Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
INTERIM REPORT 2023
August 2023
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part I Important Notes, Table of Contents and Definitions
The Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,
supervisors and senior manage ment of Foshan Electrical and Lighting Co., Ltd. (hereinafter
referred to as the “Company”) hereby guarantee the factuality, accuracy and completeness of
the contents of this Report and its summary, and shall be jointly and severally liable for any
misrepresentations, misleading statements or material omissions therein.
Wu Shenghui, the Company’s legal representative, Tang Qionglan, the Company’s Chief
Financial Officer (CFO), and Liang Yuefei, the person-in-charge of the Company’s accounting
organ (equivalent to accounting manager) hereby guarantee that the Financial Statements
carried in this Report are factual, accurate and complete.
All the Company’s directors have attended the Board meeting for the review of this Report
and its summary.
Any plans for the future and other forward-looking statements mentioned in this Report and
its summary shall NOT be considered as absolute promises of the Company to investors.
Therefore, investors are reminded to exercise caution when making investment decisions.
The Company has described in detail in this Report the risk of macro-economic fluctuations
and intensified market competition, the risk of rising raw material prices, the risk of exchange
rate fluctuations, and the risk of the recoverability of accounts receivable. Please refer to the
section headed “Risks Facing the Company and Countermeasures” in Item X of Part III of
this Report.
The Company has no interim dividend plan, either in the form of cash or stock.
This Report and its summary have been prepared in both Chinese and English. Should there
be any discrepancies or misunderstandings between the two versions, the Chinese versions
shall prevail.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Table of Contents
Part I Important Notes, Table of Contents and Definitions ........................................................... 2
Part II Corporate Information and Key Financial Information ................................................... 6
Part III Manage ment Discussion and Analysis ............................................................................. 10
Part IV Corporate Governance ...................................................................................................... 30
Part V Environme ntal and Social Responsibility .......................................................................... 32
Part VI Significant Events ............................................................................................................... 50
Part VII Share Changes and Shareholder Information ............................................................... 66
Part VIII Preferred Shares ............................................................................................................. 72
Part IX Bonds ................................................................................................................................... 73
Part X Financial Statements ........................................................................................................... 74
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Documents Available for Reference
1. The financial statements signed and stamped by the Company’s legal representative, Chief
Financial Officer, and the person-in-charge of the Company’s accounting organ.
2. The originals of all the Company’s announcements and documents disclosed to the public during
the Reporting Period on the media designated by the CSRC for information disclosure.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Definitions
Term Definition
Foshan Electrical and Lighting Co., Ltd. and its consolidated subsidiaries,
The “Company”, “listed company”, “FSL” or “we”
except where the context otherwise requires
Rising Holdings Guangdong Rising Holdings Group Co., Ltd.
Electronics Group Guangdong Electronics Information Industry Group Ltd.
Hong Kong Rising Investment Rising Investment Development Limited
Hongkong Wah Shing Hongkong Wah Shing Holding Company Limited
Guangdong Rising Capital Investment Co., Ltd. (formerly known as
Rising Capital
“Guangdong Rising Finance Holding Co., Ltd.”)
Shenzhen Rising Investment Shenzhen Rising Investment Development Co., Ltd.
NationStar Optoelectronics Foshan NationStar Optoelectronics Co., Ltd. (stock code: 002449)
NationStar Semiconductor Foshan NationStar Semiconductor Technology Co., Ltd.
Sigma Foshan Sigma Venture Capital Co., Ltd.
Nanning Liaowang Nanning Liaowang Auto Lamp Co., Ltd.
Fenghua Semiconductor Guangdong Fenghua Semiconductor Technology Co., Ltd.
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
General meeting General meeting of Foshan Electrical and Lighting Co., Ltd.
Board of Directors The board of directors of Foshan Electrical and Lighting Co., Ltd.
Supervisory Committee The supervisory committee of Foshan Electrical and Lighting Co., Ltd.
Expressed in the Chinese currency of Renminbi, expressed in tens of thousands
RMB, RMB’0,000, RMB’00,000,000
of Renminbi, expressed in hundreds of millions of Renminbi
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name FSL, FSL-B Stock code 000541, 200541
Stock exchange for stock
Shenzhen Stock Exchange
listing
Company name in Chinese 佛山电器照明股份有限公司
Abbr. (if any) 佛山照明
Company name in English (if
any) FOSHAN ELECTRICAL AND LIGHTING GO.,LTD
Abbr. (if any) FSL
Legal representative Wu Shenghui
II Contact Information
Board Secretary Securities Representative
Name Huang Zhenhuan Huang Yufen
No. 64, Fenjiang North Road, No. 64, Fenjiang North Road,
Address Chancheng District, Foshan City, Chancheng District, Foshan City,
Guangdong Province, P.R.China Guangdong Province, P.R.China
Tel. （0757）82810239 （0757）82966028
Fax （0757）82816276 （0757）82816276
Email address fsldsh@chinafsl.com fslhyf@163.com
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes,
website address, email address and other contact information of the Company in the Reporting Period.
□ Applicable Not applicable
No change occurred to the said information in the Reporting Period, which can be found in the 2022 Annual
Report.
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place for
keeping the Company’s periodic reports in the Reporting Period.
□ Applicable Not applicable
The website of the stock exchange, media and other websites where the Company’s periodic reports are
disclosed, as well as the place for keeping such reports did not change in the Reporting Period. The said
information can be found in the 2022 Annual Report.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable Not applicable
IV Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
Yes □ No
Reason for retrospective restatement:
Business combination involving entities under common control and change to accounting policies
H1 2022 Change (%)
H1 2023
Before Restated Restated
Operating revenue
(RMB) 4,566,062,729.02 4,348,268,999.31 4,433,331,393.42 2.99%
Net profit attributable
to the listed company’s 168,935,232.54 160,664,433.28 163,528,019.78 3.31%
shareholders (RMB)
Net profit attributable
to the listed company’s
shareholders before 180,389,211.53 160,862,524.18 162,214,595.34 11.20%
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 387,869,057.20 150,034,906.39 177,102,491.01 119.01%
activities (RMB)
Basic earnings per
share (RMB/share) 0.1252 0.1191 0.1212 3.30%
Diluted earnings per
share (RMB/share) 0.1240 0.1180 0.1201 3.25%
Weighted average
3.23% 2.68% 2.03% 1.20%
return on equity (%)
31 December 2022 Change (%)
30 June 2023
Before Restated Restated
Total assets (RMB) 15,119,943,822.76 15,287,061,119.70 15,288,860,907.09 -1.10%
Equity attributable to
the listed company’s 5,156,107,466.23 5,173,066,095.76 5,173,011,348.74 -0.33%
shareholders (RMB)
Reason for changes in accounting policies:
The Ministry of Finance issued in November 2022 Interpretation No. 16 for the Accounting Standards for
Business Enterprises (hereinafter referred to as “Interpretation No. 16”), which stipulates the accounting
treatments for deferred income taxes associated with assets and liabilities arising from a single transaction to
which the initial recognition exemption does not apply. For further information, see “44. (1) Changes to
significant accounting policies” under Item V of Part X.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
V Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains and Losses
Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-current assets
(inclusive of impairment allowance write-offs) -1,399,118.95
Government subsidies charged to current profit
or loss (exclusive of government subsidies
consistently given in the Company’s ordinary 27,400,992.05
course of business at fixed quotas or amounts
as per government policies or standards)
Capital occupation charges on non-financial
enterprises that are recognized in profit or loss 145,423.54
Gain or loss on fair-value changes on held-for-
trading financial assets and liabilities & income
from disposal of held-for-trading financial
assets and liabilities and available-for-sale -20,978,503.38
financial assets (exclusive of the effective
portion of hedges that arise in the Company’s
ordinary course of business)
Non-operating income and expense other than
the above -841,057.39
Less: Income tax effects -966,253.59
Non-controlling interests effects (net of
tax) 16,747,968.45
Total -11,453,978.99
Details of other items that meet the definition of exceptional gain/loss:
□ Applicable Not applicable
No such cases for the Reporting Period.
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item listed in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gain/Loss Items:
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
□ Applicable Not applicable
No such cases for the Reporting Period.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part III Management Discussion and Analysis
I Principal Activity of the Company in the Reporting Period
(I) Principal business
The Company has been committed to the R&D, production and sale of high-quality and energy-efficient
lighting products in order to provide integrated lighting solutions for customers. It is the controlling shareholder
of Nanning Liaowang Auto Lamp Co., Ltd. ("Nanning Liaowang") and Foshan NationStar Optoelectronics Co.,
Ltd. ("NationStar Optoelectronics") through acquisition programs starting from 2021. At present, the principal
business of the Company mainly includes the R&D, production and sale of general lighting products, electrical
products, automotive lighting products, and LED packaging products.
The general lighting business of the Company mainly covers LED light sources, LED luminaries, traditional
lighting products and comprehensive lighting solutions for home lighting, commercial lighting, industrial
lighting, municipal road lighting and landscape lighting. Over recent years, the Company has been exploring
new fields, including smart lighting, healthy lighting, marine lighting, and animal and plant lighting.
Electrical products mainly include switches, sockets, smart control panels, and smart door locks.
Based on its own automotive light sources and modules, the Company, relying on its majority-owned subsidiary
Nanning Liaowang, has expanded the automotive lighting business into the automotive light assembly sector,
involving basically all the lights that an automobile requires, such as headlights, rear light combos, fog lights,
backup lights, interior lights, and license plate lights. The main clients of Nanning Liaowang include SAIC-
GM-Wuling Automobile, Chongqing Changan Automobile, Bestune, SAIC Maxus Automotive, Dongfeng
Liuzhou Motor, Dongfeng Sokon, SERES and other whole-automobile manufacturers.
The Company conducts LED packaging business mainly by relying on its majority-owned subsidiary
NationStar Optoelectronics (stock code: 002449). The LED packaging business mainly involves components
(including components for display, lighting, and optoelectronics), modules (including display and backlight
modules as well as mini backlight modules), and LED epitaxial wafers and chips (including blue and green
display / digital indication / automotive high power flip-flop / Mini LED chip products), electronic components,
integrated circuit products and accessories (including MOS/Si/IC products), and third generation semiconductor
products (including silicon carbide discrete devices/power modules, gallium nitride series device products),
which are widely used for consumer electronics, home appliances, computers, communications, display and
lighting products, general lighting, automotive lighting, sterilization and purification, plant lighting, and other
fields.
(II) Industry development
Currently, the lighting industry is affected by the unfavourable factor of sluggish market demand, which brings
greater pressure to business expansion. The industry reshuffle was still in progress. Enterprises with advantages
in technology, fund and brand were gradually expanding their market shares, and high-quality resources were
being channeled to leading players. With the national policy of "Carbon Emission Peak and Carbon Neutrality",
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
major enterprises accelerated the development of high energy-saving and intelligent products with better light
quality. Concurrently, with the continuously upgraded technologies and policy encouragement, segmentations
such as intelligent lighting, healthy lighting, marine lighting, animal and plant lighting embrace fresh
development opportunities.
Automotive lights are core parts of an automobile, which are closely linked to the development of the
automotive industry. In accordance with the statistics released by the China Association of Automobile
Manufacturers (CAAM), the automobile output and sales in China for the first half of the year reached 13.248
million and 13.239 million, up by 9.3% and 9.8% year on year, respectively. Particularly, the new energy
vehicle industry achieved ongoing fast growth. Statistically, the output and sales of new energy vehicles for the
first half of the year reached 3.788 million and 3.747 million, up by 42.4% and 44.1% year on year, respectively.
Additionally, the market share of new energy vehicles reached 28.3%. The growth in automobile output and
sales boosted the demand in the automotive light market. As the R&D capabilities of the upstream, midstream
and downstream enterprises along the domestic automotive-light industrial chain have improved in the last few
years, Chinese auto parts enterprises have gradually been incorporated by vehicle companies into their supply
chain systems. This has contributed to the continuously accelerated replacement with domestic products and
given more opportunities to Chinese automotive light enterprises. At the same time, with the development of
automotive industry technologies, the increasingly electronic and intelligent automotive light-related
technologies have enabled automotive lights to carry more functions in addition to traditional lighting, which
has not only brought users more environmental, safe, recreational, and intelligent driving experience but also
injected new growth impetus into the industry.
With the resumption of commercial, cultural, tourist, sports and other activities, LED packaging demand is
gradually picking up. With the upgraded technologies, new application sub-markets will be constantly expanded.
Meanwhile, the emerging application fields, such as new Mini/Micro LED displays, plant lighting, intelligent
lighting, and the Internet of Things are going to enter a critical phase of rapid development, bringing new
development opportunities for the LED packaging industry. Additionally, with the rollout of relevant industry
policies and consumption upgrading, the transformation toward high energy-saving, highly reliable, and
intelligent LED semiconductors with better light quality will be expedited, which has set a stricter requirement
for enterprises' innovation capability. Top players in the industry will have more say.
(III) Business models
1. Procurement model
The Company's procurement department should ensure that the procured materials and products meet the
prescribed requirements and that procurement activities are under control. Besides, it should consider the needs
of each department and the reasonable stock quantity before carrying out any procurement, determine suppliers
by means of bidding, price negotiation, and price comparison, and follow up on the procurement orders. There
should be several backup suppliers of each principal raw material to ensure fair procurement price, timely
material supply, and high quality.
2. Production model
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
For routine products, the production plan for the next month is prepared based on the analysis of the sales of
each month and changes in the future market demand and the safe stock benchmark. Each production
department produces products as planned so as to control the stock and meet the sales demand. For customized
products, the make-to-order strategy is implemented to effectively control the stock quantity of raw materials,
reduce the funds that are tied up, and improve the Company's operational efficiency.
3. Sales model
In the general lighting business, for domestic sales, the Company adopts the model of agency distribution and
direct supply to engineering projects. The Company boasts hardware distribution, home, engineering, and e-
commerce & retail sale channels. For foreign sales, the Company adopts the models of OEM and independent
brands. The sale of products of independent brands abroad is carried out mainly via agencies.
In the automotive lighting business, in the factory-installed market, the model of supplying automotive light
products directly to OEMs is mainly adopted; in the aftermarket, products are mainly sold by agencies.
In the LED packaging business, the direct sale model is mainly adopted, in which products are sold through
direct communication with clients.
(IV) Main driving forces for growth
The Company upholds the overall idea of "stabilizing the fundamentals and expanding new businesses", and
continuously strengthens the innovation driver and refines the business portfolio. Additionally, it promotes the
change of the marketing model, intensifies management improvement, and vigorously explores market
segments. Since 2021, the Company has acquired Nanning Liaowang and NationStar Optoelectronics, which
has provided strong support for the Company to rapidly enter the OEM market and make the automobile vehicle
lamp business of the Company stronger and bigger, as well as to strengthen integration upstream and
downstream of the industrial chain of LED. Meanwhile, with the evolution of the industrial competition model,
consumers are getting increasingly concerned with product quality and brand. As a result, companies with weak
competitiveness will be gradually elbowed out of the market while large enterprises or enterprises with core
competitiveness will have more market opportunities. By virtue of its advantages in technology, brand, channel
and scale, the Company has continued to promote the technical upgrading of products, improve product quality,
beef up market expansion and optimize the business portfolio through sustained spending on R&D and
technical innovation. Meanwhile, it has gained an advantageous position in the process of enhancing market
concentration by increasing the level of production automation, effectively controlling purchase costs and
ramping up production efficiency.
II Core Competitiveness Analysis
During the Reporting Period, through continued accumulation, the Company’s core competitiveness has been
further enhanced, which is mainly reflected in the following aspects:
Channel advantage
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
The Company has been sticking to the market strategy of deeply cultivating and refining channels. Over years
of development and experience, the Company has been equipped with four major sales channels in domestic
market (hardware distribution, home, engineering, and e-commerce & retail sales channels), forming a
marketing network covering the whole country; in foreign market, the Company has made active steps to
develop international market business, sold products to more than 120 countries and regions in North America,
Europe, Southeast Asia, Africa and Oceania, and kept improving overseas sales channel. By virtue of its
powerful and comprehensive sales channels, the Company has enabled its products to enter market rapidly,
substantially enhancing its market development abilities and competitiveness. Nanning Liaowang is a major
manufacturer in the Chinese automotive light industry. It has accumulated stable whole-automobile
manufacturing clients and has been developing new clients. Its client entities are increasingly diverse.
NationStar Optoelectronics has an excellent client structure. It has established a long-term cooperative
relationship with industry-leading display manufacturers and internationally famous home appliance enterprises,
has successfully showcased its products in many large events and high-end venues at home and abroad, and is
widely recognized by end clients and the market.
Brand advantage
The Company has accumulated 65 years' experience in the lighting industry and enjoyed continuously
increasing influence and brand value for its "FSL". For 18 consecutive years, the Company has been included in
the list of "China's 500 Most Valuable Brands". In 2023, the value of FSL brand reached RMB31.219 billion. In
recent years, with the enhancement of its development positioning, product design and user experience, the
Company has initiated the strategy of brand upgrading and carried out promotion by centering around the new
"Professional, Healthy, Fashionable and Intelligent". In addition, it has accelerated brand building through high-
end mainstream media platform, Internet emerging media and offline terminal advertising respectively,
maximized the brand and product communication effect, formed a comprehensive and diversified publicity
position, and driven the transition of “FSL” from an industrial brand to a popular brand to maintain the brand
vitality and competitiveness. The brand "FSL" has become one of the most influential and popular industrial
brands in China, and the powerful brand influence has played a key role in driving the sustained growth of the
Company’s sales. Nanning Liaowang strictly abides by the national industry standards when producing
automotive lights of the "Liaowang" brand. It has been hailed as a high-quality supplier of car manufacturers for
quite a few times. NationStar Optoelectronics has been awarded honors such as "National High-tech Enterprise
Certification", "Brand Power", "Top 10 LED Packaging Brands", “GG Golden Globe Award”, and “Company
of the Year 2022”, which constantly enhances its image of professionalism and brand advantages.
R&D technical advantage
The Company values the R&D of new products and the development of innovation and R&D teams, and has
established a scientific and independent science and technology innovation system, and a team of well-
structured, collaborative and efficient talents. It has further increased spending on technology and independent
product innovation and introduced first-class R&D equipment and facilities from home and abroad to provide
high-quality conditions for scientific and technological innovation. The Company is a national high-tech
company, and its testing center has the CNAS-approved qualification. In addition, the Company has built
innovative platforms such as "Guangdong Engineering Technology Development Center", "Guangdong
Industrial Design Center", "Guangdong Enterprise Technology Center", and "Lighting Research Institute".
Besides, the Company has won the title of "National IP Demonstration Enterprise" and established a
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
"Postdoctoral Research Station (Substation)" and a "Guangdong Science and Technology Expert Workstation"
to explore and intensify efforts in the cutting-edge technology of LEDs, and address key issues and common
technology issues in the industry. It has formed technical barriers with proprietary intellectual property rights in
lighting, spectroscopic, electrical, IoT, AI and many other fields. Cumulatively, the company and its holding
subsidiaries have been granted more than 1,900 valid patents. Also, they have led or participated in the
formulation or revision of 160 standards at all levels, which have been issued. The Company actively integrates
internal and external resources and collaborates with Tsinghua University, Fudan University, Sun Yat-sen
University, South China University of Technology, Institute of Deep-Sea Science and Engineering of CAS,
Dalian Ocean University and other scientific research institutes to establish in-depth industrial and research
cooperation, so as to promote key technological breakthroughs and transformation of scientific and
technological achievements. Meanwhile, the Company has formed a smooth R&D talent cultivation channel to
provide a strong guarantee for the Company to maintain technological leadership and continuous product
innovation. Nanning Liaowang boasts a provincial enterprise technology center, a provincial R&D center, and a
Guangxi automotive lighting parts engineering technology research center; and established the Automotive
Lighting Research Institute. In recent years, Nanning Liaowang has increased investment in R&D, accelerated
investment in various lens modules and interactive signal lamp technologies, and continuously enhanced its
R&D strength. NationStar Optoelectronics has created 16 R&D platforms, including the Postdoctoral Research
Station, and the National- and local-joint Engineering Laboratory for Semiconductor Lighting Materials and
Components. It has undertaken near 30 national research projects such as the national "863" program and the
key national R&D program, in addition to more than 100 provincial and ministerial research projects. Besides,
it has won honors such as "National Intellectual Property Demonstration Enterprise", “Gold Award at the 24th
China Patent Awards”, "China Award for Excellent Patents", "Guangdong Science and Technology Progress
Award (first/second prize)", as well as Advanced Technology Golden Globe Award "2022 Company of the
Year” and “2022 Innovative Technology". Moreover, it has constantly made breakthroughs and surmounted
technological challenges in emerging areas such as Mini/Micro LED, the third generation of semiconductor,
smart wear, automotive components, and new optoelectronic components.
Scale advantage
As one of the enterprises to first step into the industry of producing and selling lighting products, the Company
forms a capability of mass manufacturing by years of experience accumulation. After years of continuous
investment, the Company has greatly improved its production automation level. The large-scale and centralized
production brings obvious economic benefits to the Company, which not only shows in manufacture cost of
products, but also shows in aspects such as raw material procurement and price negotiation. With
manufacturing bases in Nanning, Liuzhou, Chongqing, Qingdao, and Indonesia, Nanning Liaowang has an
annual production capacity of more than five million sets of automotive lights. NationStar Optoelectronics
began engaging in LED packaging in 1976. It is included in the first batch of enterprises that have produced
LED products and the first Chinese enterprise to go public with LED packaging as its principal business.
Besides, it is one of the largest LED manufacturers in China.
Advantage of a vertical and integrated LED industrial chain
By controlling NationStar Optoelectronics, whose business covers the entire LED industry chain, including
upstream LED chip manufacturing, midstream LED packaging, and downstream LED application products, the
Company has optimized the industry chain and enhanced its competitiveness and visibility in the industry.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
III Analysis of Principal Operations
Overview
In the first half of 2023, aiming at the annual objectives, the Company made every effort to stabilise growth and
promote development by focusing on the four drivers of "internal management, market expansion, innovation-
driven growth, and M&A support". As a result, the Company achieved a steady, high quality year-on-year
increase in both operating revenue and profit. During the Reporting Period, the Company recorded operating
revenue of RMB 4566.0627 million, up 2.99% year on year, and a net profit attributable to its shareholders of
RMB 168.9352 million, increasing by 3.31% year on year.
During the Reporting Period, the Company mainly focused on the following tasks:
1. Spared no effort to expand growth
The Company prioritised the expansion of business growth as the main theme for the whole year. To this end,
the leadership members took the lead in surveying the market, visiting key customers, and delving into market
demands in order to expand business orders. Also, it intensified efforts to complete large customer projects,
secured several big project orders, and undertook 20 automotive light projects. Based on its years of
technological accumulation in lighting, especially intelligent lighting, the Company sped up the segmentation
layout, with a focus on deep-sea lighting, fish-collecting lighting, aquaculture lighting, and coastal lighting. It
established 27 sales outlets and six experiencing zones (halls) in eight coastal provinces in China and the
Southeast Asian markets and laid out more than 40 aquaculture demonstration bases. With intelligent home as
the focus, the Company constantly expanded into intelligent lampposts, intelligent buildings, and other
intelligent application fields, doing so to continue to provide customers with diversified products and services
and expand markets. In terms of overseas business, the Company constantly consolidated its cooperation with
big customers by improving its service capabilities in R&D, manufacturing, and marketing. Meanwhile, it
actively developed new customers, securing a stable increase in the proportion of sales of overseas independent
brands.
2. Took a variety of measures to minimise costs
Adhering to the "tighten the belt" philosophy, the Company launched the cost reduction campaign to dig for
more cost reduction space from multiple perspectives. Specifically, it partnered with professional institutions,
enhanced the research and judgment of the trends of commodity prices, and took measures such as price inquiry
and comparison, price negotiation, new material replacement, and supplier optimisation to reduce the
procurement cost. The "robot assembly line" strategy was promoted on an ongoing basis by transforming and
upgrading assembly lines with automation equipment. Additionally, measures such as automated production,
process and procedure optimisation, and implementing standard costing were employed to reduce the
manufacturing cost.
3. Improved management for higher quality and efficiency
Based on the "three refinements in management" plan with "five optimisations, six decreases, and seven
reductions" at the core carried out last year, the Company further refined tasks and measures to secure in-depth
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
and solid advances. In terms of organisational streamlining, the Company further optimised the position set-up,
simplified the approval procedures, and intensified the authority delegation. As a result, the productivity per
capita in the first half of the year was significantly boosted. In terms of management refinement, efforts were
redoubled at comprehensive budget management and expenditure control through stringent "standard costing"
and cost control. Carry out a series of special actions such as improving quality, "accounts receivable and
inventory" management and control, and achieved certain effects. In terms of lean operations, the Company
optimised the R&D system to promote integrated innovation, focused on the R&D and production of luminaries,
intelligent products, and products in the new segmentation, optimised the product mix, and increased the
proportion of products with high added value. Doing so helped the Company constantly boost its core
competitiveness.
4. Strengthened innovation unswervingly
In terms of product iteration and upgrading, to develop differentiated and functional products and the "light
plus" overall solution, the Company developed 367 new products in the first half of the year. Additionally, it
rolled out the "photocatalysis" second-generation healthy lighting product, optimised and upgraded eight
intelligent systems, including the intelligent home, and made arrangements for cutting-edge technologies,
including deep-sea laser illumination, doing so to sharpen up its competitive edge. In terms of the packaging
field, the Company targeted several emerging areas, including Mini/Micro LED, the third-generation
semiconductor, and automotive components, thereby cultivating new development drivers. In terms of
technology R&D, the Company applied for 182 new patents, including 62 patents for invention, and steered or
participated in the formulation of 15 international, national, industry, and group standards. Moreover, for
technologies with the Company's participation, the ultraviolet core technology won the Guangdong Science and
Technology Progress Award (second prize); the deep-sea laser illumination technology won the Award of
Excellence of the 1st Guangdong-Hong Kong-Macao Greater Bay Area Postdoctoral Innovation and
Entrepreneurship Competition; the full-colour light-emitting device and display module won the China Patent
Award (Gold).
Year-on-year changes in key financial data:
Unit: RMB
H1 2022/31 December
H1 2023/30 June 2023 Change (%) Main reason for change
2022
Operating revenue 4,566,062,729.02 4,433,331,393.42 2.99%
Cost of sales 3,733,474,828.88 3,654,061,368.03 2.17%
Selling expense 131,921,130.00 111,269,248.57 18.56%
Administrative expense 200,946,085.42 186,307,739.44 7.86%
Finance costs -30,162,622.41 -24,237,724.21 -24.44%
Income tax expense 31,304,364.49 41,412,077.91 -24.41%
R&D expense 227,718,701.74 224,438,932.77 1.46%
The Company as the
Net cash generated
parent enhanced
from/used in operating 387,869,057.20 177,102,491.01 119.01%
activities inventory control in the
current period.
The same period of last
Net cash generated year saw more cash
from/used in investing -4,465,936.70 121,495,601.82 -103.68% from the recovery of
activities bank’s wealth
management products.
16
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
The same period of last
year saw a higher
payment for the
Net cash generated
acquisition of equity
from/used in financing -359,583,672.75 -823,625,807.19 56.34%
activities interests in subsidiary
NationStar
Optoelectronics under
common control.
Increased net cash
Net increase in cash generated from
and cash equivalents 28,750,024.39 -504,782,096.83 105.70% financing activities in
the current period
Recovery of wealth
Held-for-trading management products
81,882,834.67 261,541,896.45 -68.69% upon maturity in the
financial assets
current period
Reclassification of
additional large-
amount deposit
Other current assets 173,015,911.64 79,438,576.89 117.80%
certificates to other
current assets in the
current period
Changes in the fair
value of forward forex
Held-for-trading
23,741,475.00 4,679,000.00 407.40% settlement contracts as
financial liabilities a result of exchange
rate fluctuations
Mainly due to the
transfer of some
current dividend
Other receivables 150,403,234.75 32,902,865.98 357.11% payment to China
Securities Depository
and Clearing
Corporation Limited.
Decrease in advances
Advances from
196,200.00 2,532,442.44 -92.25% of rentals in the current
customers
period
Mainly due to the
declaration of cash
dividends in the current
Other payables 645,736,648.53 440,230,081.05 46.68% period and withdrawal
the amount of profit
distribution for 2022.
Mainly due to the
declaration of cash
dividends in the current
Dividends payable 134,915,110.77 15,646.07 862193.92%
period and withdrawal
the amount of profit
distribution for 2022.
Increased undue notes
receivable that were
Other current liabilities 136,138,329.46 100,192,681.00 35.88%
endorsed in the current
period
Repayment of some
Long-term borrowings 493,362,857.84 747,931,023.71 -34.04% long-term borrowings
in the current period
Decreased liabilities of
Other non-current subsidiary to be
206,307.09 308,780.61 -33.19% liquidated and de-
liabilities
registered
Increased provisions
Taxes and levies 37,443,299.13 25,534,415.81 46.64%
for value-added
17
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
surtaxes and property
tax in the current
period
Increased interest on
Interest expense 14,255,244.44 7,068,335.84 101.68% borrowings in the
current period
Increased interest on
Interest income 24,520,047.73 13,000,154.06 88.61% deposits in the current
period
Decreased continuing
Other income 27,389,992.05 40,797,290.95 -32.86% government grants in
the current period
Increased net profits of
Share of profit or loss associates attributable
of joint ventures and 1,186,031.53 650,457.40 82.34% to owners of the
associates Company as the parent
in the current period
Changes in the fair
value of forward forex
Gain on changes in fair
-22,153,522.56 -10,766,595.97 -105.76% settlement contracts as
value a result of exchange
rate fluctuations
Mainly due to the
influence of the
increase in the balance
Credit impairment loss
-18,947,421.03 -10,246,248.56 -84.92% of accounts receivable
(“-” for loss)
for the current period
on the increase in bad
debt provision.
Increased income from
the disposal of fixed
Asset disposal income 110,475.52 82,362.19 34.13%
assets in the current
period
In the same period of
last year, subsidiary
NationStar
Optoelectronics
Non-operating income 2,440,914.48 8,990,018.61 -72.85%
transferred payables
that it did not need to
pay to non-operating
income.
The same period of last
year saw a greater loss
Non-operating expense 4,780,570.32 7,994,166.62 -40.20%
on the disposal of fixed
assets.
Decreased amount of
changes in the fair
Other comprehensive value of investments in
-49,800,869.38 -128,025,149.83 61.10% other equity
income, net of tax
instruments in the
current period
Other comprehensive Decreased amount of
changes in the fair
income, net of tax
value of investments in
attributable to owners -50,939,650.35 -128,036,703.73 60.21% other equity
of the Company as the instruments in the
parent current period
Changes in the fair Decreased amount of
changes in the fair
value of investments in -52,237,967.85 -128,132,332.34 59.23% value of investments in
other equity other equity
18
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
instruments instruments in the
current period
Differences arising
from the translation of Fluctuations of the
foreign currency- 1,298,317.50 95,628.61 1257.67% RMB against foreign
denominated financial currencies
statements
Other comprehensive
Fluctuations of the
income, net of tax
1,138,780.97 11,553.90 9756.25% RMB against foreign
attributable to non- currencies
controlling interests
Decreased amount of
changes in the fair
Total comprehensive value of investments in
175,304,418.91 115,521,481.07 51.75% other equity
income
instruments in the
current period
Decreased amount of
Total comprehensive changes in the fair
income attributable to value of investments in
117,995,582.19 35,491,316.05 232.46% other equity
owners of the
Company as the parent instruments in the
current period
Material changes to the profit structure or sources of the Company in the Reporting Period:
□ApplicableNot applicable
No such changes in the Reporting Period.
Breakdown of operating revenue:
Unit: RMB
H1 2023 H1 2022
As % of total As % of total
Change (%)
Operating revenue operating Operating revenue operating revenue
revenue (%) (%)
Total 4,566,062,729.02 100% 4,433,331,393.42 100% 2.99%
By operating division
Lighting products
and luminaries 2,710,661,113.22 59.37% 2,698,671,734.04 60.87% 0.44%
Electronic
component 1,360,444,139.66 29.79% 1,316,554,701.04 29.70% 3.33%
manufacturing
Export trade and
494,957,476.14 10.84% 418,104,958.34 9.43% 18.38%
other
By product category
General lighting
products 1,792,551,295.05 39.26% 1,713,682,850.48 38.65% 4.60%
LED packaging
and components 1,253,523,386.12 27.45% 1,320,355,785.57 29.78% -5.06%
Auto lamps 806,133,465.65 17.65% 788,150,928.31 17.78% 2.28%
Trade and other 713,854,582.20 15.63% 611,141,829.06 13.79% 16.81%
By operating segment
Domestic 3,478,275,919.17 76.18% 3,315,915,661.48 74.80% 4.90%
Overseas 1,087,786,809.85 23.82% 1,117,415,731.94 25.20% -2.65%
Operating Division, Product Category or Operating Segment Contributing over 10% of Operating Revenue or
Operating Profit:
Applicable □ Not applicable
19
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Unit: RMB
YoY change YoY change YoY change in
Gross profit
Operating revenue Cost of sales in operating in cost of gross profit
margin
revenue (%) sales (%) margin (%)
By operating division
Lighting
products and 2,710,661,113.22 2,126,704,067.38 21.54% 0.44% -2.02% 1.97%
luminaries
Electronic
component 1,360,444,139.66 1,149,050,783.53 15.54% 3.33% 3.47% -0.11%
manufacturing
Export trade
494,957,476.14 457,719,977.97 7.52% 18.38% 22.72% -3.27%
and other
By product category
General
lighting 1,792,551,295.05 1,375,368,424.17 23.27% 4.60% 0.32% 3.27%
products
LED packaging
and 1,253,523,386.12 1,015,930,695.77 18.95% -5.06% -6.80% 1.51%
components
Auto lamps 806,133,465.65 668,454,235.14 17.08% 2.28% 2.14% 0.11%
Trade and other 713,854,582.20 673,721,473.80 5.62% 16.81% 25.08% -6.24%
By operating segment
Domestic 3,478,275,919.17 2,796,411,970.75 19.60% 4.90% 4.69% 0.16%
Overseas 1,087,786,809.85 937,062,858.13 13.86% -2.65% -4.66% 1.82%
Data of principal operations of the latest period adjusted according to the changed statistical caliber in the
Reporting Period:
□ Applicable Not applicable
IV Analysis of Non-Principal Operations
Applicable □ Not applicable
Unit: RMB
As % of profit before
Amount Source/Reason Recurrent or not
tax
Dividend income from
other equity
investments held
Return on investment 22,449,570.63 8.76% during the period, and
Not
gains on forward forex
settlement contracts
Gain/loss on changes
Gain/loss on changes
in fair value -22,153,522.56 -8.64% in fair value of Not
financial instruments
Inventory valuation
Asset impairments -16,390,888.73 -6.39% allowances
Not
Receipt of
compensation, sale of
retired equipment, and
Non-operating income 2,440,914.48 0.95% carryforwards of
Not
payables that require
no payment
Loss on retirement of
Non-operating expense 4,780,570.32 1.86% non-current assets
Not
Receipt of continuing
Other income 27,389,992.05 10.68% government grants
Not
Credit impairment loss -18,947,421.03 -7.39% Allowances for Not
20
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
doubtful notes
receivable, accounts
receivable and other
receivables
Gains or losses on the
Asset disposal income 110,475.52 0.04% disposal of non-current Not
assets
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
30 June 2023 31 December 2022 Reason for
Change in
As % of total As % of total significant
Amount Amount percentage (%)
assets assets change
Monetary 2,518,177,71 2,484,508,90
assets 16.65% 16.25% 0.40%
4.99 7.43
Increased sales
Accounts 2,347,099,72 1,920,770,94
15.52% 12.56% 2.96% in the current
receivable 4.92 1.76
period
Contract assets 5,153,358.98 0.03% 5,466,875.07 0.04% -0.01%
The Company
as the parent
1,646,526,19 2,031,637,40 enhanced
Inventory 10.89% 13.29% -2.40%
5.36 1.87 inventory
control in the
current period.
Investment 43,366,716.4 44,611,882.4
0.29% 0.29% 0.00%
property 9 4
Long-term
183,117,824. 181,931,792.
equity 1.21% 1.19% 0.02%
investments 19 66
3,365,628,09 3,508,094,28
Fixed assets 22.26% 22.95% -0.69%
2.29 2.41
Construction in 1,377,403,87 1,282,780,33
9.11% 8.39% 0.72%
progress 3.06 5.14
Right-of-use 13,047,727.7
assets 9,832,756.11 0.07% 0.09% -0.02%
3
Short-term 190,926,526. 157,715,359.
1.26% 1.03% 0.23%
borrowings 02 35
Contract 131,700,995. 125,143,161.
0.87% 0.82% 0.05%
liabilities 68 61
Repayment of
some long-term
Long-term 493,362,857. 747,931,023.
3.26% 4.89% -1.63% borrowings in
borrowings 84 71
the current
period
Lease liabilities 6,477,932.48 0.04% 7,055,542.18 0.05% -0.01%
Notes 811,254,925. 821,537,774.
5.37% 5.37% 0.00%
receivable 34 07
Receivables 444,845,917. 569,868,831.
2.94% 3.73% -0.79%
financing 62 79
Other current 136,138,329. 100,192,681.
0.90% 0.66% 0.24%
liabilities 46 00
Other 150,403,234. 32,902,865.9
0.99% 0.22% 0.77%
receivables 75 8
21
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
2. Major Assets Overseas
□ Applicable Not applicable
3. Assets and Liabilities at Fair Value
Applicable □ Not applicable
Unit: RMB
Gain/loss
on fair- Cumulative Impairment
Purchased
value fair-value allowance Sold in the
Beginning in the Other Ending
Item changes in changes for the Reporting
amount Reporting changes amount
the charged to Reporting Period
Period
Reporting equity Period
Period
Financial
assets
1. Held-
for-trading
financial
assets
60,004,84 978,980.8 110,000,0 90,000,00 80,983,83
(exclusive
9.31 2 00.00 0.00 0.13
of
derivative
financial
assets)
2.
Derivative 972,032.9 - 899,004.5
financial 2 73,028.38 4
assets
3.
Investment -
864,191,3 525,202,9 981,292.1 801,753,6
s in other 61,456,43
equity 46.40 60.76 2 21.52
2.76
instruments
4.
569,868,8 125,022,9 444,845,9
Receivable
31.79 14.17 17.62
s financing
Subtotal of -
1,495,037 525,202,9 110,000,0 216,004,2 1,328,482
financial 60,550,48
assets ,060.42 60.76 00.00 06.29 ,373.81
0.32
-
Total of the 1,495,037 525,202,9 110,000,0 216,004,2 1,328,482
above 60,550,48
,060.42 60.76 00.00 06.29 ,373.81
0.32
- - -
Financial
liabilities 4,679,000 19,062,47 23,741,47
.00 5.00 5.00
Details about other changes:
N/A
Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes No
22
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
4. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposits for notes, performance bonds, payments by buyers for
Monetary assets 535,698,818.93
pre-sale of properties
In pledge for notes pool and notes receivable that are endorsed and
Notes receivable 729,042,157.57
undue
Fixed assets 143,870,553.97 As mortgage and guarantee for related party, see XIV (III)
Intangible assets 10,808,229.15 “Guarantees” in Part X
Total 1,419,419,759.62 --
VI Investments Made
1. Total Investment Amount
Applicable □ Not applicable
Investment amount in the Reporting Investment amount in the same period of
Change (%)
Period (RMB) last year (RMB)
30,578,843.07 1,175,378,372.86 -97.40%
2. Major Equity Investments Made in the Reporting Period
□ Applicable Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□ Applicable Not applicable
4. Financial Investments
(1) Securities Investments
Applicable □ Not applicable
Unit: RMB
Gain/ Accu
Loss mulat
on ed Purch
Meas Begin Sold Gain/l Endin
Initial fair- fair- ased
Securi Securi Securi ureme ning in oss in g Accou Fundi
invest value value in
ty ty ty nt carryi Repor Repor carryi nting ng
ment chang chang Repor
type code name metho ng ting ting ng title source
cost es in es ting
d value Period Period value
Repor charg Period
ting ed to
Period equity
Invest
Dome
- ments
sticall Gotio 83,01 Fair 493,9 390,2 473,2 in Self-
y/Ove 0020 n value 20,73
4,485. 67,19 20,82 35,30 other funde
rseas 74 High- metho 1,887.
13 4.53 2.29 7.42 equity d
listed tech d 11 instru
stock
ments
23
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Invest
Dome
- ments
sticall Fair
Xiam 152,9 328,6 134,9 16,63 287,9 in Self-
y/Ove 6011 value 40,72
en 57,60 64,29 82,13 3,969. 39,74 other funde
rseas 87 metho 4,545.
Bank 6.83 0.95 8.47 35 5.30 equity d
listed d 65 instru
stock
ments
Fosha
n
Invest
Dome branc
ments
sticall h of Fair
in Self-
y/Ove Guan 500,0 value 500,0 500,0
N/A other funde
rseas gdong 00.00 metho 00.00 00.00 equity d
listed Devel d
instru
stock opme
ments
nt
Bank
Held-
Dome
for-
sticall Fair
Lifan 1,176, - tradin
y/Ove 6017 value 972,0 899,0
Techn 008.7 73,02 g Other
rseas 77 metho 32.92 04.54
ology 4 8.38 financ
listed d
ial
stock
assets
-
237,6 824,1 525,2 16,63 762,5
61,52
Total 48,10 -- 03,51 02,96 0.00 0.00 3,969. 74,05 -- --
9,461.
0.70 8.40 0.76 35 7.26
14
(2) Investments in Derivative Financial Instruments
Applicable □ Not applicable
1) Derivative Investments for Hedging Purposes in the Reporting Period
Applicable □ Not applicable
Unit: USD’0,000
Ending
Gain/Loss on Accumulated
Ending investment
Initial fair-value fair-value Purchased in Sold in the
Type of amount as %
investment changes in changes the Reporting Reporting investment
derivative of the
amount the Reporting recorded in Period Period amount Company’s
Period equity
ending equity
General
1,000 0.00 0 0 1,000 0 0.00%
forward
General
1,000 -49.23 0 0 0 1,000 0.84%
forward
General
1,000 -49.23 0 0 0 1,000 0.84%
forward
Forex option 250 -12.32 0 250 0 250 0.21%
Forex option 300 -15.28 0 300 0 300 0.25%
Forex option 375 -19.64 0 375 0 375 0.31%
Forex option 375 -20.15 0 375 0 375 0.31%
Forex option 375 -20.63 0 375 0 375 0.31%
Forex option 375 -21.10 0 375 0 375 0.31%
Forex option 250 -12.63 0 250 0 250 0.21%
Forex option 300 -15.66 0 300 0 300 0.25%
Forex option 375 -20.06 0 375 0 375 0.31%
24
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Forex option 375 -20.57 0 375 0 375 0.31%
Forex option 375 -21.08 0 375 0 375 0.31%
Forex option 375 -21.56 0 375 0 375 0.31%
Total 7,100 -319.14 0 4,100 1,000 6,100 5.08%
Major
changes in
accounting
policies and
specific
accounting
principles
adopted for No
hedges in the
Reporting
Period
compared to
the last
reporting
period
Actual
gain/loss in
The actual gain stood at 2.154 million in the Reporting Period.
the Reporting
Period
The Company carries out foreign exchange hedging business appropriately according to specific situations, which
Effectiveness
can effectively reduce the foreign exchange market risk, lock in industrial profit of export business and avoid
of hedging
exchange rate risk.
Funding
Self-funded
source
Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of economic
changes at home and abroad, the foreign exchange hedging business faces market risk, to some extent. 2. Foreign
currency risk: When the foreign currency trend greatly deviates from the Company's judgment of such trend, the
Analysis of expenses after locking the exchange rate might exceed that before doing so, resulting in losses to the Company. 3.
risks and Internal control risk: Imperfect internal control policies probably triggers risks to the foreign exchange hedging
control business, as it is highly professional and complex. 4. Trading default risk: If the counterparty of foreign exchange
measures hedging defaults by failing to pay hedging earnings to the Company as agreed, the actual exchange loss of the
associated Company will not be offset. 5. Collection forecast risk: Marketing departments forecast collection based on the
with actual and expected orders of customers. In practice, customers may adjust such orders. As a result, the
derivative Company's collection forecast will not be accurate, leading to delivery risks.
investments Adopted risk control measures: 1. The Company will strengthen the research and analysis of the exchange rate.
held in When the exchange rate fluctuates greatly, it will adjust the business strategy in a timely manner to stabilize the
Reporting export business and avoid exchange losses to the utmost. 2. The Company has established the Management
Period System for Foreign Exchange Hedging and majority-owned subsidiary NationStar Optoelectronics has also
(including formulated the Management System for Forward Forex Settlement and Sale and Forex Option Transactions,
but not clearly defining the operating principles, approval authority, responsible department and responsible person,
limited to internal operation procedures, information isolation measures, internal risk reporting system, risk management
market risk, procedures, and information disclosure related to the foreign exchange hedging business. 3. In order to prevent
liquidity risk, any delay in the foreign exchange hedging, the Company will strengthen the management of accounts receivable,
credit risk, actively collect receivables, and avoid any overdue receivables. In the meantime, the Company plans to increase
operational the export purchases and purchase corresponding credit insurance so as to reduce the risk of default and customer
risk, legal default. 4. The Company’s foreign exchange hedges must be strictly based on the Company’s foreign exchange
risk, etc.) earnings prediction. Besides, the Company shall strictly control the scale of its foreign exchange hedges, and
manage all risks that the Company may face within a controllable range. 5. The internal audit department of the
Company shall check the actual signing and execution situation of all trading contracts on a regular or irregular
basis.
Changes in
market prices
The Company carries out recognition and measurement in accordance with the Accounting Standard for Business
or fair value
Enterprises No. 22—Recognition and Measurement of Financial Instruments, the Accounting Standard for
of derivative
Business Enterprises No. 24—Hedges, the Accounting Standard for Business Enterprises No. 37—Presentation of
investments
Financial Instrument and other applicable regulations. Fair value is arrived at based on the price provided by
in Reporting
pricing service providers such as banks or the price obtained. Fair value measurement and recognition are carried
Period (fair
out on a monthly basis. Changes in the fair value of forward exchange settlement contracts entered into by the
value
Company are mainly attributable to difference arising from exchange rate fluctuations.
analysis
should
25
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
include
measurement
method and
related
assumptions
and
parameters)
Legal matters
involved (if N/A
applicable)
Disclosure
date of
announceme
nt on board’s
13 August 2022
approving
derivative
investment
(if any)
The independent directors are of the opinion that: The foreign exchange hedging transactions conducted by the
Opinion of
Company are based on normal production and operation, are supported by specific businesses, aim to avoid and
independent
prevent foreign exchange risks associated with export businesses, do not involve speculative operations and are
directors on
consistent with the needs of the Company's operation and development. The Company has established relevant
derivative
business management policies and risk control and prevention measures. The risk is controllable. The proposal
investments
was passed following a lawful, valid decision-making procedure, has no negative impact on the Company's
and risk
normal operation and business development and does not undermine the interest of the Company and its
control
shareholders. Therefore, the Company's conducting foreign exchange hedging transactions is approved.
2) Derivative Investments for Speculative Purposes in the Reporting Period
□ Applicable Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
□ Applicable Not applicable
No such cases in the Reporting Period.
VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable Not applicable
VIII Major Subsidiaries
Applicable □ Not applicable
26
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the
Company’s net profit:
Unit: RMB
Relationshi
Principal Registered Operating Operating
Name p with the Total assets Net assets Net profit
activity capital revenue profit
Company
Foshan
NationStar
Manufactur 618,477 6,310,970 3,770,239 1,758,744 58,065,52 53,804,45
Optoelectro Subsidiary
ing ,169.00 ,021.75 ,883.45 ,095.83 1.34 2.96
nics Co.,
Ltd.
Nanning
Liaowang Manufactur 35,055, 2,237,010 900,208,3 720,209,3 26,841,13 22,341,74
Subsidiary
Auto Lamp ing 700.00 ,389.09 04.91 06.91 1.01 9.52
Co., Ltd.
FSL Zhida
Electric Manufactur 38,150, 205,091,1 78,302,38 138,646,7 10,426,88 8,695,560
Subsidiary
Technology ing 000.00 92.08 1.89 88.74 3.92 .09
Co., Ltd.
FSL
Chanchang
Manufactur 72,782, 828,103,9 312,506,0 649,913,1 99,750,15 83,226,37
Optoelectro Subsidiary
ing 944.00 42.50 62.67 58.96 1.28 1.37
nics Co.,
Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable Not applicable
Information about major majority- and minority-owned subsidiaries:
—In a major asset restructuring in February 2022, the Company acquired a 21.32% interest in Foshan NationStar Optoelectronics
Co., Ltd. (NationStar) from Rising Holdings and its acting-in-concert party. Upon the conclusion of the transaction, the Company
eventually holds a 21.48% interest in NationStar, and NationStar has become a majority-owned subsidiary of the Company. The
Company has included NationStar in its consolidated financial statements since Q1 2022.
—Nanning Liaowang Auto Lamp Co., Ltd. signed an equity agreement with its existing shareholders in July 2021,
and acquired Nanning Liaowang through equity acquisition and capital increase and share expansion. Upon the
conclusion of the transaction, the Company eventually holds a 53.79% interest in Nanning Liaowang, and
Nanning Liaowang has become a majority-owned subsidiary of the Company. The Company has included
Nanning Liaowang in its consolidated financial statements from the date when the Company obtained actual
control of it.
—FSL Zhida Electric Technology Co., Ltd. (FSL Zhida) was incorporated by the Company, Foshan Zhibida
Enterprise Management Co., Ltd. and Dongguan Baida Semiconductor Material Co., Ltd. on a joint investment
basis. FSL Zhida obtained its business license on 21 October 2016. FSL Zhida changed its registered capital on
the basis of paid-in-capital on 16 January 2023. Upon the completion of the change, the Company holds a stake of
27
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
66.84% in it. The Company has included FSL Zhida in its consolidated financial statements since the date of FSL
Zhida’s incorporation.
—FSL Chanchang Optoelectronics Co., Ltd. (renamed on 19 June 2018 from “Foshan Chanchang Electric
Appliances (Gaoming) Co., Ltd.”), which is a Sino-foreign joint venture invested and established by the Company
and Prosperity Lamps and Components Ltd, had obtained license for business corporation on 23 August 2005
through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District, Foshan with
document “MWJMY Zi [2005] No. 79”. The Company holds 70% equities of the said company; therefore the said
subsidiary was included into the scope of the consolidated financial statements since the date of foundation. On 23
August 2016, the Company and Prosperity Lamps and Components Ltd signed the equity transfer agreement. The
Company purchased 30% equity of Foshan Chanchang Electric Appliances (Gaoming) Co., Ltd. held by
Prosperity Lamps and Components Ltd. After the purchasing, the Company held 100% equity of FSL Chanchang
Optoelectronics Co., Ltd.
IX Structured Bodies Controlled by the Company
□ Applicable Not applicable
X Risks Facing the Company and Countermeasures
1. Risks of macro economic fluctuations and fiercer market competition
At present, economic uncertainties remain at home and abroad. If economic growth continues to slow down, it
may have an adverse impact on the development of the industry. Meanwhile, the lighting industry is a fully
competitive industry. And as market demand slows down in growth, the Company could be facing fiercer
competition.
Countermeasures: The Company will adhere to the set strategies, spend greater effort in developing new products,
constantly refine the business portfolio, and actively explore segment markets such as intelligent lighting, healthy
lighting, ocean lighting, animal and plant lighting. It will also accelerate the introduction of new manufacturing
processes, technologies and products to the market for new competitive edges. At the same time, by optimizing
marketing network and strengthening the business focus and expansion on domestic and foreign major customers,
the Company will improve service quality, strengthen internal management, and increase core competitive
capacity constantly.
2. Risk of raw material price fluctuations
28
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
The main raw materials of the Company and its subsidiaries include chips, lamp beads, electronic components,
aluminum substrates, plastic parts, metal materials, etc., and the price fluctuations of main raw materials will have
an impact on the Company's production costs. If the price of raw materials continues to rise in the future, it may
adversely affect the Company's production and operation.
Countermeasures: The Company will pay attention to market dynamics, collect information, analyze and pre-
judge supply of main raw materials and price trends, so as to make excellent sourcing plans. By enhancing
negotiation, refining suppliers, perfecting supply chain management, and promoting alternative materials, the
Company is able to decrease procurement costs.
3. Risk of exchange rate fluctuations
The Company has significant overseas sales, which are mainly settled in USD. If RMB experiences significant
appreciation, the price competitiveness of overseas sales could be undermined and exchange losses may increase,
which will produce adverse impacts on the Company’s net profit.
Countermeasures: By keeping abreast of and analyzing exchange rate policies and fluctuation trend of settlement
currencies in time, intensifying settlement currency management, ,and carrying out foreign exchange hedging
business when the timing is right, the Company can relatively lock in exchange rates and minimize the risks
brought by exchange rate fluctuations.
4. Risk associated with the recoverability of accounts receivable
Receivables grow along with the Company's business. Customers who fail to repay loans timely or become
insolvent, due to changes in macroeconomic trends, market environments, and their business, will place the
Company at the risk of non-performing receivables.
Countermeasures: In order to reduce the receivable collection risk, the Company can constantly optimize the
receivable risk management system, regularly assess customers' credit profiles, and enhance customer risk
assessment. Meanwhile, it can reinforce contract approval and management, double its effort to collect receivables,
and incorporate the collection of receivables into the performance assessment system for business departments.
29
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Resolutions of the
Meeting Type Convened date Disclosure date
participation ratio meeting
The First Resolutions of the
Extraordinary Extraordinary First Extraordinary
General Meeting 43.60% 31 March 2023 1 April 2023
General Meeting General Meeting
of 2023 of 2023
Resolutions of the
The 2022 Annual Annual General
General Meeting Meeting 43.16% 10 May 2023 11 May 2023 2022 Annual
General Meeting
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with Resumed
Voting Rights
□ Applicable Not applicable
II Change of Directors, Supervisors and Senior Management
□ Applicable Not applicable
The Company’s directors, supervisors and senior management remained unchanged during the Reporting Period.
For further information, see the 2022 Annual Report.
III Interim Dividend Plan
□ Applicable Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures
for Employees
Applicable □ Not applicable
1. Equity incentives
On 12 June 2023, the 2023 Restricted Share Incentive Plan (Draft) and Its Summary, together with other
relevant proposals, were approved at the 44th Meeting of the Ninth Board of Directors and the 22 nd Meeting of
the Ninth Supervisory Committee. As such, it was approved to grant no more than 13,000,000 restricted shares
30
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(accounting for 0.95% of the Company’s total share capital of 1,361.9946 million shares at the date of the
announcement on the draft plan of the incentive plan) to 262 awardees. To be specific, there were 11.7 million
shares for the first grant, accounting for 90.00% of the total grant under the incentive plan; and there were 1.3
million reserved shares, accounting for 10.00% of the total grant under the incentive plan. The restricted shares
were A-stock ordinary shares repurchased by the Company. And the grant price for the first grant was
RMB3.81/share. This equity incentive plan is subject to approval by the State-owned Assets Supervision and
Administration Commission of Guangdong Province and a general meeting of shareholders of the Company.
For further information, see the 2023 Restricted Share Incentive Plan (Draft) and Its Summary and other
relevant proposals that have been disclosed on http://www.cninfo.com.cn/ dated 13 June 2023.
2. Implementation of Employee Stock Ownership Plans
□ Applicable Not applicable
3. Other Incentive Measures for Employees
□ Applicable Not applicable
31
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part V Environmental and Social Responsibility
I Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by the
environmental protection authorities.
Yes □ No
Environmental policies and standards:
During production and operations, the Company conscientiously implemented guidelines and policies for
environmental protection at all levels and strictly observed relevant laws and regulations for environmental
protection, such as Law of the People's Republic of China on Environmental Protection, Law of the People's
Republic of China on Prevention and Control of Air Pollution, Law of the People's Republic of China on
Prevention and Control of Water Pollution, Law of the People's Republic of China on Prevention and Control of
Environmental Pollution by Solid Waste, and Law of the People's Republic of China on Prevention and Control
of Noise Pollution. Meanwhile, it has put in place facilities for pollution prevention and control, and ensures the
stable operation of facilities. Additionally, the Company regularly commissions third parties to carry out
monitoring work in accordance with the requirements of the Environmental Monitoring Management Measures
to ensure that all pollutants are discharged in accordance with the standards.
Environment-related administrative permits:
Document name of
No. administrative license of Approver Date of approval Approval No.
environmental protection
Approval for Environmental
Impact Report on New Project Environmental Protection
1 of Foshan Electrical and Bureau of Gaoming 3 November 2004 /
Lighting Co., Ltd. Gaoming District, Foshan City
Branch
Environmental Protection
Acceptance Opinions on Phase I Environmental Protection
2 of Foshan Electrical and Bureau of Gaoming 28 August 2008 MHY [2008] No. 26
Lighting Co., Ltd. Gaoming District, Foshan City
Branch
Acceptance Opinions on Flue
Gas Emission Continuous Environmental Protection
3 Monitoring System of Foshan Bureau of Gaoming 22 February 2010 MHY [2010] No. 8
Electrical and Lighting Co., Ltd. District, Foshan City
Gaoming Branch
Approval for Environmental
Impact Report on Energy-saving Environmental Protection
4 Lamp Expansion Project of Bureau of Gaoming 30 August 2013 MHGYB [2013] No. 030
Foshan Electrical and Lighting District, Foshan City
Co., Ltd. Gaoming Branch
5 Letter of Environmental Environmental Transport 19 February 2014 MGY
32
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Protection Acceptance Opinions and Urban Management [2014] No. 2
on Energy-saving Lamp Bureau of Gaoming
Expansion Project of Foshan District (Environmental
Electrical and Lighting Co., Ltd. Protection)
Gaoming Branch
Approval from Environmental
Protection Bureau of Gaoming
District, Foshan City, of Environmental Protection
6 Environmental Impact Report on Bureau of Gaoming 13 February 2015 MHS [2015] No. 14
Expansion Project of Foshan District, Foshan City
Electrical and Lighting Co., Ltd.
Gaoming Branch
Approval from Environmental
Protection Bureau of Gaoming
District, Foshan City, of Kiln Environmental Protection
7 Expansion and Flue Gas Control Bureau of Gaoming 26 November 2015 MHS [2015] No. 157
and Remediation Project of District, Foshan City
Foshan Electrical and Lighting
Co., Ltd. Gaoming Branch
Letter from Environmental
Protection Bureau of Gaoming
District, Foshan City of
Environmental Protection Environmental Protection
8 Acceptance Opinions on Kiln Bureau of Gaoming 24 December 2015 MHY [2015] No. 83
Expansion and Flue Gas Control District, Foshan City
and Remediation Project of
Foshan Electrical and Lighting
Co., Ltd. Gaoming Branch
Approval from Environmental
Protection Bureau of Gaoming
District, Foshan City, of
Environmental Impact Report on Environmental Protection
9 New LED Luminaries R&D Bureau of Gaoming 30 September 2017 MHS [2017] No. 138
Production Base Construction District, Foshan City
Project of Foshan Electrical and
Lighting Co., Ltd. Gaoming
Branch
Approval from Environmental
Protection Bureau of Gaoming
District, Foshan City, of
Environmental Protection
Environmental Impact Report on
10 Bureau of Gaoming 14 January 2019 MHS [2019] No. 11
Glass Kiln (Change)
District, Foshan City
Construction Project of Foshan
Electrical and Lighting Co., Ltd.
Gaoming Branch
Letter from Foshan Municipal
Ecology and Environment
Bureau of Environmental
Protection Acceptance Opinions
on Solid Waste Pollution Ecology and Environment
11 12 September 2019 FMHY [2019] No. 126
Prevention and Control Facility Bureau of Foshan City
for New LED Luminaries R&D
Production Base Construction
Project (Phase I) of Foshan
Electrical and Lighting Co., Ltd.
Ecology and Environment
12 Sewage Discharge License 1 June 2020 91440600784850061B001U
Bureau of Foshan City
Reply on the Environmental
Impact Report of Liuzhou Guige
Lighting Technology Co., Ltd. Liuzhou Environmental
13 25 September 2015 LHS Zi [2015] No. 134
with an Annual Output of 1.35 Protection Bureau
Million Sets of Auto Parts
(Motor Vehicle Lamps)
Reply on Completion Liuzhou Liudong New
14 28 October 2019 LDSPHB Zi [2019] No. 70
Acceptance of Environmental Area Administrative
33
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Protection Facilities of Liuzhou Examination and Approval
Guige Lighting Technology Co., Bureau
Ltd. with an Annual Output of
1.35 Million Sets of Auto Parts
(Motor Vehicle Lamps) (Solid
Waste)
Liuzhou Liudong New
Area Administrative
15 Sewage Discharge License 18 July 2023 914502000836092085001V
Examination and Approval
Bureau
Approval for the Report on the
Environmental Influence of the Environmental Protection
16 New Semiconductor Light- Bureau of Chancheng 12 April 2005 B2005-0132
emitting Device Construction District, Foshan City
Project
Application for the Completion-
based Environmental Protection
Environmental Protection
Inspection and Acceptance of
17 Bureau of Chancheng 10 October 2007 C.H.Y. [2007] No. 161
the New Semiconductor Light-
District, Foshan City
emitting Device Construction
Project
Registration Form of the
Environmental Influence of the Environmental Protection
18 New Semiconductor Light- Bureau of Chancheng 20 December 2005 D2006-0034
emitting Device Construction District, Foshan City
Project
Approval for the Report on the
Environmental Influence of the
Upgrading of the Surface-mount
Foshan Environmental
19 Semiconductor Light-emitting 22 March 2006 FBC2006-02
Protection Bureau
Device Industry of Foshan
NationStar Optoelectronic
Technology Co., Ltd.
Application for the Completion-
based Environmental Protection
Environmental Protection
Inspection and Acceptance of
20 Bureau of Chancheng 10 October 2007 H.Y. [2007] No. 163
the Upgrading Project of the
District, Foshan City
Surface-mount Semiconductor
Light-emitting Device Industry
Approval for the Report on the
Environmental Influence of the Environmental Protection
21 Relocation Project of Foshan Bureau of Chancheng 29 July 2009 CB2009-0083
NationStar Optoelectronics Co., District, Foshan City
Ltd.
Application for the Completion-
based Environmental Protection
Environmental Protection
Inspection and Acceptance of
22 Bureau of Chancheng 7 May 2010 C.H.Y. [2010] No. 35
the Relocation Project of Foshan
District, Foshan City
NationStar Optoelectronics Co.,
Ltd.
Approval for the Report on the
Environmental Protection
Environmental Influence of the
and Urban Management
Project of the National- and
23 Bureau Zhangcha Sub- 8 November 2011 ZCB2011-020
Local-Joint Engineering
bureau of Chancheng
Laboratory for Semiconductor
District, Foshan City
Lighting Materials and Devices
Application for the Completion-
based Environmental Protection
Inspection and Acceptance of Environmental Protection
24 the Project of the National- and Bureau of Chancheng 24 June 2015 C.H.Y.B [2015] No. 35
Local-Joint Engineering District, Foshan City
Laboratory for Semiconductor
Lighting Materials and Devices
Approval for the Report on the Foshan Environmental
25 21 January 2008 F2008-8
Environmental Influence of the Protection Bureau
34
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Project of Key Technology for
Semiconductor Lighting Lamps
and Industrialization of Foshan
NationStar Optoelectronics Co.,
Ltd.
Letter of Opinions from Foshan
Environmental Protection
Bureau on the Completion-based
Environmental Protection
Inspection and Acceptance of Foshan Environmental
26 16 May 2016 F.H.H. [2016] No. 456
the Project of Key Technology Protection Bureau
for Semiconductor Lighting
Lamps and Industrialization of
Foshan NationStar
Optoelectronics Co., Ltd.
Approval for the Report on the
Environmental Influence of the
LED Backlight Technology Foshan Environmental
27 21 January 2008 F2008-9
Improvement Project of Foshan Protection Bureau
NationStar Optoelectronics Co.,
Ltd.
Letter of Opinions from Foshan
Environmental Protection
Bureau on the Completion-based
Environmental Protection
Foshan Environmental
28 Inspection and Acceptance of 16 May 2016 F.H.H. [2016] No. 455
Protection Bureau
the LED Backlight Technology
Improvement Project of Foshan
NationStar Optoelectronics Co.,
Ltd.
Approval for the Report on the
Environmental Influence of the
Technological Improvement
Foshan Environmental
29 Project for Power-based LED 21 January 2008 F2008-10
Protection Bureau
and LED Luminary Module of
Foshan NationStar
Optoelectronics Co., Ltd.
Letter of Opinions from Foshan
Environmental Protection
Bureau on the Completion-based
Environmental Protection
Inspection and Acceptance of Foshan Environmental
30 16 May 2016 F.H.H. [2016] No. 457
the Technological Improvement Protection Bureau
Project for Power-based LED
and LED Luminary Module of
Foshan NationStar
Optoelectronics Co., Ltd.
Approval for the Report on the
Environmental Influence of the
Technological Improvement
Foshan Environmental
31 Project for New Surface-mount 21 January 2008 F2008-11
Protection Bureau
Light-emitting Diodes of Foshan
NationStar Optoelectronics Co.,
Ltd.
Letter of Opinions from Foshan
Environmental Protection
Bureau on the Completion-based
Environmental Protection
Inspection and Acceptance of Foshan Environmental
32 16 May 2016 F.H.H. [2016] No. 458
the Technological Improvement Protection Bureau
Project for New Surface-mount
Light-emitting Diodes of Foshan
NationStar Optoelectronics Co.,
Ltd.
Approval for the Report on the Environmental Protection
33 29 November 2010 CB2010-0135
Environmental Influence of the Bureau of Chancheng
35
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
New Top LED Manufacturing District, Foshan City
Technology and
Industrialization Project
Application for the Completion-
based Environmental Protection Environmental Protection
Inspection and Acceptance of and Urban Management
34 29 December 2014 C.H.Y.B [2014] No. 47
the New Top LED Bureau of Chancheng
Manufacturing Technology and District, Foshan City
Industrialization Project
Approval of the Environmental
Protection and Urban
Management Bureau of Environmental Protection
Chancheng District to the and Urban Management
35 5 September 2014 C.B. [2014] No. 0036
Report on the Environmental Bureau of Chancheng
Influence of the Expansion District, Foshan City
Project of Foshan NationStar
Optoelectronics Co., Ltd.
Application for the Completion-
based Environmental Protection Environmental Protection
Inspection and Acceptance of and Urban Management
36 29 December 2014 C.H.Y.B [2014] No. 46
the Expansion Project of Foshan Bureau of Chancheng
NationStar Optoelectronics Co., District, Foshan City
Ltd.
Approval of the Environmental
Protection and Urban
Management Bureau of
Environmental Protection
Chancheng District to the
and Urban Management
37 Report on the Environmental 19 December 2014 C.B. [2014] No. 0073
Bureau of Chancheng
Influence of the Expansion
District, Foshan City
Project for Small Spacing and
Outdoor Surface-mount LED
Display Components
Opinions of the Environmental
Protection and Urban
Management Bureau of
Chancheng District, Foshan
City, on the Completion-based Environmental Protection
38 Environmental Protection Bureau of Chancheng 20 May 2016 C.H.Y.B. 2016-4-032
Inspection and Acceptance of District, Foshan City
the Expansion Project for Small
Spacing and Outdoor Surface-
mount LED Display
Components
Approval of the Environmental
Protection Bureau of Chancheng
District, Foshan City, to the
Report on the Environmental
Influence of the Project of the Environmental Protection
39 Innovation in Packaging Bureau of Chancheng 1 November 2016 C.B. 2016-4-205
Technology and Technological District, Foshan City
Transformation of Key
Packaging Equipment of LEDs
with High Color Rendering
Index for Illumination
Opinions of the Environmental
Protection Bureau of Chancheng
District, Foshan City, on the
Completion-based
Environmental Protection
Environmental Protection
Inspection and Acceptance of
40 Bureau of Chancheng 11 April 2017 C.H.Y.B. 2017-4-110
the Project of the Innovation in
District, Foshan City
Packaging Technology and
Technological Transformation
of Key Packaging Equipment of
LEDs with High Color
Rendering Index for
36
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Illumination
Approval of the Environmental
Protection Bureau of Chancheng
District, Foshan City, to the
Report on the Environmental
Environmental Protection
Influence of the Project of the
41 Bureau of Chancheng 1 November 2016 C.B. 2016-4-206
Innovation in Packaging
District, Foshan City
Technology and Technological
Transformation of Key
Packaging Equipment of LEDs
with Small Spacing for Display
Opinions of the Environmental
Protection Bureau of Chancheng
District, Foshan City, on the
Completion-based
Environmental Protection
Environmental Protection
Inspection and Acceptance of
42 Bureau of Chancheng 11 April 2017 C.H.Y.B. 2017-4-111
the Project of the Innovation in
District, Foshan City
Packaging Technology and
Technological Transformation
of Key Packaging Equipment of
LEDs with Small Spacing for
Display
Approval of the Environmental
Protection Bureau of Chancheng
District, Foshan City, to the
Report on the Environmental
Influence of the Project of the Environmental Protection
43 Innovation in Packaging Bureau of Chancheng 8 December 2017 C.B. 2017-4-065
Technology and Technological District, Foshan City
Transformation of Key
Packaging Equipment of LEDs
with High Color Rendering
Index for Illumination (Phase II)
Approval of the Environmental
Protection Bureau of Chancheng
District, Foshan City, to the
Report on the Environmental
Influence of the Project of the Environmental Protection
44 Innovation in Packaging Bureau of Chancheng 8 December 2017 C.B. 2017-4-064
Technology and Technological District, Foshan City
Transformation of Key
Packaging Equipment of LEDs
with Small Spacing for Display
(Phase II)
Approval of the Environmental
Protection Bureau of Chancheng
District, Foshan City, to the
Report on the Environmental
Influence of the Project of the
Foshan Municipal Ecology
45 Innovation in Packaging 31 March 2023 F.C.H.S. [2023] No. 4
and Environment Bureau
Technology and Technological
Transformation of Key
Packaging Equipment of LEDs
with Small Spacing for Display
(Phase V)
Registration Receipt for the
Foshan Municipal Ecology
46 Discharge of Fixed Pollution 19 January 2020 914406001935264036001X
and Environment Bureau
Sources
Approval from Foshan
Environmental Protection
Bureau to the Report on the
Foshan Municipal Ecology
47 Influence of Environment 14 July 2016 F.H.H. [2016] No. 746
and Environment Bureau
Change of the Epitaxial Chip
Project (Phase I) of Foshan
NationStar Semiconductor Co.,
37
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Ltd.
Letter of Opinions from Foshan
Environmental Protection
Bureau on the Acceptance
Inspection of the Environmental
Foshan Municipal Ecology
48 Protection of the Changed 3 May 2017 F.H.H. [2017] No. 426
and Environment Bureau
Completion Environment of the
Epitaxial Chip Project (Phase I)
of Foshan NationStar
Semiconductor Co., Ltd.
Foshan Municipal Ecology
49 Sewage Discharge Permit 21 November 2022 91440600570160743B001Q
and Environment Bureau
Inspection Opinions on the Environmental Protection
Report on the Environmental Bureau of Guangzhou
50 Influence of the First Phase of Economic and 12 February 2004 S.K.H.Y.Z [2004] No. 15
Project of Guangdong Yuejing Technological
High-tech Co., Ltd. Development Zone
Approval for the Completion-
Environmental Protection
based Environmental Protection
Bureau of Guangzhou
Inspection and Acceptance of
51 Economic and 15 December 2006 S.K.H.B.Y.Z [2006] No. 153
the First Phase of Project of
Technological
Guangdong Yuejing High-tech
Development Zone
Co., Ltd.
Approval for the Report on the
Environmental Protection
Environmental Influence of the
Bureau of Guangzhou
New Employee Canteen and
52 Economic and 2 February 2007 S.K.H.B.Y.Z [2007] No. 17
Standby Generator Project of
Technological
Guangdong Yuejing High-tech
Development Zone
Co., Ltd.
Approval for the Completion-
based Environmental Protection Environmental Protection
Inspection and Acceptance of Bureau of Guangzhou
53 the New Employee Canteen and Economic and 19 November 2007 S.K.H.B.Y.Z [2007] No. 166
Standby Generator Project of Technological
Guangdong Yuejing High-tech Development Zone
Co., Ltd.
Approval for the Report on the
Environmental Protection
Environmental Influence of the
Bureau of Guangzhou
New Triode Tin Deposition
54 Economic and 6 November 2006 S.K.H.B.Y.Z [2006] No. 242
Assembly Line Project of
Technological
Guangdong Yuejing High-tech
Development Zone
Co., Ltd.
Approval for the Completion-
based Environmental Protection Environmental Protection
Inspection and Acceptance of Bureau of Guangzhou
55 the New Triode Tin Deposition Economic and 11 December 2007 S.K.H.B.Y.Z [2007] No. 168
Assembly Line Project of Technological
Guangdong Yuejing High-tech Development Zone
Co., Ltd.
Approval for the Report on the
Environmental Influence of the Construction and
Third Phase of the Project with Environmental Protection
an Annual Packaging Output of Bureau of Guangzhou
56 17 August 2011 S.K.H.J.Y.Z [2011] No. 272
Two Billion New Economic and
Semiconductor Devices of Technological
Guangdong Yuejing High-tech Development Zone
Co., Ltd.
Approval for the Completion-
based Environmental Protection Environmental Protection
Inspection and Acceptance of and Urban Management
the Third Phase of the Project Bureau of Guangzhou
57 19 March 2015 S.K.H.Y.Z [2015] No. 44
with an Annual Packaging Economic and
Output of Two Billion New Technological
Semiconductor Devices of Development Zone
Guangdong Yuejing High-tech
38
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Co., Ltd.
Approval of the Report on the Environmental Protection
Environmental Influence of the and Urban Management
Technological Improvement Bureau of Guangzhou
58 4 July 2014 S.K.H.Y.Z [2014] No. 130
Project for the Production of Economic and
SOP-SOT Chip Semiconductor Technological
Devices Development Zone
Approval for the Completion-
based Environmental Protection
Construction and
Inspection and Acceptance of
Environmental Protection
the Technological Improvement
Bureau of Guangzhou
59 Project for the Production of 11 January 2017 S.K.J.H.B.Y.Z [2017] No. 6
Economic and
SOP-SOT Chip Semiconductors
Technological
of Guangdong Fenghua
Development Zone
Semiconductor Technology Co.,
Ltd.
Approval for the Report on the Environmental Protection
Environmental Influence of the Bureau of Guangzhou
60 Plant Expansion II of Economic and 23 February 2008 S.K.H.B.Y.Z [2008] No. 25
Guangdong Yuejing High-tech Technological
Co., Ltd. Development Zone
Approval for the Completion-
based Environmental Protection
Construction and
Inspection and Acceptance of
Environmental Protection
the Plant Expansion II of
Bureau of Guangzhou
61 Guangdong Fenghua 14 June 2017 S.K.H.Y.Z [2017] No. 151
Economic and
Semiconductor Technology Co.,
Technological
Ltd. (Formerly Known as
Development Zone
Guangdong Yuejing High-tech
Co., Ltd.)
Registration Receipt for the Guangzhou Municipal
62 Discharge of Fixed Pollution Ecological Environment 27 February 2020 91440000725451562J001Y
Sources Bureau
Discharge standards and pollutants discharged in production and operation activities:
Name of Type of Name of
Discharge
Company Major and Major and Outlet Pollutant Total Total
Discharge Outlet Concentrat Excessive
or Characteri Characteri Distributio Discharge Actual Discharge
Method Quantity ion Discharge
Subsidiary stic stic n Standards Discharge Approved
/intensity
Company Pollutants Pollutants
Emission
Foshan
Standards
Electrical
Discharge for Air
and
Exhaust d in an In the SO2: 289 Pollutants SO2:
Lighting SO2 1 6.264 None
gas organized plant mg/m3 in Glass 39.937 t/y
Co., Ltd.
manner Industry
Gaoming
(DB44/21
Branch
59-2019)
Emission
Foshan
Standards
Electrical
Discharge for Air
and Exhaust Oxynitride Oxynitride
d in an In the Pollutants
Lighting Oxynitride 1 : 57.236 : 83.549 None
gas organized plant in Glass
Co., Ltd. 550mg/m3 t/y
manner Industry
Gaoming
(DB44/21
Branch
59-2019)
Xylene,
SO2,
nitrogen Integrated
Liuzhou oxide, Discharge Emission
Discharge
Guige Exhaust benzene, d upon Standards
d in an In the
Lighting toluene, 1 reaching of Air / / None
gas organized plant
Technolog particulate applicable Pollutants
manner
y Co., Ltd. matter, standards (GB16297
volatile -1996)
organic
matter
Liuzhou Exhaust Volatile Discharge Discharge Integrated
In the
Guige organic d in an un- 2 d upon Emission / / None
gas plant
Lighting compound organized reaching Standards
39
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Technolog s manner applicable of Air
y Co., Ltd. standards Pollutants
(GB16297
-1996)
Table 1
“Limits
for direct
discharges
in water
Chemical pollutant
COD: 8
Foshan oxygen Discharge discharge COD:0.24
mg/L;
NationStar demand d by Wastewate limits” in t/a
Wastewate Ammonia
Optoelectr ("COD") standards 1 r treatment Discharge Ammonia / None
r nitrogen:
onics Co., and after station Standard nitrogen:0.
0.067
Ltd. ammonia treatment of Water 00201t/a
mg/L
nitrogen Pollutants
for
Electronic
Industry
(GB39731
-2020)
Emission
Standard
of Volatile
Organic
Compoun
ds for
Total Total Furniture
volatile VOCs: Manufactu
organic 0.215mg/ ring Total
Foshan Discharge Rooftop of
compound m (DB44/81 VOCs:0.0
NationStar d by East
Exhaust s NMHC: 4-2010) of 4 t/a
Optoelectr standards 2 Tower and / None
gas ("VOCs"), 2.79mg/m Guangdon NMHC:
onics Co., after West
NMHC, Particulate g 0.53568
Ltd. treatment Tower
and matters: Province: t/a
particulate ≤ Discharge
matters 20mg/m limits for
VOCs
through
exhaust
funnels for
Time
Period II.
Emission
Standard
for Noise
of
Foshan Daytime:
Industrial
NationStar Discharge 57;
Enterprise
Optoelectr Noise Noise d by / / nighttime: / / None
s at
onics Co., standards 49, Unit:
Boundary
Ltd. dB (A)
(GB12348
-2008):
Standard
Class II
Foshan COD, Discharge PH: Six to Discharge COD：
NationStar Wastewate ammonia d by Wastewate nine Limits of COD:0.67 3.129t/a
1 None
Semicond r nitrogen, standards r station COD: 90 Water t/a Ammonia
uctor suspended after mg/L Pollutants Ammonia nitrogen：
40
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Technolog solids, and treatment BOD5: 20 (DB44/26- nitrogen： 0.201t/a
y Co., Ltd fluoride mg/L 2001) of 0.000515t/
Suspended Guangdon a
solids: 60 g
mg/L Province:
Ammonia Standard
nitrogen: Class I for
10 mg/L Time
Fluoride: Period II.
10
mg/L
Sulfur
dioxide:
Emission
500
Limits of
mg/m
Air
nitrogen
Pollutants
oxide: 120
(DB44/24
mg/m
7-2001) of
particulate
Sulfur Guangdon
matters:
dioxide, g
120
nitrogen Province:
mg/m
oxide, Standard
ammonia
particulate Class II
gas: 20
matter, for Time
mg/m
ammonia, Period II.
odor
ozone Emission
concentrat
concentrat Standard SO2:0.25t/
Foshan ion: 6000 SO2:0t/a;
ion, Discharge of Volatile a;
NationStar mg/m NOX:
hydrogen d by Organic NOX:11.9
Semicond Exhaust hydrogen 2.3233 t/a
chloride, standards 6 Rooftop Compoun 6t/a None
uctor gas chloride: Total
fluoride, after ds for Total
Technolog 100 VOCs：
chlorine treatment Furniture VOCs：
y Co., Ltd. mg/m 0.4589t/a
gas, Manufactu 2.45t/a
fluoride: 9
sulphuric ring
mg/m
acid mist, (DB44/81
chlorine:
stupid, 4-2010) of
65 mg/m
toluene Guangdon
sulfuric
and g
acid mist:
xylene, Province:
35 mg/m
total Discharge
benzene: 1
VOCs limits for
mg/m
VOCs
toluene
through
and
exhaust
xylene: 20
funnels for
mg/m
Time
total
Period II.
VOCs: 30
mg/m
Emission
Standard
Foshan
Daytime: for Noise
NationStar
Discharge 60; of
Semicond
Noise Noise d by / / nighttime: Industrial / / None
uctor
standards 50, Unit: Enterprise
Technolog
dB (A) s at
y Co., Ltd.
Boundary
(GB12348
41
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
-2008):
Standard
Class II
Discharge
Limits of
Water
Pollutants
Guangdon PH(6-9);
Discharge (DB44/26-
g Fenghua Wastewate Total COD(500
d by 2001) of
Semicond Wastewate r：PH, outlet near mg/L); COD:0.21
standards 1 Guangdon / None
uctor r COD, and the north Copper 9t/a
after g
Technolog copper duty room (≤2.0mg/L
treatment Province:
y Co., Ltd. );
Standard
Class III
for Time
Period II.
Exhaust Particulate
gas matter： Guangdon
： 120mg/m g
Guangdon Particulat hydrogen StandardD Particulate
Discharge
g Fenghua e matter, chloride B44/27- matter：
d by Rooftop of
Semicond Exhaust total mist： 2001, 0.018t/a；
standards 7 Phase I / None
uctor gas VOCs, 100mg/m Discharge Total
after plant
Technolog sulphuric sulphuric Limits for VOCs:0.1
treatment
y Co., Ltd. acid mist, acid Class II 27t/a
hydrogen mist： for Time
chloride 35mg/m Period II;
mist oil
Emission
Standard
for Noise
Guangdon Daytime: of
g Fenghua 65 Industrial
Discharge
Semicond Nighttime: Enterprise
Noise Noise d by / / / / None
uctor 55 s at
standards
Technolog Unit： Boundary
y Co., Ltd. dB(A) (GB12348
-2008):
Standard
Class III
Pollutant treatment:
Emission and treatment of the Company's main pollutants:
(1) Exhaust gas:
FSL: The flue gas of glass kilns and the high-temperature melting of glass raw materials generated air
pollutants, such as sulphur dioxide, nitric oxide, and smoke, during the manufacturing of semi-products, such as
glass bulb shells and lamp tubes. Such flue gas was treated with semi-dry desulfurization, electric precipitation,
and SCR denitration. Upon treatment, the standard limits for glass kilns in the Emission Standards for Air
Pollutants in Glass Industry (DB44/2159-2019): Table 1 Emission Limits of Air Pollutants were met.
42
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Nanning Liaowang: Exhaust gases like volatile organic compounds (VOCs), were mainly generated during the
manufacturing of auto luminary, which were treated through Regenerative Thermal Oxidizer (RTO) catalytic
combustion and UV activated carbon adsorption. Upon treatment, the discharge limits and requirements
stipulated in Comprehensive Discharge Standards for Air Pollution (GB16297-1996) were met.
NationStar Optoelectronics: The manufacturing of LED components mainly caused pollutants such as VOCs,
NMHC, and particulate matters, which was treated through dry filtration and secondary activated carbon
adsorption. Upon treatment, the Emission Limits of Air Pollutants (DB 44/27-2001), the Emission Standard of
Volatile Organic Compounds for Furniture Manufacturing (DB44/814-2010), and the Integrated Emission
Standard of Volatile Organic Compounds for Stationary Pollution Source (DB44/ 2367—2022) were met.
NationStar Semiconductor: a) Pollutants, such as ammonia gas, was mainly generated during the
manufacturing of LED epitaxial wafers. Upon treatment through Edwards combustion, the Emission Limits of
Air Pollutants (DB44/27-2001): Standard Class II for Time Period II and Emission Standards for Odour
Pollutants (GB14554-93): Table 2 30-meter High Exhaust Pipes for Ammonia were met. b) The manufacturing
of LED chips mainly caused pollutants such as sulfuric acid mist, hydrochloric acid mist, chlorine, hydrogen
chloride, fluorides, and particulate matters. Upon treatment through Scrubber combustion-based washing and
spraying equipment and scrubbing towers for acid and alkali exhaust gas, the Emission Limits of Air Pollutants
(DB44/27-2001) of Guangdong Province: Standard Class II for Time Period II were met. c) Wastes, such as
acetone, isopropyl alcohol, esters, ethers, and amines, were mainly caused during the manufacturing of LED
chips. Upon treated through UV photolysis and activated carbon adsorption, the discharge limits and
requirements stipulated in the Emission Standard of Volatile Organic Compounds for Furniture Manufacturing
(DB44/814-2010) of Guangdong Province: Discharge limits for VOCs through exhaust funnels for Time Period
II were met.
Fenghua Semiconductor: The sealing test of electronic components mainly generated pollutants, such as dust
and particulate matters, organic exhaust gas, sulfuric acid mist, and hydrogen chloride mist. Through filter vats
and activated carbon adsorption, and spraying alkali liquor for neutralization, the Emission Limits of Air
Pollutants (DB44/27-2001) of Guangdong Province: Standard Class II for Time Period II were met.
(2) Wastewater:
FSL: The Company's wastewater mainly came from offices and living. Domestic wastewater was treated with a
tertiary septic tank. Oily sewage from the canteen was pre-treated with an oil and residue separation system, and
43
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
then transferred to wastewater treatment stations for centralized treatment. Upon treatment, the discharge limits
and requirements stipulated in the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong
Province: Standard Class III for Time Period II were met.
Nanning Liaowang: The manufacturing of auto luminary did not generate industrial wastewater and mainly
caused wastes, such as domestic wastewater. Upon treatment through physicochemical and biochemical, the
discharge limits and requirements stipulated in the Level 1 standards of the Integrated Wastewater Discharge
Standard (GB 8978-1996) were met.
NationStar Optoelectronics: wastes, such as COD and ammonia nitrogen, was mainly generated during the
manufacturing of LED components. Upon treatment through coagulation, sedimentation, and frame filtering,
the discharge limits and requirements stipulated in the Discharge Standard of Water Pollutants for Electronic
Industry (GB 39731-2020) were met.
NationStar Semiconductor: The manufacturing of LED chips mainly generated wastes, such as COD,
ammonia nitrogen, SS, and fluorides. Upon treatment through physicochemical and biochemical, the discharge
limits and requirements stipulated in the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong
Province: Standard Class III for Time Period II were met.
Fenghua Semiconductor: Pollutants, such as COD, ammonia nitrogen, and heavy metals, were mainly
generated during the sealing test of electronic components. Through physicochemical and biochemical
treatment, MBR films, and reverse osmosis (RO) membranes, the discharge limits and requirements stipulated
in the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong Province: Standard Class III for
Time Period II.
(3) Noises:
FSL: Noises mainly came from the operation of production machinery. Specifically, water pumps and fans that
would cause loud noises were placed in a soundproof room or covered with a noise enclosure. Hush pipes were
attached to exhaust gas exhaust pipes that would cause loud noises.
Nanning Liaowang: Noises mainly came from the operation of production machinery. Specifically, basic
damping, soundproof rooms, and soundproof cottons were applied to injection moulding and friction welding
that would cause loud noises. The Emission Standard for Noise of Industrial Enterprises at Boundary
(GB12348-2008): Standard Class III were met.
44
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
NationStar Optoelectronics: Noises mainly included mechanical and aerodynamic noises. Specifically,
production and process equipment were placed in a closed workshop. Soundproof rooms, vibration dampers,
and noise enclosures were adopted for Equipment, such as air compressors, water pumps, and fans, that would
cause loud noises. Hush pipes were attached to exhaust gas exhaust pipes that would cause loud noises.
NationStar Semiconductor: Noises mainly included mechanical and aerodynamic noises. Production and
process equipment was placed in a closed workshop. Soundproof rooms, vibration dampers, and noise
enclosures were adopted for equipment, such as air compressors, water pumps, and fans, that would cause loud
noises.
Fenghua Semiconductor: Noises mainly came from the operation of production machinery. Specifically, water
pumps and fans that would cause loud noises were placed in a soundproof room or covered with a noise
enclosure.
Contingency plan for environmental emergencies:
The Company formulated the Contingency Plan for Environmental Emergencies of Foshan Electrical and
Lighting Co., Ltd. Gaoming Branch (Including Risk Assessment Report and Material Survey of Environmental
Emergencies in August 2017, had it reviewed by experts on 13 September 2017, and had it filed with the Foshan
Municipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-2017-094-L) on 24
October 2017. This document was revised in August 2020, reviewed by experts again on 7 September 2020, and
filed with the Foshan Municipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-
2020-056-M) on 25 September 2020.
In June 2018, Liuzhou Guige Lighting Technology Co., Ltd. completed the preparation of the Emergency Plan for
Environmental Emergencies of Liuzhou Guige Lighting Technology Co., Ltd. (including the Risk Assessment
Report for Environmental Emergencies and the Investigation Report for Emergency Resources for Environmental
Emergencies), which was reviewed by experts and released, and filed with Liudong Branch of Liuzhou
Environmental Protection Bureau on 29 August 2018 (No. 450203-2018-022-1). In August 2021, the Emergency
Plan for Environmental Emergencies of Liuzhou Guige Lighting Technology Co., Ltd. (including the Risk
Assessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources for
Environmental Emergencies) was updated and compiled, passed the expert review and released, and on 27
December 2021, the Emergency Plan was filed with the Ecological Environment Bureau of Liudong New Area,
Liuzhou City (No. 450203-2021-0019-L).
45
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
NationStar Optoelectronics formulated the Contingency Plan for Environmental Emergencies of NationStar
Optoelectronics (Including Risk Assessment Report and Material Survey of Environmental Emergencies)
according to the requirements of the Management Methods for Environmental Emergencies, and had it filed with
the Foshan Municipal Ecology and Environment Bureau Chancheng Sub-bureau (Filing No.: 440604-2020-032-L)
in 2020.
NationStar Semiconductor formulated the Contingency Plan for Environmental Emergencies of NationStar
Semiconductor (Including Risk Assessment Report and Material Survey of Environmental Emergencies)
according to the requirements of the Management Methods for Environmental Emergencies, and had it filed with
the Foshan Municipal Ecology and Environment Bureau (Filing No.: 440600-2020-047-M) on 12 August 2020.
Fenghua Semiconductor formulated the Contingency Plan for Environmental Emergencies of Guangdong
Fenghua Semiconductor Technology Co., Ltd. (including Risk Assessment Report and Material Survey of
Environmental Emergencies) according to the requirements of the Management Methods for Environmental
Emergencies, and had it filed with the Guangzhou Municipal Ecology and Environment Bureau (Filing No.:
440112-2022-032-L) on 3 March 2022.
Input in environmental governance and protection and the payment of environmental protection-related taxes:
During the Reporting Period, the input of the Company and its subsidiaries in the construction of environmental
protection facilities, the development of environmental protection standards, the treatment of exhaust gas,
wastewater, and waste residue, and routine detection totaled RMB4.3354 million, and their environmental
protection-related taxes paid amounted to RMB41.5 thousand.
Environmental self-monitoring plan:
Foshan Electrical and Lighting Co., Ltd. Gaoming Branch developed an environmental self-monitoring plan,
numbered: FSLFMF001. It entrusted a third-party environmental testing agency, Guangdong Spectrum Testing
Technology Co., Ltd., to perform the annual inspection of the exhaust outlet. All the inspection results were
lower than the standard limits. Meanwhile, it accepted the annual supervision and monitoring by local
environmental protection departments. All the monitoring results were lower than the standard limits.
Liuzhou Guige Lighting Technology Co., Ltd. has put in place the Self-monitoring Plan of Liuzhou Guige
Lighting Technology Co., Ltd. It entrusted a third-party environmental testing agency, Guangxi Huaqiang
46
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Environmental Monitoring Co., Ltd., to perform the annual inspection of the exhaust outlet. All the inspection
results were lower than the standard limits. Meanwhile, it accepted the annual supervision and monitoring by
local environmental protection departments. All the monitoring results were lower than the standard limits.
NationStar Optoelectronics, following the self-monitoring plan, entrusted a qualified third-party environmental
testing agency to perform inspection of various pollutants every half a year. All the inspection results were
lower than the standard limits. Meanwhile, it accepted the quarterly supervision and monitoring by local
environmental protection departments. All the monitoring results were lower than the standard limits.
Foshan NationStar Semiconductor Technology Co., Ltd. abided by its self-monitoring plan. It entrusted a
qualified third-party environmental testing agency to perform the inspection of the pollutants on a half-year
basis. All the inspection results were lower than the standard limits. Meanwhile, it accepted the quarterly
supervision and monitoring by local environmental protection departments. All the monitoring results were
lower than the standard limits.
According to its self-monitoring plan, Guangdong Fenghua Semiconductor Technology Co., Ltd. entrusted a
qualified third-party environmental testing agency to perform the inspection of the pollutants on a half-year
basis. All the inspection results were lower than the standard limits. Meanwhile, it accepted the quarterly
inspection by local environmental protection departments. All the monitoring results were lower than the
standard limits.
Administrative punishments received with respect to environmental issues in the Reporting Period:
Impact on the
The Reason for
Incompliance Punishment Company’s Rectification
Company/subsidiary punishment
operations
N/A N/A N/A N/A N/A N/A
Other environment-related information that should be disclosed:
None.
Measures taken during the Reporting Period to reduce carbon emissions and the impact:
Applicable □ Not applicable
During the Reporting Period, the Company reduced electricity consumption under the same output value by
selecting high-efficiency and energy-saving equipment. The Company insists on constantly publicizing
environmental protection knowledge to employees, improving their awareness of environmental protection, and
realizing the sustainable development goal of harmonious coexistence between enterprises and the environment
through the joint efforts of all employees.
47
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Other relevant information:
None.
II Social Responsibility
The Company places a high value on corporate social responsibility and commitment. Adhering to the "create the
value of light" corporate mission, the Company vigorously performs its social responsibility and constantly
enhances its protection for the interests of stakeholders in order to create a healthy and beautiful life of light for
customers, create and improve the space for personal development for employees and help them achieve the value
of life, and contribute to the sound and sustainable development of the society.
1. Protection of the rights and interests of our shareholders and creditors
We continuously improve our corporate governance structure, regulate our operation and enhance our
management on information disclosure and investor relations. We treat all our investors fairly and justly, ensure
their rights to know about, participate in and vote on the significant events of the Company, and safeguard the
legal rights and interests of all our shareholders, especially our minority shareholders.
2. Protection of the rights and interests of our employees
Considering employees the most valuable resource for our survival and development, we constantly improve our
employment system, improve the compensation packages for our employees and attach importance to talent
cultivation so as to provide opportunities and space for the sustainable development of our employees as well as
realize the common development of the employees and the Company. We also pay attention to the health of our
employees, attach importance to production safety and labor protection, and improve the working and living
conditions for our employees so as to formulate harmonious and stable labor relations.
3. Protection of the rights and interests of our customers and consumers
We have been upholding the “Customer First” principle in our provision of quality products and services to
customers. We operate honestly and disallow any unfair trade practice against commercial ethics, market rules
and the fair competition principle. We also improve our product quality and after-sales services and try to build a
win-win relationship with our customers.
4. Protection of the rights and interests of our suppliers
We respect and protect the legal rights and interests of our suppliers, carefully protect their secret and proprietary
information, encourage and push them to continuously improve the quality of their products and services through
48
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
creating an environment for open and fair competition among them so as to realize mutual benefits and mutual
development of the suppliers and the Company.
5. Production Safety, Environmental Protection and Sustainable Development
The Company sees production safety, environmental protection and energy conservation as an important part of
its strategy of sustainable development. It implements accountability systems in relation environmental protection
and production safety in strict accordance with the applicable laws and regulations. In addition, it is ISO9001-(a
quality management system), IATF16949-(a quality management system), ISO14001-(an environment
management system), ISO45001-(a management system for occupational health and safety) and ISO50001-(an
energy management system) certified. In 2018, upon the review and publication by the Ministry of Industry and
Information Technology, the Company was certified as one of the second batch of National Demonstration Entity
of Green Factory.
6. Public relations and welfare
We attach importance to the realization of our social value and see creating a prosperous society as a
commitment that we should take on, trying to boost the local economy through our own development. During
the Reporting Period, the Company spent more than RMB90,000 on consumption assistance products. It also
organised voluntary blood donations, attracting more than two hundred participants. Moreover, it launched the
"Fulfil Our Original Aspiration and Mission, Carry Forward the Lei Feng Spirit" Party Day & Voluntary
Service activity in elderly care communities, giving gifts such as little nightlights and milk to the seniors there.
Additionally, to fulfil the social responsibility of state-owned enterprises, the Company cared about special
retirees in the communities. On the Learn from Lei Feng Day, the Company, under the coordination and
arrangements of the public service offices of the communities, joined hands with other caring enterprises to
launch the "Learn the Lei Feng Spirit, Fulfil Our Original Aspiration and Mission" series of caring and
voluntary assistance services, helping 65 households of special seniors in the communities change or install
lights for free.
49
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part VI Significant Events
I Commitments of the Company’s De Facto Controller, Shareholders, Related Parties and
Acquirers, as well as the Company Itself and Other Entities Fulfilled in the Reporting
Period or Ongoing at the Period-End
□ Applicable Not applicable
No such cases in the Reporting Period.
II Occupation of the Company’s Capital by the Controlling Shareholder or any of Its
Related Parties for Non-Operating Purposes
□ Applicable Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of Independent Auditor
Are the interim financial statements audited?
□Yes No
These interim financial statements are unaudited.
V Explanations Given by the Board of Directors and the Supervisory Committee Regarding
the Inde pendent Auditor's “Modified Opinion” on the Financial Statements of the
Reporting Period
□ Applicable Not applicable
VI Explanations Given by the Board of Directors Regarding the Independe nt Auditor's
“Modified Opinion” on the Financial Statements of Last Year
□ Applicable Not applicable
VII Insolvency and Reorganization
□ Applicable Not applicable
No such cases in the Reporting Period.
50
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
VIII Legal Matters
Significant lawsuits and arbitrations
□ Applicable Not applicable
No such cases in the Reporting Period.
Other legal matters
Applicable □ Not applicable
Basic Whether Lawsuit Execution of
Amount Lawsuit
information there are (arbitration) lawsuit Date of Disclosure
involved (arbitration)
on lawsuit accrued results and (arbitration) disclosure index
(RMB’0,000) progress
(arbitration) liabilities influences judgment
71 other
31 cases
litigation No
have been
matters that significant
6,717.3 No closed; 40 N/A N/A
did not meet influence on
cases is not
litigation the Company
closed.
standards
IX Punishments and Rectifications
□ Applicable Not applicable
X Credit Quality of the Company as well as its Controlling Shareholder and De Facto
Controller
Applicable □ Not applicable
In the Reporting Period, the Company and its controlling shareholder and de facto controller were not involved
in any unsatisfied court judgments, large-amount overdue liabilities or the like.
XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
Applicable □ Not applicable
Obtai
nable
As %
Appro marke
of Index
Relati ved Over t price
Trans Total total to
onshi Type Specif Pricin transa the Metho for
Relate action value value Disclo disclo
p with of ic g ction appro d of same-
d price( (RMB of all sure sed
the transa transa princi line ved settle type
party RMB’ ’0,000 same- date infor
Comp ction ction ple (RMB line or ment transa
0,000) ) type matio
any ’0,000 not ctions
transa n
) (RMB
ctions
’0,000
)
Guan Under Purch Purch Bank www.
2
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Fengh actual 0.05% 4,500 Not March
produ materi t price 1 1 ers or 1 .com.
ua contro 2023
cts als bank cn
51
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Adva ller and accept
nced receiv ance
Techn
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Co., e
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52
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
ntal ing notes
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53
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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ing Marke
Wall actual labor 8.70 8.7 0.04% bank 8.70 N/A
Buildi contro labor t price
servic accept
ng ller servic
e ance
Co., e
Ltd. notes
from
relate
d
party
Purch
asing
produ
Guan
cts
gdong Bank
Tianxi and
Under Recei transf
n receiv
same ving ers or
Com ing Marke
merci
actual labor 8.38 8.38 0.04% bank 8.38 N/A
contro labor t price
al servic accept
ller servic
Servic e ance
e
e Co., notes
Ltd. from
relate
d
party
Sellin
g
Share produ
Prosp holder cts Bank
erity that and transf
Lamp holds Sellin www.
provid ers or 2
s& over g Marke 1,264. 1,264. 1,264. cninfo
Comp 5% ing 0.14% 4,000 Not bank March
produ t price 15 15 15 .com.
onents shares labor accept 2023
cts cn
Limit of the servic ance
ed Comp e to notes
any relate
d
party
Guan Sellin
gdong g
Fengh produ Bank
ua cts transf
Under Sellin www.
Adva and ers or 2
same
nced g Marke 746.6 746.6 746.6 cninfo
actual provid 0.09% 1,500 Not bank March
Techn produ t price 6 6 6 .com.
contro ing accept 2023
ology cts cn
ller labor ance
Holdi
ng servic notes
Co., e to
Ltd. relate
54
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
d
party
Sellin
g
produ
Guan
cts Bank
gdong
Under and transf
Zhong Sellin www.
same provid ers or 2
nan g Marke 301.2 301.2 13,00 301.2 cninfo
actual ing 0.03% Not bank March
Const produ t price 5 5 0 5 .com.
contro labor accept 2023
ructio cts cn
ller servic ance
n Co.,
e to notes
Ltd.
relate
d
party
Sellin
g
Shenz
produ
hen
cts
Zhong
Under and
jin Sellin
same provid
Lingn g Marke
actual ing 71.04 71.04 0.01% 71.04
an produ t price
contro labor
Nonfe cts
ller servic
met
e to Bank
Co.
relate transf
Ltd.
d ers or
party bank
Sellin accept
g ance
Shand produ notes
ong cts
Zhong Under and www.
Sellin
jin same provid 2 cninfo
g Marke Not
Lingn actual ing 22.38 22.38 0.00% 1,550 22.38 March .com.
produ t price
an contro labor 2023 cn
cts
Coppe ller servic
r Co., e to
Ltd. relate
d
party
Sellin
Guan
g
gdong
produ
Zhong
cts Bank
jin
Under and transf
Lingn Sellin
same provid ers or
an g Marke
actual ing 2.31 2.31 0.00% bank 2.31
Engin produ t price
contro labor accept
eering cts
ller servic ance
Techn
e to notes
ology
relate
Co.,
d
Ltd.
party
Guan Under Sellin Sellin Bank www.
2
gdong same g g Marke transf cninfo
1.23 1.23 0.00% 1,800 Not 1.23 March
Zhuyu actual produ produ t price ers or .com.
2023
an contro cts cts bank cn
55
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Const ller and accept
ructio provid ance
n and ing notes
Engin labor
eering servic
Co., e to
Ltd. relate
d
party
Sellin
g
produ
Guan
cts Bank
gdong
and transf
Rising Actua Sellin
provid ers or
Holdi l g Marke
ing 0.28 0.28 0.00% Not bank 0.28 N/A
ngs contro produ t price
labor accept
Group ller cts
servic ance
Co.,
e to notes
Ltd.
relate
d
party
Guan
gdong
Xinta
ochip
Micro
electr
Sellin
onics
g
Co.,
produ
Ltd.
cts Bank
(form
Under and Provi transf
erly
same provid ding ers or
know Marke
actual ing labor 57.79 57.79 0.01% Not bank 57.79 N/A
n as t price
contro labor servic accept
Fengh
ller servic e ance
ua
e to notes
Resea
relate
rch
d
Institu
party
te
(Guan
gzhou
)
Limit
ed)
Guan Sellin
gdong g
Rising produ
Bank
Resea cts
Under Provi transf
rch and
same ding ers or
and provid Marke
actual labor 0.44 0.44 0.00% Not bank 0.44 N/A
Devel ing t price
contro servic accept
opme labor
ller e ance
nt servic
notes
Institu e to
te relate
Co., d
56
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Ltd. party
2,799 30,85
Total -- -- -- -- -- -- -- --
.17 0
Large-amount sales return in detail N/A
In June 2023, the Company estimated the total value of its continuing transactions with
related parties Guangdong Fenghua Advanced Technology Holding Co., Ltd., Prosperity
Lamps & Components Limited and its majority-owned subsidiaries, Guangdong Rising
Investment Group and its majority-owned subsidiaries, Guangdong Huajian Enterprise
Give the actual situation in the Group Co., Ltd. and its majority-owned subsidiaries, Shenzhen Zhongjin Lingnan Nonfemet
Reporting Period (if any) where an Co. Ltd. and its majority-owned subsidiaries, Guangdong Rising Real Estate Group Co.,
estimate had been made for the Ltd. and its majority-owned subsidiaries, Guangdong Electronic Technology Research
total value of continuing related- Institute, Guangdong Rising Research and Development Institute Co., Ltd. and its majority-
party transactions by type to occur owned subsidiaries, Guangdong Rising Property Group Co., Ltd. and its majority-owned
in the Reporting Period
subsidiaries, as well as Dongjiang Environmental Company Limited and its majority-owned
subsidiaries. Concerning the purchases from related parties, the actual amount in H1 2023
was RMB3.3164 million, accounting for 3.49% of the estimate for 2023. As for the sales to
related parties, the actual amount in H1 2023 was RMB24.6753million, accounting for
9.77%of the estimate for 2023.
Reason for any significant
difference between the transaction
price and the market reference N/A
price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
Applicable □ Not applicable
Non-operating amounts due to and from related parties or not
□ Yes No
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
Applicable □ Not applicable
Deposit business:
Related party Relationship Daily Interest rate Beginning Actual amount Ending
57
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
maximum range balance Total Total balance
limits (RMB’0,000) deposited in withdrawn (RMB’0,000)
(RMB’0,000) (RMB’0,000) (RMB’0,000)
Guangdong Controlled
Rising by the same
Finance Co., controlling 120,000 0.25%-3.3% 119,172.29 272,402.11 289,629.86 101,944.54
Ltd. shareholder
Loan business:
N/A
Credit or other financial business:
Total amount Actual amount
Related party Relationship Type of business
(RMB’0,000) (RMB’0,000)
Guangdong Rising Controlled by the same
Credit granting 150,000 0.00
Finance Co., Ltd. controlling shareholder
6. Transactions with Related Parties by Finance Company Controlled by the Company
□ Applicable Not applicable
No finance company controlled by the Company was involved in making deposits, borrowing, credit granting or
any other financial business with any related party.
7. Other Major Related-Party Transactions
Applicable □ Not applicable
1. List of major infrastructure related-party transactions
Transa
ction
Relationship
Type of Specific Pricing amoun Method of Disclosure
Related party with the Disclosure date
transaction transaction principle t settlement website
Company
(RMB’
0,000)
Purchasing
products
and
Guangdong Bank transfers
receiving Receiving 9 July 2021, 17
Zhongnan Under same Market 5,850. or bank www.cninfo.com
labor labor August 2021, and 12
Construction Co., actual controller price 05 acceptance .cn
service service March 2022
Ltd. notes
from
related
party
Purchasing
products
and
Guangdong Yixin Bank transfers
receiving Receiving
Changcheng Under same Market 4,245. or bank www.cninfo.com
labor labor 6 May 2021
Construction actual controller price 36 acceptance .cn
service service
Group notes
from
related
party
Guangdong Purchasing Bank transfers www.cninfo.com
Receiving
Zhongren Group Under same products Market 2,667. or bank .cn
labor 1 December 2020
Construction Co., actual controller and price 77 acceptance (announcement
service
Ltd. receiving notes of subsidiary
58
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
labor NationStar
service Optoelectronics)
from
related
party
XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
Applicable □ Not applicable
On 30 August 2022, a wholly-owned subsidiary of the Company, Foshan Kelian New Energy Technology Co.,
Ltd. (hereinafter referred to as "Foshan Kelian"), issued the Bidding Announcement for Operation and Investment
Attraction and Property Management Services of Kelian Building on the open platforms and conducted public
bidding for the operation and investment attraction and property management services of Kelian Building. After
the corresponding procedures of qualification inspection, accreditation and publicity, the winning bidder was
determined to be Guangdong Huajian Enterprise Group Co., Ltd. (hereinafter referred to as "Huajian Group"). On
10 October 2022, the Board of Directors of the Company reviewed and approved the Proposal on a Related-Party
Transaction Due to a Call for Public Bids. It agreed to entrust the properties encompassing Kelian Building
Industrial (R&D Centre) (located in Building 1), commercial property (service-oriented apartments), commercial
property (shops), and part of the underground parking lot, 70,340.04 square meters in total, to Huajian Group for
operation and investment attraction. After the Company hands the foregoing properties to Huajian Group, the
latter shall pay RMB300 million to the Company within the operation and investment attraction period (ten years)
as the minimum guaranteed rental income. For details, see the Announcement on a Related-Party Transaction Due
to a Call for Public Bids dated 11 October 2022 disclosed by the Company on www.cninfo.com.cn. On 21 April
2023, Foshan Kelian and Huajian Group entered into the Contract on the Operation and Investment Attraction
Services for Kelian Building.
Projects that generated a gain/loss that accounted for 10% or more of the Company’s gross profit in the
Reporting Period:
□ Applicable Not applicable
59
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
There is no entrustment project that generated a gain/loss that accounted for 10% or more of the Company’s
gross profit in the Reporting Period.
(2) Contracting
□ Applicable Not applicable
No such cases in the Reporting Period.
(3) Leases
The Company was not involved in any significant lease in the Reporting Period.
2. Major guarantees
Applicable □ Not applicable
Unit: RMB'0,000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 0 the end of the 0
Reporting Period Reporting Period
(A3) (A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosu
re date Guarante
Actual
of the Line of Actual Type of Counter Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 0 the end of the 0
Reporting Period Reporting Period
(B3) (B4)
Guarantees provided between subsidiaries
Disclosu
re date Guarante
Actual Counter
of the Line of Actual Type of Term of Having e for a
guarante Collatera
Obligor guarante guarante occurren guarante guarante guarante expired related
e l (if any)
e line e ce date e e (if any) e or not party or
amount
announc not
ement
Nanning 25 April
Liaowan 2 March 21 June 2022 -31
4,500 1,547.33 Secured Yes None No No
g Auto 2023 2023 Decemb
Lamp er 2025
60
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Co.,
Ltd.,
Liuzhou
Guige
Foreshin
e
Technol
ogy Co.,
Ltd.,
Liuzhou
Guige
Lighting
Technol
ogy Co.,
Ltd.
Nanning
Liaowan
g Auto
15 June
Lamp
2020 -15
Co.,
June
Ltd., 10
2 March 2023,
Chongqi 9,900 February 5,826.87 Secured Yes None No No
2023 25 May
ng 2023
2023 -24
Guinuo
May
Lighting
2024
Technol
ogy Co.,
Ltd.
Nanning
Liaowan
g Auto
Lamp
Co.,
Ltd.,
Liuzhou
Guige
24 April
Foreshin 24
2 March 2022 -31
e 9,600 March 9,600 Secured Yes None No No
2023 Decemb
Technol 2023
er 2025
ogy Co.,
Ltd.,
Liuzhou
Guige
Lighting
Technol
ogy Co.,
Ltd.
Total approved line Total actual amount
for such guarantees of such guarantees in
in the Reporting 24,000 the Reporting Period 16,974.2
Period (C1) (C2)
Total approved line Total actual balance
for such guarantees of such guarantees at
at the end of the 24,000 the end of the 16,974.2
Reporting Period Reporting Period
(C3) (C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total guarantee line Total actual
approved in the 24,000 guarantee amount in 16,974.2
61
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Reporting Period the Reporting Period
(A1+B1+C1) (A2+B2+C2)
Total actual
Total approved
guarantee balance at
guarantee line at the
24,000 the end of the 16,974.2
end of the Reporting
Reporting Period
Period (A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
as % of the Company’s net assets 3.29%
Compound guarantees:
None.
Note:
Chongqing Guinuo Lighting Technology Co., Ltd. (referred to as “Chongqing Guinuo”), Liuzhou Guige
Foreshine Technology Co., Ltd. (referred to as “Liuzhou Foreshine”), and Liuzhou Guige Lighting Technology
Co., Ltd. (referred to as “Liuzhou Lighting”) are all wholly-owned subsidiaries of Nanning Liaowang Auto
Lamp Co., Ltd. (referred to as “Nanning Liaowang”). As of 30 June 2023, guarantees between Nanning
Liaowang and its subsidiaries and collaterals are set out in “3. Other” under “XIV Commitments and
Contingencies” in Part X of this Report.
3. Cash Entrusted for Wealth Management
Applicable □ Not applicable
Unit: RMB’0,000
Provision for
Unrecovered impairment on
Type Funding source Amount Undue amount
overdue amount unrecovered
overdue amount
Bank financial
products
Self-owned funds 24,000 8,000 0 0
Total 24,000 8,000 0 0
High-risk wealth management transactions with a significant single amount, or with low security and low
liquidity:
Applicable □ Not applicable
Unit: RMB'0,000
Inde
x to
trans
Typ Actu Pres actio
Ann Allo
e of al Rec crib Plan n
ualiz wan
weal Dete Exp gain eipt/ ed for sum
Sour ed ce
Typ th Begi Use rmin ecte /loss pay proc mor mar
ce Endi yiel for
Trus e of man Prin nnin of atio d in men edur e y
of ng d imp
tee trust age cipal g prin n of yiel Rep t of e trans and
prin date rate airm
ee men date cipal yiel d (if ortin such exec actio othe
cipal for ent
t d any) g gain uted n or r
refer (if
prod Peri /loss or not infor
ence any)
uct od not mati
on
(if
any)
Self-
Fosh Ban Stru 4,00 30 4 Othe Subj 2.98 57.0 56.0 To Inco Ann
own Yes
an k ctur 0 Dec July r ect % 9 9 be mpli ounc
ed
62
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
bran ed fund emb 202 to recei ance eme
ch depo s er 3 actu ved with nt
of sit 202 al pres No.
Ban 2 inve crib 202
k of stme ed 3-
Chin nt appr 007
a peri oval on
od proc Entr
edur ustm
e ent
of
Som
e
Idle
Fun
ds
for
Wea
lth
Man
age
men
t on
http:
//w
ww.
cnin
fo.c
om.
cn/
Ann
ounc
eme
nt
No.
202
3-
007
Inco on
Subj mpli Entr
Fosh
ect ance ustm
an
6 to with ent
bran Stru Self- 9
Sept actu To pres of
ch ctur own Mar
Ban 4,00 emb Othe al 3.15 58.6 36.7 be crib Som
of ed ed ch Yes
k 0 er r inve % 1 5 recei ed e
Ban depo fund 202
s 202 stme ved appr Idle
k of sit 3
3 nt oval Fun
Chin
peri proc ds
a
od edur for
e Wea
lth
Man
age
men
t on
http:
//w
ww.
63
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
cnin
fo.c
om.
cn/
8,00 115. 92.8
Total -- -- -- -- -- -- -- 0 -- -- --
0 7 4
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable Not applicable
4. Other Significant Contracts
□ Applicable Not applicable
No such cases in the Reporting Period.
XIII Other Significant Events
Applicable □ Not applicable
Share offering to specific parties
The Company intends to raise gross proceeds of no more than RMB1,094.5518 million through an offering of
A-stock shares to specific parties. The amount exclusive of the issuance costs will be used to invest in the FSL
automation and digital transformation construction project, the FSL Hainan Industrial Park Phase I, the
intelligent street light construction project, the automotive lamp module production and construction project,
and the R&D centre construction project. The said share offering plan has been approved at the 39th Meeting of
the Ninth Board of Directors and a general meeting of shareholders on 14 March 2023 and 31 March 2023,
respectively, as well as by the Public Offering Review Centre of the Shenzhen Stock Exchange on 17 July 2023.
The plan is still subject to final approval of the CSRC before implementation. And there is uncertainty with
respect to the said approval and the timing.
XIV Significant Events of Subsidiaries
Applicable □ Not applicable
1. Expropriation of land and above-ground housing of Nanjing Fozhao
The Company held the 24th Meeting of the Ninth Board of Directors on 15 December 2021, where the Proposal
on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary Nanjing Fozhao Lighting
Equipment Manufacturing Co., Ltd., was deliberated and adopted. The Board of Directors agreed that Nanjing
Lishui District People's Government expropriates the land use rights and above-land housing of Nanjing Fozhao
64
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Lighting Equipment Manufacturing Co., Ltd. (hereinafter referred to as "Nanjing Fozhao"), a wholly-owned
subsidiary of the Company, at a compensation amount of RMB183,855,895, and Nanjing Fozhao signed an
expropriation and compensation agreement with Lishui County House Dismantling, Moving & Resettling
Development Co., Ltd., the implementing unit of the housing expropriation. As of 30 June 2023, 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.
2. Cancellation of FSL LIGHTING GmbH
On 22 October 2021, FSL held an office meeting of the general manager, where the proposal for cancellation of its
wholly-owned subsidiary FSL LIGHTING GMBH was deliberated and adopted. As of the date of this Report, the
Company is handling the relevant procedures for liquidation and cancellation.
65
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares as
Shares as
dividend
dividend
Percentag New converted Percentag
Shares converted Other Subtotal Shares
e (%) issues from e (%)
from
capital
profit
reserves
1.
10,753,65 10,753,65
Restricted 0.79% 0.79%
8 8
shares
1.1
Shares
held by
the state
1.2
Shares
held by
1 0.00% 1 0.00%
state-own
legal
person
1.3
Shares
held by
1,826,025 0.13% 1,826,025 0.13%
other
domestic
investors
Among
which:
shares
held by 1,338,434 0.10% 1,338,434 0.10%
domestic
legal
person
Shares
held by
domestic 487,591 0.04% 487,591 0.04%
natural
person
1.4
Oversea
8,927,632 0.66% 8,927,632 0.66%
sharehold
ings
Among
66
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
which:
shares
held by
oversea
legal
person
Shares
held by
oversea 8,927,632 0.66% 8,927,632 0.66%
natural
person
2.
1,351,240 1,351,240
Unrestrict 99.21% 99.21%
,989 ,989
ed shares
2.1 RMB
1,056,501 1,056,501
ordinary 77.57% 77.57%
,050 ,050
shares
2.2
Domestic
294,739,9 294,739,9
ally listed 21.64% 21.64%
39 39
foreign
shares
2.3
Oversea
listed
foreign
shares
2.4 Other
3. Total 1,361,994 1,361,994
100.00% 100.00%
shares ,647 ,647
Reasons for share changes:
□Applicable Not applicable
Approval of share changes:
□Applicable Not applicable
Transfer of share ownership:
□Applicable Not applicable
Progress on any share repurchase:
□Applicable Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable Not applicable
67
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to the
Company’s ordinary shareholders and other financial indicators of the prior year and the prior accounting
period, respectively:
□Applicable Not applicable
Other information that the Company considers necessary or is required by the securities regulator to be
disclosed:
□Applicable Not applicable
2. Changes in Restricted Shares
□Applicable Not applicable
II. Issuance and Listing of Securities
□Applicable Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
Total number of ordinary Total number of preference shareholders
shareholders at the period- 66,019 with resumed voting rights at the period- 0
end end (if any) (see Note 8)
Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders
Total Increase/de Shares in pledge, marked
Non-
Shareholdi ordinary crease in Restricted or frozen
Name of Nature of restricted
ng shares held the ordinary
shareholder shareholder ordinary
percentage at the Reporting shares held Status Shares
shares held
period-end Period
Hong Kong
Wah Shing
Foreign 188,496,43 188,496,43
Holding 13.84%
corporation 0 0
Company
Limited
Prosperity
Lamps & Foreign 146,934,85 146,934,85
Component corporation 10.79%
7 7
s Limited
Guangdong
Electronics State-
122,694,24 122,694,24
Informatio owned 9.01%
n Industry corporation 6 6
Group Ltd.
Guangdong
Rising State-
Holdings owned 6.10% 83,130,898 83,130,898
Group Co., corporation
Ltd.
Essence
Internation Foreign
al corporation 2.78% 37,896,494 1,758,035 37,896,494
Securities
68
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(Hong
Kong)
Limited
Central
Huijin State-
Asset owned 2.43% 33,161,800 33,161,800
Manageme corporation
nt Co., Ltd.
Rising
Investment Foreign
Developme corporation 1.87% 25,482,252 25,482,252
nt Limited
Zhuang Foreign
Jianyi individual 0.87% 11,903,509 8,927,632 2,975,877
Zhang Domestic
0.86% 11,700,000 999,950 11,700,000
Shaowu individual
Hong Kong
Securities
Foreign
Clearing corporation 0.68% 9,296,300 9,296,300 9,296,300
Company
Limited
Strategic investors or
general corporations
becoming top-ten
Naught
shareholders due to
placing of new shares (if
any) (see Note 3)
Among the top 10 shareholders, Hongkong Wah Shing Holding Company Limited, Guangdong
Rising Holdings Group Co., Ltd., Guangdong Electronics Information Industry Group Ltd. and
Related or acting-in-
Rising Investment Development Limited are acting-in-concert parties; and Prosperity Lamps &
concert parties among the
Components Limited and Zhuang Jianyi are acting-in-concert parties. Apart from that, it is unknown
shareholders above
whether there is among the top 10 shareholders any other related parties or acting-in-concert parties
as defined in the Administrative Measures for the Acquisition of Listed Companies.
Above shareholders
involved in
entrusting/being entrusted Naught
with voting rights and
giving up voting rights
Special account for share
repurchases (if any) As of the period-end, the Company had 13,000,000 A-shares of it in its special account for share
among the top 10 repurchases, accounting for 0.95% of the Company’s total share capital.
shareholders (see note 11)
Top 10 unrestricted ordinary shareholders
Type of shares
Name of shareholder Unrestricted ordinary shares at the period-end
Type Shares
RMB-
Hong Kong Wah Shing
denominate 188,496,43
Holding Company 188,496,430 d ordinary 0
Limited
stock
RMB-
Prosperity Lamps & denominate 146,934,85
Components Limited 146,934,857 d ordinary 7
stock
RMB-
Guangdong Electronics
denominate 122,694,24
Information Industry 122,694,246 d ordinary 6
Group Ltd.
stock
RMB-
Guangdong Rising denominate
Holdings Group Co., Ltd. 83,130,898 d ordinary 83,130,898
stock
Essence International Domestical
Securities (Hong Kong) 37,896,494 37,896,494
ly listed
69
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Limited foreign
stock
RMB-
Central Huijin Asset denominate
Management Co., Ltd. 33,161,800 d ordinary 33,161,800
stock
Domestical
Rising Investment ly listed
Development Limited 25,482,252 25,482,252
foreign
stock
RMB-
denominate
Zhang Shaowu 11,700,000 d ordinary 11,700,000
stock
RMB-
Hong Kong Securities
denominate
Clearing Company 9,296,300 d ordinary 9,296,300
Limited stock
Domestical
China Merchants
ly listed
Securities (HK) Co., 9,196,898 9,196,898
Limited foreign
stock
Related or acting-in-
concert parties among the Among the top 10 unrestricted ordinary shareholders, Hong Kong Wah Shing Holding Company
top 10 unrestricted Limited, Guangdong Rising Holdings Group Co., Ltd., Guangdong Electronics Information Industry
ordinary shareholders, as Group Ltd., and Rising Investment Development Limited are acting-in-concert parties; Apart from
well as between the top 10 that, it is unknown whether there is among the top 10 shareholders any other related parties or
unrestricted ordinary acting-in-concert parties as defined in the Administrative Measures for the Acquisition of Listed
shareholders and the top Companies.
10 ordinary shareholders
Top 10 ordinary
shareholders involved in
None
securities margin trading
(if any) (see note 4)
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary
shareholders of the Company conducted any promissory repo during the Reporting Period.
□Yes No
No such cases in the Reporting Period.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
□Applicable Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in the Reporting
Period. See the 2022 Annual Report for more details.
V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
70
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
□Applicable Not applicable
No such cases in the Reporting Period.
Change of the actual controller in the Reporting Period
□Applicable Not applicable
No such cases in the Reporting Period.
71
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part VIII Preference Shares
□Applicable Not applicable
No preference shares in the Reporting Period.
72
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part IX Bonds
□Applicable Not applicable
73
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Part X Financial Statements
I Auditor’s Report
Whether the interim report has been audited?
□Yes No
The interim report of the Company has not been audited.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 June 2023
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 2,518,177,714.99 2,484,508,907.43
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 81,882,834.67 261,541,896.45
Derivative financial assets
Notes receivable 811,254,925.34 821,537,774.07
Accounts receivable 2,347,099,724.92 1,920,770,941.76
Accounts receivable financing 444,845,917.62 569,868,831.79
Prepayments 41,451,120.26 45,526,548.93
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 150,403,234.75 32,902,865.98
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 1,646,526,195.36 2,031,637,401.87
Contract assets 5,153,358.98 5,466,875.07
Assets held for sale 17,147,339.84 17,147,339.84
Current portion of non-current assets
Other current assets 173,015,911.64 79,438,576.89
Total current assets 8,236,958,278.37 8,270,347,960.08
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 183,117,824.19 181,931,792.66
Investments in other equity
instruments 801,753,621.52 864,191,346.40
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Other non-current financial assets
Investment property 43,366,716.49 44,611,882.44
Fixed assets 3,365,628,092.29 3,508,094,282.41
Construction in progress 1,377,403,873.06 1,282,780,335.14
Productive living assets
Oil and gas assets
Right-of-use assets 9,832,756.11 13,047,727.73
Intangible assets 337,814,725.13 340,166,852.37
Development costs
Goodwill 421,831,593.46 421,831,593.46
Long-term prepaid expense 171,879,033.97 190,126,627.91
Deferred income tax assets 94,138,960.42 90,186,993.64
Other non-current assets 76,218,347.75 81,543,512.85
Total non-current assets 6,882,985,544.39 7,018,512,947.01
Total assets 15,119,943,822.76 15,288,860,907.09
Current liabilities:
Short-term borrowings 190,926,526.02 157,715,359.35
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities 23,741,475.00 4,679,000.00
Derivative financial liabilities
Notes payable 1,853,353,460.65 1,975,743,568.71
Accounts payable 2,437,263,015.38 2,513,177,458.14
Advances from customers 196,200.00 2,532,442.44
Contract liabilities 131,700,995.68 125,143,161.61
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 162,300,069.89 173,034,152.18
Taxes payable 78,233,220.74 64,295,552.10
Other payables 645,736,648.53 440,230,081.05
Including: Interest payable
Dividends payable 134,915,110.77 15,646.07
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities 63,473,244.52 65,540,510.67
Other current liabilities 136,138,329.46 100,192,681.00
Total current liabilities 5,723,063,185.87 5,622,283,967.25
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 493,362,857.84 747,931,023.71
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 6,477,932.48 7,055,542.18
Long-term payables
Long-term employee benefits payable
Provisions 9,518,319.01 9,587,043.31
Deferred income 80,860,487.74 97,078,233.43
Deferred income tax liabilities 196,099,462.78 204,371,264.18
Other non-current liabilities 206,307.09 308,780.61
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Total non-current liabilities 786,525,366.94 1,066,331,887.42
Total liabilities 6,509,588,552.81 6,688,615,854.67
Owners’ equity:
Share capital 1,361,994,647.00 1,361,994,647.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 7,245,971.54 7,245,971.54
Less: Treasury stock 82,165,144.15 82,165,144.15
Other comprehensive income 447,201,368.35 498,141,018.70
Specific reserve
Surplus reserves 91,359,027.15 91,359,027.15
General reserve
Retained earnings 3,330,471,596.34 3,296,435,828.50
Total equity attributable to owners of the
Company as the parent 5,156,107,466.23 5,173,011,348.74
Non-controlling interests 3,454,247,803.72 3,427,233,703.68
Total owners’ equity 8,610,355,269.95 8,600,245,052.42
Total liabilities and owners’ equity 15,119,943,822.76 15,288,860,907.09
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 2023 1 January 2023
Current assets:
Monetary assets 681,210,754.40 616,301,656.56
Held-for-trading financial assets 200,565,014.22
Derivative financial assets
Notes receivable 110,657,146.53 130,473,889.36
Accounts receivable 1,086,975,621.84 914,875,676.00
Accounts receivable financing 60,666,671.99 14,127,710.41
Prepayments 7,737,747.01 13,129,004.94
Other receivables 978,598,589.43 511,036,345.72
Including: Interest receivable
Dividends receivable
Inventories 306,898,828.61 475,047,674.61
Contract assets 5,153,358.98 5,466,875.07
Assets held for sale
Current portion of non-current assets
Other current assets 105,373,508.94 9,844,377.83
Total current assets 3,343,272,227.73 2,890,868,224.72
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2,506,749,062.60 2,505,563,031.07
Investments in other equity
instruments 761,675,052.72 823,131,485.48
Other non-current financial assets
Investment property 39,800,117.43 40,982,686.40
Fixed assets 555,297,116.18 548,743,031.51
Construction in progress 220,291,866.58 187,318,584.50
Productive living assets
76
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Oil and gas assets
Right-of-use assets 5,813,183.28 6,963,639.23
Intangible assets 95,701,146.70 94,698,330.35
Development costs
Goodwill
Long-term prepaid expense 30,215,256.11 37,118,287.24
Deferred income tax assets 37,984,595.01 31,202,848.92
Other non-current assets 45,361,377.95 48,873,160.34
Total non-current assets 4,298,888,774.56 4,324,595,085.04
Total assets 7,642,161,002.29 7,215,463,309.76
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities 23,741,475.00 4,679,000.00
Derivative financial liabilities
Notes payable 795,588,488.59 826,037,810.34
Accounts payable 1,285,429,617.40 788,288,700.08
Advances from customers 2,285,714.30
Contract liabilities 73,386,563.67 47,498,783.11
Employee benefits payable 60,341,858.15 49,182,531.44
Taxes payable 30,073,622.90 9,700,312.91
Other payables 417,929,824.40 202,509,326.09
Including: Interest payable
Dividends payable 134,899,464.70
Liabilities directly associated with
assets held for sale
Current portion of non-current
liabilities 1,427,782.66 1,881,117.79
Other current liabilities 74,912,121.36 88,215,663.53
Total current liabilities 2,762,831,354.13 2,020,278,959.59
Non-current liabilities:
Long-term borrowings 182,912,120.75
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 4,385,400.62 5,082,521.44
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 78,774,921.62 88,165,954.92
Other non-current liabilities
Total non-current liabilities 83,160,322.24 276,160,597.11
Total liabilities 2,845,991,676.37 2,296,439,556.70
Owners’ equity:
Share capital 1,361,994,647.00 1,361,994,647.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 7,426,635.62 7,426,635.62
Less: Treasury stock 82,165,144.15 82,165,144.15
Other comprehensive income 446,550,316.94 498,788,284.79
Specific reserve
Surplus reserves 322,663,096.39 322,663,096.39
Retained earnings 2,739,699,774.12 2,810,316,233.41
Total owners’ equity 4,796,169,325.92 4,919,023,753.06
Total liabilities and owners’ equity 7,642,161,002.29 7,215,463,309.76
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
77
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Person-in-charge of the Company’s accounting organ: Liang Yuefei
3. Consolidated Income Statement
Unit: RMB
Item H1 2023 H1 2022
1. Revenue 4,566,062,729.02 4,433,331,393.42
Including: Operating revenue 4,566,062,729.02 4,433,331,393.42
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 4,299,771,626.28 4,165,508,040.62
Including: Cost of sales 3,733,474,828.88 3,654,061,368.03
Interest expense
Handling charge and
commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 37,443,299.13 25,534,415.81
Selling expense 131,921,130.00 111,269,248.57
Administrative expense 200,946,085.42 186,307,739.44
R&D expense 226,148,905.26 212,572,992.98
Finance costs -30,162,622.41 -24,237,724.21
Including: Interest expense 14,255,244.44 7,068,335.84
Interest income 24,520,047.73 13,000,154.06
Add: Other income 27,389,992.05 40,797,290.95
Return on investment (“-” for loss) 22,449,570.63 19,613,744.86
Including: Share of profit or loss
of joint ventures and associates 1,186,031.53 650,457.40
Income from the derecognition
of financial assets at amortized cost (“-”
for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
for loss) -22,153,522.56 -10,766,595.97
Credit impairment loss (“-” for
loss) -18,947,421.03 -10,246,248.56
Asset impairment loss (“-” for
loss) -16,390,888.73 -23,341,049.45
Asset disposal income (“-” for
loss) 110,475.52 82,362.19
3. Operating profit (“-” for loss) 258,749,308.62 283,962,856.82
Add: Non-operating income 2,440,914.48 8,990,018.61
Less: Non-operating expense 4,780,570.32 7,994,166.62
4. Profit before tax (“-” for loss) 256,409,652.78 284,958,708.81
Less: Income tax expense 31,304,364.49 41,412,077.91
5. Net profit (“-” for net loss) 225,105,288.29 243,546,630.90
5.1 By operating continuity
5.1.1 Net profit from continuing
operations (“-” for net loss) 225,105,288.29 243,546,630.90
5.1.2 Net profit from discontinued
78
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 168,935,232.54 163,528,019.78
parent (“-” for net loss)
5.2.1 Net profit attributable to non-
controlling interests (“-” for net loss) 56,170,055.75 80,018,611.12
6. Other comprehensive income, net of
tax -49,800,869.38 -128,025,149.83
Attributable to owners of the
Company as the parent -50,939,650.35 -128,036,703.73
6.1 Items that will not be
reclassified to profit or loss -52,237,967.85 -128,132,332.34
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
investments in other equity instruments -52,237,967.85 -128,132,332.34
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
profit or loss 1,298,317.50 95,628.61
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for investments in other debt
obligations
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from the
translation of foreign currency- 1,298,317.50 95,628.61
denominated financial statements
6.2.7 Other
Attributable to non-controlling
interests 1,138,780.97 11,553.90
7. Total comprehensive income 175,304,418.91 115,521,481.07
Attributable to owners of the
Company as the parent 117,995,582.19 35,491,316.05
Attributable to non-controlling
interests 57,308,836.72 80,030,165.02
8. Earnings per share
8.1 Basic earnings per share 0.1252 0.1212
8.2 Diluted earnings per share 0.1240 0.1201
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees before
the combinations was RMB0.00, with the amount for the same period of last year being RMB 0.00.
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Operating revenue 1,767,119,810.22 1,809,179,992.86
Less: Cost of sales 1,475,930,147.80 1,476,364,107.19
Taxes and surcharges 14,118,151.89 10,450,725.11
Selling expense 76,993,414.88 60,671,112.08
Administrative expense 77,700,935.31 65,659,865.20
R&D expense 72,152,520.98 80,982,862.27
Finance costs -23,728,727.28 -11,830,352.67
Including: Interest expense 3,685,018.81 4,427,927.34
Interest income 7,478,589.21 3,313,721.07
Add: Other income 1,095,070.80 5,635,099.60
Return on investment (“-” for loss) 27,748,972.71 21,542,755.12
Including: Share of profit or loss
of joint ventures and associates 1,186,031.53 650,457.40
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 (“-”
for loss) -23,059,475.00 -10,811,400.00
Credit impairment loss (“-” for
loss) -9,630,073.47 -9,623,686.25
Asset impairment loss (“-” for
loss) -1,814,506.09 -6,552,785.39
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 68,293,355.59 127,071,656.76
Add: Non-operating income 36,865.24 -667,333.19
Less: Non-operating expense 745,254.33 4,998,457.51
3. Profit before tax (“-” for loss) 67,584,966.50 121,405,866.06
Less: Income tax expense 3,301,961.09 15,251,135.30
4. Net profit (“-” for net loss) 64,283,005.41 106,154,730.76
4.1 Net profit from continuing
operations (“-” for net loss) 64,283,005.41 106,154,730.76
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income, net of
tax -52,237,967.85 -129,543,043.34
5.1 Items that will not be reclassified
to profit or loss -52,237,967.85 -129,543,043.34
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
investments in other equity instruments -52,237,967.85 -129,543,043.34
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
80
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 12,045,037.56 -23,388,312.58
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 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services 3,850,932,261.31 4,073,694,274.24
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest, handling charges and
commissions received
Net increase in interbank loans obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 100,132,103.39 145,624,893.13
Cash generated from other operating
activities 141,107,593.13 127,521,912.96
Subtotal of cash generated from
operating activities 4,092,171,957.83 4,346,841,080.33
Payments for commodities and services 2,663,359,134.35 3,081,521,621.90
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 687,281,073.20 732,832,071.44
Taxes paid 204,166,141.70 184,736,431.09
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Cash used in other operating activities 149,496,551.38 170,648,464.89
Subtotal of cash used in operating
activities 3,704,302,900.63 4,169,738,589.32
Net cash generated from/used in
operating activities 387,869,057.20 177,102,491.01
2. Cash flows from investing activities:
Proceeds from disinvestment 190,981,292.12 502,992,240.66
Return on investment 22,659,407.23 21,038,833.14
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 1,402,000.00 232,233.41
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
investing activities 215,042,699.35 524,263,307.21
Payments for the acquisition of fixed
assets, intangible assets and other long- 109,147,876.06 331,071,942.08
lived assets
Payments for investments 110,000,000.00 71,695,763.31
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 360,759.99
Subtotal of cash used in investing
activities 219,508,636.05 402,767,705.39
Net cash generated from/used in
investing activities -4,465,936.70 121,495,601.82
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised 126,598,725.21 687,436,000.00
Cash generated from other financing
activities 381,437.71 53,126,214.00
Subtotal of cash generated from
financing activities 126,980,162.92 740,562,214.00
Repayment of borrowings 323,893,000.00 342,313,038.15
Interest and dividends paid 160,367,407.65 159,780,554.62
Including: Dividends paid by
subsidiaries to non-controlling interests 30,294,736.68 24,282,863.70
Cash used in other financing activities 2,303,428.02 1,062,094,428.42
Subtotal of cash used in financing
activities 486,563,835.67 1,564,188,021.19
Net cash generated from/used in
financing activities -359,583,672.75 -823,625,807.19
4. Effect of foreign exchange rates
changes on cash and cash equivalents 4,930,576.64 20,245,617.53
5. Net increase in cash and cash
equivalents 28,750,024.39 -504,782,096.83
Add: Cash and cash equivalents,
beginning of the period 1,945,971,307.26 1,940,209,052.92
6. Cash and cash equivalents, end of the
period 1,974,721,331.65 1,435,426,956.09
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities
and rendering of services 1,496,145,578.96 1,647,925,557.33
Tax rebates 53,498,627.75 66,177,691.70
Cash generated from other operating
activities 33,751,986.68 49,023,640.18
Subtotal of cash generated from
operating activities 1,583,396,193.39 1,763,126,889.21
Payments for commodities and services 1,035,027,746.06 1,182,528,555.48
Cash paid to and for employees 232,728,601.56 279,898,010.00
Taxes paid 35,941,134.26 111,471,325.43
Cash used in other operating activities 56,041,082.96 63,008,054.83
Subtotal of cash used in operating
activities 1,359,738,564.84 1,636,905,945.74
Net cash generated from/used in
operating activities 223,657,628.55 126,220,943.47
2. Cash flows from investing activities:
Proceeds from disinvestment 100,000,000.00 492,992,240.66
Return on investment 27,483,617.76 23,125,665.53
Net proceeds from the disposal of fixed
assets, intangible assets and other long- 42,771.45
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
investing activities 127,483,617.76 516,160,677.64
Payments for the acquisition of fixed
assets, intangible assets and other long- 11,143,401.81 59,178,832.68
lived assets
Payments for investments 1,166,664,444.95
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
activities 11,143,401.81 1,225,843,277.63
Net cash generated from/used in
investing activities 116,340,215.95 -709,682,599.99
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
financing activities 382,336,000.00
Repayment of borrowings 178,893,000.00 197,016,000.00
Interest and dividends paid 119,898,677.90 135,641,014.35
Cash used in other financing activities
Subtotal of cash used in financing
activities 298,791,677.90 332,657,014.35
Net cash generated from/used in
financing activities -298,791,677.90 49,678,985.65
4. Effect of foreign exchange rates
changes on cash and cash equivalents 1,541,521.95 15,401,360.65
5. Net increase in cash and cash
equivalents 42,747,688.55 -518,381,310.22
Add: Cash and cash equivalents, 461,062,144.20 861,826,014.29
83
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
beginning of the period
6. Cash and cash equivalents, end of the
period 503,809,832.75 343,444,704.07
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 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1,3 3,2 5,1 3,4 8,6
82, 498 91,
1. Balance as 61, 7,2 96, 73, 27, 00,
165 ,14 359
at the end of 994 45, 490 066 280 346
the period of ,14 1,0 ,02
,64 971 ,57 ,09 ,73 ,83
prior year 4.1 18. 7.1
7.0 .54 5.5 5.7 5.8 1.6
5 70 5
0 2 6 5 1
Add: -
- - -
Adjustment 101
54, 54, 47,
for change in ,77
accounting 747 747 032
9.1
policy .02 .02 .17
9
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as 1,3 3,2 5,1 3,4 8,6
82, 498 91,
at the 61, 7,2 96, 73, 27, 00,
165 ,14 359
beginning of 994 45, 435 011 233 245
the ,14 1,0 ,02
,64 971 ,82 ,34 ,70 ,05
Reporting 4.1 18. 7.1
7.0 .54 8.5 8.7 3.6 2.4
Period 5 70 5
0 0 4 8 2
- -
3. Increase/ 34, 27, 10,
50, 16,
decrease in 035 014 110
939 903
the period (“- ,76 ,10 ,21
” for ,65 ,88
7.8 0.0 7.5
decrease) 0.3 2.5
4 4 3
5 1
3.1 Total - 168 117 57, 175
comprehensi 50, ,93 ,99 308 ,30
84
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
ve income 939 5,2 5,5 ,83 4,4
,65 32. 82. 6.7 18.
0.3 54 19 2 91
5
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- - - -
134 134 30, 165
3.3 Profit ,89 ,89 294 ,19
distribution 9,4 9,4 ,73 4,2
64. 64. 6.6 01.
70 70 8 38
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
- - - -
3.3.3 134 134 30, 165
Appropriatio
,89 ,89 294 ,19
n to owners
(or 9,4 9,4 ,73 4,2
shareholders) 64. 64. 6.6 01.
70 70 8 38
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
85
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
1,3 3,3 5,1 3,4 8,6
4. Balance as 82, 447 91,
61, 7,2 30, 56, 54, 10,
at the end of 165 ,20 359
994 45, 471 107 247 355
the ,14 1,3 ,02
Reporting ,64 971 ,59 ,46 ,80 ,26
4.1 68. 7.1
Period 7.0 .54 6.3 6.2 3.7 9.9
5 35 5
0 4 3 2 5
H1 2022
Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent No
Other equity Oth n-
instruments Less er con Total
Item Shar Capi : com Spe Surp Gen Reta trol owne
Pref Perp lin rs’
e tal Trea preh cific lus eral ined Oth Subt
erre etua g equit
capi Oth rese sury ensi rese rese rese earn er otal
d l int y
tal er rves stoc ve rve rves rve ings
shar bon ere
k inco
es ds sts
me
3,
1,3 1,0 3,1 7,0 54
250 982 741 10,5
1. Balance as 99, 51, 11, 36, 3,
,60 ,98 ,35 79,8
at the end of 346 158 864 108 74
the period of 0,8 7,4 3,3 49,9
,15 ,61 ,07 ,77 1,
prior year 74. 54. 47. 47.7
4.0 4.1 6.8 2.5 17
54 08 96 5
0 8 6 4 5.
21
Add: 18, 18, 16 35,1
Adjustment
918 918 ,2 70.5
for change in
accounting .22 .22 52 1
86
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
policy .2
9
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
3,
2. Balance as 1,3 1,0 3,1 7,0 54
250 982 741 10,5
at the 99, 51, 11, 36, 3,
,60 ,98 ,35 79,8
beginning of 346 158 882 127 75
0,8 7,4 3,3 85,1
the ,15 ,61 ,99 ,69 7,
Reporting 74. 54. 47. 18.2
4.0 4.1 5.0 0.7 42
Period 54 08 96 6
0 8 8 6 7.
50
- - 55
- - - -
3. Increase/ 1,0 129 1,6 ,7 -
37, 168 228 604
decrease in 43, ,54 16, 47 1,56
351 ,43 ,95 ,26
the period (“- 912 5,7 506 ,3 0,75
” for ,50 5,7 3,9 9,6
,64 79. ,26 01 8,96
decrease) 7.0 30. 27. 97.
2.6 27 5.2 .3 3.95
0 39 92 37
4 7 2
80
-
163 35, ,0
128 115,
3.1 Total ,52 491 30
,03 521,
comprehensi 8,0 ,31 ,1
ve income 6,7 481.
19. 6.0 65
03. 07
78 5 .0
73 2
- -
- - -
1,0 1,5 -
3.2 Capital 37, 168 604
43, 17, 1,51
increased 351 ,43 ,26
912 098 7,09
and reduced ,50 5,7 9,6
by owners ,64 ,11 8,11
7.0 30. 97.
2.6 6.6 6.62
0 39 37
4 2
- - -
3.2.1 -
37, 168 126
Ordinary 4,8
351 ,43 ,25
shares 25,
increased by ,50 5,7 8,2
948
owners 7.0 30. 74.
.60
0 39 79
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
87
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
equity
- -
-
1,0 1,5 -
478
39, 17, 1,51
3.2.4 ,01
086 098 7,09
Other 1,4
,69 ,11 8,11
22.
4.0 6.6 6.62
58
4 2
-
- - 24
-
134 134 ,2
159,
3.3 Profit ,89 ,89 82
distribution 182,
9,4 9,4 ,8
328.
64. 64. 63
40
70 70 .7
0
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
-
- - 24
3.3.3 -
134 134 ,2
Appropriatio 159,
,89 ,89 82
n to owners 182,
(or 9,4 9,4 ,8
328.
shareholders) 64. 64. 63
40
70 70 .7
0
3.3.4
Other
-
3.4 100
100
Transfers ,91
,91
within 7,2
owners’ 7,2
24.
equity 24.
19
19
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
88
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
retained
earnings
3.4.5 -
Other 100
100
comprehensi ,91
,91
ve income 7,2
transferred to 7,2
24.
retained 24.
19
earnings 19
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
3,
1,3 3,2 5,4 59
4. Balance as 82, 754 137
61, 7,2 41, 19, 9, 9,01
at the end of 165 ,03 ,08
994 45, 428 621 50 9,12
the ,14 3,5 3,6
Reporting ,64 971 ,77 ,42 4, 6,15
4.1 26. 50.
Period 7.0 .54 4.3 5.4 72 4.31
5 16 59
0 5 9 8.
82
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 2023
Unit: RMB
H1 2023
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 1,361 2,810 4,919
7,426 82,16 498,7 322,6
at the end of ,994, ,316, ,023,
the period of ,635. 5,144 88,28 63,09
647.0 233.4 753.0
prior year 62 .15 4.79 6.39
0 1 6
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as
1,361 7,426 82,16 498,7 322,6 2,810 4,919
at the
beginning of ,994, ,635. 5,144 88,28 63,09 ,316, ,023,
89
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
the 647.0 62 .15 4.79 6.39 233.4 753.0
Reporting 0 1 6
Period
3. Increase/ - - -
decrease in
52,23 70,61 122,8
the period (“-
” for 7,967 6,459 54,42
decrease) .85 .29 7.14
-
3.1 Total 64,28 12,04
52,23
comprehensi 3,005 5,037
ve income 7,967
.41 .56
.85
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
- -
3.3 Profit 134,8 134,8
distribution 99,46 99,46
4.70 4.70
3.3.1
Appropriatio
n to surplus
reserves
3.3.2 - -
Appropriatio
134,8 134,8
n to owners
(or 99,46 99,46
shareholders) 4.70 4.70
3.3.3
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
90
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
4. Balance as 1,361 2,739 4,796
at the end of 7,426 82,16 446,5 322,6
,994, ,699, ,169,
the ,635. 5,144 50,31 63,09
Reporting 647.0 774.1 325.9
62 .15 6.94 6.39
Period 0 2 2
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
22,56 250,6 984,6 741,3
at the end of ,346, ,229, ,592,
the period of 8,665 00,87 95,76 53,34
154.0 003.2 062.4
prior year .93 4.54 5.83 7.96
0 7 5
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
adjustments
2. Balance as
at the 1,399 22,56 250,6 984,6 741,3 2,738 5,635
91
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
beginning of ,346, 8,665 00,87 95,76 53,34 ,229, ,592,
the 154.0 .93 4.54 5.83 7.96 003.2 062.4
Reporting
0 7 5
Period
3. Increase/ - - - - - -
decrease in 72,17
37,35 4,825 168,4 230,4 440,7 472,8
the period (“- 2,490
” for 1,507 ,948. 35,73 60,26 91,83 21,33
.25
decrease) .00 60 0.39 7.53 0.02 2.51
- -
3.1 Total 106,1
129,5 23,38
comprehensi 54,73
ve income 43,04 8,312
0.76
3.34 .58
3.2 Capital - - - - -
increased 37,35 4,825 168,4 440,7 314,5
and reduced 1,507 ,948. 35,73 91,83 33,55
by owners .00 60 0.39 0.02 5.23
3.2.1 - - - -
Ordinary
37,35 4,825 168,4 126,2
shares
increased by 1,507 ,948. 35,73 58,27
owners .00 60 0.39 4.79
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
- -
3.2.4 314,5 314,5
Other 33,55 33,55
5.23 5.23
- -
3.3 Profit 134,8 134,8
distribution 99,46 99,46
4.70 4.70
3.3.1
Appropriatio
n to surplus
reserves
3.3.2 - -
Appropriatio
134,8 134,8
n to owners
(or 99,46 99,46
shareholders) 4.70 4.70
3.3.3
Other
3.4 -
Transfers 100,9
100,9
within 17,22
owners’ 17,22
4.19
equity 4.19
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
92
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 100,9
100,9
ve income 17,22
transferred to 17,22
4.19
retained 4.19
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
4. Balance as 1,361 2,810 5,162
at the end of 17,74 82,16 754,2 300,5
,994, ,401, ,770,
the 2,717 5,144 35,49 61,51
Reporting 647.0 493.5 729.9
.33 .15 8.30 7.94
Period 0 2 4
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
III Company profile
(I) Basic information
Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited
company jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick
Field, and Foshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval of
YGS (1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock
System of Guangdong Province and the Economic System Reform Commission of Guangdong Province, is an
enterprise with its shares held by both the corporate and the natural persons. As approved by China Securities
Regulatory Commission with Document (1993) No. 33, the Company publicly issued 19.3 million shares of
social public shares (A shares) to the public in October 1993, and was listed in Shenzhen Stock Exchange for
trade on 23 November 1993. The Company was approved to issue 50,000,000 B shares on 23 July 1995. And,
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
93
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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, totalling 37,351,507 shares, were all
deregistered. On 8 February 2022, it was confirmed by Shenzhen Branch of CSDC that the number of
repurchased public shares canceled this time was 37,351,507, accounting for 2.67% of the total share capital of
the Company before the cancellation, including 18,952,995 A shares and 18,398,512 B shares. Upon the
cancellation of the shares, the total share capital of the Company was changed from 1,399,346,154 shares to
1,361,994,647 shares. The Company's registered capital was changed to RMB1,361,994,647.00.
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,etc.
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 29 August 2023.
(II) Consolidation scope of financial statements
The consolidation scope of the financial statement during the Reporting Period including the Company and FSL
Chanchang Optoelectronics Co., Ltd. ( referred to as “Chanchang Company”), Foshan Taimei Times Lamps and
Lanterns Co., Ltd. ( referred to as “Taimei Company”), Nanjing Fozhao Lighting Components Co., Ltd.
( referred to as “Nanjing Fozhao”), FSL (Xinxiang) Lighting Co., Ltd. ( referred to as “Xinxiang Company”),
Foshan Fozhao Zhicheng Technology Co., Ltd. ( referred to as “Zhicheng Technology Company”), FSL Zhida
Electric Technology Co., Ltd ( referred to as “Zhida Company”), FSL LIGHTING GMBH (referred to as “FSL
Europe Company”), Foshan Hortilite Optoelectronics Co.,Ltd. (referred to as “Hortilite Company”), Fozhao
(Hainan) Technology Co., Ltd. (referred to as “Hainan Technology”), Foshan Kelian New Energy Technology
Co., Ltd. (referred to as “Foshan Kelian”), Nanning Liaowang Auto Lamp Co., Ltd. (referred to as “Nanning
Liaowang”), Foshan NationStar Optoelectronics Co., Ltd. (referred to as “NationStar Optoelectronics”) and
Foshan Sigma Venture Capital Co., Ltd. (referred to as “Sigma”) in total 13 subsidiaries and Liuzhou Guige
Lighting Technology Co., Ltd. (referred to as “Liuzhou Lighting”), Liuzhou Guige Foreshine Technology Co.,
Ltd. (referred to as “Liuzhou Foreshine”), Chongqing Guinuo Lighting Technology Co., Ltd. (referred to as
“Chongqing Guinuo”), Qingdao Guige Lighting Technology Co., Ltd. (referred to as “Qingdao Lighting”),
Indonesia Liaowang Auto Lamp Co., Ltd. (referred to as “Indonesia Liaowang”), Foshan NationStar Electronic
Manufacturing Co., Ltd. (referred to as “Guoxing Electronic”), Foshan NationStar Semiconductor Co., Ltd.
(referred to as “NationStar Semiconductor”), Nanyang Baoli Vanadium Industry Co., Ltd. (referred to as
“Nanyang Baoli”), Guangdong New Electronic Information Ltd. (referred to as “New Electronic”), NationStar
Optoelectronics (Germany) Co., Ltd. (referred to as “Germany NationStar”) and Guangdong Fenghua
Semiconductor Technology Co., Ltd. (referred to as “Fenghua Semiconductor”)in total 11 sub-subsidiary.
94
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Given that Nanyang Baoli Vanadium Industry Co., Ltd., a subsidiary of NationStar Optoelectronics, is in a state
of non-continuous operations, the Interim Report 2023 of Nanyang Baoli for the current period was formulated
at fair value or costs whichever was lower.
Compared with the beginning of the year, the consolidated scope of financial statements in this period does not
change. For details, see note IX "equity in other entities".
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company have been prepared in accordance with the "Accounting Standards for
Business Enterprises - Basic Standards" and various specific accounting standards, guidelines for the
application of accounting standards for business enterprises, interpretations of accounting standards for business
enterprises and other relevant regulations (hereinafter collectively referred to as "Accounting Standards for
Business Enterprises") issued by the Ministry of Finance, as well as the relevant provisions of "No. 15 of the
Rules Governing the Preparation of Information Disclosures by Companies Offering Securities to the Public -
General Provisions on Financial Reporting" of the China Securities Regulatory Commission.
2. Going Concern
The Company has the ability to continue as a going concern for at least 12 months from the end of the
Reporting Period and there are no material matters affecting its ability to continue as a going concern.
V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The following significant accounting policies and accounting estimates of the Company have been formulated
in accordance with ASBEs. Operations not mentioned are treated in accordance with the relevant accounting
policies in the ASBE.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the Accounting Standards for
Business Enterprises, which factually and completely present the Company’s and the consolidated financial
positions, business results and cash flows, as well as other relevant information.
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.
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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 Methods for Business Combination Involving Enterprises under and not under the Same
Control
1. Business combination under the same control
In case of a long-term equity investment resulting from a business combination under the same control, if the
acquirer pays cash, transfers non-cash assets, assumes debts as merger consideration, the share of the Company's
equity of the acquiree obtained on combination date in the carrying value of the financial statements of the
ultimate controlling party is deemed as an initial investment cost of long-term equity investments. If the acquirer
issues equity instruments as consideration for a combination, the total par value of the shares issued is treated as
equity. The difference between the initial investment cost of a long-term equity investment and the carrying
amount of the consideration for consolidation (or the total nominal value of shares issued) shall be adjusted to
capital surplus; if capital surplus is not sufficient to offset the difference, retained earnings shall be adjusted.
2. Business combination not involving entities under the same control
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 be 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. Preparation Methods for Consolidated Financial Statements
1. Scope of consolidated financial statements
The Company includes all subsidiaries (including separate entities controlled by the Company) in the scope of the
consolidated financial statements, including enterprises controlled by the Company, divisible portions of investees
and structured entities.
2. Unification of accounting policies, balance sheet dates and accounting periods of parent and subsidiary
companies
If the accounting policies and accounting period adopted by the subsidiaries are inconsistent with those of the
Company, necessary adjustments are made in accordance with the accounting policies and accounting period of
the Company when preparing the consolidated financial statements.
3. Offsetting items in the consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its subsidiaries
and have been offset by internal transactions that occurred between the Company and its subsidiaries and between
subsidiaries. The share of owners' equity of subsidiaries that do not belong to the Company is presented as
minority interests in the consolidated balance sheet under the item of shareholders' equity as "minority interests".
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Long-term equity investments held by subsidiaries are deemed as the Company's treasury stock and presented as a
deduction from shareholders' equity in the consolidated balance sheet under the item "Less: treasury stock".
4. Accounting treatment of the acquisition of subsidiaries through consolidation
For subsidiaries acquired through a business combination under common control, the assets, liabilities, operating
results, and cash flows are included in the consolidated financial statements from the beginning of the period of
consolidation as if the business combination had occurred at the time the ultimate controlling party began to
exercise control; for subsidiaries acquired through a business combination, not under the same control, the fair
value of the identifiable net assets on the acquisition date is used as the basis for preparing the consolidated
financial statements. The financial statements are adjusted based on the fair value of the identifiable net assets on
the acquisition date.
5. Accounting treatment of disposal of subsidiaries
If a long-term equity investment in a subsidiary is partially disposed of without loss of control, the difference
between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the
long-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date is
adjusted to capital surplus (capital surplus or share premium) in the consolidated financial statements, and retained
earnings is adjusted if the capital surplus is not sufficient to cover the reduction.
If the control over the investee is lost due to the disposal of part of equity investments, the residual equity are re-
measured at fair value on the date of loss of control. The aggregate of the consideration obtained by disposing of
the equity and the fair value of the remaining equity less the portion of the net assets of the subsidiary that has
been measured, as calculated at the original shareholding proportion, from the acquisition date or combination
date is recognized in profit and loss of the current period on investments in which the control is lost, and goodwill
shall be offset. Other comprehensive income related to the equity investments in the former subsidiary shall be
included in the return on investment for the current period when the Company lost the control.
7. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
1. Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not reached
through separate entities are classified as joint operations. Separate entities refer to entities with separate
identifiable financial structures, including separate legal entities and entities that do not have legal entity status but
are recognized by law. The joint arrangements reaching through separate entities are usually classified as joint
ventures. Where changes in relevant facts and circumstances result in changes in the rights and obligations of the
joint venture parties in the joint venture arrangement, the joint venture parties shall reassess the classification of
the joint venture arrangement.
2. Accounting treatment of joint operations
As a participant in a joint operation, the Company recognizes the following items related to its share of interest in
the joint operations. It accounts for them following the relevant Accounting Standards for Business Enterprises:
Recognition of assets or liabilities held separately, and recognition of assets or liabilities held jointly on a share
basis; recognition of revenue from the sale of the share of output from the joint operation to which it is entitled;
recognition of revenue from the joint operation arising from the sale of output on a share basis; and recognition of
expenses incurred separately, and recognition of expenses incurred in the joint operation on a share basis.
If the Company is a participant in a joint operation that does not enjoy joint control, and it owns the underlying
assets of the joint operation and assumes the liabilities related to the joint operation, the accounting treatment of
the joint operation partner shall be referred to; otherwise, the accounting treatment shall be carried out in
accordance with the relevant enterprise accounting standards.
3. Accounting treatment of joint ventures
If the Company is a joint venture partner, it shall account for its investment in joint ventures following the
provisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity Investments; if the
Company is a non-joint venture partner, it shall account for its investment in such joint ventures based on the
extent of its influence on such joint ventures.
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8. Recognition Criteria of Cash and Cash Equivalents
Cash, as determined by the Company in preparing the statement of cash flows, represents the Company's cash on
hand and deposits that are readily available for disbursement. Cash equivalents identified in the preparation of the
statement of cash flows are investments that are held for a short period of time, are highly liquid, are readily
convertible to known amounts of cash and are subject to an insignificant risk of change in value.
9. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
1. Conversion of foreign currency business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date, the monetary items in foreign currencies are translated at the spot
exchange rate. Exchange differences arising from the difference between the spot rate on that date and the spot
rate at initial recognition or on the previous balance sheet date are recognized in profit or loss, except for
exchange differences on special borrowings in foreign currencies that qualify for capitalization, which are
capitalized in the period in which they are capitalized and charged to the cost of the related assets. Non-monetary
items measured at historical costs in foreign currencies are still translated at the spot exchange rate on the
transaction date with the amount of standard currency for accounting unchanged. Non-monetary items measured
at fair value in foreign currencies are translated at the spot exchange rate on the date when the fair value is
determined. The difference between the amount of standard currency for accounting after translation and the
original amount shall be treated as a change in fair value (including exchange rate changes) and recognized in
current profit or loss or in other comprehensive income.
2. Conversion of foreign currency financial statements
If the Company's subsidiaries, joint ventures, and affiliated business use a different bookkeeping base currency
from the Company's, they need to convert their foreign currency financial statements before conducting
accounting and preparing consolidated financial statements. The assets and liabilities in the balance sheet shall be
translated at the spot rate on the balance sheet date. All items of owners' equity, except for "undistributed profit",
shall be translated at the spot exchange rate at the time of occurrence. Items under revenue and expenses in the
income statement are translated at the spot exchange rate on the transaction date. The exchange difference in
translating foreign operations arising from the translation are shown under other comprehensive income in the
owner's equity line in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchange
rate on the date of occurrence of the cash flows. The impact of exchange rate changes on cash is presented
separately in the cash flow statement. When an overseas operation is disposed of, the foreign currency statement
translation difference related to the overseas operation is transferred to the current profit and loss of the disposal in
full or in proportion to the disposal of the overseas operation.
10. Financial Instruments
1. Classification and reclassification of financial instruments
Financial instruments refer to contracts that form the financial assets of a party and form financial liabilities or
equity instruments of other parties.
(1) Financial assets
The Company classifies financial assets as financial assets measured at amortized cost if they meet both of the
following conditions: a) The Company's business model of managing financial assets aims at obtaining
contractual cash flows; b) and, as stipulated by term contract of the financial assets, the cash flows generated on a
specific date are merely for the payment of principal or the interest from the unpaid principal.
The Company classifies financial assets as financial assets at fair value through other comprehensive income if
they meet both of the following conditions: a) The Company's business model of managing the financial assets
aims at obtaining contractual cash flows as well as selling financial assets; b) and, as stipulated by contract clauses
of the financial assets, the cash flows generated on a specific date are merely for the payment of principal or
interest from the unpaid principal.
For instruments in non-business equity instruments, the Company may irrevocably assign such investments as
financial assets (equity instruments) measured at fair value through other comprehensive income at initial
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recognition. The assignment is made based on investments by item, and the relevant investments meet the
definition of an equity instrument from the issuer's perspective.
The financial assets measured at amortized cost and financial assets other than those measured at fair value
through other comprehensive income are classified by the Company as financial assets measured at fair value
through profit and loss for the current period. At initial recognition, if the accounting mismatch can be eliminated
or reduced, the Company shall designate the financial assets as financial assets measured at fair value through the
profit or loss for the current period.
When the Company changes its business model for managing financial assets, it will reclassify all affected
relevant financial assets as of the first day of the first reporting period following the change in business model,
and the prospective application shall be adopted for accounting treatment. The previously recognized profits,
losses (inclusive of impairment losses or profits), or interest shall not be traced and adjusted.
(2) Financial liabilities
Financial liabilities are classified into the following four categories when they are initially recognized: Financial
liabilities at fair value through current profit or loss; financial liabilities arising from the transfer of financial asset
not meeting the derecognition criteria or from the continuing involvement in the transferred asset; financial
guarantee contracts that do not fall within the categories above; financial liabilities measured at amortized cost.
All financial liabilities are not reclassified.
2. Measurement of financial instruments
The Company's financial instruments are measured at fair value upon initial recognition. For financial assets or
liabilities measured at fair value through profit or loss, relevant transaction expenses are directly included in the
profit or loss of the current period; for other categories of financial assets or liabilities, relevant transaction
expenses are included in the initial recognition amount. For notes receivable and accounts receivable arising from
sales of goods or provision of service which do not include or consider the compositions of major assets, the
Company takes the consideration expected to be received as the initial recognition amount. The follow-up
measurement of financial instruments depends on their categories:
(1) Financial assets
a) Financial assets are measured at the amortized cost. After initial recognition, the effective interest method
measures such financial assets at amortized cost. Gains or losses arising from a financial asset measured at
amortized cost which does not form any hedging relationship are recorded in current profit or loss at the time of
derecognition, reclassification, amortization according to the effective interest method or recognition of
impairment.
b) Financial assets are measured at fair value through profit and loss for the current period. After initial
recognition, such financial assets (except for a portion of financial assets that are part of a hedging relationship)
are subsequently measured at fair value. The resulting gains or losses (including interest and dividend revenue)
are included in the profit or loss for the period.
c) Investments in debt instruments are measured at fair value through other comprehensive income. After initial
recognition, the financial assets are subsequently measured at fair value for this category. Interest, impairment loss
or gain and exchange gain/loss calculated using the effective interest method are recorded in current profit or loss,
other gains or losses are recorded in other comprehensive income. The accumulative gains or losses which are
previously included in other comprehensive income are transferred out from other comprehensive income and
included in current profit or loss upon derecognition.
d) Investments in non-business equity instruments are designated as fair value through other comprehensive
income. After initial recognition, the financial assets are subsequently measured at fair value for this category.
Except for dividends received (except for the portion which forms part of investment cost recovered), which are
recognized in profit or loss, all other related gains and losses are recognized in other comprehensive income and
are not subsequently transferred to current profit or loss.
(2) Financial liabilities
a) Financial liabilities measured at fair value through profit and loss for the current period. These financial
liabilities include trading financial liabilities (including the derivative instruments belonging to financial liabilities)
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and financial liabilities designated to be measured by the fair value and their changes are recorded in the current
profit or loss. After initial recognition, such financial liabilities are subsequently measured at fair value, and gains
or losses resulting from changes in the fair value of the financial liabilities held for trading (including interest
expense) are recognized in profit or loss, except for a portion of financial assets that are part of a hedging
relationship. For financial liabilities designated as measured at fair value through profit or loss, changes in fair
value arising from the change of the company's credit risk shall be included in other comprehensive income, and
other changes in fair value are included in profit or loss for the current period. If the treatment made for the impact
of the changes in the financial liability's credit risk may cause or expand the accounting mismatch in profit or loss,
the Company shall include all gains or losses of such financial liabilities in profit and loss for the current period.
b) Financial liabilities measured at amortized cost. After initial recognition, such financial liabilities are measured
at amortized cost using the effective interest method.
3. The Company's method for recognizing the fair value of financial instruments
For a financial instrument with an active market, its fair value is determined by its quoted price in the active
market; for a financial instrument without an active market, its fair value is determined by valuation techniques.
Valuation techniques mainly include the market approach, the income approach and the cost approach. Under
limited circumstances, if the information used to determine fair value is insufficient, or if the range of possible
estimates of fair value is wide and the cost represents the best estimate of fair value within that range, the cost
may represent its appropriate estimate of fair value within that range of distribution. The Company uses all
information available after the initial recognition date about the investee's performance and operations to
determine whether the cost represents fair value.
4. Determination basis and measuring methods for transfer of financial assets and financial liabilities
(1) Financial assets
The Company's financial assets shall be derecognized when meeting any of the following conditions: a) The
contractual right to charge the cash flow of the financial assets is terminated; b) The financial assets have been
transferred and the Company has transferred almost all risks and remuneration of the financial assets ownership to
the transferee; and c) The financial assets have been transferred and the Company does neither transfer nor retain
almost all remuneration of the financial assets ownership but retain the control over the financial assets.
The Company does neither transfer nor retain almost all remuneration of the financial assets ownership but retain
the control over the financial assets, the relevant financial assets shall be continuously recognized according to the
extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.
If the overall transfer of financial assets meets the conditions for derecognition, the difference between the
following two amounts shall be recorded in profit and loss of the current period: a) The carrying value of the
transferred financial asset as of the date of derecognition; b) Sum of the consideration received for the transfer of
the financial asset, and the portion of the cumulative amount of fair value changes previously recorded in other
comprehensive income that corresponds with the portion of the asset de-recognized (the transferred financial asset
is an investment in debt instruments at fair value through other comprehensive income).
If a portion of the financial asset has been transferred and the transferred portion as a whole satisfies the
derecognition criteria, the carrying value of the financial asset as a whole prior to its transfer is allocated between
the portion of the asset derecognized and the portion that remains recognized, according to their relative fair value
as of the transfer date, and the difference between the two amounts mentioned below is recorded in current profit
or loss: a) The carrying value of the derecognized portion; b) Sum of the consideration received for the
derecognition portion, and the portion of the cumulative amount of fair value changes previously recorded in other
comprehensive income, which corresponds with the derecognized portion (the transferred financial asset is an
investment in debt instruments at fair value through other comprehensive income).
When the Company's investments in non-trading equity instruments designated as at fair value through other
comprehensive income are derecognized, the accumulative gain or loss previously included in other
comprehensive income shall be transferred from other comprehensive income to retained earnings upon
derecognition.
(2) Financial liabilities
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If current obligations of the financial liability (or part of the liability) have been released, the Company shall
derecognize the financial liability (or the part of the liability).
If a financial liability (or a portion thereof) is derecognized, the Company includes the difference between the
book value and the consideration paid (inclusive of the transferred non-cash assets or the liabilities assumed) in
the profit or loss of the current period.
11. Notes Receivable
The determination methods and accounting methods of notes receivable are detailed in Note 12, Accounts
Receivable, under this note.
12. Accounts Receivable
The Company's financial assets subject to impairment loss recognition are financial assets measured at amortized
cost, investments in debt instruments measured at fair value through other comprehensive income, and lease
receivables, which mainly include notes receivable, accounts receivable, receivables financing, other receivables,
debt investments, other debt investments, and long-term receivables. In addition, provision for impairment and
recognition of credit impairment losses should also be made for contract assets and certain financial guarantee
contracts in accordance with the accounting policies described in this section.
1. Determination and accounting methods of the expected credit losses of contract assets
The Company provides for impairment and recognises credit impairment losses for each of the above items on the
basis of expected credit losses in accordance with its applicable expected credit loss measurement method.
Credit loss refers to the difference between all contractual cash flow receivable by the Company under contracts
which are discounted according to the original effective interest rate, and all the cash flow expected to be received,
namely, the present value of all cash short. In particular, for financial assets purchased or originated by the
Company that are credit impaired, they should be discounted at the credit-adjusted effective interest rate of the
financial assets.
The general approach to measuring expected credit losses is that the Company assesses at each balance sheet date
whether the credit risk of a financial asset (including other applicable items such as contract assets, etc., the same
below) has increased significantly since initial recognition, and if the credit risk has increased significantly since
initial recognition, the Company measures the allowance for losses at an amount equal to the expected credit
losses over the entire life of the asset; if the credit risk has not increased significantly since initial recognition, the
Company measures the allowance for losses at an amount equal to the expected credit losses over the next 12
months. The Company considers all reasonable and substantiated information, including forward-looking
information, in assessing expected credit losses.
For financial instruments with low credit risk at the balance sheet date, the Company assumes that the credit risk
has not increased significantly since initial recognition and elects to measure the allowance for losses at an
amount equal to the expected credit losses over the next 12 months.
2. Criteria for determining whether there has been a significant increase in credit risk since initial recognition
The credit risk of a financial asset increases significantly if the probability of default over the expected life of the
financial asset as at the balance sheet date is significantly higher than the probability of default over the expected
life of the financial asset as at initial recognition. Except in exceptional circumstances, the Company uses the
change in the risk of default occurring within the next 12 months as a reasonable estimate of the change in the risk
of default occurring over the entire duration to determine whether there has been a significant increase in credit
risk since initial recognition.
3. Portfolio approach to assessing expected credit risk on a portfolio basis
The Company evaluates credit risk for individual items of notes receivable, accounts receivable and other
receivables that have significantly different credit risks with the following characteristics. For example,
receivables from related parties; receivables that are in dispute with the other party or involved in litigation or
arbitration; and notes and accounts receivable for which there are clear indications that the debtor is likely to fail
to meet its repayment obligations.
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In addition to financial assets for which credit risk is assessed individually, the Company classifies financial assets
into different groups based on common risk characteristics and assesses credit risk on a portfolio basis.
4. Accounting method for impairment of financial assets
To reflect changes in the credit risk of a financial instrument since the initial recognition, the Company
remeasures the expected credit losses on each balance sheet date. The resulting increase or reversal of the
provision for losses shall be recognized as an impairment loss or gain in profit or loss and, depending on the type
of financial instrument, offset against the carrying amount of the financial asset presented in the balance sheet or
recorded as provisions (loan commitments or financial guarantee contracts) or recorded in other comprehensive
income (investments in debt obligations measured at fair value through other comprehensive income).
5. Recognition method for credit losses on financial assets
The Company accounts for financial assets measured at amortized cost (including receivables), financial assets
classified as at fair value through other comprehensive income (including receivables financing), and lease
receivables based on expected credit losses, and recognizes impairment accounting and provision for losses.
The Company assesses whether the credit risk of the relevant financial instruments has increased significantly
since the initial recognition on each balance sheet date, divides the process of credit impairment of financial
instruments into three stages, and applies different accounting treatments to the impairment of financial
instruments at different stages: (1) in the first stage, if the credit risk of a financial instrument has not increased
significantly since the initial recognition, the Company will measure the loss reserves according to the amount
equivalent to the expected credit losses in the next 12 months, and calculate the interest revenue according to the
book balance (i.e., before deducting the provision for impairment) and the actual interest rate; (2) In the second
stage, if the credit risk of a financial instrument has increased significantly since the initial recognition but no
credit impairment has occurred, the Company will measure the loss reserves based on the expected credit loss
over the entire life of the financial instrument and calculates interest revenue based on the carrying amount of the
financial instrument and the effective interest rate; (3) In the third stage, if credit impairment occurs after the
initial recognition, the Company will measure the loss reserves based on the expected credit loss over the life of
the financial instrument and calculates interest revenue based on the amortized cost (carrying amount less
provision for impairment) and the effective interest rate.
(1) Method of the provision for losses on the measurement of financial instruments with lower credit risk
For financial instruments with lower credit risk on the balance sheet date, the Company makes a direct assumption
that the credit risk of the instrument has not increased significantly since the initial recognition without comparing
it with the credit risk at the time of its initial recognition.
If the financial instruments have low default risk, the debtor's ability to meet its contractual cash flow obligations
in the short term is strong, and even if adverse changes in economic conditions and business environment in the
longer term don't necessarily reduce the borrower's ability to meet its contractual cash flow obligations, the
financial instruments are considered to have low credit risk.
(2) Receivables and contract assets with no significant financing component
For receivables or contract assets arising from transactions governed by Accounting Standard for Business
Enterprises No. 14 - Revenue that do not have a significant financing component, the Company uses a simplified
approach whereby the allowance for losses is always measured on the basis of expected credit losses throughout
their lives.
Depending on the nature of the financial instrument, the Company assesses whether there is a significant increase
in credit risk on an individual financial asset or a portfolio of financial assets basis. The Company classifies notes
receivable and accounts receivable into certain portfolios based on credit risk characteristics, and calculates
expected credit losses on a portfolio basis, which is determined on the following basis:
① Accounts Receivable with a Single Significant Amount and a Separate Provision for Expected Credit Losses
Judgment basis or amount criteria for Accrual method of expected credit losses that are individually significant
significant individual amounts and accrued
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The impairment tests are conducted separately for accounts receivable
Accrual method of expected credit with individually significant amounts. If there is objective evidence of
losses that are individually significant impairment, an impairment loss is recognized based on the difference
and accrued between the present value of future cash flows and their carrying amount,
and an expected credit loss is recorded
② Accounts Receivable with Expected Credit Losses Provision Based on Credit Risk Portfolio
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
General lighting, auto lamps and other
relevant business with the Company as Prepare the comparative list between aging of accounts
Business portfolio of the parent and the subsidiary Nanning receivable and expected credit loss rate over the entire life and
general lighting and auto Liaowang as the representative, this calculate the expected credit loss by consulting historical
lamps portfolio takes the aging of accounts experience in credit losses, combining current situation and
receivable as the credit risk prediction for future economic situation.
characteristics
LED packaging, components and other
Prepare the comparative list between aging of accounts
relevant business with the subsidiary
receivable and expected credit loss rate over the entire life and
Business portfolio of LED NationStar Optoelectronics as the
calculate the expected credit loss by consulting historical
packaging and components representative, this portfolio takes the
experience in credit losses, combining current situation and
aging of accounts receivable as the
prediction for future economic situation.
credit risk characteristics
Internal business portfolio Related parties and internal transactions Other methods
Accounts Receivable for which the Expected Credit Loss is Withdrawn by Credit Risk Characteristics
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
Portfolio 1 Bank acceptance bill Low credit risk with no provision for bad debts
Trade acceptance Prepare the comparative list between aging of accounts
receivable and expected credit loss rate over the entire life and
Portfolio 2 calculate the expected credit loss by consulting historical
experience in credit losses, combining current situation and
prediction for future economic situation.
The aging analyses are based on their date of entry into the accounts.
Among portfolios, expected credit losses accrued by aging analysis:
Accrual rate of expected credit losses
Aging
Business portfolio of general lighting and Business portfolio of LED packaging and
auto lamps components
Within 1 year (including 1 year) 3% 2%
1 to 2 years 10% 10%
2 to 3 years 30% 30%
3 to 4 years 50% 50%
4 to 5 years 80% 80%
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Over 5 years 100% 100%
③ Accounts Receivable with an Insignificant Single Amount but for which the Expected Credit Loss is Made
Independently
Reasons for a separate provision for expected
Conclusive evidence of significant differences in recoverability
credit losses
An impairment loss is recognized for expected credit losses based on the difference
Determination method of expected credit losses
between the present value of expected future cash flows and their carrying amount
(3) Method of measuring loss provision for other financial assets
For financial assets other than those mentioned above, such as debt investments, other debt investments, other
receivables and long-term receivables other than lease receivables, the Company measures the allowance for
losses in accordance with the general method, i.e. the "three-stage" model.
The Company considers the following factors in assessing whether there has been a significant increase in credit
risk when measuring credit impairment on financial instruments:
The Company divides other receivables into certain combinations based on the nature of the amounts. It calculates
expected credit losses based on the combinations, and the basis for determining the combinations is as below:
Other receivables portfolio 1: Deposit, antecedent money
Other receivables portfolio 2: Related party money
Other receivables portfolio 3: Advance money
Of this, the expected credit loss rate for the ageing portfolio is referenced to accounts receivable.
13. Accounts Receivable Financing
The determination methods and accounting methods of receivables financing are detailed in Note 12, Accounts
Receivable, under this note.
14. Other Receivables
Determination methods and accounting methods of expected credit losses on other receivables
The determination methods and accounting methods of expected credit losses of other receivables is the same as
that of accounts receivable, as detailed in Note 12, Accounts Receivable, in this note.
15. Inventory
1. Classification of inventories
Inventories refer to the Company's finished goods or commodities for sale held in daily activities, unfinished
goods in manufacturing process, and materials and supplies consumed in process of manufacturing products or
providing services, etc. Inventories mainly include raw materials, goods in process, materials in transit, finished
goods, commodities, turnover materials, materials commissioned for processing, etc. Turnover materials include
low-value consumables and packaging materials.
2. Pricing method of issuing inventories
Inventories are valuated at the actual cost of the acquisition, and the inventory costs include procurement costs
and processing costs. Inventories are valuated using the weighted average method when being issued.
3. Accrual method of provision for decline in value of inventories
Net realizable value refers to the amount after deducting the cost estimated until completion, estimated selling
expenses, and relevant taxes from the estimated selling price of the inventory. The Company determines the net
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realizable value of inventories based on solid evidence obtained and after taking into consideration the purpose for
which the inventory is held, and the impact of post-balance sheet events.
The net realizable value of finished goods, materials for sale, and other merchandise inventories used directly for
sale is determined in the normal course of production and operation as the estimated selling price of such
inventories, less estimated selling expenses, and related taxes.
The net realizable value of material inventories subject to processing is determined in the normal course of
production operations as the estimated selling price of the finished goods produced, less the estimated costs to be
incurred to completion, estimated selling expenses, and related taxes.
4. Inventory system of inventories
The perpetual inventory system is adopted for the inventories of the Company.
5. Amortization of low-value consumables and packing materials
The one-off charge-off method is used for low-value consumables and packaging materials.
16. Contract Assets
The Company presents the right to receive consideration for goods or services that have been transferred to the
customer (and which is dependent on factors other than time-lapse) as a contract asset. Provision for impairment
of contract assets is made with reference to the expected credit loss method for financial instruments. For contract
assets that do not contain significant financing components, the Company uses a simplified measurement method
to measure the loss reserves. For contract assets containing significant financing components, the Company uses a
general measurement method to measure the loss reserves.
When an impairment loss is incurred on a contract asset, the amount to be written down is debited to "impairment
losses on assets" and credited to provision for impairment of contract assets; the reverse entry is made when the
provision for impairment is reversed.
17. Contract Costs
not applicable
18. Assets Held for Sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions as assets
held for sale: First, the 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; and second, the 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 be completed within one year. The relevant regulations require the
approval of the relevant or regulatory authority of the enterprise before the sale shall have been approved.
When the Company initially measures or remeasures non-current assets or disposal groups held for sale on the
balance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, the
carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down
will be recognized as asset impairment loss and included in current profit and loss, and provision for impairment
of assets held for sale will be made.
Assets in the balance sheet in the non-current assets held for sale or disposal groups held for sale are presented as
assets held for sale, and liabilities in the disposal groups held for sale are presented as liabilities held for sale.
A discontinued operation is a separately distinguishable component meeting one of the following conditions and
which has been disposed of by the Company or is classified by the Company as held for sale:
1. The component represents a separate primary business or a separate primary operating area;
2. The component is part of an associated plan for the proposed disposal of a separate primary business or a
separate major operating area;
3. The component is a subsidiary acquired exclusively for resale.
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19. Investment in Debt Obligations
Not applicable
20. Other Investment in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
1. Determination of initial investment cost
For long-term equity investments acquired through a business combination, in the case of a business combination
under the same control, the initial investment cost of the long-term equity investment shall be the share of the
owners' equity of the party being combined in the consolidated financial statements of the ultimate controlling
party on the combination date; in the case of a business combination not under the same control, the initial
investment cost of the long-term equity investment shall be the cost of combination determined on the acquisition
date; for long-term equity investments acquired by paying cash, the initial investment cost is the actual purchase
price paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost is the
fair value of the equity securities issued; for long-term equity investments acquired through debt restructuring, the
initial investment cost is determined in accordance with the relevant provisions of Accounting Standards for
Business Enterprises No. 12-Debt Restructuring; for long-term equity investments acquired through exchange of
non-monetary assets, the initial investment cost is determined in accordance with the relevant provisions of
Accounting Standards for Business Enterprises No. 7-Exchange of Non-monetary Assets.
2. Method of subsequent measurement and recognition of profit or loss
Long-term equity investments in which the Company can exercise control over the investees are accounted for by
the cost method, and long-term equity investments in associates and joint ventures are accounted for by the equity
method. If a portion of the Company's equity investments in affiliates is held indirectly through venture capital
institutions, mutual funds, trust companies, or similar entities, including investment-linked funds, regardless of
whether the above entities have significant influence over this portion of the investment, the Company treats it in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 22-Recognition
and Measurement of Financial Instruments and accounts for the remaining portion with the equity method.
3. Determination basis of the same control and significant influence on the investee
Having the same control over an investee refers to that the activities that significantly affect the return on an
arrangement can only be decided with the unanimous consent of the participants sharing control, including sales
and purchases of goods or services, management of financial assets, acquisitions and disposals of assets, research
and development activities, and financing activities; having significant influence over an investee refers to having
a considerable impact when more than 20% to 50% of the investee's voting capital is held. Or, although less than
20%, having a considerable impact when one of the following conditions is met: Representation on the board of
directors or similar authority of the investee; participation in the policy-making process of the investee;
assignment of management personnel to the investee; reliance of the investee on the technology or technical
information of the investee; and major transactions with the investee.
23. Investment Properties
Measurement model of investment property
Measurement of cost method
Depreciation or amortization method
The Company's investment property include leased land use rights, leased buildings, and land use rights held and
ready to be transferred after appreciation. Investment property is initially measured according to cost, and then
measured by cost model.
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The Company uses the composite life depreciation method for buildings leased out of investment properties, and
the specific accounting policies are the same as those for fixed assets. Land use rights leased out of investment
properties and land use rights held and intended to be transferred after appreciation are amortized through the
straight-line method with the same accounting policies as those for the intangible assets segment.
24. Fixed Assets
(1) Recognition conditions
The fixed assets refer to tangible assets held for production of goods, provision of labour services, lease or
business with a service life of over a fiscal year. Recognition is made when the following conditions are met: The
economic benefits associated with the fixed-asset will probably flow to the enterprise; the cost of the fixed-asset
can be measured reliably.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciable life Residual value rate
rate
Straight-line
Houses and buildings 3-36 years 1%-10% 31.67%-3.17%
depreciation method
Straight-line
Machinery equipment 2-11years 1%-10% 47.50%-8.18%
depreciation method
Transportation Straight-line
5-10 years 1%-10% 19.00%-9.50%
equipment depreciation method
Straight-line
Electronic equipment 2-8 years 1%-10% 47.50%-11.88%
depreciation method
Straight-line
Other equipment 5 years 1%-10% 19%-18%
depreciation method
(3) Impairment testing methods for fixed assets and provision for impairment
For details, see Note 31 “Impairment of long-term assets”.
(4) Disposal of fixed assets
Fixed assets are derecognised when they are disposed of, or when no economic benefits are expected to arise from
their use or disposal. Proceeds from the disposal of fixed assets on sale, transfer, retirement or destruction, net of
their carrying amount and related taxes, are recorded in current profit or loss.
（5）Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable
25. Construction in Progress
The cost of construction in progress is determined on the basis of actual construction expenditure, including all
construction expenditure incurred during the period of construction, borrowing costs capitalised before the
construction reaches its intended useable state and other related costs.
Construction in progress is transferred to fixed assets when it reaches its intended useable state and depreciation
commences from the following month. If the construction in progress has reached its intended useable state but
has not yet been finalised, it is transferred to fixed assets at its estimated value from the date it reaches its intended
useable state, based on the project budget, cost or actual cost of the project, and is depreciated in accordance with
the Company's policy on depreciation of fixed assets, and the original provisional estimated value is adjusted to
the actual cost after the finalisation of the project.
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See Note 31, "Impairment of long-term assets" for details of the impairment testing method and provision for
impairment for construction in progress.
26. Borrowing Costs
1. Recognition principles for the capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributable to the acquisition, construction or
production of assets that meet the capitalization conditions, they shall be capitalized and included in the costs of
the underlying assets; other borrowing costs recognized as costs according to the amount incurred shall be
included in the profit and loss for the current period. Assets eligible for capitalization refer to assets, such as fixed
assets, investment properties, and inventories that require a long period for their acquisition or production
activities to reach the expected usable or saleable status.
2. Calculation of capitalization amount
The capitalization period refers to the period from when the capitalization of borrowing costs starts to when the
capitalization stops. The period during which capitalization of borrowing costs is suspended is not included.
Capitalization of borrowing costs shall be suspended if there is an abnormal interruption in the course of
acquisition or production and the interruption lasts for more than three consecutive months.
Borrowing of special borrowings is determined by the interest expense incurred in the period of the special
borrowings, less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or the
investment income earned by making temporary investments; the appropriation of general borrowings is
determined by multiplying the weighted average amount of asset expenses over the portion of special borrowings
by the capitalization rate of the general borrowings appropriated, which is the weighted average interest rate of
general borrowings; if there is a discount or premium on borrowings, the amount of discount or premium to be
amortized in each accounting period is determined by the effective interest rate method. The amount of interest is
adjusted for each period.
The effective interest rate method is a method of calculating the amortized discount or premium or interest
expense on a borrowing based on its effective interest rate. The effective interest rate method calculates the
amortized discount or premium or interest expense on a borrowing based on its effective interest rate.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
The determination methods and accounting methods of right-of-use assets are detailed in Note 42, Leases, under
this note.
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. If the amount paid for the purchase of intangible assets
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witnesses postponed payment due to that the normal credit conditions are exceeded and is actually financing in
nature, the costs of such intangible assets shall be determined on the basis of 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 3, (20): “Long-term asset impairment”.
(2) Accounting policy for internal research and development expenditures
The expenditures in internal research and development projects of the Company are classified into expenditures in
research stage and expenditures in development stage. The expenditures in research stage are included in the
current profits and losses when incurred. The expenditures in development stage are recognized as intangible
assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits, including the proof that the products
produced with the intangible assets can be sold in a market or the proof of its usefulness if the intangible assets
can be sold in a market and will be used internally;
(4) Having sufficient technical, financial resources and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred after meeting intangible assets
recognition criterion and before reaching intended use. Expenditures that have been expensed in previous periods
are no longer adjusted.
The cost of intangible assets acquired by non-monetary assets exchange, debt restructuring, government subsidies
and business combination are recognized according to relevant provisions of Accounting Standards for Business
Enterprises No. 7 - Non-monetary Assets Exchange, Accounting Standards for Business Enterprises No. 12 - Debt
Restructuring, Accounting Standards for Business Enterprises No. 16 - Government Subsidies, Accounting
Standards for Business Enterprises No. 20 - Business Combination respectively.
31. Impairment of Long-term Assets
For long-term assets having the indication of impairment on balance sheet date such as long-term equity
investments, investment property measured in cost mode, fixed assets, construction in progress, productive living
assets measured in cost mode, oil and gas assets, and intangible assets, the Company shall test the impairment. If
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the impairment test results indicate that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be made at the difference and included in the impairment loss.
The recoverable amount is the higher of the fair value of the asset minus the disposal cost and the present value of
the expected future cash flow of the asset. The provision for impairment of assets is calculated and recognized on
the basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets, the
recoverable amount of the asset group shall be recognized by the asset group to which the asset belongs. The asset
group is the smallest portfolio of assets that can generate cash inflows independently.
Goodwill presented separately in the financial statements shall be tested for impairment every year, whether or not
there is any indication of impairment. The book value of the goodwill shall be apportioned to the asset group or
portfolio of asset groups that is expected to benefit from the synergies of the business combination when the
impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that the
recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is lower
than its book value. The amount of the impairment loss shall offset the book value of the goodwill apportioned to
the asset group or portfolio of asset groups, and offset the book value of other assets in proportion according to the
proportion of the book value of other assets except the goodwill in the asset group or portfolio of asset groups.
Once the impairment loss of the above asset is recognized, the portion that the value is restored will not be written
back in subsequent periods.
32. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (excluding one
year) that have occurred but are attributable to the current and future periods. Long-term prepaid expense shall be
amortized averagely within benefit period. In case of no benefit in the future accounting period, the amortized
value of such item that fails to be amortized shall be transferred into the current profits and losses.
33. Contract Liabilities
The Company presents the obligation of transferring goods to or providing services for customers for
consideration received or receivable as a contract liability.
The Company presents contract asset and contract liability under the same contract on a net basis.
34. Payroll
Employee benefits refer to all forms of remuneration or compensation given by the Company for services
rendered by employees or for the termination of employment relationships. Employee benefits mainly include
short-term benefits, post-employment benefits, termination benefits and other long-term employee benefits.
(1) Accounting treatments for short-term benefits The short-term compensation actually happened during the
accounting period when the active staff offering the service for the Company should be recognized as liabilities
and is included in the current profits and losses except for those required or allowed to be included in the assets
cost by the Accounting Standards for Business Enterprises. The employee services benefits actually happened in
the Company shall be included in the current profits and losses or relevant assets cost according to the actual
amount. Of which the non-monetary benefits should be measured according to the fair value. During the
accounting term in which employees provide service, the Company calculates and determines the corresponding
payroll amount in accordance with the withdrawal basis and withdrawal proportion specified in regulations with
the social insurance premiums such as medical insurance premiums, industrial injury insurance premium and birth
insurance premium, housing fund, and the labour union budget and employee education budget withdrawn in
regulations, and then recognizes it as liabilities that are included in the current profits and losses or relevant assets
cost.
(2) Accounting treatment of the welfare after demission
The payable and deposit amount calculated according to the defined contribution plan during the accounting
period when the active staff offering the service for the Company is recognized as liabilities and is included in the
current profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shall
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be attributable to the period in which the employees provide services based on the formula determined by
expected cumulative welfare unit method and included in current profits and losses or cost of relevant asset.
(3) Accounting treatment of the demission welfare
When offering the demission welfare, the Company shall recognize the payroll liabilities incurred from the
demission welfare on the earlier of the date when the Company could not unilaterally withdraw the demission
welfare offered by the plan or layoff proposal owing to termination of the labour relationship or the date when the
Company recognizes the cost related to the reorganization of the payment of the demission welfare, and include
the payroll liabilities into the current profits and losses:
(4) Accounting treatment of the welfare of other long-term staffs
The other long-term welfare that the Company offers to the staff, if met with the setting drawing plan, shall be
disposed of according to the relevant setting drawing plan; except for that, net liabilities or net assets of the
welfare of other long-term staff shall be recognized and measured according to the setting drawing plan.
35. Lease Liabilities
The determination methods and accounting methods of leases are detailed in Note 42, Leases, under this note.
36. Provisions
The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a current
obligation of the Company, and it is likely to cause any economic benefit to flow out of the enterprise as a result
of performance of the obligation, while the amount of the obligation can be measured in a reliable way. The
Company conducts the initial measurement in accordance with the best estimate of the necessary expenses for the
performance of the current obligation. If there is a sequent range for the necessary expenses and if all the
outcomes within this range are equally likely to occur, the best estimate shall be determined in accordance with
the midpoint estimate within the range; if the contingencies concern two or more items, the best estimate shall be
calculated and determined in accordance with all possible outcomes and the relevant probabilities.
Review of the book value of provisions shall be conducted on the balance sheet date. The book value shall be
adjusted in accordance with the current best estimate when there is definite evidence indicating that the book
value cannot reflect the current best estimate in faithfulness.
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
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 benefits from them.
Where the contract contains two or more performance obligations, the Company, at the inception date of the
contract, allocates the transaction price to each performance obligation in accordance with the relative proportion
of the stand-alone selling price of the goods or services promised by each performance obligation. The Company
measures revenue on the basis of the transaction price allocated to each performance obligation.
Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer, excluding amounts collected on behalf of third parties and amounts
expected to be returned to the customer. The Company determines the transaction price in accordance with the
terms of the contract, with past business practices taken into account. When determining the transaction price, it
considers the impact of variable consideration, the existence of a significant financing component in the contract,
non-cash consideration, consideration payable to a customer and other factors. The transaction price is recognized
only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
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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 the 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 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 and accounting treatment for government subsidies
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Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from the
government (excluding the capital invested by the government as an equity holder). If a government subsidy is a
monetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is a
non-monetary asset, it shall be measured at its fair value, and shall be measured at a nominal amount when the fair
value cannot be obtained reliably.
Government subsidies related to the daily activities are included in other income in accordance with the nature of
economic business. Government subsidies unrelated to the daily activities are included in non-operating revenue.
Government subsidies are recognized as asset-related subsidies when stipulated by government documents to be
used for acquisition, construction or otherwise formation long-term assets. Government subsidies without subsidy
object specified by the government document, able to form a long-lived asset, and corresponding to the asset
value are asset-related government subsidies, while the rest are government subsidies related to income. For
government subsidies containing both part related to asset and part related to income, the Company shall conduct
the accounting treatment respectively to the different part; if the part is difficult to distinguish, it shall be classified
as government subsidy related to income; government subsidies related to assets are recognized as deferred
income. The amount recognized as deferred income is included in the current profits and losses in accordance
with reasonable and systematic method in the useful life of relevant assets.
Government subsidies other than asset-related government subsidies are recognized as government subsidies
related to income. Government subsidies related to income used to compensate the relevant costs, expenses or
losses of the Company in the subsequent period shall be recognized as deferred income, and shall be included in
the current profit and loss during the period of confirming the relevant cost, expenses or losses; subsidies used to
compensate the relevant costs, expenses or losses incurred by the Company shall be directly included in the
current profits and losses (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 revenue).
In the case that the Company obtains a policy favourable loan interest subsidy, and the fiscal system allocates the
fund of interest subsidy to the lending bank, who provides loans to the Company at a policy favourable interest
rate, the actual loan amount received is recognized as the recorded value of the loan, and the relevant borrowing
costs are calculated based on the loan principal and the policy favourable interest rate; if the fiscal system
allocates the fund of interest subsidy to the Company directly, the Company reduces the corresponding interest
subsidy against relevant borrowing costs.
2. Recognition time of government subsidies
Government subsidies shall be recognized when the Company satisfies the conditions attached to the government
subsidies and is able to receive them. Government subsidies measured according to the receivable amount shall be
recognized when there is positive evidence at the end of the period that they can meet the relevant conditions
stipulated by the financial support policies and are expected to receive financial support funds. Other government
subsidies other than government subsidies measured by amount receivable are recognized when the Company
actually receives the subsidies.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordance with
the applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the
different amount between the book value of assets or liabilities and its tax base (for items not recognized as assets
and liabilities, if its tax basis can be determined according to the tax law, the tax basis is recognized as the
different amount).
2. The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset the
deductible temporary differences. On the balance sheet date, deferred income tax assets without recognition
during the former accounting period shall be recognized if there are definite indications representing that it is
probable to have sufficient taxable income to offset the deductible temporary differences during the future period.
If it is likely that sufficient taxable income will not be available to offset the benefit of the deferred income tax
assets in the future period, the book value of the deferred income tax assets will be written down. However, for a
transaction with the following characteristics concurrently, the deferred income tax assets arising from the initial
recognition of assets or liabilities shall not be recognised: 1) The transaction is not a business combination; 2) the
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transaction affects neither the accounting profit nor the taxable income (or the deductible losses) when it is
affected.
3. For taxable temporary differences related to the investment in subsidiaries and associated enterprises, the
deferred income tax liabilities are recognized unless the time of temporary differences reversal can be controlled
by the Company and are probably not to be reversed in foreseeable future. For deductible temporary differences
related to the investment in subsidiaries and associated enterprises, the deferred income tax assets are recognized
if the temporary differences are probably to be reversed in foreseeable future and it is likely to have taxable
income to offset the deductible temporary differences.
42. Lease
(1) Accounting treatment of operating lease
1. Accounting treatment of leased assets
On the start date of the lease term, the Company deems the right-of-use assets and lease liabilities of all the
operating leases except for the short-term leases and low-value leases, and recognizes the depreciation expense
and interest expense respectively within the lease term.
In each period in lease term, the Company includes the lease payment of short-term leases and low-value leases in
the current expense with the straight-line method.
(1) Right-of-use assets
Right-of-use assets refer to the right of the lessees to use the leasehold property in the lease term. At the start date
of the lease term. The Company initially measures the right-of-use assets at cost. The cost includes: a) The initial
measurement amount of the lease liabilities; b) 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; c) the initial direct
cost incurred by the lessee; d) 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.
The Company depreciates 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 estimated remaining service life. If it is not reasonably certain that the ownership of the
leasehold property will be obtained at the end of the lease term, the Company will depreciate the leased assets
over the lease term or the remaining service life, whichever is shorter.
The Company will determine the impairment of right-of-use assets and conduct accounting treatment in
accordance with relevant provisions of the Accounting Standards for Business Enterprises No.8 - Asset
Impairment.
(2) Lease liabilities
The Company initially measures the lease liabilities at the current value of the lease payments outstanding at the
start date of the lease term. Lease payments include: a) fixed payment (including substantial fixed payment), and
the relevant amount after deducting the lease incentive if any; b) variable lease payments depending on index or
ratio; c) estimated payments due to the guaranteed residual value provided by the lessee; d) exercise price of the
purchased option, provided that the lessee reasonably determines that the option will be exercised; and e) the
amount to be paid for the exercise of the lease termination options, provided that the lease term reflects that the
lessee will exercise the options to terminate the lease.
The Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease
cannot be reasonably determined, the Company's incremental borrowing rate is used as the rate of discount. The
Company calculates the interest expenses of the lease liabilities during each period of the lease term at a fixed
periodic interest rate, and includes them in financial expenses. The periodic interest rate refers to the rate of
discount employed by the Company or the rate of discount after revision.
Variable lease payments that are not covered in the measurement of the lease liabilities are included in current
profit or loss when actually incurred.
114
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
When there is a change in the Company's evaluation results of lease renewal options, lease termination options or
purchase options, the Company will re-measure the lease liabilities utilizing the present value of the changed lease
payment and the revised rate of discount, and adjust the book value of right-of-use assets accordingly. Where
there is a change in substantial lease payment, estimated payments due to the guaranteed residual value, or
variable lease payments depending on index or ratio, the Company will re-measure the lease liabilities leveraging
the present value of the changed lease payment and the original rate of discount, and adjust the book value of
right-of-use assets accordingly.
2. Accounting treatment of lease assets
(1) Accounting treatment of operating leases
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, amortizes and includes it in
the current profits on the basis same as the recognition of rentals in the lease term.
(2) Accounting treatment method of financial lease
On the start date of lease, the difference between the sum of finance lease receivable and unguaranteed residual
value and its present value is recognized as unrealised lease income by the Company, which is recognized as lease
income in each period when the rent is received in the future. The initial direct cost incurred related to lease
business is included in the initial recorded value of financial lease receivable.
43. Other Significant Accounting Policies and Estimates
None
44. Changes in Main Accounting Policies and Estimates
(1) Change in accounting policies
Applicable □ Not applicable
Changes to the accounting policies and why Approval process Remark
In November 2022, the Ministry of Finance ("MOF")
issued Accounting Standard for Business Enterprises
Interpretation No. 16 (hereinafter referred to as
"Interpretation No. 16"), which regulated the accounting
treatment for the exemption from initial recognition of the
deferred income taxes related to assets and liabilities
arising from a single transaction. It specified that, for
single transactions that are not business combinations, that
affect neither accounting profit nor taxable income (or
deductible losses) at the time the transaction occurs, and
where the initial recognition of assets and liabilities results Refer to Note 44. Changes
Deliberation and approved by the
in taxable temporary differences and deductible temporary in Main Accounting Policies
46th Meeting of the 9th Board of
differences of equal amounts, exemption from initial and Estimates-(3) for
Directors
recognition of deferred income tax liabilities and deferred details.
income tax assets under Article XI (II) and Article XIII of
Accounting Standard for Business Enterprises No. 18 --
Income Taxes is not applicable. An enterprise shall
recognise the corresponding deferred income tax liabilities
and deferred income tax assets for the taxable temporary
differences and deductible temporary differences arising
from the initial recognition of assets and liabilities in
respect of the transaction when the transaction occurs. This
provision came into force on 1 January 2023 and can be
executed in advance.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(2) Changes in accounting estimates
□Applicable Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of
the New Accounting Standards Implemented since 2023
Applicable □ Not applicable
Note
The account data of financial statements are retroactively adjusted as follows:
Unit: RMB
Consolidated balance sheet
1 January 2022
Item Before After Affected
Deferred income tax assets 82,261,788.58 84,159,937.92 1,898,149.34
Deferred income tax liabilities 280,172,789.59 282,035,768.42 1,862,978.83
Retained earnings 3,111,864,076.86 3,111,882,995.08 18,918.22
Total equity attributable to owners of the Company as the parent 7,036,108,772.54 7,036,127,690.76 18,918.22
Non-controlling interests 3,543,741,175.21 3,543,757,427.50 16,252.29
Total owners’ equity 10,579,849,947.75 10,579,885,118.26 35,170.51
Unit: RMB
Consolidated balance sheet
1 January 2023
Item Before After Affected
Deferred income tax assets 88,387,206.25 90,186,993.64 1,799,787.39
Deferred income tax liabilities 202,469,697.60 204,371,264.18 1,901,566.58
Retained earnings 3,296,490,575.52 3,296,435,828.50 -54,747.02
Total equity attributable to owners of the Company as the parent 5,173,066,095.76 5,173,011,348.74 -54,747.02
Non-controlling interests 3,427,280,735.85 3,427,233,703.68 -47,032.17
Total owners’ equity 8,600,346,831.61 8,600,245,052.42 -101,779.19
Unit: RMB
Consolidated income statement
2022
Item Before After Affected
Income tax expense 30,874,328.03 31,011,277.73 136,949.70
Net profit 350,843,355.72 350,706,406.02 -136,949.70
Net profit attributable to shareholders of the Company as the parent 230,394,235.91 230,320,570.67 -73,665.24
Net profit attributable to non-controlling interests 120,449,119.81 120,385,835.35 -63,284.46
Note: The amount affected by the retroactive adjustment of this accounting policy change has not been audited.
45. Other
Naught
116
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or
VAT 3%, 6%, 9%, 13%
taxable service
Urban maintenance and construction tax Turnover tax payable 7%, 5%
Enterprise income tax Taxable income 10%, 15%, 25%
Education surcharge Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company, Zhida Company, Chanchang Company,
Haolaite, Nanning Liaowang, Chongqing Guinuo, Liuzhou
Lighting, Liuzhou Foreshine, Qingdao Guige, Headquarters of 15%
NationStar Optoelectronics, NationStar Semiconductor,
Germany NationStar, Fenghua Semiconductor
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. Chanchang Company passed the examination for High-tech Enterprises respectively in December 2021, and
thus Chanchang Company paid the corporate income tax based on a tax rate of 15% within three years since 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
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 third batch of high-tech enterprises identified by the relevant authorities of Guangxi Zhuang
Autonomous Region in 2022 publicized on 19 December 2022, Liuzhou Optoelectronics has been certified as a
high-tech enterprise (certificate number: GR202245001221) for 2022 to 2024, with a high-tech enterprise
preferential income tax rate of 15%.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
6. According to the letter "Gui Ke Gao Han [2021] No. 237" issued jointly by the Department of Science and
Technology of Guangxi Zhuang Autonomous Region, the Department of Finance and the Taxation Bureau of
Guangxi Zhuang Autonomous Region of the State Administration of Taxation on 30 November 2021, Liuzhou
Fuxuan has been certified as a high-tech enterprise (certificate number: GR202145001045) for 2021 to 2023, with
a high-tech enterprise preferential income tax rate of 15%.
7. Subsidiary NationStar Optoelectronics was recognized as a high-tech enterprise on 16 December 2008 with
certificate number GR200844000097. In 2020, the company was re-certified as a high-tech enterprise with
certificate number GR202044006337, issued on 9 December 2020, and the corporate income tax rate of the
company is 15% for the years 2020 to 2022.
8. Foshan NationStar Semiconductor Co., Ltd., a wholly-owned subsidiary of subsidiary NationStar
Optoelectronics, was recognized as a high-tech enterprise with certificate number GR201544001238 on 10
October 2015; NationStar Semiconductor was re-certified as a high-tech enterprise with certificate number
GR202144008779 in 2021, issued on 20 December 2021, and the corporate income tax rate of the company is 15%
for the years 2021 to 2023.
9. The subsidiary, Haolaite, passed the certification of high-tech enterprise in 2022 and obtained the certificate of
high-tech enterprise (Certificate No. GR202244003711) approved by the Department of Science and Technology
of Guangdong Province, the Department of Finance of Guangdong Province, the State Taxation Bureau of
Guangdong Province and the Local Taxation Bureau of Guangdong Province. In accordance with the relevant
provisions of the Enterprise Income Tax Law of the People's Republic of China promulgated in 2007 and the
Administrative Measures for the Recognition of High-tech Enterprises, the Company is entitled to a reduced
corporate income tax rate of 15% for three years commencing from 1 January 2022.
10. On 14 December 2022, Qingdao Guige Lighting Technology Co., Ltd. was recognized as a high-tech
enterprise and subject to the preferential tax rate of 15% for high-tech enterprise income tax in accordance with
the relevant provisions of the Administrative Measures for the Recognition of High-tech Enterprises (Guo Ke Fa
Huo [2016] No. 32) and the Administrative Guidelines for the Recognition of High-tech Enterprises (Guo Ke Fa
Huo [2016] No. 195).
11. Fenghua Semiconductor, a majority-owned subsidiary of subsidiary NationStar Optoelectronics, was
recognized as a high-tech enterprise on 16 December 2008 and its certificate number was GR200844000295. It
was re-recognized as a high-tech enterprise in 2021, and its new certificate number is GR202144008851 dated 31
December 2021. Its corporate income tax rate for 2021-2023 is 15%.
12. The subsidiary, Zhicheng, is a small and micro enterprise. From 1 January 2022 to 31 December 2024, the
people's governments of provinces, autonomous regions and municipalities directly under the Central Government
shall determine, in accordance with the actual situation in the region and the needs of macroeconomic regulation
and control, that resource tax, urban maintenance and construction tax, property tax, urban land use tax, stamp
duty (excluding stamp duty on securities transactions), arable land occupation tax and education surcharge and
local education surcharge may be reduced within a tax range of 50% for small and micro enterprises.
13. Zhida Company passed the certification of high-tech enterprise in December 2019 and was re-recognized as a
high-tech enterprise in 2022. In accordance with the relevant provisions of the Enterprise Income Tax Law of the
People's Republic of China promulgated in 2007 and the Administrative Measures for the Recognition of High-
tech Enterprises, the Company is entitled to a reduced corporate income tax rate of 15% for three years
commencing from 1 January 2022.
118
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 45,923.56 52,093.54
Bank deposits 1,979,561,171.78 1,957,903,758.15
Other monetary assets (note 1) 530,315,488.92 522,361,684.92
To-be-received interest (note 2) 8,255,130.73 4,191,370.82
Total 2,518,177,714.99 2,484,508,907.43
Of which: Total amount deposited
overseas 28,196,729.48 34,169,227.46
Total amount with
restrictions on use due to mortgage, 535,698,818.93 534,826,528.99
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: To-be-received interest was interest receivable on undue bank deposits and term deposits as of the end
of the Reporting Period, which is not recognized as cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through
profit or loss 81,882,834.67 261,541,896.45
Including:
Wealth management products 80,983,830.13 260,569,863.53
Equity instrument investments 899,004.54 972,032.92
Including:
Total 81,882,834.67 261,541,896.45
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
119
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Bank acceptance bill 750,857,065.95 786,244,513.66
Commercial acceptance bill 60,397,859.39 35,293,260.41
Total 811,254,925.34 821,537,774.07
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Categor Withdra Withdra
Carrying Carrying
y Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Notes
receivab
le
withdra
812,487 1,232,6 811,254 822,258 720,270 821,537
wn bad 100.00% 100.00% 100.00% 100.00%
,534.72 09.38 ,925.34 ,044.69 .62 ,774.07
debt
provisio
n by
group
Of
which:
Bank
750,857 750,857 786,244 786,244
acceptan 92.41% 0.00 0.00% 95.62% 0.00 0.00%
,065.95 ,065.95 ,513.66 ,513.66
ce bill
Commer
cial 61,630, 1,232,6 60,397, 36,013, 720,270 35,293,
7.59% 100.00% 4.38% 100.00%
acceptan 468.77 09.38 859.39 531.03 .62 260.41
ce bill
812,487 1,232,6 811,254 822,258 720,270 821,537
Total 100.00% 100.00% 100.00% 100.00%
,534.72 09.38 ,925.34 ,044.69 .62 ,774.07
Withdrawal of bad debt provision by group: RMB1,232,609.38
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 61,630,468.77 1,232,609.38 2.00%
Total 61,630,468.77 1,232,609.38
Note:
Naught
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
120
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Notes
receivable
withdrawn bad 720,270.62 512,338.76 1,232,609.38
debt provision
by group
Total 720,270.62 512,338.76 1,232,609.38
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
Item Amount pledged at the period-end
Bank acceptance bill 654,426,305.62
Total 654,426,305.62
(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 448,926,920.31 74,615,851.95
Total 448,926,920.31 74,615,851.95
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
(6) Notes Receivable with Actual Verification for the Reporting Period
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 Withdra
y Carrying Carrying
Proporti wal value Proporti wal value
Amount Amount Amount Amount
on proporti on proporti
on on
Account 19,769, 19,769, 25,123, 25,123,
s 0.80% 100.00% 1.23% 100.00%
199.92 199.92 263.57 263.57
121
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
receivab
le
withdra
wn bad
debt
provisio
n
separatel
y
Account
s
receivab
le 2,465,2 2,347,0 2,019,1 1,920,7
withdra 118,195 98,359,
wn bad 95,096. 99.20% 4.79% 99,724. 30,602. 98.77% 4.87% 70,941.
,371.65 660.29
debt 57 92 05 76
provisio
n by
group
Of
which:
(1)
Business
portfolio
of 1,843,9 1,738,9 1,499,7 1,412,6
general 74.20% 104,946 5.69% 73.37% 87,156, 5.81%
21,468. 74,578. 83,089. 26,414.
lighting ,889.16 675.78
08 92 81 03
and auto
lamps
(2)
Business
portfolio
of LED
packagin 621,373 25.00% 13,248, 2.13% 608,125 519,347 25.40% 11,202, 2.16% 508,144
g and ,628.49 482.49 ,146.00 ,512.24 984.51 ,527.73
compon
ents
2,485,0 2,347,0 2,044,2 1,920,7
137,964 123,482
Total 64,296. 100.00% 5.55% 99,724. 53,865. 100.00% 6.04% 70,941.
,571.57 ,923.86
49 92 62 76
Individual withdrawal of bad debt provision: RMB19,769,199.92
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
Less likely to be
Customer B 5,711,450.39 5,711,450.39 100.00%
recovered
Less likely to be
Customer C 815,484.27 815,484.27 100.00%
recovered
Expected to be
Customer D 761,769.31 761,769.31 100.00%
unrecoverable
The customer is
insolvent, a judgment
Customer E 526,858.54 526,858.54 100.00% has been filed and
enforcement has been
applied for
122
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
The customer is
Customer F 523,448.92 523,448.92 100.00%
bankrupt
Expected to be
Customer G 171,282.32 171,282.32 100.00%
unrecoverable
Expected to be
Customer H 21,928.68 21,928.68 100.00%
unrecoverable
Expected to be
Customer I 16,150.35 16,150.35 100.00%
unrecoverable
Total 19,769,199.92 19,769,199.92
Withdrawal of bad debt provision by group: RMB118,195,371.65
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk group 2,465,295,096.57 118,195,371.65 4.79%
Total 2,465,295,096.57 118,195,371.65
Note:
Naught
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) 2,217,602,166.86
1 to 2 years 172,512,834.98
2 to 3 years 41,194,435.41
Over 3 years 53,754,859.24
3 to 4 years 6,082,506.14
4 to 5 years 25,601,627.43
Over 5 years 22,070,725.67
Total 2,485,064,296.49
(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 25,123,263.5 19,769,199.9
separately 5,354,063.65
7 2
accrued
Bad debt
provision 98,359,660.2 19,695,758.5 118,195,371.
withdrawn 140,000.00 47.15
9 1 65
according to
123
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
groups
123,482,923. 19,695,758.5 137,964,571.
Total 140,000.00 5,354,110.80
86 1 57
Of which, bad debt provision collected or reversed with significant amount:
Unit: RMB
Name of the entity Amount collected or reversed Way
No. 1 140,000.00 Court enforcement funds
Total 140,000.00
The amount of expected credit losses accrued during the current period was RMB19,695,758.51, the amount of
expected credit losses recovered or reversed during the current period was RMB140,000.00, and the amount of
expected credit losses verified during the current period was RMB5,354,110.80, which was RMB23,101.38
different from the amount of credit impairment loss on accounts receivable accrued during the current period of
RMB19,672,657.13, which was due to the difference in translation of foreign currency statements at the end of
the current period.
(3) Accounts Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount
No. 1 4,687,053.33
No. 2 521,689.32
No. 3 145,321.00
Other retails accounts 47.15
Of which, verification of significant accounts receivable:
Unit: RMB
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related-
party transactions
Perform the
approval
The enterprise is
procedures in
insolvent and not
No. 1 Payment for goods 4,687,053.33 accordance with Not
expected to be
the Company’s bad
recovered
debt management
system
Perform the
approval
The enterprise is
procedures in
insolvent and not
No. 2 Payment for goods 521,689.32 accordance with Not
expected to be
the Company’s bad
recovered
debt management
system
Perform the
approval
The enterprise is
procedures in
insolvent and not
No. 3 Payment for goods 145,321.00 accordance with Not
expected to be
the Company’s bad
recovered
debt management
system
124
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Total 5,354,063.65
Note:
The approval procedure for the verification of accounts receivable during the Reporting Period had been
performed in accordance with provisions of the bad debt management system of the Company.
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Proportion to total ending
Ending balance of accounts Ending balance of bad debt
Name of units balance of accounts
receivable provision
receivable (%)
No. 1 261,026,852.86 10.50% 7,830,805.59
No. 2 152,452,817.41 6.13% 4,573,584.52
No. 3 93,476,069.87 3.76% 2,804,282.10
No. 4 55,627,701.25 2.24% 1,283,037.33
No. 5 55,226,986.80 2.22% 1,675,758.38
Total 617,810,428.19 24.85%
(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
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bills 444,845,917.62 569,868,831.79
Total 444,845,917.62 569,868,831.79
The changes of accounts receivable financing in the Reporting Period and the changes in fair value
□Applicable Not applicable
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
financing.
□Applicable Not applicable
125
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
7. Prepayment
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 31,552,324.47 76.12% 36,419,452.21 80.00%
1 to 2 years 2,624,032.73 6.33% 3,345,048.70 7.35%
2 to 3 years 4,381,417.53 10.57% 3,313,296.20 7.28%
Over 3 years 2,893,345.53 6.98% 2,448,751.82 5.38%
Total 41,451,120.26 45,526,548.93
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
Naught
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Unit: RMB
Relationship with the Proportion to total
Name of units Ending balance Aging
Company prepayments (%)
No. 1 Non-related supplier 8,853,527.27 Within 1 year 21.36%
No. 2 Non-related supplier 2,540,646.17 1 to 2 years, 2 to 3 years 6.13%
No. 3 Non-related supplier 1,327,340.00 2 to 3 years 3.20%
No. 4 Non-related supplier 1,322,725.73 Within 1 year 3.19%
No. 5 Non-related supplier 1,311,535.80 Within 1 year 3.16%
Total 15,355,774.97 37.05%
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 150,403,234.75 32,902,865.98
Total 150,403,234.75 32,902,865.98
(1) Interest Receivable
1) Category of Interest Receivable
Naught
2) Significant Overdue Interest
Naught
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
3) Withdrawal of Bad Debt Provision
□Applicable Not applicable
(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
Dividend payment (note) 111,892,889.20
Other current accounts 43,848,497.77 45,041,494.42
Performance bonds 18,415,192.27 14,472,948.78
Export VAT rebates 11,326,131.26 10,011,271.72
Staff loans and imprests 1,984,223.92 1,164,918.15
Rents and utilities 724,524.41 1,220,591.91
Total 188,191,458.83 71,911,224.98
Note: refer to the dividend payment transferred to China Securities Depository and Clearing Corporation
Limited.
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss of duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 584,406.20 4,785,285.13 33,638,667.67 39,008,359.00
Balance of 1 January
2023 in the Current
Period
Withdrawal of the
Current Period 210,014.79 -701,413.34 -728,736.37 -1,220,134.92
Balance of 30 June
794,420.99 4,083,871.79 32,909,931.30 37,788,224.08
2023
127
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 149,905,951.05
1 to 2 years 3,027,584.32
2 to 3 years 6,134,698.71
Over 3 years 29,123,224.75
3 to 4 years 3,781,427.91
4 to 5 years 1,721,323.52
Over 5 years 23,620,473.32
Total 188,191,458.83
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 39,008,359.0 - 37,788,224.0
receivables 0 1,220,134.92 8
39,008,359.0 - 37,788,224.0
Total
0 1,220,134.92 8
The amount of expected credit losses accrued during the current period was RMB1,220,134.92, the amount of
expected credit losses recovered or reversed during the current period was RMB0.00, and the amount of
expected credit losses verified during the current period was RMB0.00, which was RMB17,439.94 different
from the amount of credit impairment loss on other receivables accrued during the current period of
RMB1,237,574.86, which was due to the difference in translation of foreign currency statements at the end of
the current period.
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Dividend payment 111,892,889.20 Within 1 year 59.46% 0.00
Other intercourse
No. 2
accounts 20,000,000.00 Within 5 year 10.63% 20,000,000.00
No. 3 VAT export tax 11,326,131.26 Within 1 year 6.02% 339,783.94
128
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
refunds
Other intercourse
No. 4 5,000,000.00 Within 1 years 2.66% 5,000,000.00
accounts
Other intercourse
No. 5 4,289,457.98 Within 3 year 2.28% 4,289,457.98
accounts
Total 152,508,478.44 81.05% 29,629,241.92
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Other Receivables
Naught
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
379,135,335. 369,490,024. 414,134,452. 407,241,210.
Raw materials 9,645,310.90 6,893,242.38
60 70 55 17
Goods in 227,936,650. 227,936,650. 239,412,167. 239,412,167.
process 78 78 33 33
Inventory 796,421,911. 142,385,621. 654,036,290. 1,019,990,15 139,368,445. 880,621,713.
goods 36 23 13 9.16 90 26
295,172,317. 292,209,391. 391,149,213. 381,344,043.
Goods in transit 2,962,926.23 9,805,170.06
67 44 49 43
Semi-finished 87,046,434.8 85,632,110.3 113,621,240. 112,706,998.
goods 1,414,324.51 914,242.37
3 2 54 17
Low-value
2,036,927.65 2,036,927.65 2,742,435.82 2,742,435.82
consumables
15,184,800.3 15,184,800.3
Others 7,568,833.69 7,568,833.69
4 4
129
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
1,802,934,37 156,408,182. 1,646,526,19 2,188,618,50 156,981,100. 2,031,637,40
Total
8.23 87 5.36 2.58 71 1.87
(2)Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 6,893,242.38 3,250,464.48 498,395.96 9,645,310.90
Inventory 139,368,445. 13,794,313.6 10,777,138.3 142,385,621.
goods 90 4 1 23
Goods in transit 9,805,170.06 6,842,243.83 2,962,926.23
Semi-finished
914,242.37 500,423.64 341.50 1,414,324.51
goods
156,981,100. 17,545,201.7 18,118,119.6 156,408,182.
Total
71 6 0 87
For the Reporting Period, the falling price reserves of inventory were accrued RMB17,545,201.76, reversed
RMB2,968,819.12 and verified RMB15,149,300.48.
(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 Depreciation
Carrying value Carrying value
amount reserves amount reserves
Contract assets 6,074,305.63 920,946.65 5,153,358.98 6,074,305.63 607,430.56 5,466,875.07
Total 6,074,305.63 920,946.65 5,153,358.98 6,074,305.63 607,430.56 5,466,875.07
Amount of significant changes in carrying value of contract assets in the Reporting Period and reasons thereof:
Naught
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
Withdrawal of impairment provision for contract assets in the Reporting Period
130
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Unit: RMB
Item Withdrawal Reversal Verification Reason
Normal withdrawal at
Contract assets 313,516.09
aging
Total 313,516.09
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 4 4 00 5 2023
in 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
Large bank certificates of deposit (note) 100,000,000.00
Input tax of VAT to be certified and
deducted 63,856,804.78 72,851,826.53
Advance payment of enterprise income
tax 5,462,208.91 3,676,607.32
Others 3,696,897.95 2,910,143.04
Total 173,015,911.64 79,438,576.89
Note: refer to large bank certificates of deposit matured over three months which can be transferred but not be
redeemed in advance.
14. Investments in debt obligations
Naught
15. Other Investments in Debt Obligations
Naught
131
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains Ending
Beginni and Cash balance
Adjust Withdra Ending
ng losses bonus of
Investe Additio Reduce ment of Change wal of balance
balance recogni or depreci
es nal d other s of depreci (carryin
(carryin zed profits Other ation
investm investm compre other ation g value)
g value) under announ reserve
ent ent hensive equity reserve
the ced to s
income s
equity issue
method
I. Joint ventures
II. Associated enterprises
Shenzh
en
Primatr
onix 181,93 183,11
1,186,
(Nanho 1,792. 7,824.
) 031.53
66 19
Electro
nics
Ltd.
181,93 183,11
Subtota 1,186,
l 1,792. 7,824.
031.53
66 19
181,93 183,11
1,186,
Total 1,792. 7,824.
031.53
66 19
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gotion High-tech Co., Ltd. 473,235,307.42 493,967,194.53
Xiamen Bank Co.,Ltd. 287,939,745.30 328,664,290.95
Guangdong Rising Finance Co., Ltd. 30,000,000.00 30,000,000.00
Beijing Guangrong Lianmeng
Semiconductor lighting Industry 7,078,568.80 8,059,860.92
Investment Center(L.P.)
Foshan Nanhai District United
Guangdong New Light Source Industry 3,000,000.00 3,000,000.00
Innovation Center
China Guangfa Bank Co.,Ltd. 500,000.00 500,000.00
Total 801,753,621.52 864,191,346.40
Disclosure of non-trading equity instrument investment by items
Unit: RMB
Amount of Reason for Reason for
Dividend
Accumulative Accumulative other assigning to other
Item income
gains losses comprehensive measure in fair comprehensive
recognized
income value and the income
132
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
transferred to changes transferred to
retained included in retained
earnings other earnings
comprehensive
income
Not satisfied
with the
Gotion High-
390,220,822.29 condition of
tech Co., Ltd. trading equity
instrument
Not satisfied
with the
Xiamen Bank
16,633,969.35 134,982,138.47 condition of
Co.,Ltd. trading equity
instrument
Beijing
Guangrong
Lianmeng Not satisfied
with the
Semiconductor
52,364.46 653,627.87 condition of
lighting trading equity
Industry instrument
Investment
Center(L.P.)
Not satisfied
Guangdong with the
Rising Finance 4,080.96 condition of
Co., Ltd. trading equity
instrument
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 54,404,787.78 54,404,787.78
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
(1) Disposal
(2) Other transfer
4. Ending balance 54,404,787.78 54,404,787.78
133
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 9,792,905.34 9,792,905.34
2. Increased amount of
the period 1,245,165.95 1,245,165.95
(1) Withdrawal or
amortization 1,245,165.95 1,245,165.95
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 11,038,071.29 11,038,071.29
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
value 43,366,716.49 43,366,716.49
2. Beginning carrying
value 44,611,882.44 44,611,882.44
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable Not applicable
(3) Investment Property Failed to Accomplish Certification of Property
Naught
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 3,362,929,170.95 3,505,729,627.80
Disposal of fixed assets 2,698,921.34 2,364,654.61
Total 3,365,628,092.29 3,508,094,282.41
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Other(Note) Total
buildings equipment equipment equipment
I. Original
carrying value
1. Beginning 1,945,505,958. 5,026,525,744. 7,173,744,661.
balance 42,934,087.94 71,546,378.97 87,232,491.32
75 08 06
2. Increased 12,588,085.08 107,093,477.39 1,240,590.88 2,770,437.76 1,010,300.93 124,702,892.04
134
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
amount of the
period
22,416,839.6 27,977,891.2
(1) Purchase 1,707,909.03 1,230,973.46 2,200,324.01 421,845.13
3 6
(2) Transfer
from 83,014,052.5 94,903,443.2
construction in 10,738,504.05 569,758.82 581,127.85
5 7
progress
(3) Others 141,672.00 1,662,585.21 9,617.42 354.93 7,327.95 1,821,557.51
3. Decreased
amount of the 4,301,800.00 34,205,228.18 1,698,224.38 45,882.86 1,472,933.96 41,724,069.38
period
(1) Disposal or
scrap 4,301,800.00 31,285,387.93 1,698,224.38 45,882.86 1,424,801.82 38,756,096.99
(2) Equipment
transformation 198,725.31 48,132.14 246,857.45
(3) Others 2,721,114.94 2,721,114.94
4. Ending 1,953,792,243. 5,099,413,993. 7,256,723,483.
balance 42,476,454.44 74,270,933.87 86,769,858.29
83 29 72
II.
Accumulative
depreciation
1. Beginning 2,779,752,635. 3,656,540,089.
balance 721,782,611.67 33,394,916.40 52,921,576.93 68,688,348.72
53 25
2. Increased
amount of the 40,831,789.42 213,421,265.70 1,198,443.95 3,180,364.58 3,872,346.01 262,504,209.66
period
(1) Withdrawal 40,831,789.42 210,964,319.41 1,188,969.19 3,180,014.92 3,865,126.77 260,030,219.71
(2) Transfer
from
construction in 2,044,078.82 2,044,078.82
progress
(3) Others 412,867.47 9,474.76 349.66 7,219.24 429,911.13
3. Decreased
amount of the 4,227,078.99 30,998,798.93 1,613,313.16 44,465.80 1,342,263.27 38,225,920.15
period
(1) Disposal or
scrap 4,086,710.00 29,173,107.69 1,613,313.16 44,465.80 1,294,709.41 36,212,306.06
(2)
Equipment 149,506.56 47,553.86 197,060.42
transformation
(3) Others 140,368.99 1,676,184.68 1,816,553.67
4. Ending 2,962,175,102. 3,880,818,378.
balance 758,387,322.10 32,980,047.19 56,057,475.71 71,218,431.46
30 76
III.
Depreciation
reserves
1. Beginning
balance 11,129,431.94 69.83 343,855.06 1,587.18 11,474,944.01
2. Increased
amount of the 1,500,990.00 1,500,990.00
period
(1) Withdrawal 1,500,990.00 1,500,990.00
3. Decreased
amount of the
period
(1) Disposal or
scrap
4. Ending
balance 12,630,421.94 69.83 343,855.06 1,587.18 12,975,934.01
IV. Carrying
value
1. Ending 1,195,404,921. 2,124,608,469. 3,362,929,170.
carrying value 9,496,337.42 17,869,603.10 15,549,839.65
73 05 95
135
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
2. Beginning 1,223,723,347. 2,235,643,676. 3,505,729,627.
carrying value 9,539,101.71 18,280,946.98 18,542,555.42
08 61 80
Note: Fixed Assets-Other refer to cooling system and sewage treatment station of NationStar Optoelectronics
and instruments and implement of Nanning Liaowang.
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Note
value depreciation reserves
Machinery
50,680,329.86 41,182,831.19 3,651,651.37 5,845,847.30 Idle
equipment
Electronic
7,785,983.92 7,370,095.02 342,427.13 73,461.77 Idle
equipment
Transportation
137,560.60 130,682.57 69.83 6,808.20 Idle
equipment
Others 3,645.30 1,875.86 1,587.18 182.26 Idle
Total 58,607,519.68 48,685,484.64 3,995,735.51 5,926,299.53
(3) Fixed Assets Leased out by Operation Lease
Naught
(4) Fixed Assets Failed to Accomplish Certification of Property
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, led Workshop, R&D Workshop 11 to 14 and R&D Workshop 18 have been completed
and put into use and carried forward fixed assets. As of 30 June 2023, the relevant real estate licenses 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.
In addition, the T5 warehouse in the North Zone, the equipment warehouse, the materials warehouse (east end
of the single-end workshop), the storage tank pond of the gas station in the North Zone, the LPG station in the
North Zone, the subsidiary warehouse of the new finished goods warehouse, the 3662M2 new finished goods
warehouse and the assembly plant of Gaoming LED lamps have no property ownership certificates due to
historical matters, and these buildings and constructions are involved in the "pending expropriation" project,
which is planned to be implemented by the relevant government departments, as detailed in Note VII (31) Other
non-current assets.
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Applying for scrapping indisposed
2,698,921.34 2,364,654.61
equipment
136
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Total 2,698,921.34 2,364,654.61
22. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 1,377,403,873.06 1,282,780,335.14
Total 1,377,403,873.06 1,282,780,335.14
(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 1,378,931,428. 1,377,403,873. 1,284,307,890. 1,282,780,335.
1,527,554.99 1,527,554.99
progress 05 06 13 14
1,378,931,428. 1,377,403,873. 1,284,307,890. 1,282,780,335.
Total 1,527,554.99 1,527,554.99
05 06 13 14
(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
Self-
Kelian 726,73 566,25 569,70 36,640 financi
3,452, 88.58 90.00
Buildi 8,900. 4,746. 7,364. ,953.0 ng and
617.96 % % Borro
ng 00 61 57 2
wing
The
Project Self-
of the 1,714, 421,30 427,00 financi
6,157, 458,40 27.44 27.44 110,08 72,249
Geely 546,70 8,508. 7,925. 3.52% ng and
824.38 7.06 % % 5.00 .18 Borro
Industr 0.00 55 87
ial wing
Park
FSLHa
inan 310,40 37,522 59,621 97,144 Self-
34.11 61.00
Industr 0,000. ,769.1 ,359.8 ,128.9 financi
% %
ial 00 0 9 9 ng
Park I
The
148,27 68,275 24,759 93,034 Self-
smart 68.39 83.00
1,900. ,373.8 ,409.8 ,783.7 financi
LED % %
00 7 4 1 ng
Lighti
137
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
ng
Produc
tion
Plant
in the
Gaomi
ng
Produc
tion
Base
(1-3
buildin
gs)
Gaomi
ng 115,00 73,222 18,438 91,660 Self-
86.88 87.00
office 0,000. ,239.6 ,005.8 ,245.5 financi
% %
buildin 00 9 4 3 ng
g
FSL
intellig
ent
89,680 23,808 23,808 Self-
manuf 30.00 30.00
,000.0 ,849.5 ,849.5 financi
acturin % %
0 7 7 ng
g
factory
project
The
LED
R&D
and
Produc
tion
Base
on 26,632 12,629 18,382 19,32 10,782 Self-
905,1 78.00 78.00
Jihua ,094.6 ,643.7 ,287.9 3,976 ,824.7 financi
30.42 % %
Secon 2 7 1 .47 9 ng
d
Road.
Others
(spora
dic
equip
ment)
The
Project
of
Produc
tion
Expan
sion of 913,41 11,803 Self-
896,67 5,294, 7,406, 97.83 97.83
Packag 2,500. ,833.6 financi
1.28 232.63 272.34 % %
ing 00 9 ng
Comp
onents
and
Chips
of
New-
138
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
genera
tion
LEDs
Color
paint Self-
5,292, 1,058, 3,695, 4,753, 89.82 90.00
line financi
035.40 407.06 139.30 546.36 % %
equip ng
ment
Self-
F1Line 6,476, 1,715, 1,718, 3,433, 53.02 80.00
financi
body 106.19 867.26 051.72 918.98 % %
ng
AP[20
22]043
Self-
- 4,053, 3,242, 3,242, 80.00 90.00
financi
Spray- 097.35 478.00 478.00 % %
ng
Paint
Lines
Tederi
c
20220
70501- Self-
3,097, 1,858, 1,002, 2,860, 92.36 90.00
1920T financi
345.13 407.08 358.64 765.72 % %
injecti ng
on
machi
ne
Synchr
onous
laser
weldin
Self-
g 3,672, 2,707, 2,330. 2,710, 73.80 80.00
financi
machi 566.37 964.54 10 294.64 % %
ng
ne
/Vibrat
ion
A8SR
The
Project
of
Produc 20,390 Self-
430,08 943,36 430,08 943,36 50.79 50.79
tion ,000.0 financi
8.50 2.85 8.51 2.84 % %
Expan 0 ng
sion of
Chip
LED
4,087, 1,225, 139,06 25,50 1,338, 36,751
905,1 72,249
Total 663,24 839,17 9,419. 6,704 496,76 ,038.0
30.42 .18
5.06 7.29 71 .67 1.91 2
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught
139
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(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 21,717,402.95 19,090,760.38 40,808,163.33
2. Increased amount of the
period 919,748.13 919,748.13
(1) Leased in 919,748.13 919,748.13
3. Decreased amount of the
36,010.14 36,010.14
period
4. Ending balance 22,601,140.94 19,090,760.38 41,691,901.32
II. Accumulated amortization
1. Beginning balance 9,106,242.62 18,654,192.98 27,760,435.60
2. Increased amount of the
period 3,776,607.81 436,567.40 4,213,175.21
(1) Withdrawal 3,776,607.81 436,567.40 4,213,175.21
3. Decreased amount of the
114,465.60 114,465.60
period
4. Ending balance 12,768,384.83 19,090,760.38 31,859,145.21
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 9,832,756.11 9,832,756.11
2. Beginning carrying value 12,611,160.33 436,567.40 13,047,727.73
140
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent
Item Land use right Patent Software Others (note) Total
technology
I. Original
carrying value
1. Beginning
balance 408,013,759.69 24,198,472.74 35,318,404.44 49,109.90 467,579,746.77
2. Increased
amount of the 350,661.10 3,435,711.18 3,786,372.28
period
(1)
Purchase 350,661.10 3,435,711.18 3,786,372.28
(2)
Internal R&D
(3)
Business
combination
increase
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
balance 408,364,420.79 24,198,472.74 38,754,115.62 49,109.90 471,366,119.05
II. Accumulated
amortization
1. Beginning
balance 86,226,483.33 24,002,566.64 16,746,120.66 49,109.90 127,024,280.53
2. Increased
amount of the 3,948,502.13 91,046.90 2,098,950.49 6,138,499.52
period
(1)
Withdrawal 3,948,502.13 91,046.90 2,098,950.49 6,138,499.52
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
balance 90,174,985.46 24,093,613.54 18,845,071.15 49,109.90 133,162,780.05
III.
Depreciation
reserves
1. Beginning
balance 388,613.87 388,613.87
2. Increased
amount of the
period
(1)
Withdrawal
3.
Decreased
amount of the
period
(1)
Disposal
4. Ending
balance 388,613.87 388,613.87
IV. Carrying
141
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
value
1. Ending
carrying value 318,189,435.33 104,859.20 19,520,430.60 337,814,725.13
2. Beginning
carrying value 321,787,276.36 195,906.10 18,183,669.91 340,166,852.37
The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending balance of
intangible assets was 0.00%.
(2) Land Use Right with Certificate of Title Uncompleted
Naught
Other notes:
Note: “Intangible Assets-Others” mainly refers to the emission right of Nanning Liaowang recognized in 2022.
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
goodwill combination
Nanning
Liaowang Auto 16,211,469.82 16,211,469.82
Lamp Co., Ltd.
Foshan
NationStar
405,620,123.64 405,620,123.64
Optoelectronics
Co., Ltd. (note)
Total 421,831,593.46 421,831,593.46
Note: Guangdong Electronics Information Industry Group Ltd., a wholly-owned subsidiary of Guangdong
Rising Holdings Group Co., Ltd., acquired NationStar Optoelectronics in 2014, and the difference between the
fair value and the net assets attributable to shareholders of the listed company at the date of acquisition of
NationStar Optoelectronics resulted in a goodwill of RMB405,620,123.64.
(2) Goodwill impairment provisions
Naught
29. Long-term Prepaid Expense
Unit: RMB
Item Beginning balance Increased amount Amortization Other decreased Ending balance
142
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
amount of the amount
period
Mould 123,701,355.84 19,318,247.77 18,177,894.17 16,664,943.47 108,176,765.97
Expense on
maintenance and 53,937,007.68 11,981,690.98 11,125,457.79 54,793,240.87
decoration
Boarding box 371,728.64 310,440.16 185,274.05 496,894.75
Other 12,116,535.75 599,459.45 4,303,862.82 8,412,132.38
Total 190,126,627.91 32,209,838.36 33,792,488.83 16,664,943.47 171,879,033.97
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for
impairment of assets 369,692,376.93 55,910,294.84 355,634,218.16 53,741,627.33
Unrealized profit of
internal transactions 45,049,689.58 6,117,103.55 52,989,043.64 7,948,356.52
Deductible loss 59,430,734.45 10,501,457.66 72,901,011.65 12,503,679.82
Depreciation of fixed
assets 56,881,472.25 8,532,220.85 57,459,943.55 8,618,991.55
Change in fair value of
23,814,503.38 3,572,175.51 5,013,923.26 752,088.49
trading financial assets
Lease liabilities 9,756,245.93 1,463,436.88 12,273,129.57 1,799,787.39
Accrued liabilities 9,518,319.01 1,427,747.85 9,579,783.06 1,436,967.46
Long-term deferred
3,888,860.58 583,329.09
expenses
Others 44,091,211.68 6,614,523.28 18,675,496.41 2,802,165.99
Total 618,234,553.21 94,138,960.42 588,415,409.88 90,186,993.64
(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 86,121,665.67 12,918,249.86 88,576,232.73 13,286,434.92
not under the same
control
Changes in fair value
of other investments in 519,352,960.75 77,902,944.12 580,809,393.51 87,121,409.03
equity instruments
One-off depreciation of
690,169,165.63 103,525,374.85 680,398,140.98 102,059,721.15
fixed assets
Right-of-use assets 9,681,614.81 1,452,242.22 13,047,727.73 1,901,566.58
Book-tax difference in
depreciation period of 1,194,076.92 298,519.23
fixed assets
143
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Changes in the fair
value of trading 14,216.68 2,132.50 14,216.68 2,132.50
financial assets
Total 1,306,533,700.46 196,099,462.78 1,362,845,711.63 204,371,264.18
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount Amount of deferred Mutual set-off amount Amount of deferred
of deferred income tax income tax assets or of deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set assets and liabilities at liabilities after off-set
the period-end at the period-end the period-begin at the period-begin
Deferred income tax
assets 94,138,960.42 90,186,993.64
Deferred income tax
liabilities 196,099,462.78 204,371,264.18
(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
Advance
payment for 35,069,785.3 35,069,785.3 44,132,869.2 44,132,869.2
equipment and 6 6 6 6
project
Long-term
assets to be 40,230,664.8 40,230,664.8 36,553,212.6 36,553,212.6
disposed (note 4 4 4 4
1)
Prepayments
for equity 10,000,000.0 10,000,000.0 10,000,000.0 10,000,000.0
acquisition 0 0 0 0
(note 2)
Assets of
subsidiaries to
510,864.76 510,864.76 613,072.43 613,072.43
be cleared and
cancelled
Other 407,032.79 407,032.79 244,358.52 244,358.52
86,218,347.7 10,000,000.0 76,218,347.7 91,543,512.8 10,000,000.0 81,543,512.8
Total
5 0 5 5 0 5
Other notes:
Note 1: The Company intends to hand over the plots of land located on the south and north sides of the Gongye
Road to the government for revitalisation in the form of "pending expropriation". When the government
144
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
successfully sells the plots through a public auction, the Company will be given the compensation for the land
transfer according to the policy. The buildings and constructions to be revitalized include the plant of LED
Workshop 3, the added plant of LED Workshop 3, South Plant (single-end workshop), North Plant (4 buildings),
spark plug workshop of energy-saving lamps warehouse, T8 Workshop 1 (Building 2), LED Workshop 2,
Iodine Lamp Workshop 3155m (building 14), the Company's new finished goods warehouse 3662M2, materials
warehouse (east end of single-end workshop), North Zone LPG station , T5 warehouse in the North Zone, etc.
Note 2: The Company's subsidiary, NationStar Optoelectronics, entered into the Capital Injection Agreement
with Nanyang Xicheng Technology Co., Ltd. (Xicheng Tech). NationStar Optoelectronics 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 118,330,000.00 100,000,000.00
Credit loans 72,596,526.02 37,596,526.02
Acceptance bill discount 20,000,000.00
Interest from short-term borrowings 118,833.33
Total 190,926,526.02 157,715,359.35
Note:
For details about the collateral for mortgage loans please refer to XIV-(III) Other in Part X.
(2) List of the Short-term Borrowings Overdue but not Returned
Naught
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Trading financial liabilities 23,741,475.00 4,679,000.00
Including:
Other (note) 23,741,475.00 4,679,000.00
Including:
Total 23,741,475.00 4,679,000.00
note: refer to losses on changes in fair value arising from the Company’s hedge instruments.
34. Derivative Financial Liabilities
Naught
145
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 1,786,199,423.18 1,923,641,752.28
letter of credit 67,154,037.47 52,101,816.43
Total 1,853,353,460.65 1,975,743,568.71
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 2,437,263,015.38 2,513,177,458.14
Total 2,437,263,015.38 2,513,177,458.14
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Supplier A 53,874,419.09 It has not reached the settlement period
Supplier B 11,091,750.64 Unsettled for bankruptcy
Supplier C 5,468,703.00 Quality guarantee deposit
Supplier D 4,249,699.04 It has not reached the settlement period
Supplier E 3,560,177.00 It has not reached the settlement period
Supplier F 2,702,000.00 It has not reached the settlement period
Total 80,946,748.77
37. Advances from Customer
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 196,200.00 2,532,442.44
Total 196,200.00 2,532,442.44
(2) Significant Advances from Customers Aging over One Year
Naught
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Advances on sales 131,700,995.68 125,143,161.61
146
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Total 131,700,995.68 125,143,161.61
39. Employee Benefits Payable
(1) List of Employee Benefits Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 168,935,119.49 625,092,899.71 633,858,737.63 160,169,281.57
II. Post-employment
benefit-defined 3,890,071.51 54,523,735.92 56,433,980.29 1,979,827.14
contribution plans
III. Termination
208,961.18 426,638.74 484,638.74 150,961.18
benefits
IV. Current portion of
93,935.66 93,935.66
other benefits
Total 173,034,152.18 680,137,210.03 690,871,292.32 162,300,069.89
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary, bonus,
164,655,970.83 547,553,308.79 555,725,501.76 156,483,777.86
allowance, subsidy
2. Employee welfare 666,925.03 28,195,163.27 28,212,291.70 649,796.60
3. Social insurance 1,367,698.57 26,368,995.25 27,213,373.53 523,320.29
Of which: Medical
1,200,640.78 26,446,761.75 27,295,390.84 352,011.69
insurance premiums
Work-related
167,057.79 1,496,952.65 1,492,701.84 171,308.60
injury insurance
Others 31,534.96 31,534.96
4. Housing fund 458,956.38 17,705,004.42 17,708,217.38 455,743.42
5. Labor union budget
and employee 1,785,568.68 5,270,427.98 4,999,353.26 2,056,643.40
education budget
Total 168,935,119.49 625,092,899.71 633,858,737.63 160,169,281.57
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
3,658,022.92 49,996,646.16 51,971,231.59 1,683,437.49
benefits
2. Unemployment
insurance 131,643.99 1,354,271.20 1,378,298.97 107,616.22
3. Annuity 100,404.60 3,172,818.56 3,084,449.73 188,773.43
Total 3,890,071.51 54,523,735.92 56,433,980.29 1,979,827.14
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.
147
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 35,873,033.86 35,832,025.02
Corporate income tax 23,568,788.01 9,503,893.79
Personal income tax 1,695,872.03 2,569,142.68
Urban maintenance and construction tax 2,828,109.38 2,934,691.53
Property tax 7,925,415.89 8,147,187.30
Land use tax 2,880,439.83 1,817,585.50
Education surcharge 1,421,991.02 2,015,767.71
Other 2,039,570.72 1,475,258.57
Total 78,233,220.74 64,295,552.10
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 134,915,110.77 15,646.07
Other payables 510,821,537.76 440,214,434.98
Total 645,736,648.53 440,230,081.05
(1) Interest Payable
Naught
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 134,915,110.77 15,646.07
Total 134,915,110.77 15,646.07
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Payment for equity transfer 134,409,650.00 134,409,650.00
Account current 142,100,932.05 133,618,069.56
Performance bond 75,214,029.74 67,039,416.12
Relevant expense of sales 72,952,540.76 29,232,738.55
Payments for demolition 36,734,144.44 36,734,144.44
Other 49,410,240.77 39,180,416.31
Total 510,821,537.76 440,214,434.98
2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
Unit A 115,352,181.20 Unsettled
148
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Unit B 5,752,000.00 Unsettled for involving in lawsuits
Total 121,104,181.20
42. Liabilities Held for sale
Naught
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 60,085,490.98 60,322,923.28
Current portion of lease liabilities 3,387,753.54 5,217,587.39
Total 63,473,244.52 65,540,510.67
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT and
9,938,765.60 8,370,764.15
others
Reversed notes that are endorsed and
126,199,563.86 91,821,916.85
undue
Total 136,138,329.46 100,192,681.00
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage loans 8,268,725.21
Credit borrowings 545,179,623.61 808,253,946.99
Less: Current portion of long-term
60,085,490.98 60,322,923.28
borrowings
Total 493,362,857.84 747,931,023.71
46. Bonds Payable
Naught
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 9,865,686.02 12,273,129.57
Less: current portion of lease liabilities 3,387,753.54 5,217,587.39
Total 6,477,932.48 7,055,542.18
149
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
48. Long-term Payables
Naught
49. Long-term Employee Benefits Payable
Naught
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Withdrawal of customers’
Product quality assurance 9,518,319.01 9,587,043.31 claims for quality and product
quality assurance expenses
Total 9,518,319.01 9,587,043.31
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Government
Government grants 97,078,233.43 2,331,221.32 18,548,967.01 80,860,487.74
allocations
Total 97,078,233.43 2,331,221.32 18,548,967.01 80,860,487.74
Item involving government grants:
Unit: RMB
Amo
unt
reco
Am
rded
ount
into Rela
offs
non- ted
et
oper Amount to
cost
ating recorded into asset
Beginning Amount of in Other
Item inco other income in Ending balance s/rel
balance newly subsidy the changes
me the Reporting ated
Rep
in Period to
ortin
the inco
g
Rep me
Peri
ortin
od
g
Peri
od
Government
grants related to 88,313,595.06 1,708,400.00 15,456,657.30 208,250.00 74,357,087.76
assets
The Projects of
the Production
Rela
Expansion and
ted
Technological
18,133,049.12 2,032,275.84 16,100,773.28 to
Transformation
asset
of Components
s
of Small-spacing
and Outdoor
150
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
LED Displays
The Subsidy for
Rela
Metal-organic
ted
Chemical
22,090,261.99 8,258,085.76 13,832,176.23 to
Vapour
asset
Deposition
s
(MOCVD)
The Project of
the Innovation in
Packaging
Technology and
Technological
Rela
Transformation
ted
of Key
5,489,382.21 685,509.34 4,803,872.87 to
Packaging
asset
Equipment of
s
LEDs with High
Colour
Rendering Index
for Illumination
(Phase II)
The Project of
the Innovation in
Packaging
Technology and
Technological Rela
Transformation ted
of Key 3,933,305.60 328,521.60 3,604,784.00 to
Packaging asset
Equipment of s
LEDs with High
Colour
Rendering Index
for Illumination
The Project of
Rela
Resource
ted
Conservation
4,249,848.44 904,683.72 3,345,164.72 to
and
asset
Environmental
s
Protection
The Project of
the Innovation in
Packaging
Technology and
Rela
Technological
ted
Transformation
3,477,734.25 240,686.70 3,237,047.55 to
of Key
asset
Packaging
s
Equipment of
LEDs with
Small Spacing
for Display (II)
The First Batch
Rela
of 2022 Special
ted
Funds for
2,304,000.01 127,999.98 2,176,000.03 to
Industrial
asset
Technological
s
Transformation
151
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
by the Finance
Bureau of Liang
Jiang New Area
Research on
Key
Technologies of
the Third Rela
Generation of ted
High Frequency 1,771,946.26 33,235.86 1,738,710.40 to
Semiconductor asset
Electronic s
Power Module
in Colleges and
Universities
The Second
Batch of Support
Funds for the
"Technological Rela
Transformation ted
of Thousands of 1,766,666.62 100,000.02 1,666,666.60 to
Enterprises" in asset
the Guangxi s
Zhuang
Autonomous
Region for 2021
The 2019
Second Batch of
Rela
Special Funds of
ted
RMB3 million
1,800,000.00 150,000.00 1,650,000.00 to
for the Industrial
asset
and Information
s
Development of
the City
The First Batch
of Special Funds
for the Industrial
and Information
Development for Rela
the Guangxi ted
Zhuang 1,766,666.89 199,999.98 1,566,666.91 to
Autonomous asset
Region for 2017 s
(Technological
Transformation)
for Liuzhou
Guige
The Project of
the Innovation in
Packaging
Technology and
Rela
Technological
ted
Transformation
1,801,098.21 269,756.22 1,531,341.99 to
of Key
asset
Packaging
s
Equipment of
LEDs with
Small Spacing
for Display
152
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
The Project of
the First Batch
Rela
of Support
ted
Funds for
1,500,000.00 150,000.00 1,350,000.00 to
Enterprises in
asset
Liuzhou City for
s
2017 for
Liuzhou Guige
Carrying
forward the
Research and
Development
and Rela
Industrialization ted
of Potassium 970,982.10 56,798.76 914,183.34 to
Nitride-based Rf asset
Devices in the s
Field of Next
Generation
Mobile
Communication
The 2019 14th
Rela
Batch of
ted
Industrial
900,000.00 75,000.00 825,000.00 to
Support Funds
asset
of RMB1.5
s
million
The Project of
Rela
Support Funds
ted
for Enterprises
716,666.61 100,000.02 616,666.59 to
in Liuzhou City
asset
for 2020 for
s
Liuzhou Guige
The First Batch
Rela
of 2022 Special
ted
Funds for Micro,
630,000.00 34,999.98 595,000.02 to
Small, and
asset
Medium
s
Enterprises
The Project of
the Third Batch
of Special Funds
of Innovation-
Rela
driven
ted
Development for
616,000.00 48,000.00 568,000.00 to
the Guangxi
asset
Zhuang
s
Autonomous
Region for 2018
for Liuzhou
Guige
The Project of
Financial Rela
Support for ted
Developing 579,333.28 79,000.02 500,333.26 to
Liuzhou City asset
into an Industrial s
Internet of
153
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Things (IIOT)
Demonstration
City for 2021 for
Liuzhou Guige
The Key Labs of
Semiconductor Rela
Micro Display ted
Enterprises in 510,000.00 37,718.70 472,281.30 to
Guangdong asset
Province (for s
2020)
The
Demonstration
Rela
of Industrial
ted
Internet of
515,334.44 67,332.78 448,001.66 to
Things (IIOT)
asset
Applications for
s
LED Production
Control
The Light-
Rela
converting Films
ted
and Components
734,299.34 294,038.46 440,260.88 to
of Highly
asset
Efficient White-
s
light LEDs
The Project of
Key
Technologies Rela
and ted
Industrialisation 441,240.00 30,495.00 410,745.00 to
of Silica-based asset
Gallium Nitride s
Power
Components
The Project of
Research and
Development
and
Industrialisation
Rela
of NB-IoT-based
ted
Multi-Mode
399,557.60 18,915.90 380,641.70 to
Low-Power
asset
Wide-Area
s
Internet of
Things Node
Chips and
Packaging
Technology
The Project of
the First Batch
Rela
of Support
ted
Funds for
349,999.85 28,000.02 321,999.83 to
Enterprises in
asset
Liuzhou City for
s
2018 for
Liuzhou Guige
The 366,784.04 54,586.26 312,197.78 Rela
154
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Industrialisation ted
of LED Flip- to
chips and Light asset
Source Modules s
for the Backlight
of Large-size
LCDs
The
Construction
Project for the Rela
Centre for ted
Cultivating and 300,000.00 300,000.00 to
Arranging High- asset
Value Patents of s
NationStar
Optoelectronics
Rela
ted
Others 10,499,438.20 1,408,400.00 1,051,016.38 208,250.00 10,648,571.82 to
asset
s
Government
grants related to 8,764,638.37 622,821.32 2,884,059.71 6,503,399.98
income
The Research on
the Key
Technology of Rela
4K/8K Full- ted
colour Micro- 3,407,456.55 1,338,901.10 2,068,555.45 to
LED Displays inco
with Ultra High me
Definition
(UHD)
The Research
on Full-colour
Rela
and Integrated
ted
Packaging of
1,826,069.52 116,069.52 1,710,000.00 to
Micro-LED
inco
Display with
me
High Brightness
and Contrast
The Innovation
Fund for Rela
Enterprises in ted
Liudong New 750,000.00 75,000.00 675,000.00 to
Area for 2017 inco
for Liuzhou me
Guige
The Fund for
the Intelligent
Rela
Transformation
ted
and Upgrading
555,333.26 34,000.02 521,333.24 to
Projects of
inco
Automobile
me
Enterprises for
2021
The Fund for 512,000.08 31,999.98 480,000.10 Rela
155
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
the Project of the ted
Management to
Committee of inco
the Liuzhou me
High-tech
Industrial
Development
Zone
The Special
Fund of the
Science and
Technology
Department of Rela
the Guangxi ted
Zhuang 400,000.00 30,000.00 370,000.00 to
Autonomous inco
Region for me
Innovation-
driven
Development for
2020
LED
Technology for
Efficient Rela
Cultivation in ted
Modern 440,000.00 79,614.21 360,385.79 to
Agriculture and inco
Its me
Demonstrative
Application
Rela
ted
Others 1,313,778.96 182,821.32 1,178,474.88 318,125.40 to
inco
me
Total 97,078,233.43 2,331,221.32 18,340,717.01 208,250.00 80,860,487.74
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT 205,769.48 307,696.87
Liabilities of subsidiaries to be cleared
537.61 1,083.74
and cancelled
Total 206,307.09 308,780.61
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
balance New shares Bonus issue balance
Bonus shares Other (note) Subtotal
issued from profit
The sum of 1,361,994,64 1,361,994,64
shares 7.00 7.00
Other notes:
156
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Beginning balance Ending balance
Item/Investor Increase Decrease
Invested amount Proportion Invested amount Proportion
Restricted shares 10,753,658.00 0.79% 10,753,658.00 0.79%
Unrestricted shares 1,351,240,989.00 99.21% 1,351,240,989.00 99.21%
Total 1,361,994,647.00 100.00% 1,361,994,647.00 100.00%
54. Other Equity Instruments
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other capital reserves 7,245,971.54 7,245,971.54
Total 7,245,971.54 7,245,971.54
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease (note) Ending balance
Treasury shares (A-
82,165,144.15 82,165,144.15
share)
Total 82,165,144.15 82,165,144.15
57. Other Comprehensive Income
Unit: RMB
Reporting Period
Less: Less:
Recorded Recorded
in other in other
comprehen comprehen Attributabl
Income sive sive e to owners Attributabl
Beginning before income in income in Less: of the e to non- Ending
Item
balance taxation in prior period prior period Income tax Company controlling balance
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 498,660,4 446,422,5
subsequentl 61,456,43 9,218,464 52,237,96
84.47 16.62
y be 2.76 .91 7.85
reclassified
to profit or
loss
Changes in - - -
498,660,4 446,422,5
fair value 61,456,43 9,218,464 52,237,96
of other 84.47 16.62
2.76 .91 7.85
equity
157
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
instrument
investment
II. Other
comprehen
sive
income that
-
may 2,437,098 1,298,317 1,138,780 778,851.7
subsequentl 519,465.7
.47 .50 .97 3
y be 7
reclassified
to profit or
loss
Differences
arising
from -
translation 2,437,098 1,298,317 1,138,780 778,851.7
519,465.7
of foreign .47 .50 .97 3
currency- 7
denominate
d financial
statements
Total of
other - - -
498,141,0 1,138,780 447,201,3
comprehen 59,019,33 9,218,464 50,939,65
sive 18.70 .97 68.35
4.29 .91 0.35
income
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
reserves 49,678,756.19 49,678,756.19
Discretionary surplus
reserves 41,680,270.96 41,680,270.96
Total 91,359,027.15 91,359,027.15
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings
3,296,435,828.50 3,111,864,076.86
before adjustments
Beginning balance of total retained
earnings of adjustments (“+” for 18,918.22
increase, “-“ for decrease)
Beginning balance of retained earnings
3,296,435,828.50 3,111,882,995.08
after adjustments
Add: Net profit attributable to owners of
the Company as the parent 168,935,232.54 230,320,570.67
Less: Withdrawal of statutory surplus
reserves 11,785,496.74
Dividend of ordinary shares 134,899,464.70 134,899,464.70
158
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
payable
Add: Others (note) 100,917,224.19
Ending retained earnings 3,330,471,596.34 3,296,435,828.50
Note: Others refer to the retained earnings transferred from accumulative fair value changes previously included in other
comprehensive income when selling stocks in the same period of last year.
List of adjustment of beginning retained earnings:
(1) RMB18,918.22 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
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 4,405,159,052.69 3,604,574,132.92 4,282,577,147.55 3,545,848,583.67
Other operations 160,903,676.33 128,900,695.96 150,754,245.87 108,212,784.36
Total 4,566,062,729.02 3,733,474,828.88 4,433,331,393.42 3,654,061,368.03
Relevant information of revenue:
Unit: RMB
Category of contracts Total
Types of products 4,566,062,729.02
Of which:
General lighting products 1,792,551,295.05
LED packaging and component products 1,253,523,386.12
Vehicle lamp products 806,133,465.65
Trade and other products 713,854,582.20
By operating places 4,566,062,729.02
Of which:
Domestic 3,478,275,919.17
Overseas 1,087,786,809.85
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 RMB251,621,886.53.
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 11,300,137.99 7,589,677.86
Education surcharge 5,980,104.43 4,217,219.09
Resources tax
159
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Property tax 11,009,535.41 7,584,289.36
Land use tax 3,483,007.51 3,046,600.37
Vehicle and vessel use tax 11,986.96 16,021.56
Stamp duty 3,297,666.10 3,690,824.51
Local education surcharge 2,165,938.97 997,922.28
Deed tax 146,289.40
Environmental protection tax 41,537.23 37,241.04
Embankment fee 128.45
VAT of land -2,047,738.45
Water conservancy construction funds 191,148.44
Resources tax 35,167.94
Others 6,966.68 176,041.81
Total 37,443,299.13 25,534,415.81
Other notes:
It was mainly because of the land appreciation tax accrued for the sale of real estate in 2021. The over-accrued
land appreciation tax of RMB2,047,738.45 was released, when the actual payment was made in previous period.
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 57,961,009.41 56,515,402.06
Business propagandize fees and
advertizing fees 30,216,805.26 20,532,657.97
Sales promotion fees 7,233,896.10 5,847,930.26
After-sales expenses 6,867,083.35 4,669,333.02
Business travel charges 4,858,839.15 2,105,508.78
Commercial insurance premium 3,582,158.77 2,387,669.16
Office expenses 2,944,396.54 1,630,996.07
Other 18,256,941.42 17,579,751.25
Total 131,921,130.00 111,269,248.57
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 125,958,952.18 115,142,871.77
Depreciation charge 25,811,976.14 20,892,696.89
Office expenses 13,062,802.09 10,109,798.15
Engineering decoration cost 6,357,723.64 2,822,639.45
Amortization of intangible assets 4,630,270.87 5,813,822.32
Utilities 4,491,149.48 3,880,679.53
Intermediary agency fee 4,119,910.31 5,718,962.01
Labor cost 1,731,130.54 3,618,646.20
Rent of land and management charge 1,104,528.44 418,417.45
Security fund for the disabled 102,385.50 108,310.68
Party building funds 87,374.01 86,660.10
Others 13,487,882.22 17,694,234.89
Total 200,946,085.42 186,307,739.44
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
160
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Employee benefits 108,806,040.39 97,942,302.07
Material consumption 59,589,273.57 62,322,047.45
Depreciation and long-term prepaid
expense 22,944,479.85 21,427,223.15
Certification and testing fee 8,136,407.37 4,983,719.59
Expense on equipment debugging 2,876,742.82 3,503,274.86
Charges related to patents 951,123.75 1,323,834.59
Others 22,844,837.51 21,070,591.27
Total 226,148,905.26 212,572,992.98
Other notes:
In respect of R&D expense incurred by the Company, expense other than that on bench-scale and pilot-scale
production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale
production is included in core business revenue and the relevant costs are included in cost of sales of core
business.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 14,255,244.44 7,068,335.84
Less: Interest income 24,520,047.73 13,000,154.06
Foreign exchange gains or losses -21,315,108.34 -19,186,490.71
Handling charge and others 1,417,289.22 880,584.72
Total -30,162,622.41 -24,237,724.21
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Carry-forward of government grants
14,363,657.28 15,831,850.89
related to assets in the deferred income
Carry-forward of government grants
2,713,059.71 5,665,652.84
related to income in the deferred income
Policy Enjoyment of Preferential
Reduction and Exemption for the Poor 2,247,050.00
with Set up Files
Incentive Subsidy for Digital and
Intelligent Demonstration Workshop of 2,000,000.00
Foshan City in 2022
The Company received the N.C.G.J.
[2022] No. 532 "the Subsidy for
Industrial Logistics in the Second
Quarter of 2022 " in Nanning City of the 808,200.00
Management Committee of the Nanning
New & High-tech Industrial
Development Zone
Return of handling charges for
737,693.99 1,123,272.73
withholding and remittance
The 2021 "100 Enterprises Strive for the
500,000.00
First Place" bonus (partial)
Incentive for standard products of
400,000.00
Foshan City
2022 Special Funds of Nanhai District,
Foshan City for Promoting High-quality 347,360.00
Development of Foreign Trade
The Company received the "2021
Inclusive Subsidy as an Encouragement 333,200.00
for Enterprises to Redouble R&D Input"
161
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
from Nanning Science and Technology
Bureau.
Subsidies for stabilizing employment 230,154.25 1,181,087.47
The Special Fund for Promoting High-
10,000.00 1,842,190.69
quality Economic Development
The Fund of Foshan City for Promoting
2,000,000.00
the Robot Application and Industry
The 2021 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
Grants awarded by the Guangzhou
Municipal Science and Technology
Bureau for the Research and
Development and Industrialisation 1,800,000.00
Project of Potassium Nitride-based Rf
Devices in the Field of Next Generation
Mobile Communication
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 Special Support Fund for the
Industrial Internet of Things (IIOT) 892,500.00
Development in Foshan City
The Special Fund for the Vocational
848,000.00
Skill 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
2021 Guangxi Digital Workshop Reward
500,000.00
Funds
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
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 Fund of the Organisation
Department of the Chancheng District
400,000.00
Party Committee, Foshan City, China,
for Competitive Talent Support Projects
The N.C.G.J. [2021] No. 452 "Fund for
Specialised and Refined Projects" of the
Management Committee of the Nanning 300,000.00
New & High-tech Industrial
Development Zone
Others 2,699,616.82 2,457,536.33
Total 27,389,992.05 40,797,290.95
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
162
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Long-term equity investment income
1,186,031.53 650,457.40
accounted by equity method
Investment income from disposal of
2,154,000.00 2,019,911.56
trading financial assets
Dividend income from holding of other
16,686,333.81 16,055,272.93
equity instrument investment
Income received from financial products
2,423,205.29 888,102.97
and structural deposits
Total 22,449,570.63 19,613,744.86
69. Net Gain on Exposure Hedges
Naught
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Trading financial assets 905,952.44 35,436.66
Of which: gains on changes in fair
905,952.44 35,436.66
value of derivative financial instrument
Trading financial liabilities -23,059,475.00 -10,802,032.63
Total -22,153,522.56 -10,766,595.97
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss on other receivables 1,237,574.86 200,770.69
Bad debt loss on accounts receivable -19,672,657.13 -10,217,235.78
Bad debt loss on notes receivable -512,338.76 -229,783.47
Total -18,947,421.03 -10,246,248.56
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
-14,576,382.64 -19,371,287.36
contract performance cost
V. Loss on impairment of fixed assets -1,500,990.00 -3,529,839.61
XII. Loss on impairment of contract
-313,516.09 -439,922.48
assets
Total -16,390,888.73 -23,341,049.45
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets 110,475.52 82,362.19
163
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Total 110,475.52 82,362.19
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 11,000.00 976,090.45 11,000.00
Total income from scrap of
37,753.32 43,160.43 37,753.32
non-current assets
Of which: income from scrap
37,753.32 43,160.43 37,753.32
of fixed assets
Income from default money 11,400.00 165,006.53 11,400.00
Confiscated income 106,635.54 106,635.54
Other 2,274,125.62 7,805,761.20 2,274,125.62
Total 2,440,914.48 8,990,018.61 2,440,914.48
Government grants recorded into current profit or loss:
Unit: RMB
Whether
influence
Special Same Related to
Distributio Distributio the profits Reporting
Item Nature subsidy or period of assets/relat
n entity n reason or losses of Period
not last year ed income
the year or
not
Job- Related to
Subsidy No No 11,000.00
subsidy income
Supporting
fund for
Related to
industrial Subsidy No No 976,090.45
income
developme
nt
75. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Total losses on disposal of
1,547,347.79 5,943,227.86 1,547,347.79
non-current assets
Of which: Loss on disposal of
1,547,347.79 5,731,670.97 1,547,347.79
fixed assets
Loss on disposal of
0.00 211,556.89 0.00
intangible assets
Penalty 1,748,669.05 249,481.71 1,748,669.05
Losses on inventories 310,656.66 41,677.65 310,656.66
Delaying payment 94,086.36 336,802.22 94,086.36
Others 1,079,810.46 1,422,977.18 1,079,810.46
Total 4,780,570.32 7,994,166.62 4,780,570.32
164
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 34,309,667.76 25,762,699.61
Deferred income tax expense -3,005,303.27 15,649,378.30
Total 31,304,364.49 41,412,077.91
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 256,409,652.78
Current income tax expense accounted at statutory/applicable
tax rate 38,461,447.92
Influence of applying different tax rates by subsidiaries 2,365,215.10
Influence of income tax before adjustment 670,501.88
Influence of non-taxable income -3,371,201.39
Influence of non-deductable costs, expenses and losses
The effect of using deductible losses of deferred income tax
-2,559,863.24
assets that have not been recognized in the previous period
Influence of unrecognized deductible temporary differences
9,404,147.48
and deductible losses
Influence of deduction -13,665,883.26
Income tax expense 31,304,364.49
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
Margin income 35,010,552.18 29,429,389.29
Deposit interest 19,310,323.07 12,436,698.44
Income from waste 12,864,885.36 16,645,457.85
Income from subsidy 10,420,346.33 35,860,211.37
Rental income from property and
3,406,219.56 4,954,716.14
equipment, utility
Income from insurance compensation 1,544.06 5,333.08
Others 60,093,722.57 28,190,106.79
Total 141,107,593.13 127,521,912.96
(2) Cash Used in Other Operating Activities
Unit: RMB
165
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Item Reporting Period Same period of last year
Administrative expense paid in cash 56,194,828.30 51,145,137.99
Selling expense paid in cash 31,789,893.32 34,441,261.70
Finance costs paid in cash 1,521,292.79 843,095.07
Returned cash deposit 28,216,695.73 36,477,347.32
Others 31,773,841.24 47,741,622.81
Total 149,496,551.38 170,648,464.89
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Others 360,759.99
Total 360,759.99
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Cash deposit collected 381,437.71 53,126,214.00
Total 381,437.71 53,126,214.00
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Payment for cash deposit of bank
2,124,043.19 121.82
acceptance bills
Cash paid for acquisition of NationStar
1,061,968,681.64
Optoelectronics under the same control
Others 179,384.83 125,624.96
Total 2,303,428.02 1,062,094,428.42
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
flows generated from operating
activities:
Net profit 225,105,288.29 243,546,630.90
Add: Provision for impairment of assets 35,338,309.76 33,587,298.01
Depreciation of fixed assets, oil-gas
assets, and productive living assets 261,275,385.66 245,702,523.31
Depreciation of right-of-use assets 4,213,175.21 4,314,025.31
Amortization of intangible assets 6,138,499.52 6,259,660.38
166
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Amortization of long-term prepaid
expenses 33,792,488.83 69,990,299.46
Loss from disposal of fixed assets,
intangible assets and other long-term -110,475.52 -82,362.19
assets (gains: negative)
Losses from scrapping of fixed assets
(gains: negative) 1,509,594.47 5,688,510.54
Losses from changes in fair value (gains:
negative) 22,153,522.56 10,766,595.97
Finance costs (gains: negative) 14,255,244.44 7,068,335.84
Investment loss (gains: negative) -22,449,570.63 -19,613,744.86
Decrease in deferred income tax assets
(increase: negative) -3,951,966.78 2,289,157.80
Increase in deferred income tax liabilities
(“-” for decrease) 946,663.51 13,172,863.80
Decrease in inventory (“-” for increase) 367,566,004.75 119,836,200.96
Decrease in operating receivables (“-”
for increase) -492,079,133.11 -211,060,931.19
Increase in operating payables (“-” for
decrease) -65,833,973.76 -354,362,573.03
Others
Net cash generated from/used in
operating activities 387,869,057.20 177,102,491.01
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 1,974,721,331.65 1,435,426,956.09
Less: Beginning balance of cash 1,945,971,307.26 1,940,209,052.92
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents 28,750,024.39 -504,782,096.83
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught
(3) Net Cash Received from Disposal of the Subsidiaries
Naught
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1,974,721,331.65 1,945,971,307.26
Including: Cash on hand 45,923.56 52,093.54
Bank deposit on demand 1,965,961,432.22 1,944,303,946.03
Other monetary assets on
demand 8,713,975.87 1,615,267.69
III. Ending balance of cash and cash
1,974,721,331.65 1,945,971,307.26
equivalents
167
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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
The Company and its subsidiaries’ cash
deposit for bank acceptance bills,
Monetary assets 535,698,818.93 performance bonds, forward exchange
settlement margin and L/C guarantee
deposits
Pledged notes and notes receivable not
Notes receivable 729,042,157.57
derecognized at period-end
Fixed assets 143,870,553.97 Related party mortgage guarantees, see
Intangible assets 10,808,229.15 Part X-XIV-(III) Guarantees for details
Total 1,419,419,759.62
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 282,980,171.77
Of which: USD 35,632,247.28 7.2258 257,471,492.40
EUR 517,843.84 7.8771 4,079,107.71
HKD 51,805.21 0.92198 47,763.37
IDR 44,177,289,846.92 0.000484 21,381,808.29
Accounts receivable 457,282,454.03
Of which: USD 62,710,136.64 7.2258 453,130,905.33
EUR 241,345.50 7.8771 1,901,102.64
HKD 65,771.39 0.92198 60,639.91
IDR 4,524,392,871.90 0.000484 2,189,806.15
Other receivables 3,412.31
Of which: IDR 7,050,231.60 0.000484 3,412.31
Accounts payable 5,966,627.72
Of which: USD 647,046.38 7.2258 4,675,427.73
EUR 600.00 7.8771 4,726.26
IDR 2,658,003,574.38 0.000484 1,286,473.73
Other current assets 683,715.33
Of which: IDR 1,412,634,975.71 0.000484 683,715.33
Other non-current assets 510,864.75
Of which: EUR 64,854.42 7.8771 510,864.75
Other non-current liabilities 966,537.50
Of which: EUR 122,702.20 7.8771 966,537.50
168
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(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
Category Amount Listed items
current profit or loss
Policy Enjoyment of Preferential
Reduction and Exemption for the Poor 2,247,050.00 Other income 2,247,050.00
with Set up Files
Incentive Subsidy for Digital and
Intelligent Demonstration Workshop of 2,000,000.00 Other income 2,000,000.00
Foshan City in 2022
The 2022 Support Fund for Promoting
the Digital Intelligent Transformation of
1,208,400.00 Deferred income
the Manufacturing Industry in Foshan
City (Projects 5008 and 5009)
The Company received the N.C.G.J.
[2022] No. 532 "the Subsidy for
Industrial Logistics in the Second
Quarter of 2022 " in Nanning City of the 808,200.00 Other income 808,200.00
Management Committee of the Nanning
New & High-tech Industrial
Development Zone
Return of handling charges for
737,693.99 Other income 737,693.99
withholding and remittance
The 2021 "100 Enterprises Strive for the
500,000.00 Other income 500,000.00
First Place" bonus (partial)
LED Technology for Efficient
Cultivation in Modern Agriculture and 440,000.00 Deferred income
Its Demonstrative Application
Incentive for standard products of Foshan
400,000.00 Other income 400,000.00
City
2022 Special Funds of Nanhai District,
Foshan City for Promoting High-quality 347,360.00 Other income 347,360.00
Development of Foreign Trade
The Company received the "2021
Inclusive Subsidy as an Encouragement
for Enterprises to Redouble R&D Input " 333,200.00 Other income 333,200.00
from Nanning Science and Technology
Bureau
Funds for the Construction Project for the
Centre for Cultivating and Arranging
300,000.00 Deferred income
High-Value Patents of NationStar
Optoelectronics
169
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Employment Subsidy 271,100.00 Other income 271,100.00
Subsidies for stabilizing employment 230,154.25 Other income 230,154.25
Municipal incentive funds for provincial
specialised and sophisticated small and
200,000.00 Other income 200,000.00
medium enterprises that produce novel
and unique products
The Development and Demonstrative
Application of Deep Ultraviolet LED
200,000.00 Deferred income
Modules and Equipment for Public
Health and Other Fields
Support Fund for the Digital Intelligent
Transformation of the Manufacturing 172,700.00 Other income 172,700.00
Industry
Financial Support for the Second Phase
of the Research on the Key Technology
142,821.32 Deferred income 97,373.13
of Full-colour Micro-LED Displays with
High Brightness and Contrast
Refund of unemployment insurance
140,516.80 Other income 140,516.80
premiums
Municipal Subsidy for the 2022
100,000.00 Other income 100,000.00
Vocational Skill Improvement Campaign
Special Fund for Technological
100,000.00 Other income 100,000.00
Development
2021 High-tech Enterprise Training
100,000.00 Other income 100,000.00
Topic
Chancheng District Postdoctoral
Research Funds from Chancheng District
100,000.00 Other income 100,000.00
Human Resources and Social Security
Bureau of Foshan City (Lan Mingwen)
Others 316,000.00 Other income 316,000.00
Total 11,395,196.36 9,201,348.17
(2) Return of Government Grants
□Applicable Not applicable
85. Other
Naught
170
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Naught
3. Counter Purchase
Naught
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□Yes No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□Yes No
5. Changes in Combination Scope for Other Reasons
Naught
6. Other
Naught
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 Fozhao
Zhicheng Production and Newly
Foshan Foshan 100.00%
Technology sales established
Co., Ltd.
FSL Chanchang
Production and Newly
Optoelectronics Foshan Foshan 100.00%
sales established
Co., Ltd.
Foshan Taimei
Production and Newly
Times Lamps Foshan Foshan 70.00%
sales established
and Lanterns
171
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 66.84%
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.
NationStar Business
Optoelectronics combination
Germany Germany Trade 61.53%
(Germany) Co., under the same
Ltd. control
Foshan Kelian
New Energy Property
Foshan Foshan 100.00% Acquired
Technology development
Co., Ltd.
Fozhao Haikou Haikou Production and
(Hainan) sales Newly
Technology 100.00% 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
Business
Foshan Sigma
Business combination
Venture Capital Foshan Foshan 100.00%
services under the same
Co., Ltd.
control
Foshan Business
NationStar Electronic combination
Foshan Foshan 21.48%
Optoelectronics manufacturing under the same
Co., Ltd. control
172
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Foshan
Business
NationStar
Electronic combination
Semiconductor Foshan Foshan 21.48%
manufacturing under the same
Technology
control
Co., Ltd.
Foshan
Business
NationStar
Electronic combination
Electronic Foshan Foshan 21.48%
manufacturing under the same
Manufacturing
control
Co., Ltd.
Nanyang Baoli Business
Vanadium combination
Henan Nanyang Mining 12.89%
Industry Co., under the same
Ltd. control
Guangdong Business
New Electronic combination
Guangzhou Guangzhou Trade 21.48%
Information under the same
Ltd. control
Guangdong
Business
Fenghua
Electronic combination
Semiconductor Guangzhou Guangzhou 21.45%
manufacturing under the same
Technology
control
Co., Ltd.
Notes to holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the
voting rights but not controlling the investee:
Naught
Significant structural entities and controlling basis in the scope of combination:
Naught
Basis of determining whether the Company is the agent or the principal:
Naught
Other notes:
Naught
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Balance of non-
Name proportion of non- attributable to the non- distributed to non- controlling interests at
controlling interests controlling interests controlling interests the period-end
Foshan Taimei Times
Lamps and Lanterns 30.00% 404,788.01 12,760,002.99
Co., Ltd.
FSL Zhida Electric
Technology Co., Ltd. 33.16% 2,883,324.64 994,800.00 31,422,367.33
Foshan Haolaite
Lighting Co., Ltd. 38.47% 1,154,765.68 160,500.24 15,201,737.61
Nanning Liaowang
Auto Lamp Co., Ltd. 46.21% 9,360,005.34 449,813,619.14
Foshan NationStar
Optoelectronics Co., 78.52% 42,367,172.08 29,139,436.44 2,945,050,076.65
Ltd.
173
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Naught
Other notes:
Naught
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Curren Non- Curren Non-
Name Non- Total Non- Total
Curren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets es assets es
es y es y
Foshan
Taimei
Times
70,25 14,79 85,05 42,51 42,51 72,33 14,29 86,62 45,43 45,43
Lamps
and 5,850 7,372 3,222 9,879 9,879 0,352 3,589 3,942 9,892 9,892
Lanter .25 .64 .89 .59 .59 .64 .70 .34 .42 .42
ns Co.,
Ltd.
FSL
Zhida
Electri 194,9 10,13 205,0 126,7 126,7 148,9 8,928 157,9 85,32 85,32
c
Techn 59,99 1,200 91,19 88,81 88,81 99,06 ,180. 27,24 0,425 0,425
ology 1.96 .12 2.08 0.19 0.19 6.65 94 7.59 .79 .79
Co.,
Ltd.
Foshan
Haolai
te 73,46 9,252 82,71 43,20 43,20 65,96 10,22 76,18 39,26 39,26
Lighti 1,177 ,424. 3,601 1,836 1,836 0,025 4,679 4,704 8,890 8,890
ng .58 39 .97 .74 .74 .19 .49 .68 .83 .83
Co.,
Ltd.
Nanni
ng
Liaow 1,587
1,385 2,237 1,301 1,336 2,453 1,547 1,577
ang 851,5 35,74 ,631, 865,6 30,08
Auto ,421, ,010, ,059, ,802, ,233, ,730, ,819,
88,81 2,960 841.2 01,81 8,072
Lamp 572.7 389.0 124.0 084.1 651.6 991.0 063.5
6.30 .09 8 0.33 .52
Co., 9 9 9 8 1 4 6
Ltd.
Foshan
Nation
3,687 2,623 6,310 1,886 2,540 3,793 2,786 6,579 2,079 2,826
Star 654,1 746,5
,934, ,035, ,970, ,531, ,730, ,005, ,809, ,814, ,712, ,270,
Optoel 99,00 57,86
784.5 237.1 021.7 129.8 138.3 331.6 474.9 806.6 881.2 746.0
ectroni 8.44 4.73
6 9 5 6 0 7 6 3 7 0
cs Co.,
Ltd.
5,667
5,412 3,508 8,920 3,400 4,090 3,685 9,353 3,797 4,574
689,9 ,926, 776,6
Total ,033, ,805, ,838, ,100, ,042, ,857, ,784, ,473, ,119,
41,96 617.4 45,93
377.1 050.6 427.7 780.4 749.0 735.4 352.8 081.3 018.6
8.53 3 7.25
4 4 8 7 0 2 5 5 0
Unit: RMB
Reporting Period Same period of last year
Name
Operating Net profit Total Cash flows Operating Net profit Total Cash flows
174
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
revenue comprehen from revenue comprehen from
sive operating sive operating
income activities income activities
Foshan
Taimei - -
Times 59,784,28 1,349,293 1,349,293 70,083,07 1,590,364 1,590,364
Lamps and 1,102,033 1,288,012
8.09 .38 .38 7.58 .47 .47
Lanterns .59 .25
Co., Ltd.
FSL Zhida
Electric 138,646,7 8,695,560 8,695,560 10,105,09 105,086,0 5,704,490 5,704,490 3,913,866
Technology 88.74 .09 .09 2.96 95.87 .75 .75 .98
Co., Ltd.
Foshan -
Haolaite 34,579,51 3,001,421 3,013,109 33,735,75 2,025,782 2,025,782 7,961,319
Lighting 1,426,965
1.95 .42 .14 9.76 .55 .55 .24
Co., Ltd. .96
Nanning
Liaowang 720,209,3 22,341,74 24,793,71 8,225,803 700,818,1 20,362,59 20,527,06 48,642,33
Auto Lamp 06.91 9.52 6.86 .73 99.55 1.07 4.34 2.49
Co., Ltd.
Foshan
NationStar
1,758,744 53,804,45 53,804,45 102,905,0 1,749,843 86,033,35 85,951,27 20,660,58
Optoelectro
,095.83 2.96 2.96 50.77 ,891.56 5.38 5.40 3.45
nics Co.,
Ltd.
2,711,963 89,192,47 91,656,13 118,706,9 2,659,567 115,716,5 115,798,9 79,890,08
Total
,991.52 7.37 2.43 47.91 ,024.32 84.22 77.51 9.91
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Naught
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(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
175
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught
(2) Main Financial Information of Significant Joint Ventures
Naught
(3) Main Financial Information of Significant Associated Enterprises
Naught
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/Same period of last
Ending balance/Reporting Period
year
Joint ventures:
The total of following items according to
the shareholding proportions
Associated enterprises:
Total carrying value of investment 183,117,824.19 181,931,792.66
The total of following items according to
the shareholding proportions
--Net profit 1,186,031.53 650,457.40
--Total comprehensive income 1,186,031.53 650,457.40
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught
176
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
4. Significant Common Operation
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
Naught
6. 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
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.
(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 2023, 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
177
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 2023, the Company's fixed interest rate loan
balance was RMB744,374,874.84, 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
Item Fair value Fair value Fair value
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
I. Consistent fair value
-- -- -- --
measurement
(I) Trading financial
assets 899,004.54 80,983,830.13 81,882,834.67
1. Financial assets at
fair value through 899,004.54 80,983,830.13 81,882,834.67
profit or loss
1.1 Wealth
management products 80,983,830.13 80,983,830.13
1.2 Investments in
equity instruments 899,004.54 899,004.54
(II) Other equity
761,175,052.72 40,578,568.80 801,753,621.52
instrument investment
(III) Accounts
444,845,917.62 444,845,917.62
receivable financing
Total assets measured
at fair value on a 762,074,057.26 80,983,830.13 485,424,486.42 1,328,482,373.81
recurring basis
(VII) Refer as financial
liabilities measured by
fair value and the
23,741,475.00 23,741,475.00
changes included in the
current gains and
losses
Total liabilities of
consistent fair value 23,741,475.00 23,741,475.00
measurement
II. Inconsistent fair
value measurement -- -- -- --
178
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
2. Basis for determining the market value of continuing and discontinuing level 1 fair value measurement
items
Level 1 fair value measurements are determined based on the market price of equities at the balance sheet date
and the mid-price of the RMB exchange rate published by the State Administration of Foreign Exchange as
quoted prices in an active market.
3. Continuing and discontinuing Level 2 fair value measurement items, qualitative and quantitative
information on the valuation techniques used and significant parameters
The fair value of financial products subscribed by the Group that are measured at fair value is determined by
reference to the expected rate of return provided by the financial institutions.
4. Continuing and discontinuing Level 3 fair value measurement items, qualitative and quantitative
information on the valuation techniques used and significant parameters
(1) The Company measured the investment at cost as a reasonable estimate of fair value because there were no
significant changes in the business environment and operating and financial conditions of the investee, GF Bank.
(2) The Company measured the investee, Shenzhen Zhonghao (Group) Company Limited, at nil as a reasonable
estimate of fair value due to the deterioration of its business environment and operating and financial conditions.
(3) The Company measured the investment at cost as a reasonable estimate of fair value because there were no
significant changes in the business environment and operating and financial conditions of the investee companies,
Foshan Nanhai District United Guangdong New Light Source Industry Innovation Center, Beijing Guang Rong
Union Semiconductor Lighting Industry Investment Center and Guangdong Rising Finance Co., Ltd.
(4) The receivables financing represents bank acceptance notes held by the Company with a short remaining
maturity, the face value of which approximates the fair value and the face amount is used to recognize the fair value
at the statement date.
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning
and Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Naught
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Naught
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Naught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Financial assets and liabilities not measured at fair value include: monetary assets, accounts receivable and
accounts payable, etc. There is small difference between the carrying value of above financial assets and liabilities
179
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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
Shing Holding Hong Kong Investment HKD110,000 13.84% 13.84%
Company Limited
Guangdong
Electronics
Production and
Information Guangzhou RMB1,162 million 9.01% 9.01%
sales
Industry Group
Ltd.
Guangdong Rising
Holdings Group Guangzhou Investment RMB10 billion 6.10% 6.10%
Co., Ltd.
Rising Investment
RMB360 million
Development Hong Kong Investment 1.87% 1.87%
and HKD1 million
Limited
Total 30.82% 30.82%
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 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 2023, the above-mentioned
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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.
4. Information on Other Related Parties
Name Relationship with the Company
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
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. The
Under same actual controller
Pinnacle Branch
Guangdong Zhongjin Lingnan Engineering Technology Co.,
Under same actual controller
Ltd.
Guangdong Huajian Enterprise Group 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.
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
Fenghua Research Institute (Guangzhou) Limited Under same actual controller
Guangdong Rising Research and Development Institute Co.
Under same actual controller
Ltd.
Guangdong Tianxin Commercial Service Co., Ltd. Under same actual controller
Guangdong Xintaochip Microelectronics Co., Ltd. (formerly
Under same actual controller
known as Fenghua Research Institute (Guangzhou) Limited)
Guangdong Zhuyuan Construction Engineering Co., Ltd. Under same actual controller
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Guangzhou Haixinsha Industrial Co., Ltd. Under same actual controller
Guangdong Huajian Engineering Construction Co., Ltd.
(formerly known as Guangzhou Huajian Engineering Under same actual controller
Construction Co., Ltd.)
Zhuhai Dongjiang Environmental Protection Technology Co.,
Under same actual controller
Ltd.
Shandong Zhongjin Lingnan Copper 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
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
Whether exceed
The approval Same period of
Related party Content Reporting Period trade credit or
trade credit last year
not
Guangdong Fenghua
Purchase of
Advanced Technology 1,427,073.05 45,000,000.00 Not 2,757,010.92
(Holding) Co., Ltd. materials
Prosperity Lamps & Purchase of
Components Limited 57,268.76 7,000,000.00 Not 773,460.05
materials
Hangzhou Times
Purchase of
Lighting Electric 222,265.48
Appliances Co., Ltd. materials
Guangdong Zhongnan Receiving labor
58,500,517.50 42,247,083.75
Construction Co., Ltd. service
Guangdong Yixin
Receiving labor
Changcheng 42,453,620.42 14,543,474.14
service
Construction Group
Guangdong Zhongren
Receiving labor
Group Construction 26,677,655.81 7,242,570.34
service
Co., Ltd
Shenzhen Yuepeng Receiving labor
754,528.33 470,768.94
Construction Co., Ltd. service
Guangzhou Haixinsha Receiving labor
467,135.78
Industrial Co., Ltd. service
Foshan Fulong
Receiving labor
Environmental 162,917.93 206,850.94
service
Technology Co., Ltd.
Shenzhen Longgang
Dongjiang Industrial Receiving labor
116,673.57 82,605.66
Waste Treatment Co., service
Ltd. 38,000,000.00 Not
Dongguan Hengjian
Environmental Receiving labor
76,930.19 200,598.11
Protection Technology service
Co., Ltd.
Jiangmen Dongjiang
Receiving labor
Environmental 69,970.76 221,418.86
service
Company Limited
Zhuhai Dongjiang
Receiving labor
Environmental 13,133.52
service
Company Limited
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Guangdong The Great Receiving labor
22,053.55 36,110.42
Wall Building Co., Ltd. service
Guangdong Tianxin
Receiving labor
Commercial Service 18,779.44
service
Co., Ltd.
Guangdong Electronic
Receiving labor
Technology Research 854,625.55
service
Institute
Zhuhai Doumen
District Yongxingsheng
Environmental Industry Receiving labor
46,041.51
Waste Recovery and service
Comprehensive
Treatment Co., Ltd.
Total 130,818,258.61 90,000,000.00 69,904,884.67
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Prosperity Lamps & Components Limited Sale of products 12,641,522.79 11,487,387.08
Guangdong Fenghua Advanced
Sale of products 7,466,567.41 8,534,248.00
Technology (Holding) Co., Ltd.
Guangdong Zhongnan Construction Co.,
Sale of products 3,012,466.81 44,383.37
Ltd.
Shenzhen Zhongjin Lingnan Nonfemet
Sale of products 710,376.99 607,072.04
Co., Ltd.
Shandong Zhongjin Lingnan Copper Co.,
Sale of products 223,796.46
Ltd.
Guangdong Zhongjin Lingnan Engineering
Sale of products 23,113.27
Technology Co., Ltd.
Guangdong Zhuyuan Construction
Sale of products 12,318.58
Engineering Co., Ltd.
Guangdong Rising Holdings Group Co.,
Sale of products 2,787.61
Ltd.
Guangzhou Wanshun Investment
Sale of products 538,207.40
Management Co., Ltd.
Guangdong Yixin Changcheng
Sale of products 441,210.96
Construction Group
Guangzhou Shengdu Investment
Sale of products 281,946.91
Development Co., Ltd.
Guangdong Rising South Construction Co.,
Sale of products 69,965.06
Ltd.
Guangdong Zhongjin Lingnan Equipment
Sale of products 122,855.75
Technology Co., Ltd.
Prosperity (China) Electrical Company
Sale of products 41,285.35
Limited
Guangdong Electronics Information
Sale of products 27,796.46
Industry Group Ltd.
Guangdong Zhongjin Lingnan Junpeng
Sale of products 5,884.96
Intelligent Equipment Co., Ltd.
Total 24,092,949.92 22,202,243.34
Notes:
1. The pricing policy for related-party transactions between the Company and its related parties is as follows:
The pricing of related-party transactions should be market-oriented and subject to the market prices when such a
transaction occurs. The relevant funds should be paid on time according to the actual transaction.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
2. The related-party transactions between the Company and its subsidiaries and between subsidiaries have been
offset during report consolidation.
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
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 2020 2022
Optoelectronics
Construction
Co., Ltd.
Co., Ltd.
Fozhao Guangdong
(Hainan) Zhongnan
30 March 2022 14 May 2023
Technology Construction
Co., Ltd. Co., Ltd.
Guangdong
Foshan
Yixin
Electrical and 29 December
Changcheng 28 May 2021
Lighting Co., 2022
Construction
Ltd.
Group Co., Ltd.
Guangdong
Foshan
Yixin
Electrical and 11 December
Changcheng 1 March 2022
Lighting Co., 2022
Construction
Ltd.
Group Co., Ltd.
Foshan Kelian Guangdong
New Energy Zhongnan 23 December
23 June 2021
Technology Construction 2022
Co., 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. The project is in progress now.
2. The Company’s subsidiary Fozhao (Hainan) Technology Co., Ltd. entered into the General Contracting
Contract for Design and Construction of FSL Hainan Industrial Park Phase I with Guangdong Zhongnan
Construction Co., Ltd. and Guangdong Architectural Design & Research Institute Co., Ltd. on 30 March 2022.
The above parties take charge of the design and construction of FSL Hainan Industrial Park. The total price of
the contract is RMB179,051,600, and the planned total construction period is 390 calendar days (50 days for
design and 340 days for construction). The project is in progress now.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
3. 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
560 calendar days (560 days for construction including 90 days for design). 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 Smart LED Lighting Production Plant in the Gaoming Production Base (1-3
Buildings) with Guangdong Yixin Changcheng Construction Group Co., Ltd. and Guangdong Architectural
Design & Research Institute Co., Ltd. on 1 March 2022. The above parties take charge of the design and
construction of the Gaoming three factory buildings. The total price of the contract is RMB129,991,400, and the
planned total construction period is 285 calendar days (30 days for design and 255 days for construction). The
project is in progress now.
5. The Company’s subsidiary Foshan Kelian New Energy Technology Co., Ltd. entered into the General
Contracting Contract for Design and Construction of the Foshan Kelian Building Decoration Engineering with
Guangdong Zhongnan Construction Co., Ltd. and Guangdong Architectural Design & Research Institute Co.,
Ltd. on 23 June 2021. The above parties take charge of the survey, design and construction of Kelian Building.
The total price of the contract is RMB189,070,200, and the planned total construction period is 240 calendar
days. Among them, except for the self-used layers, the construction period shall be counted from the date when
the construction actually begins. The project is in progress now.
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the Reporting Period in the same period of last year
Guangdong Rising Research
and Development Institute
Plant 582,347.85 563,992.42
Co., Ltd. and its majority-
owned subsidiaries
The Company served as the lessee:
Unit: RMB
Rental expenses of Variable lease
short-term lease payments not
Income expense of
simplified treated included in the Increased right-of-
Paid rent lease liabilities
and low-value measurement of use assets
undertaken
Name Type of asset lease (if lease liabilities (if
of assets applicable) applicable)
lessor leased
The The The The The
Reporti same Reporti same Reporti same Reporti same Reporti same
ng period ng period ng period ng period ng period
Period of last Period of last Period of last Period of last Period of last
year year year year year
Guangd Operati 64,954. 109,714 1,801.2 1,557.4 54,673.
ong ng lease 29 .21 9 6 41
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Great
Wall
Buildin
g Co.,
Ltd.
Guangd
ong
Tianxin
Comme Operati 65,059. 1,211.8
rcial ng lease 65 7
service
Co.,
Ltd.
(4) Information on Related-party Guarantee
Naught
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Naught
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Chairman of the Board 486,397.79 380,814.62
General Manager 475,655.67 355,594.62
Chairman of the Supervisory Committee 467,681.15 335,628.62
Secretary of the Board 275,841.67 227,878.62
Chief Financial Officer 466,313.55 336,094.62
Other 3,782,176.00 2,924,372.07
Total 5,954,065.83 4,560,383.17
(8) Other Related-party Transactions
In accordance with the Financial Service Agreement signed by the Company in 2023, the total maximum daily
deposit balance of the Company and its majority-owned subsidiaries deposited in Guangdong Rising Finance
Co., Ltd. shall not exceed RMB1.2 billion, and the general credit limit provided by Guangdong Rising Finance
Co., Ltd. for the Company and its majority-owned subsidiaries shall not exceed RMB2 billion. As of 30 June
2023, the deposit balance of the Company and its subsidiaries deposited in Guangdong Rising Finance Co., Ltd.
is RMB1,019,445,400. The Company and its majority-owned subsidiaries have signed a credit agreement of
RMB1.5 billion with Guangdong Rising Finance Co., Ltd., of which RMB0 has been used.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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
Monetary capital- Guangdong Rising
4,937,389.67 3,774,186.39
accrued interest Finance Co., Ltd.
Guangdong
Accounts Fenghua Advanced
8,838,027.13 176,760.54 2,805,991.79 56,119.84
receivable Technology
Holding Co., Ltd.
Prosperity Lamps
Accounts
& Components 6,107,629.95 183,228.90 2,754,557.10 82,636.71
receivable Limited
Guangdong
Accounts Zhongnan
Construction Co., 3,622,125.97 123,926.48 218,038.46 18,816.26
receivable
Ltd.
Guangdong Yixin
Accounts Changcheng
Construction 2,049,187.54 72,332.48 2,049,187.54 266,394.38
receivable
Group
Shenzhen
Accounts Zhongjin Lingnan
Nonfemet Co., 870,317.00 26,109.51 546,626.00 16,398.78
receivable
Ltd.
Guangdong
Xintaochip
Microelectronics
Accounts Co., Ltd. (formerly
385,865.86 7,717.32 582,275.60 11,645.51
receivable known as Fenghua
Research Institute
(Guangzhou)
Limited)
Shandong
Accounts
Zhongjin Lingnan 252,890.00 7,586.70
receivable Copper Co., Ltd.
Guangdong
Heshun Property
Accounts Management Co.,
Ltd. Rising 242,112.68 7,263.38 669,790.40 66,979.04
receivable
International
Building Branch
Guangdong
Zhongjin Lingnan
Accounts
Engineering 195,269.90 5,858.10 116,775.00 3,503.25
receivable Technology Co.,
Ltd.
Guangdong
Huajian
Engineering
Construction Co.,
Ltd. (formerly
Accounts
known as 44,297.00 18,398.78 44,297.00 13,289.10
receivable Guangzhou
Huajian
Engineering
Construction Co.,
Ltd.)
Accounts Guangdong Rising 1,540.00 30.80 3,080.00 61.60
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
receivable Research and
Development
Institute Co. Ltd.
Guangdong
Zhongjin Lingnan
Accounts
Equipment 703,256.00 103,815.51
receivable Technology Co.,
Ltd.
Guangdong Rising
Accounts Rare Metals and
New Photoelectric 457,703.96 45,770.40
receivable
Materials Co., Ltd.
Guangdong
Zhongjin Lingnan
Accounts
Junpeng Intelligent 20,179.00 605.37
receivable
Equipment Co.,
Ltd.
Prosperity (China)
Prepayments Electrical 39,428.00 39,428.00
Company Limited
Guangdong
Tianxin
Prepayments 6,912.00
Commercial
Service Co., Ltd.
Guangdong
Fenghua Advanced
Prepayments 148.68 148.68
Technology
Holding Co., Ltd.
Guangdong
Fenghua Advanced
Other receivables 223,372.07 4,467.44 178,585.99 3,571.72
Technology
Holding Co., Ltd.
Guangdong
Tianxin
Other receivables 67,165.92 1,343.32
Commercial
Service Co., Ltd.
Nanning Ruixiang
Other receivables Industrial 5,000.00
Investment Co., L
Guangdong The
Other receivables Great Wall 53,041.92 4,708.84
Building Co., Ltd.
Total 27,888,679.37 635,023.75 15,017,148.83 694,316.31
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Guangdong Zhongren Group
Notes payable 67,154,037.47 52,101,816.43
Construction Co., Ltd
Guangdong Fenghua
Notes payable Advanced Technology 320,747.68 449,283.50
Holding Co., Ltd.
Guangdong Electronic
Notes payable 689,500.00
Technology Research Institute
Guangdong Zhongren Group
Accounts payable 104,280,896.68 129,250,643.46
Construction Co., Ltd
188
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Guangdong Fenghua
Accounts payable Advanced Technology 2,766,260.53 3,038,287.38
Holding Co., Ltd.
Guangzhou Haixinsha
Accounts payable 461,805.00
Industrial Co., Ltd.
Hangzhou Times Lighting
Accounts payable 112,000.00 99,115.04
Electric Appliances Co., Ltd.
Prosperity Lamps &
Accounts payable 57,268.76 773,460.05
Components Limited
Foshan Fulong Environmental
Accounts payable 56,630.00 64,375.00
Technology Co., Ltd.
Dongguan Hengjian
Accounts payable Environmental Protection 51,546.00 46,520.40
Technology Co., Ltd.
Shenzhen Longgang
Accounts payable Dongjiang Industrial Waste 23,184.00 14,010.00
Treatment Co., Ltd.
Zhuhai Dongjiang
Accounts payable Environmental Protection 10,645.53
Technology Co., Ltd.
Guangdong Electronic
Accounts payable 46,500.00 736,000.00
Technology Research Institute
Shenzhen Yuepeng
Accounts payable 1,885,437.50
Construction Co., Ltd.
Guangdong Fenghua
Other payables Advanced Technology 135,475,547.74 135,446,928.57
Holding Co., Ltd.
Nanning Ruixiang Industrial
Other payables 115,352,181.20 120,352,181.20
Investment Co., Ltd.
Guangdong Zhongnan
Other payables 14,633,468.54 846,938.10
Construction Co., Ltd.
Guangdong Huajian
Other payables 3,607,588.15 3,216,344.40
Enterprise Group Co., Ltd.
Shenzhen Yuepeng
Other payables 474,900.64 474,300.64
Construction Co., Ltd.
Guangzhou Haixinsha
Other payables 162,266.76
Industrial Co., Ltd.
Zhuhai Dongjiang
Other payables Environmental Protection 50,000.00
Technology Co., Ltd.
Shenzhen Longgang
Other payables Dongjiang Industrial Waste 50,000.00
Treatment Co., Ltd.
Dongguan Hengjian
Other payables Environmental Protection 50,000.00
Technology Co., Ltd.
Contract liabilities, other Prosperity Lamps &
current liabilities 59,428.00 59,428.00
Components Limited
Total 445,946,402.68 448,855,069.67
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
that besides the enterprise above that is in horizontal competition with the Company for now, if the products or
189
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 Holdings
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 Holdings , 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.
(4) Commitment maker: Rising Holdings , Electronics Group, Hong Kong Rising Investment, and Hongkong Wah
Shing
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Contents of Commitment: The Promisors have made commitments as follows to avoid horizontal competition,
protect interests of the Company and other shareholders:
1. They shall conduct supervision and restraint on the production and operation activities of themselves and
their relevant enterprises so that, 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;
(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. As of the issuance of this statement and commitment, if any business opportunity obtained by the
commitment maker (hereinafter referred to as "we" or "us") from any third party constitutes or may constitute
horizontal competition with the business operated by FSL and its wholly-owned and majority-owned
subsidiaries, we will notify FSL forthwith and give up such an opportunity to FSL at its requirement. Then, FSL,
under the same conditions, shall preferentially acquire the assets or equity interests of the relevant business at a
fairer and more reasonable price. Doing so helps us avoid horizontal competition or potential horizontal
competition with FSL and its wholly-owned and majority-owned subsidiaries.
4. We undertake not to provide any assistance in respect of funds, business, techniques, management, and
business secrets to any other company, business, economic organisation, or individual in or potentially in
horizontal competition with FSL or its wholly-owned or majority-owned subsidiaries.
5. We undertake not to engage, in any form, in any business activities that may impact the operations and
development of FSL and its wholly-owned and majority-owned subsidiaries, including:
(1) using our existing social resources and customer resources to hinder or restrict the independent development
of FSL or its wholly-owned or majority-owned subsidiaries;
(2) fabricating and disseminating news unfavourable to FSL and its wholly-owned and majority-owned
subsidiaries and damaging their goodwill;
(3) leveraging our holdings in or control over FSL to exert adverse influence, thus causing abnormal changes in
senior management members, R&D personnel, and technical personnel of FSL and its wholly-owned and
majority-owned subsidiaries; and
(4) engaging professional technical or marketing personnel or senior management members from FSL and its
wholly-owned and majority-owned subsidiaries.
6. We undertake that, if we violate the foregoing commitments and thus cause financial losses to FSL, we shall
assume the corresponding legal liability for all FSL's losses arising therefrom.
Date of commitment making: 14 March 2023
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 Hong Kong Rising Investment have made a commitment that
during their direct or indirect holding of the Company’s shares, they shall 1. Strictly abide by the regulatory
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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 Holdings
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 Holdings , Rising Capital, and Hongkong Wah Shing
Contents of Commitment: They have made a commitment that during their direct or indirect holding of FSL 1.
activities of themselves strictly abide by the regulatory documents of the CSRC and the SZSE,FSL’s Articles of
Association, etc. and not harm the interests of the Company or other shareholders of FSL in their production and
operation activities by taking advantage of their position as the controlling shareholder and actual controller; 2.
make sure that they or their other controlled subsidiaries, branch offices, jointly-run or associated companies (the
"Relevant Enterprises" for short) will try their best to avoid or reduce related-party transactions with FSL or FSL’s
subsidiaries; 3. strictly follow the market principle of justness, fairness and equal value exchange for necessary
and unavoidable related-party transactions between them and their Relevant Enterprises and FSL, and withdraw
from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a general
meeting or a board meeting, and execute the relevant approval procedure and information disclosure duties
pursuant to the applicable laws, regulations and regulatory documents. Where the aforesaid commitments are
broken and a loss is thus caused for FSL, its subsidiaries or FSL’s other shareholders, they shall be obliged to
compensate.
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Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
(4) Commitment maker: Rising Holdings, Electronics Group, Hong Kong Rising Investment, and Hongkong
Wah Shing
Contents of Commitment: To protect interests of the Company and other shareholders, they have made a
commitment that during their direct or indirect holding of FSL:
1. activities of themselves strictly abide by the regulatory documents of the CSRC and the SZSE,FSL’s Articles
of Association, etc. and not harm the interests of the Company or other shareholders of FSL in their production
and operation activities by taking advantage of their position as the controlling shareholder and actual controller;
2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run or associated companies
(the "Relevant Enterprises" for short) will try their best to avoid or reduce related-party transactions with FSL or
FSL’s subsidiaries;
3. strictly follow the market principle of justness, fairness and equal value exchange for necessary and
unavoidable related-party transactions between them and their Relevant Enterprises and FSL, and withdraw
from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a
general meeting or a board meeting, and execute the relevant approval procedure and information disclosure
duties pursuant to the applicable laws, regulations and regulatory documents. We undertake that we will neither
transfer nor convey benefits by taking advantage of related-party transactions nor harm, through the improper
exercise of rights for shareholders or other improper means, the legitimate rights and interests of the Company
or the other shareholders of the Company.
4. We have disclosed our related parties and related-party transactions during our Reporting Period in full and in
detail as required by the laws and regulations on securities regulation as well as normative documents. Except
for the related-party transactions already disclosed in relevant application documents on the Company's
issuance of A-shares to specific objects in 2023, we and other companies or businesses under our control have
not effected any related-party transactions with FSL or its wholly-owned or majority-owned subsidiaries that
should have been disclosed as required by laws, regulations, and relevant provisions of securities regulatory
authorities.
5. If we violate the foregoing commitments and thus cause financial losses to FSL and the other shareholders,
we shall assume the corresponding legal liability for all the losses of FSL and the other shareholders arising
therefrom.
Date of commitment making: 14 March 2023
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
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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 Holdings
Contents of Commitment: 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, deputy GMs, CFO, Secretary of the Board of Directors and other
senior management personnel of the Company will not hold positions other than directors and supervisors in the
enterprises wholly owned, controlled or actually controlled by it and its subsidiaries (hereinafter referred to as
"subsidiaries"), and will not receive salaries from it or its subsidiaries. 2. It will ensure the asset independence of
the Company. (1) It promises that the Company has independent and complete assets. (2) It promises that it and its
subsidiaries will not illegally occupy the Company’s funds and assets in any way. 3. It will ensure the financial
independence of the Company: (1) It promises that the Company will have an independent financial department
and financial accounting system. (2) It promises that the Company will have a 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
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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
(3) Commitment maker: Rising Holdings, Electronics Group, Hong Kong Rising Investment, and Hongkong
Wah Shing
Contents of Commitment:
1. Ensure the independence of FSL in personnel: (1) We promise the absolute independence of FSL and its
subsidiaries (the same below, collectively referred to as "FSL") from us and other companies, businesses, and
economic organisations under our control in labour, human resource and salary management. (2) We promise
that FSL's senior management personnel will work only for and receive remuneration from FSL, not holding
any positions in us or other companies, businesses, or economic organisations under our control other than
director and supervisor. (3) We promise not to intervene in the exercise of authority by the Shareholders'
General Meeting and Board of Directors of FSL to decide personnel appointment and removal.
2. Ensure the independence of FSL in organisation: (1) We promise that FSL has a sound corporate governance
structure with an independent and complete organisation structure. (2) We promise that the Shareholders'
General Meeting, Board of Directors, and Supervisory Committee of FSL will independently execute their
functions according to laws, regulations and FSL's Articles of Association. (3) We promise that FSL will have
the right to set up and adjust functional departments independently and will not be subject to rule-violating
intervention from us or other companies, businesses, or economic organisations under our control. We promise
that neither the superior-subordinate relationship nor mixed ownership and co-office situation exist between
FSL and us or other companies, businesses, or economic organisations under our control.
3. Ensure the asset independence and integrity of FSL: (1) We promise that FSL will have independent and
complete assets related to production and operations, which are not shared with us or other companies,
businesses, or economic organisations under our control. (2) We promise that FSL's office and business
premises are independent from those of us and other companies, businesses, and economic organisations under
our control. (3) We promise that except for regular business dealings, neither FSL's funds nor assets will be
occupied by us or other companies, businesses, or economic organisations under our control.
4. Ensure the independence of FSL in business: (1) We promise that FSL has relevant qualifications for
conducting business activities independently, is capable of independent, autonomous, and ongoing operations in
the market, and does not rely on us or other companies, businesses, or economic organisations under our control
in production and operations. (2) We promise that we and other companies, businesses, and economic
organisations under our control will not engage in business in competition with FSL or other companies,
businesses, or economic organisations under its control. (3) We promise that we and other companies,
businesses, and economic organisations under our control will minimise the related-party transactions with FSL
and other companies, businesses, and economic organisations under its control. For necessary and unavoidable
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related-party transactions, we promise to operate fairly following the market-oriented principle and at fair prices,
and execute relevant approval procedures and the duty of information disclosure pursuant to the applicable laws,
regulations and regulatory documents.
5. Ensure the independence of FSL in finance: (1) We promise that FSL will have an independent financial
department and financial accounting system with normative, independent financial accounting rules. (2) We
promise that FSL will have independent bank accounts and will not share bank accounts with us or other
companies, businesses, or economic organisations under our control. (3) We promise that FSL's financial
personnel do not hold concurrent positions in us or other companies, businesses, or economic organisations
under our control. (4) We promise that FSL can make financial decisions independently and that we will not
intervene in FSL's use of its funds. (5) We promise that FSL will independently pay its tax according to law.
If we violate the foregoing commitments, we shall be liable for the losses of FSL arising therefrom.
Date of commitment making: 14 March 2023
Term of commitment: Long-standing
Fulfillment: In execution
4. Commitment on effective performance of measures to fill up returns
(1) Commitment maker: Rising Holdings, 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 refuse 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.
(2) Commitment maker: Rising Holdings, Electronics Group, Hong Kong Rising Investment, and Hongkong Wah
Shing
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 offering of the Company to specific
targets, 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
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law.
As one of the subjects responsible for the measures to fill up returns, if they violate the above commitments or
refuse 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: 14 March 2023.
Term of commitment: Long-standing.
Fulfillment: In execution.
5. Commitment on measures to fill up returns for risks arising from diluting immediate return in major
asset restructuring
Commitment markers: Directors and senior management of the Company
Contents of Commitment: 1. We promise not to transfer benefits to other units or individuals free of charge or
under unfair conditions, and not to harm the interests of the Company in any other ways. 2. We promise to
restrain position-related consumption behavior. 3. We promise not to use the Company's assets to engage in
investment and consumption activities unrelated to the performance of duties. 4. We promise that the future
remuneration system formulated by the Board of Directors or the Remuneration and Assessment Committee
will be linked to the implementation of the Company's measures to fill up returns. 5. If the Company formulates
an equity incentive plan in the future, we will actively promote the exercise conditions of the future equity
incentive plan to be linked with the implementation of the Company's measures to fill up returns. 6. From the
date of issuance of these commitments to the completion of this major asset restructuring of the Company, if the
CSRC makes other new regulatory provisions on measures to fill up returns and the relevant commitments, and
these commitments cannot meet these provisions of the CSRC, we promise to issue supplementary
commitments in accordance with the latest regulations of the CSRC at that time. 7. We promise to earnestly
fulfil the compensation measures formulated by the Company and any commitments we make. If we violate any
of these commitments and cause losses to the Company or investors, we are willing to bear corresponding legal
responsibilities to the Company or investors according to law.
Date of commitment making: 27 October 2021
Term of commitment: Long-standing.
Fulfilment: In execution
6. Commitment on compensation for possible violations of laws and regulations by NationStar
Optoelectronics
Commitment maker: Rising Holdings, 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.
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7. Commitment on the truthfulness, accuracy and completeness of the information provided during this
major asset restructuring
(1) Commitment maker: Rising Holdings, 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 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 markers: Directors and senior management of the Company
Contents of Commitment: 1. We have provided relevant information and documents (including but not limited to
original written materials, duplicate materials or oral testimony, etc.) related to this trading to the intermediaries
providing professional services of auditing, assessment, legal and financial consultancy for this trading. We
promise that the copies or photocopies of the documents and materials provided are consistent with the originals,
and that the signatures and seals of the documents and materials are authentic, and the signatories of the
documents have been legally 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. We also promise to bear individual and joint and several liability. 2. We promise that the
information provided is true, accurate and complete. In case of any losses caused to investors due to any false
presentations, misleading statements or material omissions in the information provided, we will be liable for
compensation according to law. 3. Where the information provided or disclosed by us in this trading is suspected
of false records, misleading statements or material omissions, and we are filed for investigation by the judicial
organ or by the CSRC, the shares with interests in the listed company will not be transferred until the investigation
conclusion is formed.
Date of commitment making: 27 October 2021
Term of commitment: Long-standing.
Fulfilment: In execution
8. Commitment on the clarity of the underlying assets of this major asset restructuring
(1) Commitment maker: Electronics Group
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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
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.
Term of commitment: Long-standing.
Fulfillment: In execution.
(2) Commitment maker: Rising Holdings and Rising Capital
Contents of Commitment: Rising Holdings Group and Rising Capital promise that the 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 and Rising Capital.
Date of commitment making: 27 October 2021.
Term of commitment: Long-standing.
Fulfillment: In execution.
9. Commitment on the truthfulness, accuracy and completeness of the information provided in
application documents for issuance
Commitment maker: Rising Holdings, Electronics Group, Hong Kong Rising Investment, and Hongkong Wah
Shing
Contents of Commitment: 1. They promise that the information provided for the specific targets of this offering 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.) to the intermediaries engaging in this offering to specific targets. They
promise that the copies or photocopies of the documents and materials provided are consistent with the originals,
and that the signatures and seals of the documents and materials are authentic, and the signatories of the
documents have been legally 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 for this offering to specific targets are true, accurate and complete, and there are no false records, misleading
statements or material omissions. 4. During the application and review period of this offering to specific targets,
they will disclose relevant information 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,
and intermediaries participating in the preparation for this offering to specific targets, they will be liable for
compensation according to law. 6. Where the information provided or disclosed by them in this offering to
specific targets 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.
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Date of commitment making: 14 March 2023.
Term of commitment: Long-standing.
Fulfillment: In execution.
10. Commitment on the subscription for A-shares offered to specific objects in 2023
Commitment maker: Rising Holdings
Contents of Commitment: 1. We agree to subscribe for A-shares offered to specific objects with a subscription
amount of 25% of the total amount of funds raised. The subscription volume shall be determined according to
the issuer's actual issue price and the subscription amount of the subscribers after the Stock Subscription
Agreement of Foshan Electrical and Lighting Co., Ltd. comes into force. In the actual issuance phase ahead, if
the subscription volume calculated based on the ultimate inquiry result contains fractional shares, such shares
shall be rounded off. 2. The base day for pricing the shares to be offered to specific objects is the first day of the
issuance period. The issue price shall not be lower than 80% of the average trading price of FSL's A-shares for
the 20 trading days prior to the base day for pricing (that is, the "bottom issue price of this issuance"), which
equals the total amount of the Company's shares traded in the 20 trading days prior to the base day for pricing
divided by the total volume of the Company's shares traded in this period. Upon the review and approval by the
Shenzhen Stock Exchange (SZSE) of the issuance of shares to specific objects and the consent of the China
Securities Regulatory Commission (CSRC) to the registration, the ultimate issue price shall be determined by
our Board of Directors with authorisation of the Shareholders' General Meeting and in consultation with the
sponsor (lead underwriter) according to the subscription offers from the issuance objects in compliance with the
relevant provisions of the CSRC and SZSE and the principle of price preference. In case of ex-rights or ex-
dividend matters occurring to FSL's shares between the base day for pricing and the date of issuance, such as
dividend payout, bonus issue, and capital reserve converted into share capital, the bottom issue price of the
issuance of shares to specific objects shall be adjusted accordingly. We shall not participate in the inquiry
process of the pricing of this issuance but undertake to accept the market inquiry result and to subscribe for the
shares to be offered by the Company to specific objects at the same price as other issuance objects. If the issue
price of this issuance cannot be determined through the market inquiry, we will subscribe for the shares offered
by FSL to specific objects at the bottom issue price of this issuance. 3. We agree not to transfer the shares for
which we subscribe this time within 18 months of the completion of the issuance of shares to specific objects.
However, if we and parties acting in concert have increased our holdings by more than 2% of the shares FSL
already offered in the 12 months prior to the completion of this issuance, we shall not transfer the shares for
which we subscribe this time within 36 months of the completion of this issuance.
Date of commitment making: 14 March 2023
Term of commitment: Until the expiration of the restriction period for the shares issued to Rising Holdings
Group in 2023.
Fulfilment: In execution.
11. Commitment on the absence of acceptance of financial assistance, compensation, promise of benefits
or arrangements agreed upon otherwise
Commitment maker: Rising Holdings
Contents of Commitment: The funds used by us to subscribe for the shares offered this time are all legal self-
owned funds. There is no external fund raising, proxy holding, structural arrangement or direct or indirect use of
funds of FSL and its related parties (except for us) for this subscription. There is no financial support,
compensation, promise of benefits or other arrangements by FSL or its controlling shareholder, actual controller
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(except for us), or substantial shareholders to me directly or through their stakeholders. Our subscription for the
shares of this issuance is free of shareholding as prohibited by laws and regulations. The intermediary for this
issuance or its head, senior management members, or handling personnel are free of illegal shareholding or
improper transfer of benefits.
Date of commitment making: 14 March 2023
Term of commitment: Until the completion of A-shares issuance to specific objects in 2023.
Fulfilment: In execution.
12. About non-occupation of the Company's funds or assets
Commitment makers: Rising Holdings, Electronics Group, Hong Kong Rising Investment, and Hongkong Wah
Shing
Contents of Commitment: As at the date of issuance of the Proposal on the Company's Issuance of A-Shares to
Specific Objects in 2023 of FSL, we had not occupied the Company's funds or assets. Nor had the Company
provided illegal guarantees for us. Upon the completion of this issuance, the Company shall continue to strictly
observe relevant laws, regulations, and internal control systems to prevent the provision by the Company of
illegal guarantees for us.
Date of commitment making: 14 March 2023
Term of commitment: Until the completion of A-shares issuance to specific objects in 2023.
Fulfilment: In execution.
13. Commitment on the measures to fill up immediate returns diluted by the issuance of A-shares to
specific objects
Commitment markers: Directors and senior management of the Company
Contents of Commitment: 1. We promise not to transfer benefits to other units or individuals free of charge or
under unfair conditions, and not to harm the interests of the Company in any other ways. 2. We promise to
restrain position-related consumption behaviour. 3. We promise not to use the Company's assets to engage in
investment and consumption activities unrelated to the performance of duties. 4. We promise that the
remuneration system formulated by the Board of Directors or the Remuneration and Assessment Committee is
linked to the implementation of the Company's measures to fill up returns. 5. If the Company implements an
equity incentive plan in the future, the exercise conditions of the future equity incentive plan will be linked with
the implementation of the Company's measures to fill up returns. 6. From the date of issuance of these
commitments to the completion of the issuance of shares to specific objects, if the CSRC makes other new
regulatory provisions on measures to fill up returns and the relevant commitments, and these commitments
cannot meet these provisions of the CSRC, we promise to issue supplementary commitments in accordance with
the latest regulations of the CSRC at that time. As one of the subjects responsible for the measures to fill up
returns, if we violate the above commitments or refuse to fulfil the above commitments, we agree that the
securities regulatory agencies such as the CSRC and the SZSE will punish us or take relevant regulatory
measures in accordance with the relevant regulations and rules they formulated or issued.
Date of commitment making: 14 March 2023
Term of commitment: Long-standing.
Fulfilment: In execution.
14. Commitment on matters on special self-inspection of the real estate business
Commitment markers: Rising Holdings, Electronics Group, Hong Kong Rising Investment, Hongkong Wah
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Shing and the directors and senior management of the Company
Contents of Commitment: The Self-inspection Report has truthfully disclosed the self-inspection of the real
estate development projects of the Company and its subsidiaries between 1 January 2020 and 31 December
2022. If the Company is identified with illegalities or violations not disclosed as required by the self-inspection,
such as idle land, land speculation, holding real estate projects from selling, and house price rigging, thus
causing losses to itself and the investors, we/I will be liable for compensation in line with relevant laws,
regulations, and requirements of securities regulatory authorities.
Date of commitment making: 14 March 2023
Term of commitment: Long-standing.
Fulfilment: In execution.
15. Commitment on the confirmation of and commitment to matters concerning the absence of a
reduction in the shares in the issuer
Commitment makers: Rising Holdings, Electronics Group, Hong Kong Rising Investment, and Hongkong Wah
Shing
1. We confirm that, between the date six months prior to the date of the resolution of the Board of Directors on
this issuance of shares to specific objects to the issuance of this letter, we have not reduced our shares in FSL. 2.
The base day for pricing the shares to be offered by FSL to specific objects is the first day of the issuance period.
We promise not to transfer our shares in FSL within six months from the date of issuance of this letter to the
completion of this issuance.
Date of commitment making: 5 July 2023
Term of commitment: Six months from the date of issuance of this commitment to the completion of this
issuance.
Fulfilment: In execution.
16. Commitment on share subscription
Commitment maker: Rising Holdings
If no one quotes in this issuance of shares to specific objects, we will still participate in the subscription.
However, we shall not participate in the market inquiry of the pricing of this issuance but undertake to accept
the market inquiry result and to subscribe at the same price as investors. If the issue price of this issuance
cannot be determined through the foregoing market inquiry, we will subscribe for the shares offered by FSL to
specific objects at the bottom issue price of this issuance. The subscription amount shall be 25% of the total
amount of funds raised this time. The subscription volume shall be determined according to the actual
subscription amount and issue price.
Date of commitment making: 5 July 2023
Term of commitment: Till the completion of the issuance of A-shares to specific objects in 2023.
Fulfilment: In execution.
8. Other
Naught
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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
Commitment to the development of Haikou plot
In November 2021, Hainan Technology, a wholly-owned subsidiary of the Company, acquired an industrial land
located in Mei’an Science and Technology New City, Haikou, with a land area of 34,931.13 square meters and a
land price of RMB26,596,784.43. In the same month, Hainan Technology signed the Agreement on Industrial
Project Development and Land Access with Haikou National High-tech Industrial Development Zone
Management Committee (hereinafter referred to as the “Haikou Development Zone Management Committee”).
The agreement stipulates that the above-mentioned plot is used for the development of marine lighting R&D
and manufacturing base projects, and the investment of fixed assets is approximately RMB314 million
(including plants, equipment, and land, equivalent to RMB6 million per mu (1 mu equals to 666.67 square
meters). Hainan Technology promises to complete the planning scheme design within two months from the date
of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land;
complete the construction drawing design within three months after completing the planning scheme design and
obtain the Building Construction Permits and start construction at the same time (subject to the foundation
concrete pouring of the main buildings). The project will be put into production within 18 months from the date
of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land. From
the date of signing the contract to the first year after the project is put into production, the accumulated tax
payment is not less than RMB10 million; the accumulated tax payment in the first two years is not less than
RMB27.4 million; the accumulated tax payment in the first three years is not less than RMB67.1 million; the
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
accumulated tax payment in the first four years is not less than RMB117 million; the accumulated tax payment
in the five years is not less than RMB203 million. The total industrial output value (or revenue) in the first year
after the project is put into production is not less than RMB218 million; the accumulated value in the first two
years is not less than RMB433 million; the accumulated value in the first three years is not less than RMB929
million; the accumulated value in the first four years is not less than RMB1,578 million; the accumulated value
in the five years is not less than RMB2.62 billion. If the project fails to start construction within 12 months from
the date of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction
Land due to Hainan Technology reasons, the Haikou Development Zone Management Committee has the right
to unilaterally terminate the contract and the municipal government will recover the land use rights according to
law; if the total amount of tax paid in the year after the project is put into production does not reach the total
annual tax payment as agreed, Hainan Technology shall pay liquidated damages to the Haikou Development
Zone Management Committee according to the difference; if Hainan Technology has idle land not due to
government reasons and force majeure, the municipal government shall collect idle land fees or recover the
right to use state-owned construction land.
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1. Litigation between FSL Zhida Electric Technology Co., Ltd. and Shenzhen Secket Electrician Technology
Co., Ltd.
The plaintiff Shenzhen Secket Electrician Technology Co., Ltd. (hereinafter referred to as “Secket”) claimed
that it enjoyed the utility model patent of a safety socket and that the defendants Chengdu ArGangle Insulated
Electrical Manufacturing Co., Ltd., Chengdu ArGangle Yuanhu Technology Co., Ltd., FSL Zhida Electric
Technology Co., Ltd. and Zhejiang Tmall Network Co., Ltd. produced and sold the products involved without
its authorization. Therefore the plaintiff sued to the court for compensation of RMB11 million. The plaintiff
filed the lawsuit in three cases and Guangzhou Intellectual Property Court heard the three cases together [Case
No.: (2021) Y. 73 M.ZH. No. 1775, 1776 and 1880]. The case was heard on 25 April 2022, for the second time
on 20 June, for the third time on 23 September and for the fourth time on 22 November, and has not been
concluded as of the date of this report.
2. Litigation between the Company and Xuzhou Longxiang Lighting Equipment Sales Co., Ltd.
Xuzhou Longxiang Lighting Equipment Sales Co., Ltd. (hereinafter referred to as “Longxiang”) is a distributor
of the Company for many years and defaulted on the payment for goods of the Company totalling
RMB2,427,830.95 as of August 2022. Therefore the Company filed a lawsuit with Chancheng District People’s
Court [(2022) Y. 0604 M.ZH. No. 32528]. The trial of the case was held on 21 February 2023 in the Foshan
Chancheng District People’s Court. As of the date of this report, the above case has not been concluded. The
Company owns the property of Long Xiang as collateral and has provided a bad debt provision of
RMB559,463.71 based on expected credit losses.
3. Litigation between Liuzhou Lighting, Nanning Liaowang and Laster Electronic Tech (Dongguan) Co., Ltd.
Laster Electronic Tech (Dongguan) Co., Ltd. (hereinafter referred to as "Laster Electronic") is the supplier of
Liuzhou Guige and Nanning Liaowang. Laster Electronic requests that: 1. Liuzhou Lighting shall pay the
arrears of RMB77,932.00 and the corresponding interest loss, and compensate for the material loss
RMB405,461.00 caused by the production of the products in question and interest loss of RMB25,337.10, as
well as compensate for the loss of storage fee and labor storage fee of RMB26,000.00 caused by the material
stagnation; 2, Nanning Liaowang shall pay the arrears of RMB34,822.00 and the corresponding interest loss,
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
and compensate for the material loss of RMB401,029.00 and interest loss of RMB23,385.81 caused by the
production of the product in question, as well as compensate for the loss of storage fee and manpower storage
fee of RMB24,000.00 caused by the material stagnation; 3.Liuzhou Lighting and Nanning Liaowang shall pay
RMB309,793.00 and RMB1,595,680.00 respectively to Laster Electronic for the apportioned cost of mold test.
The first trial of the lawsuit is to be notified by the court, and the result of the lawsuit is not yet available.
4. About the litigation between the Company and Guangzhou Tianli Construction Co., Ltd.
Guangzhou Tianli Construction Co., Ltd. (hereinafter referred to as "Guangzhou Tianli") purchased wires and
cables from FSL, for which the payment was RMB5,953,278.71 Despite several rounds of collection,
Guangzhou Tianli still refused to pay. Therefore, the Company filed a lawsuit [Case (2023) Y. 0104 M.CH. No.
9027] with the People's Court of Yuexiu District, Guangzhou, which tried the case on 14 June 2023. As of the
date of this report, the above case has not been concluded.
5. About the litigation between the Company and Wang Jundao, Peng Xiaoli, and Dali Haofeng Furniture Store
in Nanhai District, Foshan City
The defendant (hereinafter referred to as the "Defendant") Haofeng Furniture leased from the Company the first,
second, and third floors of the property located at 1 1st Lecheng Road, Luocun Subdistrict, Nanhai District, and
the plaintiffs (hereinafter collectively referred to as the "Plaintiff") Wang Jundao and Peng Xiaoli purchased
from the Company a ground floor and 24 residential units in the middle block of Buildings No. 1 located at 1
1st Lecheng Road, Luocun Subdistrict. According to the Plaintiff, after the foregoing properties were handed
over, the Defendant shall pay the Plaintiff the rental for the shops on the ground floor, but the Defendant
refused to do so and even still occupied part of the properties. Therefore, the Plaintiff filed a lawsuit [Case
(2023) Y. 0605 M.CH. No. 9004] with the People's Court of Nanhai District, Foshan City to claim
RMB2,664,820.00from the Defendant as compensation for all costs. In the case, the court added the Company
as a third party. The case was tried on 4 July 2023. As of the date of this report, the above case has not been
concluded.
6. Litigation between NationStar Optoelectronics and Guangzhou CM Punk Optoelectronics Co., Ltd.
Guangzhou CM Punk Optoelectronics Co., Ltd (hereinafter referred to as "CM Punk") and Foshan
NationStar Optoelectronics Co., Ltd. over the sales contract, both parties disputed the goods payment and
compensation for quality defects in products and thus filed a lawsuit with the court. CM Punk sued
NationStar and requested the latter to pay for the goods and pay the interest, totalling approximately
RMB4.36 million (including approximately RMB3.77 million for the goods). NationStar defended itself
by arguing that CM Punk's claim was not supported by factual and legal bases and lodged a counterclaim
for approximately RMB2.02 million from CM Punk as an indemnity for quality losses. As of the date of
this report, the case is in the process of first instance hearing and the court has not yet decided.
7. Litigation between Nanyang Baoli and the People's Government of Zhechuan
On 2 November 2009, the People's Government of Zhechuan released the Notice of Zhechuan County on
the Preferential Policies for Accelerating the Development of Industrial Clusters (Provisional), which
made it clear that the indemnities paid by eligible industrial enterprises for the land they acquired shall be
fully reimbursed by the financial authority of the county. On 12 October 2011, Nanyang Baoli Vanadium
Industry Co., Ltd. ("Nanyang Baoli") submitted the Application of Nanyang Baoli Vanadium Industry Co.,
Ltd. for Preferential Policies for the Efficient and Clean Vanadium Ore Extraction Project to the People's
Government of Zhechuan and applied to use land. Additionally, by the application, Nanyang Baoli shall
pay the taxes and dues arising from the land acquisition in the early stage. After the land is transferred to
Nanyang Baoli upon legal bid invitation, auction and listing, the government of the place of receipt shall
subsidize Nanyang Baoli in two installments for all the land acquisition payments, except for the
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
endowment insurance of farmers in the place where land is acquired and the land reporting fees. The
People's Government of Zhechuan approved the application by stamping it with the seal and specified that
"land costs shall be subject to Document X.F. [2012] No. 17. Specifically, to meet the investment
requirements, investors shall bear only RMB30,000 per mu (a mu is equivalent to approximately 666.667
square meters), and the People's Government of Zhechuan shall be responsible for the remaining costs and
completing the certificate application." Subsequently, Nanyang Baoli paid a total of RMB10,994,400 to
the People's Government of Zhechuan. For the land intended as the project site, formalities for land
acquisition and for bid invitation, auction, and listing have not yet been completed and initiated,
respectively. As a result, Nanyang Baoli has not obtained the land use right for the land in question, and
the land remains the collective land as it has not yet been acquired. At present, the P eople's Government of
Zhechuan is unable to obtain land use approval to complete the land acquisition and hand over the land to
Nanyang Baoli. Nor shall it have the right to transfer the foregoing land. Hence, Nanyang Baoli has filed a
lawsuit with the Nanyang Intermediate People's Court, requesting a refund of the advance payment and an
indemnity for its losses. Moreover, Nanyang Baoli has not yet carried out exploitation since its inception,
but the mining concession has expired. Therefore, Nanyang Baoli requested a refund of the deposit of
RMB100,000 for environmental governance and restoration transferred to the segregated account of the
Off-budget Fund Management Bureau of Zhechuan County for deposits for environmental governance and
restoration of mines. The case was accepted by the Nanyang Intermediate People's Court on 24 March
2023 and came to trial on 16 May 2023.As of the date of this report, the above case has not been
concluded.
(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 2023, mutual guarantees among Nanning Liaowang and its subsidiaries were as follows
(RMB’0,000):
Type of Guarantee Guarantee
No. Principal debtor Principal debtee Guarantor
guarantee amount balance
Nanning Nanning Liaowang Auto Lamp Co., Ltd.,
Nanning
Liaowang Auto Liuzhou Guige Fuxuan Technology Co.,
1 Branch of Mortgage 4,500.00 1,547.33
Lamp Co., Ltd. Ltd., Liuzhou Guige Lighting Technology
Industrial Bank
(note 1) Co., Ltd.
Chongqing
Nanning Nanning Liaowang Auto Lamp Co., Ltd.,
Guinuo Lighting
2 Branch of Chongqing Guinuo Lighting Technology Mortgage 9,900.00 5,826.87
Technology Co.,
Industrial Bank Co., Ltd.
Ltd. (note 2)
Liuzhou Guige Nanning Liaowang Auto Lamp Co., Ltd.,
Nanning
Lighting Liuzhou Guige Fuxuan Technology Co.,
3 Branch of Mortgage 9,600.00 9,600.00
Technology Co., Ltd., Liuzhou Guige Lighting Technology
Industrial Bank
Ltd. (note 3) Co., Ltd.
Total —— —— —— 24,000.00 16,974.20
Note 1: Nanning Liaowang and Nanning Branch of Industrial Bank entered into the Maximum Financing
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Agreement (X.Y.G.CH.B.R.Z.Z. [2022] No. (01)) to conduct a bill transaction of RMB15,473,300. 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) Y.G. (2017) N.N.S.B.D.CH.Q.ZH. No. 0065501; b) E.G. (2017) N.N.S.B.D.CH.Q.ZH. No.
0065499; c) S.G. (2017) N.N.S.B.D.CH.Q.ZH. No. 0065498; d) S.G. (2017) N.N.S.B.D.CH.Q.ZH. No.
0065497.
Note 2: 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. The foregoing transactions were closed out on 11 February 2023. Nanning
Liaowang and Nanning Branch of Industrial Bank Co., Ltd. entered into the Master Agreement on Local Letter
of Credit Financing, numbered LD2302073907, with the loan amount of RMB50 million (from 7 February
2023 to 8 February 2024). Chongqing Guinuo Lighting Technology Co., Ltd. (Chongqing Guinuo) provides
mortgage guarantee with the immovable property owned as collateral, and the balance of its creditor's rights
does not exceed the maximum mortgage principal of RM122,294,700. The guarantee amount is RMB99 million
and the mortgage amount is valid from 15 June 2020 to 15 June 2023. The mortgaged real estate is a) Y.Y.
(2020) L.J.X.Q.B.D.CH.Q. No. 000436821, b) E.Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437330, c) S.Y. (2020)
L.J.X.Q.B.D.CH.Q. No. 000437429 and d) S.Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437448.
Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Fixed Asset Loan Contract
numbered CQ2023-477, with the contract amount being RMB50 million (from 21 June 2023 to 20 June 2026).
As at 30 June 2023, RMB8,268,700 had been granted. The mortgage amount is valid from 25 May 2023 to 24
May 2024. Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Maximum Mortgage
Contract numbered X.Y.Y.L.J.G.N.D. No. 2023001. The mortgaged real estate is a) Y. (2020)
L.J.X.Q.B.D.CH.Q. No. 000436821, b) Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437330, c) Y. (2020)
L.J.X.Q.B.D.CH.Q. No. 00437448 and d) Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437429.
Note 3: Liuzhou Fuxuan 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 Photoelectric Technology Co., Ltd. (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) to conduct a bill transaction of RMB20 million (from 5 May 2022 to 7
May 2023). The foregoing transactions have been closed out. Liuzhou Fuxuan and Nanning Branch of
Industrial Bank Co., Ltd. entered into the Working Capital Loan Contract, numbered WYZH2022091600234,
with a loan of RMB35 million (from 16 September 2022 to 16 September 2023). In the 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 RMB139,943,700. The guarantee amount is RMB96 million and valid
from 24 April 2022 to 31 December 2025. The mortgaged real estate is: a) Y.G. (2019) L.ZH.SH.B.D.CH.Q.
No. 0191988, located at No. 1 Factory Building, No. 12 Hengsi Road, Cheyuan; b) E.G. (2019)
L.ZH.SH.B.D.CH.Q. No. 0191991, located in the mould Centre of No. 12 Hengsi Road, Cheyuan; c) S.G.
(2019) L.ZH.SH.B.D.CH.Q. No. 0191994, located in the logistics gate guard room at No. 12 Hengsi Road,
Cheyuan; d) S.G. (2019) L.ZH.SH.B.D.CH.Q. No. 0191995, located in the guard room of Gate 12, Hengsi Road,
Cheyuan.
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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
Naught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
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
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Company and the employees. The payment channels of the Company shall be implemented according to
relevant regulations of the state, and the part that shall be paid by employees themselves will be withheld and
paid by the Company from their salaries.
The Plan has been filed at Chancheng District Human Resources and Social Security Bureau of Foshan City and
implemented since 1 June 2022. The management of the enterprise annuity fund is subject to the supervision
and inspection of relevant state departments.
5. Discontinued Operations
Naught
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure, management requirements and internal report system, the
Company identifies the reporting segment based on the operating segment and discloses the segment
information. The Company divides its business into two operating segments, on the basis of which, it identifies
two reporting segments, namely the general and automotive lighting product segment and the LED packaging,
modules, and other products segment. Segment reporting information is disclosed in line with the accounting
policies and measurement criteria adopted by each segment when reporting to the management. Such
measurement standards are consistent with the accounting policies and measurement criteria used for financial
statements.
(2) The Financial Information of Reportable Segment
LED packaging and
General lighting and
Item component products Offset among segments Total
vehicle lamp products
and other products
I. Operating revenue 2,829,149,431.23 1,758,744,095.83 -21,830,798.04 4,566,062,729.02
II. Cost of sales 2,216,663,649.68 1,537,803,485.99 -20,992,306.79 3,733,474,828.88
III. Income from
investments to joint 1,186,031.53 1,470,664.40 -1,470,664.40 1,186,031.53
ventures and associates
IV. Credit impairment
loss -16,431,945.66 -2,467,862.94 -47,612.43 -18,947,421.03
V. Asset impairment
loss -4,211,706.74 -12,179,181.99 -16,390,888.73
VI. Depreciation and
amortization cost 115,507,761.79 190,292,917.45 -381,130.02 305,419,549.22
VII. Total profits 204,718,353.73 56,700,512.58 -5,009,213.53 256,409,652.78
VIII. Income tax
expense 28,534,078.56 2,896,059.62 -125,773.69 31,304,364.49
IX. Net profits 176,184,275.17 53,804,452.96 -4,883,439.84 225,105,288.29
X. Total assets 9,680,174,630.01 6,310,970,021.75 -871,200,829.00 15,119,943,822.76
XI. Total liabilities 4,014,157,764.30 2,540,730,138.30 -45,299,349.79 6,509,588,552.81
(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
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(4) Other notes
Naught
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught
8. Other
(1) Pre-plan for the Issuance of A-shares to Specific Objects in 2023
The Company intends to raise gross proceeds of no more than RMB1,094.5518 million through an offering of
A-stock shares to specific parties. The amount exclusive of the issuance costs will be used to invest in the FSL
automation and digital transformation construction project, the FSL Hainan Industrial Park Phase I, the
intelligent street light construction project, the automotive lamp module production and construction project,
and the R&D centre construction project. The said share offering plan has been approved at the 39th Meeting of
the Ninth Board of Directors and a general meeting of shareholders on 14 March 2023 and 31 March 2023,
respectively, as well as by the Public Offering Review Centre of the Shenzhen Stock Exchange on 12 July 2023.
The plan is still subject to final approval of the CSRC before implementation. And there is uncertainty with
respect to the said approval and the timing.
(2) Equity Incentive Plan
On 12 June 2023, the 2023 Restricted Share Incentive Plan (Draft) and Its Summary, together with other
relevant proposals, were approved at the 44th Meeting of the Ninth Board of Directors and the 22nd Meeting of
the Ninth Supervisory Committee. As such, it was approved to grant no more than 13,000,000 restricted shares
(accounting for 0.95% of the Company’s total share capital of 1,361.9946 million shares at the date of the
announcement on the draft plan of the incentive plan) to 262 awardees. To be specific, there were 11.7 million
shares for the first grant, accounting for 90.00% of the total grant under the incentive plan; and there were 1.3
million reserved shares, accounting for 10.00% of the total grant under the incentive plan. The restricted shares
were RMB A-stock ordinary shares repurchased by the Company in its repurchased special securities account.
And the grant price for the first grant was RMB3.81/share. This equity incentive plan is subject to approval by
the State-owned Assets Supervision and Administration Commission of Guangdong Province and a general
meeting of shareholders of the Company. For further information, see the 2023 Restricted Share Incentive Plan
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(Draft) and Its Summary and other relevant proposals that have been disclosed on http://www.cninfo.com.cn/
dated 13 June 2023.
（3）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.
(4) Plan of the Major Assets Reorganization by NationStar Optoelectronics
NationStar Optoelectronics intends to acquire 60% of equity (the final shareholding ratio is subject to the
specific share transfer agreement signed by the parties) in Yancheng Dongshan Precision Manufacturing Co.,
Ltd. (hereinafter referred to as “Target Company” or “Yancheng Dongshan”), the wholly-owned subsidiary of
Suzhou Dongshan Precision Manufacturing Co., Ltd. (hereinafter referred to as “shareholder of the Target
Company” or “Dongshan Precision”). Upon completion of the transaction, NationStar Optoelectronics will hold
60% of equity interest in the Target Company, and the Target Company will become a majority-owned
subsidiary of the Company and be included in the scope of the Company's consolidated financial statements. As
of the disclosure date of this Report, NationStar has actively organized various intermediaries to actively carry
out due diligence investigation as well as audit and appraisal of the underlying assets in accordance with
relevant regulations.
(5) Application for Registration and Issuance of SCP by NationStar Optoelectronics
NationStar Optoelectronics reviewed and approved the Proposal on Application for Registration and Issuance of
SCP at the 22nd Meeting of the 5th Board of Directors and the 19th Meeting of the 5th Supervisory Committee
held on 29 August 2022 and submitted it to the 3rd Extraordinary General Meeting of 2022 of NationStar
211
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Optoelectronics for consideration. On 11 November 2022, NationStar Optoelectronics convened the 3rd
Extraordinary General Meeting of 2022 to vote on above-mentioned proposal and agreed the application for
registration and issuance of SCP by NationStar Optoelectronics with the scale not exceeding RMB1 billion
(inclusive). The final registration amount will be subject to the amount stated in the registration notice of China
Interbank Market Dealers Association. The registration is valid for two years and may be issued multiple times
within the registration period with each issuance period not exceeding 270 days (inclusive). On 29 August 2023,
NationStar Optoelectronics announced that it had received the Notice of Acceptance of Registration (ZSXZ
[2023] SCP No. 363) from National Association of Financial Market Institutional Investors (NAFMII), in which
NAFMII decided to accept the registration of NationStar Optoelectronics’s SCP with the registered amount of
RMB1 billion and the registration quota being valid for 2 years from the date of the notice. The Company may
issue the SCP by installment within the validity of the registration. The project is currently progressing in an
orderly manner.
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
Withdra Withdra
Item Carrying Carrying
Proporti wal value Proporti wal value
Amount Amount Amount Amount
on proporti on proporti
on on
Account
s
receivab
le for
which
11,220, 11,220, 11,220, 11,220,
bad debt 0.96% 100.00% 1.13% 100.00%
provisio 827.14 827.14 827.14 827.14
n
separatel
y
accrued
Of
which:
Account
s
receivab 1,162,1 1,086,9
75,194, 979,581 64,706, 914,875
le for 70,464. 99.04% 6.47% 75,621. 98.87% 6.61%
which 842.95 ,821.17 145.17 ,676.00
79 84
bad debt
provisio
212
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
n
accrued
by group
Of
which:
（1）
Business
portfolio 1,093,6 1,018,4
of 75,194, 921,740 64,706, 857,034
94,613. 93.21% 6.88% 99,770. 93.03% 7.02%
general 842.95 ,497.75 145.17 ,352.58
lighting 15 20
and auto
lamps
(2)
Internal 68,475, 68,475, 57,841, 57,841,
business 5.84% 5.84%
851.64 851.64 323.42 323.42
portfolio
1,173,3 1,086,9
86,415, 990,802 75,926, 914,875
Total 91,291. 100.00% 7.36% 75,621. 100.00% 7.66%
670.09 ,648.31 972.31 ,676.00
93 84
Individual withdrawal of bad debt provision by single item: RMB11,220,827.14
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Expectedly
Customer A 11,220,827.14 11,220,827.14 100.00% irrecoverable for
involvement in lawsuit
Total 11,220,827.14 11,220,827.14
Withdrawal of bad debt provision by group: RMB75,194,842.95
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk portfolio 1,162,170,464.79 75,194,842.95 6.47%
Total 1,162,170,464.79 75,194,842.95
Notes:
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) 956,928,518.34
1 to 2 years 143,074,413.22
2 to 3 years 29,742,543.36
Over 3 years 43,645,817.01
3 to 4 years 4,547,062.16
4 to 5 years 19,562,268.29
Over 5 years 19,536,486.56
Total 1,173,391,291.93
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(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 Other
recovery
Bad debt
provision 11,220,827.1
withdrawn 8,976,661.72 2,244,165.42
4
separately
Bad debt
provision 51,950,320.9 23,244,540.8 75,194,842.9
withdrawn by 18.81
5 1 5
group
60,926,982.6 25,488,706.2 86,415,670.0
Total 18.81
7 3 9
Of which significant amount of reversed or recovered bad debt provision:
In the current period, the provision for expected credit losses was RMB25,488,706.23, and RMB0.00 of
expected credit losses was recovered or reversed.
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount
Other driblet small amount 18.81
Of which, verification of significant accounts receivable:
Naught
(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. 1 261,026,852.86 22.25% 7,830,805.59
No. 2 93,476,069.87 7.97% 2,804,282.10
No. 3 24,804,411.54 2.11% 2,345,630.85
No. 4 23,857,388.73 2.03% 2,376,830.59
No. 5 22,932,132.84 1.95% 687,963.99
Total 426,096,855.84 36.31%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
(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 978,598,589.43 511,036,345.72
Total 978,598,589.43 511,036,345.72
(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
(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
Other intercourse 850,921,784.64 499,569,435.12
Dividend payment (note) 111,892,889.20
VAT export tax refunds 11,326,131.26 9,247,208.98
215
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Performance bond 5,413,590.63 2,535,349.17
Staff borrow and petty cash 1,564,968.85 1,467,513.80
Rent, water & electricity fees 615,410.01 2,211,666.93
Total 981,734,774.59 515,031,174.00
Note: refer to the dividend payment transferred to China Securities Depository and Clearing Corporation
Limited.
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Bad debt provision Expected loss in the Total
Expected credit loss of duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
2023 570,436.68 3,424,391.60 3,994,828.28
Balance of 1 January
2023 in the Current
Period
Withdrawal of the
Current Period 83,004.29 -1,639,484.05 697,836.64 -858,643.12
Balance of 30 June
2023 653,440.97 1,784,907.55 697,836.64 3,136,185.16
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 560,139,191.08
1 to 2 years 416,812,193.31
2 to 3 years 2,705,441.78
Over 3 years 2,077,948.42
3 to 4 years 369,789.28
4 to 5 years 1,010,322.50
Over 5 years 697,836.64
Total 981,734,774.59
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
3,994,828.28 -858,643.12 3,136,185.16
receivables
Total 3,994,828.28 -858,643.12 3,136,185.16
In the current period, the provision for expected credit losses was RMB-858,643.12, and RMB0.00 of expected
credit losses was recovered or reversed.
216
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 group 471,166,334.23 Within 2 years 47.99%
No. 2 Internal group 250,685,820.33 Within 3 years 25.53%
No. 3 Dividend payment 111,892,889.20 Within 1 years 11.40%
No. 4 Internal group 56,398,668.11 Within 2 years 5.74%
No. 5 Internal group 31,047,876.71 Within 2 year 3.16%
Total 921,191,588.58 93.82%
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 2,323,631,23 2,323,631,23 2,323,631,23 2,323,631,23
subsidiaries 8.41 8.41 8.41 8.41
Investment to
joint ventures 183,117,824. 183,117,824. 181,931,792. 181,931,792.
and associated 19 19 66 66
enterprises
2,506,749,06 2,506,749,06 2,505,563,03 2,505,563,03
Total
2.60 2.60 1.07 1.07
(1) Investment to Subsidiaries
Unit: RMB
217
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Beginning Increase/decrease Ending Ending
balance Depreciation balance balance of
Investee Additional Reduced
(carrying reserves Other (carrying depreciation
value) investment investment value) reserve
withdrawn
Foshan
NationStar 1,212,090,24 1,212,090,24
Optoelectron 5.94 5.94
ics Co., Ltd.
Nanning
Liaowang 493,880,163. 493,880,163.
Auto Lamp 76 76
Co., Ltd.
Fozhao
(Hainan) 200,000,000. 200,000,000.
Technology 00 00
Co., Ltd.
Foshan
Kelian New
170,000,000. 170,000,000.
Energy
00 00
Technology
Co., Ltd.
FSL
Chanchang 82,507,350.0 82,507,350.0
Optoelectron 0 0
ics Co., Ltd.
Nanjing
Fozhao
Lighting 72,000,000.0 72,000,000.0
Components 0 0
Manufacturin
g Co., Ltd.
Foshan
Electrical &
35,418,439.7 35,418,439.7
Lighting
6 6
(Xinxiang)
Co., Ltd.
FSL Zhida
Electric 25,500,000.0 25,500,000.0
Technology 0 0
Co., Ltd.
Foshan
Haolaite 16,685,000.0 16,685,000.0
Lighting Co., 0 0
Ltd.
Foshan
Fozhao
15,000,000.0 15,000,000.0
Zhicheng
0 0
Technology
Co., Ltd.
Foshan
Taimei Times
Lamps and 350,000.00 350,000.00
Lanterns Co.,
Ltd.
FSL
LIGHTING 195,812.50 195,812.50
GMBH
Foshan 4,226.45 4,226.45
218
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Sigma
Venture
Capital Co.,
Ltd.
2,323,631,23 2,323,631,23
Total
8.41 8.41
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Gains
and Cash Ending
Beginni Adjust Withdra
losses bonus Ending balance
ng Additio Reduce ment of Change wal of
Investe recogni or balance of
balance nal d other s of impair
e zed profits Other (carryin depreci
(carryin investm investm compre other ment
under announ g value) ation
g value) ent ent hensive equity provisi
the ced to reserve
income on
equity issue
method
I. Joint ventures
II. Associated enterprises
Shenzh
enPrim
atronix
(Nanho 181,931 1,186,0 183,117
) ,792.66 31.53 ,824.19
Electro
nics
Ltd.
Subtota 181,931 1,186,0 183,117
l ,792.66 31.53 ,824.19
181,931 1,186,0 183,117
Total
,792.66 31.53 ,824.19
(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 1,711,281,228.74 1,436,735,973.21 1,743,824,866.67 1,430,083,022.73
Other business 55,838,581.48 39,194,174.59 65,355,126.19 46,281,084.46
Total 1,767,119,810.22 1,475,930,147.80 1,809,179,992.86 1,476,364,107.19
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0.00 at the period-end.
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
accounted by cost method 6,007,918.32 2,653,342.25
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Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
Long-term equity investment income
accounted by equity method 1,186,031.53 650,457.40
Investment income from disposal of
trading financial assets 2,154,000.00 1,734,535.05
Dividend income from holding of other
investments in equity instruments 16,633,969.35 16,055,272.93
Investment income from financial
products and structural deposits 1,767,053.51 449,147.49
Total 27,748,972.71 21,542,755.12
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 non-
current assets (inclusive of impairment -1,399,118.95
allowance write-offs)
Government grants recognized in the
current period, except for those acquired
in the ordinary course of business or
granted at certain quotas or amounts 27,400,992.05
according to the government’s unified
standards
Capital occupation charges on non-
financial enterprises that are recorded 145,423.54
into current profit or loss
Gain/loss from change of fair value of
trading financial assets and liabilities,
and investment gains from disposal of
trading financial assets and liabilities, -20,978,503.38
and available-for-sale financial assets,
other than valid hedging related to the
Company’s common businesses
Other non-operating income and
expenses other than the above -841,057.39
Less: Income tax effects -966,253.59
Non-controlling interests effects 16,747,968.45
Total -11,453,978.99 --
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
220
Foshan Electrical and Lighting Co., Ltd. Interim Report 2023
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 3.23% 0.1252 0.1240
Company
Net profit attributable to
ordinary shareholders of the
Company after deduction of 3.45% 0.1337 0.1324
non-recurring profit or loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□Applicable Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□Applicable Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Naught
4. Other
Naught
Foshan Electrical and Lighting Co., Ltd.
Legal representative: Wu Shenghui
29 August 2023
221
