Foshan Electrical and Lighting Co. Ltd.The semi-annual financial report 2023
1Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2023
Financial Statements
I Auditor’s Report
Whether the interim report has been audited
□Yes □ No
The interim report of the Company has not been audited.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co. Ltd.
30 June 2023
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 2518177714.99 2484508907.43
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 81882834.67 261541896.45
Derivative financial assets
Notes receivable 811254925.34 821537774.07
Accounts receivable 2347099724.92 1920770941.76
Accounts receivable financing 444845917.62 569868831.79
Prepayments 41451120.26 45526548.93
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 150403234.75 32902865.98
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 1646526195.36 2031637401.87
Contract assets 5153358.98 5466875.07
Assets held for sale 17147339.84 17147339.84
Current portion of non-current assets
Other current assets 173015911.64 79438576.89
Total current assets 8236958278.37 8270347960.08
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
1Long-term equity investments 183117824.19 181931792.66
Investments in other equity
801753621.52864191346.40
instruments
Other non-current financial assets
Investment property 43366716.49 44611882.44
Fixed assets 3365628092.29 3508094282.41
Construction in progress 1377403873.06 1282780335.14
Productive living assets
Oil and gas assets
Right-of-use assets 9832756.11 13047727.73
Intangible assets 337814725.13 340166852.37
Development costs
Goodwill 421831593.46 421831593.46
Long-term prepaid expense 171879033.97 190126627.91
Deferred income tax assets 94138960.42 90186993.64
Other non-current assets 76218347.75 81543512.85
Total non-current assets 6882985544.39 7018512947.01
Total assets 15119943822.76 15288860907.09
Current liabilities:
Short-term borrowings 190926526.02 157715359.35
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities 23741475.00 4679000.00
Derivative financial liabilities
Notes payable 1853353460.65 1975743568.71
Accounts payable 2437263015.38 2513177458.14
Advances from customers 196200.00 2532442.44
Contract liabilities 131700995.68 125143161.61
Financial assets sold under repurchase
agreements
Customer deposits and interbank
deposits
Payables for acting trading of securities
Payables for underwriting of securities
Employee benefits payable 162300069.89 173034152.18
Taxes payable 78233220.74 64295552.10
Other payables 645736648.53 440230081.05
Including: Interest payable
Dividends payable 134915110.77 15646.07
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
63473244.5265540510.67
liabilities
Other current liabilities 136138329.46 100192681.00
Total current liabilities 5723063185.87 5622283967.25
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 493362857.84 747931023.71
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 6477932.48 7055542.18
Long-term payables
Long-term employee benefits payable
Provisions 9518319.01 9587043.31
2Deferred income 80860487.74 97078233.43
Deferred income tax liabilities 196099462.78 204371264.18
Other non-current liabilities 206307.09 308780.61
Total non-current liabilities 786525366.94 1066331887.42
Total liabilities 6509588552.81 6688615854.67
Owners’ equity:
Share capital 1361994647.00 1361994647.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 7245971.54 7245971.54
Less: Treasury stock 82165144.15 82165144.15
Other comprehensive income 447201368.35 498141018.70
Specific reserve
Surplus reserves 91359027.15 91359027.15
General reserve
Retained earnings 3330471596.34 3296435828.50
Total equity attributable to owners of the
5156107466.235173011348.74
Company as the parent
Non-controlling interests 3454247803.72 3427233703.68
Total owners’ equity 8610355269.95 8600245052.42
Total liabilities and owners’ equity 15119943822.76 15288860907.09
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2023 1 January 2023
Current assets:
Monetary assets 681210754.40 616301656.56
Held-for-trading financial assets 200565014.22
Derivative financial assets
Notes receivable 110657146.53 130473889.36
Accounts receivable 1086975621.84 914875676.00
Accounts receivable financing 60666671.99 14127710.41
Prepayments 7737747.01 13129004.94
Other receivables 978598589.43 511036345.72
Including: Interest receivable
Dividends receivable
Inventories 306898828.61 475047674.61
Contract assets 5153358.98 5466875.07
Assets held for sale
Current portion of non-current assets
Other current assets 105373508.94 9844377.83
Total current assets 3343272227.73 2890868224.72
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 2506749062.60 2505563031.07
Investments in other equity
761675052.72823131485.48
instruments
Other non-current financial assets
Investment property 39800117.43 40982686.40
3Fixed assets 555297116.18 548743031.51
Construction in progress 220291866.58 187318584.50
Productive living assets
Oil and gas assets
Right-of-use assets 5813183.28 6963639.23
Intangible assets 95701146.70 94698330.35
Development costs
Goodwill
Long-term prepaid expense 30215256.11 37118287.24
Deferred income tax assets 37984595.01 31202848.92
Other non-current assets 45361377.95 48873160.34
Total non-current assets 4298888774.56 4324595085.04
Total assets 7642161002.29 7215463309.76
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities 23741475.00 4679000.00
Derivative financial liabilities
Notes payable 795588488.59 826037810.34
Accounts payable 1285429617.40 788288700.08
Advances from customers 2285714.30
Contract liabilities 73386563.67 47498783.11
Employee benefits payable 60341858.15 49182531.44
Taxes payable 30073622.90 9700312.91
Other payables 417929824.40 202509326.09
Including: Interest payable
Dividends payable 134899464.70
Liabilities directly associated with
assets held for sale
Current portion of non-current
1427782.661881117.79
liabilities
Other current liabilities 74912121.36 88215663.53
Total current liabilities 2762831354.13 2020278959.59
Non-current liabilities:
Long-term borrowings 182912120.75
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 4385400.62 5082521.44
Long-term payables
Long-term employee benefits payable
Provisions
Deferred income
Deferred income tax liabilities 78774921.62 88165954.92
Other non-current liabilities
Total non-current liabilities 83160322.24 276160597.11
Total liabilities 2845991676.37 2296439556.70
Owners’ equity:
Share capital 1361994647.00 1361994647.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 7426635.62 7426635.62
Less: Treasury stock 82165144.15 82165144.15
Other comprehensive income 446550316.94 498788284.79
Specific reserve
Surplus reserves 322663096.39 322663096.39
Retained earnings 2739699774.12 2810316233.41
4Total owners’ equity 4796169325.92 4919023753.06
Total liabilities and owners’ equity 7642161002.29 7215463309.76
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
3. Consolidated Income Statement
Unit: RMB
Item H1 2023 H1 2022
1. Revenue 4566062729.02 4433331393.42
Including: Operating revenue 4566062729.02 4433331393.42
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 4299771626.28 4165508040.62
Including: Cost of sales 3733474828.88 3654061368.03
Interest expense
Handling charge and
commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 37443299.13 25534415.81
Selling expense 131921130.00 111269248.57
Administrative expense 200946085.42 186307739.44
R&D expense 226148905.26 212572992.98
Finance costs -30162622.41 -24237724.21
Including: Interest expense 14255244.44 7068335.84
Interest income 24520047.73 13000154.06
Add: Other income 27389992.05 40797290.95
Return on investment (“-” for loss) 22449570.63 19613744.86
Including: Share of profit or loss
1186031.53650457.40
of joint ventures and associates
Income from the derecognition
of financial assets at amortized cost (“-”
for loss)
Exchange gain (“-” for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-22153522.56-10766595.97
for loss)
Credit impairment loss (“-” for
-18947421.03-10246248.56
loss)
Asset impairment loss (“-” for
-16390888.73-23341049.45
loss)
Asset disposal income (“-” for
110475.5282362.19
loss)
3. Operating profit (“-” for loss) 258749308.62 283962856.82
Add: Non-operating income 2440914.48 8990018.61
Less: Non-operating expense 4780570.32 7994166.62
4. Profit before tax (“-” for loss) 256409652.78 284958708.81
Less: Income tax expense 31304364.49 41412077.91
55. Net profit (“-” for net loss) 225105288.29 243546630.90
5.1 By operating continuity
5.1.1 Net profit from continuing
225105288.29243546630.90
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
shareholders of the Company as the 168935232.54 163528019.78
parent (“-” for net loss)
5.2.1 Net profit attributable to non-
56170055.7580018611.12
controlling interests (“-” for net loss)
6. Other comprehensive income net of
-49800869.38-128025149.83
tax
Attributable to owners of the
-50939650.35-128036703.73
Company as the parent
6.1 Items that will not be
-52237967.85-128132332.34
reclassified to profit or loss
6.1.1 Changes caused by
remeasurements on defined benefit
schemes
6.1.2 Other comprehensive
income that will not be reclassified to
profit or loss under the equity method
6.1.3 Changes in the fair value of
-52237967.85-128132332.34
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
6.1.5 Other
6.2 Items that will be reclassified to
1298317.5095628.61
profit or loss
6.2.1 Other comprehensive
income that will be reclassified to profit
or loss under the equity method
6.2.2 Changes in the fair value of
investments in other debt obligations
6.2.3 Other comprehensive
income arising from the reclassification
of financial assets
6.2.4 Credit impairment
allowance for investments in other debt
obligations
6.2.5 Reserve for cash flow
hedges
6.2.6 Differences arising from the
translation of foreign currency- 1298317.50 95628.61
denominated financial statements
6.2.7 Other
Attributable to non-controlling
1138780.9711553.90
interests
7. Total comprehensive income 175304418.91 115521481.07
Attributable to owners of the
117995582.1935491316.05
Company as the parent
Attributable to non-controlling
57308836.7280030165.02
interests
8. Earnings per share
8.1 Basic earnings per share 0.1252 0.1212
8.2 Diluted earnings per share 0.1240 0.1201
Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before
the combinations was RMB0.00 with the amount for the same period of last year being RMB0.00.Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
64. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Operating revenue 1767119810.22 1809179992.86
Less: Cost of sales 1475930147.80 1476364107.19
Taxes and surcharges 14118151.89 10450725.11
Selling expense 76993414.88 60671112.08
Administrative expense 77700935.31 65659865.20
R&D expense 72152520.98 80982862.27
Finance costs -23728727.28 -11830352.67
Including: Interest expense 3685018.81 4427927.34
Interest income 7478589.21 3313721.07
Add: Other income 1095070.80 5635099.60
Return on investment (“-” for loss) 27748972.71 21542755.12
Including: Share of profit or loss
1186031.53650457.40
of joint ventures and associates
Income from the derecognition
of financial assets at amortized cost (“-”
for loss)
Net gain on exposure hedges (“-”
for loss)
Gain on changes in fair value (“-”
-23059475.00-10811400.00
for loss)
Credit impairment loss (“-” for
-9630073.47-9623686.25
loss)
Asset impairment loss (“-” for
-1814506.09-6552785.39
loss)
Asset disposal income (“-” for
loss)
2. Operating profit (“-” for loss) 68293355.59 127071656.76
Add: Non-operating income 36865.24 -667333.19
Less: Non-operating expense 745254.33 4998457.51
3. Profit before tax (“-” for loss) 67584966.50 121405866.06
Less: Income tax expense 3301961.09 15251135.30
4. Net profit (“-” for net loss) 64283005.41 106154730.76
4.1 Net profit from continuing
64283005.41106154730.76
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
-52237967.85-129543043.34
tax
5.1 Items that will not be reclassified
-52237967.85-129543043.34
to profit or loss
5.1.1 Changes caused by
remeasurements on defined benefit
schemes
5.1.2 Other comprehensive income
that will not be reclassified to profit or
loss under the equity method
5.1.3 Changes in the fair value of
-52237967.85-129543043.34
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
75.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for investments in other debt obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
5.2.7 Other
6. Total comprehensive income 12045037.56 -23388312.58
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities
3850932261.314073694274.24
and rendering of services
Net increase in customer deposits and
interbank deposits
Net increase in borrowings from the
central bank
Net increase in loans from other
financial institutions
Premiums received on original
insurance contracts
Net proceeds from reinsurance
Net increase in deposits and
investments of policy holders
Interest handling charges and
commissions received
Net increase in interbank loans obtained
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 100132103.39 145624893.13
Cash generated from other operating
141107593.13127521912.96
activities
Subtotal of cash generated from
4092171957.834346841080.33
operating activities
Payments for commodities and services 2663359134.35 3081521621.90
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans granted
Interest handling charges and
8commissions paid
Policy dividends paid
Cash paid to and for employees 687281073.20 732832071.44
Taxes paid 204166141.70 184736431.09
Cash used in other operating activities 149496551.38 170648464.89
Subtotal of cash used in operating
3704302900.634169738589.32
activities
Net cash generated from/used in
387869057.20177102491.01
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 190981292.12 502992240.66
Return on investment 22659407.23 21038833.14
Net proceeds from the disposal of fixed
assets intangible assets and other long- 1402000.00 232233.41
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
215042699.35524263307.21
investing activities
Payments for the acquisition of fixed
assets intangible assets and other long- 109147876.06 331071942.08
lived assets
Payments for investments 110000000.00 71695763.31
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 360759.99
Subtotal of cash used in investing
219508636.05402767705.39
activities
Net cash generated from/used in
-4465936.70121495601.82
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised 126598725.21 687436000.00
Cash generated from other financing
381437.7153126214.00
activities
Subtotal of cash generated from
126980162.92740562214.00
financing activities
Repayment of borrowings 323893000.00 342313038.15
Interest and dividends paid 160367407.65 159780554.62
Including: Dividends paid by
30294736.6824282863.70
subsidiaries to non-controlling interests
Cash used in other financing activities 2303428.02 1062094428.42
Subtotal of cash used in financing
486563835.671564188021.19
activities
Net cash generated from/used in
-359583672.75-823625807.19
financing activities
4. Effect of foreign exchange rates
4930576.6420245617.53
changes on cash and cash equivalents
5. Net increase in cash and cash
28750024.39-504782096.83
equivalents
Add: Cash and cash equivalents
1945971307.261940209052.92
beginning of the period
6. Cash and cash equivalents end of the
1974721331.651435426956.09
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
96. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2023 H1 2022
1. Cash flows from operating activities:
Proceeds from sale of commodities
1496145578.961647925557.33
and rendering of services
Tax rebates 53498627.75 66177691.70
Cash generated from other operating
33751986.6849023640.18
activities
Subtotal of cash generated from
1583396193.391763126889.21
operating activities
Payments for commodities and services 1035027746.06 1182528555.48
Cash paid to and for employees 232728601.56 279898010.00
Taxes paid 35941134.26 111471325.43
Cash used in other operating activities 56041082.96 63008054.83
Subtotal of cash used in operating
1359738564.841636905945.74
activities
Net cash generated from/used in
223657628.55126220943.47
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 100000000.00 492992240.66
Return on investment 27483617.76 23125665.53
Net proceeds from the disposal of fixed
assets intangible assets and other long- 42771.45
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
127483617.76516160677.64
investing activities
Payments for the acquisition of fixed
assets intangible assets and other long- 11143401.81 59178832.68
lived assets
Payments for investments 1166664444.95
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities
Subtotal of cash used in investing
11143401.811225843277.63
activities
Net cash generated from/used in
116340215.95-709682599.99
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised 382336000.00
Cash generated from other financing
activities
Subtotal of cash generated from
382336000.00
financing activities
Repayment of borrowings 178893000.00 197016000.00
Interest and dividends paid 119898677.90 135641014.35
Cash used in other financing activities
Subtotal of cash used in financing
298791677.90332657014.35
activities
Net cash generated from/used in
-298791677.9049678985.65
financing activities
4. Effect of foreign exchange rates
1541521.9515401360.65
changes on cash and cash equivalents
1 05. Net increase in cash and cash
42747688.55-518381310.22
equivalents
Add: Cash and cash equivalents
461062144.20861826014.29
beginning of the period
6. Cash and cash equivalents end of the
503809832.75343444704.07
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
7. Consolidated Statements of Changes in Owners’ Equity
H1 2023
Unit: RMB
H1 2023
Equity attributable to owners of the Company as the parent
Other equity Oth Non
Tota
instruments Less er -
l
Item Shar Capi : com Spe Surp Gen Reta
cont
Pref Perp own
e tal Trea preh cific lus eral ined Oth Subt rolli
erre etua ers’
capi Oth rese sury ensi rese rese rese earn er otal ng
d l equi
tal er rves stoc ve rve rves rve ings inter
shar bon ty
k inco ests
es ds
me
1332513486
8249891
1. Balance as 61 72 96 73 27 00
16514359
at the end of 994 45 490 066 280 346
141002
the period of 64 971 57 09 73 83
prior year 4.1 18. 7.17.0 .54 5.5 5.7 5.8 1.6
5705
02651
Add: -- - -
Adjustment 101
545447
for change in 77
accounting 747 747 032 9.1
policy .02 .02 .17 9
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
2. Balance as 13 32 51 34 8682 498 91
at the 61 72 96 73 27 00165 14 359
beginning of 994 45 435 011 233 245
141002
the 64 971 82 34 70 05
Reporting 4.1 18. 7.17.0 .54 8.5 8.7 3.6 2.4
Period 5 70 5
00482
3. Increase/ - 34 - 27 10
decrease in 50 035 16 014 110the period (“- 939 76 903 10 21” for 65 7.8 88 0.0 7.5
decrease)
0.342.543
1151
-
16811757175
50
3.1 Total 93 99 308 30
939
comprehensi 52 55 83 44
ve income 65 32. 82. 6.7 18.
0.3
5419291
5
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
----
13413430165
3.3 Profit 89 89 294 19
distribution 94 94 73 42
64.64.6.601.
7070838
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
----
3.3.313413430165
Appropriatio
898929419
n to owners
(or 94 94 73 42
shareholders) 64. 64. 6.6 01.
7070838
3.3.4
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
123.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
1333513486
4. Balance as 82 447 9161 72 30 56 54 10
at the end of 165 20 359
99445471107247355
the 14 13 02
Reporting 64 971 59 46 80 264.1 68. 7.1
Period 7.0 .54 6.3 6.2 3.7 9.95 35 5
04325
H1 2022
Unit: RMB
H1 2022
Equity attributable to owners of the Company as the parent No
Other equity Oth n-
instruments Less er con Total
Item Shar Capi : com Spe Surp Gen Reta
trol owne
Pref Perp
e tal Trea preh cific lus eral ined Oth Subt lin rs’
erre etua
capi Oth rese sury ensi rese rese rese earn er otal g equit
d l
tal er rves stoc ve rve rves rve ings int y
shar bon
k inco ere
es ds
me sts
3
1310317054
250982741105
1. Balance as 99 51 11 36 360 98 35 798
at the end of 346 158 864 108 74
087433499
the period of 15 61 07 77 1
prior year 74. 54. 47. 47.74.0 4.1 6.8 2.5 17
5408965
08645.
21
1 3Add: 16
Adjustment 18 18 2 351
for change in 918 918 52 70.5
accounting .22 .22 .2 1
policy 9
Adjustment
for
correction of
previous
error
Adjustment
for business
combination
under
common
control
Other
adjustments
3
2. Balance as 13 10 31 70 54250 982 741 105
at the 99 51 11 36 360 98 35 798
beginning of 346 158 882 127 75
087433851
the 15 61 99 69 7
Reporting 74. 54. 47. 18.24.0 4.1 5.0 0.7 42
Period 54 08 96 6
08867.
50
--55
----
3. Increase/ 10 129 16 7 -37 168 228 604
decrease in 43 54 16 47 156
351439526the period (“- 912 57 506 3 075” for 50 57 39 9664 79. 26 01 896
decrease) 7.0 30. 27. 97.
2.6275.2.33.95
0399237
472
80
-
163350
128115
3.1 Total 52 491 30
03521
comprehensi 80 31 1
481.
ve income 67 19. 6.0 65
03.07
785.0
73
2
--
---
1015-
3.2 Capital 37 168 604
4317151
increased 351 43 26
912098709
and reduced 50 57 96
by owners 64 11 8117.0 30. 97.
2.66.66.62
03937
42
---
3.2.1-37168126
Ordinary 48
3514325
shares 25
increased by 50 57 82948
owners 7.0 30. 74..60
03979
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
1 4payments
included in
owners’
equity
--
-
1015-
478
3917151
3.2.401
086098709
Other 14
6911811
22.
4.06.66.62
58
42
-
--24
-
1341342
159
3.3 Profit 89 89 82
182
distribution 94 94 8
328.
64.64.63
40
7070.7
0
3.3.1
Appropriatio
n to surplus
reserves
3.3.2
Appropriatio
n to general
reserve
-
--24
3.3.3-1341342
Appropriatio 159
898982
n to owners 182
(or 94 94 8 328.shareholders) 64. 64. 63 40
7070.7
0
3.3.4
Other
-
3.4100100
Transfers 91
91
within 72
owners’ 72 24.equity 24. 19
19
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
1 5benefit
schemes
transferred to
retained
earnings
3.4.5-
Other 100100
comprehensi 91
91
ve income 72
transferred to 72 24.retained 24. 19
earnings 19
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
3
13325459
4. Balance as 82 754 13761 72 41 19 9 901
at the end of 165 03 08
9944542862150912
the 14 35 36
Reporting 64 971 77 42 4 6154.1 26. 50.Period 7.0 .54 4.3 5.4 72 4.31
51659
0598.
82
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2023
Unit: RMB
H1 2023
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as 1361 2810 4919
7426821649873226
at the end of 994 316 023
635.514488286309
the period of 647.0 233.4 753.0
prior year 62 .15 4.79 6.39 0 1 6
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
1 6adjustments
2. Balance as
at the 1361 2810 4919
7426821649873226
beginning of 994 316 023
635.514488286309
the 647.0 233.4 753.0
Reporting 62 .15 4.79 6.39 0 1 6
Period
3. Increase/ - - -
decrease in
522370611228the period (“-” for 7967 6459 5442
decrease) .85 .29 7.14
-
3.1 Total 6428 1204
5223
comprehensi 3005 5037
ve income 7967 .41 .56.85
3.2 Capital
increased
and reduced
by owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
3.2.4
Other
--
3.3 Profit 1348 1348
distribution 9946 9946
4.704.70
3.3.1
Appropriatio
n to surplus
reserves
3.3.2--
Appropriatio
13481348
n to owners
(or 9946 9946
shareholders) 4.70 4.70
3.3.3
Other
3.4
Transfers
within
owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
173.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
4. Balance as 1361 2739 4796
at the end of 7426 8216 4465 3226
994699169
the 635. 5144 5031 6309
Reporting 647.0 774.1 325.962 .15 6.94 6.39
Period 0 2 2
H1 2022
Unit: RMB
H1 2022
Other equity instruments Other
Capita Less: compr Specif Surplu Retain Total
Item Share Prefer Perpet l Treasu ehensi ic s ed owner
Other
capital red ual Other reserv ry ve reserv reserv earnin s’
shares bonds es stock incom e es gs equity
e
1. Balance as 1399 2738 5635
2256250698467413
at the end of 346 229 592
8665008795765334
the period of 154.0 003.2 062.4
prior year .93 4.54 5.83 7.96 0 7 5
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
1 8Other
adjustments
2. Balance as
at the 1399 2738 56352256 2506 9846 7413
beginning of 346 229 592
8665008795765334
the 154.0 003.2 062.4
Reporting .93 4.54 5.83 7.96 0 7 5
Period
3. Increase/ - - - - - -
decrease in 7217
373548251684230444074728the period (“- 2490” for 1507 948. 3573 6026 9183 2133.25
decrease) .00 60 0.39 7.53 0.02 2.51
--
3.1 Total 1061
12952338
comprehensi 5473
ve income 4304 83120.76
3.34.58
3.2 Capital - - - - -
increased 3735 4825 1684 4407 3145
and reduced 1507 948. 3573 9183 3355
by owners .00 60 0.39 0.02 5.23
3.2.1----
Ordinary
3735482516841262
shares
increased by 1507 948. 3573 5827
owners .00 60 0.39 4.79
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
--
3.2.431453145
Other 3355 3355
5.235.23
--
3.3 Profit 1348 1348
distribution 9946 9946
4.704.70
3.3.1
Appropriatio
n to surplus
reserves
3.3.2--
Appropriatio
13481348
n to owners
(or 9946 9946
shareholders) 4.70 4.70
3.3.3
Other
3.4-
Transfers 1009
1009
within 1722
owners’ 1722 4.19
equity 4.19
3.4.1
Increase in
1 9capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3 Loss
offset by
surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other -
comprehensi 1009
1009
ve income 1722
transferred to 1722 4.19
retained 4.19
earnings
3.4.6
Other
3.5
Specific
reserve
3.5.1
Increase in
the period
3.5.2 Used
in the period
3.6 Other
4. Balance as 1361 2810 5162
at the end of 1774 8216 7542 3005
994401770
the 2717 5144 3549 6151
Reporting 647.0 493.5 729.9.33 .15 8.30 7.94
Period 0 2 4
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Liang Yuefei
III Company profile
(I) Basic information
Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as “the Company”) a joint-stock limited
company jointly founded by Foshan Electrical and Lighting Company Nanhai Wuzhuang Color Glazed Brick
Field and Foshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval of
YGS (1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock
System of Guangdong Province and the Economic System Reform Commission of Guangdong Province is an
enterprise with its shares held by both the corporate and the natural persons. As approved by China Securities
Regulatory Commission with Document (1993) No. 33 the Company publicly issued 19.3 million shares of
social public shares (A shares) to the public in October 1993 and was listed in Shenzhen Stock Exchange for
2 0trade on 23 November 1993. The Company was approved to issue 50000000 B shares on 23 July 1995. And
as approved to change into a foreign-invested stock limited company on 26 August 1996 by (1996) WJMZEHZ
No. 466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s
Republic of China. On 11 December 2000 as approved by China Securities Regulatory Commission with ZJGS
Zi [2000] No. 175 Document the Company additionally issued 55000000 A shares. At approved by the
Shareholders’ General Meeting 2006 2007 2008 2014 and 2017 the Company implemented the plan of
capitalization of capital reserve after the transfer the registered capital of the Company has increased to
RMB1399346154.00. The Company held the 26th Meeting of the 9th Board of Directors on 14 January 2022
where the Proposal on Cancelling Some Shares of the Company's Repurchase Special Securities Account was
deliberated and adopted. The repurchased 13 million A shares were used for the equity incentive plan. The
remaining 18952995 A shares and the repurchased 18398512 B shares totalling 37351507 shares were all
deregistered. On 8 February 2022 it was confirmed by Shenzhen Branch of CSDC that the number of
repurchased public shares canceled this time was 37351507 accounting for 2.67% of the total share capital of
the Company before the cancellation including 18952995 A shares and 18398512 B shares. Upon the
cancellation of the shares the total share capital of the Company was changed from 1399346154 shares to
1361994647 shares. The Company's registered capital was changed to RMB1361994647.00.
Credibility code of the Company: 91440000190352575W.Legal representative: Mr. Wu Shenghui
Address: No. 64 Fenjiang North Road Foshan Guangdong Province
Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products
electro technical products vehicle lamp products epitaxy and chip products LED packaging and component
products trade and application productsetc.The business term of the Company is long-term which was calculated from the date of issuance of License of
Business Corporation.The Financial Report was approved and authorized for issue by the Board of Directors on 29 August 2023.(II) Consolidation scope of financial statements
The consolidation scope of the financial statement during the Reporting Period including the Company and FSL
Chanchang Optoelectronics Co. Ltd. ( referred to as “Chanchang Company”) Foshan Taimei Times Lamps and
Lanterns Co. Ltd. ( referred to as “Taimei Company”) Nanjing Fozhao Lighting Components Co. Ltd.( referred to as “Nanjing Fozhao”) FSL (Xinxiang) Lighting Co. Ltd. ( referred to as “Xinxiang Company”)
Foshan Fozhao Zhicheng Technology Co. Ltd. ( referred to as “Zhicheng Technology Company”) FSL Zhida
Electric Technology Co. Ltd ( referred to as “Zhida Company”) FSL LIGHTING GMBH (referred to as “FSLEurope Company”) Foshan Hortilite Optoelectronics Co.Ltd. (referred to as “Hortilite Company”) Fozhao
(Hainan) Technology Co. Ltd. (referred to as “Hainan Technology”) Foshan Kelian New Energy Technology
Co. Ltd. (referred to as “Foshan Kelian”) Nanning Liaowang Auto Lamp Co. Ltd. (referred to as “NanningLiaowang”) Foshan NationStar Optoelectronics Co. Ltd. (referred to as “NationStar Optoelectronics”) and
Foshan Sigma Venture Capital Co. Ltd. (referred to as “Sigma”) in total 13 subsidiaries and Liuzhou Guige
Lighting Technology Co. Ltd. (referred to as “Liuzhou Lighting”) Liuzhou Guige Foreshine Technology Co.Ltd. (referred to as “Liuzhou Foreshine”) Chongqing Guinuo Lighting Technology Co. Ltd. (referred to as
“Chongqing Guinuo”) Qingdao Guige Lighting Technology Co. Ltd. (referred to as “Qingdao Lighting”)
Indonesia Liaowang Auto Lamp Co. Ltd. (referred to as “Indonesia Liaowang”) Foshan NationStar Electronic
Manufacturing Co. Ltd. (referred to as “Guoxing Electronic”) Foshan NationStar Semiconductor Co. Ltd.(referred to as “NationStar Semiconductor”) Nanyang Baoli Vanadium Industry Co. Ltd. (referred to as
2 1“Nanyang Baoli”) Guangdong New Electronic Information Ltd. (referred to as “New Electronic”) NationStar
Optoelectronics (Germany) Co. Ltd. (referred to as “Germany NationStar”) and Guangdong Fenghua
Semiconductor Technology Co. Ltd. (referred to as “Fenghua Semiconductor”)in total 11 sub-subsidiary.Given that Nanyang Baoli Vanadium Industry Co. Ltd. a subsidiary of NationStar Optoelectronics is in a state
of non-continuous operations the Interim Report 2023 of Nanyang Baoli for the current period was formulated
at fair value or costs whichever was lower.Compared with the beginning of the year the consolidated scope of financial statements in this period does not
change. For details see note IX "equity in other entities".IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company have been prepared in accordance with the "Accounting Standards for
Business Enterprises - Basic Standards" and various specific accounting standards guidelines for the
application of accounting standards for business enterprises interpretations of accounting standards for business
enterprises and other relevant regulations (hereinafter collectively referred to as "Accounting Standards for
Business Enterprises") issued by the Ministry of Finance as well as the relevant provisions of "No. 15 of the
Rules Governing the Preparation of Information Disclosures by Companies Offering Securities to the Public -
General Provisions on Financial Reporting" of the China Securities Regulatory Commission.
2. Going Concern
The Company has the ability to continue as a going concern for at least 12 months from the end of the
Reporting Period and there are no material matters affecting its ability to continue as a going concern.V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The following significant accounting policies and accounting estimates of the Company have been formulated
in accordance with ASBEs. Operations not mentioned are treated in accordance with the relevant accounting
policies in the ASBE.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the Accounting Standards for
Business Enterprises which factually and completely present the Company’s and the consolidated financial
positions business results and cash flows as well as other relevant information.
2. Fiscal Year
A fiscal year starts on January 1st and ends on December 31st according to the Gregorian calendar.
2 23. Operating Cycle
An operating cycle for the Company is 12 months which is also the classification criterion for the liquidity of
its assets and liabilities.
4. Recording Currency
Renminbi is the recording currency for the statements of the Company and the financial statements are listed
and presented by Renminbi.
5. Accounting Methods for Business Combination Involving Enterprises under and not under the Same
Control
1. Business combination under the same control
In case of a long-term equity investment resulting from a business combination under the same control if the
acquirer pays cash transfers non-cash assets assumes debts as merger consideration the share of the Company's
equity of the acquiree obtained on combination date in the carrying value of the financial statements of the
ultimate controlling party is deemed as an initial investment cost of long-term equity investments. If the acquirer
issues equity instruments as consideration for a combination the total par value of the shares issued is treated as
equity. The difference between the initial investment cost of a long-term equity investment and the carrying
amount of the consideration for consolidation (or the total nominal value of shares issued) shall be adjusted to
capital surplus; if capital surplus is not sufficient to offset the difference retained earnings shall be adjusted.
2. Business combination not involving entities under the same control
The Company measured the paid assets as the consideration of business combination and liabilities happened or
undertaken by fair value. The difference between fair value and its book value shall be included into the current
losses and gains. The Company distributed combined cost on the purchasing date.The difference of the combination cost greater than the fair value of the identifiable net assets of the acquiree
acquired is recognized as goodwill; the difference of the combination cost less than the fair value of the
identifiable net assets of the acquiree acquired is included into current losses and gains.As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to
the assets which have been recognized by the acquiree) if the economic benefits brought by them are likely to
flow into the Company and their fair values can be measured reliably they shall be separately recognized and
measured in light of their fair values; intangible asset whose fair value can be measured reliably shall be
separately recognized as an intangible asset and shall be measured in light of its fair value; As for the liabilities
other than contingent liabilities acquired from the acquiree if the performance of the relevant obligations is likely
to result in any out-flow of economic benefits from the Company and their fair values can be measured reliably
they shall be separately recognized and measured in light of their fair values; As for the contingent liabilities of
the acquiree if their fair values can be measured reliably they shall separately recognized as liabilities and shall
be measured in light of their fair values.
6. Preparation Methods for Consolidated Financial Statements
1. Scope of consolidated financial statements
The Company includes all subsidiaries (including separate entities controlled by the Company) in the scope of the
consolidated financial statements including enterprises controlled by the Company divisible portions of investees
and structured entities.
2. Unification of accounting policies balance sheet dates and accounting periods of parent and subsidiary
companies
If the accounting policies and accounting period adopted by the subsidiaries are inconsistent with those of the
Company necessary adjustments are made in accordance with the accounting policies and accounting period of
the Company when preparing the consolidated financial statements.
2 33. Offsetting items in the consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its subsidiaries
and have been offset by internal transactions that occurred between the Company and its subsidiaries and between
subsidiaries. The share of owners' equity of subsidiaries that do not belong to the Company is presented as
minority interests in the consolidated balance sheet under the item of shareholders' equity as "minority interests".Long-term equity investments held by subsidiaries are deemed as the Company's treasury stock and presented as a
deduction from shareholders' equity in the consolidated balance sheet under the item "Less: treasury stock".
4. Accounting treatment of the acquisition of subsidiaries through consolidation
For subsidiaries acquired through a business combination under common control the assets liabilities operating
results and cash flows are included in the consolidated financial statements from the beginning of the period of
consolidation as if the business combination had occurred at the time the ultimate controlling party began to
exercise control; for subsidiaries acquired through a business combination not under the same control the fair
value of the identifiable net assets on the acquisition date is used as the basis for preparing the consolidated
financial statements. The financial statements are adjusted based on the fair value of the identifiable net assets on
the acquisition date.
5. Accounting treatment of disposal of subsidiaries
If a long-term equity investment in a subsidiary is partially disposed of without loss of control the difference
between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the
long-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date is
adjusted to capital surplus (capital surplus or share premium) in the consolidated financial statements and retained
earnings is adjusted if the capital surplus is not sufficient to cover the reduction.If the control over the investee is lost due to the disposal of part of equity investments the residual equity are re-
measured at fair value on the date of loss of control. The aggregate of the consideration obtained by disposing of
the equity and the fair value of the remaining equity less the portion of the net assets of the subsidiary that has
been measured as calculated at the original shareholding proportion from the acquisition date or combination
date is recognized in profit and loss of the current period on investments in which the control is lost and goodwill
shall be offset. Other comprehensive income related to the equity investments in the former subsidiary shall be
included in the return on investment for the current period when the Company lost the control.
7. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
1. Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not reached
through separate entities are classified as joint operations. Separate entities refer to entities with separate
identifiable financial structures including separate legal entities and entities that do not have legal entity status but
are recognized by law. The joint arrangements reaching through separate entities are usually classified as joint
ventures. Where changes in relevant facts and circumstances result in changes in the rights and obligations of the
joint venture parties in the joint venture arrangement the joint venture parties shall reassess the classification of
the joint venture arrangement.
2. Accounting treatment of joint operations
As a participant in a joint operation the Company recognizes the following items related to its share of interest in
the joint operations. It accounts for them following the relevant Accounting Standards for Business Enterprises:
Recognition of assets or liabilities held separately and recognition of assets or liabilities held jointly on a share
basis; recognition of revenue from the sale of the share of output from the joint operation to which it is entitled;
recognition of revenue from the joint operation arising from the sale of output on a share basis; and recognition of
expenses incurred separately and recognition of expenses incurred in the joint operation on a share basis.If the Company is a participant in a joint operation that does not enjoy joint control and it owns the underlying
assets of the joint operation and assumes the liabilities related to the joint operation the accounting treatment of
the joint operation partner shall be referred to; otherwise the accounting treatment shall be carried out in
accordance with the relevant enterprise accounting standards.
3. Accounting treatment of joint ventures
2 4If the Company is a joint venture partner it shall account for its investment in joint ventures following the
provisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity Investments; if the
Company is a non-joint venture partner it shall account for its investment in such joint ventures based on the
extent of its influence on such joint ventures.
8. Recognition Criteria of Cash and Cash Equivalents
Cash as determined by the Company in preparing the statement of cash flows represents the Company's cash on
hand and deposits that are readily available for disbursement. Cash equivalents identified in the preparation of the
statement of cash flows are investments that are held for a short period of time are highly liquid are readily
convertible to known amounts of cash and are subject to an insignificant risk of change in value.
9. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
1. Conversion of foreign currency business
Foreign currency shall be recognized by employing systematic and reasonable methods and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date the monetary items in foreign currencies are translated at the spot
exchange rate. Exchange differences arising from the difference between the spot rate on that date and the spot
rate at initial recognition or on the previous balance sheet date are recognized in profit or loss except for
exchange differences on special borrowings in foreign currencies that qualify for capitalization which are
capitalized in the period in which they are capitalized and charged to the cost of the related assets. Non-monetary
items measured at historical costs in foreign currencies are still translated at the spot exchange rate on the
transaction date with the amount of standard currency for accounting unchanged. Non-monetary items measured
at fair value in foreign currencies are translated at the spot exchange rate on the date when the fair value is
determined. The difference between the amount of standard currency for accounting after translation and the
original amount shall be treated as a change in fair value (including exchange rate changes) and recognized in
current profit or loss or in other comprehensive income.
2. Conversion of foreign currency financial statements
If the Company's subsidiaries joint ventures and affiliated business use a different bookkeeping base currency
from the Company's they need to convert their foreign currency financial statements before conducting
accounting and preparing consolidated financial statements. The assets and liabilities in the balance sheet shall be
translated at the spot rate on the balance sheet date. All items of owners' equity except for "undistributed profit"
shall be translated at the spot exchange rate at the time of occurrence. Items under revenue and expenses in the
income statement are translated at the spot exchange rate on the transaction date. The exchange difference in
translating foreign operations arising from the translation are shown under other comprehensive income in the
owner's equity line in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchange
rate on the date of occurrence of the cash flows. The impact of exchange rate changes on cash is presented
separately in the cash flow statement. When an overseas operation is disposed of the foreign currency statement
translation difference related to the overseas operation is transferred to the current profit and loss of the disposal in
full or in proportion to the disposal of the overseas operation.
10. Financial Instruments
1. Classification and reclassification of financial instruments
Financial instruments refer to contracts that form the financial assets of a party and form financial liabilities or
equity instruments of other parties.
(1) Financial assets
The Company classifies financial assets as financial assets measured at amortized cost if they meet both of the
following conditions: a) The Company's business model of managing financial assets aims at obtaining
contractual cash flows; b) and as stipulated by term contract of the financial assets the cash flows generated on a
specific date are merely for the payment of principal or the interest from the unpaid principal.The Company classifies financial assets as financial assets at fair value through other comprehensive income if
they meet both of the following conditions: a) The Company's business model of managing the financial assets
aims at obtaining contractual cash flows as well as selling financial assets; b) and as stipulated by contract clauses
2 5of the financial assets the cash flows generated on a specific date are merely for the payment of principal or
interest from the unpaid principal.For instruments in non-business equity instruments the Company may irrevocably assign such investments as
financial assets (equity instruments) measured at fair value through other comprehensive income at initial
recognition. The assignment is made based on investments by item and the relevant investments meet the
definition of an equity instrument from the issuer's perspective.The financial assets measured at amortized cost and financial assets other than those measured at fair value
through other comprehensive income are classified by the Company as financial assets measured at fair value
through profit and loss for the current period. At initial recognition if the accounting mismatch can be eliminated
or reduced the Company shall designate the financial assets as financial assets measured at fair value through the
profit or loss for the current period.When the Company changes its business model for managing financial assets it will reclassify all affected
relevant financial assets as of the first day of the first reporting period following the change in business model
and the prospective application shall be adopted for accounting treatment. The previously recognized profits
losses (inclusive of impairment losses or profits) or interest shall not be traced and adjusted.
(2) Financial liabilities
Financial liabilities are classified into the following four categories when they are initially recognized: Financial
liabilities at fair value through current profit or loss; financial liabilities arising from the transfer of financial asset
not meeting the derecognition criteria or from the continuing involvement in the transferred asset; financial
guarantee contracts that do not fall within the categories above; financial liabilities measured at amortized cost.All financial liabilities are not reclassified.
2. Measurement of financial instruments
The Company's financial instruments are measured at fair value upon initial recognition. For financial assets or
liabilities measured at fair value through profit or loss relevant transaction expenses are directly included in the
profit or loss of the current period; for other categories of financial assets or liabilities relevant transaction
expenses are included in the initial recognition amount. For notes receivable and accounts receivable arising from
sales of goods or provision of service which do not include or consider the compositions of major assets the
Company takes the consideration expected to be received as the initial recognition amount. The follow-up
measurement of financial instruments depends on their categories:
(1) Financial assets
a) Financial assets are measured at the amortized cost. After initial recognition the effective interest method
measures such financial assets at amortized cost. Gains or losses arising from a financial asset measured at
amortized cost which does not form any hedging relationship are recorded in current profit or loss at the time of
derecognition reclassification amortization according to the effective interest method or recognition of
impairment.b) Financial assets are measured at fair value through profit and loss for the current period. After initial
recognition such financial assets (except for a portion of financial assets that are part of a hedging relationship)
are subsequently measured at fair value. The resulting gains or losses (including interest and dividend revenue)
are included in the profit or loss for the period.c) Investments in debt instruments are measured at fair value through other comprehensive income. After initial
recognition the financial assets are subsequently measured at fair value for this category. Interest impairment loss
or gain and exchange gain/loss calculated using the effective interest method are recorded in current profit or loss
other gains or losses are recorded in other comprehensive income. The accumulative gains or losses which are
previously included in other comprehensive income are transferred out from other comprehensive income and
included in current profit or loss upon derecognition.d) Investments in non-business equity instruments are designated as fair value through other comprehensive
income. After initial recognition the financial assets are subsequently measured at fair value for this category.Except for dividends received (except for the portion which forms part of investment cost recovered) which are
2 6recognized in profit or loss all other related gains and losses are recognized in other comprehensive income and
are not subsequently transferred to current profit or loss.
(2) Financial liabilities
a) Financial liabilities measured at fair value through profit and loss for the current period. These financial
liabilities include trading financial liabilities (including the derivative instruments belonging to financial liabilities)
and financial liabilities designated to be measured by the fair value and their changes are recorded in the current
profit or loss. After initial recognition such financial liabilities are subsequently measured at fair value and gains
or losses resulting from changes in the fair value of the financial liabilities held for trading (including interest
expense) are recognized in profit or loss except for a portion of financial assets that are part of a hedging
relationship. For financial liabilities designated as measured at fair value through profit or loss changes in fair
value arising from the change of the company's credit risk shall be included in other comprehensive income and
other changes in fair value are included in profit or loss for the current period. If the treatment made for the impact
of the changes in the financial liability's credit risk may cause or expand the accounting mismatch in profit or loss
the Company shall include all gains or losses of such financial liabilities in profit and loss for the current period.b) Financial liabilities measured at amortized cost. After initial recognition such financial liabilities are measured
at amortized cost using the effective interest method.
3. The Company's method for recognizing the fair value of financial instruments
For a financial instrument with an active market its fair value is determined by its quoted price in the active
market; for a financial instrument without an active market its fair value is determined by valuation techniques.Valuation techniques mainly include the market approach the income approach and the cost approach. Under
limited circumstances if the information used to determine fair value is insufficient or if the range of possible
estimates of fair value is wide and the cost represents the best estimate of fair value within that range the cost
may represent its appropriate estimate of fair value within that range of distribution. The Company uses all
information available after the initial recognition date about the investee's performance and operations to
determine whether the cost represents fair value.
4. Determination basis and measuring methods for transfer of financial assets and financial liabilities
(1) Financial assets
The Company's financial assets shall be derecognized when meeting any of the following conditions: a) The
contractual right to charge the cash flow of the financial assets is terminated; b) The financial assets have been
transferred and the Company has transferred almost all risks and remuneration of the financial assets ownership to
the transferee; and c) The financial assets have been transferred and the Company does neither transfer nor retain
almost all remuneration of the financial assets ownership but retain the control over the financial assets.The Company does neither transfer nor retain almost all remuneration of the financial assets ownership but retain
the control over the financial assets the relevant financial assets shall be continuously recognized according to the
extent of involving in the financial assets transferred and relevant liabilities shall be recognized accordingly.If the overall transfer of financial assets meets the conditions for derecognition the difference between the
following two amounts shall be recorded in profit and loss of the current period: a) The carrying value of the
transferred financial asset as of the date of derecognition; b) Sum of the consideration received for the transfer of
the financial asset and the portion of the cumulative amount of fair value changes previously recorded in other
comprehensive income that corresponds with the portion of the asset de-recognized (the transferred financial asset
is an investment in debt instruments at fair value through other comprehensive income).If a portion of the financial asset has been transferred and the transferred portion as a whole satisfies the
derecognition criteria the carrying value of the financial asset as a whole prior to its transfer is allocated between
the portion of the asset derecognized and the portion that remains recognized according to their relative fair value
as of the transfer date and the difference between the two amounts mentioned below is recorded in current profit
or loss: a) The carrying value of the derecognized portion; b) Sum of the consideration received for the
derecognition portion and the portion of the cumulative amount of fair value changes previously recorded in other
comprehensive income which corresponds with the derecognized portion (the transferred financial asset is an
investment in debt instruments at fair value through other comprehensive income).
2 7When the Company's investments in non-trading equity instruments designated as at fair value through other
comprehensive income are derecognized the accumulative gain or loss previously included in other
comprehensive income shall be transferred from other comprehensive income to retained earnings upon
derecognition.
(2) Financial liabilities
If current obligations of the financial liability (or part of the liability) have been released the Company shall
derecognize the financial liability (or the part of the liability).If a financial liability (or a portion thereof) is derecognized the Company includes the difference between the
book value and the consideration paid (inclusive of the transferred non-cash assets or the liabilities assumed) in
the profit or loss of the current period.
11. Notes Receivable
The determination methods and accounting methods of notes receivable are detailed in Note 12 Accounts
Receivable under this note.
12. Accounts Receivable
The Company's financial assets subject to impairment loss recognition are financial assets measured at amortized
cost investments in debt instruments measured at fair value through other comprehensive income and lease
receivables which mainly include notes receivable accounts receivable receivables financing other receivables
debt investments other debt investments and long-term receivables. In addition provision for impairment and
recognition of credit impairment losses should also be made for contract assets and certain financial guarantee
contracts in accordance with the accounting policies described in this section.
1. Determination and accounting methods of the expected credit losses of contract assets
The Company provides for impairment and recognises credit impairment losses for each of the above items on the
basis of expected credit losses in accordance with its applicable expected credit loss measurement method.Credit loss refers to the difference between all contractual cash flow receivable by the Company under contracts
which are discounted according to the original effective interest rate and all the cash flow expected to be received
namely the present value of all cash short. In particular for financial assets purchased or originated by the
Company that are credit impaired they should be discounted at the credit-adjusted effective interest rate of the
financial assets.The general approach to measuring expected credit losses is that the Company assesses at each balance sheet date
whether the credit risk of a financial asset (including other applicable items such as contract assets etc. the same
below) has increased significantly since initial recognition and if the credit risk has increased significantly since
initial recognition the Company measures the allowance for losses at an amount equal to the expected credit
losses over the entire life of the asset; if the credit risk has not increased significantly since initial recognition the
Company measures the allowance for losses at an amount equal to the expected credit losses over the next 12
months. The Company considers all reasonable and substantiated information including forward-looking
information in assessing expected credit losses.For financial instruments with low credit risk at the balance sheet date the Company assumes that the credit risk
has not increased significantly since initial recognition and elects to measure the allowance for losses at an
amount equal to the expected credit losses over the next 12 months.
2. Criteria for determining whether there has been a significant increase in credit risk since initial recognition
The credit risk of a financial asset increases significantly if the probability of default over the expected life of the
financial asset as at the balance sheet date is significantly higher than the probability of default over the expected
life of the financial asset as at initial recognition. Except in exceptional circumstances the Company uses the
change in the risk of default occurring within the next 12 months as a reasonable estimate of the change in the risk
of default occurring over the entire duration to determine whether there has been a significant increase in credit
risk since initial recognition.
3. Portfolio approach to assessing expected credit risk on a portfolio basis
2 8The Company evaluates credit risk for individual items of notes receivable accounts receivable and other
receivables that have significantly different credit risks with the following characteristics. For example
receivables from related parties; receivables that are in dispute with the other party or involved in litigation or
arbitration; and notes and accounts receivable for which there are clear indications that the debtor is likely to fail
to meet its repayment obligations.In addition to financial assets for which credit risk is assessed individually the Company classifies financial assets
into different groups based on common risk characteristics and assesses credit risk on a portfolio basis.
4. Accounting method for impairment of financial assets
To reflect changes in the credit risk of a financial instrument since the initial recognition the Company
remeasures the expected credit losses on each balance sheet date. The resulting increase or reversal of the
provision for losses shall be recognized as an impairment loss or gain in profit or loss and depending on the type
of financial instrument offset against the carrying amount of the financial asset presented in the balance sheet or
recorded as provisions (loan commitments or financial guarantee contracts) or recorded in other comprehensive
income (investments in debt obligations measured at fair value through other comprehensive income).
5. Recognition method for credit losses on financial assets
The Company accounts for financial assets measured at amortized cost (including receivables) financial assets
classified as at fair value through other comprehensive income (including receivables financing) and lease
receivables based on expected credit losses and recognizes impairment accounting and provision for losses.The Company assesses whether the credit risk of the relevant financial instruments has increased significantly
since the initial recognition on each balance sheet date divides the process of credit impairment of financial
instruments into three stages and applies different accounting treatments to the impairment of financial
instruments at different stages: (1) in the first stage if the credit risk of a financial instrument has not increased
significantly since the initial recognition the Company will measure the loss reserves according to the amount
equivalent to the expected credit losses in the next 12 months and calculate the interest revenue according to the
book balance (i.e. before deducting the provision for impairment) and the actual interest rate; (2) In the second
stage if the credit risk of a financial instrument has increased significantly since the initial recognition but no
credit impairment has occurred the Company will measure the loss reserves based on the expected credit loss
over the entire life of the financial instrument and calculates interest revenue based on the carrying amount of the
financial instrument and the effective interest rate; (3) In the third stage if credit impairment occurs after the
initial recognition the Company will measure the loss reserves based on the expected credit loss over the life of
the financial instrument and calculates interest revenue based on the amortized cost (carrying amount less
provision for impairment) and the effective interest rate.
(1) Method of the provision for losses on the measurement of financial instruments with lower credit risk
For financial instruments with lower credit risk on the balance sheet date the Company makes a direct assumption
that the credit risk of the instrument has not increased significantly since the initial recognition without comparing
it with the credit risk at the time of its initial recognition.If the financial instruments have low default risk the debtor's ability to meet its contractual cash flow obligations
in the short term is strong and even if adverse changes in economic conditions and business environment in the
longer term don't necessarily reduce the borrower's ability to meet its contractual cash flow obligations the
financial instruments are considered to have low credit risk.
(2) Receivables and contract assets with no significant financing component
For receivables or contract assets arising from transactions governed by Accounting Standard for Business
Enterprises No. 14 - Revenue that do not have a significant financing component the Company uses a simplified
approach whereby the allowance for losses is always measured on the basis of expected credit losses throughout
their lives.Depending on the nature of the financial instrument the Company assesses whether there is a significant increase
in credit risk on an individual financial asset or a portfolio of financial assets basis. The Company classifies notes
receivable and accounts receivable into certain portfolios based on credit risk characteristics and calculates
expected credit losses on a portfolio basis which is determined on the following basis:
2 9* Accounts Receivable with a Single Significant Amount and a Separate Provision for Expected Credit Losses
Judgment basis or amount criteria for Accrual method of expected credit losses that are individually significant
significant individual amounts and accrued
The impairment tests are conducted separately for accounts receivable
Accrual method of expected credit with individually significant amounts. If there is objective evidence of
losses that are individually significant impairment an impairment loss is recognized based on the difference
and accrued between the present value of future cash flows and their carrying amount
and an expected credit loss is recorded
* Accounts Receivable with Expected Credit Losses Provision Based on Credit Risk Portfolio
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
General lighting auto lamps and other
relevant business with the Company as Prepare the comparative list between aging of accounts
Business portfolio of the parent and the subsidiary Nanning receivable and expected credit loss rate over the entire life and
general lighting and auto Liaowang as the representative this calculate the expected credit loss by consulting historical
lamps portfolio takes the aging of accounts experience in credit losses combining current situation and
receivable as the credit risk prediction for future economic situation.characteristics
LED packaging components and other
Prepare the comparative list between aging of accounts
relevant business with the subsidiary
receivable and expected credit loss rate over the entire life and
Business portfolio of LED NationStar Optoelectronics as the
calculate the expected credit loss by consulting historical
packaging and components representative this portfolio takes the
experience in credit losses combining current situation and
aging of accounts receivable as the
prediction for future economic situation.credit risk characteristics
Internal business portfolio Related parties and internal transactions O ther methods
Accounts Receivable for which the Expected Credit Loss is Withdrawn by Credit Risk Characteristics
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
Portfolio 1 Bank acceptance bill Low credit risk with no provision for bad debts
Trade acceptance Prepare the comparative list between aging of accounts
receivable and expected credit loss rate over the entire life and
Portfolio 2 calculate the expected credit loss by consulting historical
experience in credit losses combining current situation and
prediction for future economic situation.The aging analyses are based on their date of entry into the accounts.Among portfolios expected credit losses accrued by aging analysis:
Accrual rate of expected credit losses
Aging
Business portfolio of general lighting and Business portfolio of LED packaging and
auto lamps components
Within 1 year (including 1 year) 3% 2%
1 to 2 years 10% 10%
2 to 3 years 30% 30%
3 03 to 4 years 50% 50%
4 to 5 years 80% 80%
Over 5 years 100% 100%
* Accounts Receivable with an Insignificant Single Amount but for which the Expected Credit Loss is Made
Independently
Reasons for a separate provision for expected
Conclusive evidence of significant differences in recoverability
credit losses
An impairment loss is recognized for expected credit losses based on the difference
Determination method of expected credit losses
between the present value of expected future cash flows and their carrying amount
(3) Method of measuring loss provision for other financial assets
For financial assets other than those mentioned above such as debt investments other debt investments other
receivables and long-term receivables other than lease receivables the Company measures the allowance for
losses in accordance with the general method i.e. the "three-stage" model.The Company considers the following factors in assessing whether there has been a significant increase in credit
risk when measuring credit impairment on financial instruments:
The Company divides other receivables into certain combinations based on the nature of the amounts. It calculates
expected credit losses based on the combinations and the basis for determining the combinations is as below:
Other receivables portfolio 1: Deposit antecedent money
Other receivables portfolio 2: Related party money
Other receivables portfolio 3: Advance money
Of this the expected credit loss rate for the ageing portfolio is referenced to accounts receivable.
13. Accounts Receivable Financing
The determination methods and accounting methods of receivables financing are detailed in Note 12 Accounts
Receivable under this note.
14. Other Receivables
Determination methods and accounting methods of expected credit losses on other receivables
The determination methods and accounting methods of expected credit losses of other receivables is the same as
that of accounts receivable as detailed in Note 12 Accounts Receivable in this note.
15. Inventory
1. Classification of inventories
Inventories refer to the Company's finished goods or commodities for sale held in daily activities unfinished
goods in manufacturing process and materials and supplies consumed in process of manufacturing products or
providing services etc. Inventories mainly include raw materials goods in process materials in transit finished
goods commodities turnover materials materials commissioned for processing etc. Turnover materials include
low-value consumables and packaging materials.
2. Pricing method of issuing inventories
Inventories are valuated at the actual cost of the acquisition and the inventory costs include procurement costs
and processing costs. Inventories are valuated using the weighted average method when being issued.
3 13. Accrual method of provision for decline in value of inventories
Net realizable value refers to the amount after deducting the cost estimated until completion estimated selling
expenses and relevant taxes from the estimated selling price of the inventory. The Company determines the net
realizable value of inventories based on solid evidence obtained and after taking into consideration the purpose for
which the inventory is held and the impact of post-balance sheet events.The net realizable value of finished goods materials for sale and other merchandise inventories used directly for
sale is determined in the normal course of production and operation as the estimated selling price of such
inventories less estimated selling expenses and related taxes.The net realizable value of material inventories subject to processing is determined in the normal course of
production operations as the estimated selling price of the finished goods produced less the estimated costs to be
incurred to completion estimated selling expenses and related taxes.
4. Inventory system of inventories
The perpetual inventory system is adopted for the inventories of the Company.
5. Amortization of low-value consumables and packing materials
The one-off charge-off method is used for low-value consumables and packaging materials.
16. Contract Assets
The Company presents the right to receive consideration for goods or services that have been transferred to the
customer (and which is dependent on factors other than time-lapse) as a contract asset. Provision for impairment
of contract assets is made with reference to the expected credit loss method for financial instruments. For contract
assets that do not contain significant financing components the Company uses a simplified measurement method
to measure the loss reserves. For contract assets containing significant financing components the Company uses a
general measurement method to measure the loss reserves.When an impairment loss is incurred on a contract asset the amount to be written down is debited to "impairment
losses on assets" and credited to provision for impairment of contract assets; the reverse entry is made when the
provision for impairment is reversed.
17. Contract Costs
not applicable
18. Assets Held for Sale
The Company classifies non-current assets or disposal groups that meet both of the following conditions as assets
held for sale: First the assets or disposal groups can be sold immediately under current conditions based on the
practice of selling such assets or disposal groups in similar transactions; and second the sales are highly likely to
occur that is the Company has already made a resolution on a sale plan and obtained a certain purchase
commitment and the sale is expected to be completed within one year. The relevant regulations require the
approval of the relevant or regulatory authority of the enterprise before the sale shall have been approved.When the Company initially measures or remeasures non-current assets or disposal groups held for sale on the
balance sheet date if the carrying value is higher than the fair value minus the net amount of the sale costs the
carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down
will be recognized as asset impairment loss and included in current profit and loss and provision for impairment
of assets held for sale will be made.Assets in the balance sheet in the non-current assets held for sale or disposal groups held for sale are presented as
assets held for sale and liabilities in the disposal groups held for sale are presented as liabilities held for sale.A discontinued operation is a separately distinguishable component meeting one of the following conditions and
which has been disposed of by the Company or is classified by the Company as held for sale:
1. The component represents a separate primary business or a separate primary operating area;
3 22. The component is part of an associated plan for the proposed disposal of a separate primary business or a
separate major operating area;
3. The component is a subsidiary acquired exclusively for resale.
19. Investment in Debt Obligations
Not applicable
20. Other Investment in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
1. Determination of initial investment cost
For long-term equity investments acquired through a business combination in the case of a business combination
under the same control the initial investment cost of the long-term equity investment shall be the share of the
owners' equity of the party being combined in the consolidated financial statements of the ultimate controlling
party on the combination date; in the case of a business combination not under the same control the initial
investment cost of the long-term equity investment shall be the cost of combination determined on the acquisition
date; for long-term equity investments acquired by paying cash the initial investment cost is the actual purchase
price paid; for long-term equity investments acquired by issuing equity securities the initial investment cost is the
fair value of the equity securities issued; for long-term equity investments acquired through debt restructuring the
initial investment cost is determined in accordance with the relevant provisions of Accounting Standards for
Business Enterprises No. 12-Debt Restructuring; for long-term equity investments acquired through exchange of
non-monetary assets the initial investment cost is determined in accordance with the relevant provisions of
Accounting Standards for Business Enterprises No. 7-Exchange of Non-monetary Assets.
2. Method of subsequent measurement and recognition of profit or loss
Long-term equity investments in which the Company can exercise control over the investees are accounted for by
the cost method and long-term equity investments in associates and joint ventures are accounted for by the equity
method. If a portion of the Company's equity investments in affiliates is held indirectly through venture capital
institutions mutual funds trust companies or similar entities including investment-linked funds regardless of
whether the above entities have significant influence over this portion of the investment the Company treats it in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 22-Recognition
and Measurement of Financial Instruments and accounts for the remaining portion with the equity method.
3. Determination basis of the same control and significant influence on the investee
Having the same control over an investee refers to that the activities that significantly affect the return on an
arrangement can only be decided with the unanimous consent of the participants sharing control including sales
and purchases of goods or services management of financial assets acquisitions and disposals of assets research
and development activities and financing activities; having significant influence over an investee refers to having
a considerable impact when more than 20% to 50% of the investee's voting capital is held. Or although less than
20% having a considerable impact when one of the following conditions is met: Representation on the board of
directors or similar authority of the investee; participation in the policy-making process of the investee;
assignment of management personnel to the investee; reliance of the investee on the technology or technical
information of the investee; and major transactions with the investee.
23. Investment Properties
Measurement model of investment property
Measurement of cost method
Depreciation or amortization method
3 3The Company's investment property include leased land use rights leased buildings and land use rights held and
ready to be transferred after appreciation. Investment property is initially measured according to cost and then
measured by cost model.The Company uses the composite life depreciation method for buildings leased out of investment properties and
the specific accounting policies are the same as those for fixed assets. Land use rights leased out of investment
properties and land use rights held and intended to be transferred after appreciation are amortized through the
straight-line method with the same accounting policies as those for the intangible assets segment.
24. Fixed Assets
(1) Recognition conditions
The fixed assets refer to tangible assets held for production of goods provision of labour services lease or
business with a service life of over a fiscal year. Recognition is made when the following conditions are met: The
economic benefits associated with the fixed-asset will probably flow to the enterprise; the cost of the fixed-asset
can be measured reliably.
(2) Depreciation method
Annual depreciation
Category Depreciation method Depreciable life Residual value rate
rate
Straight-line
Houses and buildings 3-36 years 1%-10% 31.67%-3.17%
depreciation method
Straight-line
Machinery equipment 2-11years 1%-10% 47.50%-8.18%
depreciation method
Transportation Straight-line
5-10 years 1%-10% 19.00%-9.50%
equipment depreciation method
Straight-line
Electronic equipment 2-8 years 1%-10% 47.50%-11.88%
depreciation method
Straight-line
Other equipment 5 years 1%-10% 19%-18%
depreciation method
(3) Impairment testing methods for fixed assets and provision for impairment
For details see Note 31 “Impairment of long-term assets”.
(4) Disposal of fixed assets
Fixed assets are derecognised when they are disposed of or when no economic benefits are expected to arise from
their use or disposal. Proceeds from the disposal of fixed assets on sale transfer retirement or destruction net of
their carrying amount and related taxes are recorded in current profit or loss.
（5）Recognition Basis Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable
25. Construction in Progress
The cost of construction in progress is determined on the basis of actual construction expenditure including all
construction expenditure incurred during the period of construction borrowing costs capitalised before the
construction reaches its intended useable state and other related costs.Construction in progress is transferred to fixed assets when it reaches its intended useable state and depreciation
commences from the following month. If the construction in progress has reached its intended useable state but
has not yet been finalised it is transferred to fixed assets at its estimated value from the date it reaches its intended
3 4useable state based on the project budget cost or actual cost of the project and is depreciated in accordance with
the Company's policy on depreciation of fixed assets and the original provisional estimated value is adjusted to
the actual cost after the finalisation of the project.See Note 31 "Impairment of long-term assets" for details of the impairment testing method and provision for
impairment for construction in progress.
26. Borrowing Costs
1. Recognition principles for the capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributable to the acquisition construction or
production of assets that meet the capitalization conditions they shall be capitalized and included in the costs of
the underlying assets; other borrowing costs recognized as costs according to the amount incurred shall be
included in the profit and loss for the current period. Assets eligible for capitalization refer to assets such as fixed
assets investment properties and inventories that require a long period for their acquisition or production
activities to reach the expected usable or saleable status.
2. Calculation of capitalization amount
The capitalization period refers to the period from when the capitalization of borrowing costs starts to when the
capitalization stops. The period during which capitalization of borrowing costs is suspended is not included.Capitalization of borrowing costs shall be suspended if there is an abnormal interruption in the course of
acquisition or production and the interruption lasts for more than three consecutive months.Borrowing of special borrowings is determined by the interest expense incurred in the period of the special
borrowings less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or the
investment income earned by making temporary investments; the appropriation of general borrowings is
determined by multiplying the weighted average amount of asset expenses over the portion of special borrowings
by the capitalization rate of the general borrowings appropriated which is the weighted average interest rate of
general borrowings; if there is a discount or premium on borrowings the amount of discount or premium to be
amortized in each accounting period is determined by the effective interest rate method. The amount of interest is
adjusted for each period.The effective interest rate method is a method of calculating the amortized discount or premium or interest
expense on a borrowing based on its effective interest rate. The effective interest rate method calculates the
amortized discount or premium or interest expense on a borrowing based on its effective interest rate.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
The determination methods and accounting methods of right-of-use assets are detailed in Note 42 Leases under
this note.
30. Intangible Assets
(1) Pricing method useful life and impairment test
1. Recognition criteria of intangible assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without
physical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to the
definition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into
the Company; (3) The costs of the assets can be measured reliably.
2. Initial measurement of intangible assets
3 5Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets including the purchase price relevant taxes and other expenses
directly attributable to the intended use of the asset. If the amount paid for the purchase of intangible assets
witnesses postponed payment due to that the normal credit conditions are exceeded and is actually financing in
nature the costs of such intangible assets shall be determined on the basis of the present value of the purchase
price. The difference between the actual payment price and the present value of the purchase price shall be
recorded into the current profits and losses in the credit period except that can be capitalized in accordance with
the Accounting Standard for Business Enterprises No. 17 - Borrowing Cost.
(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in the
investment contract or agreement except that the value of the contract or agreement is unfair.
3. Subsequent measurement of intangible assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets
is limited and the years of the useful life or output that constitutes the useful life or similar measurement units
shall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term that
brings economic benefits to the Company is unforeseeable
Intangible assets with limited useful life shall be amortized by straight line method from the time when the
intangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertain useful
life shall not be amortized. The Company reviews the estimated useful life and amortization method of intangible
assets with limited useful life at the end of each year and reviews the estimated useful life of intangible assets
with uncertain useful life in each accounting period. For intangible assets that evidence shows the useful life is
limited the useful life shall be estimated and the intangible assets shall be amortized in the estimated useful life.
4. Recognition criteria and withdrawal method of intangible asset impairment provision
The impairment test method and withdrawal method for impairment provision of intangible assets are detailed in
Note 3 (20): “Long-term asset impairment”.
(2) Accounting policy for internal research and development expenditures
The expenditures in internal research and development projects of the Company are classified into expenditures in
research stage and expenditures in development stage. The expenditures in research stage are included in the
current profits and losses when incurred. The expenditures in development stage are recognized as intangible
assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits including the proof that the products
produced with the intangible assets can be sold in a market or the proof of its usefulness if the intangible assets
can be sold in a market and will be used internally;
(4) Having sufficient technical financial resources and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred after meeting intangible assets
recognition criterion and before reaching intended use. Expenditures that have been expensed in previous periods
are no longer adjusted.The cost of intangible assets acquired by non-monetary assets exchange debt restructuring government subsidies
and business combination are recognized according to relevant provisions of Accounting Standards for Business
Enterprises No. 7 - Non-monetary Assets Exchange Accounting Standards for Business Enterprises No. 12 - Debt
Restructuring Accounting Standards for Business Enterprises No. 16 - Government Subsidies Accounting
Standards for Business Enterprises No. 20 - Business Combination respectively.
3 631. Impairment of Long-term Assets
For long-term assets having the indication of impairment on balance sheet date such as long-term equity
investments investment property measured in cost mode fixed assets construction in progress productive living
assets measured in cost mode oil and gas assets and intangible assets the Company shall test the impairment. If
the impairment test results indicate that the recoverable amount of the asset is lower than its book value the
impairment provision shall be made at the difference and included in the impairment loss.The recoverable amount is the higher of the fair value of the asset minus the disposal cost and the present value of
the expected future cash flow of the asset. The provision for impairment of assets is calculated and recognized on
the basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets the
recoverable amount of the asset group shall be recognized by the asset group to which the asset belongs. The asset
group is the smallest portfolio of assets that can generate cash inflows independently.Goodwill presented separately in the financial statements shall be tested for impairment every year whether or not
there is any indication of impairment. The book value of the goodwill shall be apportioned to the asset group or
portfolio of asset groups that is expected to benefit from the synergies of the business combination when the
impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that the
recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is lower
than its book value. The amount of the impairment loss shall offset the book value of the goodwill apportioned to
the asset group or portfolio of asset groups and offset the book value of other assets in proportion according to the
proportion of the book value of other assets except the goodwill in the asset group or portfolio of asset groups.Once the impairment loss of the above asset is recognized the portion that the value is restored will not be written
back in subsequent periods.
32. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (excluding one
year) that have occurred but are attributable to the current and future periods. Long-term prepaid expense shall be
amortized averagely within benefit period. In case of no benefit in the future accounting period the amortized
value of such item that fails to be amortized shall be transferred into the current profits and losses.
33. Contract Liabilities
The Company presents the obligation of transferring goods to or providing services for customers for
consideration received or receivable as a contract liability.The Company presents contract asset and contract liability under the same contract on a net basis.
34. Payroll
Employee benefits refer to all forms of remuneration or compensation given by the Company for services
rendered by employees or for the termination of employment relationships. Employee benefits mainly include
short-term benefits post-employment benefits termination benefits and other long-term employee benefits.
(1) Accounting treatments for short-term benefits The short-term compensation actually happened during the
accounting period when the active staff offering the service for the Company should be recognized as liabilities
and is included in the current profits and losses except for those required or allowed to be included in the assets
cost by the Accounting Standards for Business Enterprises. The employee services benefits actually happened in
the Company shall be included in the current profits and losses or relevant assets cost according to the actual
amount. Of which the non-monetary benefits should be measured according to the fair value. During the
accounting term in which employees provide service the Company calculates and determines the corresponding
payroll amount in accordance with the withdrawal basis and withdrawal proportion specified in regulations with
the social insurance premiums such as medical insurance premiums industrial injury insurance premium and birth
insurance premium housing fund and the labour union budget and employee education budget withdrawn in
regulations and then recognizes it as liabilities that are included in the current profits and losses or relevant assets
cost.
3 7(2) Accounting treatment of the welfare after demission
The payable and deposit amount calculated according to the defined contribution plan during the accounting
period when the active staff offering the service for the Company is recognized as liabilities and is included in the
current profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shall
be attributable to the period in which the employees provide services based on the formula determined by
expected cumulative welfare unit method and included in current profits and losses or cost of relevant asset.
(3) Accounting treatment of the demission welfare
When offering the demission welfare the Company shall recognize the payroll liabilities incurred from the
demission welfare on the earlier of the date when the Company could not unilaterally withdraw the demission
welfare offered by the plan or layoff proposal owing to termination of the labour relationship or the date when the
Company recognizes the cost related to the reorganization of the payment of the demission welfare and include
the payroll liabilities into the current profits and losses:
(4) Accounting treatment of the welfare of other long-term staffs
The other long-term welfare that the Company offers to the staff if met with the setting drawing plan shall be
disposed of according to the relevant setting drawing plan; except for that net liabilities or net assets of the
welfare of other long-term staff shall be recognized and measured according to the setting drawing plan.
35. Lease Liabilities
The determination methods and accounting methods of leases are detailed in Note 42 Leases under this note.
36. Provisions
The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a current
obligation of the Company and it is likely to cause any economic benefit to flow out of the enterprise as a result
of performance of the obligation while the amount of the obligation can be measured in a reliable way. The
Company conducts the initial measurement in accordance with the best estimate of the necessary expenses for the
performance of the current obligation. If there is a sequent range for the necessary expenses and if all the
outcomes within this range are equally likely to occur the best estimate shall be determined in accordance with
the midpoint estimate within the range; if the contingencies concern two or more items the best estimate shall be
calculated and determined in accordance with all possible outcomes and the relevant probabilities.Review of the book value of provisions shall be conducted on the balance sheet date. The book value shall be
adjusted in accordance with the current best estimate when there is definite evidence indicating that the book
value cannot reflect the current best estimate in faithfulness.
37. Share-based Payment
Not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
The Company recognizes revenue when it has satisfied its performance obligations under the contract i.e. when
the customer has obtained control of relevant goods or services. Obtaining control of relevant goods or services
means being able to direct the use of them and obtain substantially all benefits from them.Where the contract contains two or more performance obligations the Company at the inception date of the
contract allocates the transaction price to each performance obligation in accordance with the relative proportion
of the stand-alone selling price of the goods or services promised by each performance obligation. The Company
measures revenue on the basis of the transaction price allocated to each performance obligation.Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer excluding amounts collected on behalf of third parties and amounts
3 8expected to be returned to the customer. The Company determines the transaction price in accordance with the
terms of the contract with past business practices taken into account. When determining the transaction price it
considers the impact of variable consideration the existence of a significant financing component in the contract
non-cash consideration consideration payable to a customer and other factors. The transaction price is recognized
only to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue
recognized will not occur when the relevant uncertainty is resolved. Where a contract contains a significant
financing component the Company determines the transaction price on the basis of the amount presumably
payable in cash when the customer obtains control of the goods or services and uses the actual interest method to
amortize the difference between the transaction price and the contract consideration during the contract period.A performance obligation is satisfied over time if one of the following conditions is met; otherwise it is treated as
satisfied at a point in time:
(1) The customer simultaneously receives and consumes the benefits provided by the Company's performance as
the Company performs.
(2) The customer can control the goods as they are created during the Company's performance.
(3) The goods produced by the Company's performance have no alternative use and the Company has the right to
collect payment for performance completed to date during the entire contract period.Where a performance obligation is to be satisfied over time the Company recognizes revenue in accordance with
the progress of performance during the period except when the progress cannot be reasonably determined. In
determining the progress of performance the Company takes into account the nature of the goods or services and
adopts the output methods or the input methods.Where the performance progress cannot be reasonably determined and the costs incurred are expected to be
recovered the Company recognizes revenue according to the amount of the costs incurred until the progress can
be reasonably determined.Where the performance obligation is to be satisfied at a certain point in time the Company recognizes revenue at
the point when the customer obtains control of the relevant goods or services. When judging whether the customer
has obtained control of goods or services the Company considers the following indicators:
(1) The Company has a present right to receive payment for the goods or services i.e. the customer has a present
obligation to pay for the goods or services.
(2) The Company has transferred the legal ownership of the goods to the customer i.e. the customer has obtained
the legal ownership of the goods.
(3) The Company has transferred physical possession of the goods to the customer i.e. the customer has taken
physical possession of the goods.
(4) The Company has transferred significant risks and rewards of ownership of the goods to the customer i.e. the
customer has obtained significant risks and rewards of ownership of the goods.
(5) The customer has accepted the goods or services.
2. Specific methods
(1) Recognition of domestic sales revenue: Under the conventional settlement mode the Company has delivered
goods that have passed inspection to the purchaser as required by the purchaser; the amount of revenue has been
determined a sales invoice has been issued and the payment has been received or is expected to be recovered;
under the consignment sales settlement mode the Company recognizes sales revenue when the product is issued
and the settlement notice is issued after the customer inspection is qualified.
(2) Recognition of export sales revenue: The Company has produced goods according to the requirements
stipulated in the sales contract and completed the export declaration procedures after the goods have passed
inspection; the freight company has shipped the goods the amount of revenue has been determined an export
sales invoice has been issued and the payment has been received or is expected to be recovered.Differences in accounting policies for the recognition of revenue caused by different business models for the same
type of business
3 940. Government Subsidies
1. Category of and accounting treatment for government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from the
government (excluding the capital invested by the government as an equity holder). If a government subsidy is a
monetary asset it shall be measured according to the amount received or receivable. If a government subsidy is a
non-monetary asset it shall be measured at its fair value and shall be measured at a nominal amount when the fair
value cannot be obtained reliably.Government subsidies related to the daily activities are included in other income in accordance with the nature of
economic business. Government subsidies unrelated to the daily activities are included in non-operating revenue.Government subsidies are recognized as asset-related subsidies when stipulated by government documents to be
used for acquisition construction or otherwise formation long-term assets. Government subsidies without subsidy
object specified by the government document able to form a long-lived asset and corresponding to the asset
value are asset-related government subsidies while the rest are government subsidies related to income. For
government subsidies containing both part related to asset and part related to income the Company shall conduct
the accounting treatment respectively to the different part; if the part is difficult to distinguish it shall be classified
as government subsidy related to income; government subsidies related to assets are recognized as deferred
income. The amount recognized as deferred income is included in the current profits and losses in accordance
with reasonable and systematic method in the useful life of relevant assets.Government subsidies other than asset-related government subsidies are recognized as government subsidies
related to income. Government subsidies related to income used to compensate the relevant costs expenses or
losses of the Company in the subsequent period shall be recognized as deferred income and shall be included in
the current profit and loss during the period of confirming the relevant cost expenses or losses; subsidies used to
compensate the relevant costs expenses or losses incurred by the Company shall be directly included in the
current profits and losses (subsidies related to the daily activities of the Company are included in other income;
while subsidies unrelated to the daily activities of the Company are included in non-operating revenue).In the case that the Company obtains a policy favourable loan interest subsidy and the fiscal system allocates the
fund of interest subsidy to the lending bank who provides loans to the Company at a policy favourable interest
rate the actual loan amount received is recognized as the recorded value of the loan and the relevant borrowing
costs are calculated based on the loan principal and the policy favourable interest rate; if the fiscal system
allocates the fund of interest subsidy to the Company directly the Company reduces the corresponding interest
subsidy against relevant borrowing costs.
2. Recognition time of government subsidies
Government subsidies shall be recognized when the Company satisfies the conditions attached to the government
subsidies and is able to receive them. Government subsidies measured according to the receivable amount shall be
recognized when there is positive evidence at the end of the period that they can meet the relevant conditions
stipulated by the financial support policies and are expected to receive financial support funds. Other government
subsidies other than government subsidies measured by amount receivable are recognized when the Company
actually receives the subsidies.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordance with
the applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the
different amount between the book value of assets or liabilities and its tax base (for items not recognized as assets
and liabilities if its tax basis can be determined according to the tax law the tax basis is recognized as the
different amount).
2. The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset the
deductible temporary differences. On the balance sheet date deferred income tax assets without recognition
during the former accounting period shall be recognized if there are definite indications representing that it is
probable to have sufficient taxable income to offset the deductible temporary differences during the future period.If it is likely that sufficient taxable income will not be available to offset the benefit of the deferred income tax
4 0assets in the future period the book value of the deferred income tax assets will be written down. However for a
transaction with the following characteristics concurrently the deferred income tax assets arising from the initial
recognition of assets or liabilities shall not be recognised: 1) The transaction is not a business combination; 2) the
transaction affects neither the accounting profit nor the taxable income (or the deductible losses) when it is
affected.
3. For taxable temporary differences related to the investment in subsidiaries and associated enterprises the
deferred income tax liabilities are recognized unless the time of temporary differences reversal can be controlled
by the Company and are probably not to be reversed in foreseeable future. For deductible temporary differences
related to the investment in subsidiaries and associated enterprises the deferred income tax assets are recognized
if the temporary differences are probably to be reversed in foreseeable future and it is likely to have taxable
income to offset the deductible temporary differences.
42. Lease
(1) Accounting treatment of operating lease
1. Accounting treatment of leased assets
On the start date of the lease term the Company deems the right-of-use assets and lease liabilities of all the
operating leases except for the short-term leases and low-value leases and recognizes the depreciation expense
and interest expense respectively within the lease term.In each period in lease term the Company includes the lease payment of short-term leases and low-value leases in
the current expense with the straight-line method.
(1) Right-of-use assets
Right-of-use assets refer to the right of the lessees to use the leasehold property in the lease term. At the start date
of the lease term. The Company initially measures the right-of-use assets at cost. The cost includes: a) The initial
measurement amount of the lease liabilities; b) the lease payment paid on or before the start date of the lease term.If there is a lease incentive the amount related to the lease incentive taken should be deducted; c) the initial direct
cost incurred by the lessee; d) the estimated cost that the lessee will use to pull down and remove the leasehold
property and restore the site of the leasehold property or restore the leasehold property to the state agreed in the
lease clauses.The Company depreciates the right-of-use assets with the straight-line method. If it is reasonably certain that the
ownership of the leasehold property will be obtained at the end of the lease term the Company will depreciate the
leasehold property over its estimated remaining service life. If it is not reasonably certain that the ownership of the
leasehold property will be obtained at the end of the lease term the Company will depreciate the leased assets
over the lease term or the remaining service life whichever is shorter.The Company will determine the impairment of right-of-use assets and conduct accounting treatment in
accordance with relevant provisions of the Accounting Standards for Business Enterprises No.8 - Asset
Impairment.
(2) Lease liabilities
The Company initially measures the lease liabilities at the current value of the lease payments outstanding at the
start date of the lease term. Lease payments include: a) fixed payment (including substantial fixed payment) and
the relevant amount after deducting the lease incentive if any; b) variable lease payments depending on index or
ratio; c) estimated payments due to the guaranteed residual value provided by the lessee; d) exercise price of the
purchased option provided that the lessee reasonably determines that the option will be exercised; and e) the
amount to be paid for the exercise of the lease termination options provided that the lease term reflects that the
lessee will exercise the options to terminate the lease.The Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit in lease
cannot be reasonably determined the Company's incremental borrowing rate is used as the rate of discount. The
Company calculates the interest expenses of the lease liabilities during each period of the lease term at a fixed
periodic interest rate and includes them in financial expenses. The periodic interest rate refers to the rate of
discount employed by the Company or the rate of discount after revision.
4 1Variable lease payments that are not covered in the measurement of the lease liabilities are included in current
profit or loss when actually incurred.When there is a change in the Company's evaluation results of lease renewal options lease termination options or
purchase options the Company will re-measure the lease liabilities utilizing the present value of the changed lease
payment and the revised rate of discount and adjust the book value of right-of-use assets accordingly. Where
there is a change in substantial lease payment estimated payments due to the guaranteed residual value or
variable lease payments depending on index or ratio the Company will re-measure the lease liabilities leveraging
the present value of the changed lease payment and the original rate of discount and adjust the book value of
right-of-use assets accordingly.
2. Accounting treatment of lease assets
(1) Accounting treatment of operating leases
The lease receivable of the operating lease in each period in the lease term is deemed as a rental on a straight-line
basis. The Company capitalizes the initial direct cost related to the operating finance amortizes and includes it in
the current profits on the basis same as the recognition of rentals in the lease term.
(2) Accounting treatment method of financial lease
On the start date of lease the difference between the sum of finance lease receivable and unguaranteed residual
value and its present value is recognized as unrealised lease income by the Company which is recognized as lease
income in each period when the rent is received in the future. The initial direct cost incurred related to lease
business is included in the initial recorded value of financial lease receivable.
43. Other Significant Accounting Policies and Estimates
None
44. Changes in Main Accounting Policies and Estimates
(1) Change in accounting policies
□ Applicable □ Not applicable
Changes to the accounting policies and why Approval process Remark
In November 2022 the Ministry of Finance ("MOF")
issued Accounting Standard for Business Enterprises
Interpretation No. 16 (hereinafter referred to as
"Interpretation No. 16") which regulated the accounting
treatment for the exemption from initial recognition of the
deferred income taxes related to assets and liabilities
arising from a single transaction. It specified that for
single transactions that are not business combinations that
affect neither accounting profit nor taxable income (or
Refer to Note 44. Changes
deductible losses) at the time the transaction occurs and Deliberation and approved by the
in Main Accounting Policies
where the initial recognition of assets and liabilities results 46th Meeting of the 9th Board of
and Estimates-(3) for
in taxable temporary differences and deductible temporary Directors
details.differences of equal amounts exemption from initial
recognition of deferred income tax liabilities and deferred
income tax assets under Article XI (II) and Article XIII of
Accounting Standard for Business Enterprises No. 18 --
Income Taxes is not applicable. An enterprise shall
recognise the corresponding deferred income tax liabilities
and deferred income tax assets for the taxable temporary
differences and deductible temporary differences arising
from the initial recognition of assets and liabilities in
4 2respect of the transaction when the transaction occurs. This
provision came into force on 1 January 2023 and can be
executed in advance.
(2) Changes in accounting estimates
□Applicable □Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of
the New Accounting Standards Implemented since 2023
□ Applicable □ Not applicable
Note
The account data of financial statements are retroactively adjusted as follows:
Unit: RMB
Consolidated balance sheet
1 January 2022
Item Before After Affected
Deferred income tax assets 82261788.58 84159937.92 1898149.34
Deferred income tax liabilities 280172789.59 282035768.42 1862978.83
Retained earnings 3111864076.86 3111882995.08 18918.22
Total equity attributable to owners of the Company as the parent 7036108772.54 7036127690.76 18918.22
Non-controlling interests 3543741175.21 3543757427.50 16252.29
Total owners’ equity 10579849947.75 10579885118.26 35170.51
Unit: RMB
Consolidated balance sheet
1 January 2023
Item Before After Affected
Deferred income tax assets 88387206.25 90186993.64 1799787.39
Deferred income tax liabilities 202469697.60 204371264.18 1901566.58
Retained earnings 3296490575.52 3296435828.50 -54747.02
Total equity attributable to owners of the Company as the parent 5173066095.76 5173011348.74 -54747.02
Non-controlling interests 3427280735.85 3427233703.68 -47032.17
Total owners’ equity 8600346831.61 8600245052.42 -101779.19
Unit: RMB
Consolidated income statement
2022
Item Before After Affected
Income tax expense 30874328.03 31011277.73 136949.70
Net profit 350843355.72 350706406.02 -136949.70
Net profit attributable to shareholders of the Company as the parent 230394235.91 230320570.67 -73665.24
Net profit attributable to non-controlling interests 120449119.81 120385835.35 -63284.46
Note: The amount affected by the retroactive adjustment of this accounting policy change has not been audited.
4 345. Other
Naught
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or
VAT 3% 6% 9% 13%
taxable service
Urban maintenance and construction tax Turnover tax payable 7% 5%
Enterprise income tax Taxable income 10% 15% 25%
Education surcharge Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company Zhida Company Chanchang Company
Haolaite Nanning Liaowang Chongqing Guinuo Liuzhou
Lighting Liuzhou Foreshine Qingdao Guige Headquarters of 15%
NationStar Optoelectronics NationStar Semiconductor
Germany NationStar Fenghua Semiconductor
FSL Lighting GmbH 15%
Indonesia Liaowang 10%
Other subsidiaries 25%
2. Tax Preference
1. The Company passed the re-examination for High-tech Enterprises in 2020 as well as won the “Certificate ofHigh-tech Enterprise” after approval by Department of Science and Technology of Guangdong Province
Department of Finance of Guangdong Province Guangdong Provincial Bureau of State Taxation and Guangdong
Provincial Bureau of Local Taxation. In accordance with relevant provisions in Corporate Income Tax Law of the
People’s Republic of China and the Administration Measures for Identification of High-tech Enterprises
promulgated in 2007 the Company paid the corporate income tax based on a tax rate of 15% within three years
since 1 January 2020.
2. Chanchang Company passed the examination for High-tech Enterprises respectively in December 2021 and
thus Chanchang Company paid the corporate income tax based on a tax rate of 15% within three years since 1
January 2021 in accordance with relevant provisions in Corporate Income Tax Law of the People’s Republic of
China and the Administration Measures for Identification of High-tech Enterprises promulgated in 2007.
3. According to the Decision on Tax Matters approved by the Local Taxation Bureau of Nanning High-tech
Industrial Development Zone (NGDSSB [2015] No. 1) Nanning Liaowang will enjoy the preferential tax
reduction and exemption of enterprise income tax in the western development from 1 January 2015 and the
enterprise income tax will be levied at a reduced rate of 15%.
4. After being examined and filed by the competent tax authorities Chongqing Guinuo will enjoy the preferential
tax reduction and exemption of enterprise income tax in the western development from 1 January 2019 and the
enterprise income tax will be levied at a reduced rate of 15%.
4 45. According to the third batch of high-tech enterprises identified by the relevant authorities of Guangxi Zhuang
Autonomous Region in 2022 publicized on 19 December 2022 Liuzhou Optoelectronics has been certified as a
high-tech enterprise (certificate number: GR202245001221) for 2022 to 2024 with a high-tech enterprise
preferential income tax rate of 15%.
6. According to the letter "Gui Ke Gao Han [2021] No. 237" issued jointly by the Department of Science and
Technology of Guangxi Zhuang Autonomous Region the Department of Finance and the Taxation Bureau of
Guangxi Zhuang Autonomous Region of the State Administration of Taxation on 30 November 2021 Liuzhou
Fuxuan has been certified as a high-tech enterprise (certificate number: GR202145001045) for 2021 to 2023 with
a high-tech enterprise preferential income tax rate of 15%.
7. Subsidiary NationStar Optoelectronics was recognized as a high-tech enterprise on 16 December 2008 with
certificate number GR200844000097. In 2020 the company was re-certified as a high-tech enterprise with
certificate number GR202044006337 issued on 9 December 2020 and the corporate income tax rate of the
company is 15% for the years 2020 to 2022.
8. Foshan NationStar Semiconductor Co. Ltd. a wholly-owned subsidiary of subsidiary NationStar
Optoelectronics was recognized as a high-tech enterprise with certificate number GR201544001238 on 10
October 2015; NationStar Semiconductor was re-certified as a high-tech enterprise with certificate number
GR202144008779 in 2021 issued on 20 December 2021 and the corporate income tax rate of the company is 15%
for the years 2021 to 2023.
9. The subsidiary Haolaite passed the certification of high-tech enterprise in 2022 and obtained the certificate of
high-tech enterprise (Certificate No. GR202244003711) approved by the Department of Science and Technology
of Guangdong Province the Department of Finance of Guangdong Province the State Taxation Bureau of
Guangdong Province and the Local Taxation Bureau of Guangdong Province. In accordance with the relevant
provisions of the Enterprise Income Tax Law of the People's Republic of China promulgated in 2007 and the
Administrative Measures for the Recognition of High-tech Enterprises the Company is entitled to a reduced
corporate income tax rate of 15% for three years commencing from 1 January 2022.
10. On 14 December 2022 Qingdao Guige Lighting Technology Co. Ltd. was recognized as a high-tech
enterprise and subject to the preferential tax rate of 15% for high-tech enterprise income tax in accordance with
the relevant provisions of the Administrative Measures for the Recognition of High-tech Enterprises (Guo Ke Fa
Huo [2016] No. 32) and the Administrative Guidelines for the Recognition of High-tech Enterprises (Guo Ke Fa
Huo [2016] No. 195).
11. Fenghua Semiconductor a majority-owned subsidiary of subsidiary NationStar Optoelectronics was
recognized as a high-tech enterprise on 16 December 2008 and its certificate number was GR200844000295. It
was re-recognized as a high-tech enterprise in 2021 and its new certificate number is GR202144008851 dated 31
December 2021. Its corporate income tax rate for 2021-2023 is 15%.
12. The subsidiary Zhicheng is a small and micro enterprise. From 1 January 2022 to 31 December 2024 the
people's governments of provinces autonomous regions and municipalities directly under the Central Government
shall determine in accordance with the actual situation in the region and the needs of macroeconomic regulation
and control that resource tax urban maintenance and construction tax property tax urban land use tax stamp
duty (excluding stamp duty on securities transactions) arable land occupation tax and education surcharge and
local education surcharge may be reduced within a tax range of 50% for small and micro enterprises.
13. Zhida Company passed the certification of high-tech enterprise in December 2019 and was re-recognized as a
high-tech enterprise in 2022. In accordance with the relevant provisions of the Enterprise Income Tax Law of the
People's Republic of China promulgated in 2007 and the Administrative Measures for the Recognition of High-
tech Enterprises the Company is entitled to a reduced corporate income tax rate of 15% for three years
4 5commencing from 1 January 2022.
3. Other
Pay in accordance with the relevant provisions of the tax law
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 45923.56 52093.54
Bank deposits 1979561171.78 1957903758.15
Other monetary assets (note 1) 530315488.92 522361684.92
To-be-received interest (note 2) 8255130.73 4191370.82
Total 2518177714.99 2484508907.43
Of which: Total amount deposited
28196729.4834169227.46
overseas
Total amount with
restrictions on use due to mortgage 535698818.93 534826528.99
pledge or freeze
Other notes
Note 1: Other monetary assets were security deposits for notes and performance bonds as well as investments
placed with security firm and the balance with e-commerce platforms of which the security deposits for notes
and performance bonds were restricted assets (see “81. Assets with Restricted Ownership or Right of Use” in
Note “VII Notes to Consolidated Financial Statements”).Note 2: To-be-received interest was interest receivable on undue bank deposits and term deposits as of the end
of the Reporting Period which is not recognized as cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through
81882834.67261541896.45
profit or loss
Including:
Wealth management products 80983830.13 260569863.53
Equity instrument investments 899004.54 972032.92
Including:
Total 81882834.67 261541896.45
3. Derivative Financial Assets
Naught
4 64. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 750857065.95 786244513.66
Commercial acceptance bill 60397859.39 35293260.41
Total 811254925.34 821537774.07
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Categor Withdra Withdra
Carrying Carrying
y Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Notes
receivab
le
withdra
81248712326811254822258720270821537
wn bad 100.00% 100.00% 100.00% 100.00%
534.7209.38925.34044.69.62774.07
debt
provisio
n by
group
Of
which:
Bank
750857750857786244786244
acceptan 92.41% 0.00 0.00% 95.62% 0.00 0.00%
065.95065.95513.66513.66
ce bill
Commer
cial 61630 12326 60397 36013 720270 35293
7.59%100.00%4.38%100.00%
acceptan 468.77 09.38 859.39 531.03 .62 260.41
ce bill
81248712326811254822258720270821537
Total 100.00% 100.00% 100.00% 100.00%
534.7209.38925.34044.69.62774.07
Withdrawal of bad debt provision by group: RMB1232609.38
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 61630468.77 1232609.38 2.00%
Total 61630468.77 1232609.38
Note:
Naught
Please refer to the relevant information of disclosure of bad debt provision of other receivables if adopting the
general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□Applicable □ Not applicable
4 7(2) Bad Debt Provision Withdrawn Reversed or Collected during the Reporting Period
Withdrawal of bad debt provision:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Notes
receivable
withdrawn bad 720270.62 512338.76 1232609.38
debt provision
by group
Total 720270.62 512338.76 1232609.38
Of which bad debt provision collected or reversed with significant amount:
□Applicable □ Not applicable
(3) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Amount pledged at the period-end
Bank acceptance bill 654426305.62
Total 654426305.62
(4) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on the
Balance Sheet Date at the Period-end
Unit: RMB
Amount of recognition termination at the Amount of not recognition termination at
Item
period-end the period-end
Bank acceptance bill 448926920.31 74615851.95
Total 448926920.31 74615851.95
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
(6) Notes Receivable with Actual Verification for the Reporting Period
Naught
5. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Categor Ending balance Beginning balance
y Carrying amount Bad debt provision Carrying Carrying amount Bad debt provision Carrying
4 8Withdra value Withdra value
Proporti wal Proporti wal
Amount Amount Amount Amount
on proporti on proporti
on on
Account
s
receivab
le
withdra
19769197692512325123
wn bad 0.80% 100.00% 1.23% 100.00%
debt 199.92 199.92 263.57 263.57
provisio
n
separatel
y
Account
s
receivab
le
24652234702019119207
withdra 118195 98359
95096.99.20%4.79%99724.30602.98.77%4.87%70941.
wn bad 371.65 660.29
debt 57 92 05 76
provisio
n by
group
Of
which:
(1)
Business
portfolio
of 18439 17389 14997 14126
74.20%1049465.69%73.37%871565.81%
general 21468. 74578. 83089. 26414.lighting 889.16 675.78 08 92 81 03
and auto
lamps
(2)
Business
portfolio
of LED
62137325.00%132482.13%60812551934725.40%112022.16%508144
packagin
g and 628.49 482.49 146.00 512.24 984.51 527.73
compon
ents
24850234702044219207
137964123482
Total 64296. 100.00% 5.55% 99724. 53865. 100.00% 6.04% 70941.
571.57923.86
49926276
Individual withdrawal of bad debt provision: RMB19769199.92
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Involved in the lawsuit
the Company won the
lawsuit in the second
Customer A 11220827.14 11220827.14 100.00%
instance which had not
yet executed
completely
Less likely to be
Customer B 5711450.39 5711450.39 100.00%
recovered
Less likely to be
Customer C 815484.27 815484.27 100.00%
recovered
Customer D 761769.31 761769.31 100.00% Expected to be
4 9unrecoverable
The customer is
insolvent a judgment
Customer E 526858.54 526858.54 100.00% has been filed and
enforcement has been
applied for
The customer is
Customer F 523448.92 523448.92 100.00%
bankrupt
Expected to be
Customer G 171282.32 171282.32 100.00%
unrecoverable
Expected to be
Customer H 21928.68 21928.68 100.00%
unrecoverable
Expected to be
Customer I 16150.35 16150.35 100.00%
unrecoverable
Total 19769199.92 19769199.92
Withdrawal of bad debt provision by group: RMB118195371.65
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk group 2465295096.57 118195371.65 4.79%
Total 2465295096.57 118195371.65
Note:
Naught
Please refer to the relevant information of disclosure of bad debt provision of other receivables if adopting the
general mode of expected credit loss to withdraw bad debt provision of accounts receivable.□Applicable □ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 2217602166.86
1 to 2 years 172512834.98
2 to 3 years 41194435.41
Over 3 years 53754859.24
3 to 4 years 6082506.14
4 to 5 years 25601627.43
Over 5 years 22070725.67
Total 2485064296.49
(2) Bad Debt Provision Withdrawn Reversed or Collected during the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Bad debt 25123263.5 5354063.65 19769199.9
5 0provision 7 2
separately
accrued
Bad debt
provision
98359660.219695758.5118195371.
withdrawn 140000.00 47.15
according to 9 1 65
groups
123482923.19695758.5137964571.
Total 140000.00 5354110.80
86157
Of which bad debt provision collected or reversed with significant amount:
Unit: RMB
Name of the entity Amount collected or reversed Way
No. 1 140000.00 Court enforcement funds
Total 140000.00
The amount of expected credit losses accrued during the current period was RMB19695758.51 the amount of
expected credit losses recovered or reversed during the current period was RMB140000.00 and the amount of
expected credit losses verified during the current period was RMB5354110.80 which was RMB23101.38
different from the amount of credit impairment loss on accounts receivable accrued during the current period of
RMB19672657.13 which was due to the difference in translation of foreign currency statements at the end of
the current period.
(3) Accounts Receivable with Actual Verification for the Reporting Period
Unit: RMB
Item Amount
No. 1 4687053.33
No. 2 521689.32
No. 3 145321.00
Other retails accounts 47.15
Of which verification of significant accounts receivable:
Unit: RMB
Whether occurred
Name of the entity Nature Amount Reason Procedure because of related-
party transactions
Perform the
approval
The enterprise is
procedures in
insolvent and not
No. 1 Payment for goods 4687053.33 accordance with Not
expected to be
the Company’s bad
recovered
debt management
system
Perform the
approval
The enterprise is
procedures in
insolvent and not
No. 2 Payment for goods 521689.32 accordance with Not
expected to be
the Company’s bad
recovered
debt management
system
No. 3 Payment for goods 145321.00 The enterprise is Perform the Not
5 1insolvent and not approval
expected to be procedures in
recovered accordance with
the Company’s bad
debt management
system
Total 5354063.65
Note:
The approval procedure for the verification of accounts receivable during the Reporting Period had been
performed in accordance with provisions of the bad debt management system of the Company.
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Proportion to total ending
Ending balance of accounts Ending balance of bad debt
Name of units balance of accounts
receivable provision
receivable (%)
No. 1 261026852.86 10.50% 7830805.59
No. 2 152452817.41 6.13% 4573584.52
No. 3 93476069.87 3.76% 2804282.10
No. 4 55627701.25 2.24% 1283037.33
No. 5 55226986.80 2.22% 1675758.38
Total 617810428.19 24.85%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
Naught
6. Accounts Receivable Financing
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bills 444845917.62 569868831.79
Total 444845917.62 569868831.79
The changes of accounts receivable financing in the Reporting Period and the changes in fair value
□Applicable □ Not applicable
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if
adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable
financing.
5 2□Applicable □ Not applicable
7. Prepayment
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 31552324.47 76.12% 36419452.21 80.00%
1 to 2 years 2624032.73 6.33% 3345048.70 7.35%
2 to 3 years 4381417.53 10.57% 3313296.20 7.28%
Over 3 years 2893345.53 6.98% 2448751.82 5.38%
Total 41451120.26 45526548.93
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
Naught
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Unit: RMB
Relationship with the Proportion to total
Name of units Ending balance Aging
Company prepayments (%)
No. 1 Non-related supplier 8853527.27 Within 1 year 21.36%
No. 2 Non-related supplier 2540646.17 1 to 2 years 2 to 3 years 6.13%
No. 3 Non-related supplier 1327340.00 2 to 3 years 3.20%
No. 4 Non-related supplier 1322725.73 Within 1 year 3.19%
No. 5 Non-related supplier 1311535.80 Within 1 year 3.16%
Total 15355774.97 37.05%
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 150403234.75 32902865.98
Total 150403234.75 32902865.98
5 3(1) Interest Receivable
1) Category of Interest Receivable
Naught
2) Significant Overdue Interest
Naught
3) Withdrawal of Bad Debt Provision
□Applicable □ Not applicable
(2) Dividends Receivable
1) Category of Dividends Receivable
Naught
2) Significant Dividends Receivable Aged over 1 Year
Naught
3) Withdrawal of Bad Debt Provision
□Applicable □ Not applicable
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Dividend payment (note) 111892889.20
Other current accounts 43848497.77 45041494.42
Performance bonds 18415192.27 14472948.78
Export VAT rebates 11326131.26 10011271.72
Staff loans and imprests 1984223.92 1164918.15
Rents and utilities 724524.41 1220591.91
Total 188191458.83 71911224.98
Note: refer to the dividend payment transferred to China Securities Depository and Clearing Corporation
Limited.
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
Bad debt provision First stage Second stage Third stage Total
5 4Expected loss in the
Expected loss in the
Expected credit loss of duration (credit
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
584406.204785285.1333638667.6739008359.00
2023
Balance of 1 January
2023 in the Current
Period
Withdrawal of the
210014.79-701413.34-728736.37-1220134.92
Current Period
Balance of 30 June
794420.994083871.7932909931.3037788224.08
2023
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable □ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 149905951.05
1 to 2 years 3027584.32
2 to 3 years 6134698.71
Over 3 years 29123224.75
3 to 4 years 3781427.91
4 to 5 years 1721323.52
Over 5 years 23620473.32
Total 188191458.83
3) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Bad debt provision withdrawn in the Reporting Period:
Unit: RMB
Increase/decrease
Beginning
Category Reversed or Ending balance
balance Withdrawn Verified Other
collected
Other 39008359.0 - 37788224.0
receivables 0 1220134.92 8
39008359.0-37788224.0
Total
01220134.928
The amount of expected credit losses accrued during the current period was RMB1220134.92 the amount of
expected credit losses recovered or reversed during the current period was RMB0.00 and the amount of
expected credit losses verified during the current period was RMB0.00 which was RMB17439.94 different
from the amount of credit impairment loss on other receivables accrued during the current period of
RMB1237574.86 which was due to the difference in translation of foreign currency statements at the end of
the current period.
5 54) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Dividend payment 111892889.20 Within 1 year 59.46% 0.00
Other intercourse
No. 2 20000000.00 Within 5 year 10.63% 20000000.00
accounts
VAT export tax
No. 3 11326131.26 Within 1 year 6.02% 339783.94
refunds
Other intercourse
No. 4 5000000.00 Within 1 years 2.66% 5000000.00
accounts
Other intercourse
No. 5 4289457.98 Within 3 year 2.28% 4289457.98
accounts
Total 152508478.44 81.05% 29629241.92
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Other Receivables
Naught
9. Inventory
Whether the Company needs to comply with disclosure requirements for real estate industry
No
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Falling price Falling price
reserves of reserves of
inventory or inventory or
Item Carrying Carrying
depreciation Carrying value depreciation Carrying value
amount amount
reserves of reserves of
contract contract
performance performance
5 6cost cost
379135335.369490024.414134452.407241210.
Raw materials 9645310.90 6893242.38
60705517
Goods in 227936650. 227936650. 239412167. 239412167.process 78 78 33 33
Inventory 796421911. 142385621. 654036290. 101999015 139368445. 880621713.goods 36 23 13 9.16 90 26
295172317.292209391.391149213.381344043.
Goods in transit 2962926.23 9805170.06
67444943
Semi-finished 87046434.8 85632110.3 113621240. 112706998.
1414324.51914242.37
goods 3 2 54 17
Low-value
2036927.652036927.652742435.822742435.82
consumables
15184800.315184800.3
Others 7568833.69 7568833.69
44
180293437156408182.164652619218861850156981100.203163740
Total
8.23875.362.58711.87
(2)Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Unit: RMB
Increase Decrease
Beginning
Item Reversal or Ending balance
balance Withdrawal Other Other
write-off
Raw materials 6893242.38 3250464.48 498395.96 9645310.90
Inventory 139368445. 13794313.6 10777138.3 142385621.goods 90 4 1 23
Goods in transit 9805170.06 6842243.83 2962926.23
Semi-finished
914242.37500423.64341.501414324.51
goods
156981100.17545201.718118119.6156408182.
Total
716087
For the Reporting Period the falling price reserves of inventory were accrued RMB17545201.76 reversed
RMB2968819.12 and verified RMB15149300.48.
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Naught
(4) Amortization Amount of Contract Performance Cost during the Reporting Period
Naught
10. Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Contract assets 6074305.63 920946.65 5153358.98 6074305.63 607430.56 5466875.07
Total 6074305.63 920946.65 5153358.98 6074305.63 607430.56 5466875.07
5 7Amount of significant changes in carrying value of contract assets in the Reporting Period and reasons thereof:
Naught
If the bad debt provision for contract assets in accordance with the general model of expected credit losses the
information related to the bad debt provision shall be disclosed by reference to the disclosure method of other
receivables:
□Applicable □ Not applicable
Withdrawal of impairment provision for contract assets in the Reporting Period
Unit: RMB
Item Withdrawal Reversal Verification Reason
Normal withdrawal at
Contract assets 313516.09
aging
Total 313516.09
11. Held-for-Sale Assets
Unit: RMB
Ending Estimated
Depreciation Ending Estimated
Item carrying Fair value disposal
reserves carrying value disposal time
amount expense
Houses
buildings and 17147339.8 17147339.8 183855895. 55718333.9 31 December
land involved 4 4 00 5 2023
in expropriation
17147339.817147339.8183855895.55718333.9
Total
44005
Other notes:
Note: For details see Part X-XVI.Other Major Events-8.Other: "Demolition Matters of Nanjing Fozhao" of this
Report. The estimated disposal costs include employee resettlement fees compensation for the termination of
the original tenant's contract and taxes related to the proceeds of demolition.
12. Current Portion of Non-current Assets
Naught
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Large bank certificates of deposit (note) 100000000.00
Input tax of VAT to be certified and
63856804.7872851826.53
deducted
Advance payment of enterprise income
5462208.913676607.32
tax
Others 3696897.95 2910143.04
Total 173015911.64 79438576.89
5 8Note: refer to large bank certificates of deposit matured over three months which can be transferred but not be
redeemed in advance.
14. Investments in debt obligations
Naught
15. Other Investments in Debt Obligations
Naught
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
Increase/decrease
Gains
Ending
and Cash
Beginni Adjust Withdra balance
losses bonus Ending
ng Additio Reduce ment of Change wal of of
Investe recogni or balance
balance nal d other s of depreci depreci
es zed profits Other (carryin
(carryin investm investm compre other ation ation
under announ g value)
g value) ent ent hensive equity reserve reserve
the ced to
income s s
equity issue
method
I. Joint ventures
II. Associated enterprises
Shenzh
en
Primatr
onix 18193 18311
1186
(Nanho 1792. 7824.)031.536619
Electro
nics
Ltd.
1819318311
Subtota 1186
1792.7824.
l 031.53
6619
1819318311
1186
Total 1792. 7824.
031.53
6619
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Gotion High-tech Co. Ltd. 473235307.42 493967194.53
Xiamen Bank Co.Ltd. 287939745.30 328664290.95
Guangdong Rising Finance Co. Ltd. 30000000.00 30000000.00
Beijing Guangrong Lianmeng
7078568.808059860.92
Semiconductor lighting Industry
5 9Investment Center(L.P.)
Foshan Nanhai District United
Guangdong New Light Source Industry 3000000.00 3000000.00
Innovation Center
China Guangfa Bank Co.Ltd. 500000.00 500000.00
Total 801753621.52 864191346.40
Disclosure of non-trading equity instrument investment by items
Unit: RMB
Reason for
Amount of assigning to Reason for
other measure in fair other
Dividend comprehensive value and the comprehensive
Accumulative Accumulative
Item income income changes income
gains losses
recognized transferred to included in transferred to
retained other retained
earnings comprehensive earnings
income
Not satisfied
with the
Gotion High-
390220822.29 condition of
tech Co. Ltd. trading equity
instrument
Not satisfied
with the
Xiamen Bank
16633969.35 134982138.47 condition of
Co.Ltd. trading equity
instrument
Beijing
Guangrong
Lianmeng Not satisfied
with the
Semiconductor
52364.46 653627.87 condition of
lighting trading equity
Industry instrument
Investment
Center(L.P.)
Not satisfied
Guangdong with the
Rising Finance 4080.96 condition of
Co. Ltd. trading equity
instrument
19. Other Non-current Financial Assets
Naught
20. Investment Property
(1)Investment Property Adopting the Cost Measurement Mode
□ Applicable □ Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
progress
I. Original carrying
value
1. Beginning balance 54404787.78 54404787.78
6 02. Increased amount of
the period
(1) Outsourcing
(2) Transfer from
inventories/fixed
assets/construction in
progress
(3) Enterprise
combination increase
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 54404787.78 54404787.78
II. Accumulative
depreciation and
accumulative
amortization
1. Beginning balance 9792905.34 9792905.34
2. Increased amount of
1245165.951245165.95
the period
(1) Withdrawal or
1245165.951245165.95
amortization
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance 11038071.29 11038071.29
III. Depreciation
reserves
1. Beginning balance
2. Increased amount of
the period
(1) Withdrawal
3. Decreased amount of
the period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying
43366716.4943366716.49
value
2. Beginning carrying
44611882.4444611882.44
value
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable □ Not applicable
(3) Investment Property Failed to Accomplish Certification of Property
Naught
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 3362929170.95 3505729627.80
Disposal of fixed assets 2698921.34 2364654.61
6 1Total 3365628092.29 3508094282.41
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Other(Note) Total
buildings equipment equipment equipment
I. Original
carrying value
1. Beginning 1945505958. 5026525744. 7173744661.
42934087.9471546378.9787232491.32
balance 75 08 06
2. Increased
amount of the 12588085.08 107093477.39 1240590.88 2770437.76 1010300.93 124702892.04
period
22416839.627977891.2
(1) Purchase 1707909.03 1230973.46 2200324.01 421845.13
36
(2) Transfer
from 83014052.5 94903443.2
10738504.05569758.82581127.85
construction in 5 7
progress
(3) Others 141672.00 1662585.21 9617.42 354.93 7327.95 1821557.51
3. Decreased
amount of the 4301800.00 34205228.18 1698224.38 45882.86 1472933.96 41724069.38
period
(1) Disposal or
4301800.0031285387.931698224.3845882.861424801.8238756096.99
scrap
(2) Equipment
198725.3148132.14246857.45
transformation
(3) Others 2721114.94 2721114.94
4. Ending 1953792243. 5099413993. 7256723483.
42476454.4474270933.8786769858.29
balance 83 29 72
II.Accumulative
depreciation
1. Beginning 2779752635. 3656540089.
721782611.6733394916.4052921576.9368688348.72
balance 53 25
2. Increased
amount of the 40831789.42 213421265.70 1198443.95 3180364.58 3872346.01 262504209.66
period
(1) Withdrawal 40831789.42 210964319.41 1188969.19 3180014.92 3865126.77 260030219.71
(2) Transfer
from
2044078.822044078.82
construction in
progress
(3) Others 412867.47 9474.76 349.66 7219.24 429911.13
3. Decreased
amount of the 4227078.99 30998798.93 1613313.16 44465.80 1342263.27 38225920.15
period
(1) Disposal or
4086710.0029173107.691613313.1644465.801294709.4136212306.06
scrap
(2)
Equipment 149506.56 47553.86 197060.42
transformation
(3) Others 140368.99 1676184.68 1816553.67
4. Ending 2962175102. 3880818378.
758387322.1032980047.1956057475.7171218431.46
balance 30 76
III.Depreciation
reserves
1. Beginning
11129431.9469.83343855.061587.1811474944.01
balance
2. Increased 1500990.00 1500990.00
6 2amount of the
period
(1) Withdrawal 1500990.00 1500990.00
3. Decreased
amount of the
period
(1) Disposal or
scrap
4. Ending
12630421.9469.83343855.061587.1812975934.01
balance
IV. Carrying
value
1. Ending 1195404921. 2124608469. 3362929170.
9496337.4217869603.1015549839.65
carrying value 73 05 95
2. Beginning 1223723347. 2235643676. 3505729627.
9539101.7118280946.9818542555.42
carrying value 08 61 80
Note: Fixed Assets-Other refer to cooling system and sewage treatment station of NationStar Optoelectronics
and instruments and implement of Nanning Liaowang.
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Note
value depreciation reserves
Machinery
50680329.86 41182831.19 3651651.37 5845847.30 Idle
equipment
Electronic
7785983.92 7370095.02 342427.13 73461.77 Idle
equipment
Transportation
137560.60 130682.57 69.83 6808.20 Idle
equipment
Others 3645.30 1875.86 1587.18 182.26 Idle
Total 58607519.68 48685484.64 3995735.51 5926299.53
(3) Fixed Assets Leased out by Operation Lease
Naught
(4) Fixed Assets Failed to Accomplish Certification of Property
The Company's Fuwan Standard Workshop J3 Fuwan Standard Workshop K1 Building 8 of Gaoming Family
Dormitory Fuwan Staff Dormitory Building 7 Family Dormitory Building 3 to 6 Staff Village Dormitory
Building A Staff Village Dormitory Building 2 3 5 6 10 to 13 Staff Dormitory Building 1 to 4 Fuwan
Energy Saving Lamp Workshop 2 Glass Workshop 8 Glass Workshop 9 Fluorescent Lamp Workshop
Standard Workshop A led Workshop R&D Workshop 11 to 14 and R&D Workshop 18 have been completed
and put into use and carried forward fixed assets. As of 30 June 2023 the relevant real estate licenses are being
processed. The management believed that there are no substantive legal barriers to the handling of these title
certificates and it will not have a significant adverse impact on the normal operation of the Company.In addition the T5 warehouse in the North Zone the equipment warehouse the materials warehouse (east end
of the single-end workshop) the storage tank pond of the gas station in the North Zone the LPG station in the
North Zone the subsidiary warehouse of the new finished goods warehouse the 3662M2 new finished goods
warehouse and the assembly plant of Gaoming LED lamps have no property ownership certificates due to
6 3historical matters and these buildings and constructions are involved in the "pending expropriation" project
which is planned to be implemented by the relevant government departments as detailed in Note VII (31) Other
non-current assets.
(5) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Applying for scrapping indisposed
2698921.342364654.61
equipment
Total 2698921.34 2364654.61
22. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 1377403873.06 1282780335.14
Total 1377403873.06 1282780335.14
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserves amount reserves
Construction in 1378931428. 1377403873. 1284307890. 1282780335.
1527554.991527554.99
progress 05 06 13 14
1378931428.1377403873.1284307890.1282780335.
Total 1527554.99 1527554.99
05061314
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Propor
which:
tion of Capital
Accum amoun
accum ization
ulative t of
Transf Other ulative rate of
Beginn Increas amoun capital
erred decrea Ending invest Job interes Capital
ing ed t of ized
Item Budget in sed balanc ment schedu ts for resour
balanc amoun interes interes
fixed amoun e in le the ces
e t t ts for
assets t constr Report
capital the
uctions ing
ization Report
to Period
ing
budget
Period
Self-
Kelian 72673 56625 56970 36640 financi
345288.5890.00
Buildi 8900. 4746. 7364. 953.0 ng and
617.96%%
ng 00 61 57 2 Borro
wing
The Self-
1714 42130 42700 financi
Project 6157 45840 27.44 27.44 11008 72249
54670 8508. 7925. 3.52% ng and
of the 824.38 7.06 % % 5.00 .18
0.00 55 87 Borro
Geely wing
6 4Industr
ial
Park
FSLHa
inan 31040 37522 59621 97144 Self-
34.1161.00
Industr 0000. 769.1 359.8 128.9 financi
%%
ial 00 0 9 9 ng
Park I
The
smart
LED
Lighti
ng
Produc
tion
Plant 14827 68275 24759 93034 Self-
68.3983.00
in the 1900. 373.8 409.8 783.7 financi
%%
Gaomi 00 7 4 1 ng
ng
Produc
tion
Base
(1-3
buildin
gs)
Gaomi
ng 11500 73222 18438 91660 Self-
86.8887.00
office 0000. 239.6 005.8 245.5 financi
%%
buildin 00 9 4 3 ng
g
FSL
intellig
ent
89680 23808 23808 Self-
manuf 30.00 30.00
000.0 849.5 849.5 financi
acturin % %
0 7 7 ng
g
factory
project
The
LED
R&D
and
Produc
tion
Base
on 26632 12629 18382 1932 10782 Self-
905178.0078.00
Jihua 094.6 643.7 287.9 3976 824.7 financi
30.42%%
Secon 2 7 1 .47 9 ng
d
Road.Others
(spora
dic
equip
ment)
The 91341 11803 89667 5294 7406 97.83 97.83 Self-
Project 2500. 833.6 1.28 232.63 272.34 % % financi
6 5of 00 9 ng
Produc
tion
Expan
sion of
Packag
ing
Comp
onents
and
Chips
of
New-
genera
tion
LEDs
Color
paint Self-
529210583695475389.8290.00
line financi
035.40407.06139.30546.36%%
equip ng
ment
Self-
F1Line 6476 1715 1718 3433 53.02 80.00
financi
body 106.19 867.26 051.72 918.98 % %
ng
AP[20
22]043
Self-
-40533242324280.0090.00
financi
Spray- 097.35 478.00 478.00 % %
ng
Paint
Lines
Tederi
c
20220
70501- Self-
309718581002286092.3690.00
1920T financi
345.13407.08358.64765.72%%
injecti ng
on
machi
ne
Synchr
onous
laser
weldin
Self-
g 3672 2707 2330. 2710 73.80 80.00
financi
machi 566.37 964.54 10 294.64 % %
ng
ne
/Vibrat
ion
A8SR
The
Project
of
20390 Self-
Produc 43008 94336 43008 94336 50.79 50.79
000.0 financi
tion 8.50 2.85 8.51 2.84 % %
0 ng
Expan
sion of
Chip
6 6LED
40871225139062550133836751
905172249
Total 66324 83917 9419. 6704 49676 038.0
30.42.18
5.067.2971.671.912
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught
(4) Engineering Materials
Naught
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable □ Not applicable
(2) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable □ Not applicable
24. Oil and Gas Assets
□Applicable □ Not applicable
25. Right-of-use Assets
Unit: RMB
Item Houses and buildings Land use right Total
I. Original carrying value
1. Beginning balance 21717402.95 19090760.38 40808163.33
2. Increased amount of the
919748.13919748.13
period
(1) Leased in 919748.13 919748.13
3. Decreased amount of the
36010.1436010.14
period
4. Ending balance 22601140.94 19090760.38 41691901.32
II. Accumulated amortization
1. Beginning balance 9106242.62 18654192.98 27760435.60
2. Increased amount of the
3776607.81436567.404213175.21
period
(1) Withdrawal 3776607.81 436567.40 4213175.21
3. Decreased amount of the
114465.60114465.60
period
4. Ending balance 12768384.83 19090760.38 31859145.21
III. Depreciation reserves
1. Beginning balance
2. Increased amount of the
period
6 7(1) Withdrawal
3. Decreased amount of the
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying value 9832756.11 9832756.11
2. Beginning carrying value 12611160.33 436567.40 13047727.73
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent
Item Land use right Patent Software Others (note) Total
technology
I. Original
carrying value
1. Beginning
408013759.6924198472.7435318404.4449109.90467579746.77
balance
2. Increased
amount of the 350661.10 3435711.18 3786372.28
period
(1)
350661.103435711.183786372.28
Purchase
(2)
Internal R&D
(3)
Business
combination
increase
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
408364420.7924198472.7438754115.6249109.90471366119.05
balance
II. Accumulated
amortization
1. Beginning
86226483.3324002566.6416746120.6649109.90127024280.53
balance
2. Increased
amount of the 3948502.13 91046.90 2098950.49 6138499.52
period
(1)
3948502.1391046.902098950.496138499.52
Withdrawal
3. Decreased
amount of the
period
(1)
Disposal
4. Ending
90174985.4624093613.5418845071.1549109.90133162780.05
balance
III.Depreciation
reserves
1. Beginning
388613.87388613.87
balance
2. Increased
amount of the
period
68(1)
Withdrawal
3.
Decreased
amount of the
period
(1)
Disposal
4. Ending
388613.87388613.87
balance
IV. Carrying
value
1. Ending
318189435.33104859.2019520430.60337814725.13
carrying value
2. Beginning
321787276.36195906.1018183669.91340166852.37
carrying value
The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending balance of
intangible assets was 0.00%.
(2) Land Use Right with Certificate of Title Uncompleted
Naught
Other notes:
Note: “Intangible Assets-Others” mainly refers to the emission right of Nanning Liaowang recognized in 2022.
27. Development Costs
Naught
28. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Name of the Increase Decrease
invested units
Beginning Formed by
or events Ending balance
balance business Disposal
generating
combination
goodwill
Nanning
Liaowang Auto 16211469.82 16211469.82
Lamp Co. Ltd.Foshan
NationStar
405620123.64405620123.64
Optoelectronics
Co. Ltd. (note)
Total 421831593.46 421831593.46
6 9Note: Guangdong Electronics Information Industry Group Ltd. a wholly-owned subsidiary of Guangdong
Rising Holdings Group Co. Ltd. acquired NationStar Optoelectronics in 2014 and the difference between the
fair value and the net assets attributable to shareholders of the listed company at the date of acquisition of
NationStar Optoelectronics resulted in a goodwill of RMB405620123.64.
(2) Goodwill impairment provisions
Naught
29. Long-term Prepaid Expense
Unit: RMB
Amortization
Other decreased
Item Beginning balance Increased amount amount of the Ending balance
amount
period
Mould 123701355.84 19318247.77 18177894.17 16664943.47 108176765.97
Expense on
maintenance and 53937007.68 11981690.98 11125457.79 54793240.87
decoration
Boarding box 371728.64 310440.16 185274.05 496894.75
Other 12116535.75 599459.45 4303862.82 8412132.38
Total 190126627.91 32209838.36 33792488.83 16664943.47 171879033.97
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for
369692376.9355910294.84355634218.1653741627.33
impairment of assets
Unrealized profit of
45049689.586117103.5552989043.647948356.52
internal transactions
Deductible loss 59430734.45 10501457.66 72901011.65 12503679.82
Depreciation of fixed
56881472.258532220.8557459943.558618991.55
assets
Change in fair value of
23814503.383572175.515013923.26752088.49
trading financial assets
Lease liabilities 9756245.93 1463436.88 12273129.57 1799787.39
Accrued liabilities 9518319.01 1427747.85 9579783.06 1436967.46
Long-term deferred
3888860.58583329.09
expenses
Others 44091211.68 6614523.28 18675496.41 2802165.99
Total 618234553.21 94138960.42 588415409.88 90186993.64
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
7 0difference liabilities difference liabilities
Assets assessment
appreciation from
business consolidation 86121665.67 12918249.86 88576232.73 13286434.92
not under the same
control
Changes in fair value
of other investments in 519352960.75 77902944.12 580809393.51 87121409.03
equity instruments
One-off depreciation of
690169165.63103525374.85680398140.98102059721.15
fixed assets
Right-of-use assets 9681614.81 1452242.22 13047727.73 1901566.58
Book-tax difference in
depreciation period of 1194076.92 298519.23
fixed assets
Changes in the fair
value of trading 14216.68 2132.50 14216.68 2132.50
financial assets
Total 1306533700.46 196099462.78 1362845711.63 204371264.18
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount Amount of deferred Mutual set-off amount Amount of deferred
of deferred income tax income tax assets or of deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set assets and liabilities at liabilities after off-set
the period-end at the period-end the period-begin at the period-begin
Deferred income tax
94138960.4290186993.64
assets
Deferred income tax
196099462.78204371264.18
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
Naught
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
Naught
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserve amount reserve
Advance
payment for 35069785.3 35069785.3 44132869.2 44132869.2
equipment and 6 6 6 6
project
Long-term
assets to be 40230664.8 40230664.8 36553212.6 36553212.6
disposed (note 4 4 4 4
1)
7 1Prepayments
for equity 10000000.0 10000000.0 10000000.0 10000000.0
acquisition 0 0 0 0
(note 2)
Assets of
subsidiaries to
510864.76510864.76613072.43613072.43
be cleared and
cancelled
Other 407032.79 407032.79 244358.52 244358.52
86218347.710000000.076218347.791543512.810000000.081543512.8
Total
505505
Other notes:
Note 1: The Company intends to hand over the plots of land located on the south and north sides of the Gongye
Road to the government for revitalisation in the form of "pending expropriation". When the government
successfully sells the plots through a public auction the Company will be given the compensation for the land
transfer according to the policy. The buildings and constructions to be revitalized include the plant of LED
Workshop 3 the added plant of LED Workshop 3 South Plant (single-end workshop) North Plant (4 buildings)
spark plug workshop of energy-saving lamps warehouse T8 Workshop 1 (Building 2) LED Workshop 2
Iodine Lamp Workshop 3155m (building 14) the Company's new finished goods warehouse 3662M2 materials
warehouse (east end of single-end workshop) North Zone LPG station T5 warehouse in the North Zone etc.Note 2: The Company's subsidiary NationStar Optoelectronics entered into the Capital Injection Agreement
with Nanyang Xicheng Technology Co. Ltd. (Xicheng Tech). NationStar Optoelectronics paid RMB10 million
for capital injection. Later the agreement was re-signed to change the investment method. In order to address
issues related to the above payment NationStar Optoelectronics filed a lawsuit with the court claiming the
return of the above payment for capital injection. Currently the court has rejected the claim. As of the end of
the Reporting Period the impairment provision had been set aside in full.
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage loans 118330000.00 100000000.00
Credit loans 72596526.02 37596526.02
Acceptance bill discount 20000000.00
Interest from short-term borrowings 118833.33
Total 190926526.02 157715359.35
Note:
For details about the collateral for mortgage loans please refer to XIV-(III) Other in Part X.
(2) List of the Short-term Borrowings Overdue but not Returned
Naught
7 233. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
Trading financial liabilities 23741475.00 4679000.00
Including:
Other (note) 23741475.00 4679000.00
Including:
Total 23741475.00 4679000.00
note: refer to losses on changes in fair value arising from the Company’s hedge instruments.
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 1786199423.18 1923641752.28
letter of credit 67154037.47 52101816.43
Total 1853353460.65 1975743568.71
The total amount of the due but not paid notes payable at the end of the period was of RMB0.00.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Accounts payable 2437263015.38 2513177458.14
Total 2437263015.38 2513177458.14
(2) Significant Accounts Payable Aging over One Year
Unit: RMB
Item Ending balance Unpaid/ Un-carry-over reason
Supplier A 53874419.09 It has not reached the settlement period
Supplier B 11091750.64 Unsettled for bankruptcy
Supplier C 5468703.00 Quality guarantee deposit
Supplier D 4249699.04 It has not reached the settlement period
Supplier E 3560177.00 It has not reached the settlement period
Supplier F 2702000.00 It has not reached the settlement period
Total 80946748.77
7 337. Advances from Customer
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 196200.00 2532442.44
Total 196200.00 2532442.44
(2) Significant Advances from Customers Aging over One Year
Naught
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Advances on sales 131700995.68 125143161.61
Total 131700995.68 125143161.61
39. Employee Benefits Payable
(1) List of Employee Benefits Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 168935119.49 625092899.71 633858737.63 160169281.57
II. Post-employment
benefit-defined 3890071.51 54523735.92 56433980.29 1979827.14
contribution plans
III. Termination
208961.18426638.74484638.74150961.18
benefits
IV. Current portion of
93935.6693935.66
other benefits
Total 173034152.18 680137210.03 690871292.32 162300069.89
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary bonus
164655970.83547553308.79555725501.76156483777.86
allowance subsidy
2. Employee welfare 666925.03 28195163.27 28212291.70 649796.60
3. Social insurance 1367698.57 26368995.25 27213373.53 523320.29
Of which: Medical
1200640.7826446761.7527295390.84352011.69
insurance premiums
Work-related
167057.791496952.651492701.84171308.60
injury insurance
Others 31534.96 31534.96
4. Housing fund 458956.38 17705004.42 17708217.38 455743.42
5. Labor union budget
1785568.685270427.984999353.262056643.40
and employee
7 4education budget
Total 168935119.49 625092899.71 633858737.63 160169281.57
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
3658022.9249996646.1651971231.591683437.49
benefits
2. Unemployment
131643.991354271.201378298.97107616.22
insurance
3. Annuity 100404.60 3172818.56 3084449.73 188773.43
Total 3890071.51 54523735.92 56433980.29 1979827.14
Other notes:
The Company participates in the scheme of pension insurance and unemployment insurance established by
government agencies as required. According to the scheme fees are paid to it on a monthly basis and at the rate
of stipulated by government agencies. In addition to the above monthly deposit fees the Company no longer
assumes further payment obligations. Corresponding expenses are recorded into the current profits or losses or
the cost of related assets when incurred.
40. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
VAT 35873033.86 35832025.02
Corporate income tax 23568788.01 9503893.79
Personal income tax 1695872.03 2569142.68
Urban maintenance and construction tax 2828109.38 2934691.53
Property tax 7925415.89 8147187.30
Land use tax 2880439.83 1817585.50
Education surcharge 1421991.02 2015767.71
Other 2039570.72 1475258.57
Total 78233220.74 64295552.10
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Dividends payable 134915110.77 15646.07
Other payables 510821537.76 440214434.98
Total 645736648.53 440230081.05
(1) Interest Payable
Naught
(2) Dividends Payable
Unit: RMB
Item Ending balance Beginning balance
Ordinary share dividends 134915110.77 15646.07
Total 134915110.77 15646.07
7 5(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Payment for equity transfer 134409650.00 134409650.00
Account current 142100932.05 133618069.56
Performance bond 75214029.74 67039416.12
Relevant expense of sales 72952540.76 29232738.55
Payments for demolition 36734144.44 36734144.44
Other 49410240.77 39180416.31
Total 510821537.76 440214434.98
2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
Unit A 115352181.20 Unsettled
Unit B 5752000.00 Unsettled for involving in lawsuits
Total 121104181.20
42. Liabilities Held for sale
Naught
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term borrowings 60085490.98 60322923.28
Current portion of lease liabilities 3387753.54 5217587.39
Total 63473244.52 65540510.67
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT and
9938765.608370764.15
others
Reversed notes that are endorsed and
126199563.8691821916.85
undue
Total 136138329.46 100192681.00
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
7 6Mortgage loans 8268725.21
Credit borrowings 545179623.61 808253946.99
Less: Current portion of long-term
60085490.9860322923.28
borrowings
Total 493362857.84 747931023.71
46. Bonds Payable
Naught
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 9865686.02 12273129.57
Less: current portion of lease liabilities 3387753.54 5217587.39
Total 6477932.48 7055542.18
48. Long-term Payables
Naught
49. Long-term Employee Benefits Payable
Naught
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Withdrawal of customers’
Product quality assurance 9518319.01 9587043.31 claims for quality and product
quality assurance expenses
Total 9518319.01 9587043.31
51. Deferred Income
Unit: RMB
Reason for
Item Beginning balance Increase Decrease Ending balance
formation
Government
Government grants 97078233.43 2331221.32 18548967.01 80860487.74
allocations
Total 97078233.43 2331221.32 18548967.01 80860487.74
Item involving government grants:
Unit: RMB
Amo Amount Am Rela
unt recorded into ount ted
Beginning Amount of Other
Item reco other income in offs Ending balance to
balance newly subsidy changes
rded the Reporting et asset
into Period cost s/rel
7 7non- in ated
oper the to
ating Rep inco
inco ortin me
me g
in Peri
the od
Rep
ortin
g
Peri
od
Government
grants related to 88313595.06 1708400.00 15456657.30 208250.00 74357087.76
assets
The Projects of
the Production
Expansion and Rela
Technological ted
Transformation 18133049.12 2032275.84 16100773.28 to
of Components asset
of Small-spacing s
and Outdoor
LED Displays
The Subsidy for
Rela
Metal-organic
ted
Chemical
22090261.99 8258085.76 13832176.23 to
Vapour
asset
Deposition
s
(MOCVD)
The Project of
the Innovation in
Packaging
Technology and
Technological
Rela
Transformation
ted
of Key
5489382.21 685509.34 4803872.87 to
Packaging
asset
Equipment of
s
LEDs with High
Colour
Rendering Index
for Illumination
(Phase II)
The Project of
the Innovation in
Packaging
Technology and
Technological Rela
Transformation ted
of Key 3933305.60 328521.60 3604784.00 to
Packaging asset
Equipment of s
LEDs with High
Colour
Rendering Index
for Illumination
The Project of Rela
4249848.44904683.723345164.72
Resource ted
7 8Conservation to
and asset
Environmental s
Protection
The Project of
the Innovation in
Packaging
Technology and
Rela
Technological
ted
Transformation
3477734.25 240686.70 3237047.55 to
of Key
asset
Packaging
s
Equipment of
LEDs with
Small Spacing
for Display (II)
The First Batch
of 2022 Special
Funds for Rela
Industrial ted
Technological 2304000.01 127999.98 2176000.03 to
Transformation asset
by the Finance s
Bureau of Liang
Jiang New Area
Research on
Key
Technologies of
the Third Rela
Generation of ted
High Frequency 1771946.26 33235.86 1738710.40 to
Semiconductor asset
Electronic s
Power Module
in Colleges and
Universities
The Second
Batch of Support
Funds for the
"Technological Rela
Transformation ted
of Thousands of 1766666.62 100000.02 1666666.60 to
Enterprises" in asset
the Guangxi s
Zhuang
Autonomous
Region for 2021
The 2019
Second Batch of
Rela
Special Funds of
ted
RMB3 million
1800000.00 150000.00 1650000.00 to
for the Industrial
asset
and Information
s
Development of
the City
The First Batch Rela
1766666.89199999.981566666.91
of Special Funds ted
7 9for the Industrial to
and Information asset
Development for s
the Guangxi
Zhuang
Autonomous
Region for 2017
(Technological
Transformation)
for Liuzhou
Guige
The Project of
the Innovation in
Packaging
Technology and
Rela
Technological
ted
Transformation
1801098.21 269756.22 1531341.99 to
of Key
asset
Packaging
s
Equipment of
LEDs with
Small Spacing
for Display
The Project of
the First Batch
Rela
of Support
ted
Funds for
1500000.00 150000.00 1350000.00 to
Enterprises in
asset
Liuzhou City for
s
2017 for
Liuzhou Guige
Carrying
forward the
Research and
Development
and Rela
Industrialization ted
of Potassium 970982.10 56798.76 914183.34 to
Nitride-based Rf asset
Devices in the s
Field of Next
Generation
Mobile
Communication
The 2019 14th
Rela
Batch of
ted
Industrial
900000.00 75000.00 825000.00 to
Support Funds
asset
of RMB1.5
s
million
The Project of
Rela
Support Funds
ted
for Enterprises
716666.61 100000.02 616666.59 to
in Liuzhou City
asset
for 2020 for
s
Liuzhou Guige
The First Batch 630000.00 34999.98 595000.02 Rela
8 0of 2022 Special ted
Funds for Micro to
Small and asset
Medium s
Enterprises
The Project of
the Third Batch
of Special Funds
of Innovation-
Rela
driven
ted
Development for
616000.00 48000.00 568000.00 to
the Guangxi
asset
Zhuang
s
Autonomous
Region for 2018
for Liuzhou
Guige
The Project of
Financial
Support for
Developing Rela
Liuzhou City ted
into an Industrial 579333.28 79000.02 500333.26 to
Internet of asset
Things (IIOT) s
Demonstration
City for 2021 for
Liuzhou Guige
The Key Labs of
Semiconductor Rela
Micro Display ted
Enterprises in 510000.00 37718.70 472281.30 to
Guangdong asset
Province (for s
2020)
The
Demonstration
Rela
of Industrial
ted
Internet of
515334.44 67332.78 448001.66 to
Things (IIOT)
asset
Applications for
s
LED Production
Control
The Light-
Rela
converting Films
ted
and Components
734299.34 294038.46 440260.88 to
of Highly
asset
Efficient White-
s
light LEDs
The Project of
Key
Rela
Technologies
ted
and
441240.00 30495.00 410745.00 to
Industrialisation
asset
of Silica-based
s
Gallium Nitride
Power
8 1Components
The Project of
Research and
Development
and
Industrialisation
Rela
of NB-IoT-based
ted
Multi-Mode
399557.60 18915.90 380641.70 to
Low-Power
asset
Wide-Area
s
Internet of
Things Node
Chips and
Packaging
Technology
The Project of
the First Batch
Rela
of Support
ted
Funds for
349999.85 28000.02 321999.83 to
Enterprises in
asset
Liuzhou City for
s
2018 for
Liuzhou Guige
The
Industrialisation
Rela
of LED Flip-
ted
chips and Light
366784.04 54586.26 312197.78 to
Source Modules
asset
for the Backlight
s
of Large-size
LCDs
The
Construction
Project for the Rela
Centre for ted
Cultivating and 300000.00 300000.00 to
Arranging High- asset
Value Patents of s
NationStar
Optoelectronics
Rela
ted
Others 10499438.20 1408400.00 1051016.38 208250.00 10648571.82 to
asset
s
Government
grants related to 8764638.37 622821.32 2884059.71 6503399.98
income
The Research on
the Key
Technology of Rela
4K/8K Full- ted
colour Micro- 3407456.55 1338901.10 2068555.45 to
LED Displays inco
with Ultra High me
Definition
(UHD)
8 2The Research
on Full-colour
Rela
and Integrated
ted
Packaging of
1826069.52 116069.52 1710000.00 to
Micro-LED
inco
Display with
me
High Brightness
and Contrast
The Innovation
Fund for Rela
Enterprises in ted
Liudong New 750000.00 75000.00 675000.00 to
Area for 2017 inco
for Liuzhou me
Guige
The Fund for
the Intelligent
Rela
Transformation
ted
and Upgrading
555333.26 34000.02 521333.24 to
Projects of
inco
Automobile
me
Enterprises for
2021
The Fund for
the Project of the
Management Rela
Committee of ted
the Liuzhou 512000.08 31999.98 480000.10 to
High-tech inco
Industrial me
Development
Zone
The Special
Fund of the
Science and
Technology
Department of Rela
the Guangxi ted
Zhuang 400000.00 30000.00 370000.00 to
Autonomous inco
Region for me
Innovation-
driven
Development for
2020
LED
Technology for
Efficient Rela
Cultivation in ted
Modern 440000.00 79614.21 360385.79 to
Agriculture and inco
Its me
Demonstrative
Application
Rela
Others 1313778.96 182821.32 1178474.88 318125.40 ted
to
8 3inco
me
Total 97078233.43 2331221.32 18340717.01 208250.00 80860487.74
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT 205769.48 307696.87
Liabilities of subsidiaries to be cleared
537.611083.74
and cancelled
Total 206307.09 308780.61
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning Ending
New shares Bonus issue
balance Bonus shares Other (note) Subtotal balance
issued from profit
The sum of 136199464 136199464
shares 7.00 7.00
Other notes:
Beginning balance Ending balance
Item/Investor Increase Decrease
Invested amount Proportion Invested amount Proportion
Restricted shares 10753658.00 0.79% 10753658.00 0.79%
Unrestricted shares 1351240989.00 99.21% 1351240989.00 99.21%
Total 1361994647.00 100.00% 1361994647.00 100.00%
54. Other Equity Instruments
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Other capital reserves 7245971.54 7245971.54
Total 7245971.54 7245971.54
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease (note) Ending balance
Treasury shares (A-
82165144.1582165144.15
share)
Total 82165144.15 82165144.15
57. Other Comprehensive Income
Unit: RMB
8 4Reporting Period
Less: Less:
Recorded Recorded
in other in other
comprehen comprehen Attributabl
Income sive sive e to owners Attributabl
Beginning before income in income in Less: of the e to non- Ending
Item
balance taxation in prior period prior period Income tax Company controlling balance
the Current and and expense as the interests
Period transferred transferred parent after after tax
to profit or to retained tax
loss in the earnings in
Current the Current
Period Period
I. Other
comprehen
sive
income that
---
may not 4986604 4464225
614564392184645223796
subsequentl 84.47 16.62
y be 2.76 .91 7.85
reclassified
to profit or
loss
Changes in
fair value - - -
49866044464225
of other 6145643 9218464 5223796
84.4716.62
equity 2.76 .91 7.85
instrument
investment
II. Other
comprehen
sive
income that
-
may 2437098 1298317 1138780 778851.7
519465.7
subsequentl .47 .50 .97 3
y be 7
reclassified
to profit or
loss
Differences
arising
from -
translation 2437098 1298317 1138780 778851.7
519465.7
of foreign .47 .50 .97 3
currency- 7
denominate
d financial
statements
Total of
other - - -
498141011387804472013
comprehen 5901933 9218464 5093965
sive 18.70 .97 68.35 4.29 .91 0.35
income
58. Specific Reserve
Naught
8 559. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
49678756.1949678756.19
reserves
Discretionary surplus
41680270.9641680270.96
reserves
Total 91359027.15 91359027.15
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings
3296435828.503111864076.86
before adjustments
Beginning balance of total retained
earnings of adjustments (“+” for 18918.22increase “-“ for decrease)Beginning balance of retained earnings
3296435828.503111882995.08
after adjustments
Add: Net profit attributable to owners of
168935232.54230320570.67
the Company as the parent
Less: Withdrawal of statutory surplus
11785496.74
reserves
Dividend of ordinary shares
134899464.70134899464.70
payable
Add: Others (note) 100917224.19
Ending retained earnings 3330471596.34 3296435828.50
Note: Others refer to the retained earnings transferred from accumulative fair value changes previously included in other
comprehensive income when selling stocks in the same period of last year.List of adjustment of beginning retained earnings:
(1) RMB18918.22 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting
Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 4405159052.69 3604574132.92 4282577147.55 3545848583.67
Other operations 160903676.33 128900695.96 150754245.87 108212784.36
Total 4566062729.02 3733474828.88 4433331393.42 3654061368.03
Relevant information of revenue:
Unit: RMB
Category of contracts Total
8 6Types of products 4566062729.02
Of which:
General lighting products 1792551295.05
LED packaging and component products 1253523386.12
Vehicle lamp products 806133465.65
Trade and other products 713854582.20
By operating places 4566062729.02
Of which:
Domestic 3478275919.17
Overseas 1087786809.85
Information related to performance obligations:
Naught
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB251621886.53.
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 11300137.99 7589677.86
Education surcharge 5980104.43 4217219.09
Resources tax
Property tax 11009535.41 7584289.36
Land use tax 3483007.51 3046600.37
Vehicle and vessel use tax 11986.96 16021.56
Stamp duty 3297666.10 3690824.51
Local education surcharge 2165938.97 997922.28
Deed tax 146289.40
Environmental protection tax 41537.23 37241.04
Embankment fee 128.45
VAT of land -2047738.45
Water conservancy construction funds 191148.44
Resources tax 35167.94
Others 6966.68 176041.81
Total 37443299.13 25534415.81
Other notes:
It was mainly because of the land appreciation tax accrued for the sale of real estate in 2021. The over-accrued
land appreciation tax of RMB2047738.45 was released when the actual payment was made in previous period.
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 57961009.41 56515402.06
Business propagandize fees and
30216805.2620532657.97
advertizing fees
Sales promotion fees 7233896.10 5847930.26
After-sales expenses 6867083.35 4669333.02
Business travel charges 4858839.15 2105508.78
Commercial insurance premium 3582158.77 2387669.16
8 7Office expenses 2944396.54 1630996.07
Other 18256941.42 17579751.25
Total 131921130.00 111269248.57
64. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 125958952.18 115142871.77
Depreciation charge 25811976.14 20892696.89
Office expenses 13062802.09 10109798.15
Engineering decoration cost 6357723.64 2822639.45
Amortization of intangible assets 4630270.87 5813822.32
Utilities 4491149.48 3880679.53
Intermediary agency fee 4119910.31 5718962.01
Labor cost 1731130.54 3618646.20
Rent of land and management charge 1104528.44 418417.45
Security fund for the disabled 102385.50 108310.68
Party building funds 87374.01 86660.10
Others 13487882.22 17694234.89
Total 200946085.42 186307739.44
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 108806040.39 97942302.07
Material consumption 59589273.57 62322047.45
Depreciation and long-term prepaid
22944479.8521427223.15
expense
Certification and testing fee 8136407.37 4983719.59
Expense on equipment debugging 2876742.82 3503274.86
Charges related to patents 951123.75 1323834.59
Others 22844837.51 21070591.27
Total 226148905.26 212572992.98
Other notes:
In respect of R&D expense incurred by the Company expense other than that on bench-scale and pilot-scale
production is included in R&D expense; and sales revenue of products from bench-scale and pilot-scale
production is included in core business revenue and the relevant costs are included in cost of sales of core
business.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest expense 14255244.44 7068335.84
Less: Interest income 24520047.73 13000154.06
Foreign exchange gains or losses -21315108.34 -19186490.71
Handling charge and others 1417289.22 880584.72
Total -30162622.41 -24237724.21
8 867. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
Carry-forward of government grants
14363657.2815831850.89
related to assets in the deferred income
Carry-forward of government grants
2713059.715665652.84
related to income in the deferred income
Policy Enjoyment of Preferential
Reduction and Exemption for the Poor 2247050.00
with Set up Files
Incentive Subsidy for Digital and
Intelligent Demonstration Workshop of 2000000.00
Foshan City in 2022
The Company received the N.C.G.J.[2022] No. 532 "the Subsidy for
Industrial Logistics in the Second
Quarter of 2022 " in Nanning City of the 808200.00
Management Committee of the Nanning
New & High-tech Industrial
Development Zone
Return of handling charges for
737693.991123272.73
withholding and remittance
The 2021 "100 Enterprises Strive for the
500000.00
First Place" bonus (partial)
Incentive for standard products of
400000.00
Foshan City
2022 Special Funds of Nanhai District
Foshan City for Promoting High-quality 347360.00
Development of Foreign Trade
The Company received the "2021
Inclusive Subsidy as an Encouragement
for Enterprises to Redouble R&D Input" 333200.00
from Nanning Science and Technology
Bureau.Subsidies for stabilizing employment 230154.25 1181087.47
The Special Fund for Promoting High-
10000.001842190.69
quality Economic Development
The Fund of Foshan City for Promoting
2000000.00
the Robot Application and Industry
The 2021 Support Fund of the Foshan
Municipal Financial Bureau for
Promoting the Digital Intelligent 2000000.00
Transformation of the Manufacturing
Industry in Foshan City
Grants awarded by the Guangzhou
Municipal Science and Technology
Bureau for the Research and
Development and Industrialisation 1800000.00
Project of Potassium Nitride-based Rf
Devices in the Field of Next Generation
Mobile Communication
The Special Support Fund for the
Industrial Internet of Things (IIOT)
Development in Foshan City for 2021 1320000.00
(the Special Project of IIOT
Demonstration) (the First Batch)
The Subsidy of the Chancheng District
Human Resources and Social Security
Bureau Foshan City for the Skill 1148000.00
Training of Millions of Workers for
March 2022
The Special Support Fund for the
Industrial Internet of Things (IIOT) 892500.00
Development in Foshan City
8 9The Special Fund for the Vocational
848000.00
Skill Improvement Campaign
The L.J.C.Y. [2021] No. 557 Industrial
Support Fund of the Finance Bureau of 610000.00
Liang Jiang New Area Chongqing
2021 Guangxi Digital Workshop Reward
500000.00
Funds
The Support Fund of the Administration
of the Chancheng Park of the Foshan
High-tech Industrial Development Zone 450000.00
for Champion Manufacturing Enterprises
in a Single Item for 2020
The First Batch of Subsidies for the
Special Project of SME Development
427200.00
and the Auxiliary Project of Industrial
Chain Collaboration for 2022
The Fund of the Organisation
Department of the Chancheng District
400000.00
Party Committee Foshan City China
for Competitive Talent Support Projects
The N.C.G.J. [2021] No. 452 "Fund for
Specialised and Refined Projects" of the
Management Committee of the Nanning 300000.00
New & High-tech Industrial
Development Zone
Others 2699616.82 2457536.33
Total 27389992.05 40797290.95
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
1186031.53650457.40
accounted by equity method
Investment income from disposal of
2154000.002019911.56
trading financial assets
Dividend income from holding of other
16686333.8116055272.93
equity instrument investment
Income received from financial products
2423205.29888102.97
and structural deposits
Total 22449570.63 19613744.86
69. Net Gain on Exposure Hedges
Naught
70. Gain on Changes in Fair Value
Unit: RMB
Sources Reporting Period Same period of last year
Trading financial assets 905952.44 35436.66
Of which: gains on changes in fair
905952.4435436.66
value of derivative financial instrument
Trading financial liabilities -23059475.00 -10802032.63
Total -22153522.56 -10766595.97
9 071. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss on other receivables 1237574.86 200770.69
Bad debt loss on accounts receivable -19672657.13 -10217235.78
Bad debt loss on notes receivable -512338.76 -229783.47
Total -18947421.03 -10246248.56
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
-14576382.64-19371287.36
contract performance cost
V. Loss on impairment of fixed assets -1500990.00 -3529839.61
XII. Loss on impairment of contract
-313516.09-439922.48
assets
Total -16390888.73 -23341049.45
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Disposal income of fixed assets 110475.52 82362.19
Total 110475.52 82362.19
74. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring profit or
loss
Government grants 11000.00 976090.45 11000.00
Total income from scrap of
37753.3243160.4337753.32
non-current assets
Of which: income from scrap
37753.3243160.4337753.32
of fixed assets
Income from default money 11400.00 165006.53 11400.00
Confiscated income 106635.54 106635.54
Other 2274125.62 7805761.20 2274125.62
Total 2440914.48 8990018.61 2440914.48
Government grants recorded into current profit or loss:
Unit: RMB
Whether
influence
Special Same Related to
Distributio Distributio the profits Reporting
Item Nature subsidy or period of assets/relat
n entity n reason or losses of Period
not last year ed income
the year or
not
9 1Job- Related to
Subsidy No No 11000.00
subsidy income
Supporting
fund for
Related to
industrial Subsidy No No 976090.45
income
developme
nt
75. Non-operating Expense
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Total losses on disposal of
1547347.795943227.861547347.79
non-current assets
Of which: Loss on disposal of
1547347.795731670.971547347.79
fixed assets
Loss on disposal of
0.00211556.890.00
intangible assets
Penalty 1748669.05 249481.71 1748669.05
Losses on inventories 310656.66 41677.65 310656.66
Delaying payment 94086.36 336802.22 94086.36
Others 1079810.46 1422977.18 1079810.46
Total 4780570.32 7994166.62 4780570.32
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 34309667.76 25762699.61
Deferred income tax expense -3005303.27 15649378.30
Total 31304364.49 41412077.91
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 256409652.78
Current income tax expense accounted at statutory/applicable
38461447.92
tax rate
Influence of applying different tax rates by subsidiaries 2365215.10
Influence of income tax before adjustment 670501.88
Influence of non-taxable income -3371201.39
Influence of non-deductable costs expenses and losses
The effect of using deductible losses of deferred income tax
-2559863.24
assets that have not been recognized in the previous period
Influence of unrecognized deductible temporary differences
9404147.48
and deductible losses
Influence of deduction -13665883.26
Income tax expense 31304364.49
9 277. Other Comprehensive Income
Refer to Note VII Notes to Main Items of Consolidated Financial Statements-57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Margin income 35010552.18 29429389.29
Deposit interest 19310323.07 12436698.44
Income from waste 12864885.36 16645457.85
Income from subsidy 10420346.33 35860211.37
Rental income from property and
3406219.564954716.14
equipment utility
Income from insurance compensation 1544.06 5333.08
Others 60093722.57 28190106.79
Total 141107593.13 127521912.96
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 56194828.30 51145137.99
Selling expense paid in cash 31789893.32 34441261.70
Finance costs paid in cash 1521292.79 843095.07
Returned cash deposit 28216695.73 36477347.32
Others 31773841.24 47741622.81
Total 149496551.38 170648464.89
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Unit: RMB
Item Reporting Period Same period of last year
Others 360759.99
Total 360759.99
(5) Cash Generated from Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Cash deposit collected 381437.71 53126214.00
Total 381437.71 53126214.00
9 3(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Payment for cash deposit of bank
2124043.19121.82
acceptance bills
Cash paid for acquisition of NationStar
1061968681.64
Optoelectronics under the same control
Others 179384.83 125624.96
Total 2303428.02 1062094428.42
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
flows generated from operating
activities:
Net profit 225105288.29 243546630.90
Add: Provision for impairment of assets 35338309.76 33587298.01
Depreciation of fixed assets oil-gas
261275385.66245702523.31
assets and productive living assets
Depreciation of right-of-use assets 4213175.21 4314025.31
Amortization of intangible assets 6138499.52 6259660.38
Amortization of long-term prepaid
33792488.8369990299.46
expenses
Loss from disposal of fixed assets
intangible assets and other long-term -110475.52 -82362.19
assets (gains: negative)
Losses from scrapping of fixed assets
1509594.475688510.54
(gains: negative)
Losses from changes in fair value (gains:
22153522.5610766595.97
negative)
Finance costs (gains: negative) 14255244.44 7068335.84
Investment loss (gains: negative) -22449570.63 -19613744.86
Decrease in deferred income tax assets
-3951966.782289157.80
(increase: negative)
Increase in deferred income tax liabilities
946663.5113172863.80
(“-” for decrease)
Decrease in inventory (“-” for increase) 367566004.75 119836200.96
Decrease in operating receivables (“-”
-492079133.11-211060931.19
for increase)
Increase in operating payables (“-” for
-65833973.76-354362573.03
decrease)
Others
Net cash generated from/used in
387869057.20177102491.01
operating activities
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Transfer of debts into capital
Current portion of convertible
corporate bonds
Fixed assets leased in for financing
3.Net increase/decrease of cash and cash
equivalents:
Ending balance of cash 1974721331.65 1435426956.09
9 4Less: Beginning balance of cash 1945971307.26 1940209052.92
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents 28750024.39 -504782096.83
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught
(3) Net Cash Received from Disposal of the Subsidiaries
Naught
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 1974721331.65 1945971307.26
Including: Cash on hand 45923.56 52093.54
Bank deposit on demand 1965961432.22 1944303946.03
Other monetary assets on
8713975.871615267.69
demand
III. Ending balance of cash and cash
1974721331.651945971307.26
equivalents
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
The Company and its subsidiaries’ cash
deposit for bank acceptance bills
Monetary assets 535698818.93 performance bonds forward exchange
settlement margin and L/C guarantee
deposits
Pledged notes and notes receivable not
Notes receivable 729042157.57
derecognized at period-end
Fixed assets 143870553.97 Related party mortgage guarantees see
Intangible assets 10808229.15 Part X-XIV-(III) Guarantees for details
Total 1419419759.62
9 582. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary assets 282980171.77
Of which: USD 35632247.28 7.2258 257471492.40
EUR 517843.84 7.8771 4079107.71
HKD 51805.21 0.92198 47763.37
IDR 44177289846.92 0.000484 21381808.29
Accounts receivable 457282454.03
Of which: USD 62710136.64 7.2258 453130905.33
EUR 241345.50 7.8771 1901102.64
HKD 65771.39 0.92198 60639.91
IDR 4524392871.90 0.000484 2189806.15
Other receivables 3412.31
Of which: IDR 7050231.60 0.000484 3412.31
Accounts payable 5966627.72
Of which: USD 647046.38 7.2258 4675427.73
EUR 600.00 7.8771 4726.26
IDR 2658003574.38 0.000484 1286473.73
Other current assets 683715.33
Of which: IDR 1412634975.71 0.000484 683715.33
Other non-current assets 510864.75
Of which: EUR 64854.42 7.8771 510864.75
Other non-current liabilities 966537.50
Of which: EUR 122702.20 7.8771 966537.50
(2) Notes to Overseas Entities Including: for Significant Oversea Entities Main Operating Place
Recording Currency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency
Relevant Reasons Shall Be Disclosed.□Applicable □ Not applicable
83. Arbitrage
Qualitative and quantitative information of relevant arbitrage instruments hedged risk in line with the type of
arbitrage to disclose:
Naught
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Amount recorded in the
Category Amount Listed items
current profit or loss
Policy Enjoyment of Preferential
2247050.00 Other income 2247050.00
Reduction and Exemption for the Poor
9 6with Set up Files
Incentive Subsidy for Digital and
Intelligent Demonstration Workshop of 2000000.00 Other income 2000000.00
Foshan City in 2022
The 2022 Support Fund for Promoting
the Digital Intelligent Transformation of
1208400.00 Deferred income
the Manufacturing Industry in Foshan
City (Projects 5008 and 5009)
The Company received the N.C.G.J.[2022] No. 532 "the Subsidy for
Industrial Logistics in the Second
Quarter of 2022 " in Nanning City of the 808200.00 Other income 808200.00
Management Committee of the Nanning
New & High-tech Industrial
Development Zone
Return of handling charges for
737693.99 Other income 737693.99
withholding and remittance
The 2021 "100 Enterprises Strive for the
500000.00 Other income 500000.00
First Place" bonus (partial)
LED Technology for Efficient
Cultivation in Modern Agriculture and 440000.00 Deferred income
Its Demonstrative Application
Incentive for standard products of Foshan
400000.00 Other income 400000.00
City
2022 Special Funds of Nanhai District
Foshan City for Promoting High-quality 347360.00 Other income 347360.00
Development of Foreign Trade
The Company received the "2021
Inclusive Subsidy as an Encouragement
for Enterprises to Redouble R&D Input " 333200.00 Other income 333200.00
from Nanning Science and Technology
Bureau
Funds for the Construction Project for the
Centre for Cultivating and Arranging
300000.00 Deferred income
High-Value Patents of NationStar
Optoelectronics
Employment Subsidy 271100.00 Other income 271100.00
Subsidies for stabilizing employment 230154.25 Other income 230154.25
Municipal incentive funds for provincial
specialised and sophisticated small and
200000.00 Other income 200000.00
medium enterprises that produce novel
and unique products
The Development and Demonstrative
Application of Deep Ultraviolet LED
200000.00 Deferred income
Modules and Equipment for Public
Health and Other Fields
Support Fund for the Digital Intelligent
Transformation of the Manufacturing 172700.00 Other income 172700.00
Industry
Financial Support for the Second Phase
of the Research on the Key Technology
142821.32 Deferred income 97373.13
of Full-colour Micro-LED Displays with
High Brightness and Contrast
Refund of unemployment insurance
140516.80 Other income 140516.80
premiums
Municipal Subsidy for the 2022
100000.00 Other income 100000.00
Vocational Skill Improvement Campaign
Special Fund for Technological
100000.00 Other income 100000.00
Development
2021 High-tech Enterprise Training
100000.00 Other income 100000.00
Topic
Chancheng District Postdoctoral
Research Funds from Chancheng District
100000.00 Other income 100000.00
Human Resources and Social Security
Bureau of Foshan City (Lan Mingwen)
Others 316000.00 Other income 316000.00
9 7Total 11395196.36 9201348.17
(2) Return of Government Grants
□Applicable □ Not applicable
85. Other
Naught
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control in the Reporting Period
Naught
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Reporting Period
Naught
3. Counter Purchase
Naught
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control
□Yes □ No
Whether there are several disposals of the investment to the subsidiary and lost controls
□Yes □ No
5. Changes in Combination Scope for Other Reasons
Naught
6. Other
Naught
9 8IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Registration Nature of Holding percentage
Name Way of gaining
place place business Directly Indirectly
Foshan Fozhao
Zhicheng Production and Newly
Foshan Foshan 100.00%
Technology sales established
Co. Ltd.FSL Chanchang
Production and Newly
Optoelectronics Foshan Foshan 100.00%
sales established
Co. Ltd.Foshan Taimei
Times Lamps Production and Newly
Foshan Foshan 70.00%
and Lanterns sales established
Co. Ltd.Foshan
Electrical &
Production and Newly
Lighting Xinxiang Xinxiang 100.00%
sales established
(Xinxiang) Co.Ltd.Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% Acquired
sales
Manufacturing
Co. Ltd.FSL Zhida
Electric Production and Newly
Foshan Foshan 66.84%
Technology sales established
Co. Ltd.FSL
Production and Newly
LIGHTING Germany Germany 100.00%
sales established
GMBH
Foshan
Haolaite Production and Newly
Foshan Foshan 51.00% 10.53%
Lighting Co. sales established
Ltd.NationStar Business
Optoelectronics combination
Germany Germany Trade 61.53%
(Germany) Co. under the same
Ltd. control
Foshan Kelian
New Energy Property
Foshan Foshan 100.00% Acquired
Technology development
Co. Ltd.Fozhao Haikou Haikou Production and
(Hainan) sales Newly
100.00%
Technology established
Co. Ltd.Nanning Manufacturing
Liaowang Auto Nanning Nanning of vehicle 53.79% Acquired
Lamp Co. Ltd. lamps
Liuzhou Guige
Manufacturing
Lighting
Liuzhou Liuzhou of vehicle 53.79% Acquired
Technology
lamps
Co. Ltd.Liuzhou Guige Manufacturing
Foreshine of automotive
Liuzhou Liuzhou 53.79% Acquired
Technology electronic
Co. Ltd. products
9 9Chongqing
Guinuo Manufacturing
Lighting Chongqing Chongqing of vehicle 53.79% Acquired
Technology lamps
Co. Ltd.Qingdao Guige
Manufacturing
Lighting
Qingdao Qingdao of vehicle 53.79% Acquired
Technology
lamps
Co. Ltd.Indonesia Manufacturing
Liaowang Auto Indonesia Indonesia of vehicle 53.79% Acquired
Lamp Co. Ltd. lamps
Business
Foshan Sigma
Business combination
Venture Capital Foshan Foshan 100.00%
services under the same
Co. Ltd.control
Foshan Business
NationStar Electronic combination
Foshan Foshan 21.48%
Optoelectronics manufacturing under the same
Co. Ltd. control
Foshan
Business
NationStar
Electronic combination
Semiconductor Foshan Foshan 21.48%
manufacturing under the same
Technology
control
Co. Ltd.Foshan
Business
NationStar
Electronic combination
Electronic Foshan Foshan 21.48%
manufacturing under the same
Manufacturing
control
Co. Ltd.Nanyang Baoli Business
Vanadium combination
Henan Nanyang Mining 12.89%
Industry Co. under the same
Ltd. control
Guangdong Business
New Electronic combination
Guangzhou Guangzhou Trade 21.48%
Information under the same
Ltd. control
Guangdong
Business
Fenghua
Electronic combination
Semiconductor Guangzhou Guangzhou 21.45%
manufacturing under the same
Technology
control
Co. Ltd.Notes to holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still controlling the investee and holding more than half of the
voting rights but not controlling the investee:
Naught
Significant structural entities and controlling basis in the scope of combination:
Naught
Basis of determining whether the Company is the agent or the principal:
Naught
Other notes:
Naught
10 0(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Balance of non-
Name proportion of non- attributable to the non- distributed to non- controlling interests at
controlling interests controlling interests controlling interests the period-end
Foshan Taimei Times
Lamps and Lanterns 30.00% 404788.01 12760002.99
Co. Ltd.FSL Zhida Electric
33.16%2883324.64994800.0031422367.33
Technology Co. Ltd.Foshan Haolaite
38.47%1154765.68160500.2415201737.61
Lighting Co. Ltd.Nanning Liaowang
46.21%9360005.34449813619.14
Auto Lamp Co. Ltd.Foshan NationStar
Optoelectronics Co. 78.52% 42367172.08 29139436.44 2945050076.65
Ltd.Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Naught
Other notes:
Naught
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Curren Non- Curren Non-
Non- Total Non- Total
Name Curren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets es assets es
es y es y
Foshan
Taimei
Times
7025147985054251425172331429866245434543
Lamps
5850737232229879987903523589394298929892
and
Lanter .25 .64 .89 .59 .59 .64 .70 .34 .42 .42
ns Co.Ltd.FSL
Zhida
Electri 1949 1013 2050 1267 1267 1489 8928 1579 8532 8532
c
599912009119888188819906180.272404250425
Techn
ology 1.96 .12 2.08 0.19 0.19 6.65 94 7.59 .79 .79
Co.Ltd.Foshan
Haolai
te 7346 9252 8271 4320 4320 6596 1022 7618 3926 3926
Lighti 1177 424. 3601 1836 1836 0025 4679 4704 8890 8890
ng .58 39 .97 .74 .74 .19 .49 .68 .83 .83
Co.Ltd.Nanni
ng 1587
Liaow 1385 2237 1301 1336 2453 1547 1577
8515357463186563008
ang 421 010 059 802 233 730 819
Auto 8881 2960 841.2 0181 8072572.7 389.0 124.0 084.1 651.6 991.0 063.5
Lamp 6.30 .09 8 0.33 .52 9 9 9 8 1 4 6
Co.
10 1Ltd.
Foshan
Nation
3687262363101886254037932786657920792826
Star 6541 7465
934035970531730005809814712270
Optoel 9900 5786
784.5237.1021.7129.8138.3331.6474.9806.6881.2746.0
ectroni 8.44 4.73
6956076370
cs Co.Ltd.
5667
541235088920340040903685935337974574
68999267766
Total 033 805 838 100 042 857 784 473 119
4196617.44593
377.1050.6427.7780.4749.0735.4352.8081.3018.6
8.5337.25
448702550
Unit: RMB
Reporting Period Same period of last year
Total Cash flows Total Cash flows
Name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Foshan
Taimei
--
Times 5978428 1349293 1349293 7008307 1590364 1590364
11020331288012
Lamps and 8.09 .38 .38 7.58 .47 .47
Lanterns .59 .25
Co. Ltd.FSL Zhida
Electric 1386467 8695560 8695560 1010509 1050860 5704490 5704490 3913866
Technology 88.74 .09 .09 2.96 95.87 .75 .75 .98
Co. Ltd.Foshan
-
Haolaite 3457951 3001421 3013109 3373575 2025782 2025782 7961319
1426965
Lighting 1.95 .42 .14 9.76 .55 .55 .24
Co. Ltd. .96
Nanning
Liaowang 7202093 2234174 2479371 8225803 7008181 2036259 2052706 4864233
Auto Lamp 06.91 9.52 6.86 .73 99.55 1.07 4.34 2.49
Co. Ltd.Foshan
NationStar
17587445380445538044510290501749843860333585951272066058
Optoelectro
095.832.962.9650.77891.565.385.403.45
nics Co.Ltd.
27119638919247916561311870692659567115716511579897989008
Total
991.527.372.4347.91024.3284.2277.519.91
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Naught
10 22. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Naught
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner's Equity
Attributable to the Company as the Parent
Naught
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught
(2) Main Financial Information of Significant Joint Ventures
Naught
(3) Main Financial Information of Significant Associated Enterprises
Naught
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Beginning balance/Same period of last
Ending balance/Reporting Period
year
Joint ventures:
The total of following items according to
the shareholding proportions
Associated enterprises:
Total carrying value of investment 183117824.19 181931792.66
The total of following items according to
the shareholding proportions
--Net profit 1186031.53 650457.40
--Total comprehensive income 1186031.53 650457.40
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught
10 3(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught
4. Significant Common Operation
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
Naught
6. Other
Naught
X. The Risk Related to Financial Instruments
The financial instruments of the Company included: equity investment notes receivable accounts receivable
accounts payable etc. The details of each financial instrument see relevant items of Note V.The main risks of the Company due to financial instruments were credit risk liquidity risk and market risk. The
operating management of the Company was responsible for the risk management target and the recognition of the
policies.(I) Credit risk
Credit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of the
other party. The credit risk the Company faced was selling on credit which leads to customer credit risk.The Company will evaluate credit risk of new customer and set credit limit once the balance of account
receivable over credit limit require the customer to pay or producing and delivering goods shall be approved by
the management of the Company.The Company through monthly aging analysis of account receivable and monitoring the collection situation of the
customer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation
the Company should conduct necessary measures to requesting the payment timely.(II) Liquidity Risk
Liquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in the
way of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient
cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of the
Company. The financial department through supervising the balance of the cash and securities can be convert to
cash at any time and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficient
cash to pay the liabilities under the case of all reasonable prediction.(III) Market risk
10 4Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the
change of market price including: exchange rate risk interest rate risk and other price risk.
1. Exchange rate risk
Exchange rate risk refers to the risk of loss due to exchange rate changes. The Company's exposure to foreign
exchange risk is mainly related to the US dollar and the euro. As of 30 June 2023 the Company's assets and
liabilities were in RMB except for the balances of usd euro Hong Kong dollar and rupiah as set out in this Note
VII-82 Foreign Currency Monetary Items. Foreign exchange risk arising from the assets and liabilities of such
foreign currency balances may have a certain impact on the Company's operating results. The Company made
efforts to avoid exchange rate risk through forward exchange settlement improving operation management and
promoting the international competitiveness of the Company etc.
2. Interest rate risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due
to the change of market interest rates. The interest rate risk faced by the Company mainly comes from bank
borrowings. By establishing a good bank-enterprise relationship the Company reasonably designed the credit line
credit variety and credit period ensured sufficient credit line of banks and met various short-term financing needs
of the Company with preferential loan interest rates. As of 30 June 2023 the Company's fixed interest rate loan
balance was RMB744374874.84 accounting for 100% of the total loan balance and the risks in this part were
controllable.
3. Other price risk
Naught
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Fair value Fair value Fair value
Item
measurement items at measurement items at measurement items at Total
level 1 level 2 level 3
I. Consistent fair value
--------
measurement
(I) Trading financial
899004.5480983830.1381882834.67
assets
1. Financial assets at
fair value through 899004.54 80983830.13 81882834.67
profit or loss
1.1 Wealth
80983830.1380983830.13
management products
1.2 Investments in
899004.54899004.54
equity instruments
(II) Other equity
761175052.7240578568.80801753621.52
instrument investment
(III) Accounts
444845917.62444845917.62
receivable financing
Total assets measured
at fair value on a 762074057.26 80983830.13 485424486.42 1328482373.81
recurring basis
(VII) Refer as financial
liabilities measured by 23741475.00 23741475.00
fair value and the
10 5changes included in the
current gains and
losses
Total liabilities of
consistent fair value 23741475.00 23741475.00
measurement
II. Inconsistent fair
--------
value measurement
2. Basis for determining the market value of continuing and discontinuing level 1 fair value measurement
items
Level 1 fair value measurements are determined based on the market price of equities at the balance sheet date
and the mid-price of the RMB exchange rate published by the State Administration of Foreign Exchange as
quoted prices in an active market.
3. Continuing and discontinuing Level 2 fair value measurement items qualitative and quantitative
information on the valuation techniques used and significant parameters
The fair value of financial products subscribed by the Group that are measured at fair value is determined by
reference to the expected rate of return provided by the financial institutions.
4. Continuing and discontinuing Level 3 fair value measurement items qualitative and quantitative
information on the valuation techniques used and significant parameters
(1) The Company measured the investment at cost as a reasonable estimate of fair value because there were no
significant changes in the business environment and operating and financial conditions of the investee GF Bank.
(2) The Company measured the investee Shenzhen Zhonghao (Group) Company Limited at nil as a reasonable
estimate of fair value due to the deterioration of its business environment and operating and financial conditions.
(3) The Company measured the investment at cost as a reasonable estimate of fair value because there were no
significant changes in the business environment and operating and financial conditions of the investee companies
Foshan Nanhai District United Guangdong New Light Source Industry Innovation Center Beijing Guang Rong
Union Semiconductor Lighting Industry Investment Center and Guangdong Rising Finance Co. Ltd.
(4) The receivables financing represents bank acceptance notes held by the Company with a short remaining
maturity the face value of which approximates the fair value and the face amount is used to recognize the fair value
at the statement date.
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning
and Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Naught
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Naught
10 67. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Naught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Financial assets and liabilities not measured at fair value include: monetary assets accounts receivable and
accounts payable etc. There is small difference between the carrying value of above financial assets and liabilities
and fair value.
9. Other
Naught
XII. Related Party and Related-party Transactions
1. The parent company of the Company
Proportion of
Proportion of share
voting rights
held by the
owned by the
Name Registration place Nature of business Registered capital Company as the
Company as the
parent against the
parent against the
Company (%)
Company (%)
Hongkong Wah
Shing Holding Hong Kong Investment HKD110000 13.84% 13.84%
Company Limited
Guangdong
Electronics
Production and
Information Guangzhou RMB1162 million 9.01% 9.01%
sales
Industry Group
Ltd.Guangdong Rising
Holdings Group Guangzhou Investment RMB10 billion 6.10% 6.10%
Co. Ltd.Rising Investment
RMB360 million
Development Hong Kong Investment 1.87% 1.87%
and HKD1 million
Limited
Total 30.82% 30.82%
Notes: Information on parent company of the Company
Hongkong Wah Shing Holding Company Limited (hereinafter referred to as "Hongkong Wah Shing") the
largest shareholder of the Company is a wholly-owned subsidiary of Guangdong Electronics Information
Industry Group Ltd. (hereinafter referred to as "Electronics Group") and Electronics Group Shenzhen Rising
Investment Development Co. Ltd. (hereinafter referred to as "Shenzhen Rising") Guangdong Rising Holdings
Group Co. Ltd. (renamed Guangdong Rising Capital Investment Co. Ltd. on 13 December 2021 hereinafter
10 7referred to as “Rising Capital”) and Rising Investment Development Limited (hereinafter referred to as “RisingInvestment”) are wholly-owned subsidiaries of Guangdong Rising Holdings Group Co. Ltd. (hereinafter
referred to as “Rising Holdings Group”). According to the relevant provisions of the Company Law and the
Measures for the Administrative Measures on Acquisition of Listed Companies Electronics Group Shenzhen
Rising Rising Capital and Rising Investment are concerted actors and Rising Holdings Group becomes the
actual controller of the Company. On 15 December 2021 Shenzhen Rising and Rising Capital transferred all
their shares of the Company to Rising Holdings Group. After the transfer Rising Holdings Group Electronics
Group and Rising Investment acted in concert with each other. As of 30 June 2023 the above-mentioned
persons acting in concert held a total of 419803826.00 A and B shares of the Company accounting for 30.82%
of the total share capital of the Company.The final controller of the Company is Guangdong Rising Holdings Group Co. Ltd.
2. Subsidiaries of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Subsidiaries for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of
significant joint ventures or associated enterprises of the Company.
4. Information on Other Related Parties
Name Relationship with the Company
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
Guangdong Fenghua Advanced Technology (Holding) Co. Ltd. Under same actual controller
Guangdong Electronic Technology Research Institute Under same actual controller
Guangdong Zhongnan Construction Co. Ltd. Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Guangdong Zhongren Group Construction Co. Ltd Under same actual controller
Shenzhen Yuepeng Construction Co. Ltd. Under same actual controller
Foshan Fulong Environmental Technology Co. Ltd. Under same actual controller
Jiangmen Dongjiang Environmental Company Limited Under same actual controller
Zhuhai Doumen District Yongxingsheng Environmental
Industry Waste Recovery and Comprehensive Treatment Co. Under same actual controller
Ltd.Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Equipment Technology Co. Ltd. Under same actual controller
Guangdong Rising South Construction Co. Ltd. Under same actual controller
Guangdong Electronics Information Industry Group Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Junpeng Intelligent Equipment
Under same actual controller
Co. Ltd.Guangdong Rising Rare Metals and New Photoelectric
Under same actual controller
Materials Co. Ltd.Guangdong Heshun Property Management Co. Ltd. The
Under same actual controller
Pinnacle Branch
Guangdong Zhongjin Lingnan Engineering Technology Co.Under same actual controller
Ltd.Guangdong Huajian Enterprise Group Co. Ltd. Under same actual controller
Dongguan Hengjian Environmental Protection Technology Co.Under same actual controller
Ltd.Shenzhen Longgang Dongjiang Industrial Waste Treatment
Under same actual controller
Co. Ltd.
10 8Guangzhou Wanshun Investment Management Co. Ltd. Under same actual controller
Guangdong The Great Wall Building Co. Ltd. Under same actual controller
Guangzhou Shengdu Investment Development Co. Ltd. Under same actual controller
Guangdong Rising Finance Co. Ltd. Under same actual controller
Fenghua Research Institute (Guangzhou) Limited Under same actual controller
Guangdong Rising Research and Development Institute Co.Under same actual controller
Ltd.Guangdong Tianxin Commercial Service Co. Ltd. Under same actual controller
Guangdong Xintaochip Microelectronics Co. Ltd. (formerly
Under same actual controller
known as Fenghua Research Institute (Guangzhou) Limited)
Guangdong Zhuyuan Construction Engineering Co. Ltd. Under same actual controller
Guangzhou Haixinsha Industrial Co. Ltd. Under same actual controller
Guangdong Huajian Engineering Construction Co. Ltd.(formerly known as Guangzhou Huajian Engineering Under same actual controller
Construction Co. Ltd.)
Zhuhai Dongjiang Environmental Protection Technology Co.Under same actual controller
Ltd.Shandong Zhongjin Lingnan Copper Co. Ltd. Under same actual controller
Hangzhou Times Lighting Electric Appliances Co. Ltd. Enterprise controlled by related natural person
Prosperity (China) Electrical Company Limited Enterprise controlled by related natural person
Nanning Ruixiang Industrial Investment Co. Ltd. Enterprise significantly affected by related natural person
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
Whether exceed
The approval Same period of
Related party Content Reporting Period trade credit or
trade credit last year
not
Guangdong Fenghua
Purchase of
Advanced Technology 1427073.05 45000000.00 Not 2757010.92
(Holding) Co. Ltd. materials
Prosperity Lamps & Purchase of
57268.76 7000000.00 Not 773460.05
Components Limited materials
Hangzhou Times
Purchase of
Lighting Electric 222265.48
Appliances Co. Ltd. materials
Guangdong Zhongnan Receiving labor
58500517.5042247083.75
Construction Co. Ltd. service
Guangdong Yixin
Receiving labor
Changcheng 42453620.42 14543474.14
service
Construction Group
Guangdong Zhongren
Receiving labor
Group Construction 26677655.81 7242570.34
service
Co. Ltd
Shenzhen Yuepeng Receiving labor
754528.33470768.94
Construction Co. Ltd. service
Guangzhou Haixinsha Receiving labor
467135.78
Industrial Co. Ltd. service
Foshan Fulong
Receiving labor 38000000.00 Not
Environmental 162917.93 206850.94
service
Technology Co. Ltd.Shenzhen Longgang
Receiving labor
Dongjiang Industrial 116673.57 82605.66
service
Waste Treatment Co.
10 9Ltd.
Dongguan Hengjian
Environmental Receiving labor
76930.19200598.11
Protection Technology service
Co. Ltd.Jiangmen Dongjiang
Receiving labor
Environmental 69970.76 221418.86
service
Company Limited
Zhuhai Dongjiang
Receiving labor
Environmental 13133.52
service
Company Limited
Guangdong The Great Receiving labor
22053.5536110.42
Wall Building Co. Ltd. service
Guangdong Tianxin
Receiving labor
Commercial Service 18779.44
service
Co. Ltd.Guangdong Electronic
Receiving labor
Technology Research 854625.55
service
Institute
Zhuhai Doumen
District Yongxingsheng
Environmental Industry Receiving labor
46041.51
Waste Recovery and service
Comprehensive
Treatment Co. Ltd.Total 130818258.61 90000000.00 69904884.67
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Prosperity Lamps & Components Limited Sale of products 12641522.79 11487387.08
Guangdong Fenghua Advanced
Sale of products 7466567.41 8534248.00
Technology (Holding) Co. Ltd.Guangdong Zhongnan Construction Co.Sale of products 3012466.81 44383.37
Ltd.Shenzhen Zhongjin Lingnan Nonfemet
Sale of products 710376.99 607072.04
Co. Ltd.Shandong Zhongjin Lingnan Copper Co.Sale of products 223796.46
Ltd.Guangdong Zhongjin Lingnan Engineering
Sale of products 23113.27
Technology Co. Ltd.Guangdong Zhuyuan Construction
Sale of products 12318.58
Engineering Co. Ltd.Guangdong Rising Holdings Group Co.Sale of products 2787.61
Ltd.Guangzhou Wanshun Investment
Sale of products 538207.40
Management Co. Ltd.Guangdong Yixin Changcheng
Sale of products 441210.96
Construction Group
Guangzhou Shengdu Investment
Sale of products 281946.91
Development Co. Ltd.Guangdong Rising South Construction Co.Sale of products 69965.06
Ltd.Guangdong Zhongjin Lingnan Equipment
Sale of products 122855.75
Technology Co. Ltd.Prosperity (China) Electrical Company
Sale of products 41285.35
Limited
11 0Guangdong Electronics Information
Sale of products 27796.46
Industry Group Ltd.Guangdong Zhongjin Lingnan Junpeng
Sale of products 5884.96
Intelligent Equipment Co. Ltd.Total 24092949.92 22202243.34
Notes:
1. The pricing policy for related-party transactions between the Company and its related parties is as follows:
The pricing of related-party transactions should be market-oriented and subject to the market prices when such a
transaction occurs. The relevant funds should be paid on time according to the actual transaction.
2. The related-party transactions between the Company and its subsidiaries and between subsidiaries have been
offset during report consolidation.
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
Naught
Lists of entrust/contractee
Unit: RMB
Charge
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Guangdong
Foshan
Zhongren
NationStar 30 December 31 December
Group
Optoelectronics 2020 2022
Construction
Co. Ltd.Co. Ltd.Fozhao Guangdong
(Hainan) Zhongnan
30 March 2022 14 May 2023
Technology Construction
Co. Ltd. Co. Ltd.Guangdong
Foshan
Yixin
Electrical and 29 December
Changcheng 28 May 2021
Lighting Co. 2022
Construction
Ltd.Group Co. Ltd.Guangdong
Foshan
Yixin
Electrical and 11 December
Changcheng 1 March 2022
Lighting Co. 2022
Construction
Ltd.Group Co. Ltd.Foshan Kelian Guangdong
New Energy Zhongnan 23 December
23 June 2021
Technology Construction 2022
Co. Ltd. Co. Ltd.Notes to entrust/contractee:
1. The Company’s subsidiary Foshan NationStar Optoelectronics Co. Ltd. entered into the General Contracting
Contract of NationStar Optoelectronics for the Survey Design and Construction of the Geely Industrial Park
with Guangdong Zhongren Group Construction Co. Ltd. Guangdong Architectural Design & Research
Institute Co. Ltd. and CSIC International Engineering Co. Ltd. on 30 December 2020. The above parties take
charge of the survey design and construction of the Geely Industrial Park. The total price of the contract is
RMB509292500. The project is in progress now.
11 12. The Company’s subsidiary Fozhao (Hainan) Technology Co. Ltd. entered into the General Contracting
Contract for Design and Construction of FSL Hainan Industrial Park Phase I with Guangdong Zhongnan
Construction Co. Ltd. and Guangdong Architectural Design & Research Institute Co. Ltd. on 30 March 2022.The above parties take charge of the design and construction of FSL Hainan Industrial Park. The total price of
the contract is RMB179051600 and the planned total construction period is 390 calendar days (50 days for
design and 340 days for construction). The project is in progress now.
3. The Company entered into the General Contracting Contract of Foshan Electrical and Lighting Co. Ltd. for
the Design and Construction of the Office Buildings of Gaoming Headquarters Production Base Phase II with
Guangdong Yixin Changcheng Construction Group Co. Ltd. and Guangdong Architectural Design & Research
Institute Co. Ltd. on 28 May 2021. The above parties take charge of the design and construction of Gaoming
office buildings. The total price of the contract is RMB175025600 and the planned total construction period is
560 calendar days (560 days for construction including 90 days for design). The project is in progress now.
4. The Company entered into the General Contracting Contract of Foshan Electrical and Lighting Co. Ltd. for
the Design and Construction of the Smart LED Lighting Production Plant in the Gaoming Production Base (1-3
Buildings) with Guangdong Yixin Changcheng Construction Group Co. Ltd. and Guangdong Architectural
Design & Research Institute Co. Ltd. on 1 March 2022. The above parties take charge of the design and
construction of the Gaoming three factory buildings. The total price of the contract is RMB129991400 and the
planned total construction period is 285 calendar days (30 days for design and 255 days for construction). The
project is in progress now.
5. The Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd. entered into the General
Contracting Contract for Design and Construction of the Foshan Kelian Building Decoration Engineering with
Guangdong Zhongnan Construction Co. Ltd. and Guangdong Architectural Design & Research Institute Co.Ltd. on 23 June 2021. The above parties take charge of the survey design and construction of Kelian Building.The total price of the contract is RMB189070200 and the planned total construction period is 240 calendar
days. Among them except for the self-used layers the construction period shall be counted from the date when
the construction actually begins. The project is in progress now.
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the Reporting Period in the same period of last year
Guangdong Rising Research
and Development Institute
Plant 582347.85 563992.42
Co. Ltd. and its majority-
owned subsidiaries
The Company served as the lessee:
Unit: RMB
Rental expenses of Variable lease
Name Type of Income expense of
short-term lease payments not Increased right-of-
of assets Paid rent lease liabilities
lessor leased simplified treated included in the use assets undertaken
and low-value measurement of
11 2asset lease (if lease liabilities (if
applicable) applicable)
The The The The The
Reporti same Reporti same Reporti same Reporti same Reporti same
ng period ng period ng period ng period ng period
Period of last Period of last Period of last Period of last Period of last
year year year year year
Guangd
ong
Great
Operati 64954. 109714 1801.2 1557.4 54673.Wall
ng lease 29 .21 9 6 41
Buildin
g Co.Ltd.Guangd
ong
Tianxin
Comme Operati 65059. 1211.8
rcial ng lease 65 7
service
Co.Ltd.
(4) Information on Related-party Guarantee
Naught
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Naught
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Chairman of the Board 486397.79 380814.62
General Manager 475655.67 355594.62
Chairman of the Supervisory Committee 467681.15 335628.62
Secretary of the Board 275841.67 227878.62
Chief Financial Officer 466313.55 336094.62
Other 3782176.00 2924372.07
Total 5954065.83 4560383.17
(8) Other Related-party Transactions
In accordance with the Financial Service Agreement signed by the Company in 2023 the total maximum daily
deposit balance of the Company and its majority-owned subsidiaries deposited in Guangdong Rising Finance
Co. Ltd. shall not exceed RMB1.2 billion and the general credit limit provided by Guangdong Rising Finance
11 3Co. Ltd. for the Company and its majority-owned subsidiaries shall not exceed RMB2 billion. As of 30 June
2023 the deposit balance of the Company and its subsidiaries deposited in Guangdong Rising Finance Co. Ltd.
is RMB1019445400. The Company and its majority-owned subsidiaries have signed a credit agreement of
RMB1.5 billion with Guangdong Rising Finance Co. Ltd. of which RMB0 has been used.
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Item Related party
Carrying amount Bad debt provision Carrying amount Bad debt provision
Monetary capital- Guangdong Rising
4937389.673774186.39
accrued interest Finance Co. Ltd.Guangdong
Accounts Fenghua Advanced
8838027.13176760.542805991.7956119.84
receivable Technology
Holding Co. Ltd.Prosperity Lamps
Accounts
& Components 6107629.95 183228.90 2754557.10 82636.71
receivable Limited
Guangdong
Accounts Zhongnan
3622125.97123926.48218038.4618816.26
receivable Construction Co.Ltd.Guangdong Yixin
Accounts Changcheng
2049187.5472332.482049187.54266394.38
receivable Construction
Group
Shenzhen
Accounts Zhongjin Lingnan
870317.0026109.51546626.0016398.78
receivable Nonfemet Co.Ltd.Guangdong
Xintaochip
Microelectronics
Accounts Co. Ltd. (formerly
385865.867717.32582275.6011645.51
receivable known as Fenghua
Research Institute
(Guangzhou)
Limited)
Shandong
Accounts
Zhongjin Lingnan 252890.00 7586.70
receivable Copper Co. Ltd.Guangdong
Heshun Property
Accounts Management Co.
242112.687263.38669790.4066979.04
receivable Ltd. Rising
International
Building Branch
Guangdong
Zhongjin Lingnan
Accounts
Engineering 195269.90 5858.10 116775.00 3503.25
receivable Technology Co.Ltd.Guangdong
Huajian
Accounts
Engineering 44297.00 18398.78 44297.00 13289.10
receivable Construction Co.Ltd. (formerly
11 4known as
Guangzhou
Huajian
Engineering
Construction Co.Ltd.)
Guangdong Rising
Accounts Research and
1540.0030.803080.0061.60
receivable Development
Institute Co. Ltd.Guangdong
Zhongjin Lingnan
Accounts
Equipment 703256.00 103815.51
receivable Technology Co.Ltd.Guangdong Rising
Accounts Rare Metals and
457703.9645770.40
receivable New Photoelectric
Materials Co. Ltd.Guangdong
Zhongjin Lingnan
Accounts
Junpeng Intelligent 20179.00 605.37
receivable
Equipment Co.Ltd.Prosperity (China)
Prepayments Electrical 39428.00 39428.00
Company Limited
Guangdong
Tianxin
Prepayments 6912.00
Commercial
Service Co. Ltd.Guangdong
Fenghua Advanced
Prepayments 148.68 148.68
Technology
Holding Co. Ltd.Guangdong
Fenghua Advanced
Other receivables 223372.07 4467.44 178585.99 3571.72
Technology
Holding Co. Ltd.Guangdong
Tianxin
Other receivables 67165.92 1343.32
Commercial
Service Co. Ltd.Nanning Ruixiang
Other receivables Industrial 5000.00
Investment Co. L
Guangdong The
Other receivables Great Wall 53041.92 4708.84
Building Co. Ltd.Total 27888679.37 635023.75 15017148.83 694316.31
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Guangdong Zhongren Group
Notes payable 67154037.47 52101816.43
Construction Co. Ltd
Notes payable Guangdong Fenghua 320747.68 449283.50
11 5Advanced Technology
Holding Co. Ltd.Guangdong Electronic
Notes payable 689500.00
Technology Research Institute
Guangdong Zhongren Group
Accounts payable 104280896.68 129250643.46
Construction Co. Ltd
Guangdong Fenghua
Accounts payable Advanced Technology 2766260.53 3038287.38
Holding Co. Ltd.Guangzhou Haixinsha
Accounts payable 461805.00
Industrial Co. Ltd.Hangzhou Times Lighting
Accounts payable 112000.00 99115.04
Electric Appliances Co. Ltd.Prosperity Lamps &
Accounts payable 57268.76 773460.05
Components Limited
Foshan Fulong Environmental
Accounts payable 56630.00 64375.00
Technology Co. Ltd.Dongguan Hengjian
Accounts payable Environmental Protection 51546.00 46520.40
Technology Co. Ltd.Shenzhen Longgang
Accounts payable Dongjiang Industrial Waste 23184.00 14010.00
Treatment Co. Ltd.Zhuhai Dongjiang
Accounts payable Environmental Protection 10645.53
Technology Co. Ltd.Guangdong Electronic
Accounts payable 46500.00 736000.00
Technology Research Institute
Shenzhen Yuepeng
Accounts payable 1885437.50
Construction Co. Ltd.Guangdong Fenghua
Other payables Advanced Technology 135475547.74 135446928.57
Holding Co. Ltd.Nanning Ruixiang Industrial
Other payables 115352181.20 120352181.20
Investment Co. Ltd.Guangdong Zhongnan
Other payables 14633468.54 846938.10
Construction Co. Ltd.Guangdong Huajian
Other payables 3607588.15 3216344.40
Enterprise Group Co. Ltd.Shenzhen Yuepeng
Other payables 474900.64 474300.64
Construction Co. Ltd.Guangzhou Haixinsha
Other payables 162266.76
Industrial Co. Ltd.Zhuhai Dongjiang
Other payables Environmental Protection 50000.00
Technology Co. Ltd.Shenzhen Longgang
Other payables Dongjiang Industrial Waste 50000.00
Treatment Co. Ltd.Dongguan Hengjian
Other payables Environmental Protection 50000.00
Technology Co. Ltd.Contract liabilities other Prosperity Lamps &
59428.0059428.00
current liabilities Components Limited
Total 445946402.68 448855069.67
7. Commitments of Related Party
1. Commitment on Avoidance of Horizontal Competition
(1) Commitment maker: Electronics Group and Hong Kong Rising Investment
11 6Contents of Commitment: Electronics Group and its acting-in-concert parties Hong Kong Rising Investment have
made more commitments as follows to avoid horizontal competition with the Company: 1. They shall conduct
supervision and restraint on the production and operation activities of themselves and their relevant enterprises so
that besides the enterprise above that is in horizontal competition with the Company for now if the products or
business of them or their relevant enterprises become the same with or similar to those of the Company or its
subsidiaries in the future they shall take the following measures: (1) If the Company thinks necessary they and
their relevant enterprises shall reduce and wholly transfer their relevant assets and business; and (2) If the
Company thinks necessary it is given the priority to acquire first by proper means the relevant assets and
business of them and their relevant enterprises. 2. All the commitments made by them to eliminate or avoid
horizontal competition with the Company are also applicable to their directly or indirectly controlled subsidiaries.They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant document
and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries
break the aforesaid commitments and thus cause a loss for the Company they shall compensate the Company on a
rational basis.Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(2) Commitment maker: Rising Holdings
Contents of Commitment: 1. The Promisor will take active measures to avoid any business or activity that
competes or may compete with the principal business of the Company and its auxiliary enterprises and urge the
Promisor to control enterprises to avoid any business or activity that competes or may compete with the principal
business of the Company and its auxiliary enterprises. 2. If the Promisor and its controlled enterprises are given
the opportunity to engage in new business that constitutes or may constitute horizontal competition with the
principal businesses of the Company and its auxiliary enterprises the Promisor will make every effort to make the
business opportunity first available to the Company or its auxiliary enterprises on reasonable and fair terms and
conditions on the premise that conditions permit and in the interest of the listed company.Date of commitment making: 4 November 2021
Term of commitment: Long-standing
Fulfillment: In execution
(3) Commitment maker: Rising Holdings Rising Capital and Hongkong Wah Shing
Contents of Commitment: 1. They shall conduct supervision and restraint on the production and operation
activities of themselves and their relevant enterprises so that besides the enterprise above that is in horizontal
competition with FSL for now if the products or business of them or their relevant enterprises become the same
with or similar to those of FSL or its subsidiaries in the future they shall take the following measures: (1) If FSL
thinks necessary they and their relevant enterprises shall reduce and wholly transfer their relevant assets and
business; and (2) If FSL thinks necessary it is given the priority to acquire first by proper means the relevant
assets and business of them and their relevant enterprises. 2. All the commitments made by them to eliminate or
avoid horizontal competition with FSL are also applicable to their directly or indirectly controlled subsidiaries.They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant document
and faithfully honor all the relevant commitments. 3. If they or their directly or indirectly controlled subsidiaries
break the aforesaid commitments and thus cause a loss for FSL they shall compensate FSL on a rational basis.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.
11 7Fulfillment: In execution.
(4) Commitment maker: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong Wah
Shing
Contents of Commitment: The Promisors have made commitments as follows to avoid horizontal competition
protect interests of the Company and other shareholders:
1. They shall conduct supervision and restraint on the production and operation activities of themselves and
their relevant enterprises so that if the products or business of them or their relevant enterprises become the
same with or similar to those of FSL or its subsidiaries in the future they shall take the following measures:
(1) If FSL thinks necessary they and their relevant enterprises shall reduce and wholly transfer their relevant
assets and business;
(2) If FSL thinks necessary it is given the priority to acquire first by proper means the relevant assets and
business of them and their relevant enterprises.
2. All the commitments made by them to eliminate or avoid horizontal competition with FSL are also applicable
to their directly or indirectly controlled subsidiaries. They are obliged to urge and make sure that other
subsidiaries execute what’s prescribed in the relevant document and faithfully honor all the relevant
commitments.
3. As of the issuance of this statement and commitment if any business opportunity obtained by the
commitment maker (hereinafter referred to as "we" or "us") from any third party constitutes or may constitute
horizontal competition with the business operated by FSL and its wholly-owned and majority-owned
subsidiaries we will notify FSL forthwith and give up such an opportunity to FSL at its requirement. Then FSL
under the same conditions shall preferentially acquire the assets or equity interests of the relevant business at a
fairer and more reasonable price. Doing so helps us avoid horizontal competition or potential horizontal
competition with FSL and its wholly-owned and majority-owned subsidiaries.
4. We undertake not to provide any assistance in respect of funds business techniques management and
business secrets to any other company business economic organisation or individual in or potentially in
horizontal competition with FSL or its wholly-owned or majority-owned subsidiaries.
5. We undertake not to engage in any form in any business activities that may impact the operations and
development of FSL and its wholly-owned and majority-owned subsidiaries including:
(1) using our existing social resources and customer resources to hinder or restrict the independent development
of FSL or its wholly-owned or majority-owned subsidiaries;
(2) fabricating and disseminating news unfavourable to FSL and its wholly-owned and majority-owned
subsidiaries and damaging their goodwill;
(3) leveraging our holdings in or control over FSL to exert adverse influence thus causing abnormal changes in
senior management members R&D personnel and technical personnel of FSL and its wholly-owned and
majority-owned subsidiaries; and
(4) engaging professional technical or marketing personnel or senior management members from FSL and its
wholly-owned and majority-owned subsidiaries.
6. We undertake that if we violate the foregoing commitments and thus cause financial losses to FSL we shall
assume the corresponding legal liability for all FSL's losses arising therefrom.Date of commitment making: 14 March 2023
Term of commitment: Long-standing
Fulfillment: In execution
2. Commitment on Reduction and Regulation of Related-party Transactions
11 8(1) Commitment maker: Electronics Group and Hong Kong Rising Investment
Contents of Commitment: Electronics Group and Hong Kong Rising Investment have made a commitment that
during their direct or indirect holding of the Company’s shares they shall 1. Strictly abide by the regulatory
documents of the CSRC and the SZSE the Company’s Articles of Association etc. and not harm the interests of
the Company or other shareholders of the Company in their production and operation activities by taking
advantage of their position as the controlling shareholder and actual controller; 2. make sure that they or their
other controlled subsidiaries branch offices jointly-run or associated companies (the “Relevant Enterprises” for
short) will try their best to avoid or reduce related-party transactions with the Company or the Company’s
subsidiaries; 3. strictly follow the market principle of justness fairness and equal value exchange for necessary
and unavoidable related-party transactions between them and their Relevant Enterprises and the Company and
withdraw from voting when a related-party transaction with them or their Relevant Enterprises is being voted on
at a general meeting or a board meeting and execute the relevant approval procedure and information disclosure
duties pursuant to the applicable laws regulations and regulatory documents. Where the aforesaid commitments
are broken and a loss is thus caused for the Company its subsidiaries or the Company’s other shareholders they
shall be obliged to compensate.Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(2) Commitment maker: Rising Holdings
Contents of Commitment: 1. Strictly abide by the regulatory documents of the CSRC and the SZSE the
Company’s Articles of Association etc; and not harm the interests of the Company or other shareholders of the
Company in their production and operation activities by taking advantage of their position as the controlling
shareholder and actual controller; 2. make sure that they or their other controlled subsidiaries branch offices
jointly-run or associated companies (the "Relevant Enterprises" for short) will try their best to avoid or reduce
related-party transactions with the Company or the Company’s subsidiaries; 3. strictly follow the market principle
of justness fairness and equal value exchange for necessary and unavoidable related-party transactions between
them and their Relevant Enterprises and the Company and withdraw from voting when a related-party transaction
with them or their Relevant Enterprises is being voted on at a general meeting or a board meeting and execute the
relevant approval procedure and information disclosure duties pursuant to the applicable laws regulations and
regulatory documents.Date of commitment making: 4 November 2021
Term of commitment: Long-standing
Fulfillment: In execution
(3) Commitment maker: Rising Holdings Rising Capital and Hongkong Wah Shing
Contents of Commitment: They have made a commitment that during their direct or indirect holding of FSL 1.activities of themselves strictly abide by the regulatory documents of the CSRC and the SZSEFSL’s Articles of
Association etc. and not harm the interests of the Company or other shareholders of FSL in their production and
operation activities by taking advantage of their position as the controlling shareholder and actual controller; 2.make sure that they or their other controlled subsidiaries branch offices jointly-run or associated companies (the
"Relevant Enterprises" for short) will try their best to avoid or reduce related-party transactions with FSL or FSL’s
subsidiaries; 3. strictly follow the market principle of justness fairness and equal value exchange for necessary
and unavoidable related-party transactions between them and their Relevant Enterprises and FSL and withdraw
from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a general
meeting or a board meeting and execute the relevant approval procedure and information disclosure duties
11 9pursuant to the applicable laws regulations and regulatory documents. Where the aforesaid commitments are
broken and a loss is thus caused for FSL its subsidiaries or FSL’s other shareholders they shall be obliged to
compensate.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfillment: In execution.
(4) Commitment maker: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong
Wah Shing
Contents of Commitment: To protect interests of the Company and other shareholders they have made a
commitment that during their direct or indirect holding of FSL:
1. activities of themselves strictly abide by the regulatory documents of the CSRC and the SZSEFSL’s Articles
of Association etc. and not harm the interests of the Company or other shareholders of FSL in their production
and operation activities by taking advantage of their position as the controlling shareholder and actual controller;
2. make sure that they or their other controlled subsidiaries branch offices jointly-run or associated companies
(the "Relevant Enterprises" for short) will try their best to avoid or reduce related-party transactions with FSL or
FSL’s subsidiaries;
3. strictly follow the market principle of justness fairness and equal value exchange for necessary and
unavoidable related-party transactions between them and their Relevant Enterprises and FSL and withdraw
from voting when a related-party transaction with them or their Relevant Enterprises is being voted on at a
general meeting or a board meeting and execute the relevant approval procedure and information disclosure
duties pursuant to the applicable laws regulations and regulatory documents. We undertake that we will neither
transfer nor convey benefits by taking advantage of related-party transactions nor harm through the improper
exercise of rights for shareholders or other improper means the legitimate rights and interests of the Company
or the other shareholders of the Company.
4. We have disclosed our related parties and related-party transactions during our Reporting Period in full and in
detail as required by the laws and regulations on securities regulation as well as normative documents. Except
for the related-party transactions already disclosed in relevant application documents on the Company's
issuance of A-shares to specific objects in 2023 we and other companies or businesses under our control have
not effected any related-party transactions with FSL or its wholly-owned or majority-owned subsidiaries that
should have been disclosed as required by laws regulations and relevant provisions of securities regulatory
authorities.
5. If we violate the foregoing commitments and thus cause financial losses to FSL and the other shareholders
we shall assume the corresponding legal liability for all the losses of FSL and the other shareholders arising
therefrom.Date of commitment making: 14 March 2023
Term of commitment: Long-standing
Fulfillment: In execution
3. Commitment on Independence
(1) Commitment maker: Electronics Group and Hong Kong Rising Investment
Contents of Commitment: In order to ensure the independence of FSL in business personnel asset organization
and finance Electronics Group and Hong Kong Rising Investment have made the following commitments: 1.They will ensure the independence of FSL in business: (1) They promise that FSL will have the assets personnel
qualifications and capabilities for it to operate independently as well as the ability of independent sustainable
12 0operation in the market. (2) They promise not to intervene in FSL’s business activities other than the execution of
their rights as FSL’s shareholders. (3) They promise that they and their related parties will not be engaged in
business that is substantially in competition with FSL’s business. And (4) They promise that they and their related
parties will try their best to reduce related-party transactions between them and FSL; for necessary and
unavoidable related-party transactions they promise to operate fairly following the market-oriented principle and
at fair prices and execute the transaction procedure and the duty of information disclosure pursuant to the
applicable laws regulations and regulatory documents. 2.They will ensure the independence of FSL in personnel:
(1) They promise that FSL’s GM deputy GMs CFO Company Secretary and other senior management personnel
will work only for and receive remuneration from FSL not holding any positions in them or their other controlled
subsidiaries other than director and supervisor. (2) They promise FSL’s absolute independence from their related
parties in labor human resource and salary management. And (3) They promise to follow the legal procedure in
their recommendation of directors supervisors and senior management personnel to FSL and not to hire or
dismiss employees beyond FSL’s Board of Directors and General Meeting. 3. They will ensure the independence
and completeness of FSL in asset: (1) They promise that FSL will have a production system an auxiliary
production system and supporting facilities for its operation; legally have the ownership or use rights of the land
plants machines trademarks patents and non-patented technology in relation to its production and operation; and
have independent systems for the procurement of raw materials and the sale of its products. (2) They promise that
FSL will have independent and complete assets all under FSL’s control and independently owned and operated by
FSL. And (3) They promise that they and their other controlled subsidiaries will not illegally occupy FSL’s funds
and assets in any way or use FSL’s assets to provide guarantees for the debts of themselves or their other
controlled subsidiaries with. 4. They will ensure the independence of FSL in organization: (1) They promise that
FSL has a sound corporate governance structure as a joint-stock company with an independent and complete
organization structure. (2) They promise that the operational and management organs within FSL will
independently execute their functions according to laws regulations and FSL’s Articles of Association. 5. They
will ensure the independence of FSL in finance: (1) They promise that FSL will have an independent financial
department and financial accounting system with normative independent financial accounting rules. (2) They
promise that FSL will have independent bank accounts and not share bank accounts with its related parties. (3)
They promise that FSL’s financial personnel do not hold concurrent positions in its related parties. (4) They
promise that FSL will independently pay its tax according to law. And (5) They promise that FSL can make
financial decisions independently and that they will not illegally intervene in FSL’s use of its funds.Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
(2) Commitment maker: Rising Holdings
Contents of Commitment: To maintain the independence of the Company the Promisor has made the following
commitments: 1. It will ensure the personnel independence of the Company. It promises to ensure personnel
independence with the Company and GM deputy GMs CFO Secretary of the Board of Directors and other
senior management personnel of the Company will not hold positions other than directors and supervisors in the
enterprises wholly owned controlled or actually controlled by it and its subsidiaries (hereinafter referred to as
"subsidiaries") and will not receive salaries from it or its subsidiaries. 2. It will ensure the asset independence of
the Company. (1) It promises that the Company has independent and complete assets. (2) It promises that it and its
subsidiaries will not illegally occupy the Company’s funds and assets in any way. 3. It will ensure the financial
independence of the Company: (1) It promises that the Company will have an independent financial department
and financial accounting system. (2) It promises that the Company will have a standardized and independent
12 1financial accounting system. (3) It promises that the Company will have independent bank accounts and not share
bank accounts with it. (4) It promises that the Company’s financial personnel do not hold concurrent positions in
it or its subsidiaries. And (5) It promises that the Company can make financial decisions independently and that
they will not illegally intervene in the Company’s use of its funds. 4. It will ensure the independence of the
Company in organization: (1) It promises that the Company can operate independently with an independent and
complete organization structure. (2) It promises that the office and production and business premises of the
Company are separated from those of Rising Holdings Group. And (3) It promises that the Board of Directors the
Supervisory Committee and various functional departments of the Company operate independently and there is
no subordinate relationship with the functional departments of Rising Holdings Group. And 5 It will ensure the
independence of the Company in business: (1) It promises that the Company will have independence in business.And (2) It promises that the Company will have the assets personnel qualifications and capabilities for it to
operate independently as well as the ability of independent sustainable operation in the market.Date of commitment making: 4 November 2021
Term of commitment: Long-standing
Fulfillment: In execution
(3) Commitment maker: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong
Wah Shing
Contents of Commitment:
1. Ensure the independence of FSL in personnel: (1) We promise the absolute independence of FSL and its
subsidiaries (the same below collectively referred to as "FSL") from us and other companies businesses and
economic organisations under our control in labour human resource and salary management. (2) We promise
that FSL's senior management personnel will work only for and receive remuneration from FSL not holding
any positions in us or other companies businesses or economic organisations under our control other than
director and supervisor. (3) We promise not to intervene in the exercise of authority by the Shareholders'
General Meeting and Board of Directors of FSL to decide personnel appointment and removal.
2. Ensure the independence of FSL in organisation: (1) We promise that FSL has a sound corporate governance
structure with an independent and complete organisation structure. (2) We promise that the Shareholders'
General Meeting Board of Directors and Supervisory Committee of FSL will independently execute their
functions according to laws regulations and FSL's Articles of Association. (3) We promise that FSL will have
the right to set up and adjust functional departments independently and will not be subject to rule-violating
intervention from us or other companies businesses or economic organisations under our control. We promise
that neither the superior-subordinate relationship nor mixed ownership and co-office situation exist between
FSL and us or other companies businesses or economic organisations under our control.
3. Ensure the asset independence and integrity of FSL: (1) We promise that FSL will have independent and
complete assets related to production and operations which are not shared with us or other companies
businesses or economic organisations under our control. (2) We promise that FSL's office and business
premises are independent from those of us and other companies businesses and economic organisations under
our control. (3) We promise that except for regular business dealings neither FSL's funds nor assets will be
occupied by us or other companies businesses or economic organisations under our control.
4. Ensure the independence of FSL in business: (1) We promise that FSL has relevant qualifications for
conducting business activities independently is capable of independent autonomous and ongoing operations in
the market and does not rely on us or other companies businesses or economic organisations under our control
in production and operations. (2) We promise that we and other companies businesses and economic
organisations under our control will not engage in business in competition with FSL or other companies
12 2businesses or economic organisations under its control. (3) We promise that we and other companies
businesses and economic organisations under our control will minimise the related-party transactions with FSL
and other companies businesses and economic organisations under its control. For necessary and unavoidable
related-party transactions we promise to operate fairly following the market-oriented principle and at fair prices
and execute relevant approval procedures and the duty of information disclosure pursuant to the applicable laws
regulations and regulatory documents.
5. Ensure the independence of FSL in finance: (1) We promise that FSL will have an independent financial
department and financial accounting system with normative independent financial accounting rules. (2) We
promise that FSL will have independent bank accounts and will not share bank accounts with us or other
companies businesses or economic organisations under our control. (3) We promise that FSL's financial
personnel do not hold concurrent positions in us or other companies businesses or economic organisations
under our control. (4) We promise that FSL can make financial decisions independently and that we will not
intervene in FSL's use of its funds. (5) We promise that FSL will independently pay its tax according to law.If we violate the foregoing commitments we shall be liable for the losses of FSL arising therefrom.Date of commitment making: 14 March 2023
Term of commitment: Long-standing
Fulfillment: In execution
4. Commitment on effective performance of measures to fill up returns
(1) Commitment maker: Rising Holdings Rising Capital Electronics Group Hongkong Wah Shing Hong Kong
Rising Investment and Shenzhen Rising Investment
Contents of Commitment: 1. They promise not to interfere in the operation and management activities of the listed
company beyond their authority and not to encroach on the interests of the listed company. 2. From the date of
issuance of these commitments to the completion of this trading of the listed company if the CSRC makes new
regulatory requirements on measures to fill up returns and commitments of relevant personnel and the above
commitments cannot meet these new regulatory requirements of the CSRC they promise to issue supplementary
commitments according to the latest regulations of the CSRC at that time. 3. They promise to earnestly fulfill the
measures to fill up returns formulated by the listed company and any commitments made by them. If they violate
these commitments and causes losses to the listed company or investors they are willing to bear the compensation
responsibility for the listed company or investors according to law. As one of the subjects responsible for the
measures to fill up returns if they violate the above commitments or refuse to fulfill the above commitments they
agree that the securities regulatory agencies such as the CSRC and the SZSE will punish them or take relevant
regulatory measures in accordance with the relevant regulations and rules they formulated or issued.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfillment: In execution.
(2) Commitment maker: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong Wah
Shing
Contents of Commitment: 1. They promise not to interfere in the operation and management activities of the listed
company beyond their authority and not to encroach on the interests of the listed company.
2. From the date of issuance of these commitments to the completion of this offering of the Company to specific
targets if the CSRC makes new regulatory requirements on measures to fill up returns and commitments of
relevant personnel and the above commitments cannot meet these new regulatory requirements of the CSRC they
promise to issue supplementary commitments according to the latest regulations of the CSRC at that time.
12 33. They promise to earnestly fulfill the measures to fill up returns formulated by the listed company and any
commitments made by them. If they violate these commitments and causes losses to the listed company or
investors they are willing to bear the compensation responsibility for the listed company or investors according to
law.As one of the subjects responsible for the measures to fill up returns if they violate the above commitments or
refuse to fulfill the above commitments they agree that the securities regulatory agencies such as the CSRC and
the SZSE will punish them or take relevant regulatory measures in accordance with the relevant regulations and
rules they formulated or issued.Date of commitment making: 14 March 2023.Term of commitment: Long-standing.Fulfillment: In execution.
5. Commitment on measures to fill up returns for risks arising from diluting immediate return in major
asset restructuring
Commitment markers: Directors and senior management of the Company
Contents of Commitment: 1. We promise not to transfer benefits to other units or individuals free of charge or
under unfair conditions and not to harm the interests of the Company in any other ways. 2. We promise to
restrain position-related consumption behavior. 3. We promise not to use the Company's assets to engage in
investment and consumption activities unrelated to the performance of duties. 4. We promise that the future
remuneration system formulated by the Board of Directors or the Remuneration and Assessment Committee
will be linked to the implementation of the Company's measures to fill up returns. 5. If the Company formulates
an equity incentive plan in the future we will actively promote the exercise conditions of the future equity
incentive plan to be linked with the implementation of the Company's measures to fill up returns. 6. From the
date of issuance of these commitments to the completion of this major asset restructuring of the Company if the
CSRC makes other new regulatory provisions on measures to fill up returns and the relevant commitments and
these commitments cannot meet these provisions of the CSRC we promise to issue supplementary
commitments in accordance with the latest regulations of the CSRC at that time. 7. We promise to earnestly
fulfil the compensation measures formulated by the Company and any commitments we make. If we violate any
of these commitments and cause losses to the Company or investors we are willing to bear corresponding legal
responsibilities to the Company or investors according to law.Date of commitment making: 27 October 2021
Term of commitment: Long-standing.Fulfilment: In execution
6. Commitment on compensation for possible violations of laws and regulations by NationStar
Optoelectronics
Commitment maker: Rising Holdings Electronics Group and Rising Capital
Contents of Commitment: If NationStar Optoelectronics is subject to administrative penalties such as
accountability and fines by relevant competent departments after the completion of this trading due to the illegal
acts of NationStar Optoelectronics before the completion of this acquisition they promise to fully bear the losses
of NATIONSTAR or FSL as well as the expenses and fees under punishment or recourse to ensure that
NationStar Optoelectronics or FSL will not suffer any economic losses.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.
12 4Fulfillment: In execution.
7. Commitment on the truthfulness accuracy and completeness of the information provided during this
major asset restructuring
(1) Commitment maker: Rising Holdings Electronics Group and Rising Capital
Contents of Commitment: 1. They promise that the information provided is true accurate and complete and there
are no false records misleading statements or material omissions. 2. They have provided relevant information and
documents (including but not limited to original written materials duplicate materials or oral testimony etc.)
related to this trading to the intermediaries. They promise that the copies or photocopies of the documents and
materials provided are consistent with the originals and that the signatures and seals of the documents and
materials are authentic and the signatories of the documents have been legally authorized and effectively signed
the documents; that there are no false records misleading statements or material omissions. 3. They promise that
the explanations and confirmations issued by them are true accurate and complete and there are no false records
misleading statements or material omissions. 4. During this trading they will disclose the information about this
trading in a timely manner in accordance with relevant laws and regulations the CSRC and the SZSE and ensure
the authenticity accuracy and completeness of such information. 5. They shall bear legal responsibility for the
authenticity accuracy and completeness of the information documents materials explanations and confirmations
provided. In case of any violation or losses caused to the listed company investors parties to the trading and
intermediaries participating in this trading they will be liable for compensation according to law. 6. Where the
information provided or disclosed by them in this trading is suspected of false records misleading statements or
material omissions and they are filed for investigation by the judicial organ or by the CSRC the shares with
interests in the listed company will not be transferred until the investigation conclusion is formed.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfillment: In execution.
(2) Commitment markers: Directors and senior management of the Company
Contents of Commitment: 1. We have provided relevant information and documents (including but not limited to
original written materials duplicate materials or oral testimony etc.) related to this trading to the intermediaries
providing professional services of auditing assessment legal and financial consultancy for this trading. We
promise that the copies or photocopies of the documents and materials provided are consistent with the originals
and that the signatures and seals of the documents and materials are authentic and the signatories of the
documents have been legally authorized and effectively signed the documents; that the provided information and
documents are authentic accurate and complete and that there are no false records misleading statements or
material omissions. We also promise to bear individual and joint and several liability. 2. We promise that the
information provided is true accurate and complete. In case of any losses caused to investors due to any false
presentations misleading statements or material omissions in the information provided we will be liable for
compensation according to law. 3. Where the information provided or disclosed by us in this trading is suspected
of false records misleading statements or material omissions and we are filed for investigation by the judicial
organ or by the CSRC the shares with interests in the listed company will not be transferred until the investigation
conclusion is formed.Date of commitment making: 27 October 2021
Term of commitment: Long-standing.Fulfilment: In execution
12 58. Commitment on the clarity of the underlying assets of this major asset restructuring
(1) Commitment maker: Electronics Group
Contents of Commitment: Electronics Group promises that the 100% equity of Sigma it held is clear in ownership
and is not subject to any dispute or potential dispute and there is no situation affecting its legal existence; and
there is no pending or potential litigation arbitration and any other administrative or judicial procedure that may
lead to the seizure freezing expropriation or restriction of transfer of the above-mentioned equity by the relevant
judicial or administrative organs. There is no entrusted shareholding or trust shareholding restriction or
prohibition of transfer of the above-mentioned equity controlled by Electronics Group.Term of commitment: Long-standing.Fulfillment: In execution.
(2) Commitment maker: Rising Holdings and Rising Capital
Contents of Commitment: Rising Holdings Group and Rising Capital promise that the shares of NationStar
Optoelectronics it held is clear in ownership and is not subject to any dispute or potential dispute and there is no
situation affecting its legal existence; the above shares are not subject to any other pledges guarantees or third-
party interests or restrictions and there is no pending or potential litigation arbitration and any other
administrative or judicial procedure that may lead to the seizure freezing expropriation or restriction of transfer
of the above-mentioned equity by the relevant judicial or administrative organs. There is no entrusted
shareholding or trust shareholding restriction or prohibition of transfer of the above-mentioned equity controlled
by Rising Group and Rising Capital.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfillment: In execution.
9. Commitment on the truthfulness accuracy and completeness of the information provided in
application documents for issuance
Commitment maker: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong Wah
Shing
Contents of Commitment: 1. They promise that the information provided for the specific targets of this offering is
true accurate and complete and there are no false records misleading statements or material omissions. 2. They
have provided relevant information and documents (including but not limited to original written materials
duplicate materials or oral testimony etc.) to the intermediaries engaging in this offering to specific targets. They
promise that the copies or photocopies of the documents and materials provided are consistent with the originals
and that the signatures and seals of the documents and materials are authentic and the signatories of the
documents have been legally authorized and effectively signed the documents; that there are no false records
misleading statements or material omissions. 3. They promise that the explanations and confirmations issued by
them for this offering to specific targets are true accurate and complete and there are no false records misleading
statements or material omissions. 4. During the application and review period of this offering to specific targets
they will disclose relevant information in a timely manner in accordance with relevant laws and regulations the
CSRC and the SZSE and ensure the authenticity accuracy and completeness of such information. 5. They shall
bear legal responsibility for the authenticity accuracy and completeness of the information documents materials
explanations and confirmations provided. In case of any violation or losses caused to the listed company investors
and intermediaries participating in the preparation for this offering to specific targets they will be liable for
compensation according to law. 6. Where the information provided or disclosed by them in this offering to
specific targets is suspected of false records misleading statements or material omissions and they are filed for
12 6investigation by the judicial organ or by the CSRC the shares with interests in the listed company will not be
transferred until the investigation conclusion is formed.Date of commitment making: 14 March 2023.Term of commitment: Long-standing.Fulfillment: In execution.
10. Commitment on the subscription for A-shares offered to specific objects in 2023
Commitment maker: Rising Holdings
Contents of Commitment: 1. We agree to subscribe for A-shares offered to specific objects with a subscription
amount of 25% of the total amount of funds raised. The subscription volume shall be determined according to
the issuer's actual issue price and the subscription amount of the subscribers after the Stock Subscription
Agreement of Foshan Electrical and Lighting Co. Ltd. comes into force. In the actual issuance phase ahead if
the subscription volume calculated based on the ultimate inquiry result contains fractional shares such shares
shall be rounded off. 2. The base day for pricing the shares to be offered to specific objects is the first day of the
issuance period. The issue price shall not be lower than 80% of the average trading price of FSL's A-shares for
the 20 trading days prior to the base day for pricing (that is the "bottom issue price of this issuance") which
equals the total amount of the Company's shares traded in the 20 trading days prior to the base day for pricing
divided by the total volume of the Company's shares traded in this period. Upon the review and approval by the
Shenzhen Stock Exchange (SZSE) of the issuance of shares to specific objects and the consent of the China
Securities Regulatory Commission (CSRC) to the registration the ultimate issue price shall be determined by
our Board of Directors with authorisation of the Shareholders' General Meeting and in consultation with the
sponsor (lead underwriter) according to the subscription offers from the issuance objects in compliance with the
relevant provisions of the CSRC and SZSE and the principle of price preference. In case of ex-rights or ex-
dividend matters occurring to FSL's shares between the base day for pricing and the date of issuance such as
dividend payout bonus issue and capital reserve converted into share capital the bottom issue price of the
issuance of shares to specific objects shall be adjusted accordingly. We shall not participate in the inquiry
process of the pricing of this issuance but undertake to accept the market inquiry result and to subscribe for the
shares to be offered by the Company to specific objects at the same price as other issuance objects. If the issue
price of this issuance cannot be determined through the market inquiry we will subscribe for the shares offered
by FSL to specific objects at the bottom issue price of this issuance. 3. We agree not to transfer the shares for
which we subscribe this time within 18 months of the completion of the issuance of shares to specific objects.However if we and parties acting in concert have increased our holdings by more than 2% of the shares FSL
already offered in the 12 months prior to the completion of this issuance we shall not transfer the shares for
which we subscribe this time within 36 months of the completion of this issuance.Date of commitment making: 14 March 2023
Term of commitment: Until the expiration of the restriction period for the shares issued to Rising Holdings
Group in 2023.Fulfilment: In execution.
11. Commitment on the absence of acceptance of financial assistance compensation promise of benefits
or arrangements agreed upon otherwise
Commitment maker: Rising Holdings
Contents of Commitment: The funds used by us to subscribe for the shares offered this time are all legal self-
owned funds. There is no external fund raising proxy holding structural arrangement or direct or indirect use of
12 7funds of FSL and its related parties (except for us) for this subscription. There is no financial support
compensation promise of benefits or other arrangements by FSL or its controlling shareholder actual controller
(except for us) or substantial shareholders to me directly or through their stakeholders. Our subscription for the
shares of this issuance is free of shareholding as prohibited by laws and regulations. The intermediary for this
issuance or its head senior management members or handling personnel are free of illegal shareholding or
improper transfer of benefits.Date of commitment making: 14 March 2023
Term of commitment: Until the completion of A-shares issuance to specific objects in 2023.Fulfilment: In execution.
12. About non-occupation of the Company's funds or assets
Commitment makers: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong Wah
Shing
Contents of Commitment: As at the date of issuance of the Proposal on the Company's Issuance of A-Shares to
Specific Objects in 2023 of FSL we had not occupied the Company's funds or assets. Nor had the Company
provided illegal guarantees for us. Upon the completion of this issuance the Company shall continue to strictly
observe relevant laws regulations and internal control systems to prevent the provision by the Company of
illegal guarantees for us.Date of commitment making: 14 March 2023
Term of commitment: Until the completion of A-shares issuance to specific objects in 2023.Fulfilment: In execution.
13. Commitment on the measures to fill up immediate returns diluted by the issuance of A-shares to
specific objects
Commitment markers: Directors and senior management of the Company
Contents of Commitment: 1. We promise not to transfer benefits to other units or individuals free of charge or
under unfair conditions and not to harm the interests of the Company in any other ways. 2. We promise to
restrain position-related consumption behaviour. 3. We promise not to use the Company's assets to engage in
investment and consumption activities unrelated to the performance of duties. 4. We promise that the
remuneration system formulated by the Board of Directors or the Remuneration and Assessment Committee is
linked to the implementation of the Company's measures to fill up returns. 5. If the Company implements an
equity incentive plan in the future the exercise conditions of the future equity incentive plan will be linked with
the implementation of the Company's measures to fill up returns. 6. From the date of issuance of these
commitments to the completion of the issuance of shares to specific objects if the CSRC makes other new
regulatory provisions on measures to fill up returns and the relevant commitments and these commitments
cannot meet these provisions of the CSRC we promise to issue supplementary commitments in accordance with
the latest regulations of the CSRC at that time. As one of the subjects responsible for the measures to fill up
returns if we violate the above commitments or refuse to fulfil the above commitments we agree that the
securities regulatory agencies such as the CSRC and the SZSE will punish us or take relevant regulatory
measures in accordance with the relevant regulations and rules they formulated or issued.Date of commitment making: 14 March 2023
Term of commitment: Long-standing.Fulfilment: In execution.
12 814. Commitment on matters on special self-inspection of the real estate business
Commitment markers: Rising Holdings Electronics Group Hong Kong Rising Investment Hongkong Wah
Shing and the directors and senior management of the Company
Contents of Commitment: The Self-inspection Report has truthfully disclosed the self-inspection of the real
estate development projects of the Company and its subsidiaries between 1 January 2020 and 31 December
2022. If the Company is identified with illegalities or violations not disclosed as required by the self-inspection
such as idle land land speculation holding real estate projects from selling and house price rigging thus
causing losses to itself and the investors we/I will be liable for compensation in line with relevant laws
regulations and requirements of securities regulatory authorities.Date of commitment making: 14 March 2023
Term of commitment: Long-standing.Fulfilment: In execution.
15. Commitment on the confirmation of and commitment to matters concerning the absence of a
reduction in the shares in the issuer
Commitment makers: Rising Holdings Electronics Group Hong Kong Rising Investment and Hongkong Wah
Shing
1. We confirm that between the date six months prior to the date of the resolution of the Board of Directors on
this issuance of shares to specific objects to the issuance of this letter we have not reduced our shares in FSL. 2.The base day for pricing the shares to be offered by FSL to specific objects is the first day of the issuance period.We promise not to transfer our shares in FSL within six months from the date of issuance of this letter to the
completion of this issuance.Date of commitment making: 5 July 2023
Term of commitment: Six months from the date of issuance of this commitment to the completion of this
issuance.Fulfilment: In execution.
16. Commitment on share subscription
Commitment maker: Rising Holdings
If no one quotes in this issuance of shares to specific objects we will still participate in the subscription.However we shall not participate in the market inquiry of the pricing of this issuance but undertake to accept
the market inquiry result and to subscribe at the same price as investors. If the issue price of this issuance
cannot be determined through the foregoing market inquiry we will subscribe for the shares offered by FSL to
specific objects at the bottom issue price of this issuance. The subscription amount shall be 25% of the total
amount of funds raised this time. The subscription volume shall be determined according to the actual
subscription amount and issue price.Date of commitment making: 5 July 2023
Term of commitment: Till the completion of the issuance of A-shares to specific objects in 2023.Fulfilment: In execution.
8. Other
Naught
12 9XIII. Stock Payment
1. The Overall Situation of Stock Payment
□Applicable □ Not applicable
2. The Stock Payment Settled in Equity
□Applicable □ Not applicable
3. The Stock Payment Settled in Cash
□Applicable □ Not applicable
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Commitment to the development of Haikou plot
In November 2021 Hainan Technology a wholly-owned subsidiary of the Company acquired an industrial land
located in Mei’an Science and Technology New City Haikou with a land area of 34931.13 square meters and a
land price of RMB26596784.43. In the same month Hainan Technology signed the Agreement on Industrial
Project Development and Land Access with Haikou National High-tech Industrial Development Zone
Management Committee (hereinafter referred to as the “Haikou Development Zone Management Committee”).The agreement stipulates that the above-mentioned plot is used for the development of marine lighting R&D
and manufacturing base projects and the investment of fixed assets is approximately RMB314 million
(including plants equipment and land equivalent to RMB6 million per mu (1 mu equals to 666.67 square
meters). Hainan Technology promises to complete the planning scheme design within two months from the date
of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land;
complete the construction drawing design within three months after completing the planning scheme design and
obtain the Building Construction Permits and start construction at the same time (subject to the foundation
concrete pouring of the main buildings). The project will be put into production within 18 months from the date
of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land. From
the date of signing the contract to the first year after the project is put into production the accumulated tax
payment is not less than RMB10 million; the accumulated tax payment in the first two years is not less than
RMB27.4 million; the accumulated tax payment in the first three years is not less than RMB67.1 million; the
13 0accumulated tax payment in the first four years is not less than RMB117 million; the accumulated tax payment
in the five years is not less than RMB203 million. The total industrial output value (or revenue) in the first year
after the project is put into production is not less than RMB218 million; the accumulated value in the first two
years is not less than RMB433 million; the accumulated value in the first three years is not less than RMB929
million; the accumulated value in the first four years is not less than RMB1578 million; the accumulated value
in the five years is not less than RMB2.62 billion. If the project fails to start construction within 12 months from
the date of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction
Land due to Hainan Technology reasons the Haikou Development Zone Management Committee has the right
to unilaterally terminate the contract and the municipal government will recover the land use rights according to
law; if the total amount of tax paid in the year after the project is put into production does not reach the total
annual tax payment as agreed Hainan Technology shall pay liquidated damages to the Haikou Development
Zone Management Committee according to the difference; if Hainan Technology has idle land not due to
government reasons and force majeure the municipal government shall collect idle land fees or recover the
right to use state-owned construction land.
2. Contingency
(1) Significant Contingency on Balance Sheet Date
1. Litigation between FSL Zhida Electric Technology Co. Ltd. and Shenzhen Secket Electrician Technology
Co. Ltd.The plaintiff Shenzhen Secket Electrician Technology Co. Ltd. (hereinafter referred to as “Secket”) claimed
that it enjoyed the utility model patent of a safety socket and that the defendants Chengdu ArGangle Insulated
Electrical Manufacturing Co. Ltd. Chengdu ArGangle Yuanhu Technology Co. Ltd. FSL Zhida Electric
Technology Co. Ltd. and Zhejiang Tmall Network Co. Ltd. produced and sold the products involved without
its authorization. Therefore the plaintiff sued to the court for compensation of RMB11 million. The plaintiff
filed the lawsuit in three cases and Guangzhou Intellectual Property Court heard the three cases together [Case
No.: (2021) Y. 73 M.ZH. No. 1775 1776 and 1880]. The case was heard on 25 April 2022 for the second time
on 20 June for the third time on 23 September and for the fourth time on 22 November and has not been
concluded as of the date of this report.
2. Litigation between the Company and Xuzhou Longxiang Lighting Equipment Sales Co. Ltd.
Xuzhou Longxiang Lighting Equipment Sales Co. Ltd. (hereinafter referred to as “Longxiang”) is a distributor
of the Company for many years and defaulted on the payment for goods of the Company totalling
RMB2427830.95 as of August 2022. Therefore the Company filed a lawsuit with Chancheng District People’s
Court [(2022) Y. 0604 M.ZH. No. 32528]. The trial of the case was held on 21 February 2023 in the Foshan
Chancheng District People’s Court. As of the date of this report the above case has not been concluded. The
Company owns the property of Long Xiang as collateral and has provided a bad debt provision of
RMB559463.71 based on expected credit losses.
3. Litigation between Liuzhou Lighting Nanning Liaowang and Laster Electronic Tech (Dongguan) Co. Ltd.
Laster Electronic Tech (Dongguan) Co. Ltd. (hereinafter referred to as "Laster Electronic") is the supplier of
Liuzhou Guige and Nanning Liaowang. Laster Electronic requests that: 1. Liuzhou Lighting shall pay the
arrears of RMB77932.00 and the corresponding interest loss and compensate for the material loss
RMB405461.00 caused by the production of the products in question and interest loss of RMB25337.10 as
well as compensate for the loss of storage fee and labor storage fee of RMB26000.00 caused by the material
stagnation; 2 Nanning Liaowang shall pay the arrears of RMB34822.00 and the corresponding interest loss
13 1and compensate for the material loss of RMB401029.00 and interest loss of RMB23385.81 caused by the
production of the product in question as well as compensate for the loss of storage fee and manpower storage
fee of RMB24000.00 caused by the material stagnation; 3.Liuzhou Lighting and Nanning Liaowang shall pay
RMB309793.00 and RMB1595680.00 respectively to Laster Electronic for the apportioned cost of mold test.The first trial of the lawsuit is to be notified by the court and the result of the lawsuit is not yet available.
4. About the litigation between the Company and Guangzhou Tianli Construction Co. Ltd.
Guangzhou Tianli Construction Co. Ltd. (hereinafter referred to as "Guangzhou Tianli") purchased wires and
cables from FSL for which the payment was RMB5953278.71 Despite several rounds of collection
Guangzhou Tianli still refused to pay. Therefore the Company filed a lawsuit [Case (2023) Y. 0104 M.CH. No.
9027] with the People's Court of Yuexiu District Guangzhou which tried the case on 14 June 2023. As of the
date of this report the above case has not been concluded.
5. About the litigation between the Company and Wang Jundao Peng Xiaoli and Dali Haofeng Furniture Store
in Nanhai District Foshan City
The defendant (hereinafter referred to as the "Defendant") Haofeng Furniture leased from the Company the first
second and third floors of the property located at 1 1st Lecheng Road Luocun Subdistrict Nanhai District and
the plaintiffs (hereinafter collectively referred to as the "Plaintiff") Wang Jundao and Peng Xiaoli purchased
from the Company a ground floor and 24 residential units in the middle block of Buildings No. 1 located at 1
1st Lecheng Road Luocun Subdistrict. According to the Plaintiff after the foregoing properties were handed
over the Defendant shall pay the Plaintiff the rental for the shops on the ground floor but the Defendant
refused to do so and even still occupied part of the properties. Therefore the Plaintiff filed a lawsuit [Case
(2023) Y. 0605 M.CH. No. 9004] with the People's Court of Nanhai District Foshan City to claim
RMB2664820.00from the Defendant as compensation for all costs. In the case the court added the Company
as a third party. The case was tried on 4 July 2023. As of the date of this report the above case has not been
concluded.
6. Litigation between NationStar Optoelectronics and Guangzhou CM Punk Optoelectronics Co. Ltd.
Guangzhou CM Punk Optoelectronics Co. Ltd (hereinafter referred to as "CM Punk") and Foshan
NationStar Optoelectronics Co. Ltd. over the sales contract both parties disputed the goods payment and
compensation for quality defects in products and thus filed a lawsuit with the court. CM Punk sued
NationStar and requested the latter to pay for the goods and pay the interest totalling approximately
RMB4.36 million (including approximately RMB3.77 million for the goods). NationStar defended itself
by arguing that CM Punk's claim was not supported by factual and legal bases and lodged a counterclaim
for approximately RMB2.02 million from CM Punk as an indemnity for quality losses. As of the date of
this report the case is in the process of first instance hearing and the court has not yet decided.
7. Litigation between Nanyang Baoli and the People's Government of Zhechuan
On 2 November 2009 the People's Government of Zhechuan released the Notice of Zhechuan County on
the Preferential Policies for Accelerating the Development of Industrial Clusters (Provisional) which
made it clear that the indemnities paid by eligible industrial enterprises for the land they acquired shall be
fully reimbursed by the financial authority of the county. On 12 October 2011 Nanyang Baoli Vanadium
Industry Co. Ltd. ("Nanyang Baoli") submitted the Application of Nanyang Baoli Vanadium Industry Co.Ltd. for Preferential Policies for the Efficient and Clean Vanadium Ore Extraction Project to the People's
Government of Zhechuan and applied to use land. Additionally by the application Nanyang Baoli shall
pay the taxes and dues arising from the land acquisition in the early stage. After the land is transferred to
Nanyang Baoli upon legal bid invitation auction and listing the government of the place of receipt shall
subsidize Nanyang Baoli in two installments for all the land acquisition payments except for the
13 2endowment insurance of farmers in the place where land is acquired and the land reporting fees. The
People's Government of Zhechuan approved the application by stamping it with the seal and specified that
"land costs shall be subject to Document X.F. [2012] No. 17. Specifically to meet the investment
requirements investors shall bear only RMB30000 per mu (a mu is equivalent to approximately 666.667
square meters) and the People's Government of Zhechuan shall be responsible for the remaining costs and
completing the certificate application." Subsequently Nanyang Baoli paid a total of RMB10994400 to
the People's Government of Zhechuan. For the land intended as the project site formalities for land
acquisition and for bid invitation auction and listing have not yet been completed and initiated
respectively. As a result Nanyang Baoli has not obtained the land use right for the land in question and
the land remains the collective land as it has not yet been acquired. At present the People's Government of
Zhechuan is unable to obtain land use approval to complete the land acquisition and hand over the land to
Nanyang Baoli. Nor shall it have the right to transfer the foregoing land. Hence Nanyang Baoli has filed a
lawsuit with the Nanyang Intermediate People's Court requesting a refund of the advance payment and an
indemnity for its losses. Moreover Nanyang Baoli has not yet carried out exploitation since its inception
but the mining concession has expired. Therefore Nanyang Baoli requested a refund of the deposit of
RMB100000 for environmental governance and restoration transferred to the segregated account of the
Off-budget Fund Management Bureau of Zhechuan County for deposits for environmental governance and
restoration of mines. The case was accepted by the Nanyang Intermediate People's Court on 24 March
2023 and came to trial on 16 May 2023.As of the date of this report the above case has not been
concluded.
(2) In Despite of no Significant Contingency to Disclose the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other
As of 30 June 2023 mutual guarantees among Nanning Liaowang and its subsidiaries were as follows
(RMB’0000):
Type of Guarantee Guarantee
No. Principal debtor Principal debtee Guarantor
guarantee amount balance
Nanning Nanning Liaowang Auto Lamp Co. Ltd.Nanning
Liaowang Auto Liuzhou Guige Fuxuan Technology Co.
1 Branch of Mortgage 4500.00 1547.33
Lamp Co. Ltd. Ltd. Liuzhou Guige Lighting Technology
Industrial Bank
(note 1) Co. Ltd.Chongqing
Nanning Nanning Liaowang Auto Lamp Co. Ltd.Guinuo Lighting
2 Branch of Chongqing Guinuo Lighting Technology Mortgage 9900.00 5826.87
Technology Co.Industrial Bank Co. Ltd.Ltd. (note 2)
Liuzhou Guige Nanning Liaowang Auto Lamp Co. Ltd.Nanning
Lighting Liuzhou Guige Fuxuan Technology Co.
3 Branch of Mortgage 9600.00 9600.00
Technology Co. Ltd. Liuzhou Guige Lighting Technology
Industrial Bank
Ltd. (note 3) Co. Ltd.Total —— —— —— 24000.00 16974.20
Note 1: Nanning Liaowang and Nanning Branch of Industrial Bank entered into the Maximum Financing
13 3Agreement (X.Y.G.CH.B.R.Z.Z. [2022] No. (01)) to conduct a bill transaction of RMB15473300. Nanning
Liaowang provides mortgage guarantee with the immovable property owned as collateral and the balance of its
creditor's rights does not exceed the maximum mortgage principal of RMB69139100. The mortgage amount is
valid from 25 April 2022 to 31 December 2025 and the guarantee amount is RMB45 million. The mortgaged
real estate is a) Y.G. (2017) N.N.S.B.D.CH.Q.ZH. No. 0065501; b) E.G. (2017) N.N.S.B.D.CH.Q.ZH. No.
0065499; c) S.G. (2017) N.N.S.B.D.CH.Q.ZH. No. 0065498; d) S.G. (2017) N.N.S.B.D.CH.Q.ZH. No.
0065497.
Note 2: Nanning Liaowang and Nanning Branch of Industrial Bank Co. Ltd. entered into the Working Capital
Loan Contracts numbered WYZH2022021100314 and WYZH2022021100248 with the loan amounts of
RMB19.8 million (from 11 February 2022 to 11 February 2023) and RMB30.2 million (from 11 February 2022
to 11 February 2023) respectively. The foregoing transactions were closed out on 11 February 2023. Nanning
Liaowang and Nanning Branch of Industrial Bank Co. Ltd. entered into the Master Agreement on Local Letter
of Credit Financing numbered LD2302073907 with the loan amount of RMB50 million (from 7 February
2023 to 8 February 2024). Chongqing Guinuo Lighting Technology Co. Ltd. (Chongqing Guinuo) provides
mortgage guarantee with the immovable property owned as collateral and the balance of its creditor's rights
does not exceed the maximum mortgage principal of RM122294700. The guarantee amount is RMB99 million
and the mortgage amount is valid from 15 June 2020 to 15 June 2023. The mortgaged real estate is a) Y.Y.
(2020) L.J.X.Q.B.D.CH.Q. No. 000436821 b) E.Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437330 c) S.Y. (2020)
L.J.X.Q.B.D.CH.Q. No. 000437429 and d) S.Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437448.Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Fixed Asset Loan Contract
numbered CQ2023-477 with the contract amount being RMB50 million (from 21 June 2023 to 20 June 2026).As at 30 June 2023 RMB8268700 had been granted. The mortgage amount is valid from 25 May 2023 to 24
May 2024. Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Maximum Mortgage
Contract numbered X.Y.Y.L.J.G.N.D. No. 2023001. The mortgaged real estate is a) Y. (2020)
L.J.X.Q.B.D.CH.Q. No. 000436821 b) Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437330 c) Y. (2020)
L.J.X.Q.B.D.CH.Q. No. 00437448 and d) Y. (2020) L.J.X.Q.B.D.CH.Q. No. 000437429.Note 3: Liuzhou Fuxuan and Nanning Branch of Industrial Bank Co. Ltd. entered into the Working Capital
Loan Contract numbered WYZH2022050700423 with a loan of RMB15 million (from 7 May 2022 to 7 May
2023). Liuzhou Guige Photoelectric Technology Co. Ltd. (Liuzhou Guige) and Nanning Branch of Industrial
Bank Co. Ltd. entered into the Agreement on Banker's Acceptance Financing Business Cooperation
(X.Y.G.CH.B.SH.X. [2022] No. 1002) to conduct a bill transaction of RMB20 million (from 5 May 2022 to 7
May 2023). The foregoing transactions have been closed out. Liuzhou Fuxuan and Nanning Branch of
Industrial Bank Co. Ltd. entered into the Working Capital Loan Contract numbered WYZH2022091600234
with a loan of RMB35 million (from 16 September 2022 to 16 September 2023). In the guarantee contract
Liuzhou Guige provides mortgage guarantee with the immovable property owned as collateral and the balance
of its creditor's rights does not exceed RMB139943700. The guarantee amount is RMB96 million and valid
from 24 April 2022 to 31 December 2025. The mortgaged real estate is: a) Y.G. (2019) L.ZH.SH.B.D.CH.Q.No. 0191988 located at No. 1 Factory Building No. 12 Hengsi Road Cheyuan; b) E.G. (2019)
L.ZH.SH.B.D.CH.Q. No. 0191991 located in the mould Centre of No. 12 Hengsi Road Cheyuan; c) S.G.
(2019) L.ZH.SH.B.D.CH.Q. No. 0191994 located in the logistics gate guard room at No. 12 Hengsi Road
Cheyuan; d) S.G. (2019) L.ZH.SH.B.D.CH.Q. No. 0191995 located in the guard room of Gate 12 Hengsi Road
Cheyuan.
13 4XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught
2. Profit Distribution
Naught
3. Sales Return
Naught
4. Notes to Other Events after Balance Sheet Date
Naught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
Naught
2. Debt Restructuring
Naught
3. Assets Replacement
(1) Non-monetary Assets Exchange
Naught
(2) Other Assets Replacement
Naught
4. Pension Plans
In accordance with provisions of Measures for Enterprise Annuity (RSBL No. 36) Measures for Managing
Enterprise Annuity Fund (RSBL No. 11) and other policies the Company has formulated the Enterprise Annuity
Plan of Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as the “Plan”).The Plan adopts the corporate trusteeship mode. The collected enterprise annuity fund will be managed by the
trustee entrusted by Foshan Electrical and Lighting Co. Ltd. with the Enterprise Annuity Fund Trusteeship
Contract. And the trustee of the enterprise annuity fund will entrust eligible account managers custodians and
investment managers to provide unified related services. The expenses required shall be jointly borne by the
13 5Company and the employees. The payment channels of the Company shall be implemented according to
relevant regulations of the state and the part that shall be paid by employees themselves will be withheld and
paid by the Company from their salaries.The Plan has been filed at Chancheng District Human Resources and Social Security Bureau of Foshan City and
implemented since 1 June 2022. The management of the enterprise annuity fund is subject to the supervision
and inspection of relevant state departments.
5. Discontinued Operations
Naught
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
In accordance with the internal organization structure management requirements and internal report system the
Company identifies the reporting segment based on the operating segment and discloses the segment
information. The Company divides its business into two operating segments on the basis of which it identifies
two reporting segments namely the general and automotive lighting product segment and the LED packaging
modules and other products segment. Segment reporting information is disclosed in line with the accounting
policies and measurement criteria adopted by each segment when reporting to the management. Such
measurement standards are consistent with the accounting policies and measurement criteria used for financial
statements.
(2) The Financial Information of Reportable Segment
LED packaging and
General lighting and
Item component products Offset among segments Total
vehicle lamp products
and other products
I. Operating revenue 2829149431.23 1758744095.83 -21830798.04 4566062729.02
II. Cost of sales 2216663649.68 1537803485.99 -20992306.79 3733474828.88
III. Income from
investments to joint 1186031.53 1470664.40 -1470664.40 1186031.53
ventures and associates
IV. Credit impairment
-16431945.66-2467862.94-47612.43-18947421.03
loss
V. Asset impairment
-4211706.74-12179181.99-16390888.73
loss
VI. Depreciation and
115507761.79190292917.45-381130.02305419549.22
amortization cost
VII. Total profits 204718353.73 56700512.58 -5009213.53 256409652.78
VIII. Income tax
28534078.562896059.62-125773.6931304364.49
expense
IX. Net profits 176184275.17 53804452.96 -4883439.84 225105288.29
X. Total assets 9680174630.01 6310970021.75 -871200829.00 15119943822.76
XI. Total liabilities 4014157764.30 2540730138.30 -45299349.79 6509588552.81
(3) If there Was no Reportable Segment or the Total Amount of Assets and Liabilities of Each Reportable
Segment Could not Be Reported Relevant Reasons Shall Be Clearly Stated
Naught
13 6(4) Other notes
Naught
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught
8. Other
(1) Pre-plan for the Issuance of A-shares to Specific Objects in 2023
The Company intends to raise gross proceeds of no more than RMB1094.5518 million through an offering of
A-stock shares to specific parties. The amount exclusive of the issuance costs will be used to invest in the FSL
automation and digital transformation construction project the FSL Hainan Industrial Park Phase I the
intelligent street light construction project the automotive lamp module production and construction project
and the R&D centre construction project. The said share offering plan has been approved at the 39th Meeting of
the Ninth Board of Directors and a general meeting of shareholders on 14 March 2023 and 31 March 2023
respectively as well as by the Public Offering Review Centre of the Shenzhen Stock Exchange on 12 July 2023.The plan is still subject to final approval of the CSRC before implementation. And there is uncertainty with
respect to the said approval and the timing.
(2) Equity Incentive Plan
On 12 June 2023 the 2023 Restricted Share Incentive Plan (Draft) and Its Summary together with other
relevant proposals were approved at the 44th Meeting of the Ninth Board of Directors and the 22nd Meeting of
the Ninth Supervisory Committee. As such it was approved to grant no more than 13000000 restricted shares
(accounting for 0.95% of the Company’s total share capital of 1361.9946 million shares at the date of the
announcement on the draft plan of the incentive plan) to 262 awardees. To be specific there were 11.7 million
shares for the first grant accounting for 90.00% of the total grant under the incentive plan; and there were 1.3
million reserved shares accounting for 10.00% of the total grant under the incentive plan. The restricted shares
were RMB A-stock ordinary shares repurchased by the Company in its repurchased special securities account.And the grant price for the first grant was RMB3.81/share. This equity incentive plan is subject to approval by
the State-owned Assets Supervision and Administration Commission of Guangdong Province and a general
meeting of shareholders of the Company. For further information see the 2023 Restricted Share Incentive Plan
13 7(Draft) and Its Summary and other relevant proposals that have been disclosed on http://www.cninfo.com.cn/
dated 13 June 2023.
（3）Demolition Matters of Nanjing Fozhao
According to the Decision of Nanjing Lishui District People's Government on House Expropriation on State-
owned Land of Honglan Street Affordable Housing Project in Lishui District (NLFZ Zi [2020] No.18) The
house owned by Nanjing Fozhao a wholly-owned subsidiary of the Company located at 688 Jinniu North Road
Honglan Street Lishui District Nanjing (the total construction area of the house is 44558.09 square meters
which is an industrial house; The land use right covers an area of 135882.4 square meters which is industrial
land) belongs to the expropriation scope and the compensation relocation fee loss fee of production and
business suspension and other rewards of the expropriated assets total RMB183855895.00. As of 30 June 2022
Nanjing Fozhao has received 30% of the compensation that is RMB55160000.00 and the land use right
certificate and house ownership certificate of the assets involved have been cancelled. As of the date of this
report the site handover is still in progress. After the demolition work is completed Nanjing Fozhao plans to
carry out liquidation and cancellation.
(4) Plan of the Major Assets Reorganization by NationStar Optoelectronics
NationStar Optoelectronics intends to acquire 60% of equity (the final shareholding ratio is subject to the
specific share transfer agreement signed by the parties) in Yancheng Dongshan Precision Manufacturing Co.Ltd. (hereinafter referred to as “Target Company” or “Yancheng Dongshan”) the wholly-owned subsidiary ofSuzhou Dongshan Precision Manufacturing Co. Ltd. (hereinafter referred to as “shareholder of the TargetCompany” or “Dongshan Precision”). Upon completion of the transaction NationStar Optoelectronics will hold
60% of equity interest in the Target Company and the Target Company will become a majority-owned
subsidiary of the Company and be included in the scope of the Company's consolidated financial statements. As
of the disclosure date of this Report NationStar has actively organized various intermediaries to actively carry
out due diligence investigation as well as audit and appraisal of the underlying assets in accordance with
relevant regulations.
(5) Application for Registration and Issuance of SCP by NationStar Optoelectronics
NationStar Optoelectronics reviewed and approved the Proposal on Application for Registration and Issuance of
SCP at the 22nd Meeting of the 5th Board of Directors and the 19th Meeting of the 5th Supervisory Committee
held on 29 August 2022 and submitted it to the 3rd Extraordinary General Meeting of 2022 of NationStar
13 8Optoelectronics for consideration. On 11 November 2022 NationStar Optoelectronics convened the 3rd
Extraordinary General Meeting of 2022 to vote on above-mentioned proposal and agreed the application for
registration and issuance of SCP by NationStar Optoelectronics with the scale not exceeding RMB1 billion
(inclusive). The final registration amount will be subject to the amount stated in the registration notice of China
Interbank Market Dealers Association. The registration is valid for two years and may be issued multiple times
within the registration period with each issuance period not exceeding 270 days (inclusive). On 29 August 2023
NationStar Optoelectronics announced that it had received the Notice of Acceptance of Registration (ZSXZ
[2023] SCP No. 363) from National Association of Financial Market Institutional Investors (NAFMII) in which
NAFMII decided to accept the registration of NationStar Optoelectronics’s SCP with the registered amount of
RMB1 billion and the registration quota being valid for 2 years from the date of the notice. The Company may
issue the SCP by installment within the validity of the registration. The project is currently progressing in an
orderly manner.XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Category of Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra Withdra
Item Carrying Carrying
Proporti wal Proporti wal
Amount Amount value Amount Amount value
on proporti on proporti
on on
Account
s
receivab
le for
which
11220112201122011220
bad debt 0.96% 100.00% 1.13% 100.00%
provisio 827.14 827.14 827.14 827.14
n
separatel
y
accrued
Of
which:
Account
s
receivab 11621 10869
7519497958164706914875
le for 70464. 99.04% 6.47% 75621. 98.87% 6.61%
which 842.95 821.17 145.17 676.00 79 84
bad debt
provisio
13 9n
accrued
by group
Of
which:
（1）
Business
portfolio 10936 10184
of 75194 921740 64706 857034
94613.93.21%6.88%99770.93.03%7.02%
general 842.95 497.75 145.17 352.58
lighting 15 20
and auto
lamps
(2)
Internal 68475 68475 57841 57841
5.84%5.84%
business 851.64 851.64 323.42 323.42
portfolio
1173310869
8641599080275926914875
Total 91291. 100.00% 7.36% 75621. 100.00% 7.66%
670.09648.31972.31676.00
9384
Individual withdrawal of bad debt provision by single item: RMB11220827.14
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Expectedly
Customer A 11220827.14 11220827.14 100.00% irrecoverable for
involvement in lawsuit
Total 11220827.14 11220827.14
Withdrawal of bad debt provision by group: RMB75194842.95
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk portfolio 1162170464.79 75194842.95 6.47%
Total 1162170464.79 75194842.95
Notes:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if
adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable.□Applicable □ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 956928518.34
1 to 2 years 143074413.22
2 to 3 years 29742543.36
Over 3 years 43645817.01
3 to 4 years 4547062.16
4 to 5 years 19562268.29
Over 5 years 19536486.56
Total 1173391291.93
14 0(2) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Bad debt
provision 11220827.1
8976661.722244165.42
withdrawn 4
separately
Bad debt
provision 51950320.9 23244540.8 75194842.9
18.81
withdrawn by 5 1 5
group
60926982.625488706.286415670.0
Total 18.81
739
Of which significant amount of reversed or recovered bad debt provision:
In the current period the provision for expected credit losses was RMB25488706.23 and RMB0.00 of
expected credit losses was recovered or reversed.
(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
Item Amount
Other driblet small amount 18.81
Of which verification of significant accounts receivable:
Naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
Proportion to total ending
Ending balance of accounts Ending balance of bad debt
Name of units balance of accounts
receivable provision
receivable (%)
No. 1 261026852.86 22.25% 7830805.59
No. 2 93476069.87 7.97% 2804282.10
No. 3 24804411.54 2.11% 2345630.85
No. 4 23857388.73 2.03% 2376830.59
No. 5 22932132.84 1.95% 687963.99
Total 426096855.84 36.31%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
14 1(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Accounts Receivable
Naught
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 978598589.43 511036345.72
Total 978598589.43 511036345.72
(1) Interest Receivable
1) Category of Interest Receivable
Naught
2) Significant Overdue Interest
Naught
3) Information of Withdrawal of Bad Debt Provision
□Applicable □ Not applicable
(2) Dividend Receivable
1) Category of Dividend Receivable
Naught
2) Significant Dividends Receivable Aging over 1 Year
Naught
3) Information of Withdrawal of Bad Debt Provision
□Applicable □ Not applicable
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Other intercourse 850921784.64 499569435.12
Dividend payment (note) 111892889.20
VAT export tax refunds 11326131.26 9247208.98
14 2Performance bond 5413590.63 2535349.17
Staff borrow and petty cash 1564968.85 1467513.80
Rent water & electricity fees 615410.01 2211666.93
Total 981734774.59 515031174.00
Note: refer to the dividend payment transferred to China Securities Depository and Clearing Corporation
Limited.
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
First stage Second stage Third stage
Expected loss in the
Expected loss in the
Bad debt provision Expected credit loss of duration (credit Total
duration (credit
the next 12 months impairment not
impairment occurred)
occurred)
Balance of 1 January
570436.683424391.603994828.28
2023
Balance of 1 January
2023 in the Current
Period
Withdrawal of the
83004.29-1639484.05697836.64-858643.12
Current Period
Balance of 30 June
653440.971784907.55697836.643136185.16
2023
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable □ Not applicable
Disclosure by aging
Unit: RMB
Aging Ending balance
Within 1 year (including 1 year) 560139191.08
1 to 2 years 416812193.31
2 to 3 years 2705441.78
Over 3 years 2077948.42
3 to 4 years 369789.28
4 to 5 years 1010322.50
Over 5 years 697836.64
Total 981734774.59
3) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Other
3994828.28-858643.123136185.16
receivables
Total 3994828.28 -858643.12 3136185.16
In the current period the provision for expected credit losses was RMB-858643.12 and RMB0.00 of expected
credit losses was recovered or reversed.
14 3Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Internal group 471166334.23 Within 2 years 47.99%
No. 2 Internal group 250685820.33 Within 3 years 25.53%
No. 3 Dividend payment 111892889.20 Within 1 years 11.40%
No. 4 Internal group 56398668.11 Within 2 years 5.74%
No. 5 Internal group 31047876.71 Within 2 year 3.16%
Total 921191588.58 93.82%
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement
of Other Receivables
Naught
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Depreciation
Carrying value Carrying value
amount reserve amount reserve
Investment to 232363123 232363123 232363123 232363123
subsidiaries 8.41 8.41 8.41 8.41
Investment to
joint ventures 183117824. 183117824. 181931792. 181931792.and associated 19 19 66 66
enterprises
250674906250674906250556303250556303
Total
2.602.601.071.07
(1) Investment to Subsidiaries
Unit: RMB
14 4Beginning Increase/decrease Ending Ending
balance Depreciation balance balance of
Investee Additional Reduced
(carrying reserves Other (carrying depreciation
investment investment
value) withdrawn value) reserve
Foshan
NationStar 121209024 121209024
Optoelectron 5.94 5.94
ics Co. Ltd.Nanning
Liaowang 493880163. 493880163.Auto Lamp 76 76
Co. Ltd.Fozhao
(Hainan) 200000000. 200000000.Technology 00 00
Co. Ltd.Foshan
Kelian New
170000000.170000000.
Energy
0000
Technology
Co. Ltd.FSL
Chanchang 82507350.0 82507350.0
Optoelectron 0 0
ics Co. Ltd.Nanjing
Fozhao
Lighting 72000000.0 72000000.0
Components 0 0
Manufacturin
g Co. Ltd.Foshan
Electrical &
35418439.735418439.7
Lighting
66
(Xinxiang)
Co. Ltd.FSL Zhida
Electric 25500000.0 25500000.0
Technology 0 0
Co. Ltd.Foshan
Haolaite 16685000.0 16685000.0
Lighting Co. 0 0
Ltd.Foshan
Fozhao
15000000.015000000.0
Zhicheng
00
Technology
Co. Ltd.Foshan
Taimei Times
Lamps and 350000.00 350000.00
Lanterns Co.Ltd.FSL
LIGHTING 195812.50 195812.50
GMBH
Foshan 4226.45 4226.45
14 5Sigma
Venture
Capital Co.Ltd.
232363123232363123
Total
8.418.41
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Gains
and Cash Ending
Beginni Adjust Withdra
losses bonus Ending balance
ng Additio Reduce ment of Change wal of
Investe recogni or balance of
balance nal d other s of impair
e zed profits Other (carryin depreci
(carryin investm investm compre other ment
under announ g value) ation
g value) ent ent hensive equity provisi
the ced to reserve
income on
equity issue
method
I. Joint ventures
II. Associated enterprises
Shenzh
enPrim
atronix
(Nanho 181931 11860 183117
)792.6631.53824.19
Electro
nics
Ltd.Subtota 181931 11860 183117
l 792.66 31.53 824.19
18193111860183117
Total
792.6631.53824.19
(3) Other Notes
Naught
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main business 1711281228.74 1436735973.21 1743824866.67 1430083022.73
Other business 55838581.48 39194174.59 65355126.19 46281084.46
Total 1767119810.22 1475930147.80 1809179992.86 1476364107.19
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0.00 at the period-end.
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
6007918.322653342.25
accounted by cost method
14 6Long-term equity investment income
1186031.53650457.40
accounted by equity method
Investment income from disposal of
2154000.001734535.05
trading financial assets
Dividend income from holding of other
16633969.3516055272.93
investments in equity instruments
Investment income from financial
1767053.51449147.49
products and structural deposits
Total 27748972.71 21542755.12
6. Other
Naught
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
□ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain/Loss arising from disposal of non-
current assets (inclusive of impairment -1399118.95
allowance write-offs)
Government grants recognized in the
current period except for those acquired
in the ordinary course of business or
27400992.05
granted at certain quotas or amounts
according to the government’s unified
standards
Capital occupation charges on non-
financial enterprises that are recorded 145423.54
into current profit or loss
Gain/loss from change of fair value of
trading financial assets and liabilities
and investment gains from disposal of
trading financial assets and liabilities -20978503.38
and available-for-sale financial assets
other than valid hedging related to the
Company’s common businesses
Other non-operating income and
-841057.39
expenses other than the above
Less: Income tax effects -966253.59
Non-controlling interests effects 16747968.45
Total -11453978.99 --
Others that meets the definition of non-recurring gain/loss:
□Applicable □ Not applicable
No such cases in the Reporting Period.Explain the reasons if the Company classifies any extraordinary gain/loss item mentioned in the Explanatory
Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-
recurring Gains and Losses as a recurrent gain/loss item
□Applicable □ Not applicable
14 72. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to
ordinary shareholders of the 3.23% 0.1252 0.1240
Company
Net profit attributable to
ordinary shareholders of the
3.45%0.13370.1324
Company after deduction of
non-recurring profit or loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□Applicable □ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□Applicable □ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Naught
4. Other
Naught
Foshan Electrical and Lighting Co. Ltd.Legal representative: Wu Shenghui
29 August 2023
148
沪公网安备31011802005267号
