2022
The Subsidy for Stabilizing Employment 1,126,686.47
Service Charges Returned by the
1,110,028.50 470,437.25
Taxation Administration
The Special Support Fund for the
Industrial Internet of Things (IIOT) 892,500.00
Development in Foshan City
The Special Fund for the Vocational Skill
848,000.00
Improvement Campaign
The L.J.C.Y. [2021] No. 557 Industrial
Support Fund of the Finance Bureau of 610,000.00
Liang Jiang New Area, Chongqing
The Support Fund of the Administration
of the Chancheng Park of the Foshan
High-tech Industrial Development Zone 450,000.00
for Champion Manufacturing Enterprises
in a Single Item for 2020
124
The First Batch of Subsidies for the
Special Project of SME Development
427,200.00
and the Auxiliary Project of Industrial
Chain Collaboration for 2022
The N.C.G.J. [2021] No. 452 "Fund for
Specialized and Refined Projects" in
Nanning City of the Management 300,000.00
Committee of the Nanning New &
High-tech Industrial Development Zone
The Subsidy for Employees' On-the-job
2,968,000.00
Training
The R&D Subsidy for High-tech
1,034,800.00
Enterprises
The Municipal Support Fund for the
Industrial Design Development of 1,000,000.00
Foshan City
The Support Fund Granted by the
Administration of the Chancheng Park of
the Foshan High-tech Industrial 1,000,000.00
Development Zone to the Smart Factory
Project in the Zone for 2020
The Social Subsidy Granted by the
Chancheng District Human Resources
and Social Security Bureau, Foshan City, 553,814.44
to Support People with Employment
Difficulties
The Municipal Special Fund for the
451,043.00
Intellectual Property Rights for 2020
The Incentive for Developing
Technological Innovation Platforms in
Nanhai District for 2020 – Large 366,752.33
Outstanding Enterprises – R&D
Subsidies
The Special Fund Granted by the
Administration of the Chancheng Park of
the Foshan High-tech Industrial 300,000.00
Development Zone to Leading
Enterprises for 2020
The Reward Granted by the
Administration of the Chancheng Park of
the Foshan High-tech Industrial
300,000.00
Development Zone for Enterprises First
Recognized as Champion Manufacturing
Enterprises in a Single Item in the Zone
125
for 2020
Other 3,094,828.73 3,451,897.90
Total 37,771,447.80 33,569,233.15
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
650,457.40 37,460.99
accounted by equity method
Investment income from disposal of
285,376.51 87,850.30
trading financial assets
Dividend income from holding of other
16,055,272.93
equity instrument investment
Income received from financial products
673,400.56 4,952,121.46
and structural deposits
Other 1,949,237.46 416,050.00
Total 19,613,744.86 5,493,482.75
69. Net Gain on Exposure Hedges
Naught
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Held-for-trading financial assets 35,436.66 1,993,168.20
Held-for-trading financial liabilities -10,802,032.63 -63,379.90
Total -10,766,595.97 1,929,788.30
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss on other receivables 133,776.54 -750,332.27
Bad debt loss on accounts receivable -16,527,279.88 2,085,332.87
Bad debt loss on notes receivable -658,995.50 346,781.29
Total -17,052,498.84 1,681,781.89
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
-19,418,381.89 -23,464,653.80
contract performance cost
126
V. Loss on impairment of fixed assets -3,529,839.61
XII. Loss on impairment of contract
-439,922.48
assets
Total -23,388,143.98 -23,464,653.80
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets 82,362.19 1,782,280.34
74. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit or
loss
Government grants 976,090.45 976,090.45
Total income from disposal of
43,160.43 1,674,379.33 43,160.43
non-current assets
Of which: Income from
43,160.43 1,674,379.33 43,160.43
disposal of fixed assets
Income from default money 165,006.53 35,284.41 165,006.53
Other 7,777,436.55 2,238,668.67 7,777,436.55
Total 8,961,693.96 3,948,332.41 8,961,693.96
75. Non-operating Expense
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit or
loss
Donations 1,340.00
Total loss on disposal of
5,943,227.86 3,146,405.63 5,943,227.86
non-current assets
Of which: loss on disposal of
5,731,670.97 2,735,764.32 5,731,670.97
fixed assets
Loss on disposal of intangible
211,556.89 211,556.89
assets
Losses on inventories 41,677.65 1.88 41,677.65
Penalty 249,481.71 249,481.71
Delaying payment 336,802.22 191,967.71 336,802.22
Other 1,272,873.58 354,929.89 1,272,873.58
Total 7,844,063.02 3,694,645.11 7,844,063.02
127
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 25,578,945.18 38,957,223.88
Deferred income tax expense 15,562,966.83 4,382,154.87
Total 41,141,912.01 43,339,378.75
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 271,452,583.77
Current income tax expense accounted at statutory/applicable
40,717,887.57
tax rate
Influence of applying different tax rates by subsidiaries 2,902,251.69
Influence of income tax before adjustment -922,149.05
Influence of non-deductable costs, expenses and losses -192,347.46
The effect of using deductible losses of deferred income tax
1,142,128.81
assets that have not been recognized in the previous period
Investment income and dividend -2,505,859.55
Income tax expense 41,141,912.01
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 Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Deposit interest 12,342,006.20 16,315,569.45
Income from insurance compensation 5,333.08 24,207.40
Margin income 13,542,994.58 21,824,603.85
Rental income from property and
4,954,716.14 6,351,181.05
equipment, utility
Income from subsidy 35,542,460.08 13,780,707.93
Income from waste 16,645,457.85 12,948,191.88
Other 36,300,827.42 18,573,282.49
Total 119,333,795.35 89,817,744.05
128
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative and R&D expense paid in
50,240,726.64 43,554,740.48
cash
Selling expense paid in cash 34,362,534.37 89,858,190.79
Finance costs paid in cash 820,402.36 1,255,552.49
Returned cash deposit 12,156,399.92 13,794,280.53
Other 67,973,379.74 29,119,236.85
Total 165,553,443.03 177,582,001.14
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Naught
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Cash deposit collected 53,126,214.00 1,339,606.80
Total 53,126,214.00 1,339,606.80
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Payment for cash deposit of bank
121.82 83,291,518.32
acceptance bills
Intermediary fee for financing 125,624.96 37,077.04
Cash paid for acquisition under the same
1,061,968,681.64
control
Repurchase of treasury shares 220,895,890.55
Total 1,062,094,428.42 304,224,485.91
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
129
flows generated from operating
activities:
Net profit 230,310,671.76 195,002,479.47
Add: Provision for impairment of assets 40,440,642.82 21,782,871.91
Depreciation of fixed assets, oil-gas
236,835,122.52 191,592,791.52
assets, and productive living assets
Depreciation of right-of-use assets 4,314,025.31 1,290,954.05
Amortization of intangible assets 6,146,953.88 7,375,589.07
Amortization of long-term prepaid
69,990,299.46 8,701,088.44
expenses
Loss from disposal of fixed assets,
intangible assets and other long-term -82,362.19 -1,782,280.34
assets (gains: negative)
Losses from scrapping of fixed
5,688,510.54 -628,095.29
assets (gains: negative)
Losses from changes in fair value
10,766,595.97 -1,929,788.30
(gains: negative)
Finance costs (gains: negative) 6,688,232.76 2,871,203.53
Investment loss (gains: negative) -19,613,744.86 -5,493,482.75
Decrease in deferred income tax
2,289,157.80 2,232,103.26
assets (increase: negative)
Increase in deferred income tax
27,242,670.20 2,150,051.61
liabilities (“-” for decrease)
Decrease in inventory (“-” for
129,815,588.18 -170,321,475.30
increase)
Decrease in operating receivables
-206,126,131.90 -337,116,154.02
(“-” for increase)
Increase in operating payables (“-”
-394,671,325.86 530,485,149.34
for decrease)
Others
Net cash generated from/used in
150,034,906.39 446,213,006.20
operating activities
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Transfer of debts into capital
Current portion of convertible
corporate bonds
Fixed assets leased in for financing
3.Net increase/decrease of cash and cash
equivalents:
Ending balance of cash 1,387,999,909.22 1,957,385,232.91
Less: Beginning balance of cash 1,886,894,463.37 1,325,464,361.36
Add: Ending balance of cash
130
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash
-498,894,554.15 631,920,871.55
equivalents
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Cash or cash equivalents paid in the Reporting Period for
1,061,968,681.64
business combination occurring in the Reporting Period
Of which:
Foshan NationStar Optoelectronics Co., Ltd. 1,061,968,681.64
Of which:
Of which:
Net payments for acquisition of subsidiaries 1,061,968,681.64
(3) Net Cash Received from Disposal of the Subsidiaries
Naught
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
Including: Cash on hand 68,284.86 24,635.14
Bank deposit on demand 1,386,515,662.37 1,787,545,524.78
Other monetary assets on
1,415,961.99 99,324,303.45
demand
III. Ending balance of cash and cash
1,387,999,909.22 1,886,894,463.37
equivalents
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposit of notes, letter of
Monetary assets 448,713,603.58
guarantee, etc.
131
Notes receivable 821,993,782.57 Pledged for notes pool
Related-party mortgage guarantee, see
Fixed assets 265,763,688.91
Part X-Note XIV-(III) Others for details
Related-party mortgage guarantee, see
Intangible assets 11,119,256.27
Part X-Note XIV-(III) Others for details
Related-party mortgage guarantee, see
Long-term deferred expense 1,081,877.32
Part X-Note XIV-(III) Others for details
Total 1,548,672,208.65
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary assets 264,308,864.20
Of which: USD 33,219,428.25 6.7114 222,948,870.76
EUR 680,375.82 7.0084 4,768,345.90
HKD 51,801.82 0.8552 44,300.40
IDR 81,036,246,474.50 0.000451 36,547,347.16
Accounts receivable 481,373,296.47
Of which: USD 69,644,148.32 6.7114 467,409,737.03
EUR 1,591,497.91 7.0084 11,153,853.95
HKD 42,850.39 0.8552 36,645.23
IDR 6,229,945,609.76 0.000451 2,809,705.47
Long-term borrowings 335,570,000.00
Of which: USD 50,000,000.00 6.7114 335,570,000.00
EUR
HKD
Other receivables 90,529.27
Of which: USD 13,488.88 6.7114 90,529.27
Contract liabilities: 12,568,074.98
Of which: USD 1,859,199.25 6.7114 12,477,829.85
EUR 12,876.71 7.0084 90,245.13
prepayments 4,402,438.13
Of which: USD 655,964.20 6.7114 4,402,438.13
Accounts payable 22,857,965.67
Of which: USD 1,141,727.22 6.7114 7,662,588.06
EUR 1,119,961.13 7.0084 7,849,135.58
IDR 33,692,633,281.60 0.000451 15,195,377.61
Other non-current assets 642,634.75
Of which: EUR 91,694.93 7.0084 642,634.75
Other non-current liabilities 838,740.08
Of which: EUR 119,676.40 7.0084 838,740.08
Lease liabilities 272,954.84
Of which: IDR 605,221,374.72 0.000451 272,954.84
132
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, Recording
Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, Relevant
Reasons Shall Be Disclosed.
□Applicable Not applicable
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Naught
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Amount recorded in the
Sources Amount Listed items
current profit or loss
Handling charge returned
167,848.10 Other income 167,848.10
from tax bureau
Subsidy for stabilizing
285,643.24 Other income 285,643.24
employment
The Subsidy of the
Chancheng District Economy
and Technology Promotion
Bureau, Foshan City, for
6,900.00 Other income 6,900.00
Enterprises Organized by
Foshan City to Participate in
Important Professional
Exhibitions in China for 2021
The Support Fund of the
Administration of the
Chancheng Park of the
Foshan High-tech Industrial
450,000.00 Other income 450,000.00
Development Zone for
Champion Manufacturing
Enterprises in a Single Item
for 2020
The Fund of the Organization
Department of the Chancheng
District Party Committee,
150,000.00 Other income 150,000.00
Foshan City, China, for
Competitive Talent Support
Projects
The Auxiliary Fund of the 250,000.00 Other income 250,000.00
133
Organization Department of
the Chancheng District Party
Committee, Foshan City,
China, for Competitive Talent
Support Projects
The Support Fund of the
Foshan Municipal Financial
Bureau for Promoting the
Digital Intelligent 2,000,000.00 Other income 2,000,000.00
Transformation of the
Manufacturing Industry in
Foshan City for 2021
The Subsidy of the
Chancheng District Human
Resources and Social Security
1,148,000.00 Other income 1,148,000.00
Bureau, Foshan City, for the
Skill Training of Millions of
Workers for March 2022
The Subsidy Granted by the
Chancheng District Economy
and Technology Promotion
Bureau, Foshan City, for
Promoting the Project of
Export Credit Insurance under
26,056.34 Other income 26,056.34
the Special Provincial Project
of Promoting High-quality
Economic Development (for
the Direction of Promoting
Foreign Trade Development)
for 2021
The Special Fund for the
Vocational Skill Improvement 848,000.00 Other income 848,000.00
Campaign
The Special Support Fund for
the Industrial Internet of
Things (IIOT) Development
in Foshan City for 2021 (the 1,320,000.00 Other income 1,320,000.00
Special Project of IIOT
Demonstration) (the First
Batch)
The Municipal Support Fund
for the Premiums of
51,962.00 Other income 51,962.00
Short-term Export Credit
Insurance for 2022
134
The Provincial Fund for
Export Credit Insurance for 65,029.00 Other income 65,029.00
2022
The R&D of Chip-on-Board
(COB) Integrated Packaging
and Systems of LED Displays 1,100,000.00 Deferred income 1,100,000.00
with High Density and Small
Spacing
The Research on the Key
Technology of High-lumen
Compound Reflex LED Chips
1,800,000.00 Deferred income 685,856.47
for Automobiles and
High-density Matrix
Packaging
The Technology Research and
Industrialization of the Micro
Display Module Based on 340,000.00 Deferred income 106,747.34
Highly Efficient Color
Conversion
Others 500,000.00 Deferred income
The Research on the Key
Technology of Full-color
502,006.27 Deferred income
Micro-LED Displays with
High Brightness and Contrast
The Project of the Innovation
in Packaging Technology and
Technological Transformation
of Key Packaging Equipment 6,822,700.00 Deferred income 190,473.97
of LEDs with High Color
Rendering Index for
Illumination (Phase II)
The Research on the Key
Technology of 4K/8K
Full-color Micro-LED 2,100,000.00 Deferred income
Displays with Ultra-High
Definition (UHD)
The G.G.X.T.Z. [2017] No.
106 First Batch of Special
Funds for the Industrial and
Information Development for
199,999.98 Other income 199,999.98
the Guangxi Zhuang
Autonomous Region for 2017
(technical transformation) for
Liuzhou Guige Photoelectric
135
Technology Co., Ltd.
(Liuzhou Guige)
The L.D.G.F. [2016] No. 36
Innovation Fund for
Enterprises in Liudong New 75,000.00 Other income 75,000.00
Area for 2017 for Liuzhou
Guige
The L.G.X.T. [2017] No. 164
Project of the First Batch of
Support Funds for Enterprises 150,000.00 Other income 150,000.00
in Liuzhou City for 2017 for
Liuzhou Guige
The L.G.X.T. [2018] No. 122
Project of the First Batch of
Support Funds for Enterprises 28,000.02 Other income 28,000.02
in Liuzhou City for 2018 for
Liuzhou Guige
The L.G.X.T. [2020] No. 134
Project of Support Funds for
100,000.02 Other income 100,000.02
Enterprises in Liuzhou City
for 2020 for Liuzhou Guige
The G.K.J.Z. [2018] No. 242
Project of the Third Batch of
Special Funds of
Innovation-driven 48,000.00 Other income 48,000.00
Development for the Guangxi
Zhuang Autonomous Region
for 2018 for Liuzhou Guige
The L.G.X.T. [2021] No. 72
Project of Financial Support
for Developing Liuzhou City
into an Industrial Internet of 79,000.02 Other income 79,000.02
Things (IIOT) Demonstration
City for 2021 for Liuzhou
Guige
The L.C.Y.ZH. [2021] No.
280 Second Batch of Support
Funds for the "Technological
Transformation of Thousands 100,000.02 Other income 100,000.02
of Enterprises" in the Guangxi
Zhuang Autonomous Region
for 2021
The Reward of the Bureau of
31,800.00 Other income 31,800.00
Industry and Information
136
Technology of Liuzhou City
for Controlled Use of
Electricity
The Subsidy of the Social
Insurance Management
173,672.78 Other income 173,672.78
Center of Liuzhou City for
Stabilizing Employment
The Second Batch of Special
Funds for the Industrial and
150,000.00 Other income 150,000.00
Information Development of
the City for 2019
The 14th Batch of Industrial
75,000.00 Other income 75,000.00
Support Funds for 2019
The L.J.C.Y. [2021] No. 557
Industrial Support Fund of the
610,000.00 Other income 610,000.00
Finance Bureau of Liang
Jiang New Area, Chongqing
The One-time Subsidy of
Yubei District to Support
People with Employment 36,000.00 Other income 36,000.00
Difficulties for the First
Quarter of 2022
The Subsidy for Stabilizing
841,043.23 Other income 841,043.23
Employment
The Special Support Fund for
the Industrial Internet of
892,500.00 Other income 892,500.00
Things (IIOT) Development
in Foshan City
The Fund of Foshan City for
Promoting the Robot 2,000,000.00 Other income 2,000,000.00
Application and Industry
Special funds for promoting
high-quality economic 1,842,190.69 Other income 1,842,190.69
development
Others 383,364.86 Other income 383,364.86
Total 27,749,716.57 16,668,088.08
(2) Return of Government Grants
□Applicable Not applicable
85. Other
Naught
137
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control in the Reporting Period
Naught
(2) Combination Cost and Goodwill
Naught
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Naught
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and
gaining the control during the Reporting Period
□Yes No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Naught
(6) Other Notes
Naught
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Unit: RMB
Income Net profits
from the from the Income of Net profits
Recognitio period-begi period-begi the of the
Proportion
Combined Combinatio n basis of n to the n to the acquiree acquiree
of the Basis
party n date combinatio combinatio combinatio during the during the
equity
n date n date of n date of period of period of
the the comparison comparison
acquiree acquiree
Foshan Under the The actual
28
NationStar control of control has 453,644,78 9,568,639.8 580,345,83 29,049,597.
21.48% February
Optoelectro the achieved 0.94 3 0.39 07
2022
nics Co., Company’s and the
138
Ltd. actual industrial
controller and
both before commercial
and after changes
the have been
combinatio completed
n
Under the
The actual
control of
control has
the
achieved
Foshan Company’s
and the
Sigma actual 28
industrial
Venture 100.00% controller February 0.00 -700.00 0.00 0.00
and
Capital both before 2022
commercial
Co., Ltd. and after
changes
the
have been
combinatio
completed
n
Other notes:
The Company held the 19th meeting of the ninth Board of Directors and the Third Extraordinary General Meeting
in 2021 on 27 October 2021 and 31 December 2021 respectively, where the untport on Major Asset Purchase and
Related Party Trading of Foshan Electrical and Lighting Co., Ltd. (Draft) and Its Summary" and other proposals
related to this trading was deliberated and adopted. It was agreed that the Company will purchase 100% equity of
Sigma held by Electronics Group (Sigma holds 79,753,050 shares of NationStar Optoelectronics) and 52,051,945
tradable shares of NationStar Optoelectronics held by Rising Group and Rising Capital in total by paying cash.
Before the spin-off, FSL held 1,014,900 shares of NationStar Optoelectronics, accounting for 0.16% of the total
share capital of NationStar Optoelectronics. Upon completion of the spin-off, FSL and its wholly-owned
subsidiary will hold 132,819,895 shares of NationStar Optoelectronics in total, accounting for 21.48% of the total
share capital of NationStar Optoelectronics, making FSL the controlling shareholder of NationStar
Optoelectronics. As of the end of February 2022, the Company has paid 100% of the equity acquisition amount,
and the industrial and commercial change registration of Sigma has been completed. As the Company, NationStar
Optoelectronics and Sigma are all controlled by the actual controller Guangdong Rising Holdings Group Co., Ltd.
before and after the equity change and such control is not temporary, the merger falls under the previous data of
retrospective adjustment of business combination under the same control.
(2) Combination Cost
Unit: RMB
Foshan NationStar Optoelectronics Co., Ltd. and Foshan Sigma
Combination cost
Venture Capital Co., Ltd.
--Cash 1,517,098,116.62
--Carrying value of non-cash assets
--Carrying value of debts issued or assumed
--Face value of equity securities issued
--Contingent consideration
Contingent consideration and changes thereof:
Naught
139
Other notes:
Naught
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination Date
Unit: RMB
Foshan NationStar Optoelectronics Co., Ltd. Foshan Sigma Venture Capital Co., Ltd.
Period-end of the last Period-end of the last
Combination date Combination date
period period
Assets:
Monetary assets 921,042,415.96 997,688,184.63 4,226.45 4,926.45
Accounts receivable 525,596,155.73 554,384,717.05
Inventories 894,257,346.12 905,045,064.13
Fixed assets 2,035,468,559.47 2,037,263,584.35
Intangible assets 103,117,840.45 103,886,463.82
Held-for-trading
20,000,000.00 20,000,000.00
financial assets
Notes receivable 1,000,511,991.86 1,102,333,515.11
Prepayments 13,259,667.27 13,354,147.30
Other receivables 2,748,733.29 3,451,162.14
Other current assets 41,339,558.12 39,981,159.43
Long-term equity
16,852,876.19 16,852,876.19 73,096,690.00 73,096,690.00
investments
Other investments in
41,059,860.92 41,059,860.92
equity instruments
Construction in
326,952,490.30 356,665,733.21
progress
Right-of-use assets 574,365.58 629,067.08
Long-term prepaid
26,736,143.96 27,487,572.51
expense
Deferred income tax
28,064,526.77 28,064,526.77
assets
Other non-current
30,051,607.66 29,197,939.66
assets
Liabilities:
Borrowings
Accounts payable 717,846,900.05 899,927,502.97
Held-for-trading
2,224.02 9,367.37
financial liabilities
Notes payable 1,184,541,823.20 1,247,131,988.05
Contract liabilities 75,559,067.88 55,409,842.62
Employee benefits
50,815,459.88 78,858,200.44
payable
Taxes payable 9,532,874.37 8,970,415.15
Other payables 31,251,670.01 34,566,878.65
Current portion of
323,784.42 320,912.61
non-current liabilities
Other current liabilities 1,983,259.30 2,538,611.14
140
Lease liabilities 166,405.64 202,757.36
Provisions 8,545,934.02 9,746,394.32
Deferred income 100,184,002.53 102,346,903.64
Deferred income tax
92,481,449.40 92,481,449.40
liabilities
Net assets 3,754,399,284.93 3,744,834,350.58 73,100,916.45 73,101,616.45
Less: Non-controlling
-117,113.13 -117,113.13
interests
Net assets acquired 3,754,516,398.06 3,744,951,463.71 73,100,916.45 73,101,616.45
Contingent liabilities of the combined party undertaken in the business combination:
Naught
Other notes:
Naught
3. Counter Purchase
Basic information of trading, the basis of transactions constitute counter purchase, the retain assets , liabilities of
the listed companies whether constituted a business and its basis, the determination of the combination costs, the
amount and calculation of adjusted rights and interests in accordance with the equity transaction process:
Naught
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□Yes No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□Yes No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries,
etc.) and relevant information:
Naught
6. Other
Naught
141
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Registration Nature of Holding percentage
Name Way of gaining
place place business Directly Indirectly
Foshan
Lighting Lamps Production and Newly
Foshan Foshan 100.00%
& Components sales established
Co., Ltd.
FSL Chanchang
Production and Newly
Optoelectronics Foshan Foshan 100.00%
sales established
Co., Ltd.
Foshan Taimei
Times Lamps Production and Newly
Foshan Foshan 70.00%
and Lanterns sales established
Co., Ltd.
Foshan
Electrical &
Production and Newly
Lighting Xinxiang Xinxiang 100.00%
sales established
(Xinxiang) Co.,
Ltd.
Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% Acquired
sales
Manufacturing
Co., Ltd.
FSL Zhida
Electric Production and Newly
Foshan Foshan 51.00%
Technology sales established
Co., Ltd.
FSL
Production and Newly
LIGHTING Germany Germany 100.00%
sales established
GMBH
Foshan
Haolaite Production and Newly
Foshan Foshan 51.00% 10.53%
Lighting Co., sales established
Ltd.
Foshan Kelian
New Energy Property
Foshan Foshan 100.00% Acquired
Technology development
Co., Ltd.
142
Fozhao Haikou Haikou Production and
(Hainan) sales Newly
100.00%
Technology established
Co., Ltd.
Nanning Manufacturing
Liaowang Auto Nanning Nanning of vehicle 53.79% Acquired
Lamp Co., Ltd. lamps
Liuzhou Guige
Manufacturing
Lighting
Liuzhou Liuzhou of vehicle 53.79% Acquired
Technology
lamps
Co., Ltd.
Liuzhou Guige Manufacturing
Foreshine of automotive
Liuzhou Liuzhou 53.79% Acquired
Technology electronic
Co., Ltd. products
Chongqing
Guinuo Manufacturing
Lighting Chongqing Chongqing of vehicle 53.79% Acquired
Technology lamps
Co., Ltd.
Qingdao Guige
Manufacturing
Lighting
Qingdao Qingdao of vehicle 53.79% Acquired
Technology
lamps
Co., Ltd.
Indonesia Manufacturing
Liaowang Auto Indonesia Indonesia of vehicle 53.79% Acquired
Lamp Co., Ltd. lamps
Foshan Sigma
Business
Venture Capital Foshan Foshan 100.00% Acquired
services
Co., Ltd.
Foshan
NationStar Electronic
Foshan Foshan 21.48% Acquired
Optoelectronics manufacturing
Co., Ltd. (note)
Foshan
NationStar
Electronic
Semiconductor Foshan Foshan 21.48% Acquired
manufacturing
Technology
Co., Ltd.
Foshan
NationStar
Electronic
Electronic Foshan Foshan 21.48% Acquired
manufacturing
Manufacturing
Co., Ltd.
Nanyang Baoli
Vanadium
Henan Nanyang Mining 12.89% Acquired
Industry Co.,
Ltd.
NationStar Germany Germany Trade 21.48% Acquired
143
Optoelectronics
(Germany) Co.,
Ltd.
Guangdong
New Electronic
Guangzhou Guangzhou Trade 21.48% Acquired
Information
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
proportion of attributable to the distributed to non-controlling
Name
non-controlling non-controlling non-controlling interests at the
interests interests interests period-end
Foshan Taimei Times
Lamps and Lanterns 30.00% 477,109.34 11,927,661.32
Co., Ltd.
FSL Zhida Electric
49.00% 2,795,200.47 27,421,966.35
Technology Co., Ltd.
Foshan Haolaite
38.47% 779,318.55 14,010,834.93
Lighting Co., Ltd.
Nanning Liaowang
46.21% 8,404,253.27 431,399,428.14
Auto Lamp Co., Ltd.
Foshan NationStar
Optoelectronics Co., 78.52% 57,190,356.85 24,282,863.70 2,960,569,455.95
Ltd.
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Naught
Other notes:
Note: NationStar Electronic Manufacturing, NationStar Semiconductor, Baoli Vanadium Industry, New
Electronic and Germany NationStar are subsidiaries of Foshan NationStar Optoelectronics Co., Ltd.
144
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Curren Non-c Curren Non-c
Non-c Total Non-c Total
Name Curren Total t urrent Curren Total t urrent
urrent liabiliti urrent liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets es assets es
es y es y
Foshan
Taimei
Times
Lamps 72,20 14,83 87,03 47,28 47,28 135,8 17,57 153,4 115,2 115,2
0,481 9,246 9,728 0,856 0,856 29,00 3,437 02,44 33,93 33,93
and
.63 .40 .03 .96 .96 8.12 .36 5.48 8.88 8.88
Lanter
ns Co.,
Ltd.
FSL
Zhida
Electri
c 162,0 9,189 171,2 102,9 102,9 126,7 12,49 139,2 76,67 76,67
30,80 ,591. 20,39 23,52 23,52 77,94 4,211 72,15 9,776 9,776
Techn
4.64 64 6.28 6.20 6.20 3.85 .78 5.63 .30 .30
ology
Co.,
Ltd.
Foshan
Haolai
te 70,05 11,01 81,06 44,64 44,64 60,89 12,88 73,77 39,38 39,38
Lighti 2,380 3,852 6,232 6,073 6,073 0,648 7,936 8,585 4,209 4,209
ng .13 .14 .27 .89 .89 .90 .38 .28 .45 .45
Co.,
Ltd.
Nanni
ng
Liaow
1,302 2,210 1,238 1,277 1,346 2,164 1,305 1,328
ang 907,8 38,34 817,3 23,05
,936, ,764, ,851, ,201, ,863, ,227, ,420, ,478,
27,65 9,871 63,83 8,696
Auto 371.9 023.9 226.0 097.8 737.1 577.1 077.1 773.9
1.95 .81 9.98 .78
7 2 4 5 4 2 9 7
Lamp
Co.,
Ltd.
Foshan
Nation
3,532 2,575 6,107 1,884 2,314 3,636 2,641 6,277 2,327 2,532
Star 430,5 204,7
,251, ,215, ,467, ,089, ,651, ,237, ,107, ,345, ,733, ,511,
Optoel 61,95 77,50
904.8 720.1 624.9 421.5 376.7 949.7 624.5 574.3 719.0 223.7
ectroni 5.17 4.72
1 7 8 8 5 9 1 0 0 2
cs Co.,
Ltd.
145
5,139 3,518 8,657 3,317 3,786 5,306 3,501 8,808 3,864 4,092
468,9 227,8
,471, ,086, ,558, ,791, ,702, ,599, ,427, ,026, ,451, ,287,
Total 11,82 36,20
943.1 062.3 005.4 104.6 931.6 287.8 050.0 337.8 720.8 922.3
6.98 1.50
8 0 8 7 5 0 1 1 2 2
Unit: RMB
Reporting Period Same period of last year
Total Cash flows Total Cash flows
Name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Foshan
Taimei
Times 70,083,07 1,590,364 1,590,364 -1,288,01 72,063,89
63,872.30 63,872.30 86,882.37
Lamps and 7.58 .47 .47 2.25 8.77
Lanterns
Co., Ltd.
FSL Zhida
Electric 105,086,0 5,704,490 5,704,490 3,913,866 79,244,53 3,263,540 3,263,540 -5,139,16
Technology 95.87 .75 .75 .98 9.01 .44 .44 1.29
Co., Ltd.
Foshan
Haolaite 33,735,75 2,025,782 2,025,782 7,961,319 41,436,03 1,291,186 1,291,186 1,463,433
Lighting 9.76 .55 .55 .24 5.13 .52 .52 .79
Co., Ltd.
Nanning
Liaowang 700,818,1 18,187,08 18,351,56 48,642,33
Auto Lamp 99.55 7.80 1.07 2.49
Co., Ltd.
Foshan
NationStar
1,664,781 78,987,83 78,905,75 -6,407,00 1,729,170 89,810,09 89,803,97 400,434,4
Optoelectro
,497.45 6.08 6.10 1.17 ,417.10 0.36 7.04 51.27
nics Co.,
Ltd.
2,574,504 106,495,5 106,577,9 52,822,50 1,921,914 94,428,68 94,422,57 396,845,6
Total
,630.21 61.65 54.94 5.29 ,890.01 9.62 6.30 06.14
(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
146
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 180,115,189.99 181,545,123.09
The total of following items according to
the shareholding proportions
--Net profit 650,457.40 37,460.99
--Total comprehensive income 650,457.40 37,460.99
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught
147
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught
4. Significant Common Operation
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Naught
6. Other
Naught
X. The Risk Related to Financial Instruments
The financial instruments of the Company included: equity investment, notes receivable, accounts receivable,
accounts payable, 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.
(I) Credit risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the
other party. The credit risk the Company faced was selling on credit which leads to customer credit risk.
The Company will evaluate credit risk of new customer, and set credit limit, once the balance of account
receivable over credit limit, require the customer to pay or producing and delivering goods shall be approved by
the management of the Company.
The Company through monthly aging analysis of account receivable and monitoring the collection situation of the
customer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation,
the Company should conduct necessary measures to requesting the payment timely.
(II) Liquidity Risk
Liquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in the
way of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient
cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of the
Company. The financial department through supervising the balance of the cash and securities can be convert to
148
cash at any time and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficient
cash to pay the liabilities under the case of all reasonable prediction, Each financial liability of the Company was
estimated due within 1 year.
(III) Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the
change of market price, including: exchange rate risk, interest rate risk and other price risk.
1. Exchange rate risk
Exchange rate risk 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 2022, the Company's assets and
liabilities were in RMB, except for the balances of usd, euro, Hong Kong dollar and rupiah as set out in this Note
VII-82, 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 2022, the Company's fixed interest rate loan
balance was RMB620,550,952.38, accounting for 100% of the total loan balance, and the risks in this part were
controllable.
3. Other price risk
Naught
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items measurement items Total
level 1 at level 2 at level 3
I. Consistent fair value measurement -- -- -- --
(I) Trading financial assets
1,397,612.10 62,670,850.30 64,068,462.40
1. Financial assets at fair value
through profit or loss 1,397,612.10 62,670,850.30 64,068,462.40
(III) Other equity instrument
investment 1,123,157,619.00 41,559,860.92 1,164,717,479.92
Total assets measured at fair value on
a recurring basis 1,124,555,231.10 62,670,850.30 41,559,860.92 1,228,785,942.32
(VII) Refer as financial liabilities
149
measured by fair value and the 6,544,500.00 6,544,500.00
changes included in the current gains
and losses
Total liabilities of consistent fair
value measurement 6,544,500.00 6,544,500.00
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
In line with the market price of shares on the balance sheet date and forward foreign exchange option rate.
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
Items measured at fair value level 2 are bank's wealth management products, which are measured at the
contractual expected yield rate as a reasonable estimate of the fair value.
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
(1) Because the business environment, operation conditions and financial conditions of the invested company,
China Guangfa Bank has not changed significantly, the Company takes investment costs as the reasonable
estimation of fair value to measure.
(2) Because the business environment, operation conditions and financial conditions of the invested company,
Shenzhen Zhonghao (Group) Co., Ltd. were deteriorated, the Company takes zero element as the reasonable
estimation of fair value to measure.
(3) Since there is no significant change in the operating environment, operation status and financial condition of
the investees, including Foshan Nanhai District United Guangdong New Light Source Industrial Innovation
Center and Beijing Guangrong Lianmeng Semiconductor Lighting Industry Investment Center, and Guangdong
Rising Finance Co., Ltd., the Company's investment cost is measured as a reasonable estimate of the fair value.
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Naught
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Naught
150
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Naught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Financial assets and liabilities not measured at fair value include: monetary assets, accounts receivable and
accounts payable, etc. There is small difference between the carrying value of above financial assets and liabilities
and fair value.
9. Other
Naught
XII. Related Party and Related-party Transactions
1. The parent company of the Company
Proportion of
Proportion of share
voting rights
held by the
owned by the
Name Registration place Nature of business Registered capital Company as the
Company as the
parent against the
parent against the
Company (%)
Company (%)
Hongkong Wah Hong Kong Investment HKD110,000
Shing Holding 13.84% 13.84%
Company Limited
Guangdong Guangzhou Production and RMB462 million
Electronics sales
Information 9.01% 9.01%
Industry Group
Ltd.
Guangdong Rising Guangzhou Investment RMB10 billion
Holdings Group 6.10% 6.10%
Co., Ltd.
Rising Investment Hong Kong Investment RMB200 million
Development and HKD1 million 1.87% 1.87%
Limited
Notes: Information on parent company of the Company
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 Holdings Group 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
151
Capital and Rising Investment are concerted actors, and Rising Holdings Group becomes the actual controller of
the Company. On 15 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. As of 30 June 2022, the above-mentioned persons acting in concert
held a total of 419,803,826.00 A and B shares of the Company, accounting for 30.82% of the total share capital of
the Company.
The final controller of the Company is Guangdong Rising Holdings Group Co., Ltd.
2. Subsidiaries of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Subsidiaries for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of
significant joint ventures or associated enterprises of the Company.
Information on other joint venture or associated enterprise of occurring related-party transactions with the
Company in Reporting Period, or forming balance due to related-party transactions made in previous period:
Naught
4. Information on Other Related Parties
Name Relationship with the Company
Prosperity Lamps & Components Limited Shareholder owning over 5% shares
Foshan NationStar Optoelectronics Co., Ltd. (note) Under same actual controller
NationStar Optoelectronics (Germany) Co., Ltd. (note) Under same actual controller
Guangdong New Electronics Information Import& Export Ltd.
Under same actual controller
(note)
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Under same actual controller
Guangdong Electronic Technology Research Institute Under same actual controller
Guangdong Zhongnan Construction Co., Ltd. Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Guangdong Zhongren Group Construction Co., Ltd Under same actual controller
Shenzhen Yuepeng Construction Co., Ltd. Under same actual controller
Foshan Fulong Environmental Technology Co., Ltd. Under same actual controller
Jiangmen Dongjiang Environmental Company Limited Under same actual controller
Zhuhai Doumen District Yongxingsheng Environmental
Industry Waste Recovery and Comprehensive Treatment Co., Under same actual controller
Ltd.
Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Equipment Technology Co., Ltd. Under same actual controller
Guangdong Rising South Construction Co., Ltd. Under same actual controller
Guangdong Electronics Information Industry Group Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Junpeng Intelligent Equipment
Under same actual controller
Co., Ltd.
Guangdong Rising Rare Metals and New Photoelectric
Under same actual controller
Materials Co., Ltd.
Guangdong Heshun Property Management Co., Ltd. Under same actual controller
Guangdong Zhongjin Construction and Installation
Under same actual controller
Engineering Co., Ltd.
Guangzhou Huajian Engineering Construction Co., Ltd. Under same actual controller
Guangdong Heshun Property Management Co., Ltd. The
Under same actual controller
Pinnacle Branch
Guangdong Zhongjin Lingnan Engineering Technology Co.,
Under same actual controller
Ltd.
152
Guangdong Huajian Enterprise Group Co., Ltd. Under same actual controller
Guangdong Rising Capital Investment Co., Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Under same actual controller
MTM Semiconductor Equipment Co., Ltd. Under same actual controller
Dongguan Hengjian Environmental Protection Technology Co.,
Under same actual controller
Ltd.
Shenzhen Longgang Dongjiang Industrial Waste Treatment
Under same actual controller
Co., Ltd.
Guangdong Electronic Technology Research Institute Under same actual controller
Guangzhou Wanshun Investment Management Co., Ltd. Under same actual controller
Guangdong The Great Wall Building Co., Ltd. Under same actual controller
Guangzhou Shengdu Investment Development Co., Ltd. Under same actual controller
Guangdong Rising Finance Co., Ltd. Under same actual controller
Hangzhou Times Lighting Electric Appliances Co., Ltd. Enterprise controlled by related natural person
Prosperity (China) Electrical Company Limited Enterprise controlled by related natural person
Nanning Ruixiang Industrial Investment Co., Ltd. Enterprise significantly affected by related natural person
Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. Under same actual controller
Nanning Ruixiang Industrial Investment Co., Ltd. Enterprise controlled by related natural person
Other notes:
Note: Foshan NationStar Optoelectronics Co., Ltd. and its majority-owned subsidiaries NationStar
Optoelectronics (Germany) Co., Ltd. and Guangdong New Electronics Information Import& Export Ltd. have
been included into the Company’s consolidation scope in Q1 2022. For details, please refer to Note VIII Change
in Consolidation Scope-2. Business Combination under the Same Control.
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed Same period of
Related party Content Reporting Period
credit trade credit or not last year
Foshan NationStar
Purchase of
Optoelectronics 17,859,909.28 105,000,000.00 Not 26,696,615.70
Co., Ltd. materials
Guangdong
Fenghua Advanced
Purchase of
Technology 2,757,010.92 26,100,000.00 Not 6,161,558.19
(Holding) Co., materials
Ltd.
Prosperity Lamps
Purchase of
& Components 773,460.05 6,000,000.00 Not 1,317,138.04
Limited materials
Hangzhou Times
Lighting Electric Purchase of
222,265.48 218,592.85
Appliances Co., materials
Ltd.
MTM
Semiconductor Purchase of
128,389.38
Equipment Co., materials
Ltd.
Guangdong
Zhongnan Receiving labor
42,247,083.75
Construction Co., service
Ltd.
153
Guangdong Yixin
Changcheng Receiving labor
14,543,474.14
Construction service
Group
Guangdong
Zhongren Group Receiving labor
7,242,570.34 20,000,000.00 Not
Construction Co., service
Ltd
Guangdong
Electronic Purchase of
854,625.55 970,000.00 Not 142,300.89
Technology equipment
Research Institute
Jiangmen
Dongjiang Receiving labor
502,352.82 3,000,000.00 Not 306,333.03
Environmental service
Company Limited
Shenzhen Yuepeng
Receiving labor
Construction Co., 470,768.94 377,087.49
Ltd. service
Foshan Fulong
Environmental Receiving labor
148,191.03 25,471.70
Technology Co., service
Ltd.
Zhuhai Doumen
District
Yongxingsheng
Environmental
Receiving labor
Industry Waste 5,660.38
Recovery and service
Comprehensive
Treatment Co.,
Ltd.
Guangdong
Electronic Receiving labor
2,734.91
Technology service
Research Institute
Guangdong
Fenghua
Receiving labor
Semiconductor 169.90
Technology Co., service
Ltd.
Total 87,621,712.30 161,070,000.00 35,381,882.56
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Prosperity Lamps &
Sale of products 11,487,387.08 11,719,058.86
Components Limited
NationStar Optoelectronics
Sale of products 11,462,187.43
(Germany) Co., Ltd.
Guangdong New Electronics
Information Import& Export Sale of products 8,159,622.95 28,197,238.34
Ltd.
Shenzhen Zhongjin Lingnan
Sale of products 607,072.04 951,402.66
Nonfemet Co., Ltd.
Guangzhou Wanshun
Investment Management Co., Sale of products 538,207.40
Ltd.
Guangdong Yixin
Changcheng Construction Sale of products 441,210.96 2,881,672.01
Group
Guangzhou Shengdu
Investment Development Co., Sale of products 281,946.91
Ltd.
Guangdong Zhongjin Lingnan Sale of products 122,855.75 108,659.28
154
Equipment Technology Co.,
Ltd.
Guangdong Rising South
Sale of products 69,965.06
Construction Co., Ltd.
Guangdong Zhongnan
Sale of products 44,383.37
Construction Co., Ltd.
Prosperity (China) Electrical
Sale of products 41,285.35 21,069.56
Company Limited
Guangdong Electronics
Information Industry Group Sale of products 27,796.46 8,013.27
Ltd.
Guangdong Zhongjin Lingnan
Junpeng Intelligent Sale of products 5,884.96
Equipment Co., Ltd.
Guangdong Rising Rare
Metals and New Photoelectric Sale of products 7,990,158.39
Materials Co., Ltd.
Guangdong Heshun Property
Sale of products 692,679.04
Management Co., Ltd.
Guangdong Zhongjin
Construction and Installation Sale of products 108,592.02
Engineering Co., Ltd.
Guangdong Rising Holdings
Sale of products 21,203.54
Group Co., Ltd.
Guangzhou Huajian
Engineering Construction Sale of products 6,145.47
Co., Ltd.
Total 33,289,805.72 52,705,892.44
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
Naught
Associated hosting/ Contracting situation
Naught
Lists of entrust/contractee
Unit: RMB
Charge
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Guangdong
Foshan
Zhongren
NationStar 30 December 31 December
Group
Optoelectronics 2020 2022
Construction
Co., Ltd.
Co., Ltd.
Foshan Kelian Guangdong
New Energy Zhongnan 23 December
23 June 2021
Technology Construction 2022
Co., Ltd. Co., Ltd.
Fozhao Guangdong
(Hainan) Zhongnan
30 March 2022 24 April 2023
Technology Construction
Co., Ltd. Co., Ltd.
155
Guangdong
Foshan
Yixin
Electrical and 28 February
Changcheng 28 May 2021
Lighting Co., 2023
Construction
Ltd.
Group Co., Ltd.
Guangdong
Foshan
Zhongren
Electrical and 17 January
Group 28 March 2022
Lighting Co., 2022
Construction
Ltd.
Co., Ltd.
Notes to entrust/contractee:
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,
and the planned total construction period is 720 calendar days. The overall project must be completed, accepted,
and filed by 31 December 2022. The project is in progress now.
2. 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. The
overall project is expected to be completed, accepted and filed by 23 December 2022. Among them, except for the
self-used layers, the construction period shall be counted from the date when the construction actually begins. The
project is in progress now.
3. 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). The project is in progress now.
4. The Company entered into the General Contracting Contract of Foshan Electrical and Lighting Co., Ltd. for the
Design and Construction of the Office Buildings of Gaoming Headquarters Production Base Phase II with
Guangdong Yixin Changcheng Construction Group Co., Ltd. and Guangdong Architectural Design & Research
Institute Co., Ltd. on 28 May 2021. The above parties take charge of the design and construction of Gaoming
office buildings. The total price of the contract is RMB175,025,600, and the planned total construction period is
650 calendar days (90 days for design and 560 days for construction). The overall project must be completed,
accepted and filed by 28 February 2023. The project is in progress now.
5. The Company entered into the General Contracting Contract of Foshan Electrical and Lighting Co., Ltd. for the
Construction of the Renovation Project of the Pipe Network for Rain and Sewage Diversion in Gaoming
Production Base with Guangdong Zhongren Group Construction Co., Ltd. on 17 January 2022. The above parties
take charge of the renovation construction of the Pipe Network for Rain and Sewage Diversion in Gaoming
Production Base. The total price of the contract is RMB7,227,200, and the planned total construction period is 70
calendar days. The overall project was completed on 28 March 2022. At present, the project has been completed
and the sewage discharge permission shall be applied for from the governing department before settlement.
(3) Information on Related-party Lease
The Company was lessor:
156
Naught
The Company was lessee:
The Company served as the lessee:
Rental expenses
Variable lease
of short-term
payments not Income expense
lease simplified Increased
included in the of lease
treated and Paid rent right-of-use
Type measurement of liabilities
Name low-value asset assets
lease liabilities undertaken
of lease (if
of (if applicable)
assets applicable)
lessor The The The The The
leased
Report same Report same Report same Report same Report same
ing period ing period ing period ing period ing period
Period of last Period of last Period of last Period of last Period of last
year year year year year
Guangd
ong
Great
Operati 109,714 1,557.4 54,673.
Wall
ng lease .21 6 41
Buildin
g Co.,
Ltd.
Notes to related-party lease
Naught
(4) Information on Related-party Guarantee
Naught
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Naught
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Chairman of the Board 380,814.62 481,467.44
General Manager 355,594.62 471,367.44
Chairman of the Supervisory Committee 335,628.62 454,632.08
Secretary of the Board 227,878.62 32,696.24
Chief Financial Officer 336,094.62 432,129.14
157
Other 2,924,372.07 3,599,472.96
Total 4,560,383.17 5,471,765.30
(8) Other Related-party Transactions
(8.1) Share acquisition from related parties
In October 2021, Electronics Group signed the Equity Transfer Agreement with the Company on Foshan Sigma
Venture Capital Co., Ltd., and transferred its 100% equity of Sigma (Sigma holds 79,753,050 shares of NationStar
Optoelectronics) to the Company at a consideration of RMB917,980,229.67. In the same month, Rising Holdings
Group and Rising Capital respectively signed the Share Transfer Agreement on Foshan NationStar
Optoelectronics Co., Ltd. with the Company, and transferred their total 52,051,945 tradable shares of NationStar
Optoelectronics with unlimited selling conditions to the Company at a consideration of RMB599,117,886.95
(RMB11.51/share). As of 30 June 2022, the Company has paid 100% of the equity acquisition amount. For details
of the equity acquisition, please refer to Note VIII-2. Business Combination under the Same Control.
(8.2) Related-party deposits and loans
In accordance with the Financial Service Agreement signed by the Company in 2021 and the Financial Service
Agreement renewed by the Company’s majority-owned subsidiary Foshan NationStar Optoelectronics Co., Ltd. in
2022, the total maximum daily deposit balance of the Company deposited in Guangdong Rising Finance Co., Ltd.
does not exceed RMB1.2 billion. As of 30 June 2022, the balance of the Company’s deposit in Guangdong Rising
Finance Co., Ltd. is RMB455,268,213.16, and the undue interest income receivable is RMB956,827.44.
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Guangdong Rising
Deposit interest 956,827.44 1,514,111.47
Finance Co., Ltd.
NationStar
Accounts Optoelectronics
11,887,227.13
receivable (Germany) Co.,
Ltd.
Guangdong New
Electronics
Accounts
Information 9,876,694.00 10,627,013.80 318,810.41
receivable Import& Export
Ltd.
Guangdong Rising
Accounts Rare Metals and
6,455,385.93 193,661.58 6,455,385.93 193,661.58
receivable New Photoelectric
Materials Co., Ltd.
Guangdong Yixin
Accounts Changcheng
4,920,512.43 400,060.74 5,752,518.74 172,575.56
receivable Construction
Group
Prosperity Lamps
Accounts
& Components 4,011,147.66 120,334.43 7,536,111.98 226,083.36
receivable Limited
Shenzhen
Accounts
Zhongjin Lingnan 1,464,123.60 43,923.71 2,621,178.80 78,635.36
receivable Nonfemet Co.,
158
Ltd.
Guangdong
Zhongjin Lingnan
Accounts
Equipment 703,256.00 50,670.65 670,784.00 46,301.49
receivable Technology Co.,
Ltd.
Guangdong
Heshun Property
Accounts
Management Co., 669,790.40 20,093.71 669,790.40 20,093.71
receivable Ltd. The Pinnacle
Branch
Guangzhou
Shengdu
Accounts
Investment 318,600.00
receivable Development Co.,
Ltd.
Guangdong
Accounts Zhongnan
218,038.46 6,541.15 1,095,727.04 32,871.81
receivable Construction Co.,
Ltd.
Guangdong Rising
Accounts South
66,698.32 2,000.95
receivable Construction Co.,
Ltd.
Guangzhou
Huajian
Accounts
Engineering 44,823.00 9,591.98 44,823.00 4,445.48
receivable Construction Co.,
Ltd.
Guangdong
Accounts Heshun Property
2,303.60 230.36 2,303.60 69.11
receivable Management Co.,
Ltd.
Guangdong
Zhongjin Lingnan
Accounts
Engineering 10,118.00 303.54
receivable Technology Co.,
Ltd.
Prosperity (China)
Prepayments Electrical 39,428.00
Company Limited
Guangdong The
Other receivables Great Wall 53,041.92 1,060.84 45,600.00 912.00
Building Co., Ltd.
Guangdong New
Electronics
Other receivables Information 8,865.50 8,865.50 265.97
Import& Export
Ltd.
Guangdong
Other receivables Huajian Enterprise 7,060,000.00 211,800.00
Group Co., Ltd.
Guangdong
Other non-current Electronics
Information 275,394,068.90
assets Industry Group
Ltd.
Other non-current Guangdong Rising
Holdings Group 159,735,852.51
assets Co., Ltd.
Other non-current Guangdong Rising
Capital Investment 19,999,513.57
assets Co., Ltd.
Total 41,696,763.39 848,170.10 499,243,767.24 1,306,829.38
159
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Foshan NationStar
Notes payable 2,655,311.08 5,816,952.78
Optoelectronics Co., Ltd.
Foshan NationStar
Accounts payable 21,058,724.95 13,989,061.63
Optoelectronics Co., Ltd.
Guangdong Zhongnan
Accounts payable 2,268,254.52 12,370,475.74
Construction Co., Ltd.
Guangdong Fenghua
Accounts payable Advanced Technology 2,110,641.52 872,962.28
(Holding) Co., Ltd.
Prosperity Lamps &
Accounts payable 773,460.05 1,337,304.32
Components Limited
Hangzhou Times Lighting
Accounts payable 238,275.04 178,185.14
Electric Appliances Co., Ltd.
Guangdong Yixin
Accounts payable Changcheng Construction 26,170.28 3,698,122.01
Group
Prosperity (China) Electrical
Accounts payable 567,218.00
Company Limited
Guangdong Zhongren Group
Other payables 73,816,998.27 163,292,707.38
Construction Co., Ltd
Guangdong Huajian
Other payables 1,726,264.40 1,726,264.40
Enterprise Group Co., Ltd.
Guangdong Electronic
Other payables 660,625.55 -194,000.00
Technology Research Institute
Shenzhen Yuepeng
Other payables 140,000.00 298,300.64
Construction Co., Ltd.
Dongjiang Environmental
Other payables Company Limited and its 47,816.00 118,352.30
holding subsidiary
Guangdong Fenghua
Other payables Advanced Technology 30,000.00 30,000.00
(Holding) Co., Ltd.
Nanning Ruixiang Industrial
Other payables 120,352,181.20 120,352,181.20
Investment Co., Ltd.
Guangdong Electronic
Other payables 391,025.00
Technology Research Institute
Foshan NationStar
Other payables 230,354.07 240,354.07
Optoelectronics Co., Ltd.
Contract liabilities, other Prosperity (China) Electrical
21,369.20 59,428.00
current liabilities Company Limited
Contract liabilities, other Guangdong Rising South
9,936.00 3,233.00
current liabilities Construction Co., Ltd.
Contract liabilities, other Guangdong Heshun Property
2,303.60 2,303.60
current liabilities Management Co., Ltd.
Total 226,168,685.73 325,150,431.49
7. Commitments of Related Party
1. Commitment on Avoidance of Horizontal Competition
(1) Commitment maker: Electronics Group and Hong Kong Rising Investment
Contents of Commitment: Electronics Group and its acting-in-concert parties 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
160
that besides the enterprise above that is in horizontal competition with the Company for now, if the products or
business of them or their relevant enterprises become the same with or similar to those of the Company or its
subsidiaries in the future, they shall take the following measures: (1) If the Company thinks necessary, they and
their relevant enterprises shall reduce and wholly transfer their relevant assets and business; and (2) If the
Company thinks necessary, it is given the priority to acquire first, by proper means, the relevant assets and
business of them and their relevant enterprises. 2. All the commitments made by them to eliminate or avoid
horizontal competition with the Company are also applicable to their directly or indirectly controlled subsidiaries.
They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant document
and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries
break the aforesaid commitments and thus cause a loss for the Company, they shall compensate the Company on a
rational basis.
Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(2) Commitment maker: Rising Group
Contents of Commitment: 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
Fulfillment: In execution
（3）Commitment maker: Rising Group, Rising Capital, and Hongkong Wah Shing
Contents of Commitment: 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 honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries
break the aforesaid commitments and thus cause a loss for FSL, they shall compensate FSL on a rational basis.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
2. Commitment on Reduction and Regulation of Related-party Transactions
(1) Commitment maker: Electronics Group and Hong Kong Rising Investment
Contents of Commitment: Electronics Group and its acting-in-concert parties Hongkong Wah Shing and Hong
161
Kong Rising Investment have made a commitment that during their direct or indirect holding of the Company’s
shares, they shall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE, the Company’s
Articles of Association, etc. and not harm the interests of the Company or other shareholders of the Company in
their production and operation activities by taking advantage of their position as the controlling shareholder and
actual controller; 2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run or
associated companies (the “Relevant Enterprises” for short) will try their best to avoid or reduce related-party
transactions with the Company or the Company’s subsidiaries; 3. strictly follow the market principle of justness,
fairness and equal value exchange for necessary and unavoidable related-party transactions between them and
their Relevant Enterprises and the Company, and withdraw from voting when a related-party transaction with
them or their Relevant Enterprises is being voted on at a general meeting or a board meeting, and execute the
relevant approval procedure and information disclosure duties pursuant to the applicable laws, regulations and
regulatory documents. Where the aforesaid commitments are broken and a loss is thus caused for the Company,
its subsidiaries or the Company’s other shareholders, they shall be obliged to compensate.
Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(2) Commitment maker: Rising Group
Contents of Commitment: 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.
Date of commitment making: 4 November 2021
Term of commitment: Long-standing
Fulfillment: In execution
（3）Commitment maker: Rising Group, Rising Capital, and Hongkong Wah Shing
Contents of Commitment: They have made a commitment that during their direct or indirect holding of FSL
activities of themselvesstrictly 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.
162
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
3. Commitment on Independence
(1) Commitment maker: Electronics Group and Hong Kong Rising Investment
Contents of Commitment: In order to ensure the independence of FSL in business, personnel, asset, organization
and finance, Electronics Group and Hong Kong Rising Investment have made the following commitments: 1. They
will 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, Company Secretary 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 labor,
human resource and salary management. And (3) They promise to follow the legal procedure in their
recommendation of directors, supervisors and senior management personnel to 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 FSL’s assets to provide guarantees for the debts of themselves or their other controlled
subsidiaries with. 4. They will ensure the independence of FSL in organization: (1) They promise that FSL has a
sound corporate governance structure as a joint-stock company with an independent and complete organization
structure. (2) They promise that the operational and management organs within 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 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
Fulfillment: In execution
(2) Commitment maker: Rising Group
Contents of Commitment: To maintain the independence of the Company, the Promisor has made the following
163
commitments: 1. It will ensure the personnel independence of the Company. 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. the Company: To maintain the independence
of the Company, the Promisor has made the following commitments: 1. It will ensure the personnel independence of
the Company. It promises to ensure personnel independence with the Company, and GM, depnd (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 standardized 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 organization: (1) It promises that the Company can operate independently with an independent and
complete organization 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. And 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.
Date of commitment making: 4 November 2021
Term of commitment: Long-standing
Fulfillment: In execution
4. Commitment on effective performance of measures to fill up returns
Commitment maker: Rising Group, Rising Capital, Electronics Group, Hongkong Wah Shing, Hong Kong Rising
Investment and Shenzhen Rising Investment
Contents of Commitment: 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. 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 refuses to fulfill 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.
Fulfillment: In execution.
5. Commitment on non-reduction of FSL shares during major asset restructuring
164
Commitment maker: Rising Group, Rising Capital, Electronics Group, Hongkong Wah Shing, Hong Kong Rising
Investment and Shenzhen Rising Investment
Contents of Commitment: 1. They promise that there will be no share reduction plan from the date of issuance of
this Letter of Commitments to the completion of this trading, and they will not reduce its FSL shares in any other
way (except the transfer or transfer between Rising Holdings Group and its wholly-owned subsidiaries). 2. If FSL
implements ex-rights behaviors such as share conversion, share offering and share allotment from the date of
issuance of this Letter of Commitments to the completion of this trading, the newly added shares obtained by them
will also be subject to the above commitments related to not reducing share holdings.
Date of commitment making: 28 September 2021.
Term of commitment: Until the completion of this trading.
Fulfillment: Complete
6. Commitment on compensation for possible violations of laws and regulations by NationStar
Optoelectronics
Commitment maker: Rising Holdings Group, Electronics Group, and Rising Capital
Contents of Commitment: 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
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.
Fulfillment: In execution.
7. Commitment on explanation of confidentiality measures and confidentiality system adopted for this
trading
Commitment maker: Rising Group, Electronics Group, and Rising Capital
Contents of Commitment: 1. During the preliminary negotiation between the listed company and the counterparty
on this trading, necessary and sufficient confidentiality measures were taken to limit the scope of knowledge of
relevant sensitive information. According to the requirements of the SZSE, the listed company have completed the
submission and online reporting of the memorandum of trading process, relevant materials of insider information
insiders. The listed company have hired independent financial advisers, legal advisers, audit institutions, valuation
institutions and other intermediaries, and signed confidentiality agreements or appointment agreements with
confidentiality clauses with the above intermediaries, clearly stipulating the scope of confidential information and
the confidentiality responsibilities of each intermediary.
Date of commitment making: 27 October 2021.
Term of commitment: Until the completion of this trading.
Fulfillment: Complete.
8. Commitment on the truthfulness, accuracy and completeness of the information provided during this
major asset restructuring
(1) Commitment maker: Rising Group, Electronics Group, and Rising Capital
Contents of Commitment: 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
165
authentic, and the signatories of the documents have been legally authorized 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.
Fulfillment: In execution.
(2) Commitment maker: NationStar Optoelectronics
Contents of Commitment: NationStar Optoelectronics has provided the necessary, true, accurate, complete and
effective documents, materials or oral statements and explanations for this trading at this stage, and there is no
concealment, falsehood or material omission. The copies or photocopies of the documents provided are consistent
with the original materials or originals. The signatures and seals on the documents and materials provided are
authentic, and NationStar Optoelectronics has fulfilled the legal procedures required for such signatures and seals
and obtained legal authorization. All the facts stated and explained are consistent with the facts that happened.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
（3）Commitment maker: Sigma
Contents of Commitment: 1. Sigma has 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, valuation, legal and financial consultancy for this trading. Sigma
promises 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 authorized 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.
FSL also promises to bear individual and joint and several liability. 2. Sigma promises 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, Sigma will be liable for compensation according to
law.
Date of commitment making: 27 October 2021
Term of commitment: Long-standing..
Fulfillment: In execution.
9. Commitment on the clarity of the underlying assets of this major asset restructuring
(1) Commitment maker: Electronics Group
Contents of Commitment: 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
166
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.
Fulfillment: In execution.
(2) Commitment maker: Rising Group
Contents of Commitment: Rising Group promises that 46,260,021 shares of NationStar Optoelectronics 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; the above shares are not subject to any other pledges, guarantees or third-party interests or restrictions
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.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
(3) Commitment maker: Rising Capital
Contents of Commitment: Rising Capital promises that 5,791,924 shares of NationStar Optoelectronics 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; the above shares are not subject to any other pledges, guarantees or third-party interests or restrictions
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.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
（4）Commitment maker: Sigma
Contents of Commitment: Among 79,753,050 shares of tradable shares with unlimited selling conditions of
NationStar Optoelectronics held by Sigma, 39,876, 500 shares were pledged for Guangdong Electronics
Information Industry Group Ltd. As of the date of issuance of this commitment, the pledge of the above shares has
been released. However, the Maximum Pledge Contract for Stocks of Listed Companies (No.: XYYZZ (BY)
No.201906280001-2) signed by Sigma and Guangzhou Branch of Industrial Bank Co., Ltd. has not been dissolved.
Guangdong Electronics Information Industry Group Ltd. has promised that it will not add any new loans to
Guangzhou Branch of Industrial Bank Co., Ltd. as a borrower during the validity period of the guarantee, and that it
will not substantially assume any guarantee responsibility due to the Maximum Pledge Contract for Stocks of Listed
Companies. Except as aforesaid, the asset ownership of Sigma is clear, there is no dispute or potential dispute, and
there is no situation affecting the legal existence. There is no entrusted shareholding or trust shareholding,
restriction or prohibition of transfer of the above-mentioned equity controlled by Rising Holdings Group.
Date of commitment making: 27 October 2021
Term of commitment: Long-standing.
Fulfillment: In execution.
167
10. Commitment on compliance of this major asset restructuring with Several Provisions on the Reduction of
Shares by Shareholders, Directors and Supervisors of Listed Companies
Commitment maker: Rising Group and Rising Capital
Contents of Commitment: 1. They are not subject to any securities and futures crimes as stipulated in Article 6 of
Several Provisions on the Reduction of Shares by Shareholders, Directors and Supervisors of Listed Companies.
During the period when the CSRC or the judicial organ filed a case for investigation, and less than six months
after the administrative penalty decision and criminal judgment were made, there was no situation that the shares
of NATIONSTAR could not be reduced due to violation of the rules of stock exchanges and public censure by
stock exchanges for less than three months. 2. In case of any violation or losses caused to NATIONSTAR,
investors, parties to the trading and intermediaries participating in this trading, they will be liable for
compensation according to law.
Date of commitment making: 27 October 2021.
Term of commitment: Until the completion of this trading.
Fulfillment: Complete.
11. Commitment on the release of credit guarantee
Commitment maker: Electronics Group
Contents of Commitment: 1. As of the date of issuance of the Letter of Commitments, Sigma has signed the
Maximum Guarantee Contract (Contract No.: XYYBZ (BY) No.201906280001-1) and the Maximum Pledge
Contract for Stocks of Listed Companies (Contract No.: XYYZZ (BY) No.201906280001-2) with Guangzhou
Branch of Industrial Bank Co., Ltd. Sigma will provide the maximum guarantee and pledge guarantee for the debt of
Electronics Group, with the guarantee amount of RMB400 million (in words: RMB Four Hundred Million), and the
guarantee will be valid from 28 June 2019 to 27 June 2022. Electronics Group promises that on the date of issuance
of this Letter of Commitment, all the loans involved in the Maximum Guarantee Contract and the Maximum Pledge
Contract for Stocks of Listed Companies have been repaid, there is no debt based on the guarantee under the above
contracts, and 39,876,500 shares of NationStar Optoelectronics held by Sigma have been released from pledge. At
the same time, Electronics Group further makes an irrevocable commitment that it will not add any new loans to
Guangzhou Branch of Industrial Bank Co., Ltd. as a borrower before the expiration date of the Maximum Guarantee
Contract and the Maximum Pledge Contract for Stocks of Listed Companies, so as to ensure that Sigma will not
actually assume any guarantee responsibilities due to the above guarantee contracts. 2. Electronics Group promises
that it will not arrange for Sigma to add any form of guarantee before the completion of the delivery of Sigma's
equity in this trading. 3. In case of any violations of the above commitments, Electronics Group shall solve and
eliminate the above situation within ten days, and bear corresponding legal responsibilities to Sigma and FSL.
Date of commitment making: 27 October 2021
Term of commitment: Until the completion of this trading.
Fulfillment: Complete.
12. Commitment on no ownership dispute in equity
Commitment maker: Sigma
Contents of Commitment: 1. Sigma promises that all its registered capital has been paid in. 2. Sigma promises that
all existing shareholders contribute their own funds to hold shares, there is no situation such as holding shares on
behalf of them, and there is no dispute or potential dispute between shareholders over their shares.
Date of commitment making: 27 October 2021
Term of commitment: Long-standing.
Fulfillment: In execution.
13．About absence of insider trading
168
Commitment maker: Key management personnel of Rising Group, Electronics Group, and Rising Capital
Contents of Commitment: They promise that they will not disclose the relevant insider information of this trading or make use of
the insider information for insider trading; 2. As of the issuance date of the Report on Major Asset Purchase and Related Party
Trading of Foshan Electrical and Lighting Co., Ltd. (Draft), they have not been placed on file for investigation or criminal
investigation due to suspected insider trading related to this trading, and have not been subject to administrative punishment by the
CSRC or criminal responsibility investigated by judicial organs according to law for insider trading related to any major asset
restructuring, and have not been prohibited from engaging in any major asset restructuring of listed companies according to Article
13 of the Interim Provisions on Strengthening the Supervision of Abnormal Stock Trading Related to Major Asset Restructuring of
Listed Companies in the last 36 months; 3. In case of violation of the above commitments, they will bear all losses caused to the
listed company and its shareholders.
Date of commitment making: 27 October 2021
Term of commitment: From the date of the issuance of the letter of commitment until the completion of this trading
Fulfillment: Complete.
8. Other
Naught
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□Applicable Not applicable
2. The Stock Payment Settled in Equity
□Applicable Not applicable
3. The Stock Payment Settled in Cash
□Applicable Not applicable
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Naught
169
2. Contingency
(1) Significant Contingency on Balance Sheet Date
Refer to VIII Legal Matters in Part VI of this Report for details.
(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
As of 30 June 2022, guarantees of subsidiaries were as follows (RMB’0,000):
Principal
Principal debtor Guarantor Type of guarantee Guarantee amount Guarantee balance
debtee
Nanning Nanning Kuang Linchang, Liang Xiaoling, Yang Joint-liability
Liaowang (note Branch of Shiyue, Gu Hanhua, Qingdao Lighting, guarantee
20,000.00 0.00
1) Industrial Liuzhou Lighting, Chongqing Guinuo
Bank
Nanning Far Eastern Nanning Liaowang, Qingdao Lighting, Joint-liability
Liaowang (note International Liuzhou Lighting, Kuang Linchang, guarantee
2) Financial Liang Xiaoling, Yang Shiyue, Gu 2,600.00 375.01
Leasing Co., Hanhua
Ltd.
Liuzhou Lighting Nanning Nanning Liaowang, Liuzhou Lighting, Joint-liability
(note 3) Branch of Kuang Linchang, Liang Xiaoling, Yang guarantee
15,000.00 0.00
Industrial Shiyue, Gu Hanhua
Bank
Chongqing Far Eastern Nanning Liaowang, Qingdao Lighting, Joint-liability
Guinuo (note 4) International Liuzhou Lighting, Kuang Linchang, guarantee
Financial Liang Xiaoling, Yang Shiyue, Gu 3,999.00 757.06
Leasing Co., Hanhua
Ltd.
Nanning
Liaowang, Nanning
Liuzhou Branch of Nanning Liaowang Auto Lamp Co.,
Mortgage 4,500.00 4,500.00
Foreshine, Industrial Ltd.
Liuzhou Lighting Bank
(note 5)
Nanning Nanning
Liaowang (note Branch of Chongqing Guinuo Lighting
Mortgage 8,100.00 5,000.00
6) Industrial Technology Co., Ltd.
Bank
170
Nanning
Nanning
Liaowang,
Branch of Liuzhou Guige Lighting Technology
Liuzhou Fuxuan, Mortgage 9,100.00 3,500.00
Industrial Co., Ltd.
Liuzhou Lighting
Bank
(note 7)
Foshan Branch
NationStar
of China Foshan NationStar Optoelectronics Co., Joint-liability
Semiconductor 30,000.00 0.00
Merchants Ltd. guarantee
(note 8)
Bank
Total —— —— —— 93,299.00 14,132.07
Note 1: Nanning Liaowang and Nanning Branch of Industrial Bank signed the Working Capital Loan Contract
(XYGCBLJ Zi (2021) No.1001), with a loan amount of RMB47.7 million (from 1 February 2021 to 1 February
2022). This guarantee has been terminated. Kuang Linchang, Liang Xiaoling, Yang Shiyue, Gu Hanhua, Qingdao
Lighting, Liuzhou Guige Lighting and Chongqing Guinuo jointly assume joint and several guarantee liabilities for
all creditor's rights balances under the maximum principal limit of RMB200 million, and the guarantee amount is
valid from 30 December 2019 to 30 December 2024. This guarantee has been terminated on 1 February 2022.
Note 2: On 18 May 2020, Nanning Liaowang and Far East International Financial Leasing Co., Ltd. (hereinafter
referred to as "Far East Leasing") signed the Sale Lease Contract (Contract No.: IFELC20DE24MZT-L-01), with a
financing loan amount of RMB26 million, and the actual loan amount obtained was RMB24 million (the difference
with the financing loan amount was RMB2 million as a deposit, which was withheld by Far East Leasing), and the
loan term of finance lease is 30 months. Liuzhou Guige Lighting, Qingdao Lighting, Yang Shiyue, Gu Hanhua,
Kuang Linchang and Liang Xiaoling provide joint and several liability guarantee for this financing loan. Nanning
Liaowang signed the Ownership Transfer Agreement with Far East Leasing. According to the General Terms and
Conditions of the Sale and Return Lease Contract: Under the condition that Party B (Nanning Liaowang, the same
below) enjoys all the rights under this contract and does not affect Party B's normal use, Party A (Far East Leasing,
the same below) may transfer its ownership of the leased items to any third party, or mortgage the leased items and
other guarantees, and the validity of the contract will not be affected. Party A undertakes not to adversely affect
Party B's rights (especially the performance of this contract) due to the transfer/mortgage. Party B shall perform this
contract according to the contract, and Party A shall guarantee that Party B shall have the right to use the leased
items and the ownership after the expiration of the lease period according to the contract.
Note 3: Liuzhou Guige Lighting and Nanning Branch of Industrial Bank signed loan contracts numbered
WYZH2021012600174, WYZH2021042100164 and WYZH2021042100146, borrowing RMB10 million (from 26
January 2021 to 26 January 2022), RMB20 million (from 21 April 2021 to 21 April 2022), and RMB20 million
(from 22 April 2021 to 22 April 2022) respectively. This guarantee has been terminated. Nanning Liaowang, Kuang
Linchang, Liang Xiaoling, Yang Shiyue and Gu Hanhua provide joint and several liability guarantee with the
maximum balance of principal creditor's rights not exceeding RMB150 million exposure, and the guarantee amount
is valid from 30 December 2019 to 30 December 2024. This guarantee has been terminated on 22 April 2022.
Note 4: On 21 June 2020, Chongqing Guinuo signed the Sale and Return Lease Contract with Far East Leasing
(Contract No.: IFELC20DE2XZXM-L-01), with a financing loan amount of RMB39.9 million and an actual loan
amount of RMB35.99 million (the difference with the financing loan amount is RMB4 million as a deposit, which is
withheld by Far East Leasing), and the loan term of finance lease is 30 months. This financial lease loan is
mortgaged by Chongqing Guinuo with 28 fixed assets and 104 molds owned by itself. Chongqing Guinuo signed the
Ownership Transfer Agreement with Far East Leasing, and Nanning Liaowang, Liuzhou Guige Lighting, Qingdao
Lighting, Liang Xiaoling, Yang Shiyue, Gu Hanhua and Kuang Linchang provided joint and several liability
171
guarantee for the lease loan. According to the General Terms and Conditions of the Sale and Return Lease Contract:
Under the condition that Party B (Chongqing Guinuo, the same below) enjoys all the rights under this contract and
does not affect Party B's normal use, Party A (Far East Leasing, the same below) may transfer its ownership of the
leased items to any third party, or mortgage the leased items and other guarantees, and the validity of the contract
will not be affected. Party A undertakes not to adversely affect Party B's rights (especially the performance of this
contract) due to the transfer/mortgage. Party B shall perform this contract according to the contract, and Party A
shall guarantee that Party B shall have the right to use the leased items and the ownership after the expiration of the
lease period according to the contract.
Note 5: Nanning Liaowang Auto Lamp Co., Ltd. (Nanning Liaowang) and Nanning Branch of Industrial Bank Co.,
Ltd. entered into the Maximum Financing Agreement (X.Y.G.CH.B.R.Z.Z. [2022] No. (01)) to conduct a bill
transaction of RMB45 million. 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
RM72,344,400 in the original guarantee contract. The mortgage amount is valid from 23 June 2020 to 23 June
2025. This guarantee has been terminated on 24 April 2022. In the new guarantee contract, 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 RMB45 million. The mortgaged real estate is a)
YG (2017) NNSBDCQZ No.0065501; b) EG (2017) NNSBDCQZ No.0065499; c) SG (2017) NNSBDCQZ
No.0065498; d) SG (2017) NNSBDCQZ No.0065497.
Note 6: Nanning Liaowang and Nanning Branch of Industrial Bank Co., Ltd. entered into the Working Capital Loan
Contracts, numbered WYZH2022021100314 and WYZH2022021100248, with the loan amounts of RMB19.8
million (from 11 February 2022 to 11 February 2023) and RMB30.2 million (from 11 February 2022 to 11 February
2023), respectively. Chongqing Guinuo Lighting Technology Co., Ltd. (Chongqing Guinuo) provide 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 RM122,294,700. The guarantee amount is RMB81 million and valid from 15
June 2020 to 15 June 2023. The mortgaged real estate is a) YY (2020) LJXQBDCQ No.000436821, b) EY (2020)
LJXQBDCQ No.000437330, c) SY (2020) LJXQBDCQ No.000437429 and d) SY (2020) LJXQBDCQ
No.000437448.
Note 7: Liuzhou Guige Photoelectric Technology Co., Ltd. (Liuzhou Guige) and Nanning Branch of Industrial
Bank Co., Ltd. entered into the Working Capital Loan Contract, numbered WYZH2022050700423, with a loan of
RMB15 million (from 7 May 2022 to 7 May 2023). Liuzhou Guige and Nanning Branch of Industrial Bank Co., Ltd.
entered into the Agreement on Banker's Acceptance Financing Business Cooperation (X.Y.G.CH.B.SH.X. [2022]
No. 1002), with a loan of RMB15 million (from 7 May 2022 to 7 May 2023), to conduct a bill transaction of RMB20
million. In the original guarantee contract, Liuzhou Guige provides mortgage guarantee with the immovable
property owned as collateral, and the balance of its creditor's rights does not exceed RMB150 million. The
mortgage amount is valid from 30 December 2019 to 30 December 2024. The guarantee has been terminated on
23 April 2022. In the new guarantee contract, Liuzhou Guige provides mortgage guarantee with the immovable
property owned as collateral, and the balance of its principal creditor's rights does not exceed RMB139,943,700.
The guarantee amount is RMB91 million and valid from 24 April 2022 to 31 December 2025. The mortgaged real
estate is: a) YG (2019) LZSBDCQ No.0191988, located at No.1 Factory Building, No.12 Hengsi Road, Cheyuan; b)
EG (2019) LZSBDCQ No.0191991, located in the mold center of No.12 Hengsi Road, Cheyuan; c) SG (2019)
LZSBDCQ No.0191994, located in the logistics gate guard room at No.12 Hengsi Road, Cheyuan; d) SG (2019)
LZSBDCQ No.0191995, located in the guard room of Gate 12, Hengsi Road, Cheyuan.
Note 8: Foshan NationStar Optoelectronics Co., Ltd. convened the 9th Meeting of the 4th Board of Directors on 18
172
September 2017, on which, the Proposal on Providing Guarantee for the Company’s Wholly-owned Subsidiary
was reviewed and approved and the Company was agreed to provide a credit guarantee not exceeding RMB300
million for the corporation overdraft conducted by its wholly-owned subsidiary NationStar Semiconductor at
China Merchants Bank. NationStar Semiconductor signed the Credit Agreement, numbered 757XY2018015331
with Foshan Branch of China Merchants Bank which agreed to provide the credit line of RMB100 million for
NationStar Semiconductor within the credit period stipulated in the Credit Agreement (from 28 May 2018 to 27
May 2019). The guarantor Foshan NationStar Optoelectronics Co., Ltd. has given the Letter of Irrevocable
Guarantee for Maximum Amount, numbered 757XY201801533101 to undertake joint liability guarantee for the
principal debtor valid from 12 June 2018 to 27 May 2022. This guarantee has expired on 27 May 2022.
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught
2. Profit Distribution
Naught
3. Sales Return
Naught
4. Notes to Other Events after Balance Sheet Date
1. About the equity transfer of the sub-subsidiary NationStar Optoelectronics (Germany) Co., Ltd.
Haolaite, a holding subsidiary of the Company, acquired 100% of the equities of NationStar Optoelectronics
(Germany) Co., Ltd., a wholly-owned subsidiary of NATIONSTAR, the holding subsidiary, by means of payment
in cash. On 20 June 2022, an equity transfer agreement was entered into by both parties. On 13 July 2022,
Haolaite paid RMB258,700 for the transfer of the 100% equities. On 21 July 2022, NationStar Optoelectronics
(Germany) Co., Ltd. completed the application for transfer of domestic entities. As of the date of this report, the
change of NationStar Optoelectronics (Germany) Co., Ltd.'s overseas equities is still underway.
2. About the acquisition of the equities of Guangdong Fenghua Semiconductor Technology Co., Ltd. by the
holding subsidiary and its connected transaction
In order to speed up the expansion of 3rd-general semiconductor business of NATIONSTAR, a holding subsidiary
of the Company, the Board of Directors agreed to NATIONSTAR's acquisition of 99.87695% of the equities of
Guangdong Fenghua Semiconductor Technology Co., Ltd. (hereinafter referred to as "Fenghua Semiconductor")
held by Guangdong Fenghua Advanced Technology (Holding) Co., Ltd. (hereinafter referred to as "Fenghua
Advanced Technology") at RMB268,819,300. Guangdong Rising Holdings Group is the holding shareholder of
the Company and Fenghua Advanced Technology, so Fenghua Advanced Technology is the connected legal
person of the Company according to the Stock Listing Rules of Shenzhen Stock Exchange, and this transaction
constitutes a connected transaction but does not constitute a significant assets spin-off under the Administrative
Measures for the Material Asset Reorganizations of Listed Companies.
The Company convened the 33rd Meeting of the Ninth Board of Directors on 12 August 2022, at which the
173
Proposal on Holding Subsidiary's Acquisition of the Equities of Guangdong Fenghua Semiconductor Technology
Co., Ltd. and Its Connected Transaction was deliberated and approved with seven votes of assent, zero votes of
dissent, zero votes of abstention and two votes of withdrawal. Connected directors Mr. Hu Fengcai and Mr. Huang
Zhiyong recused themselves from voting according to law. Independent directors of the Company expressed
ex-ante approval and independent opinions on the connected transactions in relation to this acquisition.
Meanwhile, the Company convened the 3rd Extraordinary General Meeting in 2022 on 29 August 2022, at which
the Proposal on Holding Subsidiary's Acquisition of the Equities of Guangdong Fenghua Semiconductor
Technology Co., Ltd. and Its Connected Transaction was deliberated and approved, and connected persons having
an interest in the connected transaction recused themselves from voting.
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
(1) Retrospective Restatement
Naught
(2) Prospective Application
Naught
2. Debt Restructuring
Naught
3. Assets Replacement
(1) Non-monetary Assets Exchange
Naught
(2) Other Assets Replacement
Naught
4. Pension Plans
In accordance with provisions of Measures for Enterprise Annuity (RSBL No. 36), Measures for Managing
Enterprise Annuity Fund (RSBL 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. And the trustee of the enterprise annuity fund will entrust eligible account managers, custodians and
investment managers 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
174
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
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
Naught
(2) The Financial Information of Reportable Segment
Naught
(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
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught
8. Other
(I) Demolition Matters of Nanjing Fozhao
According to the Decision of Nanjing Lishui District People's Government on House Expropriation on
State-owned Land of Honglan Street Affordable Housing Project in Lishui District (NLFZ Zi [2020] No.18), The
house owned by Nanjing Fozhao, a wholly-owned subsidiary of the Company, located at 688 Jinniu North Road,
Honglan Street, Lishui District, Nanjing (the total construction area of the house is 44,558.09 square meters,
which is an industrial house; The land use right covers an area of 135,882.4 square meters, which is industrial land)
belongs to the expropriation scope, and the compensation, relocation fee, loss fee of production and business
suspension and other rewards of the expropriated assets total RMB183,855,895.00. As of 30 June 2022, 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.
175
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Category of Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Item Withdra Carrying Withdra Carrying
Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Account
s
receivab
le for
which
11,220, 11,220, 11,220, 8,976,6 2,244,1
bad debt 0.89% 100.00% 0.00 1.00% 80.00%
827.14 827.14 827.14 61.72 65.42
provisio
n
separatel
y
accrued
Of
which:
Account
s
receivab
le for
which 1,247,2 1,187,8 1,108,6 1,056,6
59,424, 51,950,
28,261. 99.11% 4.76% 03,897. 41,819. 99.00% 4.69% 91,498.
bad debt 363.55 320.95
37 82 86 91
provisio
n
accrued
by group
Of
which:
(1)
Commo 1,216,4 1,157,0 1,022,0
59,424, 51,950, 970,055
n 49,379. 96.66% 4.89% 25,016. 05,643. 91.26% 5.08%
363.55 320.95 ,322.61
business 92 37 56
portfolio
(2) 30,778, 30,778, 86,636, 86,636,
2.45% 7.74%
Internal 881.45 881.45 176.30 176.30
176
business
portfolio
1,258,4 1,187,8 1,119,8 1,058,9
70,645, 60,926,
Total 49,088. 100.00% 5.61% 03,897. 62,647. 100.00% 5.44% 35,664.
190.69 982.67
51 82 00 33
Individual withdrawal of bad debt provision by single item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Involved in the lawsuit;
the Company won in
Customer A 11,220,827.14 11,220,827.14 100.00% the second instance
judgment and not
executed completely
Total 11,220,827.14 11,220,827.14
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk portfolio 1,247,228,261.37 59,424,363.55 4.76%
Total 1,247,228,261.37 59,424,363.55
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general mode
of expected credit loss to withdraw bad debt provision of accounts receivable.
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 1,156,764,405.89
1 to 2 years 55,152,654.80
2 to 3 years 5,573,526.47
Over 3 years 40,958,501.35
3 to 4 years 21,341,828.20
4 to 5 years 5,682,589.42
Over 5 years 13,934,083.73
Total 1,258,449,088.51
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Withdrawal
recovery
Bad debt 8,976,661.72 2,244,165.42 0.00 11,220,827.1
177
provision 4
withdrawn
separately
Bad debt
provision 51,950,320.9 59,424,363.5
7,474,298.96 256.36
withdrawn by 5 5
group
60,926,982.6 70,645,190.6
Total 9,718,464.38 0.00 256.36
7 9
Of which significant amount of reversed or recovered bad debt provision:
Naught
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount
Other driblet small amount 256.36
Of which, verification of significant accounts receivable:
Unit: RMB
Whether occurred
because of
Name of the entity Nature Amount Reason Procedure
related-party
transactions
The approval
procedure is
carried out
Other retails
Payment for goods 256.36 Unrecoverable according to the Not
accounts
Company’s rules
for managing bad
debt.
Total -- 256.36
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Proportion to total ending
Ending balance of accounts Ending balance of bad debt
Name of units balance of accounts
receivable provision
receivable (%)
No. 1 152,875,068.03 12.15% 4,586,252.04
No. 2 89,987,854.53 7.15% 2,699,635.64
No. 3 31,396,709.13 2.49% 941,901.27
No. 4 29,155,889.38 2.32% 874,676.68
No. 5 26,766,896.54 2.13% 803,006.90
Total 330,182,417.61 26.24%
178
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Naught
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 447,027,739.63 511,056,231.24
Total 447,027,739.63 511,056,231.24
(1) Interest Receivable
1) Category of Interest Receivable
Naught
2) Significant Overdue Interest
Naught
3) Information of Withdrawal of Bad Debt Provision
□Applicable Not applicable
179
(2) Dividend Receivable
1) Category of Dividend Receivable
Naught
2) Significant Dividends Receivable Aging over 1 Year
Naught
3) Information of Withdrawal of Bad Debt Provision
□Applicable Not applicable
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
VAT export tax refunds 4,496,365.98 4,674,335.06
Performance bond 8,637,137.38 5,597,832.99
Staff borrow and petty cash 1,813,413.90 3,486,778.81
Rent, water & electricity fees 1,456,935.93 2,564,557.87
Other intercourse 433,601,839.90 497,805,458.10
Total 450,005,693.09 514,128,962.83
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Expected loss in the
Bad debt provision Expected credit loss of duration (credit Total
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
763,248.72 2,309,482.87 3,072,731.59
2022
Balance of 1 January
2022 in the Current
Period
Withdrawal of the
-282,481.64 187,703.51 -94,778.13
Current Period
Balance of 30 June
480,767.08 2,497,186.38 2,977,953.46
2022
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
180
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 439,945,369.74
1 to 2 years 6,150,154.66
2 to 3 years 867,074.45
Over 3 years 3,043,094.24
3 to 4 years 2,114,385.69
4 to 5 years 489,061.25
Over 5 years 439,647.30
Total 450,005,693.09
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 Other
recovery
Other
3,072,731.59 -94,778.13 2,977,953.46
receivables
Total 3,072,731.59 -94,778.13 2,977,953.46
Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Internal business
420,598,696.63 Within 1 year 93.47%
group
No. 2 VAT export tax
4,496,365.98 Within 1 year 1.00% 134,890.98
refunds
No. 3 Internal business
4,116,845.26 Within 2 years 0.91%
group
No. 4 Intercourse
2,673,256.53 Within 1 year 0.59% 80,197.70
accounts
No. 5 Performance bond 1,500,000.00 Within 1 year 0.33% 45,000.00
181
Total 433,385,164.40 96.30% 260,088.68
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Other Receivables
Naught
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserve amount reserve
Investment to 2,296,631,23 2,296,631,23 1,061,536,76 1,061,536,76
subsidiaries 8.41 8.41 6.02 6.02
Investment to
joint ventures 180,115,189. 180,115,189. 181,545,123. 181,545,123.
and associated 99 99 09 09
enterprises
2,476,746,42 2,476,746,42 1,243,081,88 1,243,081,88
Total
8.40 8.40 9.11 9.11
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease Ending Ending
balance Depreciation balance balance of
Investee Additional Reduced
(carrying reserves Other (carrying depreciation
investment investment
value) withdrawn value) reserve
FSL
Chanchang 82,507,350 82,507,350
Optoelectron .00 .00
ics Co., Ltd.
Foshan
Taimei Times
Lamps and 350,000.00 350,000.00
Lanterns Co.,
Ltd.
182
Nanjing
Fozhao
Lighting 72,000,000 72,000,000
Components .00 .00
Manufacturin
g Co., Ltd.
Foshan
Electrical &
35,418,439 35,418,439
Lighting
.76 .76
(Xinxiang)
Co., Ltd.
Foshan
Haolaite 16,685,000 16,685,000
Lighting Co., .00 .00
Ltd.
Foshan
Lighting
15,000,000 15,000,000
Lamps &
Components .00 .00
Co., Ltd.
FSL Zhida
Electric 25,500,000 25,500,000
Technology .00 .00
Co., Ltd.
FSL Lighting
195,812.50 195,812.50
GMBH
Foshan
Kelian New
170,000,00 170,000,00
Energy
Technology 0.00 0.00
Co., Ltd.
Fozhao
(Hainan) 150,000,00 23,000,000 173,000,00
Technology 0.00 .00 0.00
Co., Ltd.
Nanning
Liaowang 493,880,16 493,880,16
Auto Lamp 3.76 3.76
Co., Ltd.
Foshan
NationStar 1,212,090, 1,212,090,
Optoelectron 245.94 245.94
ics Co., Ltd.
Foshan
Sigma
Venture 4,226.45 4,226.45
Capital Co.,
Ltd.
1,061,536, 1,235,094, 2,296,631,
Total
766.02 472.39 238.41
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Beginni Increase/decrease Ending Ending
Investe
ng Additio Reduce Gains Adjust Change Cash Withdra balance balance
e Other
balance nal d and ment of s of bonus wal of (carryin of
183
(carryin investm investm losses other other or impair g value) depreci
g value) ent ent recogni compre equity profits ment ation
zed hensive announ provisi reserve
under income ced to on
the issue
equity
method
I. Joint ventures
II. Associated enterprises
Shenzh
enPrim
atronix
(Nanho 181,54 180,11
650,45 2,080,
5,123. 5,189.
) 7.40 390.50
09 99
Electro
nics
Ltd.
Subtota 181,54 180,11
650,45 2,080,
5,123. 5,189.
l 7.40 390.50
09 99
181,54 180,11
650,45 2,080,
Total 5,123. 5,189.
7.40 390.50
09 99
(3) Other Notes
Naught
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main business 1,743,824,866.67 1,430,083,022.73 1,712,892,634.56 1,415,558,525.32
Other business 65,355,126.19 46,281,084.46 84,902,658.17 70,407,375.42
Total 1,809,179,992.86 1,476,364,107.19 1,797,795,292.73 1,485,965,900.74
Relevant information of revenue:
Naught
Information related to performance obligations:
Naught
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0.00 at the period-end.
184
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
2,653,342.25
accounted by cost method
Long-term equity investment income
650,457.40 37,460.99
accounted by equity method
Investment income from disposal of
6,754,363.94
long-term equity investment
Dividend income from holding of other
16,055,272.93
investments in equity instruments
Investment income from financial
449,147.49 4,756,319.58
products and structural deposits
Other 1,734,535.05 416,050.00
Total 21,542,755.12 11,964,194.51
6. Other
Naught
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain/Loss arising from disposal of
-5,723,365.37
non-current assets
Government grants recognized in the
current period, except for those acquired
in the ordinary course of business or
31,578,978.53
granted at certain quotas or amounts
according to the government’s unified
standards
Capital occupation charges on
non-financial enterprises that are 213,042.31
recorded into current profit or loss
Current net profit or loss of subsidiaries
acquired in business combination under
9,568,639.83
the same control from period-beginning
to combination date
Gain/loss from change of fair value of
-8,997,858.09
trading financial assets and liabilities,
185
and investment gains from disposal of
trading financial assets and liabilities,
and available-for-sale financial assets,
other than valid hedging related to the
Company’s common businesses
Other non-operating income and
6,044,307.77
expenses other than the above
Less: Income tax effects 4,010,901.27
Non-controlling interests effects 28,870,934.61
Total -198,090.90 --
Others that meets the definition of non-recurring gain/loss:
□Applicable Not applicable
No such cases in the Reporting Period.
Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory Announcement No. 1 on
Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains and Losses as a recurrent
gain/loss item
□Applicable Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to
ordinary shareholders of the 2.68% 0.1191 0.1180
Company
Net profit attributable to
ordinary shareholders of the
2.68% 0.1192 0.1181
Company after deduction of
non-recurring profit or loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□Applicable Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□Applicable Not applicable
186
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Naught
4. Other
Naught
187
