Foshan Electrical and Lighting Co. Ltd.The semi-annual financial report 2021
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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 2021
Unit: RMB
Item 30 June 2021 31 December 2020
Current assets:
Monetary assets 1504280372.52 981249699.49
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 293530525.04 407619201.36
Derivative financial assets
Notes receivable 218524886.92 140972143.00
Accounts receivable 1092252515.66 1134233235.70
Accounts receivable financing
Prepayments 18855359.01 11994745.05
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 22845333.42 20194968.19
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 851859895.73 735685116.91
Contract assets
Assets held for sale
Current portion of non-current assets
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Other current assets 68064174.23 175090368.85
Total current assets 4070213062.53 3607039478.55
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 179322086.81 181365016.32
Investments in other equity
2548457792.00 3305501030.06
instruments
Other non-current financial assets
Investment property
Fixed assets 677082730.82 685707548.55
Construction in progress 537612907.97 503941120.31
Productive living assets
Oil and gas assets
Right-of-use assets 4581415.21
Intangible assets 169048369.41 170693873.30
Development costs
Goodwill
Long-term prepaid expense 22845684.60 13411226.23
Deferred income tax assets 38021673.91 40253777.17
Other non-current assets 10666780.70 11423843.62
Total non-current assets 4187639441.43 4912297435.56
Total assets 8257852503.96 8519336914.11
Current liabilities:
Short-term borrowings
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 730544569.15 480971214.80
Accounts payable 936126208.78 1059674020.99
Advances from customers 1911948.59 1285357.28
Contract liabilities 71380411.53 65777726.45
Financial assets sold under
repurchase agreements
Customer deposits and interbank
deposits
Payables for acting trading of
securities
Payables for underwriting of
securities
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Employee benefits payable 45405982.12 82485090.47
Taxes payable 104436868.34 18876657.51
Other payables 87027744.37 76668330.66
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
assets held for sale
Current portion of non-current
3382701.30
liabilities
Other current liabilities 5806372.07 5503702.07
Total current liabilities 1986022806.25 1791242100.23
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2397312.18
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 308339347.68 414670609.97
Other non-current liabilities 1244064.84
Total non-current liabilities 310736659.86 415914674.81
Total liabilities 2296759466.11 2207156775.04
Owners’ equity:
Share capital 1399346154.00 1399346154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 15157514.90 15157514.90
Less: Treasury stock 220708001.24
Other comprehensive income 1750521262.50 2349388533.61
Specific reserve
Surplus reserves 741379150.24 741567039.55
General reserve
Retained earnings 2224887158.83 1758462062.48
Total equity attributable to owners of 5910583239.23 6263921304.54
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
the Company as the parent
Non-controlling interests 50509798.62 48258834.53
Total owners’ equity 5961093037.85 6312180139.07
Total liabilities and owners’ equity 8257852503.96 8519336914.11
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 30 June 2021 31 December 2020
Current assets:
Monetary assets 1407852727.39 896261882.77
Held-for-trading financial assets 293530525.04 407619201.36
Derivative financial assets
Notes receivable 215699886.92 137477199.21
Accounts receivable 994619842.60 1030713074.22
Accounts receivable financing
Prepayments 15653260.84 9581302.45
Other receivables 493080363.83 462284585.09
Including: Interest receivable
Dividends receivable
Inventories 697864062.95 615106650.81
Contract assets
Assets held for sale
Current portion of non-current assets
Other current assets 36546010.75 139275518.71
Total current assets 4154846680.32 3698319414.62
Non-current assets:
Investments in debt obligations
Investments in other debt obligations
Long-term receivables
Long-term equity investments 524829382.22 536949311.73
Investments in other equity
2548457792.00 3305501030.06
instruments
Other non-current financial assets
Investment property
Fixed assets 618705844.19 628174755.88
Construction in progress 73563429.75 54652119.14
Productive living assets
Oil and gas assets
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Right-of-use assets 4581415.21
Intangible assets 121502187.04 122391701.60
Development costs
Goodwill
Long-term prepaid expense 19902615.59 11651100.48
Deferred income tax assets 27728882.07 31403727.94
Other non-current assets 7058767.14 7548885.47
Total non-current assets 3946330315.21 4698272632.30
Total assets 8101176995.53 8396592046.92
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities
Derivative financial liabilities
Notes payable 719448925.17 484230566.21
Accounts payable 1010939815.22 1108208382.75
Advances from customers
Contract liabilities 54047480.87 53572800.70
Employee benefits payable 36290726.53 62075512.08
Taxes payable 97635911.44 7819839.48
Other payables 131959972.41 171916835.73
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
3382701.30
liabilities
Other current liabilities 4196320.38 4483279.11
Total current liabilities 2057901853.32 1892307216.06
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2397312.18
Long-term payables
Long-term employee benefits
payable
Provisions
Deferred income
Deferred income tax liabilities 308339347.68 414670609.97
Other non-current liabilities
Total non-current liabilities 310736659.86 414670609.97
Total liabilities 2368638513.18 2306977826.03
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Owners’ equity:
Share capital 1399346154.00 1399346154.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 7426635.62 7426635.62
Less: Treasury stock 220708001.24
Other comprehensive income 1750579803.54 2349389658.23
Specific reserve
Surplus reserves 741379150.24 741567039.55
Retained earnings 2054514740.19 1591884733.49
Total owners’ equity 5732538482.35 6089614220.89
Total liabilities and owners’ equity 8101176995.53 8396592046.92
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
3. Consolidated Income Statement
Unit: RMB
Item H1 2021 H1 2020
1. Revenue 1955342116.20 1522884127.04
Including: Operating revenue 1955342116.20 1522884127.04
Interest income
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 1827552268.50 1378872422.99
Including: Cost of sales 1587364854.81 1195026224.34
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 13964802.67 15851673.06
Selling expense 68001600.32 62274331.94
Administrative expense 85383016.00 65964756.76
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
R&D expense 76772734.38 59098081.73
Finance costs -3934739.68 -19342644.84
Including: Interest expense
Interest income 8247486.69 17500666.35
Add: Other income 7801032.60 3028003.10
Return on investment (“-” for loss) 5209830.57 36143255.71
Including: Share of profit or loss
37460.99 4725081.89
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 (“-”
1940000.00 -1532350.00
for loss)
Credit impairment loss (“-” for
623460.82 -3379210.38
loss)
Asset impairment loss (“-” for loss) -10995234.63 -3200793.69
Asset disposal income (“-” for
1781700.24 7489.02
loss)
3. Operating profit (“-” for loss) 134150637.30 175078097.81
Add: Non-operating income 2059638.05 662887.00
Less: Non-operating expense 613867.05 1024568.14
4. Profit before tax (“-” for loss) 135596408.30 174716416.67
Less: Income tax expense 22789901.28 23050722.70
5. Net profit (“-” for net loss) 112806507.02 151665693.97
5.1 By operating continuity
5.1.1 Net profit from continuing
112806507.02 151665693.97
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
110555542.93 148896274.55
owners of the Company as the parent
5.2.1 Net profit attributable to
2250964.09 2769419.42
non-controlling interests
6. Other comprehensive income net of
-242997717.69 461748801.29
tax
Attributable to owners of the Company
-242997717.69 461748801.29
as the parent
6.1 Items that will not be
-242940301.27 461765884.65
reclassified to profit or loss
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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
-242940301.27 461765884.65
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
-57416.42 -17083.36
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
-57416.42 -17083.36
currency-denominated financial
statements
6.2.7 Other
Attributable to non-controlling
interests
7. Total comprehensive income -130191210.67 613414495.26
Attributable to owners of the Company
-132442174.76 610645075.84
as the parent
Attributable to non-controlling
2250964.09 2769419.42
interests
8. Earnings per share
8.1 Basic earnings per share 0.0802 0.1080
8.2 Diluted earnings per share 0.0802 0.1080
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Person-in-charge of the Company’s accounting organ: Peng Fentao
4. Income Statement of the Company as the Parent
Unit: RMB
Item H1 2021 H1 2020
1. Operating revenue 1797795292.73 1422984075.84
Less: Cost of sales 1485965900.74 1144706314.40
Taxes and surcharges 11528913.49 12796090.44
Selling expense 58577327.98 56693272.24
Administrative expense 69674599.21 56438900.74
R&D expense 66804608.38 53411931.20
Finance costs -3595436.39 -19059613.45
Including: Interest expense
Interest income 7925093.81 17198883.00
Add: Other income 5739842.06 2807028.00
Return on investment (“-” for
11964194.51 36143255.71
loss)
Including: Share of profit or
37460.99 4725081.89
loss 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 (“-”
1940000.00 -1532350.00
for loss)
Credit impairment loss (“-” for
2978976.42 -1548956.28
loss)
Asset impairment loss (“-” for
-9907597.40 -2500432.51
loss)
Asset disposal income (“-” for
1781700.24 7489.02
loss)
2. Operating profit (“-” for loss) 123336495.15 151373214.21
Add: Non-operating income 2012089.62 527849.42
Less: Non-operating expense 226124.51 268377.64
3. Profit before tax (“-” for loss) 125122460.26 151632685.99
Less: Income tax expense 18362006.98 16915430.83
4. Net profit (“-” for net loss) 106760453.28 134717255.16
4.1 Net profit from continuing
106760453.28 134717255.16
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of -242940301.27 461765884.65
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
tax
5.1 Items that will not be reclassified
-242940301.27 461765884.65
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
-242940301.27 461765884.65
investments in other equity instruments
5.1.4 Changes in the fair value
arising from changes in own credit risk
5.1.5 Other
5.2 Items that will be reclassified to
profit or loss
5.2.1 Other comprehensive income
that will be reclassified to profit or loss
under the equity method
5.2.2 Changes in the fair value of
investments in other debt obligations
5.2.3 Other comprehensive income
arising from the reclassification of
financial assets
5.2.4 Credit impairment allowance
for investments in other debt
obligations
5.2.5 Reserve for cash flow hedges
5.2.6 Differences arising from the
translation of foreign
currency-denominated financial
statements
5.2.7 Other
6. Total comprehensive income -136179847.99 596483139.81
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: Peng Fentao
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
5. Consolidated Cash Flow Statement
Unit: RMB
Item H1 2021 H1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
2010485455.83 1519739200.16
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 63217676.32 41505723.58
Cash generated from other operating
61895067.46 83471287.35
activities
Subtotal of cash generated from
2135598199.61 1644716211.09
operating activities
Payments for commodities and
1503582431.15 975832087.93
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans
granted
Interest handling charges and
commissions paid
Policy dividends paid
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Cash paid to and for employees 402765434.63 311766650.73
Taxes paid 47727810.06 58571681.14
Cash used in other operating
135742883.25 92210911.22
activities
Subtotal of cash used in operating
2089818559.09 1438381331.02
activities
Net cash generated from/used in
45779640.52 206334880.07
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 262773600.62 245000000.00
Return on investment 454663109.72 35020943.18
Net proceeds from the disposal of
fixed assets intangible assets and other 1762424.68 131978.12
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
719199135.02 280152921.30
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 57403771.45 43778955.65
long-lived assets
Payments for investments 9402110.68
Net increase in pledged loans granted
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
66805882.13 43778955.65
activities
Net cash generated from/used in
652393252.89 236373965.65
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Interest and dividends paid 258879038.49
Including: Dividends paid by
subsidiaries to non-controlling interests
Cash used in other financing
220895890.55
activities
Subtotal of cash used in financing
220895890.55 258879038.49
activities
Net cash generated from/used in
-220895890.55 -258879038.49
financing activities
4. Effect of foreign exchange rates
-7673732.74 -103583.76
changes on cash and cash equivalents
5. Net increase in cash and cash
469603270.12 183726223.47
equivalents
Add: Cash and cash equivalents
875728218.57 1051079042.41
beginning of the period
6. Cash and cash equivalents end of the
1345331488.69 1234805265.88
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item H1 2021 H1 2020
1. Cash flows from operating activities:
Proceeds from sale of commodities
1850655815.39 1439542964.28
and rendering of services
Tax rebates 63217537.03 41500167.87
Cash generated from other operating
51058701.35 36847098.74
activities
Subtotal of cash generated from
1964932053.77 1517890230.89
operating activities
Payments for commodities and
1436749486.58 958739460.46
services
Cash paid to and for employees 314880615.57 237328269.38
Taxes paid 24295009.50 37998771.62
Cash used in other operating
110890242.14 84878540.95
activities
Subtotal of cash used in operating
1886815353.79 1318945042.41
activities
Net cash generated from/used in
78116699.98 198945188.48
operating activities
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
2. Cash flows from investing activities:
Proceeds from disinvestment 262773600.62 245000000.00
Return on investment 454663109.72 35020943.18
Net proceeds from the disposal of
fixed assets intangible assets and other 1720784.40 125361.02
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
activities
Subtotal of cash generated from
719157494.74 280146304.20
investing activities
Payments for the acquisition of fixed
assets intangible assets and other 53582153.85 42331728.97
long-lived assets
Payments for investments 49402110.68
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing
activities
Subtotal of cash used in investing
102984264.53 42331728.97
activities
Net cash generated from/used in
616173230.21 237814575.23
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Interest and dividends paid 258879038.49
Cash used in other financing
220895890.55
activities
Subtotal of cash used in financing
220895890.55 258879038.49
activities
Net cash generated from/used in
-220895890.55 -258879038.49
financing activities
4. Effect of foreign exchange rates
-7632408.62 -92218.76
changes on cash and cash equivalents
5. Net increase in cash and cash
465761631.02 177788506.46
equivalents
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Add: Cash and cash equivalents
803264792.72 983378125.66
beginning of the period
6. Cash and cash equivalents end of the
1269026423.74 1161166632.12
period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
7. Consolidated Statements of Changes in Owners’ Equity
H1 2021
Unit: RMB
H1 2021
Equity attributable to owners of the Company as the parent
Other equity Other Non-c
Total
instruments Less: compr Surplu Retain ontroll
Item Share Capital Specifi Genera owners
Prefe Perpe Treasu ehensi s ed Subtot ing
capita reserve c l Other ’
rred tual ry ve reserve earnin al interes
l Other s reserve reserve equity
share bond stock incom s gs ts
s s e
1. Balance as at 1399
15157 2349 74156 1758 6263 48258 6312
the end of the 346
514.9 38853 7039. 46206 92130 834.5 18013
period of prior 154.0
0 3.61 55 2.48 4.54 3 9.07
year 0
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction of
previous error
Adjustment
for business
combination
under common
control
Other
adjustments
2. Balance as at 1399
15157 2349 74156 1758 6263 48258 6312
the beginning of 346
514.9 38853 7039. 46206 92130 834.5 18013
the Reporting 154.0
0 3.61 55 2.48 4.54 3 9.07
Period 0
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
3. Increase/
22070 -5988 46642 -3533 -3510
decrease in the -1878 2250
8001. 67271 5096. 38065 87101
period (“-” for 89.31 964.09
24 .11 35 .31 .22
decrease)
3.1 Total -2429 11055 -1324 -13012250
comprehensive 97717 5542. 42174 91210
964.09
income .69 93 .76 .67
3.2 Capital
22070 -2208 -2208
increased and -1878
8001. 95890 95890
reduced by 89.31
24 .55 .55
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
22070 -2208 -2208
-1878
3.2.4 Other 8001. 95890 95890
89.31
24 .55 .55
3.3 Profit
distribution
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
Appropriation
to owners (or
shareholders)
3.3.4 Other
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
3.4 Transfers -3558 35586
within owners’ 69553 9553. 0.00 0.00
equity .42 42
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
schemes
transferred to
retained
earnings
3.4.5 Other
comprehensive
-3558 35586
income
69553 9553. 0.00 0.00
transferred to.42 42
retained
earnings
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at 1399
15157 22070 1750 74137 2224 5910 50509 5961
the end of the 346
514.9 8001. 52126 9150. 88715 58323 798.6 09303
Reporting 154.0
0 24 2.50 24 8.83 9.23 2 7.85
Period 0
H1 2020
Unit: RMB
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
H1 2020
Equity attributable to owners of the Company as the parent
Other equity Other Non-co
instruments Less: compr Surplu Retain ntrollin Total
Item Share Capital Specifi Genera
Prefe Perp Treasu ehensi s ed Subtot g owners’
capita reserve c l Other
rred etual ry ve reserve earnin al interest equity
l Other s reserve reserve
share bond stock incom s gs s
s s e
1. Balance as at 1399
23160 77626 83655 1700 4944 49708
the end of the 346 26674
8173. 0348. 9645. 42691 20123 75664.period of prior 154.0 428.08
07 19 36 5.63 6.25 33
year 0
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction
of previous
error
Adjustment
for business
combination
under common
control
Other
adjustments
2. Balance as at1399
the beginning 23160 77626 83655 1700 4944 49708
346 26674
of the 8173. 0348. 9645. 42691 20123 75664.154.0 428.08
Reporting 07 19 36 5.63 6.25 330
Period
3. Increase/
46174 -1099 35176
decrease in the 27694 354535
8801. 82763 6037.period (“-” for 19.42 456.77
29 .94 35
decrease)
3.1 Total 46174 14889 61064
27694 613414
comprehensive 8801. 6274. 5075.19.42 495.26
income 29 55 84
3.2 Capital
increased and
reduced by
owners
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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
-2588 -2588 -25887
3.3 Profit
79038 79038 9038.4
distribution.49 .49 9
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation
to general
reserve
3.3.3
-2588 -2588 -25887
Appropriation
79038 79038 9038.4
to owners (or.49 .49 9
shareholders)
3.3.4
Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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
comprehensive
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 at 1399
23160 1238 83655 1590 5295 53254
the end of the 346 29443
8173. 00914 9645. 44415 96727 11121.Reporting 154.0 847.50
07 9.48 36 1.69 3.60 10
Period 0
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2021
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Unit: RMB
H1 2021
Other equity
Other Retaine
instruments Less: Total
Item Share Capital compreh Specific Surplus d
Preferr Perpet Treasury Other owners’
capital reserves ensive reserve reserves earning
ed ual Other stock equity
income s
shares bonds
1. Balance as at
13993 15918
the end of the 742663 234938 741567 6089614
46154. 84733.period of prior 5.62 9658.23 039.55 220.89
00 49
year
Add: Adjustment
for change in
accounting
policy
Adjustment
for correction of
previous error
Other
adjustments
2. Balance as at
13993 15918
the beginning of 742663 234938 741567 6089614
46154. 84733.the Reporting 5.62 9658.23 039.55 220.89
00 49
Period
3. Increase/46263
decrease in the 220708 -598809 -187889 -3570757
0006.7
period (“-” for 001.24 854.69 .31 38.540
decrease)
3.1 Total 10676
-242940 -1361798
comprehensive 0453.2
301.27 47.99
income 8
3.2 Capital
increased and 220708 -187889 -2208958
reduced by 001.24 .31 90.55
owners
3.2.1
Ordinary shares
increased by
owners
3.2.2
Capital increased
by holders of
other equity
instruments
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
3.2.3
Share-based
payments
included in
owners’ equity
220708 -187889 -2208958
3.2.4 Other
001.24 .31 90.55
3.3 Profit
distribution
3.3.1
Appropriation to
surplus reserves
3.3.2
Appropriation to
owners (or
shareholders)
3.3.3 Other
3.4 Transfers 35586
-355869
within owners’ 9553.4 0.00
553.42
equity 2
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Increase in
capital (or share
capital) from
surplus reserves
3.4.3 Loss
offset by surplus
reserves
3.4.4
Changes in
defined benefit
schemes
transferred to
retained earnings
3.4.5 Other
comprehensive 35586
-355869
income 9553.4 0.00
553.42
transferred to 2
retained earnings
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
3.4.6 Other
3.5 Specific
reserve
3.5.1
Increase in the
period
3.5.2 Used
in the period
3.6 Other
4. Balance as at 13993 20545
742663 220708 175057 741379 5732538
the end of the 46154. 14740.5.62 001.24 9803.54 150.24 482.35
Reporting Period 00 19
H1 2020
Unit: RMB
H1 2020
Other equity
Other
instruments Less: Total
Item Share Capital compre Specific Surplus Retained
Preferr Perpet Treasur Other owners’
capital reserves hensive reserve reserves earnings
ed ual Other y stock equity
income
shares bonds
1. Balance as at1399
the end of the 166211 776242 836559 1523507 4701868334615
period of prior 779.15 987.90 645.36 818.11 84.52
4.00
year
Add:
Adjustment for
change in
accounting
policy
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as at
the beginning 1399
166211 776242 836559 1523507 47018683
of the 34615
779.15 987.90 645.36 818.11 84.52
Reporting 4.00
Period
3. Increase/
461765 -124161 33760410
decrease in the
884.65 783.33 1.32
period (“-” for
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
decrease)
3.1 Total
461765 1347172 59648313
comprehensive
884.65 55.16 9.81
income
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 -258879 -25887903
distribution 038.49 8.49
3.3.1
Appropriation
to surplus
reserves
3.3.2
Appropriation -258879 -25887903
to owners (or 038.49 8.49
shareholders)
3.3.3 Other
3.4 Transfers
within owners’
equity
3.4.1
Increase in
capital (or share
capital) from
capital reserves
3.4.2
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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
comprehensive
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 at
1399 12380
the end of the 166211 836559 1399346 50394724
34615 08872.Reporting 779.15 645.36 034.78 85.84
4.00 55
Period
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan
Person-in-charge of the Company’s accounting organ: Peng Fentao
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
III Company profile
(I) Basic Information
Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as “the Company”) a joint-stock limited
company jointly founded by Foshan Electrical and Lighting Company Nanhai Wuzhuang Color Glazed Brick
Field and Foshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval of YGS
(1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of
Guangdong Province and the Economic System Reform Commission of Guangdong Province is an enterprise
with its shares held by both the corporate and the natural persons. As approved by China Securities Regulatory
Commission with Document (1993) No. 33 the Company publicly issued 19.3 million shares of social public
shares (A shares) to the public in October 1993 and was listed in Shenzhen Stock Exchange for trade on 23
November 1993. The Company was approved to issue 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.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
and electro technical products.The business term of the Company is long-term which was calculated from the date of issuance of License of
Business Corporation.The Financial Report was approved and authorized for issue by the Board of Directors on August 252021.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
Electrical and Lighting New Light Source Technology Co. Ltd. ( referred to as “New Light Source Company”)
Foshan Lighting Lamps & Components Co. Ltd. ( referred to as “Lamps & Components Company”) and FSL
Zhida Electric Technology Co. Ltd ( referred to as “Zhida Company”) FSL LIGHTING GmbH (referred to as
“FSL LIGHTING”) Foshan Hortilite Optoelectronics Co.Ltd. (referred to as “Hortilite Company”) Hunan Keda New
Energy Investment and Development Co. Ltd. (referred to as “Hunan Keda”) Fozhao (Hainan) Technology Co.Ltd. (referred to as “Hainan Company”) in total 11 subsidiaries and one sub-subsidiary Foshan Kelian New
Energy Technology Co. Ltd. (referred to as “Foshan Kelian”) .There is a new subsidiary - Hainan Company in the consolidation scope of financial statements for the ReportingPeriod compared with the previous period. For details see relevant contents in Note VIII “Changes in theconsolidation scope” and Note IX “Equities in other entities”.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company are based on the continuing operation and are confirmed and measured
according to the actual transactions and events the Accounting Standards for Business Enterprises - Basic
Standards other various specific accounting standards the application guide the interpretation of accounting
standards for business enterprises (hereinafter referred to as the Accounting Standards for Business Enterprises).And based on the following important accounting policies and accounting estimations they are prepared
according to the relevant regulations of Rules for the Information Disclosure of Companies Publicly Issuing
Securities No. 15 - General Provisions on Financial Reporting of China Securities Regulatory Commission
(Revised in 2014). Except the Cash Flow Statement prepared under the principle of cash basis the rest of financial
statement of the Company are prepared under the principle of accrual basis.The Company didn’t find anything like being suspicious of the ability of continuing operation within 12 months
from the end of the Reporting Period with all available information.2. Continuation
The Company has no matters affecting the continuing operation of the Company and is expected to have the
ability to continue to operate in the next 12 months. The financial statements of the Company are prepared on the
basis of continuing operation.V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The Company confirmed the specific accounting policies and estimations according to production and operation
features mainly reflecting in the method of provision for expected credit loss of accounts receivables (Note 12.Accounts Receivable) depreciation of fixed assets and amortization of intangible assets (Note 24. Fixed Assets
and Note 30. Intangible Assets) and recognition of revenue (Note 39. Revenue) etc.1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the Accounting Standards for Business
Enterprises which factually and completely present the Company’s and the consolidated financial positions
business results and cash flows as well as other relevant information.2. Fiscal Year
st st
A fiscal year starts on January 1 and ends on December 31 according to the Gregorian calendar.3. Operating Cycle
An operating cycle for the Company is 12 months which is also the classification criterion for the liquidity of its
assets and liabilities.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
4. Recording Currency
Renminbi is the recording currency for the statements of the Company and the financial statements are listed and
presented by Renminbi.5. Accounting Treatment Methods for Business Combinations under the Same Control or not under the
Same Control
1. Business Combinations under the Same Control
For the merger of enterprises under the same control if the consideration of the merging enterprise is that it makes
payment in cash transfers non-cash assets or bear its debts it shall on the date of merger regard the share of the
book value among final controller’s consolidated financial statement of the owner's equity of the merged
enterprise as the initial cost of the long-term equity investment. The difference between the initial cost of the
long-term equity investment and the payment in cash non-cash assets transferred as well as the book value of the
debts borne by the merging party shall offset against the capital reserve. If the capital reserve is insufficient to
dilute the retained earnings shall be adjusted.If the consideration of the merging enterprise is that it issues equity securities it shall on the date of merger
regard the share of the book value among final controller’s consolidated financial statement of the owner's equity
of the merged enterprise as the initial cost of the long-term equity investment. The total face value of the stocks
issued shall be regarded as the capital stock while the difference between the initial cost of the long-term equity
investment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve is
insufficient to dilute the retained earnings shall be adjusted.2. Business Combinations not under the Same Control
The Company measured the paid assets as the consideration of business combination and liabilities happened or
undertaken by fair value. The difference between fair value and its book value shall be included into the current
losses and gains. The Company distributed combined cost on the purchasing date.The difference of the combination cost greater than the fair value of the identifiable net assets of the acquiree
acquired is recognized as goodwill; the difference of the combination cost less than the fair value of the
identifiable net assets of the acquiree acquired is included into current losses and gains.As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to
the assets which have been recognized by the acquiree) if the economic benefits brought by them are likely to
flow into the Company and their fair values can be measured reliably they shall be separately recognized and
measured in light of their fair values; intangible asset whose fair value can be measured reliably shall be
separately recognized as an intangible asset and shall measured in light of its fair value; As for the liabilities other
than contingent liabilities acquired from the acquiree if the performance of the relevant obligations is likely to
result in any out-flow of economic benefits from the Company and their fair values can be measured reliably they
shall be separately recognized and measured in light of their fair values; As for the contingent liabilities of the
acquiree if their fair values can be measured reliably they shall separately recognized as liabilities and shall be
measured in light of their fair values.6. Methods for Preparing Consolidated Financial Statements
1. Principle of Determining the Scope of Consolidation
The scope of consolidation of the consolidated financial statements of the Company is determined on the basis of
control. Control means that the investors has the right to invest in the investee and enjoy a variable return through
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
the participation of the relevant activities of the investee and has the ability to use the power over the investee to
affect the amount of its return. The Company includes the subsidiaries with actual right of control (including
separate entity controlled by the Parent Company) into consolidated financial statements.2. Principles Procedures and Methods for the Preparation of Consolidated Statements
(1) Principles Procedures and Methods for the Preparation of Consolidated Statements
All subsidiaries included into the scope of consolidated financial statements adopted same accounting policies and
fiscal year with the Company. If the accounting policies and fiscal year of the subsidiaries are different to the
Company’s necessary adjustment should be made in accordance with the Company’s accounting policies and
fiscal year when consolidated financial statements are prepared.The consolidated financial statements are based on the financial statements of the Parent Company and
subsidiaries included into the consolidated scope. The consolidated financial statements are prepared by the
Company who makes adjustment to long-term equity investment to subsidiaries by equity method according to
other relevant materials after the offset of the share held by the Parent Company in the equity capital investment
of the Parent Company and owner’s equity of subsidiaries and the significant transactions and intrabranch within
the Company.For the balance formed because the current loss shared by the minority shareholders of the subsidiary is more than
the share enjoyed by the minority shareholders of the subsidiary in the initial shareholders’ equity if the Articles
of Corporation or Agreement didn’t stipulate that minority shareholders should be responsible for it then the
balance need to offset the shareholders’ equity of the Company; if the Articles of Corporation or Agreement
stipulated that minority shareholders should be responsible for it then the balance need to offset the minority
shareholders’ equity.
(2) Treatment Method of Increasing or Disposing Subsidiaries during the Reporting Period
During the Reporting Period if the subsidiaries were added due to Business combinations under the same control
then initial book balance of consolidated balance sheet need to be adjusted; the income expenses and profits of
subsidiaries from the combination’s period-begin to the end of the reporting period need to be included into
consolidated income statement; the cash flow of subsidiaries from the combination’s period-begin to the end of
the reporting period need to be included into consolidated cash flow statement. if the subsidiaries were added due
to Business combinations not under the same control then initial book balance of consolidated balance sheet
doesn’t need to be adjusted; the income expenses and profits of subsidiaries from the purchasing date to the end
of the reporting period need to be included into consolidated income statement; the cash flow of subsidiaries from
purchasing date to the end of the reporting period need to be included into consolidated cash flow statement.During the Reporting Period if the Company disposed the subsidiaries then the income expenses and profits of
subsidiaries from period-begin to the disposal date need to be included into consolidated income statement; the
cash flow of subsidiaries from period-begin to the disposal date need to be included into consolidated cash flow
statement.7. Classification of Joint Arrangements and Accounting Treatment of Joint Operations
A joint arrangement refers to an arrangement jointly controlled by two participants or above and be divided into
joint operations and joint ventures.When the Company is the joint venture party of the joint operations should recognize the following items related
to the interests share of the joint operations:
(1) Recognize the assets individually held and the assets jointly held by recognizing according to the holding
share;
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(2) Recognize the liabilities undertook individually and the liabilities jointly held by recognizing according to the
holding share;
(3) Recognize the revenues occurred from selling the output share of the joint operations enjoy by the Company;
(4) Recognize the revenues occurred from selling the assets of the joint operations according to the holding share;
(5) Recognize the expenses individually occurred and the expenses occurred from the joint operations according
to the holding share of the Company.When the Company is the joint operation party of the joint ventures should recognize the investment of the joint
ventures as the long-term equity investment and be measured according g to the said methods of the notes of the
long-term equity investment of the financial statement.8. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding cash and cash equivalents include cash on hand any deposit that can be used for
cover and short-term (usually due within 3 months since the day of purchase) and high circulating investments
which are easily convertible into known amount of cash and whose risks in change of value are minimal.9. Foreign Currency and Accounting Method for Foreign Currency
1. Foreign Currency Business
Foreign currency shall be recognized by employing systematic and reasonable methods and shall be translated
into the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate of
the transaction date. On the balance sheet date the foreign currency monetary items shall be translated at the spot
exchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balance
sheet date and the spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be
recorded into the profits and losses at the current period except that the balance of exchange arising from foreign
currency borrowings for the purchase and construction or production of qualified assets shall be capitalized. The
foreign currency non-monetary items measured at the historical cost shall still be translated at the spot exchange
rate on the transaction date.2. Translation of Foreign Currency Financial Statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheet
date. Among the owner’s equity items except for the items as “undistributed profits” other items shall be
translated at the spot exchange rate at the time when they are incurred. The revenues and the expenses items of the
income statement should be translated according to the spot rate on the exchange date.The difference of the foreign currency financial statements occurred from the above translation should be listed
under the “other comprehensive income” item of the owners’ equity of the consolidated financial statement. As for
the foreign currency items which actually form into the net investment of the foreign operation the exchange
difference occurred from the exchange rate changes should be listed under the “other comprehensive income” of
the owners’ equity among the consolidated financial statement when compile the consolidated financial statement.When disposing the foreign operation as for the discounted difference of the foreign financial statement related to
the foreign operation should be transferred in the current gains and losses according to the proportion. The foreign
cash flow adopts the spot exchange rate on the occurring date of the cash flow. And the influenced amount of the
exchange rate changes should be individually listed among the cash flow statement.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
10. Financial Instruments
Financial instruments refer to the contracts that constitute a company’s financial assets and the financial liabilities
or equity instruments of other units.1. Recognition and derecognition of financial instruments
When the Company becomes a party to a financial instrument it shall recognize a financial asset or financial
liability.A financial asset (or part of a financial asset or part of a group of similar financial assets) that meets the following
conditions should be derecognized or in other words be written off from its account and balance sheet:
1) The right to receive cash flow from the financial asset has expired;
2) The right to receive cash flow from the financial asset has been transferred or the “transfer” agreement
specifies the obligation to duly pay the full amount of cash flow received to a third party; and (a) has transferred
substantially all the risks and rewards of the asset or (b) has neither transferred nor retained substantially all the
risks and rewards of the asset but has transferred control of the asset.A financial liability that has been fulfilled canceled or expired should be derecognized. If a financial liability is
replaced with another financial liability by the same creditor on almost entirely different terms materially or the
terms for an existing liability have been almost fully revised materially such replacement or revision should be
treated as derecognition of the original liability and recognition of the new liability and the difference should be
included into current profits/losses.A financial asset traded in a conventional manner should be recognized and derecognized by trade-date
accounting. The trading of financial assets in a conventional manner means that financial assets are received or
delivered by the deadline as specified in regulations or general practice according to contract provisions. Trade
date refers to the date committed by the Company to buy or sell a financial asset.2. Classification and measurement of financial assets
The Company classifies the financial assets when initially recognized into financial assets measured at amortized
cost financial assets measured by the fair value and the changes recorded in other comprehensive income and
financial assets at fair value through profit or loss based on the business model for financial assets management
and characteristics of contractual cash flow of financial assets. Financial assets initially recognized shall be
measured at their fair values. For accounts receivable and notes receivable excluding major financing or without
regard to financing over one year generated from ales of commodities or provision of labor services the initial
measurement shall be conducted based on the transaction price.For financial assets at fair value through profit or loss the transaction expenses thereof shall be directly included
into the current profit or loss; for other financial assets the transaction expenses thereof shall be included into the
initially recognized amount.The subsequent measurement of financial assets depends on the classification thereof:
(1) Debt instrument investments measured at amortized cost
Financial assets meeting the following conditions at the same time shall be classified as financial assets measured
at amortized cost: the business mode of the Company to manage such financial assets targets at collecting the
contractual cash flow. The contract of such financial assets stipulates that the cash flow generated in the specific
date is the payment of the interest based on the principal and outstanding principal amount. The interest income
for this kind of financial assets shall be recognized by effective interest method and the gains or losses generated
from the derecognition modification or impairment shall all be included into the current profit or loss. This kind
of financial assets mainly consist of monetary capital accounts receivable and notes receivable other receivables
investments in debt obligations and long-term receivables. The Company presents the investments in debt
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
obligations due within one year since the balance sheet date and long-term receivables as current portion of
non-current assets and the original investments in debt obligations with maturity date within one year as other
current assets.
(2) Investments in debt instruments measured at fair value and changes thereof recorded into other comprehensive
income
Financial assets meeting the following conditions at the same time shall be classified as financial assets measured
at fair value and changes thereof recorded into other comprehensive income: the business mode of the Company
to manage such financial assets takes contract cash flow collected as target and selling as target. The contract of
such financial assets stipulates that the cash flow generated in the specific date is the payment of the interest based
on the principal and outstanding principal amount. The interest income for this kind of financial assets shall be
recognized by effective interest method. All changes in fair value should be included into other comprehensive
income except for interest income impairment losses and exchange differences which should be recognized as
current profits/losses. When a financial asset is derecognized the cumulative gains or losses included into other
comprehensive income previously should be transferred out and included into current profits/losses. Such
financial assets should be presented as other credit investments. Other credit investments that will mature within
one year from the date of balance sheet should be presented as non-current assets due within one year and other
credit investments with the original maturity date coming within one year should be presented as other current
assets.
(3) Equity instrument investment measured at fair value with changes included into other comprehensive income
The Company irrevocably chooses to designate part of non-trading equity instrument investments as financial
assets measured at fair value with changes included into other comprehensive income. Only related dividend
income (excluding the dividend income confirmed to be recovered as part of investment costs) will be recognized
into current profits/losses while subsequent changes in fair value will be recognized into other comprehensive
income without the withdrawal of impairment provisions required. When a financial asset is derecognized the
cumulative gains or losses included into other comprehensive income previously should be recognized into
retained earnings. Such financial assets should be presented as other equity investments.A financial asset that meets one of the following conditions is classified as a trading financial asset: The financial
asset has been acquired in order to be sold or repurchased in the near future; the financial asset is part of an
identifiable financial instrument portfolio under centralized management and there is evidence proving that the
company has recently adopted a short-term profit model; it is a derivative instrument but derivative instruments
that are designated as and are effective hedging instruments and those conforming with financial guarantee
contracts are excluded.
(4) Financial assets at fair value through profit or loss
The Company classifies financial assets except for above-mentioned financial assets measured with amortized
cost and financial assets measured with fair value whose change is included into other comprehensive income into
financial assets at fair value through profit or loss. The subsequent measurement of such kind of financial assets
shall be conducted by fair value method and all changes in fair value shall be recorded into the current profit or
loss. Such financial assets shall be presented as trading financial assets and those will due over one year since the
balance sheet date and expectedly held over one year shall be presented as other non-current financial assets.3. Classification and measurement of financial liabilities
The Company’s financial liabilities are on initial recognition classified into financial liabilities at fair value
through profit or loss other financial liabilities and derivative instruments designated as effective hedging
instruments. For financial liabilities at fair value through profit or loss relevant transaction costs are immediately
recognized in profit or loss for the current period and transaction costs relating to other financial liabilities are
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
included in the initial recognition amounts.The subsequent measurement of financial liabilities depends on the classification thereof:
(1) Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include trading financial liabilities (including the derivative
instruments belonging to financial liabilities) and financial liabilities designated at the initial recognition to be
measured by the fair value and their changes are recorded in the current profit or loss.A financial liability that meets one of the following conditions is classified as a trading financial liability: The
financial liability has been undertaken in order to be sold or repurchased in the near future; the financial liability is
part of an identifiable financial instrument portfolio under centralized management and there is evidence proving
that the company has recently adopted a short-term profit model; it is a derivative instrument but derivative
instruments that are designated as and are effective hedging instruments and those conforming with financial
guarantee contracts are excluded. Trading financial liabilities (including derivative instruments classified as
financial liabilities) should be subsequently measured at fair value and all changes in fair value should be
recorded into current profits/losses except for those related to hedging accounting.
(2) Other financial liabilities
For such kind of financial liabilities the subsequent measurement shall be conducted by effective interest method
based on the amortized cost.4. Impairment of financial instruments
Based on expected credit losses the Company carries out impairment treatment on financial assets measured at
amortized cost and debt instrument investments measured at fair value with changes included into other
comprehensive income rental receivables contract assets and financial assets and recognizes bad debt provision.Credit losses refer to the difference between all contract cash flows discounted by the original actual interest rate
receivable according to contracts and all cash flows expected to be received by the Company which is the present
value of all cash shortfalls. The financial assets purchased by or originating from the Company with credit
impairment should be discounted by the actual interest rate of the financial assets after credit adjustment.In respect of receivable accounts that do not contain significant financing components the Company uses the
simplified measurement method to measure bad debt provision by the amount equivalent to the expected credit
losses of the whole duration.In respect of receivable accounts that contain significant financing components the Company opts to use the
simplified measurement method to measure bad debt provision by the amount equivalent to the expected credit
losses for the whole duration.For other financial assets and financial guarantee contracts than the above using the simplified measurement
method the Company on the balance sheet date assesses whether their credit risks have increased substantially
since the initial recognition. If the credit risks have not increased substantially since the initial recognition and are
in the first stage the Company will measure bad debt provision by the amount equivalent to the expected credit
losses for the next 12 months and calculate interest income by the book balance and the actual interest rate; if the
credit risks have increased obviously without credit impairment since the initial recognition and are in the second
stage the Company will measure bad debt provision by the amount equivalent to the expected credit losses for the
whole duration and calculate interest income by the book balance and the actual interest rate; if the credit risks
have increased substantially with credit impairment since the initial recognition and are in the third stage the
Company will measure bad debt provision by the amount equivalent to the expected credit losses for the whole
duration and calculate interest income by the amortized cost and the actual interest rate. For financial instruments
with only low credit risks on the balance sheet date the Company assumes that their credit risks have not
increased substantially since the initial recognition.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
The Company 1) assesses expected credit losses of financial assets with credit impairment based on individual
items; 2) assesses expected credit losses of financial assets that are not derecognized but with changes in contract
cash flows due to revision of or renegotiation on contracts by the Company and the counterparty based on
individual items; 3) assesses expected credit losses of other financial assets based on age combination.The Company considers related past matters current conditions the reasonableness of the forecast on future
economic conditions and well-founded information when assessing expected credit losses.The Company’s information of the judgment standards for remarkable increase in credit risks definition of assets
with incurred credit impairment and assumption of measurement on expected credit losses is disclosed in this
Note 12 Accounts Receivable.When no longer reasonably expects to recover all or partial contractual cash flow of financial assets the Company
directly writes down the carrying amount of the financial assets.5. Financial instruments offset
a financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet when
the following conditions are met at the same time: When the Company has a legal right that is currently
enforceable to set off the recognized financial assets and financial liabilities and intends either to settle on a net
basis or to realize the financial asset and settle the financial liability simultaneously.6. Financial guarantee contract
A financial guarantee contract refers to a contract in which a specific debtor shall compensate the contract holder
suffering the losses when the debtor is unable to repay the debt in due course according to the debt instrument
terms. Financial guarantee contracts are measured at fair value at the initial recognition. After the initial
recognition all financial guarantee contracts should be subsequently measured by the higher amount between the
amount of bad debt provision for expected credit losses recognized on the balance sheet date and the balance of
the initially recognized amount deducting the cumulative amortization recognized according to the income
recognition principle except for the financial guarantee contracts designated as financial liabilities measured at
fair value with changes recorded into current profits/losses.7. Derivative financial instruments
The Company uses derivative financial instruments which are initially measured at the fair value on the signature
date of the derivative transaction contract and subsequently measured at their fair value. A derivative financial
instrument with a positive fair value is recognized as an asset and that with a negative fair value is recognized as a
liability. Gains or losses from changes in the fair value of derivative instruments are directly recognized into
current profits/losses.For the financial assets that are not derecognized but with changes in contract cash flows due to revision of or
renegotiation on contracts by the Company and the counterparty the Company recalculates the book balance of
the financial assets according to the renegotiated or revised contract cash flows by the discounted value of the
original actual interest rate (or the actual interest rate after credit adjustment). Relevant gains or losses are
recorded into current profits/losses. Costs or expenses for the revision of financial assets are adjusted to the
revised book balance of financial assets and amortized in the remaining period of the revised financial assets.8. Transfer of financial assets
As for the Company transferred nearly all of the risks and rewards related to the ownership of a financial asset to
the transferee should derecognize the financial assets; as for maintained nearly all of the risks and rewards related
to the ownership of a financial asset should continue to recognize the transferred financial assets.Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of a
financial asset it shall deal with it according to the circumstances as follows respectively: (1) If it gives up its
control over the financial asset it shall stop recognizing the financial asset and recognize the assets and liabilities
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
generated; (2) If it does not give up its control over the financial asset it shall according to the extent of its
continuous involvement in the transferred financial asset recognize the related financial asset and recognize the
relevant liability accordingly.11. Notes Receivable
Category Accounting estimate policy
Bank’s acceptance bill The Company evaluates that the portfolio has relatively low credit risks and
generally no provision for impairment is made.12. Accounts Receivable
The Company withdraws the impairment loss for accounts receivable excluding significant financing component
with the simplified method.1. Accounts Receivable with Significant Single Amount for which the Expected Credit Loss is Made Individually
Definition or amount criteria for an account Making separate expected credit loss for accounts receivable with a significant
receivable with a significant single amount single amount
Making separate expected credit loss for accounts For an account receivable with a significant single amount the impairment test
receivable with a significant single amount shall be carried out on it separately. If there is any objective evidence of
impairment the impairment loss is recognized and the expected credit loss is made
according to the difference between the present value of the account receivable’s
future cash flows and its carrying amount.2. Accounts Receivable for which the Expected Credit Loss is Withdrawn by Credit Risk Characteristics
Group name Withdrawal method of expected credit loss
Common transaction group Aging analysis method
Internal transaction group Other methods
In the groups those adopting aging analysis method to withdraw expected credit loss:
Aging Withdrawal proportion of accounts receivable
Within 1 year (including 1 year) 3%
1 to 2 years 10%
2 to 3 years 30%
3 to 4 years 50%
4 to 5 years 80%
Over 5 years 100%
3. Accounts Receivable with an Insignificant Single Amount but for which the Expected Credit Loss is Made
Independently
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Reason of individually withdrawing expected credit loss There are definite evidences indicate the obvious difference of thee
return ability
Withdrawal method for expected credit loss Recognizing the impairment loss and withdrawing the expected credit
loss according to the difference between the present value of the account
receivable’s future cash flows and its carrying amount.13. Accounts Receivable Financing
Not applicable
14. Other Receivables
Recognition method and accounting treatment for expected credit losses of other receivables
Recognition method and accounting treatment for expected credit losses of other receivables
Refer to Note 12 Accounts Receivable for details about the recognition method and accounting treatment for
expected credit losses of other receivables which is the same as that of accounts receivable.15. Inventories
1. Classification of Inventory
Inventory refers to finished products goods in process and materials consumed in the production process or the
provision of labor services held by the Company for sale in daily activities mainly including raw materials goods
in process materials in transit finished products commodities turnover materials and commissioned processing
materials. Turnover materials include low-value consumables and packaging.2. Pricing Method of Inventory Sent Out
The inventory is valued at actual cost when acquired and inventory costs include procurement costs processing
costs and other costs. The weighted average method is used when receiving or sending out inventory.3. Basis for Determining the Net Realizable Value of Inventory and the Method of Withdrawal for Inventory
Impairment
Net realizable value refers to the estimated selling price of the inventory minus the estimated cost to be incurred at
the time of completion the estimated selling expenses and the relevant taxes and fees in daily activities. In
determining the net realizable value of inventory the conclusive evidence obtained is used as the basis and the
purpose of holding the inventory and the impact of the events after the balance sheet date should be taken into
account.For finished products the materials used for sale and other goods used for direct sale the net realizable value is
determined by the estimated selling price of the inventory minus the estimated selling expenses and related taxes
in the process of normal production and operation.For materials inventory needs to be processed the net realizable value is determined by the estimated selling price
of the finished products minus the estimated cost to be incurred the estimated sales costs and the relevant taxes
and fees in the process of normal production and operation.4. Inventory System
The inventory system of the Company is perpetual inventory.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
5. Amortization Method of Turnover Materials
Low-value consumables are amortized in one-off method.The packaging is amortized in one-off method.16. Contract Assets
The Company presents the right possessed to collect consideration from customers unconditionally (only
depending on the passing of time) as accounts receivable and the right to charge the consideration through
transferring any commodity to clients which depends on other factors except the passing of time as contract assets.As for the recognition method and accounting treatment for expected losses of contract assets please refer to Note
12. Accounts Receivable.17. Contract Cost
Not applicable
18. Assets Held for Sale
1. Assets Held for Sale
When a company relies mainly on selling (including the exchanges of non-monetary assets with commercial
substance) instead of continuing to use a non-current asset or disposal group to recover its book value the
non-current asset or disposal group is classified as asset held for sale. The non-current assets mentioned above do
not include investment properties that are subsequently measured by the fair value model biological assets
measured by fair value less net selling costs assets formed from employee remuneration financial assets deferred
income tax assets and rights generated from insurance contracts.Disposal group refers to a group of assets that are disposed of together as a whole through sale or other means in a
transaction and the liabilities directly related to these assets transferred in the transaction. In certain
circumstances the disposal group includes goodwill obtained in business combination.The Company recognizes non-current assets or disposal groups that meet both of the following conditions as held
for sale: ① Assets or disposal groups can be sold immediately under current conditions based on the practice of
selling such assets or disposal groups in similar transactions; ② Sales are highly likely to occur that is the
Company has already made a resolution on a sale plan and obtained a certain purchase commitment and the sale
is expected to will be completed within one year and the sale has been approved if relevant regulations require
relevant authority or regulatory authority of the Company to approve it.Non-current assets or disposal groups specifically obtained by the Company for resale will be classified by the
Company as a held-for-sale category on the acquisition date when they meet the stipulated conditions of
“expected to be sold within one year” on the acquisition date and may well satisfy the category of held-for-sale
within a short time (which is usually 3 months).If one of the following circumstances cannot be controlled by the Company and the transaction between
non-related parties fails to be completed within one year and there is sufficient evidence that the Company still
promises to sell the non-current assets or disposal groups the Company should continue to classify the
non-current assets or disposal groups as held-for-sale: ①The purchaser or other party unexpectedly sets
conditions that lead to extension of the sale. The Company has already acted on these conditions in a timely
manner and it is expected to be able to successfully deal with the conditions that led to the extension of the sale
within one year after the conditions were set. ②Due to unusual circumstances the non-current assets or disposal
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
groups held for sale failed to be sold within one year. In the first year the Company has taken necessary measures
for these new conditions and the assets or disposal groups meet the conditions of held-for-sale again.If the Company loses control of a subsidiary due to the sale of investments to its subsidiaries whether or not the
Company retains part of the equity investment after the sale when the proposed sale of the investment to the
subsidiary meets the conditions of held- for-sale the investment to the subsidiary will be classified as
held-for-sale in the individual financial statement of the parent company and all the assets and liabilities of the
subsidiary will be classified as held-for-sale in the consolidated financial statement.When the company initially measures or re-measures non-current assets or disposal groups held for sale on the
balance sheet date if the book value is higher than the fair value minus the net amount of the sale costs the book
value will be written down to the net amount of fair value minus the sale costs and the amount written down will
be recognized as impairment loss of assets and included in the current profit and loss and provision for
impairment of held-for-sale assets will be made. For the confirmed amount of impairment loss of assets of the
disposal groups held for sale the book value of goodwill of the disposal groups will be offset first and then the
book value of various non-current assets in the disposal groups will be offset according to the proportions.If the net amount that the fair value of the non-current assets or disposal groups held for sale on the follow-up
balance sheet date minus the sale costs increases the previous written-down amount will be restored and reversed
to the asset impairment loss confirmed after the assets being classified as held-for-sale. The reversed amount will
be included in the current profit or loss. The book value of goodwill that has been deducted cannot be reversed.Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation or
amortization. Interest and other expenses of liabilities in the disposal group held for sale will be confirmed as
before.When a non-current asset or disposal group ceases be classified as held-for-sale or a non-current asset is removed
out from the held-for-sale disposal group due to failure in meeting the classification conditions for the category of
held-for-sale it will be measured by one of the followings whichever is lower:
① The book value before being classified as held for sale will be adjusted according to the depreciation
amortization or impairment that would have been recognized under the assumption that it was not classified as
held for sale;
② The recoverable amount.2. Termination of Operation
Termination of operation refers to a separately identifiable constituent part that satisfies one of the following
conditions that has been disposed of by the Company or is classified as held-for-sale:
(1) This constituent part represents an independent main business or a separate main business area.
(2) This constituent part is part of an associated plan that is intended to be disposed of in an independent main
business or a separate major business area.
(3) This constituent part is a subsidiary that is specifically acquired for resale.
3. Presentation
In the balance sheet the Company distinguishes the non-current assets held for sale or the assets in the disposal
group held for sale separately from other assets and distinguish the liabilities in the disposal group held for sale
separately from other liabilities. The non-current assets held for sale or the assets in the disposal group held for
sale are not be offset against the liabilities in the disposal group held for sale. They are presented as current assets
and current liabilities respectively.The Company lists profit and loss from continuing operations and profit and loss from operating profits in the
income statement. For the termination of operations for the current period the Company restates the information
originally presented as profit or loss of continuing operation in the current financial statements to profit or loss of
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
termination of the comparable accounting period. If the termination of operation no longer meets the conditions of
held-for-sale the Company restates the information originally presented as a profit and loss of termination in the
current financial statements to profit or loss of continuing operation of the comparable accounting period.19. Investments in Debt Obligations
Not applicable
20. Other Investments in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
Long-term equity investment refers to the Company’s long-term equity investment with control joint control or
significant influence on the investee. The long-term equity investment of the Company which has no control joint
control or significant influence on the investee is accounted for as financial assets available-for-sale or financial
assets at fair value and changes recognized in profit or loss for the current period. For details of accounting
policies please refer to 10. Financial instruments
Joint control refers to the control that is common to an arrangement in accordance with the relevant agreement
and the relevant activities of the arrangement must be agreed upon by the participant who has shared the control.Significant influence refers to the Company has the power to participate in decision-making on the financial and
operating policies of the investee but can’t control or jointly control the formulation of these policies with other
parties.1. Investment Cost Recognition for Long-term Equity Investments
(1) For the merger of enterprises under the same control it shall on the date of merger regard the share of the
book value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment
and the direct relevant expenses occurred for the merger of enterprises shall be included into the profits and losses
of the current period.
(2) For the merger of enterprises not under the same control The combination costs shall be the fair values on the
acquisition date of the assets paid the liabilities incurred or assumed and the equity securities issued by the
Company in exchange for the control on the acquiree and all relevant direct costs incurred to the acquirer for the
business combination. Where any future event that is likely to affect the combination costs is stipulated in the
combination contract or agreement if it is likely to occur and its effects on the combination costs can be measured
reliably the Company shall record the said amount into the combination costs.
(3) The cost of a long-term equity investment obtained by making payment in cash shall be the purchase cost
which is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-term
equity investment taxes and other necessary expenses.
(4) The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fair
value of the equity securities issued.
(5) The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercial
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
nature) shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assets
received.
(6) The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at the
fair value.2. Subsequent Measurement of Long-term Equity Investment and Recognized Method of Profit/Loss
The long-term equity investment with joint control (except for the common operator) or significant influence on
the investee is accounted by equity method. In addition the Company's financial statements use cost method to
calculate long-term equity investments that can control the investee.
(1) Long-term Equity Investment Accounted by Cost Method
When the cost method is used for accounting the long-term equity investment is priced at the initial investment
cost and the cost of the long-term equity investment is adjusted according to additional investment or recovered
investment. Except the price actually paid when acquired investment or cash dividends or profits that have been
declared but not yet paid included in the consideration current investment income is recognized by the cash
dividends or profits declared by the investee.
(2) Long-term Equity Investment Accounted by Equity Method
When the equity method is used for accounting if the initial investment cost of the long-term equity investment is
greater than the fair value of the investee’s identifiable net assets the initial investment cost of the long-term
equity investment shall not be adjusted; if the initial investment cost is less than the fair value of the investee’s
identifiable net assets the difference shall be recorded into the current profits and losses and the cost of the
long-term equity investment shall be adjusted at the same time.When the equity method is used for accounting the investment income and other comprehensive income shall be
recognized separately according to the net profit or loss and other comprehensive income realized by the investee
and the book value of the long-term equity investment shall be adjusted at the same time. The part entitled shall be
calculated according to the profits or cash dividends declared by the investee and the book value of the long-term
equity investment shall be reduced accordingly. For other changes in the owner’s equity other than the net profit
or loss other comprehensive income and profit distribution of the investee the book value of the long-term equity
investment shall be adjusted and included in the capital reserve. When the share of the net profit or loss of the
investee is recognized the net profit of the investee shall be adjusted and recognized according to the fair value of
the identifiable assets of the investee when the investment is made. If the accounting policies and accounting
periods adopted by the investee are inconsistent with the Company the financial statements of the investee shall
be adjusted according to the accounting policies and accounting periods of the Company and the investment
income and other comprehensive income shall be recognized accordingly. For the transactions between the
Company and associates and joint ventures if the assets made or sold don’t constitute business the unrealized
gains and losses of the internal transactions are offset by the proportion attributable to the Company and the
investment gains and losses are recognized accordingly. However the loss of unrealized internal transactions
incurred by the Company and the investee attributable to the impairment loss of the transferred assets shall not be
offset. If the assets made to associates or joint ventures constitute business and the investor makes long-term
equity investment but does not obtain the control the fair value of the investment shall be taken as the initial
investment cost of the new long-term equity investment and the difference between initial investment and the
book value of the investment is fully recognized in profit or loss for the current period. If the assets sold by the
Company to joint ventures or associates constitute business the difference between the consideration and the book
value of the business shall be fully credited to the current profits and losses. If the assets purchased by Company
from joint ventures or associates constitute business conduct accounting treatment in accordance with the
provisions of Accounting Standard for Business Enterprises No. 20 - Business combination and the profits or
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
losses related to the transaction shall be recognized in full.When the net loss incurred by the investee is recognized the book value of the long-term equity investment and
other long-term equity that substantially constitute the net investment in the investee shall be written down to zero.In addition if the Company has an obligation to bear additional losses to the investee the estimated liabilities are
recognized in accordance with the obligations assumed and included in the current investment losses. If the
investee has realized net profit in later period the Company will resume the recognition of the income share after
the income share has made up the unrecognized loss share.
(3) Acquisition of Minority Interests
In the preparation of the consolidated financial statements capital reserve shall be adjusted according to the
difference between the long-term equity investment increased due to the purchase of minority interests and the
share of the net assets held by the subsidiary from the date of purchase (or the date of combination) calculated
according to the proportion of the new shareholding ratio and retained earnings shall be adjusted if the capital
reserve is insufficient to offset.
(4) Disposal of Long-term Equity Investment
In the consolidated financial statements the parent company partially disposes of the long-term equity investment
in the subsidiary without the loss of control and the difference between the disposal price and the net assets of the
subsidiary corresponding to the disposal of the long-term equity investment is included in the shareholders’ equity.If the disposal of long-term equity investment in subsidiaries results in the loss of control over the subsidiarieshandle in accordance with the relevant accounting policies described in NotesⅥ. “Principles Procedures andMethods for the Preparation of Consolidated Statements” .In other cases the difference between the book value and the actual acquisition price shall be recorded into the
current profits and losses for the disposal of the long-term equity investment.For long-term equity investment accounted by the equity method and residual equity after disposal still accounted
by the equity method other comprehensive income originally included in the shareholders’ equity shall be treated
in the same basis of the investee directly disposing related assets or liabilities by corresponding proportion. The
owner’s equity recognized by the change of the owner’s equity of the investee other than the net profit or loss
other comprehensive income and profit distribution is carried forward proportionally into the current profits and
losses.For long-term equity investment accounted by the cost method and residual equity after disposal still accounted by
the cost method other comprehensive income accounted by equity method or recognized by financial instrument
and accounted and recognized by measurement criteria before the acquisition of the control over the investee is
treated in the same basis of the investee directly disposing related assets or liabilities and carried forward
proportionately into the current profits and losses. Other changes of owner’s equity in net assets of the investee
accounted and recognized by the equity method other than the net profit or loss other comprehensive income and
profit distribution are carried forward proportionally into the current profits and losses.3. Impairment Provisions for Long-term Equity Investments
For the relevant testing method and provision making method see Notes 31. Impairment of Long-term Assets.23. Investment Property
Measurement model for investment property
Not applicable
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
24. Fixed Assets
(1) Recognition Conditions
Fixed assets of the Company refers to the tangible assets that simultaneously possess the features as follows: they
are held for the sake of producing commodities rendering labor service renting or business management; and
their useful life is in excess of one accounting year and unit price is higher. No fixed assets may be recognized
unless it simultaneously meets the conditions as follows: ① The economic benefits pertinent to the fixed asset
are likely to flow into the Company; and ② The cost of the fixed asset can be measured reliably. 1. Initial
recognition of fixed assets The Company's fixed assets are initially measured at cost. Specifically the costs of
purchased fixed assets include the purchase price relevant taxes and fees and other expenditures incurred before
the fixed assets reach the pre-determined serviceable condition that can be directly attributable to the assets. The
costs of self-built fixed assets contain the necessary expenditures incurred before the assets built reach their
pre-determined serviceable condition. If the amount paid for the purchase of fixed assets witnesses postponed
payment due to that the normal credit conditions are exceeded and is actually financing in nature the costs of such
fixed assets shall be determined on the basis of the present value of the purchase price. The difference between the
actual amount paid and the present value of the purchase price except for the difference that should be capitalized
shall be recognized as profit and loss of the current period during the credit period.
(2) Depreciation Method
Expected net salvage
Category of fixed assets Method Useful life Annual deprecation
value
Housing and building Average method of
3—30 years 5% 31.67%-3.17%
useful life
Machinery equipments Average method of
2—10 years 5% 47.50%-9.50%
useful life
Transportation vehicle Average method of
5—10 years 5% 19.00%-9.50%
useful life
Average method of
Electronic equipment 2—8 years 5% 47.50%-11.88%
useful life
(3) Recognition Basis Pricing and Depreciation Method of Fixed Assets by Finance Lease
Not applicable
25. Construction in Progress
1. Pricing of Construction in Progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carried forward
into fixed assets at the actual cost when reach intended usable condition. The borrowing expenses eligible for
capitalization incurred before the delivery of the construction are included in the construction cost; after the
delivery the relevant interest expense shall be recorded into the current profits and losses.2. Standard and Time of Construction in Progress Carrying Forward into Fixed Assets
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
The Company’s construction in progress is carried forward into fixed assets when the construction completes and
reaches intended usable condition. The criteria for determining the intended usable condition shall meet one of the
following:
(1) The physical construction (including installation) of fixed assets has been completed or substantially
completed;
(2) Has been produced or run for trial and the results indicate that the assets can run normally or can produce
stable products stably or the results of the trial operation show that it can operate normally;
(3) The amount of the expenditure on the fixed assets constructed is little or almost no longer occurring;
(4) The fixed assets purchased have reached the design or contract requirements or basically in line with the
design or contract requirements.3. Provision for Impairment of Construction in Progress
Please refer to Note 31: Long-term Asset Impairment under Note V for the impairment test method and provision
for impairment of construction in progress.26. Borrowing Costs
The borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings
including interest on borrowings amortization of discounts or premiums ancillary expenses and exchange
differences arising from foreign currency borrowings. The borrowing costs incurred by the Company directly
attributable to the acquisition construction or production of assets eligible for capitalization are capitalized and
included in the cost of the relevant assets. Other borrowing costs are recognized as expenses according to the
amount at the time of occurrence and are included in the current profits and losses.1. Principle of capitalization of borrowing costs
Borrowing costs can be capitalized when all the following conditions are met: Asset expenditure has already
occurred; borrowing costs have already occurred; construction or production activities necessary to bring the
assets to the intended useable or sellable status have already begun.2. Capitalization period of borrowing costs
Capitalization period refers to the period from the capitalization of borrowing costs starting to the end of
capitalization excluding the period when capitalization is suspended.If assets that meet the conditions of capitalization are interrupted abnormally in the course of construction or
production and the interruption time exceeds 3 consecutive months the capitalization of borrowing costs shall be
suspended. The borrowing costs incurred during the interruption are recognized as expenses and included in
current profits and losses until the acquisition or construction of the assets is resumed. The capitalization of the
borrowing costs continues if the interruption is a procedure necessary for the purchase or production of assets
eligible for capitalization to meet the intended useable or sellable status.The borrowing costs shall cease to be capitalized when the purchased or produced assets that meet the conditions
of capitalization meet the intended useable or sellable status. The borrowing costs incurred after the assets eligible
for capitalization meet the intended useable or sellable status can be included in the current profits and losses
when incurred.3. Calculation method of capitalized amount of borrowing costs
During the period of capitalization the capitalization amount of interests (including amortization of discounts or
premiums) for each accounting period is determined in accordance with the following provisions:
(1) For special borrowings for the acquisition or construction of assets eligible for capitalization the interest
expenses actually incurred in the current period of borrowings shall be recognized after deducting the interest
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
income obtained by depositing the unused borrowing funds into the bank or investment income obtained from
temporary investment.
(2) Where the general borrowing is occupied for the acquisition or construction of assets eligible for capitalization
the Company multiplies the weighted average of the asset expenditure of the accumulated asset expenditure
exceeding the special borrowing by the capitalization rate of the general borrowing to calculate the amount of
interest that should be capitalized for general borrowings. The capitalization rate is determined based on the
weighted average interest rate of general borrowings.27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
On the start date of the lease term the Company recognizes its right to use the leasehold property in the lease term
as right-of-use assets including: The initial measurement amount of the lease obligation; the lease payment paid
on or before the start date of the lease term. If there is a lease incentive the amount related to the lease incentive
taken should be deducted. the initial direct cost incurred by the lessee; the estimated cost that the lessee will use to
pull down and remove the leasehold property and restore the site of the leasehold property or restore the leasehold
property to the state agreed in the lease clauses. Then the Company will depreciate the right-of-use assets with the
straight-line method. If it is reasonably certain that the ownership of the leasehold property will be obtained at the
end of the lease term the Company will depreciate the leasehold property over its remaining 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 leasehold property over the lease term or the remaining service life whichever is
shorter.When the Company re-calculates the lease obligation using the present value (PV) of the changed lease payment
and correspondingly adjusts the book value of the right-of-use assets if the book value is already reduced to zero
yet the lease obligation still needs to be reduced further the Company will include the remaining amount in the
current profit or loss.30. Intangible Assets
(1) Pricing Method Useful Life and Impairment Test
1. Recognition Criteria of Intangible Assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without
physical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to the
definition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into
the Company; (3) The costs of the assets can be measured reliably.2. Initial Measurement of Intangible Assets
Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(1) The cost of the acquisition of intangible assets including the purchase price relevant taxes and other expenses
directly attributable to the intended use of the asset. The payment of purchase price of intangible assets exceeding
normal credit terms is deferred and the cost of intangible assets having financing nature in essence shall be
recognized based on the present value of the purchase price. The difference between the actual payment price and
the present value of the purchase price shall be recorded into the current profits and losses in the credit period
except that can be capitalized in accordance with the Accounting Standard for Business Enterprises No. 17 -
Borrowing Cost.
(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in the
investment contract or agreement except that the value of the contract or agreement is unfair.3. Subsequent Measurement of Intangible Assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets
is limited and the years of the useful life or output that constitutes the useful life or similar measurement units
shall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term that
brings economic benefits to the Company is unforeseeable
Intangible assets with limited useful life shall be amortized by straight line method from the time when the
intangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertain useful
life shall not be amortized. The Company reviews the estimated useful life and amortization method of intangible
assets with limited useful life at the end of each year and reviews the estimated useful life of intangible assets
with uncertain useful life in each accounting period. For intangible assets that evidence shows the useful life is
limited the useful life shall be estimated and the intangible assets shall be amortized in the estimated useful life.4. Recognition Criteria and Withdrawal Method of Intangible Asset Impairment Provision
The impairment test method and withdrawal method for impairment provision of intangible assets are detailed in
Note 31: Long-term asset impairment under Note V.
(2) Accounting Policy for Internal Research and Development Expenditures
The expenditures in internal research and development projects of the Company are classified into expenditures in
research stage and expenditures in development stage. The expenditures in research stage are included in the
current profits and losses when incurred. The expenditures in development stage are recognized as intangible
assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits including the proof that the products
produced with the intangible asset have market or the proof of its usefulness if the intangible asset has market and
will be used internally;
(4) Having sufficient technical financial resources and other resources to support the development of the
intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred since meeting intangible assets
recognition criterion until reaching intended use. Expenditures that have been expensed in previous periods are no
longer adjusted.Non-monetary assets exchange debt restructuring government subsidies and the cost of intangible assets acquired
by business combination are recognized according to relevant provisions of Accounting Standard for Business
Enterprises No. 7 - Non-monetary assets exchange Accounting Standard for Business Enterprises No. 12 - Debt
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
restructuring Accounting Standards for Business Enterprises No. 16 - Government subsidies Accounting
Standard for Business Enterprises No. 20 - Business combination respectively.31. Impairment of Long-term Assets
For non-current non-financial assets such as fixed assets construction in progress intangible assets with limited
useful life investment real estate measured in cost mode and long-term equity investments in subsidiaries joint
ventures and associates the Company determines whether there is indication of impairment at balance sheet date.If there is indication of impairment then estimate the amount of its recoverable value and test the impairment.Goodwill intangible assets with uncertain useful life and intangible assets that have not yet reached useable state
shall be tested for impairment every year whether or not there is any indication of impairment.If the impairment test results indicate that the recoverable amount of the asset is lower than its book value the
impairment provision shall be made at the difference and included in the impairment loss. The recoverable amount
is the higher of the fair value of the asset minus the disposal cost and the present value of the expected future cash
flow of the asset. The fair value of the asset is recognized according to the price of the sales agreement in the fair
trade; if there is no sales agreement but there is an active market the fair value is recognized according to the
buyer’s bid of the asset; if there is no sales agreement or active market the fair value of asset shall be estimated
based on the best information that can be obtained. Disposal costs include legal costs related to disposal of assets
related taxes handling charges and direct costs incurred to enable the asset reaching sellable status. The present
value of the expected future cash flows of the assets is recognized by the amount discounted at appropriate
discount rate according to the expected future cash flows arising from the continuing use of the asset and the final
disposal. The provision for impairment of assets is calculated and recognized on the basis of individual assets. If it
is difficult to estimate the recoverable amount of individual assets the recoverable amount of the asset group shall
be recognized by the asset group to which the asset belongs. The asset group is the smallest portfolio of assets that
can generate cash inflows independently.The book value of the goodwill presented separately in the financial statements shall be apportioned to the asset
group or portfolio of asset groups that is expected to benefit from the synergies of the business combination when
the impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that
the recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is
lower than its book value. The amount of the impairment loss shall offset the book value of the goodwill
apportioned to the asset group or portfolio of asset groups and offset the book value of other assets in proportion
according to the proportion of the book value of other assets except the goodwill in the asset group or portfolio of
asset groups.Once the impairment loss of the above asset is recognized the portion that the value is restored will not be written
back in subsequent periods.32. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (one year
excluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shall
be amortized averagely within benefit period. In case of no benefit in the future accounting period the amortized
value of such project that fails to be amortized shall be transferred into the profits and losses of the current period.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
33. Contract Liabilities
The Company’s obligation of transferring commodities to customers due to consideration received or receivable
from clients. If the client has paid the contract consideration or the Company has obtained the unconditional right
of collection before the Company transfers commodities to the customer the Company shall present the accounts
received or receivable as contract liabilities at the earlier time between the time when the client actually conducts
payment and the deadline of payment. Contract assets and contract liabilities under the same contract shall be
presented based on the net amount while those not under the same contract shall not be offset.34. Payroll
(1) Accounting Treatment of Short-term Compensation
Short-term compensation mainly including salary bonus allowances and subsidies employee services and
benefits medical insurance premiums birth insurance premium industrial injury insurance premium housing
fund labor union expenditure and personnel education fund non-monetary benefits etc. The short-term
compensation actually happened during the accounting period when the active staff offering the service for the
Group should be recognized as liabilities and is included in the current gains and losses or relevant assets cost. Of
which the non-monetary benefits should be measured according to the fair value.
(2) Accounting Treatment of the Welfare after Demission
Welfare after demission mainly includes defined contribution plans and defined benefit plans. Of which defined
contribution plans mainly include basic endowment insurance unemployment insurance annuity funds etc. and
the corresponding payable and deposit amount should be included into the relevant assets cost or the current gains
and losses when happen.
(3) Accounting Treatment of the Demission Welfare
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor
contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a
layoff and should recognize the payroll liabilities occurred from the demission welfare base on the earlier date
between the time when the Group could not one-sided withdraw the demission welfare which offered by the plan
or layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost related to the
reorganization of the payment of the demission welfare and at the same time includes which into the current gains
and losses. But if the demission welfare is estimated that could not totally pay after the end of the annual report
within 12 months should be disposed according to other long-term payroll payment.
(4) Accounting Treatment of the Welfare of Other Long-term Staffs
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare.The group would recorded the salary and the social security insurance fees paid and so on from the employee’s
service terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under the
condition that they meet the recognition conditions of estimated liabilities.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
The other long-term welfare that the Group offers to the staffs if met with the setting drawing plan should be
accounting disposed according to the setting drawing plan while the rest should be disposed according to the
setting revenue plan.35. Lease Liabilities
On the start date of the lease term the Company recognizes the PV of the unpaid lease payment as a lease
obligation except for the short-term and low-value asset leases. It will regard the interest rate implicit in lease as
the rate of discount when calculating the PV of the lease payment. The incremental lending rate of the lessee will
be deemed as the rate of discount if the interest rate implicit in lease cannot be confirmed. The Company
calculates the interest charge of the lease obligation in each period in the lease term at a fixed periodic interest rate
and includes it in the current profit or loss unless such interest charge is stipulated to be included in the
underlying asset cost. Variable lease payments that are not included in the measurement of the lease obligation
should be included in the current profit or loss when they are actually incurred unless such payments are
stipulated to be included in the underlying asset cost.The Company will re-calculate the lease obligation using the PV of the changed lease payment if the actual fixed
payment the estimated payable of the residual value of the guarantee the index or rate used to confirm the lease
payment or the assessment result of the call option the renewal option or the termination option or the actual
exercise changes after the start date of the lease term.36. Provisions
1. Recognition of Provisions
The obligation such as external guaranty pending litigation or arbitration product quality assurance layoff plan
loss contract restructuring and disposal of fixed assets pertinent to a contingencies shall be recognized as an
provisions when the following conditions are satisfied simultaneously: ① That obligation is a current obligation
of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result of
performance of the obligation; and ③ The amount of the obligation can be measured in a reliable way
2. Measurement of Provisions
The provisions shall be initially measured in accordance with the best estimate of the necessary expenses for the
performance of the current obligation. If there is a sequent range for the necessary expenses and if all the
outcomes within this range are equally likely to occur the best estimate shall be determined in accordance with
the middle estimate within the range. In other cases the best estimate shall be conducted in accordance with the
following situations respectively: ① If the Contingencies concern a single item it shall be determined in the
light of the most likely outcome. ② If the Contingencies concern two or more items the best estimate should be
calculated and determined in accordance with all possible outcomes and the relevant probabilities. ③ When all
or some of the expenses necessary for the liquidation of an provisions of an enterprise is expected to be
compensated by a third party the compensation should be separately recognized as an asset only when it is
virtually certain that the reimbursement will be obtained. The Company shall check the book value of the
provisions on the balance sheet date. The amount of compensation is not exceeding the book value of the
recognized provisions.37. Share-based Payment
Not applicable
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
38. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
39. Revenue
The Accounting Policy Adopted for Recognition and Measurement of Revenue
1. Accounting policies adopted in revenue recognition and measurement
The Company recognizes revenue when it has satisfied its performance obligations under the contract i.e. when the
customer has obtained control of relevant goods or services. Obtaining control of relevant goods or services means
being able to direct the use of them and obtain substantially all of the benefits from them.Where the contract contains two or more performance obligations the Company at the inception date of the contract
allocates the transaction price to each performance obligation in accordance with the relative proportion of the
stand-alone selling price of the goods or services promised by each performance obligation. The Company measures
revenue on the basis of the transaction price allocated to each performance obligation.Transaction price is the amount of consideration to which the Company expects to be entitled in exchange for
transferring goods or services to a customer excluding amounts collected on behalf of third parties and amounts
expected to be returned to the customer. The Company determines the transaction price in accordance with the terms
of the contract with past business practices taken into account. When determining the transaction price it considers
the impact of variable consideration the existence of a significant financing component in the contract non-cash
consideration consideration payable to a customer and other factors. The transaction price is recognized only to the
extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognized will not
occur when the relevant uncertainty is resolved. Where a contract contains a significant financing component the
Company determines the transaction price on the basis of the amount presumably payable in cash when the
customer obtains control of the goods or services and uses the actual interest method to amortize the difference
between the transaction price and the contract consideration during the contract period.A performance obligation is satisfied over time if one of the following conditions is met; otherwise it is treated as
satisfied at a point in time:
(1) The customer simultaneously receives and consumes the benefits provided by the Company's performance as the
Company performs.
(2) The customer can control the goods as they are created during the Company's performance.
(3) The goods produced by the Company's performance have no alternative use and the Company has the right to
collect payment for performance completed to date during the entire contract period.Where a performance obligation is to be satisfied over time the Company recognizes revenue in accordance with
the progress of performance during that period except when the progress cannot be reasonably determined. In
determining the progress of performance the Company takes into account the nature of the goods or services and
adopts the output methods or the input methods.Where the performance progress cannot be reasonably determined and the costs incurred are expected to be
recovered the Company recognizes revenue according to the amount of the costs incurred until the progress can be
reasonably determined.Where the performance obligation is to be satisfied at a certain point in time the Company recognizes revenue at the
point when the customer obtains control of the relevant goods or services. When judging whether the customer has
obtained control of goods or services the Company considers the following indicators:
(1) The Company has a present right to receive payment for the goods or services i.e. the customer has a present
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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: 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.
(2) Recognition of export sales revenue: The Company has produced goods according to the requirements stipulated
in the sales contract and completed the export declaration procedures after the goods have passed inspection; the
freight company has shipped the goods the amount of revenue has been determined an export sales invoice has
been issued and the payment has been received or is expected to be recovered.Differences in accounting policies for the recognition of revenue caused by different business models for the same
type of business
40. Government Subsidies
1. Category of Government Subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Company from the
government which mainly include government subsidies related to assets and government subsidies related to
income.2. Distinction Standard of Government Subsidies Related to Assets with Government Subsidies Related to Income
The government subsidies related to assets refer to the government subsidies obtained for acquisition construction
or otherwise formation of long-term assets. The government subsidies related to income refer to the government
subsidies except the government subsidies related to assets.The specific standard of classifying the government subsidies as subsidies related to assets: government subsidies
for acquisition construction or otherwise formation of long-term assets.The specific criteria that the Company classifies government subsidies as income related is: other government
subsidies other than asset-related government subsidies.If the government documents do not specify the subsidy object the bases that the Company classified the
government subsidies as assets-related subsidies or income-related subsidies were as follows: (1) If the specific
items for which the subsidy is targeted are stipulated in government documents divide according to the relative
proportion of the amount of expenditure that forms assets and the amount of expenditure included in the cost in
the budget for that particular project and the proportion shall be reviewed at each balance sheet date and changed
as necessary; (2) if the government documents only have a general statement of the purpose and do not specify a
specific project the subsidy is recognized as government subsidy related to income.3. Measurement of Government Subsidies
If a government subsidy is a monetary asset it shall be measured according to the amount received or receivable.If a government subsidy is a non-monetary asset it shall be measured at its fair value and shall be measured at a
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
nominal amount (RMB1) when the fair value cannot be obtained reliably.For confirmed government subsidies that need to be returned if there is relevant deferred income the book
balance of related deferred income shall be written off and the excess shall be charged to profit or loss for the
Current Period; for other circumstances it shall be directly charged to profit or loss for the Current.4. Accounting Treatment for Government Subsidies
The Company adopts the gross method to confirm government subsidies.The government subsidies related to assets are recognized as deferred income and are charged to the current
profit or loss in a reasonable and systematic manner within the useful lives of the relevant assets (subsidies related
to the daily activities of the Company are included in other income; while subsidies unrelated to the daily
activities of the Company are included in non-operating income). Government subsidies measured at nominal
amounts are directly charged to profit or loss for the Current Period. Where the relevant assets are sold transferred
scrapped or damaged before the end of their useful lives the balance of related undistributed deferred income
shall be transferred to the profit or loss of the asset disposal in the Current Period.Government subsidies related to income shall be treated as follows:
(1) government subsidies used to compensate the relevant costs expenses or losses of the Company in the
subsequent period shall be recognized as deferred income and shall be included in the current profit and loss
during the period of confirming the relevant costs expenses or losses (subsidies related to the daily activities of
the Company are included in other income; while subsidies unrelated to the daily activities of the Company are
included in non-operating income);
(2) government subsidies used to compensate the relevant costs expenses or losses incurred by the Company
shall be directly included in the current profits and losses (subsidies related to the daily activities of the Company
are included in other income; while subsidies unrelated to the daily activities of the Company are included in
non-operating income).For government subsidies that include both assets-related and income-related parts they should be distinguished
separately for accounting treatment; for government subsidies that are difficult to be distinguished they should be
classified as income-related.41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The income tax of the Company includes the current income tax and deferred income tax. Both are recorded into
the current gains and losses as income tax expenses or revenue except in the following circumstances:
(1) The income tax generated from the business combination shall be adjusted into goodwill;
(2) The income tax related to the transaction or event directly included in shareholders’ equity shall be recorded
into shareholders’ equity.At the balance sheet date the Company recognizes the deferred income tax assets or deferred income tax
liabilities in accordance with the balance sheet liability method for the temporary difference between the book
value of assets or liabilities and its tax base.The Company recognizes all taxable temporary differences as deferred income tax liabilities unless taxable
temporary differences arise in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of the assets or liabilities arising from a transaction
with the following characteristics: the transaction is not a business combination and neither the accounting profit
nor the taxable income is incurred at the time of the transaction;
(2) The time of write-back of taxable temporary differences related to the investments in subsidiaries associates
and joint ventures can be controlled and the temporary differences are likely to not be written back in the
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
foreseeable future.The Company recognizes the deferred income tax assets arising from deductible temporary differences subject to
the amount of taxable income obtained to offset the deductible temporary differences unless the deductible
temporary differences arise in the following transactions:
(1) The transaction is not a business combination and the transaction does not affect the accounting profit or the
amount of taxable income;
(2) The deductible temporary differences related to the investments in subsidiaries associates and joint ventures
are not met simultaneously: Temporary differences are likely to be written back in the foreseeable future and are
likely to be used to offset the taxable income of deductible temporary differences in the future.At the balance sheet date the Company measures the deferred income tax assets and deferred income tax
liabilities at the applicable tax rate of the period expected to recover the asset or pay off the liabilities according to
tax law and reflects the income tax effect of expected assets recovery or liabilities payoff method at the balance
sheet date.At the balance sheet date the Company reviews the book value of the deferred income tax assets. If it is likely
that sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in the
future period the book value of the deferred income tax assets will be written down. If it is probable that
sufficient taxable income will be available the amount of write-down will be written back.42. Lease
(1) Accounting Treatment of Operating Lease
As the lessee:
On the start date of the lease term the Company deems the right-of-use assets and lease obligations of all the
operating leases except for the simplified short-term lease and low-value leases. See Footnote V 29 and 35 for the
general accounting treatment of the Company as the lessee.Lease change
A lease change refers to a change in the scope consideration and term of lease outside the original contract
clauses including the addition or termination of the one or several rights to use lease assets and the extension or
reduction of the lease term specified in the contract.When the lease changes and the following conditions are met the Company will regard the lease charge as a
separate lease for accounting treatment:
(1) The lease change expands the scope of lease through the increase of one or several rights to use the lease
assets;
(2) The increased consideration and the separate price of the expanded part of the scope of lease are the same
upon adjustment according to the contract.If the lease change is not deemed as a separate lease for accounting treatment the Company will re-amortize the
consideration of the changed contract re-confirm the lease term and re-calculate the PV of the lease obligation
using the changed lease payment and the revised rate of discount on the date when the lease change takes effect.The Company will correspondingly reduce the book value of the right-of-use assets and include the profit or loss
of the lease terminated in part or whole in the current profit or loss if the lease change narrows the scope of lease
or shortens the lease term. The Company will correspondingly adjust the book value of the right-of-use assets if
other lease changes result in the re-calculation of the lease obligation.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Short-term and low-value asset leases
The Company chooses not to confirm the right-of-use assets and lease obligations of the short-term and low-value
asset leases and include the relevant lease payment in each period in the lease term in the current profit or loss or
the underlying asset cost on a straight-line basis. A short-term lease refers to the lease whose lease term does not
exceed 12 months and that does not include the call option on the start date of the lease term. A low-value asset
lease refers to the lease where the value will be low when the single lease asset is the new asset. For the leasehold
property that is underleased or expected to be underleased the original lease does not belong to low-value asset
lease.As the lessor:
The Company classifies lease into finance and operating leases on the start date of the lease term. A finance lease
refers to the lease where almost all the risks and remuneration related to the ownership of the leasehold property
is transferred no matter whether the ownership is finally transferred or not. An operating lease refers to all leases
other than finance leases.The lease receivable of the operating lease in each period in the lease term is deemed as a rental on a straight-line
basis. The Company capitalizes the initial direct cost related to the operating finance amortize and include it in
the current profit or loss on the basis same as the recognition of rentals in the lease term. Variable lease payments
that are not included in the lease receivable are included in the current profit or loss when they are actually
incurred. If an operating lease changes the Company will regard it as a new lease for accounting treatment from
the effective date of the change. The advance receipt or the lease receivable related to the lease prior to the change
is recognized as the payment receivable of the new lease.
(2) Accounting Treatments of Financial Lease
As the lessee:
See Footnote V 29 and 35 for the general accounting treatment of the Company as the lessee.As the lessor:
The Company confirms the finance lease receivable of the finance lease and finally confirms the finance leasehold
property on the start date of the lease term. It recognizes the net investment in the lease as the entry value of the
finance lease when initially calculating the finance lease receivable. The net investment in the lease is the sum of
the net value of the unguaranteed residual value and the lease receivable not received on the start date of the lease
term at the interest rate implicit in lease. The Company calculates and confirms the interest income at a fixed
periodic interest rate in each period in the lease term.43. Other Significant Accounting Policies and Estimates
Not applicable
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√ Applicable □ Not applicable
Contents of and reasons for the changes to accounting policies Approval procedure Remarks
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
On December 7 2018 the Ministry of Finance (MOF) issued
Revision and Issuance of the Accounting Standard for Business
Enterprises No. 21: Lease (C.K. [2018] No. 35) (hereinafter
referred to as "new lease standards"). According to the
requirements of the Ministry of Finance those enterprises that
are listed both at home and abroad and those enterprises that
Deliberated and approved by
are listed overseas and adopt the International Financial For details see 44. Changes in
the 16th meeting of the Nine
Reporting Standards or the Accounting Standards for Business important accounting policy
Board of Directors of the
Enterprises for preparation of financial statements should and accounting estimates (3).company
implement the standards from January 1 2019; the other
enterprises that adopt the Accounting Standards for Business
Enterprises should implement the standards from January 1
2021. Thereby the Company started to implement the revised
new lease standards from January 1 2020 and followed the
relevant transitional requirements.
(2) Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any New
Standards Governing Leases since 2021
Applicable
Whether items of balance sheets at the beginning of the year need adjustment
√ Yes □ No
Consolidated Balance Sheet
Unit: RMB
Item 31 December 2020 1 January 2021 Adjusted
Current assets:
Monetary assets 981249699.49 981249699.49
Settlement reserve
Interbank loans granted
Held-for-trading financial
407619201.36 407619201.36
assets
Derivative financial assets
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Notes receivable 140972143.00 140972143.00
Accounts receivable 1134233235.70 1134233235.70
Accounts receivable
financing
Prepayments 11994745.05 11994745.05
Premiums receivable
Reinsurance receivables
Receivable reinsurance
contract reserve
Other receivables 20194968.19 20194968.19
Including: Interest
receivable
Dividends
receivable
Financial assets purchased
under resale agreements
Inventories 735685116.91 735685116.91
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 175090368.85 175090368.85
Total current assets 3607039478.55 3607039478.55
Non-current assets:
Loans and advances to
customers
Investments in debt
obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity
181365016.32 181365016.32
investments
Investments in other equity
3305501030.06 3305501030.06
instruments
Other non-current financial
assets
Investment property
Fixed assets 685707548.55 685707548.55
Construction in progress 503941120.31 503941120.31
Productive living assets
Oil and gas assets
Right-of-use assets 6229690.85 6229690.85
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Intangible assets 170693873.30 170693873.30
Development costs
Goodwill
Long-term prepaid
13411226.23 13411226.23
expense
Deferred income tax assets 40253777.17 40253777.17
Other non-current assets 11423843.62 11423843.62
Total non-current assets 4912297435.56 4918527126.41 6229690.85
Total assets 8519336914.11 8525566604.96 6229690.85
Current liabilities:
Short-term borrowings
Borrowings from the
central bank
Interbank loans obtained
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 480971214.80 480971214.80
Accounts payable 1059674020.99 1059674020.99
Advances from customers 1285357.28 1285357.28
Contract liabilities 65777726.45 65777726.45
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 82485090.47 82485090.47
Taxes payable 18876657.51 18876657.51
Other payables 76668330.66 76668330.66
Including: Interest
payable
Dividends
payable
Handling charges and
commissions payable
Reinsurance payables
Liabilities directly
associated with assets held
for sale
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Current portion of
2812729.51 2812729.51
non-current liabilities
Other current liabilities 5503702.07 5503702.07
Total current liabilities 1791242100.23 1794054829.74 2812729.51
Non-current liabilities:
Insurance contract reserve
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
bonds
Lease liabilities 3416961.34 3416961.34
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
414670609.97 414670609.97
liabilities
Other non-current
1244064.84 1244064.84
liabilities
Total non-current liabilities 415914674.81 419331636.15 3416961.34
Total liabilities 2207156775.04 2213386465.89 6229690.85
Owners’ equity:
Share capital 1399346154.00 1399346154.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 15157514.90 15157514.90
Less: Treasury stock
Other comprehensive
2349388533.61 2349388533.61
income
Specific reserve
Surplus reserves 741567039.55 741567039.55
General reserve
Retained earnings 1758462062.48 1758462062.48
Total equity attributable to
owners of the Company as 6263921304.54 6263921304.54
the parent
Non-controlling interests 48258834.53 48258834.53
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Total owners’ equity 6312180139.07 6312180139.07
Total liabilities and owners’
8519336914.11 8525566604.96 6229690.85
equity
Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2020 1 January 2021 Adjusted
Current assets:
Monetary assets 896261882.77 896261882.77
Held-for-trading financial
407619201.36 407619201.36
assets
Derivative financial assets
Notes receivable 137477199.21 137477199.21
Accounts receivable 1030713074.22 1030713074.22
Accounts receivable
financing
Prepayments 9581302.45 9581302.45
Other receivables 462284585.09 462284585.09
Including: Interest
receivable
Dividends
receivable
Inventories 615106650.81 615106650.81
Contract assets
Assets held for sale
Current portion of
non-current assets
Other current assets 139275518.71 139275518.71
Total current assets 3698319414.62 3698319414.62
Non-current assets:
Investments in debt
obligations
Investments in other debt
obligations
Long-term receivables
Long-term equity
536949311.73 536949311.73
investments
Investments in other equity
3305501030.06 3305501030.06
instruments
Other non-current financial
assets
Investment property
Fixed assets 628174755.88 628174755.88
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Construction in progress 54652119.14 54652119.14
Productive living assets
Oil and gas assets
Right-of-use assets 6229690.85 6229690.85
Intangible assets 122391701.60 122391701.60
Development costs
Goodwill
Long-term prepaid
11651100.48 11651100.48
expense
Deferred income tax assets 31403727.94 31403727.94
Other non-current assets 7548885.47 7548885.47
Total non-current assets 4698272632.30 4704502323.15 6229690.85
Total assets 8396592046.92 8402821737.77 6229690.85
Current liabilities:
Short-term borrowings
Held-for-trading financial
liabilities
Derivative financial
liabilities
Notes payable 484230566.21 484230566.21
Accounts payable 1108208382.75 1108208382.75
Advances from customers
Contract liabilities 53572800.70 53572800.70
Employee benefits payable 62075512.08 62075512.08
Taxes payable 7819839.48 7819839.48
Other payables 171916835.73 171916835.73
Including: Interest
payable
Dividends
payable
Liabilities directly
associated with assets held
for sale
Current portion of
2812729.51 2812729.51
non-current liabilities
Other current liabilities 4483279.11 4483279.11
Total current liabilities 1892307216.06 1895119945.57 2812729.51
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred
shares
Perpetual
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
bonds
Lease liabilities 3416961.34 3416961.34
Long-term payables
Long-term employee
benefits payable
Provisions
Deferred income
Deferred income tax
414670609.97 414670609.97
liabilities
Other non-current
liabilities
Total non-current liabilities 414670609.97 418087571.31 3416961.34
Total liabilities 2306977826.03 2313207516.88 6229690.85
Owners’ equity:
Share capital 1399346154.00 1399346154.00
Other equity instruments
Including: Preferred
shares
Perpetual
bonds
Capital reserves 7426635.62 7426635.62
Less: Treasury stock
Other comprehensive
2349389658.23 2349389658.23
income
Specific reserve
Surplus reserves 741567039.55 741567039.55
Retained earnings 1591884733.49 1591884733.49
Total owners’ equity 6089614220.89 6089614220.89
Total liabilities and owners’
8396592046.92 8402821737.77 6229690.85
equity
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any New
Standards Governing Leases since 2021
□ Applicable √ Not applicable
45. Other
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
VAT Sales volume from goods selling or taxable 3% 6% 9% 13%
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
service
Urban maintenance and construction tax Turnover tax payable 7% 5%
Enterprise income tax Taxable income 15% 25%
Educational surtax Turnover tax payable 3%
Local educational surtax Turnover tax payable 2%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
Name Income tax rate
The Company Zhida Company 15%
FSL Lighting GmbH 15%
Other subsidiaries 25%
2. Tax PreferenceThe 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.Zhida Company passed the examination for High-tech Enterprises in December 2019 and thus Zhida Company
paid the corporate income tax based on a tax rate of 15% within three years since 1 January 2019 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. Other
Paid according to the relevant regulation 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 9119.25 14800.25
Bank deposits 1249024091.56 883112636.02
Other monetary assets(Note 1) 255247161.71 96541013.22
Unexpired interest(Note 2) 1581250.00
Total 1504280372.52 981249699.49
Of which: Total amount deposited
1251515.66 1127886.79
overseas
Other notes
Note 1: Other monetary assets were security deposits for notes and performance bonds as well as investments
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
placed with security firm and the balance with e-commerce platforms of which the security deposits for notes and
performance bonds were restricted assets (see “81. Assets with Restricted Ownership or Right of Use” in Note
“VII Notes to Consolidated Financial Statements”).Note 2: Unexpired interest did not belong to cash and cash equivalents.2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value through profit
293530525.04 407619201.36
or loss
Including:
Wealth management products 61310114.09 401286301.36
Structural deposits 230280410.95
Others 1940000.00 6332900.00
Including:
Total 293530525.04 407619201.36
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 218524886.92 140972143.00
Total 218524886.92 140972143.00
Please refer to the relevant information of disclosure of bad debt provision of other receivables if adopting the
general mode of expected credit loss to withdraw bad debt provision of notes receivable.□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawn Reversed or Collected during the Reporting Period
Naught
Of which the bad debt provision reversed or collected with significant amount during the Reporting Period:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged at the Period-end
Unit: RMB
Item Amount pledged at the period-end
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Bank acceptance bill 80709869.38
Total 80709869.38
(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 43992188.82
Total 43992188.82
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contract
or Agreement
Naught
(6) The Actual Write-off Notes Receivable
Naught
5. Accounts Receivable
(1) Accounts Receivable Disclosed by Category
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra Withdraw
Category Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Accounts receivable
152576 956933 5688330 1525766 9569331 5688330.8
withdrawn bad debt 1.32% 62.72% 1.27% 62.72%
62.85 1.99 .86 2.85 .99 6
provision separately
Of which:
Accounts receivable
114210 555388 1086564 1185342 5679728 11285449
withdrawn bad debt 98.68% 4.86% 98.73% 4.79%
3043.09 58.29 184.80 187.03 2.19 04.84
provision by group
Of which:
115736 651081 1092252 1200599 6636661 11342332
Total 100.00% 5.63% 100.00% 5.53%
0705.94 90.28 515.66 849.88 4.18 35.70
Individual withdrawal of bad debt provision:
Unit: RMB
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Withdrawal reason
Involved in the lawsuit
the Company won the
Customer A 14220827.14 8532496.28 60.00% lawsuit in the first
instance and the other
side has appealed.Involved in the lawsuit
the Company won the
Customer B 1036835.71 1036835.71 100.00% case but the counterpart
had no property for
repayment
Total 15257662.85 9569331.99 -- --
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk group 1142103043.09 55538858.29 4.86%
Total 1142103043.09 55538858.29 --
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) 1069952328.32
1 to 2 years 27900320.46
2 to 3 years 29355007.62
Over 3 years 30153049.54
3 to 4 years 10861737.24
4 to 5 years 14104509.72
Over 5 years 5186802.58
Total 1157360705.94
(2) Bad Debt Provision Withdrawn Reversed or Collected during the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
amount Withdrawal Write-off Other
recovery
Accounts
66366614.18 -1258347.12 76.78 65108190.28
receivable
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Total 66366614.18 -1258347.12 76.78 65108190.28
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
Other retails accounts 76.78
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
Ending balance of accounts Proportion to total ending balance Ending balance of bad debt
Name of units
receivable of accounts receivable (%) provision
No. 1 130321324.71 11.26% 3909639.74
No. 2 55072539.33 4.76% 1652176.18
No. 3 28736896.36 2.48% 862106.89
No. 4 18109974.59 1.56% 543299.24
No. 5 17654601.13 1.53% 529638.03
Total 249895336.12 21.59%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Naught
6. Accounts Receivable Financing
Naught
7. Prepayment
(1) Listed by Aging
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within 1 year 15959112.57 84.64% 9193885.82 76.65%
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
1 to 2 years 405422.40 2.15% 355870.31 2.97%
2 to 3 years 312375.58 1.66% 1081261.45 9.01%
Over 3 years 2178448.46 11.55% 1363727.47 11.37%
Total 18855359.01 -- 11994745.05 --
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Unit: RMB
Name of units Relationship with the Ending balance Proportion to total Aging
Company prepayments (%)
No. 1 Non-related supplier 4127623.16 21.89% Within 1 year
No. 2 Non-related supplier 2471998.45 13.11% Within 1 year
No. 3 Non-related supplier 1327340.00 7.04% Within 1 year
No. 4 Non-related supplier 1248844.08 6.62% Within 1 year
No. 5 Non-related supplier 1005349.38 5.33% Within 1 year
Total 10181155.07 53.99%
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 22845333.42 20194968.19
Total 22845333.42 20194968.19
(1) Interest Receivable
Naught
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
VAT export tax refunds 12627.03 195141.85
Bidding and performance bond 6628413.06 4166580.10
Staff borrow and petty cash 5742450.16 7866311.07
Rent water & electricity fees 3951691.77 3389778.15
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Other 9588320.13 7020439.45
Total 25923502.15 22638250.62
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 Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
499462.41 1943820.02 2443282.432021
Balance of 1 January
2021 in the Current —— —— —— ——
Period
Withdrawal of the
67697.84 567188.46 634886.30
Current Period
Balance of 30 June 2021 567160.25 2511008.48 3078168.73
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) 18905342.17
1 to 2 years 2224998.52
2 to 3 years 1816298.52
Over 3 years 2976862.94
3 to 4 years 2418437.84
4 to 5 years 120124.80
Over 5 years 438300.30
Total 25923502.15
3) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Other receivables 2443282.43 634886.30 3078168.73
Total 2443282.43 634886.30 3078168.73
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
Proportion to total
ending balance of Ending balance of
Name of the entity Nature Ending balance Aging
other receivables bad debt provision
(%)
No. 1 Social insurance 1894461.32 Within 3 years 7.31% 69155.86
No. 2 Other 1844511.90 Within 1 year 7.12% 62884.08
No. 3 Other 1296947.31 Within 4 years 5.00% 49368.19
No. 4 Rent water &
1252616.64 Within 2 years 4.83% 41608.21
electricity fees
No. 5 Rent water &
1174200.14 Within 3 years 4.53% 598956.46
electricity fees
Total -- 7462737.31 -- 28.79% 821972.80
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
Item Falling price Falling price
Carrying amount Carrying value Carrying amount Carrying value
reserves of reserves of
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
inventory or inventory or
depreciation depreciation
reserves of reserves of
contract contract
performance cost performance cost
Raw materials 217609158.31 2749188.94 214859969.37 177234228.73 2901800.45 174332428.28
Goods in process 41829585.86 41829585.86 40969288.80 40969288.80
Inventory goods 476192689.01 22329841.08 453862847.93 387194563.02 13992901.12 373201661.90
Semi-finished
139363771.13 725535.91 138638235.22 145960270.11 1013387.91 144946882.20
goods
Low priced and
easily worn 2669257.35 2669257.35 2234855.73 2234855.73
articles
Total 877664461.66 25804565.93 851859895.73 753593206.39 17908089.48 735685116.91
(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 2901800.45 276383.19 428994.70 2749188.94
Inventory goods 13992901.12 10677164.71 2340224.75 22329841.08
Semi-finished
1013387.91 41686.73 329538.73 725535.91
goods
Total 17908089.48 10995234.63 3098758.18 25804565.93
Item Basis for withdrawal of falling price reserves Reasons for reversal or write-off of Note
of inventory falling price reserves of inventory
The lower one between the inventory cost Sales or scrap of raw materials
Raw materials
and net realizable value
The lower one between the inventory cost Sales or scrap of products
Inventory goods
and net realizable value
Reasons for the provision for inventory depreciation: Provisions are set for the stagnancy of a few raw materials;
some inventory products become temporarily idle due to classification.
(3) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(4) Amortization Amount of Contract Performance Cost during the Reporting Period
Naught
10. Contract Assets
Naught
11. Held-for-Sale Assets
Naught
12. Current Portion of Non-current Assets
Naught
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Deductible input tax of VAT 68064174.23 84673053.78
Large bank deposit certificate (note) 90417315.07
Total 68064174.23 175090368.85
Other notes;
Bank deposit receipts of large amounts with a maturity of over three months which were transferable but not
redeemable until maturity.14. Creditor’s Rights Investment
Naught
15. Other Creditor’s Rights Investment
Naught
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
Beginnin Increase/decrease Ending Ending
Investees g balance Additiona Reduced Gains and Adjustme Changes Cash Withdraw balance balance
Other
(carrying l investmen losses nt of of other bonus or al of (carrying of
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
value) investmen t recognize other equity profits impairme value) depreciati
t d under comprehe announce nt on
the equity nsive d to issue provision reserves
method income
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
ix 1813650 2080390 1793220
37460.99
(Nanho) 16.32 .50 86.81
Electronic
s Ltd.1813650 2080390 1793220
Subtotal 37460.99
16.32 .50 86.81
1813650 2080390 1793220
Total 37460.99
16.32 .50 86.81
18. Other Equity Instrument Investment
Unit: RMB
Item Ending balance Beginning balance
Non-listed equity investment 5054176.40 5054176.40
Listed equity investment 2543403615.60 3300446853.66
Total 2548457792.00 3305501030.06
Disclosure of non-trading equity instrument investment by items
Unit: RMB
Reason for
Amount of other assigning to Reason for other
comprehensive measure in fair comprehensive
Dividend income Accumulative Accumulative
Item income value and the income
recognized gains losses
transferred to changes included transferred to
retained earnings in the current retained earnings
gains and losses
Not satisfied with
Sales of some
Stock of Gotion the condition of
1264684034.12 355869553.42 stocks of Gotion
High-tech trading equity
High-tech
instrument
Not satisfied with
Stock of Xiamen the condition of
747516255.48
Bank trading equity
instrument
Not satisfied with
Stock of
46456982.30 the condition of
Everbright Bank
trading equity
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
instrument
Not satisfied with
Stock of
the condition of
Nationstar 848379.32
trading equity
Optoelectronics
instrument
Total 2059505651.22 355869553.42
19. Other Non-current Financial Assets
Naught
20. Investment Property
Naught
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 677082730.82 685707548.55
Total 677082730.82 685707548.55
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I. Original carrying
value
1. Beginning
949016860.88 758424898.71 21812402.45 31973759.69 1761227921.73
balance
2. Increased
441221.19 22452358.79 983133.63 1515359.76 25392073.37
amount of the period
(1) Purchase 52841.33 20311827.77 983133.63 1495271.27 22843074.00
(2) Transfer
from construction in 388379.86 2140531.02 20088.49 2548999.37
progress
3. Decreased
513771.55 4914032.94 1667967.76 75883.28 7171655.53
amount of the period
(1) Disposal or
513771.55 4914032.94 1667967.76 75883.28 7171655.53
scrap
4. Ending balance 948944310.52 775963224.56 21127568.32 33413236.17 1779448339.57
II. Accumulative
depreciation
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
1. Beginning
485466988.27 544961514.42 16641194.44 26409762.43 1073479459.56
balance
2. Increased
13774013.65 18210326.38 610627.83 899227.11 33494194.97
amount of the period
(1) Withdrawal 13774013.65 18210326.38 610627.83 899227.11 33494194.97
3. Decreased
488082.97 4305246.48 1584569.37 73293.07 6451191.89
amount of the period
(1) Disposal or
488082.97 4305246.48 1584569.37 73293.07 6451191.89
scrap
4. Ending balance 498752918.95 558866594.32 15667252.90 27235696.47 1100522462.64
III. Depreciation
reserves
1. Beginning
2040485.59 428.03 2040913.62
balance
3. Decreased
197767.51 197767.51
amount of the period
(1) Disposal or
197767.51 197767.51
scrap
4. Ending balance 1842718.08 428.03 1843146.11
IV. Carrying value
1. Ending carrying
450191391.57 215253912.16 5460315.42 6177111.67 677082730.82
value
2. Beginning
463549872.61 211422898.70 5171208.01 5563569.23 685707548.55
carrying value
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
Original carrying Accumulated Depreciation
Item Carrying value Note
value depreciation reserves
T5 T8
energy-saving lamp 7060868.56 5449603.12 1565685.43 45580.01
production line
(3) Fixed Assets Leased out by Operation Lease
Naught
(4) Fixed Assets Failed to Accomplish Certification of Property
Other notes
Fuwan standard workshop J3 and K1 Gaoming Family Housing Building Eight and Fuwan Employee Dormitory
Seven have been put into use and carried over fixed assets. As of 30 June 2021 relevant certificates of property
were in procedure. The management layer is of the opinion that there is no substantial legal impediment in the
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
procedure of certificates as well as no significant negative influence to the normal operation of the Company.
(5) Disposal of Fixed Assets
Naught
22. Construction in Progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 537612907.97 503941120.31
Total 537612907.97 503941120.31
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserves reserves
Construction in
537612907.97 537612907.97 503941120.31 503941120.31
progress
Total 537612907.97 537612907.97 503941120.31 503941120.31
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Of
Proporti
which:
on of Accumul Capitaliz
amount
accumul ative ation rate
Transferr of
Beginnin Other ative amount of
Increase ed in Ending Job capitaliz Capital
Item Budget g decrease investme of interests
d amount fixed balance schedule ed resources
balance d amount nt in interest for the
assets interests
construct capitaliz Reportin
for the
ions to ation g Period
Reportin
budget
g Period
Foshan
726738 448595 142098 462805
Kelian 69.41% 95.0% Other
900.00 364.96 54.32 219.28
Building
Gaoming
R&D
450000 316108 173656. 317844 85.0%
worksho 70.63% Other
00.00 09.51 15 65.66
p 11 12
13 14
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
and 18
Gaoming
115530 523680 127451. 536425
Office 4.64% 0.0% Other
000.00 1.98 97 3.95
Building
48 tons
electric
melting
furnace 116500 472111 464352 936464
80.38% 95.0% Other
(18025) 00.00 9.09 7.44 6.53
Gaoming
tank
furnace
APS
299000 877679. 163943 251711
System 84.18% 90.0% Other
0.00 42 5.30 4.72
Project
Overhaul
of the
No.8
furnace 108900 625787 625787
57.46% 50.0% Other
in the 00.00 1.19 1.19
Gaoming
tank
furnace
Relocati
on and
transfor
mation
project
of the 654260 155565 155565
23.78% 30.0% Other
classicto 0.00 4.36 4.36
ne
worksho
p
(original
T8 I)
Relocati
on of the
worksho 417000 225756 225756
54.14% 50.0% Other
p of 0.00 9.55 9.55
Gaoming
LED T8
923511 491041 308650 521906
Total -- -- --
500.00 774.96 20.28 795.24
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(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 Model
□ Applicable √ Not applicable
(1) Productive Living Assets Adopting Fair Value Measurement Model
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-of-use Assets
Unit: RMB
Item Right-of-use assets Total
I. Original carrying value
1. Beginning balance 6229690.85 6229690.85
(1) Disposal 399359.43 399359.43
4. Ending balance 5830331.42 5830331.42
II.Accumulated depreciation
1. Beginning balance
2. Increased amount of the period 1290954.05 1290954.05
(1) Withdrawal 1290954.05 1290954.05
3. Decreased amount of the period 42037.84 42037.84
(1) Disposal 42037.84 42037.84
4. Ending balance 1248916.21 1248916.21
IV. Carrying value
1. Ending carrying value 4581415.21 4581415.21
2. Beginning carrying value 6229690.85 6229690.85
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Non-patent Using right of
Item Land use right Patent Others Total
technology software
I. Original
carrying value
1. Beginning
232199092.68 7622600.00 4597419.45 244419112.13
balance
2. Increased
amount of the 1055363.15 1055363.15
period
(1) Purchase 1055363.15 1055363.15
(2) Internal
R&D
(3) Business
combination
increase
3. Decreased
amount of the
period
(1) Disposal
4. Ending
232199092.68 7622600.00 5652782.60 245474475.28
balance
II. Accumulated
amortization
1. Beginning
71255724.77 254086.67 2215427.39 73725238.83
balance
2. Increased
amount of the 2142084.55 381130.00 177652.49 2700867.04
period
(1)
2142084.55 381130.00 177652.49 2700867.04
Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending
73397809.32 635216.67 2393079.88 76426105.87
balance
III. Depreciation
reserves
1. Beginning
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
balance
2. Increased
amount of the
period
(1)
Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending
balance
IV. Carrying
value
1. Ending
158801283.36 6987383.33 3259702.72 169048369.41
carrying value
2. Beginning
160943367.91 7368513.33 2381992.06 170693873.30
carrying value
The proportion of intangible assets contributed by internal R&D in the balance of intangible assets at the end of
the period is 0%.
(2) Land Use Right with Certificate of Title Uncompleted
Naught
27. Development Costs
Naught
28. Goodwill
Naught
29. Long-term Prepaid Expense
Unit: RMB
Amortization Other decreased
Item Beginning balance Increased amount Ending balance
amount of the period amount
Maintenance and
10828775.09 5519048.30 3898861.38 12448962.01
decoration expenses
Other 2582451.14 9513085.33 1698813.88 10396722.59
Total 13411226.23 15032133.63 5597675.26 22845684.60
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for impairment
95834071.05 15415929.41 88758899.69 14118876.93
of assets
Unrealized profit of
6649074.03 997361.10 5784713.24 867706.99
internal transactions
Deductible losses 23115464.49 5778866.13 20735316.21 5183829.06
Depreciation of fixed
68547824.01 10426277.80 71106985.78 10810152.06
assets
Payroll payable 36021596.49 5403239.47 61821414.20 9273212.13
Total 230168030.07 38021673.91 248207329.12 40253777.17
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax
difference liabilities difference liabilities
Changes in fair value of
other equity instrument 2053655651.22 308048347.68 2758137833.20 413720674.97
investment
Changes in fair value of
1940000.00 291000.00 6332900.00 949935.00
trading financial assets
Total 2055595651.22 308339347.68 2764470733.20 414670609.97
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off amount of Amount of deferred Mutual set-off amount of Amount of deferred
deferred income tax income tax assets or deferred income tax income tax assets or
Item
assets and liabilities at liabilities after off-set at assets and liabilities at liabilities after off-set at
the period-end the period-end the period-begin the period-begin
Deferred income tax
38021673.91 40253777.17
assets
Deferred income tax
308339347.68 414670609.97
liabilities
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(4) List of Unrecognized Deferred Income Tax Assets
Naught
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years
None
31. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Depreciation Carrying Carrying Depreciation Carrying
amount reserve value amount reserve value
Assets of subsidiaries to be cleared and
671011.56 671011.56 1022085.15 1022085.15
cancelled
10401758.4 10401758.4
Prepayments for business facilities 9995769.14 9995769.14
7 7
10666780.7 10666780.7 11423843.6 11423843.6
Total
0 0 2 2
32. Short-term Borrowings
Naught
33. Trading Financial Liabilities
Naught
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 730544569.15 480971214.80
Total 730544569.15 480971214.80
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
The total bills payable that are due but unpaid amounted to RMB 0 at the end of the current period.36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Accounts payable 936126208.78 1059674020.99
Total 936126208.78 1059674020.99
(2) Significant Accounts Payable Aging over One Year
Naught
37. Advances from Customer
（1）List of Advances from Customer
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 1911948.59 1285357.28
Total 1911948.59 1285357.28
（2）Significant Advances from Customer Aging over one year
Naught
38. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 71380411.53 65777726.45
Total 71380411.53 65777726.45
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 82485090.47 340675128.89 377754237.24 45405982.12
II. Post-employment 24098585.11 24098585.11
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
benefit-defined
contribution plans
Total 82485090.47 364773714.00 401852822.35 45405982.12
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary bonus
82131394.79 307609604.48 344702315.49 45038683.78
allowance subsidy
2. Employee welfare 13603278.47 13603278.47
3. Social insurance 10938928.71 10938928.71
Of which: Medical
7914443.78 7914443.78
insurance premiums
Work-re
474244.72 474244.72
lated injury insurance
Materni
2550240.21 2550240.21
ty insurance
4. Housing fund 6299436.50 6299436.50
5.Labor union budget
and employee education 353695.68 2223880.73 2210278.07 367298.34
budget
Total 82485090.47 340675128.89 377754237.24 45405982.12
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension benefits 23641263.28 23641263.28
2. Unemployment
457321.83 457321.83
insurance
Total 24098585.11 24098585.11
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 19516172.43 7470456.34
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Corporate income tax 75987273.88 6753904.80
Personal income tax 532866.05 1009832.30
Urban maintenance and construction tax 1359019.72 1174681.01
Education surcharge 976621.21 845486.44
Property tax 3410116.13 315798.24
Land use tax 2305422.18 187752.00
Other 349376.74 1118746.38
Total 104436868.34 18876657.51
41. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 87027744.37 76668330.66
Total 87027744.37 76668330.66
(1) Interest Payable
Naught
(2) Dividends Payable
Naught
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
Item Ending balance Beginning balance
Compensation for lawsuit 1082784.95 1082784.95
Performance bond 64169442.69 42365111.53
Relevant expense of sales 1237824.09 3143336.62
Other 20537692.64 30077097.56
Total 87027744.37 76668330.66
2) Significant Other Payables Aging over One Year
Unit: RMB
Item Ending balance Reason for not repayment or carry-over
A Company 5752000.00 The contract is not settled yet
Total 5752000.00 --
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
42. Liabilities Held for sale
Naught
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease obligation matured within 1 Year 3382701.30 2812729.51
Total 3382701.30 2812729.51
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Pending changerover output VAT 5806372.07 5503702.07
Total 5806372.07 5503702.07
45. Long-term Borrowings
Naught
46. Bonds Payable
Naught
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 2397312.18 3416961.34
Total 2397312.18 3416961.34
48. Long-term Payables
Naught
49. Long-term Payroll Payable
Naught
50. Provisions
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
51. Deferred Income
Naught
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Liabilities of subsidiaries to be cleared and
1244064.84
cancelled
Total 1244064.84
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning
New shares Bonus issue Ending balance
balance Bonus shares Other Subtotal
issued from profit
The sum of 1399346154. 1399346154.shares 00 00
54. Other Equity Instruments
Naught
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
7911543.36 7911543.36
(premium on stock)
Other capital reserves 7245971.54 7245971.54
Total 15157514.90 15157514.90
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Treasury shares 0.00 220708001.24 220708001.24
Total 220708001.24 220708001.24
57. Other Comprehensive Income
Unit: RMB
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Reporting Period
Less:
Less: Recorded
Recorded in in other
other comprehe Attributabl
Income comprehensi nsive e to Attributabl
before ve income in income in Less: owners of e to
Beginning Ending
Item taxation in prior period prior Income the non-contro
balance balance
the and period and tax Company lling
Current transferred to transferred expense as the interests
Period profit or loss to retained parent after tax
in the earnings in after tax
Current the
Period Current
Period
I. Other comprehensive income
23493896 -2858121 3558695 -4287181 -5988098 175057
that may not subsequently be
58.23 19.13 53.42 7.86 54.69 9803.54
reclassified to profit or loss
Changes in fair value of
23493896 -2858121 3558695 -4287181 -5988098 175057
other equity instrument
58.23 19.13 53.42 7.86 54.69 9803.54
investment
II. Other comprehensive income
-58541.that may subsequently be -1124.62 -57416.42 -57416.4204
reclassified to profit or loss
Differences arising from
translation of foreign -58541.-1124.62 -57416.42 -57416.42
currency-denominated financial 04
statements
Total of other comprehensive 23493885 -2858695 3558695 -4287181 -5988672 175052
income 33.61 35.55 53.42 7.86 71.11 1262.50
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
699673077.00 699673077.00
reserves
Discretionary surplus
41893962.55 187889.31 41706073.24
reserves
Total 741567039.55 187889.31 741379150.24
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained earnings before
1758462062.48 1700426915.63
adjustments
Beginning balance of retained earnings after
1758462062.48 1700426915.63
adjustments
Add: Net profit attributable to owners of the
110555542.93 148896274.55
Company as the parent
Less:Dividend of ordinary shares payable 258879038.49
Add:Carry-over of other comprehensive income to
355869553.42
retained earnings
Ending retained earnings 2224887158.83 1590444151.69
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) 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 1924255273.18 1566977085.53 1504924771.42 1181563562.31
Other operations 31086843.02 20387769.28 17959355.62 13462662.03
Total 1955342116.20 1587364854.81 1522884127.04 1195026224.34
Relevant information of revenue:
Unit: RMB
Category of contracts Segment 1 Segment 2 Total
Of which:
LED lighting products 1532904155.86 1532904155.86
Traditional lighting
333455215.22 333455215.22
products
Electrical products 57895902.10 57895902.10
Other 31086843.02 31086843.02
Of which:
Domestic sales 1296316249.38 1296316249.38
Export sales 659025866.82 659025866.82
Total 1955342116.20 1955342116.20
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Information related to 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.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.62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Urban maintenance and construction tax 3189986.67 4998635.00
Education surcharge 1367137.15 2146457.14
Property tax 4131716.73 3633352.66
Land use tax 2502386.04 2684232.16
Vehicle and vessel use tax 5280.88 8527.08
Stamp duty 1370645.18 913386.58
Deed tax 1201.51
Environmental protection tax 81565.26 36111.03
VAT of land 403671.24
Levee protection fees -212.76
Local education surcharge 911424.77 1430971.41
Total 13964802.67 15851673.06
63. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 33029549.69 28172676.97
Business propagandize fees and
11806465.11 7657275.11
advertizing fees
Sales promotion fees 4687482.20 4462291.48
Business travel charges 3668874.83 2464021.64
Dealer meeting expense 201586.16 513244.52
Commercial insurance premium 2132533.15 1515532.45
Other 12475109.18 17489289.77
Total 68001600.32 62274331.94
Other note:
The Company starts to implement the new standards governing revenue since 1 January 2020 and it will be
transferred to cost of sales with the freight in relation to contract performance for accounting.64. Administrative Expense
Unit: RMB
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Item Reporting Period Same period of last year
Employee benefits 48895208.55 37267089.28
Depreciation charge 9412579.19 8140135.08
Office expenses 7808537.06 6040292.05
Rent of land and management charge 1842382.96 2914379.04
Amortization of intangible assets 2700867.04 2214359.48
Engineering decoration cost 3786630.64 1484811.01
Other 10936810.56 7903690.82
Total 85383016.00 65964756.76
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 46391484.86 35672528.60
Expense on equipment debugging 5051118.26 2837455.51
Certification and testing fee 4174101.50 4847341.24
Material consumption 6478539.00 3242624.38
Charges related to patents 944967.99 2724900.93
Depreciation and long-term prepaid
7552115.62 5814964.29
expense
Other 6180407.15 3958266.78
Total 76772734.38 59098081.73
Other information:
1. R&D expense stood at RMB17674652.65 in the current period up 29.91% year-on-year primarily driven by a
considerable increase of input in R&D expansion of R&D teams and R&D projects etc.2. 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
Less: Interest income 8247486.69 17500666.35
Foreign exchange gains or losses 3271628.31 -2544700.07
Other 1041118.70 702721.58
Total -3934739.68 -19342644.84
67. Other Income
Unit: RMB
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Sources Reporting Period Same period of last year
Subsidy for stabilizing posts 39075.10
Supporting fund for import and export 10000.00 126000.00
Subsidies for position training of
2968000.00
employees
Chancheng District's government quality
1000000.00
award in 2019
Chancheng District's funds for supporting
example setting and quality improvement
1422900.00
of high-tech enterprises (towns and streets)
in 2018
Foshan's funds for supporting
municipal-level development of industrial 1000000.00
design
Special fund for promoting high-quality
1762092.60
economic development
Other 2060940.00 440028.00
Total 7801032.60 3028003.10
68. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
37460.99 4725081.89
accounted by equity method
Dividend income from holding of other equity
14940422.96
instrument investment
Income received from financial products and
4756319.58 15454650.86
structural deposits
Other 416050.00 1023100.00
Total 5209830.57 36143255.71
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 1940000.00 -1532350.00
Total 1940000.00 -1532350.00
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss of other receivables -634886.30 -459378.86
Bad debt loss of accounts receivable 1258347.12 -2919831.52
Total 623460.82 -3379210.38
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
II. Loss on inventory valuation and
-10995234.63 -3200793.69
contract performance cost
Total -10995234.63 -3200793.69
73. Assets Disposal Income
Unit: RMB
Source of gains on disposal of assets Amount of the current period Amount of the previous period
Gains on disposal of fixed assets 1781700.24 7489.02
74. Non-operating Income
Unit: RMB
Amount recorded in the current
Item Reporting Period Same period of last year
non-recurring profit or loss
Government grants 57720.00
Total income from disposal of
1674379.33 43653.10 1674379.33
non-current assets
Of which: Income from
1674379.33 43653.10 1674379.33
disposal of fixed assets
Other 361374.31 483761.90 361374.31
Penalty 15784.31 76300.00 15784.31
Compensation for breach of
8100.10 1452.00 8100.10
contract
Total 2059638.05 662887.00 2059638.05
75. Non-operating Expense
Unit: RMB
Item Reporting Period Same period of last year Amount recorded in the current
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
non-recurring profit or loss
Donations 1340.00 1340.00
Total losses from disposal of
418256.44 704238.91 418256.44
non-current assets
Of which: Losses from disposal
418256.44 704238.91 418256.44
of fixed assets
Losses on inventories 1.88 274833.59 1.88
Penalty 45447.00
Delaying payment 191967.71 47.09 191967.71
Other 2301.02 1.55 2301.02
Total 613867.05 1024568.14 613867.05
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 21216733.02 18140342.11
Deferred income tax expense 1573168.26 4910380.59
Total 22789901.28 23050722.70
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 135596408.30
Current income tax expense accounted at statutory/applicable tax
20339461.25
rate
Influence of applying different tax rates by subsidiaries 1490840.60
Influence of income tax before adjustment 965218.58
Influence of non-taxable income -5619.15
Income tax expense 22789901.28
77. Other Comprehensive Income
Refer to Note 57 for details.78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Deposit interest 10231978.87 20813594.94
Income from insurance compensation 24207.40 11293.51
Margin income 21824603.85 5196890.04
Property and rental income 6351181.05 3790160.94
Subsidies 7053978.60 3001473.10
Income from waste 12948191.88 6810795.49
Other 3460925.81 43847079.33
Total 61895067.46 83471287.35
(2) Cash Used in Other Operating Activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 27576619.91 22386929.76
Selling expense paid in cash 79583580.18 61270950.23
Finance costs paid in cash 742850.03 510120.99
Returned cash deposit 13794280.53 4214553.00
Other 14045552.60 3828357.24
Total 135742883.25 92210911.22
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Naught
(5) Cash Generated from Other Financing Activities
Naught
(6) Cash Used in Other Financing Activities
Unit: RMB
Item Reporting Period Same period of last year
Repurchase of treasury stocks 220895890.55
Total 220895890.55
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Supplemental information Reporting Period Same period of last year
1. Reconciliation of net profit to net cash
-- --
flows generated from operating activities:
Net profit 112806507.02 151665693.97
Add: Provision for impairment of assets 10371773.81 6580004.07
Depreciation of fixed assets oil-gas
33494194.97 33954684.14
assets and productive living assets
Depreciation of right-of-use assets 1290954.05
Amortization of intangible assets 2700867.04 2214359.48
Amortization of long-term prepaid
5597675.26 2609636.40
expenses
Loss from disposal of fixed assets
intangible assets and other long-term assets -1781700.24 -7489.02
(gains: negative)
Losses from scrapping of fixed assets
-1256122.89 660585.81
(gains: negative)
Losses from changes in fair value
-1940000.00 1532350.00
(gains: negative)
Finance costs (gains: negative)
Investment loss (gains: negative) -5209830.57 -36143255.71
Decrease in deferred income tax assets
2232103.26 5140233.09
(increase: negative)
Increase in deferred income tax
-658935.00 -229852.50
liabilities (“-” for decrease)
Decrease in inventory (“-” for increase) -124071255.27 113422713.70
Decrease in operating receivables (“-”
-115537231.59 -50285519.68
for increase)
Increase in operating payables (“-” for
127740640.67 -24779263.68
decrease)
Others
Net cash generated from/used in
45779640.52 206334880.07
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 1345331488.69 1234805265.88
Less: Beginning balance of cash 875728218.57 1051079042.41
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Add: Ending balance of cash
equivalents
Less: Beginning balance of cash
equivalents
Net increase in cash and cash equivalents 469603270.12 183726223.47
(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 1345331488.69 875728218.57
Including: Cash on hand 9119.25 14800.25
Bank deposit on demand 1235496662.22 870224197.60
Other monetary assets on demand 109825707.22 5489220.72
III. Ending balance of cash and cash
1345331488.69 875728218.57
equivalents
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amount adjusted:
Not applicable
81. Assets with Restricted Ownership or Right of Use
Unit: RMB
Item Ending carrying value Reason for restriction
Security deposit of notes and security
Monetary assets 159619895.39 deposit of future foreign exchange
settlement
Notes receivable 80709869.38 Pledged for notes pool
Total 240329764.77 --
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
82. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted to
Item Exchange rate
balance RMB
Monetary assets -- -- 66929901.85
Of which: USD 10207186.31 6.4601 65939444.28
EUR 128861.80 7.6862 990457.57
HKD
Accounts receivable -- -- 299389831.12
Of which: USD 46065765.96 6.4601 297589454.68
EUR 234234.92 7.6862 1800376.44
HKD
Long-term borrowings -- --
Of which: USD
EUR
HKD
Contract liabilities 21154681.97
Of which: USD 3274667.88 6.4601 21154681.97
Prepayments 2874441.07
Of which: USD 444953.03 6.4601 2874441.07
Accounts payable 2405393.36
Of which: USD 372346.15 6.4601 2405393.36
(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
Naught
84. Government Grants
(1) Basic Information on Government Grants
Unit: RMB
Type Amount Presented in Charged to current profit or loss
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Subsidy for stabilizing posts 2968000.00 Other income 2968000.00
Special fund for promoting
high-quality economic 1762092.60 Other income 1762092.60
development
Foshan's funds for supporting
municipal-level development of 1000000.00 Other income 1000000.00
industrial design
Supporting fund for import and
10000.00 Other income 10000.00
export
Others 2060940.00 Other income 2060940.00
Total 7801032.60 7801032.60
(2) Return of Government Grants
Naught
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) Combination Cost and Goodwill
Naught
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Naught
(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and
gaining the control during the Reporting Period
□ Yes √ No
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Naught
(6) Other Notes
Naught
2. Business Combination under the Same Control
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
Hainan Company was established in May during this period and was included in the consolidation scope since its
establishment.6. Other
Naught
IX. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Main operating Nature of Holding percentage (%)
Name Registration place Way of gaining
place business Directly Indirectly
Foshan Lighting
Lamps & Production and Newly
Foshan Foshan 100.00%
Components Co. sales established
Ltd.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Guangdong
Fozhao New
Production and Newly
Light Sources Foshan Foshan 100.00%
sales established
Technology Co.Ltd.FSL Chanchang
Production and Newly
Optoelectronics Foshan Foshan 100.00%
sales established
Co. Ltd.Foshan Taimei
Production and Newly
Times Lamps and Foshan Foshan 70.00%
sales established
Lanterns Co. Ltd.Foshan Electrical
& Lighting Production and Newly
Xinxiang Xinxiang 100.00%
(Xinxiang) Co. sales established
Ltd.Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% Acquired
sales
Manufacturing
Co. Ltd.FSL Zhida
Electric Production and Newly
Foshan Foshan 51.00%
Technology Co. sales established
Ltd.FSL LIGHTING Production and Newly
Germany Germany 100.00%
GmbH sales established
Foshan Hortilite
Production and Newly
Optoelectronics Foshan Foshan 51.00%
sales established
Co.Ltd.Hunan Keda New
Energy Investment and
Investment and Changsha Changsha technology 100.00% Acquired
Development Co. development
Ltd.Foshan Kelian
New Energy Property
Foshan Foshan 100.00% Acquired
Technology Co. development
Ltd.Fozhao (Hainan) Hainan Hainan Production and 100.00% Newly
Technology Co. sales established
Ltd.Notes: Holding proportion in subsidiary different from voting proportion:
Naught
Basis of holding half or less voting rights but still been controlled investee and holding more than half of the
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
voting rights not been controlled investee:
Naught
Significant structured entities and controlling basis in the scope of combination:
Naught
Basis of determining whether the Company is the agent or the principal:
Naught
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding proportion The profit or loss Declaring dividends Balance of
Name of non-controlling attributable to the distributed to non-controlling interests
interests non-controlling interests non-controlling interests at the period-end
Foshan Taimei Times
Lamps and Lanterns Co. 30.00% 19161.69 10727235.82
Ltd.FSL Zhida Electric
49.00% 1599134.82 23712352.82
Technology Co. Ltd.Foshan Hortilite
49.00% 632667.58 16070209.98
Optoelectronics Co.Ltd.The holding proportion of non-controlling interests in subsidiary is different from voting proportion:
Naught
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Non-curr Non-curr Non-curr Non-curr
Name Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liability assets liability
Foshan
Taimei
Times
116474 147416 131216 954589 954589 712705 153164 865869 508933 508933
Lamps 0.00
789.59 41.45 431.04 78.31 78.31 18.28 06.34 24.62 44.19 44.19
and
Lanterns
Co. Ltd.FSL
Zhida
Electric 128898 101101 139008 782827 782827 112196 896267 121158 636961 636961
0.00
Technolo 809.18 71.67 980.85 50.63 50.63 198.34 6.26 874.60 84.82 84.82
gy Co.Ltd.Foshan 602115 129104 731219 403248 0.00 403248 511920 122499 634420 319361 319361
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Hortilite 01.24 24.71 25.95 62.98 62.98 90.96 45.68 36.64 60.19 60.19
Optoelec
tronics
Co.Ltd.Unit: RMB
Reporting Period Same period of last year
Cash flows Cash flows
Total Total
Name Operating from Operating from
Net profit comprehensi Net profit comprehensi
revenue operating revenue operating
ve income ve income
activities activities
Foshan
Taimei Times
72063898.7 62409344.3
Lamps and 63872.30 63872.30 86882.37 3419713.42 3419713.42 -2169954.22
7 5
Lanterns Co.Ltd.FSL Zhida
Electric 79244539.0 45607598.0
3263540.44 3263540.44 -5139161.29 3558174.26 3558174.26 -2023109.53
Technology 1 7
Co. Ltd.Foshan
Hortilite 41436035.1
1291186.52 1291186.52 1463433.79
Optoelectroni 3
cs Co.Ltd.
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
Naught
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
Naught
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
Naught
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(2) Main Financial Information of Significant Joint Ventures
Naught
(3) Main Financial Information of Significant Associated Enterprises
Naught
Naught
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Closing balance/amount of the current
Opening balance/amount of the previous period
period
Joint venture: -- --
Sum calculated by
shareholding ratio of -- --
each item
Affiliated enterprises: -- --
Total investment book
179322086.81 181365016.32
value
Sum calculated by
shareholding ratio of -- --
each item
-- Net profit 37460.99 4725081.89
-- Total comprehensive
37460.99 4725081.89
income
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
Naught
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
Naught
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
4. Significant Common Operation
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Naught
6. Other
Naught
X. The Risk Related to Financial Instruments
The financial instruments of the Company included: monetary funds notes receivable accounts receivable notes
receivable accounts payable etc. The details of each financial instrument see relevant items of Note VII.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 Each financial liability of the Company was
estimated due within 1 year.(III) Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to the
change of market price including: exchange rate risk interest rate risk and other price risk.1. Exchange rate risk
Exchange rate risk was referred to risk of possible losses due to changes of exchange rate. The exchange rate risk
undertaken by the Company was mainly generated from USD and EUR. On 30 June 2021 all assets and liabilities
of the Company were balances in RMB except that the balances of assets and liabilities presented in the Note VII
(82) Foreign Currency Monetary Items were in USD and EUR. The exchange rate risk generated from those
balance of assets and liabilities in foreign currency might influence the running performance of the Company to
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
some extent.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 price. There was no bank loan in the Company thus no RMB benchmark interest rate changes
3. Other price risk
Naught
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Ending fair value
Item Fair value measurement Fair value measurement Fair value measurement
Total
items at level 1 items at level 2 items at level 3
I. Consistent fair value
-- -- -- --
measurement
(I) Trading financial assets 1940000.00 291590525.04 293530525.04
1.Financial assets at fair
value through profit or 1940000.00 291590525.04 293530525.04
loss
(III) Other equity
2543403615.60 5054176.40 2548457792.00
instrument investment
II. Inconsistent fair value
-- -- -- --
measurement
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
In line with the market price of shares on the balance sheet date and forward foreign exchange option rate.3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 2
Items measured at fair value level 2 are bank's wealth management products which are measured at the
contractual expected yield rate as a reasonable estimate of the fair value.4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3
(1) Because the business environment operation conditions and financial conditions of the invested companies
China Guangfa Bank and Foshan Fochen Expressway Development Co. Ltd. haven’t changed significantly the
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Company takes investment costs as the reasonable estimation of fair value to measure.
(2) Because the business environment operation conditions and financial conditions of the invested company
Shenzhen Zhonghao (Group) Co. Ltd. were deteriorated the Company takes zero element as the reasonable
estimation of fair value to measure.5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
Naught
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
Naught
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
Naught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Financial assets and liabilities not measured at fair value include: monetary assets accounts receivable and
accounts payable etc. There is small difference between the carrying value of above financial assets and liabilities
and fair value.9. Other
Naught
XII. Related Party and Related-party Transactions
1. Information Related to the Company as the Parent of the Company
Proportion of share Proportion of voting
held by the rights 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
Hong Kong Wah
Shing Holding Hong Kong Investment HKD110000 13.47% 13.47%
Company Limited
Shenzhen Rising
Investment RMB135.409614
Shenzhen Investment 5.12% 5.12%
Development Co. million
Ltd.Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Guangdong
Electronics
Guangzhou Sales & Production RMB462 million 8.77% 8.77%
Information Industry
Group Ltd.Rising Investment
RMB200 million
Development Co. Hong Kong Investment 1.82% 1.82%
and HKD1 million
Ltd.Guangdong Rising
Finance Holding Zhuhai Investment RMB1393 million 0.82% 0.82%
Co. Ltd.Total 30.00% 30.00%
Notes: Information on the Company as the parent
The largest shareholder of the Company Hongkong Wah Shing Holding Company Limited was the
wholly-owned subsidiary of Electronics Group and Electronics Group Shenzhen Rising Investment Development
Co. Ltd. (hereinafter referred to as “Shenzhen Rising”) Guangdong Rising Finance Holding Co. Ltd.(hereinafter referred to as “GD Rising Finance”) and Rising Investment Development Co. Ltd. (hereinafter
referred to as “Rising Investment”) were the wholly-owned subsidiaries of Guangdong Rising Holdings Group
Co. Ltd. (hereinafter referred to as “Rising Group”). In line with the relevant stipulation of Corporation Law and
Rules on Listed Companies Acquisition Electronics Group Shenzhen Rising and Rising Investment were persons
acting in concert and the Rising Group was the controlling shareholder of the Company. As of 31 December 2020
the aforesaid persons acting in concert holding total A B share of the Company 419803826.00 shares 30.00 %
of total share equity of the Company.The final controller of the Company was 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
Guangdong Rising Holdings Group Co. Ltd. The Company’s actual controller
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
Acting-in-concert party of a 5% greater shareholder of the
Hangzhou Times Lighting and Electrical Co. Ltd.Company
Acting-in-concert party of a 5% greater shareholder of the
Prosperity Electrical (China) Co. Ltd.Company
Prosperity (Hangzhou) Lighting and Electrical Co. Ltd. Acting-in-concert party of a 5% greater shareholder of the
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Company
Foshan NationStar Optoelectronics Co. Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology Holding Co. Ltd. Under same actual controller
Guangdong Electronic Technology Research Institute Under same actual controller
Zhuhai Doumen District Yongxingsheng Environmental
Under same actual controller
Industrial Wastes Recycling Comprehensive Treatment Co. Ltd.Foshan Fulong Environmental Protection Technology Co. Ltd. Under same actual controller
Jiangmen Dongjiang Environmental Protection Technology Co.Under same actual controller
Ltd.Guangdong New Electronic Information Ltd. Under same actual controller
Guangdong Rising Rare Metals Photoelectric Materials Ltd. Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Shenzhen Zhongjin Lingnan Nonfemet Company Limited Under same actual controller
Guangdong Heshun Property Management Co. Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Equipment Technology Co. Ltd. Under same actual controller
Guangdong Zhongjin Construction Installation Engineering Co.Under same actual controller
Ltd.Guangdong Electronics Information Industry Group Ltd. Under same actual controller
Guangzhou Huajian Engineering Construction Co. Ltd. Under same actual controller
Guangdong Guangsheng Communications Technology Co. Ltd. Under same actual controller
Guangdong Rising Finance Limited Under same actual controller
Guangdong Zhongnan Construction Co. Ltd. Under same actual controller
Guangdong Vollsun Data Solid-state Storage Co. Ltd Under same actual controller
Guangdong Huajian Enterprise Group Co. Ltd. Under same actual controller
Shenzhen Yuepeng Construction Co. Ltd. Under same actual controller
Rising Investment Development Limited Under same actual controller
Guangdong Rising Real Estate Group Co. Ltd. Under same actual controller
Guangdong Rising Investment Group Co. Ltd. Under same actual controller
Company controlled by related natural person with significant
OSRAM (China) Lighting Co. Ltd.influence
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
The approval trade Whether exceed trade Same period of last
Related party Content Reporting Period
credit credit or not year
Foshan NationStar
Purchase of
Optoelectronics 26696615.70 120000000.00 No 15731289.16
materials
Co. Ltd.Guangdong Purchase of 5806125.49 15000000.00 No 2753999.58
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Fenghua Advanced materials
Technology Holding
Co. Ltd.PROSPERITY
LAMPS & Purchase of
1317138.04 13000000.00 No 1070878.91
COMPONENTS materials
LTD
Hangzhou Times
Purchase of
Lighting and 218592.85 161975.60
materials
Electrical Co. Ltd.Prosperity Electrical Purchase of
118407.08
(China) Co. Ltd. materials
Guangdong
Electronic Purchase of
142300.89 3000000.00 No 278761.06
Technology equipment
Research Institute
Jiangmen
Dongjiang
Environmental Receiving labor
143934.91 33309.73
Protection service
Technology Co.Ltd.Foshan Fulong
Environmental
Receiving labor
Protection 25471.70 42477.88
service
Technology Co.Ltd.Zhuhai Doumen
District
Yongxingsheng
Environmental Receiving labor
5660.38 13274.34
Industrial Wastes service
Recycling
Comprehensive
Treatment Co. Ltd.Guangdong
Electronic Receiving labor
2734.91 3033.63
Technology service
Research Institute
Total 34358574.87 151000000.00 20207406.97
Information of sales of goods and provision of labor service
Unit: RMB
Related party Content Reporting Period Same period of last year
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Guangdong New Electronic
Sale of products 28197238.34
Information Ltd.PROSPERITY LAMPS &
Sale of products 11719058.86 9332663.68
COMPONENTS LTD
Guangdong Rising Rare Metals
Sale of products 7990158.39
Photoelectric Materials Ltd.Guangdong Yixin Changcheng
Sale of products 2881672.01
Construction Group
Shenzhen Zhongjin Lingnan
Sale of products 951402.66
Nonfemet Company Limited
Guangdong Heshun Property
Sale of products 692679.04
Management Co. Ltd.Guangdong Zhongjin Lingnan
Equipment Technology Co. Sale of products 108659.28
Ltd.Guangdong Zhongjin
Construction Installation Sale of products 108592.02
Engineering Co. Ltd.Guangdong Rising Holdings
Sale of products 21203.54 34336.28
Group Co. Ltd.Prosperity Electrical (China)
Sale of products 21069.56 11282.10
Co. Ltd.Guangdong Electronics
Information Industry Group Sale of products 8013.27 8004.42
Ltd.Guangzhou Huajian
Engineering Construction Co. Sale of products 6145.47 127948.85
Ltd.Guangdong Rising
Communications Technology Sale of products 23628.32
Co. Ltd.Total 52705892.44 9537863.65
Information of sales/purchase of goods and provision/reception of labor service
1. The pricing policy for related-party transactions is as follows:
The pricing for related-party transactions observes the principle of market subject to the market price when the
transaction happens and relevant accounts shall be paid on time based on actual transaction.2. The related-party transactions between the Company and subsidiaries and among subsidiaries have been offset
when consolidating financial statements.
(2) Information on Related-party Trusteeship/Contract
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(3) Information on Related-party Lease
Naught
(4) Information on Related-party Guarantee
Naught
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Related Party
Naught
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting period Same period of last year
Chairman of the Board 481467.44 197370.00
General Manager 471367.44 548526.00
Chairman of the Supervisory Committee 454632.08 401155.00
Secretary of the Board 32696.24
Chief Financial Officer 432129.14 401155.00
Other 3599472.96 2116926.00
Total 5471765.30 3665132.00
(8) Other Related-party Transactions
Naught
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
Guangdong Rising
capital-Interest 1581250.00
Finance Co. Ltd.receivable
Guangdong New
Accounts receivable 28736896.36 862106.89 14131264.06 423937.92
Electronic
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Information Ltd.Guangdong Rising
Rare Metals
Accounts receivable 9028878.99 270866.37
Photoelectric
Materials Ltd.Guangdong Yixin
Accounts receivable Changcheng 5517512.14 165525.36 2261222.79 67836.68
Construction Group
PROSPERITY
LAMPS &
Accounts receivable 2980463.66 89413.91 3953777.97 118613.34
COMPONENTS
LTD
Shenzhen Zhongjin
Accounts receivable Lingnan Nonfemet 1578673.00 47360.19 574124.00 17223.72
Company Limited
Guangdong Heshun
Property
Accounts receivable 761315.00 22839.45
Management Co.Ltd.Guangdong
Zhongjin Lingnan
Accounts receivable 528826.00 15864.78 415731.00 12471.93
Equipment
Technology Co. Ltd.Guangdong
Zhongjin
Construction
Accounts receivable 122709.00 3681.27
Installation
Engineering Co.Ltd.OSRAM (China)
Accounts receivable 117554.16 94043.33 117554.16 94043.33
Lighting Co. Ltd.Prosperity
(Hangzhou) Lighting
Accounts receivable 86000.00 86000.00 86000.00 86000.00
and Electrical Co.Ltd.Guangzhou Huajian
Engineering
Accounts receivable 45108.70 2608.68 289857.54 8695.73
Construction Co.Ltd.Guangdong Rising
Accounts receivable Holdings Group Co. 9060.00 271.80
Ltd.Guangdong
Accounts receivable 2642688.00 79280.64
Zhongnan
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Construction Co.Ltd.Guangdong Vollsun
Accounts receivable Data Solid-state 2553280.00 765984.00
Storage Co. Ltd
Prosperity Electrical
Prepayments 39428.00 39428.00
(China) Co. Ltd.
Foshan NationStar
Prepayments Optoelectronics Co. 31266.86
Ltd.Guangdong New
Other receivables Electronic 465.50 13.97
Information Ltd.Total 49552890.51 1660596.00 28677444.38 1674087.29
(2) Accounts Payable
Unit: RMB
Item Related party Ending carrying amount Beginning carrying amount
Foshan NationStar
Accounts payable 19323480.61 32866944.98
Optoelectronics Co. Ltd.Guangdong Fenghua Advanced
Accounts payable 3676956.58 5258863.67
Technology Holding Co. Ltd.Hangzhou Times Lighting and
Accounts payable 226907.87 289282.42
Electrical Co. Ltd.PROSPERITY LAMPS &
Accounts payable 1392879.87 1350955.58
COMPONENTS LTD
Guangdong Yixin Changcheng
Other payables 17502563.48
Construction Group
Guangdong Huajian Enterprise
Other payables 1663451.79 9358999.63
Group Co. Ltd.Guangdong Electronic
Other payables 276940.00 260860.00
Technology Research Institute
Shenzhen Yuepeng
Other payables 50000.00
Construction Co. Ltd.Guangdong Fenghua Advanced
Other payables 10000.00 30000.00
Technology Holding Co. Ltd.Foshan NationStar
Other payables 10354.07 279800.91
Optoelectronics Co. Ltd.Guangdong Heshun Property
Other payables 3330.08
Management Co. Ltd.Prosperity Electrical (China)
Contract liabilities 54049.20 39764.94
Co. Ltd.Total 44190913.55 49735472.13
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
7. Commitments of Related Party
1. Commitment on Avoidance of Horizontal Competition
Commitment maker: Controlling shareholder
Contents of Commitment:Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and
Hong Kong Rising Investment have made a commitment that the elimination of the horizontal competition
between Foshan Nation Star Optoelectronics Co. Ltd and the Company through business integration or other
ways or arrangements shall be completed before 4 June 2020.Date of commitment making: 3 December 2019
Term of commitment: 6 months
Fulfillment: Complete
2. Commitment on Avoidance of Horizontal Competition
Commitment maker: Controlling shareholder
Contents of Commitment: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and
Hong Kong Rising Investment have made more commitments as follows to avoid horizontal competition with the
Company: 1. They shall conduct supervision and restraint on the production and operation activities of themselves
and their relevant enterprises so that besides the enterprise above that is in horizontal competition with the
Company for now if the products or business of them or their relevant enterprises become the same with or
similar to those of the Company or its subsidiaries in the future they shall take the following measures: (1) If the
Company thinks necessary they and their relevant enterprises shall reduce and wholly transfer their relevant
assets and business; and (2) If the Company thinks necessary it is given the priority to acquire first by proper
means the relevant assets and business of them and their relevant enterprises. 2. All the commitments made by
them to eliminate or avoid horizontal competition with the Company are also applicable to their directly or
indirectly controlled subsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s
prescribed in the relevant document and faithfully honor all the relevant commitments. 3. If they or their directly
or indirectly controlled subsidiaries break the aforesaid commitments and thus cause a loss for the Company they
shall compensate the Company on a rational basis.Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
3. Commitment on Reduction and Regulation of Related-party Transactions
Commitment maker: Controlling shareholder
Contents of Commitment: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and
Hong Kong Rising Investment have made a commitment that during their direct or indirect holding of the
Company’s shares they shall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE the
Company’s Articles of 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
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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
4 Commitment on Independence
Commitment maker: Controlling shareholder
Contents of Commitment: In order to ensure the independence of the Company in business personnel asset
organization and finance Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong
Kong Rising Investment have made the following commitments: 1. They will ensure the independence of the
Company in business: (1) They promise that the Company will have the assets personnel qualifications and
capabilities for it to operate independently as well as the ability of independent sustainable operation in the market.
(2) They promise not to intervene in the Company’s business activities other than the execution of their rights as the
Company’s shareholders. (3) They promise that they and their related parties will not be engaged in business that is
substantially in competition with the Company’s business. And (4) They promise that they and their related parties
will try their best to reduce related-party transactions between them and the Company; for necessary and
unavoidable related-party transactions they promise to operate fairly following the market-oriented principle and at
fair prices and execute the transaction procedure and the duty of information disclosure pursuant to the applicable
laws regulations and regulatory documents. 2.They will ensure the independence of the Company in personnel: (1)
They promise that the Company’s GM deputy GMs CFO Company Secretary and other senior management
personnel will work only for and receive remuneration from the Company not holding any positions in them or their
other controlled subsidiaries other than director and supervisor. (2) They promise the Company’s absolute
independence from their related parties in labor human resource and salary management. And (3) They promise to
follow the legal procedure in their recommendation of directors supervisors and senior management personnel to
the Company and not to hire or dismiss employees beyond the Company’s Board of Directors and General Meeting.3. They will ensure the independence and completeness of the Company in asset: (1) They promise that the
Company will have a production system 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 the Company will have independent and complete assets
all under the Company’s control and independently owned and operated by the Company. And (3) They promise
that they and their other controlled subsidiaries will not illegally occupy the Company’s funds and assets in any way
or use the Company’s assets to provide guarantees for the debts of themselves or their other controlled subsidiaries
with. 4. They will ensure the independence of the Company in organization: (1) They promise that the Company has
a sound corporate governance structure as a joint-stock company with an independent and complete organization
structure. (2) They promise that the operational and management organs within the Company will independently
execute their functions according to laws regulations and the Company’s Articles of Association. 5. They will
ensure the independence of the Company in finance: (1) They promise that the Company will have an independent
financial department and financial accounting system with normative independent financial accounting rules. (2)
They promise that the Company will have independent bank accounts and not share bank accounts with its related
parties. (3) They promise that the Company’s financial personnel do not hold concurrent positions in its related
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
parties. (4) They promise that the Company will independently pay its tax according to law. And (5) They promise
that the Company can make financial decisions independently and that they will not illegally intervene in the
Company’s use of its funds.Date of commitment making: 4 December 2015
Term of commitment: Long-standing
Fulfillment: In execution
8. Other
Naught
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□Applicable √ Not applicable
2. The Stock Payment Settled in Equity
□Applicable √ Not applicable
3. The Stock Payment Settled in Cash
□Applicable √ Not applicable
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
Naught
2. Contingency
(1) Significant Contingency on Balance Sheet Date
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(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
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught
2. Profit Distribution
Naught
3. Sales Return
Naught
4. Note 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
Naught
4. Pension Plan
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
5. Discontinued Operations
Naught
6. Segment Information
Naught
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught
8. Other
Naught
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Notes Receivable
(1) Category of Notes Receivable
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Withdra Withdraw
Item Carrying Carrying
Proportio wal Proportio al
Amount Amount value Amount Amount value
n proportio n proportio
n n
Accounts receivable
for which bad debt 152576 956933 5688330 1525766 9569331 5688330.8
1.45% 62.72% 1.40% 62.72%
provision separately 62.85 1.99 .86 2.85 .99 6
accrued
Of which:
Accounts receivable
for which bad debt 103349 445599 9889315 1073149 4812487 10250247
98.55% 4.31% 98.60% 4.48%
provision accrued 1498.87 87.13 11.74 615.48 2.12 43.36
by group
Of which:
104874 541293 9946198 1088407 5769420 10307130
Total 100.00% 5.16% 100.00% 5.30%
9161.72 19.12 42.60 278.33 4.11 74.22
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Individual withdrawal of bad debt provision by single item:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion Reason for withdrawal
Involved in the lawsuit;
the Company won in the
Customer A 14220827.14 8532496.28 60.00% first instance judgment
and the other side had
appealed
Involved in the lawsuit;
the Company won the
Customer B 1036835.71 1036835.71 100.00% case but the counterpart
has no property for
repayment
Total 15257662.85 9569331.99 -- --
Withdrawal of bad debt provision by group:
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Credit risk portfolio 1033491498.87 44559987.13 4.31%
Total 1033491498.87 44559987.13 --
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) 984186747.88
1 to 2 years 14872173.31
2 to 3 years 22403377.77
Over 3 years 27286862.76
3 to 4 years 8743397.77
4 to 5 years 14104509.72
Over 5 years 4438955.27
Total 1048749161.72
(2) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Accounts
57694204.11 -3564840.60 44.39 54129319.12
receivable
Total 57694204.11 -3564840.60 44.39 54129319.12
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
Item Amount
Other driblet small amount 44.39
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
Ending balance of accounts Proportion to total ending Ending balance of bad debt
Name
receivable balance of accounts receivable provision
No. 1 130321324.71 12.43% 3909639.74
No. 2 99148025.12 9.45% 0.00
No. 3 55072539.33 5.25% 1652176.18
No. 4 18109974.59 1.73% 543299.24
No. 5 17654601.13 1.68% 529638.03
Total 320306464.88 30.54%
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of
Accounts Receivable
Naught
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 493080363.83 462284585.09
Total 493080363.83 462284585.09
(1) Interest Receivable
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Accounts Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Internal business group 472855309.63 443820864.80
VAT export tax refunds 195141.85
Bidding and performance bond 6282632.03 4025073.30
Borrowings and petty cash for employees 5092620.77 7403907.26
Rental fees and water & electricity fees 3454648.46 2989445.13
Other 8316575.29 6185710.92
Total 496001786.18 464620143.26
2) 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 Total
duration (credit impairment duration (credit impairment
of the next 12 months
not occurred) occurred)
Balance of 1 January
454821.73 1880736.44 2335558.172021
Balance of 1 January
2021 in the Current —— —— —— ——
Period
Withdrawal of the
40984.24 544879.94 585864.18
Current Period
Balance of 30 June 2021 495805.97 2425616.38 2921422.35
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) 484905549.55
1 to 2 years 3873698.54
2 to 3 years 3627339.77
Over 3 years 3595198.32
3 to 4 years 3077373.22
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
4 to 5 years 79524.80
Over 5 years 438300.30
Total 496001786.18
3) Bad Debt Provision Withdrawn Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision
Unit: RMB
Changes in the Reporting Period
Beginning
Category Reversal or Ending balance
balance Withdrawal Write-off Other
recovery
Other accounts
2335558.17 585864.18 2921422.35
receivable
Total 2335558.17 585864.18 2921422.35
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
Name of the entity Nature Ending balance Aging ending balance of
bad debt provision
other receivables%
Internal business
No. 1 394627792.74 Within 1 years 79.56%
group
Internal business
No. 2 19936475.39 Within 1 years 4.02%
group
Internal business
No. 3 17995308.05 Within 3 year 3.63%
group
Internal business
No. 4 10535474.03 Within 2 year 2.12%
group
No. 5 Provident fund 2263797.33 Within 1 years 0.46% 67913.92
Total -- 445358847.54 -- 89.79% 67913.92
6) Accounts Receivable Involving Government Grants
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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 Depreciation Depreciation
Carrying amount Carrying value Carrying amount Carrying value
reserve reserve
Investment to
345507295.41 345507295.41 355584295.41 355584295.41
subsidiaries
Investment to
joint ventures and
179322086.81 179322086.81 181365016.32 181365016.32
associated
enterprises
Total 524829382.22 524829382.22 536949311.73 536949311.73
(1) Investment to Subsidiaries
Unit: RMB
Beginning Increase/decrease
Ending balance
balance Depreciation Ending balance
Investee Additional Reduced of depreciation
(carrying reserves Other (carrying value)
investment investment reserve
value) withdrawn
FSL Chanchang
Optoelectronics 82507350.00 82507350.00
Co. Ltd.Foshan Taimei
Times Lamps
350000.00 350000.00
and Lanterns
Co. Ltd.Nanjing Fozhao
Lighting
Components 72000000.00 72000000.00
Manufacturing
Co. Ltd.Foshan
Electrical &
Lighting 35418439.76 35418439.76
(Xinxiang) Co.Ltd.Guangdong 50077000.00 50077000.00
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
Fozhao New
Light Sources
Technology Co.Ltd.Foshan Hortilite
Optoelectronics 16685000.00 16685000.00
Co.Ltd.Foshan Lighting
Lamps &
15000000.00 15000000.00
Components
Co. Ltd.FSL Zhida
Electric
25500000.00 25500000.00
Technology Co.Ltd.FSL Lighting
195812.50 195812.50
GMBH
Hunan Keda
New Energy
Investment and 57850693.15 40000000.00 97850693.15
Development
Co. Ltd.355584295.4
Total 40000000.00 50077000.00 345507295.411
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease
Ending
Gains and Adjustme
Beginnin Cash Withdraw Ending balance
Additiona losses nt of
g balance Reduced Changes bonus or al of balance of
Investee l recognize other
(carrying investmen of other profits impairme Other (carrying depreciati
investmen d under comprehe
value) t equity announce nt value) on
t the equity nsive
d to issue provision reserve
method income
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatron
ix 1813650 2080390 1793220
37460.99
(Nanho) 16.32 .50 86.81
Electronic
s Ltd.Subtotal 1813650 37460.99 2080390 1793220
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
16.32 .50 86.81
1813650 2080390 1793220
Total 37460.99
16.32 .50 86.81
(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 1712892634.56 1415558525.32 1364657069.47 1099182617.15
Other business 84902658.17 70407375.42 58327006.37 45523697.25
Total 1797795292.73 1485965900.74 1422984075.84 1144706314.40
Information related to performance obligations:
Naught
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or not
fully performed yet was RMB0.00 at the period-end.5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment income
37460.99 4725081.89
accounted by equity method
Investment income from disposal of
6754363.94
long-term equity investment
Dividend income from holding of other
14940422.96
equity instrument investment
Investment income from financial products
4756319.58 15454650.86
and structural deposits
Other 416050.00 1023100.00
Total 11964194.51 36143255.71
6. Other
Naught
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss
√ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gains/losses on the disposal of non-current assets 3037823.13
Government grants recognized in the current period
except for those acquired in the ordinary course of
7791032.60
business or granted at certain quotas or amounts
according to the government’s unified standards
Capital occupation charges on non-financial enterprises
516895.46
that are recorded into current profit or loss
Gain/loss from change of fair value of trading financial
assets and liabilities derivative financial assets and
liabilities and investment gains from disposal of trading
financial assets and liabilities derivative financial assets 2356050.00
and liabilities and investment in other debt obligations
other than valid hedging related to the Company’s
common businesses
Other non-operating income and expenses other than the
189648.11
above
Less: Income tax effects 1969325.03
Non-controlling interests effects 317088.85
Total 11605035.42 --
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in
the Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the
Public—Non-recurring Gains and Losses or classifies any extraordinary gain/loss item mentioned in the said
explanatory announcement as a recurrent gain/loss item
□ Applicable √ Not applicable
2. Return on 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
1.82% 0.0802 0.0802
shareholders of the Company
Net profit attributable to ordinary
shareholders of the Company after
1.63% 0.0717 0.0717
deduction of non-recurring profit or
loss
Foshan Electrical and Lighting Co. Ltd. semi-annual financial report of 2021
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
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