Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
SEMI-ANNUAL REPORT 2017
August 2017
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section I Important Statements, Contents and Definitions
The board of directors (the “Board”), the supervisory board (the “Supervisory Board”) as
well as the directors, supervisors and senior management of Foshan Electrical and Lighting
Co., Ltd. (the “Company”) hereby guarantee the factuality, accuracy and completeness of the
contents of this Report, and shall be jointly and severally liable for any false representation,
misleading statements or material omissions in this Report.
He Yong, head of the Company, Liu Xingming, accounting head for this Report, and Tang
Qionglan, head of the accounting department (head of accounting), hereby guarantee that the
Financial Report carried in this Report is factual, accurate and complete.
All the directors attended the board meeting for the review of this Report.
This Report involves futures plans and other forward-looking statements, which shall not be
considered as virtual promises to investors. Investors are kindly reminded to pay attention to
possible risks.
The Company has described in this Report the risks of fiercer market competition,
fluctuations in raw material prices, falling prices of inventories, exchange rate fluctuations
and bad debts on accounts receivable. Please refer to “X Risks Facing the Company and
Countermeasures” under “Section IV Performance Discussion and Analysis” of this Report.
The Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Table of Contents
Semi-Annual Report 2017 ................................................................................................................. 1
Section I Important Statements, Contents and Definitions ........................................................... 2
Section II Corporate Profile and Key Operating Results............................................................... 5
Section III Business Profile ............................................................................................................... 8
Section IV Performance Discussion and Analysis ......................................................................... 11
Section V Significant Events ........................................................................................................... 24
Section VI Share Changes and Shareholders’ Profile ................................................................... 32
Section VII Preference Shares ........................................................................................................ 38
Section VIII Directors, Supervisors and Senior Management ..................................................... 39
Section IX Corporate Bonds ........................................................................................................... 41
Section X Financial Report ............................................................................................................. 42
Section XI Documents Available for Reference ........................................................................... 155
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Definitions
Term Definition
The Company, Company, FSL Foshan Electrical and Lighting Co., Ltd.
CSRC The China Securities Regulatory Commission
SZSE The Shenzhen Stock Exchange
Meeting of Shareholders of Foshan Electrical and Lighting Co.,
Meeting of Shareholders
Ltd.
Board The Board of Directors of Foshan Electrical and Lighting Co., Ltd.
Supervisory Board The Supervisory Board of Foshan Electrical and Lighting Co., Ltd.
RMB, RMB’0,000 RMB yuan, RMB ten thousand yuan
Reporting Period January 1, 2017-June 30, 2017
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section II Corporate Profile and Key Operating Results
I Corporate Information
Stock name FSL / FSL B Stock code 000541/200541
Stock exchange Shenzhen Stock Exchange
Company name in
佛山电器照明股份有限公司
Chinese
Abbr. (if any) 佛山照明
Company name in
FOSHAN ELECTRICAL AND LIGHTING CO.,LTD
English (if any)
Abbr. (if any) FSL
Legal representative He Yong
II Contact Information
Board Secretary Securities Representative
Name Lin Yihui 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
E-mail fsl-yh@126.com fslhyf@163.com
III Other Information
1. Ways to Contact the Company
Indicate by tick mark whether any changes occur to the registered address, office address and their postal codes,
website address and email address of the Company during the Reporting Period.
□ Applicable √ Not applicable
No changes occurred to the said information during the Reporting Period, which can be found in the 2016 Annual
Report.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
2. Information Disclosure Media and Place where this Report is Kept
Indicate by tick mark whether any changes occurred to the information disclosure media and the place where this
Report was kept during the Reporting Period.
□ Applicable √ Not applicable
The newspapers designated by the Company for information disclosure, the website designated by the CSRC for
disclosing this Report and the location where this Report was placed did not change during the Reporting Period.
The said information can be found in the 2016 Annual Report.
IV Key Operating Results
Indicate by tick mark whether the Company needs to retroactively restate any of its accounting data.
□ Yes √ No
Reporting Period Same period of last year +/- (%)
Operating revenues (RMB) 2,023,925,582.84 1,755,670,927.44 15.28%
Net profit attributable to
228,494,660.57 206,925,812.72 10.42%
shareholders of the Company (RMB)
Net profit attributable to
shareholders of the Company before 227,184,233.70 206,637,093.68 9.94%
exceptional profit and loss (RMB)
Net cash from operating activities
-31,063,187.22 291,628,307.06 -110.65%
(RMB)
Basic earnings per share
0.1796 0.1627 10.39%
(RMB/share)
Diluted earnings per share
0.1796 0.1627 10.39%
(RMB/share)
Weighted average return on equity
4.99% 3.94% 1.05%
(%)
End of Reporting Period End of last year +/- (%)
Total assets (RMB) 5,773,132,610.86 6,100,169,400.30 -5.36%
Net assets attributable to
4,707,690,904.27 4,990,466,577.12 -5.67%
shareholders of the Company (RMB)
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
V Differences in Accounting Data under Domestic and Foreign Accounting Standards
1. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under Chinese and
International Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
2. Differences in Net Profit and Net Assets Disclosed in Financial Reports Prepared under Chinese and
Foreign Accounting Standards
□ Applicable √ Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains/Losses
√ Applicable □ Not applicable
Unit: RMB
Item Reporting Period Note
Gains/Losses on disposal of non-current assets
-4,255,164.43
(including offset asset impairment provisions)
Government subsidies charged to gains/losses for
Reporting Period (except for government grants closely
related to business of the Company and given at a fixed 3,869,949.96
quota or amount in accordance with government’s
uniform standards)
Non-operating income and expense other than above 1,637,836.66
Less: Income tax effects -57,390.05
Minority interests effects (after tax) -414.63
Total 1,310,426.87 --
Explanation of why the Company classified an item as exceptional gain/loss according to the definition in the
Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Exceptional Gains and Losses, or reclassified any exceptional gain/loss item given as an example in the
said explanatory announcement to recurrent gain/loss
□ Applicable √ Not applicable
No such cases in the Reporting Period.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section III Business Profile
I Main Business Scope for the Reporting Period
Is the Company subject to any disclosure requirements for special industries?
No.
1. Main business and products
We have been engaged in production, R&D and sale of lighting products since our listing. Our products mainly
include LED lighting products and conventional lighting products . We have a wide variety of products with a
complete range of specifications, including LED light source, LED lamps, fluorescent lamps, halogen lamps,
energy saving lamps, motor vehicle lamps, conventional lamps, etc. With the most specifications in the lighting
industry, our products are widely used for indoor and outdoor lighting, landscape lighting, motor vehicle lighting
and so on. Upon years of development, we have won quite many honors such as the title of “The King of Lamps
in China”, and our “FSL” and “Fenjiang” brands have been certified as “Famous China Brands”.
While pushing diversified strategies, the Company set the electrical engineering business as the new engine for its
rapid development in 2016. Based on the existing electrical engineering equipment, the Company strived to
develop electrical engineering equipment covering lots of series of electrical engineering equipment and sockets.
In future, the Company would make efforts to create a strategic layout where the development of lighting products
keeping pace with electrical engineering equipment.
2. Main business model
(1) Procurement model
We mainly procure raw materials such as lamp beads, lamp holders, electronic components, aluminum substrate,
plastic parts, metal materials, quartz tubes and fuel by way of bids invitation. A bids invitation supervisory
committee consisting of personnel from several departments will be set up in the future. For every kind of our
main raw materials, we usually have a few suppliers to choose from in procurement so that the procurement prices
would be fair, the supply of raw materials in time and the good quality of the raw materials ensured.
(2) Production models
① Production of the conventional products
Concerning the conventional products, we analyze sales of every month and predict future market demand so as to
formulate a production plan for the coming month. And our workshops produce according to the plan to avoid
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
extra stock and at the same time ensure that there is enough for sale.
② Production according to orders
Different from the conventional lighting products which are of little variation in specifications, LED lighting
products are at a fast pace of renewal and different customers often have different requirements regarding the
products’ appearances and performance indexes. Therefore, we have to organize individualized production for
some orders for LED lighting products, export orders in particular. For this kind of orders, we formulate our
production plans based on them and then make procurement plans according to the production plans, which will
help effectively control the stock and the procurement prices of raw materials, reduce capital occupation and
improve our operating efficiency to the maximum.
③ Combination of independent production and outsourcing
With a high production capacity, we produce most of our products and parts on our own. Only a small portion of
parts and low-tech products is outsourced to sub-manufacturers, who will produce in strict accordance with our
requirements. We will also tag along their production processes and examine carefully the quality of the products
finished. In this way, our supply of products is guaranteed.
(3) Sales model
We mainly adopt a commercial agent model, selling our products to commercial agents through various channels
and setting up business divisions under the sales department to follow up the use of our products by customers and
provide relevant support. In terms of channels, besides consolidating wholesale, we will also focus on the
development of franchised stores, illumination engineering & commercial lighting, e-commerce & retail sales and
automotive lighting to minimize our weaknesses in this respect and increase our market share.
3. Main driving force for business performance
(1) Rapid development of the industry
As the emerging industry involved in the country’s strategies, LED industry rapidly developed in the world in
recent years due to its features of high efficiency and energy-saving, green environmental protection, as well as
long service life. Thanks to the rapid development of the LED industry, the Company achieved good business
performance.
(2) The Company’s own advantages
By right of the Company’s advantages in technology, brand, channel, and scale, the Company firmly grasped the
opportunities brought by the industry’s rapid development, consistently pushed forward the technology upgrade of
main products, reinforced market development, and optimized the sales structure of products through sustainable
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
R&D input and technology innovation. And at the same time, by means of effective control on procurement and
manufacturing cost, the Company raised the efficiency of management and products, improved its comprehensive
competitiveness, overcame the difficulties and challenges resulted from the serious market situation, and kept the
sustainable growth of its operating revenue and profit.
II Significant Changes in Main Assets
1. Significant Changes in Main Assets
Main assets Reason for significant change
Equity assets No significant changes in Reporting Period
Fixed assets No significant changes in Reporting Period
Intangible assets No significant changes in Reporting Period
Up 106.16% from the opening amount mainly due to increase in ongoing
Construction in progress
construction projects
2. Main Assets Overseas
□ Applicable √ Not applicable
III Core Competitiveness Analysis
Is the Company subject to any disclosure requirements for special industries?
No.
No significant changes occurred to the Company’s core competitiveness in the Reporting Period. Please refer to
the 2016 Annual Report for details about the Company’s core competitiveness.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section IV Performance Discussion and Analysis
I Summary
The first half of 2017 saw China’s economy running smoothly and the U.S. and European economies in gradual
recovery. Such a stable and positive macro-economic environment provided a sound basis for growth in the
lighting industry. However, the unveiling of the most stringent ever real estate control policies in China, the rise
of trade protectionism across the world, heavier costs caused by rising raw material prices, wilder exchange rate
fluctuations and fiercer market competition posed quite many challenges to lighting companies. In face of the
complicated and changeable environment at home and abroad, the Company closely adhered to the strategic
objectives of “Cutting-Edge Technologies, Internationally-Famous Brands and Large-Scale Production” the Board
had put forward at the beginning of the year, focused on its main business, kept improving its ability to innovate,
strengthened the execution of its overseas expansion strategy and continued to increase its lean management level.
As a result, these efforts have been rewarded by strong operating results. For the Reporting Period, the Company
achieved, on a consolidated basis, operating revenues of RMB 2,023.9256million, up 15.28% compared to the
same period of last year; and net profit attributable to shareholders of the Company of RMB228million,
representing a year-on-year growth of 10.42%.
In the first half of 2017, main work arrangement of the Company was as below:
1. Strengthened the capability of innovation, and improved products and technology of the Company
The Company input more on R&D, continuously strengthened the capability of innovation, which included the
acceleration of innovation on new products, the principal of product design, materials, appearance, and smart
lighting. At the same time, the Company reserved for basic and perspective technological work, researched and
developed new products which were user-friendly and adapted to the market while introducing new technology
and ideas, and sustainably improved the Company’s competitive power in the market.
2. Optimized product structure, and improved marketing capability
The Company continuously optimized product structure. In the reporting period, sales revenue of the Company’s
LED products and lamps achieved rapid growth，LED products accounted for 69.55% of the Company’s main
products in sales revenue while LED lamps took up 45.75% of LED products in sales revenue. and new products
launched rapidly won recognition by the market, rapidly and well ensuring the growth of the Company’s business
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
revenue.
Marketing was the fountain for the Company’s business growth. The Company always valued channel
construction. In domestic marketing, the Company gave play to the synergy between the traditional and emerging
channels, as well as explored a new model of offline sharing and online development to realize sharing in
throughput, experience, consumption, service and benefits. The Company took advantage of the platform of
E-commerce resources, implemented differentiated promotion, adopted the marketing pattern focusing on stylish
shops and oriented by products, so as to avoid homogeneous competitions among shops. Advantaged markets
were consolidated and weak markets were broken through via integration of different resources. In respect of
overseas seas sales, the Company reinforced the execution of overseas development strategy, continuously
explored overseas market by relying on its own leading brands in the industry, excellent product quality, as well
as professional service, and as a result, realized fast growth of sales revenue in overseas market. In the Reporting
Period, business revenues of the Company in overseas market reached RMB762.3427million, representing a
year-on-year increase of 30.89%.
3. Positively explored new businesses, and rapidly developed electrical technology
The Company has positively enlarged new business of electrical technology ever since the subsidiary for electrical
technology was founded in October of last year. By means of sustainably enriching product series, stably
enlarging production scale, enlarging sales channels, and strengthening brand promotion, the brand of FSL
Electrical Technology won more and more recognition from consumers. In the Reporting Period, products of
electrical technology achieved business revenue of RMB 66.7346million, showing the remarkable development of
electrical technology business.
4. Strengthened cost control, and improved profitability
With the rise of material cost, the Company faced with serious cost pressure. Only by keeping and enlarging cost
advantages can the Company keep improving competitive power. Via taking a hard look and analysis on the raw
material market, the Company increased qualified suppliers, established perfect procurement database, expanded
the bidding range, improved the timeliness ratio of material delivery, and cut down procurement cost; The
Company cut down product cost and improved production ratio by means of improving the level of automation,
intellectualization, and informatization, as well as technology transformation and technique upgrade. The
Company as well found out advantages and disadvantages of every workshop and department and strengthened
the crisis awareness towards cost in every workshop and department by comparing and analyzing internal and
external cost competitions.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
II Analysis of Main Business
Year-on-year changes of key financial data:
Unit: RMB
Reporting Same period of last
+/-% Main reason for change
Period/Period-End year/Period-Beginning
Operating revenues 2,023,925,582.84 1,755,670,927.44 15.28%
Operating costs 1,546,931,779.85 1,322,982,560.70 16.93%
Selling expense 81,651,993.69 73,251,807.41 11.47%
Administrative expense 98,790,821.60 82,117,827.94 20.30%
Finance costs -7,115,907.36 -6,445,753.04 -10.40%
Income taxes 42,597,501.35 39,425,977.29 8.04%
R&D expense 57,719,395.64 60,464,243.71 -4.54%
Payment of taxes and
expenses on gains from
Guoxuan High-tech
Net cash from operating
-31,063,187.22 291,628,307.06 -110.65% shareholdings sold in fourth
activities
quarter of 2016, as well as
payment of year-end bonuses
and expenses for 2016
Smaller increment in banks’
Net cash from investing
-112,026,375.71 -429,601,884.64 73.92% wealth management products
activities
purchased
Significant increase in cash
Net cash from financing
-522,068,416.83 -15,935,708.57 -3,176.09% dividends distributed in this
activities
year than last year
Decrease in net cash
Net increase in cash and
-664,245,623.25 -152,952,917.79 -334.28% generated by both operating
cash equivalents
and financing activities
Distribution of cash
Monetary funds 815,038,019.29 1,479,283,642.54 -44.90%
dividends in this year
More banker’s acceptance
bills received were endorsed
Notes receivable 26,434,680.74 67,925,843.74 -61.08%
and used to pay to suppliers
in the Reporting Period
Increased operating revenues
Accounts receivable 862,433,866.95 595,257,954.00 44.88% and adjustments to credit
terms of domestic customers
Interest receivable 3,217,917.15 4,612,406.80 -30.23% Decrease in undue interest
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
receivable from bank
VAT and export tax rebates
Other accounts
36,016,476.65 11,977,660.58 200.70% receivable in the Reporting
receivable
Period
Increased investment in
Construction in progress 147,360,531.44 71,479,325.91 106.16% expansion of plants in
Gaoming
The income tax payable on
the gains on the sale of the
Company’s shareholdings in
Taxes and fares payable 24,371,207.42 138,282,644.72 -82.38%
Guoxuan High-tech in
4Q2016 was paid in the
Reporting Period
Distribution of dividends by
Dividends payable 6,287,923.09 -100.00% subsidiaries in the Reporting
Period
Decrease in other current
Other accounts payable 32,185,577.54 50,104,338.81 -35.76%
accounts payable
The vehicle and vessel use
tax, etc. have been included
in the item of taxes and
Taxes and surtaxes 20,386,602.33 12,251,578.46 66.40%
surtaxes since May 1, 2016
as per the CS [2016] No. 22
Document
Decrease in inventory falling
Asset impairment losses 24,059,719.35 35,853,373.83 -32.89%
price provisions
Increase in governmental
Non-operating revenue 6,022,395.88 1,575,016.58 282.37%
subsidies received
Minority interest income 3,390,315.67 -313,550.46 1,181.27% Earnings of new subsidiary
Decreased shareholdings in
Guoxuan High-tech due to
Other comprehensive
23,025,471.14 140,317,778.68 -83.59% the sale of some such
income, net of tax
shareholdings at the end of
last year
Major changes to the profit structure or sources of the Company in the Reporting Period:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Breakdown of main business:
Unit: RMB
Operating Operating cost Gross profit Operating Operating cost: Gross profit
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
revenue margin revenue: YoY YoY +/-% margin: YoY
+/-% +/-%
By business segment
Lighting fixtures
2,010,535,149.65 1,537,416,165.51 23.53% 15.34% 16.89% -1.01%
and lamps
By product
Traditional
545,447,386.30 407,164,404.38 25.35% -20.29% -17.88% -2.19%
lighting products
LED 1,398,353,192.60 1,083,319,624.12 22.53% 32.07% 32.20% -0.07%
Electrical
66,734,570.75 46,932,137.01 29.67% 29.67%
equipment
By geographic segment
Domestic 1,248,192,434.54 919,009,019.04 26.37% 7.54% 6.17% 0.95%
Overseas 762,342,715.11 618,407,146.47 18.88% 30.89% 37.54% -3.92%
III Non-Core Business Analysis
√ Applicable □ Not applicable
Unit: RMB
As a percentage of
Amount Source/reason Recurring (yes/no)
total profit (%)
Gains on purchased bank’s wealth
Investment income 14,009,282.02 5.10% management products & receipt of No
bonuses from investees
Bad-debt and inventory falling price
Asset impairment 24,059,719.35 8.77% No
provisions
Non-operating Government subsidies received and
6,022,395.88 2.19% No
revenue others
Disposal of certain old equipment
Non-operating
4,769,773.69 1.74% for producing traditional lighting No
expense
products
IV Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
End of Reporting Period End of same period of last year Change in
percentage Main reason for significant change
Amount As a Amount As a
(%)
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
percentage percentage of
of total total assets
assets (%) (%)
Monetary funds 815,038,019.29 14.12% 788,093,190.58 12.92% 1.20%
Increased operating revenues and
Accounts
862,433,866.95 14.94% 636,149,148.03 10.43% 4.51% adjustments to credit terms of
receivable
domestic customers
Inventories 733,151,791.00 12.70% 467,975,082.84 7.67% 5.03% Stocks for expected growth in sales
The Company acquired a 32.85%
Long-term equity stake in Primatronix (Nanho)
209,858,507.98 3.64% 362,997.40 0.01% 3.63%
investments Electronics Ltd. at RMB0.18
billion in September 2016
Fixed assets 436,897,311.33 7.57% 454,154,610.43 7.44% 0.13%
Construction in Increased investment in expansion
147,360,531.44 2.55% 59,026,683.56 0.97% 1.58%
progress of plants in Gaoming
2. Assets and Liabilities Measured at Fair Value
√ Applicable □ Not applicable
Unit: RMB
Gains/Losses
Impairment
on fair value Cumulative fair Purchased in Sold in
provided in
Item Opening balance changes in value changes Reporting Reporting Closing balance
Reporting
Reporting charged to equity Period Period
Period
Period
Financial assets
3.
Available-for-s
1,427,901,096.63 1,335,488,158.79 1,454,989,886.20
ale financial
assets
Subtotal of
1,427,901,096.63 1,335,488,158.79 1,454,989,886.20
financial assets
Total of above 1,427,901,096.63 1,335,488,158.79 1,454,989,886.20
Financial
0.00 0.00
liabilities
Significant changes in the measurement attributes of the main assets in the Reporting Period:
□ Yes √ No
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
3. Restricted Asset Rights as of End of the Reporting Period
None.
V Investments Made
1. Total Investments Made
√ Applicable □ Not applicable
Investments made in Reporting Period Investments made in same period of last
+/-%
(RMB) year (RMB)
0.00 0.00 0.00%
2. Significant Equity Investments Made in Reporting Period
□ Applicable √ Not applicable
3. Significant Non-Equity Investments Ongoing in Reporting Period
□ Applicable √ Not applicable
4. Financial Investments
(1) Securities Investments
√ Applicable □ Not applicable
Gains/L
osses on Cumulat Source
Variety Account fair ive fair Purchas Gains/lo
Code of Name of Initial Sold in of
of ing Opening value value ed in sses in Closing Account
Reporti
securitie securitie investm measure book changes changes Reporti Reporti book investm
securitie ng
ment value in charged ng ng value ing title
s s ent cost Period ent
s model Reporti to Period Period
ng equity funds
Period
Availabl
Guoxua The
Domesti Fair 1,355,3 1,284,0 1,379,8 e-for-sal
n 160,000 6,560,4 Compan
c/overse 002074 value 83,288. 23,552. 75,532. e
High-tec ,000.00 22.50 y’s own
as stock method 49 91 50 financia
h funds
l asset
Availabl
The
Domesti China Fair e-for-sal
30,828, 72,517, 51,464, 75,114,3 Compan
c/overse 601818 Everbrig value e
816.00 808.14 605.88 53.70 y’s own
as stock ht Bank method financia
funds
l asset
Domesti N/A Xiamen 292,574 Cost 292,574 292,574 Availabl The
17
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
c/overse Bank ,133.00 method ,133.00 ,133.00 e-for-sal Compan
as stock e y’s own
financia funds
l asset
Foshan
branch
Availabl
of The
Domesti e-for-sal
Guangd 500,000 Cost 500,000 500,000 Compan
c/overse N/A e
ong .00 method .00 .00 y’s own
as stock financia
Develop funds
l asset
ment
Bank
1,720,9 1,335,4 1,748,0
483,902 6,560,4
Total -- 75,229. 0.00 88,158. 0.00 0.00 64,019. -- --
,949.00 22.50
63 79 20
Disclosure date of
announcement about
Board’s consent for
securities investment
Disclosure date of
announcement about
shareholders’ meeting’s
consent for securities
investment (if any)
(2) Investments in Derivative Financial Instruments
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VI Sale of Major Assets and Equity Interests
1. Sale of Major Assets
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Interests
□ Applicable √ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
VII Main Controlled and Joint Stock Companies
√ Applicable □ Not applicable
Main subsidiaries and joint stock companies with an over 10% influence on the Company’s net profit
Unit: RMB
Relationship Main
Company business Industry Registered Operating Operating
with the Total assets Net assets Net profit
name scope capital revenues profit
Company
Foshan
Chansheng
Production Manufactur 1,000,000.0 49,096,096. 27,773,852. 94,306,931. 4,281,244
Electronic Subsidiary 3,202,584.42
and sale ing 0 50 21 11 .13
Ballast Co.,
Ltd.
Foshan
Chanchang
Electric Production Manufactur 72,782,944. 117,233,75 105,493,95 33,103,172. -396,774.
Subsidiary -469,196.52
Appliances and sale ing 00 3.56 6.88 26 48
(Gaoming)
Co., Ltd.
Foshan
Taimei
Production Manufactur 76,944,367. 18,767,030. 82,641,917. 2,672,291
Times Subsidiary 500,000.00 2,008,910.10
and sale ing 45 70 32 .32
Lamps Co.,
Ltd.
FSL New
Light
Production Manufactur 50,000,000. 56,156,822. 54,286,950. 10,896,024. 616,824.6
Source Subsidiary 462,618.52
and sale ing 00 20 64 16 9
Technology
Co., Ltd.
FSL
(Xinxiang) Production Manufactur 35,418,439. 53,443,977. 46,831,237. 34,493,532. 3,261,603
Subsidiary 2,460,437.77
Lighting and sale ing 76 33 13 79 .94
Co., Ltd.
Guangdong
Fozhao
Finance 200,000,00 226,514,30 226,054,87 3,513,522
Financing Subsidiary Finance 2,635,142.21
lease 0.00 6.85 8.31 .95
Lease Co.,
Ltd.
FSL
Production Manufactur 15,000,000. 59,572,326. 48,857,908. 67,134,518. 8,073,552
Lighting Subsidiary 3,774,392.16
and sale ing 00 75 17 91 .47
Equipment
19
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Co., Ltd.
Nanjing
Fozhao
Lighting
Production Manufactur 41,683,200. 74,488,836. 48,486,156. 20,772,449. 4,050,560
Component Subsidiary 3,021,091.70
and sale ing 00 01 75 65 .72
s
Manufacturi
ng Co., Ltd.
FSL Zhida
Electric Production Manufactur 50,000,000. 101,535,54 41,149,536. 66,773,802. 7,584,601
Subsidiary 5,689,066.62
Technology and sale ing 00 1.93 53 15 .88
Co., Ltd.
Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable √ Not applicable
Information about the main controlled and joint stock companies:
—Foshan Chansheng Electronic Ballast Co., Ltd. was invested and established by the Company and Mr. Ma
Henglai and had set up and obtained license for business corporation on 26 Aug. 2003. The Company holds 75%
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 24 Dec. 2013, the Company and Mr. Ma Henglai signed the equity transfer agreement. The Company
purchased 25% equity of Foshan Chansheng Electronic Ballast Co., Ltd. held by Mr. Ma Henglai. After the
purchasing, the Company held 100% equity of Foshan Chansheng Electronic Ballast Co., Ltd.
—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 Aug. 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 Aug. 2016, the Company and Prosperity Lamps and Components Ltd signed the equity transfer agreement.
The Company purchased 30% equity of Foshan Chanchang Electric Appliances (Gaoming) Co., Ltd. held by
Prosperity Lamps and Components Ltd. After the purchasing, the Company held 100% equity of Foshan
Chanchang Electric Appliances (Gaoming) Co., Ltd.
—Foshan Taimei Times Lamps Co., Ltd., which is a Sino-foreign joint venture invested and established by the
Company and Reback North America Investment Limited, had obtained license for Business Corporation on 5
Dec. 2005 through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District, Foshan
with document “MWJMY Zi [2005] No. 97”. The Company holds 70% equities of the said company; therefore
the said subsidiary was included into the scope of the consolidated financial statements since the date of
foundation.
—FSL New Light Source Technology Co., Ltd. (its predecessor was “Foshan Lighting Lamps and Lanterns Co.,
20
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Ltd.” and it changed its name to “FSL New Light Source Technology Co., Ltd.” on 17 Dec. 2014), which is
invested and established by the Company together with Foshan Haozhiyuan Trading Co., Ltd., Shanghai Liangqi
Electric Co., Ltd, Changzhou Sanfeng Electrical & Lighting Co., Ltd., Henan Xingchen Electrical & Lighting Co.,
Ltd., Foshan Hongbang Electrical & Lighting Co., Ltd., Hebei Jinfen Trading Co., Ltd., obtaining its license for
Business Corporation on 27 Sept. 2009. The Company holds 60% equities of this company. Therefore the said
subsidiary was included into the scope of the consolidated financial statements since the date of foundation.
On 25 Sep. 2009 and 19 Nov. 2010, the equity transfer agreement was signed between the Company and the
minority shareholders, in which the minority shareholders respectively transferred their equities of Foshan
Lighting Lamps and Lanterns Co., Ltd. to the Company. After transfer, the Company holds 100% equities of
Foshan Lighting Lamps and Lanterns Co., Ltd.
—FSL (Xinxiang) Lighting Co., Ltd. is a limited liability company which is invested and established by the
Company, obtaining its license for Business Corporation on 17 Apr. 2009. The Company holds 100% equities of
the said company, therefore the said subsidiary was included into the scope of the consolidated financial
statements since date of foundation. On 27 Aug. 2013, the 3rd Session of the 7th Board of Directors reviewed and
approved to invest another RMB 2 million (land in an industrial park in Xinxiang, Henan Province and monetary
funds) in FSL (Xinxiang) Lighting, increasing the registered capital of FSL (Xinxiang) Lighting to RMB
35,418,439.76.
—FSL Lighting Equipment Co., Ltd. is a limited liability company invested and established by the Company with
the registered capital of RMB 15 million, which had obtained its license for Business Corporation on 8 May 2013.
And the Company holds 100% equities of this company. Therefore the said subsidiary was included into the scope
of the consolidated financial statements since the date of foundation.
—In accordance with the equity transfer agreement signed between the Company and Prosperity Lamps and
Components Ltd. on 27 Aug. 2008, Prosperity Lamps and Components Ltd. transferred 100% equities of Nanjing
Fozhao Lighting Components Manufacturing Co., Ltd. (formerly known as “Prosperity (Nanjing) Lighting
Components Co., Ltd.”, and changed name to “Nanjing Fozhao Lighting Components Manufacturing Co., Ltd.”
on 15 Nov. 2010.) to the Company. Therefore, Nanjing Fozhao Lighting Components Manufacturing Co., Ltd.
became a wholly-owned subsidiary of the Company. The said subsidiary was included into the scope of the
consolidated financial statements since the merger date.
—FSL Zhida Electric Technology Co., Ltd. (FSL Zhida) was incorporated by the Company, Foshan Zhibida
Enterprise Management Co., Ltd. and Dongguan Baida Semiconductor Material Co., Ltd. on a joint investment
basis. FSL Zhida obtained its business license on October 21, 2016. Holding a stake of 51% in it, the Company
has included FSL Zhida in its consolidated financial statements since the date of FSL Zhida’s incorporation.
VIII Structured Bodies Controlled by the Company
□ Applicable √ Not applicable
IX Performance Forecast for January-September 2017
Warning of possible loss or considerable YoY change in the accumulative net profit made during the
period-beginning to the end of the next reporting period, as well as the reasons:
□ Applicable √ Not applicable
21
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
X Risks Facing the Company and Countermeasures
1. Risks from intensified market competition
From macroscopic aspects, with the descending of speed increase of domestic investment, release of property
tightening policies, international trade protectionism and turmoil of political pattern, as well as the influences of
other factors, the industry may face the risk of insufficient growth momentum. From industry aspects, as an
industry with sufficient competitions, lighting application field is not only under the competitions from companies
of original application field, but also under the competitions from LED upstream and midstream core companies
and packaging enterprises gradually extending to lighting application field, in future, if market competition further
gets increased, negative influences on the Company’s profitability may be generated.
Solutions: The Company will focus on main business. Through increasing research & development investment
constantly, the Company will improve technical innovation ability and added value of products; continue to give
play to the cost advantages in product manufacturing and improve supply ability of high-quality products. At the
same time, by optimizing marketing network, the Company will improve brand image, improve service quality,
intensify customer relationship management and increase core competitive capacity of the company constantly.
2. Risks from price fluctuation of raw materials
The raw material cost of the Company’s products accounts for about 67.98% of the operating cost, main raw
materials include lamp beads, electronic parts and components, aluminum substrates, metal materials, lamp holder,
packing materials, chemical materials and fuel etc., which means the price fluctuation of main raw materials will
cause significant impact on the Company’s production costs. In future, if price of raw materials has fluctuation by
a large margin, the Company’s profitability may have fluctuation as well.
Solutions: By increasing quantity of qualified suppliers, expanding bidding and tendering range, perfecting supply
chain management, paying attention to market dynamics, collecting information, analyzing and pre-judging
supply of main raw materials and price trend, the Company can decrease procurement costs; by improving
automatic, intelligent production level and by implementing technical transformation, technology improvement
and other measures, the Company can improve production efficiency and reduce product cost; by intensifying
production technology and field management, the Company can control product costs.
3. Risks of loss from falling inventory price
At the end of the Reporting Period, the net value of the Company’s inventory was RMB733.1518million,
accounting for 24.68% of the current assets, the inventory mainly contains raw materials, semi-finished products
22
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
and finished products etc. As there’re plenty of product categories and models in the Company, the amount of
inventory value is relatively high. With the increase of the Company’s sales revenue year by year, the raw
materials and inventory commodities reserved for production and sales will simultaneously increase, leading to
higher level of the Company’s inventory. If there’re changes in price or demand in raw material market and
product sales market, the risks of loss from falling inventory price of the Company may happen.
Solutions: The Company can intensify the analysis of sales and change in future market demand, on the basis of
assuring production and sales, the Company can control inventory scale reasonably.
4. Risks from fluctuation of the exchange rate
The RMB exchange rate in China is based on market supply and demand, a basket of currencies for adjustment
and managed floating exchange rate system as reference. With the fluctuation of the world economy, the tense
upgrade of some hot spots, as well as the currency policies in different countries, the fluctuation of exchange rate
will be caused. The export business of the Company accounts for 37% of the Company’s whole business and the
scale is enlarging year by year. If there’s large fluctuation of the exchange rate, the Company’s business
performance will be affected.
Solutions: By intensifying settlement currency management, knowing the changes in economic policies of the
area, exchange rate policies and fluctuation trend of settlement currencies in time, choosing to use good settlement
currencies, the Company can weaken the risks brought by fluctuation of exchange rate as much as possible.
5. Risks from bad debts of accounts receivable
With the enlargement of the Company’s sales volume, the amount of accounts receivable has increased. The main
debit customers of the Company are long-term high-quality customers with many years of cooperation and good
business reputation. If financial status of main debtors has major unfavorable changes, risks from bad debts of
accounts receivable may be caused.
Solutions: By perfecting credit file of customers, evaluating credit status of customers regularly, adopting method
of pledge of customers’ assets, the Company can reduce risks from bad debts of accounts receivable. By
strengthening the management of approval of contract, the Company can avoid legal risks incurred during
implementation of contract. The Company can reinforce the management and collection efforts of accounts
receivable, implement pre-warning treatment for accounts receivable with upcoming deadline during
implementation, and analyze and report accounts receivable regularly.
23
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section V Significant Events
I Annual and Special Meetings of Shareholders Convened during the Reporting Period
1. Meetings of Shareholders Convened during the Reporting Period
Investor Index to disclosed
Meeting Type Convened date Disclosure date
participation ratio information
Announcement No.
2017-016 on
2016 Annual Resolutions of 2016
Meeting of Annual 38.71% 04/26/2017 04/27/2017 Annual Meeting of
Shareholders Shareholders
disclosed on
www.cninfo.com.cn
2. Special Meetings of Shareholders Convened at Request of Preference Shareholders with Resumed Voting
Rights
□ Applicable √ Not applicable
II Proposal for Profit Distribution and Converting Capital Reserve into Share Capital for the
Reporting Period
□ Applicable √ Not applicable
For the Reporting Period, the Company plans not to distribute cash dividends or bonus shares or convert capital
reserve into share capital.
III Commitments of the Company’s Actual Controller, Shareholders, Related Parties and
Acquirer, as well as the Company and Other Commitment Makers, Fulfilled in the Reporting
Period or still Ongoing at Period-End
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Engagement and Disengagement of CPAs Firm
Has the semi-annual financial report been audited?
□Yes √ No
This Semi-Annual Report is unaudited.
24
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
V Explanations Given by Board of Directors and Supervisory Board Regarding “Modified
Auditor’s Report” Issued by CPAs Firm for the Reporting Period
□ Applicable √ Not applicable
VI Explanations Given by Board of Directors Regarding “Modified Auditor’s Report” Issued
for Last Year
□ Applicable √ Not applicable
VII Bankruptcy and Restructuring
□ Applicable √ Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits or arbitrations:
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Other legal matters:
□ Applicable √ Not applicable
IX Punishments and Rectifications
□ Applicable √ Not applicable
No such cases in the Reporting Period.
X Credit Conditions of the Company as well as its Controlling Shareholder and Actual
Controller
√ Applicable □ Not applicable
In the Reporting Period, the controlling shareholder and actual controller of the Company were in a good credit
position, without unsatisfied court judgments, large-amount overdue liabilities or the like.
XI Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
25
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
XII Significant Related Transactions
1. Related Transactions Relevant to Routine Operations
√ Applicable □ Not applicable
Obtaina
As a
ble
percenta
Approve market Index
ge of
Relation Content d Over Method price for to
Related Type of Pricing Price total
with the s of Transact transacti approve of same-ty Disclosu disclos
transacti transacti principl (RMB’0 value of
Compan transacti ion price on line d line or settleme pe re date ed
on party on e ,000) same-ty
y on (RMB’0 not nt transacti inform
pe
,000) on ation
transacti
(RMB’0
ons
,000)
Purchasi
Shareho ng
Prosperi
lder that products
ty
holds and Purchas
Lamps www.c
over 5% receivin e of Market Remitta 03/30/2
& 67.05 67.05 0.06% 200 Not 67.05 ninfo.c
shares g labor material price nce 017
Compon om.cn
of the service s
ents
Compan from
Limited
y related
party
Purchasi
ng
Prosperi Enterpri
products
ty se
and Purchas
Electric controll www.c
receivin e of Market Remitta 03/30/2
al ed by -3.21 -3.21 0.00% 600 Not -3.21 ninfo.c
g labor material price nce 017
(China) related om.cn
service s
Co., individu
from
Ltd. al
related
party
Hangzh Purchasi
Enterpri
ou ng
se
Times products Purchas
controll www.c
Lighting and e of Market Remitta 03/30/2
ed by 113.87 113.87 0.09% 300 Not 113.87 ninfo.c
and receivin material price nce 017
related om.cn
Electric g labor s
individu
al Co., service
al
Ltd. from
26
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
related
party
Purchasi
ng
Foshan
products
NationS Under
and Purchas
tar same www.c
receivin e of Market Remitta 03/30/2
Optoele actual 3,897.29 3.22% 20,000 Not ninfo.c
g labor material price 3,897.29 nce 3,897.29 017
ctronics controll om.cn
service s
Co., er
from
Ltd.
related
party
Purchasi
Guangd ng
ong products
Under
Fenghua and Purchas
same www.c
Advanc receivin e of Market Remitta 03/30/2
actual 410.04 410.04 0.34% 900 Not 410.04 ninfo.c
ed g labor material price nce 017
controll om.cn
Holding service s
er
Co., from
Ltd. related
party
Purchasi
Guangd ng
ong products
Under
Huayue and Purchas
same
bao receivin e of Market Remitta
actual 93.34 93.34 0.08% Not 93.34 N/A
New g labor material price nce
controll
Energy service s
er
Co., from
Ltd. related
party
Selling
Shareho
Prosperi products
lder that
ty and
holds
Lamps providin www.c
over 5% Selling Market Remitta 03/30/2
& g labor 1,482.06 0.73% 3,000 Not ninfo.c
shares products price 1,482.06 nce 1,482.06 017
Compon service om.cn
of the
ents to
Compan
Limited related
y
party
Prosperi Enterpri Selling Selling Market Remitta 03/30/2 www.c
3.86 3.86 0.00% 50 Not 3.86
ty se products products price nce 017 ninfo.c
27
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(Hangzh controll and om.cn
ou) ed by providin
Lighting related g labor
and individu service
Electric al to
al Co., related
Ltd. party
Selling
Prosperi Enterpri products
ty se and
Electric controll providin www.c
Selling Market Remitta 03/30/2
al ed by g labor 17.77 17.77 0.01% 50 Not 17.77 ninfo.c
products price nce 017
(China) related service om.cn
Co., individu to
Ltd. al related
party
Selling
Foshan products
NationS Under and
tar same providin www.c
Selling Market Remitta 03/30/2
Optoele actual g labor 0.34 0.34 0.00% 50 Not 0.34 ninfo.c
products price nce 017
ctronics controll service om.cn
Co., er to
Ltd. related
party
Selling
Hangzh
Enterpri products
ou
se and
Times
controll providin
Lighting Selling Market Remitta
ed by g labor 2.59 2.59 0.00% Not 2.59 N/A
and products price nce
related service
Electric
individu to
al Co.,
al related
Ltd.
party
Total -- -- 6,085 -- 25,150 -- -- -- -- --
Details of large-amount sales return N/A
Give the actual situation in the In March 2017, the Company predicted the total value of its routine transactions with related
Reporting Period (if any) where a parties Foshan NationStar Optoelectronics Co., Ltd., Guangdong Fenghua Advanced Holding
forecast had been made for the total Co., Ltd., Prosperity Lamps & Components Limited, Prosperity Electrical (China) Co., Ltd.,
value of routine related transactions Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. and Hangzhou Times Lighting and
by type to occur in the Reporting Electrical Co., Ltd. Concerning the purchases from its related parties, the actual amount in
Period 2017 was RMB 45.7837million, accounting for 20.81% of the predicted. As for the sales to
28
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
its related parties, the actual amount in 2017 was RMB15.0661million, accounting for
47.83% of the predicted.
Reason for significant difference
between transaction price and market N/A
reference price (if applicable)
2. Related 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. Credits and Liabilities with Related Parties
□ Applicable √ Not applicable
No such cases in the Reporting Period.
5. Other Significant Related Transactions
√ Applicable □ Not applicable
On December 23, 2016, the Company held the 11th meeting of the 8th Board of Directors, and the Proposal on
Signing the Financial Services Agreement with Guangdong Rising Finance Co., Ltd. was examined and approved
at the meeting. On the same day, the Company signed the Financial Services Agreement with Guangdong Rising
Finance Co., Ltd. (hereinafter referred to as “Rising Finance”), and Rising Finance would provide deposit and
settlement services for the Company. During the term of validity of the Agreement, the daily deposit balance of
the Company in Rising Finance Company shall not exceed RMB150 million. The Agreement has expired on June
22, 2017.
On June 28, 2017, the Company held the 15th meeting of the 8th Board of Directors, and the Proposal on Signing
the Financial Services Agreement with Guangdong Rising Finance Co., Ltd. was examined and approved at the
meeting. As such, the Company renewed the Financial Services Agreement with Rising Finance, and Rising
Finance would provide deposit and settlement services for the Company for a term of one year, during which the
daily deposit balance of the Company in Rising Finance Company shall not exceed RMB150 million.
29
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Index to the current announcements about the said related transactions disclosed:
Title of announcement Disclosure date Disclosure website
Announcement on Signing Financial Service
Agreement with Guangdong Rising Finance 12/24/2016 www.cninfo.com.cn
Co., Ltd.
Announcement on Renewing Financial Service
Agreement with Guangdong Rising Finance 06/29/2017 www.cninfo.com.cn
Co., Ltd.
XIII Occupation of the Company’s Funds by Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
XIV Significant Contracts and Their Execution
1. Entrustment, Contracting and Leasing
(1) Entrustment
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable √ Not applicable
No such cases in the Reporting Period.
(3) Leasing
□ Applicable √ Not applicable
No such cases in the Reporting Period.
2. Significant Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.
3. Other Significant Contracts
□ Applicable √ Not applicable
30
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
No such cases in the Reporting Period.
XV Social Responsibilities
1. Targeted Measures Taken to Help People Lift Themselves out of Poverty
The Company did not take such measures in the first half of the year and has no such plans for now.
2. Material Environmental Issues
Is the Company or any of its subsidiaries a heavily polluting business declared by environmental protection
authorities?
No.
XVI Other Significant Events
√ Applicable □ Not applicable
On June 27, 2017, the Company signed an Equity Transfer Agreement with KEDA Clean Energy Co., Ltd.,
transferring the Company’s 38% stake in Qinghai Fozhao Lithium Energy Exploitation Co., Ltd. to the latter for
RMB189.8176 million. After the transfer, the Company would no longer hold equity interest in Qinghai Fozhao
Lithium Energy Exploitation Co., Ltd. As of the end of the first half of 2017, the Company had neither received
the transfer payment nor started the transfer formalities with the competent authority, which is in compliance with
the Equity Transfer Agreement.
XVII Significant Events of Subsidiaries
□ Applicable √ Not applicable
31
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section VI Share Changes and Shareholders’ Profile
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease (+/-) After
Increase
Percentag New Bonus from Percentag
Number Other Subtotal Number
e (%) issues shares capital e (%)
reserve
12,522,47 12,582,00
1. Restricted shares 0.98% 59,524 59,524 0.99%
9 3
1.3 Shares held by other
4,406,450 0.34% 59,524 59,524 4,465,974 0.35%
domestic investors
Among which: Shares held
3,860,675 0.30% 3,860,675 0.30%
by domestic corporations
Shares held
545,775 0.04% 59,524 59,524 605,299 0.05%
by domestic individuals
1.4 Shares held by foreign
8,116,029 0.64% 8,116,029 0.64%
investors
Shares held
8,116,029 0.64% 8,116,029 0.64%
by foreign individuals
1,259,610, 1,259,550
99.02% -59,524 -59,524 99.01%
2. Non-restricted shares 389 ,865
974,940,0 974,879,5
2.1 RMB common shares 76.64% -60,499 -60,499 76.63%
45 46
2.2 Domestically listed 284,670,3 284,671,3
22.38% 975 975 22.38%
foreign shares 44 19
1,272,132, 1,272,132
3. Total shares 100.00% 100.00%
868 ,868
Reasons for any share changes:
√ Applicable □ Not applicable
1. During the Reporting Period, some supervisors and executive officers increased their shareholdings in the
Company, representing an increase of 91049 restricted shares.
32
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
2. During the Reporting Period, the Company’s shares held by some former executive officers who had stayed
unemployed by the Company for six months were unlocked, resulting in an increment of 31525 non-restricted
shares.
3. Due to Item 1 and 2 above, the Company’s restricted shares increased by 59524 shares in the Reporting Period.
Approval of share changes:
□ Applicable √ Not applicable
Transfer of share ownership:
□ Applicable √ Not applicable
Effects of share changes on the basic EPS, diluted EPS, net assets per share attributable to common shareholders
of the Company and other financial indexes of the prior year and the prior period:
□ Applicable √ Not applicable
Other contents that the Company considers necessary or is required by the securities regulatory authorities to
disclose:
□ Applicable √ Not applicable
2. Changes in Restricted Shares
√ Applicable □ Not applicable
Unit: share
Reason for
Name of Opening Unlocked in Increased in Closing restricted
lock-up/unlockin Date of unlocking
shareholder restricted shares Reporting Period Reporting Period shares
g
Lock-up of
Liu Xingming 359,073 0 21,450 380,523 executive Uncertain
officer’s shares
Lock-up of
Tang Qionglan 0 0 12,150 12,150 executive Uncertain
officer’s shares
Lock-up of
Wei Bin 25,627 0 9,975 35,602 Uncertain
executive
33
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
officer’s shares
Lock-up of
Chen Yu 12,870 0 7,500 20,370 executive Uncertain
officer’s shares
Lock-up of
Jiao Zhigang 31,083 0 9,375 40,458 executive Uncertain
officer’s shares
Lock-up of
Xu Xiaoping 0 0 7,575 7,575 executive Uncertain
officer’s shares
Lock-up of
Zhang Yong 18,720 0 7,275 25,995 executive Uncertain
officer’s shares
Lock-up of
Zhang Xuequan 9,908 0 10,125 20,033 executive Uncertain
officer’s shares
Lock-up of
Ye Zhenghong 33,696 0 5,625 39,321 supervisor’s Uncertain
shares
Expiration of
lock-up of
Xie Qing 31,525 31,525 0 0 outgoing 05/24/2017
executive
officer’s shares
Total 522,502 31,525 91,050 582,027 -- --
II Issuance and Listing of Securities
□ Applicable √ Not applicable
III Shareholders and Their Holdings at Period-End
Unit: share
Total number of preference
Total number of common shareholders with resumed
93,117 0
shareholders at period-end voting rights at period-end (if
any) (see note 8)
5% or greater common shareholders or top 10 common shareholders
Name of Nature of Shareholdin Total Increase/de Restricted Non-restricted Pledged or frozen shares
shareholder shareholder g percentage common crease in common common Status Number
34
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
shares held at Reporting shares shares held at
period-end Period held at period-end
period-en
d
Hong Kong
Wah Shing
Foreign
Holding 13.47% 171,360,391 171,360,391 Pledged 83,966,592
corporation
Company
Limited
Prosperity
Lamps & Foreign
10.50% 133,577,143 133,577,143
Components corporation
Limited
Shenzhen
Rising
State-owned
Investment 5.12% 65,178,305 65,178,305
corporation
Development
Co., Ltd.
Guangdong
Electronics
State-owned
Information 4.74% 60,357,728 60,357,728 Pledged 29,575,287
corporation
Industry Group
Ltd.
Central Huijin
Asset State-owned
2.42% 30,799,000 30,799,000
Management corporation
Co., Ltd.
Essence
International
Foreign
Securities 1.91% 24,277,429 24,277,429
corporation
(Hong Kong)
Co., Ltd.
DBS Vickers
Foreign
(Hong Kong) 1.86% 23,645,755 23,645,755
corporation
Ltd A/C Clients
Hong Kong
Rising
Foreign
Investment 1.82% 23,165,684 23,165,684
corporation
Development
Co., Ltd.
Zhuang Jianyi Foreign 0.85% 10,821,372 8,116,029 2,705,343
35
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
individual
China
Merchants Foreign
0.84% 10,686,856 10,686,856
Securities (HK) corporation
Co., Limited
Strategic investors or general
corporations becoming top-10
common shareholders due to N/A
placing of new shares (if any)
(see Note 3)
Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited, Shenzhen
Rising Investment Development Co., Ltd., Guangdong Electronics Information Industry Group
Related or acting-in-concert Ltd. and Hong Kong Rising Investment Development Co., Ltd. are acting-in-concert parties; and
parties among shareholders Prosperity Lamps & Components Limited and Zhuang Jianyi are acting-in-concert parties. Apart
above from that, it is unknown whether there is among the top 10 shareholders any other related parties
or acting-in-concert parties as defined in the Administrative Measures for the Acquisition of
Listed Companies.
Top 10 non-restricted common shareholders
Type of shares
Name of shareholder Non-restricted common shares held at period-end
Type Number
Hong Kong Wah Shing Holding RMB common
171,360,391 171,360,391
Company Limited share
Prosperity Lamps & Components RMB common
133,577,143 133,577,143
Limited share
Shenzhen Rising Investment RMB common
65,178,305 65,178,305
Development Co., Ltd. share
Guangdong Electronics Information RMB common
60,357,728 60,357,728
Industry Group Ltd. share
Central Huijin Asset Management RMB common
30,799,000 30,799,000
Co., Ltd. share
Domestically
Essence International Securities
24,277,429 listed foreign 24,277,429
(Hong Kong) Co., Ltd.
share
Domestically
DBS Vickers (Hong Kong) Ltd A/C
23,645,755 listed foreign 23,645,755
Clients
share
Domestically
Hong Kong Rising Investment
23,165,684 listed foreign 23,165,684
Development Co., Ltd.
share
China Merchants Securities (HK) 10,686,856 Domestically 10,686,856
36
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Co., Limited listed foreign
share
Guangdong Rising Finance Holding RMB common
6,876,386 6,876,386
Co., Ltd. share
Among the top 10 non-restricted common shareholders, Hong Kong Wah Shing Holding
Related or acting-in-concert parties
Company Limited, Shenzhen Rising Investment Development Co., Ltd., Guangdong
among top 10 non-restricted
Electronics Information Industry Group Ltd., Hong Kong Rising Investment Development
common shareholders, as well as
Co., Ltd. and Guangdong Rising Finance Holding Co., Ltd. are acting-in-concert parties.
between top 10 non-restricted
Apart from that, it is unknown whether there is among the top 10 shareholders any other
common shareholders and top 10
related parties or acting-in-concert parties as defined in the Administrative Measures for the
common shareholders
Acquisition of Listed Companies.
Top 10 common shareholders
conducting securities margin trading N/A
(if any) (see note 4)
Indicate by tick mark whether any of the top 10 common shareholders or the top 10 non-restricted common
shareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yea √ No
No such cases in the Reporting Period.
IV Change of Controlling Shareholder or Actual Controller in Reporting Period
Change of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
37
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section VII Preference Shares
□ Applicable √ Not applicable
No preference shares in the Reporting Period.
38
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section VIII Directors, Supervisors and Senior Management
I Changes in Shareholdings of Directors, Supervisors and Senior Management
√ Applicable □ Not applicable
Restricted
Decrease Granted
Increase in shares Granted
Opening in Closing restricted
Incumbent Reporting granted in restricted shares
Name Office title shareholdi Reporting shareholdi shares at
/Former Period Reporting at period-end
ng (share) Period ng (share) period-begin
(share) Period (share)
(share) ning (share)
(share)
Director &
Liu
General Incumbent 478,764 28,600 507,364
Xingming
Manager
Board
Lin Yihui Incumbent 13,000 16,600 29,600
Secretary
Tang
CFO Incumbent 0 16,200 16,200
Qionglan
Vice
Wei Bin General Incumbent 34,169 13,300 47,469
Manager
Vice
Jiao
General Incumbent 41,444 12,500 53,944
Zhigang
Manager
Vice
Chen Yu General Incumbent 17,160 10,000 27,160
Manager
Vice
Xu
General Incumbent 0 10,100 10,100
Xiaoping
Manager
Vice
Zhang
General Incumbent 24,960 9,700 34,660
Yong
Manager
Vice
Zhang
General Incumbent 13,211 13,500 26,711
Xuequan
Manager
Ye
Zhenghon Supervisor Incumbent 44,928 7,500 52,428
g
39
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total -- -- 667,636 138,000 0 805,636 0 0 0
II Changes in Directors, Supervisors and Senior Management
□ Applicable √ Not applicable
The Company’s directors, supervisors and senior management remained unchanged in the Reporting Period.
Please refer to the 2016 Annual Report for details about them.
40
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section IX Corporate Bonds
Does the Company have any corporate bonds publicly offered and listed on the stock exchange, which were undue
before the approval date of this Report or were due but could not be redeemed in full?
No.
41
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section X Financial Report
I Auditor’s Report
Has this semi-annual financial report been audited?
□ Yes √ No
This semi-annual financial report is unaudited.
II Financial Statements
Currency unit for the statements in the notes to these financial statements: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
June 30, 2017
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 815,038,019.29 1,479,283,642.54
Settlement reserve
Interbank lendings
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable 26,434,680.74 67,925,843.74
Accounts receivable 862,433,866.95 595,257,954.00
Accounts paid in advance 27,685,018.96 30,292,007.11
Premiums receivable
Reinsurance premiums receivable
Receivable reinsurance contract
reserve
Interest receivable 3,217,917.15 4,612,406.80
Dividends receivable
Other accounts receivable 36,016,476.65 11,977,660.58
Financial assets purchased under
agreements to resell
Inventories 733,151,791.00 753,681,605.19
42
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Assets held for sale
Non-current assets due within one
year
Other current assets 466,262,718.17 441,205,461.72
Total current assets 2,970,240,488.91 3,384,236,581.68
Non-current assets:
Loans and advances to customers
Available-for-sale financial assets 1,758,739,646.36 1,732,150,857.01
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 209,858,507.98 210,394,932.69
Investment property
Fixed assets 436,897,311.33 446,006,929.66
Construction in progress 147,360,531.44 71,479,325.91
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 158,172,586.28 160,330,395.13
R&D expense
Goodwill
Long-term deferred expense 6,932,911.30 6,897,119.78
Deferred income tax assets 40,730,492.66 43,547,918.44
Other non-current assets 44,200,134.60 45,125,340.00
Total non-current assets 2,802,892,121.95 2,715,932,818.62
Total assets 5,773,132,610.86 6,100,169,400.30
Current liabilities:
Short-term borrowings
Borrowings from Central Bank
Money deposits accepted and
inter-bank deposits
Interbank borrowings
Financial liabilities at fair value
through gains/losses
Derivative financial liabilities
43
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Notes payable
Accounts payable 673,397,021.27 552,255,512.33
Accounts received in advance 32,657,976.85 41,180,818.13
Financial assets sold for repurchase
Fees and commissions payable
Payroll payable 68,383,359.33 96,021,156.06
Taxes payable 24,371,207.42 138,282,644.72
Interest payable
Dividends payable 6,287,923.09
Other accounts payable 32,185,577.54 50,104,338.81
Reinsurance premiums payable
Insurance contract reserve
Payables for acting trading of
securities
Payables for acting underwriting of
securities
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 830,995,142.41 884,132,393.14
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term accounts payable
Long-term payroll payable
Special payables
Provisions
Deferred income 11,872,268.53 10,449,768.49
Deferred income tax liabilities 204,175,913.54 200,112,595.11
Other non-current liabilities
Total non-current liabilities 216,048,182.07 210,562,363.60
Total liabilities 1,047,043,324.48 1,094,694,756.74
44
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Owners’ equity:
Share capital 1,272,132,868.00 1,272,132,868.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 285,821,459.07 285,821,459.07
Less: Treasury shares
Other comprehensive income 1,156,996,843.39 1,133,971,372.25
Special reserve
Surplus reserve 733,924,951.81 733,924,951.81
Provisions for general risks
Retained earnings 1,258,814,782.00 1,564,615,925.99
Equity attributable to owners of the
4,707,690,904.27 4,990,466,577.12
Company (as parent company)
Minority interests 18,398,382.11 15,008,066.44
Total owners’ equity 4,726,089,286.38 5,005,474,643.56
Total liabilities and owners’ equity 5,773,132,610.86 6,100,169,400.30
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
2. Balance Sheet of the Company (as Parent Company)
Unit: RMB
Item Closing balance Opening balance
Current assets:
Monetary funds 621,028,793.79 1,235,417,964.88
Financial assets at fair value through
gains/losses
Derivative financial assets
Notes receivable 25,648,653.72 66,222,840.44
Accounts receivable 865,936,526.24 611,855,496.90
Accounts paid in advance 78,575,487.30 117,217,953.23
Interest receivable 2,187,889.37 3,590,629.01
Dividends receivable 14,671,820.57
Other accounts receivable 63,730,648.45 56,714,849.84
Inventories 665,648,682.97 717,097,516.25
Assets held for sale
45
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Non-current assets due within one
year
Other current assets 349,066,845.84 379,932,325.87
Total current assets 2,671,823,527.68 3,202,721,396.99
Non-current assets:
Available-for-sale financial assets 1,758,739,646.36 1,732,150,857.01
Held-to-maturity investments
Long-term accounts receivable
Long-term equity investments 693,455,797.74 693,992,222.45
Investment property
Fixed assets 361,704,762.30 375,075,102.44
Construction in progress 145,061,164.42 69,589,510.14
Engineering materials
Disposal of fixed assets
Productive living assets
Oil-gas assets
Intangible assets 114,634,684.40 117,017,633.92
R&D expenses
Goodwill
Long-term deferred expense 6,932,911.30 6,897,119.78
Deferred income tax assets 35,219,760.73 37,790,043.38
Other non-current assets 43,580,346.60 44,519,790.00
Total non-current assets 3,159,329,073.85 3,077,032,279.12
Total assets 5,831,152,601.53 6,279,753,676.11
Current liabilities:
Short-term borrowings
Financial liabilities at fair value
through gains/losses
Derivative financial liabilities
Notes payable
Accounts payable 844,733,659.24 701,814,818.26
Accounts received in advance 31,405,141.81 38,406,798.91
Payroll payable 36,517,295.06 66,764,581.34
Taxes payable 11,957,006.39 121,939,572.62
Interest payable
46
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Dividends payable
Other accounts payable 112,053,963.76 258,368,416.59
Liabilities held for sale
Non-current liabilities due within one
year
Other current liabilities
Total current liabilities 1,036,667,066.26 1,187,294,187.72
Non-current liabilities:
Long-term borrowings
Bonds payable
Of which: Preference shares
Perpetual bonds
Long-term payables
Long-term payroll payable
Special payables
Provisions
Deferred income 11,484,768.34 9,984,768.34
Deferred income tax liabilities 204,175,913.54 200,112,595.11
Other non-current liabilities
Total non-current liabilities 215,660,681.88 210,097,363.45
Total liabilities 1,252,327,748.14 1,397,391,551.17
Owners’ equity:
Share capital 1,272,132,868.00 1,272,132,868.00
Other equity instruments
Of which: Preference shares
Perpetual bonds
Capital reserve 293,425,065.15 293,425,065.15
Less: Treasury shares
Other comprehensive income 1,156,996,843.39 1,133,971,372.25
Special reserve
Surplus reserve 733,924,951.81 733,924,951.81
Retained earnings 1,122,345,125.04 1,448,907,867.73
Total owners’ equity 4,578,824,853.39 4,882,362,124.94
Total liabilities and owners’ equity 5,831,152,601.53 6,279,753,676.11
Legal representative: He Yong Accounting head for this Report: Liu Xingming
47
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Head of the accounting department: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
Item Reporting Period Same period of last year
1. Operating revenues 2,023,925,582.84 1,755,670,927.44
Including: Sales revenue 2,023,925,582.84 1,755,670,927.44
Interest revenue
Premium revenue
Fee and commission revenue
2. Operating costs 1,764,705,009.46 1,520,011,395.30
Including: Cost of sales 1,546,931,779.85 1,322,982,560.70
Interest expense
Fee and commission expense
Surrenders
Net claims paid
Net amount provided as insurance
contract reserve
Expenditure on policy dividends
Reinsurance premium expense
Taxes and surtaxes 20,386,602.33 12,251,578.46
Selling expense 81,651,993.69 73,251,807.41
Administrative expense 98,790,821.60 82,117,827.94
Finance costs -7,115,907.36 -6,445,753.04
Asset impairment losses 24,059,719.35 35,853,373.83
Add: Gains on fair value changes (“-”
means losses)
Investment income (“-” means
14,009,282.02 13,720,747.77
losses)
Including: Share of gains/losses of
1,543,965.79 -19,640.12
associates and joint ventures
Exchange gains (“-” means losses)
Other gains
3. Operating profit (“-” means loss) 273,229,855.40 249,380,279.91
Add: Non-operating income 6,022,395.88 1,575,016.58
Including: Gains on disposal of
20,253.97
non-current assets
48
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Less: Non-operating expense 4,769,773.69 4,917,056.94
Including: Losses on disposal of
4,255,164.43 223,092.25
non-current assets
4. Total profit (“-” means loss) 274,482,477.59 246,038,239.55
Less: Income taxes 42,597,501.35 39,425,977.29
5. Net profit (“-” means net loss) 231,884,976.24 206,612,262.26
Net profit attributable to owners of
228,494,660.57 206,925,812.72
the Company (as parent company)
Minority interests income 3,390,315.67 -313,550.46
6. Other comprehensive income, net of
23,025,471.14 140,317,778.68
tax
Other comprehensive income, net of
tax, attributable to owners of the 23,025,471.14 140,317,778.68
Company (as parent company)
6.1 Other comprehensive income
that will not be reclassified into
gains/losses
6.1.1 Changes in net liabilities
or assets with a defined benefit plan upon
re-measurement
6.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
6.2 Other comprehensive income
to be subsequently reclassified into 23,025,471.14 140,317,778.68
gains/losses
6.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
6.2.2 Gains/Losses on fair
value changes of available-for-sale 23,025,471.14 139,503,813.54
financial assets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
6.2.4 Effective gains/losses on
cash flow hedges
6.2.5 Currency translation
differences
49
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
6.2.6 Other 813,965.14
Other comprehensive income, net of
tax, attributable to minority interests
7. Total comprehensive income 254,910,447.38 346,930,040.94
Attributable to owners of the
251,520,131.71 347,243,591.40
Company (as parent company)
Attributable to minority interests 3,390,315.67 -313,550.46
8. Earnings per share
8.1 Basic earnings per share 0.1796 0.1627
8.2 Diluted earnings per share 0.1796 0.1627
Where business mergers under the same control occurred in the Reporting Period, the net profit achieved by the merged parties
before the business mergers was RMB0.00, with the amount for the same period of last year being RMB0.00.
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
4. Income Statement of the Company (as Parent Company)
Unit: RMB
Item Reporting Period Same period of last year
1. Operating revenues 1,980,196,404.29 1,782,457,216.14
Less: Operating costs 1,549,957,656.10 1,355,707,509.94
Taxes and surtaxes 14,028,299.06 7,825,502.47
Selling expense 74,062,826.39 72,636,241.42
Administrative expense 98,398,538.37 82,409,260.52
Finance costs -4,474,253.64 -3,798,619.84
Asset impairment losses 23,053,208.55 35,788,227.78
Add: Gains on fair value changes (“-”
means losses)
Investment income (“-” means
12,903,476.48 13,720,747.77
loss)
Including: Share of gains/losses of
1,543,965.79 -19,640.12
associates and joint ventures
Other gains
2. Operating profit (“-” means loss) 238,073,605.94 245,609,841.62
Add: Non-operating income 5,746,833.41 1,389,423.13
Including: Gains on disposal of
9,401.71
non-current assets
Less: Non-operating expense 2,041,377.50 3,736,581.73
50
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Including: Losses on disposal of
1,528,785.79 193,011.74
non-current assets
3. Total profit (“-” means loss) 241,779,061.85 243,262,683.02
Less: Income taxes 34,045,999.98 37,862,188.03
4. Net profit (“-” means net loss) 207,733,061.87 205,400,494.99
5. Other comprehensive income, net of
23,025,471.14 139,503,813.54
tax
5.1 Other comprehensive income that
will not be reclassified into gains and
losses
5.1.1 Changes in net liabilities or
assets with a defined benefit plan upon
re-measurement
5.1.2 Share of other
comprehensive income of investees that
cannot be reclassified into gains/losses
under equity method
5.2 Other comprehensive income to
be subsequently reclassified into 23,025,471.14 139,503,813.54
gains/losses
5.2.1 Share of other
comprehensive income of investees that
will be reclassified into gains/losses
under equity method
5.2.2 Gains/Losses on fair value
changes of available-for-sale financial 23,025,471.14 139,503,813.54
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financial assets
5.2.4 Effective gains/losses on
cash flow hedges
5.2.5 Currency translation
differences
5.2.6 Other
6. Total comprehensive income 230,758,533.01 344,904,308.53
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: He Yong Accounting head for this Report: Liu Xingming
51
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Head of the accounting department: Tang Qionglan
5. Consolidated Cash Flow Statement
Unit: RMB
Item Reporting Period Same period of last year
1. Cash generated by or used in
operating activities:
Cash generated by sale of
1,754,303,637.97 1,547,557,182.88
commodities and rendering of service
Net increase in money deposits from
customers and interbank placements
Net increase in loans from Central
Bank
Net increase in funds borrowed from
other financial institutions
Cash received as premiums of
original insurance contracts
Net cash generated by reinsurance
business
Net increase in deposits of policy
holders and investment fund
Net increase in disposal of financial
assets at fair value through gains/losses
Interest, fees and commissions
received
Net increase in interbank borrowings
Net increase in funds in repurchase
business
Tax rebates received 42,499,505.18 44,239,351.38
Cash generated by other operating
28,893,716.10 15,057,708.67
activities
Subtotal of cash generated by operating
1,825,696,859.25 1,606,854,242.93
activities
Cash paid for goods and services 1,114,835,724.72 850,216,733.93
Net increase in loans and advances to
customers
Net increase in funds deposited in
Central Bank and interbank placements
Cash paid for claims of original
insurance contracts
Interest, fees and commissions paid
Cash paid as policy dividends
52
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Cash paid to and for employees 371,942,160.26 290,038,390.79
Taxes paid 262,092,182.25 92,793,562.26
Cash used in other operating
107,889,979.24 82,177,248.89
activities
Subtotal of cash used in operating
1,856,760,046.47 1,315,225,935.87
activities
Net cash from operating activities -31,063,187.22 291,628,307.06
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments 7,005.00
Cash received as investment income 15,011,705.23 11,852,333.55
Net cash generated by disposal of
fixed assets, intangible assets and other 1,626,000.00 73,000.00
long-term assets
Net cash generated by disposal of
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
16,637,705.23 11,932,338.55
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 108,664,080.94 33,994,345.07
assets
Cash paid for investments 20,000,000.00 400,000,000.00
Net increase in pledged loans
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
7,539,878.12
activities
Subtotal of cash used in investing
128,664,080.94 441,534,223.19
activities
Net cash from investing activities -112,026,375.71 -429,601,884.64
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cash received as borrowings
Cash generated by issuance of
53
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
activities
Repayment of borrowings
Cash paid for interest expenses and
522,068,416.83 15,935,708.57
distribution of dividends or profit
Including: dividends or profit paid
5,660,290.78
by subsidiaries to minority interests
Cash used in other financing
activities
Sub-total of cash used in financing
522,068,416.83 15,935,708.57
activities
Net cash from financing activities -522,068,416.83 -15,935,708.57
4. Effect of foreign exchange rate
912,356.51 956,368.36
changes on cash and cash equivalents
5. Net increase in cash and cash
-664,245,623.25 -152,952,917.79
equivalents
Add: Opening balance of cash and
1,479,283,642.54 933,546,108.37
cash equivalents
6. Closing balance of cash and cash
815,038,019.29 780,593,190.58
equivalents
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
6. Cash Flow Statement of the Company (as Parent Company)
Unit: RMB
Item Reporting Period Same period of last year
1. Cash generated by or used in
operating activities:
Cash generated by sale of
1,700,716,001.72 1,583,633,686.90
commodities and rendering of service
Tax rebates received 42,499,505.18 44,239,351.38
Cash generated by other operating
24,406,290.15 11,425,998.07
activities
Subtotal of cash generated by operating
1,767,621,797.05 1,639,299,036.35
activities
Cash paid for goods and services 1,363,028,963.41 1,070,690,628.68
Cash paid to and for employees 167,453,782.97 118,971,583.13
Taxes paid 200,061,046.37 42,416,995.71
54
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Cash used in other operating
101,737,482.16 80,203,151.06
activities
Subtotal of cash used in operating
1,832,281,274.91 1,312,282,358.58
activities
Net cash from operating activities -64,659,477.86 327,016,677.77
2. Cash generated by or used in
investing activities:
Cash generated by disinvestments 35,000,000.00 7,005.00
Cash received as investment income 28,724,845.24 11,852,333.55
Net cash generated by disposal of
fixed assets, intangible assets and other 1,580,000.00 14,000.00
long-term assets
Net cash generated by disposal of
subsidiaries or other business units
Cash generated by other investing
activities
Subtotal of cash generated by investing
65,304,845.24 11,873,338.55
activities
Cash paid to acquire fixed assets,
intangible assets and other long-term 99,538,768.93 31,293,478.92
assets
Cash paid for investments 400,000,000.00
Net cash paid to acquire subsidiaries
and other business units
Cash used in other investing
7,500,000.00
activities
Subtotal of cash used in investing
99,538,768.93 438,793,478.92
activities
Net cash from investing activities -34,233,923.69 -426,920,140.37
3. Cash generated by or used in
financing activities:
Cash received as capital
contributions
Cash received as borrowings
Cash generated by issuance of
bonds
Cash generated by other financing
activities
Subtotal of cash generated by financing
activities
Repayment of borrowings
55
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Cash paid for interest expenses and
516,408,126.05 15,935,708.57
distribution of dividends or profit
Cash used in other financing
activities
Sub-total of cash used in financing
516,408,126.05 15,935,708.57
activities
Net cash from financing activities -516,408,126.05 -15,935,708.57
4. Effect of foreign exchange rate
912,356.51 956,368.17
changes on cash and cash equivalents
5. Net increase in cash and cash
-614,389,171.09 -114,882,803.00
equivalents
Add: Opening balance of cash and
1,235,417,964.88 633,291,177.30
cash equivalents
6. Closing balance of cash and cash
621,028,793.79 518,408,374.30
equivalents
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
7. Consolidated Statement of Changes in Owners’ Equity
Reporting Period
Unit: RMB
Reporting period
Equity attributable to owners of the Company (as parent company)
Other equity
Item Other Provisio Retaine Minorit Total
instruments Less:
Share Capital compre Special Surplus ns for d y owners’
Prefer Perpet Treasur
capital reserve hensive reserve reserve general earning interests equity
ence ual Other y shares
income risks s
shares bonds
1,272, 1,133,9 1,564,6 5,005,4
1. Balance at prior 285,821 733,924 15,008,
132,86 71,372. 15,925. 74,643.
year-end ,459.07 ,951.81 066.44
8.00 25 99 56
Add: Changes
in accounting
policies
Corrections
of previous errors
Business
mergers under
same control
Other
2. Balance at 1,272, 285,821 1,133,9 733,924 1,564,6 15,008, 5,005,4
56
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
beginning of the 132,86 ,459.07 71,372. ,951.81 15,925. 066.44 74,643.
year 8.00 25 99 56
3. Increase/
-305,80 -279,38
decrease in the 23,025, 3,390,3
1,143.9 5,357.1
period (“-” means 471.14 15.67
9 8
decrease)
3.1 Total
23,025, 228,494 3,390,3 254,910
comprehensive
471.14 ,660.57 15.67 ,447.38
income
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments charged
to owners’ equity
3.2.4 Other
-534,29 -534,29
3.3 Profit
5,804.5 5,804.5
distribution
6 6
3.3.1
Appropriation to
surplus reserve
3.3.2
Appropriation to
provisions for
general risks
3.3.3
-534,29 -534,29
Appropriation to
5,804.5 5,804.5
owners (or
6 6
shareholders)
3.3.4 Other
3.4 Internal
carry-forward of
owners’ equity
57
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
1,272, 1,156,9 1,258,8 4,726,0
285,821 733,924 18,398,
4. Closing balance 132,86 96,843. 14,782. 89,286.
,459.07 ,951.81 382.11
8.00 39 00 38
Amount last year:
Unit: RMB
Same period of last year
Equity attributable to owners of the Company (as parent company)
Other equity Minorit
Other Provisio Total
Item instruments y
Less: Retaine
Share Capital compre Specific Surplus ns for owners’
Treasur d interest
Prefer Perpet equity
capital reserve hensive reserve reserve general
y shares earnings s
ence ual Other
income risks
shares bonds
1,272, 2,212,9 5,057,7
1. Balance at prior 296,324 628,439 613,661 34,193,
132,86 89,156. 40,219.
year-end ,375.58 ,107.12 ,381.40 330.93
8.00 02 05
Add: Changes
in accounting
policies
Corrections
of previous errors
58
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Business
mergers under
same control
Other
2. Balance at 1,272, 2,212,9 5,057,7
296,324 628,439 613,661 34,193,
beginning of the 132,86 89,156. 40,219.
,375.58 ,107.12 ,381.40 330.93
year 8.00 02 05
3. Increase/
-1,079,0
decrease in the -10,502, 105,485 950,954 -19,185 -52,265,
17,783.
period (“-” means 916.51 ,844.69 ,544.59 ,264.49 575.49
77
decrease)
3.1 Total -1,079,0 1,072,3
914,343 -5,761,3
comprehensive 17,783. 42,050.
.61 90.03
income 77 13
3.2 Capital
-10,508, -13,811, -24,320,
increased and
536.76 685.01 221.77
reduced by owners
3.2.1
Common shares 10,000, 10,000,
increased by 000.00 000.00
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments charged
to owners’ equity
-10,508, -23,811, -34,320,
3.2.4 Other
536.76 685.01 221.77
-121,38
3.3 Profit 5,620.2 105,485 -6,287, -22,183,
7,505.5
distribution 5 ,844.69 923.09 963.69
4
3.3.1 -105,48
105,485
Appropriation to 5,844.6
,844.69
surplus reserve 9
3.3.2
Appropriation to
provisions for
general risks
3.3.3 -15,901, -6,287, -22,189,
59
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Appropriation to 660.85 923.09 583.94
owners (or
shareholders)
5,620.2 5,620.2
3.3.4 Other
5 5
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
1,272, 1,133,9 1,564,6 5,005,4
285,821 733,924 15,008,
4. Closing balance 132,86 71,372. 15,925. 74,643.
,459.07 ,951.81 066.44
8.00 25 99 56
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
8. Statement of Changes in Owners’ Equity of the Company (as Parent Company)
Reporting Period:
Unit: RMB
Reporting Period
Item Share Other equity instruments Capital Less: Other Special Surplus Retaine Total
capital Prefere Perpetu Other reserve Treasury comprehe reserve reserve d owners’
60
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
nce al bonds shares nsive earnings equity
shares income
1,448,9
1. Balance at prior 1,272,13 293,425,0 1,133,971 733,924,9 4,882,362
07,867.
year-end 2,868.00 65.15 ,372.25 51.81 ,124.94
73
Add: Changes
in accounting
policies
Corrections
of previous errors
Other
2. Balance at 1,448,9
1,272,13 293,425,0 1,133,971 733,924,9 4,882,362
beginning of the 07,867.
2,868.00 65.15 ,372.25 51.81 ,124.94
year 73
3. Increase/
-326,56
decrease in the 23,025,47 -303,537,
2,742.6
period (“-” means 1.14 271.55
9
decrease)
3.1 Total
23,025,47 207,733 230,758,5
comprehensive
1.14 ,061.87 33.01
income
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments charged
to owners’ equity
3.2.4 Other
-534,29
3.3 Profit -534,295,
5,804.5
distribution 804.56
6
3.3.1
Appropriation to
61
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
surplus reserve
3.3.2
-534,29
Appropriation to -534,295,
5,804.5
owners (or 804.56
6
shareholders)
3.3.3 Other
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
1,122,3
1,272,13 293,425,0 1,156,996 733,924,9 4,578,824
4. Closing balance 45,125.
2,868.00 65.15 ,843.39 51.81 ,853.39
04
Amount last year:
Unit: RMB
Same period of last year
Other equity instruments Other
Less: Retaine Total
Item Share Prefere Capital comprehe Special Surplus
Perpetu Treasury d owners’
capital nce Other reserve nsive reserve reserve
al bonds shares earnings equity
shares income
1. Balance at prior 1,272,13 293,419,4 2,212,989 628,439,1 515,436 4,922,417
62
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
year-end 2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
Add: Changes
in accounting
policies
Corrections
of previous errors
Other
2. Balance at
1,272,13 293,419,4 2,212,989 628,439,1 515,436 4,922,417
beginning of the
2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
year
3. Increase/
decrease in the -1,079,01 105,485,8 933,470 -40,055,3
5,620.25
period (“-” means 7,783.77 44.69 ,941.33 77.50
decrease)
3.1 Total 1,054,8
-1,079,01 -24,159,3
comprehensive 58,446.
7,783.77 36.90
income 87
3.2 Capital
increased and
reduced by owners
3.2.1
Common shares
increased by
shareholders
3.2.2 Capital
increased by
holders of other
equity instruments
3.2.3
Share-based
payments charged
to owners’ equity
3.2.4 Other
-121,38
3.3 Profit 105,485,8 -15,896,0
5,620.25 7,505.5
distribution 44.69 40.60
4
3.3.1 -105,48
105,485,8
Appropriation to 5,844.6
44.69
surplus reserve 9
3.3.2
-15,901, -15,901,6
Appropriation to
660.85 60.85
owners (or
63
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
shareholders)
3.3.3 Other 5,620.25 5,620.25
3.4 Internal
carry-forward of
owners’ equity
3.4.1 New
increase of capital
(or share capital)
from capital
reserve
3.4.2 New
increase of capital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserve for making
up loss
3.4.4 Other
3.5 Special reserve
3.5.1
Withdrawn for the
period
3.5.2 Used in
the period
3.6 Other
1,448,9
1,272,13 293,425,0 1,133,971 733,924,9 4,882,362
4. Closing balance 07,867.
2,868.00 65.15 ,372.25 51.81 ,124.94
73
Legal representative: He Yong Accounting head for this Report: Liu Xingming
Head of the accounting department: Tang Qionglan
64
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
III Company profile
(I). Overview of the Company
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 October 20, 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
November 23, 1993. The Company was approved to issue 50,000,000 B shares on July 23, 1995. And, as
approved to change into a foreign-invested stock limited company on August 26, 1996 by (1996) WJMZEHZ No.
466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of
China. On December 11, 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 and 2014 the Company implemented the plan of capitalization of capital reserve, after
the transfer, the registered capital of the Company has increased to RMB1,272,132,868.00.
Credibility code of the Company: 91440000190352575W
Legal representative: Mr. He Yong
Address: No. 64, Fenjiang North Road, Foshan, Guangdong Province
(II). Business nature and main operating activities
R&D and production of electro-optical source products, electro-optical source equipment and electro-optical
accessories, raw materials of electric light sources, lamps & fittings, electrical materials, motorcycle components,
household appliances, electric switches, electrical outlets, fire control products, ventilation devices, LED products,
lithium ion batteries and relevant materials; domestic and overseas sale of the aforesaid products; relevant
engineering consulting services. (Where a license is required, it must be obtained according to the government’s
rules before operation.)
(III). Approval and Issue of the Financial Report
The Financial Report was approved and authorized for issue by the Board of Directors on August 23, 2017.
65
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(IV). Scope of the consolidated financial statements and changes
The consolidation scope of the financial statement including the Company and the 9 subordinate subsidiaries such
as Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd., Foshan Chansheng Electronic Ballast Co., Ltd.,
Foshan Taimei Times Lamps and Lanterns Co., Ltd., Nanjing Fozhao Lighting Components Co., Ltd., FSL
(Xinxiang) Lighting Co., Ltd., Foshan Electrical and Lighting New Light Source Technology Co., Ltd.,
Guangdong Fozhao Leasing Co., Ltd., Foshan Lighting Lamps & Components Co., Ltd. and FSL Zhida Electric
Technology Co., Ltd.
IV Basis for preparation of financial statements
1. Preparation basis
The financial statements of the Company are based on the assumption of continuing operation, and are prepared
according to the actual transactions and events, the Accounting Standards for Business Enterprises - Basic
Standards issued by the Ministry of Finance (Decree No. 33 of the Ministry of Finance, revised by Decree No. 76
of the Ministry of Finance) , 41 specific accounting standards, the guidelines on the application of accounting
standards for business enterprises, the interpretation of accounting standards for business enterprises and other
relevant provisions (hereinafter referred to as the Accounting Standards for Business Enterprises) promulgated
and revised on and after February 15, 2006, as well as the disclosure requirements of Rules for the Information
Disclosure of Companies Publicly Issuing Securities No. 15 - General Provisions on Financial Reporting of China
Securities Regulatory Commission (Revised 2014).
According to the relevant provisions of the Accounting Standards for Business Enterprises, the Company’s
accounting is based on accrual basis. Except certain financial instruments, these financial statements are based on
historical costs. The amount of non-current assets held for sale is valuated at fair value less the estimated amount
and the original book value at the time when the conditions for sale are satisfied, whichever is lower. If the asset is
impaired, the corresponding provision for impairment shall be made in accordance with the relevant provisions.
2. Continuation
The Company has no matters affecting the continuing operation of the Company and is expected to have the
ability to continue to operate in the next 12 months. The financial statements of the Company are prepared on the
basis of continuing operation.
V Important accounting policies and estimations
Reminders of the specific accounting policies and accounting estimations:
Naught
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Group are in compliance with 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 1 and ends on December 31 according to the Gregorian calendar.
66
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
3. Operating cycle
A normal operating cycle refers to a period from the Group purchasing assets for processing to realizing cash or
cash equivalents. An operating cycle for the Group is 12 months, which is also the classification criterion for the
liquidity of its assets and liabilities.
4. Recording Currency
Renminbi is the recording currency for the statements of the Company and its subsidiaries, as well as for the
consolidated financial statements.
5. Accounting treatment methods for business combinations under the same control or not under the same
control
A business combination refers to a transaction or event that combines two or more separate businesses to form a
reporting entity. Business combinations are divided into the combination under the same control and the
combination under different controls.
(1) Business combinations under the same control
A business combination under the same control is a business combination in which all of the combining
enterprises are ultimately controlled by the same party or the same parties both before and after the business
combination and on which the control is not temporary. For the combination under the same control, the party
obtaining control over other companies involved in the combination on the combination day is the combining
party, and other companies are combined parties. Combination day is the date on which the obtaining party
actually obtains control over the combined parties.
The assets and liabilities acquired by the combining party are measured at the book value of the combined parties
at the date of combination. The capital reserve (share premium) is adjusted by the difference between the book
value of the net assets obtained by the combining party and the book value of the paid combination consideration
(or total nominal value of the issued shares); if the capital reserve (share premium) is insufficient to offset, adjust
the retained earnings.
The direct costs incurred by the combining party in the conduct of the business combination shall be recorded into
the current profits and losses when incurred.
(2) Business combinations not under the same control
It is business combination under different controls if the companies involved in the combination are not subject to
the final control of the same party or same multiple parties before and after the combination. For the combination
under different controls, the party obtaining control over other companies involved in the combination on the
combination day is the combining party, and other companies are combined parties. Combination day is the date
on which the obtaining party actually obtains control over the combined parties.
For the combination under different controls, the costs of combination include the assets paid, liabilities incurred
or assumed by the purchaser and the fair value of the equity securities issued by the purchaser for the acquisition
of the acquiree, and the audit fees, legal services, assessment consulting and other intermediary service fees and
other management fees incurred for the business combination are included in the current profits and losses. The
transaction costs of the equity securities or debt securities issued by the purchaser as combination consideration
shall be included in the initial recognized amount of the equity securities or the debt securities. The involved
contingent consideration shall be included in the combination cost at the fair value at the purchase date, and if
contingent consideration should be adjusted due to new or further evidence within 12 months after the purchase
date, the consolidated goodwill should be adjusted accordingly. The combination costs incurred by the acquirer
67
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
and the identifiable net assets acquired in the combination are measured at the fair value at the acquisition date.
The difference of the combination cost greater than the fair value of the identifiable net assets of the acquiree
acquired at the acquisition date is recognized as goodwill. If the combination cost is less than the fair value of the
identifiable net assets of the acquiree acquired in the combination, the fair value of the identifiable assets,
liabilities and contingent liabilities of the acquiree and the measurement of the combination costs shall be
reviewed first. If the combination cost is still less than the fair value of the identifiable net assets of the acquiree
acquired in the combination, the difference shall be recorded into the current profits and losses.
If the deductible temporary difference obtained by the purchaser from the acquiree has not been confirmed on the
date of purchase due to the non-compliance with the recognition criteria of deferred income tax assets, the
relevant deferred income tax assets shall be recognized and the goodwill shall be reduced if new or further
information is obtained within 12 months after the date of purchase showing that the relevant circumstances are
already present and it is expected that the economic benefits brought by the deductible temporary difference of the
acquiree on the date of purchase may be realized. If the goodwill is insufficient to offset, the difference shall be
recognized as profit or loss for the current period. Except for the above, the deferred income tax assets related to
the business combination shall be recognized and included in the current profits and losses.
6. Methods for preparing consolidated financial statements
(1) Principle of determining the scope of consolidation
The scope of consolidation of the consolidated financial statements of the Company is determined on the basis of
control. Control means that the Company has the right to invest in the investee and enjoy a variable return through
the participation of the relevant activities of the investee, and has the ability to use the power over the investee to
affect the amount of its return. The scope of consolidation includes the Company and all subsidiaries. Subsidiary
means the subject controlled by the Company.
The Company will conduct a reassessment once the changes in the relevant facts and circumstances result in the
changes to the relevant elements of aforesaid control definition.
(2) Principles, procedures and methods for the preparation of consolidated statements
The Company starts to incorporate it into the scope of consolidation from the date of obtaining the actual control
over the net assets and decision-making of production and operation of the subsidiaries, and ceases to incorporate
it in the scope of consolidation from the date of losing the actual control. For the disposed subsidiaries, the
operating results and cash flow before the date of disposal have been properly included in the consolidated income
statement and consolidated cash flow statement; for the subsidiaries disposed in current period, the beginning
amount of the consolidated balance sheet isn’t adjusted. For the subsidiaries added due to the business
combination under different controls, the operating results and cash flow after the date of purchase have been
properly included in the consolidated income statement and the consolidated cash flow statement, and the
beginning amount and the contrast amount of the consolidated financial statements are not adjusted. For the
subsidiaries added due to the business combination under same control, the operating results and cash flow from
the period begin of the combination to the date of combination have been properly included in the consolidated
income statement and the consolidated cash flow statement, and the contrast amount of the consolidated financial
statements is adjusted at the same time.
In the preparation of the consolidated financial statements, if the subsidiaries are inconsistent with the accounting
policies or accounting periods adopted by the Company, the necessary adjustments shall be made to the financial
statements of the subsidiaries in accordance with the Company’s accounting policies and accounting periods. For
subsidiaries acquired by business combination under different controls, the financial statements shall be adjusted
on the basis of the fair value of the identifiable net assets at the acquisition date.
68
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
As for the subsidiaries acquired from the enterprise combine not under the same control, the individual financial
statement should be adjusted based on the fair value of the identifiable net assets on the purchase date when
compiling the consolidated financial statements; as for the subsidiaries acquired from the enterprise combine
under the same control, should be regarded as exist as the current state when each involved combine party starting
to execute the control in the ultimate control party, and should include the assets, liabilities, operating results and
the cash flow in the consolidated financial statements since the year-begin of the combine period and to adjust the
previous compared financial statement according to the above principles.
All significant balances, transactions and unrealized profits in the Company are set off at the time of preparation
of the consolidated financial statements.
The part of shareholders’ equity and the net profit or loss for the current period of the subsidiaries that are not of
the Company are listed in shareholders’ equity and net profits in the consolidated financial statements as the
minority interests and minority gains and losses separately. The share of minority interests in the current net profit
or loss of the subsidiaries is presented under the item “Minority gains and losses” under the net profit item of the
consolidated income statement. The losses shared by the minority shareholders of the subsidiary exceeding its
share in the shareholders’ equity at the period beginning still off set the minority shareholders' equity.
7. Classification of joint arrangements and accounting treatment of joint operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and be divided into
joint operations and joint ventures.
When the Company is the joint venture party of the joint operations, should recognize the following items related
to the interests share of the joint operations:
(1) Recognize the assets individually held and the assets jointly held by recognizing according to the holding
share;
(2) Recognize the liabilities undertook individually and the liabilities jointly held by recognizing according to the
holding share;
(3) Recognize the revenues occurred from selling the output share of the joint operations enjoy by the Company;
(4) Recognize the revenues occurred from selling the assets of the joint operations according to the holding share;
(5) Recognize the expenses individually occurred and the expenses occurred from the joint operations according
to the holding share of the Company.
When the Company is the joint operation party of the joint ventures, should recognize the investment of the joint
ventures as the long-term equity investment and be measured according g to the said methods of the notes of the
long-term equity investment of the financial statement.
8. Recognition standard for cash and cash equivalents
In the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for
cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,
which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign currency and accounting method for foreign currency
(1) Foreign currency business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spot
exchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balance
sheet date and the spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
recorded into the profits and losses at the current period except that the balance of exchange arising from foreign
currency borrowings for the purchase and construction or production of qualified assets shall be capitalized. The
foreign currency non-monetary items measured at the historical cost shall still be translated at the spot exchange
rate on the transaction date.
(2) Translation of foreign currency financial statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet
date. Among the owner’s equity items, except for the items as “undistributed profits”, other items shall be
translated at the spot exchange rate at the time when they are incurred. The revenues and the expenses items of the
income statement should be translated according to the spot rate on the exchange date.
The difference of the foreign currency financial statements occurred from the above translation should be listed
under the “other comprehensive income” item of the owners’ equity of the consolidated financial statement. As
for the foreign currency items which actually form into the net investment of the foreign operation, the exchange
difference occurred from the exchange rate changes should be listed under the “other comprehensive income” of
the owners’ equity among the consolidated financial statement when compile the consolidated financial statement.
When disposing the foreign operation, as for the discounted difference of the foreign financial statement related to
the foreign operation should be transferred in the current gains and losses according to the proportion. The foreign
cash flow adopts the spot exchange rate on the occurring date of the cash flow. And the influenced amount of the
exchange rate changes should be individually listed among the cash flow statement.
10. Financial instruments
(1) Classification, recognition and measurement of financial assets
Financial assets shall be classified into the following four categories when they are initially recognized: financial
assets measured at fair value and of which variations are recorded in the profits and losses for the current period,
loans and the account receivables, financial assets available for sale and the investments which will be held to
their maturity.
① Financial assets measured at fair value and of which variations are recorded in the profits and losses for the
current period refer to financial assets held by the Company for the purpose of selling in the near future, including
transactional financial assets, or financial assets designated by the management in the initial recognition to be
measured at fair value with variations recorded in the gains and losses for the current period. Financial assets
measured at fair value and of which variations are recorded in the profits and losses for the current period are
subsequently measured at their fair values. Interest or cash dividends arising from such assets during the holing
period are recognized as investment gains. Gains or losses arising from fair value changes are recorded in the
gains and losses for the current period at the end of the Reporting Period. When such assets are disposed, the
difference between their fair values and initially recognized amounts is recognized as investment gains and the
gains and losses arising from fair value changes are adjusted accordingly.
② Loan and accounts receivable: the non-derivative financial assets for which there is no quoted price in the
active market and of which the recoverable amount is fixed or determinable shall be classified as loan and
accounts receivable. The Company shall make subsequent measurement on its loan and accounts receivable on the
basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, when loan
and accounts receivable are terminated from recognizing, or are impaired or amortized, shall be recorded into the
profits and losses of the current period.
③Available-for-sale Financial Assets: the non-derivative financial assets which are designated as
available-for-sale financial assets when they are initially recognized as well as the non-derivative financial assets
other than loans and accounts receivables, investments held until their maturity; and transaction financial assets.
The Company shall make subsequent measurement on available-for-sale financial assets at fair value and
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
recognize the interests or the cash bonus acquired the holding period as the investment income, as well as directly
include the profits or losses formed by the changes of the fair value into the owners’ equity at the period-end, until
the said financial assets shall be transferred out when they are terminated from recognizing or are impaired, which
shall be recorded into the profits and losses of current period.
④ Held-to-maturity Investments: non-derivative financial asset with a fixed date of maturity, a fixed or
determinable recoverable amount and which the Company’s management holds for a definite purpose or the
Company’s management is able to hold until its maturity. The Company shall make subsequent measurement on
its Held-to-maturity Investments on the basis of the post-amortization costs by adopting the actual interest rate,
from which gains and losses, when loan and accounts receivable are terminated from recognizing, or are impaired
or amortized, shall be recorded into the profits and losses of the current period.
(2) Classification, Recognition and Measurement of Financial Liabilities
Financial liabilities shall be classified into the following two categories when they are initially recognized: (1) the
transactional financial liabilities; and (2) other financial liabilities. The financial liabilities initially recognized by
the Company shall be measured at their fair values. For the transactional financial liabilities, the transaction
expenses thereof shall be directly recorded into the profits and losses of the current period; for other categories of
financial liabilities, the transaction expenses thereof shall be included into the initially recognized amount.
① As for the financial liabilities measured by fair value and its changes be included in the current gains and losses,
which including trading financial liabilities and the financial liabilities be appointed to be measured by fair value
with the changes be included in the current gains and losses when being initially recognized, should be executed
subsequent measurement according to the fair value with the profits or losses formed by the changes of the fair
value be included in the current gains and losses.
② Other financial liabilities: The Company shall make subsequent measurement on its other financial liabilities
on the basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, when
other financial liabilities are terminated from recognizing or amortized, shall be recorded into the profits and
losses of the current period.
(3) Recognition and measurement of financial asset transfers
As for the Company transferred nearly all of the risks and rewards related to the ownership of a financial asset to
the transferee, should derecognize the financial assets; as for maintained nearly all of the risks and rewards related
to the ownership of a financial asset, should continue to recognize the transferred financial assets and recognize
the received counter price as a financial liability. Where the Company does not transfer or retain nearly all of the
risks and rewards related to the ownership of a financial asset (that is to say, it is not under a circumstance as
mentioned in Article 7 of these Standards), it shall deal with it according to the circumstances as follows,
respectively: (1)If it gives up its control over the financial asset, it shall stop recognizing the financial asset; (2)If
it does not give up its control over the financial asset, it shall, according to the extent of its continuous
involvement in the transferred financial asset, recognize the related financial asset and recognize the relevant
liability accordingly.
If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference between
the amounts of the following 2 items shall be recorded in the profits and losses of the current period: (1) The book
value of the transferred financial asset; (2) the sum of consideration received from the transfer, and the
accumulative amount of the changes of the fair value originally recorded in the owner's equities.
If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value of the
transferred financial asset shall, between the portion whose recognition has been stopped and the portion whose
recognition has not been stopped, be apportioned according to their respective relative fair value, and the
difference between the amounts of the following 2 items shall be included into the profits and losses of the current
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
period: (1)The book value of the portion whose recognition has been stopped; (2)The sum of consideration of the
portion whose recognition has been stopped, and the portion of the accumulative amount of the changes in the fair
value originally recorded in the owner's equities which is corresponding to the portion whose recognition has been
stopped.
(4) De-recognition conditions of financial liabilities
Only when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of the
financial liability be terminated in all or partly. Where the Group (debtor) enters into an agreement with a creditor
so as to substitute the existing financial liabilities by way of any new financial liability, and if the contractual
stipulations regarding the new financial liability is substantially different from that regarding the existing financial
liability, it terminates the recognition of the existing financial liability, and at the same time recognizes the new
financial liability. If executed practical modification on the whole or part of the contract regulations of the existing
financial liabilities, should terminate to recognize the existing financial liabilities or certain part of it and at the
same time recognize the revised financial liabilities as a new financial liabilities.
Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shall
include into the profits and losses of the current period for the gap between the book value which has been
terminated from recognition and the considerations it has paid (including the non-cash assets it has transferred out
and the new financial liabilities it has assumed).
If the Company re-purchase part of the financial liabilities, should distribute the whole book value of the financial
liabilities according to the comparatively fair value between the continued reorganization part and the terminated
reorganization part on the re-purchase date. And the difference between the book value distributed to the
terminated recognition part and the counter price of the paid part (including the rolled out non-cash assets or the
new financial liabilities undertook) should be included in the current gains and losses.
(5) Recognition method of the fair value of the financial assets and the financial liabilities
As for the financial instruments for which there is an active market, the quoted prices in the active market shall be
used to determine the fair values thereof. Where there is no active market for a financial instrument, the Company
concerned shall adopt value appraisal techniques to determine its fair value. The value appraisal techniques
mainly include the prices adopted by the parties, who are familiar with the condition, in the latest market
transaction upon their own free will, the current fair value obtained by referring to other financial instruments of
the same essential nature, the cash flow capitalization method and the option pricing model, etc.
(6) Impairment test of financial assets (excluding the accounts receivable) and withdrawal method of impairment
provision
The Company inspects the book value of the financial assets on the balance sheet date to judge whether there are
evidences indicate that the financial assets had occurred impairment owning to the occurrence of one or multiple
events.
As for the measurement for impairment of financial assets measured on the basis of the post-amortization costs,
where there is any objective evidence proving that a financial asset measured on the basis of post-amortization
costs is impaired, should be recognized by the carrying amount of the difference between the said financial asset
which shall be written down to the current value of the predicted future cash flow (excluding the loss of future
credits not yet occurred) and the amount of the as written down which shall be recognized as loss of the
impairment of the asset. When calculating the current value of the estimated future cash flow, should adopt the
original effective interests’ rate of the financial assets as the discount rate. The book value of the assets should be
written down to the estimated recoverable amount through impairment provision items with the written down
amount be included in the current gains and losses. As for the financial assets with individual significant amount,
should adopt the individual assessment for ensure whether there are objective evidences indicate the impairment
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
provision and as for the other assets with insignificant amount, should be inspected by individual or group
assessment for ensure whether there are objective evidences indicate the impairment provision.
As for the financial assets measured by cost, if there are evidences indicate the impairment of the financial
instruments without market price which had not measured by fair value because the fair value could not be
reliable measured, the amount of the impairment losses should be measured by the difference between the book
value of the financial assets and the current value of the estimated future cash flow acquired from the discounting
measurement of the current market return rate of the similar financial assets.
Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of the
fair value of the owner’s equity which was directly included shall be transferred out and recorded into the profits
and losses of the current period.
11. Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individually
Definition or amount criteria for an account receivable with a Top five accounts receivable with the largest balances or
significant single amount accounts accounting for over 10% of the total balance of
receivables.
Making separate bad-debt provisions for accounts receivable For an account receivable with a significant single amount, the
with a significant single amount impairment test shall be carried out on it separately. If there is
any objective evidence of impairment, the impairment loss is
recognized and the bad-debt provision is made according to the
difference between the present value of the account receivable’s
future cash flows and its carrying amount. As for non-significant
accounts receivable for which separate impairment provisions are
not necessary as proved by the impairment test, as well as other
significant accounts receivable that have not been impaired as
proved by a separate impairment test, they shall be grouped
according to their credit risks and account ages, and then the
impairment test is carried out on a group basis.
(2) Accounts receivable which the bad debt provision is withdrawn by credit risk characteristics
Group name Withdrawal method of bad debt provision
Common transaction group Aging analysis
Internal transaction group Age analysis method
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Withdrawal proportion of account Withdrawal proportion of other account
Aging
receivables receivables
Within 1 year (including 1 year) 3.00% 3.00%
1 to 2 years 10.00% 10.00%
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
2 to 3 years 30.00% 30.00%
3 to 4 years 50.00% 50.00%
4 to 5 years 80.00% 80.00%
Over 5 years 100.00% 100.00%
In the groups, those adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, those adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3) Accounts receivable with an insignificant single amount but for which the bad debt provision is made
independently
Reason of individually withdrawing bad debt provision There are definite evidences indicate the obvious difference of
thee returnability
Withdraw the bad debt provision according to the difference of
Withdrawal method for bad debt provision
which the future cash flow lower than the book value.
12. Inventory
Is the Company subject to any disclosure requirements for special industries?
No.
(1) Classification of inventory
Inventory refers to finished products, goods in process, and materials consumed in the production process or the
provision of labor services held by the Company for sale in daily activities, mainly including raw materials, goods
in process, materials in transit, finished products, commodities, turnover materials, and commissioned processing
materials. Turnover materials include low-value consumables and packaging.
(2) Pricing method of inventory sent out
The inventory is valued at actual cost when acquired, and inventory costs include procurement costs, processing
costs and other costs. The weighted average method is used when receiving or sending out inventory.
(3) Basis for determining the net realizable value of inventory and the method of withdrawal for inventory
impairment
Net realizable value refers to the estimated selling price of the inventory minus the estimated cost to be incurred at
the time of completion, the estimated selling expenses and the relevant taxes and fees in daily activities. In
determining the net realizable value of inventory, the conclusive evidence obtained is used as the basis and the
purpose of holding the inventory and the impact of the events after the balance sheet date should be taken into
account.
For finished products, the materials used for sale and other goods used for direct sale, the net realizable value is
determined by the estimated selling price of the inventory minus the estimated selling expenses and related taxes
in the process of normal production and operation.
For materials inventory needs to be processed, the net realizable value is determined by the estimated selling price
of the finished products minus the estimated cost to be incurred, the estimated sales costs and the relevant taxes
and fees in the process of normal production and operation.
(4) Inventory system
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
The inventory system of the Company is perpetual inventory.
(5) Amortization method of turnover materials
Low-value consumables are amortized in one-off method.
The packaging is amortized in one-off method.
13. Divided as assets held for sale
The Company divides the non-current financial assets which simultaneously meet with the following conditions
(excluding financial assets) as the assets held for sale: ① the composition part should and could be immediately
sold only according to the usual and idiomatic clauses of selling such composition part under the current
circumstance; ② had made a solution on the disposing of the composition part;③ had signed a irrevocable
transfer agreement with the transferee; ④ the transfer probably be completed within 1 year.
The assets classified as separate non-current assets and disposal groups held for sale are presented separately in
the current assets of the balance sheet; liabilities classified as associated with the transferred assets in the disposal
group held for sale are presented separately in the current liabilities of the balance sheet.
For an asset or disposal group classified as held for sale but no longer meets the conditions for recognition of
non-current assets held for sale, the Company ceases to classify it as held for sale and measure according to the
amount of the following two items, whichever is lower:
1. The book value of the asset or disposal group before being classified as held for sale is measured by the amount
adjusted according to the depreciation, amortization or impairment that should be recognized as it isn’t classified
as held for sale.
2. The recoverable amount at the date decided not to sell.
14. Long-term equity investments
Long-term equity investment refers to the Company’s long-term equity investment with control, joint control or
significant influence on the investee. The long-term equity investment of the Company which has no control, joint
control or significant influence on the investee is accounted for as financial assets available-for-sale or financial
assets at fair value and changes recognized in profit or loss for the current period. For details of accounting
policies, please refer to Note 5: Important accounting policies and accounting estimates, and Note 10: Financial
instruments.
Joint control refers to the control that is common to an arrangement in accordance with the relevant agreement,
and the relevant activities of the arrangement must be agreed upon by the participant who has shared the control.
Significant influence refers to the Company has the power to participate in decision-making on the financial and
operating policies of the investee, but can’t control or jointly control the formulation of these policies with other
parties.
1. Investment cost recognition for long-term equity investments
(1) For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of the
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment,
and the direct relevant expenses occurred for the merger of enterprises shall be included into the profits and losses
of the current period.
(2) For the merger of enterprises not under the same control, The combination costs shall be the fair values, on the
acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by the
Company in exchange for the control on the acquiree, and all relevant direct costs incurred to the acquirer for the
business combination. Where any future event that is likely to affect the combination costs is stipulated in the
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
combination contract or agreement, if it is likely to occur and its effects on the combination costs can be measured
reliably, the Company shall record the said amount into the combination costs.
(3) The cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost
which is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-term
equity investment, taxes and other necessary expenses.
(4) The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
value of the equity securities issued.
(5) The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercial
nature) shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assets
received.
(6) The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at the
fair value.
2. Subsequent measurement of long-term equity investment and recognized method of profit/loss
The long-term equity investment with joint control (except for the common operator) or significant influence on
the investee is accounted by equity method. In addition, the Company's financial statements use cost method to
calculate long-term equity investments that can control the investee.
(1) Long-term equity investment accounted by cost method
When the cost method is used for accounting, the long-term equity investment is priced at the initial investment
cost, and the cost of the long-term equity investment is adjusted according to additional investment or recovered
investment. Except the price actually paid when acquired investment or cash dividends or profits that have been
declared but not yet paid included in the consideration, current investment income is recognized by the cash
dividends or profits declared by the investee.
(2) Long-term equity investment accounted by equity method
When the equity method is used for accounting, if the initial investment cost of the long-term equity investment is
greater than the fair value of the investee’s identifiable net assets, the initial investment cost of the long-term
equity investment shall not be adjusted; if the initial investment cost is less than the fair value of the investee’s
identifiable net assets, the difference shall be recorded into the current profits and losses, and the cost of the
long-term equity investment shall be adjusted at the same time.
When the equity method is used for accounting, the investment income and other comprehensive income shall be
recognized separately according to the net profit or loss and other comprehensive income realized by the investee,
and the book value of the long-term equity investment shall be adjusted at the same time. The part entitled shall be
calculated according to the profits or cash dividends declared by the investee, and the book value of the long-term
equity investment shall be reduced accordingly. For other changes in the owner’s equity other than the net profit
or loss, other comprehensive income and profit distribution of the investee, the book value of the long-term equity
investment shall be adjusted and included in the capital reserve. When the share of the net profit or loss of the
investee is recognized, the net profit of the investee shall be adjusted and recognized according to the fair value of
the identifiable assets of the investee when the investment is made. If the accounting policies and accounting
periods adopted by the investee are inconsistent with the Company, the financial statements of the investee shall
be adjusted according to the accounting policies and accounting periods of the Company and the investment
income and other comprehensive income shall be recognized accordingly. For the transactions between the
Company and associates and joint ventures, if the assets made or sold don’t constitute business, the unrealized
gains and losses of the internal transactions are offset by the proportion attributable to the Company, and the
investment gains and losses are recognized accordingly. However, the loss of unrealized internal transactions
incurred by the Company and the investee attributable to the impairment loss of the transferred assets shall not be
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
offset. If the assets made to associates or joint ventures constitute business, and the investor makes long-term
equity investment but does not obtain the control, the fair value of the investment shall be taken as the initial
investment cost of the new long-term equity investment, and the difference between initial investment and the
book value of the investment is fully recognized in profit or loss for the current period. If the assets sold by the
Company to joint ventures or associates constitute business, the difference between the consideration and the book
value of the business shall be fully credited to the current profits and losses. If the assets purchased by Company
from joint ventures or associates constitute business, conduct accounting treatment in accordance with the
provisions of Accounting Standard for Business Enterprises No. 20 - Business combination, and the profits or
losses related to the transaction shall be recognized in full.
When the net loss incurred by the investee is recognized, the book value of the long-term equity investment and
other long-term equity that substantially constitute the net investment in the investee shall be written down to zero.
In addition, if the Company has an obligation to bear additional losses to the investee, the estimated liabilities are
recognized in accordance with the obligations assumed and included in the current investment losses. If the
investee has realized net profit in later period, the Company will resume the recognition of the income share after
the income share has made up the unrecognized loss share.
(3) Acquisition of minority interests
In the preparation of the consolidated financial statements, capital reserve shall be adjusted according to the
difference between the long-term equity investment increased due to the purchase of minority interests and the
share of the net assets held by the subsidiary from the date of purchase (or the date of combination) calculated
according to the proportion of the new shareholding ratio, and retained earnings shall be adjusted if the capital
reserve is insufficient to offset.
(4) Disposal of long-term equity investment
In the consolidated financial statements, the parent company partially disposes of the long-term equity investment
in the subsidiary without the loss of control, and the difference between the disposal price and the net assets of the
subsidiary corresponding to the disposal of the long-term equity investment is included in the shareholders’ equity.
If the disposal of long-term equity investment in subsidiaries results in the loss of control over the subsidiaries,
handle in accordance with the relevant accounting policies described in Note 5: Important accounting policies and
accounting estimates, and Note 6: Preparation method of consolidated financial statements.
In other cases, the difference between the book value and the actual acquisition price shall be recorded into the
current profits and losses for the disposal of the long-term equity investment.
For long-term equity investment accounted by the equity method and residual equity after disposal still accounted
by the equity method, other comprehensive income originally included in the shareholders’ equity shall be treated
in the same basis of the investee directly disposing related assets or liabilities by corresponding proportion. The
owner’s equity recognized by the change of the owner’s equity of the investee other than the net profit or loss,
other comprehensive income and profit distribution is carried forward proportionally into the current profits and
losses.
For long-term equity investment accounted by the cost method and residual equity after disposal still accounted by
the cost method, other comprehensive income accounted by equity method or recognized by financial instrument
and accounted and recognized by measurement criteria before the acquisition of the control over the investee is
treated in the same basis of the investee directly disposing related assets or liabilities, and carried forward
proportionately into the current profits and losses. Other changes of owner’s equity in net assets of the investee
accounted and recognized by the equity method other than the net profit or loss, other comprehensive income and
profit distribution are carried forward proportionally into the current profits and losses.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
3. Impairment provisions for long-term equity investments
For the relevant testing method and provision making method, see “22. Impairment of long-term assets” herein.
15. Investment real estates
Measurement mode of investment real estates
Not applicable
16. Fixed assets
(1) Recognition conditions
Fixed assets of the Company refers to the tangible assets that simultaneously possess the features as follows: they are held for the
sake of producing commodities, rendering labor service, renting or business management; and their useful life is in excess of one
accounting year and unit price is higher. No fixed assets may be recognized unless it simultaneously meets the conditions as follows:
① The economic benefits pertinent to the fixed asset are likely to flow into the Company; and ② The cost of the fixed asset can be
measured reliably.
(2) Depreciation method
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Housing and building Average method of
3—30 years 5% 31.67%-3.17%
useful life
Machinery equipments Average method of
2—10 years 5% 47.50%-9.50%
useful life
Transportation vehicle Average method of
5—10 years 5% 19.00%-9.50%
useful life
Average method of
Electronic equipment 2—8 years 5% 47.50%-11.88%
useful life
(3) Recognition basis, pricing and depreciation method of fixed assets by finance lease
Not applicable
17. Construction in Progress
1. Pricing of construction in progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carried forward
into fixed assets at the actual cost when reach intended usable condition. The borrowing expenses eligible for
capitalization incurred before the delivery of the construction are included in the construction cost; after the
delivery, the relevant interest expense shall be recorded into the current profits and losses.
2. Standard and time of construction in progress carrying forward into fixed assets
The Company’s construction in progress is carried forward into fixed assets when the construction completes and
reaches intended usable condition. The criteria for determining the intended usable condition shall meet one of the
following:
(1) The physical construction (including installation) of fixed assets has been completed or substantially
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
completed;
(2) Has been produced or run for trial, and the results indicate that the assets can run normally or can produce
stable products stably, or the results of the trial operation show that it can operate normally;
(3) The amount of the expenditure on the fixed assets constructed is little or almost no longer occurring;
(4) The fixed assets purchased have reached the design or contract requirements, or basically in line with the
design or contract requirements.
3. Provision for impairment of construction in progress
Please refer to Note 5: Important accounting policies and accounting estimates and Note 22: Long-term deferred
expenses for the impairment test method and provision for impairment of construction in progress.
18. Borrowing costs
The borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,
including interest on borrowings, amortization of discounts or premiums, ancillary expenses and exchange
differences arising from foreign currency borrowings. The borrowing costs incurred by the Company directly
attributable to the acquisition, construction or production of assets eligible for capitalization are capitalized and
included in the cost of the relevant assets. Other borrowing costs are recognized as expenses according to the
amount at the time of occurrence, and are included in the current profits and losses.
1. Principle of capitalization of borrowing costs
Borrowing costs can be capitalized when all the following conditions are met: Asset expenditure has already
occurred; borrowing costs have already occurred; construction or production activities necessary to bring the
assets to the intended useable or sellable status have already begun.
2. Capitalization period of borrowing costs
Capitalization period refers to the period from the capitalization of borrowing costs starting to the end of
capitalization, excluding the period when capitalization is suspended.
If assets that meet the conditions of capitalization are interrupted abnormally in the course of construction or
production, and the interruption time exceeds 3 consecutive months, the capitalization of borrowing costs shall be
suspended. The borrowing costs incurred during the interruption are recognized as expenses and included in
current profits and losses until the acquisition or construction of the assets is resumed. The capitalization of the
borrowing costs continues if the interruption is a procedure necessary for the purchase or production of assets
eligible for capitalization to meet the intended useable or sellable status.
The borrowing costs shall cease to be capitalized when the purchased or produced assets that meet the conditions
of capitalization meet the intended useable or sellable status. The borrowing costs incurred after the assets eligible
for capitalization meet the intended useable or sellable status can be included in the current profits and losses
when incurred.
3. Calculation method of capitalized amount of borrowing costs
During the period of capitalization, the capitalization amount of interests (including amortization of discounts or
premiums) for each accounting period is determined in accordance with the following provisions:
(1) For special borrowings for the acquisition or construction of assets eligible for capitalization, the interest
expenses actually incurred in the current period of borrowings shall be recognized after deducting the interest
income obtained by depositing the unused borrowing funds into the bank or investment income obtained from
temporary investment.
(2) Where the general borrowing is occupied for the acquisition or construction of assets eligible for capitalization,
the Company multiplies the weighted average of the asset expenditure of the accumulated asset expenditure
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
exceeding the special borrowing by the capitalization rate of the general borrowing to calculate the amount of
interest that should be capitalized for general borrowings. The capitalization rate is determined based on the
weighted average interest rate of general borrowings.
19. Biological assets
Not applicable
20. Oil-gas assets
Not applicable
21. Intangible assets
(1) Pricing method, useful life and impairment test
1. Recognition criteria of intangible assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without
physical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to the
definition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into
the Company; (3) The costs of the assets can be measured reliably.
2. Initial measurement of intangible assets
Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets, including the purchase price, relevant taxes and other expenses
directly attributable to the intended use of the asset. The payment of purchase price of intangible assets exceeding
normal credit terms is deferred, and the cost of intangible assets having financing nature in essence shall be
recognized based on the present value of the purchase price. The difference between the actual payment price and
the present value of the purchase price shall be recorded into the current profits and losses in the credit period
except that can be capitalized in accordance with the Accounting Standard for Business Enterprises No. 17 -
Borrowing Cost.
(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in the
investment contract or agreement, except that the value of the contract or agreement is unfair.
3. Subsequent measurement of intangible assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets
is limited, and the years of the useful life or output that constitutes the useful life or similar measurement units
shall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term that
brings economic benefits to the Company is unforeseeable
Intangible assets with limited useful life shall be amortized by straight line method from the time when the
intangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertain useful
life shall not be amortized. The Company reviews the estimated useful life and amortization method of intangible
assets with limited useful life at the end of each year, and reviews the estimated useful life of intangible assets
with uncertain useful life in each accounting period. For intangible assets that evidence shows the useful life is
limited, the useful life shall be estimated and the intangible assets shall be amortized in the estimated useful life.
4. Recognition criteria and withdrawal method of intangible asset impairment provision
The impairment test method and withdrawal method for impairment provision of intangible assets are detailed in
Note 5: Significant accounting policies and accounting estimates, and Note 22: Long-term asset impairment.
(2) Accounting policy for internal research and development expenditures
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
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 asset have market or the proof of its usefulness if the intangible asset has market and
will be used internally;
(4) Have sufficient technical, financial resources and other resources to support the development of the intangible
assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred since meeting intangible assets
recognition criterion until reaching intended use. Expenditures that have been expensed in previous periods are no
longer adjusted.
Non-monetary assets exchange, debt restructuring, government subsidies and the cost of intangible assets acquired
by business combination are recognized according to relevant provisions of Accounting Standard for Business
Enterprises No. 7 - Non-monetary assets exchange, Accounting Standard for Business Enterprises No. 12 - Debt
restructuring, Accounting Standards for Business Enterprises No. 16 - Government subsidies, Accounting
Standard for Business Enterprises No. 20 - Business combination respectively.
22. Impairment of long-term assets
For non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited
useful life, investment real estate measured in cost mode and long-term equity investments in subsidiaries, joint
ventures and associates, the Company determines whether there is indication of impairment at balance sheet date.
If there is indication of impairment, then estimate the amount of its recoverable value and test the impairment.
Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached useable state
shall be tested for impairment every year, whether or not there is any indication of impairment.
If the impairment test results indicate that the recoverable amount of the asset is lower than its book value, the
impairment provision shall be made at the difference and included in the impairment loss. The recoverable amount
is the higher of the fair value of the asset minus the disposal cost and the present value of the expected future cash
flow of the asset. The fair value of the asset is recognized according to the price of the sales agreement in the fair
trade; if there is no sales agreement but there is an active market, the fair value is recognized according to the
buyer’s bid of the asset; if there is no sales agreement or active market, the fair value of asset shall be estimated
based on the best information that can be obtained. Disposal costs include legal costs related to disposal of assets,
related taxes, handling charges, and direct costs incurred to enable the asset reaching sellable status. The present
value of the expected future cash flows of the assets is recognized by the amount discounted at appropriate
discount rate according to the expected future cash flows arising from the continuing use of the asset and the final
disposal. The provision for impairment of assets is calculated and recognized on the basis of individual assets. If it
is difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shall
be recognized by the asset group to which the asset belongs. The asset group is the smallest portfolio of assets that
can generate cash inflows independently.
The book value of the goodwill presented separately in the financial statements shall be apportioned to the asset
81
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
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.
23. Amortization method of long-term deferred expenses
Long-term deferred expenses refer to general expenses with the apportioned period over one year (one year
excluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shall
be amortized averagely within benefit period. In case of no benefit in the future accounting period, the amortized
value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
24. Payroll
(1) Accounting treatment of short-term compensation
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services and
benefits, medical insurance premiums, birth insurance premium, industrial injury insurance premium, housing
fund, labor union expenditure and personnel education fund, non-monetary benefits etc. The short-term
compensation actually happened during the accounting period when the active staff offering the service for the
Group should be recognized as liabilities and is included in the current gains and losses or relevant assets cost. Of
which the non-monetary benefits should be measured according to the fair value.
(2) Accounting treatment of the welfare after demission
Welfare after demission mainly includes defined contribution plans and defined benefit plans. Of which defined
contribution plans mainly include basic endowment insurance, unemployment insurance, annuity funds, etc., and
the corresponding payable and deposit amount should be included into the relevant assets cost or the current gains
and losses when happen.
(3) Accounting treatment of the demission welfare
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor
contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a
layoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier date
between the time when the Group could not one-sided withdraw the demission welfare which offered by the plan
or layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost related to the
reorganization of the payment of the demission welfare and at the same time includes which into the current gains
and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report
within 12 months, should be disposed according to other long-term payroll payment.
(4) Accounting treatment of the welfare of other long-term staffs
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare.
The group would recorded the salary and the social security insurance fees paid and so on from the employee’s
service terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under the
condition that they meet the recognition conditions of estimated liabilities.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should be
accounting disposed according to the setting drawing plan, while the rest should be disposed according to the
setting revenue plan.
25. Estimated liabilities
(1) Recognition of estimated debts
The obligation such as external guaranty, pending litigation or arbitration, product quality assurance, layoff plan,
loss contract, restructuring and disposal of fixed assets, pertinent to a contingencies shall be recognized as an
estimated debts when the following conditions are satisfied simultaneously: ① That obligation is a current
obligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and ③ The amount of the obligation can be measured in a reliable way.
(2) Measurement of estimated debts
The estimated debts shall be initially measured in accordance with the best estimate of the necessary expenses for
the performance of the current obligation. If there is a sequent range for the necessary expenses and if all the
outcomes within this range are equally likely to occur, the best estimate shall be determined in accordance with
the middle estimate within the range. In other cases, the best estimate shall be conducted in accordance with the
following situations, respectively: ① If the Contingencies concern a single item, it shall be determined in the light
of the most likely outcome. ② If the Contingencies concern two or more items, the best estimate should be
calculated and determined in accordance with all possible outcomes and the relevant probabilities. ③ When all or
some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to be
compensated by a third party, the compensation should be separately recognized as an asset only when it is
virtually certain that the reimbursement will be obtained. The Company shall check the book value of the
estimated debts on the balance sheet date. The amount of compensation is not exceeding the book value of the
recognized estimated liabilities.
26. Share-based payment
Not applicable
27. Other financial instruments such as preferred shares and perpetual capital securities
Not applicable
28. Revenue
Is the Company subject to any disclosure requirements for special industries?
No.
(1) Sale of goods
No revenue from selling goods may be recognized unless the following conditions are met simultaneously: ① The
significant risks and rewards of ownership of the goods have been transferred to the buyer by the Company; ②
The Company retains neither continuous management right that usually keeps relation with the ownership nor
effective control over the sold goods; ③ The revenue amount could be reliably measured; and ④ The relevant
economic benefits may flow into the Company, and the relevant cost which had occurred or will occur could be
reliably measured.
Specific principles for recognition of the “domestic sale and export” incomes of the Company:
① Method for recognition of the domestic sale income: According to the buyer’s requirements, the Company
delivers to the buyer the products that have been considered qualified upon examination. The amount of the
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
income has been determined and the sales invoice has been issued. The payment for the delivered products has
been received in full or is expectedly recoverable.
② Method for recognition of the export income: The Company produces the products according to the contract
signed with the buyer. After the products have been examined as qualified, the Company completes the customs
clearing procedure for export. The shipping company loads the products for shipping. The amount of the income
has been determined and the export sales invoice has been issued. The payment for the delivered products has
been received in full or is expectedly recoverable.
2. Provision of labor services
In the case that the results of the labor service transaction can be reliably estimated, the income from the provision
of labor services shall be recognized at the balance sheet date by the percentage of completion method according
to the progress of the labor transaction.
The result of the provision of labor services can be reliably estimated refers that all the following conditions are
met: ① The amount of income can be measured reliably; ②The relevant economic benefits are likely to inflow to
the enterprise; ③ The progress of the transaction can be reliably determined; ④ The cost incurred and to be
incurred in the transaction can be measured reliably.
If the result of the provision of labor services can’t be reliably estimated, the income from the provision of labor
services shall be recognized according to the cost of labor services that have incurred and are expected to be
compensated, and the cost of labor services that have incurred is recognized as the current expenses. If the cost of
labor services already incurred isn’t expected to be compensated, the income will not be recognized.
If the contract or agreement between the Company and other enterprises includes the sale of goods and the
provision of labor services, and the sale of goods and the provision of labor services can be distinguished and
measured separately, the sale of goods and the provision of labor services shall be dealt with separately; if the sale
of goods and the provision of labor services can’t be distinguished or can’t be measured separately, the contract
will be treated as sale of goods.
3. Income from transferring the right to use assets
The operating income is calculated and recognized according to the time and method stipulated by relevant
contracts and agreements.
4. Interest income
Recognized when all the following conditions are met: ① The amount of income can be measured reliably; ②
Economic benefits related to the transaction can inflow.
29. Government Subsidies
(1) Judgment basis and accounting treatment of government subsidies related to assets
The Company defines government subsidies obtained for acquisition, construction or otherwise formation of
long-term assets as government subsidies related to assets. If the government documents do not specify the
subsidy object, the subsidies are divided into income-related subsidies and assets-related subsidies in the
following method: (1) If the specific items for which the subsidy is targeted are stipulated in government
documents, divide according to the relative proportion of the amount of expenditure that forms assets and the
amount of expenditure included in the cost in the budget for that particular project, and the proportion shall be
reviewed at each balance sheet date and changed as necessary; (2) it is income-related government subsidies if the
government documents only have a general statement of the purpose and do not specify a specific project.
The government subsidies pertinent to assets shall be recognized as deferred income, equally distributed within
the useful lives of the relevant assets, and included in the current profits and losses. But the government subsidies
84
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
measured at their nominal amounts shall be directly included in the current profits and losses.
(2) Judgment basis and accounting treatment of government subsidies pertinent to incomes
Other government subsidies than those recognized as government subsidies pertinent to assets in (1) above are
government subsidies pertinent to incomes.
The government subsidies pertinent to incomes shall be treated respectively in accordance with the circumstances
as follows: those subsidies used for compensating the related future expenses or losses of the enterprise shall be
recognized as deferred income and shall included in the current profits and losses during the period when the
relevant expenses are recognized; or those subsidies used for compensating the related expenses or losses incurred
to the enterprise shall be directly included in the current profits and losses.
30. Deferred income tax assets/deferred income tax liabilities
At the balance sheet date, the Company recognizes the deferred income tax assets or deferred income tax
liabilities in accordance with the balance sheet liability method for the temporary difference between the book
value of assets or liabilities and its tax base.
The Company recognizes all taxable temporary differences as deferred income tax liabilities unless taxable
temporary differences arise in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of the assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination and neither the accounting profit
nor the taxable income is incurred at the time of the transaction;
(2) The time of write-back of taxable temporary differences related to the investments in subsidiaries, associates
and joint ventures can be controlled and the temporary differences are likely to not be written back in the
foreseeable future.
The Company recognizes the deferred income tax assets arising from deductible temporary differences, subject to
the amount of taxable income obtained to offset the deductible temporary differences, unless the deductible
temporary differences arise in the following transactions:
(1) The transaction is not a business combination, and the transaction does not affect the accounting profit or the
amount of taxable income;
(2) The deductible temporary differences related to the investments in subsidiaries, associates and joint ventures
are not met simultaneously: Temporary differences are likely to be written back in the foreseeable future and are
likely to be used to offset the taxable income of deductible temporary differences in the future.
At the balance sheet date, the Company measures the deferred income tax assets and deferred income tax
liabilities at the applicable tax rate of the period expected to recover the asset or pay off the liabilities according to
tax law, and reflects the income tax effect of expected assets recovery or liabilities payoff method at the balance
sheet date.
At the balance sheet date, the Company reviews the book value of the deferred income tax assets. If it is likely
that sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in the
future period, the book value of the deferred income tax assets will be written down. If it is probable that
sufficient taxable income will be available, the amount of write-down will be written back.
31. Lease
(1) Accounting treatment of operating lease
For the leasee of the operating lease, the rent expenses from operating leases shall be recorded by the lessee in the
relevant asset costs or the profits and losses of the current period by using the straight-line method over each
85
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
period of the lease term. The initial direct costs shall be recognized as the profits and losses of the current period;
the contingent rents shall be recorded into the profits and losses of the current period in which they actually arise.
A lessor shall include the assets subject to operating leases in relevant items of its balance sheets in light of the
nature of the asset；The rents from operating leases shall be recorded in the profits and losses of the current period
by using the straight-line method over each period of the lease term；the initial direct costs incurred to a lessor
shall be recorded into the profits and losses of the current period. As for the fixed assets subject to operating
leases, the lessor shall calculate the depreciation of it by adopting depreciation policy for similar assets; as for
other leased assets, systematic and reasonable methods shall be adopted for its amortization; the contingent rents
shall be recorded in the profits and losses of the period in which they actually arise.
(2) Accounting treatments of financial lease
On the lease beginning date, a lessee shall record the lower one of the fair value of the leased asset and the present
value of the minimum lease payments on the lease beginning date as the entering value in an account, recognize
the amount of the minimum lease payments as the entering value in an account of long-term account payable, and
treat the balance between the recorded amount of the leased asset and the long-term account payable as
unrecognized financing charges; the initial direct costs such as commissions, attorney's fees and traveling
expenses, stamp duties directly attributable to the leased item incurred during the process of lease negotiating and
signing the leasing agreement shall be recorded in the asset value of the current period; when amortizing the
unrecognized financial charges during each period within the lease term, should recognize the current financial
expenses by the actual interests rate; and the contingent rental should be included the current gains and losses
when actually arise When a lessee calculates the present value of the minimum lease payments, if it can obtain the
lessor's interest rate implicit in the lease, it shall adopt the interest rate implicit in the lease as the discount rate.
Otherwise, it shall adopt the interest rate provided in the lease agreement as the discount rate. In case the lessee
cannot obtain the lessor's interest rate implicit in the lease and no interest rate is provided in the lease agreement,
the lessee shall adopt the borrowing interest rate of the bank for the same period as the discount rate. If it is
reasonable to be certain that the lessee will obtain the ownership of the leased asset when the lease term expires,
the leased asset shall be fully depreciated over its useful life. If it is not reasonable to be certain that the lessee will
obtain the ownership of the leased asset at the expiry of the lease term, the leased asset shall be fully depreciated
over the shorter one of the lease term or its useful life. On the beginning date of the lease term, a lessor shall
recognize the sum of the minimum lease receipts on the lease beginning date and the initial direct costs as the
entering value in an account of the financing lease values receivable, and record the unguaranteed residual value
at the same time; the balance between the sums of the minimum lease receipts, the initial direct costs and the
unguaranteed residual value, and the sum of their present values shall be recognized as unrealized financing
income; the unrealized financing income shall be allocated to each period during the lease term; the lessor shall
calculate the financing income at the current period by adopting the effective interest rate method; contingent
rents shall be recognized as an expense in the period in which they are actually incurred.
32. Other significant accounting policies and estimates
Not applicable
33. Changes in main accounting policies and estimates
(1) Change of accounting policies
□ Applicable √ Not applicable
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(2) Significant changes in accounting estimates
□ Applicable √ Not applicable
34. Other
Naught
VI Taxes
1. Main taxes and tax rates
Category of tax Taxable amount Tax rate
Balance after the offset of output and input
VAT 11%、17%
VAT
Urban maintenance and construction tax Turnover tax payable 7%、5%
Enterprise income tax Taxable income 15%、25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Taxpayer Income tax rate
Foshan Electrical and Lighting Co., Ltd. 15%
Foshan Chanchang Electric Appliance (Gaoming) Co., Ltd. 25%
Foshan Chansheng Electronic Ballast Co., Ltd. 25%
Foshan Taimei Times Lamps and Lanterns Co., Ltd. 25%
Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. 25%
Foshan Electrical & Lighting (Xinxiang) Co., Ltd. 25%
FSL New Light Source Technology Co., Ltd. 25%
Guangdong Fozhao Leasing Co., Ltd. 25%
Foshan Lighting Lamps and Lanterns Co., Ltd. 25%
FSL Zhida Electric Technology Co., Ltd. 25%
2. Tax preference
The Company passed the re-examination for the First Batch High-tech Enterprise in 2014 on March 17, 2015, as
well as won the “Certificate of High-tech Enterprise” with serial number GR201444001411 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 January 1, 2014.
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
3. Other
Paid according to the relevant regulation of the tax law.
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary funds
Unit: RMB
Item Closing balance Opening balance
Cash on hand 53,479.90 13,058.91
Bank deposits 806,670,784.99 1,477,005,924.93
Other currency funds 8,313,754.40 2,264,658.70
Total 815,038,019.29 1,479,283,642.54
Other notes
2. Financial assets measured by fair value and the changes be included in the current gains and losses
Naught
3. Derivative financial assets
□ Applicable √ Not applicable
4. Notes receivable
(1) Notes receivable listed by category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 26,434,680.74 67,925,843.74
Total 26,434,680.74 67,925,843.74
(2) Notes receivable pledged by the Company at the period-end
Naught
(3) 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
Item Amount of recognition termination at the Amount of not terminated recognition at
88
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
period-end the period-end
Bank acceptance bill 120,858,754.05
Total 120,858,754.05
(4) Notes transferred to accounts receivable because drawer of the notes fails to executed the contract or
agreement
Naught
Other notes
The closing balance of the notes receivable decreased of RMB 41,491,163.00yuan by 61.08 % over the
period-begin, which was mainly due to the increase of payment for goods by endorsing the received bank
acceptance bill.
5. Accounts receivable
(1) Accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
with significant
single amount for 10,062,3 10,062,3 10,064, 10,064,66
1.11% 100.00% 1.59% 100.00%
which bad debt 78.10 78.10 664.92 4.92
provision separately
accrued
Accounts receivable
withdrawn bad debt
899,878, 37,444,5 862,433,8 624,003 28,745,59 595,257,95
provision according 98.89% 4.16% 98.41% 4.61%
370.83 03.88 66.95 ,551.87 7.87 4.00
to credit risks
characteristics
909,940, 47,506,8 862,433,8 634,068 38,810,26 595,257,95
Total 100.00% 5.22% 100.00% 6.12%
748.93 81.98 66.95 ,216.79 2.79 4.00
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end
√ Applicable □ Not applicable
Unit: RMB
89
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Accounts receivable(by Closing balance
units) Accounts receivable Bad debt provision Withdrawal proportion Withdrawal reasons
The debtor was at a
continuous loss due to
Suzhou Mont Lighting the scale and market and
10,062,378.10 10,062,378.10 100.00%
Co., Ltd. other reasons, so now it
is not suitable to produce
continuously.
Total 10,062,378.10 10,062,378.10 -- --
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 865,599,141.43 25,967,974.24 3.00%
Subtotal within 1 year 865,599,141.43 25,967,974.24 3.00%
1 to 2 years 16,117,550.89 1,611,755.08 10.00%
2 to 3 years 2,434,424.81 730,327.45 30.00%
Over 3 years 15,727,253.70 9,134,447.11 58.08%
3 to 4 years 11,627,150.17 5,813,575.09 50.00%
4 to 5 years 3,896,157.57 3,116,926.06 80.00%
Over 5 years 203,945.96 203,945.96 100.00%
Total 899,878,370.83 37,444,503.88 4.16%
Notes of confirming the basis of the groups:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Naught
(2) Accounts receivable withdraw, reversed or collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB 9,788,103.48yuan; the amount of the
reversed or collected part during the Reporting Period was of RMB 0.00.
(3) The actual write-off accounts receivable
Unit: RMB
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Item Amount
Beijing Senjiyuan Electronic Components Sales Center 339,032.24
Nanjing Weiyiming Photoelectric Technology Co., Ltd 303,567.17
TEERA-MONGKOL INDUSTRY PUBLIC 213,202.93
Chenzhou Wangshengda Materials Co., Ltd 99,999.82
Panjin Panfeng Hardware Sales Co., Ltd 17,018.73
Bureau in Finance in 2013 14,703.90
Other retails accounts 103,959.50
Total 1,091,484.29
Notes of accounts receivable write-off:
The write-off process had been performed for the accounts receivable write-off of the Reporting Period in accordance with the
provisions of the Company’s bad debt management system.
(4) Top 5 of the closing balance of the accounts receivable collected according to the arrears party
Unit: RMB
Name of units Nature Amount Aging
First Payment for goods 86,950,173.28 Within1 year
Second Payment for goods 31,389,810.51 Within 1 year
Third Payment for goods 25,.078,424.52 Within 1 year
Fourth Payment for goods 18,267,713.00 Within 1 year
Fifth Payment for goods 14,737,760.00 Within 1 year
Total 176,423,881.31
(5) Account receivable which terminate the recognition owning to the transfer of the financial assets
Naught
(6) The amount of the assets and liabilities formed by the transfer and the continues involvement of
accounts receivable
Naught
6. Prepayment
(1) List by aging analysis
Unit: RMB
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 22,472,029.30 81.17% 25,191,421.39 83.16%
1 to 2 years 742,018.33 2.68% 3,788,046.20 12.51%
2 to 3 years 3,545,685.81 12.81% 616,046.47 2.03%
Over 3 years 925,285.52 3.34% 696,493.05 2.30%
Total 27,685,018.96 -- 30,292,007.11 --
(2) Top 5 of the closing balance of the prepayment collected according to the prepayment target
Unit: RMB
Name of units Closing balance Aging Percentage of total
Relationship
amount(%)
First Non-related relationship 2,900,000.00 2 to 3 years 10.47%
Second Non-related relationship 2,094,715.75 Within 1 year 7.57%
Third Non-related relationship 1,996,800.00 Within 1 year 7.21%
Fourth Non-related relationship 1,199,640.00 Within 1 year 4.33%
Fifth Non-related relationship 935,476.71 Within 1 year 3.38%
Total 9,126,632.46 32.97%
7. Interest receivable
(1) Category of interest receivable
Unit: RMB
Item Closing balance Opening balance
Deposits on a regular basis 2,209,500.00 2,555,260.82
Finance products 1,008,417.15 2,057,145.98
Total 3,217,917.15 4,612,406.80
(2) Significant overdue interest
Naught
8. Dividend receivable
Naught
92
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
9. Other accounts receivable
(1) Other accounts receivable disclosed by category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book Book
Proportio wal Proportio Withdrawal
Amount Amount value Amount Amount value
n proportio n proportion
n
Other accounts
receivable withdrawn
38,455,6 2,439,18 36,016,47 13,527, 1,549,488 11,977,660
bad debt provision 99.24% 6.34% 97.86% 11.45%
62.27 5.62 6.65 149.04 .46 .58
according to credit
risks characteristics
Other accounts
receivable with
insignificant single 295,120. 295,120. 295,120 295,120.0
0.76% 100.00% 2.14% 100.00%
amount for which 00 00 .00 0
bad debt provision
separately accrued
38,750,7 2,734,30 36,016,47 13,822, 1,844,608 11,977,660
Total 100.00% 7.06% 100.00% 13.35%
82.27 5.62 6.65 269.04 .46 .58
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subitem within 1 year
Within 1 year 33,054,794.93 991,643.84 3.00%
Subtotal within 1 year 33,054,794.93 991,643.84 3.00%
1 to 2 years 1,972,699.38 197,269.94 10.00%
2 to 3 years 3,107,684.06 932,305.22 30.00%
Over 3 years 320,483.90 317,966.62 99.21%
3 to 4 years 2,233.32 1,116.66 50.00%
4 to 5 years 7,003.10 5,602.48 80.00%
93
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Over 5 years 311,247.48 311,247.48 100.00%
Total 38,455,662.27 2,439,185.62 6.34%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad debt provision withdrawal, reversed or recovered in the report period
The amount of bad debt provision was RMB 889,703.51yuan, the amount of reversed or recovered bad debt provision in the
Reporting Period RMB 000.
(3) Particulars of the actual verification of other accounts receivable during the Reporting Period
Unit: RMB
Item Amount
Other retails accounts 6.35
Total 6.35
Of which: other significant write-off accounts receivable:
Naught
(4) Other account receivable classified by account nature
Unit: RMB
Nature Closing book balance Opening book balance
VAT export tax refunds 15,120,172.36
Performance bond 3,095,428.94 1,959,752.60
Staff borrow and deposit 11,854,983.51 5,767,808.81
Water & electricity fees 874,384.16 955,738.35
Advance money for street light
3,777,672.16 2,523,547.23
construction
Internal business group 295,120.00 295,120.00
Other 3,733,021.14 2,320,302.05
Total 38,750,782.27 13,822,269.04
(5) The top five other account receivable classified by debtor at period-end
Unit: RMB
94
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Closing balance of
Name of units Nature Closing balance Aging Proportion%
bad debt provision
VAT export tax
First 15,120,172.36 Within 1 year 39.02% 453,605.17
refunds
Advance money for
Second street light 3,777,672.16 2 to 3 years 9.75% 794,687.92
construction
Third Other 1,801,136.00 Within 1 year 4.65% 54,034.08
Application fees for
Fourth 1,382,012.61 Within 1 year 3.57% 41,460.38
certification
Fifth Performance bond 1,332,058.60 Within 1 year 3.44% 39,961.76
Total -- 23,413,051.73 -- 60.42% 1,383,749.31
(6) Accounts receivable involved with government subsidies
Naught
(7) Other account receivable which terminate the recognition owning to the transfer of the financial assets
Naught
(8) The amount of the assets and liabilities formed by the transfer and the continues involvement of other
accounts receivable
Naught
10. Inventory
Whether the Company needs to comply with the disclosure requirements of the real estate industry
No
(1) Category of inventory
Unit: RMB
Closing balance Opening balance
Item Falling price Falling price
Book balance Book value Book balance Book value
reserves reserves
Raw materials 91,904,445.39 5,289,467.13 86,614,978.26 116,197,403.06 1,635,294.87 114,562,108.19
Goods in process 52,788,483.44 52,788,483.44 28,522,590.52 28,522,590.52
Inventory goods 472,426,724.68 13,423,926.27 459,002,798.41 443,843,318.14 14,938,179.05 428,905,139.09
Self-manufacture 133,746,869.72 1,189,614.35 132,557,255.37 179,867,083.78 579,873.99 179,287,209.79
95
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
d semi-finished
product
Low-value
2,188,275.52 2,188,275.52 2,404,557.60 2,404,557.60
fugitive items
Total 753,054,798.75 19,903,007.75 733,151,791.00 770,834,953.10 17,153,347.91 753,681,605.19
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry Information
Disclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting business
No
(2) Falling price reserves of inventory
Unit: RMB
Increased amount Decreased amount
Item Opening balance Reverse or Closing balance
Withdrawal Other Other
write-off
Raw materials 1,635,294.87 5,299,351.65 1,645,179.39 5,289,467.13
Inventory goods 14,938,179.05 7,306,926.80 8,821,179.58 13,423,926.27
Self-manufacture
d semi-finished 579,873.99 775,633.91 165,893.55 1,189,614.35
product
Total 17,153,347.91 13,381,912.36 10,632,252.52 19,903,007.75
(3) Notes of the closing balance of the inventory which includes capitalized borrowing expenses
Naught
(4) Completed unsettled assets formed from the construction contact at the period-end
Naught
11. Assets divided as held-to-sold
Naught
12. Non-current assets due within 1 year
Naught
13. Other current assets
Unit: RMB
96
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Item Closing balance Opening balance
Deductible input tax of VAT 46,262,718.17 41,181,826.53
Advance payment of enterprise income tax 23,635.19
Bank financial products 420,000,000.00 400,000,000.00
Total 466,262,718.17 441,205,461.72
14. Available-for-sale financial assets
(1) List of available-for-sale financial assets
Unit: RMB
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Available-for-sale equity 1,764,589,646. 1,758,739,646. 1,738,000,857.0
5,850,000.00 5,850,000.00 1,732,150,857.01
instruments 36 36 1
Measured by fair 1,454,989,886. 1,454,989,886. 1,427,901,096.6
1,427,901,096.63
value 20 20 3
Measured by cost 309,599,760.16 5,850,000.00 303,749,760.16 310,099,760.38 5,850,000.00 304,249,760.38
1,764,589,646. 1,758,739,646. 1,738,000,857.0
Total 5,850,000.00 5,850,000.00 1,732,150,857.01
36 36 1
(2) Available-for-sale financial assets measured by fair value at the period-end
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
Cost of the equity
instruments/amortized
119,501,727.41 119,501,727.41
cost of the debt
instruments
Fair value 1,454,989,886.20 1,454,989,886.20
Changed amount of the
fair value that be
accumulatively recorded 1,335,488,158.79 1,335,488,158.79
in other comprehensive
income
97
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(3) Available-for-sale financial assets measured by cost at the period-end
Unit: RMB
Book balance Depreciation reserves Shareholdi Cash
ng bonus of
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-end
in in among the Reporting
investees Period
Shenzhen
Zhonghao 5,850,000. 5,850,000. 5,850,000. 5,850,000. Less than
(Group) 00 00 00 00 5.00%
Ltd.
Chengdu
Hongbo 6,000,000. 6,000,000.
6.94%
Industrial 00 00
Co., Ltd.
Xiamen 292,574,13 292,574,13
5.85%
Bank 3.00 3.00
Guangdon
g
Less than
Developm 500,000.00 500,000.00
5.00%
ent Bank
Co., Ltd.
Foshan
Fochen
Road
5,175,627. 4,675,627.
Developm 500,000.22 7.66%
38 16
ent
Company
Limited
310,099,76 309,599,76 5,850,000. 5,850,000.
Total 500,000.22 --
0.38 0.16 00 00
(4) Changes of the impairment of the available-for-sale financial assets during the Reporting Period
Unit: RMB
Category of the
Available-for-sale equity Available-for-sale
available-for-sale Total
instruments liabilities instruments
financial assets
Withdrawn impairment
5,850,000.00 5,850,000.00
balance at the
98
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
period-begin
Withdrawn impairment
5,850,000.00 5,850,000.00
balance at the period-end
(5) Relevant notes of the fair value of the available-for-sale equity instruments which seriously fell or
temporarily fell but not withdrawn the impairment provision
Other notes
—The revenue of the investee company, Foshan Fochen Road Development Company Limited had be included in the unified
collection distribution system of Foshan road and bridge tolls, and the Company had executed amortization within the remained
planting duration by regarding the investment balance as the usufruct and the amortized investment cost of the Reporting Period was
of RMB 500,000.22yuan.
15. Investment held-to-maturity
Naught
16. Long-term accounts receivable
Naught
17. Long-term equity investment
Unit: RMB
Increase/decrease
Closing
Gains and Adjustme
Cash Withdraw balance
Additiona losses nt of
Opening Reduced Changes bonus or al of Closing of
Investee l recognize other
balance investmen of other profits impairme Other balance impairme
investmen d under comprehe
t equity announce nt nt
t the equity nsive
d to issue provision provision
method income
I. Joint ventures
II. Associated enterprises
Qinghai
FSL
Lithium
29,836,24 1,286,376 31,122,62
Energy
6.62 .00 2.62
Exploitati
on Co.,
Ltd.
Shenzhen 180,558,6 257,589.7 2,080,390 178,735,8
Primatron 86.07 9 .50 85.36
99
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
ix
(Nanho)
Electronic
s Ltd.
210,394,9 1,543,965 2,080,390 209,858,5
Subtotal
32.69 .79 .50 07.98
210,394,9 1,543,965 2,080,390 209,858,5
Total
32.69 .79 .50 07.98
18. Investment property
(1) Investment property adopting cost measurement mode
□ Applicable √ Not applicable
(2) Investment property adopting fair value measurement mode
□ Applicable √ Not applicable
(3) List of the investment property failed to completed the property certificate
Naught
19. Fixed assets
(1) List of fixed assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I. Original book
value:
1. Opening
643,574,297.79 810,592,982.55 22,120,160.45 23,976,160.84 1,500,263,601.63
balance
2. Increased
4,589,391.32 28,207,291.04 992,312.85 994,921.51 34,783,916.72
amount of the period
(1) Purchase 1,296,522.30 20,846,321.47 992,312.85 994,921.51 24,130,078.13
(2) Transfer of
project under 3,292,869.02 7,360,969.57 10,653,838.59
construction
(3) Enterprises
combination increase
100
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
3. Decreased
1,970,199.57 67,346,113.02 406,278.29 68,214.56 69,790,805.44
amount of the period
(1) Disposal or
1,970,199.57 61,308,043.53 406,278.29 68,214.56 63,752,735.95
scrap
(2) Equipment
6,038,069.49 6,038,069.49
transformation
4. Closing balance 646,193,489.54 771,454,160.57 22,706,195.01 24,902,867.79 1,465,256,712.91
II. Accumulated
desperation
1. Opening
385,133,462.44 597,616,093.63 15,094,925.78 16,342,970.63 1,014,187,452.48
balance
2. Increased
12,231,418.42 21,710,315.76 702,193.40 1,755,214.89 36,399,142.47
amount of the period
(1) Withdrawal 12,231,418.42 21,710,315.76 702,193.40 1,755,214.89 36,399,142.47
3. Decreased
412,154.52 57,224,217.64 385,964.37 60,042.55 58,082,379.08
amount of the period
(1) Disposal or
412,154.52 53,078,764.67 385,964.37 60,042.55 53,936,926.11
scrap
(2) Equipment
4,145,452.97 4,145,452.97
transformation
4. Closing balance 396,952,726.34 562,102,191.75 15,411,154.81 18,038,142.97 992,504,215.87
III. Depreciation
reserves
1. Opening
40,068,791.46 428.03 40,069,219.49
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decreased
4,214,033.78 4,214,033.78
amount of the period
(1) Disposal or
4,165,026.73 4,165,026.73
scrap
(2) Equipment
49,007.05 49,007.05
transformation
4. Closing balance 35,854,757.68 428.03 35,855,185.71
101
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
IV. Book value
1. Closing book
249,240,763.20 173,497,211.14 7,295,040.20 6,864,296.79 436,897,311.33
value
2. Opening book
258,440,835.35 172,908,097.46 7,025,234.67 7,632,762.18 446,006,929.66
value
(2) List of temporarily idle fixed assets
Unit: RMB
Accumulated Depreciation
Item Original book value Book value Remark
depreciation reserves
Name of the
announcement:
Announcement on
Withdrawing the
Preparation for the
Assets Impairment
T5, T8,
on the Idle
energy-saving lamp 95,099,861.20 60,999,110.87 33,801,743.65 299,006.68
Equipments and
production line
Construction in
Progress; the
Announcement No.:
2015-030; disclosure
website:
www.cninfo.com.cn
(3) Fixed assets leased in from financing lease
Naught
(4) Fixed assets leased out from operation lease
Naught
(5) Details of fixed assets failed to accomplish certification of property
Naught
20. Construction in progress
(1) List of construction in progress
Unit: RMB
102
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Closing balance Opening balance
Item Depreciation Depreciation
Book balance Book value Book balance Book value
reserves reserves
Construction in
147,360,531.44 147,360,531.44 71,479,325.91 71,479,325.91
progress
Total 147,360,531.44 147,360,531.44 71,479,325.91 71,479,325.91
(2) Changes of significant construction in progress
Unit: RMB
Of
Amount Proporti which:
Accumul
that on the Capitaliz
Other ative
transferr estimate amount ation rate
Estimate decrease amount
Name of Opening Increase ed to Closing d of the Project of the of the Capital
d d amount of
item balance d amount fixed balance project progress capitaliz interests resources
number of the capitaliz
assets of accumul ed of the
period ed
the ative interests period
interests
period input of the
period
Fuwan
intellige
49,000,0 12,977,7 12,977,7
nt 26.49% 30.00% Other
00.00 41.38 41.38
worksho
pH
D project
of
Gaoming 30,000,0 18,949,6 2,753,74 21,703,3
72.34% 95.00% Other
standard 00.00 19.56 5.95 65.51
worksho
p
Fuwan
standard 30,000,0 16,567,3 6,656,84 23,224,1
77.41% 95.00% Other
worksho 00.00 14.48 3.69 58.17
pE
Fuwan
standard 26,400,0 7,786,23 7,786,23
29.49% 35.00% Other
worksho 00.00 0.10 0.10
p K2
Fuwan 26,400,0 7,949,14 7,949,14
30.11% 35.00% Other
standard 00.00 7.56 7.56
103
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
worksho
p K3
Fuwan
standard 22,400,0 6,941,59 6,941,59
30.99% 32.00% Other
worksho 00.00 3.11 3.11
p J1
Fuwan
standard 22,400,0 6,803,03 6,803,03
30.37% 32.00% Other
worksho 00.00 2.32 2.32
p J2
Automat
ion
equipme
nt
system
of 22,000,0 5,533,33 5,533,33
25.15% 30.00% Other
intellige 00.00 3.21 3.21
nt
worksho
p
(worksh
op H)
9
assembly
11,000,0 7,981,04 2,019,64 10,000,6
lines of 90.92% 95.00% Other
00.00 4.20 8.42 92.62
LED
(16005)
LEDT8
automati
c line 6,500,00 2,907,39 3,110,43 6,017,83
92.58% 99.00% Other
transfor 0.00 8.19 7.44 5.63
mation
(16033)
246,100, 46,405,3 62,531,7 108,937,
Total -- -- --
000.00 76.43 53.18 129.61
(3) List of the withdrawal of the impairment provision of the construction in progress
Naught
21. Engineering material
Naught
104
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
22. Liquidation of fixed assets
Naught
23. Productive biological assets
(1) Productive biological assets adopting cost measurement mode
□ Applicable √ Not applicable
(2) Productive biological assets adopting fair value measurement mode
□ Applicable √ Not applicable
24. Oil and gas assets
□ Applicable √ Not applicable
25. Intangible assets
(1) Information
Unit: RMB
Item Land use right Patent Non-patents Software use right Total
I. Original book
value
1. Opening
211,719,938.60 200,000.00 2,773,651.87 214,693,590.47
balance
2. Increased
amount of the period
(1) Purchase
(2) Internal R &D
(3) Increase from
enterprise
combination
3. Decrease in the
Reporting Period
(1) Disposal
4. Closing 211,719,938.60 200,000.00 2,773,651.87 214,693,590.47
105
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
balance
II. Total accrued
amortization
1. Opening
53,104,711.50 200,000.00 1,058,483.84 54,363,195.34
balance
2. Increased
1,937,293.01 220,515.84 2,157,808.85
amount of the period
(1) Withdrawal 1,937,293.01 220,515.84 2,157,808.85
3. Decrease in
the Reporting Period
(1) Disposal
4. Closing
55,042,004.51 200,000.00 1,278,999.68 56,521,004.19
balance
III. Depreciation
reserves
1. Opening
balance
2. Increased
amount of the period
(1) Withdrawal
3. Decrease in the
Reporting Period
(1) Disposal
4. Closing
balance
IV. Book value
1. Book value of the
156,677,934.09 1,494,652.19 158,172,586.28
period-end
2. Book value of the
158,615,227.10 1,715,168.03 160,330,395.13
period-begin
The proportion the intangible assets formed from the internal R&D through the Company amount the balance of the intangible assets
at the period-end was 0.00%.
106
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(2) Details of fixed assets failed to accomplish certification of land use right
Naught
26. R&D expenses
Naught
27. Goodwill
(1) Original book value of goodwill
Naught
(2) Impairment provision of goodwill
Naught
28. Long-term unamortized expenses
Unit: RMB
Amortization
Item Opening balance Increased amount Decrease Closing balance
amount
Maintenance and
6,897,119.78 1,683,365.04 1,647,573.52 6,932,911.30
decoration expenses
Total 6,897,119.78 1,683,365.04 1,647,573.52 6,932,911.30
29. Deferred income tax assets/deferred income tax liabilities
(1) Deferred income tax assets had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Assets impairment
136,128,598.22 20,625,526.93 128,070,435.31 19,448,040.38
provision
Unrealized profits of
476,596.87 71,489.53 1,356,293.17 203,443.98
internal transactions
Deductible losses 16,382,698.72 4,095,674.68 16,435,405.51 4,108,851.38
Depreciation of fixed
67,654,979.71 10,479,436.86 65,682,019.37 10,183,492.79
assets
107
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Payroll payable 36,389,097.70 5,458,364.66 63,987,177.61 9,604,089.91
Total 257,031,971.22 40,730,492.66 275,531,330.97 43,547,918.44
(2) Deferred income tax liabilities had not been off-set
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference liabilities difference liabilities
Changes of the fair value
of the available-for-sale 1,335,488,158.79 200,323,223.82 1,308,399,369.22 196,259,905.39
financial assets
Share of other
comprehensive income
of investees that cannot
25,684,598.14 3,852,689.72 25,684,598.14 3,852,689.72
be reclassified into
profit/loss under the
equity method
Total 1,361,172,756.93 204,175,913.54 1,334,083,967.36 200,112,595.11
(3) Deferred income tax assets or liabilities listed by net amount after off-set
Unit: RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax
40,730,492.66 43,547,918.44
assets
Deferred income tax
204,175,913.54 200,112,595.11
liabilities
(4) List of unrecognized deferred income tax assets
Naught
(5) Deductible losses of unrecognized deferred income tax assets will due the following years
Naught
108
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
30. Other non-current assets
Unit: RMB
Item Closing balance Opening balance
Land purchase and the ownership implicit
41,755,700.00 41,755,700.00
of relevant items
Prepayments for business facilities 2,444,434.60 3,369,640.00
Total 44,200,134.60 45,125,340.00
31. Short-term loans
Naught
32. Financial liabilities measured by fair value and the changes included in the current gains and losses
Naught
33. Derivative financial liabilities
□ Applicable √ Not applicable
34. Notes payable
The total unpaid notes payable due at the period end was RMB 0.00.
35. Accounts payable
(1) List of accounts payable
Unit: RMB
Item Closing balance Opening balance
Accounts payable 673,397,021.27 552,255,512.33
Total 673,397,021.27 552,255,512.33
(2) Notes of the accounts payable aging over one year
Naught
36. Advance from customers
(1) List of advance from customers
Unit: RMB
109
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Item Closing balance Opening balance
Prepayments 32,657,976.85 41,180,818.13
Total 32,657,976.85 41,180,818.13
(2) Significant advance from customers aging over one year
Naught
(3) Particulars of settled but unfinished projects formed by construction contract at period-end
Naught
37. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Opening balance Increase Decrease Closing balance
I. Short-term salary 96,021,156.06 319,106,399.00 346,744,195.73 68,383,359.33
II. Welfare after
demission - defined 25,197,964.53 25,197,964.53
contribution plans
Total 96,021,156.06 344,304,363.53 371,942,160.26 68,383,359.33
(2) List of Short-term Salary
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Salary, bonus, allowance,
95,595,393.49 282,014,781.96 309,691,654.41 67,918,521.04
subsidy
2. Employee welfare 12,695,704.13 12,695,704.13
3. Social insurance 15,681,813.55 15,681,813.55
Including: Medical insurance
12,905,594.63 12,905,594.63
premiums
Work-related
1,561,453.07 1,561,453.07
injury insurance
Maternity insurance 1,214,765.85 1,214,765.85
4. Housing fund 5,987,908.00 5,987,908.00
5. Labor union budget and
425,762.57 2,726,191.36 2,687,115.64 464,838.29
employee education budget
110
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total 96,021,156.06 319,106,399.00 346,744,195.73 68,383,359.33
(3) List of Drawing Scheme
Unit: RMB
Item Opening balance Increase Decrease Closing balance
1. Basic pension benefits 24,306,411.37 24,306,411.37
2. Unemployment
891,553.16 891,553.16
insurance
Total 25,197,964.53 25,197,964.53
38. Taxes Payable
Unit: RMB
Item Closing balance Opening balance
VAT 18,160,385.85 9,504,368.23
Corporate income tax -171,758.70 121,469,524.92
Personal income tax 610,225.20 452,181.32
Urban maintenance and construction tax 1,262,089.71 947,172.36
Education Surcharge 904,746.30 680,460.70
Property tax 1,104,316.04 4,259,219.31
Land use tax 2,334,756.55 804,737.31
Other taxes 166,446.47 164,980.57
Total 24,371,207.42 138,282,644.72
Other notes:
The closing balance of taxes payable drops 82.38%, RMB113,911,437.30yuan. compared to that of the beginning of the period,
which is from the payment of increase of corporate income tax caused by revenues generated from sales of shares of Guoxuan
High-tech Co., Ltd. in the fourth quarter of the same period of last year.
39. Interest Payable
Naught
40. Dividends Payable
Unit: RMB
Item Closing balance Opening balance
Common stock dividends 6,287,923.09
111
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total 6,287,923.09
Other notes: including the significant dividends payable unpaid for more than one year, the reason for unpayment shall be disclosed:
The subsidiary Foshan Taimei Times Lamps and Lanterns Co., Ltd. has distributed and paid in the reporting period the profits of
2013 and 2014 allocated at the beginning of the year.
41. Other Accounts Payable
(1) Other Accounts Payable Listed by Nature of the Account
Unit: RMB
Item Closing balance Opening balance
Compensation for lawsuit 1,762,533.43 1,762,533.43
performance bond 18,404,130.82 20,564,161.28
Relevant fees of sale 1,327,650.91 15,634,331.32
Escrow of housing provident fund,
damages, default money and down 8,076,410.52 8,076,410.52
payment
Others 2,614,851.86 4,066,902.26
Total 32,185,577.54 50,104,338.81
(2) Other Significant Accounts Payable with Aging over One Year
Unit: RMB
Item Closing balance Unpaid/ Un-carry-over reason
Escrow of housing provident fund,
damages, default money and down 8,076,410.52
payment
Total 8,076,410.52 --
42. Liabilities Classified as Holding for Sale
Naught
43. Non-current Liabilities Due within 1 Year
Naught
44. Other Current Liabilities
Naught
112
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
45. Long-term Loan
Naught
46. Bonds Payable
Naught
47. Long-term Payable
Naught
48. Long-term Payroll Payable
Naught
49. Special Payable
Naught
50. Accrued Liabilities
Naught
51. Deferred Revenue
Unit: RMB
Item Opening balance Increase Decrease Closing balance Reason
Government
Government
10,449,768.49 1,500,000.00 77,499.96 11,872,268.53 subsidies related to
subsidies
assets/revenues
Total 10,449,768.49 1,500,000.00 77,499.96 11,872,268.53 --
Item involving government subsidies:
Unit: RMB
Amount recorded
into Related to
Amount of newly
Item Opening balance non-operating Other changes Closing balance assets/related
subsidy
income in report income
period
LED production
technical Related to the
9,852,274.95 9,852,274.95
transformation assets
project
113
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Production line of
50 million Related to the
465,000.15 77,499.96 387,500.19
energy-saving assets
fluorescent lamp
New type of low
cost silicon
substrate LED Related to the
29,668.32 29,668.32
light source income
module
technology
Standard optical
components
testing laboratory
capacity Related to the
102,825.07 102,825.07
construction and income
products quality
guarantee
engineering
Suggestion from
the
Electro-optical
Institute of Related to the
1,000,000.00 1,000,000.00
Foshan income
Electrical and
Lighting Co.,
Ltd.
Overseas
protection plan of Related to the
500,000.00 500,000.00
intellectual income
property of FSL
Total 10,449,768.49 1,500,000.00 77,499.96 11,872,268.53 --
52. Other Non-current Liabilities
Naught
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Opening Closing
New shares Capitalized
balance Bonus shares Others Subtotal balance
issued Capital
114
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
reserves
The sum of 1,272,132,868. 1,272,132,868.
shares 00 00
Other notes:
54. Other Equity Instruments
Naught
55. Capital Surplus
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Capital premium 278,575,487.53 278,575,487.53
Other capital reserves 7,245,971.54 7,245,971.54
Total 285,821,459.07 285,821,459.07
56. Treasury Stock
Naught
57. Other Comprehensive Income
Unit: RMB
Reporting period
Less: recorded
in other
Amount comprehensive Attributable
Opening before income in Less: to owners Attributable Closing
Item
balance income tax prior period Income tax of the to minority balance
in current and transferred expense Company shareholder
period to profit or after tax s after tax
loss in current
period
II. Other comprehensive income 1,133,971,37 27,088,789. 4,063,318.4 23,025,471. 1,156,996
reclassify into profits and losses 2.25 57 3 14 ,843.39
Including: shares enjoyed in the other
comprehensive income reclassified 21,831,908.4 21,831,90
into profits and losses under the 2 8.42
equity method
115
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Profits or losses from the
1,112,139,46 27,088,789. 4,063,318.4 23,025,471. 1,135,164
change of fair value of available for
3.83 57 3 14 ,934.97
sale financial assets
1,133,971,37 27,088,789. 4,063,318.4 23,025,471. 1,156,996
Total of other comprehensive income
2.25 57 3 14 ,843.39
58. Special Reserves
Naught
59. Surplus Reserves
Unit: RMB
Item Opening balance Increase Decrease Closing balance
Statutory surplus
597,038,383.45 597,038,383.45
reserves
Discretionary surplus
136,886,568.36 136,886,568.36
reserves
Total 733,924,951.81 733,924,951.81
60. Retained Earnings
Unit: RMB
Item Reporting Period Last period
Opening balance of retained profits before
1,564,615,925.99 613,661,381.40
adjustments
Opening balance of retained profits after
1,564,615,925.99 613,661,381.40
adjustments
Add: Net profit attributable to owners of the
228,494,660.57 206,925,812.72
Company
Dividend of common stock payable 534,295,804.56 15,901,660.85
Closing retained profits 1,258,814,782.00 804,685,533.27
List of adjustment of opening retained profits:
1) RMB0.00yuan opening retained profits was affected by retrospective adjustment conducted according to the Accounting Standards
for Business Enterprises and relevant new regulations.
2) RMB0.00yuan opening retained profits was affected by changes on accounting policies.
3) RMB0.00 yuanopening retained profits was affected by correction of significant accounting errors.
4) RMB0.00yuan opening retained profits was affected by changes in combination scope arising from same control.
5) RMB0.00yuan opening retained profits was affected totally by other adjustments.
116
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
61. Revenues and Operating Costs
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 2,010,535,149.65 1,537,416,165.51 1,743,092,467.69 1,315,261,790.95
Other operations 13,390,433.19 9,515,614.34 12,578,459.75 7,720,769.75
Total 2,023,925,582.84 1,546,931,779.85 1,755,670,927.44 1,322,982,560.70
62. Business Tax and Surcharges
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 7,980,261.34 7,002,504.08
Education Surcharge 5,707,899.61 5,015,667.87
Property tax 3,045,704.60
Land use tax 2,621,884.53
Vehicles and vessels use tax 13,909.92
Stamp duty 1,016,936.24
Business tax 233,406.51
Embankment-protection fees 6.09
Total 20,386,602.33 12,251,578.46
Other notes: the five increased tax items are reclassified from administration expenses in accordance with the No. 22 stipulation of
Finance & Accounting [2016].
63. Sale Expenses
Unit: RMB
Item Reporting Period Same period of last year
Transport fees 31,103,632.14 26,988,943.15
Salary 30,517,319.21 23,124,058.32
Business propagandize fee 3,408,430.38 5,771,832.24
Business travel charges 5,183,499.37 3,730,926.88
Sales promotion fee& dealer meeting
7,656,851.44 8,919,049.44
expense
Street light project maintenance fee 40,600.00
Others 3,782,261.15 4,676,397.38
117
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total 81,651,993.69 73,251,807.41
64. Administration Expenses
Unit: RMB
Item Reporting Period Same period of last year
Employee’s remuneration 41,767,426.90 25,133,604.07
Depreciation charge 9,552,900.65 9,506,297.68
Tax expenses 7,387,142.35
Office expenses 5,129,871.30 4,466,075.16
Amortization of intangible assets 2,157,808.85 2,100,959.51
R&D expenses 5,467,714.83 3,198,358.61
Testing expense 1,046,717.25 680,292.67
Others 33,668,381.82 29,645,097.89
Total 98,790,821.60 82,117,827.94
65. Financial Expenses
Unit: RMB
Item Reporting Period Same period of last year
Interest expenses
Less: interest income 15,609,163.27 6,489,563.72
Exchange gains and losses 6,502,463.05 -556,267.25
Others 1,990,792.86 600,077.93
Total -7,115,907.36 -6,445,753.04
Other notes:
66. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
I. Bad debt loss 10,677,806.99 14,692,768.91
II. Inventory falling price loss 13,381,912.36 21,160,604.92
Total 24,059,719.35 35,853,373.83
67. Gains and Losses from Changes in Fair Value
Naught
118
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1,543,965.79 -19,640.12
accounted by equity method
Investment income received from disposal of
financial assets measured by fair value and the
261,818.10
changes be included in the current profits and
losses during holding period
Investment income received from holding of
6,560,422.50 10,950,922.50
available-for-sale financial assets
Investment income received from financial
6,404,893.95 2,659,136.99
products
Others -500,000.22 -131,489.70
Total 14,009,282.02 13,720,747.77
69. Other Income
Naught
70. Non-operating Gains
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Total gains from disposal of
20,253.97
non-current assets
Including: Gains from disposal
20,253.97
of fixed assets
Government subsidies 3,869,949.96 505,099.96 3,869,949.96
Others 2,152,445.92 1,049,662.65 2,152,445.92
Total 6,022,395.88 1,575,016.58 6,022,395.88
Government subsidies recorded into current profits and losses
Unit: RMB
Whether
subsidies Special Related to
Distribution Distribution Reporting Same period
Item Nature influence the subsidy or assets/related
entity reason Period of last year
current not income
profits and
119
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
losses or not
Due to
engaged in
special
industry that
the state
Production encouraged
line of 50 and
million supported, Related to
Subsidy No No 77,499.96 77,499.96
energy-savin gained assets
g fluorescent subsidy
lamp (obtaining in
line with the
law and the
regulations of
national
policy)
Special funds Subsidy from
for export R&D
enterprises Technical Related to
Award No No 26,000.00 69,000.00
exploiting the updating and income
international transformatio
market n, etc.
Subsidy from
Award for
R&D
adopting
Technical Related to
international Award No No 150,000.00
updating and income
standard
transformatio
products
n, etc.
Chancheng
Subsidy from
District
R&D
Economy and
Technical Related to
Science Award No No 300,000.00 66,000.00
updating and income
Promotion
transformatio
Bureau Talent
n, etc.
Subsidy
Subsidy from
R&D
Support fund
Technical Related to
for import Award No No 3,249,240.00
updating and income
and export
transformatio
n, etc.
120
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Subsidy from
Project grants
R&D
from
Technical Related to
National Award No No 10,000.00
updating and income
Spark
transformatio
Program
n, etc.
Subsidy from
R&D
Governmenta Technical Related to
Award No No 20,000.00
l reward fund updating and income
transformatio
n, etc.
The
Subsidy from
development
R&D
of science
Technical Related to
and Award No No 93,600.00
updating and income
technology
transformatio
plan project
n, etc.
funds
Subsidy from
R&D
Other odd
Technical Related to
government Award No No 187,210.00 49,000.00
updating and income
subsidies
transformatio
n, etc.
Total -- -- -- -- -- 3,869,949.96 505,099.96 --
71. Non-operating Expenses
Unit: RMB
Recorded in the amount of the
Item Reporting Period Same period of last year
non-recurring gains and losses
Loss on disposal of non-current
4,255,164.43 223,092.25 4,255,164.43
assets
Including: Loss on disposal of
4,255,164.43 223,092.25 4,255,164.43
fixed assets
Outward donation 2,000.00 2,000.00
The inventory scrap loss 3,403,353.00
Lawsuit compensation 100,000.00
Others 512,609.26 1,190,611.69 512,609.26
121
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total 4,769,773.69 4,917,056.94 4,769,773.69
72. Income Tax Expense
(1) Lists of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 39,780,075.57 44,968,418.65
Deferred income tax expense 2,817,425.78 -5,542,441.36
Total 42,597,501.35 39,425,977.29
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Total profits 274,482,477.59
Current income tax expense accounted by tax and relevant
41,055,651.79
regulations
Influence of different tax rate suitable to subsidiary 3,120,459.39
Influence of income tax before adjustment -362,951.59
Influence of non taxable income -1,215,658.24
Income tax expense 42,597,501.35
73. Other Comprehensive Income
For details, please refer to Notes on major items in consolidated financial statements of the Company, 57.
74. Information of Cash Flow Statement
(1) Other Cash Received Relevant to Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Deposit interest 17,037,947.97 5,465,229.02
Income from insurance compensation 132,451.15 2,217,602.70
Guaranteed income -3,637,333.34 2,428,184.00
Property and rental income 1,737,139.33 1,058,343.21
Income from subsidy 5,010,204.36 939,625.32
122
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Income from waste 5,756,171.75 1,910,274.50
Others 2,857,134.88 1,038,449.92
Total 28,893,716.10 15,057,708.67
(2) Other Cash Paid Relevant to Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Transport fees 50,931,038.88 32,535,287.92
Donations, punishment, lawsuit
63,859.62 12,680,691.76
compensation
Advertising expense 10,719,132.28 9,850,522.41
Audit fees, attorney fees, appraisal cost
7,686,184.18 6,382,707.08
and detect cost
Business office expenses 7,272,319.87 4,324,091.36
The spare parts, maintenance, and service
6,530,959.82 1,076,002.69
charge
Margin 2,955,498.60 864,301.00
Business travel charges 7,085,185.69 4,541,469.24
Energy-saving promotion fee 368,987.65
Street light project construction and
1,378,623.48 1,677,736.31
maintenance
Land rent and management fee 3,301,887.73 3,311,454.39
Trademark fee& patent fee 1,396,336.23 442,693.00
Others 8,568,952.86 4,121,304.08
Total 107,889,979.24 82,177,248.89
(3) Other Cash Received Relevant to Investment Activities
Naught
(4) Other Cash Paid Relevant to Investment Activity
Unit: RMB
Item Reporting Period Same period of last year
Others 39,878.12
The future foreign exchange settlement
7,500,000.00
guarantee deposit
123
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total 7,539,878.12
(5) Other Cash Received Relevant to Financing Activities
Naught
(6) Other Cash Paid Relevant to Financing Activities
Naught
75. 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 231,884,976.24 206,612,262.26
Add: Provision for impairment of assets 24,059,719.35 35,853,373.83
Depreciation of fixed assets, of oil-gas
36,399,142.47 37,519,048.12
assets, of productive biological assets
Amortization of intangible assets 2,157,808.85 2,100,959.51
Long-term unamortized expenses 1,647,573.52 84,671.95
Losses on disposal of fixed assets, intangible
assets and other long-term assets (gains: 166,326.42 -20,253.97
negative)
Loss on retirement of fixed assets (gains:
4,088,838.01 223,092.25
negative)
Financial cost (gains: negative) -956,368.36
Investment loss (gains: negative) -14,009,282.02 -13,720,747.77
Decrease in deferred income tax assets
2,817,425.78 -5,535,752.11
(gains: negative)
Increase in deferred income tax liabilities
-6,689.25
(“-” means decrease)
Decrease in inventory (gains: negative) 17,780,154.35 84,829,939.85
Decrease in accounts receivable from
-214,104,001.05 -161,829,594.02
operating activities (gains: negative)
Increase in payables from operating -123,951,869.14 106,474,364.77
124
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
activities (decrease: negative)
Net cash flows generated from operating
-31,063,187.22 291,628,307.06
activities
2. Significant investing and financing
activities without involvement of cash -- --
receipts and payments
3. Change of cash and cash equivalent: -- --
Closing balance of cash 815,038,019.29 780,593,190.58
Less: Opening balance of cash 1,479,283,642.54 933,546,108.37
Net increase in cash and cash equivalents -664,245,623.25 -152,952,917.79
(2) Net Cash Paid of Obtaining the Subsidiary
Naught
(3) Net Cash Receive from Disposal of the Subsidiary
Naught
(4) Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 815,038,019.29 1,479,283,642.54
Including: Cash on hand 53,479.90 13,058.91
Bank deposit on demand 806,670,784.99 1,477,005,924.93
Other monetary funds on demand 8,313,754.40 2,264,658.70
III. Closing balance of cash and cash
815,038,019.29 1,479,283,642.54
equivalents
76. Note to Items in the Statement of Change in Equity
Note to name of "other" item adjusted closing balance and the adjustment amount:
Not applicable
77. Assets with Restricted Ownership and Right to Use
Naught
125
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
78. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Closing foreign currency Closing convert to RMB
Item Exchange rate
balance balance
Monetary capital -- -- 18,611,366.01
Including: USD 2,735,685.92 6.7744 18,532,630.69
EUR 10,159.92 7.7496 78,735.32
Account receivable -- -- 279,015,390.10
Including: USD 41,186,730.94 6.7744 279,015,390.10
Prepayments 1,416,270.15
Including: USD 209,062.08 6.7744 1,416,270.15
Deposit received 12,497,338.74
Including: USD 1,844,789.01 6.7744 12,497,338.74
Other notes:
(2) Note to Oversea Entities Including: for Significant Oversea Entities, Shall Disclose Main Operating
Place, Recording Currency and Selection Basis, if there Are Changes into Recording Currency, Shall Also
Disclose the Reason.
□ Applicable √ Not applicable
79. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of arbitrage to disclose:
Not applicable
80. Other
Not applicable
VIII. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Reporting Period
Naught
126
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(2) Combination Cost and Goodwill
Naught
(3) The Identifiable Assets and Liabilities of Acquiree at Purchase Date
Naught
(4) The Profit or Loss from Equity Held by the Date before Acquisition in Accordance with the Fair Value
Measured Again
Whether there is a transaction that through multiple transaction step by step to realize enterprises merger and gaining the control
during the Reporting Period
□ Yes √ No
(5) The Explanations on the Situation in which the Merger Price Cannot Be determined Rationally at the
Date of Acquisition or the End of the Period of Merger and Explanations on the Fair Value of the
Acquiree’s Recognizable Assets and Liabilities
Naught
(6) Other Notes
Naught
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Naught
(2) Combination Cost
Naught
(3) The Book Value of the Assets and Liabilities of the Combined Party at Combining Date
Naught
3. Counter Purchase
Naught
127
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
4. The Disposal of Subsidiary
Whether there is a single disposal of the investment to subsidiary and lost control
□ Yes √ No
Whether there are multiple transactions step by step dispose the investment to subsidiary and lost control in Reporting Period
□ Yes √ No
5. Other Reasons for the Changes in Combination Scope
Note to reasons for the changes in combination scope (Newly established subsidiary and subsidiary of liquidation) and relevant
information:
Naught
6. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) The Structure of the Enterprise Group
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Foshan
Chansheng Production and Newly
Foshan Foshan 100.00%
Electronic Ballast sales established
Co., Ltd.
Foshan Lighting
Lamps & Production and Newly
Foshan Foshan 100.00%
Components Co., sales established
Ltd.
Guangdong
Fozhao New
Production and Newly
Light Sources Foshan Foshan 100.00%
sales established
Technology Co.,
Ltd.
Foshan
Chanchang Production and Newly
Foshan Foshan 100.00%
Electric sales established
Appliance
128
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(Gaoming) Co.,
Ltd.
Foshan Taimei
Production and Newly
Times Lamps and Foshan Foshan 70.00%
sales established
Lanterns Co., Ltd.
Foshan Electrical
& Lighting Production and Newly
Xinxiang) Xinxiang) 100.00%
(Xinxiang) Co., sales established
Ltd.
Guangdong
Newly
Fozhao Leasing Foshan Foshan Finance lease 100.00%
established
Co., Ltd.
Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% Purchase
sales
Manufacturing
Co., Ltd.
FSL Zhida
Electric Production and Newly
Foshan Foshan 51.00%
Technology Co., sales established
Ltd.
(2) Significant Not Wholly Owned Subsidiary
Unit: RMB
The profits and losses Declaring dividends Balance of minority
Shareholding proportion
Name arbitrate to the minority distribute to minority shareholder at closing
of minority shareholder
shareholders shareholder period
Foshan Taimei Times
Lamps and Lanterns Co., 30.00% 602,673.03 5,630,109.21
Ltd.
FSL Zhida Electric
49.00% 2,787,642.64 12,768,272.90
Technology Co., Ltd.
(3) The Main Financial Information of Significant Not Wholly Owned Subsidiary
Unit: RMB
Closing balance Opening balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
129
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Foshan
Taimei
Times 67,603, 9,341,04 76,944,3 58,177,3 58,177,3 66,911,9 7,126,97 74,038,9 57,280,8 57,280,8
Lamps and 322.46 4.99 67.45 36.75 36.75 91.61 9.81 71.42 50.82 50.82
Lanterns
Co., Ltd.
FSL Zhida
Electric 93,769, 7,765,83 101,535, 60,386,0 60,386,0 38,927,7 13,176.7 38,940,9 3,480,45 3,480,45
Technolog 706.82 5.11 541.93 05.40 05.40 48.34 0 25.04 5.13 5.13
y Co., Ltd.
Unit: RMB
Reporting period The same period of last year
Cash flow Cash flow
Total Total
Name Operation from Operation from
Net profit consolidated Net profit consolidated
revenue operating revenue operating
income income
activities activities
Foshan
Taimei Times
82,641,917.3 23,327,544.4 51,763,010.9
Lamps and 2,008,910.10 2,008,910.10 1,570,356.09 1,570,356.09 301,174.27
2 9 4
Lanterns Co.,
Ltd.
FSL Zhida
Electric 66,773,802.1
5,689,066.62 5,689,066.62 -3,415,460.17
Technology 5
Co., Ltd.
(4) Significant Restrictions of Using Enterprise Group Assets and Paying Off Enterprise Group Debt
Naught
(5) Provide Financial Support or Other Support for Structure Entities Incorporate 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) Explanations on Changes of Owner’s Equity in the Subsidiary
Naught
130
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(2) The Effects of Transactions on Minority Equity and Owner’s Equity Attributable to the Parent
Company
Naught
3. Equity in Joint Venture Arrangement or Associated Enterprise
(1) List of Significant Joint Ventures or Associated Enterprises
Naught
(2) The Main Financial Information of Significant Joint Ventures
Naught
(3) The Main Financial Information of Significant Associated Enterprises
Naught
(4) The Summarized Financial Information of Unimportant Joint Ventures and Associated Enterprises
Unit: RMB
Closing balance/amount incurred in the Opening balance/amount incurred in last
current period period
Joint venture: -- --
The total of following items according to the
-- --
shareholding proportions
Associated enterprise: -- --
The total of following items according to the
-- --
shareholding proportions
Total investment book value 209,858,507.98 210,394,932.69
The total of following items according to the
-- --
shareholding proportions
--Net profits 1,543,965.79 432,767.03
--Other comprehensive income 21,831,908.42
--Total comprehensive income 1,543,965.79 26,159,605.45
(5) Explanations on Great Limitation of the Ability to Transfer Funds to the Company by Joint Ventures
or Associated Enterprises
Naught
131
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(6) Excess Loss Incurred in Joint Ventures or Associated Enterprises
Naught
(7) The Unrecognized Commitment Related to the Investment of Joint Ventures
Naught
(8) The Contingent Liabilities Related to the Investment of Joint Ventures or Associated Enterprises
Naught
4. Significant Joint Operation
Naught
5. Equity of Structure Entity Not Including in the Scope of Consolidated Financial Statements
Naught
6. Other
Naught
X. The Risk Related Financial Instruments
The financial instruments of the Company included: equity investment, 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
132
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of the
Company. The financial department through supervising the balance of the cash and securities can be convert to
cash at any time and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficient
cash to pay the liabilities under the case of all reasonable prediction, Each financial liability of the Company was
estimated due within 1 year.
III. Market Risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the
change of market price, including: exchange rate risk, interest rate risk and other price risk.
1. Exchange Rate Risk
Exchange rate risk was referred to the possible loss due to changes of exchange rate in the financial activities that
economic agents held or used the foreign exchange. The Company’s export business was settled by USD which
avoided exchange risk the Company faced in transaction.
2. Interest Rate Risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due
to the change of market price. There was no bank loan in the Company, thus no RMB benchmark interest rate
changes
3. Other Price Risk
N/A
XI. The Disclosure of the Fair Value
1. Closing Fair Value of Assets and Liabilities Calculated by Fair Value
Unit: RMB
Fair value at the end of the reporting period
Item First level Second level Third level
Total
Fair value measurement Fair value measurement Fair value measurement
I. Consistent fair value
-- -- -- --
measurement
(II) Available-for-sale
1,454,989,886.20 1,454,989,886.20
financial assets
(1) Equity tool investment 1,454,989,886.20 1,454,989,886.20
Total assets of consistent
1,454,989,886.20 1,454,989,886.20
fair value measurement
II. Inconsistent fair value
-- -- -- --
measurement
133
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
1
The recognition judgment of the fair value measurement items at level 1 was the stock price on the balance sheet date
3. Consistent and Inconsistent Fair value Measurement Items at Level 2, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
Naught
4. Consistent and Inconsistent Fair Value Measurement Items at Level 3, Valuation Techniques Adopted,
the Qualitative and Quantitative Information of Important Parameters
Naught
5. Consistent Fair Value Measurement Items at Level 3, the Adjustment Information of the Opening and
Closing Book Value, and the Sensitivity Analysis of Unobservable Parameters
Naught
6. Consistent Fair Value Measurement Items, Conversion between All Levels during the Reporting Period,
the Reasons for Conversion and Policies at the Time of Determination of Conversion
Naught
7. Change and Change Reason of Valuation Techniques in the Reporting Period
Naught
8. Particulars about the Fair Value of the Financial Assets and Financial Liabilities Not Measured at Fair
Value
Naught
9. Other
Naught
XII. Related Party and Related Transaction
1. Information Related to Parent Company of the Company
Proportion of share Proportion of voting
Registration Nature of
Name of parent company Registered capital held by parent rights owned by
place business
company against the parent company
134
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Company (%) against the Company
(%)
Hong Kong Wah Shing
Hong Kong / / 13.47% 13.47%
Holding Company Limited
Shenzhen Rising Investment
Shenzhen Investment RMB120,000,000 5.12% 5.12%
Development Co., Ltd.
Guangdong Electronics
Sales &
Information Industry Group Guangzhou RMB462,000,000 4.74% 4.74%
Production
Ltd.
Rising Investment
Hong Kong / / 1.82% 1.82%
Development Co., Ltd.
Guangdong Rising Finance
Zhuhai Investment RMB1,393,000,000 0.54% 0.54%
Holding Co., Ltd.
25.70% 25.70%
Notes: Information on the parent company:
September 9, 2015, the Company’s original first majority shareholder OSRAM Holding Company Limited signed
Equity Transfer Agreement with Guangdong Electronics Information Industry Group Co., Ltd. (Hereinafter
referred to as "Electronics Group”) Germany OSRAM Company Limited transfer its 100% share equity to
Electronics Group. The relevant transaction was completed on December 4, 2015. Electronics Group became only
controlling shareholder of OSRAM Holding (Renamed as Hong Kong Wah Shing Holding Company Limited
(hereinafter referred to as “Hong Kong Wah Shing Holding”) and indirectly became the first majority shareholder
of the Company.
The first majority shareholder of the Company, Hong Kong Wah Shing Holding Co., Ltd. was the wholly owned
subsidiary of Electronics Group, and Electronics Group, Shenzhen Rising Investment Development Co., Ltd.
( Hereinafter referred to as " Shenzhen Rising " ), Guangdong Rising Finance Holding Co., Ltd. ( Hereinafter
referred to as GD Rising Finance) and Rising Investment Development Co., Ltd. ( Hereinafter referred to as "
Rising Investment" ) were the wholly owned subsidiaries of Guangdong Rising Assets Management Co., Ltd. In
line with the relevant stipulation of Corporation Law and Rules on Listed Companies Acquisition, Electronics
Group, Shenzhen Rising and Rising Investment were persons acting in concert. As of June 30, 2017, the aforesaid
persons acting in concert holding total A, B share of the Company 000 shares, 000 % of total share equity of the
Company. Guangdong Rising Assets Management Co., Ltd. became the actual controller of the Company.
The final controller of the Company is Guangdong Rising Assets Management Co., Ltd. (GRAM)
2. Subsidiaries of the Company
For more details, please refer to Notes IX. Equity in other entities 1. Equity in subsidiary.
3. Information on the Joint Ventures and Associated Enterprises of the Company
The details of significant joint venture and associated enterprise of the Company, please refer to Notes IX. Equity in other entities 3.
Equity in the joint venture arrangement or associated enterprise
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Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
4. Information on Other Related Parties of the Company
Name Relationship
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. Company controlled by related natural person
Hangzhou Times Lighting and Electrical Co., Ltd. Company controlled by related natural person
Prosperity Electrical (China) Co., Ltd. Company controlled by related natural person
Prosperity (Xinxiang) Electro-optic Machinery Co., Ltd. Company controlled by related natural person
Prosperity (Xinxiang) Lighting Machinery Co., Ltd. Company controlled by related natural person
Foshan Nation Star Optoelectronics Co. Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology Holding Co., Ltd. Under same actual controller
Henan Rising High-Tech Investment Co., Ltd. Under same actual controller
Guangdong Rising Finance Co., Ltd. Under same actual controller
MTM Semiconductor Equipment Co., Ltd. Under same actual controller
Guangdong HYB New Energy Co., Ltd. Under same actual controller
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service (Unit: Ten Thousand Yuan)
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Related-party Content Reporting Period
credit credit or not year
Prosperity Lamps
Purchase of
and Components 670,457.93 2,000,000.00 No 1,205,832.30
materials
Ltd.
Prosperity Electrical Purchase of
-32,104.28 6,000,000.00 No 4,670,025.04
(China) Co., Ltd. materials
Hangzhou Times
Purchase of
Lighting and 1,138,676.40 3,000,000.00 No 978,074.43
materials
Electrical Co., Ltd.
Foshan Nation Star
Purchase of
Optoelectronics 38,972,909.25 200,000,000.00 No 50,935,351.13
materials
Co., Ltd.
Guangdong
Fenghua Advanced Purchase of
4,100,354.77 9,000,000.00 No 2,950,368.03
Technology Holding materials
Co., Ltd.
136
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Guangdong HYB
Purchase of
New Energy Co., 933,432.24 No
materials
Ltd.
MTM
Purchase of
Semiconductor 164,400.00 2,000,000.00 No
equipment
Equipment Co., Ltd.
Information of sales of goods and provision of labor service
Unit: RMB
Related-party Content Reporting Period Same period of last year
Prosperity Lamps and
Sale of products 14,820,551.42 13,828,671.26
Components Ltd.
Prosperity (Hangzhou) Lighting
Sale of products 38,649.58 63,364.11
and Electrical Co., Ltd.
Prosperity Electrical (China)
Sale of products 177,652.13 127,799.81
Co., Ltd.
Foshan Nation Star
Sale of products 3,353.85 139,981.43
Optoelectronics Co., Ltd.
Hangzhou Times Lighting and
Sale of products 25,852.99
Electrical Co., Ltd.
(2) Relating Commissioned Management/Contract and Entrusted Management/Outsourcing
Naught
(3) Information of Related Lease
The Company serves as the lessor:
Unit: RMB
Rental income confirmed in the Rental income confirmed in the
Name of leasee Type of leased assets
Report period same period of last year
The Company serves as the leasee:
Unit: RMB
Rental expense confirmed in the Rental expense confirmed in the
Name of lessor Type of leased assets
report period same period of last year
Guangdong Electronics
Information Industry Group Vehicles 24,500.00
Ltd.
137
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(4) Related-party Guarantee
Naught
(5) Borrowing and Lending of Related Parties
Naught
(6) Related Party Asset Transfer and Debt Restructuring
Naught
(7) Rewards for the Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Chairman of the Board 0.00 0.00
Director & GM 700,000.00 496,125.00
Chairman of the Supervisor 0.00 0.00
Secretary of the Board 400,000.00 358,314.00
CFO 400,000.00 298,595.00
Others 2,671,500.00 2,099,970.00
Total 4,171,500.00 3,253,004.00
(8) Other Related-party Transactions
Naught
6. Receivables and Payables of Related Parties
(1) Receivables
Unit: RMB
Closing balance Opening balance
Name o f item Related-party
Book balance Bad debt provision Book balance Bad debt provision
Prosperity
(Hangzhou) Lighting
Accounts receivable 86,367.27 43,110.18 86,367.27 25,910.18
and Electrical Co.,
Ltd.
Prosperity Electrical
Accounts receivable 104,626.70 3,138.80 26,156.80 784.70
(China) Co., Ltd.
138
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Prosperity Lamps
Accounts receivable and Components 5,987,859.76 179,635.79 4,121,642.27 123,649.27
Ltd.
Henan Rising
Other accounts
High-tech 117,000.00 117,000.00 117,000.00 93,600.00
receivable
Investment Co., Ltd.
Guangdong
Other accounts Electronics
5,000.00 500.00 5,000.00 150.00
receivable Information Industry
Group Ltd.
MTM
Prepayment Semiconductor 164,400.00
Equipment Co., Ltd.
Prosperity Electrical
Prepayment 7,521.37 92,424.45
(China) Co., Ltd.
Guangdong Rising
Interest receivable 42,222.22
Finance Co., Ltd.
(2) Payables
Unit: RMB
Name o f item Related-party Closing book balance Opening book balance
Prosperity Lamps and
Accounts payable 608,772.61 331,774.70
Components Ltd.
Prosperity Electrical (China)
Accounts payable 366,125.94 1,286,052.41
Co., Ltd.
Foshan Nation Star
Accounts payable 18,377,867.72 19,840,379.88
Optoelectronics Co., Ltd.
Hangzhou Times Lighting and
Accounts payable 879,884.85 243,897.33
Electrical Co., Ltd.
Guangdong Fenghua Advanced
Accounts payable 2,038,015.43 2,492,269.85
Technology Holding Co., Ltd.
Guangdong HYB New Energy
Accounts payable 1,391,666.63
Co., Ltd.
Prosperity Lamps and
Other accounts payable 448,258.77
Components Ltd.
Prosperity Electrical (China)
Other accounts payable 100,000.00 100,000.00
Co., Ltd.
MTM Semiconductor
Other accounts payable 47,860.00 47,860.00
Equipment Co., Ltd.
139
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
7. Related Party Commitment
(1)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About avoidance of horizontal competition
Content: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that the business of Foshan Nation Star Optoelectronics Co., Ltd. that is in
competition with the business of the Company takes up only a small part in Nation Star’s total business, they shall
gradually reduce or eliminate the horizontal competition as planned through business integration or other ways or
arrangements within the coming 24 months.
Date of commitment making: 2015-12-04
Term of commitment: 24 months
Fulfillment: In execution
(2)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About avoidance of horizontal competition
Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made more commitments as follows to avoid horizontal competition with the Company: 1. They
shall conduct supervision and restraint on the production and operation activities of themselves and their relevant
enterprises so that besides the enterprise above that is in horizontal competition with the Company for now, if the
products or business of them or their relevant enterprises become the same with or similar to those of the
Company or its subsidiaries in the future, they shall take the following measures: (1) If the Company thinks
necessary, they and their relevant enterprises shall reduce and wholly transfer their relevant assets and business;
and (2) If the Company thinks necessary, it is given the priority to acquire first, by proper means, the relevant
assets and business of them and their relevant enterprises. 2. All the commitments made by them to eliminate or
avoid horizontal competition with the Company are also applicable to their directly or indirectly controlled
subsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s 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: 2015-12-04
Term of commitment: Long-standing
Fulfillment: In execution
(3)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About reduction and regulation of related-party transactions
Content: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that during their direct or indirect holding of the Company’s shares, they
shall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE, the Company’s Articles of
140
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
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: 2015-12-04
Term of commitment: Long-standing
Fulfillment: In execution
(4)
Commitment: commitments made in acquisition documents or shareholding alteration documents
Commitment maker: Controlling shareholder
Type of commitment: About independence
In order to ensure the independence of the Company in business, personnel, asset, organization and finance,
Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made the following commitments: 1. They will ensure the independence of the Company in
business: (1) They promise that the Company will have the assets, personnel, qualifications and capabilities for it
to operate independently as well as the ability of independent, sustainable operation in the market. (2) They
promise not to intervene in the Company’s business activities other than the execution of their rights as the
Company’s shareholders. (3) They promise that they and their related parties will not be engaged in business that
is substantially in competition with the Company’s business. And (4) They promise that they and their related
parties will try their best to reduce related-party transactions between them and the Company; for necessary and
unavoidable related-party transactions, they promise to operate fairly following the market-oriented principle and
at fair prices, and execute the transaction procedure and the duty of information disclosure pursuant to the
applicable laws, regulations and regulatory documents. 2.They will ensure the independence of the Company in
personnel: (1) They promise that the Company’s GM, deputy GMs, CFO, Company Secretary and other senior
management personnel will work only for and receive remuneration from the Company, not holding any positions
in them or their other controlled subsidiaries other than director and supervisor. (2) They promise the
Company’s absolute independence from their related parties in labor, human resource and salary management.
And (3) They promise to follow the legal procedure in their recommendation of directors, supervisors and senior
management personnel to the Company and not to hire or dismiss employees beyond the Company’s Board of
Directors and General Meeting. 3. They will ensure the independence and completeness of the Company in asset:
(1) They promise that the Company will have a production system, a auxiliary production system and supporting
facilities for its operation; legally have the ownership or use rights of the land, plants, machines, trademarks,
patents and non-patented technology in relation to its production and operation; and have independent systems for
the procurement of raw materials and the sale of its products. (2) They promise that the Company will have
independent and complete assets all under the Company’s control and independently owned and operated by the
Company. And (3) They promise that they and their other controlled subsidiaries will not illegally occupy the
141
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Company’s funds and assets in any way, or use the Company’s assets to provide guarantees for the debts of
themselves or their other controlled subsidiaries with. 4. They will ensure the independence of the Company in
organization: (1) They promise that the Company has a sound corporate governance structure as a joint-stock
company with an independent and complete organization structure. (2) They promise that the operational and
management organs within the Company will independently execute their functions according to laws, regulations
and the Company’s Articles of Association. 5. They will ensure the independence of the Company in finance: (1)
They promise that the Company will have an independent financial department and financial accounting system
with normative, independent financial accounting rules. (2) They promise that the Company will have
independent bank accounts and not share bank accounts with its related parties. (3) They promise that the
Company’s financial personnel do not hold concurrent positions in its related parties. (4) They promise that the
Company will independently pay its tax according to law. And (5) They promise that the Company can make
financial decisions independently and that they will not illegally intervene in the Company’s use of its funds.
Date of commitment making: 2015-12-04
Term of commitment: Long-standing
Fulfillment: In execution
8. Other
Naught
XIII. Share-based Payment
1. General Share-based Payment
□ Applicable √ Not applicable
2. Shared-based Payment Settled by Equity
□ Applicable √ Not applicable
3. Shared-based Payment Settled by Cash
□ Applicable √ Not applicable
4. Modification and Termination on Share-based Payment
Naught
5. Other
Naught
142
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
XIV. Commitments and Contingencies
1. Significant Commitments
Significant commitments at balance sheet date
Naught
2. Contingencies
(1) Significant Contingencies at Balance Sheet Date
Naught
(2) If the Company Has No Significant Contingency to Disclose, Relevant Explanations Should Also Be
Given
The company has no significant contingency to disclose.
3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusting Events
Naught
2. Profit Distribution
Naught
3. Sales Return
Naught
4. Notes of Other Events after Balance Sheet Date
Naught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
Naught
143
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
2. Debt Restructuring
Naught
3. Assets Replacement
Naught
4. Annuity Plan
Naught
5. Discontinued Operation
Naught
6. Segment Information
Naught
7. Other Important Transactions and Events that Have an Impact on Investors’ Decision-making
Naught
8. Other
Naught
XVII. Notes of Main Items in the Financial Statements of the Company
1. Accounts Receivable
(1) Accounts Receivable Classified by Category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Accounts receivable
10,062,3 10,062,3 10,064, 10,064,66
with significant 1.10% 100.00% 1.55% 100.00%
78.10 78.10 664.92 4.92
single amount for
144
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
which bad debt
provision separately
accrued
Accounts receivable
withdrawal of bad
902,068, 36,131,9 865,936,5 640,256 28,400,67 611,855,49
debt provision of by 98.90% 4.01% 98.45% 4.44%
469.45 43.21 26.24 ,170.33 3.43 6.90
credit risks
characteristics:
912,130, 46,194,3 865,936,5 650,320 38,465,33 611,855,49
Total 100.00% 5.06% 100.00% 5.91%
847.55 21.31 26.24 ,835.25 8.35 6.90
Accounts receivable with single significant amount and withdrawal bad debt provision separately at end of period
√ Applicable □ Not applicable
Unit: RMB
Accounts receivable Closing balance
(Unit) Accounts receivable Bad-debt provision Withdrawal proportion Reason for withdrawal
The debtor is not
qualified to continuously
Suzhou Mont Lighting produce for the time
10,062,378.10 10,062,378.10 100.00%
Co., Ltd. being for continuing
losses caused by the
scale and market.
Total 10,062,378.10 10,062,378.10 -- --
In the groups, accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Accounts receivable Bad-debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 838,284,736.17 25,148,542.09 3.00%
Subtotal of within 1 year 838,284,736.17 25,148,542.09 3.00%
1 to 2 years 16,064,941.39 1,606,494.14 10.00%
2 to 3 years 1,845,107.85 553,532.36 30.00%
Over 3 years 15,318,633.22 8,823,374.62 57.60%
3 to 4 years 11,531,150.17 5,765,575.08 50.00%
4 to 5 years 3,648,417.57 2,918,734.06 80.00%
Over 5 years 139,065.48 139,065.48 100.00%
Total 871,513,418.63 36,131,943.21 4.15%
Notes:
145
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicable
In the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Naught
(2) Accounts Receivable Withdraw, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB8,820,467.25yuan; the amount of the
reversed or collected part during the Reporting Period was of RMB0.00.
(3) Particulars about Other Accounts Receivable Actually Verified during the Reporting Period
Unit: RMB
Item Amount of verification
Beijing Senjiyuan Electronic Components Sales Center 339,032.24
Nanjing Weiyiming Photoelectric Technology Co., Ltd. 303,567.17
TEERA-MONGKOL INDUSTRY PUBLIC 213,202.93
Chenzhou Wangshengda Materials Co., Ltd. 99,999.82
Panjin Panfeng Hardware & Electric Materials Sales Co., Ltd. 17,018.73
2013 Finance Bureau 14,703.90
Other driblet small amount 103,959.50
Total 1,091,484.29
(4) Accounts Receivable of the Top 5 of the Closing Balance Collected According to the Arrears Party
Unit: RMB
Name of the entity Nature Closing balance Aging
No. 1 Loan 86,950,173.28 Within 1 year
No. 2 Loan 27,597,102.14 Within 1 year
No. 3 Loan 25,.078,424.52 Within 1 year
No. 4 Loan 17,190,715.74 Within 1 year
No. 5 Loan 14,046,026.43 1 to 2 years
Total 172,862,442.11
(5) Accounts Receivable Derecognized for the Transfer of Financial Assets
Naught
146
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(6) Amount of Assets and Liabilities Generated from the Transfer of Accounts Receivable and Continued
Involvement
Naught
2. Other Accounts Receivable
(1) Other Accounts Receivable Classified by Category
Unit: RMB
Closing balance Opening balance
Book balance Bad debt provision Book balance Bad debt provision
Category Withdra
Book
Proportio wal Proportio Withdrawal Book value
Amount Amount value Amount Amount
n proportio n proportion
n
Other accounts
receivable withdrawn
66,104,3 2,373,67 63,730,64 58,237, 1,522,852 56,714,849.
bad debt provision 99.56% 3.59% 99.50% 2.61%
23.42 4.97 8.45 702.22 .38 84
according to credit
risks characteristics
Other accounts
receivable with
insignificant single 295,120. 295,120. 295,120 295,120.0
0.44% 100.00% 0.50% 100.00%
amount for which 00 00 .00 0
bad debt provision
separately accrued
66,399,4 2,668,79 63,730,64 58,532, 1,817,972 56,714,849.
Total 100.00% 4.02% 100.00% 3.11%
43.42 4.97 8.45 822.22 .38 84
Other receivable with single significant amount and withdrawal bad debt provision separately at end of period：
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
Closing balance
Aging
Other accounts receivable Bad debt provision Withdrawal proportion
Subentry within 1 year
Within 1 year 31,298,666.50 938,959.99 3.00%
Subtotal of within 1 year 31,298,666.50 938,959.99 3.00%
1 to 2 years 1,916,881.38 191,688.14 10.00%
147
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
2 to 3 years 3,107,684.06 932,305.22 30.00%
Over 3 years 313,238.90 310,721.62 99.20%
3 to 4 years 2,233.32 1,116.66 50.00%
4 to 5 years 7,003.10 5,602.48 80.00%
Over 5 years 304,002.48 304,002.48 100.00%
Total 36,636,470.84 2,373,674.97 6.48%
Notes:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision
□ Applicable √ Not applicable
In the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) The Bad-debt Provision Withdrew, Reversed or Collected during the Reporting Period
The withdrawal amount of the bad debt provision during the Reporting Period was of RMB850,828.94yuan; the amount of the
reversed or collected part during the Reporting Period was of RMB0.00.
(3) Other Accounts Receivable Actually Verified during the Reporting Period
Unit: RMB
Item Amount of verification
Other driblet small amount 6.35
(4) Other Accounts Receivable Classified by Account Nature
Unit: RMB
Nature of accounts Closing book balance Opening book balance
Internal business group 29,762,972.58 45,581,148.85
VAT export tax refunds 15,120,172.36
Performance bond 2,805,428.94 1,959,752.60
Staff borrow and deposit 10,792,685.93 5,587,226.25
Water & electricity fees 870,716.06 936,834.08
Advance money for street light construction 3,777,672.16 2,523,547.23
Other 3,269,795.39 1,944,313.21
Total 66,399,443.42 58,532,822.22
(5) The Top Five Other Account Receivable Classified by Debtor at Period-end
Unit: RMB
148
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Proportion to the
Account-age at the total of closing Closing balance of
Name of unit Nature of accounts Closing balance
end of the period balance of other bad-debt provision
accounts receivable
VAT export tax
No. 1 15,120,172.36 Within 1 year 22.77% 453,605.17
refunds
Internal business
No. 2 10,852,345.81 Within 1 year 16.34%
group
Internal business
No. 3 6,125,510.62 1 to 2 years 9.23%
group
Internal business
No. 4 4,395,981.86 2 to 3 years 6.62%
group
Internal business
No. 5 4,026,908.74 Within 1 year 6.06%
group
Total -- 40,520,919.39 -- 61.03% 453,605.17
(6) Account Receivable Involving Government Subsidies
Naught
(7) Other Account Receivable Derecognized Due To the Transfer of Financial Assets
Naught
(8) Amount of Assets and Liabilities Generated from the Transfer of Other Accounts Receivable and
Continued Involvement
Naught
3. Long-term Equity Investment
Unit: RMB
Closing balance Opening balance
Item Impairment Impairment
Book balance Book value Book balance Book value
provision provision
Investment to the
507,957,289.76 24,360,000.00 483,597,289.76 507,957,289.76 24,360,000.00 483,597,289.76
subsidiary
Investment to
joint ventures and
209,858,507.98 209,858,507.98 210,394,932.69 210,394,932.69
associated
enterprises
149
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Total 717,815,797.74 24,360,000.00 693,455,797.74 718,352,222.45 24,360,000.00 693,992,222.45
(1) Investment to the Subsidiary
Unit: RMB
Withdrawn
Closing balance
impairment
Investee Opening balance Increase Decrease Closing balance of impairment
provision in the
provision
Reporting Period
Foshan Chansheng
Electronic Ballast 2,744,500.00 2,744,500.00
Co., Ltd.
Foshan Chanchang
Electric Appliance
82,507,350.00 82,507,350.00
(Gaoming) Co.,
Ltd.
Foshan Taimei
Times Lamps and 350,000.00 350,000.00
Lanterns Co., Ltd.
Nanjing Fozhao
Lighting
Components 72,000,000.00 72,000,000.00
Manufacturing
Co., Ltd.
Foshan Electrical
& Lighting
35,418,439.76 35,418,439.76
(Xinxiang) Co.,
Ltd.
Guangdong
Fozhao New Light
Sources 50,077,000.00 50,077,000.00
Technology Co.,
Ltd.
Guangdong
Fozhao Leasing 200,000,000.00 200,000,000.00
Co., Ltd.
Foshan Lighting
Lamps &
15,000,000.00 15,000,000.00
Components Co.,
Ltd.
FSL Zhida Electric 25,500,000.00 25,500,000.00
150
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Technology Co.,
Ltd.
Suzhou Mont
24,360,000.00 24,360,000.00 24,360,000.00
Lighting Co., Ltd.
Total 507,957,289.76 507,957,289.76 24,360,000.00
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Profit and Closing
loss on Adjustme Cash, balance
Additiona investmen nt of dividends Impairme for
The Opening Reduced Changes Closing
l ts other and nt impairme
investor balance investmen in other Others balance
investmen confirmed comprehe profits provision nt
ts equity
ts according nsive declared s provision
to equity income to issue s
law
I. Joint ventures
II. Associated enterprises
Qinghai
FSL
Lithium 29,836,24 1,286,376 31,122,62
Develop 6.62 .00 2.62
ment Co.,
Ltd.
Primatro
nix
180,558,6 257,589.7 2,080,390 178,735,8
(Nanho)
86.07 9 .50 85.36
Electron
ics Ltd.
210,394,9 1,543,965 2,080,390 209,858,5
Subtotal
32.69 .79 .50 07.98
210,394,9 1,543,965 2,080,390 209,858,5
Total
32.69 .79 .50 07.98
(3) Other Notes
Naught
151
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
4. Revenues and Operating Costs
Unit: RMB
Reporting Period Same period of last year
Item
Sales revenue Cost of sales Sales revenue Cost of sales
Main operations 1,932,419,061.23 1,513,940,853.47 1,734,702,749.77 1,312,995,991.44
Other operations 47,777,343.06 36,016,802.63 47,754,466.37 42,711,518.50
Total 1,980,196,404.29 1,549,957,656.10 1,782,457,216.14 1,355,707,509.94
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1,543,965.79 -19,640.12
accounted by equity method
Investment income received from disposal of
financial assets measured by fair value and
261,818.10
the changes be included in the current profits
and losses during holding period
Investment income received from holding of
6,560,422.50 10,950,922.50
available-for-sale financial assets
Investment income received from bank
5,299,088.41 2,659,136.99
financial products
Others -500,000.22 -131,489.70
Total 12,903,476.48 13,720,747.77
6. Other
Nought
XVIII. Supplementary Materials
1. Items and Amounts of Extraordinary Gains and Losses
√ Applicable □ Not applicable
Unit: RMB
Item Amount Explanation
Gains/losses on the disposal of non-current
-4,255,164.43
assets
Government subsidies recorded into the 3,869,949.96
152
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
current gains and losses (excluding the
government subsidies that are closely
relative to business and enjoyed in normed
way or quantitatively in accordance with the
national standards)
Other non-operating income and expenses
1,637,836.66
other than the above
Less: amount affected of income tax -57,390.05
Amount affected of minority equity -414.63
Total 1,310,426.87 --
Explain the reasons if the Company classifies an item as an extraordinary gain/loss according to the definition in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Extraordinary Gains and
Losses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item.
□ Applicable √ Not applicable
2. Return on Net Equity and Earnings Per Share
EPS（Yuan/share）
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to common
4.99% 0.1796 0.1796
shareholders of the Company
Net profit attributable to common
shareholders of the Company after
4.96% 0.1786 0.1786
deduction of non-recurring profit
and 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
153
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards, for Audit Data Adjusting Differences Had Been Foreign Audited, Should Indicate
the Name of the Foreign Institutions
Naught
4. Other
Naught
154
Foshan Electrical and Lighting Co., Ltd. Semi-Annual Report 2017
Section XI Documents Available for Reference
Investors and relevant departments may refer to the following materials placed in the Board
Secretariat in the office building of the Company:
1. Financial statements signed and sealed by the legal representative, the accounting head for the
Report and the manager of the finance department; and
2. All originals of the Company’s documents and announcements disclosed on China Securities
Journal, Securities Times, and Ta Kung Pao in the Reporting Period.
The Board of Directors
Foshan Electrical and Lighting Co., Ltd
August 23, 2017
155
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