Foshan Electrical
FOSHAN ELECTRICAL AND LIGHTING CO. LTD.ANNUAL REPORT 2024
April 2025
1Foshan Electrical
ANNUAL REPORT 2024
Part I Important Notes Table of Contents and Definitions
The Board of Directors the Supervisory Committee as well as the directors supervisors and
senior management of Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as the
“Company”) hereby guarantee the factuality accuracy and completeness of the contents of this
Report and its summary and shall be jointly and severally liable for any misrepresentations
misleading statements or material omissions therein.Wan Shan the Company’s legal representative Tang Qionglan the Company’s Chief Financial
Officer (CFO) and Li Yizhi the person-in-charge of the Company’s accounting organ
(equivalent to accounting manager) hereby guarantee that the Financial Statements carried in
this Report are factual accurate and complete.All the Company’s directors have attended the Board of Directors meeting for the review of
this Report and its summary.The future plans and other forward-looking statements as well as the cautionary statements
mentioned in this Report shall not be considered as virtual promises of the Company to
investors. And investors are kindly reminded to be well aware of possible risks.The Company has described in detail in this Report the risk of macro-economic fluctuations
and intensified market competition the risk of rising raw material prices the risk of exchange
rate fluctuations the risk of the recoverability of accounts receivable. Please refer to the section
headed “Potential risks facing the Company and countermeasures” in Item XI of Part III of
this Report.The profit distribution plan approved by the Board of Directors is as follows: Based on the total
share capital of 1535778230 shares at the time of disclosure of the Company's 2024 Annual
Report a cash dividend of RMB1.2 (including tax) will be distributed for every ten shares to
all shareholders with no bonus shares (including tax) to be issued and no capitalisation of
reserves into share capital. If the total number of shares eligible for the profit distribution
changes due to share repurchases equity incentive grants etc. the Company will adjust the
total dividend amount accordingly in accordance with the principle of maintaining the
distribution ratio per share unchanged.This Report has been prepared in both Chinese and English. Should there be any discrepancies
or misunderstandings between the two versions the Chinese version shall prevail.
2Foshan Electrical
Table of Contents
Part I Important Notes Table of Contents and Defin... 2
Part II Corporate Information and Key Financial In... 6
Part III Management Discussion and Analysis ........ 12
Part IV Corporate Governance ....................... 52
Part V Environmental and Social Responsibility .... 809
Part VI Significant Events ......................... 91
Part VII Share Changes and Shareholder Information 1308
Part VIII Preference Shares ...................... 1442
Part IX Corporate Bonds .......................... 1453
Part X Financial Statements ...................... 1464
3Foshan Electrical
Documents Available for Reference
Investors and interested parties can get access to the following materials in the Board of Directors’s
Office (Strategic Investment Department) in the Company’s office building:
1. The financial statements signed and stamped by the Company’s legal representative Chief
Financial Officer and the person-in-charge of the Company’s accounting organ.
2. The original copy of the Independent Auditor’s Report signed and stamped by the certified public
accountants and stamped by the CPA firm.
3. The originals of all the Company’s announcements and documents disclosed to the public during
the Reporting Period on the media designated by the China Securities Regulatory Commission
(CSRC) for information disclosure.
4Foshan Electrical
Definitions
Term Refers Definition
The “Company” “listed company”
Refers Foshan Electrical and Lighting Co. Ltd.“FSL” or “we”
Rising Holdings Group Refers Guangdong Rising Holdings Group Co. Ltd.Electronics Group Refers Guangdong Electronics Information Industry Group Ltd.Hong Kong Rising Investment Refers Rising Investment Development Limited
Hongkong Wah Shing Refers Hongkong Wah Shing Holding Company Limited
Guangdong Rising Capital Investment Co. Ltd.Rising Capital Refers (formerly known as “Guangdong Rising Finance HoldingCo. Ltd. (GD Rising Finance))
Shenzhen Rising Investment Refers Shenzhen Rising Investment Development Co. Ltd.NationStar Optoelectronics Refers Foshan NationStar Optoelectronics Co. Ltd.NationStar Semiconductor Refers Foshan NationStar Semiconductor Technology Co. Ltd.Sigma Refers Foshan Sigma Venture Capital Co. Ltd.Liaowang Auto Lamp Refers Nanning Liaowang Auto Lamp Co. Ltd.Fozhao Huaguang Refers Fozhao Huaguang (Maoming) Technology Co. Ltd.Zhejiang Hule Electrical Equipment Manufacturing Co.Hule Electrical Equipment Refers
Ltd.Beijing Airtrust Refers Beijing Airtrust Technology Co. Ltd.Guangdong Fenghua Semiconductor Technology Co.Fenghua Semiconductor Refers Ltd. (formerly known as “Guangdong Yuejing High-techCo. Ltd.”)
CSRC Refers China Securities Regulatory Commission
SZSE Refers Shenzhen Stock Exchange
General meeting of Foshan Electrical and Lighting Co.General meeting Refers
Ltd.The Board of Directors of Foshan Electrical and Lighting
Board of Directors Refers
Co. Ltd.The Supervisory Committee of Foshan Electrical and
Supervisory Committee Refers
Lighting Co. Ltd.Expressed in the Chinese currency of Renminbi
RMB RMB’0000 RMB’00000000 Refers expressed in tens of thousands of Renminbi expressed in
hundreds of millions of Renminbi
5Foshan Electrical
Part II Corporate Information and Key Financial Information
I Corporate Information
Stock name FSL FSL-B Stock code 000541/200541
Stock exchange for listing Shenzhen Stock Exchange
Company name in Chinese 佛山电器照明股份有限公司
Abbr. 佛山照明
Company name in English (if
Foshan Electrical and Lighting Co.Ltd
any)
Abbr. (if any) FSL
Legal representative Wan Shan
No. 64 Fenjiang North Road Chancheng District Foshan City Guangdong
Registered address
Province P.R.China
Zip code 528000
Changes of registered address N/A
No. 8 Zhihui Road Chancheng District Foshan City Guangdong Province
Office address
P.R.China
Zip code 528051
Company website www.chinafsl.com
Email address gzfsligh@pub.foshan.gd.cn
II Contact Information
Secretary of the Board of Directors Securities Representative
Name Huang Zhenhuan Huang Yufen
No. 8 Zhihui Road Chancheng No. 8 Zhihui Road Chancheng
Address District Foshan City Guangdong District Foshan City Guangdong
Province P.R.China Province P.R.China
Tel. (0757) 82810239 (0757) 82966028
Fax (0757) 82816276 (0757) 82816276
Email address fsldsh@chinafsl.com fslhyf@163.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed http://www.cninfo.com.cn
Media and website where this Report is disclosed Securities Daily http://www.zqrb.cn
Board of Directors Office FSL Office Building 8
Zhihui Road Chancheng District Foshan City
Place where this Report is lodged
Guangdong Province P.R.China (Strategic Investment
Department)
IV Change to Company Registered Information
Unified social credit code 91440000190352575W
Change to principal activity of the Company since
Unchanged
going public (if any)
In April 2006 the State-owned Assets Supervision and
Administration Commission (SASAC) of Foshan
Municipal People’s Government the former
controlling shareholder of the Company transferred
Every change of controlling shareholder since
13.47% of shares it held in the Company to OSRAM
incorporation (if any)
Prosperity Holding Company Limited (later renamed
as “OSRAM Holding Company Limited”) and at the
same time SASAC of Foshan Municipal People’s
Government transferred 10.50% of shares it held in the
6Foshan Electrical
Company to Prosperity Lamps & Components Limited.Upon completion of such transfer the biggest
shareholder of the Company was OSRAM Prosperity
Holding Company Limited and the Company had no
any controlling shareholder or actual controller. In
December 2015 OSRAM of Germany transferred
100% equity it held in OSRAM Holding Company
Limited (OSRAM Holding Company Limited held
13.47% of shares of the Company being the biggest
shareholder of the Company and later renamed as
“Hongkong Wah Shing Holding Company Limited”) to
Electronics Group. In addition Electronics Group and
its parties acting in concert (Rising Capital Shenzhen
Rising Investment and Hong Kong Rising Investment)
held 23.144% of the shares of the Company through
increasing their shareholding of the Company.Electronics Group and its parties acting in concert
became the controlling shareholder of the Company
and Electronics Group is a wholly-owned subsidiary of
Rising Holdings Group. In December 2021 wholly-
owned subsidiaries of Rising Holdings Group Rising
Capital and Shenzhen Rising Investment transferred
5.94% of shares they held in the Company to Rising
Holdings Group through transfer by agreement for no
compensation. Therefore Rising Holdings Group and
its parties acting in concert held 30% of shares in the
Company. In February 2022 the Company repurchased
and retired certain shares and Rising Holdings Group
and its parties acting in concert held 30.82% of shares
in the Company. In November 2023 the Company
carried out a private placement of 186783583 shares
of A-share stock to specific parties of which Rising
Holdings Group subscribed for 46695895 shares.Rising Holdings Group and its parties acting in concert
held 30.12% of shares in the Company. From 3 June
2024 to 8 November 2024 Electronics Group and
Hong Kong Wah Shing increased their shareholdings
in the Company by 18342550 shares accounting for
1.18% of the Company’s total share capital. As of 31
December 2024 Rising Holdings Group and its parties
acting in concert held 31.30% of shares in the
Company. On 10 January 2025 the Company’s share
repurchase and cancellation were completed and the
Rising Holdings Group and its parties acting in concert
held 31.57% of shares in the Company. As of the
disclosure date of this Report due to the increased
shareholding by Electronics Group Rising Holdings
Group and its parties acting in concert held 31.75% of
shares in the Company.V Other Information
The independent audit firm hired by the Company:
Name WUYIGE Certified Public Accountants LLP
Room 2206 22/F 1 Zhichun Road Haidian District
Office address
Beijing
Accountants writing signatures He Xiaojuan and Wang Xiaohan
7Foshan Electrical
The independent sponsor hired by the Company to exercise constant supervision over the Company
in the Reporting Period:
□Applicable □ Not applicable
Name of sponsor Office address Name of representative Period of supervision
Guotai Haitong Securities
618 Shangcheng Road
Co. Ltd(formerly known Xu Zhenyu and Yang From 4 December 2023 to
China (Shanghai) Pilot
as Guotai Junan Securities Haoyue 31 December 2024
Free Trade Zone
Co. Ltd.)
The independent financial advisor hired by the Company to exercise constant supervision over the
Company in the Reporting Period:
□Applicable □Not applicable
VI Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.□Yes □No
2024-over-2023
202420232022
change (%)
Operating revenue
9048237647.149057292003.90-0.10%8759965275.96
(RMB)
Net profit
attributable to the
listed company’s 446184021.97 290357652.22 53.67% 230320570.67
shareholders
(RMB)
Net profit
attributable to the
list company’s
97753307.23274838768.63-64.43%222164265.49
shareholders before
non-recurring gains
and losses (RMB)
Net cash cash flows
from operating 598115335.88 1174389978.98 -49.07% 1064888320.69
activities (RMB)
Basic earnings per
0.29050.212836.51%0.1707
share (EPS)-basic
EPS-diluted 0.2881 0.2108 36.67% 0.1691
Weighted average
return on equity 6.94% 5.51% 1.43% 4.13%
(ROE) (%)
Change of 31
December 2024
31 December 2024 31 December 2023 31 December 2022
over 31 December
2023(%)
Total assets (RMB) 17159763456.64 16934439915.02 1.33% 15288917918.86
Equity attributable
to the listed
company’s 6574304305.27 6285442808.19 4.60% 5173011348.74
shareholders
(RMB)
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
8Foshan Electrical
shareholders before and after non-recurring gains and losses was negative for the last three accounting
years and the latest independent auditor’s report indicated that there was uncertainty about the
Company’s ability to continue as a going concern.□Yes □No
Indicate by tick mark whether the lower of the net profit attributable to the listed company’s
shareholders before and after exceptional gains and losses was negative.□Yes □No
VII Accounting Data Differences under China’s Accounting Standards for Business
Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign
Accounting Standards
1. Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under CAS
and IAS
□Applicable □Not applicable
No difference for the Reporting Period.
2. Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under CAS
and Foreign Accounting Standards
□Applicable □Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 2517243351.93 2267302415.49 2102727793.40 2160964086.32
Net profit
attributable to the
83714220.74108514961.6458693073.41195261766.18
listed company’s
shareholders
Net profit
attributable to the
listed company’s
shareholders after 76725491.16 102117421.61 38987283.45 -120076888.99
deducting non-
recurring gains and
losses
Net cash flows from
77337687.93307255356.68186540571.9426981719.33
operating activities
Indicate by tick mark whether any of the quarterly financial data in the table above or their
summations differs materially from what have been disclosed in the Company’s quarterly or interim
reports.□Yes □No
IX Exceptional Gains and Losses
□Applicable □ Not applicable
9Foshan Electrical
Unit: RMB
Item 2024 2023 2022 Note
Gain or losses on disposal of non-current
assets (including the portion offset for 374276636.74 11286004.48 -8216871.49
provisions for asset impairment)
Government grants recognised in profit or
loss (exclusive of those that are closely
related to the Company’s normal business
operations and given in accordance with 51867148.37 52146676.20 67165060.76
defined criteria and in compliance with
government policies and have a continuing
impact on the Company’s profit or loss)
Gain or loss on fair value changes in
financial assets and liabilities held by a non-
financial enterprise as well as on disposal
of financial assets and liabilities (exclusive 3881370.83 -10070899.66 -19057137.27
of the effective portion of hedges that is
related to the Company’s normal business
operations)
Capital occupation charges on non-financial
enterprises that are recorded into current 665872.11 224271.91 339583.00
profit or loss
Reverse of provision for impairment of
accounts receivable individually conducting 16742832.57 573448.92 1203963.23
impairment test
Profits arising from business combination
when the combined cost is less than the
2131597.43
recognised fair value of net assets of the
merged company
Current profit or loss on subsidiaries
obtained in business combinations
involving enterprises under common 22504245.08
control from the period-beginning to
combination dates net
Gain or loss on debt restructuring -368531.60
Other non-operating income and expenses
11943647.794424223.1010557819.17
other than the above
Less: Income tax effects 65001245.07 5440558.97 4192386.71
Non-controlling interests effects (after-tax) 47708614.43 37624282.39 62147970.59
Total 348430714.74 15518883.59 8156305.18 --
Others that meets the definition of non-recurring gains and losses:
□Applicable □Not applicable
There are no other profit and loss items in line with the definition of non-recurring gains and losses
in the Company.Explain the reasons if the Company classifies any non-recurring gains and losses item mentioned in
the Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their
Securities to the Public - Exceptional Gain/Loss Items as a recurrent gain/loss item:
□Applicable □Not applicable
The Company involves no circumstances where the non-recurring gains and losses listed in the
Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities
10Foshan Electrical
to the Public - Exceptional Gain/Loss Items are defined as recurring gains and losses.
11Foshan Electrical
Part III Management Discussion and Analysis
I Industry Overview for the Reporting Period
In 2024 the global economy exhibited a complex and volatile landscape with an overall slowdown
in development trends. On the one hand the domestic economy is undergoing a critical phase of
structural adjustment and transformation with a continuous shift between traditional and emerging
growth drivers. The challenges and difficulties facing development have increased. On the other hand
although the total export volume of lighting products has remained generally stable prices have
declined leading to heightened operational pressures for enterprises. Leading enterprises are
continuously consolidating their market advantages by leveraging strengths in channels branding
technology scale and capital. In contrast small and medium-sized enterprises lacking core
competitiveness such as brand recognition and technological capability are gradually being
marginalized. At the same time with the integration of 5G the Internet of Things and AI with
lighting technologies leading enterprises in the industry are actively adjusting their product structures
and market strategies. They are accelerating the transformation from providing single products to
offering integrated solutions for smart cities smart homes healthy lighting and green lighting. These
companies are expanding into new niche markets making breakthroughs in high value-added areas
and creating new growth opportunities for the industry.Benefiting from the rapid development of the automotive industry market demand for vehicle
lighting has continued to grow. According to statistics from the China Association of Automobile
Manufacturers in 2024 China’s automobile production and sales reached 31.282 million units and
31.436 million units respectively representing year-on-year increases of 3.7% and 4.5%. The new
energy vehicle industry achieved ongoing rapid growth. Statistically the output and sales of new
energy vehicles for 2024 reached 12.888 million and 12.866 million up by 34.4% and 35.5% year on
year respectively. Additionally the market share of new energy vehicles rose to 40.9%. With the
significant growth in sales of new energy vehicles the rise of domestic automotive brands and the
improvement of research and development capabilities and flexible service capabilities of enterprises
along the entire industry chain Chinese auto parts enterprises have gradually been incorporated by
vehicle companies into their supply chain systems. This has contributed to the continuously
accelerated replacement with domestic products and given more opportunities to Chinese automotive
light enterprises. At the same time with the advancement of automotive intelligence technologies
vehicle lighting is also evolving toward greater electronic integration intelligence and diversification
creating new development opportunities for the industry. The penetration rates of ADB headlights
DLP headlights interactive taillights and multi-colour ambient lighting are steadily increasing
driving up the overall value of vehicle lighting and enabling lighting enterprises to maintain their
growth momentum.In 2024 the LED packaging industry advanced amid both challenges and opportunities. On the one
hand intensified industry competition resulted in revenue growth without a corresponding increase
in profits. On the other hand intensified market competition and technological advancement have
created new opportunities for market development accelerating the industry’s transformation toward
diversification and intelligence. Industry players are enhancing their overall competitiveness and
seeking new growth drivers by adjusting their product portfolios and actively expanding into high
value-added and high-growth-potential niche segments such as automotive LEDs Mini-LED
backlighting and agricultural lighting. At the same time in response to shifting global market
demand—particularly the rapid rise of demand in emerging markets—industry enterprises are
actively expanding into overseas markets to increase their market share.
12Foshan Electrical
II Principal Operations of the Company in the Reporting Period
(I) Principal operations
The Company has been committed to the R&D production and sale of high-quality and energy-
efficient lighting products in order to provide integrated lighting solutions for customers. Since 2021
the Company has successively acquired and held control of Liaowang Auto Lamp NationStar
Optoelectronics and Hule Electrical Equipment. The Company’s main business currently includes
the research and development production and sales of general lighting and electrical products
automotive lighting LED packaging products and more.The general lighting and electrical product business of the Company mainly covers LED light sources
LED luminaries traditional lighting products and comprehensive lighting solutions for home lighting
commercial lighting industrial lighting municipal road lighting and landscape lighting. Over recent
years the Company has been exploring new fields including smart lighting healthy lighting marine
lighting aviation lighting and animal and plant lighting.Electrical products mainly include switches sockets smart control panels and smart door locks.Based on its own automotive light sources and modules the Company relying on its majority-owned
subsidiary Liaowang Auto Lamp has expanded the automotive lighting business into the automotive
light assembly sector involving basically all the lights that an automobile requires such as headlights
rear light combos fog lights backup lights interior lights and license plate lights. The main clients
of Liaowang Auto Lamp include SAIC-GM-Wuling Automobile Chongqing Changan Automobile
SERES IM Bestune SAIC Maxus Automotive and other whole-automobile manufacturers. And
medium- and high-end products take up an increasing percentage of its total sales of automotive lights.The Company conducts LED packaging business mainly by relying on its majority-owned subsidiary
NationStar Optoelectronics (stock code: 002449). The primary products include LED epitaxial wafers
and chips LED packaging and component products integrated circuit packaging products and third
generation compound semiconductor packaging products which are widely used for consumer
electronics home appliances computers communications display and lighting products general
lighting automotive lighting sterilization and purification plant lighting and other fields.(II) Business models
1. Procurement model
The Company’s procurement department should ensure that the procured materials and products meet
the prescribed requirements and that procurement activities are under control. Besides it should
consider the needs of each department and the reasonable stock quantity before carrying out any
procurement and determine suppliers by means of bidding price negotiation and price comparison.There should be several backup suppliers of each principal raw material to ensure fair procurement
price timely material supply and reliable quality.
2. Production model
For routine products the production plan for the next month is prepared based on the analysis of the
sales of each month and changes in the future market demand and the safe stock benchmark. Each
production department produces products as planned so as to control the stock and meet the sales
demand. For customized products the make-to-order strategy is implemented to effectively control
the stock quantity of raw materials reduce the funds that are tied up and improve the Company’s
operational efficiency.
13Foshan Electrical
3. Sales model
The Company’s general lighting business adopts a dual sales model in the domestic market
combining distributor-based distribution and direct supply for engineering projects.. The Company
primarily sells in household commerce and e-commerce sale channels. For foreign sales the
Company adopts the models of OEM and independent brands. The sale of products of independent
brands abroad is carried out mainly via agencies.In the automotive lighting business in the factory-installed market the model of supplying
automotive light products directly to OEMs is mainly adopted; in the aftermarket products are mainly
sold by agencies.In the LED packaging business the direct sale model is mainly adopted in which products are sold
through direct communication with clients.(III) Main driving forces for growthThe Company is committed to the overall development strategy of “new-type basic platform andlarge-scale new tracks” continuously enhancing innovation-driven efforts optimising industrial
layouts promoting changes in marketing models advancing management improvements and
vigorously exploring segmented market fields. Since 2021 the Company has successively acquired
Liaowang Auto Lamp NationStar Optoelectronics and Hule Electrical Equipment significantly
enhancing its competitiveness in the automotive lighting and marine lighting sectors. At the same
time the integration of upstream and downstream resources along the LED industry chain has
provided solid support for the Company’s rapid expansion.With the evolution of the industrial competition model consumers are getting increasingly concerned
with product quality and brand. As a result lighting companies with insufficient competitiveness will
be gradually elbowed out of the market while enterprises with core competitiveness will have more
market opportunities. Capitalising on advantages in technology brand channels and scale the
Company continuously launches high-tech-content new products through sustained R&D investment
and technology innovation advancing the technological upgrade and quality improvement of main
products. Simultaneously the Company is intensifying market exploration efforts optimising
industrial layouts increasing production automation and digital management levels effectively
controlling procurement costs and improving production efficiency. These initiatives have enabled
the Company to secure a favorable position amid increasing market concentration further
strengthening its market competitiveness.III Core Competitiveness Analysis
The Company has been dedicated to the R&D manufacturing and sale of lighting products since its
establishment. Through continuous investment in R&D and innovation branding channel
development as well as vertical integration of the industrial chain the core competitiveness of the
Company has been further strengthened which is mainly reflected in the following aspects:
R&D technical advantage
As a National High-Tech Enterprise a National Intellectual Property Demonstration Enterprise a
Guangdong Manufacturing Champion Demonstration Enterprise one of the Top 100 Innovative
Enterprises in Guangdong Province and one of the Top 100 Manufacturing Enterprises in Guangdong
Province the Company possesses outstanding innovation capabilities and technological strength. The
Company’s testing center is accredited by the China National Accreditation Service for Conformity
Assessment (CNAS) enabling it to provide authoritative certification for product quality. In addition
the Company and its subsidiaries have established 31 research and development platforms including
14Foshan Electrical
the “Guangdong Provincial Enterprise Technology Centre” “Guangdong Provincial DoctoralWorkstation” “Guangdong Provincial Science and Technology Expert Workstation” “PostdoctoralResearch Station (Branch Station)” “Guangdong Provincial Engineering Technology Research andDevelopment Centre for Electric Light Sources” and the “Guangdong Provincial Industrial DesignCentre.” The Company has undertaken several key scientific and technological projects includingthe National Key R&D Program “Marine Agriculture and Freshwater Fisheries TechnologyInnovation” and Hainan Province “Land-Sea-Air” Technology Special Project. The Company has
received numerous honors including the First Prize for Scientific and Technological Progress in
China’s Machinery Industry the Second Prize of the China Invention and Entrepreneurship
Achievement Award the Third Prize for Scientific and Technological Progress from the China
National Light Industry Council the Gold Award at the National Age-friendly Design Competition
and the Taiwan Golden Pin Design Award. Barriers with independent intellectual property have been
established in numerous fields such as optics spectroscopy electronics IoT and AI. The Company
and its subsidiaries have cumulatively obtained over 2600 authorized valid patents and led or
participated in formulating more than 250 standards at international national and industry levels. By
actively integrating internal and external resources the Company has collaborated in-depth with
renowned universities and research institutes such as Tsinghua University Fudan University Hong
Kong University of Science and Technology Wuhan University Dalian Ocean University the
Chinese Academy of Sciences’ Institute of Deep-sea Science and Engineering and the Ji Hua
Laboratory in industry-university-research partnerships. This has led to significant technological
breakthroughs and technological achievement transformations spurring innovations in frontier
technology fields establishing efficient R&D talent development channels and providing firm
support for maintaining the Company’s technological leadership and ongoing product innovation.Liaowang Auto Lamp boasts a provincial enterprise technology centre a provincial R&D centre and
a Guangxi automotive lighting parts engineering technology research centre; and established the
Automotive Lighting Research Institute and multiple R&D centres. In recent yearsLiaowang Auto
Lamp has increased R&D Investment accelerated investment in various lens modules and interactive
signal lamp technologies and continuously enhanced its R&D strength. NationStar Optoelectronics
has created 14 research platforms at or above provincial and ministerial level including the
Postdoctoral Research Station and the National- and local-joint Engineering Laboratory for
Semiconductor Lighting Materials and Components. It has undertaken over 30 national research
projects such as the national “863” programme and the key national R&D programme in addition to
more than 100 provincial and ministerial research projects. Besides it has won multiple honors such
as “National Intellectual Property Demonstration Enterprise” “China Patent Gold Award” “NationalScience and Technology Progress Award (first/second prize)” as well as “GG Golden Globe Award”.Moreover it has constantly made breakthroughs and surmounted technological challenges in
emerging areas such as Mini/Micro LED third-generation semiconductor SiC power devices and
GaN devices smart health sensors automotive components and new optoelectronic components.Brand advantage
As a national brand with 67 years of deep cultivation in the lighting industry the Company wasrecognised in 2024 by the Ministry of Commerce and four other ministries as a “China Time-honoredBrand” and was selected as one of the “Top Ten Cases of Innovation for China Time-honored Brands”
by the Ministry of Commerce. The Company’s brand influence and value have continued to grow
having been listed among the “Top 500 Most Valuable Chinese Brands” for 19 consecutive years. In
2024 with a brand value of RMB39382 million the Company rose to second place in the industry
and made its debut on the “Asia’s 500 Most Influential Brands” list. By aligning improvements in
corporate development positioning product design and user experience the Company has reshaped
its corporate value system and refined its “Technology-FSL” brand strategy successfully completingthe launch of a renewed and upgraded brand image. Centring on a new brand image of “youth
15Foshan Electrical
technology fashion” the Company implemented a multidimensional communication strategy.Offline efforts included illuminating the Canton Tower sponsoring the “Pearl River Cruise”
university industrial design competitions and major traditional cultural events such as Crossing the
Tongji Bridge as well as launching the “Millions Renewal Action” and participating in international
automotive lighting exhibitions and other professional events at home and abroad. Online the
Company released creative promotional videos such as Couples Watching Lights and leveraged
official and new media platforms—including Xinhua News Agency and South-plus—to share
compelling “FSL stories” behind major national projects such as the Shenzhen–Zhongshan Link the
Huangmaohai Sea-Crossing Passage and Harbin Ice —Snow World. These efforts have accelerated
the transformation of FSL from an industry brand into a mainstream consumer brand breathing new
life into this time-honored enterprise. The brand “FSL” has become one of the most influential and
popular industrial brands in China and the powerful brand influence has played a key role in driving
the sustained growth of the Company’s sales. Liaowang Auto Lamp strictly abides by the national
industry standards when producing automotive lights of the “Liaowang” brand. It has been hailed as
a high-quality supplier of related automobile enterprises several times. NationStar Optoelectronics
actively participates in various important industry exhibitions and forums and has earned high
recognition both within and outside the industry through its profound professional background and
active engagement. As a result it has received honors such as “Brand Power” and “Top Ten LEDPackaging Brands” continually enhancing its professional image brand awareness and reputation.Channel advantage
The Company has been sticking to the market strategy of deeply cultivating and refining channels.Over years of development and experience the Company has been equipped with four major sales
channels in domestic market (household commerce and e-commerce channels) forming a marketing
network covering the whole country; in foreign market the Company has made active steps to
develop international market business sold products to more than 120 countries and regions in North
America Europe Southeast Asia Africa and Oceania and kept improving overseas sales channel.By virtue of its powerful and comprehensive sales channels the Company has enabled its products
to enter market rapidly substantially enhancing its market development abilities and competitiveness.Liaowang Auto Lamp is a major manufacturer in the Chinese automotive light industry. It has
accumulated stable whole-automobile manufacturing clients and has been developing customers of
medium- and high-end and new energy vehicle makers. Its client entities are increasingly diverse.NationStar Optoelectronics has an excellent client structure. It has established a long-term
cooperative relationship with industry-leading display manufacturers and internationally famous
home appliance enterprises has successfully showcased its products in many large events and high-
end venues at home and abroad and is widely recognized by end clients and the market. Hule
Electrical Equipment is one of the major manufacturers in the ship lighting industry in China and has
established long-term cooperative relationships with large domestic shipbuilding enterprises. The
quality and satisfaction of its products are widely recognised by the market.Scale advantage
As one of the enterprises to first step into the industry of producing and selling lighting products the
Company forms a capability of mass manufacturing by years of experience accumulation. After years
of continuous investment the Company has greatly improved its production automation level. The
large-scale and centralized production brings obvious economic benefits to the Company which not
only shows in manufacture cost of products but also shows in aspects such as raw material
procurement and price negotiation. Liaowang Auto Lamp has production bases in Liuzhou
Chongqing Qingdao Suzhou and Indonesia with the capacity to produce over five million sets of
auto lamps annually. NationStar Optoelectronics began engaging in LED packaging in 1976. It is
16Foshan Electrical
included in the first batch of enterprises that have produced LED products and the first Chinese
enterprise to go public with LED packaging as its principal business. Besides it is one of the largest
LED manufacturing enterprise in China. Hule Electrical Equipment is an important domestic
manufacturer of ship lighting fixtures having been deeply rooted in the industry for many years. It is
one of the leading companies in the domestic ship lighting fixture industry.Advantage of a vertical and integrated LED industrial chain
The Company achieved full coverage of the LED industry chain by holding equity in NationStar
Optoelectronics including upstream LED chips manufacturing midstream LED packaging and
downstream LED application products. This optimisation of the industry chain further enhances the
Company’s competitiveness and influence in the industry.IV Analysis of Principal Operations
1. Overview
In 2024 guided by its long-term development strategy and annual operational goals the Companyadopted the business policy of “strengthening foundations promoting transformation preventingrisks and reaching new heights.” It advanced with a dual-engine approach comprising the
implementation of the “Climbing Plan” for business operations and the “Industrial Leap Plan” for
developing new quality productive forces. The Company remained committed to winning five key
battles: market expansion cost reduction and efficiency improvement asset revitalisation risk
prevention and control and investment and acquisition. Despite external challenges the Company
forged ahead with resilience achieving steady improvement in overall operations characterised by
enhanced stability progress and quality. In 2024 the Company achieved operating revenue of RMB
9.048 billion maintaining a stable revenue scale. Net profit attributable to shareholders of the listed
company reached RMB 446 million representing a year-on-year increase of 53.67%.During the Reporting Period the Company carried out the following key initiatives:
(1) Market expansion was refined achieving multiple breakthroughs across business segments.
First through channel optimisation efforts the Company launched specialised market expansion
campaigns such as the “Spring Thunder” initiative. It also implemented a new retail strategy via the
Douyin local lifestyle platform and formed a “Special Task Force” to support distributors in
expanding sales networks and strengthening terminal presence thereby enhancing their operational
capabilities. Second the Company launched an initiative to enhance its engineering business. It was
newly registered as a supplier with 47 leading real estate developers and large-scale chain enterprises
and added 30 design companies to its client database. The Company won bids for multiple lighting
procurement projects each exceeding RMB1 million and successfully completed lighting projects for
two national key infrastructure initiatives—the Shenzhen–Zhongshan Link and the Huangmaohai
Sea-Crossing Passage—significantly boosting its engineering business performance and brand
influence. Third the Company carried out an e-commerce channel upgrade initiative. It launched a
series of livestream sales promotions such as the “CEO Price Drop” campaign creating popular
online products through content innovation and product optimisation. As a result e-commerce
business revenue increased by 35.70% year-on-year. Fourth the Company launched an overseas
expansion initiative. It entered seven previously untapped national markets developed 46 new
overseas clients and won the bid for the lighting project of Cambodia’s national airport marking a
breakthrough in overseas engineering projects. Fifth the Company implemented a key business
breakthrough initiative. In the vehicle lighting segment it developed nine new clients among mid- to
high-end automakers launched 15 new vehicle model projects and secured 22 new LED vehicle
lighting module projects. Additionally it obtained designation for a controller project marking a
17Foshan Electrical
breakthrough in the automotive electronics field. Revenue from the vehicle lighting business grew by
15.13% year-on-year. In the marine lighting segment the Company successfully delivered lighting
systems for the Fishery Machine No.1 and Sea Tower No.1 Marine Ranch Projects. It also completed
a comprehensive upgrade of the deep-sea lighting system for China’s manned submersible “Jiaolong”
enhancing its underwater detection range and precision target search capabilities. In the packaging
device segment automotive LED products entered the supply chains of high-selling new energy
vehicles. Intelligent sensing devices became part of the supplier network for internationally renowned
brands. Revenue from Mini LED backlight modules doubled year-on-year and significant progress
was made in the market promotion of ultra-thin display modules.
(2) Innovation-driven capability was enhanced and transformation of scientific and
technological achievements was accelerated.First the Company upgraded its R&D system and strengthened its R&D platforms. In line with the
positioning of “external resource integration and internal empowerment synergy” the former R&D
Department was upgraded to the Lighting Research Institute establishing a three-tiered technical
framework encompassing products platforms and technologies. The Company also unveiled the
New Quality Productive Forces Research Center and added three new municipal-level R&D
platforms including the Foshan Key Laboratory for Marine Optical Core Technologies. As of the
end of the Reporting Period the Company had a total of five CNAS Certified laboratory 31 R&D
platforms and ten specialized refined distinctive innovative enterprises. Second the Company
strengthened its market orientation to develop innovative products. The Company planned product
series targeting age-friendly healthy and smart living needs launching innovations such as an age-
friendly smart home system its first medical device—the Eye Accommodation Training Lamp—
along with the Shadow-Soft Low-Position Desk Lamp and an HD High-Pixel Projection Interactive
Module. It also carried out iterative upgrades of popular products including panel lights downlights
and floodlights. Third the Company built a reserve of platform technologies and advanced its patent
and standards strategy. Focusing on 11 technological areas—including new materials intelligent
sensing optical spectroscopy and offline voice technology—the Company advanced core
capabilities through independent innovation and strengthened collaboration with universities and
research institutes. These efforts resulted in the output of 40 core technologies and a series of
breakthroughs in fields such as human–vehicle interaction and automotive electronics. Over the year
the Company was granted 487 patents and released 15 standards at various levels. It led the
formulation of the Technical Specification for Photocatalytic Air-Purification Lighting Products
filling a gap in the industry and participated in drafting China’s first group standard for vehicle light
information interaction system. Two corporate standards received the “Leader” certification. The
RS2727MWAT high-definition display device was named “Influential Product of the Year” by the
Aurora Awards. In addition the jointly developed project Key Technologies for Photothermal
Coupling Design and Packaging of Micro-Architecture Semiconductor Light-Emitting Devices
received the First Prize of Guangdong Science and Technology Progress Award.
(3) Investment and M&A drived momentum and industrial layout was optimised.
The Company continued to optimise the industrial layout through investment and acquisitions with
a focus on enhancing the quality of development of the listed company. We have made breakthroughs
in sports lighting by investing in the establishment of Huaguang Company and an industrial base
focusing on and prioritising the development of our sports lighting business. In the automotive
lighting sector we have strengthened the industrial chain by investing in the construction of the
Liaowang Auto Lighting production base in Suzhou expanding production capacity accelerating
business development with original equipment manufacturers in the Yangtze River Delta and
upgrading our product portfolio toward the mid-to-high-end market. In the marine lighting segment
18Foshan Electrical
we extended the value chain by successfully acquiring Hule Electrical Equipment a ship lighting
company further solidifying and strengthening our marine lighting business. In the airport runway
lighting sector we addressed gaps in the value chain by partnering with a subsidiary of Guangdong
Airport Group to increase capital and acquire a controlling stake in Beijing Hangxin. Leveraging the
combined strengths of the three shareholders in capital market and technology we are cultivating a
new growth driver in airport runway lighting.
(4) Internal potential was unlocked and quality was enhanced through multi-pronged efforts to
drive efficiency gains.We adopted a dual approach of increasing revenue and reducing expenditures targeting key areas to
implement “subtraction” strategies for cost reduction while tapping into potential growth points to
apply “addition” strategies for quality and efficiency enhancement. First we pursued cost reductionand efficiency enhancement to the greatest extent. We introduced for the first time a “projectmanager” accountability system and established 15 dedicated cost-reduction task forces covering all
departments business units and subsidiaries. These task forces developed comprehensive cost-
cutting measures across R&D procurement production processes and management deeply tapping
into potential across the entire workforce and value chain. Second we enhanced efficiency through
digital and intelligent transformation. We advanced the development of financial shared services a
centralised marketing platform warehouse management systems and human resources information
platforms streamlining and optimising both online and offline processes. We also upgraded and
transformed production lines at our manufacturing bases in Gaoming Chongqing and Liuzhou
achieving an increase in production efficiency of over 10%. Third we revitalised assets to enhance
efficiency. We made every effort to complete the acquisition listing and successful transfer of the
southern parcel of the Fenjiang North Road site. We also formulated tailored revitalisation plans for
each idle property and factory building thereby increasing the Company’s revenue.
2. Revenue and Cost Analysis
(1) Operating Revenue Composition
Unit: RMB
20242023
As % of total As % of total Change
Operating revenue operating Operating revenue operating (%)
revenue (%) revenue (%)
Total 9048237647.14 100% 9057292003.90 100% -0.10%
By operating division
Lighting products
5498230129.5160.77%5372636104.7359.32%2.34%
and luminaries
Electronic
component 2709267008.01 29.94% 2720580207.91 30.04% -0.42%
manufacturing
Export trade and -
840740509.629.29%964075691.2610.64%
other 12.79%
By product category
General lighting
3226311712.8335.66%3329722911.7836.76%-3.11%
products
LED packaging and
component 2467584592.15 27.27% 2497194527.32 27.57% -1.19%
products
Vehicle lamp
2107363678.8823.29%1830397791.0120.21%15.13%
products
Trade and other 1246977663.28 13.78% 1399976773.79 15.46% -
19Foshan Electrical
20242023
As % of total As % of total Change
Operating revenue operating Operating revenue operating (%)
revenue (%) revenue (%)
products 10.93%
By operating segment
Domestic 7069352913.60 78.13% 7028294952.48 77.60% 0.58%
Overseas 1978884733.54 21.87% 2028997051.42 22.40% -2.47%
By sales model
Distribution 3235221661.38 35.76% 3428904093.13 37.86% -5.65%
Other 5813015985.76 64.24% 5628387910.77 62.14% 3.28%
(2) Operating Division Product Category Operating Segment and Distribution Model
Contributing over 10% of Operating Revenue or Operating Profit
□Applicable □ Not applicable
Unit: RMB
YoY YoY
YoY
change change in
Gross change
in gross
Operating revenue Cost of sales profit in cost
operating profit
margin of sales
revenue margin
(%)
(%)(%)
By operating division
Lighting products
5498230129.514264055887.7322.45%2.34%2.39%-0.03%
and luminaries
Electronic
component 2709267008.01 2334427988.29 13.84% -0.42% 0.85% -1.08%
manufacturing
Export trade and - -
840740509.62769067025.478.53%0.99%
other 12.79% 13.72%
By product category
General lighting
3226311712.832395182567.2625.76%-3.11%-4.04%0.73%
products
LED packaging
and component 2467584592.15 2056558519.16 16.66% -1.19% 0.63% -1.50%
products
Vehicle lamp
2107363678.881749368441.5616.99%15.13%15.49%-0.26%
products
Trade and other - -
1246977663.281166441373.516.46%0.47%
products 10.93% 11.37%
By operating segment
Domestic 7069352913.60 5688104522.61 19.54% 0.58% 1.46% -0.69%
Overseas 1978884733.54 1679446378.88 15.13% -2.47% -4.80% 2.08%
By sales model
Distribution 3235221661.38 2398022891.26 25.88% -5.65% -6.47% 0.66%
Other 5813015985.76 4969528010.23 14.51% 3.28% 3.39% -0.09%
Core business data of the prior year restated according to the changed statistical caliber for the
Reporting Period:
□Applicable □Not applicable
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□Yes □ No
20Foshan Electrical
Operating division Item Unit 2024 2023 Change (%)
Unit sales Piece 713224733 714617415 -0.19%
Lighting products and
Output Piece 718889546 721393924 -0.35%
luminaries
Inventory Piece 121400783 115735970 4.89%
0000
Unit sales 15692588 18219061 -13.87%
pieces
Electronic component 0000
Output 15693050 18815038 -16.59%
manufacturing pieces
0000
Inventory 3505239 3504777 0.01%
pieces
Any over 30% YoY movements in the data above and why:
□Applicable □Not applicable
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□Applicable □Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category
20242023
Operating As % of As % of Change
Item
division Cost of sales total cost of Cost of sales total cost of (%)
sales (%) sales (%)
Lighting
products and Raw materials 3438364079.35 46.67% 3316446132.22 44.99% 3.68%
luminaries
Lighting
products and Labor cost 428258110.88 5.81% 468703890.32 6.36% -8.63%
luminaries
Lighting
Depreciation
products and 397433697.50 5.39% 379493981.91 5.15% 4.73%
and other
luminaries
Electronic
component Raw materials 1654069012.61 22.45% 1600633606.20 21.72% 3.34%
manufacturing
Electronic
component Labor cost 157574627.02 2.14% 147593047.13 2.00% 6.76%
manufacturing
Electronic
Manufacturing
component 522784348.66 7.10% 566483112.02 7.69% -7.71%
costs
manufacturing
-
Trade Other 592011916.96 8.04% 685583656.16 9.30%
13.65%
Other -
Other 177055108.51 2.40% 205805258.67 2.79%
operations 13.97%
Total 7367550901.49 100.00% 7370742684.63 100.00% -0.04%
Unit: RMB
Unit: RMB
21Foshan Electrical
20242023
Product As % of total As % of total Change
Item
category Amount cost of sales Amount cost of sales (%)
(%)(%)
General
Raw
lighting 1928152601.20 26.17% 1990393132.24 27.00% -3.13%
materials
products
General
lighting Labor cost 263720327.80 3.58% 288182082.50 3.91% -8.49%
products
General
Depreciation
lighting 203309638.26 2.76% 217552399.74 2.95% -6.55%
and other
products
General
lighting Subtotal 2395182567.26 32.51% 2496127614.48 33.87% -4.04%
products
Vehicle
Raw
lamp 1403947879.47 19.06% 1189156564.20 16.13% 18.06%
materials
products
Vehicle
lamp Labor cost 158140979.51 2.15% 172159579.91 2.34% -8.14%
products
Vehicle
Depreciation
lamp 187279582.58 2.54% 153397384.38 2.08% 22.09%
and other
products
Vehicle
lamp Subtotal 1749368441.56 23.75% 1514713528.49 20.55% 15.49%
products
LED
packaging
Raw
and 1504607255.48 20.42% 1460582341.01 19.82% 3.01%
materials
component
products
LED
packaging
and Labor cost 129901398.23 1.76% 122206881.33 1.66% 6.30%
component
products
LED
packaging
Depreciation
and 422049865.45 5.73% 460990948.10 6.25% -8.45%
and other
component
products
LED
packaging
and Subtotal 2056558519.16 27.91% 2043780170.44 27.73% 0.63%
component
products
Trade and
Raw -
other 847737272.77 11.51% 962531357.13 13.06%
materials 11.93%
products
Trade and
other Labor cost 34070032.36 0.46% 33748393.71 0.46% 0.95%
products
Trade and
Depreciation
other 107578959.87 1.46% 114036361.71 1.55% -5.66%
and other
products
22Foshan Electrical
20242023
Product As % of total As % of total Change
Item
category Amount cost of sales Amount cost of sales (%)
(%)(%)
Trade and
-
other Subtotal 989386265.00 13.43% 1110316112.55 15.06%
10.89%
products
Other -
Other 177055108.51 2.40% 205805258.67 2.79%
operations 13.97%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□Yes □ No
For details see “IX Changes to the Consolidation Scope” in “Part X Financial Statements” of this
Report.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□Applicable □Not applicable
(8) Major Customers and Suppliers
Major customers:
Total sales to top five customers (RMB) 2123894526.75
Total sales to top five customers as % of total sales of
23.47%
the Reporting Period (%)
Total sales to related parties among top five customers
0.00%
as % of total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed
As % of total sales
No. Customer for the Reporting Period
revenue (%)
(RMB)
1 No. 1 587650326.48 6.49%
2 No. 2 519907004.99 5.75%
3 No. 3 406512491.87 4.49%
4 No. 4 355474909.33 3.93%
5 No. 5 254349794.08 2.81%
Total -- 2123894526.75 23.47%
Other information about major customers:
□Applicable □ Not applicable
None of the top five customers is a related party of the Company.Major suppliers:
Total purchases from top five suppliers (RMB) 622645839.60
Total purchases from top five suppliers as % of total
10.06%
purchases of the Reporting Period (%)
Total purchases from related parties among top five
suppliers as % of total purchases of the Reporting 0.00%
Period (%)
Information about top five suppliers:
23Foshan Electrical
Purchase in the Reporting As % of total purchases
No. Supplier
Period (RMB) (%)
1 No. 1 214518024.12 3.47%
2 No. 2 112857486.25 1.82%
3 No. 3 107393512.31 1.74%
4 No. 4 95568469.93 1.54%
5 No. 5 92308346.99 1.49%
Total -- 622645839.60 10.06%
Other information about major suppliers:
□Applicable □ Not applicable
None of the top five suppliers is a related party of the Company.
3. Expense
Unit: RMB
Main reason for any
2024 2023 Change (%)
significant change
Selling expense 349356200.73 315111171.93 10.87%
Administrative
484757347.38430544371.9612.59%
expense
This was primarily due to
Finance costs -55499247.20 -32498749.52 -70.77% exchange rate fluctuations
during the Reporting Period.R&D expense 548670366.07 483579093.81 13.46%
4. R&D Investments
□Applicable □ Not applicable
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
By overcoming key
technologies in multi-optical
This project aims to develop a new combination design we plan
Development of
type of anti-glare eye-friendly to develope a lighting
a New Anti-
high color rendering index angle- product that integrates high
Glare Eye- The project will
adjustable LED downlight. By color rendering anti-glare
Friendly High Trial improve product
using high color rendering COB performance and flexible
Color Rendering production quality and market
light sources to simulate the effect adjustability providing
Index Angle- share.of natural sunlight the product users with a more
Adjustable LED
effectively reduces eye irritation comfortable
Downlight
and enhances visual comfort. environmentally friendly
and healthy lighting
environment.Development of By integrating modern
a Self- information technology It is planned to reducing
The project will
Organising automation control technology energy consumption and
expand our smart
Network-Based and energy-saving technology carbon emissions while
lighting product line
Lighting System this project aims to develope a In progress improving the management
and further
Integrated with new type of smart lighting system efficiency of the lighting
developing the smart
the Internet of that supports the construction of a system and enhancing the
lighting market.Things and Its green smart and sustainable user experience.Application in society
24Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
Smart Lighting
Fixtures
The existing solar streetlights We aim to develop a highly
generally exhibit low conversion efficient control system that
efficiency when photovoltaic meets the requirements of
panels charge internal storage reliability energy
Development of batteries. To achieve a certain efficiency and performance The project will
an Intelligent level of illuminance and lighting for solar-powered road enhance the
and Efficient duration larger photovoltaic Trial lighting. By integrating Company’s market
Solar Streetlight panels and storage batteries are production sensors and connecting the competitiveness in
Driver Power required which increases material lighting control system to solar-powered road
Supply costs. In response to this situation the Internet of Things the lighting.this project focuses on the solution enables demand-
development of an intelligent and based lighting and enhances
efficient driver power supply for the efficiency of streetlight
solar streetlights. operation and maintenance.The project will
This project aims to develop a slim
Development of expand market share
tri-proof light based on a sealed
a Slim Tri-Proof We aim to achieve in industrial
waterproof design to meet the
Light Based on Trial comprehensive upgrades in transportation and
growing market demand for
Sealed production waterproof rating lighting other sectors and
improved form performance and
Waterproof efficiency and service life. enhancing overall
reliability in tri-proof lighting
Design market
solutions.competitiveness.This project aims to address
Underwater lighting fixtures
common key technical issues
Study on the designed for different depths The project will
faced during the industrialisation
Structure of can achieve high cost- provide customised
and deployment of marine lighting
Full-Ocean- effectiveness and reliability. solutions to enhance
and related technological Trial
Depth Pressure- Since the pressure resistance the Company’s
equipment. It focuses on production
Resistant varies with depth different market
developing underwater lighting
Lighting design solutions are competitiveness in
fixtures tailored to different water
Fixtures employed for each specific marine lighting.depths and application scenarios
depth.meeting custom requirements.The project focuses on
This project aims to carry out the researching the optimal
research and demonstration of spectrum lighting cycles
LED lighting technology and and other lighting
specialized fixtures for sea parameters for the growth of
Development
cucumber farming. It focuses on sea cucumber seedlings and
and
studying key lighting parameters juvenile sea cucumbers
Demonstration The project will
such as optimal spectrum and (with Liaoning sea
of LED Lighting enhance the
lighting cycles for the growth cucumber as the
Technology and In progress Company’s market
stages of sea cucumber seedlings representative species). It
Specialised competitiveness in
and juvenile sea cucumbers with also aims to develop
Fixtures for Sea aquaculture lighting.a particular emphasis on the corresponding lighting
Cucumber
Liaoning sea cucumber species. fixtures to promote
Farming
The goal is to optimise lighting increased production and
conditions to improve the income in sea cucumber
efficiency and quality of sea farming and facilitate the
cucumber farming. widespread application of
the technology.Development of This project focuses on research In progress This project aims to provide The project will
25Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
Deep-Sea into the water-sealing and a series of lighting products enhance the
Lighting corrosion-resistant technology for for deep-sea exploration Company’s
Fixtures and deep-sea lighting products. It aims equipment accelerating the technological
Their Semi- to break through the technical domestic development and strength in deep-sea
Automated barriers of deep-sea pressure- application of deep-sea lighting and
Manufacturing resistant packaging and lighting products. increasing market
Process environmental reliability share.developing reliable easy-to-
maintain deep-sea lighting
products with high brightness
uniform illumination and a high
color rendering index.This project aims to develop an
By using artificial light
Development of efficient artificial light microalgae The project will
sources and intelligent
an Efficient (fungi) intelligent cultivation enhance the
control the project aims to
Artificial Light system through the development Company’s
achieve high conversion
Microalgae of high-efficiency lighting technological
In progress efficiency from electricity to
(Fungi) fixtures high light energy strength in
light and from light to algae
Intelligent utilisation in the microalgae aquaculture lighting
(+fungi) providing support
Cultivation (fungi) cultivation process and and increasing
for industrial-scale
System intelligent cultivation in revenue and profits.promotion.photobioreactors.This project undertakes the
research and development task ofthe sub-topic “Development andDirected Application of High-Efficiency The project will
Aggregation and Fish Luring Lights and Control enhance the
Intelligent Systems for Deep-Sea Fisheries in This project aims to develop Company’sEquipment the South China Sea” as part of fish aggregation lamps for technological
In progress
Technology for the national key R&D programme. aquatic environments to strength in fish
Deep-Sea It also collaborates in the support industrialisation. aggregation lighting
Fishery integration and application to support
Resources demonstration of new deep-sea industrialisation.fishery resource capture
technologies in the South China
Sea.The project will
The project aims to conduct enhance the
research and development of new Company’s market
Innovative technologies in the field of It is planned to achieve mass competitiveness
Projection Series interactive lighting with a focus production of the product support the
In progress
Lighting on building technical reserves for and complete verification of Company in seizing
Fixtures high-definition colour projection production stability. first-mover
and achieving scalable mass advantages and
production. drive business
growth.The project will
The project aims to upgrade and It is planned to enhance the
enhance the
Digital iterate interactive display luminous performance with
Company’s market
Interactive technology transitioning from a particular focus on
In progress competitiveness
Lighting System white light to red light display improving emission
support the
II thereby expanding application precision brightness and
Company in seizing
scenarios and usage scope. colour saturation.first-mover
26Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
advantages and
drive business
growth.This project aims to develop an
The project will
innovative aerial virtual imaging
create a new
system focusing on cutting-edge It is planned to develop core
Innovative category of product
technological breakthroughs in the products in imaging optics
Aerial Virtual In progress orders for the
field of interactive display and to to ensure a leading
Imaging System Company thereby
develop core imaging optics technological position.expanding our
products to secure a leading
business operations.position in the industry.This project aims to carry out
The project will
research and industrialisation of
drive continuous
MDL intelligent interactive
Research and innovation to
display technology with a focus
Industrialisation It is planned to maintain consolidate the
on continuous innovation and
of MDL annual upgrades of MDL Company’s leading
breakthroughs in interactive
Intelligent In progress technology and achieve position increase
display technologies. It will
Interactive year-on-year application in market share and
enhance product performance and
Display mass production. promote business
market competitiveness through a
Technology growth and
phased approach to technology
sustainable
research and development and
development.iterative mass production.This project aims to develop a The project will
It is planned to develop in-
concealed smart lighting system in enhance the
Concealed house capabilities for the
response to the increasingly Company’s market
Smart Lighting In progress optical-mechanical-
intense competition and product competitiveness and
System electrical-thermal system of
homogenisation in the automotive drive business
the technology.lighting market. growth.This project aims to align with the
market trend of LED luminaries Through the integration of
Research on
shifting from replacing energy- intelligent modules lighting
Intelligent
saving lamps to more refined and fixtures can be networked
Control The project will
intelligent solutions. It focuses on and their functions
Technology for support the
research into intelligent control customised enabling
LED Lighting Trial Company in
technology for LED luminaries seamless incorporation into
and Its production capturing market
and its application in smart home smart home systems and
Application in share and enhancing
lighting fixtures addressing the thereby achieving
Smart Home brand influence.core trend of LED luminaries personalised customised
Lighting
evolving from a single-function and systematised lighting
Fixtures
light source to an intelligent and solutions.integrated system.With the advantages of high This project aims to satisfy
efficiency energy conservation the major demand for large-
The Research on
active luminescence and ultra- screen 4K/8K UHD display
Full-colour and The project is of vital
high resolution Micro-LED from national policies and
Integrated importance in terms
stands out from an array of novel social development. In
Packaging of Trial of promoting the
display technologies and has combination with the main
Micro-LED production localization of
become a focus in novel development trend of full-
Display with China’s LED display
technology competitions. This colour Micro-LED display
High Brightness industry chain.project aims to satisfy the major at home and abroad we will
and Contrast
demand for large-screen 4K/8K overcome the core
UHD display from national technology bottleneck of the
27Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
policies and social development. industry such as full-colour
In combination with the main packaging technology and
development trend of full-colour develop high-brightness and
Micro-LED display at home and high-contrast Micro-LED
abroad we will overcome the core display devices and modules
technology bottleneck of the that meet the market demand
industry such as full-colour for better interactivity and
packaging technology and display performance. By
develop high-brightness and high- doing so the development of
contrast Micro-LED display upstream and downstream
devices and modules that meet the industries of the industry
market demand for better chain will be boosted and
interactivity and display China’s dominant position
performance. in display applications will
be further consolidated.The core technology of UHD
display represented by In this project we will
Micro/Mini-LED devices is still develop high performance
monopolised by Samsung of Mini/Micro-LED display
South Korea Apple of the US devices and display modules
Sony of Japan and other by researching technical
international giants. problems such as high
Manufacturers in the province density IMD Mini/Micro-
The Research on
need to pay high royalties to LED integrated packaging
the Key
engage in the business which technology high
Technology of
seriously constrains the strategic compatibility pixel cutout The Company’s
4K/8K Full-
transformation of the LED Trial manufacturing technology dominant position in
color Micro-
industry in Guangdong Province. production of Mini/Micro-LED display display applications
LED Displays
Therefore to vigorously develop devices and mass transfer will be consolidated.with Ultra High
the UHD video display industry technology of Micro-LED
Definition
the key solutions are to break chips. Related technology
(UHD)
through the bottleneck of will be developed to remove
Micro/Mini-LED device the blockade of international
technology and motivate the giants fill the gap of local
transformation and upgrading of high-end applications and
UHD display in the LED industry achieve the efficient and
so as to secure the internationally rapid 4K/8K development
advanced technology status of the for the HD display.province’s LED display.Agriculture is the core of the This project aims to develop Plant Lighting: The
farming industry and the an LED technology system project will support
cornerstone of national food for efficient cultivation in the demonstration
LED
security. The cultivation of high- modern agriculture through application of the
Technology for
value crops serves as an important research on efficient LED Company’s plant
Efficient
industrial foundation for rural epitaxial regulation for lighting products in
Cultivation in
revitalization. LED plant lighting Trial modern agricultural high-value crops.Modern
is a new technology that has production cultivation design and Ultraviolet
Agriculture and
emerged with the development of fabrication processes of high Products: The
Its
modern agricultural production light efficiency LED chips project will support
Demonstrative
methods and semiconductor as well as design and the demonstration
Application
lighting technology. It has been packaging processes of high application of the
recognised domestically and light efficiency LED Company’s deep
internationally as an important devices. The goal is to ultraviolet products
28Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
direction for the emerging high- provide chip and device in the field of public
tech industry in agriculture. support for the disinfection and
However the development of manufacturing of hygiene.LED plant lighting technology in specialised LED luminary
our country started relatively late systems dedicated to
and there is a gap in technological efficient cultivation in
level compared to leading modern agriculture
international companies. To meet promoting the advancement
the industrial demand to improve of LED plant lighting
light efficiency and reduce energy technology in our country to
consumption in LED plant reach an international
lighting as well as the leading level.physiological requirements of
high light efficiency during crop
breeding processes an LED
technology system for efficient
cultivation in modern agriculture
will be developed to promote the
industrial application of LED
technology in crop breeding and
the efficient production of high-
value crops thereby driving the
high-quality development of smart
agriculture.Deep ultraviolet LED is a
This project aims to develop
preferred alternative to traditional
a low thermal resistance and
mercury lamps for disinfection
highly reliable universal
and sterilization due to its efficient
deep ultraviolet (UV) LED
virus and bacteria-killing abilities
light source for pathogen
as well as its safety environmental
disinfection addressing the
friendliness and free of secondary
technological and market
pollution. With the improvement
demands of deep UV LED
of deep ultraviolet LED
virus inactivation. It
performance there is great
The integrates intelligent
potential for implementing deep
Development identification and driving This project will
ultraviolet LED applications in
and Application control technologies tailored drive the upgrading
pathogen inactivation in public
Demonstration to specific application and development of
health and logistics sectors. This
of Deep Trial scenarios. The project also industries related to
project aims to promote the
Ultraviolet LED production involves the application of public disinfection
integration between the public
Modules and pathogen disinfection using deep
health safety sector and the deep
Equipment for equipment in the field of ultraviolet
ultraviolet LED industry by
Public Health public health driving the technology.conducting research on high-
and Other Fields upgrading and development
security and intelligent deep
of industries related to
ultraviolet LED disinfection
public disinfection. Its goal
equipment and system solutions
is to effectively prevent
for the public health domain. It
control and eliminate the
strives to drive the large-scale
hazards of sudden public
application of purification and
health emergencies
disinfection in the public health
ensuring the physical well-
and logistics sectors in China
being and safety of the
contributing to the safeguarding of
public.national public health security.
29Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
As LED technology continues to This project leverages its
advance and the miniaturisation of technological advantages in
LED sizes further develops it display packaging to further
brings new vitality to the display break through the
industry with emerging display performance limitations of
technologies such as small-pitch LED display devices and
LED displays Mini LED displays optimise the packaging
Research and
and Micro LED displays taking processes of display
Application of
the stage one after another. Based modules to improve their
Key
on the new opportunities created utilisation. It aims to The project will
Technologies for
by 5G+4K/8K ultra-high- promote the application and increase product
Indoor Fine- Trial
definition display platform for adoption of fine-pitch market share and
Pitch LED production
indoor small-pitch display display devices in high- consolidate core
Display Devices
application scenarios this project definition display terminal competitiveness
for Next-
carries out the research on key products seize the
Generation
technologies of indoor fine-pitch technological high ground in
Displays
LED display devices seizes the the field of new display
technological heights in the field technologies establish
of new displays forms a strong technical barriers
demonstration of new displays within the industry and
establishes a strong technological consolidate the core
barrier and consolidates the core competitiveness of the
competitiveness of enterprises. enterprise.This project focuses on
leveraging the advantages of
Display module is one of the most LED display modules in
widely used areas of LED home appliances medical
applications and the use of LED devices toys gaming
display modules has been further consoles and other
expanded in various household applications. Through
appliances such as air research on intelligent
conditioners refrigerators water display modules including
heaters and washing machines. Bluetooth communication
Research and
By venturing into the smart home voice broadcasting touch
Application of The project will
and home appliance market this control and high-definition
Intelligent Trial improve product
project aims to provide customers colour display the aim is to
Display Module production quality and market
with comprehensive efficient and further expand user
for Home share.customized smart design scenarios improve the
Appliances
solutions. This not only injects functionality of display
new vitality into the smart home modules and make the
appliance market but also helps interaction between display
drive the healthy and high-quality modules and external
development of the smart home modules more intelligent
appliance industry. Furthermore and integrated. These efforts
it creates stable economic benefits will promote the healthy and
for the enterprise. high-quality development of
the smart home appliance
industry.Development The improving consumption level This project aims to promote
The project will
and Application of residents the robust consumer the development of high-
Trial improve product
of Key electronics market and the performance consumer
production quality and market
Technologies for increasing demand from electronic component
share.High- consumers for enhanced manufacturing towards
30Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
Performance performance in their products higher precision and
Consumer have strongly driven the sophistication by tackling
Optoelectronic upgrading of high-performance the industry’s forefront
Devices consumer electronics. However technologies including
the packaging technology for improving the spatial colour
high-performance consumer uniformity of LED devices
electronic components has long through packaging
been dominated by developed processes developing new
countries such as the United chip-level packaging
States Japan and Germany. structures for high-
Therefore Therefore it is urgent performance consumer
to achieve breakthroughs in major electronics LED devices
technologies for high- and reducing the voiding
performance consumer electronics rate. Furthermore it seeks to
LED devices break the foreign further facilitate the
companies’ monopoly on high- domestic substitution of
performance consumer high-performance consumer
electronics promote the domestic electronic components.substitution of high-performance
consumer electronic components
and drive innovation and
upgrading throughout the LED
technology industry chain.With the advancement of
semiconductor lighting
technology increasing attention
has been paid to the impact of light
This project focuses on
on human health. The demand for
high-quality LED healthy
LED light sources is shifting from
lighting applications aiming
a focus on luminous efficacy to an
to develop packaging
emphasis on light quality and
processes with a high
human-centric lighting. As an
phosphor-to-glue ratio for
emerging field healthy lighting is
healthy lighting devices and
the result of integrating
to realise the development of
semiconductor lighting
high light-quality multi-
Research on Key technology with advanced user
wavelength blue light The project will
Technologies for demands. It is becoming a new
Trial healthy lighting products. improve product
High-Quality growth driver for the development
production The implementation of this quality and market
LED Healthy of China’s lighting industry with
project will further share.Lighting applications already covering
strengthen our strategic
areas such as disinfection and
presence in the emerging
sterilisation medical and
field of healthy lighting
healthcare educational wellbeing
facilitate the development of
agricultural health and residential
high-quality healthy lighting
wellness. The project aims to
technologies and products
develop products featuring
and contribute to increased
relatively stable spectral output
revenue and profitability for
high colour rendering index and
the Company..controllable mass production
costs offering promising market
prospects in the field of high-
quality healthy lighting.Research and Driven by the rapid growth of the At the stage This project focuses on the The project will
31Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
Application of new energy vehicle market of research research of multiple key improve product
Key Packaging demand for automotive LEDs and technologies related to high- quality and market
Technologies for continues to rise. As automobiles development power ceramic LEDs for share.High-Power advance towards electrification automotive applications
Ceramic LEDs and intelligentisation a range of with the goal of developing
for Automotive innovative automotive LED high-power ceramic LEDs
Use products have emerged including featuring low thermal
megapixel-level DLP headlights resistance high brightness
and projection-based augmented and long lifespan. The
reality head-up displays (AR- implementation of this
HUD). High-power ceramic LEDs project will continuously
offer advantages such as high enhance the quality of high-
brightness long lifespan and low power ceramic LED
thermal resistance making them products for automotive
the preferred light source for applications further enrich
products such as megapixel-level the Company’s automotive
DLP headlights and projection- LED product portfolio and
based augmented reality head-up support the domestic
displays (AR-HUD). This project substitution of high-power
aims to accelerate breakthroughs ceramic LEDs in China as
in key packaging technologies for well as the high-quality
high-power ceramic LEDs for development of the new
automotive applications develop energy vehicle industry.new products with both market
value and industrial security
significance and continuously
strengthen the Company’s leading
position in the LED packaging
industry.This project aims to promote the
development of the LED industry This project develops
in the Pearl River Delta region by epitaxial growth and chip
collaborating with countries along preparation technologies for
Epitaxial
the Belt and Road. Through the high-performance deep-
Growth and
introduction of advanced ultraviolet LEDs with flip-
Chip Fabrication
international technologies the flop structures and The project will
Techniques for
project aims to provide Trial optimises key processes to improve product
High-
Guangdong Province with production obtain high-quality and high quality and market
Performance
independent intellectual property A1-component A1GaN share.Deep Ultraviolet
rights and high-performance deep materials high-performance
LED with flip-
ultraviolet LED fabrication deep-ultraviolet LED
flop structures
technologies. By doing so we will epitaxial structures and
catch up with the international realise the development of
counterparts or even lead them in deep-ultraviolet LED chips.this industry.With the strong market demand This project aims to address
for high-power power supplies technical challenges such as
TO-247 Package charging stations and distributed lead frame design wire The project will
Product photovoltaic inverters the market Trial bonding processes and improve product
Development scale of silicon carbide products production mould compatibility through quality and market
Project continues to expand. Therefore it the research and share.is essential to intensify the development of TO-247
research and development of package products thereby
32Foshan Electrical
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
silicon carbide discrete devices to achieving high performance
establish a solid foundation for the and high reliability.Company to penetrate the mid- to
high-end semiconductor device
market while enhancing product
competitiveness and increasing
market share.Details about R&D personnel:
2024 2023 Change (%)
Number of R&D personnel 2045 1735 17.87%
R&D personnel as % of total employees 16.76% 14.17% 2.59%
Educational background
Bachelor’s degree 1176 962 22.25%
Master’s degree 155 104 49.04%
Doctoral degree and above 13 15 -13.33%
Junior college and below 701 654 7.19%
Age structure
Below 30 763 621 22.87%
30~407927476.02%
Over 40 490 367 33.51%
Details about R&D investments:
2024 2023 Change (%)
R&D investments (RMB) 590807947.33 534561947.29 10.52%
R&D investments as % of operating
6.53%5.90%0.63%
revenue
Capitalised R&D investments (RMB) 0.00 0.00 0.00%
Capitalised R&D investments as % of total
0.00%0.00%0.00%
R&D investments
Reason for any significant change to the composition of R&D personnel and impact:
□Applicable □ Not applicable
Driven by strategic planning and business expansion needs the Company actively recruits highly
skilled and well-educated external talents injecting continuous innovation momentum and
professional expertise. As a result the proportion of R&D personnel holding bachelor’s and master’s
degrees has increased significantly.Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□Applicable □Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□Applicable □Not applicable
Other notes: The R&D investment calculated according to the Administration Measures for
Identification of High-tech Enterprises and other relevant regulations includes the R&D input
included in operating costs and R&D expenditures expensed in accordance with accounting standards.In 2024 the Company’s R&D Investment amounted to RMB590807900 accounting for 6.53% of
33Foshan Electrical
its operating revenue. Among this the revenue generated from the external sales of products produced
during pilot and trial production stages was included in main business revenue with the
corresponding expenditure of RMB42137600 recorded under main business cost.
5. Cash Flows
Unit: RMB
Item 2024 2023 Change (%)
Subtotal of cash generated from operating
8884435924.998513648453.744.36%
activities
Subtotal of cash used in operating activities 8286320589.11 7339258474.76 12.90%
Net cash flows from operating activities 598115335.88 1174389978.98 -49.07%
Subtotal of cash generated from investing
1059888697.14423342286.04150.36%
activities
Subtotal of cash used in investing activities 1775272864.22 1130862869.12 56.98%
Net cash flows from investing activities -715384167.08 -707520583.08 -1.11%
Subtotal of cash generated from financing
445145960.641404603429.35-68.31%
activities
Subtotal of cash used in financing activities 768748792.52 721157492.22 6.60%
Net cash flows from financing activities -323602831.88 683445937.13 -147.35%
Net increase in cash and cash equivalents -416870923.47 1155281636.62 -136.08%
Explanation of why any of the data above varies significantly:
□Applicable □ Not applicable
(1) Net cash flow from operating activities decreased by 49.07% year-on-year primarily due to an
increase in cash payments for raw material purchases during the Reporting Period.
(2) Net cash flows from investing activities decreased by 1.11% year-on-year mainly attributable to
the increase in purchases of large-denomination certificates of deposit and the payment for equity
acquisition of Hule Electrical Equipment a non-wholly owned subsidiary not under common control.
(3) Net cash flow from financing activities decreased by 147.35% year-on-year primarily due to the
receipt of capital raised from equity financing in the previous year.
(4) Net increase in cash and cash equivalents decreased by 136.08% year-on-year mainly as a result
of the decline in net cash flow from financing activities.Explanation of why net cash generated from/used in operating activities varies significantly from net
profit for the Reporting Period:
□Applicable □Not applicable
V Analysis of Non-Core Businesses
□Applicable □ Not applicable
Unit: RMB
As % of
Recurrent
Amount profit before Main source/reason
or not
tax
Dividend income from other equity investments
Return on
65850578.68 10.96% held during the period and interest income from Yes
investment
other debt investments
Gain/loss on Gain/loss on fair value changes of financial
-713704.94 -0.12% Yes
fair value instruments
34Foshan Electrical
changes
Primarily due to the provision for goodwill
Asset
-207929562.68 -34.60% impairment and inventory write-downs during Yes
impairments
the Reporting Period.Primarily attributable to the receipt of mediation
Non-
funds and the negative impact on goodwill
operating 18436172.78 3.07% Not
resulting from the merger of enterprises not
income
under the same control in the current period.Non-
Primarily attributable to the payment of
operating 4576737.83 0.76% Not
compensation during the Reporting Period.expense
Other income 111434984.12 18.54% Receipt of continuing government grants Not
Credit
Allowances for doubtful accounts receivable and
impairment -29684596.41 -4.94% Yes
other receivables
loss
Asset
Gains or losses on the disposal of non-current
disposal 374492447.01 62.32% Not
assets
income
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
31 December 2024 1 January 2024 Change in
Main reason for any
As % of total As % of total percentage
Amount Amount significant change
assets assets (%)
Purchase of large-
320912743 359604965 denomination
Monetary assets 18.70% 21.24% -2.54%
7.31 4.55 certificates in the
current period
Accounts 2125667291. 2093499280.
12.39%12.36%0.03%
receivable 96 40
Contract assets 1690021.95 0.01% 4252013.94 0.03% -0.02%
202549936197117164
Inventories 11.80% 11.64% 0.16%
1.381.14
Primarily due to the
transfer of an
Investment 793487046. 163636347. increase in assets
4.62%0.97%3.65%
property 02 41 intended for lease
during the Reporting
Period.Long-term equity 180300594. 179188555.
1.05%1.06%-0.01%
investments 89 15
364659420345321458
Fixed assets 21.25% 20.39% 0.86%
6.046.47
Primarily due to an
increase in the
transfer of
Construction in 263601705. 117453350
1.54% 6.94% -5.40% construction-in-
progress 89 5.11
progress to fixed
assets during the
Reporting Period.Right-of-use 22342999.3
0.13%8812320.640.05%0.08%
assets 4
Short-term 307141147. 1.79% 220019877. 1.30% 0.49%
35Foshan Electrical
31 December 2024 1 January 2024 Change in
Main reason for any
As % of total As % of total percentage
Amount Amount significant change
assets assets (%)
borrowings 49 73
119506301.235335693.
Contract liabilities 0.70% 1.39% -0.69%
4828
Long-term 222581930. 253093421.
1.30%1.49%-0.19%
borrowings 54 29
15023993.1
Lease liabilities 0.09% 4310967.92 0.03% 0.06%
997281070.105735226
Notes receivable 5.81% 6.24% -0.43%
217.60
Accounts
352694866.443201960.
receivable 2.06% 2.62% -0.56%
8902
financing
Primarily due to an
increase in the
Investments in amount of large-
114002286454822905.
other debt 6.64% 2.69% 3.95% denomination
3.7225
obligations certificates of deposit
purchased during the
Reporting Period.Investments in
726663613.699762746.
other equity 4.23% 4.13% 0.10%
4235
instruments
388587348.434549913.
Intangible assets 2.26% 2.57% -0.31%
9999
Primarily due to a
decrease in the
193078481 227117478 payment of
Notes payable 11.25% 13.41% -2.16%
7.62 7.69 procurement costs
via bills during the
Reporting Period.
278196509287598020
Accounts payable 16.21% 16.98% -0.77%
6.706.64
495717050.362491923.
Other payables 2.89% 2.14% 0.75%
9701
Primarily due to an
increase in endorsed
Other current 377156212. 95008427.0 but not yet matured
2.20%0.56%1.64%
liabilities 40 1 notes receivable
during the Reporting
Period.Indicate by tick mark whether overseas assets account for a high proportion of total assets.□Applicable □Not applicable
2. Assets and Liabilities at Fair Value
□Applicable □ Not applicable
Unit: RMB
36Foshan Electrical
Gain/loss
on fair Cumulative Impairment
Purchased
value fair value allowance Sold in the
Beginning in the Other Ending
Item changes in changes for the Reporting
amount Reporting changes amount
the charged to Reporting Period
Period
Reporting equity Period
Period
Financial assets
1. Held-for-
trading
financial assets 15252977 - 45000000 56000000 155850 43649
(exclusive of 5.41 438454.94 0.00 0.00 0.00 820.47
derivative
financial assets)
11400
3. Other debt 45482290 72700000 70000000 281999
22863.
investments 5.25 0.00 .00 58.47
72
4. Investments
6997627427896892451108977726663
in other equity 996025.00
6.35.07.66613.42
instruments
5. Receivables 44320196 90507093 352694
financing 0.02 .13 866.89
22630
Subtotal of 1750317 27458437 451108977 1177000 72150311 297584
31164.
financial assets 387.03 .13 .66 000.00 8.13 58.47
50
22630
Total of the 1750317 27458437 451108977 1177000 72150311 297584
31164.
above 387.03 .13 .66 000.00 8.13 58.47
50
Financial 275250
0.00275250.00
liabilities .00
Details about other changes:
(1) Other changes in trading financial assets (excluding derivative financial assets) refer to the trading
financial assets that occurred in Hule Electrical Equipment before Hainan Technology acquired Hule
Electrical Equipment in the current period.
(2) The purchased amount in the Reporting Period of other debt investments referred to the cash
management (large-denomination certificates) by the Company with its own temporarily idle funds
and idle raised funds which was classified as financial assets at fair value through other
comprehensive income. During the Reporting Period large-denomination certificates of deposit
amounting to RMB727 million were purchased with sales totalling RMB70 million. The cumulative
fair value changes was RMB0.00 and other changes included cumulative interest income of
RMB28199958.47.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□Yes □No
3. Restricted Asset Rights as at the End of the Reporting Period
Unit: RMB
Item Ending carrying amount Reason for restriction
Monetary assets 512340403.99 Note deposits bond deposits pre-sale of properties etc.Pledge of note pool notes receivable endorsed or
Notes receivable 951909082.20
discounted but not matured
37Foshan Electrical
Accounts receivable
25328943.24 Pledge of note pool
financing
Fixed assets 211977100.96 As mortgage and guarantee for related party see XVI (3)
Intangible assets 10341686.87 “Others” in Part X.Frozen large-denomination certificates of deposit (Note:
Investments in other
103309041.10 This large-denomination certificate of deposit was
debt obligations
unfrozen in March 2025.)
Other non-current
2931.37 Frozen funds
assets
Total 1815209189.73 ——
VII Investments Made
1. Total Investment Amount
□Applicable □ Not applicable
Investment amount in the Investment amount in the same
Change (%)
Reporting Period (RMB) period of last year (RMB)
386039888.94173881228.98122.01%
2. Major Equity Investments Made in the Reporting Period
□Applicable □ Not applicable
Unit: RMB
Gains
and
Type of Progress losses Whether
Amou Shareho Fundi Date of
Name of Way of Invest wealth as at the Predic on involved
Principal nt lding ng Partne disclosu Disclosure index
investee investm ment manage balance ted investm in any
activity invest percenta resour rs re (if (if any)
corporation ent period ment sheet return ents for legal
ed ge (%) ces any)
product date the actions
Current
Period
Manufactu Announcement on
re of Investment and
automotiv Busines Establishment of
e parts and s Wholly-owned
accessorie registrat Subsidiaries by
s; sales of ion has Holding
Liaowang lighting been Subsidiaries and
Newly 25000 Self- - 28
Auto Lamp products; Long- complet Investment in
establish 000.0 53.79% funde None N/A 0.00 47494.2 Not Septemb
(Suzhou) research term ed Automotive Lamp
ed 0 d 6 er 2024
Co. Ltd. and during Production and
developm the Construction
ent of Reportin Projects on
automotiv g http://www.cninfo
e Period. .com.cn with
componen Announcement
ts. No.: 2024-056
Lighting Complet
fixtures ed
Zhejiang for ships equity
Hule navigation transfer
11366 Not Not
Electrical signal Acquisit Equity Long- registrat 378705
5723. 66.00% None applicab 0.00 Not applicab Not applicable
Equipment fixtures ion fund term ion 7.54
00 le le
Manufacturi explosion- during
ng Co. Ltd. proof the
fixtures Reportin
etc. g Period
38Foshan Electrical
138
3739
665
Total -- -- -- -- -- -- -- -- 0.00 563.2 -- -- --
723.
8
00
3. Major Non-Equity Investments Ongoing in the Reporting Period
□Applicable □ Not applicable
Unit: RMB
Reason for
Cumulat
Fixed Industry Cumulati failure to
Fundi Projec ive
Way of asset of the Input in the ve input reach the Date of
ngres t Predicte return as Disclosure index (if
Project name investm invest investm Reporting as of the planned disclosure
ource progre d return of the any)
ent ment ent Period period- progress and (if any)
s ss period-
or not project end predicted
end
return
Announcement on
The
Investment in the
production
Production Ramp-up
ramp-up
Project for New-
project for
LED Self- generation LED
new- 5568000.0 899877 98.52 10 January
Other Yes packagi finan N/A Packaging Devices and
generation 0 146.45 % 2019
ng cing Chips on
LED
http://www.cninfo.com.packaging
cn (announcement of
devices and
subsidiary NationStar
chips
Optoelectronics)
Announcement on
Investment in the
Construction of
The Jili NationStar
Industrial Park LED Self- Optoelectronics’ Jili
104924552 641795 37.43 7 August
project (not Other Yes packagi finan N/A Industrial Park Project.84369.04%2020
including land ng cing on
purchase) http://www.cninfo.com.cn (announcement of
subsidiary NationStar
Optoelectronics)
110492552154167
Total -- -- -- -- -- -- -- --.842515.49
4. Financial Investments
(1) Securities Investments
□Applicable □ Not applicable
Unit: RMB
Gain/loss Sold
Cumulati
Beginn on fair in
ve fair Purchase Gain/loss
Initial Measure ing value the Ending
Security Security Security value d in the in Accountin Funding
investme ment carryin changes Repo carrying
type code name changes Reportin Reporting g title resources
nt cost method g in the rting amount
charged g Period Period
value Reportin Perio
to equity
g Period d
Gotion 368 Investmen
Domesticall High- Fair - 28056 ts in other
830144 376 17133 3635790 Self-
y/Overseas 002074 tech value 47974 4559. equity
85.13 funded
listed stock Co. method 506. 79.10 45.02 61.48 89 instrument
Ltd. 50 s
Domesticall 601187 Xiamen 152957 Fair 290 32694 17054 26384 3235020 Investmen Self-
39Foshan Electrical
Gain/loss Sold
Cumulati
Beginn on fair in
ve fair Purchase Gain/loss
Initial Measure ing value the Ending
Security Security Security value d in the in Accountin Funding
investme ment carryin changes Repo carrying
type code name changes Reportin Reporting g title resources
nt cost method g in the rting amount
charged g Period Period
value Reportin Perio
to equity
g Period d
y/Overseas Bank 606.83 value 807 353.55 4417. 916.90 24.60 ts in other funded
listed stock Co.Ltd. method 671. 77 equity
instrument
05
s
Foshan
branch
Investmen
of
Fair 500 ts in other
Guangd 500000. 500000.0 Self-
Other None value 000. equity
ong 00 funded
method 0 instrument
Develop 00
s
ment
Bank
Held-for-
Domesticall Qianli Fair 901
117600 10249 10249 1926438. trading
y/Overseas 601777 Technol value 522. Other
8.74 financial
listed stock ogy method 15.54 15.54 30 76 assets
Held-for-
Domesticall ZOTYE Fair 777 - -
423448. trading
y/Overseas 000980 Automo value 75.0 15398. 15398. 62376.61 Other
92 financial
listed stock bile method 2 41 41 assets
Hangzh
ou
Industri
al & Fair - -
Held-for-
Trust 150000 15585 1543950. trading Self-
None Comme value 14550. 14550.product 0.00 00.00 00 financial funded rcial method 00 00 assets
Trust
Co.Ltd.
660
45110
23957166328891155850.0290936911138
Total -- 8977. -- --
549.62475.859.2000.000263.1334.53
66
33
Note: The holding of Hangzhou Industrial & Commercial Trust Co. Ltd. during the Reporting Period
resulted from the acquisition of Hule Electrical Equipment by Hainan Technology.
(2) Investments in Derivative Financial Instruments
□Applicable □ Not applicable
1) Derivative Investments for Hedging Purposes in the Reporting Period
□Applicable □ Not applicable
Unit: USD’0000
Gain/loss on Cumulative Ending
Purchased
Initial fair value fair value Sold in the investment
Beginnin in the Ending
Type of derivative investmen changes in the changes Reporting amount as % of
g amount Reporting amount
t amount Reporting charged to Period the Company’s
Period
Period equity ending equity
General forward 1800 0 0 0 1800 1800 0 0.00%
General forward 650 0 -3.83 0 650 0 650 0.46%
Total 2450 0 -3.83 0 2450 1800 650 0.46%
Major changes in
Not
accounting policies
40Foshan Electrical
and specific
accounting
principles adopted
for hedges in the
Reporting Period
compared to the last
reporting period
Actual gain/loss in
During the Reporting Period the actual profit and loss amounted to USD-61400.the Reporting Period
The Company carries out foreign exchange hedging business appropriately according to specific situations
Effectiveness of
which can effectively reduce the foreign exchange market risk lock in industrial profit of export business and
hedging
avoid exchange rate risk.Funding source Self-funded
Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of economic
changes at home and abroad the foreign exchange hedging business faces market risk to some extent. 2. Foreign
currency risk: When the foreign currency trend greatly deviates from the Company’s judgment of such trend
the expenses after locking the exchange rate might exceed that before doing so resulting in losses to the
Company. 3. Internal control risk: Imperfect internal control policies probably triggers risks to the foreign
exchange hedging business as it is highly professional and complex. 4. Trading default risk: If the counterparty
of foreign exchange hedging defaults by failing to pay hedging earnings to the Company as agreed the actual
Analysis of risks and exchange loss of the Company will not be offset. 5. Collection forecast risk: Marketing departments forecast
control measures collection based on the actual and expected orders of customers. In practice customers may adjust such orders.associated with As a result the Company’s collection forecast will not be accurate leading to delivery risks.derivative Adopted risk control measures: 1. The Company will strengthen the research and analysis of the exchange rate.investments held in When the exchange rate fluctuates greatly it will adjust the business strategy in a timely manner to stabilize the
Reporting Period export business and avoid exchange losses to the utmost. 2. The Company has established the Management
(including but not System for Foreign Exchange Hedging and majority-owned subsidiary NationStar Optoelectronics has also
limited to market formulated the Management System for Forward Forex Settlement and Sale and Forex Option Transactions
risk liquidity risk clearly defining the operating principles approval authority responsible department and responsible person
credit risk internal operation procedures information isolation measures internal risk reporting system risk management
operational risk procedures and information disclosure related to the foreign exchange hedging business. 3. In order to prevent
legal risk etc.) any delay in the foreign exchange hedging the Company will strengthen the management of accounts receivable
actively collect receivables and avoid any overdue receivables. In the meantime the Company plans to increase
the export purchases and purchase corresponding credit insurance so as to reduce the risk of default and customer
default. 4. The Company’s foreign exchange hedges must be strictly based on the Company’s foreign exchange
earnings prediction. Besides the Company shall strictly control the scale of its foreign exchange hedges and
manage all risks that the Company may face within a controllable range. 5. The internal audit department of the
Company shall check the actual signing and execution situation of all trading contracts on a regular or irregular
basis.Changes in market
prices or fair value
of derivative The Company carries out recognition and measurement in accordance with the Accounting Standard for
investments in Business Enterprises No. 22—Recognition and Measurement of Financial Instruments the Accounting Standard
Reporting Period for Business Enterprises No. 24—Hedges the Accounting Standard for Business Enterprises No. 37—
(fair value analysis Presentation of Financial Instrument and other applicable regulations. Fair value is arrived at based on the price
should include provided by pricing service providers such as banks or the price obtained. Fair value measurement and
measurement recognition are carried out on a monthly basis. Fair value changes of forward exchange settlement contracts
method and related entered into by the Company are mainly attributable to difference arising from exchange rate fluctuations.assumptions and
parameters)
Legal matters
involved (if N/A
applicable)
Disclosure date of
announcement on
Board of Directors’s 1 August 2023 30 April 2024
approving derivative
investment (if any)
2) Derivative Investments for Speculative Purposes in the Reporting Period
□Applicable □Not applicable
No such cases in the Reporting Period.
41Foshan Electrical
5. Use of Raised Funds
□Applicable □ Not applicable
(1) General Information about Use of Raised Funds
□Applicable □ Not applicable
Unit: RMB’0000
Usage ratio Cumulative
Cumulati Re-
of raised re-purposed Amount
Net used in ve total purposed Purpose and
Securities Total funds at the Cumulative amount being idle
Year of Way of amount the amount amount in Unused whereabouts of
listing amount end of the re-purposed as % of for more
raising raising of funds current of raised the amount the unused
date raised Reporting amount total than two
raised (1) period funds Reporting amount
Period (3) amount years
used (2) Period
= (2) / (1) raised
The balance of
temporarily idle
proceeds used
by the Company
for cash
Issuance management
of shares 4 amounted to
1094108841133020128892
2023 to December 18.49% 0 0 0 RMB599 0
specific 2023 55.18 1.55 .95 .48 69.7 million while
objects the remaining
proceeds were
deposited in
designated
accounts for
raised funds.
1094108841133020128892
Total -- -- 18.49% 0 0 0 -- 0
55.181.55.95.4869.7
Description of the use of raised funds
In November 2023 the Company raised RMB1094551800 through a share issuance to specific investors. After deducting issuance expenses such as underwriting fees
sponsorship fees audit fees and legal fees totalling RMB6136300 the actual net proceeds amounted to RMB1088415500. As at 31 December 2024 the Company
had cumulatively utilised RMB201284800 of the raised funds accounting for 18.49% of the net proceeds.
(2) Promised Use of Raised Funds
□Applicable □ Not applicable
Unit: RMB’0000
Promised Accumul
project Total ative
Investm Time Return Accumula
funded Re- promise investme Meeti Signific
Adjuste ent when s tive
with purpose d Input nt ng the ant
Securiti d total progress the derive benefits
Financing raised d or investm in the amount expect change
es Project amount as at the project d in recorded
project funds and partially ent Report at the ed to
listing nature of the period- is ready the as at the
name investmen re- amount ing end of return project
date investm end for its Report end of
t with purpose with Period the s or feasibilit
ent (1) (3)＝(2) intended ing Reporting
over- d or not raised Reportin not y or not
/(1) use Period Period
raised funds g Period
funds (2)
Promised projects
2023 FSL’s
Producti
Issuance 4 automatio
on and 3646 3585 324 3535. Novemb
of Shares Decemb n and Not 9.86% N/A N/A N/A Not
construc er 2026
to Specific er 2023 digitalisati 4.27 0.64 1.67 32
tion
Targets on project
2023
FSLHaina Producti
Issuance 4
n on and 2525 2525 316 1052 41.68 May
of Shares Decemb Not N/A N/A N/A Yes
Industrial construc 2025
to Specific er 2023 2.91 2.91 0.92 5.5 %
Park I tion
Targets
2023 4 The smart Producti Not 9179. 9179. 29.6 95.77 1.04% May N/A N/A N/A Yes
42Foshan Electrical
Issuance Decemb street on and 52 52 3 2025
of Shares er 2023 lights construc
to Specific project tion
Targets
The
2023
vehicle Producti
Issuance 4 May
light on and 2400 2400 251 2667. 11.11
of Shares Decemb Not 2027 N/A N/A N/A Not
module construc
to Specific er 2023 8.8 8.8 6.86 39 % (Note 1)
productio tion
Targets
n project
2023 Researc
The R&D
Issuance 4 h and Novemb
centre 1454 1454 238 3304. 22.71
of Shares Decemb develop Not er 2027 N/A N/A N/A Not
constructi
to Specific er 2023 ment 9.68 9.68 1.87 5 % (Note 1)
on project
Targets project
113
109410882012
Subtotal of promised projects -- 30.9 -- -- N/A N/A -- --
55.1841.558.48
5
Use of over-raised funds
There were no over raised funds.
11
109410882012
Total -- 330 -- -- N/A N/A -- --
55.1841.558.48.95
1. FSL’s Automation and Ddigitalisation Project: This project aims to procure advanced automated production equipment and
supporting facilities and to implement a digital and intelligent transformation to establish an intelligent manufacturing system.It was originally scheduled to reach its intended usable state by November 2026. However due to the combined impact of a
slowdown in domestic macroeconomic growth overseas tariff barriers and declining costs of related hardware and software
the investment progress of the project has fallen short of expectations.
2. R&D Centre Construction Project: On 18 June 2024 the Company held the 57th meeting of the 9th Board of Directors and
the 29th meeting of the 9th Supervisory Committee reviewing and passing the Proposal on Extending the R&D Centre
Construction Project Time. According to the construction status and implementation progress of the raised funds investment
project and in light of the demand for products in the downstream market the relevant R&D projects planned for the
Company’s R&D centre are currently progressing steadily and the purchase of relevant R&D equipment and R&D-related
software is under way in succession. However as some experimental equipment needs to be customised and the R&D
Explain the
equipment is characterised by small batches and multiple varieties not all equipment has been procured installed or
circumstances and
commissioned adequately. In view of the above reasons the Company agreed to extend the construction period of the raised
reasons for failing to
funds investment project “R&D centre construction project” by two years that is to extend the time for the raised funds
achieve the planned
investment project to reach the intended status of use to May 2026.progress and
On 23 April 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th
expected returns by
Supervisory Committee during which the Proposal on the Change and Termination of Certain Fundraising Investment
item (including the
Projects was reviewed and approved. Due to adjustments made to certain R&D topics and supporting equipment during the
reason for selecting
implementation of the “R&D Centre Construction Project” the Company intends to extend the investment period of the project
“N/A” for “Meetingby one and a half years to ensure smooth project advancement and the achievement of R&D objectives. Accordingly the
the expected returns
planned date for the project to reach its intended usable state will be postponed to November 2027.or not”)
3. Automotive Lighting Module Production Project: On 23 April 2025 the Company held the 7th meeting of the 10th Board
of Directors and the 5th meeting of the 10th Supervisory Committee during which the Proposal on Adjusting the Internal
Investment Structure Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed
and approved. Throughout the implementation of the Automotive Lighting Module Production Project the Company has
prioritised project quality and long-term profitability laying a solid foundation and proceeding with investment in a phased
manner. However due to the stringent certification requirements for entry into the automotive lighting supply chain system
and the long lead time for the deployment of high-end customised equipment the current investment progress has fallen behind
schedule. Therefore the Company proposes to extend the investment period of the project by two years postponing the date
for it to reach its intended usable state to May 2027.
(For details on the delay in the planned progress of the “FSL’s Hainan Industrial Park Phase I” and the “Smart StreetlightConstruction Project” please refer to the section “Particulars about significant change to project feasibility” in this table.)
1.FSL’s Hainan Industrial Park Phase I Project: On 23 April 2025 the Company held the 7th meeting of the 10th Board of
Directors and the 5th meeting of the 10th Supervisory Committee during which the Proposal on the Change and Termination
Particulars about of Certain Fundraising Investment Projects was reviewed and approved. Due to various factors including the fact that China’s
significant change to marine industry is still in its early stages of development the Company’s existing production capacity is sufficient to meet the
project feasibility current and near-future demand of the marine lighting market. Therefore the Company intends to terminate the
implementation of this project (for further details please refer to the Announcement on the Change and Termination of Certain
Fundraising Investment Projects disclosed on the same day on www.cninfo.com.cn).
43Foshan Electrical
.2. Smart streetlight construction project: On 23 April 2025 the Company convened the 7th meeting of the 10th Board of
Directors and the 5th meeting of the 10th Board of Supervisors at which the Proposal on the Change and Termination of
Certain Funded Projects was reviewed and approved. Due to a slowdown in investment by local governments in municipal
infrastructure in recent years the market demand for new infrastructure projects such as smart streetlights has grown at a rate
below expectations resulting in insufficient project orders. Therefore the Company proposes to terminate the implementation
of the "Smart Streetlight Construction Project" (For further details please refer to the Announcement on the Change and
Termination of Certain Funded Projects disclosed on the same day on cninfo.com.cn).Amount purpose
and use progress of N/A
over-raised funds
Change of
implementation
location of raised N/A
funds investment
projects
Applicable
Occurred during the Reporting Period.Adjustments to the On 18 June 2024 the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th Supervisory
way of Committee reviewing and passing the Proposal on Adding Implementation Entities and Special Accounts for Raised Funds
implementation of to Some Raised Funds Investment Projects and agreed to add FSL Chanchang Lighting Co. Ltd. (hereinafter referred to as
raised funds “Chanchang Company”) a wholly-owned subsidiary of the Company as one of the implementation entities for the raised
investment projects funds investment project “FSL’s automation and digitalisation project”. In consequence the implementation entities of the
raised funds investment project changed from the Company to the Company and Chanchang Company. The adjustment did
not involve any change to the amount or purpose of the raised funds.Applicable
Advance
On 16 January 2024 the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the 9th
investments in
Supervisory Committee reviewing and passing the Proposal on Using Raised Funds to Replace Self-raised Funds for Pre-
promised projects
invested Capital Projects and Paid Issuance Expenses and agreed based on the actual situation of the Company to use the
funded with raised
raised funds to replace self-raised funds of RMB87975313.46 used for pre-invested capital projects. Specifically self-raised
funds and
funds of RMB2603975.16 for paid issuance expenses would be replaced. By January 2024 the Company had completed the
subsequent swaps
swap of all the self-pooled funds.Use of idle raised
funds for
temporarily N/A
supplementing the
working capital
Surplus amount of
raised funds upon
project N/A
implementation and
the reasons
As at 31 December 2024 the total amount of unutilised proceeds was RMB892697000 of which RMB293697000 was held
Purpose and
as bank deposits in designated accounts for raised funds and RMB599 million was invested in cash management using
whereabouts of
temporarily idle proceeds which had not yet matured or been redeemed. The raised funds unused by the Company would be
unused raised funds
put into use according to the subsequent progress of the raised funds investment projects.
1. On 16 January 2024 the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the 9th
Supervisory Committee reviewing and passing the Proposal on Using Raised Funds to Provide Subsidiaries with Loans forImplementing Raised Funds Investment Projects. Given that the implementation of the raised funds investment project “FSLHainan Industrial Park I” is organised by Fozhao (Hainan) Technology Co. Ltd. (hereinafter referred to as “HainanTechnology”) a wholly-owned subsidiary of the Company to guarantee the successful implementation of the raised funds
Problems or other
investment project the Board of Directors agreed that the Company might use raised funds to provide an interest-free loan for
issues arising in the
Hainan Technology with the total loan amount not exceeding RMB252529100 and a loan term of three years.use and disclosure of
2. On 23 April 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th
raised funds
Supervisory Committee during which the Proposal on Adjusting the Internal Investment Structure Adding Implementation
Sites and Postponing Certain Fundraising Investment Projects was reviewed and approved. In light of the rapid development
of information technology and the Company’s actual business needs and in order to enhance the efficiency of fund utilisationthe Company plans to adjust the internal investment structure for equipment upgrades under the “FSL’s automation anddigitalisation project” and to add a new project implementation site at “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict
44Foshan Electrical
Chancheng District Foshan City.”
3. On 23 April 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th
Board of Supervisors at which the Proposal on the Change and Termination of Certain Funded Projects was reviewed and
approved. It was agreed that the Company would make the following adjustments to the “R&D Centre Construction Project”:
first change certain research topics and equipment investment items; second adjust the internal investment structure of the
project; third extend the project investment period by one and a half years; fourth add two new implementation sites.
4. The Proposal on the Change and Termination of Certain Funded Projects reviewed and approved at the 7th meeting of
the 10th Board of Directors and the 5th meeting of the 10th Board of Supervisors convened by the Company on 23 April 2025
is still subject to review by the General Meeting of Shareholders.Note 1: The date on which the project is expected to reach its intended usable state reflects the
postponed timeline as approved by the 7th meeting of the 10th Board of Directors and the 5th meeting
of the 10th Supervisory Committee.
(3) Re-purposed Raised Funds
□Applicable □Not applicable
No such cases in the Reporting Period.VIII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□Applicable □ Not applicable
Whether the
project has
Proporti been
Net profit
on of Relation implemente
contribute
net ship Whether d as planned
d by the Whether
profit with the all the and on
asset to the
contribu Principl counterp associat schedule. If
the listed If it is ownersh
Impact of ted by es for arty ed rights it has not
Trade company a ip of the
Asset(s) the sale on the asset determi (applica and been
Counterpa Date Price from the related assets Disclosu Disclosure
to be the sale to ning the ble in obligati implemente
rty of sale (RMB1 beginning -party involved re date index
sold Company the total sale the case ons have d as
0000) of the transa has been
(Note 3) net price of of been planned the
period to ction fully
profit of the asset related fully reasons and
the date of transferr
the party transferr the
sale ed
listed transacti ed measures
(RMB100
compan ons) taken by the
00)
y Company
should be
explained
The
Company
Announcem
has placed
ent Title:
the North
Progress
Fenjiang
South Report on
Road plot
Area the
under a
Plot of Company’s
Foshan reserved
North Asset
Chanchen 4 account
Fenjiang 26 Disposal and
g District Nove 3937 29868. which will Market
Road 57.06% Not N/A Yes Not Yes Februar Public
Land mber 7.91 11 help price Chanche y 2024 Listing of
Reserve 2024 activate
ng Land for
Centre assets
District Sale
improve
Foshan Disclosure
asset
City Website:
profitabilit
http://www.y and
cninfo.com.provide
cn
financial
support
45Foshan Electrical
Whether the
project has
Proporti been
Net profit
on of Relation implemente
contribute
net ship Whether d as planned
d by the Whether
profit with the all the and on
asset to the
contribu Principl counterp associat schedule. If
the listed If it is ownersh
Impact of ted by es for arty ed rights it has not
Trade company a ip of the
Asset(s) the sale on the asset determi (applica and been
Counterpa Date Price from the related assets Disclosu Disclosure
to be the sale to ning the ble in obligati implemente
rty of sale (RMB1 beginning -party involved re date index
sold Company the total sale the case ons have d as
0000) of the transa has been
(Note 3) net price of of been planned the
period to ction fully
profit of the asset related fully reasons and
the date of transferr
the party transferr the
sale ed
listed transacti ed measures
(RMB100
compan ons) taken by the
00)
y Company
should be
explained
for the
future
developm
ent of the
Company’
s main
business.
2. Sale of Major Equity Investments
□Applicable □Not applicable
IX Major Subsidiaries
□Applicable □ Not applicable
Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10%
effect on the Company’s net profit:
Unit: RMB
Relationship
Principal Registered Total Operating Operating
Name with the Net assets Net profit
activity capital assets revenue profit
Company
Foshan 6249
NationStar 61847 3824161 3472860 3641475 5437553
Subsidiary Manufacturing 27926
Optoelectronics 7169.00 649.55 317.19 3.20 2.37
Co. Ltd. 9.11
Nanning
3505528152
Liaowang Auto Subsidiary Manufacturing 10484149 18228394 62909490. 63038037.Lamp Co. Ltd. 700.00 60927. 48.22 21.05 78 39
69
FSL Zhida
Electric 16361
381508792844183425774516006603492
Technology Co. Subsidiary Manufacturing 6843.Ltd. (FSL 000.00 8.71 77.41 .18 .25 39
Zhida)
FSL Chanchang 1218
727823772527108641675013676616462
Lighting Co. Subsidiary Manufacturing 52913
Ltd. 944.00 22.96 550.97 9.52 8.67 2.47
Subsidiaries obtained or disposed in the Reporting Period:
□Applicable □ Not applicable
46Foshan Electrical
How the subsidiary was obtained
Impact on overall operations and
Name or disposed of in the Reporting
performance
Period
No significant impact on the
Liaowang Auto Lamp (Suzhou)
Newly established Company’s production and
Co. Ltd.performance.No significant impact on the
Fozhao Huaguang (Maoming)
Newly established Company’s production and
Technology Co. Ltd.performance.No significant impact on the
Gaozhou NationStar Lighting
Newly established Company’s production and
Technology Co. Ltd.performance.No significant impact on the
Zhejiang Hule Electrical
Acquired Company’s production and
Equipment Manufacturing Co. Ltd.performance.No significant impact on the
Shanghai Lelaite Electrical
Acquired Company’s production and
Equipment Co. Ltd.performance.Information about major majority- and minority-owned subsidiaries:
—In a major asset restructuring in February 2022 the Company acquired a 21.32% interest in Foshan
NationStar Optoelectronics Co. Ltd. (NationStar) from Rising Holdings and its acting-in-concert
party. Upon the conclusion of the transaction the Company eventually holds a 21.48% interest in
NationStar and NationStar has become a majority-owned subsidiary of the Company. The Company
has included NationStar in its consolidated financial statements since Q1 2022.—Nanning Liaowang Auto Lamp Co. Ltd. signed an equity agreement with its existing shareholders
in July 2021 and acquired Liaowang Auto Lamp through equity acquisition and capital increase and
share expansion. Upon the conclusion of the transaction the Company eventually holds a 53.79%
interest in Liaowang Auto Lamp and Liaowang Auto Lamp has become a majority-owned subsidiary
of the Company. The Company has included Nanning Liaowang in its consolidated financial
statements from the date when the Company obtained actual control of it.—FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) was incorporated by the Company Foshan
Zhibida Enterprise Management Co. Ltd. and Dongguan Baida Semiconductor Material Co. Ltd. on
a joint investment basis. FSL Zhida obtained its business license on 21 October 2016. FSL Zhida
changed its registered capital on the basis of paid-in-capital on 16 January 2023. Upon the completion
of the change the Company holds a stake of 66.84% in it. The Company has included FSL Zhida in
its consolidated financial statements since the date of FSL Zhida’s incorporation.—FSL Chanchang Lighting Co. Ltd. (renamed on 19 June 2018 from “Foshan Chanchang ElectricAppliances (Gaoming) Co. Ltd.”) which is a Sino-foreign joint venture invested and established by
the Company and Prosperity Lamps & Components Limited had obtained license for business
corporation on 23 August 2005 through approval by Foreign Trade and Economic Cooperation
Bureau of Gaoming District Foshan with document “MWMYZ [2005] No. 79”. The Company holds
70% equities of the said company; therefore the said subsidiary was included into the scope of the
consolidated financial statements since the date of foundation. On 23 August 2016 the Company and
Prosperity Lamps & Components Limited signed the equity transfer agreement. The Company
purchased 30% equity of Foshan Chanchang Electric Appliances (Gaoming) Co. Ltd. held by
Prosperity Lamps and Components Ltd. After the purchasing the Company held 100% equity of FSL
Chanchang Lighting Co. Ltd.
47Foshan Electrical
X Structured Bodies Controlled by the Company
□Applicable □Not applicable
XI Prospects
i. The Company’s development strategiesThe Company is committed to implementing the development strategy of “new-type basic platformand large-scale new tracks.” It will continue to focus on technology and services as the coreemphasising brand and value. The Company is closely aligned with upgrading to “mid-to-high-endintelligent manufacturing” transforming towards “providing products and overall solutions” and
making strides towards “intelligent healthy and green human-centric lighting.” At the same time
the Company is making efforts on the application front continuously expanding into the Internet of
Things (IoT) ecosystem and niche markets. It is committed to developing new application scenarios
and products consistently enhancing the Company’s core competitiveness and accelerating the next
phase of development.ii. Operational plan for 2025
1. Make market expansion the fundamental task of the Company’s development and
comprehensively enhance its market outreach capabilities.Firstly the Company will strengthen and solidify the foundation of the business. Through a series ofstrategies such as “grid management + supplier capability upgrading + competitive product planningfor application scenarios + deep distribution” the Company is determined to promote channel
penetration and enhance control over the terminal market. It will accelerate the establishment andimprovement of an integrated project operation mechanism covering “R&D production sales supplyand service” and speed up the expansion of major clients and large projects such as “large-scaleindustrial and real estate” sectors. The Company will also focus on driving the implementation and
transformation of group procurement and reserve projects. At the same time it will consolidate its
export business intensify efforts in the “Go Global Initiative” and accelerate expansion into
emerging markets such as Southeast Asia the Middle East and BRICS countries driving the growth
of its overseas business. The automotive lighting business seizes the development window of the
automotive market adapting to the trends of electrification networking and intelligence. It
accelerates its transformation towards new energy and mid-to-high-end segments aiming to achieve
more scenario applications and business expansion in high-end areas such as automotive lighting
controllers and intelligent human-vehicle interaction. Secondly the Company will focus on making
the new track businesses more specialised and practical. The Company integrates resources in marine
lighting leveraging internal synergy advantages to seize the boom cycle of the shipbuilding industry.It is fully committed to expanding into the military vessel market inland waterway vessel lighting
and deep-sea vessel lighting businesses while focusing on cultivating and promoting fishing and
aquaculture lighting products and integrated solutions. For road lighting sports lighting and aviation
lighting the Company remains resolute in pursuing a specialised refined distinctive and innovative
approach. It focuses on breakthroughs in core markets core businesses core products core
technologies and core talents. By developing professional products and delivering benchmark
projects the Company aims to drive business breakthroughs and growth.
2. Make innovation-driven development a fundamental requirement for the Company and
comprehensively enhance product competitiveness.The Company will adhere to technological self-reliance lead with the “Technological Fozhao” brand
strategy and build new competitive advantages. Firstly focusing on “new quality” to strengthen
innovation the Company positions the New Quality Productive Forces Research Center as the
48Foshan Electrical
forefront of advancing high-quality development. It will strengthen research in foundational urgent
cutting-edge and disruptive technologies focusing on building three major areas of excellence:
technology industry and talent. The Company will concentrate on cultivating and developing high-
quality R&D talent deeply integrating “industry academia and research” and continuouslyempowering and driving high-quality development. Secondly the Company will “strengtheninnovation based on light.” By leveraging the research institute and automotive lighting research
institute to deeply integrate innovative resources the Company will develop its “light code”technology. It will optimise the three-tier R&D system of “production generation R&D generationand reserve generation” intensify efforts in technological innovation and product iteration and
launch a series of products and intelligent solutions including smart control and elderly care solutions.Thirdly the Company emphasises innovation in new tracks. Focusing on the future direction of
industrial development the Company will strategically consider new businesses such as marine
lighting smart lighting and healthy lighting. It will target the recruitment of urgently needed
innovative and scarce talent for R&D particularly those with expertise in cutting-edge technologies
who can lead major scientific research projects along with top-tier scientific leaders and teams.Fourthly the Company will integrate resources to strengthen innovation. The Company will deepen
industry-university-research cooperation with research institutes and universities enhance
collaboration on industrial product R&D with corporate research institutions and reserve a batch of
original technologies. It aims to achieve more breakthroughs from “zero to one” and “one to N” using
technological innovation to forge a “new engine” for the Company’s high-quality development.
3. Make operational improvement the fundamental source of the Company’s development and
comprehensively enhance value creation capability.Firstly the Company will establish a solid foundation for operational excellence. Through unified
deployment systematic methods mechanism building capability development and solidifying
results the Company will make incremental and continuous improvements in its operations. This will
drive more flexible manufacturing smoother logistics faster delivery superior quality more
automated equipment and more refined planning. Secondly the Company will improve operational
efficiency. We will accelerate the establishment of a flexible and efficient integrated operation
mechanism covering R&D production and sales. By utilising digital big data systems and tools the
Company will comprehensively optimise business processes based on the principles of scientific
accuracy compliance coordination and unification enhancing business flow efficiency and the
ability to respond quickly to the market. Thirdly the Company will reduce operational costs. We will
vigorously promote generalisation platformisation modularisation structuring and standardisation
to comprehensively reduce costs in R&D design procurement manufacturing and marketing. The
Company will also work to reduce channel inventory raw material and finished product inventory
and supply chain inventory. With the annual budget as a constraint it will strengthen rigid cost control
and dynamic adjustments. Fourthly the Company will enhance operational efficiency. We will make
asset revitalisation one of the key tasks for the year fully driving the land reserve of the central area
of North Fenjiang Road and the revitalisation of idle properties and factory buildings to improve
asset profitability.(III) Potential risks facing the Company and countermeasures
1. Risks of macro economic fluctuations and fiercer market competition
Currently the global macroeconomic environment faces multiple uncertainties. Domestic
macroeconomic growth is slowing while international trade protectionism is rising with frequent
occurrences of tariff barriers and technical trade measures. These factors may have an adverse impact
on the development of the lighting industry. The lighting industry has especially entered a stage of
49Foshan Electrical
competition within the existing market with market growth slowing down and intensified
competition. As a result the profitability of companies may continue to face pressure.Countermeasures: The Company will adhere to the set strategies spend greater effort in developing
new products constantly refine the business portfolio and actively explore segment markets such as
smart lighting healthy lighting marine lighting animal and plant lighting. It will also accelerate the
introduction of new manufacturing processes technologies and products to the market for new
competitive edges. At the same time by optimizing marketing network and strengthening the business
focus and expansion on domestic and foreign major customers the Company will improve service
quality strengthen internal management and increase core competitive capacity constantly.
2. Risk of raw material price fluctuations
The main raw materials of the Company and its subsidiaries include chips lamp beads electronic
components aluminum substrates plastic parts metal materials etc. and the price fluctuations of
main raw materials will have an impact on the Company’s production costs. If the price of raw
materials continues to rise in the future it may adversely affect the Company’s production and
operation.Countermeasures: The Company will pay attention to market dynamics collect information analyze
and pre-judge supply of main raw materials and price trends so as to make excellent sourcing plans.By enhancing negotiation refining suppliers perfecting supply chain management and promoting
alternative materials the Company is able to decrease procurement costs.
3. Risk of exchange rate fluctuations
Overseas sales which are mainly settled in USD account for over 20% of the Company’s total sales.If RMB experiences significant appreciation the price competitiveness of overseas sales could be
undermined and exchange losses may increase which will produce adverse impacts on the
Company’s net profit.Countermeasures: By keeping abreast of and analyzing exchange rate policies and fluctuation trend
of settlement currencies in time intensifying settlement currency management and carrying out
foreign exchange hedging business when the timing is right the Company can relatively lock in
exchange rates and minimize the risks brought by exchange rate fluctuations.
4. Risk associated with the recoverability of accounts receivable
Receivables grow along with the Company’s business. Customers who fail to repay loans timely or
become insolvent due to changes in macroeconomic trends market environments and their business
will place the Company at the risk of non-performing receivables.Countermeasures: In order to reduce the receivable collection risk the Company can constantly
optimize the receivable risk management system categorise customers for better management
regularly assess customers’ credit profiles and enhance customer risk assessment. Meanwhile it can
reinforce contract approval and management double its effort to collect receivables and incorporate
the collection of receivables into the performance assessment system for business departments.XII Communications with the Investment Community such as Researches Inquiries and
Interviews
□Applicable □ Not applicable
50Foshan Electrical
Main discussions
Way of Type of Index to communication
Date Place Visitor and materials
communication visitor information
provided
See Investor
5 January One-on-one GF Securities Guolian Relations
The Company Institution http://www.cninfo.com.cn
2024 meeting Fund C&S Paper Activities Log
Sheet No. 2024-01
Foshan Listed
Companies Association
Sanshui District See Investor
26 January One-on-one Institutions Enterprise Promotion Relations
The Company http://www.cninfo.com.cn
2024 meeting individuals for Listing Association Activities Log
CITIC Securities and 44 Sheet No. 2024-02
other individual and
institutional investors.CICC CITIC Securities See Investor
Comein
Through an Guotai Junan Securities Relations
7 May 2024 Finance Online Institution http://www.cninfo.com.cn
online platform and 15 other Activities Log
Conference
institutional investors. Sheet No. 2024-03
Zhongxin Rongchuang
Wanhe Guodu Venture See Investor
16 May One-on-one Capital Dongxing Relations
The Company Institution http://www.cninfo.com.cn
2024 meeting Securities and eight Activities Log
other institutional Sheet No. 2024-04
investors.A wide range of See Investor
20 May www.quanjing. Through an investors who Relations
Other http://www.cninfo.com.cn
2024 com online platform participate remotely Activities Log
over the Internet. Sheet No. 2024-05
Barclays AMBIENTA
SGR SPA LH NR UK See Investor
23 May One-on-one (MANAGEMENT) Relations
The Company Institution http://www.cninfo.com.cn
2024 meeting LLP J.P. Morgan Asset Activities Log
Management Qatar Sheet No. 2024-06
Investment Authority.Foshan Listed
Companies Association
See Investor
Zhuhai Dinghua Equity
27 June One-on-one Relations
The Company Institution Investment Guangdong http://www.cninfo.com.cn
2024 meeting Activities Log
Baolong Private Equity
Sheet No. 2024-07
Fund and 12 other
institutional investors.The State-owned Assets
Supervision and
Administration
Commission of
Guangdong Province
SZSE Listed
SZSE Listing Companies Association
Hall of Guangdong See Investor
5“Panorama * Guangdong Rising RelationsNovember Other Other http://www.cninfo.com.cn
Roadshow Holdings Group along Activities Log
2024World” with over 200 Sheet No. 2024-08
website. institutional investors
and media
representatives
participated with the
entire event also being
live-streamed on
www.quanjing.com.XIII Formulation and Implementation of the Market Value management System and Valuation
Promotion Plan
Has the Company established a market value management system
51Foshan Electrical
□Yes □No
Has the Company disclosed a valuation improvement plan
□Yes □No
XIV Implementation of the “Quality and Earnings Dual Improvement” Action Plan
Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action
Plan.□Yes □No
52Foshan Electrical
Part IV Corporate Governance
I General Information of Corporate Governance
During the Reporting Period in strict accordance with relevant requirements of Company Law
Securities Law Code of Corporate Governance of Listed Companies in China and Rules of Stock
Listing of Shenzhen Stock Exchange as well as other relevant laws rules and regulations the
Company continuously perfected the corporate governance structure and set up an effective corporate
governance system. At present the Company has set up governance structure of responsible
Shareholders’ General Meeting the Board of Directors the Supervisory Committee and managers
who performed right of decision-making execution and supervision respectively according to their
duties; besides the Company set up special committees of the Board of Directors and system for
independent directors. The Company strengthened information disclosure of principal shareholders
and persons acting-in-concert forbidden shareholders of the Company to misapply their rights. The
Company separated from the principal shareholder in personnel assets business financial affairs and
organizational and was absolutely impendent. The Company timely revised and perfected various
systems in accordance with the latest issued laws & rules and relevant regulations of CSRC and SZSE.And the corporate governance is basically in line with the requirements of relevant laws regulations
and regulatory documents.Indicate by tick market whether there is any material incompliance with the applicable laws
regulations or rules issued by the CSRC governing the governance of listed companies.□Yes □No
No such cases in the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Asset Personnel Financial Affairs Organization and Business
The Company is completely separated from its controlling shareholder and actual controller in aspects
such as business personnel assets institutions and finance and possesses independent and complete
business and self-dependent operating ability.
1. As for the business the Company is independent of its controlling shareholder and actual controller
and their subordinate enterprises and owns the independent business departments and management
system as well as possesses of impendent and entire business and self-dependent operating ability.
2. As for the personnel the Company formulates the independent management system such as the
labor personnel and the salary possesses the independent personnel department and the operating
management team. The Senior Executives of the Company are serving at the Company in full time
and receiving the salary from the Company.
3. As for the assets the assets of the Company are independent and entire with clear ownership and
possesses the independent production system BOP system and the supporting facilities as well as
possesses the legal ownership of the land factories equipments related to the production and
operating and the assets such as the trademark patent and the non-patent technology and possesses
the entire control and govern power of all the assets of the Company without any behavior such as
the controlling shareholder or the actual controller occupies the assets of the Company.
4. As for the institutions the Company set up the independent and entire organizations and institutions
and the construction as well as the operating of the corporate governance institutions is executed
strictly executed according to the Articles of Association and the production and operating as well as
53Foshan Electrical
the offices are entirely independent from the controlling shareholder and the actual controller with
any situation of working under one roof with the controlling shareholder or the actual controller.
5. As for the finance the Company set up the independent finance department and builds up the
independent and normative accounting and financial control system according to the requirements of
the ASBE set up the independent bank account and pays the taxes legally and independently and the
Company could make the financial decisions independently without any situation of the controlling
shareholder or the actual controller intervenes the capital usage of the Company.III Horizontal Competition
□Applicable □Not applicable
IV Annual and Special General Meetings Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
Investor Resolutions of the
Meeting Type Convened date Disclosure date
participation ratio meeting
The 1st Resolutions of the
Extraordinary Extraordinary 1st Extraordinary
41.42% 26 February 2024 27 February 2024
General Meeting General Meeting General Meeting
of 2024 of 2024
Resolutions of the
The 2023 Annual Annual General
41.16% 14 May 2024 15 May 2024 2023 Annual
General Meeting Meeting
General Meeting
The 2nd Resolutions of the
Extraordinary Extraordinary 2nd Extraordinary
42.43% 10 October 2024 11 October 2024
General Meeting General Meeting General Meeting
of 2024 of 2024
The 3rd Resolutions of the
Extraordinary Extraordinary 16 December 17 December 3rd Extraordinary
42.49%
General Meeting General Meeting 2024 2024 General Meeting
of 2024 of 2024
2. Special General Meetings Convened at the Request of Preferred Shareholders with Resumed
Voting Rights
□Applicable □Not applicable
V Directors Supervisors and Senior Management
1. General Information
Increase Decrease
Other
Beginning in the in the Ending Reason
Gende Incumben Start of End of increase
Name Age Office title shareholdin Reporting Reporting shareholding for share
r t/Former tenure tenure /decreas
g (share) Period Period (share) changes
e (share)
(share) (share)
Chairman
Incumben 26 February
Wan Shan Male 55 of the 0 0 0 0 0
t 2024
Board
Vice
25
Zhuang Chairman Incumben
Male 73 December 11903509 0 0 0 11903509
Jianyi of the t
2015
Board
Incumben 26 February
Director
t 2024
Zhang
Male 47 21 73052 0 0 0 73052
Xuequan General Incumben
December
Manager t
2023
54Foshan Electrical
Increase Decrease
Other
Beginning in the in the Ending Reason
Gende Incumben Start of End of increase
Name Age Office title shareholdin Reporting Reporting shareholding for share
r t/Former tenure tenure /decreas
g (share) Period Period (share) changes
e (share)
(share) (share)
Chen Incumben 26 February
Male 41 Director 0 0 0 0 0
Mingjie t 2024
Incumben 30 June
Hu Fengcai Male 59 Director 0 0 0 0 0
t 2022
Incumben 14 May
Li Zehua Male 39 Director 0 0 0 0 0
t 2024
13
Independe Incumben
Li Xiyuan Male 64 September 0 0 0 0 0
nt Director t
2021
13
Zhang Independe Incumben
Male 59 September 0 0 0 0 0
Renshou nt Director t
2021
Independe Incumben 24 August
Dou Linping Male 65 0 0 0 0 0
nt Director t 2020
Chairman
of the
Incumben 14 May
Chen Xinjie Male 51 Supervisor 0 0 0 0 0
t 2024
y
Committee
16
Femal Incumben
Xi Lijia 36 Supervisor December 0 0 0 0 0
e t
2024
25
Zhuang Incumben
Male 39 Supervisor December 0 0 0 0 0
Junjie t
2015
Zhang Incumben 10 October
Male 50 Supervisor 0 0 0 0 0
Xiubo t 2024
Incumben 10 October
Su Houxu Male 33 Supervisor 0 0 0 0 0
t 2024
Executive
Deputy Incumben 5 February
Zhang Yong Male 50 77596 0 0 0 77596
General t 2024
Manager
Deputy
Incumben 13 May
Chen Yu Male 52 General 66066 0 0 0 66066
t 2014
Manager
Deputy
Zeng Femal Incumben 14 May
46 General 0 0 0 0 0
Xiaojing e t 2024
Manager
Deputy
Incumben 30 August
Wang Ye Male 48 General 5600 0 0 0 5600
t 2024
Manager
Chief
Tang Femal Incumben 26 January
54 Financial 75940 0 0 0 75940
Qionglan e t 2016
Officer
Secretary
Huang of the Incumben 19 May
Male 37 0 0 0 0 0
Zhenhuan Board of t 2021
Directors
Chairman 23
Wu
Male 54 of the Former 7 May 2020 February 0 0 0 0 0
Shenghui
Board 2024
Deputy 25
Huang 5 February
Male 55 General Former December 0 0 0 0 0
Zhiyong 2024
Manager 2015
Chairman
of the
18 January 17 April
Li Jingwei Male 48 Supervisor Former 0 0 0 0 0
20222024
y
Committee
Li Yizhi Male 37 Supervisor Former 24 August 29 0 0 0 0 0
55Foshan Electrical
Increase Decrease
Other
Beginning in the in the Ending Reason
Gende Incumben Start of End of increase
Name Age Office title shareholdin Reporting Reporting shareholding for share
r t/Former tenure tenure /decreas
g (share) Period Period (share) changes
e (share)
(share) (share)
2020 November
2024
10
Ye 27 May
Male 51 Supervisor Former October 77561 0 0 0 77561
Zhenghong 2010
2024
2010
Lin Qing Male 55 Supervisor Former September October 22583 0 0 0 22583
20162024
Deputy 28
19 January
Wei Bin Male 55 General Former September 105226 0 0 0 105226
2024
Manager 2009
Total -- -- -- -- -- -- 12407133 0 0 0 12407133 --
Indicate by tick mark whether any director supervisor or senior management resigned during the
Reporting Period.□Yes □ No
In February 2024 Mr. Wu Shenghui resigned as Chairman of the Board and Director and from the
relevant special committees of the Company due to reassignment.In February 2024 Mr. Huang Zhiyong resigned as Director and from the relevant special committees
of the Company due to reassignment.In April 2024 Mr. Li Jingwei resigned from his position as a supervisor and chairman of the
Supervisory Committee of the Company due to a job transfer.In November 2024 Mr. Li Yizhi resigned from his position as a supervisor of the Company due to a
job transfer.In October 2024 Mr. Ye Zhenghong and Mr. Lin Qing ceased to serve as supervisors of the Company
due to the expiration of their term in the 9th Supervisory Committee and the subsequent reshuffle.In January 2024 Mr. Wei Bin resigned as Deputy General Manager of the Company due to
reassignment.Change of directors supervisors and senior management:
□Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Wu Shenghui Chairman of the Board Former 23 February 2024 Job transfer
Huang Zhiyong Director Former 5 February 2024 Job transfer
Chairman of the
Li Jingwei Former 17 April 2024 Job transfer
Supervisory Committee
Li Yizhi Supervisor Former 29 November 2024 Job transfer
Ye Zhenghong Supervisor Former 10 October 2024 Board change
Lin Qing Supervisor Former 10 October 2024 Board change
Wei Bin Deputy General Manager Former 19 January 2024 Job transfer
Wan Shan Chairman of the Board Elected 26 February 2024 Job transfer
Zhang Xuequan Director Elected 26 February 2024 Job transfer
Zhang Xuequan General Manager Appointed 21 December 2023 Job transfer
Chen Mingjie Director Elected 26 February 2024 Job transfer
Li Zehua Director Elected 14 May 2024 Job transfer
Chen Xinjie Chairman of the Elected 14 May 2024 Job transfer
56Foshan Electrical
Supervisory Committee
Xi Lijia Supervisor Elected 16 December 2024 Job transfer
Zhang Xiubo Supervisor Elected 10 October 2024 Board change
Su Houxu Supervisor Elected 10 October 2024 Board change
Executive Deputy General
Zhang Yong Appointed 5 February 2024 Job transfer
Manager
Zeng Xiaojing Deputy General Manager Appointed 14 May 2024 Job transfer
Wang Ye Deputy General Manager Appointed 30 August 2024 Job transfer
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the
incumbent directors supervisors and senior management:
(I) Work experience of the directors
Mr. Wan Shan: Born in October 1969 a member of the Communist Party of China MBA of College
of Public Management of Sun Yat-Sen University. He was the Deputy Director Clerk of the Lecturers’
Brigade in the Propaganda Department of the Guangdong Provincial Party Committee. He also
worked as a team member in the “Ten Hundred Thousand Million” Work Team stationed in
Yongdong Village Rongcheng District Jieyang City. Additionally Wan Shan held the position of
Deputy Director in the Research and Teaching Office of the Lecturers’ Brigade in the Publicity
Department of CPC Guangdong Provincial Committee. He further served as the Deputy Director of
the Office in the Publicity Department of CPC Guangdong Provincial Committee the Director of the
Office of the Publicity Department of CPC Guangdong Provincial Committee Deputy Director in the
State-owned Cultural Assets Supervision and Administration Office of the People’s Government.Furthermore he has worked as the Assistant to the General Manager and Secretary of Board of
Directors as well as the Office Director at Guangdong Rising Assets Management Co. Ltd. He was
also the Deputy Secretary of the Party Committee Director and Chairman of the Labor Union in
Foshan NationStar Optoelectronics Co. Ltd as well as the Director of Party-Masses Department of
Guangdong Rising Holdings Group Co. Ltd. (now renamed as Guangdong Rising Holdings Group
Co. Ltd.). He has served as Secretary of Party Committee in the Company since January 2024; and
as the Chairman of the Board of the Company since February 2024.Mr. Zhuang Jianyi: Born in 1951 with a bachelor’s degree and MBA. Currently the chairman of
Prosperity Lamps & Components Limited and a director of Thinkon Semiconductor Jinzhou Corp.he has been engaged in the lighting industry for nearly fifty years. From 1995 to 2010 he acted as
the Directors the Vice Chairman of the Board and the Chairman of the Board of the Company. And
he has been serving as the Vice Chairman of the Board of the Company since December 2015.Mr. Zhang Xuequan: Born in December 1977 a member of the Communist Party of China MBA
of Lingnan College of Sun Yat-Sen University. He joined the Company in 1996. He worked in the
former Iodine-tungsten Lamp Workshop from October to December 1996; worked in the Technology
Department and then the Quality Control Department from January 1997 to August 2002; acted as
the Workshop Manager of Lamp Workshop from September 2002 to May 2008; acted as the
Department Director of the Business Management Department of the Company from June 2008 to
August 2016. He concurrently acted as the Office Director and the Head of the Investment
Department from February 2016 to December 2018. He was the Party Branch Secretary for the
Administrative Office of the Company from July 2010 to June 2017 and a member of the party
committee of the Company since July 2015. He was a supervisor of the Company from May 2013 to
August 2016 a Deputy General Manager of the Company from August 2016 to March 2020 an
Executive Deputy General Manager of the Company from March 2020 to December 2023. He has
been serving as the Deputy Secretary of the CPC Committee and General Manager of the Company
57Foshan Electrical
since December 2023 and a Director of the Company since February 2024. He has also served as a
director of FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) chairman and general manager of
Foshan Taimei Times Lamp Co. Ltd. executive director of Foshan Kelian New Energy Technology
Co. Ltd. director of Nanning Liaowang Auto Lamp Co. Ltd. and a director of Foshan NationStar
Optoelectronics Co. Ltd.Mr. Chen Mingjie: Male born in September 1983 a member of the Communist Party of China. He
graduated with a Master’s degree in Business Administration from the School of Business at Renmin
University of China. He served as the Deputy Supervisor of the Political and Cultural Department at
Guangdong People’s Broadcasting Station; the Secretary of the Party Committee Office Senior
Supervisor Deputy Director then the Director and Youth League Committee Secretary of the Party
and Mass Personnel Department at Guangdong Provincial Guangsheng Asset Management Co. Ltd.(now renamed as Guangdong Provincial Guangsheng Holdings Group Co. Ltd.). He has been the
Deputy Secretary of the Party Committee and Chairman of the Labor Union in the Company since
August 2023; as the Director of the Company since February 2024.Mr. Hu Fengcai: Born in September 1965 member of the Communist Party of China graduated
from the Party School of the Guangdong Provincial Committee of CPC majoring in Modern
Economic Management. He is a senior accountant. He has held positions such as Deputy Manager of
the Finance Department and Deputy Manager and Manager of the Financial Audit Department of
Guangdong Metallurgical Industry Corporation of Guangdong Metallurgical Industry Corporation;
member of the Party Committee and Deputy General Manager of Guangdong Guangye Metallurgical
Limited Corporation; Independent Director of SGIS Songshan Co. Ltd.; director member of the
Party Committee and Deputy General Manager of Guangdong Rising Metallurgical Co. Ltd.;
Chairman of the Third Working Group of the Supervisory Committee and Deputy Director of the
Operation Management Department at Guangdong Rising Assets Management Co. Ltd. (now
renamed Guangdong Rising Holdings Group Co. Ltd.); Deputy Director of the Operation
Management Department of Guangdong Rising Holdings Group Co. Ltd.; Director of Foshan
NationStar Optoelectronics Co. Ltd.; and Guangdong Fenghua Advanced Technology Holding Co.Ltd.; he is currently a dedicated director dispatched by Guangdong Rising Holdings Group Co. Ltd.to listed companies and a director of Guangdong Rising Mining Group Co. Ltd. He has been a
Director of the Company since June 2022.Mr. Li Zehua: Male born in October 1985 a member of the Communist Party of China. He holds a
Master’s degree in Law and has obtained the legal professional qualification certificate and the
secretary of Board of Directors qualification certificate for listed companies. He has served as Deputy
Director and Director of the Office Director of the Party-Masses Department Director of the Human
Resources Department Director of the Securities and Legal Affairs Department Director of the
Investment Management Department Secretary of Li Zehua: Male born in October 1985 a member
of the Communist Party of China. He holds a Master’s degree in Law and has obtained the legal
professional qualification certificate and the secretary of Board of Directors qualification certificate
for listed companies. and Chief Legal Counsel at Dongjiang Environmental Company Limited. He
is currently a Party Committee Member and Deputy General Manager of Guangdong Electronics
Information Industry Group Ltd. as well as the Chairman ofShenzhen Yuebao Electronic Technology
Co. Ltd. He has been a Director of the Company since May 2024.Mr. Li Xiyuan: Born in March 1961 member of the Communist Party of China no permanent
residence abroad postdoctoral degree professor-level senior engineer. He has previously served as
Deputy Director of the Construction Management Office of the Northern Section of Beijing-Zhuhai
Expressway in Guangdong Province Deputy Director of the Infrastructure Management Department
at Guangdong Provincial Communication Group Co. Ltd. General Manager of Guangdong Gaintop
58Foshan Electrical
Highway Engineering Construction Group Co. Ltd. General Manager and Chairman of Guangdong
Provincial Expressway Development Co. Ltd. Chairman of Guangdong Road and Bridge
Construction Development Co. Ltd. and Director of Guangdong Construction Engineering Group
Co. Ltd. Guangdong Province Navigation Group Co. Ltd. Guangdong Namyue Group Co. Ltd.and Guangdong Provincial Railway Construction Investment Group Co. Ltd. He is currently an
external director of Guangzhou Port Group Co. Ltd. Guangzhou High-tech Industry Group Co. Ltd.and Zhongshan Cuiheng Group Co. Ltd. as well as an independent director of Shenzhen Tagen
Group Co. Ltd. and Dongguan Development (Holdings) Co. Ltd. He has been an Independent
Director of the Company since September 2021.Mr. Zhang Renshou: Born in May 1965 Ph.D. professor postdoctoral co-supervisor doctoral
supervisor no permanent residence abroad doctoral degree. Former assistant lecturer lecturer and
associate professor at the Guangzhou Foreign Language Training Centre of the Ministry of Petroleum
Industry; editor at the Development Research Centre of People’s Government of Guangdong
Province; currently a professor in the Accounting Department of the School of Management at
Guangzhou University; a special researcher at the Consultancy Office of the People’s Government of
Guangdong Province; and an independent director at Jiangmen Rural Commercial Bank Limited.(non-listed company) Guangdong Provincial Expressway Development Co. Ltd. and Thinkon
Semiconductor Jinzhou Corp.. He also serves as: Member of the Expert Group of the Budget
Committee of Guangzhou Municipal People’s Congress Member of the Expert Group of the
Economic Committee of Guangzhou Municipal People’s Congress Member of the 8th Committee of
Guangdong Social Sciences Association Member of the Academic Committee of Research Center
for Guangdong Local Public Finance Professional Advisory Committee Member of Guangdong
Statistics Bureau Member of the Academic Committee of Guangdong Coastal Economic Belt
Development Research Center President of Guangdong South China Economic Development
Research Association Major Administrative Decision Demonstration Expert and Innovation and
Entrepreneurship Development Expert of Shaoguan Municipal People’s Government of Guangdong
Province and Special Researcher of Guangzhou Taxation Bureau of State Taxation Administration
of the People’s Republic of China. He has been an Independent Director of the Company since
September 2021.Mr. Dou Linping: Male born in August 1959 with no right of permanent residence in a foreign
country holds a Bachelor’s degree and is a Senior Engineer. Previously he has served as Deputy
Chief of the Design Section of Beijing Luminaries Factory Director of the Office of Design Standards
and then Vice Director of Beijing Luminaries Research Institution Deputy Secretary-General and
Managing Director of China Association of Lighting Industry and Managing Director and Secretary-
General of China Illuminating Engineering Society. At present he serves as Vice Director-General
of China Solid State Lighting Alliance Director of the Urban Cultural and Tourism Lighting
Professional Committee of CSA and Independent Director of Hengdian Group TOSPO Lighting Co.Ltd. and Beijing New Space Technology Co. Ltd. He has been an Independent Director of the
Company since August 2020.
2. Work experience of the supervisors
Mr. Chen Xinjie: Male born in November 1973 a member of the Communist Party of China with
a university degree. He has previously served as Quartermaster Sergeant and Deputy Platoon Leader
of the Huadu City Squad Guangzhou Detachment Guangdong Provincial Corps of the Chinese
People’s Armed Police Force Platoon Leader of the 10th Squad and 7th Squad Guangzhou
Detachment Head of the Training Section of the Command Headquarters Deputy Chief of Staff and
Chief of Staff of the Guangzhou Detachment; Commander of the Zhanjiang Detachment Guangdong
Provincial Corps of the Chinese People’s Armed Police Force; Colonel Commander of the Zhanjiang
59Foshan Electrical
Detachment Guangdong Provincial Corps of the Chinese People’s Armed Police Force; Deputy
Director of the Petition and Stability Maintenance Department and Director of the People’s Armed
Forces Department at Guangdong Rising Holdings Group Co. Ltd.; and Deputy Director of the Party-
Masses Department (including the CPC Publicity Department Corporate Culture Department Union
Office and People’s Armed Forces Department) and Director of the People’s Armed Forces
Department at Guangdong Rising Holdings Group Co. Ltd. Since April 2024 he has served as a
member of the Company’s Party Committee and the Secretary of Committee for Discipline Inspection.Since May 2024 he has also served as the Chairman of the Company’s Supervisory Committee.Ms. Xi Lijia: Female born in December 1988 a member of the Communist Party of China. She
holds a Master’s degree in National Economics from Nanjing University and has obtained
qualifications as a Certified Public Accountant legal professional and intermediate-level accounting
professional. She has previously served as a Senior Auditor in the Audit and Assurance Department
at Deloitte Huayong Certified Public Accountants (Special General Partnership) Guangzhou Branch
as well as in the Operations Management position in the Urban Comprehensive Development
Division and the Audit position in the Risk Control Department at CCCC Urban Investment Holding
Limited. Since July 2024 she has been serving as a Senior Supervisor in the Audit Department at
Guangdong Rising Holdings Group Co. Ltd. He has been a Supervisor of the Company since
December 2024.Mr. Zhuang Junjie: Male born in September 1985 a permanent resident of Hong Kong with a
Bachelor’s degree. He previously served as a Software Consultant Manager at Accenture and is
currently serving as the Director and General Manager of Prosperity Lamps & Components Limited.He has been a Supervisor of the Company since December 2015.Mr. Zhang Xiubo: Male born in November 1974 a member of the Communist Party of China with
a university degree and an engineer. He joined the company in 1996. From February 2007 to
September 2020 he served as Assistant to the Director of the Zhongdeng Workshop Director of the
Zhongdeng Workshop Director of the Single-end Lamp Workshop Director of the Halogen Lamps
Workshop and Director of the PCB Workshop. From September 2020 to May 2021 he served as the
Director of the Procurement Department. From May 2021 to May 2024 he served as the Director of
the Bidding Centre. From April 2024 to June 2024 he served as the Director of the Bidding Centre
Party Secretary and General Manager of Gaoming Company Executive Director of FSL Chanchang
Lighting Co. Ltd. and Chairman of Foshan Taimei Times Lamp Co. Ltd. Since June 2024 he has
served as the Party Secretary and General Manager of Gaoming Company Executive Director of FSL
Chanchang Lighting Co. Ltd. and Chairman of Foshan Taimei Times Lamp Co. Ltd. Since October
2024 he has also served as the Assistant General Manager of the Company. He has been a Supervisor
of the Company since October 2024.Mr. Su Houxu: Male born in July 1991 a member of the Communist Party of China with a
university degree. He previously served as a Project Specialist Deputy Manager Manager and
Deputy Director of the Project Development Department at Guangdong Zhonglv (Linzhi) Tourism
and Culture Investment Co. Ltd. He joined the Company in 2020 and served as the Deputy Director
of the Party-Masses Department (Party Committee Office Union Office) from September 2020 to
April 2022 (in charge of work). From April 2022 to October 2022 he served as the Deputy Director
of the Party-Masses Department (Union Office) (in charge of work). From October 2022 to November
2024 he served as the Director of the Party-Masses Department (Union Office) and Party Branch
Secretary of the Party-Masses Department while also serving as the Vice Chairman of the Company’s
Trade Union and Secretary of the Youth League Committee. Since November 2024 he has served as
the Director of the Party-Masses and Human Resources Department while also serving as the
60Foshan Electrical
Secretary of the Company’s Youth League Committee. He has been a Supervisor of the Company
since October 2024.
3. Work experience of the senior management staff
Mr. Zhang Xuequan: Male born in December 1977 a member of the Communist Party of China
MBA of Lingnan College of Sun Yat-Sen University. He joined the Company in 1996. He worked in
the former Iodine-tungsten Lamp Workshop from October to December 1996; worked in the
Technology Department and then the Quality Control Department from January 1997 to August 2002;
acted as the Workshop Manager of Lamp Workshop from September 2002 to May 2008; acted as the
Department Director of the Business Management Department of the Company from June 2008 to
August 2016. He concurrently acted as the Office Director and the Head of the Investment
Department from February 2016 to December 2018. He was the Party Branch Secretary for the
Administrative Office of the Company from July 2010 to June 2017 and a member of the party
committee of the Company since July 2015. He was a supervisor of the Company from May 2013 to
August 2016 a Deputy General Manager of the Company from August 2016 to March 2020 an
Executive Deputy General Manager of the Company from March 2020 to December 2023. He has
been serving as the Deputy Secretary of the CPC Committee and General Manager of the Company
since December 2023 and a Director of the Company since February 2024. He has also served as a
director of FSL Zhida Electric Technology Co. Ltd. (FSL Zhida) chairman and general manager of
Foshan Taimei Times Lamp Co. Ltd. executive director of Foshan Kelian New Energy Technology
Co. Ltd. director of Nanning Liaowang Auto Lamp Co. Ltd. and a director of Foshan NationStar
Optoelectronics Co. Ltd.Mr. Zhang Yong: Male born in June 1974 a member of the Communist Party of China and a senior
engineer with a bachelor degree. He joined in the Company in July 1997. and successively acted as
Deputy Director and Director of Lamp Filament Appliance Workshop from October 1999 to June
2008; acted as Factory Director of Gaoming Fluorescent Lamps Factory and Factory Director of
Gaoming Branch Factory from July 2008 to December 2008; respectively acted as Department
Director of Product Department OEM Department Mechanical Dynamics Department and
Infrastructure Department from January 2009 to December 2012; acted as General Manager Assistant
from March 2013 to August 2016. He was a supervisor and the Chairman of the Supervisory
Committee of the Company from September 2013 to August 2016; served as the chairman of the
Labor Union of the Company from September 2013 to May 2019; acted as the Deputy Party Secretary
from July 2015 to 27 December 2021; and was a Deputy General Manager of the Company from
August 2016 to January 2024. And he has been an Executive Deputy General Manager of the
Company since February 2024. Appointed as a director of Foshan NationStar Optoelectronics Co.Ltd. starting from October 2024.Mr. Chen Yu: Male born in December 1972 a member of the Communist Party of China and an
engineer with a bachelor’s degree. He entered the Company in 1994. And acted as workshop manager
of parabolic reflector coating film energy-saving lamps factory director of the branch factory of
Gaoming and workshop manager of general bulbs from January 1997 to December 2012 acted as
Director of Production Department OEM Department and Mechanical Served as the head of the
Production Department OEM Department and Mechanical Power Department from January 2013 to
August 2013. From September 2013 to May 2014 served as the head of the Production Department
and OEM Department. He has been the Deputy General Manager of the Company since May 2014.Since Starting from August 2021 he has also served as the Chairman of Nanning Liaowang Auto
Lamp Co. Ltd.Ms. Zeng Xiaojing: Female born in October 1978 a member of the Communist Party of China with
a university degree and a certified accountant. She has previously served as the Deputy Head of the
61Foshan Electrical
Finance Section at Guangdong Petroleum Enterprise Group Yunfu City Company; Deputy Director
of the Finance and Asset Department and Head of Financial Computerisation Management at Sinopec
Guangdong Yunfu Petroleum Branch; Chief Accountant and Deputy Director of the Finance
Department at Guangdong Yunfu Salt Industry General Company; Head of the Finance Section and
Manager of the Finance Management Department at Guangdong Yunfu Salt Industry Group Co. Ltd.;
Deputy General Manager (Deputy Director) Executive Director Legal Representative and Party
Branch Secretary at Guangdong Yunfu Salt Industry Group Co. Ltd. (Yunfu Salt Industry Bureau);
and Deputy General Manager Executive Director (Legal Representative) General Manager and
Party Committee Secretary at Guangdong Zhaoqing Salt Industry Group Co. Ltd. He has been the
Deputy General Manager of the Company since May 2024.Mr. Wang Ye: Male born in January 1977 with a postgraduate degree and an Executive MBA
(EMBA) from China Europe International Business School (CEIBS). He has previously served as
Senior Director of the South China Regional Headquarters at Orient Overseas Logistics (China) Ltd.Senior Manager at the Supply Chain Headquarters of Danone (China) Food and Beverage Co. Ltd.Deputy General Manager of Logistics Management Headquarters at Qingdao Beer Co. Ltd. Head of
the Supply Chain Centre Vice President and General Manager of the E-commerce Division at Opple
Lighting Co. Ltd. He has been the Deputy General Manager of the Company since September 2024.Ms. Tang Qionglan: Female born in March 1970 a member of the Communist Party of China with
a bachelor’s degree and a Certified Public Accountant (CPA) in China. She has previously served as
an Audit Project Manager at BDO China Guangdong Shu Lun Pan Certified Public Accountants LLP
Foshan Branch Deputy Head and Head of the Finance Department at Foshan NationStar
Optoelectronics Co. Ltd. as well as Chief Financial Officer Deputy General Manager and Financial
Manager. She has served as the Chief Financial Officer of the Company since January 2016.Concurrently she has also served as a director of Xiamen Bank Co. Ltd. since September 2016.Mr. Huang Zhenhuan: Male born in December 1987 he holds a master’s degree in finance is a
financial economist and has obtained the qualification certificate of Secretary of the Board of
Directors issued by SZSE. He used to be the sponsor of Assets Department Assistant General
Manager of Investment Department and General Manager of Finance Department of Guangzhou
Guangyong State-owned Asset Sales Co. Ltd. General Manager of Guangzhou Guangyong Equity
Investment Fund Management Co. Ltd. General Manager of Corporate Finance Department III
(Industry Center) of Minsheng Bank Guangzhou Branch Investment Director of Guangdong Rising
Finance Holding Co. Ltd. (GD Rising Finance) and Senior Director of Capital Operation Department
of Guangdong Rising Holdings Group Co. Ltd. He has served as Secretary of the Board of Directors
of the Company since May 2021.Offices held concurrently in shareholding entities:
□Applicable □ Not applicable
Remuneration or
Shareholding Office held in the allowance from
Name Start of tenure End of tenure
entity shareholding entity the shareholding
entity
Full-time director
Guangdong Rising accredited to the
Hu Fengcai Holdings Group listed company by Yes
Co. Ltd. capital operation
department
Guangdong Member of the
Li Zehua Electronics Party committee Yes
Information deputy general
62Foshan Electrical
Remuneration or
Shareholding Office held in the allowance from
Name Start of tenure End of tenure
entity shareholding entity the shareholding
entity
Industry Group manager
Ltd.Guangdong Rising Senior manager of
Xi Lijia Holdings Group the Audit Yes
Co. Ltd. Department
Prosperity Lamps
Chairman of the
Zhuang Jianyi & Components Yes
Board
Limited
Prosperity Lamps
Zhuang Junjie & Components Director and GM Yes
Limited
Offices held concurrently in other entities:
□Applicable □ Not applicable
Remuneration or
Office held in the
Name Other entity Start of tenure End of tenure allowance from
entity
the entity
Thinkon
Zhuang Jianyi Semiconductor Director Not
Jinzhou Corp.Guangdong Rising
Hu Fengcai Mining Group Director Yes
Co. Ltd.Guangzhou Port
Li Xiyuan Director Yes
Group Co. Ltd.Dongguan
Development Independent
Li Xiyuan Yes
(Holdings) Co. Director
Ltd.Shenzhen Tagen Independent
Li Xiyuan Yes
Group Co. Ltd. Director
Zhang Guangzhou Accounting
Yes
Renshou University Professor
Jiangmen Rural
Zhang Independent
Commercial Bank Yes
Renshou Director
Company Limited
Guangdong
Provincial
Zhang Independent
Expressway Yes
Renshou Director
Development Co.Ltd.Thinkon
Zhang Independent
Semiconductor Yes
Renshou Director
Jinzhou Corp.China Solid State
Dou Linping Vice Chairman Not
Lighting Alliance
Hengdian Group
Independent
Dou Linping Tospo Lighting Yes
Director
Co. Ltd.Beijing New Independent
Dou Linping Yes
Space Technology Director
63Foshan Electrical
Remuneration or
Office held in the
Name Other entity Start of tenure End of tenure allowance from
entity
the entity
Co. Ltd.Tang Xiamen Bank
Director Not
Qionglan Co.Ltd.Punishments imposed in the recent three years by the securities regulator on the incumbent directors
supervisors and senior management as well as those who left in the Reporting Period:
□Applicable □Not applicable
3. Remuneration of Directors Supervisors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors
supervisors and senior management:
The Remuneration & Appraisal Committee under the Board of Directors decided the 2023
remunerations for the leadership in accordance with the Measures for Managing the Remuneration
of the Leadership Team Members the particulars on completing current main financial indexes &
operating goals as well as the fulfillment of job responsibilities by them before submitting the
remuneration plan to the Board of Directors for approval.Remuneration of directors supervisors and senior management for the Reporting Period
Unit: RMB’0000
Total before-
Any
tax
Incumbent/ remuneration
Name Gender Age Office title remuneration
Former from related
from the
party
Company
Wan Shan Male 55 Chairman of the Board Incumbent 82.88 Not
Zhuang Vice Chairman of the
Male 73 Incumbent 0 Yes
Jianyi Board
Zhang
Male 47 Director Incumbent 264.13 Not
Xuequan
Chen Mingjie Male 41 Director Incumbent 141.27 Not
Hu Fengcai Male 59 Director Incumbent 0 Yes
Li Zehua Male 39 Director Incumbent 0 Yes
Li Xiyuan Male 64 Independent Director Incumbent 18 Yes
Zhang
Male 59 Independent Director Incumbent 18 Not
Renshou
Dou Linping Male 65 Independent Director Incumbent 18 Not
Chairman of the
Chen Xinjie Male 51 Incumbent 60.48 Not
Supervisory Committee
Xi Lijia Female 36 Supervisor Incumbent 0 Yes
Zhuang
Male 39 Supervisor Incumbent 0 Yes
Junjie
Zhang Xiubo Male 50 Supervisor Incumbent 50.59 Not
Su Houxu Male 33 Supervisor Incumbent 43.25 Not
Executive Deputy General
Zhang Yong Male 50 Incumbent 253.47 Not
Manager
Chen Yu Male 52 Deputy General Manager Incumbent 244.81 Not
Zeng
Female 46 Deputy General Manager Incumbent 52.44 Not
Xiaojing
Wang Ye Male 48 Deputy General Manager Incumbent 62.01 Not
64Foshan Electrical
Total before-
Any
tax
Incumbent/ remuneration
Name Gender Age Office title remuneration
Former from related
from the
party
Company
Tang
Female 54 Chief Financial Officer Incumbent 253.51 Not
Qionglan
Huang Secretary of the Board of
Male 37 Incumbent 76.83 Not
Zhenhuan Directors
Wu Shenghui Male 54 Chairman of the Board Former 205.58 Yes
Huang
Male 55 Deputy General Manager Former 0 Yes
Zhiyong
Chairman of the
Li Jingwei Male 48 Former 200.4 Yes
Supervisory Committee
Li Yizhi Male 37 Supervisor Former 3.31 Yes
Ye
Male 51 Supervisor Former 56.78 Not
Zhenghong
Lin Qing Male 55 Supervisor Former 42.74 Not
Wei Bin Male 55 Deputy General Manager Former 150.67 Not
Total -- -- -- -- 2299.15 --
Other information:
□Applicable □ Not applicable
Due to the failure to complete the leadership’s 2024 annual salary assessment during the Reporting
Period the pre-tax remuneration received by the Company’s directors supervisors and senior
management for the year 2024 includes the performance-based salary from 2023 that was not paid
as well as the vested incentive salary for the period from 2020 to 2023. It does not include the
performance-based salary for 2024 that has not yet been assessed and settled.Due to the the failure to complete the leadership team’s 2024.VI Performance of Duty by Directors in the Reporting Period
1. Board of Directors Meetings Convened during the Reporting Period
Meeting Convened date Disclosure date Resolutions of the meeting
The 51st Meeting of the Announcement on Resolutions of the 51st
16 January 2024 17 January 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 52nd Meeting of the Announcement on Resolutions of the 52nd
5 February 2024 6 February 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 53rd Meeting of the Announcement on Resolutions of the 53rd
26 February 2024 27 February 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 54th Meeting of the Announcement on Resolutions of the 54th
17 April 2024 19 April 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 55th Meeting of the Announcement on Resolutions of the 55th
29 April 2024 30 April 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 56th Meeting of the Announcement on Resolutions of the 56th
14 May 2024 15 May 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 57th Meeting of the Announcement on Resolutions of the 57th
18 June 2024 20 June 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 58th Meeting of the Announcement on Resolutions of the 58th
30 August 2024 31 August 2024
9th Board of Directors Meeting of the 9th Board of Directors
The 59th Meeting of the 27 September 28 September Announcement on Resolutions of the 59th
9th Board of Directors 2024 2024 Meeting of the 9th Board of Directors
1st Meeting of the 10th 10 October 2024 11 October 2024 Resolution of the First Meeting of the 10th
65Foshan Electrical
Meeting Convened date Disclosure date Resolutions of the meeting
Board of Directors Board of Directors
2nd Meeting of the 10th Resolution of the Second Meeting of the
28 October 2024 29 October 2024
Board of Directors 10th Board of Directors
3rd Meeting of the 10th 29 November 30 November Resolution of the Third Meeting of the 10th
Board of Directors 2024 2024 Board of Directors
4th Meeting of the 10th 16 December 17 December Resolutions of the 4th Meeting of the 10th
Board of Directors 2024 2024 Board of Directors
2. Directors’ Attendance at the Board of Directors and Shareholders’ Meeting
Directors’ attendance at the Board of Directors and Shareholders’ Meeting
Number of Whether or
attendance Number not attending
Number of Number of Number of
in Board of of Board of
on-site telecommunication attendance General
Directors absence Directors in
Director attendance -based attendance in Board of meetings
required from person for
in Board of in Board of Directors attended
during the Board of two
Directors Directors by proxy
Reporting Directors consecutive
Period times
Wan Shan 11 6 5 0 0 Not 3
Zhuang
13 3 10 0 0 Not 4
Jianyi
Zhang
11 6 5 0 0 Not 3
Xuequan
Chen
11 3 8 0 0 Not 3
Mingjie
Hu Fengcai 13 5 8 0 0 Not 4
Li Zehua 8 3 5 0 0 Not 2
Li Xiyuan 13 4 9 0 0 Not 4
Zhang
13 4 9 0 0 Not 4
Renshou
Dou
13 6 7 0 0 Not 4
Linping
Explanation for not attending two consecutive Board of Directors meetings in person:
Not applicable.
3. Objections Raised by Directors on Matters of the Company
Indicate by tick mark whether any directors raised any objections on any matter of the Company.□Yes □No
No such cases in the Reporting Period.
4. Other Information about the Performance of Duty by Directors
Indicate by tick mark whether any suggestions from directors were adopted by the Company.□Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period the directors of the Company worked to fulfill their functions and duties
actively attended Board of Directors meetings and Shareholders’ General Meetings offered advices
and suggestions and performed their rights functions duties and obligations as defined in the
Company Law the Securities Law and the Articles of Association. They fulfilled their role as a
66Foshan Electrical
director upheld the legitimate rights and interests of the Company and its shareholders promoted
further improvement in corporate governance and effectively facilitated regulatory compliance of the
Company’s operation. During the Reporting Period the directors of the Company actively performed
their functions and duties made full use of their professional knowledge worked diligently to fulfill
their duties and offered many invaluable advices and suggestions on the Company’s management
decision-making and major matters based on their in-depth understanding of the Company’s
operations. They played their due role in improving the Company’s supervision mechanism
promoting improvement in the Company’s risk control capacity and upholding the legitimate rights
and interests of the Company and its shareholders.VII Performance of Duty by Specialized Committees under the Board of Directors in the
Reporting Period
Opinion
Meetings Convened Contents Other Objection
Committee Members and
convened date reviewed activities (if any)
advice
Wan Shan
Review: 1.Zhuang
Proposal on
Jianyi
FSL’s 14th Five-
Zhang 17 April
Year Approved
Xuequan 2024
Development
Chen
Strategy Plan
Mingjie
(Revised)
Li Xiyuan
Review: 1.The Strategy Proposal on the
Committee of Investment by a
the 9th Board Wan Shan Controlling
of Directors Zhuang Subsidiary to
Jianyi Establish a
24
Zhang Wholly-owned
September Approved
Xuequan Subsidiary and
2024
Chen Invest in the
Mingjie Automotive
Li Xiyuan Lighting
Production
Construction
Project.Review: 1.Proposal on the
Nomination of
Li Xiyuan Candidates for
Zhang Non-independent
31 January
Renshou Directors; 2. Approved
2024
and Dou Proposal on the
The
Linping Nomination of the
Nomination
Company’s
Committee of 6
Executive Deputy
the 9th Board
General Manager.of Directors
Review: 1.Li Xiyuan
Proposal on the
Zhang 26
Nomination of the
Renshou February Approved
Chairman of the
and Dou 2024
9th Board of
Linping
Directors.Zhang 10 April Review: 1. Approved
67Foshan Electrical
Opinion
Meetings Convened Contents Other Objection
Committee Members and
convened date reviewed activities (if any)
advice
Xuequan 2024 Proposal on the
Chen Nomination of
Mingjie Non-independent
Li Xiyuan Directors for the
Zhang 9th Board of
Renshou Directors
Dou
Linping
Zhang
Xuequan
Review: 1.Chen
Proposal on the
Mingjie
10 May Nomination of the
Li Xiyuan Approved
2024 Company’s
Zhang
Deputy General
Renshou
Manager.Dou
Linping
Review:1.Proposal on the
Nomination of
Candidates for
Non-independent
Directors of the
10th Board of
Directors; 2.Proposal on the
Nomination of
Zhang
Candidates for
Xuequan
Independent
Chen
Directors of the
Mingjie
22 August 10th Board of
Li Xiyuan Approved
2024 Directors; 3.
Zhang
Proposal on the
Renshou
Nomination of
Dou
Candidates for
Linping
Chairman and
Vice Chairman of
the 10th Board of
Directors; 4.Proposal on the
Nomination of
Senior
Management
Personnel of the
Company.Zhang
Xuequan
Review: 1.Chen
Proposal on the
Mingjie
30 August Nomination of the
Li Xiyuan Approved
2024 Company’s
Zhang
Deputy General
Renshou
Manager.Dou
Linping
68Foshan Electrical
Opinion
Meetings Convened Contents Other Objection
Committee Members and
convened date reviewed activities (if any)
advice
Zhang
Renshou
Review: 1.Hu
Proposal on the
Fengcai
4 February Company’s 2023
Huang Approved
2024 Annual Financial
Zhiyong
Report and Audit
Li Xiyuan
Arrangements.and Dou
Linping
Review: 1. Report
on the 2023
financial audit
and internal
control audit
situation; 2. 2023
annual financial
settlement report;
3. 2024 annual
financial budget
report; 4.Proposal on the
provision for
asset impairment
and write-off of
The Audit and assets; 5. Special
Risk report on the
Management storage and use of
4
Committee of Zhang raised funds in
the 9th Board Renshou 2023; 6. Report
of Directors Hu on the Board of
10 April
Fengcai Directors’ Audit Approved
2024
Li Xiyuan and Risk
Dou Management
Linping Committee’s
supervision of the
accounting firm’s
duties; 7.Evaluation report
on the
performance of
the accounting
firm; 8. 2023
annual internal
control evaluation
report; 9. 2023
work report and
2024 work plan of
the Audit
Department; 10.
2023 compliance
and risk work
report.Zhang 26 April Review: 1. Report
Approved
Renshou 2024 on the First-
69Foshan Electrical
Opinion
Meetings Convened Contents Other Objection
Committee Members and
convened date reviewed activities (if any)
advice
Hu quarter Results of
Fengcai 2024; 2. Proposal
Li Xiyuan on Conducting
Dou Foreign Exchange
Linping Hedging
Business; 3.Feasibility
Analysis Report
on Conducting
Foreign Exchange
Hedging
Business; 4.Special Report on
the Storage and
Actual Use of
Raised Funds in
the Q1 2024; 5.Audit Work
Summary for the
Q1 2024.Review: 1. 2024
Half-Year Report
and Summary; 2.Proposal on the
Provision for
Impairment for
the First Half of
2024; 3. Proposal
on Changes in
Zhang Accounting
Renshou Policies; 4.Hu Special Report on
Fengcai 22 August the Storage and
Approved
Li Zehua 2024 Actual Use of
Li Xiyuan Raised Funds in
Dou the First Half of
Linping 2024; 5. Audit
Department’s
Work Summary
for the First Half
of 2024; 6.Proposal on the
Appointment of
the Company’s
Chief Financial
Officer.The Audit Zhang Review: 1. 2024
Compliance Renshou Q3 Report; 2.and Risk Hu Proposal on
25
Management Fengcai Changes in
1 October Approved
Committee of Li Zehua Accounting
2024
the 10th Li Xiyuan Policies; 3.Board of Dou Proposal on the
Directors Linping Re-appointment
70Foshan Electrical
Opinion
Meetings Convened Contents Other Objection
Committee Members and
convened date reviewed activities (if any)
advice
of the Accounting
Firm for 2024; 4.Audit
Department’s
Work Summary
for the First Three
Quarters of 2024.Review: 1.Proposal on the
Performance
Indicators for the
Company’s
Leadership for
2024 and the New
Term; 2. Proposal
Zhang
on Revising the
Renshou
Company
Hu
Leadership
Fengcai 22 August
Compensation Approved
Li Zehua 2024
Management
Li Xiyuan
Measures; 3.Dou
Proposal on
The Linping
Formulating the
Remuneration
Implementation
and Appraisal
2 Measures for the
Committee of
Term and
the 9th Board
Contract-based
of Directors
Management of
Company
Leadership.Review: 1.Proposal on the
Zhang Individual
Renshou Performance
Hu Assessment and
Fengcai 30 August Result
Approved
Li Zehua 2024 Application Plan
Li Xiyuan for the
Dou Professional
Linping Manager (Deputy
General
Manager).Zhang
Renshou Review: 1.Hu Proposal on the
The 25
Fengcai Termination of
Remuneration November Approved
Li Zehua the 2023
and Appraisal 2024
Li Xiyuan Restricted Stock
Committee of 2
Dou Incentive Plan.the 10th
Linping
Board of
Zhang Review: 1.Directors 12
Renshou Proposal on the
December Approved
Hu Implementation
2024
Fengcai Plan for the
71Foshan Electrical
Opinion
Meetings Convened Contents Other Objection
Committee Members and
convened date reviewed activities (if any)
advice
Li Zehua Performance
Li Xiyuan Assessment and
Dou Compensation
Linping Disbursement for
the Company’s
Leadership for
2023 and Their
Term.VIII Performance of Duty by the Supervisory Committee
Indicate by tick mark whether the Supervisory Committee found any risk to the Company during its
supervision in the Reporting Period.□Yes □No
The Supervisory Committee raised no objections in the Reporting Period.IX Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the Company at the
3795
period-end
Number of in-service employees of main subsidiaries
8406
at the period-end
Total number of in-service employees at the period-end 12201
Total number of employees with remuneration in this
12201
Reporting Period
Number of retirees to whom the Company or its main
244
subsidiaries need to pay retirement pension
Functions
Function Number of employees
Production 8273
Sales 792
Technical 2060
Financial 143
Administrative 933
Total 12201
Educational backgrounds
Educational background Number of employees
Junior college and below 9553
Bachelor’s degree 2381
Master’s degree 250
Doctoral degree and above 17
Total 12201
2. Employee Remuneration PolicyAdhering to the principle of “giving priority to efficiency giving consideration to fairness creatingand sharing together” the Company takes value creation as the guide constructs four sets of salary
systems of management R&D sales and production determines salary grades according to different
positions and their characteristics and inclines salary distribution to core talents and key positions
so as to maximize the enthusiasm of employees.
72Foshan Electrical
3. Employee Training Plans
The Company focuses on talent development and employee career growth establishing a training
mechanism that replaces training with practical experience and combines practical experience with
training. In line with the Company’s development needs a comprehensive training plan has been
developed incorporating both offline and online learning platforms. The Company has launched an
Entrepreneur Leadership Training Camp offering training on performance appraisal the application
of OKRs sales triad strategies and more. Additionally middle management is encouraged to visit
Huawei for learning experiences driving the upgrading of talent awareness breaking through mental
barriers and enhancing capabilities.
4. Labor Outsourcing
□Applicable □Not applicable
X Profit Distributions to Shareholders (in the Form of Cash and/or Stock)
How the profit distribution policy especially the cash dividend policy for ordinary shareholders was
formulated executed or revised in the Reporting Period:
□Applicable □ Not applicable
According to the CSRC Notice on Further Implementing Matters Related to Cash Dividend
Distribution of Listed Companies (Zheng-Jian-Fa [2012] No. 37) and the Guangdong CSRC Notice
on Further Implementing Regulations Related to Dividend Distribution of Listed Companies (Guang-
Dong-Zheng-Jian [2012] No. 91) in order to further standardize the dividend mechanism promote a
scientific sustained and stable dividend mechanism and protect legal rights and interests of investors
in 2012 the Company convened a general meeting to revise the dividend-related contents in its
Articles of Association and specify the dividend conditions the lowest dividend ratio the decision-
making procedure etc.. Meanwhile it formulated the Management Rules for Profit Distribution and
the Return for Shareholder Plan for the Coming Three Years (2024-2026) specifying the
arrangements and forms of dividends the cash dividend planning and the distribution intervals which
further improved the decision-making and supervision procedures for dividend distribution.According to the Company’s Articles of Association the profit distributed in cash shall not be less
than 30% of the distributable profit achieved in the year.Special statement about the cash dividend policy
In compliance with the Company’s Articles of
Yes
Association and resolution of general meeting
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties
Yes
and played their due role
If the Company has no dividend plan it should disclose
the specific reasons and the next steps it intends to take N/A
to enhance investor returns
Non-controlling interests are able to fully express their
opinion and desire and their legal rights and interests Yes
are fully protected
In case of adjusting or changing the cash dividend
policy the conditions and procedures involved are in N/A
compliance with applicable regulations and transparent
Indicate by tick mark whether the Company fails to put forward a cash dividend proposal for
shareholders despite the facts that the Company has made profits in the Reporting Period and the
73Foshan Electrical
profits of the Company as the parent distributable to shareholders are positive.□Applicable □Not applicable
Final dividend plan for the Reporting Period:
□Applicable □ Not applicable
Bonus shares for every ten shares (share) 0
Dividend for every ten shares (RMB) (tax inclusive) 1.2
Total shares as the basis for the profit distribution
1535778230
proposal (share)
Cash dividends (RMB) (tax inclusive) 184293387.60
Cash dividends in other forms (such as share
0.00
repurchase) (RMB)
Total cash dividends (including those in other forms)
184293387.60
(RMB)
Distributable profit (RMB) 3019769843.45
Total cash dividends (including those in other forms)
100%
as % of total profit distribution
Cash dividend policy
Where it is difficult to determine the development stage of the Company but it has plans for considerable
spending in profit distribution cash dividends shall reach at least 20% in the total profit to be distributed.Details about the proposal for profit distribution and converting capital reserve into share capital
According to the audit by WUYIGE Certified Public Accountants LLP (Special General Partnership) the parent
company achieved a net profit after tax of RMB 421528439.06 for the year 2024. Adding the undistributed
profit at the beginning of the year (RMB 2824687635.90) subtracting the profit distribution amount for 2023
(RMB 184293387.60) and deducting the reserve for surplus (RMB 42152843.91) the profit available for
distribution to shareholders at the end of 2024 is RMB 3019769843.45. The Board of Directors proposed the
profit distribution plan for 2024 as follows: Based on the total share capital of 1535778230 shares as disclosed
in the Company’s 2024 annual report a cash dividend of RMB 1.2 (including tax) will be distributed for every
ten shares to all shareholders and 0 bonus shares (including tax) will be issued. There will be no capitalisation
of reserves to increase share capital. Where any change occurs to the total shares entitled to the final dividend
due to any share repurchases equity incentive grants etc. when the final dividend plan is implemented the
dividend per share shall remain the same while the total payout amount shall be adjusted accordingly.XI Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures for
Employees
□Applicable □ Not applicable
1. Equity Incentives
On 12 June 2023 the 2023 Restricted Share Incentive Plan (Draft) together with other relevant
proposals were approved at the 44th Meeting of the 9th Board of Directors and the 22nd Meeting of
the 9th Supervisory Committee. As such the Company intended to grant no more than 13 million
restricted shares to 262 awardees. To be specific there were 11.7 million shares for the first grant
accounting for 90.00% of the total grant under the incentive plan; and there were 1.3 million reserved
shares accounting for 10.00% of the total grant under the incentive plan. The restricted shares were
A-stock ordinary shares repurchased by the Company. And the grant price for the first grant was
RMB3.81/share. For details please see the 2023 Restricted Stock Incentive Plan (Draft) and other
related announcements disclosed by the Company on http://www.cninfo.com.cn on 13 June 2023.On 29 November 2024 the Company held the 3rd meeting of the 10th Board of Directors and the 3rd
meeting of the 10th Supervisory Committee. During the meetings the Proposal on the Termination
of the 2023 Restricted Stock Incentive Plan was reviewed and approved. Given that the shares
repurchased by the Company for the 2023 Restricted Stock Incentive Plan are about to expire and
74Foshan Electrical
the decision-making and approval process for this incentive plan has not been completed the
Company has decided to terminate the implementation of the 2023 Restricted Stock Incentive Plan.For detailed information please refer to the Announcement on the Termination of the 2023 Restricted
Stock Incentive Plan and other relevant announcements disclosed by the Company on 30 November
2024 on http://www.cninfo.com.cn.
Equity incentives received by directors and senior management:
□Applicable □Not applicable
Appraisal mechanism and incentives for senior management:
None.
2. Implementation of Employee Stock Ownership Plans
□Applicable □Not applicable
3. Other Incentive Measures for Employees
□Applicable □Not applicable
XII Formulation and Implementation of Internal Control System during the Reporting Period
1. Internal Control Formulation and Implementation
During the Reporting Period the Company in accordance with the Basic Standards for Internal
Control and its supporting guidelines as well as the actual situation further revised and improved
the relevant internal control systems and established a relatively effective internal control system so
as to effectively prevent and discover risks in the process of operation and management in time and
provide guarantee for the legal compliance and asset safety of operation and management. The
Company’s Board of Directors has established an Audit Compliance and Risk Management
Committee responsible for supervising reviewing and communicating the Company’s internal and
external audits internal control system reviews risk management and compliance management. The
internal audit department of the Company is responsible for the internal audit supervision of the
Company including supervising and inspecting the implementation of the internal control system of
the Company regularly or irregularly conducting routine audits or special audits on finance internal
control major projects and their businesses and putting forward suggestions for improving internal
control to control and prevent risks. If the audit department finds major defects in internal control in
the process of supervision and inspection it has the right to report directly to the Audit Compliance
and Risk Management Committee of the Board of Directors and the Supervisory Committee.According to the identification of major defects in the Company’s internal control there were no
major defects in the internal control of financial reports and non-financial reports in 2024.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□Yes □No
XIII Management and Control of Subsidiaries by the Company during the Reporting Period
Problems
Integration Solutions Settlement Follow-up
Name Integration plan encountered in
progress taken progress settlement plan
integration
Zhejiang Hule Firstly Hule Through
Electrical Electrical systematic
None None None None
Equipment Equipment resource
Manufacturing empowered integration and
75Foshan Electrical
Co. Ltd. channel resources process
by leveraging reengineering
FSL’s mature the collaborative
channel network effects between
and industrial the two parties
customer have begun to
resources in the emerge. The next
lighting field to step will focus on
accelerate Hule advancing the
Electrical implementation
Equipment’s of shipbuilding
customer customer
expansion in the development
military and naval projects laying a
sectors. Secondly solid foundation
it deepened for achieving the
technological annual
collaboration by performance
integrating FSL’s targets.R&D expertise in
electrical control
and automation to
strengthen the
technological
barriers for Hule
Electrical
Equipment’s
intelligent ship
lighting products.Thirdly it
introduced FSL’s
lean production
management
system to drive
cost reduction and
efficiency
improvement
across the entire
value chain of
Hule Electrical
Equipment.XIV Evaluation Report or Independent Auditor’s Report on Internal Control
1. Internal Control Evaluation Report
Disclosure date of the internal
25 April 2025
control evaluation report
Index to the disclosed internal See http://www.cninfo.com.cn for the Internal Control Evaluation Report
control evaluation report 2024
Evaluated entities’ combined assets
100.00%
as % of consolidated total assets
Evaluated entities’ combined
operating revenue as % of 100.00%
consolidated operating revenue
Identification standards for internal control weaknesses
Category Weaknesses in internal control Weaknesses in internal control not
76Foshan Electrical
over financial reporting related to financial reporting
A defect should be considered a
significant deficiency if it meets any
of the following characteristics: 1. It
has been penalised for serious
violations of national laws
administrative regulations and
normative documents; 2. Due to asevere lack of the “Three Key Areasand Major Decisions” decision-
making procedure resulting in
undemocratic decision-making
A defect with any of the following processes which caused serious
characteristics should be considered decision-making errors and
a significant defect: 1. The defect significant economic losses for the
involves fraud by directors Company; 3. The negative impact
supervisors or senior management; caused by illegal or non-compliant
2. The control environment is behavior is widespread widely
ineffective; 3. The registered public attracts public attention and causes
accountant identifies a material irreparable damage to the
misstatement in the financial Company’s reputation; 4. Important
statements for the period and business operations in the
internal control failed to detect the Company’s production and
misstatement during its operation; management lack policy controls or
4. The Audit Committee and policy system failure; 5. The
internal audit function’s oversight internal control evaluation result is
of internal control is ineffective. a significant deficiency and
A deficiency should be considered effective remediation has not been
an important deficiency if it meets completed within twelve months.Nature standard
any of the following conditions: 1. Defects with the following
An identified significant deficiency characteristics should be recognised
has not been corrected within a as important defects: 1. Owing to
reasonable period; 2. Restatement partly lack of the decision-making
of previously published financial process on significant events and
statements; 3. The internal audit the undemocratic decision-making
function is ineffective; 4. The process which caused the decision-
control over the selection and making mistake that led the
application of accounting policies Company face with certain
in accordance with generally economic losses; 2. The negative
accepted accounting principles is influences owning to the unlawful
ineffective. acts and the irregularities h involve
A defect should be considered a with wide range and cause public
general deficiency if it is a control concern among the partial regions
deficiency other than the significant which bring certain harms to the
deficiencies and important reputation of the Company; 3. The
deficiencies mentioned above. system of the major business
involved with the production and
operating of the Company is
incomplete or partially invalid; 4.Tthe results of the internal control
assessment turn out to include any
serious defects and such defects fail
to be rectified effectively within 6
months.A defect should be considered a
general deficiency if it meets any of
the following characteristics: 1.
77Foshan Electrical
Due to the incompleteimplementation of the “Three KeyAreas and Major Decisions”
decision-making procedure
resulting in undemocratic decision-
making processes and decision-
making errors causing the
Company to suffer relatively small
economic losses; 2. The negative
impact caused by non-compliant
behaviour affects certain regions
and attracts limited public attention
causing minor damage to the
Company’s reputation; 3. The
general business policies related to
the Company’s production and
operations are incomplete or
partially ineffective; 4. The
remediation of general deficiencies
has not been completed within six
months.Based on the data of the 2023
According to the quantitative
consolidated statements the
criterion of the internal control
quantitative criterion of confirming
defects of the financial report the
the important degree of the
quantitative criterion of the internal
misstatement (including the false
control defects assessment of the
negatives) from of the consolidated
non-financial report confirmed by
statements of the listed companies
the Company is as follows: Serious
Quantitative standard is as follows: Serious defect:
defect: Misstatement ≥ 1.0% of the
Misstatement ≥ 1.0% of the total
total assets amount; important
assets amount; important defects:
defects: 0.5% of the total assets
0.5% of the total assets amount ≤
amount ≤ misstatement ＜1.0% of
misstatement ＜ 1.0% of the total
the total assets amount; common
assets amount; common defects:
defects: Misstatement ＜ 0.5% of
Misstatement ＜ 0.5% of the total
the total assets amount.assets amount.Number of material weaknesses in
internal control over financial 0
reporting
Number of material weaknesses in
internal control not related to 0
financial reporting
Number of serious weaknesses in
internal control over financial 0
reporting
Number of serious weaknesses in
internal control not related to 0
financial reporting
2. Independent Auditor’s Report on Internal Control
□Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
WUYIGE Certified Public Accountants LLP considered that: Foshan Electrical and Lighting Co. Ltd.maintained effective internal control of the financial report in all significant aspects according to the Basic
Standards for Internal Control and relevant regulations.
78Foshan Electrical
Independent auditor’s report on internal control
Disclosed
disclosed or not
Disclosure date 25 April 2025
See http://www.cninfo.com.cn for the Auditor’s Report
Index to such report disclosed
on Internal Control
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to
Not
financial reporting
Indicate by tick mark whether any modified opinion is expressed in the independent auditor’s report
on the Company’s internal control.□Yes □No
Indicate by tick mark whether the independent auditor’s report on the Company’s internal control is
consistent with the internal control self-evaluation report issued by the Company’s Board of Directors.□Yes □ No
XV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
None.
79Foshan Electrical
Part V Environmental and Social Responsibility
I. Major Environmental Issues
Indicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter
by the environmental protection authorities.□Yes □ No
Environmental policies and standards:
During production and operations the Company conscientiously implemented guidelines and policies
for environmental protection at all levels and strictly observed relevant laws and regulations for
environmental protection such as the Law of the People’s Republic of China on Environmental
Protection the Law of the People’s Republic of China on Prevention and Control of Air Pollution
the Law of the People’s Republic of China on Prevention and Control of Water Pollution the Law of
the People’s Republic of China on Prevention and Control of Environmental Pollution by Solid Waste
and the Law of the People’s Republic of China on Prevention and Control of Noise Pollution.Meanwhile it has put in place facilities for pollution prevention and control and ensures the stable
operation of facilities. Additionally the Company regularly commissions third parties to carry out
monitoring work in accordance with the requirements of the Environmental Monitoring Management
Measures to ensure that all pollutants are discharged in accordance with the standards.Environment-related administrative permits:
Name of the
Administrative Date of Effective
Company or its Permit No.permit granted grant period
subsidiary
Pollutant Discharge
Foshan Electrical and Registration for 17 March
91440000190352575W001W Five years
Lighting Co. Ltd. Stationary Source of 2020
Pollutant
Foshan Electrical and
Pollutant Discharge
Lighting Co. Ltd. 91440600784850061B001U 1 June 2023 Five years
Permit
Gaoming Branch
17
Foshan Taimei Times Pollutant Discharge
91440600782035581D001Q November Five years
Lamp Co. Ltd. Permit
2022
Pollutant Discharge
FSL Chanchang Registration for 18 March
91440600779203775W Five years
Lighting Co. Ltd. Stationary Source of 2020
Pollutant
Pollutant Discharge
FSL Zhida Electric
Registration for 1 September
Technology Co. Ltd. 91440605MA4UWNPY98001W Five years
Stationary Source of 2021
(FSL Zhida)
Pollutant
Foshan Haolaite Registration of Fixed 14 January
91440604MA552Q66XM001W Five years
Lighting Co. Ltd. Pollution Sources 2021
Foshan Electrical and Pollutant Discharge
Lighting Co. Ltd. Registration for 20 August
914406005666224665001Y Five years
Gaoming Lamp Stationary Source of 2021
Branch Pollutant
Nanning Liaowang Pollutant Discharge 17 March
914501001983431121001Y Five years
Auto Lamp Co. Ltd. Registration for 2020
80Foshan Electrical
Name of the
Administrative Date of Effective
Company or its Permit No.permit granted grant period
subsidiary
Stationary Source of
Pollutant
Liuzhou Guige
Pollutant Discharge
Lighting Technology 914502000836092085001V 18 July 2023 Five years
Permit
Co. Ltd.Chongqing Guinuo 25
Pollutant Discharge
Lighting Technology 91500000305128048Y001Q September Five years
Permit
Co. Ltd. 2022
Pollutant Discharge
Qingdao Guige
Registration for 29 October
Lighting Technology 913702820530892807001W Five years
Stationary Source of 2021
Co. Ltd.Pollutant
Zhejiang Hule Pollutant Discharge
Electrical Equipment Registration for 6 August
91330402796491756K001W Five years
Manufacturing Co. Stationary Source of 2020
Ltd. Pollutant
Foshan NationStar
Pollutant Discharge 24 June
Optoelectronics Co. 914406001935264036001X Five years
Permit 2024
Ltd.Foshan NationStar
Pollutant Discharge 12 January
Semiconductor 91440600570160743B001Q Five years
Permit 2024
Technology Co. Ltd.Discharge standards and pollutants discharged in production and operating activities:
Type of Name of
Discharge Total
Name of the major and major and Outlet Outlet Pollutant Total
Discharge concentrat actual Excessive
company or its characteris characteris quantit distributi discharge discharge
method ion discharg discharge
subsidiary tic tic y on standards approved
/intensity e
pollutants pollutants
Emission
Standards
Foshan
Discharge for Air
Electrical and
Exhaust d in an In the SO2: 280 Pollutants SO2: 40.597
Lighting Co. SO2 1 0.67 None
gas organized plant mg/m3 in Glass t/y
Ltd. Gaoming
manner Industry
Branch
(DB44/21
59-2019)
Emission
Standards
Foshan
Discharge for Air
Electrical and Oxynitride
Exhaust d in an In the Pollutants Oxynitride:
Lighting Co. Oxynitride 1 : 24.254 None
gas organized plant 3 in Glass 149.839 t/y Ltd. Gaoming 550mg/m
manner Industry
Branch
(DB44/21
59-2019)
Xylene
Integrated
SO2
Discharge Emission
Liuzhou Guige nitrogen Discharge
d upon Standards
Lighting Exhaust oxide d in an In the
1 reaching of Air / / None
Technology gas benzene organized plant
applicable Pollutants
Co. Ltd. toluene manner
standards (GB16297
particulate
-1996)
matter
81Foshan Electrical
Type of Name of
Discharge Total
Name of the major and major and Outlet Outlet Pollutant Total
Discharge concentrat actual Excessive
company or its characteris characteris quantit distributi discharge discharge
method ion discharg discharge
subsidiary tic tic y on standards approved
/intensity e
pollutants pollutants
volatile
organic
matter
Integrated
Discharge Emission
Liuzhou Guige Volatile Discharge
d upon Standards
Lighting Exhaust organic d in an un- In the
2 reaching of Air / / None
Technology gas compound organized plant
applicable Pollutants
Co. Ltd. s manner
standards (GB16297
-1996)
COD:
Zhejiang Hule Discharge
Wastewa COD: 846 0.046t/a COD: 0.587
Electrical COD and d by
Wastewat ter mg/L GB18918- Ammoni t/a
Equipment ammonia standards 1 None
er treatmen Ammonia: 2002 a: Ammonia:
Manufacturing nitrogen after
t station 31 mg/L 0.00051t 0.005 t/a
Co. Ltd. treatment
/a
Sulfur
dioxide
(SO? ):
29.4 Sulfur Sulfur
Sulfur mg/Nm3 dioxide: dioxide:
Zhejiang Hule Discharge
dioxide Nitrogen 0.004 t/a 0.004 t/a
Electrical d by
Exhaust nitrogen Roof of a oxides (GB17820 NOx: NOx: 0.021
Equipment standards 1 None
gas oxides building (NOx): -2012) 0.021 t/a t/a
Manufacturing after
total 137.3119 Total Total
Co. Ltd. treatment
VOCs mg/Nm3 VOCs: VOCs:
Total 0.046 t/a 0.587 t/a
VOCs:
458.9
mg/m3
Zhejiang Hule Discharge Daytime:
Electrical d upon 93.8
GB12348-
Equipment Noise Noise reaching / / dB(A) / / None
2008
Manufacturing applicable Nighttime:
Co. Ltd. standards dB(A)
Stricter
COD:
Discharge limits COD:0.0
Foshan Wastewa 14.67 COD:
COD and d by under 0069t/a
NationStar Wastewat ter mg/L 24.32t/a
ammonia standards 1 GB39731- Ammoni None
Optoelectronics er treatmen Ammonia: Ammonia:
nitrogen after 2020 and a:0.0029
Co. Ltd. t station 0.152 3.65t/a
treatment DB44/26- t/a
mg/L
2001
Total Roof of Total
VOCs East and VOCs: Total
non- West 0.25mg/m VOCs:
Discharge
Foshan methane Towers 3; non- DB44/23- 0.2068
d by
NationStar Exhaust hydrocarb South methane 67-2022- t/a; non-
standards 3 / None
Optoelectronics gas ons Area hydrocarb DB44/27- methane
after
Co. Ltd. (NMHCs) Roof of ons: 2001 hydrocar
treatment
and Tower 2.063mg/ bons:
particulate A North m3; 1.6725 t
matter Area particulate
82Foshan Electrical
Type of Name of
Discharge Total
Name of the major and major and Outlet Outlet Pollutant Total
Discharge concentrat actual Excessive
company or its characteris characteris quantit distributi discharge discharge
method ion discharg discharge
subsidiary tic tic y on standards approved
/intensity e
pollutants pollutants
matter:
<20mg/m3
(measured
concentrat
ion below
the
detection
limit or
minimum
detection
concentrat
ion)
Daytime
Discharge
Foshan 58
d upon
NationStar Nighttime GB12348-
Noise Noise reaching / / / / None
Optoelectronics 48 2008
applicable
Co. Ltd. Unit:
standards
dB(A)
COD:
Foshan Discharge COD: 34.9 4.17883
Wastewa COD:
NationStar COD and d by mg/L 6 t/a
Wastewat ter DB44/26- 9.771t/a
Semiconductor ammonia standards 1 Ammonia: Ammoni None
er treatmen 2001 Ammonia:
Technology nitrogen after 2.287 a:
t station 1.221 t/a
Co. Ltd. treatment mg/L 0.27326
6 t/a
GB14554-
Foshan Discharge
Total 93DB44/2 total
NationStar d by
Exhaust Total Roof of a VOCs: 7- VOCs: total VOCs:
Semiconductor standards 7 None
gas VOCs building 4.965 2001DB4 1.2782 6.757 t/a
Technology after
mg/m3 4/2367- t/a
Co. Ltd. treatment
2022
Foshan Discharge Daytime
NationStar d upon 57
GB12348-
Semiconductor Noise Noise reaching / / Nighttime / / None
2008
Technology applicable 47 Unit:
Co. Ltd. standards dB(A)
Pollutant treatment:
Emission and treatment of the Company’s main pollutants:
(1) Exhaust gas:
FSL: The flue gas of glass kilns and the high-temperature melting of glass raw materials generated
air pollutants such as sulphur dioxide nitric oxide and smoke during the manufacturing of semi-
products such as glass bulb shells and lamp tubes. Such flue gas was treated with semi-dry
desulfurization electric precipitation and SCR denitration. Upon treatment the standard limits for
glass kilns in the Emission Standards for Air Pollutants in Glass Industry (DB44/2159-2019): Table
1 Emission Limits of Air Pollutants were met.
Liaowang Auto Lamp: Exhaust gases like volatile organic compounds (VOCs) were mainly
generated during the manufacturing of auto luminary which were treated through Regenerative
83Foshan Electrical
Thermal Oxidizer (RTO) catalytic combustion and UV activated carbon adsorption. Upon treatment
the discharge limits and requirements stipulated in Comprehensive Discharge Standards for Air
Pollution (GB16297-1996) were met.Hule Electric Equipment: The main types of exhaust gases produced by the Company include dust
exhaust tin soldering exhaust and organic exhaust. The dust exhaust (PM10) from the spraying area
is discharged through a filter cartridge at high altitude while the cutting exhaust is discharged at high
altitude through a spray tower. The polishing exhaust is discharged in an unorganized manner through
a filter cartridge and the welding fumes are discharged in an unorganized manner. The wave
soldering and reflow soldering of two chip mounters generate exhaust gases containing tin and its
compounds which are discharged at high altitudes. The organic exhaust is separated in the flue into
two sections: drying and curing. A burner is used for heating and during the surface treatment process
the flue uses natural gas to heat and dry the metal parts. The parts then enter the powder coating
chamber and subsequently return to the flue for curing. The drying water vapour and combustion
exhaust gases from natural gas including SO? and NOx are discharged at high altitudes through the
same pipeline. The curing exhaust gases including TVOCs are treated by activated carbon
adsorption before being released at high altitudes. The emissions of powder coating dust and curing
exhaust from the powder coating process meet the relevant standard limits of Zhejiang provincial
local standard Air Pollutant Emission Standards for Industrial Coating Processes (DB33/2146-2018).The emissions from natural gas combustion meet the special emission limit requirements in Table 3
of the Emission Standards for Air Pollutants from Boilers (GB13271-2014).NationStar Optoelectronics: During the production of LED products the main pollutants generated
are COD and ammonia nitrogen. These are treated through a coagulation sedimentation + plate-frame
filter press process. After treatment the emissions meet the stricter discharge limit requirements
specified in the Electronics Industry Water Pollutant Discharge Standards (GB39731-2020) as well
as Water Pollutant Discharge Limits (DB44/26-2001) which is a local standard of Guangdong
Province.NationStar Semiconductor: a) During the production of LED epitaxial wafers the main pollutant
generated is ammonia. This is treated through an ammonia recovery process. After treatment the
emissions meet the standard limit requirements in Table 2 of the Odorous Pollutant Emission
Standards (GB14554-93). b) The manufacturing of LED chips mainly caused pollutants such as
sulfuric acid mist hydrochloric acid mist chlorine hydrogen chloride fluorides and particulate
matters. Upon treatment through Scrubber combustion-based washing and spraying equipment and
scrubbing towers for acid and alkali exhaust gas the Emission Limits of Air Pollutants (DB44/27-
2001) of Guangdong Province: Standard Class II for Time Period II were met. c) During the
production of LED chips the main pollutants generated include acetone isopropanol esters ethers
amines and others. These are treated through a process of water spraying + dehumidification and
defogging + secondary activated carbon adsorption. After treatment the emissions meet the standard
limit requirements in Table 1 of the Comprehensive Emission Standards for Volatile Organic
Compounds from Fixed Pollution Source (DB44/2367-2022).
(2) Wastewater:
FSL: The Company’s wastewater mainly came from offices and living. Domestic wastewater was
treated with a tertiary septic tank. Oily sewage from the canteen was pre-treated with an oil and
residue separation system and then transferred to wastewater treatment stations for centralized
treatment. Upon treatment the discharge limits and requirements stipulated in the Discharge Limits
of Water Pollutants (DB44/26-2001) of Guangdong Province: Standard Class I for Time Period II
were met.
84Foshan Electrical
Liaowang Auto Lamp: The manufacturing of auto luminary did not generate industrial wastewater
and mainly caused wastes such as domestic wastewater. Upon treatment through physicochemical
and biochemical the discharge limits and requirements for Level 1 standards of the Integrated
Wastewater Discharge Standard (GB 8978-1996) were met.Hule Electric Equipment: The wastewater produced by the Company primarily consists of domestic
sewage and production wastewater. The drainage system adopts a separate system for rainwater and
sewage. Domestic sewage is treated through the existing septic tank and combined with the
production wastewater that has been pre-treated by the sewage treatment station it is discharged into
the municipal sewage network through the main discharge outlet. After further treatment by Jiaxing
United Sewage Treatment Co. Ltd. to meet discharge standards the effluent is released. The
discharge of the treated effluent complies with Level 1A Standard of the Pollutant Discharge
Standards for Urban Wastewater Treatment Plants (GB18918-2002). The production wastewater
(cleaning wastewater) is treated using an “air flotation + air flotation sedimentation integrated”
process with oxidation treatment. The removal efficiencies for CODCr SS and oil are 75% 73%
and 99% respectively. The main pollutants in the treated water are CODCr 215 mg/L SS 20.7 mg/L
and oil 0.09 mg/L. The managed wastewater meets Table 4 Level 3 Standard of the Integrated
Wastewater Discharge Standards (GB8978-1996) as well as the requirements of the Indirect
Discharge Limits for Nitrogen and Phosphorus Pollutants from Industrial Enterprises (DB33/887-
2013).
NationStar Optoelectronics: During the production of LED products the main pollutants generated
are COD and ammonia nitrogen. These are treated through a coagulation sedimentation + plate-frame
filter press process. After treatment the emissions meet the discharge limit requirements specified in
the Electronics Industry Water Pollutant Discharge Standards (GB39731-2020) and the Water
Pollutant Discharge Limits (DB44/26-2001).NationStar Semiconductor: During the production of LED chips the main pollutants generated are
COD ammonia nitrogen SS and fluoride. These are treated through physicochemical and
biochemical processes. After treatment the emissions meet the indirect discharge limit requirements
of Table 1 in the Electronics Industry Water Pollutant Discharge Standards (GB39731-2020).
(3) Noises:
FSL: Noises mainly came from the operation of production machinery. Specifically water pumps
and fans that would cause loud noises were placed in a soundproof room or covered with a noise
enclosure. Hush pipes were attached to exhaust gas exhaust pipes that would cause loud noises.Liaowang Auto Lamp: Noises mainly came from the operation of production machinery.Specifically basic damping soundproof rooms and soundproof cottons were applied to injection
moulding and friction welding that would cause loud noises. The Emission Standard for Noise of
Industrial Enterprises at Boundary (GB12348-2008): Standard Class III were met.NationStar Optoelectronics: Noises mainly included mechanical and aerodynamic noises.Specifically production and process equipment were placed in a closed workshop. Soundproof rooms
vibration dampers and noise enclosures were adopted for Equipment such as air compressors water
pumps and fans that would cause loud noises.NationStar Semiconductor: Noises mainly included mechanical and aerodynamic noises.Production and process equipment was placed in a closed workshop. Soundproof rooms vibration
dampers and noise enclosures were adopted for equipment such as air compressors water pumps
and fans that would cause loud noises.Construction and operation of pollution prevention and control facilities:
85Foshan Electrical
Op
Total Design
Date of Date of Actu era
investm process
construction operation al tin
No. Facility ent Operator Processes ing
(MM/YYYY (MM/YY capac g
(RMB1 capacit
) YY) ity ho
0000) y
urs
Semi-dry flue gas
Exhaust
desulphurization 6000
gas November December Gaoming 60000 24
1 500 (SDFGD) + electric 0
treatment 2015 2015 Branch m3/h h/d
precipitation + SCR m3/h
facilities
denitration
Exhaust
Taimei Cyclone plate tower + 1200
gas September 12000 12
2 30 May 2020 Compan activated carbon 3 0 treatment 2019 m /h 3 h/d y adsorption m /h
facilities
Conditioning +
Wastewate Taimei
September coagulation + 120 120 12
3 r treatment 130 May 2020 Compan
2019 sedimentation + air m3/d m3/d h/d
facilities y
flotation + filtration
Exhaust Chancha
gas ng activated carbon 8000 8000 12
4 20 Aug-14 Apr-15
treatment Compan adsorption m3/h m3/h h/d
facilities y
Exhaust
Zhida UV photocatalytic 3500
gas September October 35000 12
5 48 Compan oxidation + activated 0
treatment 2020 2021 m3/h h/d
y carbon adsorption m3/h
facilities
Photo-
Oxygen- Activated carbon
Liaowan 7000
Activated December October adsorption + UV 70000 24
6 28 g Auto 0
Carbon 2021 2022 photo-oxidation ㎡/h h/d
Lamp ㎡/h
All-in-One catalysis
Machine
VOCs
organic
100009500
waste gas
Activated carbon cubic cubic
RTO December March Liuzhou 24
7 500 adsorption + meters meter
(regenerati 2016 2017 Lighting h/d
incineration per s per
ve thermal
hour hour
incinerator
) oxidizer
VOC
organic 3200
February Qingdao activated carbon 32000 8h/
8 waste gas 28.11 June 2018 0
2019 Lighting adsorption ㎡/h d
treatment ㎡/h
facility
RTO
(Regenerat Zeolite
Chongqi 7500
ive October adsorption+desorption 75000 24
9 500 May 2018 ng 0
Thermal 2017 +RTO catalytic ㎡/h h/d
Guinuo ㎡/h
Incinerator combustion
)
UV Chongqi Zeolite adsorption + 7000
October 70000 24
10 photocatal 200 May 2018 ng dedusting + UV 0
2017 ㎡/h h/d
ysis Guinuo photocatalysis ㎡/h
86Foshan Electrical
Op
Total Design
Date of Date of Actu era
investm process
construction operation al tin
No. Facility ent Operator Processes ing
(MM/YYYY (MM/YY capac g
(RMB1 capacit
) YY) ity ho
0000) y
urs
Method for
Hule
treating 8~
December February Electric Activated carbon 3000 1536
11 organic 3.2 11
2020 2021 Equipme adsorption treatment m3/h m3/h
exhaust h/d
nt
gasHule “Air flotation + airWastewate
October Electric flotation sedimentation 1h/
12 r treatment 20 August 2019 8 t/d 1 t/d
2019 Equipme integrated” oxidation d
station
nt treatment
Wastewate
NationSt Coagulation and 386.1 24
13 r treatment 39.5 April 2017 May 2017 600 t/d
ar sedimentation t/d h/d
station
Method for
treating the
Dry filtration + 4114
exhaust NationSt 80000 24
14 May 2023 June 2023 secondary activated 8
gases of ar m3/h h/d
carbon adsorption m3/h
the plant in
the west
259
Method for
treating the
Dry filtration + 3949
exhaust NationSt 11000 24
15 May 2023 June 2023 secondary activated 9
gases of ar 0 m3/h h/d
carbon adsorption m3/h
the plant in
the east
North area Dry filtration +
exhaust activated carbon 32
NationSt 68000 24
16 gas 93 March 2024 April 2024 adsorption and 211
ar m3/h h/d
treatment concentration + m3/h
facility catalytic combustion
NationSt
Wastewate Physiochemical and
ar 1080 331.8 24
17 r treatment 356.7 Sep-12 Dec-12 biochemical
Semicon t/d 5 t/d h/d
station processing
ductor
Method for
NationSt
treating ≥1750 1050
November ar Ammonia recovery 24
18 MOCVD 467.9 July 2023 0 9
2023 Semicon device 3 h/d exhaust Nm /h m3/h
ductor
gas
Method for
Scrubber combustion
treating NationSt
water washing and 1836
acid and ar 45000 24
19 348.405 Sep-12 Nov-12 spraying device + acid 8
alkali Semicon m3/h h/d
and alkali exhaust gas m3/h
exhaust ductor
scrubber tower device
gases
Method for
Scrubber combustion
treating NationSt
water washing and 1530
acid and ar 40000 24
20 348.405 Sep-12 Nov-12 spraying device + acid 4m3/
alkali Semicon m3/h h/d
and alkali exhaust gas h
exhaust ductor
scrubber tower device
gases
87Foshan Electrical
Op
Total Design
Date of Date of Actu era
investm process
construction operation al tin
No. Facility ent Operator Processes ing
(MM/YYYY (MM/YY capac g
(RMB1 capacit
) YY) ity ho
0000) y
urs
Method for
Scrubber combustion
treating NationSt
water washing and 1137
acid and November ar 40000 24
21 106.2 July 2023 spraying device + acid 6m3/
alkali 2023 Semicon m3/h h/d
and alkali exhaust gas h
exhaust ductor
scrubber tower device
gases
Method for Water spraying +
NationSt
treating dehumidification and
November ar 20000 4436 24
22 organic 119.87 July 2023 defogging + secondary
2023 Semicon m3/h m3/h h/d
exhaust activated carbon
ductor
gas adsorption
Method for Water spraying +
NationSt
treating dehumidification and 1645
November ar 40000 24
23 organic 362.07 July 2023 defogging + secondary 0m3/
2023 Semicon m3/h h/d
exhaust activated carbon h
ductor
gas adsorption
Method for Water spraying +
NationSt
treating dehumidification and
November ar 20000 7366 24
24 organic 362.07 July 2023 defogging + secondary
2023 Semicon m3/h m3/h h/d
exhaust activated carbon
ductor
gas adsorption
Environmental self-monitoring plan:
Foshan Electrical and Lighting Co. Ltd. Gaoming Branch developed an environmental self-
monitoring plan. It entrusted a third-party environmental testing agency to perform the annual
inspection of the exhaust outlet. All the inspection results were lower than the standard limits.Meanwhile it accepted the annual supervision and monitoring by local environmental protection
departments. All the monitoring results were lower than the standard limits.Liuzhou Guige Lighting Technology Co. Ltd. has put in place the Self-monitoring Plan of Liuzhou
Guige Lighting Technology Co. Ltd. It entrusted a third-party environmental testing agency to
perform the annual inspection of the exhaust outlet. All the inspection results were lower than the
standard limits. Meanwhile it accepted the annual supervision and monitoring by local environmental
protection departments. All the monitoring results were lower than the standard limits.Zhejiang Hule Electric Equipment Manufacture Co. Ltd. has developed an environmental monitoring
management system and entrusted a third-party environmental testing agency to conduct annual
testing of the company’s exhaust emission outlets. The test results have all been below the emission
standard limits. Meanwhile it accepted the annual supervision and monitoring by local environmental
protection departments. All the monitoring results were lower than the standard limits.Foshan NationStar Optoelectronics Co. Ltd. in accordance with its self-monitoring plan
commissions a qualified third-party environmental testing agency to carry out monthly and semi-
annual testing of the Company’s various water and atmospheric pollutants. All test results are below
the emission standard limits. Meanwhile it accepted the quarterly supervision and monitoring by
local environmental protection departments. All the monitoring results were lower than the standard
limits.
88Foshan Electrical
Foshan NationStar Semiconductor Technology Co. Ltd. abided by its self-monitoring plan. It
entrusted a qualified third-party environmental testing agency to perform the inspection of the
pollutants on a half-year basis. All the inspection results were lower than the standard limits.Meanwhile it accepted the quarterly supervision and monitoring by local environmental protection
departments. All the monitoring results were lower than the standard limits.Contingency plan for environmental emergencies:
The Company formulated the Emergency Plan for Environmental Emergencies of Foshan Electrical
and Lighting Co. Ltd. Gaoming Branch (including the Risk Assessment Report and Material Survey
of Environmental Emergencies) in August 2017 had it reviewed by experts on 13 September 2017
and had it filed with the Foshan Municipal Ecology and Environment Bureau Gaoming Sub-bureau
(Filing No.: 440608-2017-094-L) on 24 October 2017. In August 2020 the Emergency Plan for
Environmental Emergencies of Foshan Electrical and Lighting Co. Ltd. Gaoming Branch (including
the Risk Assessment Report and Material Survey of Environmental Emergencies) was revised. On 7
September 2020 an expert review was reorganized and on 25 September 2020 the Emergency Plan
was filed with Gaoming Branch of Foshan Municipal Ecology and Environment Bureau (filing
number: 440608-2020-056-M). In September 2024 the contingency plan was revised again. On 10
October 2024 an expert review was reorganized and on 24 January 2025 the contingency plan was
filed with Gaoming Branch of Foshan Municipal Ecology and Environment Bureau (filing number:
440608-2025-0008-M).
In June 2018 Liuzhou Guige Lighting Technology Co. Ltd. completed the preparation of the
Emergency Plan for Environmental Emergencies of Liuzhou Guige Lighting Technology Co. Ltd.(including the Risk Assessment Report for Environmental Emergencies and the Investigation Report
for Emergency Resources for Environmental Emergencies) which was reviewed by experts and
released and filed with Liudong Branch of Liuzhou Environmental Protection Bureau on 29 August
2018 (No. 450203-2018-022-1). In August 2021 the Emergency Plan for Environmental
Emergencies of Liuzhou Guige Lighting Technology Co. Ltd. (including the Risk Assessment Report
for Environmental Emergencies and the Investigation Report for Emergency Resources for
Environmental Emergencies) was updated and compiled passed the expert review and released and
on 27 December 2021 the Emergency Plan was filed with Liudong Branch of Liuzhou Environmental
Protection Bureau (No. 450203-2021-0019-L).Hule Electric Equipment completed the preparation of the Emergency Plan for Environmental
Emergencies of Zhejiang Hule Electric Equipment Manufacture Co. Ltd. (including the Risk
Assessment Report for Environmental Emergencies and the Investigation Report for Emergency
Resources for Environmental Emergencies) on 22 September 2021. It passed the expert review on 15
November 2021 and on 23 November 2021 the emergency plan was filed with Nanhu Branch of
Jiaxing Environmental Protection Bureau. The filing number is: 330402-2021-072-L. On 30
September 2024 the Emergency Plan for Environmental Emergencies of Zhejiang Hule Electric
Equipment Manufacture Co. Ltd. (including the Risk Assessment Report for Environmental
Emergencies and the Investigation Report for Emergency Resources for Environmental Emergencies)
was revised. An expert review was reorganized on 21 October 2024 and on 12 November 2024 the
emergency plan was filed with Nanhu Branch of Jiaxing Environmental Protection Bureau. The filing
number is: 330402-2024-095-L. On 31 December 2024 the performance of the pollution reduction
measures in the heavy pollution weather emergency plan was upgraded from Level D suspension of
production to Level C partial production restriction.Foshan NationStar Optoelectronics Co. Ltd. revised in 2023 the Emergency Plan for Environmental
Emergencies of NationStar Optoelectronics (including the Risk Assessment Report and Material
Survey of Environmental Emergencies) according to the requirements of the Management Methods
89Foshan Electrical
for Environmental Emergencies and had it filed with Foshan Municipal Ecology and Environment
Bureau (Filing No.: 440604-2023-0040-L).Foshan NationStar Semiconductor Technology Co. Ltd. formulated the Emergency Plan for
Environmental Emergencies of NationStar Semiconductor (including the Risk Assessment Report
and Material Survey of Environmental Emergencies) according to the requirements of the
Management Measures for Environmental Emergencies and had it filed with Foshan Municipal
Ecology and Environment Bureau (Filing No.: 440605-2023-0124-M) in 2023.Input in environmental governance and protection and the payment of environmental protection-
related taxes:
During the Reporting Period the input of the Company and its subsidiaries in the construction of
environmental protection facilities the development of environmental protection standards the
treatment of exhaust gas wastewater and waste residue and routine detection totaled RMB14.2304
million and their environmental protection-related taxes paid amounted to RMB69200.Measures taken during the Reporting Period to reduce carbon emissions and the impact:
□Applicable □ Not applicable
During the Reporting Period the Company reduced electricity consumption under the same output
value by selecting high-efficiency and energy-saving equipment. The Company insists on constantly
publicizing environmental protection knowledge to employees improving their awareness of
environmental protection and realizing the sustainable development goal of harmonious coexistence
between enterprises and the environment through the joint efforts of all employees.Administrative punishments received with respect to environmental issues in the Reporting Period:
Name of the Impact on the
Reason for
Company or its Incompliance Punishment Company’s Rectification
punishment
subsidiary operations
N/A N/A N/A N/A N/A N/A
Other environment-related information that should be disclosed:
None.II Social Responsibility
For details about the Company’s fulfillment of social responsibilities in 2024 please refer to the
Environmental Social and Governance (ESG) Report 2024 disclosed by the Company on
http://www.cninfo.com.cn on 25 April 2024.III Efforts in Poverty Alleviation and Rural RevitalizationThe Company focuses on “industrial development for agriculture technological benefits foragriculture and green support for agriculture” as its main task. Through measures such as industrial
assistance paired assistance and consumption assistance the Company has upgraded from simple
donations to systematic support. It is exploring new models for rural revitalization and contributing
to the development of livable business-friendly and beautiful rural areas. First industrial investment
and employment promotion: The Company has invested nearly RMB53 million in the Maoming area
to build a lighting and LED application product manufacturing base providing local tax revenue and
employment opportunities thereby promoting local economic development. Second technological
innovation and agricultural efficiency enhancement: Focusing on the practical needs of agricultural
production the Company researches and produces lighting technologies and products for planting
90Foshan Electrical
and aquaculture thereby improving agricultural economic benefits. Third urban-rural integration and
consumption support building a bridge for urban-rural resource intercommunication promoting
resource sharing and complementary advantages. Approximately RMB1.3 million of consumption
support was implemented in Wuhua Meizhou and other places promoting agricultural product sales
and achieving a win-win situation for economic and social benefits.
91Foshan Electrical
Part VI Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual Controller Shareholders Related Parties and
Acquirers as well as the Company Itself and other Entities Fulfilled in the Reporting Period or
Ongoing at the Period-end
□Applicable □ Not applicable
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
Electronics Group and Hong Kong Rising Investment
have made commitments as follows to avoid horizontal
competition with the Company: 1. They shall conduct
supervision and restraint on the production and operating
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
Commitm the same with or similar to those of the Company or its
ents made subsidiaries in the future they shall take the following
Electroni About
in measures: (1) If the Company thinks necessary they and
cs Group avoidanc
acquisition their relevant enterprises shall reduce and wholly
and Hong e of
documents transfer their relevant assets and business; and (2) If the 4 December Long-
Kong horizonta Ongoing
or Company thinks necessary it is given the priority to 2015 term
Rising l
shareholdi acquire first by proper means the relevant assets and
Investme competiti
ng business of them and their relevant enterprises. 2. All the
nt on
alteration commitments made by them to eliminate or avoid
documents 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.
1. Rising Group will take active measures to avoid any
business or activity that competes or may compete with
the principal business of the Company and its auxiliary
Commitm enterprises and urge the Promisor to control enterprises
ents made to avoid any business or activity that competes or may
About
in compete with the principal business of the Company and
avoidanc
acquisition its auxiliary enterprises. 2. If the Promisor and its
Rising e of
documents controlled enterprises are given the opportunity to 4 November Long-
Holdings horizonta Ongoing
or engage in new business that constitutes or may constitute 2021 term
Group l
shareholdi horizontal competition with the principal businesses of
competiti
ng the Company and its auxiliary enterprises the Promisor
on
alteration will make every effort to make the business opportunity
documents first available to the Company or its auxiliary enterprises
on reasonable and fair terms and conditions on the
premise that conditions permit and in the interest of the
listed company.
92Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
Electronics Group and Hong Kong Rising Investment
have made a commitment that during their direct or
indirect holding of the Company’s shares they shall 1.Strictly abide by the regulatory documents of the CSRC
and the SZSE the Company’s Articles of Association
etc. and not harm the interests of the Company or other
shareholders of the Company in their production and
operating activities by taking advantage of their position
as the controlling shareholder and actual controller; 2.Commitm
About Make sure that they or their other controlled subsidiaries
ents made
Electroni reduction branch offices jointly-run or associated companies (the
in
cs Group and “Relevant Enterprises” for short) will try their best to
acquisition
and Hong regulatio avoid or reduce related-party transactions with the
documents 4 December Long-
Kong n of Company or the Company’s subsidiaries; 3. Strictly Ongoing
or 2015 term
Rising related- follow the market principle of justness fairness and
shareholdi
Investme party equal value exchange for necessary and unavoidable
ng
nt transacti related-party transactions between them and their
alteration
ons Relevant Enterprises and the Company and withdraw
documents
from voting when a related-party transaction with them
or their Relevant Enterprises is being voted on at a
general meeting or a board meeting and execute the
relevant approval procedure and information disclosure
duties pursuant to the applicable laws regulations and
regulatory documents. Where the aforesaid
commitments are broken and a loss is thus caused for the
Company its subsidiaries or the Company’s other
shareholders they shall be obliged to compensate.
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 operating activities by taking advantage
of their position as the controlling shareholder and actual
Commitm
About controller; 2. Make sure that they or their other
ents made
reduction controlled subsidiaries branch offices jointly-run or
in
and associated companies (the “Relevant Enterprises” for
acquisition
Rising regulatio short) will try their best to avoid or reduce related-party
documents 4 November Long-
Holdings n of transactions with the Company or the Company’s Ongoing
or 2021 term
Group related- subsidiaries; 3. Strictly follow the market principle of
shareholdi
party justness fairness and equal value exchange for necessary
ng
transacti and unavoidable related-party transactions between
alteration
ons them and their Relevant Enterprises and the Company
documents
and withdraw from voting when a related-party
transaction with them or their Relevant Enterprises is
being voted on at a general meeting or a board meeting
and execute the relevant approval procedure and
information disclosure duties pursuant to the applicable
laws regulations and regulatory documents.Commitm Electroni In order to ensure the independence of the Company in
ents made cs Group business personnel asset organization and finance
About
in and Hong Electronics Group and Hong Kong Rising Investment 4 December Long-
independ Ongoing
acquisition Kong have made the following commitments: 1. They will 2015 term
ence
documents Rising ensure the independence of the Company in business: (1)
or Investme They promise that the Company will have the assets
93Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
shareholdi nt personnel qualifications and capabilities for its
ng operating activities to be conducted independently as
alteration well as the ability of independent sustainable operation
documents in the market. (2) They promise not to intervene in FSL’s
business activities other than the execution of their rights
as FSL’s shareholders. (3) They promise that they and
their related parties will not be engaged in business that
is substantially in competition with FSL’s business. And
(4) They promise that they and their related parties will
try their best to reduce related-party transactions
between them and FSL; for necessary and unavoidable
related-party transactions they promise to operate fairly
following the market-oriented principle and at fair
prices and execute the transaction procedure and the
duty of information disclosure pursuant to the applicable
laws regulations and regulatory documents. 2. They will
ensure the independence of FSL in personnel: (1) They
promise that FSL’s GM deputy GMs CFO Company
Secretary of Board of Directors and other senior
management personnel will work only for and receive
remuneration from FSL not holding any positions in
them or their other controlled subsidiaries other than
director and supervisor. (2) They promise FSL’s
absolute independence from their related parties in labor
human resource and salary management. And (3) They
promise to follow the legal procedure in their
recommendation of directors supervisors and senior
management personnel to FSL and not to hire or dismiss
employees beyond FSL’s Board of Directors and
General Meeting. 3. They will ensure the independence
and completeness of FSL in asset: (1) They promise that
FSL will have a production system an auxiliary
production system and supporting facilities for its
operation; legally have the ownership or use rights of the
land plants machines trademarks patents and non-
patented technology in relation to its production and
operation; and have independent systems for the
procurement of raw materials and the sale of its products.
(2) They promise that FSL will have independent and
complete assets all under FSL’s control and
independently owned and operated by FSL. And (3)
They promise that they and their other controlled
subsidiaries will not illegally occupy FSL’s funds and
assets in any way or use FSL’s assets to provide
guarantees for the debts of themselves or their other
controlled subsidiaries with. 4. They will ensure the
independence of FSL in organization: (1) They promise
that FSL has a sound corporate governance structure as
a joint-stock company with an independent and complete
organization structure. (2) They promise that the
operational and management organs within FSL will
independently execute their functions according to laws
regulations and FSL’s Articles of Association. 5. They
will ensure the independence of FSL in finance: (1) They
94Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
promise that FSL will have an independent financial
department and financial accounting system with
normative independent financial accounting rules. (2)
They promise that FSL will have independent bank
accounts and not share bank accounts with its related
parties. (3) They promise that FSL’s financial personnel
do not hold concurrent positions in its related parties. (4)
They promise that FSL will independently pay its tax
according to law. And (5) They promise that FSL can
make financial decisions independently and that they
will not illegally intervene in FSL’s use of its funds.To maintain the independence of the Company Rising
Holdings Group has made the following commitments:
1. It will ensure the personnel independence of the
Company. It promises to ensure personnel independence
with the Company and GM deputy GMs CFO
Company Secretary of Board of Directors and other
senior management personnel of the Company will not
hold positions other than directors and supervisors in the
enterprises wholly owned controlled or actually
controlled by it and its subsidiaries (hereinafter referred
to as “subsidiaries”) and will not receive salaries from it
or its subsidiaries. It promises to ensure personnel
independence with the Company and GM deputy GMs
CFO Secretary of the Board of Directors and other
senior management personnel of the Company will not
hold positions other than directors and supervisors in the
enterprises wholly owned controlled or actually
Commitm
controlled by it and its subsidiaries (hereinafter referred
ents made
to as “subsidiaries”) and will not receive salaries from it
in
or its subsidiaries. 2. It will ensure the asset
acquisition
Rising About independence of the Company. (1) It promises that the
documents 4 November Long-
Holdings independ Company has independent and complete assets. (2) It Ongoing
or 2021 term
Group ence promises that it and its subsidiaries will not illegally
shareholdi
occupy the Company’s funds and assets in any way. 3. It
ng
will ensure the financial independence of the Company:
alteration
(1) It promises that the Company will have an
documents
independent financial department and financial
accounting system. (2) It promises that the Company will
have a standardized and independent financial
accounting system. (3) It promises that the Company will
have independent bank accounts and not share bank
accounts with it. (4) It promises that the Company’s
financial personnel do not hold concurrent positions in it
or its subsidiaries. And (5) It promises that the Company
can make financial decisions independently and that they
will not illegally intervene in the Company’s use of its
funds. 4. It will ensure the independence of the Company
in organization: (1) It promises that the Company can
operate independently with an independent and complete
organization structure. (2) It promises that the office and
production and business premises of the Company are
separated from those of Rising Holdings Group. And (3)
It promises that the Board of Directors the Supervisory
95Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
Committee and various functional departments of the
Company operate independently and there is no
subordinate relationship with the functional departments
of Rising Holdings Group. And 5 It will ensure the
independence of the Company in business: (1) It
promises that the Company will have independence in
business. And (2) It promises that the Company will
have the assets personnel qualifications and capabilities
for its operating activities to be conducted independently
as well as the ability of independent sustainable
operation in the market.
1. They shall conduct supervision and restraint on the
production and operating activities of themselves and
their relevant enterprises so that besides the enterprise
above that is in horizontal competition with NationStar
Optoelectronics for now if the products or business of
them or their relevant enterprises become the same with
or similar to those of NationStar Optoelectronics or its
subsidiaries in the future they shall take the following
Commitm
measures: (1) If NationStar Optoelectronics thinks
ents made
About necessary they and their relevant enterprises shall
in
avoidanc reduce and wholly transfer their relevant assets and
acquisition
e of business; and (2) If NationStar Optoelectronics thinks
documents 7 October Long-
FSL horizonta necessary it is given the priority to acquire first by Ongoing
or 2021 term
l proper means the relevant assets and business of them
shareholdi
competiti and their relevant enterprises. 2. All the commitments
ng
on made by them to eliminate or avoid horizontal
alteration
competition with FSL are also applicable to their directly
documents
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
NationStar Optoelectronics they shall compensate
NationStar Optoelectronics on a rational basis.
1. FSL and enterprises under its control (except
NationStar Optoelectronics and its subsidiaries) will
reduce and standardize related transactions with
Commitm
About NationStar Optoelectronics and its subsidiaries. 2. In
ents made
reduction case of any inevitable or reasonably justified related
in
and party transactions FSL and enterprises under its control
acquisition
regulatio (except NationStar Optoelectronics and its subsidiaries)
documents 7 October Long-
FSL n of will strictly abide by the market principles conduct Ongoing
or 2021 term
related- related party transactions with NationStar
shareholdi
party Optoelectronics fairly and reasonably based on the
ng
transacti general principles of equality mutual benefit equal
alteration
ons value and compensation and perform legal procedures
documents
in accordance with laws regulations normative
documents and relevant regulations of NationStar
Optoelectronics.Commitm About To promote NationStar Optoelectronics’ implementation
7 October Long-
ents made FSL maintaini of standardized management and the lawful and Ongoing
2021 term
in ng compliant exercise of shareholder rights and
96Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
acquisition independ corresponding obligations practical and effective
documents ence of measures will be taken to ensure the independence of
or the listed NationStar Optoelectronics in terms of personnel assets
shareholdi company finance organization and business. The undersigned
ng commits to the following: (I) Ensure the independence
alteration of NationStar Optoelectronics’ personnel: 1. Ensure that
documents senior management personnel of NationStar
Optoelectronics including the General Manager
(President) Deputy General Managers Chief Financial
Officer Secretary of Board of Directors and others do
not hold any position other than Director or Supervisor
in Foshan Lighting or other enterprises controlled by
Foshan Lighting (excluding NationStar Optoelectronics
and its controlled enterprises the same below) and do
not receive salaries from Foshan Lighting or other
enterprises controlled by Foshan Lighting. 2. Ensure the
independence of labor personnel relations and the
salary management system between NationStar
Optoelectronics and Foshan Lighting or other enterprises
controlled by Foshan Lighting. (II) It will ensure the
independence of NationStar Optoelectronics in asset 1.FSL promises that NationStar Optoelectronics will have
independent and complete operating assets related to
operation; 2. FSL promises that the funds assets and
other resources of NationStar Optoelectronics will not be
illegally occupied. (III) It will ensure the independence
of NationStar Optoelectronics in finance 1. It promises
that NationStar Optoelectronics will have an
independent financial department and independent
financial accounting system and financial accounting
rules. 2. It promises that NationStar Optoelectronics will
have independent bank accounts and not share bank
accounts with FSL and other enterprises under its
control; 3. It promises that the financial personnel of
NationStar Optoelectronics do not work part-time and
receive salaries in FSL and other enterprises under its
control; 4. It promises that NationStar Optoelectronics
will independently pay its tax according to law; And (5)
It promises that NationStar Optoelectronics can make
financial decisions independently and that it will not
illegally intervene in NationStar Optoelectronics’s use of
its funds. (IV) It will ensure the independence of
NationStar Optoelectronics in organization It promises
that the listed company has a sound corporate
governance structure as a joint-stock company with an
independent and complete organization structure. (V) It
will ensure the independence of NationStar
Optoelectronics in business It promise that NationStar
Optoelectronics remains independent in procurement
production sales and intellectual property rights and
that NationStar Optoelectronics will have the assets
personnel qualifications and capabilities for it operating
activities to be conducted independently as well as the
ability of independent sustainable operation in the
97Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
market.
1. FSL has provided relevant information and documents
(including but not limited to original written materials
duplicate materials or oral testimony etc.) related to this
trading to the intermediaries providing professional
services of auditing valuation legal and financial
About
consultancy for this trading. FSL promises that the
the
copies or photocopies of the documents and materials
truthfuln
provided are consistent with the originals and that the
ess
signatures and seals of the documents and materials are
accuracy
authentic and the signatories of the documents have
and
been legally authorized and effectively signed the
Commitm complete
documents; that the provided information and
ents made ness of
documents are authentic accurate and complete and that
during the 27 October Long-
FSL there are no false records misleading statements or Ongoing
asset informati 2021 term
material omissions. FSL also promises to bear individual
restructuri on
and joint and several liability. 2. We promise that the
ng provided
copies or photocopies of the documents and materials
during
provided are consistent with the originals and that the
this
signatures and seals of the documents and materials are
major
authentic and the signatories of the documents have
asset
been legally authorized and effectively signed the
restructu
documents; that the provided information and
ring
documents are authentic accurate and complete and that
there are no false records misleading statements or
material omissions. We also promise to bear individual
and joint and several liability. We promise that the
information provided is true accurate and complete. 2.
1. They promise not to transfer benefits to other units or
individuals free of charge or under unfair conditions and
not to harm the interests of the Company in any other
ways; 2. They promise to restrain position-related
consumption behavior; 3. They promise not to use the
Company’s assets to engage in investment and
About consumption activities unrelated to the performance of
measures duties; 4. They promise that the future remuneration
to fill up system formulated by the Board of Directors or the
returns Remuneration and Assessment Committee will be linked
Commitm Director for risks to the implementation of the Company’s measures to fill
ents made and arising up returns; 5. If the Company formulates an equity
during senior from incentive plan in the future they will actively promote 27 October Long-
Ongoing
asset managem diluting the exercise conditions of the future equity incentive 2021 term
restructuri ent office immediat plan to be linked with the implementation of the
ng of FSL e return Company’s measures to fill up returns; 6. From the date
in major of issuance of these commitments to the completion of
asset this major asset restructuring of the Company if the
restructu CSRC makes other new regulatory provisions on
ring measures to fill up returns and the relevant
commitments and these commitments cannot meet these
provisions of the CSRC they promise to issue
supplementary commitments in accordance with the
latest regulations of the CSRC at that time. 7. We
promise to earnestly fulfill the compensation measures
formulated by the Company and any commitments we
98Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
make. If we violate any of these commitments and cause
losses to the Company or investors we are willing to
bear corresponding legal responsibilities to the Company
or investors according to law.
1. We have provided relevant information and
documents (including but not limited to original written
materials duplicate materials or oral testimony etc.)
related to this trading to the intermediaries providing
professional services of auditing assessment legal and
financial consultancy for this trading. We promise that
the copies or photocopies of the documents and materials
provided are consistent with the originals and that the
About signatures and seals of the documents and materials are
the authentic and the signatories of the documents have
truthfuln been legally authorized and effectively signed the
ess documents; the provided information and documents are
accuracy authentic accurate and complete and there are no false
and records misleading statements or material omissions.Commitm Director complete We also promise to bear individual and joint and several
ents made and ness of liability. We promise that the information provided is
during senior the true accurate and complete. 2. We promise that the 27 October Long-
Ongoing
asset managem informati copies or photocopies of the documents and materials 2021 term
restructuri ent office on provided are consistent with the originals and that the
ng of FSL provided signatures and seals of the documents and materials are
during authentic and the signatories of the documents have
this been legally authorized and effectively signed the
major documents; that the provided information and
asset documents are authentic accurate and complete and that
restructu there are no false records misleading statements or
ring material omissions. We also promise to bear individual
and joint and several liability. We promise that the
information provided is true accurate and complete. 3.Where the information provided or disclosed by us in
this trading is suspected of false records misleading
statements or material omissions and we are filed for
investigation by the judicial organ or by the CSRC the
shares with interests in the listed company will not be
transferred until the investigation conclusion is formed.Rising 1. They promise not to interfere in the operation and
Holdings management activities of the listed company beyond
Group their authority and not to encroach on the interests of the
Rising listed company. 2. From the date of issuance of these
Capital commitments to the completion of this trading of the
About
Commitm Electroni listed company if the CSRC makes new regulatory
effective
ents made cs Group requirements on measures to fill up returns and
performa
during Hongkon commitments of relevant personnel and the above 27 October Long-
nce of Ongoing
asset g Wah commitments cannot meet these new regulatory 2021 term
measures
restructuri Shing requirements of the CSRC they promise to issue
to fill up
ng Hong supplementary commitments according to the latest
returns
Kong regulations of the CSRC at that time. 3. They promise to
Rising earnestly fulfill the measures to fill up returns formulated
Investme by the listed company and any commitments made by
nt and them. If they violate these commitments and causes
Shenzhen losses to the listed company or investors they are willing
99Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
Rising to bear the compensation responsibility for the listed
Investme company or investors according to law. As one of the
nt subjects responsible for the measures to fill up returns if
they violate the above commitments or refuse to fulfill
the above commitments they agree that the securities
regulatory agencies such as the CSRC and the SZSE will
punish them or take relevant regulatory measures in
accordance with the relevant regulations and rules they
formulated or issued.
1. They shall conduct supervision and restraint on the
production and operating activities of themselves and
their relevant enterprises so that besides the enterprise
above that is in horizontal competition with FSL for
now if the products or business of them or their relevant
enterprises become the same with or similar to those of
FSL or its subsidiaries in the future they shall take the
Rising following measures: (1) If FSL thinks necessary they
Holdings About and their relevant enterprises shall reduce and wholly
Commitm
Group avoidanc transfer their relevant assets and business; and (2) If FSL
ents made
Rising e of thinks necessary it is given the priority to acquire first
during 27 October Long-
Capital horizonta by proper means the relevant assets and business of Ongoing
asset 2021 term
and l them and their relevant enterprises. 2. All the
restructuri
Hongkon competiti commitments made by them to eliminate or avoid
ng
g Wah on horizontal competition with the Company are also
Shing applicable to their directly or indirectly controlled
subsidiaries. They are obliged to urge and make sure that
other subsidiaries execute what’s prescribed in the
relevant document and faithfully honor all the relevant
commitments. 3. If they or their directly or indirectly
controlled subsidiaries break the aforesaid commitments
and thus cause a loss for FSL they shall compensate FSL
on a rational basis.They have made a commitment that during their direct
or indirect holding of FSL’s shares they shall 1. Strictly
abide by the regulatory documents of the CSRC and the
SZSE FSL’s Articles of Association etc. and not harm
the interests of the Company or other shareholders of
FSL in their production and operating activities by
taking advantage of their position as the controlling
Rising About
shareholder and actual controller; 2. Make sure that they
Holdings regulatio
Commitm or their other controlled subsidiaries branch offices
Group n andents made jointly-run or associated companies (the “RelevantRising reductionduring Enterprises” for short) will try their best to avoid or 27 October Long-
Capital of Ongoing
asset reduce related-party transactions with FSL or FSL’s 2021 term
and related-
restructuri subsidiaries; 3. Strictly follow the market principle of
Hongkon party
ng justness fairness and equal value exchange for necessary
g Wah transacti
and unavoidable related-party transactions between
Shing ons
them and their Relevant Enterprises and the Company
and withdraw from voting when a related-party
transaction with them or their Relevant Enterprises is
being voted on at a general meeting or a board meeting
and execute the relevant approval procedure and
information disclosure duties pursuant to the applicable
laws regulations and regulatory documents. Where the
100Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
aforesaid commitments are broken and a loss is thus
caused for FSL its subsidiaries or FSL’s other
shareholders they shall be obliged to compensate.About
compens
If NationStar Optoelectronics is subject to administrative
ation for
Rising penalties such as accountability and fines by relevant
possible
Commitm Holdings competent departments after the completion of this
violation
ents made Group trading due to the illegal acts of NationStar
s of laws
during Electroni Optoelectronics before the completion of this 27 October Long-
and Ongoing
asset cs Group acquisition they promise to fully bear the losses of 2021 term
regulatio
restructuri and NationStar Optoelectronics or FSL as well as the
ns by
ng Rising expenses and fees under punishment or recourse to
NationSt
Capital ensure that NationStar Optoelectronics or FSL will not
ar
suffer any economic losses.Optoelec
tronics
1. We promise that the information provided is true
accurate and complete and there are no false records
misleading statements or material omissions. 2. We have
provided relevant information and documents (including
but not limited to original written materials duplicate
materials or oral testimony etc.) related to this trading to
the intermediaries. They promise that the copies or
photocopies of the documents and materials provided are
About consistent with the originals and that the signatures and
the seals of the documents and materials are authentic and
truthfuln the signatories of the documents have been legally
ess authorized and effectively signed the documents; that
accuracy there are no false records misleading statements or
Rising and material omissions. 3. We promise that the explanations
Commitm Holdings complete and confirmations issued by them are true accurate and
ents made Group ness of complete and there are no false records misleading
during Electroni the statements or material omissions. 4. During this trading 27 October Long-
Ongoing
asset cs Group informati we will disclose the information about this trading in a 2021 term
restructuri and on timely manner in accordance with relevant laws and
ng Rising provided regulations the CSRC and the SZSE and ensure the
Capital during authenticity accuracy and completeness of such
this information. 5. We shall bear legal responsibility for the
major authenticity accuracy and completeness of the
asset information documents materials explanations and
restructu confirmations provided. In case of any violation or losses
ring caused to the listed company investors parties to the
trading and intermediaries participating in this trading
they will be liable for compensation according to law. 6.Where the information provided or disclosed by us in
this trading is suspected of false records misleading
statements or material omissions and we are filed for
investigation by the judicial organ or by the CSRC the
shares with interests in the listed company will not be
transferred until the investigation conclusion is formed.Commitm About Electronics Group promises that the 100% equity of
ents made Electroni the Sigma it held is clear in ownership and is not subject to 27 October Long-
Ongoing
during cs Group clarity of any dispute or potential dispute and there is no situation 2021 term
asset the affecting its legal existence; the above shares are not
101Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
restructuri underlyi subject to any other pledges guarantees or third-party
ng ng assets interests or restrictions and there is no pending or
of this potential litigation arbitration and any other
major administrative or judicial procedure that may lead to the
asset seizure freezing expropriation or restriction of transfer
restructu of the above-mentioned equity by the relevant judicial or
ring administrative organs. There is no entrusted
shareholding or trust shareholding restriction or
prohibition of transfer of the above-mentioned equity
controlled by Electronics Group.Contents of Commitment: Rising Holdings Group and
Rising Capital promise that the shares of NationStar
About Optoelectronics it held is clear in ownership and is not
the subject to any dispute or potential dispute and there is
clarity of no situation affecting its legal existence; the above
Commitm Rising
the shares are not subject to any other pledges guarantees or
ents made Holdings
underlyi third-party interests or restrictions and there is no
during Group 27 October Long-
ng assets pending or potential litigation arbitration and any other Ongoing
asset and 2021 term
of this administrative or judicial procedure that may lead to the
restructuri Rising
major seizure freezing expropriation or restriction of transfer
ng Capital
asset of the above-mentioned equity by the relevant judicial or
restructu administrative organs. There is no entrusted
ring shareholding or trust shareholding restriction or
prohibition of transfer of the above-mentioned equity
controlled by Rising Group and Rising Capital.NationStar Optoelectronics has provided the necessary
true accurate complete and effective documents
materials or oral statements and explanations for this
trading at this stage and there is no concealment
falsehood or material omission. The copies or
photocopies of the documents provided are consistent
About
with the original materials or originals. The signatures
statemen
and seals on the documents and materials provided are
t and
authentic and NationStar Optoelectronics has fulfilled
commit
the legal procedures required for such signatures and
Commitm ment of
seals and obtained legal authorization. All the facts
ents made NationSt truthfuln
stated and explained are consistent with the facts that
during ar ess 27 October Long-
happened. As this transaction proceeds the Company Ongoing
asset Optoelect accuracy 2021 term
shall provide needed information and documents as
restructuri ronics and
required by applicable laws regulations rules and
ng complete
requirements of CSRC and the stock exchange and
ness of
continue to guarantee the truthfulness accuracy
informati
completeness and validity of the information and
on
documents provided. The Company promises and
provided
guarantees the truthfulness accuracy and completeness
of the information provided or disclosed with respect to
this transaction. It guarantees that there are no
misrepresentations misleading statements or material
omissions. And it shall be individually and jointly liable
for that.Commitm About Among 79753050 shares of tradable shares with
ents made the unlimited selling conditions of NationStar 27 October Long-
Sigma Ongoing
during clarity of Optoelectronics held by Sigma 39876 500 shares were 2021 term
asset the pledged for Guangdong Electronics Information
102Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
restructuri ownershi Industry Group Ltd. As of the date of issuance of this
ng p of the commitment the pledge of the above shares has been
underlyi released. However the Maximum Pledge Contract for
ng assets Stocks of Listed Companies (No.: XXYZZ (BY) No.of this 201906280001-2) signed by Sigma and Guangzhou
major Branch of Industrial Bank Co. Ltd. has not been
asset dissolved. There is no entrusted shareholding or trust
restructu shareholding restriction or prohibition of transfer of the
ring above-mentioned equity controlled by Rising Group.Guangdong Electronics Information Industry Group Ltd.has promised that it will not add any new loans to
Guangzhou Branch of Industrial Bank Co. Ltd. as a
borrower during the validity period of the guarantee and
that it will not substantially assume any guarantee
responsibility due to the Maximum Pledge Contract for
Stocks of Listed Companies. Except as aforesaid the
asset ownership of Sigma is clear there is no dispute or
potential dispute and there is no situation affecting the
legal existence. There is no entrusted shareholding or
trust shareholding restriction or prohibition of transfer
of the above-mentioned equity controlled by Rising
Group and Rising Capital.Commitm 1. Sigma promises that all its registered capital has been
ents made About no paid in. 2. Sigma promises that all existing shareholders
during ownershi contribute their own funds to hold shares there is no 27 October Long-
Sigma Ongoing
asset p dispute situation such as holding shares on behalf of them and 2021 term
restructuri in equity there is no dispute or potential dispute between
ng shareholders over their shares.
1. FSL has provided relevant information and documents
(including but not limited to original written materials
duplicate materials or oral testimony etc.) related to this
trading to the intermediaries providing professional
services of auditing valuation legal and financial
consultancy for this trading. FSL promises that the
About copies or photocopies of the documents and materials
statemen provided are consistent with the originals and that the
t and signatures and seals of the documents and materials are
commit authentic and the signatories of the documents have
Commitm ment of been legally authorized and effectively signed the
ents made truthfuln documents; that the provided information and
during ess documents are authentic accurate and complete and that 27 October Long-
Sigma Ongoing
asset accuracy there are no false records misleading statements or 2021 term
restructuri and material omissions. FSL also promises to bear individual
ng complete and joint and several liability. 2. We promise that the
ness of copies or photocopies of the documents and materials
informati provided are consistent with the originals and that the
on signatures and seals of the documents and materials are
provided authentic and the signatories of the documents have
been legally authorized and effectively signed the
documents; that the provided information and
documents are authentic accurate and complete and that
there are no false records misleading statements or
material omissions. We also promise to bear individual
and joint and several liability. We promise that the
103Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
information provided is true accurate and complete. 2.According to the laws and regulations issued by the State
Council such as the Notice of the State Council on
Resolutely Curbing the Soaring of Housing Prices in
Some Cities (GF [2010] No. 10) the Notice of the
General Office of the State Council on Further
Director Improving Regulation of the Real Estate Market (GBF
senior [2013] No. 17) and the Adjustment of Regulatory
managem Policies on Listed Companies’ Re-financing Merger
ent office and Acquisition and Reorganization Involving Real
of FSL About Estate Business issued by the CSRC on the relevant
Rising matters requirements for refinancing of listed companies
Commitm Holdings on involved in real estate business the controlling
ents made Group special shareholders and all directors and Senior Management of
in time of Electroni self- Foshan Electrical and Lighting Co. Ltd. (hereinafter 14 March Long-
Ongoing
IPO or cs Group inspectio referred to as the “Company”) have made the following 2023 term
refinancin Hongkon n of the commitments: The Self-inspection Report on the
g g Wah real Company’s Involvement in Real Estate Business has
Shing estate truthfully disclosed the self-inspection of the real estate
Hong business development projects of the Company and its
Kong subsidiaries between 1 January 2020 and 31 December
Rising 2022. If the Company is identified with illegalities or
Investme violations not disclosed as required by the self-
nt inspection such as idle land land speculation holding
real estate projects from selling and house price rigging
thus causing losses to itself and the investors we will be
liable for compensation in line with relevant laws
regulations and requirements of securities regulatory
authorities.According to the Opinions of the General Office of the
State Council on Further Strengthening the Protection of
the Lawful Rights and Interests of Small and Medium-
sized Investors in the Capital Market (GBF [2013] No.
110) the Opinions of the State Council on Further
Promoting the Sound Development of Capital Markets
About
(GF [2014] No. 17) the Guiding Opinions on Matters
the
concerning the Dilution of Immediate Return in Initial
measures
Public Offering Refinancing and Material Asset
to fill up
Restructuring (ZJHGG [2015] No. 31) and other
Commitm Director immediat
relevant regulations in order to protect the interests of
ents made and e returns
small and medium-sized investors the Directors and
in time of senior diluted 14 March Long-
Senior Management of the Company have made the Ongoing
IPO or managem by the 2023 term
following commitments that the measures to fill up
refinancin ent office issuance
immediate returns diluted by the issuance of A-shares to
g of FSL of A-
specific objects can be effectively fulfilled: 1. We
shares to
promise not to transfer benefits to other units or
specific
individuals for free or under unfair conditions and not to
objects
compromise the interests of the Company in other ways.in 2023
2. We promise to restrain position-related consumption
behaviour. 3. We promise not to use the Company’s
assets to engage in investment and consumption
activities unrelated to the performance of duties. 4. We
promise that the remuneration system formulated by the
Board of Directors or the Remuneration and Assessment
104Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
Committee is linked to the implementation of the
Company’s measures to fill up returns. 5. If the
Company implements an equity incentive plan in the
future the exercise conditions of the future equity
incentive plan will be linked with the implementation of
the Company’s measures to fill up returns. 6. From the
date of issuance of these commitments to the completion
of the issuance of shares to specific objects if the CSRC
makes other new regulatory provisions on measures to
fill up returns and the relevant commitments and these
commitments cannot meet these provisions of the CSRC
we promise to issue supplementary commitments in
accordance with the latest regulations of the CSRC at
that time. As one of the subjects responsible for the
measures to fill up returns if we violate the above
commitments or refuse to fulfil the above commitments
we agree that the securities regulatory agencies such as
the CSRC and the SZSE will punish us or take relevant
regulatory measures in accordance with the relevant
regulations and rules they formulated or issued.According to the relevant provisions of the CSRC in
order to ensure that the measures to fill up immediate
returns diluted by the issuance of A-shares to specific
objects can be practically fulfilled the Company’s
controlling shareholders Rising Holdings Group
Electronics Group Hong Kong Rising Investment
Hongkong Wah Shing and the de facto controller
Rising Holdings Group respectively made the
following commitments: 1. We promise not to interfere
About
in the operation and management activities of the listed
the
company beyond our authority and not to encroach on
Rising effective
the interests of the listed company. 2. From the date of
Holdings fulfilmen
issuance of these commitments to the completion of the
Group t of
issuance of shares to specific objects if the CSRC makes
Electroni measures
Commitm new regulatory requirements on measures to fill up
cs Group taken by
ents made returns and commitments of relevant personnel and the
Hongkon controlli
in time of above commitments cannot meet these new regulatory 14 March Long-
g Wah ng Ongoing
IPO or requirements of the CSRC we promise to issue 2023 term
Shing sharehol
refinancin supplementary commitments according to the latest
Hong ders and
g regulations of the CSRC at that time. 3. From the date of
Kong de facto
issuance of these commitments to the completion of the
Rising controlle
issuance of shares to specific objects if the CSRC makes
Investme r to fill
new regulatory requirements on measures to fill up
nt up
returns and commitments of relevant personnel and the
immediat
above commitments cannot meet these new regulatory
e returns
requirements of the CSRC we promise to issue
supplementary commitments according to the latest
regulations of the CSRC at that time. As one of the
subjects responsible for the measures to fill up returns if
we violate the above commitments or refuse to fulfil the
above commitments we agree that the securities
regulatory agencies such as the CSRC and the SZSE will
punish us or take relevant regulatory measures in
accordance with the relevant regulations and rules they
105Foshan Electrical
Type of Date of Term of
Commitm Fulfillm
Promisor commit Details of commitment commitment commit
ent ent
ment making ment
formulated or issued.Other
commitme
About
nts made to
cash FSL’s profit distributed in cash shall not be less than 27 May Long-
minority FSL Ongoing
dividend 30% of the distributable profit realized in the year. 2009 term
shareholde
s
rs of the
Company
Commit
ment
Letter
Regardin Electronics Group and its controlling subsidiary
g the Hongkong Wah Shing commit to completing the current Within
Electroni Increase share acquisition plan within the implementation period. six
Other cs Group in During the acquisition period and the statutory period months
26 June
commitme Hongkon Foshan the Company and Hongkong Wah Shing will not reduce starting Expired
2024
nts g Wah Lighting their holdings in Foshan Lighting shares and will strictly from 3
Shing Shares comply with relevant regulations. They will not engage June
and in insider trading trading shares during sensitive 2024.Subsequ periods or short-term trading activities.ent
Increase
Plans
Notificat
ion Electronics Group commits to completing the current
Within
Letter share acquisition plan within the implementation period.six
Regardin During the acquisition period and the statutory period
Other 18 months
Electroni g the the Electronics Group will not reduce its holdings in
commitme November starting Ongoing
cs Group Increase Foshan Lighting shares and will strictly comply with
nts 2024 from 20
in relevant regulations. It will not engage in insider trading
Novemb
Foshan trading shares during sensitive periods or short-term
er 2024.Lighting trading activities.Shares
Whether
the
commitme
Yes
nts were
timely
performed
Specific
reasons for
failing to
fulfill
commitme N/A
nts on time
and plans
for next
step
2. Where There Had Been an Earnings Forecast for an Asset or Project and the Reporting
Period Was Still Within the Forecast Period Explain Why the Forecast Has Been Reached for
the Reporting Period.□Applicable □Not applicable
106Foshan Electrical
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related Parties
for Non-Operating Purposes
□Applicable □Not applicable
No such cases in the Reporting Period.III Irregularities in the Provision of Guarantees
□Applicable □Not applicable
No such cases in the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Independent Auditor’s
“Modified Opinion” on the Financial Statements of the Latest Period
□Applicable □Not applicable
V Explanations Given by the Board of Directors the Supervisory Committee and the
Independent Directors (if any) Regarding the Independent Auditor’s “Modified Opinion” on
the Financial Statements of the Reporting Period
□Applicable □Not applicable
VI YoY Changes to Accounting Policies Estimates and Correction of Material Accounting
Errors
□Applicable □ Not applicableRefer to “Part X Financial Statements-V Important Accounting Policies and Estimations-43. Changesin Main Accounting Policies and Estimates” for details.VII YoY Changes to the Scope of the Consolidated Financial Statements
□Applicable □ Not applicable
The scope of consolidation for this period’s financial statements has increased compared to the
previous period with the addition of one subsidiary Foshan Huaguang (Maoming) Technology Co.Ltd. three subsidiaries Liaowang Auto Lamp (Suzhou) Co. Ltd. Gaozhou NationStar Lighting
Technology Co. Ltd. and Zhejiang Hule Electric Equipment Manufacture Co. Ltd. and one
subsidiary of a subsidiary Shanghai Lelaite Electrical Equipment Co. Ltd. For further details please
refer to IX. Changes in the Scope of Consolidation in Section 10 Financial Report.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor WUYIGE Certified Public Accountants LLP
The Company’s payment to the domestic independent
165
auditor (RMB’0000)
How many consecutive years the domestic independent
Three
auditor has provided audit service for the Company
Names of the certified public accountants from the
domestic independent auditor writing signatures on the He Xiaojuan and Wang Xiaohan
auditor’s report
How many consecutive years the certified public
He Xiaojuan (three years) and Wang Xiaohan (one
accountants from the domestic independent auditor
year)
have provided audit service for the Company
107Foshan Electrical
Indicate by tick mark whether the independent auditor was changed for the Reporting Period.□Yes □No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
□Applicable □ Not applicable
In the Reporting Period the Company engaged WUYIGE Certified Public Accountants LLP as its
internal control auditor with the total audit fees of RMB250000.IX Possibility of Delisting after Disclosure of this Report
□Applicable □Not applicable
X Insolvency and Reorganization
□Applicable □Not applicable
No such cases in the Reporting Period.XI Major Legal Matters
□Applicable □ Not applicable
Basic Whether Lawsuit Execution of
Amount Lawsuit
information there are (arbitration) lawsuit Disclosure Disclosure
involved (arbitration)
on lawsuit accrued results and (arbitration) date index
(RMB’0000) progress
(arbitration) liabilities influences judgment
137 other 49 cases are
litigation currently No
matters that under trial; significant
39885.57 Yes N/A N/A
did not meet 88 cases influence on
litigation have been the Company
standards closed.Note: For details please refer to “Part X Financial Statements-XVI Commitments and ContingentMatters- 2. Contingent Matters”.XII Punishments and Rectifications
□Applicable □Not applicable
No such cases in the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□Applicable □ Not applicable
In the Reporting Period the Company and its controlling shareholder and actual controller were not
involved in any unsatisfied court judgments large-amount overdue liabilities or the like.XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□Applicable □ Not applicable
108Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
Purchasing
Guangdon products
g Fenghua and Bank
Under
Advanced receiving Purchase transfers 27 http://www.same Market 688.4 0.18
Technolog labor of 688.42 1600 Not or bank 688.42 February cninfo.com.actual price 2 %
y service materials acceptanc 2024 cn
controller
(Holding) from e notes
Co. Ltd. related
party
Purchasing
Guangzho
products
u
and Bank
Shengfeng Under
receiving Receivin transfers
Catering same Market 413.5 0.85
labor g labor 413.59 or bank 413.59
Managem actual price 9 %
service service acceptanc
ent controller
from e notes
Service
related
Co. Ltd.party
Guangdon
g Rising
Commerci
Purchasing
al
products
Developm
and Bank
ent Co. Under
receiving Receivin transfers
Ltd. same Market 0.07
labor g labor 43.78 43.78 or bank 43.78
(renamed actual price %
service service acceptanc
Guangzho controller
from e notes 27 http://www.u Tianxin
related 1200 Not February cninfo.com.Property
party 2024 cn
Managem
ent
Company)
Guangdon
g Rising
Cultural Purchasing
Industry products
Developm and Bank
Under
ent Co. receiving Receivin transfers
same Market 0.06
Ltd. labor g labor 29.67 29.67 or bank 29.67
actual price %
(formerly service service acceptanc
controller
known as from e notes
Guangdon related
g Great party
Wall Hotel
Co. Ltd.)
Guangdon Under Purchasing Purchase Market 0.00 Bank
0.490.490.49
g Rising same products of price % transfers
109Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
Cultural actual and materials or bank
Industry controller receiving acceptanc
Developm labor e notes
ent Co. service
Ltd. from
(formerly related
known as party
Guangdon
g Great
Wall Hotel
Co. Ltd.)
Purchasing
products
Guangdon and Bank
Under
g Xintao receiving Purchase transfers
same Market 348.4 0.72
Microelect labor of 348.49 or bank 348.49
actual price 9 %
ronics Co. service materials acceptanc
controller
Ltd. from e notes
related
party
Purchasing
Guangdon
products
g
and Bank
Electronic Under
receiving Purchase transfers
s same Market 0.02
labor of 63.90 63. 90 or bank 63.90
Informatio actual price %
service materials acceptanc
n Industry controller
from e notes
Group
related
Ltd. 27 http://www.party
300 Yes February cninfo.com.
Purchasing
2024 cn
products
Shenzhen and Bank
Under
Yuepeng receiving Receivin transfers
same Market 234.0 0.70
Constructi labor g labor 234.01 or bank 234.01
actual price 1 %
on Co. service service acceptanc
controller
Ltd. from e notes
related
party
Purchasing
products
Guangdon
and Bank
g Rising Under
receiving Receivin transfers
South same Market 0.13
labor g labor 65.28 65.28 or bank 65.28
Constructi actual price %
service service acceptanc
on Co. controller
from e notes
Ltd.related
party
110Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
Purchasing
Zhuhai products
Dongjiang and Bank
Under
Environm receiving Receivin transfers
same Market 0.09
ental labor g labor 43.42 43.42 or bank 43.42
actual price %
Protection service service acceptanc
controller
Technolog from e notes
y Co. Ltd. related
party
Purchasing
products
and Bank
Primatroni Under
receiving Receivin transfers
x Nanho same Market 0.09
labor g labor 43.32 43.32 or bank 43.32
Technolog actual price %
service service acceptanc
y Ltd. controller
from e notes
related
party
Purchasing
products
Guangdon and Bank
g Rising receiving Receivin transfers
Actual Market 0.14
Holdings labor g labor 66.27 66.27 or bank 66.27
controller price %
Group service service acceptanc
Co. Ltd. from e notes
related
party
Purchasing
products
Guangdon and Bank
Under
g Rising receiving Receivin transfers
same Market 0.07
Hydrogen labor g labor 31.66 31.66 or bank 31.66
actual price %
Energy service service acceptanc
controller
Co. Ltd. from e notes
related
party
Guangdon
g Rising Purchasing
Urban products
Services and Bank
Under
Co. Ltd. receiving Receivin transfers
same Market 0.03
(formerly labor g labor 15.49 15.49 or bank 15.49
actual price %
known as service service acceptanc
controller
Guangdon from e notes
g Heshun related
Property party
Managem
111Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
ent Co.Ltd.)
Purchasing
products
Foshan
and Bank
Fulong Under
receiving Receivin transfers
Environm same Market 0.02
labor g labor 8.56 8.56 or bank 8.56
ental actual price %
service service acceptanc
Technolog controller
from e notes
y Co. Ltd.related
party
Purchasing
products
and Bank
Primatroni Under
receiving Purchase transfers
x Nanho same Market 0.00
labor of 6.20 6.20 or bank 6.20
Technolog actual price %
service materials acceptanc
y Ltd. controller
from e notes
related
party
Purchasing
products
Guangdon and Bank
Under
g Fenghua receiving Receivin transfers
same Market 0.01
New labor g labor 5.96 5.96 or bank 5.96
actual price %
Energy service service acceptanc
controller
Co. Ltd. from e notes
related
party
Purchasing
Shenzhen products
Longgang and Bank
Under
Dongjiang receiving Receivin transfers
same Market 0.01
Industrial labor g labor 5.18 5.18 or bank 5.18
actual price %
Waste service service acceptanc
controller
Treatment from e notes
Co. Ltd. related
party
Zhuhai Purchasing
Doumen products
District and Bank
Under
Yongxing receiving Receivin transfers
same Market 0.01
sheng labor g labor 4.52 4.52 or bank 4.52
actual price %
Environm service service acceptanc
controller
ental from e notes
Industry related
Waste party
112Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
Recovery
and
Comprehe
nsive
Treatment
Co. Ltd.Purchasing
products
Jiangmen
and Bank
Dongjiang Under
receiving Receivin transfers
Environm same Market 0.00
labor g labor 0.22 0.22 or bank 0.22
ental actual price %
service service acceptanc
Company controller
from e notes
Limited
related
party
Purchasing
products
Guangzho and Bank
Under
u receiving Receivin transfers
same Market 372.4 2.96
Haixinsha labor g labor 372.43 or bank 372.43
actual price 3 %
Industrial service service acceptanc
controller
Co. Ltd. from e notes
related
party
Purchasing
products
Guangzho
and Bank
u Huajian Under
receiving Receivin transfers 27 http://www.Business same Market 0.05
labor g labor 24.04 24.04 900 Not or bank 24.04 February cninfo.com.Developm actual price %
service service acceptanc 2024 cn
ent Co. controller
from e notes
Ltd.related
party
Purchasing
products
Guangdon and Bank
Under
g Huajian receiving Receivin transfers
same Market 0.01
Enterprise labor g labor 4.92 4.92 or bank 4.92
actual price %
Group service service acceptanc
controller
Co. Ltd. from e notes
related
party
Hangzhou Enterpris Purchasing Bank
Times e products Purchase transfers 27 http://www.Market 0.00
Lighting controlle and of 0.13 0.13 300 Not or bank 0.13 February cninfo.com.price %
Electric d by receiving materials acceptanc 2024 cn
Appliance related labor e notes
113Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
s Co. Ltd. natural service
person from
related
party
Selling
Guangdon
products
g Fenghua Bank
Under and
Advanced transfers 27 http://www.same providing Sale of Market 1081 1081.9 0.12 1081.9
Technolog 2000 Not or bank February cninfo.com.actual labor products price .98 8 % 8
y acceptanc 2024 cn
controller service to
(Holding) e notes
related
Co. Ltd.party
Selling
Enterpris
PROSPER products
e Bank
ITY and
controlle transfers
LAMPS & providing Sale of Market 961.6 0.11
d by 961.69 or bank 961.69
COMPON labor products price 9 %
related acceptanc
ENTS service to
natural e notes
LIMITED related
person 27 http://www.party
3600 Not February cninfo.com.
Selling
Enterpris 2024 cn
products
e Bank
Traxon and
controlle transfers
Technolog providing Sale of Market 0.01
d by 95.23 95.23 or bank 95.23
ies labor products price %
related acceptanc
Limited service to
natural e notes
related
person
party
Selling
products
Guangdon Bank
Under and
g Xintao transfers
same providing Sale of Market 179.1 0.02
Microelect 179.17 or bank 179.17
actual labor products price 7 %
ronics Co. acceptanc
controller service to
Ltd. e notes
related
party
Shantou Selling 27 http://www.Rising products 1500 Not February cninfo.com.Bank
Infrastruct Under and 2024 cn
transfers
ure same providing Sale of Market 142.6 0.02
142.69 or bank 142.69
Constructi actual labor products price 9 %
acceptanc
on controller service to
e notes
Investmen related
t Co. Ltd. party
Guangdon Under Selling Providin Bank
Market 135.3 0.01
g Xintao same products g labor 135.36 transfers 135.36
price 6 %
Microelect actual and services or bank
114Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
ronics Co. controller providing acceptanc
Ltd. labor e notes
service to
related
party
Selling
Guangdon products
Bank
g Yixin Under and
Providin transfers
Changche same providing Market 0.00
g labor 12.10 12.1 or bank 12.10
ng actual labor price %
services acceptanc
Constructi controller service to
e notes
on Group related
party
Guangzho Selling
u products
Bank
Wanshun Under and
transfers
Investmen same providing Sale of Market 0.00
5.96 5.96 or bank 5.96
t actual labor products price %
acceptanc
Managem controller service to
e notes
ent Co. related
Ltd. party
Selling
Guangdon
products
g Bank
Under and
Zhongren Providin transfers
same providing Market 0.00
Group g labor 0.55 0.55 or bank 0.55
actual labor price %
Constructi services acceptanc
controller service to
on Co. e notes
related
Ltd
party
Selling
products
Guangdon Bank
and
g Rising Providin transfers
Actual providing Market 0.00
Holdings g labor 0.01 0.01 or bank 0.01
controller labor price %
Group services acceptanc
service to
Co. Ltd. e notes
related
party
Guangdon
g Rising Selling
Mining products
Bank
Group Under and
transfers
Co. Ltd. same providing Sale of Market 0.00
9.96 9.96 or bank 9.96
(formerly actual labor products price %
acceptanc
known as controller service to
e notes
Guangdon related
g Rising party
Nonferrou
115Foshan Electrical
As %
of Market
Price Appro
total price
of the ved Over
Relations Total value of
Pricing conn transac the
Related hip with Type of value of all Method of similar Disclosu Disclosure
Content princip ected tion approv
party the transaction (RMB’ same settlement transac re date index
le trans line ed line
Company 0000) -type tions
actio (RMB’ or not
trans availab
n 0000)
actio le
ns
s Metals
Group
Co. Ltd.)
Selling
Guangdon products
Bank
g Under and
Providin transfers
Zhongnan same providing Market 0.01
g labor 45.26 45.26 or bank 45.26
Constructi actual labor price %
services acceptanc
on Co. controller service to
e notes
Ltd. related
27 http://www.
party
2200 Not February cninfo.com.
Selling
2024 cn
Guangdon products
Bank
g Under and
transfers
Zhongnan same providing Sale of Market 0.00
9.65 9.65 or bank 9.65
Constructi actual labor products price %
acceptanc
on Co. controller service to
e notes
Ltd. related
party
Selling
products
Shandong Bank
Under and
Zhongjin transfers 27 http://www.same providing Sale of Market 0.00
Lingnan 0.91 0.91 1000 Not or bank 0.91 February cninfo.com.actual labor products price %
Copper acceptanc 2024 cn
controller service to
Co. Ltd. e notes
related
party
5200.4
Total -- -- -- 14600 -- -- -- -- --
7
Large-amount sales return in detail None
The Company has compiled statistics on the total amount of routine related-party
transactions in 2024 with Fenghua Advanced Technology and its subsidiaries
Give the actual situation in the Reporting Guangsheng Real Estate and its subsidiaries Guangsheng Group and its other
Period (if any) where an estimate had been subsidiaries Huajian Group and its subsidiaries Zhongjin Lingnan and its subsidiaries
made for the total value of continuing and Youchang Company and its subsidiaries. For related-party procurement the actual
related-party transactions by type to occur in amount incurred in 2024 was RMB25519500 accounting for 58.60% of the estimated
the Reporting Period amount for the year. For related-party sales the actual amount incurred in 2024 was
RMB26805200 accounting for 26.02% of the estimated amount for the year.Reason for any significant difference
between the transaction price and the market None
reference price (if applicable)
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□Applicable □Not applicable
116Foshan Electrical
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□Applicable □Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
□Applicable □ Not applicable
Non-operating amounts due to and from related parties or not
□Yes □No
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
□Applicable □ Not applicable
Deposit business:
Daily Reporting Period
Relationship Interest Beginning Ending
Related maximum Total Total
with the rate balance balance
party limits deposited in withdrawn
Company range (RMB’0000) (RMB’0000)
(RMB’0000) (RMB’0000) (RMB’0000)
Guangdong Controlled
Rising by the same 0.2%-
150000117915.42731230.59700929.48148216.53
Finance controlling 2.8%
Co. Ltd. shareholder
Loan business:
None.Credit or other financial business:
Relationship with Total amount Actual amount
Related party Business type
the Company (RMB’0000) (RMB’0000)
Controlled by the
Guangdong Rising
same controlling Credit granting 200000
Finance Co. Ltd.shareholder
6. Transactions with Related Parties by Finance Company Controlled by the Company
□Applicable □Not applicable
No finance company controlled by the Company was involved in making deposits borrowing credit
granting or any other financial business with any related party.
7. Other Major Related-Party Transactions
□Applicable □ Not applicable
Total
Relationship Pricing
Type of value Method of Disclosure
Related party with the Content princip Disclosure index
transaction (RMB’00 settlement date
Company le
00)
117Foshan Electrical
Purchasing
Bank
Guangdong products and 9 July 2021
Under same Receivin transfers or
Zhongnan receiving Market 17 August http://www.cninfo.c
actual g labor 1243.93 bank
Construction labor service price 2021 and 12 om.cn
controller service acceptance
Co. Ltd. from related March 2022
notes
party
Purchasing
Guangdong Bank
products and
Yixin Under same Receivin transfers or 6 May 2021
receiving Market http://www.cninfo.c
Changcheng actual g labor 392.37 bank and 28
labor service price om.cn
Construction controller service acceptance January 2022
from related
Group notes
party
Purchasing http://www.cninfo.c
Bank
Guangdong products and om.cn
Under same Receivin transfers or
Zhongren Group receiving Market 1 December (announcement of
actual g labor 1531.73 bank
Construction labor service price 2020 subsidiary
controller service acceptance
Co. Ltd from related NationStar
notes
party Optoelectronics)
Index to the current announcement about the said related-party transaction disclosed:
Title of announcement Disclosure date Disclosure website
Announcement on a Related-Party http://www.cninfo.com.cn (announcement
1 December 2020
Transaction Due to a Call for Public Bids of subsidiary NationStar Optoelectronics)
Announcement on a Related-Party
6 May 2021 http://www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
9 July 2021 http://www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
17 August 2021 http://www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
28 January 2022 http://www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
12 March 2022 http://www.cninfo.com.cn
Transaction Due to a Call for Public Bids
XV Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable □Not applicable
No such cases in the Reporting Period.
(2) Contracting
□Applicable □Not applicable
No such cases in the Reporting Period.
(3) Leases
□Applicable □ Not applicable
Notes to leases
The significant lease matters of the Company during the reporting period are as follows:
118Foshan Electrical
Name Date of
Name of Status of Date of
of Lease amount commencement Purpose
lessor leased assets expiry of leas
lessee of lease
Rent-free period:
Two months; from
10 November 2024
to 9 September
Guangdong 54/F
2026 the monthly
Rising Guangdong
rent is 10 September 9 September
Holdings FSL Rising Office
RMB293144.02; 2024 2027
Group Co. International
from 10 September
Ltd. Tower
2026 to 9
September 2027
the monthly rent is
RMB307801.22.Self-numbered
Guangdong
NationS 01 50/F
Rising
tar Guangdong RMB1296000.00 10 September 9 September
Holdings Office
Optoele Rising /year 2024 2027
Group Co.ctronics International
Ltd.Tower
Lease items with a greater-than-10% impact on the Company’s gross profit during the Reporting
Period:
□Applicable □Not applicable
No such cases in the Reporting Period.
2. Major guarantees
□Applicable □ Not applicable
Unit: RMB’0000
Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)
Disclosure
Guarante
date of the
Line of Actual Actual Type of Collater Counter Having e for a
guarantee Term of
Obligor guarant occurren guarante guarante al (if guarantee expired related
line guarantee
ee ce date e amount e any) (if any) or not party or
announcem
not
ent
Total actual balance
Total approved line for
of such guarantees
such guarantees at the
at the end of the 0.00
end of the Reporting
Reporting Period
Period (A3)
(A4)
Guarantees provided by the Company as the parent for its subsidiaries
Disclosure
Guarante
date of the
Line of Actual Actual Type of Collater Counter Having e for a
guarantee Term of
Obligor guarant occurren guarante guarante al (if guarantee expired related
line guarantee
ee ce date e amount e any) (if any) or not party or
announcem
not
ent
Total approved line for Total actual balance
such guarantees at the of such guarantees
0.00
end of the Reporting at the end of the
Period (B3) Reporting Period
119Foshan Electrical
(B4)
Guarantees provided between subsidiaries
Disclosure
Guarante
date of the
Line of Actual Actual Type of Collater Counter Having e for a
guarantee Term of
Obligor guarant occurren guarante guarante al (if guarantee expired related
line guarantee
ee ce date e amount e any) (if any) or not party or
announcem
not
ent
Nanning
Liaowang
Auto Lamp
Co. Ltd.Liuzhou
Guige 25 April
2 March
Fuxuan 21 June 3545.9 Mortgag 2022 -31
2023 19 6350 Yes None Not Not
Technology 2023 5 ed December
April 2024
Co. Ltd. 2025
Liuzhou
Guige
Lighting
Technology
Co. Ltd.Chongqing 25 May 2023
Guinuo 2 March 10 - 24 May
3964.6 Mortgag
Lighting 2023 19 7000 Februar Yes None 2024; 21 Not Not
2 ed
Technology April 2024 y 2023 May 2024 -
Co. Ltd. 20 May 2025
Nanning
Liaowang
Auto Lamp
Co. Ltd.Liuzhou
Guige 24 April
2 March 24
Fuxuan 1430 4547.0 Mortgag 2022-31
2023 19 March Yes None Not Not
Technology 0 0 ed December
April 2024 2023
Co. Ltd. 2025
Liuzhou
Guige
Lighting
Technology
Co. Ltd.Zhejiang
Hule
21 21 August
Electrical 1721.9 Mortgag
—— 2000 August Yes None 2023 - 20 Not Not
Equipment 6 ed
2023 August 2028
Manufacturi
ng Co. Ltd.Total actual amount
Total approved line for
of such guarantees
such guarantees in the 27650 13779.53（Note 1）
in the Reporting
Reporting Period (C1)
Period (C2)
Total actual balance
Total approved line for
of such guarantees
such guarantees at the
27650 at the end of the 13779.53
end of the Reporting
Reporting Period
Period (C3)
(C4)
Total guarantee amount (total of the three kinds of guarantees above)
120Foshan Electrical
Total actual
Total guarantee line
guarantee amount
approved in the
27650 in the Reporting 13779.53
Reporting Period
Period
(A1+B1+C1)
(A2+B2+C2)
Total actual
Total approved guarantee
guarantee balance
line at the end of the
27650 at the end of the 13779.53
Reporting Period
Reporting Period
(A3+B3+C3)
(A4+B4+C4)
Total actual guarantee amount (A4+B4+C4)
2.10%
as % of the Company’s net assets
Compound guarantees:
None.Note 1: The total actual amount of guarantees provided to subsidiaries during the Reporting Period
(C2) includes the guarantees incurred by Hule Electrical Equipment prior to its acquisition by Hainan
Technology in the current period.Other notes:Chongqing Guinuo Lighting Technology Co. Ltd. (referred to as “Chongqing Guinuo”)
Liuzhou Guige Foreshine Technology Co. Ltd. (referred to as “Liuzhou Foreshine”) and Liuzhou
Guige Fuxuan Technology Co. Ltd. (referred to as "Liuzhou Lighting") are all wholly-owned
subsidiaries of Nanning Liaowang Auto Lamp Co. Ltd. (referred to as “Liaowang Auto Lamp”).As of 31 December 2024 the details of the guarantees and specific collateral can be found in “PartX-XVI Commitments and Contingent Matters-3. Others” of this Report.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□Applicable □ Not applicable
Overview of cash entrusted for wealth management during the Reporting Period
Unit: RMB’0000
Provision for
Unrecovered impairment on
Type Funding source Amount Undue amount
overdue amount unrecovered
overdue amount
Bank financial
Self-funded 45000 4000 0 0
products
Others Raised funds 59900 59900 0 0
Others Self-funded 63700 63700 0 0
Trust wealth
management Self-funded 150 150 0 0
products
Total 168750 127750 0 0
High-risk wealth management transactions with a significant single amount or with low security and
low liquidity:
□Applicable □ Not applicable
121Foshan Electrical
Unit: RMB’0000
Pres
Allo
Annu Actu cribe
wan
alize al d Plan Index to
Type of Fund Expe ce
Use Determ d gain/l Receipt/ proc for transaction
Type wealth ing Begin Endi cted for
Am of ination yield oss in payment edur more summary
Trustee of manage reso ning ng yield imp
ount princi of rate Repo of such e transact and other
trustee ment urce date date (if air
pal yield for rting gain/loss exec ion or informatio
product s any) men
refere Perio uted not n (if any)
t (if
nce d or
any)
not
Pending
In
recovery
Guangz compli
(frozen
hou Subject ance
in 2024
Branch Large 6 6 to with
10 Self- due to
of certifica Janua Janu actual 3.3 330 prescri
Bank 00 fund Other 990 litigation Yes
China te of ry ary invest 0% .9 bed
0 ed
Everbri deposit 2023 2026 ment approv
unfrozen
ght period al
in March
Bank proced
2025)
ure
In
compli
Foshan
Subject ance
Branch
Large 31 31 to with
of Bank Self- To be
certifica 50 Augu Augu actual 2.9 147 prescri
of Bank fund Other 435 recovere Yes
te of 00 st st invest 0% .42 bed
Commu ed d
deposit 2023 2026 ment approv
nication
period al
s
proced
ure
In
Guangz compli
hou Subject ance
Branch Large 3 3 to with
10 Self- To be
of certifica Nove Nove actual 2.9 359 prescri
Bank 00 fund Other 870 recovere Yes
China te of mber mber invest 0% .12 bed
0 ed d
Everbri deposit 2023 2026 ment approv
ght period al
Bank proced
ure
In
Foshan compli
Hujing Subject ance
Sub- Large 1 1 to with
15 Self- 13 To be
branch certifica Dece Dece actual 2.9 443 prescri
Bank 00 fund Other 27. recovere Yes
of Bank te of mber mber invest 5% .71 bed
0 ed 5 d
of deposit 2023 2026 ment approv
Guang period al
Zhou proced
ure
Foshan Large Rais 5 5 Subject In
21 To be
Hujing certifica ed Febru Febr to 2.7 17 528 compli
Bank 20 Other recovere Yes
Sub- te of fund ary uary actual 5% 49 .69 ance
0 d
branch deposit s 2024 2027 invest with
122Foshan Electrical
Pres
Allo
Annu Actu cribe
wan
alize al d Plan Index to
Type of Fund Expe ce
Use Determ d gain/l Receipt/ proc for transaction
Type wealth ing Begin Endi cted for
Am of ination yield oss in payment edur more summary
Trustee of manage reso ning ng yield imp
ount princi of rate Repo of such e transact and other
trustee ment urce date date (if air
pal yield for rting gain/loss exec ion or informatio
product s any) men
refere Perio uted not n (if any)
t (if
nce d or
any)
not
of Bank ment prescri
of period bed
Guang approv
Zhou al
proced
ure
In
Guangz compli
hou Subject ance
Branch Large Rais 5 5 to with
To be
of certifica 55 ed Febru Febr actual 2.6 129 prescri
Bank Other 429 recovere Yes
China te of 00 fund ary uary invest 0% .68 bed
d
Everbri deposit s 2024 2027 ment approv
ght period al
Bank proced
ure
In
compli
Subject ance
Huaxia Large Rais 5 5 to with
14 11 To be
Bank certifica ed Febru Febr actual 2.6 337 prescri
Bank 30 Other 15. recovere Yes
Foshan te of fund ary uary invest 0% .17 bed
0 4 d
Branch deposit s 2024 2027 ment approv
period al
proced
ure
In
compli
China Subject ance
Mercha Large Rais 5 5 to with
To be
nts certifica 82 ed Febru Febr actual 2.6 639 193 prescri
Bank Other recovere Yes
Bank te of 00 fund ary uary invest 0% .6 .34 bed
d
Foshan deposit s 2024 2027 ment approv
Branch period al
proced
ure
In
compli
Subject ance
Huaxia Large 8 8 to with
15 Self- To be
Bank certifica Marc Marc actual 2.6 11 319 prescri
Bank 00 fund Other recovere Yes
Foshan te of h h invest 0% 70 .48 bed
0 ed d
Branch deposit 2024 2027 ment approv
period al
proced
ure
China Bank Large 35 Self- 29 29 Other Subject 2.6 273 69. To be Yes In
123Foshan Electrical
Pres
Allo
Annu Actu cribe
wan
alize al d Plan Index to
Type of Fund Expe ce
Use Determ d gain/l Receipt/ proc for transaction
Type wealth ing Begin Endi cted for
Am of ination yield oss in payment edur more summary
Trustee of manage reso ning ng yield imp
ount princi of rate Repo of such e transact and other
trustee ment urce date date (if air
pal yield for rting gain/loss exec ion or informatio
product s any) men
refere Perio uted not n (if any)
t (if
nce d or
any)
not
Mercha certifica 00 fund Marc Marc to 0% 31 recovere compli
nts te of ed h h actual d ance
Bank deposit 2024 2027 invest with
Foshan ment prescri
Branch period bed
approv
al
proced
ure
In
compli
China Subject ance
Mercha Large to with
Self- 30 30 To be
nts certifica 30 actual 2.6 40. prescri
Bank fund April April Other 234 recovere Yes
Bank te of 00 invest 0% 39 bed
ed 2024 2027 d
Foshan deposit ment approv
Branch period al
proced
ure
In
compli
Subject ance
Hangzh Wealth
27 27 to with
ou manage Self- - To be
15 Febru Febr actual 3.6 prescri
Trust Trust ment fund Other 5.4 1.4 recovere Yes
0 ary uary invest 0% bed
Co. product ed 6 d
2024 2025 ment approv
Ltd. s
period al
proced
ure
In
Foshan
compli
Sub-
Subject ance
branch
18 25 to with
of Structur Self- To be
40 Nove Febr actual 2.4 26. 10. prescri
LUSO Bank ed fund Other recovere Yes
00 mber uary invest 3% 73 95 bed
Internat deposit ed d
2024 2025 ment approv
ional
period al
Bankin
proced
g Ltd.ure
In
Subject compli
Rais 5 5 to ance
10 To be
Bank of Term ed Augu Febr actual 2.6 141 with
Bank 70 Other 0 recovere Yes
Hainan deposits fund st uary invest 5% .78 prescri
0 d
s 2024 2025 ment bed
period approv
al
124Foshan Electrical
Pres
Allo
Annu Actu cribe
wan
alize al d Plan Index to
Type of Fund Expe ce
Use Determ d gain/l Receipt/ proc for transaction
Type wealth ing Begin Endi cted for
Am of ination yield oss in payment edur more summary
Trustee of manage reso ning ng yield imp
ount princi of rate Repo of such e transact and other
trustee ment urce date date (if air
pal yield for rting gain/loss exec ion or informatio
product s any) men
refere Perio uted not n (if any)
t (if
nce d or
any)
not
proced
ure
In
compli
China
Subject ance
Mercha
18 18 to with
nts Self- To be
Term 10 Octob Octo actual 1.5 1.4 prescri
Bank Bank fund Other 0 recovere Yes
deposits 0 er ber invest 5% 5 bed
Haikou ed d
2024 2025 ment approv
Guorui
period al
Branch
proced
ure
In
compli
China Subject ance
Mercha to with
Self- 26 26 To be
nts Term 10 actual 1.4 1.4 prescri
Bank fund June June Other 0 recovere Yes
Bank deposits 0 invest 5% 5 bed
ed 2024 2025 d
Foshan ment approv
Branch period al
proced
ure
125Foshan Electrical
http://w
ww.cnin
fo.com.c
n -
Announc
ement on
the
Continue
d Use of
Own
Funds
for
Entruste
d Wealth
Manage
ment
Announc
ement
No.
2023-
011;
Announc
In ement on
Other compli the Use
Guangd profes Subject ance of Part
ong sional 27 30 to with of the
Self- To be
Rising wealth Term 20 Septe Marc actual 2.0 prescri Idle
fund Other 30 0 recovere Yes
Finance manag deposits 00 mber h invest 0% bed Funds
ed d
Compa ement 2024 2025 ment approv for
ny institu period al Entruste
tions proced d Wealth
ure Manage
ment
Announc
ement
No.
2024-
017;
Announc
ement on
the Use
of Part
of Idle
Raised
Funds
for Cash
Manage
ment
Announc
ement
No.:
2024-
005.
129429
Total -- -- -- -- -- -- -- -- -- --
7739.08.
126Foshan Electrical
Pres
Allo
Annu Actu cribe
wan
alize al d Plan Index to
Type of Fund Expe ce
Use Determ d gain/l Receipt/ proc for transaction
Type wealth ing Begin Endi cted for
Am of ination yield oss in payment edur more summary
Trustee of manage reso ning ng yield imp
ount princi of rate Repo of such e transact and other
trustee ment urce date date (if air
pal yield for rting gain/loss exec ion or informatio
product s any) men
refere Perio uted not n (if any)
t (if
nce d or
any)
not
503170
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□Applicable □Not applicable
(2) Entrusted Loans
□Applicable □Not applicable
No such cases in the Reporting Period.
4. Other Significant Contracts
□Applicable □Not applicable
No such cases in the Reporting Period.XVI Other Significant Events
□Applicable □ Not applicable
1. Land Reserve for the Fenjiang North Road Plot
In February 2024 after review and approval by the Company’s board of directors and shareholders’
meeting the Company officially signed the State-owned Land Use Rights Reserve Agreement with
the Foshan Chancheng District Land Reserve Center and the Chancheng District Zumiao Subdistrict
Office. After completing the preliminary land preparation work such as demolition of buildings in
accordance with relevant laws regulations and policy stipulations the company will proceed with
the phased handover and accounting of the Fenjiang North Road plot over the course of three years.In September 2024 the Company completed the preliminary land preparation work for the Fenjiang
North Road plot in accordance with relevant regulations including the demolition of above-ground
structures. The southern section of the Fenjiang North Road plot was handed over to the Land Reserve
Center of Chancheng District Foshan. On 28 September 2024 Chancheng Branch of the Foshan
Bureau of Natural Resources publicly listed the southern section of the plot for transfer at the
Chancheng Sub-Center of the Foshan Public Resources Trading Center. On 4 November 2024
Shenzhen China Overseas Investment Co. Ltd. and China State Construction International
Investment Group Co. Ltd. successfully won the bid for the southern section of the Company’s
Fenjiang North Road plot. On 25 December 2024 the Company received the first installment of the
compensation payment for the southern section of the Fenjiang North Road plot totaling
RMB381779100 from the Chancheng District Land Reserve Center of Foshan City. For detailed
information please refer to the announcements disclosed by the Company on 7 December 2023 3
February 2024 30 September 2024 5 November 2024 and 26 December 2024 on the
http://www.cninfo.com.cn titled Announcement on the Company’s Asset Disposal and Signing of the
Land Reserve Agreement Progress Announcement on the Company’s Asset Disposal and Signing of
127Foshan Electrical
the Land Reserve Agreement and Progress Announcement on the Company’s Asset Disposal and
Public Listing of Land for Sale.
2. Signed an Acquisition Intention Agreement with Yilai Smart
In October 2024 the Company signed an Equity Acquisition Intention Agreement with the controlling
shareholders of Qingdao Yilai Smart Technology Co. Ltd. (hereinafter referred to as “Yilai Smart”)
Jiang Zhaoning and Liu Daping. The Company intends to acquire more than 50% of the equity in
Yilai Smart (the specific percentage and transferor will be determined through negotiation after due
diligence audit and evaluation). Upon completion of the acquisition the Company will become the
controlling shareholder of Yilai Smart and Yilai Smart will be included in the Company’s
consolidated financial statements. The equity acquisition is subject to the completion of
comprehensive due diligence audit and asset evaluation and further negotiation based on the relevant
results. The final terms of this transaction are subject to the signing of the formal equity acquisition
agreement and there is uncertainty as to whether it can be reached in the end. For detailed information
please refer to the Announcement on Signing the Equity Acquisition Intention Agreement disclosed
by the Company on 29 October 2024 on the http://www.cninfo.com.cn.XVII Significant Events of Subsidiaries
□Applicable □ Not applicable
1. Liaowang Auto Lamp Invests in the Establishment of a Wholly-owned Subsidiary and the
Investment in the Automotive Lighting Production Construction Project
In September 2024 the Company held the 59th meeting of the 9th Board of Directors where the
Proposal on the Investment by the Controlling Subsidiary to Establish a Wholly-owned Subsidiary
and Invest in the Automotive Lighting Production Construction Project was reviewed and approved.The proposal agreed that the Company’s controlling subsidiary Nanning Liaowang Auto Lamp Co.Ltd. (referred to as “Liaowang Auto Lamp”) would invest in the establishment of a wholly-owned
subsidiary in Xiangcheng District Suzhou and invest approximately RMB58 million in the
construction of an automotive lighting production base. This investment aims to optimize the
industrial layout of Liaowang Auto Lamp expand the production scale of automotive lighting
products accelerate the shift towards mid-to-high-end product markets and enhance market
competitiveness. For detailed information please refer to the Announcement on the Investment by the
Controlling Subsidiary to Establish a Wholly-Owned Subsidiary and Invest in the Automotive
Lighting Production Construction Project disclosed by the Company on 28 September 2024 on the
http://www.cninfo.com.cn.
2. Foshan (Hainan) Company Acquisition of Zhejiang Hule Electric Equipment Manufacture
Co. Ltd. Project
After the relevant decision-making procedures were followed by the Company’s wholly-owned
subsidiary Foshan Lighting (Hainan) Technology Co. Ltd. (referred to as “Hainan Technology”)
and approved by the Company’s General Manager’s Office Foshan Lighting (Hainan) Company
signed a Supplementary Agreement to the Equity Transfer Agreement with the transferor in August
2024. Foshan Lighting (Hainan) Company acquired 66% of the equity in Zhejiang Hule Electric
Equipment Manufacture Co. Ltd. (referred to as “Hule Electric Equipment”) in cash making Hulu
Electric Equipment a controlling subsidiary of the Company.
3. Expropriation of Land and Above-ground Housing of Nanjing Fozhao
The Company held the 24th Meeting of the 9th Board of Directors on 15 December 2021 where the
Proposal on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary
128Foshan Electrical
Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd. was deliberated and adopted. The
Board of Directors agreed that Nanjing Lishui District People’s Government expropriates the land
use rights and above-land housing of Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd.(hereinafter referred to as “Nanjing Fozhao”) a wholly-owned subsidiary of the Company at a
compensation amount of RMB183855895.00 and Nanjing Fozhao signed an expropriation and
compensation agreement with Lishui County House Dismantling Moving & Resettling Development
Co. Ltd. the implementing unit of the housing expropriation. As of 31 December 2023 Nanjing
Fozhao has received 30% of the compensation that is RMB55.16 million and the land use right
certificate and house ownership certificate of the assets involved have been cancelled. As of the date
of this Report the site handover is still in progress. As of 7 January 2025 Lishui District Demolition
and Resettlement Co. Ltd. of Nanjing had taken possession of all land and above-ground buildings
of Nanjing Fozhao. As of the disclosure date of this report both parties are still in negotiation
regarding the performance of the contract and the payment of the remaining compensation. After the
demolition work is completed Nanjing Fozhao plans to carry out liquidation and cancellation.
129Foshan Electrical
Part VII Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease in the Reporting Period (+/-) After
Shares
Shares
as
as
dividend
Percentag New dividend Percentag
Shares converte Other Subtotal Shares
e (%) issues converte e (%)
d from
d from
capital
profit
reserves
1.--
Restricted 197537241 12.75% 14024178 14024178 57295457 3.70%
shares 4 4
1.1 Shares
held by 0 0.00% 0 0 0 0.00%
state
1.2 Shares
held by
--
state-owned 69136167 4.46% 46695896 3.02%
2244027122440271
legal
persons
1.3 Shares
held by
other 1826025 0.12% -154096 -154096 1671929 0.11%
domestic
investors
Among
which:
Shares held
13384340.09%0013384340.09%
by domestic
legal
persons
Shares held
by domestic
4875910.03%-154096-1540963334950.02%
natural
persons
1.4 Shares
held by - -
244811961.58%89276320.58%
foreign 15553564 15553564
investors
Among
which:
Shares held - -
116040940.75%00.00%
by foreign 11604094 11604094
legal
persons
Shares held
by foreign 12877102 0.83% -3949470 -3949470 8927632 0.58%
natural
130Foshan Electrical
persons
5. Funds
wealth - -
managemen 102093853 6.59% 10209385 10209385 0 0.00%
t products 3 3
etc.
2.
13512409140241781402417814914827
Unrestricte 87.25% 96.30%
894473
d shares
2.1 RMB-
denominate 10565010 14023611 14023611 11967371
68.22%77.27%
d ordinary 50 7 7 67
shares
2.2
Domesticall
y listed 294739939 19.03% 5667 5667 294745606 19.03%
foreign
shares
2.3
Overseas
listed 0 0.00% 0 0 0 0.00%
foreign
shares
4. Other 0 0.00% 0 0 0 0.00%
3. Total 15487782 15487782
100.00%00100.00%
shares 30 30
Reasons for share changes:
□Applicable □ Not applicable
1. In 2023 in accordance with the Reply on the Approval of the Registration of Foshan Electrical and
Lighting Co. Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the
CSRC the Company issued 186783583 RMB-denominated ordinary shares (A shares) to 13 specific
objects including Rising Holdings Group the Company’s de facto controller and such shares were
listed on the SZSE on 4 December 2023. On 4 June 2024 the 140087688 restricted shares subscribed
by 12 subscribers in this issue were relieved. For details please refer to the Indicative Announcement
on the Trading on the Market of Restricted Shares Issued to Specific Objects That Have Been Relieved
disclosed on 29 May 2024 on http://www.cninfo.com.cn.
2. Due to the resignation of directors and senior management in accordance with relevant regulations
an additional 154096 unrestricted shares were issued.Approval of share changes:
□Applicable □ Not applicable
During the Reporting Period the application for the relief of the 140087688 restricted shares
subscribed by 12 specific objects which were issued by the Company in 2023 and their change to
unrestricted shares was approved by the SZSE and China Securities Depository and Clearing
Corporation Limited (CSDC).Transfer of share ownership:
□Applicable □Not applicable
Effects of share changes on the basic earnings per share (EPS) and diluted earnings per share equity
131Foshan Electrical
per share attributable to the Company’s ordinary shareholders and other financial indicators of the
prior year and the prior accounting period respectively:
□Applicable □Not applicable
Other information that the Company considers necessary or is required by the securities regulator to
be disclosed:
□Applicable □Not applicable
2. Changes in Restricted Shares
□Applicable □ Not applicable
Unit: share
Restricted
Restricted Restricted
Restricted shares
shares shares Restricted
Name of the shares amount at Restricted
amount at increased shares
shareholders relieved of the reasons
the period- of the relieved date
the period period-
begin period
end
Restricted
shares after the
initial offering;
Nuode Asset subscription for
Management Co. 33373720 0 33373720 0 the Company’s 4 June 2024
Ltd. A-share
issuance to
specific objects
in 2023
Restricted
shares after the
initial offering;
Caitong Fund subscription for
Management Co. 44658703 0 44658703 0 the Company’s 4 June 2024
Ltd. A-share
issuance to
specific objects
in 2023
Restricted
shares after the
initial offering;
subscription for
CSC Financial Co.
8788395 0 8788395 0 the Company’s 4 June 2024
Ltd.A-share
issuance to
specific objects
in 2023
Restricted
shares after the
initial offering;
subscription for
UBS AG 6484641 0 6484641 0 the Company’s 4 June 2024
A-share
issuance to
specific objects
in 2023
132Foshan Electrical
Restricted
Restricted Restricted
Restricted shares
shares shares Restricted
Name of the shares amount at Restricted
amount at increased shares
shareholders relieved of the reasons
the period- of the relieved date
the period period-
begin period
end
Restricted
shares after the
initial offering;
subscription for
Morgan Stanley &
5119453 0 5119453 0 the Company’s 4 June 2024
Co. International plc
A-share
issuance to
specific objects
in 2023
Restricted
shares after the
initial offering;
subscription for
CITIC Securities
5119453 0 5119453 0 the Company’s 4 June 2024
Co. Ltd.A-share
issuance to
specific objects
in 2023
Guangdong
Rongchuang Restricted
Lingyue Intelligent shares after the
Manufacturing and initial offering;
Information subscription for
Technology 5119453 0 5119453 0 the Company’s 4 June 2024
Industry Equity A-share
Investment Fund issuance to
Partnership specific objects
(Limited in 2023
Partnership)
Restricted
shares after the
initial offering;
Changsha Lugu
subscription for
Capital
8532423 0 8532423 0 the Company’s 4 June 2024
Management Co.A-share
Ltd.issuance to
specific objects
in 2023
Restricted
shares after the
Huatai Asset initial offering;
Management Co. subscription for
Ltd. - Huatai Youyi 5119453 0 5119453 0 the Company’s 4 June 2024
Equity-Specific A-share
Pension Product issuance to
specific objects
in 2023
Restricted
Sichuan Pu Xin
shares after the
Chan Rong 5119453 0 5119453 0 4 June 2024
initial offering;
Investment Co. Ltd.subscription for
133Foshan Electrical
Restricted
Restricted Restricted
Restricted shares
shares shares Restricted
Name of the shares amount at Restricted
amount at increased shares
shareholders relieved of the reasons
the period- of the relieved date
the period period-
begin period
end
the Company’s
A-share
issuance to
specific objects
in 2023
Restricted
shares after the
initial offering;
Horizon Asset subscription for
Management Co. 8703071 0 8703071 0 the Company’s 4 June 2024
Ltd. A-share
issuance to
specific objects
in 2023
Restricted
shares after the
initial offering;
subscription for
Wu Xiaochun 3949470 0 3949470 0 the Company’s 4 June 2024
A-share
issuance to
specific objects
in 2023
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Wei Bin 78919 26307 105226 0 directors with rules on
supervisors and restricted
senior shares for
management senior
management
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Jiao Zhigang 67799 22600 90399 0 directors with rules on
supervisors and restricted
senior shares for
management senior
management
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Cheng Ke 8662 2888 11550 0 directors with rules on
supervisors and restricted
senior shares for
management senior
management
Xu Xiaoping 27952 9318 37270 0 Restricted sale Relief of
134Foshan Electrical
Restricted
Restricted Restricted
Restricted shares
shares shares Restricted
Name of the shares amount at Restricted
amount at increased shares
shareholders relieved of the reasons
the period- of the relieved date
the period period-
begin period
end
due to restricted
separation of shares in
directors accordance
supervisors and with rules on
senior restricted
management shares for
senior
management
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Ye Zhenghong 58171 19390 0 77561 directors with rules on
supervisors and restricted
senior shares for
management senior
management
Relief of
Restricted sale restricted
due to shares in
separation of accordance
Lin Qing 16937 5646 0 22583 directors with rules on
supervisors and restricted
senior shares for
management senior
management
Relief of
restricted
shares in
accordance
Management
Wang Ye 0 4200 0 4200 with rules on
restricted shares
restricted
shares for
senior
management
Total 140346128 90349 140332133 104344 -- --
II. Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□Applicable □Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□Applicable □Not applicable
3. Existing Staff-Held Shares
□Applicable □Not applicable
135Foshan Electrical
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
ordinary Number of Number of preferred
shareholder preferred shareholders with
Number of
s at the shareholders resumed voting rights at
ordinary
73807 month-end 107419 with resumed 0 the month-end prior to 0
shareholder
prior to the voting rights (if the disclosure of this
s
disclosure any) (see Note Report (if any) (see
of this 8) Note 8)
Report
5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing)
Name of Shareholdi Total Increase/decrea Shares in pledge
Nature of Restricted Unrestricte
the ng shares held se in the marked or frozen
sharehold shares d shares
shareholder percentage at the Reporting
er held held Status Shares
s (%) period-end Period
Hongkong
Wah Shing Foreign
1973389819733898
Holding legal 12.74% 8842550 0 N/A 0
00
Company person
Limited
Prosperity
Foreign
Lamps & 14693485 14693485
legal 9.49% 0 0 N/A 0
Component 7 7
person
s Limited
Guangdong
State-
Electronics
owned 13219424 13219424
Information 8.54% 9500000 0 N/A 0
legal 6 6
Industry
person
Group Ltd.Guangdong
State-
Rising
owned 12982679 4669589
Holdings 8.38% 0 83130898 N/A 0
legal 3 5
Group Co.person
Ltd.Guozheng
Internationa
l Securities
(Hong
Kong) Co.Ltd.Foreign
(formerly
legal 2.27% 35142601 -3083923 0 35142601 N/A 0
known as
person
Anxin
Internationa
l Securities
(Hong
Kong) Co.Ltd.)
Central State-
Huijin owned
2.14% 33161800 0 0 33161800 N/A 0
Asset legal
Manageme person
136Foshan Electrical
nt Co. Ltd.Rising
Foreign
Investment
legal 1.65% 25482252 0 0 25482252 N/A 0
Developme
person
nt Limited
Domestic
Zhang
natural 1.10% 17000000 5300000 0 17000000 N/A 0
Shaowu
person
Overseas
Zhuang
natural 0.77% 11903509 0 8927632 2975877 N/A 0
Jianyi
person
Hong Kong
Securities Foreign
Clearing legal 0.62% 9660977 -20706829 0 9660977 N/A 0
Company person
Limited
Strategic investors or
general corporations
becoming top-ten
None
shareholders due to
placing of new shares
(if any) (see Note 3)
Among the top 10 shareholders of the Company Hongkong Wah Shing Holding Company
Limited Guangdong Electronics Information Industry Group Ltd. Guangdong Rising
Holdings Group Co. Ltd. and Rising Investment Development Limited are considered
Related or acting-in-
concerted parties. Prosperity Lamps & Components Limited and Zhuang Jianyi have a
concert parties among
related-party relationship and are also considered concerted parties. Apart from the above
the shareholders above
it is unknown whether there are any related-party relationships or whether any other
shareholders constitute concerted parties as defined by the Measures for the
Administration of the Acquisition of Listed Companies.Above shareholders
involved in
entrusting/being
None
entrusted with voting
rights and giving up
voting rights
Special account for
share repurchases (if
As of the end of this reporting period the Company’s repurchase account holds
any) among the top ten
13000000 A-shares of the Company accounting for 0.84% of the total share capital.
shareholders (see Note
10)
Shareholdings of top ten unlimited shareholders (excluding shares lent trough refinancing and management lock-
up shares)
Type of shares
Name of the
Unrestricted shares at the Period-end Type of
shareholders Shares
shares
RMB-
Hongkong Wah Shing
denominate 19733898
Holding Company 197338980
d ordinary 0
Limited
stock
RMB-
Prosperity Lamps & denominate 14693485
146934857
Components Limited d ordinary 7
stock
Guangdong Electronics RMB-
13219424
Information Industry 132194246 denominate
6
Group Ltd. d ordinary
137Foshan Electrical
stock
RMB-
Guangdong Rising
denominate
Holdings Group Co. 83130898 83130898
d ordinary
Ltd.stock
Guozheng International
Securities (Hong Kong) Domestical
Co. Ltd. (formerly ly listed
3514260135142601
known as Anxin foreign
International Securities stock
(Hong Kong) Co. Ltd.)
RMB-
Central Huijin Asset denominate
3316180033161800
Management Co. Ltd. d ordinary
stock
Domestical
Rising Investment ly listed
2548225225482252
Development Limited foreign
stock
RMB-
denominate
Zhang Shaowu 17000000 17000000
d ordinary
stock
RMB-
Hong Kong Securities
denominate
Clearing Company 9660977 9660977
d ordinary
Limited
stock
Domestical
China Merchants
ly listed
Securities (Hong Kong) 8767891 8767891
foreign
Co. Ltd
stock
Related or acting-in-
concert parties among Among the top ten unrestricted tradable shareholders of the Company Hongkong Wah
the top ten unrestricted Shing Holding Company Limited Guangdong Electronics Information Industry Group
ordinary shareholders Ltd. Guangdong Rising Holdings Group Co. Ltd. and Rising Investment Development
as well as between the Limited are considered concerted parties. Apart from the above it is unknown whether
top ten unrestricted there are any related-party relationships or whether any other shareholders constitute
ordinary shareholders concerted parties as defined by the Measures for the Administration of the Acquisition of
and the top ten ordinary Listed Companies.shareholders
Top ten ordinary
shareholders involved
in securities margin None
trading (if any) (see
Note 4)
Participation of shareholders with a shareholding bigger than 5% the top ten shareholders and the
top ten shareholders of non-restricted tradable shares in the lending of shares through refinancing
□Applicable □Not applicable
Changes in the top ten shareholders and the top ten shareholders of non-restricted tradable shares
from the previous Period due to lending/return through refinancing
□Applicable □Not applicable
Indicate by tick mark whether any of the top ten ordinary shareholders or the top ten unrestricted
138Foshan Electrical
ordinary shareholders of the Company conducted any promissory repo during the Reporting Period.□Yes □No
No such cases in the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned legal person
Type of the controlling shareholder: legal person
Name of Legal
Date of Unified social credit
controlling representative/person Principal activity
establishment code
shareholder in charge
Asset management and
operation equity
management and operation
investment operation and
management and re-
investment of investment
earnings; other business
authorized by the state-
owned assets
administration of the
Guangdong Province;
contractor service for
overseas projects and
domestic projects calling
for international bids
contractor service for
Guangdong
survey consulting design
Rising 23 December
Lyu Yongzhong 91440000719283849E and supervision of the
Holdings 1992
aforesaid overseas projects
Group Co. Ltd.export of equipment and
materials for the aforesaid
overseas projects and
dispatch of contract
workers for the aforesaid
overseas projects; property
rental service; and
exploitation sale and deep
processing of rare earth
(operated by the branches
with the relevant licenses).(Operating activities that
require approval in
accordance with laws shall
be subject to approval by
relevant authorities.)
Development production
and sale of electronics IT
Guangdong
products and electrical
Electronics
19 October appliances operation of
Information Wang Jia 91440000725458764N
2000 electronic information
Industry Group
networks and computers
Ltd.electronic computer
technology service and
139Foshan Electrical
Name of Legal
Date of Unified social credit
controlling representative/person Principal activity
establishment code
shareholder in charge
equipment and venue rental
service; sale of electronic
computers and fittings
electronic components
electron devices and
electrical machinery and
equipment; wholesale of
coal; energy performance
contracting service
development and
consulting service of
energy-saving technology
and manufacture and
installation of energy-
saving equipment; parking
lot operation (188 Yueken
Road Tianhe District
Guangzhou Guangdong
Province P.R.China);
import and export of goods;
and training of professional
and technical personnel
(Limited to branch
operation); .technical
services. (Operating
activities that require
approval in accordance
with laws shall be subject to
approval by relevant
authorities.)
At the end of the Reporting Period Guangdong Rising Holdings Group Co. Ltd. and its parties
acting in concert. directly or indirectly held the following stakes in other listed companies at
Shareholdings home or abroad:
of controlling 1. a 35.72% stake of 1335060698 shares in Zhongjin Lingnan Nonfemet (stock code:
shareholder in 000060);
other listed 2. a 26.37% stake of 291458228 A shares and H shares in Dongjiang Environment (stock
companies at code: 002672);
home or abroad 3. a 23.59% stake of 272894617 shares in Fenghua Advanced (stock code: 000636);
in reporting 4. a 2.06% stake of 6946167 shares in Rising Nonferrous (stock code: 600259);
period
5. For holdings in China Telecom (A+H shares) please refer to the data disclosed in China
Telecom’s 2024 annual report.Change of the controlling shareholder in the Reporting Period:
□Applicable □Not applicable
No such cases in the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: Legal person
140Foshan Electrical
Legal
Name of actual Date of Unified social credit
representative/person Principal activity
controller establishment code
in charge
Asset management and
operation equity
management and
operation investment
operation and
management and re-
investment of
investment earnings;
other business
authorized by the state-
owned assets
administration of the
Guangdong Province;
contractor service for
overseas projects and
domestic projects
calling for international
bids contractor service
for survey consulting
Guangdong design and supervision
23 December
Rising Holdings Lyu Yongzhong 91440000719283849E of the aforesaid overseas
1992
Group Co. Ltd. projects export of
equipment and materials
for the aforesaid
overseas projects and
dispatch of contract
workers for the
aforesaid overseas
projects; property rental
service; and
exploitation sale and
deep processing of rare
earth (operated by the
branches with the
relevant licenses).(Operating activities
that require approval in
accordance with laws
shall be subject to
approval by relevant
authorities.)
At the end of the Reporting Period Guangdong Rising Holdings Group Co. Ltd. and its
parties acting in concert. directly or indirectly held the following stakes in other listed
Shareholdings of
companies at home or abroad:
the actual
1. a 35.72% stake of 1335060698 shares in Zhongjin Lingnan Nonfemet (stock code:
controller in
000060);
other listed
2. a 26.37% stake of 291458228 A shares and H shares in Dongjiang Environment (stock
companies at
code: 002672);
home or abroad
3. a 23.59% stake of 272894617 shares in Fenghua Advanced (stock code: 000636);
in this Reporting
4.a 2.06% stake of 6946167 shares in Rising Nonferrous (stock code: 600259);
Period
5. For holdings in China Telecom (A+H shares) please refer to the data disclosed in China
Telecom’s 2024 annual report.Change of the actual controller during the Reporting Period:
141Foshan Electrical
□Applicable □Not applicable
No such cases in the Reporting Period.Ownership and control relations between the actual controller and the Company:
People’s Government of Department of Finance of
Guangdong Province Guangdong Province
Guangdong Rising Holdings Group Co. Ltd.Guangdong Electronics Information Industry
Rising Investment Development Limited
Group Ltd.Hongkong Wah Shing Enterprise
Limited
Hongkong Wah Shing Holding
Company Limited
Foshan Electrical and Lighting Co. Ltd.Indicate by tick mark whether the actual controller controls the Company via trust or other ways of
asset management.□Applicable □Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder
or the Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all
shares of the Company held by Them
□Applicable □Not applicable
5. Other 10% or Greater Corporate Shareholders
□Applicable □Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual
Controller Reorganizer and Other Commitment Makers
□Applicable □ Not applicable
(1) During the Reporting Period in accordance with the Reply on the Approval of the Registration of
Foshan Electrical and Lighting Co. Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023]
No. 1974) issued by the CSRC the Company issued 186783583 A shares to 13 specific objects of
142Foshan Electrical
which Rising Holdings Group the Company’s de facto controller subscribed for 46695895 A shares
by way of cash. The shares subscribed by Rising Holdings Group shall not be transferred within 18
months from the date of closing of the issue and the shares subscribed by other investors shall not be
transferred within six months from the date of listing. In June 2024 the lock-up restrictions on 12
shareholders excluding Rising Holdings Group were lifted.
(2) In June 2024 one of the Company’s controlling shareholders and concerted parties Electronics
Group and Hongkong Wah Shing plan to increase their holdings in the Company’s stock within six
months starting from June 2024. They have also committed not to reduce their holdings in the
Company’s shares during the acquisition period and the statutory period. As at November 2024 the
above-mentioned share acquisition plan has been completed and Electronics Group and Hongkong
Wah Shing have not reduced their holdings in Foshan Lighting shares.
(3) In November 2024 one of the Company’s controlling shareholders and concerted parties
Electronics Group plans to increase its holdings in the Company’s stock within six months starting
from November 2024. They have also committed not to reduce their holdings in the Company’s
shares during the acquisition period and the statutory period.IV Specific Implementation of Share Repurchases in the Reporting Period
Progress on any share repurchases
□Applicable □Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable □Not applicable
143Foshan Electrical
Part VIII Preference Shares
□Applicable □Not applicable
No preference shares in the Reporting Period.
144Foshan Electrical
Part IX Corporate Bonds
□Applicable □Not applicable
145Foshan Electrical
Part X Financial Statements
I Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this Report 23 April 2025
Name of the independent auditor WUYIGE Certified Public Accountants LLP
No. of independent Auditor’s Report WUYIGE Auditor’s Report [2025] No. 22-00044
Names of certified public accountants He Xiaojuan and Wang Xiaohan
Independent Auditor’s Report
To the Shareholders of Foshan Electrical and Lighting Co. Ltd.I Opinion
We have audited the financial statements of Foshan Electrical and Lighting Co. Ltd. (the
“Company”) which comprise the consolidated balance sheets and balance sheet of the Company as
the parent as of 31 December 2024 the consolidated income statement and income statement of the
Company as the parent consolidated cash flow statement and cash flows statement of the Company
as the parent and consolidated statement of changes in owners’ equity and statement of changes in
owners’ equity of the Company as the parent for the year then ended as well as the notes to the
financial statements.In our opinion the financial statements referred to above present fairly in all material respects the
consolidated and parent company financial position of the Company at 31 December 2024 and the
consolidated and the company as the parent operating results and cash flows for the year then ended
in conformity with the Chinese Accounting Standards (CAS).II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants.Our responsibilities under those standards are further described in the Auditor’s Responsibilities for
Audit of Financial Statements section of our report. We are independent of the Company in
accordance with the China Code of Ethics for Certified Public Accountants and we have fulfilled our
other ethical responsibilities in accordance with the said Code of Ethics.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.III Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the context
of our audit of the financial statements as a whole and in forming our opinion thereon and we do not
provide a separate opinion on these matters.(I). Revenue recognition
1. Description
As stated in the Notes to the Financial Statements “V. (37) Revenue” and “Ⅶ. (61) OperatingRevenue and Operating Costs” the Company’s operating revenue for 2024 was
RMB9048237647.14 of which the main business revenue was RMB8802435475.94 accounting
for 97.28% of the total operating revenue. Due to the significance of the main business revenue and
146Foshan Electrical
its role as a key performance indicator there is an inherent risk that management may manipulate
revenue recognition to achieve specific targets or expectations. Therefore we consider revenue
recognition as a key audit matter.
2. Response to auditing
(1) Understanding and evaluating the design of internal control related to revenue recognition and
testing the effectiveness of relevant internal control.
(2) Checking whether the revenue recognition policy is in line with the requirements of the
Accounting Standards for Business Enterprises and is consistently applied.
(3) Selecting the revenue transactions recorded of this year to check invoices sales contracts
outbound orders customer receipt records and export documents and assess whether the relevant
revenue recognition conforms to the accounting policies of the Company for revenue recognition.
(4) Selecting the revenue transactions recorded of this year to carry out independent confirmation
procedures and confirm the authenticity of revenue.
(5) Inquiring about the industrial and commercial registration information of major customers through
public channels so as to ensure that major customers operate normally and their business scope
conforms to the nature of the Company’s downstream customers.
(6) Implementing analysis procedures for operating revenue including analysing the annual and
monthly revenue of major products changes in major customers changes in sales prices and gross
profit margins of major products and judging the rationality of changes in annual revenue and gross
profit margins of this year.
(7) Selecting the revenue transactions recorded around the balance sheet date checking the outbound
order customer receipt records and other supporting documents to assess whether the revenue is
recorded in the appropriate accounting period.(II). Provision for bad debt of accounts receivable
1. Description
As stated in the Notes to the Financial Statements “V. (13) Accounts Receivable” and “ Ⅶ. (5)Accounts Receivable” as at December 31 2024 the book balance of accounts receivable in your
company’s consolidated financial statement was RMB 2310731844.60 and the balance of bad debt
provision was RMB 185064552.64. Determining the recoverability of accounts receivable requires
management to identify impaired items and objective evidence assess the expected future cash flows
that can be obtained and determine their present value involving significant accounting estimates
and judgments by management. As the impairment of expected credit losses of accounts receivable
is significant to the financial statements we consider the impairment of accounts receivable a key
audit matter.
2. Audit response
(1) Evaluated and tested the design and operating effectiveness of internal controls related to credit
policies and receivables management.
(2) Analysed the reasonableness of the accounting estimates for the provision for bad debts in respect
of accounts receivable including the basis for determining the group of accounts receivable the
judgment of materiality of amounts the separate provision for bad debts and the judgment of
expected credit loss rates.
147Foshan Electrical
(3) Analysed and calculated the ratio between the amount of provision for bad debts and the balance
of accounts receivable at the balance sheet date compared the provision for bad debts with the actual
amount incurred in prior periods and analysed the adequacy of the provision for bad debts for
accounts receivable.
(4) Obtained the table of the provisions for bad debts and checked whether the provision making
method is implemented in accordance with the bad debts policy and whether the recalculation of the
amount of provision for bad debts is accurate.
(5) Evaluated the reasonableness of the provision for bad debts for accounts receivable by analysing
the aging of the accounts receivable and the creditworthiness of the customers and by performing
correspondence procedures for accounts receivable and checking the post-period recovery.iii. Goodwill impairment tests
1. Description
On 28 February 2022 the Company acquired a 21.48% equity interest in Foshan NationStar
Optoelectronics Co. Ltd. (hereinafter "NationStar Optoelectronics") resulting in goodwill of
RMB405620123.64. The goodwill of NationStar Optoelectronics has a significant impact on its
financial statements. As at 31 December 2024 a goodwill impairment provision of
RMB142393052.68 had been made. As the goodwill of NationStar Optoelectronics has a significant
impact on the financial statements and during goodwill impairment testing your management made
reasonable judgements and identifies indications of impairment based on both internal and external
information the calculation of recoverable amounts upon the occurrence of impairment indicators
and at each year-end impairment test relies heavily on management’s estimates and assumptions.These estimates involve uncertainties and may be significantly influenced by the Management’s
judgments about future markets and economic environments. Different estimates and assumptions
adopted significantly influence the recoverable value of the goodwill appraised. As goodwill
impairment testing involves significant judgments and estimates made by the Management it is
considered a key audit matter.
2. Audit response
(1) Understanding evaluating and testing the Company’s key internal controls related to goodwill
impairment testing.
(2) For goodwill arising from a business combination understanding the achievement of performance
forecasts for the acquired company.
(3) Discussing with the management the methodology of goodwill impairment testing including the
asset group or combination of asset groups related to goodwill the reasonableness of assumptions
such as fair value future earnings projections and discounted cash flow rates for each asset group or
combination of asset groups and the judgment and assessment of the fair value or profitability of each
asset group or combination of asset groups.
(4) Evaluating the competency professional quality and objectivity of the external valuation experts
engaged by management.
148Foshan Electrical
(5) Discussing with the external valuation experts engaged by the management to understand the
reasonableness of key assumptions used in the impairment test.
(6) Where necessary with the assistance of internal valuation experts evaluate the reasonableness of
the type of value valuation methodology and valuation parameters such as the discount rate of the
asset valuation reports issued by external valuation experts.IV Other Information
The Company’s management is responsible for the other information. The other information
comprises all of the information included in the Company’s 2024 Annual Report other than the
financial statements and our auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other
information and in doing so consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.If based on the work we have performed we conclude that there is a material misstatement of this
other information we are required to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial
Statements
The Company’s management is responsible for the preparation of the financial statements that give a
fair view in accordance with CAS and for designing implementing and maintaining such internal
control as the management determines is necessary to enable the preparation of financial statements
that are free from material misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s
ability to continue as a going concern disclosing as applicable matters related to going concern and
using the going concern basis of accounting unless the management either intends to liquidate the
Company or to cease operations or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting
process.VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement whether due to fraud or error and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee
that an audit conducted in accordance with CAS will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered material if individually or in
the aggregate they could reasonably be expected to influence the economic decisions of users taken
on the basis of these financial statements.As part of an audit in accordance with CAS we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to
fraud or error design and perform audit procedures responsive to those risks and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting
149Foshan Electrical
a material misstatement resulting from fraud is higher than for one resulting from error as fraud may
involve collusion forgery intentional omissions misrepresentations or the override of internal
control;
(2) Understand the internal controls relevant to the audit in order to design appropriate audit
procedures;
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the management;
(4) Conclude on the appropriateness of the management’s use of the going concern basis of
accounting and Also based on the audit evidence we will draw a conclusion as to whether there is
a material uncertainty about the matters or circumstances that may cast significant doubt about the
Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists
we are required by CAS to draw users’ attention in our auditor’s report to the related disclosures in
the financial statements or if such disclosures are inadequate we should express modified opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.However future events or conditions may cause the Company to cease to continue as a going concern;
(5) Evaluate the overall presentation structure and content of the financial statements including the
disclosures and whether the financial statements represent the underlying transactions and events in
a manner that achieves fair presentation;
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Company to express an opinion on the financial statements. We are
responsible for the direction supervision and performance of the Company audit. We remain solely
responsible for our audit opinion.We communicate with those charged with governance of the Company regarding the planned scope
and timing of the audit and significant audit findings including any noteworthy deficiencies in
internal control that we identify during our audit.We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence and communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence and where applicable related
safeguards (if applicable).From the matters communicated with those charged with governance we determine those matters
that were of most significance in the audit of the financial statements of the current period and are
therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when in extremely rare circumstances we
determine that a matter should not be communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the public interest benefits of such
communication.WUYIGE Certified Public Accountants LLP China Certified Public Accountant: He Xiaojuan
(Project Partner)
China · Beijing China Certified Public Accountant: Wang Xiaohan
23 April 2025
150Foshan Electrical
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.
31 December 2024
Unit: RMB
Item 31 December 2024 1 January 2024
Current assets:
Monetary assets 3209127437.31 3596049654.55
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 43649820.47 152529775.41
Derivative financial assets
Notes receivable 997281070.21 1057352267.60
Accounts receivable 2125667291.96 2093499280.40
Accounts receivable financing 352694866.89 443201960.02
Prepayments 24419779.12 34508638.92
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract reserve
Other receivables 70524265.25 49108300.85
Including: Interest receivable
Dividends receivable
Financial assets purchased under resale
agreements
Inventories 2025499361.38 1971171641.14
Including: Data resources
Contract assets 1690021.95 4252013.94
Assets held for sale 17147339.84 17147339.84
Current portion of non-current assets
Other current assets 261284776.85 109292399.14
Total current assets 9128986031.23 9528113271.81
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations 1140022863.72 454822905.25
Long-term receivables
Long-term equity investments 180300594.89 179188555.15
Investments in other equity instruments 726663613.42 699762746.35
Other non-current financial assets
Investment property 793487046.02 163636347.41
Fixed assets 3646594206.04 3453214586.47
Construction in progress 263601705.89 1174533505.11
Productive living assets
Oil and gas assets
Right-of-use assets 22342999.34 8812320.64
Intangible assets 388587348.99 434549913.99
Including: Data resources
Development costs
Including: Data resources
Goodwill 279438540.78 421831593.46
151Foshan Electrical
Item 31 December 2024 1 January 2024
Long-term prepaid expense 253024495.82 190362699.25
Deferred income tax assets 135948224.91 106283766.95
Other non-current assets 200765785.59 119327703.18
Total non-current assets 8030777425.41 7406326643.21
Total assets 17159763456.64 16934439915.02
Current liabilities:
Short-term borrowings 307141147.49 220019877.73
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities 275250.00
Derivative financial liabilities
Notes payable 1930784817.62 2271174787.69
Accounts payable 2781965096.70 2875980206.64
Advances from customers 13531474.15 466872.69
Contract liabilities 119506301.48 235335693.28
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 214651088.46 193830812.66
Taxes payable 107085160.39 42940157.30
Other payables 495717050.97 362491923.01
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 liabilities 120574788.81 343914214.45
Other current liabilities 377156212.40 95008427.01
Total current liabilities 6468388388.47 6641162972.46
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 222581930.54 253093421.29
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 15023993.11 4310967.92
Long-term payables
Long-term employee benefits payable
Provisions 27430683.82 14277087.30
Deferred income 73739179.94 75185461.27
Deferred income tax liabilities 185921269.29 174806746.25
Other non-current liabilities 177917.63 205769.48
Total non-current liabilities 524874974.33 521879453.51
Total liabilities 6993263362.80 7163042425.97
Owners’ equity:
Share capital 1548778230.00 1548778230.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 914336325.66 914336325.66
Less: Treasury stock 82165144.15 82165144.15
152Foshan Electrical
Item 31 December 2024 1 January 2024
Other comprehensive income 383429155.02 360027027.59
Specific reserve 4782061.20 1213325.92
Surplus reserves 150097522.97 107944679.06
General reserve
Retained earnings 3655046154.57 3435308364.11
Total equity attributable to owners of the
6574304305.276285442808.19
Company as the parent
Non-controlling interests 3592195788.57 3485954680.86
Total owners’ equity 10166500093.84 9771397489.05
Total liabilities and owners’ equity 17159763456.64 16934439915.02
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
2. Balance Sheet of the Company as the Parent
Unit: RMB
Item 31 December 2024 1 January 2024
Current assets:
Monetary assets 1260985441.29 1756256289.35
Held-for-trading financial assets
Derivative financial assets
Notes receivable 71832245.04 90413382.59
Accounts receivable 745257268.31 840003427.41
Accounts receivable financing 67526522.26 105327382.82
Prepayments 71078813.72 7334575.29
Other receivables 944184445.88 558342534.44
Including: Interest receivable
Dividends receivable
Inventories 268069616.21 462793053.42
Including: Data resources
Contract assets 1690021.95 4252013.94
Assets held for sale
Current portion of non-current assets
Other current assets 861413.93 8244786.97
Total current assets 3431485788.59 3832967446.23
Non-current assets:
Investments in debt obligations
Investments in other debt obligations 1047759858.61 454822905.25
Long-term receivables
Long-term equity investments 2434177186.55 2502623981.06
Investments in other equity instruments 687581069.62 659684177.55
Other non-current financial assets
Investment property 202079386.31 47163026.83
Fixed assets 599351996.15 651197430.25
Construction in progress 5884955.59 205106029.03
Productive living assets
Oil and gas assets
Right-of-use assets 8720969.67 5082521.44
Intangible assets 57347999.70 93932977.96
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term prepaid expense 35546452.07 29727301.65
153Foshan Electrical
Item 31 December 2024 1 January 2024
Deferred income tax assets 38910990.65 36285162.26
Other non-current assets 120611200.89 48331060.62
Total non-current assets 5237972065.81 4733956573.90
Total assets 8669457854.40 8566924020.13
Current liabilities:
Short-term borrowings
Held-for-trading financial liabilities 275250.00
Derivative financial liabilities
Notes payable 864782508.32 982735414.37
Accounts payable 860893918.87 977444406.30
Advances from customers 13367850.30
Contract liabilities 58018288.88 145086858.16
Employee benefits payable 57145931.55 64958645.43
Taxes payable 75527406.17 20946142.07
Other payables 445875922.06 324137191.03
Including: Interest payable
Dividends payable
Liabilities directly associated with assets
held for sale
Current portion of non-current liabilities 3581230.44 1377403.64
Other current liabilities 50682086.68 82802283.98
Total current liabilities 2430150393.27 2599488344.98
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 5516409.11 3705117.80
Long-term payables
Long-term employee benefits payable
Provisions 2110312.84
Deferred income
Deferred income tax liabilities 68096992.10 63366691.06
Other non-current liabilities
Total non-current liabilities 75723714.05 67071808.86
Total liabilities 2505874107.32 2666560153.84
Owners’ equity:
Share capital 1548778230.00 1548778230.00
Other equity instruments
Including: Preferred shares
Perpetual bonds
Capital reserves 909058541.44 909058541.44
Less: Treasury stock 82165144.15 82165144.15
Other comprehensive income 383570431.32 359858073.06
Specific reserve 3170252.81 897781.74
Surplus reserves 381401592.21 339248748.30
Retained earnings 3019769843.45 2824687635.90
Total owners’ equity 6163583747.08 5900363866.29
Total liabilities and owners’ equity 8669457854.40 8566924020.13
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
154Foshan Electrical
3. Consolidated Income Statement
Unit: RMB
Item 2024 2023
1. Revenue 9048237647.14 9057292003.90
Including: Operating revenue 9048237647.14 9057292003.90
Interest revenue
Insurance premium income
Handling charge and commission income
2. Costs and expenses 8774598215.99 8639746992.68
Including: Cost of sales 7367550901.49 7370742684.63
Interest costs
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 79762647.52 72268419.87
Selling expense 349356200.73 315111171.93
Administrative expense 484757347.38 430544371.96
R&D expense 548670366.07 483579093.81
Finance costs -55499247.20 -32498749.52
Including: Interest expense 21576958.65 24128844.17
Interest revenue 51401372.58 47710201.22
Add: Other income 111434984.12 90204646.62
Return on investment (“-” for loss) 65850578.68 14598948.35
Including: Share of profit or loss of joint
1112039.741833621.59
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 fair value changes(“-” for loss) -713704.94 1129444.26
Credit impairment loss (“-” for loss) -29684596.41 -52131054.21
Asset impairment loss (“-” for loss) -207929562.68 -81268657.36
Asset disposal income (“-” for loss) 374492447.01 12719324.89
3. Operating profit (“-” for loss) 587089576.93 402797663.77
Add: Non-operating income 18436172.78 9540666.39
Less: Non-operating expense 4576737.83 6538763.70
4. Profit before tax (“-” for loss) 600949011.88 405799566.46
Less: Income tax expense 77463900.13 21126964.48
5. Net profit (“-” for net loss) 523485111.75 384672601.98
5.1 By operating continuity
5.1.1 Net profit from continuing operations
523485111.75384672601.98
(“-” 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 owners of
446184021.97290357652.22
the Company as the parent
5.2.1 Net profit attributable to non-
77301089.7894314949.76
controlling interests
6. Other comprehensive income net of tax 23135043.59 -137433230.11
155Foshan Electrical
Item 2024 2023
Attributable to owners of the Company as
23402127.43-138113991.11
the parent
6.1 Items that will not be reclassified to
23712358.26-138930211.73
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Fair value changes of investments in
23712358.26-138930211.73
other equity instruments
6.1.4 Fair value changes of enterprise’s
own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit
-310230.83816220.62
or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under
the equity method
6.2.2 Fair value changes 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 flows hedges
6.2.6 Differences arising from the
translation of foreign currency- -310230.83 816220.62
denominated financial statements
6.2.7 Other
Attributable to non-controlling interests -267083.84 680761.00
7. Total comprehensive income 546620155.34 247239371.87
Attributable to owners of the Company as
469586149.40152243661.11
the parent
Attributable to non-controlling interests 77034005.94 94995710.76
8. Earnings per share
8.1 Basic earnings per share 0.2905 0.2128
8.2 Diluted earnings per share 0.2881 0.2108
Where business combinations under common control occurred in the current period the net profit
achieved by the acquirees before the combinations was RMB0.00 with the amount for last year being
RMB0.00.Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
4. Income Statement of the Company as the Parent
Unit: RMB
Item 2024 2023
1. Operating revenue 3245704296.00 3370500210.73
Less: Cost of sales 2510354864.55 2670075179.86
Taxes and surcharges 30174651.89 28696224.90
Selling expense 228778506.21 201697475.29
Administrative expense 174979539.01 170906350.75
156Foshan Electrical
Item 2024 2023
R&D expense 147257581.23 126839317.28
Finance costs -30483466.93 -15149738.19
Including: Interest expense 420144.80 3768074.03
Interest revenue 15000167.87 12619606.34
Add: Other income 16862459.80 14162829.17
Return on investment (“-” for loss) 94498689.59 24345065.94
Including: Share of profit or loss of joint
1112039.741833621.59
ventures and associates
Income from the derecognition of financial
assets at amortized cost (“-” for loss)
Net gain on exposure hedges (“-” for loss)
Gain on fair value changes(“-” for loss) -275250.00
Credit impairment loss (“-” for loss) -20122940.28 -32773855.07
Asset impairment loss (“-” for loss) -133838658.95 -28910470.10
Asset disposal income (“-” for loss) 359998517.07 12469694.01
2. Operating profit (“-” for loss) 501765437.27 176728664.79
Add: Non-operating income 2218901.52 365819.08
Less: Non-operating expense 1757649.60 1144051.24
3. Profit before tax (“-” for loss) 502226689.19 175950432.63
Less: Income tax expense 80698250.13 10093913.53
4. Net profit (“-” for net loss) 421528439.06 165856519.10
4.1 Net profit from continuing operations
421528439.06165856519.10
(“-” for net loss)
4.2 Net profit from discontinued operations
(“-” for net loss)
5. Other comprehensive income net of tax 23712358.26 -138930211.73
6.1 Items that will not be reclassified to
23712358.26-138930211.73
profit or loss
6.1.1 Changes caused by remeasurements
on defined benefit schemes
6.1.2 Other comprehensive income that
will not be reclassified to profit or loss
under the equity method
6.1.3 Fair value changes of investments in
23712358.26-138930211.73
other equity instruments
6.1.4 Fair value changes of enterprise’s
own credit risk
6.1.5 Other
6.2 Items that will be reclassified to profit
or loss
6.2.1 Other comprehensive income that
will be reclassified to profit or loss under
the equity method
6.2.2 Fair value changes 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 flows hedges
6.2.6 Differences arising from the
translation of foreign currency-
denominated financial statements
6.2.7 Other
6. Total comprehensive income 445240797.32 26926307.37
157Foshan Electrical
Item 2024 2023
7. Earnings per share
8.1 Basic earnings per share
8.2 Diluted earnings per share
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2024 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and
8471959981.118065012419.58
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 191537811.87 229414220.39
Cash generated from other operating
220938132.01219221813.77
activities
Subtotal of cash generated from operating
8884435924.998513648453.74
activities
Payments for commodities and services 6057433876.86 5219988965.35
Net increase in loans and advances to
customers
Net increase in deposits in the central bank
and in interbank loans granted
Payments for claims on original insurance
contracts
Net increase in interbank loans granted
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 1452338519.97 1391392105.83
Taxes paid 357515353.88 395513858.13
Cash used in other operating activities 419032838.40 332363545.45
Subtotal of cash used in operating activities 8286320589.11 7339258474.76
Net cash flows from operating activities 598115335.88 1174389978.98
2. Cash flows from investing activities:
Proceeds from disinvestment 630996025.00 380981292.12
158Foshan Electrical
Item 2024 2023
Return on investment 35963824.31 27200412.45
Net proceeds from the disposal of fixed
assets intangible assets and other long- 392928847.83 15079869.64
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
80711.83
activities
Subtotal of cash generated from investing
1059888697.14423342286.04
activities
Payments for the acquisition of fixed
assets intangible assets and other long- 368259788.54 376549919.12
lived assets
Payments for investments 1306010850.00 720700000.00
Net increase in pledged loans granted
Net payments for the acquisition of
101002225.68
subsidiaries and other business units
Cash used in other investing activities 33612950.00
Subtotal of cash used in investing activities 1775272864.22 1130862869.12
Net cash flows from investing activities -715384167.08 -707520583.08
3. Cash flows from financing activities:
Capital contributions received 1091377596.17
Including: Capital contributions by non-
controlling interests to subsidiaries
Borrowings raised 438828726.86 297756038.67
Cash generated from other financing
6317233.7815469794.51
activities
Subtotal of cash generated from financing
445145960.641404603429.35
activities
Repayment of borrowings 524289910.93 391955216.77
Interest and dividends paid 237329833.00 191158501.03
Including: Dividends paid by subsidiaries
35144021.0932130255.23
to non-controlling interests
Cash used in other financing activities 7129048.59 138043774.42
Subtotal of cash used in financing activities 768748792.52 721157492.22
Net cash flows from financing activities -323602831.88 683445937.13
4. Effect of foreign exchange rates changes
24000739.614966303.59
on cash and cash equivalents
5. Net increase in cash and cash equivalents -416870923.47 1155281636.62
Add: Cash and cash equivalents beginning
3101252943.881945971307.26
of the period
6. Cash and cash equivalents end of the
2684382020.413101252943.88
period
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
Item 2024 2023
1. Cash flows from operating activities:
Proceeds from sale of commodities and
3127149264.783172331505.84
rendering of services
Tax rebates 97198208.30 113727709.96
159Foshan Electrical
Item 2024 2023
Cash generated from other operating
76841817.5671968034.73
activities
Subtotal of cash generated from operating
3301189290.643358027250.53
activities
Payments for commodities and services 2300853714.93 2003568260.17
Cash paid to and for employees 434395756.21 465614131.12
Taxes paid 143240367.24 88243833.94
Cash used in other operating activities 167831948.98 135741826.48
Subtotal of cash used in operating activities 3046321787.36 2693168051.71
Net cash flows from operating activities 254867503.28 664859198.82
2. Cash flows from investing activities:
Proceeds from disinvestment 160000000.00
Return on investment 43963853.10 36858062.04
Net proceeds from the disposal of fixed
assets intangible assets and other long- 376617558.15 10799817.00
lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
36354374.99
activities
Subtotal of cash generated from investing
616935786.2447657879.04
activities
Payments for the acquisition of fixed
assets intangible assets and other long- 78104450.17 51703074.73
lived assets
Payments for investments 784920000.00 250000000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 363883363.61 33612950.00
Subtotal of cash used in investing activities 1226907813.78 335316024.73
Net cash flows from investing activities -609972027.54 -287658145.69
3. Cash flows from financing activities:
Capital contributions received 1091377596.17
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash generated from financing
1091377596.17
activities
Repayment of borrowings 178893000.00
Interest and dividends paid 185077493.16 140340441.08
Cash used in other financing activities 1261522.66
Subtotal of cash used in financing activities 185077493.16 320494963.74
Net cash flows from financing activities -185077493.16 770882632.43
4. Effect of foreign exchange rates changes
14253014.98936838.90
on cash and cash equivalents
5. Net increase in cash and cash equivalents -525929002.44 1149020524.46
Add: Cash and cash equivalents beginning
1610082668.66461062144.20
of the period
6. Cash and cash equivalents end of the
1084153666.221610082668.66
period
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
160Foshan Electrical
7. Consolidated Statements of Changes in Owners’ Equity
2024
Unit: RMB
2024
Equity attributable to owners of the Company as the parent
Other equity Non- Total
Less: Other Speci Surpl Gene Retain
Item Share instruments Capital controlli owners
Treasu comprehe fic us ral ed Oth Subtot
capita Prefer Perpet reserve ng ’
ry nsive reser reser reser earning er al
l red ual Other s interests equity
stock income ve ves ve s
shares bonds
107
1. Balance 154 12 3435 6285 9771
914382169434859
as at the 877 360027 13 308 442 397
363251444654680.
end of the 823 027.59 325 364.1 808.1 489.0
5.66.1579.86
prior year 0.00 .92 1 9 5
06
Add:
Adjustmen
t for
change in
accounting
policy
Adjustmen
t for
correction
of previous
error
Other
107
II. Balance 154 12 3435 6285 9771
914382169434859
as at the 877 360027 13 308 442 397
363251444654680.
beginning 823 027.59 325 364.1 808.1 489.0
5.66.1579.86
of the year 0.00 .92 1 9 5
06
III.
42
Increase/ 35
15221972888106243951
decrease in 234021 68
84377961491107.70260
the period 27.43 735
3.90.467.0814.79
(“-” for .28
1
decrease)
i. Total
446146955466
comprehen 234021 77034
840286142015
sive 27.43 005.94
1.979.405.34
income
ii. Capital
increased 5961
59612
and 2637
637.51
reduced by .51
owners
1. Ordinary
shares
increased
by owners
2. Capital
increased
by holders
161Foshan Electrical
of other
equity
instrument
s
3. Share-
based
payments
included in
owners’
equity
5961
59612
4. Other 2637
637.51.51
42
---
iii. Profit 152 -
226418422194
distributio 84 35144
462393383740
n 3.9 021.09
1.517.608.69
1
1.42
-
Appropriat 152
4215
ion to 84
2843
surplus 3.9.91
reserves 1
2.
Appropriat
ion to
general
reserve
3.Appropri
---
ation to -
184218422194
owners (or 35144
933893383740
shareholde 021.09
7.607.608.69
rs)
4. Other
iv.Transfers
within
owners’
equity
1. Increase
in capital
(or share
capital)
from
capital
reserves
2. Increase
in capital
(or share
capital)
from
surplus
reserves
3. Loss
offset by
surplus
reserves
162Foshan Electrical
4. Changes
in defined
benefit
schemes
transferred
to retained
earnings
5. Other
comprehen
sive
income
transferred
to retained
earnings
6. Other
35
35688307
v. Specific 68 47384
735.220.
reserve 735 85.35
2863.28
18
1. Increase 945 1894 3026
11323
in the 51 5510 9038
527.74
period 0.3 .32 .06
2
15
37615372196
2. Used in 65850
7767751817
the period 42.39
5.0.04.43
4
vi. Other
IV. 150
15447365565741016
Balance as 9143 8216 09 35921
877383429820463046500
at the end 3632 5144 75 95788.
823155.02061154.5305.2093.
of the 5.66 .15 22. 57
0.00.207784
period 97
2023
Unit: RMB
2023
Equity attributable to owners of the Company as the parent
Other equity Non- Total
Less: Other Speci Surpl Gene Retain
Item Share instruments Capital controlli owners
Treasu comprehe fic us ral ed Oth Subtot
capita Prefer Perpet reserve ng ’
ry nsive reser reser reser earning er al
l red ual Other s interests equity
stock income ve ves ve s
shares bonds
91
I. Balance 136 3296 5173 8600
7245821635934272
as at the 199 498141 435 011 245
971.51440233703.
end of the 464 018.70 828.5 348.7 052.4
54.157.168
prior year 7.00 0 4 2
5
Add:
Adjustmen
t for
change in
accounting
163Foshan Electrical
policy
Adjustmen
t for
correction
of previous
error
Other
91
II. Balance 136 3296 5173 8600
7245821635934272
as at the 199 498141 435 011 245
971.51440233703.
beginning 464 018.70 828.5 348.7 052.4
54.157.168
of the year 7.00 0 4 2
5
III.
16
Increase/ 186 12 1112 1171
9070-5851388
decrease in 783 13 431 58720 152
9035138113657253
the period 583. 325 459.4 977.18 436.6
4.12991.111.95.61
(“-” for 00 .92 5 3
1
decrease)
i. Total
-290315222472
comprehen 94995
138113576543663937
sive 710.76
991.112.221.111.87
income
ii. Capital
18610931088
increased 9070 -
783873415
and 9035 54584
583.937.1488.8
reduced by 4.12 48.30
0022
owners
1. Ordinary 186 1088 1088
9016
shares 783 415 415
3190
increased 583. 488.8 488.8
5.82
by owners 00 2 2
2. Capital
increased
by holders
of other
equity
instrument
s
3. Share-
based
payments
included in
owners’
equity
54585458-
4. Other 448. 448. 54584
303048.30
16
---
iii. Profit 585 -
151413481668
distributio 65 31969
851199466921
n 1.9 754.99
6.614.709.69
1
1.16
-
Appropriat 585
1658
ion to 65
5651
surplus 1.9.91
reserves 1
164Foshan Electrical
2.
Appropriat
ion to
general
reserve
3.
Appropriat - - -
-
ion to 1348 1348 1668
31969
owners (or 9946 9946 6921
754.99
shareholde 4.70 4.70 9.69
rs)
4. Other
iv.Transfers
within
owners’
equity
1. Increase
in capital
(or share
capital)
from
capital
reserves
2. Increase
in capital
(or share
capital)
from
surplus
reserves
3. Loss
offset by
surplus
reserves
4. Changes
in defined
benefit
schemes
transferred
to retained
earnings
5. Other
comprehen
sive
income
transferred
to retained
earnings
6. Other
12
12132366
v. Specific 13 11534
325.795.
reserve 325 69.71
9263.92
1. Increase 17 1746 2875
11283
in the 469 9664 2916
252.79
period 66 .05 .84
165Foshan Electrical
4.0
5
16
25616252638
2. Used in 10129
3363386121
the period 783.08
8.1.13.21
vi. Other
IV. 107
15412343562859771
Balance as 9143 8216 94 34859
87736002713308442397
at the end 3632 5144 46 54680.
823027.59325364.1808.1489.0
of the 5.66 .15 79. 86
0.00.92195
period 06
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
8. Statements of Changes in Owners’ Equity of the Company as the Parent
2024
Unit: RMB
2024
Other equity instruments Other
Capital Less: Total
Item Share Preferr Perpetu comprehen Specific Surplus Retained
reserve Treasur Other owners’
capital ed al Other sive reserve reserves earnings
s y stock equity
shares bonds income
I. Balance as
154890908216339242824659003
at the end of 359858 89778
778258545144.8748.387635.63866.
the prior 073.06 1.74
30.001.441509029
year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
II. Balance
154890908216339242824659003
as at the 359858 89778
778258545144.8748.387635.63866.
beginning of 073.06 1.74
30.001.441509029
the year
III. Increase/
decrease in 19508 26321
2371232272442152
the period 2207.5 9880.7
58.2671.07843.91
(“-” for 5 9
decrease)
i. Total 42152 44524
237123
comprehensi 8439.0 0797.3
58.26
ve income 6 2
ii. Capital
increased
and reduced
166Foshan Electrical
by owners
1. Ordinary
shares
increased by
owners
2. Capital
increased by
holders of
other equity
instruments
3. Share-
based
payments
included in
owners’
equity
4. Other
--
iii. Profit 42152 22644 18429
distribution 843.91 6231.5 3387.6
10
1.Appropriat
-
ion to 42152
42152
surplus 843.91
843.91
reserves
2.
Appropriatio - -
n to owners 18429 18429
(or 3387.6 3387.6
shareholders 0 0
)
3. Other
iv. Transfers
within
owners’
equity
1. Increase
in capital (or
share
capital) from
capital
reserves
2. Increase
in capital (or
share
capital) from
surplus
reserves
3. Loss
offset by
surplus
reserves
4. Changes
in defined
benefit
schemes
transferred
167Foshan Electrical
to retained
earnings
5. Other
comprehensi
ve income
transferred
to retained
earnings
6. Other
v. Specific 22724 22724
reserve 71.07 71.07
1. Increase 11325 11325
in the period 253.53 253.53
2. Used in 90527 90527
the period 82.46 82.46
vi. Other
IV. Balance 1548 9090 8216 38140 30197 61635
38357031702
as at the end 7782 5854 5144. 1592.2 69843. 83747.
431.3252.81
of the period 30.00 1.44 15 1 45 08
2023
Unit: RMB
2023
Other equity instruments Other
Capital Less: Total
Item Share Preferr Perpetu comprehen Specific Surplus Retained
reserve Treasur Other owners’
capital ed al Other sive reserve reserves earnings
s y stock equity
shares bonds income
I. Balance as
136174268216322662810349190
at the end of 498788
9946635.65144.3096.316233.23753.
the prior 284.79
47.0021594106
year
Add:
Adjustment
for change in
accounting
policy
Adjustment
for
correction of
previous
error
Other
II. Balance
136174268216322662810349190
as at the 498788
9946635.65144.3096.316233.23753.
beginning of 284.79
47.0021594106
the year
III. Increase/
decrease in 1867 9016 - 98134
897781658514371
the period 8358 3190 138930 0113.2
1.74651.91402.49
(“-” for 3.00 5.82 211.73 3
decrease)
i. Total - 16585
26926
comprehensi 138930 6519.1
307.37
ve income 211.73 0
ii. Capital 1867 9016 10884
168Foshan Electrical
increased 8358 3190 15488.and reduced 3.00 5.82 82
by owners
1. Ordinary
1867901610884
shares
8358319015488.
increased by
3.005.8282
owners
2. Capital
increased by
holders of
other equity
instruments
3. Share-
based
payments
included in
owners’
equity
4. Other
--
iii. Profit 16585 15148 13489
distribution 651.91 5116.6 9464.7
10
1.
-
Appropriatio 16585
16585
n to surplus 651.91
651.91
reserves
2.
Appropriatio - -
n to owners 13489 13489
(or 9464.7 9464.7
shareholders 0 0
)
3. Other
iv. Transfers
within
owners’
equity
1. Increase
in capital (or
share
capital) from
capital
reserves
2. Increase
in capital (or
share
capital) from
surplus
reserves
3. Loss
offset by
surplus
reserves
4. Changes
in defined
benefit
169Foshan Electrical
schemes
transferred
to retained
earnings
5. Other
comprehensi
ve income
transferred
to retained
earnings
6. Other
v. Specific 89778 89778
reserve 1.74 1.74
1. Increase 80108 80108
in the period 91.57 91.57
2. Used in 71131 71131
the period 09.83 09.83
vi. Other
IV. Balance 1548 9090 8216 33924 28246 59003
35985889778
as at the end 7782 5854 5144. 8748.3 87635. 63866.
073.061.74
of the period 30.00 1.44 15 0 90 29
Legal Representative: Wan Shan Accounting Supervisor: Tang Qionglan Accounting
Department Head: Li Yizhi
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. Ltd. 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 CSRC 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 SZSE for trade on 23 November 1993. The Company was approved
to issue 50 million B shares on 23 July 1995. And as approved to change into a foreign-invested
stock limited company on 26 August 1996 by WJMZEHZ [1996] 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 CSRC with ZJGSZ [2000] No. 175 Document the Company
additionally issued 55 million A shares. At approved by the Shareholders’ General Meeting 2006
2007 2008 2014 and 2017 the Company implemented the plan of capitalization of capital reserve
after the transfer the registered capital of the Company has increased to RMB1399346154.00. The
Company held the 26th Meeting of the 9th Board of Directors on 14 January 2022 where the Proposal
on Cancelling Some Shares of the Company’s Repurchase Special Securities Account was deliberated
and adopted. The repurchased 13 million A shares were used for the equity incentive plan. The
remaining 18952995 A shares and the repurchased 18398512 B shares totaling 37351507 shares
were all deregistered. On 8 February 2022 it was confirmed by Shenzhen Branch of CSDC that the
number of repurchased public shares canceled this time was 37351507 accounting for 2.67% of the
total share capital of the Company before the cancellation including 18952995 A shares and
18398512 B shares. Upon the cancellation of the shares the total share capital of the Company was
changed from 1399346154 shares to 1361994647 shares. The Company’s registered capital was
170Foshan Electrical
changed to RMB1361994647.00. On 14 March 2023 the Company held the 39th Meeting of the
Ninth Session of the Board of Directors and considered and passed the Proposal on the Company’s
Compliance with the Conditions for the Issuance of A Shares to Specific Objects and the Board of
Directors agreed that the Company should apply for the issuance of shares to specific objects to the
SZSE. According to the resolutions passed at the 39th Meeting of the Ninth Board of Directors and
the First Extraordinary General Meeting of 2023 the Company applied for the issuance of ordinary
shares (A shares) not exceeding 30% of the total share capital i.e. not exceeding 408598394 shares
to specific investors and 186783583 shares were actually issued. After the issuance of shares the
total share capital of the Company changed from 1361994647 shares to 1548778230 shares and
the registered capital of the Company changed to RMB One Billion Five Hundred and Forty-eight
Million Seven Hundred and Seventy-eight Thousand and Two Hundred and Thirty
(RMB1548778230.00).Credibility code of the Company: 91440000190352575W.Legal representative: Mr. Wan Shan
The Company’s registered address is No. 64 Fenjiang North Road Chancheng District Foshan City
and the office address is No. 8 Zhihui Road Chancheng District Foshan City Guangdong Province.Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting
products electrical products vehicle lamp products epitaxy and chip products LED packaging and
component products trade and other products.The business term of the Company is long-term which was calculated from the date of issuance of
License of Business Corporation.(II) Authorized issuer and date of approval of the financial report
The Financial Report was approved and authorized for issue by the Board of Directors on 23 April
2025.
(III) Consolidation scope of financial statements
The Company’s consolidated financial statements for the reporting period include 13 subsidiaries:
Foshan Electrical and Lighting Co. Ltd. FSL Chanchang Lighting Co. Ltd. (“Chanchang”) Foshan
Taimei Times Lamp Co. Ltd. (“Taimei”) Nanjing Fozhao Lighting Components Manufacturing Co.Ltd. (“Nanjing Fozhao”) Foshan Electrical & Lighting (Xinxiang) Co. Ltd. (“Xinxiang”) Foshan
Fozhao Zhicheng Technology Co. Ltd. (“Zhicheng”) FSL Zhida Electric Technology Co. Ltd. (FSL
Zhida) Foshan Haolaite Lighting Co. Ltd. (“Haolaite”) Fozhao (Hainan) Technology Co. Ltd.(“Hainan Technology”) Foshan Kelian New Energy Technology Co. Ltd. (“Foshan Kelian”)
Nanning Liaowang Auto Lamp Co. Ltd. (“Liaowang Auto Lamp”) Foshan NationStar
Optoelectronics Co. Ltd. (“NationStar Optoelectronics”) Foshan Sigma Venture Capital Co. Ltd.(“Sigma”) and Fozhao Huaguang (Maoming) Technology Co. Ltd. (“Fozhao Huaguang”). A totalof 14 sub-subsidiaries are also involved: Liuzhou Guige Fuxuan Technology Co. Ltd. (“LiuzhouOptoelectronics”) Liuzhou Guige Foreshine Technology Co. Ltd. (“Liuzhou Foreshine”)
Chongqing Guinuo Lighting Technology Co. Ltd. (“Chongqing Guinuo”) Qingdao Guige Lighting
Technology Co. Ltd. (“Qingdao Optoelectronics”) Indonesia Liaowang Auto Lamp Co. Ltd.(“Indonesia Liaowang”) Liaowang Auto Lamp (Suzhou) Co. Ltd. (“Suzhou Liaowang”) Zhejiang
Hule Electric Equipment Manufacture Co. Ltd. (“Hule Electric Equipment”) Foshan NationStar
Electronic Manufacturing Co. Ltd. (“NationStar Electronic Manufacturing”) Foshan Guoxing
Electronic Manufacture Co. Ltd. Nanyang Baoli Vanadium Industry Co. Ltd. (“Baoli Vanadium”)
Guangdong New Electronics Information Ltd. (“New Electronic Information”) Guangdong Fenghua
Semiconductor Technology Co. Ltd. (“Fenghua Semiconductor”) NationStar Optoelectronics
171Foshan Electrical
(Germany) Co. Ltd. (“Germany NationStar”) and Gaozhou NationStar Lighting Technology Co.Ltd. (“Gaozhou NationStar”). Additionally the Company has 1 subsidiary of a sub-subsidiary which
is Shanghai Lelaite Electrical Equipment Co. Ltd. (“Shanghai Leilite”).Given that Nanyang Baoli Vanadium Industry Co. Ltd. (Baoli Vanadium) is in a state of non-
continuing operations the Financial Statements 2024 of Baoli Vanadium were formulated at fair
value or costs whichever was lower.The scope of consolidation for the financial statements this period has increased compared to the
previous period with the addition of one subsidiary Fozhao Huaguang three sub-subsidiaries
Suzhou Liaowang Gaozhou NationStar Hule Electric Equipment and one subsidiary of a sub-subsidiary Shanghai Leilite. For more details please refer to Note IX “Changes in the Scope ofConsolidation” and Note X “Equity in Other Entities”.IV Basis for Preparation of Financial Statements
1. Preparation Basis
The Company’s financial statements are prepared on a going concern basis based on transactions and
events that actually occur in accordance with the provisions of the Accounting Standards for Business
Enterprises - Basic Guidelines and specific accounting standards issued by the Ministry of Finance
(hereinafter referred to as “ASBEs”) as well as the relevant provisions of No. 15 of the Rules
Governing the Preparation of Information Disclosures by Companies Offering Securities to the
Public - General Provisions on Financial Reporting of the CSRC and on the basis of the significant
accounting policies and accounting estimates formulated.
2. Going Concern
The Company has the ability to continue as a going concern for at least 12 months from the end of
the Reporting Period and there are no material matters affecting its ability to continue as a going
concern.V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The following significant accounting policies and accounting estimates of the Company have been
formulated in accordance with ASBEs. Operations not mentioned are treated in accordance with the
relevant accounting policies in the ASBE.
1. Statement of Compliance with the Accounting Standards for Business Enterprises
The financial statements prepared by the Company are in compliance with the ASBEs which
factually and completely present the Company’s and the consolidated financial positions on 31
December 2024 business results and cash flows as well as other relevant information for 2024.
2. Fiscal Year
A fiscal year starts on 1 January and ends on 31 December 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.
4. Recording Currency
Renminbi is the recording currency for the statements of the Company.
172Foshan Electrical
5. Methods for Determining Materiality Standards and Selection Criteria
□Applicable □ Not applicable
1. Materiality of financial statement items
The Company determines the materiality of financial statement items based on the principle of
whether such items affect the users of financial statements making economic decisions in terms of
both the nature and amount. The materiality of financial statement items in terms of the amount is
determined based on a certain percentage of relevant items in total assets total liabilities net assets
operating income and net profit. The materiality of financial statement items in terms of nature is
based on factors with a significant impact on the Company’s financial position and operating results
such as whether they are part of routine operating activities whether they result in changes in profit
or loss and whether they affect regulatory indicators.
2. Materiality of detailed items in the Notes to financial statement items
The Company determines the materiality of detailed items in the notes to financial statement items
based on the materiality of the financial statement items. This determination is made by considering
a certain percentage of the specific item or a combination of the amount of the item taking into
account the nature of the specific item. Certain items that are not material to the financial statements
may be material to the notes and still require separate disclosure in the notes. The materiality criteria
related to the notes to the financial statement items are:
Item Materiality criteria
The individual amount accounts for more than 10% of
Significant accounts receivable with bad debt provision
the account receivable or bad debt provision and the
separately accrued
amount exceeds RMB10 million.Individual amount accounts for more than 10% of the
Bad debt provision of accounts receivable collected or
current reversal of bad debt provision and the amount
reversed with significant amount in this year
exceeds RMB10 million.The individual amount accounts for more than 10% of
Significant verification of accounts receivable in this
the account receivable or bad debt provision and the
year
amount exceeds RMB10 million.The ending balance of an individual construction in
Significant construction in progress progress accounts for more than 10% and the amount
exceeds RMB50 million.The individual amount accounts for more than 10% of
Significant accounts payable/other payables over one
accounts payable over one year/other payables and the
year
amount exceeds RMB10 million.Cash flows of an individual investment accounts for
Significant cash flows generated from investing
more than 3% of the net assets at the period-end and
activities
the amount exceeds RMB100 million.Minority shareholders hold more than 5% interest and
any of the items of total assets net assets operating
Significant non-wholly-owned subsidiary revenues and net profits of the subsidiary accounts for
more than 10% of the corresponding items in the
consolidated financial statements.The investment income generated from joint ventures
or associated enterprises (The loss is calculated in
Significant joint ventures or associated enterprises
absolute terms) accounts for more than 10% of the net
profit of consolidated financial statements.The influence of individual amount on net profit
Significant debt reorganization
exceeds 10%.The amount of an individual commitment exceeds
Significant commitments
RMB10 million.
173Foshan Electrical
Item Materiality criteria
The amount of money involved in cases exceeds
Significant contingency
RMB10 million.
6. Accounting Methods for Business Combination Involving Enterprises under and not under
the Same Control
1. Business combination under the same control
In case of a long-term equity investment resulting from a business combination under the same control
if the acquirer pays cash transfers non-cash assets assumes debts as merger consideration the share
of the Company’s equity of the acquiree obtained on combination date in the carrying value of the
financial statements of the ultimate controlling party is deemed as an initial investment cost of long-
term equity investments. If the acquirer issues equity instruments as consideration for a combination
the total par value of the shares issued is treated as equity. The difference between the initial
investment cost of a long-term equity investment and the carrying amount of the consideration for
consolidation (or the total nominal value of shares issued) shall be adjusted to capital surplus; if
capital surplus is not sufficient to offset the difference retained earnings shall be adjusted.
2. Business combination not involving entities under the same control
In case of business combination involving enterprises not under the same control the combination
costs shall be the total fair values of the assets paid liabilities incurred or assumed and the equity
securities issued on the date of acquisition by the acquirer in exchange for control on the acquiree.Identifiable assets liabilities and contingent liabilities of the acquiree acquired in a business
combination not under the same control that qualify for recognition are measured at fair value on the
date of acquisition. The acquirer recognizes as goodwill the difference between the combination costs
and the fair value share of the identifiable net assets of the acquiree obtained in the combination. If
the combination costs are less than the fair value share of the acquiree’s identifiable net assets
obtained in the combination the difference between the combination costs still less than the fair value
share of the acquiree’s identifiable net assets obtained in the combination after review shall be
included in the non-operating revenue for the current period.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
1. Judgment criteria for control
The scope of consolidation of the consolidated financial statements is determined on the basis of
control. An investee is considered to be controlled if the following three elements are present: the
possession of power over the investee the enjoyment of variable returns as a result of participating
in the relevant activities of the investee and the ability to use the power over the investee to affect
the amount of returns.
2. Preparation methods for consolidation financial statements
(1) Unification of accounting policies balance sheet dates and accounting periods of parent and
subsidiary companies
If the accounting policies and accounting period adopted by the subsidiaries are inconsistent with
those of the Company necessary adjustments are made in accordance with the accounting policies
and accounting period of the Company when preparing the consolidated financial statements.
(2) Offsetting items in the consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its
subsidiaries and have been offset by internal transactions that occurred between the Company and its
174Foshan Electrical
subsidiaries and between subsidiaries. The share of owners’ equity of subsidiaries that do not belong
to the Company is presented as minority interests in the consolidated balance sheet under the item of
shareholders’ equity as “minority interests”. Long-term equity investments held by subsidiaries are
deemed as the Company’s treasury stock and presented as a deduction from shareholders’ equity in
the consolidated balance sheet under the item “Less: treasury stock”.
(3) Accounting treatment of the acquisition of subsidiaries through consolidation
For subsidiaries acquired through a business combination under common control the assets liabilities
operating results and cash flows are included in the consolidated financial statements from the
beginning of the period of consolidation as if the business combination had occurred at the time the
ultimate controlling party began to exercise control; for subsidiaries acquired through a business
combination not under the same control the fair value of the identifiable net assets on the acquisition
date is used as the basis for preparing the consolidated financial statements. The financial statements
are adjusted based on the fair value of the identifiable net assets on the acquisition date.
(4) Accounting treatment of disposal of subsidiaries
If a long-term equity investment in a subsidiary is partially disposed of without loss of control the
difference between the disposal price and the share of the net assets of the subsidiary corresponding
to the disposal of the long-term equity investment calculated on an ongoing basis from the acquisition
date or the consolidation date is adjusted to capital surplus in the consolidated financial statements
and retained earnings is adjusted if the capital surplus is not sufficient to cover the reduction. If the
control over the investee is lost due to the disposal of part of equity investments the residual equity
are re-measured at fair value on the date of loss of control. The aggregate of the consideration obtained
by disposing of the equity and the fair value of the remaining equity less the portion of the net assets
of the subsidiary that has been measured as calculated at the original shareholding proportion from
the acquisition date or combination date is recognized in profit and loss of the current period on
investments in which the control is lost and goodwill shall be offset. Other comprehensive income
related to the equity investments in the former subsidiary shall be included in the return on investment
for the current period when the Company lost the control.
8. Classification of Joint Operation Arrangements and Accounting Methods for Joint
Operations
1. Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not
reached through separate entities are classified as joint operations. Separate entities refer to entities
with separate identifiable financial structures including separate legal entities and entities that do not
have legal entity status but are recognized by law. The joint arrangements reaching through separate
entities are usually classified as joint ventures. Where changes in relevant facts and circumstances
result in changes in the rights and obligations of the joint venture parties in the joint venture
arrangement the joint venture parties shall reassess the classification of the joint venture arrangement.
2. Accounting treatment of joint operations
As a participant in a joint operation the Company recognizes the following items related to its share
of interest in the joint operations. It accounts for them following the relevant Accounting Standards
for Business Enterprises: Recognition of assets or liabilities held separately and recognition of assets
or liabilities held jointly on a share basis; recognition of revenue from the sale of the share of output
from the joint operation to which it is entitled; recognition of revenue from the joint operation arising
from the sale of output on a share basis; and recognition of expenses incurred separately and
recognition of expenses incurred in the joint operation on a share basis.
175Foshan Electrical
If the Company is a participant in a joint operation that does not enjoy joint control and it owns the
underlying assets of the joint operation and assumes the liabilities related to the joint operation the
accounting treatment of the joint operation partner shall be referred to; otherwise the accounting
treatment shall be carried out in accordance with the relevant enterprise accounting standards.
3. Accounting treatment of joint ventures
If the Company is a joint venture partner it shall account for its investment in joint ventures following
the provisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity
Investments; if the Company is a non-joint venture partner it shall account for its investment in such
joint ventures based on the extent of its influence on such joint ventures.
9. Recognition Criteria of Cash and Cash Equivalents
Cash as determined by the Company in preparing the cash flow statement represents the Company’s
cash on hand and deposits that are readily available for disbursement. Cash equivalents identified in
the preparation of the cash flow statement are investments that are held for a short period of time are
highly liquid are readily convertible to known amounts of cash and are subject to an insignificant
risk of change in value.
10. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
1. Conversion of foreign currency business
The Company records foreign currency transactions using the spot exchange rate on the transaction
date or the nearest exchange rate to the transaction date to convert into the functional currency. On
the balance sheet date the monetary items in foreign currencies are translated at the spot exchange
rate. Exchange differences arising from the difference between the spot rate on that date and the spot
rate at initial recognition or on the previous balance sheet date are recognized in profit or loss except
for exchange differences on special borrowings in foreign currencies that qualify for capitalization
which are capitalized in the period in which they are capitalized and charged to the cost of the related
assets. Non-monetary items measured at historical costs in foreign currencies are still translated at
the spot exchange rate on the transaction date with the amount of standard currency for accounting
unchanged. Non-monetary items measured at fair value in foreign currencies are translated at the spot
exchange rate on the date when the fair value is determined. The difference between the amount of
standard currency for accounting after translation and the original amount shall be treated as a fair
value change (including exchange rate changes) and recognized in current profit or loss or in other
comprehensive income.
2. Conversion of foreign currency financial statements
If the Company’s subsidiaries joint ventures and affiliated business use a different bookkeeping base
currency from the Company’s they need to convert their foreign currency financial statements before
conducting accounting and preparing consolidated financial statements. The assets and liabilities in
the balance sheet shall be translated at the spot rate on the balance sheet date. All items of owners’
equity except for “undistributed profit” shall be translated at the spot exchange rate at the time of
occurrence. Items under revenue and expenses in the income statement are translated at the spot
exchange rate on the transaction date. The exchange difference in translating foreign operations
arising from the translation are shown under other comprehensive income in the owner’s equity line
in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchange rate on
the date of occurrence of the cash flows. The impact of exchange rate changes on cash is presented
separately in the cash flow statement. When an overseas operation is disposed of the foreign currency
statement translation difference related to the overseas operation is transferred to the current profit
and loss of the disposal in full or in proportion to the disposal of the overseas operation.
176Foshan Electrical
11. Financial Instruments
1. Classification recognition and measurement of financial instruments
(1) Financial assets
Based on the business model for managing financial assets and the contractual cash flows
characteristics of financial assets the Company classifies its financial assets into the following three
categories:
a) Financial assets are measured at the amortized cost. The business model of the Company for
managing such financial assets aims at obtaining contractual cash flows and the characteristics of
contractual cash flows of such financial assets are basically the same as basic borrowing arrangement
namely the cash flow arising on a specific date which are solely payments of principal and interest
on the principal amount outstanding. Interest income is subsequently recognized on such financial
assets on the basis of the effective interest method;
b) Financial assets at fair value and changes included in other comprehensive income The business
model of the Company for managing such financial assets aims at receiving contractual cash flows
as well as selling and the characteristics of contractual cash flow of such financial assets are basically
the same as basic borrowing arrangement. Such financial assets are subsequently measured at fair
value with changes recognized in other comprehensive income except for interest income
impairment losses or gains calculated in accordance with the effective interest method and foreign
exchange gains or losses recognized in the current profit or loss;
c) Financial assets measured at fair value through profit or loss for the current period Financial assets
held that are not classified as at amortized cost and at fair value through other comprehensive income
are measured at fair value with gains or losses (including interest and dividend income) recognized
in profit or loss for the current period. On initial recognition a financial asset may be irrevocably
designated as financial asset at fair value through profit or loss if the accounting mismatch can be
eliminated or reduced. The designation shall not be revoked once made.For instruments in non-business equity instruments the Company may irrevocably assign such
investments as financial assets (equity instruments) measured at fair value through other
comprehensive income at initial recognition. The assignment is made based on investments by item
and the relevant investments meet the definition of an equity instrument from the issuer’s perspective.Such financial assets are subsequently measured at fair value and except for dividends received
(except for the portion which forms part of investment cost recovered) which are recognized in profit
or loss all other related gains and losses are recognized in other comprehensive income and are not
subsequently transferred to current profit or loss.
(2) Financial liabilities
On initial recognition financial liabilities are classified into the following categories:
a) Financial liabilities measured at fair value through profit and loss for the current period. Such
financial liabilities are subsequently measured at fair value and the resulting gains or losses are
recognized in profit or loss for the current period;
b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition
or when the continuing involvement approach applies;
c) Financial liabilities measured at amortized cost. Such financial liabilities are measured at amortized
cost using the effective interest method.
177Foshan Electrical
2. Method for recognizing the fair value of financial instruments
For a financial instrument with an active market its fair value is determined by its quoted price in the
active market; for a financial instrument without an active market its fair value is determined by
valuation techniques. Under limited circumstances if the information used to determine fair value is
insufficient or if the range of possible estimates of fair value is wide and the cost represents the best
estimate of fair value within that range the cost may represent its appropriate estimate of fair value
within that range of distribution. The Company uses all information available after the initial
recognition date about the investee’s performance and operations to determine whether the cost
represents fair value.
3. Derecognition of financial instruments
A financial asset is derecognized when one of the following conditions is met: (1) the contractual
right to receive cash flows from the financial asset is terminated; (2) the financial asset is transferred
and the conditions for derecognition are met.If the present obligation of a financial liability is discharged in whole or in part the discharged portion
is derecognized. If an existing liability is replaced by another financial liability from the same creditor
on substantially different terms or the terms of an existing liability are substantially modified the
existing financial liability is derecognized and a new financial liability is recognized simultaneously.All regular acquisitions or sales of financial assets are recognized and derecognized on a transaction
date basis.
12. Notes Receivable
The determination methods and accounting methods of notes receivable are detailed in Note V-13.Accounts Receivable.
13. Accounts Receivable
1. Measurement of expected credit loss
The Company uses expected credit losses as the basis for impairment accounting and recognizes an
allowance for bad debts for financial assets measured at amortized cost (including accounts receivable
including notes receivable and accounts receivable) financing receivables lease receivables and
other receivables.
2. Recognition method for expected credit losses
The general approach to expected credit losses is that: the Company assesses whether the credit risk
of the relevant financial instruments has increased significantly since the initial recognition on each
balance sheet date divides the process of credit impairment of financial instruments into three stages
and applies different accounting treatments to the impairment of financial instruments at different
stages: (1) in the first stage if the credit risk of a financial instrument has not increased significantly
since the initial recognition the Company will measure the loss reserves according to the amount
equivalent to the expected credit losses in the next 12 months and calculate the interest revenue
according to the book balance (i.e. before deducting the provision for impairment) and the actual
interest rate; (2) In the second stage if the credit risk of a financial instrument has increased
significantly since the initial recognition but no credit impairment has occurred the Company will
measure the loss reserves based on the expected credit loss over the entire life of the financial
instrument and calculates interest revenue based on the carrying amount of the financial instrument
and the effective interest rate; (3) In the third stage if credit impairment occurs after the initial
recognition the Company will measure the loss reserves based on the expected credit loss over the
178Foshan Electrical
life of the financial instrument and calculates interest revenue based on the amortized cost (carrying
amount less provision for impairment) and the effective interest rate.The simplified approach for expected credit losses is to always measure the allowance for losses at
an amount equal to the expected credit losses throughout their lives.
3. Accounting methods of the expected credit losses
To reflect the changes in credit risk of financial instruments since initial recognition the Company
remeasures expected credit losses at each balance sheet date. The resulting increase or reversal
amount of the loss provision should be recognized as an impairment loss or gain in profit or loss and
offset against the carrying amount of the financial asset as stated in the balance sheet or included in
projected liabilities depending on the type of financial instrument (loan commitments or financial
guarantee contracts).
4. Method of the provision for losses on the measurement of receivables lease receivables
(1) Receivables with no significant financing component. For receivables arising from transactions
governed by Accounting Standard for Business Enterprises No. 14 - Revenue that do not have a
significant financing component the Company uses a simplified approach whereby the allowance for
losses is always measured on the basis of expected credit losses throughout their lives.a) Accounts receivable of expected credit losses withdrawn individually
Rationale for a single provision for
Objective evidence of impairment
expected credit losses
The impairment tests are conducted separately for accounts receivable
Individual accruals for expected individually accrued. An impairment loss is recognized based on the
credit losses difference between the present value of future cash flows and their
carrying amount and an expected credit loss is recorded
b) Accounts receivable with expected credit losses provision based on credit risk portfolio
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
For the general lighting auto lamps
Prepare the comparative list between aging of
and other relevant business
accounts receivable and expected credit loss rate
Business portfolio of typically from the parent company
over the entire life and calculate the expected
general lighting and and the subsidiary Liaowang Auto
credit loss by consulting historical experience in
auto lamps Lamp this portfolio takes the aging
credit losses combining current situation and
of accounts receivable as the credit
prediction for future economic situation.risk characteristics
LED packaging components and
Prepare the comparative list between aging of
other relevant business with the
accounts receivable and expected credit loss rate
Business portfolio of subsidiary NationStar
over the entire life and calculate the expected
LED packaging and Optoelectronics as the
credit loss by consulting historical experience in
components representative this portfolio takes
credit losses combining current situation and
the aging of accounts receivable as
prediction for future economic situation.the credit risk characteristics
Internal business Related parties and internal
Other methods
portfolio transactions
Notes receivable for which the expected credit loss is withdrawn by credit risk characteristics
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
Portfolio 1 Bank acceptance bill Low credit risk with no provision for bad debts
Prepare the comparative list between aging of
Portfolio 2 Trade acceptance
accounts receivable and expected credit loss rate
179Foshan Electrical
over the entire life and calculate the expected
credit loss by consulting historical experience in
credit losses combining current situation and
prediction for future economic situation.The aging analyses are based on their date of entry into the accounts.Among portfolios expected credit losses accrued by aging analysis:
Expected credit loss rate
Aging Business portfolio of general Business portfolio of LED
lighting and auto lamps packaging and components
Within one year (including one
3%2%
year)
One to two years 10% 10%
Two to three years 30% 30%
Three to four years 50% 50%
Four to five years 80% 80%
Over five years 100% 100%
(2) Receivables and lease receivables containing significant financing components.
For receivables with significant financing components and lease receivables the Company measures
the provision for losses in accordance with the general method i.e. the “three-stage” model. The
credit risk characteristics grouping the aging calculation method based on the credit risk
characteristics grouping and the criteria for determining individual provisioning are consistent with
the recognition standards for those without financing components.
5. Method of measuring loss provision for other financial assets
For financial assets other than those mentioned above such as debt investments other debt
investments other receivables and long-term receivables other than lease receivables the Company
measures the allowance for losses in accordance with the general method i.e. the “three-stage” model.
(1) Categories of bad debt provision according to credit risk characteristics and basis of determination
The Company divides other receivables into certain credit risk combinations based on the nature of
the amounts. It calculates expected credit losses based on the combinations and the basis for
determining the combinations is as below:
Portfolio name Basis for portfolio recognition
Porfolio 1: Deposit security deposit Based on nature of accounts
Porfolio 2: Amounts from related parties Based on nature of accounts
Porfolio 3: Advances on behalf of others Based on nature of accounts
(2) Aging calculation method for recognizing credit risk combinations based on aging
Refer to the description of receivables with no significant financing components.
(3) Criteria for determining the bad debt provision based on individual items
Refer to the description of receivables with no significant financing components.
14. Accounts Receivable Financing
The determination methods and accounting methods of receivables financing are detailed in Note V-
13. Accounts Receivable.
180Foshan Electrical
15. Other Receivables
The determination methods and accounting methods of expected credit losses of other receivables is
the same as that of accounts receivable as detailed in Note V-13. Accounts Receivable.
16. Contract Assets
The Company presents the right to receive consideration for goods or services that have been
transferred to the customer (and which is dependent on factors other than time-lapse) as a contract
asset. The provision for impairment of contract assets is made with reference to the method of
determining expected credit losses in this note.Contract assets are categorized into the following portfolios according to credit risk characteristics:
Portfolio name Basis for portfolio recognition
For the general lighting auto lamps and other relevant business
Portfolio 1: General lighting and lamps typically from the parent company and the subsidiary
business portfolio Liaowang Auto Lamp this portfolio takes the aging of
accounts receivable as the credit risk characteristics
LED packaging components and other relevant business with
Portfolio 2: LED packaging and components the subsidiary NationStar Optoelectronics as the
business portfolio representative this portfolio takes the aging of accounts
receivable as the credit risk characteristics
Portfolio 3: Internal business portfolio Related parties and internal transactions
17. Inventory
1. Classification of inventories
Inventory refers to the finished goods or merchandise held by the Company for sale in the ordinary
course of business work-in-progress during the production process and materials and supplies
consumed in the production or service provision process. It mainly includes raw materials circulating
materials (such as packaging materials low-value consumables etc.) materials for entrusted
processing work-in-progress self-manufactured semi-finished products and finished goods
(inventory goods).
2. Pricing method of issuing inventories
When inventory is issued the Company uses the weighted average method to determine the actual
cost of the inventory issued.
3. Inventory system of inventories
The perpetual inventory system is adopted for the inventories of the Company.
4. Amortization of low-value consumables and packing materials
The one-off charge-off method is used for low-value consumables and packaging materials.
5. Criteria for recognizing and accrual method of provision for decline in value of inventories
Net realizable value refers to the amount after deducting the cost estimated until completion
estimated selling expenses and relevant taxes from the estimated selling price of the inventory. The
Company determines the net realizable value of inventories based on solid evidence obtained and
after taking into consideration the purpose for which the inventory is held and the impact of post-
balance sheet events.
181Foshan Electrical
The net realizable value of finished goods materials for sale and other merchandise inventories used
directly for sale is determined in the normal course of production and operation as the estimated
selling price of such inventories less estimated selling expenses and related taxes.The net realizable value of material inventories subject to processing is determined in the normal
course of production operations as the estimated selling price of the finished goods produced less the
estimated costs to be incurred to completion estimated selling expenses and related taxes. The
Company determines the net realizable value of inventories based on solid evidence obtained and
after taking into consideration the purpose for which the inventory is held and the impact of post-
balance sheet events.
18. Assets Held for Sale
1. Recognition criteria and accounting treatment for non-current assets classified as held for sale or
disposal groups
A non-current asset or disposal group whose carrying value will be recovered principally through sale
rather than through continuing use is classified as held for sale and meets the following conditions:
first it is immediately available for sale under current conditions based on the customary practice for
sales of such assets or disposal groups in similar transactions; and second it is highly probable that
the sale will occur i.e. the enterprise has already resolved on a plan for the sale and has obtained a
firm commitment to purchase and it is expected that the sale is expected to be completed within one
year. The relevant regulations require the approval of the relevant or regulatory authority of the
enterprise before the sale shall have been approved.When the Company initially measures or remeasures non-current assets or disposal groups held for
sale on the balance sheet date if the carrying value is higher than the fair value minus the net amount
of the sale costs the carrying value will be written down to the net amount of fair value minus the
sale costs. The amount written down will be recognized as asset impairment loss and included in
current profit and loss and provision for impairment of assets held for sale will be made.The amount of asset impairment loss recognized for disposal groups held for sale shall be offset
against the carrying value of goodwill in the disposal group first and then against the carrying value
of each non-current asset proportionately according to the proportion of the carrying value of each
non-current asset in the disposal group as defined in the applicable measurement of the Accounting
Standards for Business Enterprises - Non-current Assets Held for Sale Disposal Groups and
Discontinued Operations.
2. Recognition criteria and presentation of discontinued operations
Discontinued operations is a separately distinguishable component that meets one of the following
conditions and that has been disposed of by the Company or classified by the Company as held for
sale: the component represents a separate principal business or a separate principal operating area;
the component is part of a related program of proposed dispositions of a separate principal business
or a separate principal operating area; The component is a subsidiary acquired specifically for resale.The Company presents gains and losses from continuing operations and gains and losses from
discontinued operations separately in the statement of income. Operating gains and losses such as
impairment losses and reversal amounts for discontinued operations and gains and losses on
disposals are presented as gains and losses from discontinued operations. The revenues expenses
gross profit income tax expense (benefit) and net profit from discontinued operations impairment
losses recognized on assets or disposal groups of discontinued operations and the amount of their
reversal total gain or loss on disposal of discontinued operations income tax expense (benefit) and
net gain or loss on disposal net cash flows from operating activities investing activities and financing
182Foshan Electrical
activities of discontinued operations and gains and losses from continuing operations and gains and
losses from discontinued operations attributable to owners of the parent company are disclosed in the
notes.
19. Investment in Debt Obligations
Not applicable
20. Other Investment in Debt Obligations
The determination methods and accounting methods of other investment in debt obligations are
detailed in Note V-11. Financial Instruments.
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
1. Judgment criteria for joint control and significant influence
Joint control means that activities that have a significant impact on the return of an arrangement must
be decided upon with the unanimous consent of the participants sharing control including sales and
purchases of goods or services management of financial assets purchases and disposals of assets
research and development activities and financing activities. Significant influence refers to the
condition where an investor holds between 20% to 50% of the voting capital in an investee generally
indicating a significant influence. Or although less than 20% having a significant influence when
one of the following conditions is met: Representation on the board of directors or similar authority
of the investee; participation in the policy-making process of the investee; assignment of management
personnel to the investee; reliance of the investee on the technology or technical information of the
investee; and major transactions with the investee.
2. Determination of initial investment cost
For long-term equity investments acquired through a business combination in the case of a business
combination under the same control the initial investment cost of the long-term equity investment
shall be the share of the owners’ equity of the party being combined in the consolidated financial
statements of the ultimate controlling party on the combination date; in the case of a business
combination not under the same control the initial investment cost of the long-term equity investment
shall be the cost of combination determined on the acquisition date; for long-term equity investments
acquired by paying cash the initial investment cost is the actual purchase price paid; for long-term
equity investments acquired by issuing equity securities the initial investment cost is the fair value
of the equity securities issued; for long-term equity investments acquired through debt restructuring
the initial investment cost is determined in accordance with the relevant provisions of Accounting
Standards for Business Enterprises No. 12-Debt Restructuring; for long-term equity investments
acquired through exchange of non-monetary assets the initial investment cost is determined in
accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 7-
Exchange of Non-monetary Assets.
3. Method of subsequent measurement and recognition of profit or loss
Long-term equity investments in which the Company can exercise control over the investees are
accounted for by the cost method and long-term equity investments in associates and joint ventures
are accounted for by the equity method. If a portion of the Company’s equity investments in affiliates
is held indirectly through venture capital institutions mutual funds trust companies or similar
183Foshan Electrical
entities including investment-linked funds regardless of whether the above entities have significant
influence over this portion of the investment the Company treats it in accordance with the relevant
provisions of Accounting Standards for Business Enterprises No. 22-Recognition and Measurement
of Financial Instruments and accounts for the remaining portion with the equity method.
23. Investment Properties
Measurement model of investment property
Measurement of cost method
Depreciation or amortization method
The Company’s investment property include leased land use rights leased buildings and land use
rights held and ready to be transferred after appreciation. Investment property is initially measured
according to cost and then measured by cost model.The Company uses the composite life depreciation method for buildings leased out of investment
properties and the specific accounting policies are the same as those for fixed assets. Land use rights
leased out of investment properties and land use rights held and intended to be transferred after
appreciation are amortized through the straight-line method with the same accounting policies as
those for the intangible assets segment.
24. Fixed Assets
(1) Recognition conditions
The fixed assets refer to tangible assets held for production of goods provision of labour services
lease or business with a service life of over a fiscal year. Recognition is made when the following
conditions are met: The economic benefits associated with the fixed-asset will probably flow to the
enterprise; the cost of the fixed-asset can be measured reliably.
(2) Depreciation method
Depreciation Annual depreciation
Category Depreciable life Residual value rate
method rate
Houses and Straight-line
3-38 years 1%-10% 31.67%-3.17%
buildings depreciation method
Machinery Straight-line
2-11 years 1%-10% 47.50%-8.18%
equipment depreciation method
Transportation Straight-line
Five to ten years 1%-10% 19.00%-9.50%
equipment depreciation method
Electronic Straight-line
Two to eoght years 1%-10% 47.50%-11.88%
equipment depreciation method
Straight-line
Other equipment Five years 5%-10% 19.00%-18.00%
depreciation method
The Company’s fixed assets are mainly classified into: buildings and structures machinery and
equipment electronic equipment transportation equipment etc. The depreciation method is the
average annual limit method. The service lives and estimated residual values of fixed assets are
determined according to the nature and utilization of each category of fixed assets. At the end of the
year the service lives estimated residual values and depreciation methods of fixed assets are
reviewed and adjustments are made accordingly if there are differences from the original estimates.All fixed assets are depreciated except for fully depreciated fixed assets that continue to be used and
land that is separately accounted for.
184Foshan Electrical
25. Construction in Progress
The Company’s construction in progress is divided into two types: Construction on a self-operation
basis and a contracted basis. The criteria and time point for carrying forward construction in progress
to fixed assets are based on the construction in progress reaching its intended state of use. The
standard for determining the intended usable condition shall be one of the following: The physical
construction (including installation) of the fixed assets has been fully completed or substantially
completed; production or trial operation has been conducted and the results show that the assets can
operate normally or can steadily produce qualified products or the results of the trial operation show
that they can function normally or operate; the amount of expenditure on the fixed assets constructed
is little or almost no longer incurred; the fixed assets acquired have met the design or contract
requirements or are substantially consistent with the design or contract requirements.
26. Borrowing Costs
1. Recognition principles for the capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributable to the acquisition
construction or production of assets that meet the capitalization conditions they shall be capitalized
and included in the costs of the underlying assets; other borrowing costs recognized as costs according
to the amount incurred shall be included in the profit and loss for the current period. Assets eligible
for capitalization refer to assets such as fixed assets investment properties and inventories that
require a long period for their acquisition or production activities to reach the expected usable or
saleable status.
2. Calculation of capitalization amount
The capitalization period refers to the period from when the capitalization of borrowing costs starts
to when the capitalization stops. The period during which capitalization of borrowing costs is
suspended is not included. Capitalization of borrowing costs shall be suspended if there is an
abnormal interruption in the course of acquisition or production and the interruption lasts for more
than three consecutive months.Borrowing of special borrowings is determined by the interest expense incurred in the period of the
special borrowings less the interest revenue expenditure earned by depositing the unused borrowed
funds in banks or the investment income earned by making temporary investments; the appropriation
of general borrowings is determined by multiplying the weighted average amount of asset expenses
over the portion of special borrowings by the capitalization rate of the general borrowings
appropriated which is the weighted average interest rate of general borrowings; if there is a discount
or premium on borrowings the amount of discount or premium to be amortized in each accounting
period is determined by the effective interest rate method. The amount of interest is adjusted for each
period.The effective interest rate method is a method of calculating the amortized discount or premium or
interest expense on a borrowing based on its effective interest rate. The effective interest rate method
calculates the amortized discount or premium or interest expense on a borrowing based on its effective
interest rate.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
185Foshan Electrical
29. Intangible Assets
1. Pricing method of intangible assets
The Company initially measures the intangible assets at cost. For the acquired intangible assets the
actual prices paid and related expenses shall be regarded as the actual costs. The actual cost of
intangible assets invested by investors shall be recognized according to the value agreed upon in the
investment contract or agreement. In case of unfair contract or agreement the actual cost shall be
recognized according to the fair value. The cost of self-developed intangible assets shall be the total
expenditure incurred before they reach the intended use.
2. Service life and its determination basis estimation amortization method or review procedure
Intangible assets with finite service lives are amortized on a straight-line basis over their service lives
and the service lives and amortization methods of intangible assets are reviewed at the end of the year
and adjusted accordingly if there are differences from the original estimates. Intangible assets with
indefinite service lives are not amortized but are reviewed at the end of the year for service lives and
estimated when there is conclusive evidence that the service life is finite.The useful life and its determination basis and amortization method of intangible assets with restricted
useful life:
Category Useful life Determination basis of useful life Amortization method
Land use right 20-50 years Duration of land use rights Method of line
Patent use right 5-20 years Expected number of years of benefit Method of line
Software 3-10 years Expected number of years of benefit Method of line
Trademark right 3-10 years Expected number of years of benefit Method of line
Other 3-10 years Expected number of years of benefit Method of line
The intangible assets are regarded as intangible assets with uncertain service life if the term during
which they can bring economic benefits to the Company is unforeseeable or if their usage period is
uncertain. The bases for determining of uncertain service life are: The intangible assets come from
contractual or other legal rights but the contract or laws have no certain stipulations of the service
life; the term during which the intangible assets bring economic benefits to the Company is still
unforeseeable even with consideration of peer status or demonstrations of related professionals.At the end of each year the review of service life of intangible assets with uncertain service life
mainly adopts the method of reviewing from lower department to upper department where
departments related to the use of intangible assets shall conduct the basic review and make assessment
of whether the determining basis of uncertain service life changes.
3. The scope of R&D expenditure collection and the related accounting treatment
The scope of the Company’s R&D expenditures is mainly formulated based on the Company’s R&D
projects which mainly includes: including R&D personnel’s employee remuneration direct input
expenses depreciation expenses and long-term amortization expenses design expenses equipment
commissioning expenses amortization expenses of intangible assets and commissioned external
R&D expenses.Expenditures incurred during the research phase of an internal research and development project are
recognized in profit or loss when incurred; expenditures incurred during the development phase that
meet the conditions for recognition as an intangible asset are transferred to intangible asset accounting.
186Foshan Electrical
Specific criteria for dividing the research phase and development phase of internal research and
development projects: The expenditures in internal research and development projects of the
Company are classified into expenditures in research stage and expenditures in development stage.The expenditures in research stage are included in the current profits and losses when incurred. The
expenditures in development stage are recognized as intangible assets when meeting the following
conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits including the proof that the
products produced with the intangible assets can be sold in a market or the proof of its usefulness if
the intangible assets can be sold in a market and will be used internally;
(4) Having sufficient technical financial resources and other resources to support the development
of the intangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.
The cost of self-developed intangible assets includes the total expenditure incurred after meeting
intangible assets recognition criterion and before reaching intended use. Expenditures that have been
expensed in previous periods are no longer adjusted.
30. Long-term Asset Impairment
For long-term assets having the indication of impairment on balance sheet date such as long-term
equity investments investment property measured in cost mode fixed assets construction in progress
productive living assets measured in cost mode oil and gas assets and intangible assets the Company
shall test the impairment. If the impairment test results indicate that the recoverable amount of the
asset is lower than its book value the impairment provision shall be made at the difference and
included in the impairment loss.The recoverable amount is the higher of the fair value of the asset minus the disposal cost and the
present value of the expected future cash flows of the asset. The provision for impairment of assets
is calculated and recognized on the basis of individual assets. If it is difficult to estimate the
recoverable amount of individual assets the recoverable amount of the asset group shall be
recognized by the asset group to which the asset belongs. The asset group is the smallest portfolio of
assets that can generate cash inflows independently.Goodwill presented separately in the financial statements shall be tested for impairment every year
whether or not there is any indication of impairment. The book value of the goodwill shall be
apportioned to the asset group or portfolio of asset groups that is expected to benefit from the
synergies of the business combination when the impairment test is conducted. The corresponding
impairment loss is recognized if the test results indicate that the recoverable amount of the asset group
or portfolio of asset groups containing the apportioned goodwill is lower than its book value. The
amount of the impairment loss shall offset the book value of the goodwill apportioned to the asset
group or portfolio of asset groups and offset the book value of other assets in proportion according
to the proportion of the book value of other assets except the goodwill in the asset group or portfolio
of asset groups.Once the impairment loss of the above asset is recognized the portion that the value is restored will
not be written back in subsequent periods.
187Foshan Electrical
31. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year
(excluding one year) that have occurred but are attributable to the current and future periods. Long-
term prepaid expense shall be amortized averagely within benefit period. In case of no benefit in the
future accounting period the amortized value of such item that fails to be amortized shall be
transferred into the current profits and losses.
32. Contract Liabilities
The Company presents the obligations to transfer goods or provide services to customers for
consideration received or receivable from customers as contract liabilities. Contract assets and
contract liabilities under the same contract are presented net: if the net amount results in a debit
balance it is presented in “Contract Assets” or “Other Non-current Assets” based on its liquidity; if
the net amount results in a credit balance it is presented in “Contract Liabilities” or “Other Non-current Liabilities” based on its liquidity. Contract assets and contract liabilities under different
contracts cannot be offset against each other.
33. Payroll
Employee benefits refer to all forms of remuneration or compensation given by the Company for
services rendered by employees or for the termination of employment relationships. Employee
benefits mainly include short-term benefits post-employment benefits termination benefits and other
long-term employee benefits.
(1) Accounting methods for short-term remuneration
The short-term compensation actually happened during the accounting period when the active staff
offering the service for the Company should be recognized as liabilities and is included in the current
profits and losses except for those required or allowed to be included in the assets cost by the
Accounting Standards for Business Enterprises. The employee services benefits actually happened in
the Company shall be included in the current profits and losses or relevant assets cost according to
the actual amount. Of which the non-monetary benefits should be measured according to the fair
value. During the accounting term in which employees provide service the Company calculates and
determines the corresponding payroll amount in accordance with the withdrawal basis and withdrawal
proportion specified in regulations with the social insurance premiums such as medical insurance
premiums industrial injury insurance premium and birth insurance premium housing fund and the
labour union budget and employee education budget withdrawn in regulations and then recognizes
it as liabilities that are included in the current profits and losses or relevant assets cost.
(2) Accounting treatment of the welfare after demission
The payable and deposit amount calculated according to the defined contribution plan during the
accounting period when the active staff offering the service for the Company is recognized as
liabilities and is included in the current profits and losses or relevant assets cost. The benefit
obligations arising from the defined benefit plan shall be attributable to the period in which the
employees provide services based on the formula determined by expected cumulative welfare unit
method and included in current profits and losses or cost of relevant asset.
(3) Accounting treatment of the demission welfare
When offering the demission welfare the Company shall recognize the payroll liabilities incurred
from the demission welfare on the earlier of the date when the Company could not unilaterally
withdraw the demission welfare offered by the plan or layoff proposal owing to termination of the
labour relationship or the date when the Company recognizes the cost related to the reorganization of
188Foshan Electrical
the payment of the demission welfare and include the payroll liabilities into the current profits and
losses:
(4) Accounting treatment of the welfare of other long-term staffs
The other long-term welfare that the Company offers to the staff if met with the setting drawing plan
shall be disposed of according to the relevant setting drawing plan; except for that net liabilities or
net assets of the welfare of other long-term staff shall be recognized and measured according to the
setting drawing plan.
34. Accrued Liabilities
The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a
current obligation of the Company and it is likely to cause any economic benefit to flow out of the
enterprise as a result of performance of the obligation while the amount of the obligation can be
measured in a reliable way. The Company conducts the initial measurement in accordance with the
best estimate of the necessary expenses for the performance of the current obligation. If there is a
sequent range for the necessary expenses and if all the outcomes within this range are equally likely
to occur the best estimate shall be determined in accordance with the midpoint estimate within the
range; if the contingencies concern two or more items the best estimate shall be calculated and
determined in accordance with all possible outcomes and the relevant probabilities.Review of the book value of provisions shall be conducted on the balance sheet date. The book value
shall be adjusted in accordance with the current best estimate when there is definite evidence
indicating that the book value cannot reflect the current best estimate in faithfulness.
35. Share-based Payment
Not applicable
36. Other Financial Instruments such as Preferred Shares and Perpetual Bonds
Not applicable
37. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement by type of
business
The Company recognizes revenue based on the transaction price apportioned to the performance
obligation in a contract when the customer obtains control of the underlying good or service.Obtaining control of related goods refers to that customers can control the use of the goods and obtain
almost all the economic benefits from the goods. A performance obligation is a contractual
commitment by the Company to transfer a clearly distinguishable commodity to a customer. The
transaction price is the amount of consideration that the Company expects to be entitled to receive as
a result of the transfer of the commodity to the customer excluding amounts collected on behalf of
third parties and amounts that the Company expects to return to the customer.Whether the performance obligation is to be fulfilled within a certain period of time or at a certain
point in time depends on the terms of the contract and the relevant legal provisions. If the performance
obligation is fulfilled within a certain period of time the Company recognizes revenue in accordance
with the progress of performance. Otherwise the Company recognizes revenue at a point in time
when the customer obtains control of the underlying asset.The Company determines whether the Company’s status is that of a principal or agent when engaging
in a transaction based on whether it has control over the goods or services prior to transferring them
189Foshan Electrical
to the customer. If the Company is able to control the goods or services before transferring them to
the customer the Company is the principal responsible party and recognizes revenue based on the
total consideration received or receivable. Otherwise the Company shall recognize revenue as an
agent based on the amount of commissions or fees to which it is expected to be entitled which shall
be determined at the net amount of the total consideration received or receivable less the price payable
to other related parties or at the established commission amount or percentage etc.Specific principles and measurement methods for revenue recognition by business type: The
Company recognizes revenue from general lighting products LED packaging and component
products automotive lamp products trading and other products as follows:
(1) Recognition of domestic sales revenue: Under the conventional settlement mode the Company
has delivered goods that have passed inspection to the purchaser as required by the purchaser; the
amount of revenue has been determined a sales invoice has been issued and the payment has been
received or is expected to be recovered; under the consignment sales settlement mode the Company
recognizes sales revenue when the product is issued and the settlement notice is issued after the
customer inspection is qualified;
(2) Recognition of export sales revenue: The Company has produced goods according to the
requirements stipulated in the sales contract and completed the export declaration procedures after
the goods have passed inspection; products have been loaded on board; 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.Different business models for the same type of business involving different revenue recognition and
measurement methods
None.
38. Contract Costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the costs tofulfil a contract with a customer. Incremental costs of obtaining a contract (“contract acquisitioncosts”) are costs that won’t have been incurred if the contract is not acquired. If the cost is expected
to be recovered the Company regards it as contract acquiring cost and confirms it as an asset.Costs incurred for the performance of a contract that do not fall within the scope of other enterprise
accounting standards such as inventory are recognized as an asset as contract performance costs
when the following conditions are simultaneously met: The cost is directly related to a current or
anticipated acquisition of a contract and includes direct labour direct materials manufacturing
overhead (or similar costs) costs explicitly attributable to the user and other costs incurred solely as
a result of that contract; the cost increases the resources available to meet future performance
obligations; and the cost is expected to be recovered.Contract performance costs recognized as assets are included in “Inventory” on the balance sheet if
the amortization period at the initial recognition doesn’t exceed one year or one normal operating
cycle; if the amortization period at the initial recognition is more than one year or one normal
operating cycle they are included in “Other non-current assets” on the balance sheet.Contract acquisition cost recognized as assets are included in “Other current assets” on the balance
sheet if the amortization period at the initial recognition doesn’t exceed one year or one normal
operating cycle; if the amortization period at the initial recognition is more than one year or one
normal operating cycle they are included in “Other non-current assets” on the balance sheet.
190Foshan Electrical
The Company amortizes the assets recognized for contract acquisition costs and contract performance
costs on the same basis as the revenue recognition of the merchandise to which the assets relate and
recognizes them in profit or loss for the current period. Assets formed from the incremental cost of
acquiring a contract with an amortization period of not more than one year are recognized in profit or
loss for the current period when it occurs.If the carrying amount of an asset related to the cost of a contract exceeds the difference between the
following two items the Company makes an allowance for impairment and recognizes an asset
impairment loss for the excess: the remaining consideration expected to be received for the transfer
of the merchandise to which the asset relates; and the estimated costs to be incurred for the transfer
of the related merchandise.If the two differences above are higher than the book value of the assets due to the subsequent changes
in the impairment factors in previous periods the asset impairment provisions set aside should be
reversed and recognized as profit and loss of the current period. However upon the reversal the book
value of the assets shall not exceed the book value of the assets on the reversal date supposing that
impairment provisions are not set aside.
39. Government Subsidies
1. Category of and accounting treatment for government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company
from the government (excluding the capital invested by the government as an equity holder). If a
government subsidy is a monetary asset it shall be measured according to the amount received or
receivable. If a government subsidy is a non-monetary asset it shall be measured at its fair value and
shall be measured at a nominal amount when the fair value cannot be obtained reliably.Government subsidies related to the daily activities are included in other income in accordance with
the nature of economic business. Government subsidies unrelated to the daily activities are included
in non-operating revenue.Government subsidies are recognized as asset-related subsidies when stipulated by government
documents to be used for acquisition construction or otherwise formation long-term assets.Regarding the government grants that the government document does not specify the object of
subsidy and can form long-term assets the part of government subsidy corresponding to the asset
value shall be regarded as the asset-related government subsidy and the rest shall be regarded as
income-related government subsidy. If it is difficult to distinguish the government subsidy shall be
regarded as the income-related government subsidy. Government grants related to assets are
recognized as deferred income. The amount recognized as deferred income is included in the current
profits and losses in accordance with reasonable and systematic method in the useful life of relevant
assets.Government subsidies other than asset-related government subsidies are recognized as government
subsidies related to income. Government subsidies related to income used to compensate the relevant
costs expenses or losses of the Company in the subsequent period shall be recognized as deferred
income and shall be included in the current profit and loss during the period of confirming the
relevant cost expenses or losses; subsidies used to compensate the relevant costs expenses or losses
incurred by the Company shall be directly included in the current profits and losses.In the case that the Company obtains a policy favourable loan interest subsidy and the fiscal system
allocates the fund of interest subsidy to the lending bank who provides loans to the Company at a
policy favourable interest rate the actual loan amount received is recognized as the recorded value
of the loan and the relevant borrowing costs are calculated based on the loan principal and the policy
191Foshan Electrical
favourable interest rate; if the fiscal system allocates the fund of interest subsidy to the Company
directly the Company reduces the corresponding interest subsidy against relevant borrowing costs.
2. Recognition time of government subsidies
Government subsidies shall be recognized when the Company satisfies the conditions attached to the
government subsidies and is able to receive them. Government subsidies measured according to the
receivable amount shall be recognized when there is positive evidence at the end of the period that
they can meet the relevant conditions stipulated by the financial support policies and are expected to
receive financial support funds. Other government subsidies other than government subsidies
measured by amount receivable are recognized when the Company actually receives the subsidies.
40. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. Recognition of deferred income taxes
The Company recognizes the deferred income tax assets or deferred income tax liabilities in
accordance with the applicable tax rate during the estimated period of recapturing the assets or paying
the liabilities for the different amount between the book value of assets or liabilities and its tax base
(for items not recognized as assets and liabilities if its tax basis can be determined according to the
tax law the tax basis is recognized as the different amount).
2. Measurement of deferred income tax
The recognition of deferred income tax assets is subject to the amount of taxable income obtained to
offset the deductible temporary differences. On the balance sheet date deferred income tax assets
without recognition during the former accounting period shall be recognized if there are definite
indications representing that it is probable to have sufficient taxable income to offset the deductible
temporary differences during the future period. If it is likely that sufficient taxable income will not
be available to offset the benefit of the deferred income tax assets in the future period the book value
of the deferred income tax assets will be written down.For taxable temporary differences related to the investment in subsidiaries and associated enterprises
the deferred income tax liabilities are recognized unless the time of temporary differences reversal
can be controlled by the Company and are probably not to be reversed in foreseeable future. For
deductible temporary differences related to the investment in subsidiaries and associated enterprises
the deferred income tax assets are recognized if the temporary differences are probably to be reversed
in foreseeable future and it is likely to have taxable income to offset the deductible temporary
differences.
3. Basis for netting off deferred income taxes
Deferred income tax assets and deferred income tax liabilities are presented in net amount after
offsetting when the following conditions are simultaneously met: there is a legal right to settle current
income tax assets and current income tax liabilities on a net basis; the deferred income tax assets and
deferred income tax liabilities are related to income taxes levied by the same tax authority on the
same taxable entity or are related to different taxable entities but are not expected to reverse in the
future in each of the periods in which the deferred income tax assets and deferred income tax liabilities
are material; and the taxable entities involved intend to settle current income tax assets and current
income tax liabilities on a net basis. However in each future period in which the deferred tax assets
and deferred tax liabilities are reversed the taxable entity involved intends to either settle the current
income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle
the liabilities at the same time.
192Foshan Electrical
41. Lease
The Company assesses whether a contract is a lease or contains a lease at the inception date of the
contract. A contract is a lease or contains a lease if one of the parties to the contract has given up the
right to control the use of one or more identified assets for a specified period of time in exchange for
consideration.
(1) Accounting treatment for leases as the lessee
1.On the start date of the lease term the Company deems the right-of-use assets and lease liabilities
of all the operating leases except for the short-term leases and low-value leases and recognizes the
depreciation expense and interest expense respectively within the lease term.
(1) Right-of-use assets
After the commencement date of the lease term the Group uses the cost for initial measurement of
right-of-use assets. This cost includes the initial measurement amount of the lease liability lease
payments made on or before the commencement date of the lease term net of lease incentives and
initial direct cost.If it is reasonably certain that the ownership of the leasehold property will be obtained at the end of
the lease term the Company will depreciate the leasehold property over its estimated remaining
service life. If it is not reasonably certain that the ownership of the leasehold property will be obtained
at the end of the lease term the Company will depreciate the leased assets over the lease term or the
remaining service life whichever is shorter. When the recoverable amount is less than the carrying
amount of the right-of-use asset the carrying amount is written down to the recoverable amount.
(2) Lease liabilities
The Company initially measures the lease liabilities at the current value of the lease payments
outstanding at the start date of the lease term. Lease payments include fixed payments and payments
that are reasonably certain to be made when the option to purchase or terminate the lease is exercised.Variable lease payments that are not covered in the measurement of the lease liabilities are included
in current profit or loss when actually incurred.The Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit
in lease cannot be reasonably determined the Company’s incremental borrowing rate is used as the
rate of discount. Interest expense on the lease liability for each period during the lease term is
calculated on the basis of a fixed periodic rate i.e. the discount rate used by the Company or a revised
discount rate and is included in finance costs.
2. Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as
a lessee for simplified treatment
For short-term leases with a lease term of no exceeding 12 months and leases where the brand-new
value of a single asset is less than RMB40000 the Company has elected not to recognize right-of-
use assets and lease liabilities and to charge the related rental expenses to current profit or loss or the
cost of the related assets on a straight-line basis for each period during the lease term.
(2) Accounting treatment of leases as the lessor
The Company recognizes leases that transfer substantially all the risks and rewards associated with
ownership of the leased asset as finance leases at the inception of the lease and leases other than
these are classified as operating leases.
(1) Accounting treatment of operating leases
193Foshan Electrical
Rental income from operating leases is recognized on a straight-line basis over the lease term. Initial
direct expenses are capitalized and recognized as current income in instalments over the lease term
on the same recognition basis as rental income and variable rentals not included in lease receipts are
recognized as rental income when they are actually incurred.
(2) Accounting treatment of financial lease
On the inception of a lease the difference between the sum of finance lease receivable and
unguaranteed residual value and its present value is recognized as unrealised lease income by the
Company which is recognized as lease income in each period when the rent is received in the future
and the finance lease asset is derecognized. Initial direct costs are included in the initial recorded
value of the finance lease receivable.
42. Other Significant Accounting Policies and Estimates
(1) Safety production expenses
Operating in the electrical machinery and equipment manufacturing industry the Company has
accrued safety production expenses in accordance with the relevant provisions of the Management
Measures for the Provision and Use of Enterprise Production Safety Costs (CZ [2022] No. 136)
jointly issued by the Ministry of Finance and the Ministry of Emergency Management on 21
November 2022. Safety production expenses when accrued are included in costs or current profit or
loss of relevant products and in the “Special Reserve” account. When safety production expenses are
used within the prescribed scope and are operating expenses they are directly used to offset the
special reserves. If they form fixed assets the expenses incurred are first aggregated under the
“Construction in Progress” account and when the safety projects are completed and reach the
predetermined usable state they are recognised as fixed assets. Meanwhile the special reserves are
offset as per the cost of forming fixed assets and an equivalent amount of accumulated depreciation
is recognised. The aforesaid fixed assets will not be depreciated as accrued in the future period.
43. Changes in Main Accounting Policies and Estimates
(1) Change in accounting policies
□Applicable □ Not applicable
Unit: RMB
Name of statement item
Changes to the accounting policies and why Amount affected
materially affected
In October 2023 the Ministry of Finance issued the Notice
on Issuing the Interpretation No. 17 of Accounting
Standards for Business Enterprises (CK [2023] No. 21)which stipulates provisions on “Classification of CurrentNone 0.00and Non-current Liabilities” “Disclosure of SupplierFinancing Arrangements” and “Accounting Treatment ofSale and Leaseback Transactions”. These provisions were
effective from 1 January 2024.In December 2024 the Ministry of Finance issued the
Notice on Issuing the Interpretation No. 18 of Accounting
Standards for Business Enterprises (CK [2024] No. 24)
Operating costs sellingwhich stipulates provisions on “Accounting Treatment 0.00expenses
of Warranty-type Quality Guarantees Not Constituting aSeparate Performance Obligation”. These provisions will
be effective from the date of issuance.
194Foshan Electrical
(1) The Company has implemented the Interpretation No. 17 of Accounting Standards for Business
Enterprise since 1 January 2024. This provision has no impact on the financial statements for the
reporting period and does not involve retrospective adjustments for prior years.
(2) The Company has implemented the Interpretation No. 18 of Accounting Standards for Business
Enterprise since 1 January 2024. This includes accounting treatment for the estimated liabilities
arising from warranty-type quality guarantees not constituting a separate performance obligation. In
accordance with the Accounting Standards for Business Enterprises No.13 - Contingencies the
estimated liability is recognized by debiting “Cost of Goods Sold” “Other Operating Costs” and other
relevant accounts and crediting the “Provisions” account. Correspondingly the “Operating Costs” in
the income statement and “Other Current Liabilities” “Non-current Liabilities Due Within One Year”
and “Provisions” in the balance sheet are presented. The Company applies the retrospective
adjustment method for this accounting policy change on the date of initial implementation.
(2) Changes in accounting estimates
□Applicable □Not applicable
(3) Adjustments to financial statement items at the beginning of the year of the first
implementation of the new accounting standards implemented since 2023
□Applicable □ Not applicable
Explanation of adjustment
On the date of initial implementation the Company applies the retrospective adjustment method for
the provisions of the Interpretation No. 18 of Accounting Standards for Business Enterprises. The
impact of the provisions on the 2023 financial statements is as follows:
Unit: RMB
Item of consolidated income statement 2023 (before) 2023 (after) Affected
Operating cost 7354814252.01 7370742684.63 15928432.62
Selling expense 331039604.55 315111171.93 -15928432.62
Unit: RMB
Income Statement Items of the Parent Company 2023 (before) 2023 (after) Affected
Operating cost 2669830010.84 2670075179.86 245169.02
Selling expense 201942644.31 201697475.29 -245169.02
44. Other
None.VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or
VAT 3% 6% 9% 13%
taxable service
Urban maintenance and
Turnover tax payable 7% 5%
construction tax
Enterprise income tax Taxable income 15% 22% 25%
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
195Foshan Electrical
Name Income tax rate
The Company Zhida Company Chanchang Company
Haolite Company Liaowang Auto Lamp Chongqing
Guinuo Liuzhou Optoelectronics Liuzhou Foreshine
Qingdao Optoelectronics NationStar Optoelectronics 15%
NationStar Semiconductor Fenghua Semiconductor
Hainan TechnologyHule Electric Equipment and
Germany NationStar.Indonesia Liaowang 22%
Other subsidiaries 25%
2. Tax Preference
1. In December 2023 the Company passed the re-evaluation for high and new technology enterprise
status and was awarded the High and New Technology Enterprise Certificate (Certificate No.:
GR202344003659).According to relevant regulations the Company is entitled to a reduced enterprise
income tax rate of 15% for three years starting from 2023.
2. In December 2022 the subsidiary Zhida Company passed the re-evaluation for high and new
technology enterprise status and was awarded the High and New Technology Enterprise Certificate
(Certificate No.: GR202244009711).According to the relevant regulations Zhida Company is
entitled to a reduced enterprise income tax rate of 15% for three years starting from 2022.
3. In November 2024 the subsidiary Chanchang Company passed the re-evaluation for high and new
technology enterprise status and was awarded the High and New Technology Enterprise Certificate
(Certificate No.: GR202444001793).According to the relevant regulations Chanchang Company is
entitled to a reduced enterprise income tax rate of 15% for three years starting from 2024.
4. In December 2022 the subsidiary Haolaite Company passed the assessment for high and new
technology enterprise status and was awarded the High and New Technology Enterprise Certificate
(Certificate No.: GR202244003711).According to relevant regulations Haolaite Company is entitled
to a reduced enterprise income tax rate of 15% for three years starting from 2022.
5. In December 2023 the subsidiary Liaowang Auto Lamp passed the re-evaluation for high and new
technology enterprise status and was awarded the High and New Technology Enterprise Certificate
(Certificate No.: GR202345001098).According to relevant regulations Liaowang Auto Lamp is
entitled to a reduced enterprise income tax rate of 15% for three years starting from 2023.
6. Chongqing Guinuo a wholly-owned subsidiary of Liaowang Auto Lamp enjoys the tax incentives
of reducing and exempting enterprise income tax for the development of western China since 1
January 2019 and is entitled to a reduced enterprise income tax rate of 15% after examination by and
filing with the tax authorities.
7. Liuzhou Lighting a wholly-owned subsidiary of Liaowang Auto Lamp passed the review of high-
tech enterprise in December 2022 and obtained the certificate of high-tech enterprise (Certificate No.:
GR202245001221). According to relevant regulations Liuzhou Lighting will pay enterprise income
tax at a reduced rate of 15% for three years starting from 2022.
8. In November 2024 Liuzhou Foreshine a wholly owned subsidiary of Liaowang Auto Lamp
passed the re-evaluation for high and new technology enterprise status and was awarded the High and
New Technology Enterprise Certificate (Certificate No.: GR202445000159). According to relevant
regulations Liuzhou Foreshine will pay enterprise income tax at a reduced rate of 15% for three years
starting from 2024.In addition according to the Notice of the Guangxi Zhuang Autonomous Region Department of
196Foshan Electrical
Finance and the Guangxi Zhuang Autonomous Region Tax Service of the State Taxation
Administration on Clarifying the Policy on the Partial Exemption of Local Share of Enterprise Income
Tax under Certain Circumstances (Gui Cai Shui [2023]) enterprises recognised as high and new
technology enterprises during the period from 2021 to 2025 shall be exempt for five consecutive
years starting from the first year of recognition from the portion of enterprise income tax that is
locally shared. According to the above provisions Liuzhou Foreshine is entitled to a 40% reduction
in its payable enterprise income tax.
9.In December 2022 Qingdao Lighting a wholly owned subsidiary of Liaowang Auto Lamp was
recognised as a high and new technology enterprise and was awarded the High and New Technology
Enterprise Certificate (Certificate No.: GR202237100785). According to relevant regulations
Qingdao Optoelectronics will pay enterprise income tax at a reduced rate of 15% for three years
starting from 2022.
10. In December 2023 NationStar Optoelectronics a subsidiary of the Company was re recognised
as a high and new technology enterprise and was awarded the High and New Technology Enterprise
Certificate (Certificate No.: GR202344017343).According to relevant regulations NationStar
Optoelectronics will pay enterprise income tax at a reduced rate of 15% for three years starting from
2023.
197Foshan Electrical
11. In November 2024 NationStar Semiconductor a wholly owned subsidiary of NationStar
Optoelectronics was re recognised as a high and new technology enterprise and was awarded the
High and New Technology Enterprise Certificate (Certificate No.: GR202444004544). According to
relevant regulations NationStar Semiconductor will pay enterprise income tax at a reduced rate of
15% for three years starting from 2024.
12. In December 2024 Fenghua Semiconductor a majority-owned subsidiary of NationStar
Optoelectronics was re recognised as a high and new technology enterprise and was awarded the
High and New Technology Enterprise Certificate (Certificate No.: GR202444013633). According to
relevant regulations Fenghua Semiconductor will pay enterprise income tax at a reduced rate of 15%
for three years starting from 2024.
13. In October 2024 Hainan Technology a subsidiary of the Company was recognised as a high and
new technology enterprise and was awarded the High and New Technology Enterprise Certificate
(Certificate No.: GR202446000187). According to the relevant regulations Hainan Technology is
entitled to a reduced enterprise income tax rate of 15% for three years starting from 2024.
14. In December 2023 Hule Electrical Equipment a majority-owned subsidiary of Hainan
Technology was recognised as a high and new technology enterprise and was awarded the High and
New Technology Enterprise Certificate (Certificate No.: GR202333010552). According to relevant
regulations the Company is entitled to a reduced enterprise income tax rate of 15% for three years
starting from 2023.
15. The subsidiary Haolaite Company’s controlling subsidiary NationStar Optoelectronics
(Germany) is registered in Germany. According to local tax policies it enjoys a corporate income
tax rate of 15%.
16. Subsidiaries Fozhao Huaguang and Hainan Technology indirectly hold Shanghai Lelaite which
is a small and micro enterprise From 1 January 2024 to 31 December 2024 the people’s governments
of provinces autonomous regions and municipalities directly under the Central Government shall
determine in accordance with the actual situation in the region and the needs of macroeconomic
regulation and control that resource tax urban maintenance and construction tax property tax urban
land use tax stamp duty (excluding stamp duty on securities transactions) arable land occupation tax
and education surcharge and local education surcharge may be reduced within a tax range of 50% for
small and micro enterprises.
3. Other
Pay in accordance with the relevant provisions of the tax law.VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Ending balance Beginning balance
Cash on hand 40535.66 42466.76
Bank deposits 1221721793.26 1942320219.96
Other monetary assets (note 1) 512794818.03 466064741.94
Money deposited in finance
1462165277.451179154268.07
company (note 2)
To-be-received interest (note 3) 12405012.91 8467957.82
Total 3209127437.31 3596049654.55
Of which: Total amount deposited
32471593.7431405378.56
overseas
198Foshan Electrical
Other notes
Note 1: Other monetary assets were security deposits for notes and performance bonds pre-sale house
payments as well as investments placed with security firm and the balance with e-commerce
platforms of which the security deposits for notesperformance bonds and pre-sale house payment
were restricted assets (see “31. Assets with Restricted Ownership or Right of Use” in Note “VII Notesto Consolidated Financial Statements”).Note 2: Money deposited in finance company was those deposited in Guangdong Rising Finance Co.Ltd.Note 3: To-be-received interest was interest receivable on undue bank deposits and term deposits as
of the end of the Reporting Period which is not recognized as cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
Item Ending balance Beginning balance
Financial assets at fair value
43649820.47152529775.41
through profit or loss
Including:
Wealth management products 41661005.56 151550477.63
Equity instrument investments 1988814.91 979297.78
Total 43649820.47 152529775.41
3. Derivative Financial Assets
None.
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
Item Ending balance Beginning balance
Bank acceptance bill 928954818.05 984928441.40
Commercial acceptance bill 68326252.16 72423826.20
Total 997281070.21 1057352267.60
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Accounts
receivable
with
individual
provision
for bad debts
Notes
receivable 99868 99728
withdrawn 140310 105883 14780 105735
4179.4100.00%0.14%1070.100.00%0.14%
bad debt 9.23 0304.87 37.27 2267.60
provision by 4 21
group
Including:
199Foshan Electrical
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Bank 92895 92895
984928984928
acceptance 4818.0 93.02% 0.00 0.00% 4818. 93.02% 0.00 0.00%
bill 441.40 441.40 5 05
Commercial 68326
6972914031073901814780724238
acceptance 6.98% 2.01% 252.1 6.98% 2.00%
bill 361.39 9.23 63.47 37.27 26.20 6
9986899728
14031010588314780105735
Total 4179.4 100.00% 0.14% 1070. 100.00% 0.14%
9.230304.8737.272267.60
421
Withdrawal of bad debt provision by group: RMB1403109.23
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Within 1 year 998684179.44 1403109.23 0.14%
Total 998684179.44 1403109.23
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.If adopting the general mode of expected credit loss to withdraw bad debt provision of notes
receivable:
□Applicable □Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning Ending
Category Reversed or
balance Withdrawal Verification Other balance
recovered
Trade
1478037.27-206549.91131621.871403109.23
acceptance
Total 1478037.27 -206549.91 131621.87 1403109.23
Note: Other mainly refers to the amount of provision for bad debts on accounts receivable added
during the current period as a result of the consolidation of Hule Electrical Equipment.Of which bad debt provision collected or reversed with significant amount:
□Applicable □Not applicable
(4) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
Bank acceptance bill 579430069.21
Total 579430069.21
200Foshan Electrical
(5) 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 Amount of not terminated
Item
at the period-end recognition at the period-end
Bank acceptance bill 77576500.22 371626812.99
Commercial acceptance bill 852200.00
Total 77576500.22 372479012.99
(6) Notes Receivable Written-off in Current Period
None.
5. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including one year) 1958007653.74 1944758964.52
One to two years 160745414.76 151569005.90
Two to three years 75845969.51 99249444.34
Over three years 116132806.59 40389042.02
Three to four years 74345304.65 9919239.39
Four to five years 8949462.00 7074054.82
Over five years 32838039.94 23395747.81
Total 2310731844.60 2235966456.78
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Accounts
receivable
14605
withdrawn 72871 731806 257803 21977 380244
2307.66.32%49.89%1.15%85.25%
bad debt 642.18 65.50 44.44 900.85 3.59
provision 8
separately
Accounts
receivable 21646 11219 12048
withdrawn 205248 221018 208969
79536.93.68%2910.45.18%98.85%9275.55.45%
bad debt 6626.46 6112.34 6836.81
provision by 92 6 3
group
Including:
(1) Business
portfolio of 14704 10958
97526137296169842158884
general 92300. 63.64% 6.63% 75.96% 3622.2 6.45%
lighting and 907.72 5393.16 8474.56 4852.29 88 7
auto lamps
(2) Business
portfolio of 69418
1466667952151175710905500851
LED 7236.0 30.04% 2.11% 22.89% 2.13%
packaging 002.74 233.30 637.78 653.26 984.52 4
and
201Foshan Electrical
components
231071850614246
212566223596209349
Total 31844. 100.00% 4552.6 8.01% 100.00% 7176.3 6.37%
7291.966456.789280.40
6048
Provision for bad debts by item: RMB72871642.18
There were no significant accounts receivable with bad debt provision separately accrued in the
current period.Provision for bad debts by combination: RMB112192910.46
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
(1) Business portfolio of
1470492300.8897526907.726.63%
general lighting and auto lamps
(2) Business portfolio of LED
694187236.0414666002.742.11%
packaging and components
Total 2164679536.92 112192910.46
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts
receivable:
□Applicable □Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Write-offs in
Beginning Ending
Category prior periods and Reversed or
balance Withdrawal Verification Other balance
reversals in recovered
current periods
Accounts
receivable
withdrawn 2197790 3237844 15457653. 3393837 728716
153035.99118454.23
bad debt 0.85 2.43 15 0.29 42.18
provision
separately
Accounts
receivable
-
withdrawn 1204892 1140763 112192
105660.201959834
bad debt 75.53 6.22 910.46
1.09
provision by
group
1424671437860715457653.1434002185064
Total 153035.99 224114.43
76.388.65159.20552.64
Note: Other mainly refers to the amount of provision for bad debts on accounts receivable added
during the current period as a result of the consolidation of Hule Electrical Equipment.
202Foshan Electrical
Of which bad debt provision collected or reversed with significant amount: None.
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Accounts receivable actually written off 224114.43
Of which verification of significant accounts receivable: None.Notes to verification of accounts receivable:
Current period write-off of accounts receivable amounting to RMB224114.43 and the provision for
bad debts of RMB224114.43 have been put under the approval procedures according to the
Company’s bad debt management policy.
(5) Top Five of the Ending Balance of the Accounts Receivable and the Contract Assets
Collected According to Arrears Party
Unit: RMB
Ending balance of
Proportion to bad debt
Ending balance of total ending provision of
Ending balance of
Name of the Ending balance of accounts balance of accounts
accounts
entity contract assets receivable and accounts receivable and
receivable
contract assets receivable and impairment
contract assets provision for
contract assets
No. 1 150246356.36 150246356.36 6.49% 4507390.69
No. 2 94272141.84 94272141.84 4.07% 2828164.26
No. 3 91661436.56 91661436.56 3.96% 4143338.85
No. 4 87592748.84 87592748.84 3.79% 2631871.40
No. 5 77605283.13 77605283.13 3.35% 2328158.49
Total 501377966.73 501377966.73 21.66% 16438923.69
6. Contract Assets
(1) List of Contract Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Bad debt Carrying Carrying Bad debt Carrying
amount provision value amount provision value
Contract
3380043.901690021.951690021.956074305.631822291.694252013.94
assets
Total 3380043.90 1690021.95 1690021.95 6074305.63 1822291.69 4252013.94
(2) Significant Changes in the Amount of Carrying Value and the Reason in the Reporting
Period
There was no significant change in carrying value in the Reporting Period.
(3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Category Ending balance Beginning balance
203Foshan Electrical
Carrying amount Bad debt provision Carrying amount Bad debt provision
Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Provision
for bad debts
based on
individual
items
Bad debt
provision
338001690016900260743018222425201
withdrawn 100.00% 50.00% 100.00% 30.00%
according to 43.90 21.95 1.95 5.63 91.69 3.94
groups
Including:
Business
portfolio of
338001690016900260743018222425201
general 100.00% 50.00% 100.00% 30.00%
lighting and 43.90 21.95 1.95 5.63 91.69 3.94
auto lamps
338001690016900260743018222425201
Total 100.00% 50.00% 100.00% 30.00%
43.9021.951.955.6391.693.94
Provision for bad debts by combination: RMB 1690021.95
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Business portfolio of general
3380043.901690021.9550.00%
lighting and auto lamps
Total 3380043.90 1690021.95
A description of the basis for determining the portfolio:
See Note V-16. Contract Assets.Withdrawal of bad debt provision by adopting the general mode of expected credit loss
□Applicable □Not applicable
(4) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Unit: RMB
Withdrawal of Reversal or Write-off/verified
Other
Item the current recovery in the for the current Reason
changes
period Reporting Period period
Provision for
impairment of contract -132269.74
assets
Total -132269.74 ——
Of which bad debt provision collected or reversed with significant amount: Naught.
(5) Contract Assets Written-off in Current Period
None.
7. Accounts Receivable Financing
(1) Accounts Receivable Financing Listed by Category
Unit: RMB
204Foshan Electrical
Item Ending balance Beginning balance
Bank acceptance bill 352694866.89 443201960.02
Total 352694866.89 443201960.02
(2) Disclosure by Withdrawal Methods for Bad Debts
None.The basis for the division of each stage and the withdrawal proportion of bad debt provision
See Note V-13. Accounts Receivable.Notes to significant changes in the carrying amount of accounts receivable financing with amount
changed of loss provision in the current period:Naught
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
None.
(4) Accounts Receivable Financing Pledged by the Company at the Period-end
Unit: RMB
Item Ending pledged amount
Bank acceptance bill 25328943.24
Total 25328943.24
(5) Accounts Receivable Financing 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 Amount of not terminated
Item
at the period-end recognition at the period-end
Bank acceptance bill 414969887.25
Total 414969887.25
(6) Accounts Receivable Financing with Actual Verification for the Current Period
None.
(7) The changes of accounts receivable financing in the Current Period and the fair value
changes
None.
(8) Other Notes
None.
8. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 70524265.25 49108300.85
Total 70524265.25 49108300.85
(1) Interest Receivable
None.
205Foshan Electrical
(2) Dividend Receivable
None.
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Other current accounts 77640342.04 65389794.88
Performance bonds 25244600.82 17686774.68
Export VAT rebates 5974168.41 4708061.84
Staff loans and petty cash 3138997.42 1589234.30
Rents and utilities 1314614.82 817043.94
Total 113312723.51 90190909.64
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including one year) 51110555.10 46054067.53
One to two years 22389136.32 7676026.75
Two to three years 6564915.91 2219050.74
Over three years 33248116.18 34241764.62
Three to four years 1383400.01 5990920.12
Four to five years 4236860.23 4583526.14
Over five years 27627855.94 23667318.36
Total 113312723.51 90190909.64
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable □ Not applicable
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Bad debt
30403040
provision 315412 31541
9096.26.84%9096.100.00%34.97%100.00%
separately 39.47 239.47
accrued 04 04
Bad debt
provision 8290 1237
70524258649695413491083
withdrawn 3627. 73.16% 9362. 14.93% 65.03% 16.27%
according to 65.25 70.17 69.32 00.85 47 22
groups
Including:
Other
receivables
with bad debt
82901237
provision 705242 586496 95413 491083
3627.73.16%9362.14.93%65.03%16.27%
based on a 65.25 70.17 69.32 00.85
combination 47 22
of credit risk
characteristics
1133100.00427870524290190941082491083
Total 37.76% 100.00% 45.55%
1272%8458.65.2509.64608.7900.85
206Foshan Electrical
3.5126
Provision for bad debts by item: RMB30409096.04
Unit: RMB
Beginning balance Ending balance
Name Carrying Bad debt Carrying Bad debt Withdrawal Reason for
amount provision amount provision proportion withdraw
It is not
expected
Customer A 20000000.00 20000000.00 20000000.00 20000000.00 100.00% that the
money will
be recovered
Total 20000000.00 20000000.00 20000000.00 20000000.00
Provision for bad debts by combination: RMB 12379362.22
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Other receivables with
bad debt provision based
82903627.4712379362.2214.93%
on a combination of credit
risk characteristics
Total 82903627.47 12379362.22
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Expected credit loss
Bad debt provision duration (credit duration (credit Total
in the next 12
impairment not impairment
months
occurred) occurred)
Balance of 1
1342723.927982242.9431757641.9341082608.79
January 2024
Balance of 1
January 2024 in the
current period
Withdrawal of the
-139062.572905532.502766469.93
current period
Reclassification in
the Reporting 1203749.11 1203749.11
Period
Verification of the
66067.21107736.93173804.14
current period
Other changes 319110.55 -2177.76 316932.79
Balance of 31
1522771.9010819530.4730446155.8942788458.26
December 2024
207Foshan Electrical
The basis for the division of each stage and the withdrawal proportion of bad debt provision
See Note V-13. Accounts Receivable.Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable □Not applicable
4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning Charged- Ending
Category Reversed or
balance Withdrawal off/Written- Other balance
recovered
off
Other 41082608.7 42788458.2
2766469.931203749.11173804.14316932.79
receivables 9 6
41082608.742788458.2
Total 2766469.93 1203749.11 173804.14 316932.79
96
Of which the bad debt provision recovered or transferred-back with significant amount during the
current period: None.
5) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
Item Written-off amount
Other receivables 173804.14
Of which the verification of significant other receivables: None.
6) Top Five of the Ending Balance of Other Receivables Collected according to the Arrears
Party
Unit: RMB
Proportion to
Ending balance
Name of the total ending
Nature Ending balance Aging of bad debt
entity balance of other
provision
receivables %
Other current More than 5
No. 1 20000000.00 17.65% 20000000.00
accounts years
Other current
No. 2 15883375.00 Within 2 year 14.02% 1588337.50
accounts
Other current
No. 3 14840849.57 Within 1 year 13.10% 445225.49
accounts
Performance
No. 4 10000000.00 Within 1 year 8.83% 300000.00
bond
Export VAT
No. 5 5974168.41 Within 1 year 5.27% 179225.05
rebates
Total 66698392.98 58.87% 22512788.04
208Foshan Electrical
7) Presentation in Other Receivables due to the Centralized Management of Funds
None.
9. Prepayment
(1) Prepayment Listed by Aging Analysis
Unit: RMB
Ending balance Beginning balance
Aging
Amount Proportion Amount Proportion
Within one year 18587036.85 76.11% 27750424.91 80.42%
One to two years 2101361.07 8.61% 3496897.72 10.13%
Two to three years 1640558.43 6.72% 665594.01 1.93%
Over three years 2090822.77 8.56% 2595722.28 7.52%
Total 24419779.12 34508638.92
Notes of the reasons of the prepayment aging over one year with significant amount but failed settled
in time: None.
(2) Top Five Prepayment in Ending Balance Collected according to the Prepayment Target
Unit: RMB
Relationship with Proportion to total
Name of the entity Ending balance Aging
the Company prepayments (%)
No. 1 Non-associated 4337460.00 Within one year 17.76%
No. 2 Non-associated 1769347.69 Within one year 7.25%
No. 3 Non-associated 934833.36 Within one year 3.83%
No. 4 Non-associated 760000.00 Within one to two years 3.11%
No. 5 Non-associated 674648.13 Within one year 2.76%
Total 8476289.18 34.71%
10. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
None
(1) Category of Inventory
Unit: RMB
Ending balance Beginning balance
Depreciation Depreciation
reserves of reserves of
Item Carrying inventories or Carrying Carrying inventories or Carrying
amount impairment value amount impairment value
provision for provision for
contract contract
209Foshan Electrical
performance costs performance costs
3149306292395305927108.292064
Raw materials 22535048.55 13862774.27
94.77646.2228334.01
2296652229665247880117.247880
Goods in process
13.27213.2738117.38
1249130112278105189188904940
Inventory goods 126346042.26 146951222.27
700.184657.929.47667.20
2911481263331425003429.415805
Goods in transit 27816444.67 9197980.38
76.11731.4461449.23
Semi-finished 1036387 101146 96957960.1 924778
2492313.514480118.25
goods 82.42 468.91 1 41.86
Low-value 1515044 151504 132218
1322185.78
consumables .74 4.74 5.78
146605914660516681045.6166810
Other
8.8898.88845.68
2204689202549214566373197117
Total 179189848.99 174492095.17
210.379361.386.311641.14
(2) Data Resources Recognized as Inventory
None.
(3) Falling Price Reserves of Inventory and Impairment Reserves for Contract Performance
Costs
Unit: RMB
Increased amount of the Decreased amount for the
Beginning current period current period
Item Ending balance
balance Transferred-back
Withdrawal Other Other
or charged-off
Raw materials 13862774.27 10675574.58 2003300.30 22535048.55
Inventory
146951222.2724377757.2344982937.24126346042.26
goods
Goods in transit 9197980.38 26413654.99 7795190.70 27816444.67
Semi-finished
4480118.251462730.203450534.942492313.51
goods
Total 174492095.17 62929717.00 58231963.18 179189848.99
Note: In the amount reversed or charged off in the current period the amount reversed was
RMB9538707.43 and the amount charged off was RMB48693255.75.Provision for decline in value of inventories by portfolio
None.Criteria for making provision for decline in value of inventories by portfolio
See Note V-17. Inventory.
(4) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense
None.
(5) Amortization Amount of Contract Performance Cost during the Reporting Period
None.
210Foshan Electrical
11. Held-for-sale Assets
Unit: RMB
Ending Ending Estimated
Impairment Estimated
Item carrying carrying Fair value disposal
provision disposal time
amount amount expense
Houses
buildings and 17147339.8 17147339.8 165208303. 55718333.9 31 December
land involved in 4 4 00 5 2025
expropriation
17147339.817147339.8165208303.55718333.9
Total
44005
Other notesFor details see “Part X- XVIII Other Other Significant Events Events-8. Others: Demolition Mattersof Nanjing Fozhao” of this Report. The estimated disposal costs include employee resettlement fees
compensation for the termination of the original tenant’s contract and taxes related to the proceeds
of demolition.
12. Current Portion of Non-current Assets
None.
13. Other Current Assets
Unit: RMB
Item Ending balance Beginning balance
Input tax of VAT to be certified and
125298564.4594451130.80
deducted
Large-value bank certificates of
130975312.95700000.00
deposit
Advance payment of enterprise
2524237.9111454058.94
income tax
Other 2486661.54 2687209.40
Total 261284776.85 109292399.14
14. Investments in Debt Obligations
None.
15. Other Investments in Debt Obligations
(1) List of Other Investments in Debt Obligations
Unit: RMB
Accumulated
Change in impairment
Accrue Interest fair value Ending Accumulate provision
Beginning
Item d adjustmen in the balanc Cost d fair value recognized in Notes
balance
interest t reporting e changes other
period comprehensiv
e income
Purchase 400
1281 4176 Large Bank
held-to- 454822 00
1563 3446 Certificates
maturity 905.25 00.93 9.18 of Deposit
investments 00.
211Foshan Electrical
Accumulated
Change in impairment
Accrue Interest fair value Ending Accumulate provision
Beginning
Item d adjustmen in the balanc Cost d fair value recognized in Notes
balance
interest t reporting e changes other
period comprehensiv
e income
in 2023 00
Purchase 707
held-to- 1538 7223 00 Large Bank
maturity 8394 8839 00 Certificates
investments .54 4.54 00. of Deposit
in 2024 00
11
114007
2819
454822022000
Total 9958
905.25863.700.47
20.0
0
Changes in provision for impairment on other debt investments in the current period
None.
(2) Significant Other Investments in Debt Obligations at the Period-end
Unit: RMB
Ending balance Beginning balance
Actual Actual
Item Par Coupon Maturity Overdue Coupon Maturity Overdue
interest Par value interest
value rate date principal rate date principal
rate rate
Large
bank
certificate
s of 1000 10000
6 January 6 January
deposit in 0000 3.30% 3.30% 0000.0 3.30% 3.30%
20262026
China 0.00 0
Everbright
Bank（Note）
Large
bank
certificate
50003131
s of 50000
0000. 2.90% 2.90% August 2.90% 2.90% August
deposit in 000.00
0020262026
Bank of
Communi
cations
Large
bank
certificate
10003150003
s of
0000 2.90% 2.90% Novemb 0000.0 2.90% 2.90% Novemb
deposit in
0.00 er 2026 0 er 2026
China
Everbright
Bank
Large 1500 2.95% 2.95% 1 15000 2.95% 2.95% 1
212Foshan Electrical
Ending balance Beginning balance
Actual Actual
Item Par Coupon Maturity Overdue Coupon Maturity Overdue
interest Par value interest
value rate date principal rate date principal
rate rate
bank 0000 Decembe 0000.0 Decembe
certificate 0.00 r 2026 0 r 2026
s of
deposit in
Bank of
Guangzho
u
Large
bank
certificate
212005
s of
0000 2.75% 2.75% February
deposit in
0.002027
Bank of
Guangzho
u
Large
bank
certificate
550005
s of
0000. 2.60% 2.60% February
deposit in
002027
China
Everbright
Bank
Large
deposit 1430 05
certificate 0000 2.60% 2.60% February
of Huaxia 0.00 2027
Bank
Large
deposit
820005
certificate
0000. 2.60% 2.60% February
of China
002027
Merchants
Bank
Large
deposit 1500
08 March
certificate 0000 2.60% 2.60%
2027
of Huaxia 0.00
Bank
Large
deposit
3500
certificate 29 March
0000.2.60%2.60%
of China 2027
00
Merchants
Bank
Large
deposit
3000
certificate 30 April
0000.2.60%2.60%
of China 2027
00
Merchants
Bank
110745000
Total
00000000.0
213Foshan Electrical
Ending balance Beginning balance
Actual Actual
Item Par Coupon Maturity Overdue Coupon Maturity Overdue
interest Par value interest
value rate date principal rate date principal
rate rate
00.000
Note:Large bank certificates of deposit in China Everbright Bank was frozen in 2024 due to litigation
cases and was unfrozen in March 2025.
(3) Status of Accrued Depreciation Reserves
None.The basis for the division of each stage and the withdrawal proportion of bad debt provision
See Note V-17. Other Investments in Debt Obligations.
(4) Status of Other Investments in Debt Obligations Written-off in Current Period
None.
16. Other Equity Instrument Investment
Unit: RMB
Accumulativ Reason for
Gains Losses
e gains Accumulative Dividend assigning to
recorded in recorded in
recorded in losses recorded income measure in fair
Beginnin other other
Ending other in other recognize value of which
Project name g comprehensiv comprehensiv
balance comprehensi comprehensive d in changes included
balance e income in e income in
ve income in income in the current other
the current the current
the current current period year comprehensive
period period
period income
36357 36837 Non-trading
Gotion High-tech 4797461.4 28056455 171337
9045.0 6506.5 equity
Co. Ltd. 8 9.89 9.10
2 0 instruments
32350 29080 Non-trading
Xiamen Bank 32694353. 17054441 263849
2024.6 7671.0 equity
Co.Ltd. 55 7.77 16.90
0 5 instruments
Guangdong Non-trading
3000030000496154.
Rising Finance equity
000.00000.0024
Co. Ltd. instruments
Beijing
Guangrong
Lianmeng Non-trading
6082570785509730.
Semiconductor equity
43.8068.8012
lighting Industry instruments
Investment
Center(L.P.)
Foshan Nanhai
District United
Guangdong New Non-trading
3000030000
Light Source equity
00.0000.00
Industry instruments
Innovation
Center
Non-trading
China Guangfa 50000 50000
equity
Bank Co.Ltd. 0.00 0.00
instruments
214Foshan Electrical
Accumulativ Reason for
Gains Losses
e gains Accumulative Dividend assigning to
recorded in recorded in
recorded in losses recorded income measure in fair
Beginnin other other
Ending other in other recognize value of which
Project name g comprehensiv comprehensiv
balance comprehensi comprehensive d in changes included
balance e income in e income in
ve income in income in the current other
the current the current
the current current period year comprehensive
period period
period income
7266669976
32694353.4797461.445110897291041
Total 3613.4 2746.3
5587.6680.36
25
Non-trading equity instrument investment in the Current Period disclosed by items
Unit: RMB
Reason for
Reason for
Amount of other assigning to
other
comprehensive measure in fair
Dividend comprehensive
Accumulative Accumulative income value of which
Project name income income
gains losses transferred to changes
recognized transferred to
retained included other
retained
earnings comprehensive
earnings
income
Not satisfied
with the
Gotion High-tech 1713379. 280564559.condition of N/A
Co. Ltd. 10 89
trading equity
instrument
Not satisfied
with the
Xiamen Bank 26384916 170544417.condition of N/A
Co. Ltd. .90 77
trading equity
instrument
Beijing
Guangrong Not satisfied
Lianmeng with the
Semiconductor 509730.12 1505569.32 condition of N/A
lighting Industry trading equity
Investment instrument
Center(L.P.)
Not satisfied
Guangdong with the
Rising Finance 496154.24 644988.33 condition of N/A
Co. Ltd. trading equity
instrument
29104180453259535.
Total.3631
Other notes
NationStar Optoelectronics is a limited partner of Beijing Guangrong Lianmeng Semiconductor
Lighting Industry Investment Center (Limited Partnership). As at 31 December 2024 NationStar
Optoelectronics has received a total distribution of principal and interest amounting to
RMB5423025.52 from Beijing Guangrong Lianmeng Semiconductor Lighting Industry Investment
Center (Limited Partnership). The accumulated principal repaid is RMB3917456.20. After partial
recovery of the investment NationStar Optoelectronics holds a 3.98% equity stake in the partnership.
215Foshan Electrical
17. Long-term Receivables
None.
18. Long-term Equity Investment
Unit: RMB
Increase/decrease for the current period
Gains and
Beginnin Beginning Cash Withdraw Ending Ending
losses Adjustment of
g balance balance of Additional Reduced Changes bonus or al of balance balance of
Investee recognize other
(carrying depreciatio investmen investmen of other profits impairme Other (Carryin depreciation
d under comprehensiv
value) n reserve t t equity announce nt g value) reserve
the equity e income
d to issue provision
method
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatronix 17918 1803
11120
(Nanho) 8555.1 0059
Electronics 39.74 5 4.89
Ltd.
179181803
11120
Subtotal 8555.1 0059
39.74
54.89
179181803
11120
Total 8555.1 0059
39.74
54.89
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable □Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □Not applicable
The reason for the discrepancy between the foregoing information and the information used in the
impairment tests in prior years or external information
None.The reason for the discrepancy between the information used in the Company’s impairment tests in
prior years and the actual situation of those years
None.
19. Other Non-current Financial Assets
None.
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
□Applicable □ Not applicable
Unit: RMB
Houses and Construction in
Item Land use right Total
buildings progress
I. Original carrying value
1. Beginning balance 204959267.68 204959267.68
216Foshan Electrical
Houses and Construction in
Item Land use right Total
buildings progress
2. Increased amount of the
652565293.0461486213.33714051506.37
period
(1) Outsourcing 13697930.10 13697930.10
(2) Transfer from
inventories/fixed 638867362.94 61486213.33 700353576.27
assets/construction in progress
(3) Increase for business
combination
3. Decreased amount of the
34629898.7934629898.79
period
(1) Disposal
(2) Other transfer 34629898.79 34629898.79
4. Ending balance 822894661.93 61486213.33 884380875.26
II. Accumulative depreciation
and accumulative amortization
1. Beginning balance 41322920.27 41322920.27
2. Increased amount of the
44391379.3812976146.1457367525.52
period
(1) Withdrawal or amortization 14437016.76 14437016.76
(2) Transfer from
inventories/fixed 29954362.62 12976146.14 42930508.76
assets/construction in progress
3. Decreased amount of the
7796616.557796616.55
period
(1) Disposal
(2) Other transfer 7796616.55 7796616.55
4. Ending balance 77917683.10 12976146.14 90893829.24
III. Depreciation reserves
1. Beginning balance
2. Increased amount of the
period
(1) Withdrawal
3. Decreased amount of the
period
(1) Disposal
(2) Other transfer
4. Ending balance
IV. Carrying value
1. Ending carrying value 744976978.83 48510067.19 793487046.02
2. Beginning carrying value 163636347.41 163636347.41
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable □Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □Not applicable
The reason for the discrepancy between the foregoing information and the information used in the
impairment tests in prior years or external information
None.The reason for the discrepancy between the information used in the Company’s impairment tests in
217Foshan Electrical
prior years and the actual situation of those years
None.
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable □Not applicable
(3) Projects Converted to Investment Properties and Measured at Fair Value
None.
(4) Investment Property Failed to Accomplish Certification of Property
As at 31 December 2024 the property certificates for the LED workshop Smart LED workshop
buildings 1-3 Fuwan standard workshop J3 (leased portion) Gaoming office building (leased
portion) Kelian Building (leased portion) Hainan Fuli parking spaces and the leased portion of the
Hainan production base are still being processed. The Company believes that there are no substantial
legal obstacles to the processing of these property certificates and it will not have a significant
adverse impact on the Company’s normal operations.
21. Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Fixed assets 3646134662.80 3451760127.91
Disposal of fixed assets 459543.24 1454458.56
Total 3646594206.04 3453214586.47
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic Other
Item Total
buildings equipment equipment equipment (Note:1)
I. Original carrying
value
1. Beginning 21598786 51304924 72880741. 9176571 74935316
38514056.09
balance 50.29 86.84 85 2.00 47.07
2. Increased
6509797022674745112147665.9189630.946483212
amount of the 6691694.62.968.996557.79
period
3088712.579551393.9537591.32291750.99328202.
(1) Purchase 4858753.88
54009710
(2) Transfer from
564845506166486001592908.76897879.740264709
construction in 442413.77.280.75760.17
progress
(3) Increase for
43969202.20545317.66823768.
business 1330526.97 978721.88
298599
combination
39076281.40066532.
(4) Others (note 2) 891806.99 60000.00 38443.70
8453
3. Decreased
36409196941008800.2178815.21584656.412676525
amount of the 3812283.95.1189463.82
period
(1) Disposal or 144286588 39581097. 2178707.2 811111.2 190666861
3809357.50
scrap .82 08 3 7 .90
(2) Equipment 957524.27 957524.27
218Foshan Electrical
Houses and Machinery Transportation Electronic Other
Item Total
buildings equipment equipment equipment (Note:1)
transformation
219805380773545.3221052139
(3) Others (Note 2) 470179.54 2926.45 108.01.296.65
244676635356958282849592.993706880273383
4. Ending balance 41393466.76
84.1404.94265.9434.04
II. Accumulative
depreciation
1. Beginning 772209491 31072672 51404295. 7413643 40339668
28949352.01
balance .83 27.12 01 6.53 02.50
2. Increased
1237622854099595910011118.6591771.554417335
amount of the 4092568.23.291.822862.24
period
102715498396266269221027.46591771.517756408
(1) Withdrawal 2961841.26.579.52662.43
(2) Increase in
13250170.12326375.27451331.
business 1130726.97 744058.62
177551
combinations
7796616.51366946.59209595.3
(3) Others (Note 2) 46032.20
550
3. Decreased
17351519035214099.2070659.51137075.215562736
amount of the 3625710.98.1666799.36
period
(1) Disposal or 142181631 34829620. 2070552.6 770605.8 183458646
3606236.15
scrap .01 46 5 8 .15
(2) Equipment
359294.77359294.77
transformation
31333559.366470.131744795.
(3) Others (Note 2) 25184.43 19474.83 106.92
15144
7224565863482012759344753.795911343728214
4. Ending balance 29416209.26.9619.28722.1601.38
III. Depreciation
reserves
1. Beginning 7800885.0 7804716.6
3037.99793.59
balance 8 6
2. Increased
4002059.74176798.2
amount of the 86602.74 85190.97 2944.79
77
period
4000514.24175252.7
(1) Withdrawal 86602.74 85190.97 2944.79
66
(2) Others 1545.51 1545.51
3. Decreased
3427074.33599245.0
amount of the 86602.74 84774.44 793.59
07
period
(1) Disposal or 3393126.4 3563751.7
86602.7484022.52
scrap 5 1
(2) Equipment
33947.8533947.85
transformation
Others 751.92 793.59 1545.51
8375870.58382269.8
4. Ending balance 3454.52 2944.79
56
IV. Carrying value
1. Ending carrying 17243097 18665696 23501384. 1977660 36461346
11977257.50
value 97.18 15.11 02 8.99 62.80
2. Beginning 13876691 20154243 9564704.08 21473408. 1762848 34517601
219Foshan Electrical
Houses and Machinery Transportation Electronic Other
Item Total
buildings equipment equipment equipment (Note:1)
carrying value 58.46 74.64 85 1.88 27.91
Note 1: Fixed assets-Other refers to the cooling system and sewage treatment station of NationStar
Optoelectronics and tools of Liaowang Auto Lamp etc.Note 2: Other increases or decreases in gross amount and accumulated depreciation are due to the
addition of building accessories and classification of houses and buildings leased out to investment
properties during the current period.
(2) List of Temporarily Idle Fixed Assets
None.
(3) Fixed Assets Leased out by Operation Lease
None.
(4) Fixed Assets Failed to Accomplish Certification of Property
The Company’s Fuwan Standard Workshop J3 (self-use part) Fuwan Standard Workshop K1 Fuwan
Energy Saving Lamp Workshop 2 Glass Workshop 8 Glass Workshop 9 Fluorescent Lamp
Workshop Standard Workshop A Hainan Production Base (self-use part) Kelian Building (self-use
part) Gaoming Office Building (self-use part) Gaoming New Canteen Fuwan Employee Village
Family Dormitory Buildings 2-6 Family Dormitory Building 8 Fuwan Industrial Park Employee
Village Dormitory Buildings 01-04 Fuwan Employee Village Dormitory Buildings A 2 3 5 6 7
10 to 13 and Employee Apartment Buildings 1-4 have been completed and put into use and
transferred to fixed assets. As of 31 December 2024 the relevant property certificates are currently
being processed. The Company believes that there are no substantial legal obstacles to the processing
of such property rights certificates and it will not have a significant adverse impact on the normal
operation of the Company.
(5) Impairment Test of Fixed Assets
□Applicable □ Not applicable
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable □ Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □ Not applicable
In 2024 the company set aside a total of RMB4175252.76 for impairment of fixed assets.Specifically impairment tests were conducted on fixed assets that were severely worn due to
prolonged use or became obsolete due to product upgrades. Relevant assets were impaired and their
recoverable amount was estimated based on the fair value and disposal costs determined by reference
to the recent disposal and recovery rate of similar assets. The Company accrued an impairment
provision of RMB4175252.76 based on the higher between the net amount of fair value less disposal
costs and the present value of expected future cash flows for the relevant asset groups.The reason for the discrepancy between the foregoing information and the information used in the
impairment tests in prior years or external information
None.
220Foshan Electrical
The reason for the discrepancy between the information used in the Company’s impairment tests in
prior years and the actual situation of those years
None.
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
Item Ending balance Beginning balance
Equipment 459543.24 1454458.56
Total 459543.24 1454458.56
22. Construction in progress
Unit: RMB
Item Ending balance Beginning balance
Construction in progress 263601705.89 1174533505.11
Total 263601705.89 1174533505.11
(1) List of Construction in Progress
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
amount provision value amount provision value
Construction 265196525. 263601705. 117606106 117453350
1594819.141527554.99
in progress 03 89 0.10 5.11
265196525.263601705.117606106117453350
Total 1594819.14 1527554.99
03890.105.11
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
Proportion Of which: Capitaliza
of Accumulati amount of tion rate
Increased Other
Transferre accumulativ ve amount capitalize of Funding
Budge Beginning amount of decrease Ending Job
Project name d in fixed e investment of interest d interests interests resource
t balance the current d balance schedule
assets in capitalizatio for the for the s
period amount
construction n Reporting Reporting
s to budget Period Period
171 Self-
The Project of 2038 financin
4544679559801103614926628645610.683247.5
the Geely 1131 37.43% 37.43% 3.37% g and
Industrial Park 670 507.68 06.22 369.59 31.86 1 1 2.45 Borrowi
0.00 ng
726 Self-
2917 financin
Kelian 738 265818 259393 100.00 3664095
5810 93.71% g and
Building 900. 751.84 52.21 % 3.02
4.05 Borrowi
00 ng
212 Self-
Gaoming financin
135164777938630174163100.00
office building 89.49% g and
300. 145.48 9.24 454.72 % Borrowi
00 ng
310 Self-
FSL Hainan 1291
400 165138 888831 448478 100.00 financin
Industrial Park 7889 100.99%
I 000. 431.72 8.40 54.41 %
g and
5.71
00 Borrowi
221Foshan Electrical
Proportion Of which: Capitaliza
of Accumulati amount of tion rate
Increased Other
Transferre accumulativ ve amount capitalize of Funding
Budge Beginning amount of decrease Ending Job
Project name d in fixed e investment of interest d interests interests resource
t balance the current d balance schedule
assets in capitalizatio for the for the s
period amount
construction n Reporting Reporting
s to budget Period Period
ng
296
42152038
382106368142224580503372865683247.5
Total 9983 1131 3.37%
0909836.72986.07678.723.63
1.622.451
0.00
Note: 1. The decrease in other amounts in this period is mainly due to the conversion of completed
projects into investment properties.
2. The Company has pre-invested self-aised funds into the first phase of the FSL’s Hainan Industrial
Park Phase I Project and exchanged them with the raised funds in accordance with relevant
regulations.
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Unit: RMB
Item Amount withdrawn Reason for withdrawal
Xinxiang Office The project has been suspended and is currently idle with no
67264.15
Building plans for continued construct at this time.Total 67264.15 --
(4) Impairment Test of Construction in Progress
□Applicable □Not applicable
(5) Engineering Materials
None.
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable □Not applicable
(2) Impairment Test of Productive Living Assets Adopting Cost Measurement Mode
□Applicable □Not applicable
(3) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable □Not applicable
24. Oil and Gas Assets
□Applicable □Not applicable
25. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
222Foshan Electrical
Houses and Machinery
Item Other Total
buildings equipment
I. Original carrying
value
1. Beginning
16811584.0916811584.09
balance
2. Increased amount
26292087.191096398.9675471.7027463957.85
of the period
(1) Leased in 26292087.19 1096398.96 75471.70 27463957.85
3. Decreased
amount of the 11564500.18 11564500.18
period
(1) Disposal 11564500.18 11564500.18
4. Ending balance 31539171.10 1096398.96 75471.70 32711041.76
II. Accumulative
depreciation
1. Beginning
7999263.457999263.45
balance
2. Increased amount
8641729.62383976.6444025.179069731.43
of the period
(1) Withdrawal 8641729.62 383976.64 44025.17 9069731.43
3. Decreased
amount of the 6700952.46 6700952.46
period
(1) Disposal 6700952.46 6700952.46
4. Ending balance 9940040.61 383976.64 44025.17 10368042.42
III. Depreciation
reserves
1. Beginning
balance
2. Increased amount
of the period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending balance
IV. Carrying value
1. Ending carrying
21599130.49712422.3231446.5322342999.34
value
2. Beginning
8812320.648812320.64
carrying value
(2) Impairment Test of Right-of-use Assets
□Applicable □Not applicable
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Land use Patent use Non-patent Trademark Other(N
Item Software Total
right right technology right ote)
I. Original
carrying value
223Foshan Electrical
Land use Patent use Non-patent Trademark Other(N
Item Software Total
right right technology right ote)
1. Beginning 4911703 2422797 748659 5902642
balance 15.79 7.69 34.65 28.13
2. Increased
9723009.138715474556227020000.3470006154017
amount of the
047.173.13000.009.34
period
7204537206084.
(1) Purchase 1547.17
6.9512
(2) Internal R&D
(3) Increase for
9723009.1387000251086.27020000.3470005433409
business
040.0018000.005.22
combination
3. Decreased
13107021310702
amount of the
64.2064.20
period
(1) Disposal
13107021310702
(2) Others
64.2064.20
4. Ending 3698230 3809952 823215 27020000. 347000 5207341
balance 60.63 4.86 57.78 00 0.00 43.27
II. Accumulated
amortization
1. Beginning 1096270 2418515 219021 1557143
balance 32.21 1.93 30.00 14.14
2. Increased
1030394833504.51164411125833.3144583.2405206
amount of the
6.63794.785352.68
period
9344615.833504.51162721125833.3144583.2307576
(1) Withdrawal
59728.575355.43
(2) Increase in
959331.016966.2976297.2
business
415
combinations
3. Decreased
47619584761958
amount of the
2.542.54
period
(1) Disposal
47619584761958
(2) Others
2.542.54
4. Ending 7231139 2501865 335463 1125833.3 144583. 1321467
balance 6.30 6.50 24.78 5 35 94.28
III. Depreciation
reserves
1. Beginning
balance
2. Increased
amount of the
period
(1) Withdrawal
3. Decreased
amount of the
period
(1) Disposal
4. Ending
balance
IV. Carrying
224Foshan Electrical
Land use Patent use Non-patent Trademark Other(N
Item Software Total
right right technology right ote)
value
1. Ending 2975116 1308086 487752 25894166. 332541 3885873
carrying value 64.33 8.36 33.00 65 6.65 48.99
2. Beginning 3815432 529638 4345499
42825.76
carrying value 83.58 04.65 13.99
Note: List of Intangible Assets—Others are the software copyrights added by merging with Hule
Electrical Equipment in the current period.The proportion of intangible assets formed from the internal R&D of the Company at the period-end
to the ending balance of intangible assets was 0.00%.
(2) Data Resources Recognized as Intangible Assets
□Applicable □Not applicable
(3) Land Use Right with Certificate of Title Uncompleted
None.
(4) Impairment Test of Intangible Assets
□Applicable □Not applicable
27. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
Increase Decrease
Name of the invested
Beginning Formed by Ending
units or events
balance business Disposal balance
generating goodwill
combination
Nanning Liaowang 1621146 16211469.8
Auto Lamp Co. Ltd. 9.82 2
Foshan NationStar
4056201405620123.
Optoelectronics Co.
23.6464
Ltd.
4218315421831593.
Total
93.4646
Note: As for the M&A of NationStar Optoelectronics in 2014 by Guangdong Electronics Information
Industry Group Ltd. the wholly-owned subsidiary of Guangdong Rising Holdings Group Co. Ltd.the difference between the fair value and the net assets attributable to the shareholders of the listed
company on the date of acquisition of NationStar Optoelectronics formed goodwill of
RMB405620123.64.
(2) Goodwill Impairment Provisions
Unit: RMB
Name of the Increase Decrease
invested units or Beginning Ending
events generating balance Withdrawal Disposal balance
goodwill
Foshan 142393052. 142393052.
225Foshan Electrical
NationStar 68 68
Optoelectronics
Co. Ltd.
142393052.142393052.
Total
6868
(3) Information on the Assets Groups or Combination of Assets Groups which Goodwill
Belongs to:
Composition and basis of
Whether it is
the asset group or Operating segments
Name consistent with the
combination of asset and basis
previous year
groups
General lighting
Nanning Liaowang
Operating non-current and vehicle lamp Yes
Auto Lamp Co. Ltd.assets and goodwill are products
based on the minimum
asset portfolio capable of LED packaging and
Foshan NationStar
generating independent component
Optoelectronics Co. Yes
cash flows. products and other
Ltd.products
(4) Specific Method of Determining the Recoverable Amount
The recoverable amount is determined as the net fair value less disposal costs
□Applicable □ Not applicable
Unit: RMB
Determin
ation of
Basis for
Carrying Recoverabl Impairment fair value Key
Item determining
amount e Amount Amount and parameters
key parameters
disposal
costs
The
average
trading
price of
Foshan stocks in
NationStar
70698905 56459600 14239305 Market the 30
Optoelectro
5.16 2.48 2.68 method trading
Note1
nics Co. days prior
Ltd. to the
benchmark
date
excluding
abnormal
226Foshan Electrical
trading
days.
706989055645960014239305
Total
5.162.482.68
Note 1: The recoverable amount of NationStar Optoelectronics Asset Group is determined based on
the higher of the net amount of the fair value of the assets minus disposal expenses and the present
value of the expected future cash flows of the assets. NationStar Optoelectronics is a small and
medium-sized board listed company on the Shenzhen Stock Exchange. NationStar Optoelectronics
calculates its fair value based on the average stock transaction price of the 30 trading days before
excluding abnormal trading days on the benchmark date. The disposal expenses are determined by
transaction costs and related taxes related to asset disposal.The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □ Not applicable
Unit: RMB
Basis for
Key Key determini
Years of
Recovera parameter parameter ng key
Carrying Impairme the
Item ble s of the s of the parameter
amount nt amount forecast
Amount forecast stable s for the
period
period period stable
period
Based on
the
principle
of
prudence
Revenue the
growth Revenue income
Nanning rate of growth assumptio
Liaowang 3.00% - rate of 0% n of the
54179045478688
Auto 5 years 7.00% and stable
65.1134.00
Lamp and discount period
Co. Ltd. discount rate of remains
rate of 11.28% stable
11.28% compared
with the
last year
of the
forecast
period.Total 5417904 5478688
227Foshan Electrical
65.1134.00
The reason for the discrepancy between the foregoing information and the information used in the
impairment tests in prior years or external information
None.The reason for the discrepancy between the information used in the Company’s impairment tests in
prior years and the actual situation of those years
None.
(5) Completion of Commitments to Results and Corresponding Goodwill Impairment
When goodwill is formed there is a commitment to the results and the reporting period or the period
preceding the reporting period is within the commitment period
□Applicable □Not applicable
28. Long-term Prepaid Expense
Unit: RMB
Beginning Increased amount of Amortization amount Other decreased Ending
Item
balance the current period of the current period amount balance
13032959180708
Mould 131980958.97 63494375.43 18107709.95
0.74464.33
Expense on
49146320.647839
maintenance 37830003.34 22192422.66
0400.72
and decoration
313010.
Boarding box 667938.96 39889.35 394818.31
00
10218849.721912
Other 3711413.31 6711142.05
510.77
19036269253024
Total 173562264.97 92792758.45 18107709.95
9.25495.82
Other notes：
Mold reduction is the disposal of molds.
29. 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
Deductible Deductible
Item Deferred income Deferred income
temporary temporary
tax assets tax assets
difference difference
Provision for asset
437165619.6566540210.84390622029.7159298411.33
impairment
Unrealized profit of
67232648.5710084897.2837737392.895660608.94
internal transactions
Deductible loss 205026280.47 33375483.69 124708331.49 22015171.66
Depreciation of 45661228.34 6849184.25 54793929.61 8219089.44
228Foshan Electrical
fixed assets
Provisions 27430683.82 4114602.59 14277087.30 2141563.09
Fair value changes
of trading financial 636322.31 95448.35 751107.32 112666.10
assets
Estimated cost 59384034.04 8907605.11 46135701.47 6920355.22
Lease liabilities and
34868832.745980792.8012750617.721915901.17
others
Total 877405649.94 135948224.91 681776197.51 106283766.95
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
Ending balance Beginning balance
Item Taxable temporary Deferred income Taxable temporary Deferred income
difference tax liabilities difference tax liabilities
Assets assessment
appreciation from
business
151028108.5122654216.2683667098.6012550064.79
consolidation not
under the same
control
Fair value changes
of other investments
445258977.6566788846.65417362085.5962604312.84
in equity
instruments
Fair value changes
of trading financial 736537.65 110480.65 1559845.00 233976.75
assets
One-off
depreciation of 615396814.10 92309522.12 649066960.98 97598859.53
fixed assets
Right-of-use assets
22342999.384058203.6112108349.601819532.34
and others
Total 1234763437.29 185921269.29 1163764339.77 174806746.25
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
Mutual set-off Mutual set-off Amount of deferred
Amount of deferred
amount of deferred amount of deferred income tax assets or
income tax assets or
Item income tax assets income tax assets liabilities after off-
liabilities after off-
and liabilities at the and liabilities at the set at the period-
set at the period-end
period-end period-begin begin
Deferred income tax
135948224.91106283766.95
assets
Deferred income tax
185921269.29174806746.25
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
None.
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following
Years
None.
229Foshan Electrical
30. Other Non-current Assets
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
amount provision value amount provision value
Contract
389288.9520492.17368796.78
assets
Advance
payments
for
equipment
advance 59359531.60 59359531.60 40991898.73 40991898.73
payments
for
constructio
n
Advance
payment
for long- 36085714.00 36085714.00 36085714.00 36085714.00
term assets
acquisition
Long-term
103788056.4103788056.4
assets to be 41955426.17 41955426.17
44
disposed of
Prepayment
10000000.010000000.0
s for equity 10000000.00 10000000.00
00
acquisition
Other 1163686.77 1163686.77 294664.28 294664.28
210786277.710020492.1200765785.5129327703.110000000.0119327703.1
Total
679808
Note: The long-term assets expected to be disposed of mainly include the land use rights of the plot
at No. 64 Fenjiang North Road which is to be transferred and disposed of as well as the disposal
costs of the plot.
31. Assets with Restricted Ownership or Right of Use
Unit: RMB
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of
amount value restriction restriction amount value restriction restriction
Note Note
deposits deposits
bond bond
Monetary 512340 5123404 Restricted 486328 486328 Restricted
deposits pre- deposits
assets 403.99 03.99 use 752.85 752.85 use
sale of pre-sale of
properties properties
etc. etc.Pledged Pledge of Pledged Pledge of
endorsed or note pool endorsed or note pool
Notes 951909 9519090 873275 873275
discounted notes discounted notes
receivable 082.20 82.20 556.80 556.80
but not receivable but not receivable
matured endorsed or matured endorsed or
230Foshan Electrical
Period-end Period-beginning
Item Carrying Carrying Type of Status of Carrying Carrying Type of Status of
amount value restriction restriction amount value restriction restriction
discounted discounted
but not but not
matured matured
Related
Related party
348161 2119771 326522 219746 party
Fixed assets Mortgaged mortgage Mortgaged
016.79 00.96 715.93 331.38 mortgage
guarantees
guarantees
Related
Related party
Intangible 155514 1034168 155514 106527 party
Mortgaged mortgage Mortgaged
assets 08.00 6.87 08.00 15.04 mortgage
guarantees
guarantees
Investments Frozen large-
in other debt 103309 1033090 denomination
Frozen
obligations( 041.10 41.10 certificates of
Note) deposit
Accounts Pledge of
253289 2532894 Pledge of 120221 120221 Pledged
receivable Pledged note pool
43.24 3.24 note pool 199.92 199.92
financing
Other non-
current 2931.37 2931.37 Frozen Frozen funds
assets
1956601815209182189171022
Total
2826.69189.739633.504555.99
Note: The large-denomination certificate of deposit of China Everbright Bank in other debt
investments which was frozen in 2024 due to a litigation case was unfrozen in March 2025.
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Pledged borrowings 39850000.00
Mortgage loans 28000000.00 83330000.00
Credit loans 234995981.93 70000000.00
Acceptance bill discount 4282836.39 66689877.73
Interest from short-term borrowings 12329.17 0.00
Total 307141147.49 220019877.73
Notes of the category for short-term loans:
Notes receivable discounted but not yet due at the end of the period are all bank acceptances with
recourse rights and do not meet the conditions for derecognition. Therefore they are recognised as
short-term borrowings.
(2) List of the Short-term Borrowings Overdue but not Returned
None.
33. Trading Financial Liabilities
Unit: RMB
Item Ending balance Beginning balance
231Foshan Electrical
Held-for-trading financial liabilities 275250.00
Including:
Other 275250.00
Total 275250.00
34. Derivative Financial Liabilities
None.
35. Notes Payable
Unit: RMB
Category Ending balance Beginning balance
Bank acceptance bill 1930784817.62 2256122566.65
letter of credit 15052221.04
Total 1930784817.62 2271174787.69
The total amount of notes payable that are due but unpaid amounted to RMB0.00 at the end of the
current period.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Ending balance Beginning balance
Accounts payable 2781965096.70 2875980206.64
Total 2781965096.70 2875980206.64
(2) Significant Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
It has not reached the settlement
No. 1 84923739.08
period
It has not reached the settlement
No. 2 58539706.36
period
Total 143463445.44
37. Other Payables
Unit: RMB
Item Ending balance Beginning balance
Other payables 495717050.97 362491923.01
Total 495717050.97 362491923.01
(1) Interest Payable
None.
(2) Dividends Payable
None.
232Foshan Electrical
(3) Other Payables
1) Other receivables by nature
Unit: RMB
Item Ending balance Beginning balance
Account current 208777778.90 122073392.43
Relevant expense of sales 87551768.43 88852388.08
Performance bond 96583554.73 76508284.65
Payments for demolition 34898417.30 36592784.44
Payment for equity transfer 16366572.00 5000000.00
Other 51538959.61 33465073.41
Total 495717050.97 362491923.01
2) Significant Other Accounts Payable Aging over One Year or Overdue
Unit: RMB
Item Ending balance Unpaid/Un-carry-over reason
It has not reached the settlement
Unit A 91046577.48
period
Total 91046577.48
38. Advances from Customer
(1) List of Advances from Customers
Unit: RMB
Item Ending balance Beginning balance
Advances from customers 163623.85 466872.69
Land reserve payment 13367850.30
Total 13531474.15 466872.69
(2) Significant Advances from Customers Aging over One Year or Overdue
None.
39. Contract Liabilities
Unit: RMB
Item Ending balance Beginning balance
Advances on sales 119506301.48 235335693.28
Total 119506301.48 235335693.28
40. Employee Benefits Payable
(1) List of Employee Benefits Payable
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
I. Short-term salary 192578525.70 1357077402.48 1348763708.25 200892219.93
II.Post-employment
benefit-defined 1252286.96 127920376.26 127551750.45 1620912.77
contribution plans
III.Termination
17373511.055235555.2912137955.76
benefits
233Foshan Electrical
Total 193830812.66 1502371289.79 1481551013.99 214651088.46
(2) List of Short-term Salary
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Salary bonus
189203378.171188641431.671180534703.70197310106.14
allowance subsidy
2. Employee
39743.1062615306.6862615988.1339061.65
welfare
3. Social insurance 513915.45 51885336.28 51736989.92 662261.81
Of which: Medical
432930.3147095538.6346962266.32566202.62
insurance premiums
Work-related injury
80985.144789797.654774723.6096059.19
insurance
4. Housing fund 498319.50 41648992.83 41637431.16 509881.17
5. Labor union
budget and
2323169.4812286335.0212238595.342370909.16
employee education
budget
Total 192578525.70 1357077402.48 1348763708.25 200892219.93
(3) List of Defined Contribution Plans
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
1. Basic pension
941107.39117505270.78117280661.271165716.90
benefits
2. Unemployment
29771.684732899.014725033.9137636.78
insurance
3. Annuity 281407.89 5682206.47 5546055.27 417559.09
Total 1252286.96 127920376.26 127551750.45 1620912.77
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.
41. Taxes Payable
Unit: RMB
Item Ending balance Beginning balance
Enterprise income tax 70202563.56 17336516.13
VAT 20024672.48 15318825.56
Personal income tax 10342055.07 3796001.53
Property tax 1757727.88 1606639.28
Urban maintenance and
1631337.721260207.36
construction tax
Education surcharge 1622938.34 1905489.83
Local education surcharge 695000.38 986924.96
Land use tax 458383.14 436657.21
Stamp tax 313705.15 247268.25
234Foshan Electrical
Other 36776.67 45627.19
Total 107085160.39 42940157.30
42. Liabilities Held for sale
None.
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Current portion of long-term
112386714.93339846622.13
borrowings
Current portion of lease liabilities 8188073.88 4067592.32
Total 120574788.81 343914214.45
44. Other Current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Reversed notes that are endorsed
368196176.6071846109.20
and undue
Endorsed but not yet terminated
1050000.00
recognition
Pending changerover output VAT
7910035.8023162317.81
and others
Total 377156212.40 95008427.01
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
Item Ending balance Beginning balance
Mortgage loans 39680861.51 27754169.97
Credit loans 295287783.96 565185873.45
Less: Current portion of long-term
112386714.93339846622.13
borrowings
Total 222581930.54 253093421.29
46. Bonds Payable
None.
47. Lease Liabilities
Unit: RMB
Item Ending balance Beginning balance
Lease liabilities 25185296.61 9690845.42
Less: Unrecognized financing
1973229.621312285.18
expenses
Less: current portion of lease
8188073.884067592.32
liabilities
Total 15023993.11 4310967.92
Other notes:
235Foshan Electrical
Analysis of the maturity of lease liabilities
Unit: RMB
Item Ending balance Beginning balance
1 to 2 years 7538905.81 1637899.09
3 to 5 years 4826977.55 2673068.83
More than 5 years 2658109.75
Total 15023993.11 4310967.92
48. Long-term Payables
None.
49. Long-term Employee Benefits Payable
None.
50. Provisions
Unit: RMB
Item Ending balance Beginning balance Reason for formation
Pending litigation 2110312.84 Contract dispute
Withdrawal of product
Product quality assurance 25320370.98 14277087.30 quality assurance
expenses
Total 27430683.82 14277087.30
51. Deferred Income
Unit: RMB
Beginning Reason for
Item Increase Decrease Ending balance
balance formation
Government Government
75185461.2735090983.0336537264.3673739179.94
grants Grant
Total 75185461.27 35090983.03 36537264.36 73739179.94 --
Other notes:
Amount
recorded Amount
Amount
into non- offset
Amount recorded into Related to
Beginning operating cost in Other Ending
Item of newly other income in assets/related
balance income in the changes balance
subsidy the Reporting to income
the Reportin
Period
Reporting g Period
Period
6599119826924956818374
Government grants related to assets 24732407.74.127.007.38
The Projects of the Production Expansion
and Technological Transformation of 14068497 1000394 Related to
4064551.68
Components of Small-spacing and Outdoor .44 5.76 assets
LED Displays
The Project of the Innovation in Packaging
Technology and Technological
4832954. 6000000 9322107 Related to
Transformation of Key Packaging 1510846.32
10 .00 .78 assets
Equipment of LED packaging with Small
Spacing for Display
Government Subsidy for Annual Fixed 4137000. 4763500 8677987 Related to
222512.50
Asset Investment in Advanced 00 .00 .50 assets
236Foshan Electrical
Amount
recorded Amount
Amount
into non- offset
Amount recorded into Related to
Beginning operating cost in Other Ending
Item of newly other income in assets/related
balance income in the changes balance
subsidy the Reporting to income
the Reportin
Period
Reporting g Period
Period
Manufacturing and Oil & Gas Extraction
Projects
The Project of the Innovation in Packaging
Technology and Technological
7623293. 6052565 Related to
Transformation of Key Packaging 1570727.40
17 .77 assets
Equipment of LED packaging with High
Color Rendering Index for Illumination
The second batch of ultra-long-term special 5250000 5162500 Related to
87500.00
government bond project subsidies for 2024. .00 .00 assets
2023 Automotive Lamp Production
765000.00 1610000 2129000 Related to
Digitalization Workshop Technology 246000.00.00 .00 assets
Improvement Project
Technology renovation project for the
2069917 2001695 Related to
production line of micro and flip-chip LED 68221.24.00 .76 assets
chips.Research on the Third-generation
2000000 1871395 Related to
Semiconductor Power Device and Module 128604.63.00 .37 assets
Packaging Technology
The First Batch of 2022 Special Funds for
Industrial Technological Transformation by 2047999. 1792000 Related to
255999.99
the Finance Bureau of Liang Jiang New 99 .00 assets
Area
The Project of Resource Conservation and 2440481. 1425234 Related to
1015246.80
Environmental Protection 00 .20 assets
The Second Batch of Support Funds for the“Technological Transformation of 1566666. 1366666 Related to
200000.04Thousands of Enterprises” in the Guangxi 58 .54 assets
Zhuang Autonomous Region for 2021
The 2019 Second Batch of Special Funds of
1500000. 1200000 Related to
RMB3 Million for the Industrial and 300000.00
00 .00 assets
Information Development of the City
Special Project on Deep-sea Technology
Industry Promotion (Industry Development
Category) of Hainan Deep-Sea Technology 1200000 1200000 Related to
Innovation Center - Project on Building and .00 .00 assets
Commercial Operation of Deep-sea
Lighting Product Production Line
The First Batch of Special Funds for the
Industrial and Information Development for
1366666. 966666.9 Related to
the Guangxi Zhuang Autonomous Region 399999.96
93 7 assets
for 2017 (Technological Transformation)
for Liuzhou Guige
The Project of the First Batch of Support
1200000. 900000.0 Related to
Funds for Enterprises in Liuzhou City for 300000.00
00 0 assets
2017 for Liuzhou Guige
LED Technology for Efficient Cultivation in
607172.60 459540.0 743871.4 Related to
Modern Agriculture and Its Demonstrative 322841.18
0 2 assets
Application
Research and Development and
Industrialization Project of Potassium 857384.58 743787.0 Related to
113597.52
Nitride-based Rf Devices in the Field of 6 assets
Next Generation Mobile Communication
Intelligent Technology Reform Project of
620755.00 620755.0 Related to
LED Packaging Workshop in Geely
0 assets
Industrial Park (Phase I)
237Foshan Electrical
Amount
recorded Amount
Amount
into non- offset
Amount recorded into Related to
Beginning operating cost in Other Ending
Item of newly other income in assets/related
balance income in the changes balance
subsidy the Reporting to income
the Reportin
Period
Reporting g Period
Period
The 2019 14th Batch of Industrial Support 750000.00 600000.0 Related to
150000.00
Funds of RMB1.5 Million 0 assets
The First Batch of 2022 Special Funds for 560000.01 490000.0 Related to
70000.01
Micro Small and Medium Enterprises 0 assets
The Innovation Fund for Enterprises in
600000.00 450000.0 Related to
Liudong New Area for 2017 for Liuzhou 150000.00
0 assets
Guige
The Project of the Third Batch of Special
Funds of Innovation-driven Development 520000.00 424000.0 Related to
96000.00
for the Guangxi Zhuang Autonomous 0 assets
Region for 2018 for Liuzhou Guige
The Fund for the Intelligent Transformation
487333.22 419333.1 Related to
and Upgrading Projects of Automobile 68000.04
8 assets
Enterprises for 2021
The Fund for the Project of the Management
448000.12 384000.1 Related to
Committee of the Liuzhou High-tech 63999.96
6 assets
Industrial Development Zone
The Key Labs of Semiconductor Micro
434562.60 359125.2 Related to
Display Enterprises in Guangdong Province 75437.40
0 assets
(for 2020)
The Project of Research and Development
and Industrialization of NB-IoT-based
361725.80 323894.0 Related to
Multi-Mode Low-Power Wide-Area 37831.80
0 assets
Internet of Things Node Chips and
Packaging Technology
The Project of Key Technologies and
380250.00 319260.0 Related to
Industrialization of Silica-based Gallium 60990.00
0 assets
Nitride Power Components
The Project of Support Funds for Enterprises 516666.57 316666.5 Related to
200000.04
in Liuzhou City for 2020 for Liuzhou Guige 3 assets
17298788 3572000 7917289 Related to
Other 12953499.23.41 .00 .18 assets
9194263.81660265555432
Government grants related to income 11804856.62
15.03.56
Research Project on Key Technologies of
the Third Generation of High Efficiency and 1705474. 1639002 Related to
66471.72
Frequency Semiconductor Electronic Power 54 .82 income
Module
Research on Key Technologies of 4K/8K
4962516. 1344000 Related to
Full-colour Micro-LED Displays with Ultra- 3618516.28
28 .00 income
High Definition (UHD)
The Research on Full-colour and Integrated
1770402. 674326.0 990013.5 Related to
Packaging of Micro-LED Display with High 1454714.74
30 3 9 income
Brightness and Contrast
1200000 840000.0 Related to
MDL Project 360000.00.00 0 income
The Guangdong-Hong Kong-Macao Joint
350000.00 322118.5 Related to
Lab of Intelligent Micro-nano Photoelectric 27881.49
1 income
Technology
405870.03 6291700 420297.6 Related to
Other 6277272.39.00 4 income
7518546135090987373917
Total 36537264.36.273.039.94
238Foshan Electrical
52. Other Non-current Liabilities
Unit: RMB
Item Ending balance Beginning balance
Tax to be charged off 174986.26 205769.48
Other 2931.37
Total 177917.63 205769.48
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Beginning New
Bonus Bonus issue Ending balance
balance shares Other Subtotal
shares from profit
issued
The sum
1548778230.001548778230.00
of shares
Other notes:
Beginning balance Ending balance
Category/investor Increased Decreased
Amount invested Percentage Amount invested Percentage
Restricted shares 197537241.00 12.75% 90349.00 140332133.00 57295457.00 3.70%
Unrestricted shares 1351240989.00 87.25% 140241784.00 1491482773.00 96.30%
Total 1548778230.00 100.00% 140332133.00 140332133.00 1548778230.00 100.00%
54. Other Equity Instruments
None.
55. Capital Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Capital premium
907090354.12907090354.12
(premium on stock)
Other capital
7245971.547245971.54
reserves
Total 914336325.66 914336325.66
56. Treasury Shares
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Treasury shares (A-
82165144.1582165144.15
share)
Total 82165144.15 82165144.15
Note: The inventory shares (A shares) were cancelled on 10 January 2025. The total share capital of
the Company changed from 1548778230 shares to 1535778230 shares. For details please refer
to 4. Notes to Other Events after Balance Sheet Date of Section 17 Events after the Balance sheet
Date.
57. Other Comprehensive Income
Unit: RMB
239Foshan Electrical
Reporting Period
Less: Recorded Less: Recorded
in other in other
comprehensive comprehensive Attributable to
Attributable to
Beginning Income before income in prior income in prior owners of the
Item Less: Income non-controlling Ending balance
balance taxation in the period and period and Company as
tax expense interests after
Current Period transferred to transferred to the parent after
tax
profit or loss in retained tax
the Current earnings in the
Period Current Period
I. Other
comprehensive 35973
income that may 2789689 4184533 2371235 3834426
not subsequently 0272.7 2.07 .81 8.26 31.00
be reclassified to 4
profit or loss
Fair value changes 35973
of other 2789689 4184533 2371235 3834426
investments in 0272.7 2.07 .81 8.26 31.00
equity instruments 4
II. Other
comprehensive - - -
income that may 29675 -
subsequently be 577314.6 310230.8 267083.84.85 13475.98
reclassified to 7 3 4
profit or loss
Differences
arising from
translation of - - -29675 -
foreign currency- 577314.6 310230.8 267083.8
denominated 4.85 13475.98 7 3 4
financial
statements
Total of other 36002 -2731957 4184533 2340212 3834291
comprehensive 7027.5 267083.8
income 7.40 .81 7.43 55.02 9 4
58. Specific Reserve
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Safety production
1213325.9218945510.3215376775.044782061.20
costs
Total 1213325.92 18945510.32 15376775.04 4782061.20
Other notes including changes and reason of change:
The increase in the current year represents the safety production expenses accrued in accordance with
the proportion stipulated in the Notice on Issuing the Management Measures for the Provision and
Use of Enterprise Production Safety Costs (CZ [2022] No. 136) and the decrease in the current year
represents the actual safety production expenses incurred.
59. Surplus Reserves
Unit: RMB
Item Beginning balance Increase Decrease Ending balance
Statutory surplus
66264408.1042152843.91108417252.01
reserves
Discretionary
41680270.9641680270.96
surplus reserves
Total 107944679.06 42152843.91 150097522.97
Notes including changes and reasons thereof:
240Foshan Electrical
The increase for the current period is the provision for surplus reserve amounting to
RMB42152843.91.
60. Retained Earnings
Unit: RMB
Item Reporting Period Same period of last year
Beginning balance of retained
3435308364.113296490575.52
earnings before adjustments
Beginning balance of total retained
earnings of adjustments (“+” for -54747.02increase “-“ for decrease)Beginning balance of retained
3435308364.113296435828.50
earnings after adjustments
Add: Net profit attributable to
owners of the Company as the 446184021.97 290357652.22
parent
Less: Withdrawal of statutory
42152843.9116585651.91
surplus reserves
Dividend of ordinary shares
184293387.60134899464.70
payable
Ending retained earnings 3655046154.57 3435308364.11
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) The undistributed profit at the beginning of the period is adjusted by RMB0.00 due to 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 Operating revenue Cost
Main operations 8802435475.94 7190495792.98 8783592484.22 7164937425.96
Other operations 245802171.20 177055108.51 273699519.68 205805258.67
Total 9048237647.14 7367550901.49 9057292003.90 7370742684.63
Whether the lower of the net profit before and after deduction of non-recurring gains and losses
through audit is negative
□Yes □No
Breakdown information of operating income and operating cost:
Unit: RMB
241Foshan Electrical
Total
Category of contracts
Operating revenue Operating cost
Business Type 9048237647.14 7367550901.49
Including:
General lighting products 3226311712.83 2395182567.26
LED packaging and component products 2467584592.15 2056558519.16
Vehicle lamp products 2107363678.88 1749368441.56
Trade and other products 1246977663.28 1166441373.51
Classification by operating region
Including:
Domestic 7069352913.60 5688104522.61
Overseas 1978884733.54 1679446378.88
Total 9048237647.14 7367550901.49
Information in relation to the transaction price apportioned to the residual contract performance
obligation:
At the end of this reporting period the amount of revenue corresponding to the performance
obligations already contracted but not yet fulfilled or not yet fully fulfilled is RMB 269855637.67.
62. Taxes and Surtaxes
Unit: RMB
Item Reporting Period Same period of last year
Property tax 28676638.78 22491644.46
Urban maintenance and
21327278.3920485713.05
construction tax
Education surcharge 9143375.97 10734704.27
Stamp duty 8344850.82 7026462.85
Local education surcharge 6096584.00 3973983.11
Land use tax 6023030.05 6043496.59
Environmental protection tax 93630.35 66202.00
Vehicle and vessel use tax 38409.21 44856.33
VAT of land 1237746.77
Other 18849.95 163610.44
Total 79762647.52 72268419.87
63. Administrative Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 275293420.32 269186658.26
Depreciation charge 83279370.36 57457595.30
Office expenses 40006914.71 26186734.81
Intermediary agency fee 11805486.89 8161257.09
Engineering decoration cost 10009360.18 10100054.08
Amortization of intangible assets 8648358.17 8230781.28
Utilities 8612131.67 8078631.82
Rent and management charge 7859197.84 1505144.05
Labor cost 5995845.07 3353120.74
Security fund for the disabled 2841940.52 2712902.14
Other 30405321.65 35571492.39
Total 484757347.38 430544371.96
242Foshan Electrical
64. Selling Expense
Unit: RMB
Item Reporting Period Same period of last year
Employee benefits 151647016.46 135070057.05
Business propagandize fees and
103972069.8788766075.69
advertizing fees
Business travel charges 17187185.83 15200339.00
Office expenses 15730733.51 18179213.99
Sales promotion fees 11347352.24 16271950.39
Commercial insurance premium 6518012.66 6996600.98
Other 42953830.16 34626934.83
Total 349356200.73 315111171.93
65. Development Costs
Unit: RMB
Item Reporting Period Same period of last year
Personnel labour costs 264483169.80 231096377.82
Direct input costs 202803354.52 166919907.20
Depreciation and long-term prepaid
41317402.2541981744.02
expense
Commissioned external research
8124543.459684695.96
and development costs
Design fee 939546.93 971319.82
Amortization expense of intangible
50558.92254711.01
assets
Others 30951790.20 32670337.98
Total 548670366.07 483579093.81
Other notes:
In respect of R&D expense incurred by the Company expense other than that on bench-scale and
pilot-scale production is included in R&D expense; and sales revenue of products from bench-scale
and pilot-scale production is included in core business revenue and the relevant costs are included in
cost of sales of core business.
66. Finance Costs
Unit: RMB
Item Reporting Period Same period of last year
Interest costs 21576958.65 24128844.17
Less: Interest income 51401372.58 47710201.22
Foreign exchange gains or losses -28129824.29 -11208631.12
Handling charge and others 2454991.02 2291238.65
Total -55499247.20 -32498749.52
243Foshan Electrical
67. Other Income
Unit: RMB
Sources Reporting Period Same period of last year
The Deductible Input Tax for
Advanced Manufacturing 54157807.49 34934153.62
Enterprises
The Subsidy for Metal-organic
Chemical Vapor Deposition 7084696.84 15005565.15
(MOCVD)
The Tax Incentives for the Poor 6655996.87 4766450.00
The Projects of the Production
Expansion and Technological
Transformation of Components of 5590398.00 5113075.04
Small-spacing and Outdoor LED
Displays
The Research on the Key
Technology of 4K/8K Full-colour
3618516.282344940.27
Micro-LED Displays with Ultra-
High Definition (UHD)
VAT refunded as soon as it is levied 3548006.01
The Research and Application of
Epitaxial Wafers Chips and
Packaging of Near Ultraviolet 3331914.60 31914.60
Silica-based AlGaN Vertical LEDs
with High Power
Manufacturing Operation
Management MOM Prototype
Software Research Project for 2813200.00
NationStar Manufacturing
Scenarios
CAE software Research Project for
Multi-physics Field Coupling
2011000.00
Simulation of NationStar LED
Products
The Project of the Innovation in
Packaging Technology and
Technological Transformation of
1570727.401799394.64
Key Packaging Equipment of LED
packaging with High Color
Rendering Index for Illumination
The Research on Full-colour and
Integrated Packaging of Micro-
1454714.74994276.21
LED Display with High Brightness
and Contrast
The subsidy for stabilizing
1423855.771059015.09
employment
Social insurance subsidies 1185266.41
The Project of Resource
Conservation and Environmental 1015246.80 1809367.44
Protection
The award and subsidy for“Specialized Refined Distinctive
1000000.00
and Innovative ‘Little Giant’Enterprises.”
Enterprise R&D Reward and 684357.00 696100.00
244Foshan Electrical
Sources Reporting Period Same period of last year
Subsidy
Support Fund for the Digital
Intelligent Transformation of the 592548.00 1524300.00
Manufacturing Industry
The Research on the Key
Technology and Innovative
563843.4035843.40
Application of Deep Ultraviolet
Solid-state Light Sources
The Project of Support Funds for
556000.08556000.08
Enterprises in Liuzhou City
Return of handling charges for
531972.25856016.80
withholding and remittance
Chancheng District Government
500000.00
Quality Award
Reward Funds for Smart Factory
Demonstration Enterprises and 500000.00
Digital Workshops
Talent “flyover” (or talent
500000.00
relocation)
Standardized Strategy Municipal
493500.00
Subsidy Funds
Epitaxial Growth and Chip
Fabrication Techniques for High- 400000.00
Performance Deep Ultraviolet LED
Quality Management Maturity
400000.00
Level 5A Enterprise Bonus
The First Batch of Special Funds for
the Industrial and Information
Development for the Guangxi
399999.96399999.96
Zhuang Autonomous Region for
2017 (Technological
Transformation) for Liuzhou Guige
Job expansion grants 383000.00 94500.00
Incentive for standard products of
360000.00400000.00
Foshan City
MDL Project 360000.00
LED Technology for Efficient
Cultivation in Modern Agriculture 322841.18
and Its Demonstrative Application
The 2019 Second Batch of Special
Funds for the Industrial and
300000.00300000.00
Information Development of the
City
Incentive Subsidy for Digital and
Intelligent Demonstration 2000000.00
Workshop of Foshan City in 2022
The 24th China Patent Award 1000000.00
Industrial Logistics Subsidy Award
808200.00
Funds for the Q2 2022The 2021 “100 Enterprises Strive
500000.00for the First Place” bonus
The Visible Light Communication
and Positioning System for the 473516.21
Industrial Internet of Things (IIOT)
The Construction Project for the 300000.00
245Foshan Electrical
Sources Reporting Period Same period of last year
Center for Cultivating and
Arranging High-Value Patents of
NationStar
Other 7125575.04 12402018.11
Total 111434984.12 90204646.62
68. Net Gain on Exposure Hedges
None.
69. Gain on Fair Value Changes
Unit: RMB
Sources of fair value changes gains Reporting Period Same period of last year
Held-for-trading financial assets -438454.94 1129444.26
Held-for-trading financial liabilities -275250.00
Total -713704.94 1129444.26
70. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment
1112039.741833621.59
income accounted by equity method
Investment income from disposal of
-46590.76
long-term equity investment
Investment income from disposal of
4098921.53-11739672.84
trading financial assets
Dividend income from holding of
29104180.3617173298.27
other equity instrument investment
Interest income from holding of
other investments in debt 29195152.92 5611238.58
obligations
Earnings of debt restructuring -368531.60
Income received from financial
2708815.731767053.51
products and structural deposits
Total 65850578.68 14598948.35
71. Credit Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
Bad debt loss on notes receivable 206549.91 -757766.65
Bad debt loss on accounts
-28328425.50-49088791.49
receivable
Bad debt loss on other receivables -1562720.82 -2284496.07
Total -29684596.41 -52131054.21
72. Asset Impairment Loss
Unit: RMB
Item Reporting Period Same period of last year
I. Loss on inventory valuation and
-53391009.57-75435041.50
contract performance cost
IV. Loss on impairment of fixed -4175252.76 -3090860.92
246Foshan Electrical
assets
VI. Loss on impairment of
-67264.15
construction in progress
X. Goodwill Impairment Losses -142393052.68
XI. Loss on impairment of contract
132269.74-1214861.13
assets
XII. Others -8035253.26 -1527893.81
Total -207929562.68 -81268657.36
73. Assets Disposal Income
Unit: RMB
Sources Reporting Period Same period of last year
Gains or losses arising from the
disposal of non-current assets not 374492447.01 12719324.89
classified as held for sale
Total 374492447.01 12719324.89
Note: It mainly refers to the income from land acquisition storage and disposal. For details please
refer to 8. Others of Section 18 Other Important Matters.
74. Non-operating Income
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring
gains and losses
Government grants 11000.00
Negative goodwill arising
from a business
2131597.432131597.43
combination under
common control.Income from default
1407591.86216259.821407591.86
money
Gains from the write-off
353339.66443941.78353339.66
of non-current assets.Of which: income from
353339.66443941.78353339.66
scrap of fixed assets
Confiscated income 88495.91 38764.54 88495.91
Other 14455147.92 8830700.25 14455147.92
Total 18436172.78 9540666.39 18436172.78
75. Non-operating Expense
Unit: RMB
Amount recorded in the
Item Reporting Period Same period of last year current non-recurring
gains and losses
The disposal of non-
569149.931877262.19569149.93
current assets
Among them: Loss on
569149.931877262.19569149.93
Disposal of Fixed Assets
Penalty and delaying
1119970.98174342.121119970.98
payment
Other 2887616.92 4487159.39 2887616.92
Total 4576737.83 6538763.70 4576737.83
247Foshan Electrical
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item Reporting Period Same period of last year
Current income tax expense 109234078.37 42271159.52
Deferred income tax expense -31770178.24 -21144195.04
Total 77463900.13 21126964.48
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
Item Reporting Period
Profit before taxation 600949011.88
Current income tax expense accounted at
90142351.78
statutory/applicable tax rate
Influence of applying different tax rates by subsidiaries 1360731.89
Influence of income tax before adjustment 2457830.46
Influence of non-taxable income -5336428.60
Influence of non-deductable costs expenses and losses 3224992.77
The effect of using deductible losses of deferred
income tax assets that have not been recognized in the -6096944.83
previous period
Influence of unrecognized deductible temporary
31212676.44
differences and deductible losses
Impact of additional deduction of R&D expenses -41229394.88
Regarded as sales 367538.81
Other impacts 1360546.29
Income tax expense 77463900.13
77. Other Comprehensive Income
Refer to Note VII Notes to Main Items of Consolidated Financial Statements-57 for details.
78. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash generated from other operating activities
Unit: RMB
Item Reporting Period Same period of last year
Received deposits 53286881.53 70968759.75
Deposit interest 46785606.92 42458410.80
Income from subsidy 46067747.23 31099876.60
Income from waste 25670669.63 26066867.58
Rental income from property and
4592235.967000259.85
equipment utility
Income from insurance
565849.48174793.99
compensation
Other 43969141.26 41452845.20
Total 220938132.01 219221813.77
Notes:
None.
248Foshan Electrical
Cash used in other operating activities
Unit: RMB
Item Reporting Period Same period of last year
Administrative expense paid in cash 134685611.81 128058647.93
Selling expense paid in cash 97075000.74 74111308.85
Finance costs paid in cash 2507911.36 2295193.65
Returned cash deposit 43057569.73 27751789.33
Other 141706744.76 100146605.69
Total 419032838.40 332363545.45
Notes:
None.
(2) Cash Related to Investing Activities
Cash generated from other investing activities
Unit: RMB
Item Reporting Period Same period of last year
Forward Settlement Margin 80711.83
Total 80711.83
Significant cash received related to investing activities
Unit: RMB
Item Reporting Period Same period of last year
Land revitalization project 381779100.00
Total 381779100.00
Notes:
None.Cash used in other investing activities
Unit: RMB
Item Reporting Period Same period of last year
Payments related to foreign
33612950.00
exchange settlements
Total 33612950.00
Significant cash paid related to investing activities
None.Notes:
None.
(3) Cash Related to Financing Activities
Cash generated from other financing activities
Unit: RMB
Item Reporting Period Same period of last year
249Foshan Electrical
Cash deposit collected 6317233.78 15469794.51
Total 6317233.78 15469794.51
Notes:
None.Cash used in other financing activities
Unit: RMB
Item Reporting Period Same period of last year
Cash paid for acquisition of
Fenghua Semiconductor under the 129409650.00
same control
Cash paid as security deposit for
3114400.413648429.05
bank acceptance bills
Other 4014648.18 4985695.37
Total 7129048.59 138043774.42
Notes:
None.Changes in liabilities arising from financing activities
□Applicable □ Not applicable
Unit: RMB
250Foshan Electrical
Balance at Increase in the current period Decrease in the current period
the
Ending
Item beginning
Non-cash Non-cash balance
of the Cash changes Cash changes
changes changes
period
Short-term 2200198 323750000. 16223744.7 152832597. 100019877. 307141147.borrowings 77.73 00 5 26 73 49
Long-term 2530934 115031737. 341618095. 375072393. 112088930. 222581930.borrowings 21.29 86 45 09 97 54
Other payables-
5000000
payment for 5000000.00.00
equity transfer
Current portion
3439142120574788.343914214.120574788.
of non-current
14.45814581
liabilities
431096725466149.515023993.1
Lease liabilities 7153845.96 2 7599278.37.921
8263384438781737.503882778.535058836.563622301.670321859.
Total 53 31
81.39865295
(4) Description of Cash Flows Presented on a Net Basis
None.
(5) Significant Activities and Financial Impact that Do Not Involve Current Cash Receipts and
Disbursements but Affect the Company’s Financial Position or May Affect the Company’s
Cash Flows in the Future
In 2024 the Company and its subsidiaries received RMB4036473900 in various types of
acceptance bills issued and endorsed by customers and RMB2660812000 in various types of
acceptance bills endorsed and transferred to suppliers. In addition the Company and its subsidiaries
received a total of RMB316935200 in payments for goods through bill discounting.
251Foshan Electrical
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information 2024 2023
1. Reconciliation of net profit to net
cash flows generated from
operating activities:
Net profit 523485111.75 384672601.98
Add: Provision for asset
237614159.09133399711.57
impairment
Depreciation of fixed assets oil-gas
532193425.19523465306.34
assets and productive living assets
Depreciation of right-of-use assets 9069731.43 7408897.98
Amortization of intangible assets 22274527.25 13901913.93
Amortization of long-term prepaid
92792758.4573777294.51
expenses
Loss from disposal of fixed assets
intangible assets and other long- -374492447.01 -12719324.89
term assets (gains: negative)
Losses from scrapping of fixed
215810.271433320.41
assets (gains: negative)
Losses from fair value changes
713704.94-1129444.26
(gains: negative)
Finance costs (gains: negative) 3107305.71 12920213.05
Investment loss (gains: negative) -65850578.68 -14598948.35
Decrease in deferred income tax
-26846373.34-16039761.54
assets (increase: negative)
Increase in deferred income tax
-4925674.34-5104433.51
liabilities (“-” for decrease)
Decrease in inventory (“-” for
-81113668.04-14969280.77
increase)
Decrease in operating receivables
-235225023.13-294512387.33
(“-” for increase)
Increase in operating payables (“-”
-41073056.86380117504.23
for decrease)
Other 6175623.20 2366795.63
Net cash flows from operating
598115335.881174389978.98
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 2684382020.41 3101252943.88
Less: Beginning balance of cash 3101252943.88 1945971307.26
Add: Ending balance of cash
equivalents
252Foshan Electrical
Supplemental information 2024 2023
Less: Beginning balance of cash
equivalents
Net increase in cash and cash
-416870923.471155281636.62
equivalents
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Cash or cash equivalents paid in the current period for
the business combination occurring in the previous 102299151.00
period
Including:
Zhejiang Hule Electrical Equipment Manufacturing
102299151.00
Co. Ltd.Less: Cash and cash equivalents held by subsidiary at
1296925.32
the acquisition date
Including:
Zhejiang Hule Electrical Equipment Manufacturing
1296925.32
Co. Ltd.Net cash paid for acquisition of subsidiaries 101002225.68
(3) Net Cash Received from Disposal of the Subsidiaries
None.
(4) Cash and Cash Equivalents
Unit: RMB
Item Ending balance Beginning balance
I. Cash 2684382020.41 3101252943.88
Including: Cash on hand 40535.66 42466.76
Bank deposit on demand 2680618712.62 3097947293.67
Other monetary assets on demand 3722772.13 3263183.45
III. Ending balance of cash and cash
2684382020.413101252943.88
equivalents
(5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on
Their Usage
None.
(6) Monetary Assets Not Classified as Cash and Cash Equivalents
Unit: RMB
Reason for not
Item 2023 2022 classifying the item as
cash and cash equivalents
Note deposits bond
deposits pre-sale of 512340403.99 486328752.85 Specific purpose
properties etc.Interest receivable
accrued on bank deposits
Interest not received 12405012.91 8467957.82
and time deposits not yet
matured as at the end of
253Foshan Electrical
the Reporting Period
Total 524745416.90 494796710.67
(7) Notes on Other Significant Activities
None.
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the
amount adjusted:
None.
81. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Ending foreign currency Ending balance converted
Item Exchange rate
balance to RMB
Monetary assets 151520262.50
Of which: USD 16943207.85 7.1884 121794555.31
EUR 462996.15 7.5257 3484370.13
HKD 51813.01 0.92604 47980.92
IDR 57821978240.68 0.000453 26193356.14
Accounts receivable 322336908.64
Of which: USD 44515281.29 7.1884 319993648.03
EUR 216221.04 7.5257 1627214.68
HKD 174266.39 0.92604 161377.65
IDR 1224433294.72 0.000453 554668.28
Long-term borrowings
Of which: USD
EUR
HKD
Accounts payable 6047424.95
Of which: USD 700100.26 7.1884 5032600.71
Euro 130463.43 7.5257 981828.64
IDR 72837970.00 0.000453 32995.60
Other current assets 160855.05
Of which: IDR 355088415.76 0.000453 160855.05
(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
82. Lease
(1) The Company Was Lessee
□Applicable □ Not applicable
Unit: RMB
Item Amount
Simplified short-term lease charges recognized in the cost of the related assets or in current 3216256.31
254Foshan Electrical
profit or loss
Expenses on low-value leases included in the cost of related assets or current profit or loss
27199.87
using a simplified accounting treatment
Total cash outflows related to leases 7928840.44
Variable lease payments that are not covered in the measurement of the lease liabilities
□Applicable □Not applicable
Simplified short-term lease or lease expense for low-value assets
□Applicable □Not applicable
Circumstances involving sale and leaseback transactions
None.
(2) The Company Was Lessor
Operating leases with the Company as lessor
□Applicable □ Not applicable
Unit: RMB
Of which: income related to
Item Rental income variable lease payments not
included in lease receipts
Housing rental and others 10869099.09 0.00
Total 10869099.09 0.00
Finance leases with the Company as lessor
□Applicable □Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable □Not applicable
Reconciliation of undiscounted lease receipts to net investment in leases
None.
(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a
Manufacturer or Distributor
□Applicable □Not applicable
83. Data Resources
None.
84. Other
None.VIII. Research and Development Expenditure
Unit: RMB
Item Amount for the current period Amount for the previous period
Personnel labour costs 264483169.80 231096377.82
255Foshan Electrical
Direct input costs 202803354.52 166919907.20
Depreciation and long-term prepaid
41317402.2541981744.02
expense
Commissioned external research
8124543.459684695.96
and development costs
Design fee 939546.93 971319.82
Amortization expense of intangible
50558.92254711.01
assets
Others 30951790.20 32670337.98
Total 548670366.07 483579093.81
Of which: Expensed research and
548670366.07483579093.81
development expenditure
Other notes
In respect of R&D expense incurred by the Company expense other than that on bench-scale and
pilot-scale production is included in R&D expense; and sales revenue of products from bench-scale
and pilot-scale production is included in core business revenue and the relevant costs are included in
cost of sales of core business.IX. Changes to the Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Current Period
Unit: RMB
Cash
Net
Income of flows of
profits of
Recogniti acquiree the
acquiree
Time of Cost of Proporti on basis from the acquiree
Way to gain Acquisitio from the
Acquirees gaining gaining on of of purchase from the
equity n date purchase
equity the equity equity purchase date to purchase
date to
date period- date to the
period-
end end of the
end
period
Re-
electing
directors
Zhejiang
completin
Hule Cash
g property
Electrical acquisition
01 transfer
Equipmen 113665 66.00 of the 01 August 626124 269335 996320
August procedure
t 723.00 % original 2024 99.51 0.74 1.55
2024 s etc. and
Manufact shareholders
actually
uring Co. ’ equity
controllin
Ltd.g the
acquired
company
(2) Combination Cost and Goodwill
Unit: RMB
Zhejiang Hule Electrical Equipment Manufacturing
Combination cost
Co. Ltd.-Cash 113665723.00
Total combination costs 113665723.00
256Foshan Electrical
Less: share in the fair value of identifiable net assets
115797320.43
acquired
The amount of goodwill/combination cost less than the
-2131597.43
share in the fair value of identifiable net assets acquired
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Zhejiang Hule Electrical Equipment Manufacturing Co. Ltd.Fair value on purchase date Carrying value on purchase date
Assets:
Monetary assets 3835299.97 3835299.97
Accounts receivable 132228807.71 132228807.71
Inventories 26605061.77 23658451.54
Fixed assets 39372437.48 12529891.35
Intangible assets 53357797.97 2515973.93
Held-for-trading financial assets 1558500.00 1558500.00
Prepayments 1874763.21 1874763.21
Long-term prepaid expense 0.00 1651723.30
Deferred income tax assets 2818084.62 2818084.62
Total assets 261650752.73 182671495.63
Liabilities:
Borrowings 10500000.00 10500000.00
Accounts payable 44024378.12 44024378.12
Deferred income tax liabilities 11855663.57 8775.00
Advances from customers 97695.29 97695.29
Contract liabilities 3345246.39 3345246.39
Employee benefits payable 4409195.96 4409195.96
Taxes payable 2054337.91 2054337.91
Other current liabilities 9954277.55 9954277.55
Total liabilities 86240794.79 74393906.22
Net assets 175409957.94 108277589.41
Less: non-controlling interests 59612637.51 36787633.21
Net assets acquired 115797320.43 71489956.20
When Hainan Technology acquired the equity of Zhejiang Hule Electrical Equipment Manufacturing
Co. Ltd. it engaged an assessment agency with relevant qualifications to assess the identifiable assets
and liabilities of the target company in accordance with the asset-based method and determined the
fair value of the consolidated net assets of Zhejiang Hule Electrical Equipment Manufacturing Co.Ltd. based on the assessment results.
(4) Gains or Losses from Re-measurement of Equity Held before the Purchase Date at Fair
Value
Whether there is a transaction that through multiple transaction step by step to realize business
combination and gaining the control during the Reporting Period
□Yes □No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the
Acquiree that Cannot Be Determined on the Acquisition Date or during the Period-end of the
Merger
None.
257Foshan Electrical
(6) Other Notes
None.
2. Business Combination under the Same Control
None.
3. Counter Purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets
liabilities of the listed companies whether constituted a business and its basis the determination of
the combination costs the amount and calculation of adjusted rights and interests in accordance with
the equity transaction process:
None.
4. Disposal of Subsidiary
Whether there were any transactions or events during the period in which control of the subsidiary
was lost
□Yes □No
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions
and loss of control during the current period
□Yes □No
258Foshan Electrical
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation
of subsidiaries etc.) and relevant information:
1. Fozhao Huaguang (Maoming) Technology Co. Ltd. completed its industrial and commercial
registration in April of this period. In May the company injected capital into it. Fozhao Huaguang
was included in the scope of consolidation starting from May 2024.Gaozhou NationStar Technology Co. Ltd. completed its business registration in April of the current
period and NationStar injected capital into it in May. Gaozhou NationStar has been included in the
merger scope since May 2024.
3. Liaowang Auto Lamp (Suzhou) Co. Ltd. completed its industrial and commercial registration in
November of this period. In December Liaowang Auto Lamp injected capital into it. Suzhou
Liaowang was included in the consolidated scope starting from December 2024.
4. The holding company of Hainan Technology Hule Electrical Equipment holds a 55% stake in
Shanghai Lelaite and has achieved control over it. Hainan Technology acquired control of Shanghai
Lelaite through the acquisition of Hule Electrical Equipment and Shanghai Lelaite was included in
the consolidation scope starting from August 2024.
6. Other
None.X. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Unit: RMB
Main Shareholding percentage
Name of Registered Registration Nature of Way of
operating (%)
subsidiaries capital place business gaining
place Directly Indirectly
Foshan Fozhao
Zhicheng Production Newly
50000000.00 Foshan Foshan 100.00%
Technology Co. and sales established
Ltd.FSL Chanchang
Production Newly
Lighting Co. 72782944.00 Foshan Foshan 100.00%
and sales established
Ltd.Foshan Taimei
Production Newly
Times Lamp Co. 500000.00 Foshan Foshan 70.00%
and sales established
Ltd.Foshan Electrical
& Lighting Production Newly
35418439.76 Xinxiang Xinxiang 100.00%
(Xinxiang) Co. and sales established
Ltd.
259Foshan Electrical
Main Shareholding percentage
Name of Registered Registration Nature of Way of
operating (%)
subsidiaries capital place business gaining
place Directly Indirectly
Nanjing Fozhao
Lighting
Production
Components 41683200.00 Nanjing Nanjing 100.00% Acquired
and sales
Manufacturing
Co. Ltd.FSL Zhida
Electric Production Newly
38150000.00 Foshan Foshan 66.84%
Technology Co. and sales established
Ltd. (FSL Zhida)
Foshan Haolaite
Production Newly
Lighting Co. 17158000.00 Foshan Foshan 51.00% 10.53%
and sales established
Ltd.NationStar Business
Optoelectronics combination
1436419.00 Germany Germany Trade 61.53%
(Germany) Co. under the
Ltd. same control
Foshan Kelian Business
New Energy Property combination
170000000.00 Foshan Foshan 100.00%
Technology Co. development under the
Ltd. same control
Fozhao (Hainan)
Production Newly
Technology Co. 200000000.00 Haikou Haikou 100.00%
and sales established
Ltd.Zhejiang Hule
Electrical
Production
Equipment 29000000.00 Jiaxing Jiaxing 66.00% Acquired
and sales
Manufacturing
Co. Ltd.Shanghai Lelaite
Electrical
1000000.00 Shanghai Shanghai Trade 36.30% Acquired
Equipment Co.Ltd.Nanning Manufacturi
Liaowang Auto 35055700.00 Nanning Nanning ng of vehicle 53.79% Acquired
Lamp Co. Ltd. lamps
Liuzhou Guige
Manufacturi
Lighting
30000000.00 Liuzhou Liuzhou ng of vehicle 53.79% Acquired
Technology Co.lamps
Ltd.Manufacturi
Liuzhou Guige
ng of
Fuxuan
20000000.00 Liuzhou Liuzhou automotive 53.79% Acquired
Technology Co.electronic
Ltd.products
Chongqing
Manufacturi
Guinuo Lighting
30000000.00 Chongqing Chongqing ng of vehicle 53.79% Acquired
Technology Co.lamps
Ltd.Qingdao Guige
Manufacturi
Lighting
30000000.00 Qingdao Qingdao ng of vehicle 53.79% Acquired
Technology Co.lamps
Ltd.Indonesia Manufacturi
40873066.42 Indonesia Indonesia 53.79% Acquired
Liaowang Auto ng of vehicle
260Foshan Electrical
Main Shareholding percentage
Name of Registered Registration Nature of Way of
operating (%)
subsidiaries capital place business gaining
place Directly Indirectly
Lamp Co. Ltd. lamps
Liaowang Auto Manufacturi
Newly
Lamp (Suzhou) 25000000.00 Suzhou Suzhou ng of vehicle 53.79%
established
Co. Ltd. lamps
Business
Foshan Sigma
Business combination
Venture Capital 50000000.00 Foshan Foshan 100.00%
services under the
Co. Ltd.same control
Foshan Business
Electronic
NationStar combination
618477169.00 Foshan Foshan manufacturin 21.48%
Optoelectronics under the
g
Co. Ltd. same control
Foshan
Business
NationStar Electronic
combination
Semiconductor 820000000.00 Foshan Foshan manufacturin 21.48%
under the
Technology Co. g
same control
Ltd.Foshan Guoxing Business
Electronic
Electronic combination
10000000.00 Foshan Foshan manufacturin 21.48%
Manufacture Co. under the
g
Ltd. same control
Business
Nanyang Baoli
combination
Vanadium 100000000.00 Henan Nanyang Mining 12.89%
under the
Industry Co. Ltd.same control
Business
Guangdong New
combination
Electronics 5000000.00 Guangzhou Guangzhou Trade 21.48%
under the
Information Ltd.same control
Guangdong
Business
Fenghua Electronic
combination
Semiconductor 200000000.00 Guangzhou Guangzhou manufacturin 21.45%
under the
Technology Co. g
same control
Ltd.Gaozhou
NationStar Electronic
Newly
Lighting 30000000.00 Maoming Maoming manufacturin 21.48%
established
Technology Co. g
Ltd.Fozhao
Huaguang
Production Newly
(Maoming) 22920000.00 Maoming Maoming 100.00%
and sales established
Technology Co.Ltd.Notes to holding proportion in subsidiary different from voting proportion:
None.Basis of holding half or less voting rights but still controlling the investee and holding more than half
of the voting rights but not controlling the investee:
None.Significant structural entities and controlling basis in the scope of combination:
261Foshan Electrical
None.Other notes;
Guoxing Electronic Manufacture NationStar Semiconductor Baoli Vanadium Industry New
Electronics Fenghua Semiconductor and Gaozhou NationStar are subsidiaries of NationStar
Optoelectronics.Basis of determining whether the Company is the agent or the principal
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
The profit or loss
Shareholding Declaring dividends Balance of non-
Name of attributable to the
proportion of non- distributed to non- controlling interests
subsidiaries non-controlling
controlling interests controlling interests at the period-end
interests
Nanning Liaowang
Auto Lamp Co. 46.21% 29129877.07 2429803.05 484479615.42
Ltd.Foshan NationStar
Optoelectronics 78.52% 43226616.92 31719418.04 2987301700.06
Co. Ltd.Holding proportion of non-controlling interests in subsidiary different from voting proportion:
None.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Ending balance Beginning balance
Name of
Curre Non- Current Non- Total Non- Current Non- Total
subsidiar Total Current Total
nt current liabiliti current liabiliti current liabiliti current liabiliti
ies assets assets assets
assets assets es liability es assets es liability es
Nanning
Liaowan 179 1590 8969 2487 1512 5492 1567
10172815167492741766
g Auto 759 8599 8294 8428 8294 8920. 7583
6668260910223700.8459
Lamp 409 43.26 8.71 91.97 22.99 36 43.35
28.5227.6978.767179.47
Co. Ltd. 9.17
Foshan
NationSt 384
24086249209632822425396725596526234038232722
ar 125
01972792915102451176291312174131584288859731
Optoelec 956
05.2669.1166.373.1919.5674.5230.0604.5873.661.5625.22
tronics 3.85
Co. Ltd.Unit: RMB
Reporting Period Same period of last year
Total Cash flows Total Cash flows
Name of
Operating comprehen from Operating comprehen from
subsidiaries Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Nanning
1822836303803624717259070261585442471943148657062412472
Liaowang
9421.057.390.71.34717.596.224.305.63
Auto Lamp
262Foshan Electrical
Reporting Period Same period of last year
Total Cash flows Total Cash flows
Name of
Operating comprehen from Operating comprehen from
subsidiaries Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Co. Ltd.Foshan
NationStar
3472865437553543755324010823541637855355385535533896408
Optoelectro
0317.192.372.3777.59227.924.984.9859.65
nics Co.Ltd.
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
None.
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the
Scope of Consolidated Financial Statements
None.
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still
Controlling the Subsidiary
None.
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
None.
(2) Main Financial Information of Significant Joint Ventures
None.
(3) Main Financial Information of Significant Associated Enterprises
None.
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Ending balance/reporting Beginning balance/the same
period period of last year
Joint ventures:
Total carrying value of
investment
The total of following items
according to the shareholding
proportions
Associated enterprises:
263Foshan Electrical
Total carrying value of
180300594.89179188555.15
investment
The total of following items
according to the shareholding
proportions
--Net profit 1112039.74 1833621.59
-- Other comprehensive
income
--Total comprehensive income 1112039.74 1833621.59
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
None.
(6) The Excess Loss of Joint Ventures or Associated Enterprises
None.
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
None.
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
None.
4. Significant Common Operation
None.
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements
Notes to the structured entity excluded in the scope of consolidated financial statements:
None.
6. Other
None.XI. Government Grants
1. Government Grants Recognized at the End of the Reporting Period at the Amount
Receivable
□Applicable □Not applicable
Reasons for failing to receive government grants in the estimated amount at the estimated point in
time
□Applicable □Not applicable
264Foshan Electrical
2. Liability Items Involving Government Grants
□Applicable □ Not applicable
Unit: RMB
Amount
recorded into Amount
non- transferred to
Amount of Related to
Beginning operating other income Other Ending
Item newly assets/related
balance income in in the changes balance
subsidy to income
the Reporting
Reporting Period
Period
Deferred 65991198.1 26924957.0 24732407.7 68183747.3 Related to
income 2 0 4 8 assets
Deferred 11804856.6 Related to
9194263.158166026.035555432.56
income 2 income
3. Government Grants Recognized as Current Profit or Loss
□Applicable □ Not applicable
Unit: RMB
Item Reporting Period Same period of last year
Other income 49901371.11 48544426.20
Non-operating income 11000.00
XII. The Risk Related to Financial Instruments
1. Various Types of Risks Arising from Financial Instruments
The Company’s main financial instruments include equity investments trading financial assets
receivables financing notes receivable accounts receivable other receivables other debt investments
accounts payable notes payable other payables short-term borrowings and long-term borrowings.Detailed information on these financial instruments is provided in Note 7 under the relevant items.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
265Foshan Electrical
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 flows in future 12 months to ensure the Company have sufficient cash to pay the
liabilities under the case of all reasonable prediction.iii. Market risk
Market risk was referred to risk of the fair value or future cash flows of financial instrument changed
due to the change of market price including: exchange rate risk interest rate risk and other price risk.
1. Exchange rate risk
Exchange rate risk refers to the risk of loss due to exchange rate changes. The Company’s exposure
to foreign exchange risk is mainly related to the US dollar and the euro. As of 31 December 2023
the Company’s assets and liabilities were in RMB except for the balances of usd euro Hong Kong
dollar and rupiah as set out in this Note VII-81. Foreign Currency Monetary Items. Foreign exchange
risk arising from the assets and liabilities of such foreign currency balances may have a certain impact
on the Company’s operating results.The Company made efforts to avoid exchange rate risk through forward exchange settlement
improving operation management and promoting the international competitiveness of the Company
etc.
2. Interest rate risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flows of financial
instrument change due to the change of market interest rates. The interest rate risk faced by the
Company mainly comes from bank borrowings. By establishing a good bank-enterprise relationship
the Company reasonably designed the credit line credit variety and credit period ensured sufficient
credit line of banks and met various short or long-term financing needs of the Company with
preferential loan interest rates. As of 31 December 2024 the balance of the Company’s fixed-rate
borrowing was RMB637826956.57 accounting for 100% of the total borrowing balance. Therefore
the market risk of interest rate changes borne by the Company is not significant.
3. Other price risk
The Group’s other price risks arise primarily from investments in equity instruments as there is the
risk of changes in the price of equity instruments.As of 31 December 2024 if the expected prices of the Group’s various equity instrument investments
increase or decrease by 1% and other factors remain unchanged the Group shall increase or decrease
comprehensive income by approximately RMB1059041.21 (31 December 2023: increasing or
decreasing comprehensive income by approximately RMB997232.34).
2. Hedge
(1) The Company Carries out Hedging Business for Risk Management
□Applicable □Not applicable
(2) The Company Conducts Eligible Hedging Operations and Applies Hedge Accounting
None.
266Foshan Electrical
(3) The Company Conducts Hedging Operations for Risk Management Expects to Achieve Its
Risk Management Objectives but Does Not Apply Hedge Accounting
□Applicable □Not applicable
3. Financial Assets
(1) Classification of Transfer Methods
□Applicable □ Not applicable
Unit: RMB
Nature of
Amount of
Transfer transferred Derecognized
transferred Basis for derecognition
method financial or not
financial assets
assets
Since the credit risk and deferred payment
risk of bank acceptance bills in accounts
Accounts receivable financing are minimal and the
Endorsement
receivable 321066873.83 Yes interest risk related to the notes has been
of notes
financing transferred to banks it can be judged that
almost all risks and rewards of ownership of
the notes have been transferred
Accounts
Discount of Almost all risks and rewards of ownership of
receivable 93903013.42 Yes
notes the notes have been transferred
financing
Endorsement Notes Almost all risks and rewards of ownership of
77576500.22 Yes
of notes receivable the notes have been transferred
Almost all its risks and rewards have been
Endorsement Notes
368196176.60 Not retained including the risk of default
of notes receivable
associated with it
Almost all its risks and rewards have been
Discount of Notes
4282836.39 Not retained including the risk of default
notes receivable
associated with it
Cloud Credit Almost all its risks and rewards have been
Accounts
Endorsement 1050000.00 Not retained including the risk of default
receivable
associated with it
Total 866075400.46
(2) Financial Assets Derecognized due to Transfer
□Applicable □ Not applicable
Unit: RMB
Method of financial Amount of derecognized Gains or losses related to
Item
assets transfer financial assets derecognition
Accounts receivable
Endorsement of notes 321066873.83
financing
Accounts receivable
Discount of notes 93903013.42
financing
Notes receivable Endorsement of notes 77576500.22
Total 492546387.47
(3) Continued Involvement in the Transfer of Assets Financial Assets
□Applicable □ Not applicable
267Foshan Electrical
Unit: RMB
Amount of assets Amount of liabilities
Item Method of assets transfer resulting from continued resulting from continued
involvement involvement
Notes receivable 372479012.99 372479012.99
Of which: Bank
Endorsement of notes 367343976.60 367343976.60
acceptance bills
Commercial Acceptance
Endorsement of notes 852200.00 852200.00
Draft
Bank Acceptance Draft Discount of notes 4282836.39 4282836.39
Cloud Credit
Accounts receivable 1050000.00 1050000.00
Endorsement
Total 373529012.99 373529012.99
XIII. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Closing fair value
Fair value Fair value Fair value
Item
measurement items measurement items measurement items Total
at level 1 at level 2 at level 3
I. Consistent fair
--------
value measurement
i. Trading financial
1988814.9141661005.5643649820.47
assets
1. Financial assets at
fair value through 1988814.91 41661005.56 43649820.47
profit or loss
(1) Investments in
1988814.911988814.91
equity instruments
(2) Wealth
management 41661005.56 41661005.56
products
ii. Other
investments in debt 1140022863.72 1140022863.72
obligations
iii. Other equity
instrument 687081069.62 39582543.80 726663613.42
investment
iv. Receivable
352694866.89352694866.89
financing
Total assets
measured at fair
689069884.531181683869.28392277410.692263031164.50
value on a recurring
basis
vi. Trading
275250.00275250.00
financial liabilities
Of which:Other 275250.00 275250.00
Total assets
measured at fair
275250.00275250.00
value on a recurring
basis
II. Inconsistent fair
--------
value measurement
268Foshan Electrical
2. Basis for Determining the Market Value of Continuing and Discontinuing Level 1 Fair Value
Measurement Items
Level 1 fair value measurements are determined based on the market price of equities at the balance
sheet date and the mid-price of the RMB exchange rate published by the State Administration of
Foreign Exchange as quoted prices in an active market.
3. Continuing and Discontinuing Level 2 Fair Value Measurement Items Qualitative And
Quantitative Information On The Valuation Techniques Used And Significant Parameters
The fair value of financial products subscribed by the Group and other investments in debt obligations
that are measured at fair value is determined by reference to the expected rate of return provided by
the financial institutions.
4. Continuing and Discontinuing Level 3 Fair Value Measurement Items Qualitative And
Quantitative Information On The Valuation Techniques Used And Significant Parameters
(1) The Company measured the investment at cost as a reasonable estimate of fair value because there
were no significant changes in the business environment and operating and financial conditions of
the investee GF Bank.
(2) The Company measured the investee Shenzhen Zhonghao (Group) Company Limited at nil as a
reasonable estimate of fair value due to the deterioration of its business environment and operating
and financial conditions.
(3) The Company measured the investment at cost as a reasonable estimate of fair value because there
were no significant changes in the business environment and operating and financial conditions of
the investee companies Foshan Nanhai District United Guangdong New Light Source Industry
Innovation Center Beijing Guang Rong Union Semiconductor Lighting Industry Investment Center
and Guangdong Rising Finance Co. Ltd.
(4) The receivables financing represents bank acceptance notes held by the Company with a short
remaining maturity the face value of which approximates the fair value and the face amount is used
to recognize the fair value at the statement date.
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between
Beginning and Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
None.
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
None.
7. Changes in the Valuation Technique in the Current Period and the Reason for Such Changes
None.
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
None.
269Foshan Electrical
XIV. Related Party and Related-party Transactions
1. The parent company of the Company
Proportion of
Proportion of
voting rights
share held by the
Registration Nature of Registered owned by the
Name Company as the
place business capital Company as the
parent against the
parent against the
Company (%)
Company (%)
Hongkong Wah
Shing Holding Hong Kong Investment HKD110000 12.74% 12.74%
Company Limited
Guangdong
Electronics
Production RMB1162
Information Guangzhou 8.54% 8.54%
and sales million
Industry Group
Ltd.Guangdong Rising
Holdings Group Guangzhou Investment RMB10 billion 8.38% 8.38%
Co. Ltd.Rising Investment RMB360 million
Development Hong Kong Investment and HKD1 1.65% 1.65%
Limited million
Total 31.30% 31.30%
Notes: Information on parent company of the Company
Hongkong Wah Shing Holding Company Limited (hereinafter referred to as “Hongkong Wah Shing”)
the largest shareholder of the Company is a wholly-owned subsidiary of Guangdong Electronics
Information Industry Group Ltd. (hereinafter referred to as “Electronics Group”) and ElectronicsGroup Shenzhen Rising Investment Development Co. Ltd. (hereinafter referred to as “ShenzhenRising”) Guangdong Rising Finance Holding Co. Ltd. (GD Rising Finance) (renamed Guangdong
Rising Capital Investment Co. Ltd. on 13 December 2021 hereinafter referred to as “Rising Capital”)
and Rising Investment Development Limited (hereinafter referred to as “Rising Investment”) are
wholly-owned subsidiaries of Guangdong Rising Holdings Group Co. Ltd. (hereinafter referred to
as “Rising Holdings Group”). According to the relevant provisions of the Company Law and the
Measures for the Administrative Measures on Acquisition of Listed Companies Electronics Group
Shenzhen Rising Rising Capital and Rising Investment are concerted actors and Rising Holdings
Group becomes the actual controller of the Company. In December 2021 Shenzhen Rising and Rising
Capital transferred all their shares of the Company to Rising Holdings Group. In February 2022 the
Company repurchased and cancelled a portion of its shares resulting in the total shareholding of the
aforementioned concerted parties accounting for 30.82% of the Company’s shares. In November
2023 the Company issued 186783583 A-shares in a private placement to specific investors
withRising Holdings Group subscribing to 46695895 shares. As a result the total shareholding of
the concerted parties accounted for 30.12% of the Company’s shares. From 3 June 2024 to 8
November 2024 Electronics Group and Hong Kong Wah Shing increased their shareholdings in the
Company by 18342550.00 shares accounting for 1.18% of the Company’s total share capital. As of
31 December 2024 the total shareholding of the aforementioned concerted parties in the Company
accounted for 31.30%.The final controller of the Company is Guangdong Rising Holdings Group Co. Ltd.
270Foshan Electrical
2. Subsidiaries of the Company
Refer to Note X 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 X Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for
details of significant joint ventures or associated enterprises of the Company.
4. Information on Other Related Parties
Name Relationship with the Company
Prosperity Lamps & Components Limited Shareholder owning over 5% shares
Guangdong Zhongren Group Construction Co. Ltd Under same actual controller
Guangdong Fenghua Advanced Technology (Holding)
Under same actual controller
Co. Ltd.Primatronix Nanho Technology Ltd. Under same actual controller
Foshan Fulong Environmental Technology Co. Ltd. Under same actual controller
Dongguan Hengjian Environmental Protection
Under same actual controller
Technology Co. Ltd.Shenzhen Longgang Dongjiang Industrial Waste
Under same actual controller
Treatment Co. Ltd.Zhuhai Dongjiang Environmental Protection
Under same actual controller
Technology Co. Ltd.Guangzhou Haixinsha Industrial Co. Ltd. Under same actual controller
Shenzhen Yuepeng Construction Co. Ltd. Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Guangdong Zhongnan Construction Co. Ltd. Under same actual controller
Guangdong Fenghua New Energy Co. Ltd. Under same actual controller
Guangdong Electronics Information Industry Group
Under same actual controller
Ltd.Guangdong Rising Cultural Industry Development Co.Ltd. (formerly known as Guangdong Great Wall Hotel Under same actual controller
Co. Ltd.)
Guangzhou Shengfeng Catering Management Service
Under same actual controller
Co. Ltd.Guangdong Huajian Enterprise Group Co. Ltd. Under same actual controller
Guangdong Rising Finance Co. Ltd. Under same actual controller
Guangdong Xintao Microelectronics Co. Ltd. Under same actual controller
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Engineering
Under same actual controller
Technology Co. Ltd.Guangdong Huajian Engineering Construction Co.Under same actual controller
Ltd.Guangdong Rising Research and Development
Under same actual controller
Institute Co. Ltd.Shandong Zhongjin Lingnan Copper Co. Ltd. Under same actual controller
Shantou Rising Infrastructure Construction Investment
Under same actual controller
Co. Ltd.Guangdong Semiconductor Device Factory Under same actual controller
Guangdong Rising Mining Group Co. Ltd. (formerly
known as Guangdong Rising Nonferrous Metals Group Under same actual controller
Co. Ltd.)
Guangzhou Wanshun Investment Management Co.Under same actual controller
Ltd.Jiangmen Dongjiang Environmental Company Limited Under same actual controller
Zhuhai Doumen District Yongxingsheng Under same actual controller
271Foshan Electrical
Name Relationship with the Company
Environmental Industry Waste Recovery and
Comprehensive Treatment Co. Ltd.Ramada Pearl Hotel Guangzhou Under same actual controller
Guangdong Dabaoshan Mining Co. Ltd. Under same actual controller
Guangzhou Huajian Business Development Co. Ltd. Under same actual controller
Guangdong Rising South Construction Co. Ltd. Under same actual controller
Guangdong Rising Urban Services Co. Ltd. (formerly
known as Guangdong Heshun Property Management Under same actual controller
Co. Ltd.)
Guangdong Rising Hydrogen Energy Co. Ltd. Under same actual controller
Guangdong Zhuyuan Construction Engineering Co.Under same actual controller
Ltd.Guangdong Rising Commercial Development Co. Ltd.(renamed Guangzhou Tianxin Property Management Under same actual controller
Company)
Traxon Technologies Limited Enterprise controlled by related natural person
Prosperity (China) Electrical Company Limited Enterprise controlled by related natural person
Hangzhou Times Lighting Electric Appliances Co.Enterprise controlled by related natural person
Ltd.Enterprise significantly affected by related natural
Nanning Ruixiang Industrial Investment Co. Ltd.person
Under same actual controller (cancelled in August
Guangdong The Great Wall Building Co. Ltd.
2023)
Enterprises controlled by the same actual controller
Guangdong Electronic Technology Research Institute
(removed from the balance sheet in October 2023)
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
Amount
The
accounted Whether
approval Same period
Related party Content for in the exceed trade
trade of last year
current credit or not
credit
period
Guangdong Fenghua Advanced Purchase of 6884215.
2986035.20
Technology (Holding) Co. Ltd. materials 25
1600000
Not
0.00
Guangdong Fenghua Advanced Receiving labor
3584.91
Technology (Holding) Co. Ltd. service
Guangzhou Shengfeng Catering Receiving labor 4135911.Management Service Co. Ltd. service 57
1200000
Not
0.00
Guangdong Rising Cultural
Industry Development Co. Ltd. Receiving labor 296727.8 23365.00
(formerly known as Guangdong service 5
Great Wall Hotel Co. Ltd.)
272Foshan Electrical
Amount
The
accounted Whether
approval Same period
Related party Content for in the exceed trade
trade of last year
current credit or not
credit
period
Guangdong Rising Commercial
Development Co. Ltd. (renamed Receiving labor
90119.9956106.76
Guangzhou Tianxin Property service
Management Company)
Guangdong Rising Cultural
Industry Development Co. Ltd. Purchase of
4911.86
(formerly known as Guangdong materials
Great Wall Hotel Co. Ltd.)
Receiving labor
Ramada Pearl Hotel Guangzhou 107037.44
service
Guangdong The Great Wall Receiving labor
22053.55
Building Co. Ltd. service
Guangdong Xintao Purchase of 3484936.Microelectronics Co. Ltd. materials 83
Shenzhen Yuepeng Construction Receiving labor 2340079.
1681659.50
Co. Ltd. service 65
Guangdong Rising South Receiving labor 652798.1
Construction Co. Ltd. service 7
Guangdong Electronics Purchase of 638973.4
Information Industry Group Ltd. materials 4
Shenzhen Yuepeng Receiving labor 2340079. 3000000. 1681659.50
Construction Co. Ltd. service 65 Yes 00
Guangdong Rising South Receiving labor 652798.1
Construction Co. Ltd. service 7
Zhuhai Dongjiang
Receiving labor 434246.5
Environmental Protection 214012.32
service 4
Technology Co. Ltd.Primatronix Nanho Technology Receiving labor 433225.6
5249.00
Ltd. service 6
Guangdong Rising Hydrogen Receiving labor 316592.9
Energy Co. Ltd. service 3
Guangdong Rising Urban
Receiving labor 154938.0
Services Co. Ltd. (formerly
273Foshan Electrical
Amount
The
accounted Whether
approval Same period
Related party Content for in the exceed trade
trade of last year
current credit or not
credit
period
known as Guangdong Heshun service 2
Property Management Co. Ltd.)
Foshan Fulong Environmental Receiving labor
85601.30346191.32
Technology Co. Ltd. service
Primatronix Nanho Technology Purchase of
62017.70
Ltd. materials
Guangdong Fenghua New Receiving labor
59566.39
Energy Co. Ltd. service
Shenzhen Longgang Dongjiang
Receiving labor
Industrial Waste Treatment Co. 51756.22 156034.70
service
Ltd.Zhuhai Doumen District
Yongxingsheng Environmental
Receiving labor
Industry Waste Recovery and 45166.12 43504.72
service
Comprehensive Treatment Co.Ltd.Jiangmen Dongjiang
Receiving labor
Environmental Company 2169.81 82209.44
service
Limited
Guangdong Rising Holdings Receiving labor
1428.57
Group Co. Ltd. service
Dongguan Hengjian
Receiving labor
Environmental Protection 76930.19
service
Technology Co. Ltd.Guangdong Dabaoshan Mining Receiving labor
25471.68
Co. Ltd. service
Guangzhou Haixinsha Industrial Receiving labor 3724279.
1982823.87
Co. Ltd. service 84
Guangzhou Huajian Business Receiving labor 240408.7 9000000.Not
Development Co. Ltd. service 4 00
Guangdong Huajian Enterprise Receiving labor
49237.92
Group Co. Ltd. service
Hangzhou Times Lighting Purchase of 1300.88 3000000. Not
274Foshan Electrical
Amount
The
accounted Whether
approval Same period
Related party Content for in the exceed trade
trade of last year
current credit or not
credit
period
Electric Appliances Co. Ltd. materials 00
PROSPERITY LAMPS & Purchase of
55967.88
COMPONENTS LIMITED materials
Guangdong Zhongren Group Receiving labor 1531731 46260034.4
Not
Construction Co. Ltd service 3.48 2
Guangdong Zhongnan Receiving labor 1243930 126639979.Not
Construction Co. Ltd. service 5.64 72
Guangdong Yixin Changcheng Receiving labor 3923726. 142484829.Not
Construction Group service 90 61
55870954300000323253081.
Total Not
7.270.0023
Information of sales of goods and provision of labor service
Unit: RMB
Reporting Same period of
Related party Content
Period last year
Guangdong Fenghua Advanced Technology (Holding)
Sale of products 10819750.06 12695399.38
Co. Ltd.PROSPERITY LAMPS & COMPONENTS LIMITED Sale of products 9616900.56 26429431.11
Guangdong Xintao Microelectronics Co. Ltd. Sale of products 1791682.84
Shantou Rising Infrastructure Construction Investment
Sale of products 1426923.55
Co. Ltd.Traxon Technologies Limited Sale of products 952271.46
Guangdong Rising Mining Group Co. Ltd. (formerly
known as Guangdong Rising Nonferrous Metals Group Sale of products 99577.88 349463.13
Co. Ltd.)
Guangdong Zhongnan Construction Co. Ltd. Sale of products 96507.96 2836654.66
Guangzhou Wanshun Investment Management Co.Sale of products 59565.75 0.00
Ltd.Shandong Zhongjin Lingnan Copper Co. Ltd. Sale of products 9102.65 635444.25
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Sale of products 985342.48
Guangdong Zhuyuan Construction Engineering Co.Sale of products 463890.89
Ltd.Providing labor
Guangdong Zhongnan Construction Co. Ltd. 452550.02
services
Providing labor
Guangdong Yixin Changcheng Construction Group 121035.60 563380.10
services
Providing labor
Guangdong Zhongren Group Construction Co. Ltd 5504.59 256834.10
services
Providing labor
Guangdong Rising Holdings Group Co. Ltd. 52.83 258120.00
services
Guangdong Rising Urban Services Co. Ltd. (formerly Providing labor 603820.91
275Foshan Electrical
Reporting Same period of
Related party Content
Period last year
known as Guangdong Heshun Property Management services
Co. Ltd.)
Total 25451425.75 46077781.01
Notes:
1. The Company’s related party transaction pricing policies are as follows:
The pricing of related party transactions follows market principles based on market prices at the time
of transaction and relevant funds are also paid on schedule according to actual transactions.
2. The related-party transactions between the Company and its subsidiaries and between subsidiaries
have been offset during report consolidation.
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
None.Lists of entrust/contractee
Unit: RMB
Charge
Name of the
Name of the Pricing recognized in
entrustee/ Type Start date Due date
entruster/contractee basis this Reporting
contractor
Period
Guangdong
Foshan NationStar 30 31
Zhongren Group
Optoelectronics Co. December December
Construction Co.Ltd. 2020 2022
Ltd
Guangdong
Foshan Electrical Yixin 29
28 May
and Lighting Co. Changcheng December
2021
Ltd. Construction 2022
Group
Guangdong
Foshan Electrical Yixin 11
1 March
and Lighting Co. Changcheng December
2022
Ltd. Construction 2022
Group
Guangdong
Foshan Kelian New 23
Zhongnan 23 June
Energy Technology December
Construction Co. 2021
Co. Ltd. 2022
Ltd.Guangdong
Foshan Kelian New 31
Huajian 1 January
Energy Technology December
Enterprise Group 2025
Co. Ltd. 2034
Co. Ltd.Notes to entrust/contractee:
1. The Company’s subsidiary Foshan NationStar Optoelectronics Co. Ltd. entered into the General
Contracting Contract of NationStar Optoelectronics for the Survey Design and Construction of the
Geely Industrial Park with Guangdong Zhongren Group Construction Co. Ltd. Guangdong
Architectural Design & Research Institute Co. Ltd. and CSIC International Engineering Co. Ltd.
276Foshan Electrical
on 30 December 2020. The above parties take charge of the survey design and construction of the
Geely Industrial Park. The total price of the contract is RMB509292500. As of the date of this Report
the project has not been completed and accepted.
2. The Company entered into the General Contracting Contract of Foshan Electrical and Lighting
Co. Ltd. for the Design and Construction of the Office Buildings of Gaoming Headquarters
Production Base Phase II with Guangdong Yixin Changcheng Construction Group Co. Ltd. and
Guangdong Architectural Design & Research Institute Co. Ltd. on 28 May 2021. The above parties
take charge of the design and construction of Gaoming office buildings. The total price of the contract
is RMB175025600 and the planned total construction period is 560 calendar days (560 days for
construction including 90 days for design). As of the date of this Report the project has passed the
completion acceptance check.
3. On 1 March 2022 the Company signed a General Contract for Design and Construction of the
Smart LED Lighting Production Factory Buildings 1-3 at the Gaoming Production Base of Foshan
Electrical and Lighting Co. Ltd. with Guangdong Yixin Great Wall Construction Group Co. Ltd.and Guangdong Architectural Design & Research Institute Co. Ltd. The aforementioned companies
were responsible for the design and construction of the three buildings in Gaoming. The tentative
total contract value was RMB 129991400 with a planned total construction period of 285 calendar
days (30 days for design and 255 days for construction). The project has now been completed and
accepted.
4. On 23 June 2021 the Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd.
signed a General Contract for Design and Construction of the Decoration Engineering of Kelian
Building with Guangdong Zhongnan Construction Co. Ltd. and Guangdong Architectural Design &
Research Institute Co. Ltd. The aforementioned companies were responsible for the interior design
and construction of the building. The tentative total contract value was RMB189070200 with a
planned total construction period of 240 calendar days (60 days for design and 210 days for Building
2 and 240 days for Building 1). The construction period for the self-use floors starts from the actual
commencement of construction. The project has now been completed with the self-use floors of
Building 2 having passed acceptance and the property management company is currently conducting
the handover inspection for Building 1.
5. On 21 April 2023 the Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd.
signed the Kelian Building Operation and Leasing Service Contract and the Kelian Building Property
Management Service Contract with Huajian Group. The industrial (R&D center) area (located in
Building 1) commercial (service apartments) commercial (shops) and part of the underground
parking lot totaling 70340.04 square meters were entrusted to Huajian Group for operation and
leasing. The operation and leasing service period is 10 years from 1 January 2025.
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income The lease income
Name of lessee Category of leased assets confirmed in the confirmed in the same
Reporting Period period of last year
Guangdong Rising
Research and
Development Institute Plant 1353643.59 1371318.77
Co. Ltd. and its majority-
owned subsidiaries
277Foshan Electrical
The Company served as the lessee:
Unit: RMB
Rental expenses Variable lease
of short-term payments not Income
lease simplified included in the expense of Increased right-
Paid rent
treated and low- measurement of lease liabilities of-use assets
Category value asset lease lease liabilities undertaken
Name of lessor of leased (if applicable) (if applicable)
assets Same Same
Same Same Same
Reporti perio perio
Reportin period Reportin period period Reportin Reportin
ng d of d of
g Period of last g Period of last of last g Period g Period
Period last last
year year year
year year
Guangdong Rising Houses
68911606812379
Holdings Group and
45.186.36546.50
Co. Ltd. buildings
Guangdong Rising
Commercial
Development Co.Houses 219 26 65
Ltd. (renamed 3476 5495.6 35678
and 647. 88. 598
Guangzhou 97.25 3 2.85
buildings 41 29 .04
Tianxin Property
Management
Company)
Guangdong The Houses 649 18
Great Wall and 54.2 01.Building Co. Ltd. buildings 9 29
(4) Information on Related-party Guarantee
None.
(5) Information on Inter-bank Lending of Capital of Related Parties
None.
(6) Information on Assets Transfer and Debt Restructuring by Related Party
None.
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item Reporting Period Same period of last year
Chairman of the Board 2884609.72 1705572.73
General Manager 2641336.55 1470932.32
Chairman of the Supervisory
2608793.591316856.34
Committee
Secretary of the Board of Directors 768328.52 535162.42
Chief Financial Officer 2535084.65 1419623.28
Other 11553385.20 10108242.96
Total 22991538.23 16556390.05
278Foshan Electrical
(8) Other Related-party Transactions
In accordance with the Financial Service Agreement signed by the Company in 2024 the total
maximum daily deposit balance of the Company and its majority-owned subsidiaries deposited in
Guangdong Rising Finance Co. Ltd. shall not exceed RMB1.5 billion and the general credit limit
provided by Guangdong Rising Finance Co. Ltd. for the Company and its majority-owned
subsidiaries shall not exceed RMB2 billion. As of 31 December 2024 the deposit balance of the
Company and its subsidiaries deposited in Guangdong Rising Finance Co. Ltd. is
RMB1482165300. The undue interest receivable is RMB 5258600.
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
Ending balance Beginning balance
Project name Related party Carrying Bad debt Carrying Bad debt
amount provision amount provision
Monetary
Guangdong Rising
capital- accrued 5153062.03 5226458.64
Finance Co. Ltd.interest
Other current
Guangdong Rising
assets- accrued 105555.56
Finance Co. Ltd.interest
Guangdong Fenghua
Accounts Advanced
5584276.94111685.542992978.9559859.58
receivable Technology
(Holding) Co. Ltd.PROSPERITY
Accounts LAMPS &
3453458.25422680.164612923.23188722.11
receivable COMPONENTS
LIMITED
Guangdong Yixin
Accounts
Changcheng 2558600.74 76758.02 7510483.08 225314.49
receivable
Construction Group
Guangdong Rising
Urban Services Co.Ltd. (formerly known
Accounts
as Guangdong 2332537.86 623014.72 2332537.86 206392.47
receivable
Heshun Property
Management Co.Ltd.)
Shenzhen Zhongjin
Accounts
Lingnan Nonfemet 1555346.68 46660.40
receivable
Co. Ltd.Guangdong
Accounts
Zhongnan 510276.71 51027.67 510276.71 15308.30
receivable
Construction Co. Ltd.Guangdong Zhongjin
Accounts
Lingnan Engineering 504147.00 50414.70 566449.00 16993.47
receivable
Technology Co. Ltd.Guangdong Huajian
Accounts
Engineering 355473.15 7109.46 266736.05 5334.72
receivable
Construction Co. Ltd.
279Foshan Electrical
Ending balance Beginning balance
Project name Related party Carrying Bad debt Carrying Bad debt
amount provision amount provision
Guangdong Rising
Accounts Research and
239918.2223991.82289918.228697.55
receivable Development Institute
Co. Ltd.Guangdong Xintao
Accounts
Microelectronics Co. 138827.00 13882.70 138827.00 4164.81
receivable
Ltd.Shandong Zhongjin
Accounts
Lingnan Copper Co. 44297.00 35437.60 44297.00 22148.50
receivable
Ltd.Guangdong Zhuyuan
Accounts
Construction 15206.96 1520.70 146462.96 2929.26
receivable
Engineering Co. Ltd.Guangdong Zhongren
Accounts
Group Construction 10286.00 308.58
receivable
Co. Ltd
Shantou Rising
Accounts Infrastructure
242112.687263.38
receivable Construction
Investment Co. Ltd.Guangdong Rising
Accounts
Holdings Group Co. 3850.00 77.00
receivable
Ltd.Guangdong Rising
Urban Services Co.Ltd. (formerly known
Prepayments as Guangdong 60317.70
Heshun Property
Management Co.Ltd.)
Guangdong Rising
Prepayments Holdings Group Co. 39428.00 39428.00
Ltd.Prosperity (China)
Prepayments Electrical Company 13959.24
Limited
Guangdong Fenghua
Advanced
Prepayments 148.68 148.68
Technology
(Holding) Co. Ltd.Hangzhou Times
Prepayments Lighting Electric 1300.88
Appliances Co. Ltd.Nanning Ruixiang
Other
Industrial Investment 2587607.38 203049.97 1791739.20 53752.18
receivables
Co. Ltd.Guangdong Rising
Commercial
Development Co.Other
Ltd. (renamed 816441.49 816441.49
receivables
Guangzhou Tianxin
Property Management
Company)
280Foshan Electrical
Ending balance Beginning balance
Project name Related party Carrying Bad debt Carrying Bad debt
amount provision amount provision
Guangdong Zhongren
Other
Group Construction 586288.04 17588.64
receivables
Co. Ltd
Guangdong Rising
Other
Holdings Group Co. 74761.92 6868.51 67165.92 1343.32
receivables
Ltd.Guangdong
Other
Semiconductor 5000.00 500.00 5000.00 150.00
receivables
Device Factory
Guangdong Huajian
Other
Enterprise Group Co. 304.31 30.43 304.31 9.13
receivables
Ltd.Total 26745526.86 2508971.11 26789398.37 818460.27
(2) Accounts Payable
Unit: RMB
Ending carrying Beginning carrying
Project name Related party
amount amount
Guangdong Zhongren Group
Notes payable 119158.00 373870.86
Construction Co. Ltd
Guangdong Fenghua Advanced
Notes payable 74812.50
Technology (Holding) Co. Ltd.Notes payable Primatronix Nanho Technology Ltd. 15052221.04
Guangdong Zhongren Group
Accounts payable 99422072.40 117665437.46
Construction Co. Ltd
Guangdong Fenghua Advanced
Accounts payable 3976905.41 1385589.20
Technology (Holding) Co. Ltd.Guangdong Electronic Technology
Accounts payable 2560606.36 0.00
Research Institute
Shenzhen Longgang Dongjiang
Accounts payable 1381887.30 1174680.84
Industrial Waste Treatment Co. Ltd.Zhuhai Dongjiang Environmental
Accounts payable 1003260.00 506936.01
Protection Technology Co. Ltd.Guangzhou Haixinsha Industrial Co.Accounts payable 638973.44
Ltd.Shenzhen Yuepeng Construction Co.Accounts payable 99516.27
Ltd.Guangdong Yixin Changcheng
Accounts payable 95998.00 14457.85
Construction Group
Guangdong Zhongnan Construction
Accounts payable 53946.92
Co. Ltd.PROSPERITY LAMPS &
Accounts payable 14567.75
COMPONENTS LIMITED
Guangdong Fenghua New Energy Co.Accounts payable 7352.40 9478.00
Ltd.
281Foshan Electrical
Ending carrying Beginning carrying
Project name Related party
amount amount
Guangdong Electronics Information
Accounts payable 65992673.05
Industry Group Ltd.Guangdong Rising Cultural Industry
Development Co. Ltd. (formerly
Accounts payable 43398748.24
known as Guangdong Great Wall Hotel
Co. Ltd.)
Guangdong Xintao Microelectronics
Accounts payable 58230.70
Co. Ltd.Guangzhou Shengfeng Catering
Accounts payable 46500.00
Management Service Co. Ltd.Accounts payable Primatronix Nanho Technology Ltd. 1325.10
Nanning Ruixiang Industrial
Other payables 91046577.48 103639661.12
Investment Co. Ltd.Guangdong Huajian Enterprise Group
Other payables 52340650.63
Co. Ltd.Shenzhen Yuepeng Construction Co.Other payables 38499432.70 423469.05
Ltd.Guangdong Fenghua Advanced
Other payables 5215652.63 3593345.15
Technology (Holding) Co. Ltd.Guangdong Zhongnan Construction
Other payables 5035015.07 5030015.07
Co. Ltd.Other payables Primatronix Nanho Technology Ltd. 499150.37 474900.64
Guangzhou Haixinsha Industrial Co.Other payables 347000.00
Ltd.Zhuhai Dongjiang Environmental
Other payables 13624.00
Protection Technology Co. Ltd.Shenzhen Longgang Dongjiang
Other payables 8429.40 8028.00
Industrial Waste Treatment Co. Ltd.Guangzhou Shengfeng Catering
Other payables 154568.76
Management Service Co. Ltd.Guangdong Xintao Microelectronics
Other payables 20000.00
Co. Ltd.Guangdong Yixin Changcheng
Other payables 20000.00
Construction Group
Contract liabilities
Prosperity Lamps & Components
other current 218729.24
Limited
liabilities
Contract liabilities
other current Primatronix Nanho Technology Ltd. 59428.00 59428.00
liabilities
Other current Guangdong Fenghua Advanced
693580.58339669.91
liabilities Technology (Holding) Co. Ltd.Other current Guangdong Yixin Changcheng
464919.17339220.26
liabilities Construction Group
Other current Guangdong Zhongnan Construction
150000.00
liabilities Co. Ltd.
282Foshan Electrical
Ending carrying Beginning carrying
Project name Related party
amount amount
Other current Guangzhou Haixinsha Industrial Co.
6700000.00
liabilities Ltd.Other current Guangdong Zhongren Group
69483.06
liabilities Construction Co. Ltd
Total 304041246.02 366551937.37
7. Commitments of Related Party
Time of
XIII. Commitment and commitment Term of Performance of
No. Promisor
Contingency making and commitment undertaking
term
Electronics Group
December 04
and Hong Kong Long-term Ongoing
2015
Rising Investment
Rising Holdings November 04
Long-term Ongoing
About avoidance of Group 2021
1
horizontal competition
Rising Holdings
Group Rising
27 October
Capital and Long-term Ongoing
2021
Hongkong Wah
Shing
Electronics Group
December 04
and Hong Kong Long-term Ongoing
2015
Rising Investment
Rising Holdings November 04
About reduction and Long-term Ongoing
Group 2021
2 regulation of related-party
transactions
Rising Holdings
Group Rising
27 October
Capital and Long-term Ongoing
2021
Hongkong Wah
Shing
Electronics Group
December 04
and Hong Kong Long-term Ongoing
2015
Rising Investment
3 About independence
Rising Holdings November 04
Long-term Ongoing
Group 2021
283Foshan Electrical
Rising Holdings
Group Rising
Capital Electronics
About effective Group Hongkong
27 October
4 performance of measures Wah Shing Hong Long-term Ongoing
2021
to fill up returns Kong Rising
Investment and
Shenzhen Rising
Investment
About compensation for
Rising Holdings
possible violations of laws
Group Electronics 27 October
5 and regulations by Long-term Ongoing
Group and Rising 2021
NATIONSTAR
Capital
OPTOELECTRONICS
Rising Holdings
About the truthfulness Group Electronics 27 October Long-term Ongoing
accuracy and Group and Rising 2021
completeness of the Capital
6
information provided
during this major asset Director and senior
restructuring 27 October management office Long-term Ongoing
2021
of FSL
27 October
Electronics Group Long-term Ongoing
2021
About the clarity of the
7 underlying assets of this
major asset restructuring Rising Holdings 27 October
Group and Rising Long-term Ongoing
2021
Capital
About measures to fill up
returns for risks arising Director and senior
27 October
8 from diluting immediate management office Long-term Ongoing
2021
return in major asset of FSL
restructuring
About the measures to fill
up immediate returns Director and senior
14 March
9 diluted by the issuance of management office Long-term Ongoing
2023
A-shares to specific of FSL
objects in 2023
Directors and senior
management of
FSL Rising
About matters on special
Holdings Group 14 March
10 self-inspection of the real Long-term Ongoing
Electronics Group 2023
estate business
Hongkong Wah
Shing Hong Kong
Rising Investment
284Foshan Electrical
About the effective Rising Holdings
fulfilment of measures Group Electronics
taken by controlling Group Hongkong 14 March
11 Long-term Ongoing
shareholders and de facto Wah Shing Hong 2023
controller to fill up Kong Rising
immediate returns Investment
Commitment Letter
Within six
Regarding the Increase in Electronics Group
months
12 Foshan Lighting Shares Hongkong Wah 26 June 2024 Completed
starting from 3
and Subsequent Increase Shing
June 2024.Plans
Within six
Notification Letter months
18 November
13 Regarding the Increase in Electronics Group starting from Ongoing
2024
Foshan Lighting Shares 20 November
2024.
8. Other
None.XV. Share-based Payment
1. The Overall Situation of Share-based Payments
□Applicable □Not applicable
2. Equity-settled Share-based Payments
□Applicable □Not applicable
3. Cash-settled Share-based Payments
□Applicable □Not applicable
4. Share-Based Payment Expenses for the Period
□Applicable □Not applicable
5. Modification and Termination of Share-based Payment
None.
6. Other
None.XVI. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet date
(1) Commitment to cash dividends
Commitment maker: the Company
285Foshan Electrical
Contents of Commitment: The Company’s profit distributed in cash shall not be less than 30% of the
distributable profit realized in the year.Commitment Date: 27 May 2009
Commitment Term: Long-standing
Fulfillment: In execution
2. Commitment to the development of Haikou plot
286Foshan Electrical
In November 2021 Hainan Technology a wholly-owned subsidiary of the Company acquired an
industrial land located in Mei’an Science and Technology New City Haikou with a land area of
34931.13 square meters and a land price of RMB26596784.43. In the same month Hainan
Technology signed the Agreement on Industrial Project Development and Land Access with Haikou
National High-tech Industrial Development Zone Management Committee (hereinafter referred to as
the “Haikou Development Zone Management Committee”). The agreement stipulates that the above-
mentioned plot is used for the development of marine lighting R&D and manufacturing base projects
and the investment of fixed assets is approximately RMB314 million (including plants equipment
and land equivalent to RMB6 million per mu (1 mu equals to 666.67 square meters). Hainan
Technology promises to complete the planning scheme design within two months from the date of
signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land;
complete the construction drawing design within three months after completing the planning scheme
design and obtain the Building Construction Permits and start construction at the same time (subject
to the foundation concrete pouring of the main buildings). The project will be put into production
within 18 months from the date of signing the Confirmation of Listing and Transferring the Right to
Use State-owned Construction Land. From the date of signing the contract to the first year after the
project is put into production the accumulated tax payment is not less than RMB10 million; the
accumulated tax payment in the first two years is not less than RMB27.4 million; the accumulated
tax payment in the first three years is not less than RMB67.1 million; the accumulated tax payment
in the first four years is not less than RMB117 million; the accumulated tax payment in the five years
is not less than RMB203 million. The total industrial output value (or revenue) in the first year after
the project is put into production is not less than RMB218 million; the accumulated value in the first
two years is not less than RMB433 million; the accumulated value in the first three years is not less
than RMB929 million; the accumulated value in the first four years is not less than RMB1578 million;
the accumulated value in the five years is not less than RMB2.62 billion. If the project fails to start
construction within 12 months from the date of signing the Confirmation of Listing and Transferring
the Right to Use State-owned Construction Land due to Hainan Technology reasons the Haikou
Development Zone Management Committee has the right to unilaterally terminate the contract and
the municipal government will recover the land use rights according to law; if the total amount of tax
paid in the year after the project is put into production does not reach the total annual tax payment as
agreed Hainan Technology shall pay liquidated damages to the Haikou Development Zone
Management Committee according to the difference; if Hainan Technology has idle land not due to
government reasons and force majeure the municipal government shall collect idle land fees or
recover the right to use state-owned construction land.As of the date of this report the first phase of
the Hainan Industrial Park has been completed and put into production.
2. Contingency
287Foshan Electrical
(1) Significant Contingency on Balance Sheet Date
a) Litigation between the Company and Yinghe (Shenzhen) Robotics and Automation Technology
Co. Ltd.Yinghe (Shenzhen) Robotics and Automation Technology Co. Ltd. (hereinafter referred to as
“Yinghe Company”) and the Company signed the Construction Contract for the LED Bulb Intelligent
Manufacturing Workshop Project in 2021 the project has not been able to meet the final acceptance
standards. After repeated negotiations both parties failed to reach an agreement Yinghe Company
thus filed a lawsuit with the People’s Court of Chancheng District Foshan City in December 2023
involving a disputed amount of RMB104403700. In January 2024 the Company filed a
counterclaim on the grounds that the project undertaken by Yinghe Company had not reached the
final acceptance standards for two years overdue constituting a fundamental breach of contract
demanding that Yinghe Company refund the contract amount of RMB26904000 and pay a penalty
of RMB26904000 totaling RMB53808000. In September 2024 the Company received the first-
instance judgment from the People’s Court of Chancheng District Foshan City Guangdong Province:
1. The court dismissed all the claims made by Yinghe Company; 2. Yinghe Company is required to
return RMB 26904000 to the Company; 3. Yinghe Company is responsible for the costs of removing
the equipment and systems located in the Foshan Lighting production workshop. Both parties
appealed and in January 2025 the case was heard in the second-instance court. In February 2025
the Company received the second-instance judgment from the Foshan Intermediate People’s Court
Guangdong Province which upheld the original first-instance judgment.b) Litigation matter with Dianbai County Construction Engineering Co. Ltd.Dianbai County Construction Engineering Co. Ltd. as a customer of the Company is involved in a
sales contract dispute with the Company. The Company has filed for arbitration with the Guangzhou
Arbitration Commission with the arbitration amount being RMB24804400. In October 2024 both
parties signed the Settlement Agreement and received an On-Demand Performance Guarantee issued
by China Construction Bank Corporation for Dianbai County Construction Engineering Co. Ltd. In
November of the same year the Company received the Mediation Statement issued by the Guangzhou
Arbitration Commission. As at the reporting date the remaining receivables are still within the
agreement period.c) Litigation Between the Company and China Construction Fourth Engineering Division Installation
Engineering Co. Ltd.China Construction Fourth Engineering Division Installation Engineering Co. Ltd. as a customer of
the Company is involved in a sales contract dispute with the Company. The Company has filed for
arbitration with the Guangzhou Arbitration Commission with the total amount in dispute reaching
RMB18420100. In December 2024 both parties signed a Settlement Agreement. As at the date of
this Report the Arbitration Commission has filed a case which is awaiting scheduling a court hearing.The Company has made a bad debt provision of RMB5855300 based on expected credit losses.d) Litigation Between Sub-subsidiary Chongqing Guinuo and Hasco VISION Technology
(Chongqing) Co. Ltd. & Hasco VISION Technology (Shanghai) Co. Ltd.
Hasco VISION Technology (Chongqing) Co. Ltd. and Hasco VISION Technology (Shanghai) Co.Ltd. as customers of the Company’s sub-subsidiary Chongqing Guinuo are involved in a sales
contract dispute with the subsidiary. Chongqing Guinuo filed a lawsuit with the Yubei District
People’s Court of Chongqing with the total amount in dispute reaching RMB173817000. The first
hearing of the case was held in August 2024 followed by a second hearing in October and a third in
December 2024. During the three hearings the court requested that the legal representatives of both
288Foshan Electrical
parties sign the Application for Settlement Agreement with a mediation period of three months. In
February 2025 Chongqing Guinuo received the first-instance judgment from the Yubei District
People’s Court of Chongqing: all claims filed by Chongqing Guinuo were dismissed. Chongqing
Guinuo filed an appeal based on the first-instance judgment and the court received the appeal
materials from Chongqing Guinuo in March 2025.e) Litigation Between the Company & Its Subsidiary Hainan Technology and China Construction
First Group Corporation Limited
China Construction First Group Corporation Limited (hereinafter referred to as “CCFG”) as a
customer of the Company and its subsidiary Hainan Technology is involved in a sales contract
dispute with both entities. The Company filed for arbitration with the Shanghai Arbitration
Commission with the total amount in dispute reaching RMB14191000. In October 2024 the
Company and its subsidiary Hainan Technology received a Mediation Statement from the Shanghai
Arbitration Commission. The Company and Hainan Technology reached a Settlement Agreement
with China Construction First Group. As at the date of this Report the remaining receivables are still
within the agreement period. The Company has made a bad debt provision of RMB4486500 based
on expected credit losses.f) Litigation Between the Company & Its Subsidiary Kelian and Foshan Centurynet Industrial Park
Investment and Development Co. Ltd.Foshan Centurynet Industrial Park Investment and Development Co. Ltd. (hereinafter referred to as
“Centurynet”) entered into a State-Owned Construction Land Use Right Transfer Contract and a
supplementary agreement with the Foshan Bureau of Land and Resources under which Centurynet
was permitted to divide the acquired land parcel into eight separate plots. In April 2016 Centurynet
signed a State-Owned Construction Land Use Right Transfer Contract with Foshan Kelian New
Energy Technology Co. Ltd. (hereinafter referred to as “Foshan Kelian”) transferring Plot Seven to
Foshan Kelian. In June 2023 the Foshan Bureau of Natural Resources issued a Notice on the Payment
of Liquidated Damages for Delayed Completion to Centurynet regarding Plot FC (G) 2010-017
(Century Binjiang Project) stating that the required completion date for the eight subdivided plots
was 6 August 2017 while the actual completion date was 19 August 2021. As a result Centurynet
was required to pay liquidated damages for delayed completion amounting to RMB55221600. Based
on the notice Centurynet paid the liquidated damages and subsequently filed a lawsuit against the
Company and its subsidiary Foshan Kelian demanding that they bear a proportional share of the
penalty—RMB11449200—as well as RMB100000 in legal fees totaling RMB11549200. When
acquiring Foshan Kelian the Company signed an Equity Transfer Agreement in which the transferor
committed that: if the target company or the transferee incurs any loss claim or legal liability arising
from any matter that occurred prior to the closing date (excluding debts already disclosed in the audit
report) the transferor shall bear joint and several liability and provide compensation to the target
company or the transferee in cash. In December 2024 the Company received litigation documents
served by the court. The first-instance hearing of the case was held in January 2025. As of the date of
this Report the case is still in the first instance procedure.g) Litigation matters between the sub-subsidiary company Chongqing Guinuo and Huayu Visual
Technology (Chongqing) Co. Ltd.There is a lease contract dispute between the sub-subsidiary Chongqing Guinuo and Huayu Vision
Technology (Chongqing) Co. Ltd. (hereinafter referred to as "Huayu Vision"). In December 2023
Hasco VISION filed a lawsuit with the Yubei District People’s Court of Chongqing involving a
disputed amount of RMB10433900. The first instance trial of this case was held in August 2024
followed by a second trial in September of the same year. In November 2024 the People’s Court of
289Foshan Electrical
Yubei District Chongqing issued a civil ruling to suspend the litigation. As of the date of this report
the case is still in a state of first instance suspension.* Land Acquisition Penalty Matter Involving Nanjing Fozhao Lighting Components Manufacturing
Co. Ltd.On 10 July 2020 the People’s Government of Lishui District Nanjing issued the Decision on the
Expropriation of Houses on State-Owned Land for the Lishui District Honglan Subdistrict Affordable
Housing Construction Project (Document No. [2020] 18 of the Nanjing Lishui Government)
deciding to expropriate the land and above-ground structures located at No. 688 Jinniu North Road
Honglan Subdistrict Lishui District Nanjing owned by Nanjing Fozhao Lighting. The expropriation
was to be implemented by Nanjing Lishui District Demolition and Resettlement Co. Ltd. (hereinafter
referred to as the “Demolition Company”). On 15 December 2021 the Demolition Company and
Nanjing Fozhao Lighting entered into the House Expropriation and Compensation Agreement for
State-Owned Land in Lishui District Nanjing stipulating a total compensation amount of
RMB183855900. The agreement required the Demolition Company to make a one-time full
payment within fifteen days after Nanjing Fozhao Lighting vacated the premises. It also was agreed
that the breaching party would be liable to pay liquidated damages calculated at a daily rate of 0.05%
of the compensation amount. On 16 December 2021 Nanjing Fozhao promised to complete the lease
clearance and house handover before 31 May 2022. However the last housing rental enterprise was
actually relocated on 9 September 2024 and the demolition company completed the land and house
reception of the last housing rental enterprise on 7 January 2025. Regarding the land expropriation
matter of Nanjing Fozhao both parties have a dispute over the payment of the remaining amount.The specific details are as follows: The demolition company proposed that the remaining demolition
compensation should be paid after deducting the penalty and other relevant fees for the delayed
delivery of the demolition target by Nanjing Fozhao. Nanjing Fozhao believes that the delay in the
delivery of the demolition target is due to disputes among some tenants over the assessment report
results. Therefore Nanjing Fozhao should not bear all the liability for breach of contract. Moreover
the demolition company should also bear the liability for breach of contract regarding the delay in
paying the remaining compensation to Nanjing Fozhao. As of the date of this announcement the two
parties have not yet reached an agreement on the payment of the remaining compensation the basis
for calculating liquidated damages or the commencement date for such calculations.* Litigation matters between subsidiary NationStar Lighting and Lighthouse Technologies (Huizhou)
Limited and Lighthouse Technologies Limited
NationStar Lighting sued Lighthouse Technologies (Huizhou) Limited and Lighthouse Technologies
Limited (hereinafter referred to as "Lighthouse") for a sales contract dispute involving an amount of
RMB25882900. Among them the book amount of accounts receivable at the end of the period is
RMB25352200 and the interest is RMB530700. The specific basic situation and progress of the
case are as follows:
Lighthouse has been overdue in paying the company’s goods since April 2024 with a total overdue
amount of RMB25352200. In view of this NationStar Lighting filed a lawsuit with the People’s
Court of Chancheng District Foshan City Guangdong Province in November 2024. As of the
disclosure date of this report the case has been filed and the court session was held on 13 March 2025.As of the disclosure date of this report there is no result yet.
290Foshan Electrical
(2) In Despite of no Significant Contingency to Disclose the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other
As of 31 December 2024 mutual guarantees among Liaowang Auto Lamp and its subsidiaries were
as follows (RMB’0000):
Principal
Type of Guarantee Guarantee
No. Principal debtor debtee Guarantor
guarantee amount balance
(Lender)
Nanning Liaowang Auto
Lamp Co. Ltd. Liuzhou
Guige Fuxuan Nanning
Nanning Liaowang Auto
1 Technology Co. Ltd. Branch of Mortgaged 6350.00 3545.95
Lamp Co. Ltd.Liuzhou Guige Lighting Industrial Bank
Technology Co. Ltd.(Note 1)
Nanning
Chongqing Guinuo Chongqing Guinuo
Branch of
2 Lighting Technology Co. Lighting Technology Co. Mortgaged 7000.00 3964.62
Industrial Bank
Ltd. (Note 2) Ltd.Co. Ltd.Nanning Liaowang Auto
Lamp Co. Ltd. Liuzhou
Guige Fuxuan Nanning
Liuzhou Guige Lighting
3 Technology Co. Ltd. Branch of Mortgaged 14300.00 4547.00
Technology Co. Ltd.Liuzhou Guige Lighting Industrial Bank
Technology Co. Ltd.(Note 3)
Total —— —— —— 27650.00 12057.57
Note 1: Liaowang Auto Lamp and Nanning Branch of Industrial Bank signed the Master Agreement
for Domestic Letter of Credit Financing with the number M0120240409000444 borrowing RMB20
million from Nanning Branch of Industrial Bank (term from 15 April 2024 to 9 April 2025). Liaowang
Auto Lamp and Nanning Branch of Industrial Bank entered into the Maximum Financing Agreement
(XYGCBRZZ [2022] No. (01)) to conduct a bill transaction of RMB15459500. Liaowang Auto
Lamp provides mortgage guarantee with the immovable property owned as collateral and the balance
of its creditor’s rights does not exceed the maximum mortgage principal of RMB69139100. The
mortgage amount is valid from 25 April 2022 to 31 December 2025 and the guarantee amount is
RMB63.5 million. The mortgaged real estate is a) YG (2017) N.N.S.B.D.CH. Q.ZH. No. 0065501;
b) E.G. (2017) N.N.S.B.D.CH. Q.ZH. No. 0065499; c) S.G. (2017) N.N.S.B.D.CH. Q.ZH. No.
0065498; d) S.G. (2017) N.N.S.B.D.CH. Q.ZH. No. 0065497.
Note 2: Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Fixed Asset
Loan Contract numbered CQ2023-477 with the contract amount being RMB50 million (term from
21 June 2023 to 20 June 2026). As at 31 December 2023 RMB39646200 had been used. Chongqing
Guinuo entered into two Maximum Amount Mortgage Contracts with Chongqing Branch of Industrial
Bank identified as Contract No. XYYLJGND 2023001 and Contract No. XYYKGGND 2024001.Under these agreements Chongqing Guinuo pledged its real estate assets as collateral to secure debt
obligations with the maximum secured principal amount not exceeding RMB240 million. The
guaranteed amount under the mortgage is RMB70 million. The mortgage contracts are valid from 21
May 2024 to 20 May 2025. The mortgaged real estate is a) Y.Y. (2020) L.J.X.Q.B.D.CH. Q. No.
291Foshan Electrical
000436821 b) E.Y. (2020) L.J.X.Q.B.D.CH. Q. No. 000437330 c) S.Y. (2020) L.J.X.Q.B.D.CH. Q.
No. 000437429 and d) S.Y. (2020) L.J.X.Q.B.D.CH. Q. No. 000437448.Note 3: Liuzhou Guige Photoelectric entered into the Maximum Financing Agreement numbered
XYGCBRZZ (2022) No. (02) with Nanning Branch of Industrial Bank incurring a note business of
RMB45470000. In the guarantee contract Liuzhou Guige provides mortgage guarantee with the
immovable property owned as collateral and the balance of its creditor’s rights does not exceed the
maximum mortgage principal of RMB139943700. The guarantee amount is RMB143 million and
valid from 24 April 2022 to 31 December 2025. The mortgaged real estate is: a) Y.G. (2019) L.ZH.SH.B.D.CH. Q. No. 0191988 located at No. 1 Factory Building No. 12 Hengsi Road Cheyuan; b) E.G.
(2019) L.ZH.SH. B.D.CH. Q. No. 0191991 located in the mould Centre of No. 12 Hengsi Road
Cheyuan; c) S.G. (2019) L.ZH.SH. B.D.CH. Q. No. 0191994 located in the logistics gate guard room
at No. 12 Hengsi Road Cheyuan; d) S.G. (2019) L.ZH.SH. B.D.CH. Q. No. 0191995 located in the
guard room of Gate 12 Hengsi Road Cheyuan.
(2) As at 31 December 2024 the guarantee arrangements of Hule Electric Company were as follows
(RMB’0000):
No Principal Principal Type of Guarante Guarante
Guarantor. debtor debtee (Lender) guarantee e amount e balance
Zhejiang
Agricultural
Hule Electric
Bank of China Zhejiang Hule Electrical
Equipment
1 Limited Equipment Manufacturing Co. Mortgaged 2000.00 1721.96
Manufacture
Jiaxing Nanhu Ltd.Co. Ltd.Sub-branch
(Note 1)
Total —— —— —— 2000.00 1721.96
Note 1: Hule Electric entered into Maximum Amount Mortgage Contract (No. 33100620230099053)
with Jiaxing Nanhu Sub-branch of the Agricultural Bank of China. Under the contract Hule Electric
pledged its real estate assets as collateral to secure debts with the maximum secured principal not
exceeding RMB31.18 million. The guaranteed amount is RMB20 million. The mortgage contract is
valid from 21 August 2023 to 20 August 2028. The mortgaged properties are: a) Property Ownership
Certificate No. 00479600 Nanhu District Jiaxing; b) Property Ownership Certificate No. 00479599
Nanhu District Jiaxing.XVII. Events after Balance Sheet Date
1. Significant Non-adjusted Events
None.
2. Distribution of Profit
Dividend shares to be distributed for every ten shares
1.2
(share)
Based on the share capital of 1535778230 shares per
ten shares is to be distributed to the shareholders with
no bonus issue from either profit or capital reserves.Where any change occurs to the total shares entitled to
Profit distribution plan the final dividend due to grant of share repurchases
equity incentive grants etc. when the final dividend
plan is implemented the dividend per share shall
remain the same while the total payout amount shall be
adjusted accordingly. This profit distribution plan is
292Foshan Electrical
subject to the approval of the Company’s 2024 general
meeting of shareholders before it can be implemented.
3. Sales Return
None.
4. Notes to Other Events after Balance Sheet Date
The Company held the 3rd meeting of the 10th Board of Directors the 3rd meeting of the 10th Board
of Supervisors and the 3rd extraordinary general meeting of shareholders on 29 November 2024 and
16 December 2024 respectively. The meeting approved the Proposal on Cancelling Repurchase
Shares and Reducing Registered Capital agreeing to cancel 13 million A-shares stored in the
repurchase special securities account and correspondingly reduce the Company’s registered capital.After verification and confirmation by China Securities Depository and Clearing Corporation Limited
Shenzhen Branch the cancellation of the Company’s share repurchase has been completed on 10
January 2025 and the total share capital of the Company has been changed from 1548778230 shares
to 1535778230 shares.XVIII Other Significant Events
1. The Accounting Errors Correction in Previous Period
None.
2. Debt Restructuring
No such cases in the Reporting Period.
3. Assets Replacement
None.
4. Pension Plans
In accordance with provisions of Measures for Enterprise Annuity (RSBL No. 36) Measures for
Managing Enterprise Annuity Fund (RSBL No. 11) and other policies the Company has formulated
the Enterprise Annuity Plan of Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as
the “Plan”).The Plan adopts the corporate trusteeship mode. The collected enterprise annuity fund will be
managed by the trustee entrusted by Foshan Electrical and Lighting Co. Ltd. with the Enterprise
Annuity Fund Trusteeship Contract. And the trustee of the enterprise annuity fund will entrust eligible
custodians account managers and investment managers to provide unified related services. The
expenses required shall be jointly borne by the Company and the employees. The payment channels
of the Company shall be implemented according to relevant regulations of the state and the part that
shall be paid by employees themselves will be withheld and paid by the Company from their salaries.The Plan has been filed at Chancheng District Human Resources and Social Security Bureau of
Foshan City and implemented since 1 June 2022. The management of the enterprise annuity fund is
subject to the supervision and inspection of relevant state departments.
5. Discontinued Operations
None.
293Foshan Electrical
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
With the deployment of the Company’s strategic management and the expansion of business
segments operating segments shall be determined based on the requirements of regulatory laws and
regulations company management etc. which are as follows:
* General lighting automotive lamps products segment: General lighting automotive lamps products
segment research and development manufacturing and sales;
* LED packaging and components other products segment: Research and development
manufacturing and sales of LED packaging and components and other products.Inter-segment transfer prices are determined with reference to the prices used for sales to third parties
while assets liabilities and expenses are determined based on the financial data of each segment.
(2) The Financial Information of Reportable Segment
Unit: RMB
General lighting LED packaging and
Offset among
Item and vehicle lamp component products Total
segments
products and other products
1. Operating
5647542159.953472860317.19-72164830.009048237647.14
revenue
II. Cost of sales 4364577494.97 3075005242.32 -72031835.80 7367550901.49
III. Income from
investments to joint
1112039.741580479.75-1580479.751112039.74
ventures and
associates
IV. Credit
-25455021.52-4572189.38342614.49-29684596.41
impairment loss
V. Asset
-33512347.51-32024162.49-142393052.68-207929562.68
impairment loss
VI. Depreciation
and amortization 298403033.61 358689668.58 -762259.87 656330442.32
cost
VII. Total profits 702637040.55 49197986.06 -150886014.73 600949011.88
VIII. Income tax
82646366.35-5177546.31-4919.9177463900.13
expense
IX. Net profits 619990674.20 54375532.37 -150881094.82 523485111.75
X. Total assets 11943999653.72 6249279269.11 -1033515466.19 17159763456.64
XI. Total liabilities 4627223035.73 2425117619.56 -59077292.49 6993263362.80
(3) If there Was no Reportable Segment or the Total Amount of Assets and Liabilities of Each
Reportable Segment Could not Be Reported Relevant Reasons Shall Be Clearly Stated
None.
(4) Other Notes
None.
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
None.
294Foshan Electrical
8. Other
(1) Demolition matters of Nanjing Fozhao
The Company held the 24th Meeting of the Ninth Board of Directors on 15 December 2021 where
the Proposal on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary
Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd. was deliberated and adopted. The
Board of Directors agreed that Nanjing Lishui District People’s Government expropriates the land
use rights and above-land housing of Nanjing Fozhao Lighting a wholly-owned subsidiary of the
Company at a compensation amount of RMB183855900.00 and Nanjing Fozhao signed an
expropriation and compensation agreement with Lishui County House Dismantling Moving &
Resettling Development Co. Ltd. the implementing unit of the housing expropriation. As of 31
December 2023 Nanjing Fozhao has received 30% of the compensation that is RMB55160000.00
and the land use right certificate and house ownership certificate of the assets involved have been
cancelled. As of the date of this Report the site handover is still in progress. After the demolition
work is completed Nanjing Fozhao plans to carry out liquidation and cancellation.As of 7 January
2025 Lishui District Demolition and Resettlement Co. Ltd. of Nanjing had taken possession of all
land and above-ground buildings of Nanjing Fozhao. As of the disclosure date of this report both
parties are still in negotiation regarding the performance of the contract and the payment of the
remaining compensation. After the demolition work is completed Nanjing Fozhao plans to carry out
liquidation and cancellation.
(2) Land acquisition and storage matters
The Company held the 49th meeting of the 9th Board of Directors and the second extraordinary
shareholders' meeting in 2023 on 6 December 2023 and 22 December 2023 respectively and
reviewed and approved the "Proposal on the Disposal of the Company's Assets and the Signing of the
Land Acquisition and Storage Agreement" agreeing that the Company will sign the "Land Reserve
Letter of Intent" with the Zumiao Street Office of Chancheng District Foshan City and the "State-
owned Land Use Right Reserve Agreement" with the Land Reserve Center of Chancheng District
Foshan City and the Zumiao Street Office of Chancheng District Foshan City. After completing the
preliminary land preparation work such as the demolition of the above-ground buildings in
accordance with relevant laws regulations and policies the land at No. 64 Fenjiang North Road
Chancheng District Foshan City will be delivered in batches over three years for account acquisition
and storage. On February 2024 the Company formally signed the "State-owned Land Use Right
Reserve Agreement" with the Land Reserve Center of Chancheng District Foshan City and the
Zumiao Street Office of Chancheng District Foshan City and the Company delivered the land at No.
64 Fenjiang North Road in accordance with the relevant contents of the agreement. On December
2024 the Company received a land acquisition payment of RMB381779100.00 from the Land
Reserve Center of Chancheng District Foshan City and recognized a land acquisition net income
fater tax of RMB 298681100.00.
(3) Application for registration and issuance of SCP by NationStar Optoelectronics
NationStar Optoelectronics reviewed and approved the Proposal on Application for Registration and
Issuance of SCP at the 22nd Meeting of the 5th Board of Directors and the 19th Meeting of the 5th
295Foshan Electrical
Supervisory Committee held on 29 August 2022 and submitted it to the 3rd Extraordinary General
Meeting of 2022 of NationStar Optoelectronics for consideration. On 11 November 2022 the
Company convened the 3rd Extraordinary General Meeting of 2022 to vote on above-mentioned
proposal and agreed the application for registration and issuance of SCP by the Company with the
scale not exceeding RMB1 billion (inclusive). The final registration amount will be subject to the
amount stated in the registration notice of China Interbank Market Dealers Association. The
registration is valid for two years and may be issued multiple times within the registration period with
each issuance period not exceeding 270 days (inclusive). In August 2023 the Company received the
Registration Acceptance Notice (ZSXZ[2023] No. SCP363) of the National Association of Financial
Market Institutional Investors where the Association agreed to the Company’s ultra-short-term
financing bond registration with a registered amount of RMB1 billion. The registration quota is
effective within two years from the date of the notice’s signature allowing the Company to issue
ultra-short-term financing bonds in stages during the effective registration period. The Company has
not yet issued ultra-short-term financing bonds.XIX. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 611829771.52 683345802.12
One to two years 87098817.76 125068556.37
Two to three years 61831224.89 92436464.67
Over three years 89329641.58 28150275.79
Three to four years 68133250.97 6324306.99
Four to five years 5227888.30 4557233.31
Over five years 15968502.31 17268735.49
Total 850089455.75 929001098.95
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Accounts
receivable
withdrawn 97598 55270 423276 162062 13266 293944
11.48%56.63%1.74%81.86%
bad debt 472.58 828.47 44.11 26.20 776.46 9.74
provision
separately
Accounts
receivable
75249
withdrawn 49561 702929 912794 75730 837063
0983.188.52%6.59%98.26%8.30%
bad debt 358.97 624.20 872.75 895.08 977.67
provision by 7
group
Including:
(1) Business
portfolio of 67472
4956162515984375475730768023
general 0665.6 79.37% 7.35% 90.83% 8.98%
lighting and 358.97 306.65 827.55 895.08 932.47 2
auto lamps
296Foshan Electrical
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
(2) Internal
77770777703690400690400
business 9.15% 7.43%
portfolio 317.55 17.55 45.20 45.20
8500810483
74525792900188997840003
Total 9455.7 100.00% 2187.4 12.33% 100.00% 9.58%
268.31098.95671.54427.41
54
Provision for bad debts on an individual basis: RMB55270828.47
Unit: RMB
Beginning balance Ending balance
Name Carrying Bad debt Carrying Bad debt Withdrawal Reason for
amount provision amount provision proportion withdraw
11187337.2 11187337.2 Litigation
Customer A 9129369.60 9129369.60 100.00%
0 0 involved
Dishonest and
high-risk
12462884.4 12462884.4 entities;
Customer B 100.00%
1 1 recovery is
deemed
unlikely.
23650221.623650221.6
Total 9129369.60 9129369.60
11
Provision for bad debts on a portfolio basis: RMB49561358.97
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
(1) Business portfolio of general
674720665.6249561358.977.35%
lighting and auto lamps
(2) Internal business portfolio 77770317.55 0.00%
Total 752490983.17 49561358.97
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts
receivable:
□Applicable □Not applicable
(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
Changes in the current period
Beginning Ending
Category Reversed or
balance Withdrawal Verification Other balance
recovered
Accounts 1326677 25018991. 14781351.0 31766411.3 55270828.4
receivable 6.46 73 4 2 7
297Foshan Electrical
Changes in the current period
Beginning Ending
Category Reversed or
balance Withdrawal Verification Other balance
recovered
withdrawn bad
debt provision
separately
Accounts
receivable -
75730898129876.849561358.9
withdrawn bad 33.28 34299379.7
5.0897
debt provision by 2
group
889976733148868.14781351.0-104832187.
Total 33.28
1.546242532968.4044
Of which bad debt provision collected or reversed with significant amount: None.
(4) Accounts Receivable Written-off in Current Period
Unit: RMB
Item Written-off amount
Accounts receivable actually written off 33.28
Of which verification of significant accounts receivable: None.Notes to verification of accounts receivable:
The amount of accounts receivable written off in this period is RMB33.28 and the provision for bad
debts is RMB33.28 which has been approved in accordance with the Company’s bad debt
management system.
(5) Top 5 of the Ending Balance of the Accounts Receivable and the Contract Assets Collected
according to Arrears Party
Unit: RMB
Ending balance
Proportion to of bad debt
Ending balance total ending provision of
Ending balance Ending balance
Name of the of accounts balance of accounts
of accounts of contract
entity receivable and accounts receivable and
receivable assets
contract assets receivable and impairment
contract assets provision for
contract assets
No. 1 150246356.36 150246356.36 17.60% 4507390.69
No. 2 94272141.84 94272141.84 11.05% 2828164.26
No. 3 51861952.51 51861952.51 6.08% 13525874.66
No. 4 45132663.24 45132663.24 5.29%
No. 5 20804411.54 20804411.54 2.44%
Total 362317525.49 362317525.49 42.46% 20861429.61
2. Other Receivables
Unit: RMB
Item Ending balance Beginning balance
Other receivables 944184445.88 558342534.44
Total 944184445.88 558342534.44
298Foshan Electrical
(1) Interest Receivable
None.
(2) Dividend Receivable
None.
(3) Other Receivables
1) Category of Other Receivables by Account Nature
Unit: RMB
Nature Ending carrying amount Beginning carrying amount
Other current accounts 936571845.70 550330445.91
Export VAT rebates 5974168.41 4708061.84
Performance bonds 5349914.65 5017218.52
Rents and utilities 1283664.90 808434.42
Staff loans and petty cash 482910.18 1267076.22
Total 949662503.84 562131236.91
2) Disclosure by Aging
Unit: RMB
Aging Ending carrying amount Beginning carrying amount
Within one year (including 1 year) 410148181.90 125675552.49
One to two years 109304181.17 40089841.13
Two to three years 37014033.22 393099727.65
Over three years 393196107.55 3266115.64
Three to four years 390960824.47 1588177.54
Four to five years 975961.08 981563.00
Over five years 1259322.00 696375.10
Total 949662503.84 562131236.91
3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
Accounts
receivable
withdrawn
bad debt
provision
separately
Bad debt
provision 9496 5478
100.0094418456213137887558342
withdrawn 6250 057.9 0.58% 100.00% 0.67%
according to % 445.88 236.91 02.47 534.44 3.84 6
groups
Including:
Other
receivables 9496 5478
with bad debt 100.00 944184 562131 37887 558342
6250057.90.58%100.00%0.67%
provision % 445.88 236.91 02.47 534.44
based on a 3.84 6
combination
299Foshan Electrical
Ending balance Beginning balance
Carrying amount Bad debt provision Carrying amount Bad debt provision
Category Carrying Carrying
Withdrawal Withdrawal
Amount Proportion Amount value Amount Proportion Amount value
proportion proportion
of credit risk
characteristics
94965478
100.0094418456213137887558342
Total 6250 057.9 0.58% 100.00% 0.67%
%445.88236.9102.47534.44
3.846
Provision for bad debts on a portfolio basis: RMB5478057.96
Unit: RMB
Ending balance
Name
Carrying amount Bad debt provision Withdrawal proportion
Other receivables with
bad debt provision based
949662503.845478057.960.58%
on a combination of credit
risk characteristics
Total 949662503.84 5478057.96
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
First stage Second stage Third stage
Expected loss in the Expected loss in the
Expected credit loss
Bad debt provision duration (credit duration (credit Total
in the next 12
impairment not impairment
months
occurred) occurred)
Balance of 1
841350.402947352.073788702.47
January 2024
Balance of 1
January 2024 in the
current period
Withdrawal of the
78350.141677072.561755422.70
current period
Verification of the
66067.2166067.21
current period
Balance of 31
919700.544558357.425478057.96
December 2024
The basis for the division of each stage and the withdrawal proportion of bad debt provision
See Note V-13. Accounts Receivable.Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable □Not applicable
4) Bad Debt Provision Withdrawn Reversed or Recovered in the Current Period
Withdrawal of bad debt provision:
Unit: RMB
300Foshan Electrical
Changes in the current period
Beginning Ending
Category Reversed or Charged-
balance Withdrawal Other balance
recovered off/Written-off
Other
3788702.471755422.7066067.215478057.96
receivables
Total 3788702.47 1755422.70 66067.21 5478057.96
Of which the bad debt provision recovered or transferred-back with significant amount during the
current period: None.
5) Particulars of the Actual Verification of Other Receivables during the Current Period
Unit: RMB
Item Written-off amount
Accounts receivable actually written off 66067.21
Of which the verification of significant other receivables: None.Notes to the write-off of other receivables:
The amount of accounts receivable written off in this period is RMB66067.21 and the provision for
bad debts is RMB66067.21 which has been approved in accordance with the company’s bad debt
management system.
6) Top Five of the Ending Balance of Other Receivables Collected according to the Arrears
Party
Unit: RMB
Proportion to
Ending balance
Name of the Ending total ending
Nature Aging of bad debt
entity balance balance of other
provision
receivables %
4731326
No. 1 Internal portfolio Within four years 49.82%
84.41
3268900
No. 2 Internal portfolio Within three years 34.42%
79.21
9147797
No. 3 Internal portfolio Within two years 9.63%
2.61
1588337
No. 4 Other exchanges Within one year 1.67% 1588337.50
5.00
1484084
No. 5 Other exchanges Within one year 1.56% 445225.49
9.57
9222249
Total 97.10% 2033562.99
60.80
7) Presentation in Other Receivables due to the Centralized Management of Funds
None.
3. Long-term Equity Investment
Unit: RMB
Ending balance Beginning balance
Item Carrying Impairment Carrying Carrying Impairment Carrying
amount provision value amount provision value
Investment to 23813554 127478834 22538765 232343542 232343542
subsidiaries 25.91 .25 91.66 5.91 5.91
301Foshan Electrical
Investment to
joint ventures and 180300594 18030059 179188555. 179188555.associated .89 4.89 15 15
enterprises
2561656012747883424341771250262398250262398
Total
20.80.2586.551.061.06
(1) Investment to Subsidiaries
Unit: RMB
Increase/decrease for the current period
Beginning Beginning Ending Ending
Withdrawal
balance balance of balance balance of
Investee Additional Reduced of
(carrying depreciation Other (Carrying depreciation
investment investment impairment
value) reserve value) reserve
provision
Foshan
NationStar 121209 1274788 108461 1274788
Optoelectronics 0245.94 34.25 1411.69 34.25
Co. Ltd.Nanning
493880493880
Liaowang Auto
163.76163.76
Lamp Co. Ltd.Fozhao
(Hainan) 200000 200000
Technology 000.00 000.00
Co. Ltd.Foshan Kelian
New Energy 170000 170000
Technology 000.00 000.00
Co. Ltd.FSL
Chanchang 825073 825073
Lighting Co. 50.00 50.00
Ltd.Nanjing Fozhao
Lighting
720000720000
Components
00.0000.00
Manufacturing
Co. Ltd.Foshan
Electrical &
354184354184
Lighting
39.7639.76
(Xinxiang) Co.Ltd.FSL Zhida
Electric
255000255000
Technology
00.0000.00
Co. Ltd. (FSL
Zhida)
Foshan
Haolaite 166850 166850
Lighting Co. 00.00 00.00
Ltd.Foshan Fozhao
1500003500000500000
Zhicheng
00.000.0000.00
Technology
302Foshan Electrical
Increase/decrease for the current period
Beginning Beginning Ending Ending
Withdrawal
balance balance of balance balance of
Investee Additional Reduced of
(carrying depreciation Other (Carrying depreciation
investment investment impairment
value) reserve value) reserve
provision
Co. Ltd.Foshan Taimei
350000.350000.
Times Lamp
0000
Co. Ltd.Fozhao
Huaguang
2292000229200
(Maoming)
0.0000.00
Technology
Co. Ltd.Foshan Sigma
Venture Capital 4226.45 4226.45
Co. Ltd.
232343579200012747882253871274788
Total
5425.910.0034.256591.6634.25
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Increase/decrease for the current period
Gains and
Beginning Beginning Ending Ending
losses Adjustment of Cash bonus Withdrawal
balance balance of Changes balance balance of
Investee Additional Reduced recognized other or profits of
(carrying depreciation of other Other (Carrying depreciation
investment investment under the comprehensive announced impairment
value) reserve equity value) reserve
equity income to issue provision
method
I. Joint ventures
II. Associated enterprises
Shenzhen
Primatronix 18030
179188111203
(Nanho) 0594.8
Electronics 555.15 9.74
9
Ltd.
18030
179188111203
Subtotal 0594.8
555.159.74
9
18030
179188111203
Total 0594.8
555.159.74
9
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable □Not applicable
The recoverable amount is determined by the present value of the forecasted future cash flows.□Applicable □Not applicable
The reason for the discrepancy between the foregoing information and the information used in the
impairment tests in prior years or external information
None.The reason for the discrepancy between the information used in the Company’s impairment tests in
prior years and the actual situation of those years
None.
303Foshan Electrical
(3) Other Notes
None.
4. Operating Revenue and Cost of Sales
Unit: RMB
Reporting Period Same period of last year
Item
Operating revenue Cost Operating revenue Cost
Main operations 3096917731.64 2377613698.44 3256292066.96 2590772641.09
Other operations 148786564.36 132741166.11 114208143.77 79302538.77
Total 3245704296.00 2510354864.55 3370500210.73 2670075179.86
5. Investment Income
Unit: RMB
Item Reporting Period Same period of last year
Long-term equity investment
37817762.6512959503.50
income accounted by cost method
Long-term equity investment
1112039.741833621.59
income accounted by equity method
Investment income from disposal of
-686145.59
long-term equity investment
Investment income from disposal of
-447400.00-13774175.00
trading financial assets
Dividend income from holding of
28098296.0016633969.35
other equity instrument investment
Interest income from holding of
other investments in debt 28286522.80 5611238.58
obligations
Earnings of debt restructuring -368531.60
Income received from financial
1767053.51
products and structural deposits
Total 94498689.59 24345065.94
6. Other
None.XX. Supplementary Materials
1. Items and Amounts of Non-recurring Gains and Losses
□Applicable □ Not applicable
Unit: RMB
Item Amount Note
Gain or loss on disposal of non-
374276636.74
current assets
Government grants recognised in
profit or loss (exclusive of those
that are closely related to the
Company’s normal business
51867148.37
operations and given in accordance
with defined criteria and in
compliance with government
policies and have a continuing
304Foshan Electrical
Item Amount Note
impact on the Company’s profit or
loss)
Gain or loss on fair value changes in
financial assets and liabilities held
by a non-financial enterprise as
well as on disposal of financial
3881370.83
assets and liabilities (exclusive of
the effective portion of hedges that
is related to the Company’s normal
business operations)
Capital occupation charges on non-
financial enterprises that are 665872.11
recorded into current profit or loss
Reverse of provision for
impairment of accounts receivable
16742832.57
individually conducting impairment
test
Profits arising from business
combination when the combined
cost is less than the recognised fair 2131597.43
value of net assets of the merged
company
Gain or loss on debt restructuring -368531.60
Other non-operating income and
11943647.79
expenses other than the above
Less: Income tax effects 65001245.07
Non-controlling interests effects
47708614.43
(after-tax)
Total 348430714.74 --
Others that meets the definition of non-recurring gains and losses:
□Applicable □Not applicable
There are no other profit and loss items in line with the definition of non-recurring gains and losses
in the Company.Explain the reasons if the Company classifies any non-recurring gains and losses mentioned in the
Explanatory Announcement No.1 on Information Disclosure for Companies Offering Their Securities
to the Public - Exceptional Gain/Loss Items:
□Applicable □Not applicable
2. Return on Equity and Earnings Per Share
EPS (Yuan/share)
Profit as of Reporting Weighted average return
Basic earnings per share
Period on equity (ROE) (%) EPS-diluted
(EPS)-basic
Net profit attributable to
ordinary shareholders of 6.94% 0.2905 0.2881
the Company
Net profit attributable to
ordinary shareholders of
the Company after 1.52% 0.0637 0.0631
deduction of non-
recurring gains and losses
305Foshan Electrical
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 Financial Reporting Standards (IFRS) and Chinese Accounting Standards (CAS)
□Applicable □Not applicable
(2) Differences between Disclosed Net Profits and Net Assets in Financial Report in accordance
with Foreign Accounting Standards and Chinese Accounting Standards (CAS)
□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
□Applicable □Not applicable
4. Other
None.Wan Shan legal representative
Foshan Electrical and Lighting Co. Ltd.
23 April 2025
306
沪公网安备31011802005267号
