粵照明B:2017年半年度報告(英文版)
FOSHANELECTRICALANDLIGHTINGCO.,LTD.
SEMI-ANNUALREPORT2017
August2017
SectionIImportantStatements,ContentsandDefinitions
Theboardofdirectors(the“Board”),thesupervisoryboard(the“SupervisoryBoard”)as
wellasthedirectors,supervisorsandseniormanagementofFoshanElectricalandLighting
Co.,Ltd.(the“Company”)herebyguaranteethefactuality,accuracyandcompletenessofthe
contentsofthisReport,andshallbejointlyandseverallyliableforanyfalserepresentation,
misleadingstatementsormaterialomissionsinthisReport.
HeYong,headoftheCompany,LiuXingming,accountingheadforthisReport,andTang
Qionglan,headoftheaccountingdepartment(headofaccounting),herebyguaranteethatthe
FinancialReportcarriedinthisReportisfactual,accurateandcomplete.
AllthedirectorsattendedtheboardmeetingforthereviewofthisReport.
ThisReportinvolvesfuturesplansandotherforward-lookingstatements,whichshallnotbe
consideredasvirtualpromisestoinvestors.Investorsarekindlyremindedtopayattentionto
possiblerisks.
The Company has described in this Report the risks of fiercer market competition,
fluctuationsinrawmaterialprices,fallingpricesofinventories,exchange ratefluctuations
andbad debts onaccountsreceivable. Pleasereferto“XRisks FacingtheCompanyand
Countermeasures”under“SectionIVPerformanceDiscussionandAnalysis”ofthisReport.
The Company plans notto distribute cash dividends or bonus shares or convert capital
reserveintosharecapital.
TableofContents
Semi-AnnualReport2017...... 1
SectionIImportantStatements,ContentsandDefinitions...... 2
SectionIICorporateProfileandKeyOperatingResults...... 5
SectionIIIBusinessProfile...... 8
SectionIVPerformanceDiscussionandAnalysis......11
SectionVSignificantEvents...... 24
SectionVIShareChangesandShareholders’Profile...... 32
SectionVIIPreferenceShares...... 38
SectionVIIIDirectors,SupervisorsandSeniorManagement...... 39
SectionIXCorporateBonds...... 41
SectionXFinancialReport...... 42
SectionXIDocumentsAvailableforReference...... 155
Definitions
Term Definition
TheCompany,Company,FSL FoshanElectricalandLightingCo.,Ltd.
CSRC TheChinaSecuritiesRegulatoryCommission
SZSE TheShenzhenStockExchange
MeetingofShareholders MeetingofShareholdersofFoshanElectricalandLightingCo.,
Ltd.
Board TheBoardofDirectorsofFoshanElectricalandLightingCo.,Ltd.
SupervisoryBoard TheSupervisoryBoardofFoshanElectricalandLightingCo.,Ltd.
RMB,RMB’0,000 RMByuan,RMBtenthousandyuan
ReportingPeriod January1,2017-June30,2017
SectionIICorporateProfileandKeyOperatingResults
ICorporateInformation
Stockname FSL/FSLB Stockcode 000541/200541
Stockexchange ShenzhenStockExchange
Company name in佛山電器照明股份有限公司
Chinese
Abbr.(ifany) 佛山照明
Company name inFOSHANELECTRICALANDLIGHTINGCO.,LTD
English(ifany)
Abbr.(ifany) FSL
Legalrepresentative HeYong
IIContactInformation
BoardSecretary SecuritiesRepresentative
Name LinYihui HuangYufen
No. 64, Fenjiang North Road,No. 64, Fenjiang North Road,
Address Chancheng District, Foshan City,Chancheng District, Foshan City,
GuangdongProvince,P.R.China GuangdongProvince,P.R.China
Tel. （0757）82810239 （0757）82966028
Fax （0757）82816276 （0757）82816276
E-mail fsl-yh@126.com fslhyf@163.com
IIIOtherInformation
1.WaystoContacttheCompany
Indicatebytickmarkwhetheranychangesoccurtotheregisteredaddress,officeaddressandtheirpostalcodes,
websiteaddressandemailaddressoftheCompanyduringtheReportingPeriod.
□Applicable√Notapplicable
NochangesoccurredtothesaidinformationduringtheReportingPeriod,whichcanbefoundinthe2016Annual
Report.
2.InformationDisclosureMediaandPlacewherethisReportisKept
Indicatebytickmarkwhetheranychangesoccurredtotheinformationdisclosuremediaandtheplacewherethis
ReportwaskeptduringtheReportingPeriod.
□Applicable√Notapplicable
ThenewspapersdesignatedbytheCompanyforinformationdisclosure,thewebsitedesignatedbytheCSRCfor
disclosingthisReportandthelocationwherethisReportwasplaceddidnotchangeduringtheReportingPeriod.
Thesaidinformationcanbefoundinthe2016AnnualReport.
IVKeyOperatingResults
IndicatebytickmarkwhethertheCompanyneedstoretroactivelyrestateanyofitsaccountingdata.
□Yes√No
ReportingPeriod Sameperiodoflastyear +/-(%)
Operatingrevenues(RMB) 2,023,925,582.84 1,755,670,927.44 15.28%
Net profit attributable to 228,494,660.57 206,925,812.72 10.42%
shareholdersoftheCompany(RMB)
Net profit attributable to
shareholdersoftheCompanybefore 227,184,233.70 206,637,093.68 9.94%
exceptionalprofitandloss(RMB)
Net cash from operating activities -31,063,187.22 291,628,307.06 -110.65%
(RMB)
Basicearningspershare 0.1796 0.1627 10.39%
(RMB/share)Dilutedearningspershare 0.1796 0.1627 10.39%(RMB/share)Weightedaveragereturnonequity 4.99% 3.94% 1.05%(%)
EndofReportingPeriod Endoflastyear +/-(%)
Totalassets(RMB) 5,773,132,610.86 6,100,169,400.30 -5.36%
Net assets attributable to 4,707,690,904.27 4,990,466,577.12 -5.67%
shareholdersoftheCompany(RMB)
VDifferencesinAccountingDataunderDomesticandForeignAccountingStandards
1.DifferencesinNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderChineseand
InternationalAccountingStandards
□Applicable√Notapplicable
NosuchdifferencesfortheReportingPeriod.
2.DifferencesinNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderChineseand
ForeignAccountingStandards
□Applicable√Notapplicable
NosuchdifferencesfortheReportingPeriod.
VIExceptionalGains/Losses
√Applicable□Notapplicable
Unit:RMB
Item ReportingPeriod Note
Gains/Losses on disposal of non-current assets -4,255,164.43
(includingoffsetassetimpairmentprovisions)
Government subsidies charged to gains/losses for
ReportingPeriod(exceptforgovernmentgrantsclosely
relatedtobusinessoftheCompanyandgivenatafixed 3,869,949.96
quota or amount in accordance with government’s
uniformstandards)
Non-operatingincomeandexpenseotherthanabove 1,637,836.66
Less:Incometaxeffects -57,390.05
Minorityinterestseffects(aftertax) -414.63
Total 1,310,426.87 --
ExplanationofwhytheCompanyclassifiedanitemasexceptionalgain/lossaccordingtothedefinitioninthe
ExplanatoryAnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothe
Public―ExceptionalGainsandLosses,orreclassifiedanyexceptionalgain/lossitemgivenasanexampleinthe
saidexplanatoryannouncementtorecurrentgain/loss
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
SectionIIIBusinessProfile
IMainBusinessScopefortheReportingPeriod
IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries
No.
1.Mainbusinessandproducts
Wehavebeenengagedinproduction,R&Dandsaleoflightingproductssinceourlisting.Ourproductsmainly
includeLEDlightingproductsandconventionallightingproducts.Wehaveawidevarietyofproductswitha
completerangeofspecifications,includingLEDlightsource,LEDlamps,fluorescentlamps,halogenlamps,
energysavinglamps,motorvehiclelamps,conventionallamps,etc.Withthemostspecificationsinthelighting
industry,ourproductsarewidelyusedforindoorandoutdoorlighting,landscapelighting,motorvehiclelighting
andsoon.Uponyearsofdevelopment,wehavewonquitemanyhonorssuchasthetitleof“TheKingofLamps
inChina”,andour“FSL”and“Fenjiang”brandshavebeencertifiedas“FamousChinaBrands”.
Whilepushingdiversifiedstrategies,theCompanysettheelectricalengineeringbusinessasthenewengineforits
rapiddevelopmentin2016.Basedontheexistingelectricalengineeringequipment,theCompanystrivedto
developelectricalengineeringequipmentcoveringlotsofseriesofelectricalengineeringequipmentandsockets.
Infuture,theCompanywouldmakeeffortstocreateastrategiclayoutwherethedevelopmentoflightingproducts
keepingpacewithelectricalengineeringequipment.
2.Mainbusinessmodel
(1)Procurementmodel
Wemainlyprocurerawmaterialssuchaslampbeads,lampholders,electroniccomponents,aluminumsubstrate,
plasticparts,metalmaterials,quartztubesandfuelbyway ofbidsinvitation.Abidsinvitationsupervisory
committeeconsistingofpersonnelfromseveraldepartmentswillbesetupinthefuture.Foreverykindofour
mainrawmaterials,weusuallyhaveafewsupplierstochoosefrominprocurementsothattheprocurementprices
wouldbefair,thesupplyofrawmaterialsintimeandthegoodqualityoftherawmaterialsensured.
(2)Productionmodels
①Productionoftheconventionalproducts
Concerningtheconventionalproducts,weanalyzesalesofeverymonthandpredictfuturemarketdemandsoasto
formulateaproductionplanforthecomingmonth.Andourworkshopsproduceaccordingtotheplantoavoid
extrastockandatthesametimeensurethatthereisenoughforsale.
②Productionaccordingtoorders
Differentfromtheconventionallightingproductswhichareoflittlevariationinspecifications,LEDlighting
productsareatafastpaceofrenewalanddifferentcustomersoftenhavedifferentrequirementsregardingthe
products’appearancesandperformanceindexes.Therefore,wehavetoorganizeindividualizedproductionfor
someordersforLEDlightingproducts,exportordersinparticular.Forthiskindoforders,weformulateour
productionplansbasedonthemandthenmakeprocurementplansaccordingtotheproductionplans,whichwill
helpeffectivelycontrolthestockandtheprocurementpricesofrawmaterials,reducecapitaloccupationand
improveouroperatingefficiencytothemaximum.
③Combinationofindependentproductionandoutsourcing
Withahighproductioncapacity,weproducemostofourproductsandpartsonourown.Onlyasmallportionof
partsandlow-techproductsisoutsourcedtosub-manufacturers,whowillproduceinstrictaccordancewithour
requirements.Wewillalsotagalongtheirproductionprocessesandexaminecarefullythequalityoftheproducts
finished.Inthisway,oursupplyofproductsisguaranteed.
(3)Salesmodel
Wemainlyadoptacommercialagentmodel,sellingourproductstocommercialagentsthroughvariouschannels
andsettingupbusinessdivisionsunderthesalesdepartmenttofollowuptheuseofourproductsbycustomersand
providerelevantsupport.Interms ofchannels,besidesconsolidatingwholesale,we willalsofocusonthe
developmentoffranchisedstores,illuminationengineering&commerciallighting,e-commerce&retailsalesand
automotivelightingtominimizeourweaknessesinthisrespectandincreaseourmarketshare.
3.Maindrivingforceforbusinessperformance
(1)Rapiddevelopmentoftheindustry
Astheemergingindustryinvolvedinthecountry’sstrategies,LEDindustryrapidlydevelopedintheworldin
recentyearsduetoitsfeaturesofhighefficiencyandenergy-saving,greenenvironmentalprotection,aswellas
longservicelife.ThankstotherapiddevelopmentoftheLEDindustry,theCompanyachievedgoodbusiness
performance.(2)TheCompany’sownadvantagesByrightoftheCompany’sadvantagesintechnology,brand,channel,andscale,theCompanyfirmlygraspedtheopportunitiesbroughtbytheindustry’srapiddevelopment,consistentlypushedforwardthetechnologyupgradeofmainproducts,reinforcedmarketdevelopment,andoptimizedthesalesstructureofproductsthroughsustainableR&Dinputandtechnologyinnovation.Andatthesametime,bymeansofeffectivecontrolonprocurementand
manufacturingcost,theCompanyraisedtheefficiencyofmanagementandproducts,improveditscomprehensive
competitiveness,overcamethedifficultiesandchallengesresultedfromtheseriousmarketsituation,andkeptthe
sustainablegrowthofitsoperatingrevenueandprofit.
IISignificantChangesinMainAssets
1.SignificantChangesinMainAssets
Mainassets Reasonforsignificantchange
Equityassets NosignificantchangesinReportingPeriod
Fixedassets NosignificantchangesinReportingPeriod
Intangibleassets NosignificantchangesinReportingPeriod
Constructioninprogress Up106.16%fromtheopeningamountmainlyduetoincreaseinongoing
constructionprojects
2.MainAssetsOverseas
□Applicable√Notapplicable
IIICoreCompetitivenessAnalysis
IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries
No.
NosignificantchangesoccurredtotheCompany’scorecompetitivenessintheReportingPeriod.Pleasereferto
the2016AnnualReportfordetailsabouttheCompany’scorecompetitiveness.
SectionIVPerformanceDiscussionandAnalysis
ISummary
Thefirsthalfof2017sawChina’seconomyrunningsmoothlyandtheU.S.andEuropeaneconomiesingradual
recovery.Suchastableandpositivemacro-economicenvironmentprovidedasoundbasisforgrowthinthe
lightingindustry.However,theunveilingofthemoststringenteverrealestatecontrolpoliciesinChina,therise
oftradeprotectionismacrosstheworld,heaviercostscausedbyrisingrawmaterialprices,wilderexchangerate
fluctuationsandfiercermarketcompetitionposedquitemanychallengestolightingcompanies.Infaceofthe
complicatedandchangeableenvironmentathomeandabroad,theCompanycloselyadheredtothestrategic
objectivesof“Cutting-EdgeTechnologies,Internationally-FamousBrandsandLarge-ScaleProduction”theBoard
hadputforwardatthebeginningoftheyear,focusedonitsmainbusiness,keptimprovingitsabilitytoinnovate,
strengthenedtheexecutionofitsoverseasexpansionstrategyandcontinuedtoincreaseitsleanmanagementlevel.
Asaresult,theseeffortshavebeenrewardedbystrongoperatingresults.FortheReportingPeriod,theCompany
achieved,onaconsolidatedbasis,operatingrevenuesofRMB2,023.9256million,up15.28%comparedtothe
sameperiod oflastyear; and netprofit attributable to shareholdersof theCompany ofRMB228million,
representingayear-on-yeargrowthof10.42%.
Inthefirsthalfof2017,mainworkarrangementoftheCompanywasasbelow:
1.Strengthenedthecapabilityofinnovation,andimprovedproductsandtechnologyoftheCompany
TheCompanyinputmoreonR&D,continuouslystrengthenedthecapabilityofinnovation,whichincludedthe
accelerationofinnovationonnewproducts,theprincipalofproductdesign,materials,appearance,andsmart
lighting.Atthesametime,theCompanyreservedforbasicandperspectivetechnologicalwork,researchedand
developednewproductswhichwereuser-friendlyandadaptedtothemarketwhileintroducingnewtechnology
andideas,andsustainablyimprovedtheCompany’scompetitivepowerinthemarket.
2.Optimizedproductstructure,andimprovedmarketingcapability
TheCompanycontinuouslyoptimizedproductstructure.Inthereportingperiod,salesrevenueoftheCompany’s
LEDproductsandlampsachievedrapidgrowth，LEDproductsaccountedfor69.55%oftheCompany’smain
productsinsalesrevenuewhileLEDlampstookup45.75%ofLEDproductsinsalesrevenue.andnewproducts
launchedrapidlywonrecognitionbythemarket,rapidlyandwellensuringthegrowthoftheCompany’sbusiness
revenue.
Marketing was the fountain for the Company’s business growth. The Company always valued channel
construction.Indomesticmarketing,theCompanygaveplaytothesynergybetweenthetraditionalandemerging
channels,aswellasexploredanewmodelofofflinesharingandonlinedevelopmentto realizesharingin
throughput,experience,consumption,serviceandbenefits.TheCompanytookadvantageoftheplatformof
E-commerceresources,implementeddifferentiatedpromotion,adoptedthemarketingpatternfocusingonstylish
shopsandorientedbyproducts,soastoavoidhomogeneouscompetitionsamongshops.Advantagedmarkets
wereconsolidatedandweakmarketswerebrokenthroughviaintegrationofdifferentresources.Inrespectof
overseasseassales, theCompanyreinforced theexecutionof overseasdevelopment strategy,continuously
exploredoverseasmarketbyrelyingonitsownleadingbrandsintheindustry,excellentproductquality,aswell
asprofessionalservice,andasaresult,realizedfastgrowthofsalesrevenueinoverseasmarket.IntheReporting
Period,businessrevenuesoftheCompanyinoverseasmarketreachedRMB762.3427million,representinga
year-on-yearincreaseof30.89%.
3.Positivelyexplorednewbusinesses,andrapidlydevelopedelectricaltechnology
TheCompanyhaspositivelyenlargednewbusinessofelectricaltechnologyeversincethesubsidiaryforelectrical
technologywasfounded in Octoberoflastyear.By meansofsustainablyenrichingproduct series,stably
enlargingproductionscale,enlargingsaleschannels, andstrengthening brandpromotion,thebrandofFSL
ElectricalTechnologywonmoreandmorerecognitionfromconsumers.IntheReportingPeriod,productsof
electricaltechnologyachievedbusinessrevenueofRMB66.7346million,showingtheremarkabledevelopmentof
electricaltechnologybusiness.
4.Strengthenedcostcontrol,andimprovedprofitability
Withtheriseofmaterialcost,theCompanyfacedwithseriouscostpressure.Onlybykeepingandenlargingcost
advantagescantheCompanykeepimprovingcompetitivepower.Viatakingahardlookandanalysisontheraw
materialmarket,theCompanyincreasedqualifiedsuppliers,establishedperfectprocurementdatabase,expanded
thebiddingrange,improvedthetimelinessratioofmaterial delivery,andcutdownprocurementcost;The
Companycutdownproductcostandimprovedproductionratiobymeansofimprovingthelevelofautomation,
intellectualization, and informatization, as well as technology transformation and technique upgrade. The
Companyaswellfoundoutadvantagesanddisadvantagesofeveryworkshopanddepartmentandstrengthened
thecrisisawarenesstowardscostineveryworkshopanddepartmentbycomparingandanalyzinginternaland
externalcostcompetitions.
IIAnalysisofMainBusiness
Year-on-yearchangesofkeyfinancialdata:
Unit:RMB
Reporting Sameperiodoflast
+/-% Mainreasonforchange
Period/Period-End year/Period-Beginning
Operatingrevenues 2,023,925,582.84 1,755,670,927.44 15.28%
Operatingcosts 1,546,931,779.85 1,322,982,560.70 16.93%
Sellingexpense 81,651,993.69 73,251,807.41 11.47%
Administrativeexpense 98,790,821.60 82,117,827.94 20.30%
Financecosts -7,115,907.36 -6,445,753.04 -10.40%
Incometaxes 42,597,501.35 39,425,977.29 8.04%
R&Dexpense 57,719,395.64 60,464,243.71 -4.54%
Payment of taxes and
expenses on gains from
Guoxuan High-tech
Netcashfromoperating
-31,063,187.22 291,628,307.06 -110.65%shareholdingssoldinfourth
activities
quarterof2016,aswellas
paymentofyear-endbonuses
andexpensesfor2016
Smallerincrementinbanks’
Netcashfrominvesting
-112,026,375.71 -429,601,884.64 73.92%wealthmanagementproducts
activities
purchased
Significantincreaseincash
Netcashfromfinancing
-522,068,416.83 -15,935,708.57 -3,176.09%dividendsdistributedinthis
activities
yearthanlastyear
Decrease in net cash
Netincreaseincashand
-664,245,623.25 -152,952,917.79 -334.28%generatedbybothoperating
cashequivalents
andfinancingactivities
Distribution of cash
Monetaryfunds 815,038,019.29 1,479,283,642.54 -44.90%
dividendsinthisyear
More banker’s acceptance
billsreceivedwereendorsed
Notesreceivable 26,434,680.74 67,925,843.74 -61.08%
andusedtopaytosuppliers
intheReportingPeriod
Increasedoperatingrevenues
Accountsreceivable 862,433,866.95 595,257,954.00 44.88%and adjustments to credit
termsofdomesticcustomers
Interestreceivable 3,217,917.15 4,612,406.80 -30.23%Decrease in undue interest
receivablefrombank
VATandexporttaxrebates
Otheraccounts
36,016,476.65 11,977,660.58 200.70%receivableinthe Reporting
receivable
Period
Increased investment in
Constructioninprogress 147,360,531.44 71,479,325.91 106.16%expansion of plants in
Gaoming
Theincome taxpayableon
thegainsonthesaleofthe
Company’sshareholdingsin
Taxesandfarespayable 24,371,207.42 138,282,644.72 -82.38%
Guoxuan High-tech in
4Q2016 was paid in the
ReportingPeriod
Distributionofdividendsby
Dividendspayable 6,287,923.09 -100.00%subsidiariesintheReporting
Period
Decrease in other current
Otheraccountspayable 32,185,577.54 50,104,338.81 -35.76%
accountspayable
Thevehicleandvesseluse
tax,etc.havebeenincluded
in the item of taxes and
Taxesandsurtaxes 20,386,602.33 12,251,578.46 66.40%
surtaxessinceMay1,2016
aspertheCS[2016]No.22
Document
Decreaseininventoryfalling
Assetimpairmentlosses 24,059,719.35 35,853,373.83 -32.89%
priceprovisions
Increase in governmental
Non-operatingrevenue 6,022,395.88 1,575,016.58 282.37%
subsidiesreceived
Minorityinterestincome 3,390,315.67 -313,550.46 1,181.27%Earningsofnewsubsidiary
Decreased shareholdings in
Guoxuan High-tech due to
Othercomprehensive
23,025,471.14 140,317,778.68 -83.59%the sale of some such
income,netoftax
shareholdingsattheendof
lastyear
MajorchangestotheprofitstructureorsourcesoftheCompanyintheReportingPeriod:
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
Breakdownofmainbusiness:
Unit:RMB
Operating Operatingcost Grossprofit Operating Operatingcost: Grossprofit
revenue margin revenue:YoY YoY+/-% margin:YoY
+/-% +/-%
Bybusinesssegment
Lighting fixtures
2,010,535,149.651,537,416,165.51 23.53% 15.34% 16.89% -1.01%
andlamps
Byproduct
Traditional
545,447,386.30 407,164,404.38 25.35% -20.29% -17.88% -2.19%
lightingproducts
LED 1,398,353,192.601,083,319,624.12 22.53% 32.07% 32.20% -0.07%
Electrical
66,734,570.75 46,932,137.01 29.67% 29.67%
equipment
Bygeographicsegment
Domestic 1,248,192,434.54 919,009,019.04 26.37% 7.54% 6.17% 0.95%
Overseas 762,342,715.11 618,407,146.47 18.88% 30.89% 37.54% -3.92%
IIINon-CoreBusinessAnalysis
√Applicable□Notapplicable
Unit:RMB
Asapercentageof
Amount Source/reason Recurring(yes/no)
totalprofit(%)
Gainsonpurchased bank’swealth
Investmentincome 14,009,282.02 5.10%managementproducts&receiptofNo
bonusesfrominvestees
Bad-debtandinventoryfallingprice
Assetimpairment 24,059,719.35 8.77% No
provisions
Non-operating Governmentsubsidiesreceivedand
6,022,395.88 2.19% No
revenue others
Disposalofcertainoldequipment
Non-operating 4,769,773.69 1.74%forproducingtraditionallighting Noexpense
products
IVAnalysisofAssetsandLiabilities
1.SignificantChangesinAssetComposition
Unit:RMB
EndofReportingPeriod Endofsameperiodoflastyear Changein
percentageMainreasonforsignificantchange
Amount Asa Amount Asa (%)
percentage percentageof
oftotal totalassets
assets(%) (%)
Monetaryfunds 815,038,019.29 14.12% 788,093,190.58 12.92% 1.20%
Increasedoperatingrevenuesand
Accounts
862,433,866.95 14.94% 636,149,148.03 10.43% 4.51%adjustments to credit terms of
receivable
domesticcustomers
Inventories 733,151,791.00 12.70% 467,975,082.84 7.67% 5.03%Stocksforexpectedgrowthinsales
TheCompanyacquireda32.85%
Long-termequity stake in Primatronix (Nanho)
209,858,507.98 3.64% 362,997.40 0.01% 3.63%
investments Electronics Ltd. at RMB0.18
billioninSeptember2016
Fixedassets 436,897,311.33 7.57% 454,154,610.43 7.44% 0.13%
Constructionin Increasedinvestmentinexpansion
147,360,531.44 2.55% 59,026,683.56 0.97% 1.58%
progress ofplantsinGaoming
2.AssetsandLiabilitiesMeasuredatFairValue
√Applicable□Notapplicable
Unit:RMB
Gains/Losses
Impairment
onfairvalue Cumulativefair Purchasedin Soldin
providedin
Item Openingbalance changesin valuechanges Reporting Reporting Closingbalance
Reporting
Reporting chargedtoequity Period Period
Period
Period
Financialassets
3.
Available-for-s 1,427,901,096.63 1,335,488,158.79 1,454,989,886.20ale financialassets
Subtotalof
1,427,901,096.63 1,335,488,158.79 1,454,989,886.20
financialassets
Totalofabove 1,427,901,096.63 1,335,488,158.79 1,454,989,886.20
Financial
0.00 0.00
liabilities
SignificantchangesinthemeasurementattributesofthemainassetsintheReportingPeriod:
□Yes√No
3.RestrictedAssetRightsasofEndoftheReportingPeriod
None.
VInvestmentsMade
1.TotalInvestmentsMade
√Applicable□Notapplicable
InvestmentsmadeinReportingPeriod Investmentsmadeinsameperiodoflast
+/-%
(RMB) year(RMB)
0.00 0.00 0.00%
2.SignificantEquityInvestmentsMadeinReportingPeriod
□Applicable√Notapplicable
3.SignificantNon-EquityInvestmentsOngoinginReportingPeriod
□Applicable√Notapplicable
4.FinancialInvestments
(1)SecuritiesInvestments
√Applicable□Notapplicable
Gains/L
ossesonCumulat Source
Variety Account fair ivefair Purchas Soldin Gains/lo
CodeofNameof Initial ing Opening value value edin ssesin Closing of
of measure book changeschanges Reporti Reporti Reporti book Account
securitiesecuritieinvestm ng investm
securitie ment value in charged ng Period ng value ingtitle
s s entcost model Reporti to Period Period ent
s ng equity
funds
Period
Availabl
Guoxua The
Domesti Fair 1,355,3 1,284,0 1,379,8e-for-sal
n 160,000 6,560,4 Compan
c/overse002074 value 83,288. 23,552. 75,532.e y’sown
High-tec ,000.00 22.50
asstock method 49 91 50financia
h funds
lasset
Availabl
The
Domesti China Fair e-for-sal
30,828, 72,517, 51,464, 75,114,3 Compan
c/overse601818 Everbrig value e y’sown
816.00 808.14 605.88 53.70
asstock htBank method financia
funds
lasset
DomestiN/A Xiamen 292,574Cost 292,574 292,574AvailablThe
c/overse Bank ,133.00method ,133.00 ,133.00e-for-salCompan
asstock e y’sown
financiafunds
lasset
FoshanbranchAvailabl
of The
Domesti e-for-sal
Guangd 500,000Cost 500,000 500,000 Compan
c/overseN/A e y’sown
ong .00method .00 .00
asstock financia
Develop funds
lasset
mentBank 1,720,9 1,335,4 1,748,0 483,902 6,560,4Total -- 75,229. 0.00 88,158. 0.00 0.00 64,019. -- -- ,949.00 22.50 63 79 20Disclosure date ofannouncement aboutBoard’s consent forsecuritiesinvestmentDisclosure date ofannouncement aboutshareholders’ meeting’sconsent for securitiesinvestment(ifany)(2)InvestmentsinDerivativeFinancialInstruments□Applicable√NotapplicableNosuchcasesintheReportingPeriod.VISaleofMajorAssetsandEquityInterests1.SaleofMajorAssets□Applicable√NotapplicableNosuchcasesintheReportingPeriod.2.SaleofMajorEquityInterests□Applicable√NotapplicableVIIMainControlledandJointStockCompanies
√Applicable□Notapplicable
Mainsubsidiariesandjointstockcompanieswithanover10%influenceontheCompany’snetprofit
Unit:RMB
Relationship Main
Company business Industry Registered Operating Operating
withthe Totalassets Netassets Netprofit
name scope capital revenues profit
CompanyFoshan
Chansheng
Production Manufactur1,000,000.049,096,096.27,773,852.94,306,931.4,281,244
Electronic Subsidiary 3,202,584.42
andsale ing 0 50 21 11 .13
BallastCo.,
Ltd.
Foshan
Chanchang
Electric Production Manufactur72,782,944. 117,233,75 105,493,9533,103,172.-396,774.
Subsidiary -469,196.52
Appliances andsale ing 00 3.56 6.88 26 48
(Gaoming)
Co.,Ltd.
Foshan
Taimei
Production Manufactur 76,944,367.18,767,030.82,641,917.2,672,291
Times Subsidiary 500,000.00 2,008,910.10
andsale ing 45 70 32 .32
Lamps Co.,
Ltd.
FSL New
Light
Production Manufactur50,000,000.56,156,822.54,286,950.10,896,024.616,824.6
Source Subsidiary 462,618.52
andsale ing 00 20 64 16 9
Technology
Co.,Ltd.
FSL
(Xinxiang) Production Manufactur35,418,439.53,443,977.46,831,237.34,493,532.3,261,603
Subsidiary 2,460,437.77
Lighting andsale ing 76 33 13 79 .94
Co.,Ltd.
Guangdong
Fozhao
Finance 200,000,00 226,514,30 226,054,87 3,513,522
Financing Subsidiary Finance 2,635,142.21
lease 0.00 6.85 8.31 .95
Lease Co.,
Ltd.
FSL
Production Manufactur15,000,000.59,572,326.48,857,908.67,134,518.8,073,552
Lighting Subsidiary 3,774,392.16
andsale ing 00 75 17 91 .47
Equipment
Co.,Ltd.
Nanjing
Fozhao
Lighting
Production Manufactur41,683,200.74,488,836.48,486,156.20,772,449.4,050,560
Component Subsidiary 3,021,091.70
andsale ing 00 01 75 65 .72
s
Manufacturi
ngCo.,Ltd.
FSLZhida
Electric Production Manufactur50,000,000. 101,535,5441,149,536.66,773,802.7,584,601
Subsidiary 5,689,066.62
Technology andsale ing 00 1.93 53 15 .88
Co.,Ltd.
SubsidiariesobtainedordisposedintheReportingPeriod:
□Applicable√Notapplicable
Informationaboutthemaincontrolledandjointstockcompanies:
―FoshanChanshengElectronicBallastCo.,Ltd.wasinvestedandestablishedbytheCompanyandMr.Ma
Henglaiandhadsetupandobtainedlicenseforbusinesscorporationon26Aug.2003.TheCompanyholds75%
equitiesofthesaidcompany; thereforethesaidsubsidiarywasincludedinto thescopeoftheconsolidated
financialstatementssincethedateoffoundation.
On24Dec. 2013,theCompanyandMr.MaHenglaisigned theequitytransfer agreement.The Company
purchased25%equityofFoshanChanshengElectronicBallastCo.,Ltd.heldbyMr.MaHenglai.Afterthe
purchasing,theCompanyheld100%equityofFoshanChanshengElectronicBallastCo.,Ltd.
―FoshanChanchangElectricAppliances(Gaoming)Co.,Ltd.,whichisaSino-foreignjointventureinvestedand
establishedbytheCompanyandProsperityLamps andComponentsLtd,hadobtainedlicense forbusiness
corporationon23Aug.2005throughapprovalbyForeignTradeandEconomicCooperationBureauofGaoming
District,Foshanwithdocument“MWJMYZi[2005]No.79”.TheCompanyholds70%equitiesofthesaid
company;thereforethesaidsubsidiarywasincludedintothescopeoftheconsolidatedfinancialstatementssince
thedateoffoundation.
On23Aug.2016,theCompanyandProsperityLampsandComponentsLtdsignedtheequitytransferagreement.
TheCompanypurchased30%equityofFoshanChanchangElectricAppliances(Gaoming)Co.,Ltd.heldby
Prosperity Lamps and ComponentsLtd. After the purchasing,theCompany held 100% equity ofFoshan
ChanchangElectricAppliances(Gaoming)Co.,Ltd.
―FoshanTaimeiTimesLampsCo.,Ltd.,whichisaSino-foreignjointventureinvestedandestablishedbythe
CompanyandRebackNorthAmericaInvestmentLimited,hadobtainedlicenseforBusinessCorporationon5
Dec.2005throughapprovalbyForeignTradeandEconomicCooperationBureauofGaomingDistrict,Foshan
withdocument“MWJMYZi[2005]No.97”.TheCompanyholds70%equitiesofthesaidcompany;therefore
thesaidsubsidiary was includedinto thescope oftheconsolidated financialstatements sincethedate of
foundation.
―FSLNewLightSourceTechnologyCo.,Ltd.(itspredecessorwas“FoshanLightingLampsandLanternsCo.,
Ltd.”anditchangeditsnameto“FSLNewLightSourceTechnologyCo.,Ltd.”on17Dec.2014),whichis
investedandestablishedbytheCompanytogetherwithFoshanHaozhiyuanTradingCo.,Ltd.,ShanghaiLiangqi
ElectricCo.,Ltd,ChangzhouSanfengElectrical&LightingCo.,Ltd.,HenanXingchenElectrical&LightingCo.,
Ltd.,FoshanHongbangElectrical&LightingCo.,Ltd.,HebeiJinfenTradingCo.,Ltd.,obtainingitslicensefor
BusinessCorporationon27Sept.2009.TheCompanyholds60%equitiesofthiscompany.Thereforethesaid
subsidiarywasincludedintothescopeoftheconsolidatedfinancialstatementssincethedateoffoundation.
On25Sep.2009and19Nov.2010,theequitytransferagreementwassignedbetweentheCompanyandthe
minorityshareholders, inwhich theminority shareholdersrespectively transferred theirequities ofFoshan
LightingLampsandLanternsCo.,Ltd.totheCompany.Aftertransfer,theCompanyholds100%equitiesof
FoshanLightingLampsandLanternsCo.,Ltd.
―FSL(Xinxiang)LightingCo.,Ltd.isalimitedliabilitycompanywhichisinvestedandestablishedbythe
Company,obtainingitslicenseforBusinessCorporationon17Apr.2009.TheCompanyholds100%equitiesof
thesaid company, thereforethe saidsubsidiary was included intothe scopeof theconsolidated financial
statementssincedateoffoundation.On27Aug.2013,the3rdSessionofthe7thBoardofDirectorsreviewedand
approvedtoinvestanotherRMB2million(landinanindustrialparkinXinxiang,HenanProvinceandmonetary
funds)in FSL(Xinxiang) Lighting,increasing theregistered capital of FSL(Xinxiang) Lightingto RMB
35,418,439.76.―FSLLightingEquipmentCo.,Ltd.isalimitedliabilitycompanyinvestedandestablishedbytheCompanywiththeregisteredcapitalofRMB15million,whichhadobtaineditslicenseforBusinessCorporationon8May2013.AndtheCompanyholds100%equitiesofthiscompany.Thereforethesaidsubsidiarywasincludedintothescopeoftheconsolidatedfinancialstatementssincethedateoffoundation.―InaccordancewiththeequitytransferagreementsignedbetweentheCompanyandProsperityLampsandComponentsLtd.on27Aug.2008,ProsperityLampsandComponentsLtd.transferred100%equitiesofNanjingFozhaoLighting Components Manufacturing Co., Ltd. (formerly knownas“Prosperity (Nanjing)LightingComponentsCo.,Ltd.”,andchangednameto“NanjingFozhaoLightingComponentsManufacturingCo.,Ltd.”on15Nov.2010.)totheCompany.Therefore,NanjingFozhaoLightingComponentsManufacturingCo.,Ltd.becameawholly-ownedsubsidiaryoftheCompany.Thesaidsubsidiarywasincludedintothescopeoftheconsolidatedfinancialstatementssincethemergerdate.―FSLZhidaElectricTechnologyCo.,Ltd.(FSLZhida)wasincorporatedbytheCompany,FoshanZhibidaEnterpriseManagementCo.,Ltd.andDongguanBaidaSemiconductorMaterialCo.,Ltd.onajointinvestmentbasis.FSLZhidaobtaineditsbusinesslicenseonOctober21,2016.Holdingastakeof51%init,theCompanyhasincludedFSLZhidainitsconsolidatedfinancialstatementssincethedateofFSLZhida’sincorporation.VIIIStructuredBodiesControlledbytheCompany□Applicable√NotapplicableIXPerformanceForecastforJanuary-September2017Warning of possible loss or considerable YoY change in the accumulative net profit made during theperiod-beginningtotheendofthenextreportingperiod,aswellasthereasons:□Applicable√NotapplicableXRisksFacingtheCompanyandCountermeasures
1.Risksfromintensifiedmarketcompetition
Frommacroscopicaspects,withthedescendingofspeedincreaseofdomesticinvestment,releaseofproperty
tighteningpolicies,internationaltradeprotectionismandturmoilofpoliticalpattern,aswellastheinfluencesof
otherfactors,theindustrymayfacetheriskofinsufficientgrowthmomentum.Fromindustryaspects,asan
industrywithsufficientcompetitions,lightingapplicationfieldisnotonlyunderthecompetitionsfromcompanies
oforiginalapplicationfield,butalsounderthecompetitionsfromLEDupstreamandmidstreamcorecompanies
andpackagingenterprisesgraduallyextendingtolightingapplicationfield,infuture,ifmarketcompetitionfurther
getsincreased,negativeinfluencesontheCompany’sprofitabilitymaybegenerated.
Solutions:TheCompanywillfocusonmainbusiness.Throughincreasingresearch&developmentinvestment
constantly,theCompanywillimprovetechnicalinnovationabilityandaddedvalueofproducts;continuetogive
playtothecostadvantagesinproductmanufacturingandimprovesupplyabilityofhigh-qualityproducts.Atthe
sametime,byoptimizingmarketingnetwork,theCompanywillimprovebrandimage,improveservicequality,
intensifycustomerrelationshipmanagementandincreasecorecompetitivecapacityofthecompanyconstantly.
2.Risksfrompricefluctuationofrawmaterials
TherawmaterialcostoftheCompany’sproductsaccountsforabout67.98%oftheoperatingcost,mainraw
materialsincludelampbeads,electronicpartsandcomponents,aluminumsubstrates,metalmaterials,lampholder,
packingmaterials,chemicalmaterialsandfueletc.,whichmeansthepricefluctuationofmainrawmaterialswill
causesignificantimpactontheCompany’sproductioncosts.Infuture,ifpriceofrawmaterialshasfluctuationby
alargemargin,theCompany’sprofitabilitymayhavefluctuationaswell.
Solutions:Byincreasingquantityofqualifiedsuppliers,expandingbiddingandtenderingrange,perfectingsupply
chainmanagement,payingattentionto marketdynamics,collecting information, analyzingandpre-judging
supplyofmainrawmaterialsandpricetrend,theCompanycandecreaseprocurementcosts;byimproving
automatic,intelligentproductionlevelandbyimplementingtechnicaltransformation,technologyimprovement
andothermeasures,theCompanycanimproveproductionefficiencyandreduceproductcost;byintensifying
productiontechnologyandfieldmanagement,theCompanycancontrolproductcosts.
3.Risksoflossfromfallinginventoryprice
Atthe endoftheReportingPeriod, thenetvalueoftheCompany’s inventorywas RMB733.1518million,
accountingfor24.68%ofthecurrentassets,theinventorymainlycontainsrawmaterials,semi-finishedproducts
andfinishedproductsetc.Asthere’replentyofproductcategoriesandmodelsintheCompany,theamountof
inventoryvalueisrelativelyhigh. WiththeincreaseoftheCompany’ssalesrevenueyearbyyear,theraw
materialsandinventorycommoditiesreservedforproductionandsaleswillsimultaneouslyincrease,leadingto
higherleveloftheCompany’sinventory.Ifthere’rechangesinpriceordemandinrawmaterialmarketand
productsalesmarket,therisksoflossfromfallinginventorypriceoftheCompanymayhappen.
Solutions:TheCompanycanintensifytheanalysisofsalesandchangeinfuturemarketdemand,onthebasisof
assuringproductionandsales,theCompanycancontrolinventoryscalereasonably.
4.Risksfromfluctuationoftheexchangerate
TheRMBexchangerateinChinaisbasedonmarketsupplyanddemand,abasketofcurrenciesforadjustment
andmanagedfloatingexchangeratesystemasreference.Withthefluctuationoftheworldeconomy,thetense
upgradeofsomehotspots,aswellasthecurrencypoliciesindifferentcountries,thefluctuationofexchangerate
willbecaused.TheexportbusinessoftheCompanyaccountsfor37%oftheCompany’swholebusinessandthe
scaleisenlarging yearbyyear.Ifthere’slarge fluctuation oftheexchangerate, theCompany’s business
performancewillbeaffected.
Solutions:Byintensifyingsettlementcurrencymanagement,knowingthechangesineconomicpoliciesofthe
area,exchangeratepoliciesandfluctuationtrendofsettlementcurrenciesintime,choosingtousegoodsettlement
currencies,theCompanycanweakentherisksbroughtbyfluctuationofexchangerateasmuchaspossible.
5.Risksfrombaddebtsofaccountsreceivable
WiththeenlargementoftheCompany’ssalesvolume,theamountofaccountsreceivablehasincreased.Themain
debitcustomersoftheCompanyarelong-termhigh-qualitycustomerswithmanyyearsofcooperationandgood
businessreputation.Iffinancialstatusofmaindebtorshasmajorunfavorablechanges,risksfrombaddebtsof
accountsreceivablemaybecaused.
Solutions:Byperfectingcreditfileofcustomers,evaluatingcreditstatusofcustomersregularly,adoptingmethod
ofpledgeofcustomers’ assets,theCompany canreducerisksfrom baddebts ofaccountsreceivable.By
strengtheningthemanagementofapprovalofcontract, theCompanycanavoidlegal risksincurredduring
implementationofcontract. TheCompanycanreinforcethemanagementandcollection effortsofaccounts
receivable, implement pre-warning treatment for accounts receivable with upcoming deadline during
implementation,andanalyzeandreportaccountsreceivableregularly.
SectionVSignificantEvents
IAnnualandSpecialMeetingsofShareholdersConvenedduringtheReportingPeriod
1.MeetingsofShareholdersConvenedduringtheReportingPeriod
Investor Indextodisclosed
Meeting Type Conveneddate Disclosuredate
participationratio information
Announcement No.
2017-016 on
2016 Annual Resolutionsof2016
Meeting ofAnnual 38.71%04/26/2017 04/27/2017 Annual Meeting of
Shareholders Shareholders
disclosed on
www.cninfo.com.cn
2.SpecialMeetingsofShareholdersConvenedatRequestofPreferenceShareholderswithResumedVoting
Rights
□Applicable√Notapplicable
IIProposalforProfitDistributionandConvertingCapitalReserveintoShareCapitalforthe
ReportingPeriod
□Applicable√Notapplicable
FortheReportingPeriod,theCompanyplansnottodistributecashdividendsorbonussharesorconvertcapital
reserveintosharecapital.
IIICommitmentsof theCompany’sActualController, Shareholders,Related Partiesand
Acquirer,aswellastheCompanyandOtherCommitmentMakers,FulfilledintheReporting
PeriodorstillOngoingatPeriod-End
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
IVEngagementandDisengagementofCPAsFirm
Hasthesemi-annualfinancialreportbeenaudited
□Yes√No
ThisSemi-AnnualReportisunaudited.
VExplanationsGivenbyBoardofDirectorsand SupervisoryBoardRegarding“Modified
Auditor’sReport”IssuedbyCPAsFirmfortheReportingPeriod
□Applicable√Notapplicable
VIExplanationsGivenbyBoardofDirectorsRegarding“ModifiedAuditor’sReport”Issued
forLastYear
□Applicable√Notapplicable
VIIBankruptcyandRestructuring
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
VIIILegalMatters
Significantlawsuitsorarbitrations:
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
Otherlegalmatters:
□Applicable√Notapplicable
IXPunishmentsandRectifications
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
XCredit Conditions of the Company aswell asits Controlling Shareholder and Actual
Controller√Applicable□NotapplicableIntheReportingPeriod,thecontrollingshareholderandactualcontrolleroftheCompanywereinagoodcreditposition,withoutunsatisfiedcourtjudgments,large-amountoverdueliabilitiesorthelike.XIEquityIncentivePlans,EmployeeStockOwnershipPlansorOtherIncentiveMeasuresforEmployees□Applicable√NotapplicableNosuchcasesintheReportingPeriod.XIISignificantRelatedTransactions
1.RelatedTransactionsRelevanttoRoutineOperations
√Applicable□Notapplicable
Obtaina
Asa
ble
percenta
Approve market Index
geof
Relation Content d Over Method pricefor to
Related Typeof Pricing Price total
withthe sof Transact(RMB’0 transactiapprove of same-tyDisclosudisclos
transacti transacti principl valueof
Compan transacti ionprice online dlineorsettleme pe redate ed
onparty on e ,000) same-ty (RMB’0
y on not nt transacti inform
pe
,000) on ation
transacti (RMB’0
ons
,000)
Purchasi SharehongProsperi
lderthatproducts
ty
holds and Purchas
Lamps www.c
over5%receivin e ofMarket Remitta 03/30/2
& 67.05 67.05 0.06% 200Not 67.05 ninfo.c
shares g labormaterialprice nce 017
Compon om.cn
of theservice s
ents
Companfrom
Limited
y related
partyPurchasingProsperiEnterpriproductsty se
and Purchas
Electric controll www.c
receivin e ofMarket Remitta 03/30/2
al ed by -3.21 -3.21 0.00% 600Not -3.21 ninfo.c
g labormaterialprice nce 017
(China) related om.cn
service s
Co., individu
fromLtd. al
relatedpartyHangzh PurchasiEnterpriou ngse
Times productsPurchas
controll www.c
Lighting and e ofMarket Remitta 03/30/2
ed by 113.87 113.87 0.09% 300Not 113.87 ninfo.c
and receivin materialprice nce 017
related om.cn
Electric g labors
individual Co., serviceal
Ltd. from
relatedpartyPurchasingFoshan
productsNationSUnder and Purchastar same www.c receivin e ofMarket Remitta 03/30/2Optoele actual 3,897.29 3.22% 20,000Not ninfo.c g labormaterialprice 3,897.29 nce 3,897.29017ctronics controll om.cn service sCo., er
fromLtd.
relatedpartyPurchasiGuangd ngong productsUnderFenghua and Purchas same www.cAdvanc receivin e ofMarket Remitta 03/30/2 actual 410.04 410.04 0.34% 900Not 410.04 ninfo.ced g labormaterialprice nce 017 controll om.cnHolding service ser
Co., from
Ltd. related
partyPurchasiGuangd ngong productsUnderHuayue and Purchassamebao receivin e ofMarket Remitta actual 93.34 93.34 0.08% Not 93.34 N/ANew g labormaterialprice ncecontrollEnergy service ser
Co., from
Ltd. related
partySellingSharehoProsperi products lderthatty andholdsLamps providin www.c over5% Selling Market Remitta 03/30/2& g labor 1,482.06 0.73% 3,000Not ninfo.c shares productsprice 1,482.06 nce 1,482.06017Compon service om.cn of theents toCompanLimited relatedy
partyProsperiEnterpriSelling Selling Market Remitta 03/30/2 www.c 3.86 3.86 0.00% 50Not 3.86ty se productsproductsprice nce 017 ninfo.c(Hangzhcontroll and om.cn
ou) ed byprovidin
Lightingrelated g labor
and individuservice
Electric al to
al Co., related
Ltd. party
SellingProsperiEnterpriproductsty se andElectric controll providin www.c Selling Market Remitta 03/30/2al ed byg labor 17.77 17.77 0.01% 50Not 17.77 ninfo.c productsprice nce 017(China) related service om.cnCo., individutoLtd. al relatedpartySellingFoshan productsNationSUnder andtar same providin www.c Selling Market Remitta 03/30/2Optoele actual g labor 0.34 0.34 0.00% 50Not 0.34 ninfo.c productsprice nce 017ctronics controll service om.cnCo., er toLtd. relatedpartySellingHangzh
Enterpriproducts
ou
se and
Times
controll providin
Lighting Selling Market Remitta
ed byg labor 2.59 2.59 0.00% Not 2.59 N/A
and productsprice nce
related service
Electric
individuto
al Co.,
al related
Ltd.
partyTotal -- -- 6,085 -- 25,150 -- -- -- -- --Detailsoflarge-amountsalesreturn N/AGive the actual situation in theInMarch2017,theCompanypredictedthetotalvalueofitsroutinetransactionswithrelatedReportingPeriod (ifany) whereapartiesFoshanNationStarOptoelectronicsCo.,Ltd.,GuangdongFenghuaAdvancedHoldingforecasthadbeenmadeforthetotalCo.,Ltd.,ProsperityLamps&ComponentsLimited,ProsperityElectrical(China)Co.,Ltd.,valueofroutinerelatedtransactionsProsperity(Hangzhou)LightingandElectricalCo.,Ltd.andHangzhouTimesLightingandbytypetooccurintheReportingElectricalCo.,Ltd.Concerningthepurchasesfromitsrelatedparties,theactualamountinPeriod 2017wasRMB45.7837million,accountingfor20.81%ofthepredicted.Asforthesalesto itsrelatedparties,theactualamountin2017wasRMB15.0661million,accounting for
47.83%ofthepredicted.
Reason for significant difference
betweentransactionpriceandmarketN/A
referenceprice(ifapplicable)
2.RelatedTransactionsRegardingPurchaseorSalesofAssetsorEquityInterests
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
3.RelatedTransactionsRegardingJointInvestmentsinThirdParties
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
4.CreditsandLiabilitieswithRelatedParties
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
5.OtherSignificantRelatedTransactions
√Applicable□Notapplicable
OnDecember23,2016,theCompanyheldthe11thmeetingofthe8thBoardofDirectors,andtheProposalon
SigningtheFinancialServicesAgreementwithGuangdongRisingFinanceCo.,Ltd.wasexaminedandapproved
atthemeeting.Onthesameday,theCompanysignedtheFinancialServicesAgreementwithGuangdongRising
FinanceCo.,Ltd.(hereinafterreferredtoas“RisingFinance”),andRisingFinancewouldprovidedepositand
settlementservicesfortheCompany.DuringthetermofvalidityoftheAgreement,thedailydepositbalanceof
theCompanyinRisingFinanceCompanyshallnotexceedRMB150million.TheAgreementhasexpiredonJune
22,2017.
OnJune28,2017,theCompanyheldthe15thmeetingofthe8thBoardofDirectors,andtheProposalonSigning
theFinancialServicesAgreementwithGuangdongRisingFinanceCo.,Ltd.wasexaminedandapprovedatthe
meeting.Assuch,theCompanyrenewedtheFinancialServicesAgreementwithRisingFinance,andRising
FinancewouldprovidedepositandsettlementservicesfortheCompanyforatermofoneyear,duringwhichthe
dailydepositbalanceoftheCompanyinRisingFinanceCompanyshallnotexceedRMB150million.
Indextothecurrentannouncementsaboutthesaidrelatedtransactionsdisclosed:
Titleofannouncement Disclosuredate Disclosurewebsite
AnnouncementonSigningFinancialService
AgreementwithGuangdongRising Finance12/24/2016 www.cninfo.com.cn
Co.,Ltd.
AnnouncementonRenewingFinancialService
AgreementwithGuangdongRising Finance06/29/2017 www.cninfo.com.cn
Co.,Ltd.
XIIIOccupationoftheCompany’sFundsbyControllingShareholderorItsRelatedParties
forNon-OperatingPurposes
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
XIVSignificantContractsandTheirExecution
1.Entrustment,ContractingandLeasing
(1)Entrustment
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
(2)Contracting
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
(3)Leasing
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
2.SignificantGuarantees
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
3.OtherSignificantContracts
□Applicable√Notapplicable
NosuchcasesintheReportingPeriod.
XVSocialResponsibilities
1.TargetedMeasuresTakentoHelpPeopleLiftThemselvesoutofPoverty
TheCompanydidnottakesuchmeasuresinthefirsthalfoftheyearandhasnosuchplansfornow.
2.MaterialEnvironmentalIssues
IstheCompanyoranyofitssubsidiariesaheavilypollutingbusinessdeclaredbyenvironmentalprotection
authorities
No.
XVIOtherSignificantEvents
√Applicable□Notapplicable
OnJune27,2017,theCompanysignedanEquityTransferAgreementwithKEDACleanEnergyCo.,Ltd.,
transferringtheCompany’s38%stakeinQinghaiFozhaoLithiumEnergyExploitationCo.,Ltd.tothelatterfor
RMB189.8176million.Afterthetransfer,theCompanywouldnolongerholdequityinterestinQinghaiFozhao
LithiumEnergyExploitationCo.,Ltd.Asoftheendofthefirsthalfof2017,theCompanyhadneitherreceived
thetransferpaymentnorstartedthetransferformalitieswiththecompetentauthority,whichisincompliancewith
theEquityTransferAgreement.
XVIISignificantEventsofSubsidiaries
□Applicable√Notapplicable
SectionVIShareChangesandShareholders’Profile
IShareChanges
1.ShareChanges
Unit:share
Before Increase/decrease(+/-) After
Increase
Number Percentag New Bonus from Other Subtotal Number Percentag
e(%) issues shares capital e(%)
reserve
12,522,47 12,582,00
1.Restrictedshares 0.98% 59,524 59,524 0.99%
9 3
1.3 Sharesheldby other
4,406,450 0.34% 59,524 59,5244,465,974 0.35%
domesticinvestors
Amongwhich:Sharesheld
3,860,675 0.30% 3,860,675 0.30%
bydomesticcorporations
Shares held
545,775 0.04% 59,524 59,524 605,299 0.05%
bydomesticindividuals
1.4Sharesheldbyforeign
8,116,029 0.64% 8,116,029 0.64%
investors
Shares held
8,116,029 0.64% 8,116,029 0.64%
byforeignindividuals
1,259,610, 1,259,550
99.02% -59,524 -59,524 99.01%
2.Non-restrictedshares 389 ,865
974,940,0 974,879,5
2.1RMBcommonshares 76.64% -60,499 -60,499 76.63%
45 46
2.2 Domestically listed 284,670,3 284,671,3
22.38% 975 975 22.38%
foreignshares 44 19
1,272,132, 1,272,132
3.Totalshares 100.00% 100.00%
868 ,868
Reasonsforanysharechanges:
√Applicable□Notapplicable
1.DuringtheReportingPeriod,somesupervisorsandexecutiveofficersincreasedtheirshareholdingsinthe
Company,representinganincreaseof91049restrictedshares.
2.DuringtheReportingPeriod,theCompany’ssharesheldbysomeformerexecutiveofficerswhohadstayed
unemployedbytheCompanyforsixmonthswereunlocked,resultinginanincrementof31525non-restricted
shares.
3.DuetoItem1and2above,theCompany’srestrictedsharesincreasedby59524sharesintheReportingPeriod.
Approvalofsharechanges:
□Applicable√Notapplicable
Transferofshareownership:
□Applicable√Notapplicable
EffectsofsharechangesonthebasicEPS,dilutedEPS,netassetspershareattributabletocommonshareholders
oftheCompanyandotherfinancialindexesoftheprioryearandthepriorperiod:
□Applicable√Notapplicable
OthercontentsthattheCompanyconsidersnecessaryorisrequiredbythesecuritiesregulatoryauthoritiesto
disclose:
□Applicable√Notapplicable
2.ChangesinRestrictedShares
√Applicable□Notapplicable
Unit:share
Reasonfor
Nameof Opening Unlockedin Increasedin Closingrestricted
lock-up/unlockinDateofunlocking
shareholder restrictedshares ReportingPeriod ReportingPeriod shares
g
Lock-up of
LiuXingming 359,073 0 21,450 380,523executive Uncertain
officer’sshares
Lock-up of
TangQionglan 0 0 12,150 12,150executive Uncertain
officer’sshares
WeiBin 25,627 0 9,975 35,602Lock-up ofUncertain
executive
officer’sshares
Lock-up of
ChenYu 12,870 0 7,500 20,370executive Uncertain
officer’sshares
Lock-up of
JiaoZhigang 31,083 0 9,375 40,458executive Uncertain
officer’sshares
Lock-up of
XuXiaoping 0 0 7,575 7,575executive Uncertain
officer’sshares
Lock-up of
ZhangYong 18,720 0 7,275 25,995executive Uncertain
officer’sshares
Lock-up of
ZhangXuequan 9,908 0 10,125 20,033executive Uncertain
officer’sshares
Lock-up of
YeZhenghong 33,696 0 5,625 39,321supervisor’s Uncertain
shares
Expiration of
lock-up of
XieQing 31,525 31,525 0 0outgoing 05/24/2017
executive
officer’sshares
Total 522,502 31,525 91,050 582,027 -- --
IIIssuanceandListingofSecurities
□Applicable√Notapplicable
IIIShareholdersandTheirHoldingsatPeriod-End
Unit:share
Total number of preference
Total number of common shareholders with resumed
93,117 0
shareholdersatperiod-end votingrights at period-end(if
any)(seenote8)
5%orgreatercommonshareholdersortop10commonshareholders
Nameof Natureof Shareholdin Total Increase/deRestrictedNon-restricted Pledgedorfrozenshares
shareholder shareholder gpercentage common creasein common common Status Number
sharesheldat Reporting shares sharesheldat
period-end Period heldat period-end
period-en
d
Hong Kong
Wah Shing
ForeignHolding 13.47% 171,360,391 171,360,391Pledged 83,966,592corporationCompany
Limited
Prosperity
Lamps &Foreign
10.50% 133,577,143 133,577,143
Components corporation
Limited
Shenzhen
Rising
State-ownedInvestment 5.12% 65,178,305 65,178,305corporationDevelopment
Co.,Ltd.
Guangdong
Electronics
State-ownedInformation 4.74% 60,357,728 60,357,728Pledged 29,575,287corporationIndustry GroupLtd.
Central Huijin
Asset State-owned
2.42% 30,799,000 30,799,000
Management corporation
Co.,Ltd.
Essence
International
ForeignSecurities 1.91% 24,277,429 24,277,429corporation(Hong Kong)Co.,Ltd.
DBSVickers
Foreign(HongKong) 1.86% 23,645,755 23,645,755corporationLtdA/CClientsHong KongRising
ForeignInvestment 1.82% 23,165,684 23,165,684corporationDevelopment
Co.,Ltd.
ZhuangJianyi Foreign 0.85% 10,821,372 8,116,029 2,705,343
individualChina
Merchants Foreign
0.84% 10,686,856 10,686,856
Securities(HK)corporation
Co.,Limited
Strategic investors or general
corporations becoming top-10
common shareholders due toN/A
placingofnewshares(ifany)
(seeNote3)
Amongthetop10shareholders,HongKongWahShingHoldingCompanyLimited,Shenzhen
RisingInvestmentDevelopmentCo.,Ltd.,GuangdongElectronicsInformationIndustryGroup
Related or acting-in-concertLtd.andHongKongRisingInvestmentDevelopmentCo.,Ltd.areacting-in-concertparties;and
parties among shareholdersProsperityLamps&ComponentsLimitedandZhuangJianyiareacting-in-concertparties.Apart
above fromthat,itisunknownwhetherthereisamongthetop10shareholdersanyotherrelatedparties
oracting-in-concertpartiesasdefinedintheAdministrativeMeasuresfortheAcquisitionof
ListedCompanies.
Top10non-restrictedcommonshareholders
Typeofshares
Nameofshareholder Non-restrictedcommonsharesheldatperiod-end
Type Number
Hong Kong Wah Shing Holding RMB common
171,360,391 171,360,391
CompanyLimited share
Prosperity Lamps& Components RMB common
133,577,143 133,577,143
Limited share
Shenzhen Rising Investment RMB common
65,178,305 65,178,305
DevelopmentCo.,Ltd. share
GuangdongElectronicsInformation RMB common
60,357,728 60,357,728
IndustryGroupLtd. share
Central HuijinAssetManagement RMB common
30,799,000 30,799,000
Co.,Ltd. share
Domestically
Essence International Securities
24,277,429listed foreign 24,277,429
(HongKong)Co.,Ltd.
share
Domestically
DBSVickers(HongKong)LtdA/C
23,645,755listed foreign 23,645,755
Clients
share
Domestically
Hong Kong Rising Investment
23,165,684listed foreign 23,165,684
DevelopmentCo.,Ltd.
share
ChinaMerchantsSecurities(HK) 10,686,856Domestically 10,686,856
Co.,Limited listed foreign
share
GuangdongRisingFinanceHolding RMB common
6,876,386 6,876,386
Co.,Ltd. share
Amongthetop10non-restrictedcommonshareholders,HongKongWahShingHolding
Relatedoracting-in-concertparties
Company Limited, Shenzhen Rising Investment Development Co., Ltd., Guangdong
among top 10 non-restricted
ElectronicsInformationIndustryGroupLtd.,HongKongRisingInvestmentDevelopment
common shareholders,as well as
Co.,Ltd.andGuangdongRisingFinanceHoldingCo.,Ltd.areacting-in-concertparties.
between top 10 non-restricted
Apartfromthat,itisunknownwhetherthereisamongthetop10shareholdersanyother
common shareholdersandtop10
relatedpartiesoracting-in-concertpartiesasdefinedintheAdministrativeMeasuresforthe
commonshareholders
AcquisitionofListedCompanies.
Top 10 common shareholders
conductingsecuritiesmargintradingN/A
(ifany)(seenote4)
Indicatebytickmarkwhetheranyofthetop10commonshareholdersorthetop10non-restrictedcommon
shareholdersoftheCompanyconductedanypromissoryrepoduringtheReportingPeriod.
□Yea√No
NosuchcasesintheReportingPeriod.
IVChangeofControllingShareholderorActualControllerinReportingPeriod
ChangeofthecontrollingshareholderintheReportingPeriod:
□Applicable√Notapplicable
ThecontrollingshareholderremainedthesameintheReportingPeriod.
ChangeoftheactualcontrollerintheReportingPeriod:
□Applicable√Notapplicable
TheactualcontrollerremainedthesameintheReportingPeriod.
SectionVIIPreferenceShares
□Applicable√Notapplicable
NopreferencesharesintheReportingPeriod.
SectionVIIIDirectors,SupervisorsandSeniorManagement
IChangesinShareholdingsofDirectors,SupervisorsandSeniorManagement
√Applicable□Notapplicable
Restricted
Decrease Granted
Increasein shares Granted
Opening in Closing restricted
Incumbent Reporting grantedin restrictedshares
Name Officetitle shareholdi Reporting shareholdi sharesat
/Former Period Reporting atperiod-end
ng(share) Period ng(share) period-begin
(share) Period (share)
(share) ning(share)
(share)
Director&
Liu
General Incumbent 478,764 28,600 507,364
Xingming
ManagerBoardLinYihui Incumbent 13,000 16,600 29,600SecretaryTang
CFO Incumbent 0 16,200 16,200
Qionglan
ViceWeiBin General Incumbent 34,169 13,300 47,469ManagerViceJiao
General Incumbent 41,444 12,500 53,944
Zhigang
ManagerViceChenYu General Incumbent 17,160 10,000 27,160ManagerViceXu
General Incumbent 0 10,100 10,100
Xiaoping
ManagerViceZhang
General Incumbent 24,960 9,700 34,660
Yong
ManagerViceZhang
General Incumbent 13,211 13,500 26,711
Xuequan
ManagerYe
Zhenghon SupervisorIncumbent 44,928 7,500 52,428
g
Total -- -- 667,636 138,000 0 805,636 0 0 0
IIChangesinDirectors,SupervisorsandSeniorManagement
□Applicable√Notapplicable
TheCompany’sdirectors,supervisorsandseniormanagementremainedunchangedintheReportingPeriod.
Pleaserefertothe2016AnnualReportfordetailsaboutthem.
SectionIXCorporateBonds
DoestheCompanyhaveanycorporatebondspubliclyofferedandlistedonthestockexchange,whichwereundue
beforetheapprovaldateofthisReportorwereduebutcouldnotberedeemedinfull
No.
SectionXFinancialReport
IAuditor’sReport
Hasthissemi-annualfinancialreportbeenaudited
□Yes√No
Thissemi-annualfinancialreportisunaudited.
IIFinancialStatements
Currencyunitforthestatementsinthenotestothesefinancialstatements:RMB
1.ConsolidatedBalanceSheet
PreparedbyFoshanElectricalandLightingCo.,Ltd.
June30,2017
Unit:RMB
Item Closingbalance Openingbalance
Currentassets:
Monetaryfunds 815,038,019.29 1,479,283,642.54
Settlementreserve
Interbanklendings
Financialassetsatfairvaluethrough
gains/losses
Derivativefinancialassets
Notesreceivable 26,434,680.74 67,925,843.74
Accountsreceivable 862,433,866.95 595,257,954.00
Accountspaidinadvance 27,685,018.96 30,292,007.11
Premiumsreceivable
Reinsurancepremiumsreceivable
Receivable reinsurance contract
reserve
Interestreceivable 3,217,917.15 4,612,406.80
Dividendsreceivable
Otheraccountsreceivable 36,016,476.65 11,977,660.58
Financial assets purchased under
agreementstoresell
Inventories 733,151,791.00 753,681,605.19
Assetsheldforsale
Non-current assetsdue within one
year
Othercurrentassets 466,262,718.17 441,205,461.72
Totalcurrentassets 2,970,240,488.91 3,384,236,581.68
Non-currentassets:
Loansandadvancestocustomers
Available-for-salefinancialassets 1,758,739,646.36 1,732,150,857.01
Held-to-maturityinvestments
Long-termaccountsreceivable
Long-termequityinvestments 209,858,507.98 210,394,932.69
Investmentproperty
Fixedassets 436,897,311.33 446,006,929.66
Constructioninprogress 147,360,531.44 71,479,325.91
Engineeringmaterials
Disposaloffixedassets
Productivelivingassets
Oil-gasassets
Intangibleassets 158,172,586.28 160,330,395.13
R&Dexpense
Goodwill
Long-termdeferredexpense 6,932,911.30 6,897,119.78
Deferredincometaxassets 40,730,492.66 43,547,918.44
Othernon-currentassets 44,200,134.60 45,125,340.00
Totalnon-currentassets 2,802,892,121.95 2,715,932,818.62
Totalassets 5,773,132,610.86 6,100,169,400.30
Currentliabilities:
Short-termborrowings
BorrowingsfromCentralBank
Money deposits accepted and
inter-bankdeposits
Interbankborrowings
Financial liabilities at fair value
throughgains/losses
Derivativefinancialliabilities
Notespayable
Accountspayable 673,397,021.27 552,255,512.33
Accountsreceivedinadvance 32,657,976.85 41,180,818.13
Financialassetssoldforrepurchase
Feesandcommissionspayable
Payrollpayable 68,383,359.33 96,021,156.06
Taxespayable 24,371,207.42 138,282,644.72
Interestpayable
Dividendspayable 6,287,923.09
Otheraccountspayable 32,185,577.54 50,104,338.81
Reinsurancepremiumspayable
Insurancecontractreserve
Payables for acting trading of
securities
Payablesforactingunderwritingof
securities
Liabilitiesheldforsale
Non-currentliabilitiesduewithinone
year
Othercurrentliabilities
Totalcurrentliabilities 830,995,142.41 884,132,393.14
Non-currentliabilities:
Long-termborrowings
Bondspayable
Ofwhich:Preferenceshares
Perpetualbonds
Long-termaccountspayable
Long-termpayrollpayable
Specialpayables
Provisions
Deferredincome 11,872,268.53 10,449,768.49
Deferredincometaxliabilities 204,175,913.54 200,112,595.11
Othernon-currentliabilities
Totalnon-currentliabilities 216,048,182.07 210,562,363.60
Totalliabilities 1,047,043,324.48 1,094,694,756.74
Owners’equity:
Sharecapital 1,272,132,868.00 1,272,132,868.00
Otherequityinstruments
Ofwhich:Preferenceshares
Perpetualbonds
Capitalreserve 285,821,459.07 285,821,459.07
Less:Treasuryshares
Othercomprehensiveincome 1,156,996,843.39 1,133,971,372.25
Specialreserve
Surplusreserve 733,924,951.81 733,924,951.81
Provisionsforgeneralrisks
Retainedearnings 1,258,814,782.00 1,564,615,925.99
Equity attributable to ownersof the
4,707,690,904.27 4,990,466,577.12
Company(asparentcompany)
Minorityinterests 18,398,382.11 15,008,066.44
Totalowners’equity 4,726,089,286.38 5,005,474,643.56
Totalliabilitiesandowners’equity 5,773,132,610.86 6,100,169,400.30
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
2.BalanceSheetoftheCompany(asParentCompany)
Unit:RMB
Item Closingbalance Openingbalance
Currentassets:
Monetaryfunds 621,028,793.79 1,235,417,964.88
Financialassetsatfairvaluethrough
gains/losses
Derivativefinancialassets
Notesreceivable 25,648,653.72 66,222,840.44
Accountsreceivable 865,936,526.24 611,855,496.90
Accountspaidinadvance 78,575,487.30 117,217,953.23
Interestreceivable 2,187,889.37 3,590,629.01
Dividendsreceivable 14,671,820.57
Otheraccountsreceivable 63,730,648.45 56,714,849.84
Inventories 665,648,682.97 717,097,516.25
Assetsheldforsale
Non-current assetsdue within one
year
Othercurrentassets 349,066,845.84 379,932,325.87
Totalcurrentassets 2,671,823,527.68 3,202,721,396.99
Non-currentassets:
Available-for-salefinancialassets 1,758,739,646.36 1,732,150,857.01
Held-to-maturityinvestments
Long-termaccountsreceivable
Long-termequityinvestments 693,455,797.74 693,992,222.45
Investmentproperty
Fixedassets 361,704,762.30 375,075,102.44
Constructioninprogress 145,061,164.42 69,589,510.14
Engineeringmaterials
Disposaloffixedassets
Productivelivingassets
Oil-gasassets
Intangibleassets 114,634,684.40 117,017,633.92
R&Dexpenses
Goodwill
Long-termdeferredexpense 6,932,911.30 6,897,119.78
Deferredincometaxassets 35,219,760.73 37,790,043.38
Othernon-currentassets 43,580,346.60 44,519,790.00
Totalnon-currentassets 3,159,329,073.85 3,077,032,279.12
Totalassets 5,831,152,601.53 6,279,753,676.11
Currentliabilities:
Short-termborrowings
Financial liabilities at fair value
throughgains/losses
Derivativefinancialliabilities
Notespayable
Accountspayable 844,733,659.24 701,814,818.26
Accountsreceivedinadvance 31,405,141.81 38,406,798.91
Payrollpayable 36,517,295.06 66,764,581.34
Taxespayable 11,957,006.39 121,939,572.62
Interestpayable
Dividendspayable
Otheraccountspayable 112,053,963.76 258,368,416.59
Liabilitiesheldforsale
Non-currentliabilitiesduewithinone
year
Othercurrentliabilities
Totalcurrentliabilities 1,036,667,066.26 1,187,294,187.72
Non-currentliabilities:
Long-termborrowings
Bondspayable
Ofwhich:Preferenceshares
Perpetualbonds
Long-termpayables
Long-termpayrollpayable
Specialpayables
Provisions
Deferredincome 11,484,768.34 9,984,768.34
Deferredincometaxliabilities 204,175,913.54 200,112,595.11
Othernon-currentliabilities
Totalnon-currentliabilities 215,660,681.88 210,097,363.45
Totalliabilities 1,252,327,748.14 1,397,391,551.17
Owners’equity:
Sharecapital 1,272,132,868.00 1,272,132,868.00
Otherequityinstruments
Ofwhich:Preferenceshares
Perpetualbonds
Capitalreserve 293,425,065.15 293,425,065.15
Less:Treasuryshares
Othercomprehensiveincome 1,156,996,843.39 1,133,971,372.25
Specialreserve
Surplusreserve 733,924,951.81 733,924,951.81
Retainedearnings 1,122,345,125.04 1,448,907,867.73
Totalowners’equity 4,578,824,853.39 4,882,362,124.94
Totalliabilitiesandowners’equity 5,831,152,601.53 6,279,753,676.11
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
3.ConsolidatedIncomeStatement
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
1.Operatingrevenues 2,023,925,582.84 1,755,670,927.44
Including:Salesrevenue 2,023,925,582.84 1,755,670,927.44
Interestrevenue
Premiumrevenue
Feeandcommissionrevenue
2.Operatingcosts 1,764,705,009.46 1,520,011,395.30
Including:Costofsales 1,546,931,779.85 1,322,982,560.70
Interestexpense
Feeandcommissionexpense
Surrenders Netclaimspaid Netamountprovidedasinsurancecontractreserve Expenditureonpolicydividends Reinsurancepremiumexpense Taxesandsurtaxes 20,386,602.33 12,251,578.46 Sellingexpense 81,651,993.69 73,251,807.41 Administrativeexpense 98,790,821.60 82,117,827.94 Financecosts -7,115,907.36 -6,445,753.04 Assetimpairmentlosses 24,059,719.35 35,853,373.83Add:Gainsonfairvalue changes(“-”meanslosses)
Investment income (“-” means
14,009,282.02 13,720,747.77
losses)
Including:Shareofgains/lossesof
1,543,965.79 -19,640.12
associatesandjointventures
Exchangegains(“-”meanslosses)
Othergains
3.Operatingprofit(“-”meansloss) 273,229,855.40 249,380,279.91
Add:Non-operatingincome 6,022,395.88 1,575,016.58
Including:Gainsondisposal of
20,253.97
non-currentassets
Less:Non-operatingexpense 4,769,773.69 4,917,056.94
Including:Lossesondisposalof
4,255,164.43 223,092.25
non-currentassets
4.Totalprofit(“-”meansloss) 274,482,477.59 246,038,239.55
Less:Incometaxes 42,597,501.35 39,425,977.29
5.Netprofit(“-”meansnetloss) 231,884,976.24 206,612,262.26
Netprofitattributabletoownersof
228,494,660.57 206,925,812.72
theCompany(asparentcompany)
Minorityinterestsincome 3,390,315.67 -313,550.46
6.Othercomprehensiveincome,netof
23,025,471.14 140,317,778.68
tax
Othercomprehensiveincome,netof
tax, attributable to owners of the 23,025,471.14 140,317,778.68
Company(asparentcompany)
6.1Othercomprehensiveincome
that will not be reclassified into
gains/losses
6.1.1Changesinnetliabilities
orassetswithadefinedbenefitplanupon
re-measurement 6.1.2 Share of othercomprehensiveincomeofinvesteesthatcannotbe reclassifiedintogains/lossesunderequitymethod 6.2Othercomprehensiveincometo be subsequently reclassified into 23,025,471.14 140,317,778.68gains/losses
6.2.1 Share of other
comprehensiveincomeofinvesteesthat
will be reclassified into gains/losses
underequitymethod
6.2.2 Gains/Losses on fair
value changes of available-for-sale 23,025,471.14 139,503,813.54
financialassets
6.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financialassets
6.2.4Effectivegains/losseson
cashflowhedges
6.2.5 Currency translation
differences
6.2.6Other 813,965.14
Othercomprehensiveincome,netof
tax,attributabletominorityinterests
7.Totalcomprehensiveincome 254,910,447.38 346,930,040.94
Attributable to owners of the
251,520,131.71 347,243,591.40
Company(asparentcompany)
Attributabletominorityinterests 3,390,315.67 -313,550.46
8.Earningspershare
8.1Basicearningspershare 0.1796 0.1627
8.2Dilutedearningspershare 0.1796 0.1627
WherebusinessmergersunderthesamecontroloccurredintheReportingPeriod,thenetprofitachievedbythemergedparties
beforethebusinessmergerswasRMB0.00,withtheamountforthesameperiodoflastyearbeingRMB0.00.
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
4.IncomeStatementoftheCompany(asParentCompany)
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
1.Operatingrevenues 1,980,196,404.29 1,782,457,216.14
Less:Operatingcosts 1,549,957,656.10 1,355,707,509.94
Taxesandsurtaxes 14,028,299.06 7,825,502.47
Sellingexpense 74,062,826.39 72,636,241.42
Administrativeexpense 98,398,538.37 82,409,260.52
Financecosts -4,474,253.64 -3,798,619.84
Assetimpairmentlosses 23,053,208.55 35,788,227.78
Add:Gainsonfairvaluechanges(“-”
meanslosses)
Investment income (“-” means
12,903,476.48 13,720,747.77
loss)
Including:Shareofgains/lossesof
1,543,965.79 -19,640.12
associatesandjointventures
Othergains
2.Operatingprofit(“-”meansloss) 238,073,605.94 245,609,841.62
Add:Non-operatingincome 5,746,833.41 1,389,423.13
Including: Gains on disposal of
9,401.71
non-currentassets
Less:Non-operatingexpense 2,041,377.50 3,736,581.73
Including:Losses ondisposalof
1,528,785.79 193,011.74
non-currentassets
3.Totalprofit(“-”meansloss) 241,779,061.85 243,262,683.02
Less:Incometaxes 34,045,999.98 37,862,188.03
4.Netprofit(“-”meansnetloss) 207,733,061.87 205,400,494.99
5.Othercomprehensiveincome,netof
23,025,471.14 139,503,813.54
tax
5.1Othercomprehensiveincomethat
willnotbereclassifiedintogainsand
losses
5.1.1Changesinnetliabilitiesor
assetswithadefinedbenefitplanupon
re-measurement 5.1.2 Share of othercomprehensiveincomeofinvesteesthatcannotbereclassifiedintogains/lossesunderequitymethod 5.2Othercomprehensiveincometobe subsequently reclassified into 23,025,471.14 139,503,813.54gains/losses
5.2.1 Share of other
comprehensiveincomeofinvesteesthat
will be reclassified into gains/losses
underequitymethod
5.2.2Gains/Lossesonfairvalue
changesofavailable-for-salefinancial 23,025,471.14 139,503,813.54
assets
5.2.3 Gains/Losses on
reclassifying held-to-maturity
investments into available-for-sale
financialassets
5.2.4 Effective gains/losses on
cashflowhedges
5.2.5 Currency translation
differences
5.2.6Other
6.Totalcomprehensiveincome 230,758,533.01 344,904,308.53
7.Earningspershare
7.1Basicearningspershare
7.2Dilutedearningspershare
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
5.ConsolidatedCashFlowStatement
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
1. Cash generated by or used in
operatingactivities:
Cash generated by sale of
1,754,303,637.97 1,547,557,182.88
commoditiesandrenderingofservice
Netincreaseinmoneydepositsfrom
customersandinterbankplacements
NetincreaseinloansfromCentral
Bank
Netincreaseinfundsborrowedfrom
otherfinancialinstitutions
Cash received as premiums of
originalinsurancecontracts
Net cashgenerated byreinsurance
business
Net increaseindeposits of policy
holdersandinvestmentfund
Netincreaseindisposaloffinancial
assetsatfairvaluethroughgains/losses
Interest, fees and commissions
received
Netincreaseininterbankborrowings
Netincreaseinfundsinrepurchase
business
Taxrebatesreceived 42,499,505.18 44,239,351.38
Cash generatedby other operating
28,893,716.10 15,057,708.67
activities
Subtotalofcashgeneratedbyoperating
1,825,696,859.25 1,606,854,242.93
activities
Cashpaidforgoodsandservices 1,114,835,724.72 850,216,733.93
Netincreaseinloansandadvancesto
customers
Netincreaseinfundsdeposited in
CentralBankandinterbankplacements
Cash paid for claims of original
insurancecontracts
Interest,feesandcommissionspaid
Cashpaidaspolicydividends
Cashpaidtoandforemployees 371,942,160.26 290,038,390.79
Taxespaid 262,092,182.25 92,793,562.26
Cash used in other operating
107,889,979.24 82,177,248.89
activities
Subtotal of cash used in operating
1,856,760,046.47 1,315,225,935.87
activities
Netcashfromoperatingactivities -31,063,187.22 291,628,307.06
2. Cash generated by or used in
investingactivities:
Cashgeneratedbydisinvestments 7,005.00
Cashreceivedasinvestmentincome 15,011,705.23 11,852,333.55
Netcash generatedbydisposal of
fixedassets,intangibleassetsandother 1,626,000.00 73,000.00
long-termassets
Netcash generatedbydisposal of
subsidiariesorotherbusinessunits
Cashgeneratedbyotherinvesting
activities
Subtotalofcashgeneratedbyinvesting
16,637,705.23 11,932,338.55
activities
Cash paidtoacquire fixed assets,
intangibleassets andotherlong-term 108,664,080.94 33,994,345.07
assets
Cashpaidforinvestments 20,000,000.00 400,000,000.00
Netincreaseinpledgedloans
Netcashpaidtoacquiresubsidiaries
andotherbusinessunits
Cash used in other investing
7,539,878.12
activities
Subtotal of cash used in investing
128,664,080.94 441,534,223.19
activities
Netcashfrominvestingactivities -112,026,375.71 -429,601,884.64
3. Cash generated by or used in
financingactivities:
Cash received as capital
contributions
Including: Cash received from
minority shareholder investments by
subsidiaries
Cashreceivedasborrowings
Cash generated by issuance of
bonds
Cashgeneratedbyotherfinancing
activities
Subtotalofcashgeneratedbyfinancing
activities
Repaymentofborrowings
Cashpaidforinterestexpensesand
522,068,416.83 15,935,708.57
distributionofdividendsorprofit
Including:dividendsorprofitpaid
5,660,290.78
bysubsidiariestominorityinterests
Cash used in other financing
activities
Sub-total of cash used in financing
522,068,416.83 15,935,708.57
activities
Netcashfromfinancingactivities -522,068,416.83 -15,935,708.57
4. Effect of foreign exchange rate
912,356.51 956,368.36
changesoncashandcashequivalents
5. Net increase in cash and cash
-664,245,623.25 -152,952,917.79
equivalents
Add:Openingbalanceofcashand
1,479,283,642.54 933,546,108.37
cashequivalents
6.Closingbalance ofcashand cash
815,038,019.29 780,593,190.58
equivalents
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
6.CashFlowStatementoftheCompany(asParentCompany)
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
1. Cash generated by or used in
operatingactivities:
Cash generated by sale of
1,700,716,001.72 1,583,633,686.90
commoditiesandrenderingofservice
Taxrebatesreceived 42,499,505.18 44,239,351.38
Cash generatedby other operating
24,406,290.15 11,425,998.07
activities
Subtotalofcashgeneratedbyoperating
1,767,621,797.05 1,639,299,036.35
activities
Cashpaidforgoodsandservices 1,363,028,963.41 1,070,690,628.68
Cashpaidtoandforemployees 167,453,782.97 118,971,583.13
Taxespaid 200,061,046.37 42,416,995.71
Cash used in other operating
101,737,482.16 80,203,151.06
activities
Subtotal of cash used in operating
1,832,281,274.91 1,312,282,358.58
activities
Netcashfromoperatingactivities -64,659,477.86 327,016,677.77
2. Cash generated by or used in
investingactivities:
Cashgeneratedbydisinvestments 35,000,000.00 7,005.00
Cashreceivedasinvestmentincome 28,724,845.24 11,852,333.55
Netcash generatedbydisposal of
fixedassets,intangibleassetsandother 1,580,000.00 14,000.00
long-termassets
Netcash generatedbydisposal of
subsidiariesorotherbusinessunits
Cash generated byother investing
activities
Subtotalofcashgeneratedbyinvesting
65,304,845.24 11,873,338.55
activities
Cash paidtoacquire fixed assets,
intangibleassets andotherlong-term 99,538,768.93 31,293,478.92
assets
Cashpaidforinvestments 400,000,000.00
Netcashpaidtoacquiresubsidiaries
andotherbusinessunits
Cash used in other investing
7,500,000.00
activities
Subtotal of cash used in investing
99,538,768.93 438,793,478.92
activities
Netcashfrominvestingactivities -34,233,923.69 -426,920,140.37
3. Cash generated by or used in
financingactivities:
Cash received as capital
contributions
Cashreceivedasborrowings
Cash generated by issuance of
bonds
Cashgeneratedbyotherfinancing
activities
Subtotalofcashgeneratedbyfinancing
activities
Repaymentofborrowings
Cashpaidforinterestexpensesand
516,408,126.05 15,935,708.57
distributionofdividendsorprofit
Cash used in other financing
activities
Sub-total of cash used in financing
516,408,126.05 15,935,708.57
activities
Netcashfromfinancingactivities -516,408,126.05 -15,935,708.57
4. Effect of foreign exchange rate
912,356.51 956,368.17
changesoncashandcashequivalents
5. Net increase in cash and cash
-614,389,171.09 -114,882,803.00
equivalents
Add:Openingbalanceofcashand
1,235,417,964.88 633,291,177.30
cashequivalents
6.Closingbalance ofcashand cash
621,028,793.79 518,408,374.30
equivalents
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
7.ConsolidatedStatementofChangesinOwners’Equity
ReportingPeriod
Unit:RMB
Reportingperiod
EquityattributabletoownersoftheCompany(asparentcompany)
Otherequity Minorit Total
Item instruments Other ProvisioRetaine
Less: y owners’
Share Capital compre Special Surplus nsfor d
PreferPerpet Treasur interests equity
capital reserve hensive reserve reserve general earning
ence ual Other yshares
income risks s
sharesbonds
1,272, 1,133,9 1,564,6 5,005,4
1.Balanceatprior 285,821 733,924 15,008,
132,86 71,372. 15,925. 74,643.
year-end ,459.07 ,951.81 066.44
8.00 25 99 56
Add: Changes
in accounting
policies
CorrectionsofpreviouserrorsBusinessmergers undersamecontrol
Other
2. Balance at 1,272, 285,821 1,133,9 733,924 1,564,6 15,008, 5,005,4
beginning of the132,86 ,459.07 71,372. ,951.81 15,925. 066.44 74,643.
year 8.00 25 99 56
3. Increase/
-305,80 -279,38
decrease in the 23,025, 3,390,3
period(“-”means 1,143.9 5,357.1
471.14 15.67
9 8
decrease)
3.1 Total
23,025, 228,494 3,390,3254,910
comprehensive 471.14 ,660.57 15.67 ,447.38income
3.2 Capital
increased and
reducedbyowners
3.2.1
Commonshares
increasedby
shareholders
3.2.2Capital
increasedby
holdersofother
equityinstruments
3.2.3
Share-based
paymentscharged
toowners’equity
3.2.4Other
-534,29 -534,29
3.3 Profit
5,804.5 5,804.5
distribution
6 6
3.3.1
Appropriation to
surplusreserve
3.3.2
Appropriation to
provisions for
generalrisks
3.3.3
-534,29 -534,29
Appropriation to
5,804.5 5,804.5
owners (or
6 6
shareholders)
3.3.4Other
3.4 Internal
carry-forward of
owners’equity
3.4.1 New
increaseofcapital
(or share capital)
from capital
reserve
3.4.2 New
increaseofcapital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserveformaking
uploss
3.4.4Other
3.5Specialreserve
3.5.1
Withdrawnforthe
period
3.5.2Usedin
theperiod
3.6Other
1,272, 1,156,9 1,258,8 4,726,0
285,821 733,924 18,398,
4.Closingbalance 132,86 96,843. 14,782. 89,286.
,459.07 ,951.81 382.11
8.00 39 00 38
Amountlastyear:
Unit:RMB
Sameperiodoflastyear
EquityattributabletoownersoftheCompany(asparentcompany)
Otherequity Minorit
Item Other Provisio Total
instruments Less: Retaine y owners’
Share Capital compreSpecificSurplus nsfor interest
PreferPerpet Treasur d equity
capital reserve hensive reserve reserve general s
ence ual Other yshares earnings
income risks
sharesbonds
1,272, 2,212,9 5,057,7
1.Balanceatprior 296,324 628,439 613,661 34,193,
132,86 89,156. 40,219.
year-end ,375.58 ,107.12 ,381.40 330.93
8.00 02 05
Add: Changes
in accounting
policies
Correctionsofpreviouserrors Businessmergers undersamecontrol
Other
2. Balance at 1,272, 2,212,9 5,057,7
296,324 628,439 613,661 34,193,
beginning of the132,86 89,156. 40,219.
,375.58 ,107.12 ,381.40 330.93
year 8.00 02 05
3. Increase/
-1,079,0
decrease in the -10,502, 105,485 950,954-19,185-52,265,
period(“-”means 17,783.
916.51 ,844.69 ,544.59 ,264.49 575.49
77
decrease)
3.1 Total -1,079,0 1,072,3
914,343-5,761,3
comprehensive 17,783. 42,050.
.61 90.03
income 77 13
3.2 Capital
-10,508, -13,811,-24,320,
increased and
536.76 685.01 221.77
reducedbyowners
3.2.1
Commonshares 10,000, 10,000,
increasedby 000.00 000.00
shareholders
3.2.2Capital
increasedby
holdersofother
equityinstruments
3.2.3
Share-based
paymentscharged
toowners’equity
-10,508, -23,811,-34,320,
3.2.4Other
536.76 685.01 221.77
-121,38
3.3 Profit 5,620.2 105,485 -6,287,-22,183,
7,505.5
distribution 5 ,844.69 923.09 963.69
4
3.3.1 -105,48
105,485
Appropriation to 5,844.6
,844.69
surplusreserve 9
3.3.2
Appropriation to
provisions for
generalrisks
3.3.3 -15,901, -6,287,-22,189,
Appropriation to 660.85 923.09 583.94
owners (or
shareholders)
5,620.2 5,620.2
3.3.4Other
5 5
3.4 Internal
carry-forward of
owners’equity
3.4.1 New
increaseofcapital
(or share capital)
from capital
reserve
3.4.2 New
increaseofcapital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserveformaking
uploss
3.4.4Other
3.5Specialreserve
3.5.1
Withdrawnforthe
period
3.5.2Usedin
theperiod
3.6Other
1,272, 1,133,9 1,564,6 5,005,4
285,821 733,924 15,008,
4.Closingbalance 132,86 71,372. 15,925. 74,643.
,459.07 ,951.81 066.44
8.00 25 99 56
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
8.StatementofChangesinOwners’EquityoftheCompany(asParentCompany)
ReportingPeriod:
Unit:RMB
ReportingPeriod
Item Share Otherequityinstruments Capital Less: Other Special Surplus Retaine Total
capital Prefere Perpetu Other reserve Treasury comprehe reserve reserve d owners’
nce albonds shares nsive earnings equity
shares income
1,448,9
1.Balanceatprior1,272,13 293,425,0 1,133,971 733,924,9 4,882,362
07,867.
year-end 2,868.00 65.15 ,372.25 51.81 ,124.94
73
Add: Changes
in accounting
policies
CorrectionsofpreviouserrorsOther
2. Balance at 1,448,9
1,272,13 293,425,0 1,133,971 733,924,9 4,882,362
beginning of the 07,867.
2,868.00 65.15 ,372.25 51.81 ,124.94
year 73
3. Increase/
-326,56
decrease in the 23,025,47 -303,537,
period(“-”means 2,742.6
1.14 271.55
9
decrease)
3.1 Total
23,025,47 207,733230,758,5
comprehensive 1.14 ,061.87 33.01income
3.2 Capital
increased and
reducedbyowners
3.2.1
Commonshares
increasedby
shareholders
3.2.2Capital
increasedby
holdersofother
equityinstruments
3.2.3
Share-based
paymentscharged
toowners’equity
3.2.4Other
-534,29
3.3 Profit -534,295,
5,804.5
distribution 804.56
6
3.3.1
Appropriation to
surplusreserve
3.3.2
-534,29
Appropriation to -534,295,
5,804.5
owners (or 804.56
6
shareholders)
3.3.3Other
3.4 Internal
carry-forward of
owners’equity
3.4.1 New
increaseofcapital
(or share capital)
from capital
reserve
3.4.2 New
increaseofcapital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserveformaking
uploss
3.4.4Other
3.5Specialreserve
3.5.1
Withdrawnforthe
period
3.5.2Usedin
theperiod
3.6Other
1,122,3
1,272,13 293,425,0 1,156,996 733,924,9 4,578,824
4.Closingbalance 45,125.
2,868.00 65.15 ,843.39 51.81 ,853.39
04
Amountlastyear:
Unit:RMB
Sameperiodoflastyear
Otherequityinstruments Other
Item Less: Retaine Total
Share Prefere Capital comprehe Special Surplus owners’
Perpetu Treasury d
capital nce Other reserve nsive reserve reserve
albonds shares earnings equity
shares income
1.Balanceatprior1,272,13 293,419,4 2,212,989 628,439,1515,4364,922,417
year-end 2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
Add: Changes
in accounting
policies
CorrectionsofpreviouserrorsOther
2. Balance at
1,272,13 293,419,4 2,212,989 628,439,1515,4364,922,417
beginning of the
2,868.00 44.90 ,156.02 07.12 ,926.40 ,502.44
year
3. Increase/
decrease in the -1,079,01 105,485,8933,470-40,055,3
period(“-”means 5,620.25
7,783.77 44.69 ,941.33 77.50
decrease)
3.1 Total 1,054,8
-1,079,01 -24,159,3
comprehensive 58,446.
7,783.77 36.90
income 87
3.2 Capital
increased and
reducedbyowners
3.2.1
Commonshares
increasedby
shareholders
3.2.2Capital
increasedby
holdersofother
equityinstruments
3.2.3
Share-based
paymentscharged
toowners’equity
3.2.4Other
-121,38
3.3 Profit 105,485,8 -15,896,0
5,620.25 7,505.5
distribution 44.69 40.60
4
3.3.1 -105,48
105,485,8
Appropriation to 5,844.6
44.69
surplusreserve 9
3.3.2
-15,901,-15,901,6
Appropriation to
660.85 60.85
owners (or
shareholders)
3.3.3Other 5,620.25 5,620.25
3.4 Internal
carry-forward of
owners’equity
3.4.1 New
increaseofcapital
(or share capital)
from capital
reserve
3.4.2 New
increaseofcapital
(or share capital)
from surplus
reserve
3.4.3 Surplus
reserveformaking
uploss
3.4.4Other
3.5Specialreserve
3.5.1
Withdrawnforthe
period
3.5.2Usedin
theperiod
3.6Other
1,448,9
1,272,13 293,425,0 1,133,971 733,924,9 4,882,362
4.Closingbalance 07,867.
2,868.00 65.15 ,372.25 51.81 ,124.94
73
Legalrepresentative:HeYong AccountingheadforthisReport:LiuXingming
Headoftheaccountingdepartment:TangQionglan
IIICompanyprofile
(I).OverviewoftheCompany
Foshan Electricaland Lighting Co., Ltd. (hereinafterreferred toas “the Company”),ajoint-stock limited
companyjointlyfoundedbyFoshanElectricalandLightingCompany,NanhaiWuzhuangColorGlazedBrick
Field,andFoshanPoyangPrintingIndustrialCo.onOctober20,1992byraisingfundsundertheapprovalofYGS
(1992)No.63DocumentissuedbytheJointExaminationGroupforExperimentalEnterprisesinStockSystemof
GuangdongProvinceandtheEconomicSystemReformCommissionofGuangdongProvince,isanenterprise
withitssharesheldbyboththecorporateandthenaturalpersons.AsapprovedbyChinaSecuritiesRegulatory
CommissionwithDocument(1993)No.33,theCompanypubliclyissued19.3millionsharesofsocialpublic
shares(Ashares)tothepublic inOctober1993,andwas listedin ShenzhenStockExchange fortradeon
November23,1993.TheCompanywasapprovedtoissue50,000,000BsharesonJuly23,1995.And,as
approvedtochangeintoaforeign-investedstocklimitedcompanyonAugust26,1996by(1996)WJMZEHZNo.
466DocumentissuedbytheMinistryofForeignTradeandEconomicCooperationofthePeople’sRepublicof
China.OnDecember11,2000,asapprovedbyChinaSecuritiesRegulatoryCommissionwithZJGSZi[2000]No.
175Document,theCompanyadditionallyissued55,000,000Ashares.AtapprovedbytheShareholders’General
Meeting2006,2007,2008and2014theCompanyimplementedtheplanofcapitalizationofcapitalreserve,after
thetransfer,theregisteredcapitaloftheCompanyhasincreasedtoRMB1,272,132,868.00.
CredibilitycodeoftheCompany:91440000190352575W
Legalrepresentative:Mr.HeYong
Address:No.64,FenjiangNorthRoad,Foshan,GuangdongProvince
(II).Businessnatureandmainoperatingactivities
R&Dand productionofelectro-opticalsource products,electro-opticalsource equipmentandelectro-optical
accessories,rawmaterialsofelectriclightsources,lamps&fittings,electricalmaterials,motorcyclecomponents,
householdappliances,electricswitches,electricaloutlets,firecontrolproducts,ventilationdevices,LEDproducts,
lithiumion batteriesandrelevantmaterials; domesticandoverseas saleofthe aforesaidproducts; relevant
engineeringconsultingservices.(Wherealicenseisrequired,itmustbeobtainedaccordingtothegovernment’s
rulesbeforeoperation.)
(III).ApprovalandIssueoftheFinancialReport
TheFinancialReportwasapprovedandauthorizedforissuebytheBoardofDirectorsonAugust23,2017.
(IV).Scopeoftheconsolidatedfinancialstatementsandchanges
TheconsolidationscopeofthefinancialstatementincludingtheCompanyandthe9subordinatesubsidiariessuch
asFoshanChanchangElectricAppliance(Gaoming)Co.,Ltd.,FoshanChanshengElectronicBallastCo.,Ltd.,
FoshanTaimeiTimesLampsand LanternsCo.,Ltd.,NanjingFozhaoLightingComponentsCo.,Ltd.,FSL
(Xinxiang) Lighting Co., Ltd., Foshan Electrical and Lighting New Light Source Technology Co., Ltd.,
GuangdongFozhaoLeasingCo.,Ltd.,FoshanLightingLamps&ComponentsCo.,Ltd.andFSLZhidaElectric
TechnologyCo.,Ltd.
IVBasisforpreparationoffinancialstatements
1.Preparationbasis
ThefinancialstatementsoftheCompanyarebasedontheassumptionofcontinuingoperation,andareprepared
accordingto theactualtransactionsandevents, theAccountingStandards forBusinessEnterprises-Basic
StandardsissuedbytheMinistryofFinance(DecreeNo.33oftheMinistryofFinance,revisedbyDecreeNo.76
oftheMinistryofFinance),41specificaccountingstandards,theguidelinesontheapplicationofaccounting
standardsforbusinessenterprises,theinterpretationofaccountingstandardsforbusinessenterprisesandother
relevantprovisions(hereinafterreferredtoastheAccountingStandardsforBusinessEnterprises)promulgated
andrevisedonandafterFebruary15,2006,aswellasthedisclosurerequirementsofRulesfortheInformation
DisclosureofCompaniesPubliclyIssuingSecuritiesNo.15-GeneralProvisionsonFinancialReportingofChina
SecuritiesRegulatoryCommission(Revised2014).
AccordingtotherelevantprovisionsoftheAccountingStandards forBusiness Enterprises,theCompany’s
accountingisbasedonaccrualbasis.Exceptcertainfinancialinstruments,thesefinancialstatementsarebasedon
historicalcosts.Theamountofnon-currentassetsheldforsaleisvaluatedatfairvaluelesstheestimatedamount
andtheoriginalbookvalueatthetimewhentheconditionsforsalearesatisfied,whicheverislower.Iftheassetis
impaired,thecorrespondingprovisionforimpairmentshallbemadeinaccordancewiththerelevantprovisions.
2.Continuation
TheCompanyhasnomattersaffectingthecontinuingoperationoftheCompanyandisexpectedtohavethe
abilitytocontinuetooperateinthenext12months.ThefinancialstatementsoftheCompanyarepreparedonthe
basisofcontinuingoperation.
VImportantaccountingpoliciesandestimations
Remindersofthespecificaccountingpoliciesandaccountingestimations:
Naught
1.StatementofCompliancewiththeAccountingStandardsforBusinessEnterprises
Thefinancialstatements preparedbytheGroupareincompliancewithincompliancewiththeAccounting
StandardsforBusinessEnterprises,whichfactuallyandcompletelypresenttheCompany’sandtheconsolidated
financialpositions,businessresultsandcashflows,aswellasotherrelevantinformation.
2.FiscalYear
AfiscalyearstartsonJanuary1andendsonDecember31accordingtotheGregoriancalendar.
3.Operatingcycle
AnormaloperatingcyclereferstoaperiodfromtheGrouppurchasingassetsforprocessingtorealizingcashor
cashequivalents.AnoperatingcyclefortheGroupis12months,whichisalsotheclassificationcriterionforthe
liquidityofitsassetsandliabilities.
4.RecordingCurrency
RenminbiistherecordingcurrencyforthestatementsoftheCompanyanditssubsidiaries,aswellasforthe
consolidatedfinancialstatements.
5.Accountingtreatmentmethodsforbusinesscombinationsunderthesamecontrolornotunderthesame
control
Abusinesscombinationreferstoatransactionoreventthatcombinestwoormoreseparatebusinessestoforma
reporting entity. Business combinationsare divided into the combinationunder the same control and the
combinationunderdifferentcontrols.
(1)Businesscombinationsunderthesamecontrol
Abusinesscombination underthesame controlisabusinesscombination in whichall ofthecombining
enterprisesareultimatelycontrolledbythesamepartyorthesamepartiesbothbeforeandafterthebusiness
combinationandonwhichthecontrolisnottemporary.Forthecombinationunderthesamecontrol,theparty
obtainingcontroloverothercompaniesinvolvedinthecombinationonthecombinationdayisthecombining
party,andothercompaniesarecombinedparties.Combinationdayisthedateonwhichtheobtainingparty
actuallyobtainscontroloverthecombinedparties.
Theassetsandliabilitiesacquiredbythecombiningpartyaremeasuredatthebookvalueofthecombinedparties
atthedateofcombination.Thecapitalreserve(sharepremium)isadjustedbythedifferencebetweenthebook
valueofthenetassetsobtainedbythecombiningpartyandthebookvalueofthepaidcombinationconsideration
(ortotalnominalvalueoftheissuedshares);ifthecapitalreserve(sharepremium)isinsufficienttooffset,adjust
theretainedearnings.
Thedirectcostsincurredbythecombiningpartyintheconductofthebusinesscombinationshallberecordedinto
thecurrentprofitsandlosseswhenincurred.
(2)Businesscombinationsnotunderthesamecontrol
Itisbusinesscombinationunderdifferentcontrolsifthecompaniesinvolvedinthecombinationarenotsubjectto
thefinalcontrolofthesamepartyorsamemultiplepartiesbeforeandafterthecombination.Forthecombination
underdifferentcontrols,thepartyobtainingcontroloverothercompaniesinvolvedinthecombinationonthe
combinationdayisthecombiningparty,andothercompaniesarecombinedparties.Combinationdayisthedate
onwhichtheobtainingpartyactuallyobtainscontroloverthecombinedparties.
Forthecombinationunderdifferentcontrols,thecostsofcombinationincludetheassetspaid,liabilitiesincurred
orassumedbythepurchaserandthefairvalueoftheequitysecuritiesissuedbythepurchaserfortheacquisition
oftheacquiree,andtheauditfees,legalservices,assessmentconsultingandotherintermediaryservicefeesand
othermanagementfeesincurredforthebusinesscombinationareincludedinthecurrentprofitsandlosses.The
transactioncostsoftheequitysecuritiesordebtsecuritiesissuedbythepurchaserascombinationconsideration
shallbeincludedintheinitialrecognizedamountoftheequitysecuritiesorthedebtsecurities.Theinvolved
contingentconsiderationshallbeincludedinthecombinationcostatthefairvalueatthepurchasedate,andif
contingentconsiderationshouldbeadjustedduetoneworfurtherevidencewithin12monthsafterthepurchase
date,theconsolidatedgoodwillshouldbeadjustedaccordingly.Thecombinationcostsincurredbytheacquirer
andtheidentifiablenetassetsacquiredinthecombinationaremeasuredatthefairvalueattheacquisitiondate.
Thedifferenceofthecombinationcostgreaterthanthefairvalueoftheidentifiablenetassetsoftheacquiree
acquiredattheacquisitiondateisrecognizedasgoodwill.Ifthecombinationcostislessthanthefairvalueofthe
identifiablenetassetsoftheacquireeacquiredin thecombination, thefairvalueoftheidentifiableassets,
liabilitiesandcontingent liabilitiesoftheacquireeandthemeasurementofthecombination costsshallbe
reviewedfirst.Ifthecombinationcostisstilllessthanthefairvalueoftheidentifiablenetassetsoftheacquiree
acquiredinthecombination,thedifferenceshallberecordedintothecurrentprofitsandlosses.
Ifthedeductibletemporarydifferenceobtainedbythepurchaserfromtheacquireehasnotbeenconfirmedonthe
dateofpurchaseduetothenon-compliancewiththerecognitioncriteriaofdeferredincometaxassets,the
relevantdeferredincometaxassetsshallberecognizedandthegoodwillshallbereducedifneworfurther
informationisobtainedwithin12monthsafterthedateofpurchaseshowingthattherelevantcircumstancesare
alreadypresentanditisexpectedthattheeconomicbenefitsbroughtbythedeductibletemporarydifferenceofthe
acquireeonthedateofpurchasemayberealized.Ifthegoodwillisinsufficienttooffset,thedifferenceshallbe
recognizedasprofitorlossforthecurrentperiod.Exceptfortheabove,thedeferredincometaxassetsrelatedto
thebusinesscombinationshallberecognizedandincludedinthecurrentprofitsandlosses.
6.Methodsforpreparingconsolidatedfinancialstatements
(1)Principleofdeterminingthescopeofconsolidation
ThescopeofconsolidationoftheconsolidatedfinancialstatementsoftheCompanyisdeterminedonthebasisof
control.ControlmeansthattheCompanyhastherighttoinvestintheinvesteeandenjoyavariablereturnthrough
theparticipationoftherelevantactivitiesoftheinvestee,andhastheabilitytousethepowerovertheinvesteeto
affecttheamountofitsreturn.ThescopeofconsolidationincludestheCompanyandallsubsidiaries.Subsidiary
meansthesubjectcontrolledbytheCompany.
TheCompanywillconductareassessmentoncethechangesintherelevantfactsandcircumstancesresultinthe
changestotherelevantelementsofaforesaidcontroldefinition.
(2)Principles,proceduresandmethodsforthepreparationofconsolidatedstatements
TheCompanystartstoincorporateitintothescopeofconsolidationfromthedateofobtainingtheactualcontrol
overthenetassetsanddecision-makingofproductionandoperationofthesubsidiaries,andceasestoincorporate
itinthescopeofconsolidationfromthedateoflosingtheactualcontrol.Forthedisposedsubsidiaries,the
operatingresultsandcashflowbeforethedateofdisposalhavebeenproperlyincludedintheconsolidatedincome
statementandconsolidatedcashflowstatement;forthesubsidiariesdisposedincurrentperiod,thebeginning
amount of the consolidated balance sheetisn’t adjusted. Forthe subsidiaries added due to the business
combinationunderdifferentcontrols,theoperatingresultsandcashflowafterthedateofpurchasehavebeen
properlyincludedin theconsolidatedincomestatement and theconsolidatedcashflow statement,and the
beginningamountandthecontrastamountoftheconsolidatedfinancialstatementsarenotadjusted.Forthe
subsidiariesaddedduetothebusinesscombinationundersamecontrol,theoperatingresultsandcashflowfrom
theperiodbeginofthecombinationtothedateofcombinationhavebeenproperlyincludedintheconsolidated
incomestatementandtheconsolidatedcashflowstatement,andthecontrastamountoftheconsolidatedfinancial
statementsisadjustedatthesametime.
Inthepreparationoftheconsolidatedfinancialstatements,ifthesubsidiariesareinconsistentwiththeaccounting
policiesoraccountingperiodsadoptedbytheCompany,thenecessaryadjustmentsshallbemadetothefinancial
statementsofthesubsidiariesinaccordancewiththeCompany’saccountingpoliciesandaccountingperiods.For
subsidiariesacquiredbybusinesscombinationunderdifferentcontrols,thefinancialstatementsshallbeadjusted
onthebasisofthefairvalueoftheidentifiablenetassetsattheacquisitiondate.
Asforthesubsidiariesacquiredfromtheenterprisecombinenotunderthesamecontrol,theindividualfinancial
statementshouldbeadjustedbasedonthefairvalueoftheidentifiablenetassetsonthepurchasedatewhen
compilingtheconsolidatedfinancialstatements;asforthesubsidiariesacquiredfromtheenterprisecombine
underthesamecontrol,shouldberegardedasexistasthecurrentstatewheneachinvolvedcombinepartystarting
toexecutethecontrolintheultimatecontrolparty,andshouldincludetheassets,liabilities,operatingresultsand
thecashflowintheconsolidatedfinancialstatementssincetheyear-beginofthecombineperiodandtoadjustthe
previouscomparedfinancialstatementaccordingtotheaboveprinciples.
Allsignificantbalances,transactionsandunrealizedprofitsintheCompanyaresetoffatthetimeofpreparation
oftheconsolidatedfinancialstatements.
Thepartofshareholders’equityandthenetprofitorlossforthecurrentperiodofthesubsidiariesthatarenotof
theCompanyarelistedinshareholders’equityandnetprofitsintheconsolidatedfinancialstatementsasthe
minorityinterestsandminoritygainsandlossesseparately.Theshareofminorityinterestsinthecurrentnetprofit
orlossofthesubsidiariesispresentedundertheitem“Minoritygainsandlosses”underthenetprofititemofthe
consolidatedincomestatement.Thelossessharedbytheminorityshareholdersofthesubsidiaryexceedingits
shareintheshareholders’equityattheperiodbeginningstilloffsettheminorityshareholders'equity.
7.Classificationofjointarrangementsandaccountingtreatmentofjointoperations
Ajointarrangementreferstoanarrangementjointlycontrolledbytwoparticipantsoraboveandbedividedinto
jointoperationsandjointventures.
WhentheCompanyisthejointventurepartyofthejointoperations,shouldrecognizethefollowingitemsrelated
totheinterestsshareofthejointoperations:
(1)Recognizetheassetsindividuallyheldandtheassetsjointlyheldbyrecognizingaccordingtotheholding
share;
(2)Recognizetheliabilitiesundertookindividuallyandtheliabilitiesjointlyheldbyrecognizingaccordingtothe
holdingshare;
(3)RecognizetherevenuesoccurredfromsellingtheoutputshareofthejointoperationsenjoybytheCompany;
(4)Recognizetherevenuesoccurredfromsellingtheassetsofthejointoperationsaccordingtotheholdingshare;
(5)Recognizetheexpensesindividuallyoccurredandtheexpensesoccurredfromthejointoperationsaccording
totheholdingshareoftheCompany.
WhentheCompanyisthejointoperationpartyofthejointventures,shouldrecognizetheinvestmentofthejoint
venturesasthelong-termequityinvestmentandbemeasuredaccordinggtothesaidmethodsofthenotesofthe
long-termequityinvestmentofthefinancialstatement.
8.Recognitionstandardforcashandcashequivalents
IntheGroup’sunderstanding,cashandcashequivalentsincludecashonhand,anydepositthatcanbeusedfor
cover,andshort-term(usuallyduewithin3monthssincethedayofpurchase)andhighcirculatinginvestments,
whichareeasilyconvertibleintoknownamountofcashandwhoserisksinchangeofvalueareminimal.
9.Foreigncurrencyandaccountingmethodforforeigncurrency
(1)Foreigncurrencybusiness
Foreigncurrencyshallberecognizedbyemployingsystematicandreasonablemethods,andshallbetranslated
intotheamountinthefunctionalcurrencyattheexchangeratewhichisapproximatetothespotexchangerateof
thetransactiondate.Onthebalancesheetdate,theforeigncurrencymonetaryitemsshallbetranslatedatthespot
exchangerate.Thebalanceofexchangearisingfromthedifferencebetweenthespotexchangerateonthebalance
sheetdateandthespotexchangerateatthetimeofinitialrecognitionorpriortothebalancesheetdateshallbe
recordedintotheprofitsandlossesatthecurrentperiodexceptthatthebalanceofexchangearisingfromforeign
currencyborrowingsforthepurchaseandconstructionorproductionofqualifiedassetsshallbecapitalized.The
foreigncurrencynon-monetaryitemsmeasuredatthehistoricalcostshallstillbetranslatedatthespotexchange
rateonthetransactiondate.
(2)Translationofforeigncurrencyfinancialstatements
Theassetandliabilityitemsinthebalancesheetsshallbetranslatedataspotexchangerateonthebalancesheet
date.Amongtheowner’sequityitems,except fortheitemsas“undistributedprofits”,otheritemsshallbe
translatedatthespotexchangerateatthetimewhentheyareincurred.Therevenuesandtheexpensesitemsofthe
incomestatementshouldbetranslatedaccordingtothespotrateontheexchangedate.
Thedifferenceoftheforeigncurrencyfinancialstatementsoccurredfromtheabovetranslationshouldbelisted
underthe“othercomprehensiveincome”itemoftheowners’equityoftheconsolidatedfinancialstatement.As
fortheforeigncurrencyitemswhichactuallyformintothenetinvestmentoftheforeignoperation,theexchange
differenceoccurredfromtheexchangeratechangesshouldbelistedunderthe“othercomprehensiveincome”of
theowners’equityamongtheconsolidatedfinancialstatementwhencompiletheconsolidatedfinancialstatement.
Whendisposingtheforeignoperation,asforthediscounteddifferenceoftheforeignfinancialstatementrelatedto
theforeignoperationshouldbetransferredinthecurrentgainsandlossesaccordingtotheproportion.Theforeign
cashflowadoptsthespotexchangerateontheoccurringdateofthecashflow.Andtheinfluencedamountofthe
exchangeratechangesshouldbeindividuallylistedamongthecashflowstatement.
10.Financialinstruments
(1)Classification,recognitionandmeasurementoffinancialassets
Financialassetsshallbeclassifiedintothefollowingfourcategorieswhentheyareinitiallyrecognized:financial
assetsmeasuredatfairvalueandofwhichvariationsarerecordedintheprofitsandlossesforthecurrentperiod,
loansandtheaccountreceivables,financialassetsavailableforsaleandtheinvestmentswhichwillbeheldto
theirmaturity.
①Financialassetsmeasuredatfairvalueandofwhichvariationsarerecordedintheprofitsandlossesforthe
currentperiodrefertofinancialassetsheldbytheCompanyforthepurposeofsellinginthenearfuture,including
transactionalfinancialassets,orfinancialassetsdesignatedbythemanagementintheinitialrecognitiontobe
measuredatfairvaluewithvariationsrecordedinthegainsandlossesforthecurrentperiod.Financialassets
measuredatfairvalueandofwhichvariationsarerecordedintheprofitsandlossesforthecurrentperiodare
subsequentlymeasuredattheirfairvalues.Interestorcashdividendsarisingfromsuchassetsduringtheholing
periodarerecognizedasinvestmentgains.Gainsorlossesarisingfromfairvaluechangesarerecordedinthe
gainsandlossesforthecurrentperiodattheendoftheReportingPeriod.Whensuchassetsaredisposed,the
differencebetweentheirfairvaluesandinitiallyrecognizedamountsisrecognizedasinvestmentgainsandthe
gainsandlossesarisingfromfairvaluechangesareadjustedaccordingly.
②Loanandaccountsreceivable:thenon-derivativefinancialassetsforwhichthereisnoquotedpriceinthe
activemarketandofwhichtherecoverableamountisfixedordeterminableshallbeclassifiedasloanand
accountsreceivable.TheCompanyshallmakesubsequentmeasurementonitsloanandaccountsreceivableonthe
basisofthepost-amortizationcostsbyadoptingtheactualinterestrate,fromwhichgainsandlosses,whenloan
andaccountsreceivableareterminatedfromrecognizing,orareimpairedoramortized,shallberecordedintothe
profitsandlossesofthecurrentperiod.
③Available-for-sale Financial Assets: the non-derivative financial assets which are designated as
available-for-salefinancialassetswhentheyareinitiallyrecognizedaswellasthenon-derivativefinancialassets
otherthanloansandaccountsreceivables,investmentshelduntiltheirmaturity;andtransactionfinancialassets.
The Companyshall makesubsequent measurementonavailable-for-sale financialassetsat fairvalueand
recognizetheinterestsorthecashbonusacquiredtheholdingperiodastheinvestmentincome,aswellasdirectly
includetheprofitsorlossesformedbythechangesofthefairvalueintotheowners’equityattheperiod-end,until
thesaidfinancialassetsshallbetransferredoutwhentheyareterminatedfromrecognizingorareimpaired,which
shallberecordedintotheprofitsandlossesofcurrentperiod.
④Held-to-maturity Investments: non-derivative financial asset with a fixeddate ofmaturity, a fixed or
determinablerecoverableamountandwhichtheCompany’smanagementholdsforadefinitepurposeorthe
Company’smanagementisabletoholduntilitsmaturity.TheCompanyshallmakesubsequentmeasurementon
itsHeld-to-maturityInvestmentsonthebasisofthepost-amortizationcostsbyadoptingtheactualinterestrate,
fromwhichgainsandlosses,whenloanandaccountsreceivableareterminatedfromrecognizing,orareimpaired
oramortized,shallberecordedintotheprofitsandlossesofthecurrentperiod.
(2)Classification,RecognitionandMeasurementofFinancialLiabilities
Financialliabilitiesshallbeclassifiedintothefollowingtwocategorieswhentheyareinitiallyrecognized:(1)the
transactionalfinancialliabilities;and(2)otherfinancialliabilities.Thefinancialliabilitiesinitiallyrecognizedby
theCompanyshallbemeasuredattheirfairvalues.Forthetransactionalfinancialliabilities,thetransaction
expensesthereofshallbedirectlyrecordedintotheprofitsandlossesofthecurrentperiod;forothercategoriesof
financialliabilities,thetransactionexpensesthereofshallbeincludedintotheinitiallyrecognizedamount.
①Asforthefinancialliabilitiesmeasuredbyfairvalueanditschangesbeincludedinthecurrentgainsandlosses,
whichincludingtradingfinancialliabilitiesandthefinancialliabilitiesbeappointedtobemeasuredbyfairvalue
withthechangesbeincludedinthecurrentgainsandlosseswhenbeinginitiallyrecognized,shouldbeexecuted
subsequentmeasurementaccordingtothefairvaluewiththeprofitsorlossesformedbythechangesofthefair
valuebeincludedinthecurrentgainsandlosses.
②Otherfinancialliabilities:TheCompanyshallmakesubsequentmeasurementonitsotherfinancialliabilities
onthebasisofthepost-amortizationcostsbyadoptingtheactualinterestrate,fromwhichgainsandlosses,when
otherfinancialliabilitiesareterminatedfromrecognizingoramortized,shallberecordedintotheprofitsand
lossesofthecurrentperiod.
(3)Recognitionandmeasurementoffinancialassettransfers
AsfortheCompanytransferrednearlyalloftherisksandrewardsrelatedtotheownershipofafinancialassetto
thetransferee,shouldderecognizethefinancialassets;asformaintainednearlyalloftherisksandrewardsrelated
totheownershipofafinancialasset,shouldcontinuetorecognizethetransferredfinancialassetsandrecognize
thereceivedcounterpriceasafinancialliability.WheretheCompanydoesnottransferorretainnearlyallofthe
risksandrewardsrelatedtotheownershipofafinancialasset(thatistosay,itisnotunderacircumstanceas
mentionedinArticle7oftheseStandards),itshalldealwithitaccordingtothecircumstancesasfollows,
respectively:(1)Ifitgivesupitscontroloverthefinancialasset,itshallstoprecognizingthefinancialasset;(2)If
itdoes notgive upitscontroloverthe financialasset,itshall, according tothe extentofitscontinuous
involvementinthetransferredfinancialasset,recognizetherelatedfinancialassetandrecognizetherelevant
liabilityaccordingly.
Ifthetransferofanentirefinancialassetsatisfiestheconditionsforstoppingrecognition,thedifferencebetween
theamountsofthefollowing2itemsshallberecordedintheprofitsandlossesofthecurrentperiod:(1)Thebook
valueof thetransferred financialasset; (2) the sum of considerationreceived from the transfer, and the
accumulativeamountofthechangesofthefairvalueoriginallyrecordedintheowner'sequities.
Ifthetransferofpartialfinancialassetsatisfiestheconditionstostoptherecognition,theentirebookvalueofthe
transferredfinancialassetshall,betweentheportionwhoserecognitionhasbeenstoppedandtheportionwhose
recognitionhasnot beenstopped, beapportioned accordingto their respectiverelative fairvalue, and the
differencebetweentheamountsofthefollowing2itemsshallbeincludedintotheprofitsandlossesofthecurrent
period:(1)Thebookvalueoftheportionwhoserecognitionhasbeenstopped;(2)Thesumofconsiderationofthe
portionwhoserecognitionhasbeenstopped,andtheportionoftheaccumulativeamountofthechangesinthefair
valueoriginallyrecordedintheowner'sequitieswhichiscorrespondingtotheportionwhoserecognitionhasbeen
stopped.
(4)De-recognitionconditionsoffinancialliabilities
Onlywhentheprevailingobligationsofafinancialliabilityarerelievedinallorinpartmaytherecognitionofthe
financialliabilitybeterminatedinallorpartly.WheretheGroup(debtor)entersintoanagreementwithacreditor
soastosubstitutetheexistingfinancialliabilitiesbywayofanynewfinancialliability,andifthecontractual
stipulationsregardingthenewfinancialliabilityissubstantiallydifferentfromthatregardingtheexistingfinancial
liability,itterminatestherecognitionoftheexistingfinancialliability,andatthesametimerecognizesthenew
financialliability.Ifexecutedpracticalmodificationonthewholeorpartofthecontractregulationsoftheexisting
financialliabilities,shouldterminatetorecognizetheexistingfinancialliabilitiesorcertainpartofitandatthe
sametimerecognizetherevisedfinancialliabilitiesasanewfinancialliabilities.
Wheretherecognitionofafinancialliabilityistotallyorpartiallyterminated,theenterpriseconcernedshall
includeintotheprofitsandlossesofthecurrentperiodforthegapbetweenthebookvaluewhichhasbeen
terminatedfromrecognitionandtheconsiderationsithaspaid(includingthenon-cashassetsithastransferredout
andthenewfinancialliabilitiesithasassumed).
IftheCompanyre-purchasepartofthefinancialliabilities,shoulddistributethewholebookvalueofthefinancial
liabilitiesaccordingtothecomparativelyfairvaluebetweenthecontinuedreorganizationpartandtheterminated
reorganizationpart onthere-purchasedate. Andthedifferencebetween thebookvalue distributedto the
terminatedrecognitionpartandthecounterpriceofthepaidpart(includingtherolledoutnon-cashassetsorthe
newfinancialliabilitiesundertook)shouldbeincludedinthecurrentgainsandlosses.
(5)Recognitionmethodofthefairvalueofthefinancialassetsandthefinancialliabilities
Asforthefinancialinstrumentsforwhichthereisanactivemarket,thequotedpricesintheactivemarketshallbe
usedtodeterminethefairvaluesthereof.Wherethereisnoactivemarketforafinancialinstrument,theCompany
concernedshalladopt valueappraisaltechniquestodetermineitsfairvalue.Thevalueappraisaltechniques
mainlyincludethepricesadoptedbytheparties,who arefamiliar withthecondition, inthelatestmarket
transactionupontheirownfreewill,thecurrentfairvalueobtainedbyreferringtootherfinancialinstrumentsof
thesameessentialnature,thecashflowcapitalizationmethodandtheoptionpricingmodel,etc.
(6)Impairmenttestoffinancialassets(excludingtheaccountsreceivable)andwithdrawalmethodofimpairment
provision
TheCompanyinspectsthebookvalueofthefinancialassetsonthebalancesheetdatetojudgewhetherthereare
evidencesindicatethatthefinancialassetshadoccurredimpairmentowningtotheoccurrenceofoneormultiple
events.
Asforthemeasurementforimpairmentoffinancialassetsmeasuredonthebasisofthepost-amortizationcosts,
wherethereisanyobjectiveevidenceprovingthatafinancialassetmeasuredonthebasisofpost-amortization
costsisimpaired,shouldberecognizedbythecarryingamountofthedifferencebetweenthesaidfinancialasset
whichshallbewrittendowntothecurrentvalueofthepredictedfuturecashflow(excludingthelossoffuture
creditsnotyetoccurred)and theamountoftheaswrittendown whichshallberecognized asloss ofthe
impairmentoftheasset.Whencalculatingthecurrentvalueoftheestimatedfuturecashflow,shouldadoptthe
originaleffectiveinterests’rateofthefinancialassetsasthediscountrate.Thebookvalueoftheassetsshouldbe
writtendowntotheestimatedrecoverableamountthroughimpairmentprovisionitemswiththewrittendown
amountbeincludedinthecurrentgainsandlosses.Asforthefinancialassetswithindividualsignificantamount,
shouldadopttheindividualassessmentforensurewhetherthereareobjectiveevidencesindicatetheimpairment
provisionandasfortheotherassets withinsignificantamount,shouldbeinspectedbyindividualorgroup
assessmentforensurewhetherthereareobjectiveevidencesindicatetheimpairmentprovision.
Asforthefinancialassetsmeasuredbycost,ifthereareevidencesindicatetheimpairmentofthefinancial
instrumentswithoutmarketpricewhichhadnotmeasuredbyfairvaluebecausethefairvaluecouldnotbe
reliablemeasured,theamountoftheimpairmentlossesshouldbemeasuredbythedifferencebetweenthebook
valueofthefinancialassetsandthecurrentvalueoftheestimatedfuturecashflowacquiredfromthediscounting
measurementofthecurrentmarketreturnrateofthesimilarfinancialassets.
Whereanavailable-for-salefinancialassetisimpaired,theaccumulativelossesarisingfromthedecreaseofthe
fairvalueoftheowner’sequitywhichwasdirectlyincludedshallbetransferredoutandrecordedintotheprofits
andlossesofthecurrentperiod.
11.Receivables
(1) Accounts receivable with significant single amount for which the bad debt provision is made
individuallyDefinitionoramountcriteriaforanaccountreceivablewithaTop five accounts receivable with the largest balances orsignificantsingleamount accounts accountingfor over 10% of the total balance ofreceivables.
Makingseparate bad-debt provisionsfor accountsreceivableForanaccountreceivablewithasignificantsingleamount,the
withasignificantsingleamount impairmenttestshallbecarriedoutonitseparately.Ifthereis
anyobjectiveevidenceofimpairment,theimpairmentlossis
recognizedandthebad-debtprovisionismadeaccordingtothe
differencebetweenthepresentvalueoftheaccountreceivable’s
futurecashflowsanditscarryingamount.Asfornon-significant
accountsreceivableforwhichseparateimpairmentprovisionsare
notnecessaryasprovedbytheimpairmenttest,aswellasother
significantaccountsreceivablethathavenotbeenimpairedas
provedbyaseparate impairmenttest,theyshallbegrouped
accordingtotheircreditrisksandaccountages,andthenthe
impairmenttestiscarriedoutonagroupbasis.
(2)Accountsreceivablewhichthebaddebtprovisioniswithdrawnbycreditriskcharacteristics
Groupname Withdrawalmethodofbaddebtprovision
Commontransactiongroup Aginganalysis
Internaltransactiongroup Ageanalysismethod
Inthegroups,thoseadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
Withdrawalproportionofaccount Withdrawalproportionofotheraccount
Aging receivables receivablesWithin1year(including1year) 3.00% 3.00%1to2years 10.00% 10.00%2to3years 30.00% 30.00%
3to4years 50.00% 50.00%
4to5years 80.00% 80.00%
Over5years 100.00% 100.00%
Inthegroups,thoseadoptingbalancepercentagemethodtowithdrawbaddebtprovision
□Applicable√Notapplicable
Inthegroups,thoseadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable
(3)Accountsreceivablewithaninsignificantsingleamountbutforwhichthebaddebtprovisionismade
independentlyReasonofindividuallywithdrawingbaddebtprovision Therearedefiniteevidencesindicatetheobviousdifferenceof theereturnability WithdrawthebaddebtprovisionaccordingtothedifferenceofWithdrawalmethodforbaddebtprovision whichthefuturecashflowlowerthanthebookvalue.12.InventoryIstheCompanysubjecttoanydisclosurerequirementsforspecialindustriesNo.
(1)Classificationofinventory
Inventoryreferstofinishedproducts,goodsinprocess,andmaterialsconsumedintheproductionprocessorthe
provisionoflaborservicesheldbytheCompanyforsaleindailyactivities,mainlyincludingrawmaterials,goods
inprocess,materialsintransit,finishedproducts,commodities,turnovermaterials,andcommissionedprocessing
materials.Turnovermaterialsincludelow-valueconsumablesandpackaging.
(2)Pricingmethodofinventorysentout
Theinventoryisvaluedatactualcostwhenacquired,andinventorycostsincludeprocurementcosts,processing
costsandothercosts.Theweightedaveragemethodisusedwhenreceivingorsendingoutinventory.
(3)Basisfordeterminingthenetrealizablevalueofinventoryandthemethodofwithdrawalforinventory
impairment
Netrealizablevaluereferstotheestimatedsellingpriceoftheinventoryminustheestimatedcosttobeincurredat
thetimeofcompletion,theestimatedsellingexpensesandtherelevanttaxesandfeesindailyactivities.In
determiningthenetrealizablevalueofinventory,theconclusiveevidenceobtainedisusedasthebasisandthe
purposeofholdingtheinventoryandtheimpactoftheeventsafterthebalancesheetdateshouldbetakeninto
account.
Forfinishedproducts,thematerialsusedforsaleandothergoodsusedfordirectsale,thenetrealizablevalueis
determinedbytheestimatedsellingpriceoftheinventoryminustheestimatedsellingexpensesandrelatedtaxes
intheprocessofnormalproductionandoperation.
Formaterialsinventoryneedstobeprocessed,thenetrealizablevalueisdeterminedbytheestimatedsellingprice
ofthefinishedproductsminustheestimatedcosttobeincurred,theestimatedsalescostsandtherelevanttaxes
andfeesintheprocessofnormalproductionandoperation.
(4)Inventorysystem
TheinventorysystemoftheCompanyisperpetualinventory.
(5)Amortizationmethodofturnovermaterials
Low-valueconsumablesareamortizedinone-offmethod.
Thepackagingisamortizedinone-offmethod.
13.Dividedasassetsheldforsale
TheCompanydividesthenon-currentfinancialassetswhichsimultaneouslymeetwiththefollowingconditions
(excludingfinancialassets)astheassetsheldforsale:①thecompositionpartshouldandcouldbeimmediately
soldonlyaccordingto theusualand idiomaticclausesof sellingsuchcomposition partunder thecurrent
circumstance;②hadmadeasolutiononthedisposingofthecompositionpart;③hadsignedairrevocable
transferagreementwiththetransferee;④thetransferprobablybecompletedwithin1year.
Theassetsclassifiedasseparatenon-currentassetsanddisposalgroupsheldforsalearepresentedseparatelyin
thecurrentassetsofthebalancesheet;liabilitiesclassifiedasassociatedwiththetransferredassetsinthedisposal
groupheldforsalearepresentedseparatelyinthecurrentliabilitiesofthebalancesheet.
Foranassetordisposalgroupclassifiedasheldforsalebutnolongermeetstheconditionsforrecognitionof
non-currentassetsheldforsale,theCompanyceasestoclassifyitasheldforsaleandmeasureaccordingtothe
amountofthefollowingtwoitems,whicheverislower:
1.Thebookvalueoftheassetordisposalgroupbeforebeingclassifiedasheldforsaleismeasuredbytheamount
adjustedaccordingtothedepreciation,amortizationorimpairmentthatshouldberecognizedasitisn’tclassified
asheldforsale.
2.Therecoverableamountatthedatedecidednottosell.
14.Long-termequityinvestments
Long-termequityinvestmentreferstotheCompany’slong-termequityinvestmentwithcontrol,jointcontrolor
significantinfluenceontheinvestee.Thelong-termequityinvestmentoftheCompanywhichhasnocontrol,joint
controlorsignificantinfluenceontheinvesteeisaccountedforasfinancialassetsavailable-for-saleorfinancial
assetsatfairvalueandchangesrecognizedinprofitorlossforthecurrentperiod.Fordetailsofaccounting
policies,pleaserefertoNote5:Importantaccountingpoliciesandaccountingestimates,andNote10:Financial
instruments.Jointcontrolreferstothecontrolthatiscommontoanarrangementinaccordancewiththerelevantagreement,andtherelevantactivitiesofthearrangementmustbeagreeduponbytheparticipantwhohassharedthecontrol.SignificantinfluencereferstotheCompanyhasthepowertoparticipateindecision-makingonthefinancialandoperatingpoliciesoftheinvestee,butcan’tcontrolorjointlycontroltheformulationofthesepolicieswithotherparties.
1.Investmentcostrecognitionforlong-termequityinvestments
(1)Forthemergerofenterprisesunderthesamecontrol,itshall,onthedateofmerger,regardtheshareofthe
bookvalueoftheowner'sequityofthemergedenterpriseastheinitialcostofthelong-termequityinvestment,
andthedirectrelevantexpensesoccurredforthemergerofenterprisesshallbeincludedintotheprofitsandlosses
ofthecurrentperiod.
(2)Forthemergerofenterprisesnotunderthesamecontrol,Thecombinationcostsshallbethefairvalues,onthe
acquisitiondate,oftheassetspaid,theliabilitiesincurredorassumedandtheequitysecuritiesissuedbythe
Companyinexchangeforthecontrolontheacquiree,andallrelevantdirectcostsincurredtotheacquirerforthe
businesscombination.Whereanyfutureeventthatislikelytoaffectthecombinationcostsisstipulatedinthe
combinationcontractoragreement,ifitislikelytooccuranditseffectsonthecombinationcostscanbemeasured
reliably,theCompanyshallrecordthesaidamountintothecombinationcosts.
(3)Thecostofalong-termequityinvestmentobtainedbymakingpaymentincashshallbethepurchasecost
whichisactuallypaid.Thecostconsistsoftheexpensesdirectlyrelevanttotheobtainmentofthelong-term
equityinvestment,taxesandothernecessaryexpenses.
(4)Thecostofalong-termequityinvestmentobtainedonthebasisofissuingequitysecuritiesshallbethefair
valueoftheequitysecuritiesissued.
(5)Thecostofalong-terminvestmentobtainedbytheexchangeofnon-monetaryassets(havingcommercial
nature)shallberecognizedbaseontakingthefairvalueandrelevantpayabletaxesasthecostoftheassets
received.
(6)Thecostofalong-termequityinvestmentobtainedbyrecombinationofliabilitiesshallberecognizedatthe
fairvalue.
2.Subsequentmeasurementoflong-termequityinvestmentandrecognizedmethodofprofit/loss
Thelong-termequityinvestmentwithjointcontrol(exceptforthecommonoperator)orsignificantinfluenceon
theinvesteeisaccountedbyequitymethod.Inaddition,theCompany'sfinancialstatementsusecostmethodto
calculatelong-termequityinvestmentsthatcancontroltheinvestee.
(1)Long-termequityinvestmentaccountedbycostmethod
Whenthecostmethodisusedforaccounting,thelong-termequityinvestmentispricedattheinitialinvestment
cost,andthecostofthelong-termequityinvestmentisadjustedaccordingtoadditionalinvestmentorrecovered
investment.Exceptthepriceactuallypaidwhenacquiredinvestmentorcashdividendsorprofitsthathavebeen
declaredbutnotyetpaidincludedintheconsideration,currentinvestmentincomeisrecognizedbythecash
dividendsorprofitsdeclaredbytheinvestee.
(2)Long-termequityinvestmentaccountedbyequitymethod
Whentheequitymethodisusedforaccounting,iftheinitialinvestmentcostofthelong-termequityinvestmentis
greaterthanthefairvalueoftheinvestee’sidentifiablenetassets,theinitialinvestmentcostofthelong-term
equityinvestmentshallnotbeadjusted;iftheinitialinvestmentcostislessthanthefairvalueoftheinvestee’s
identifiablenetassets,thedifferenceshallberecordedintothecurrentprofitsandlosses,andthecostofthe
long-termequityinvestmentshallbeadjustedatthesametime.
Whentheequitymethodisusedforaccounting,theinvestmentincomeandothercomprehensiveincomeshallbe
recognizedseparatelyaccordingtothenetprofitorlossandothercomprehensiveincomerealizedbytheinvestee,
andthebookvalueofthelong-termequityinvestmentshallbeadjustedatthesametime.Thepartentitledshallbe
calculatedaccordingtotheprofitsorcashdividendsdeclaredbytheinvestee,andthebookvalueofthelong-term
equityinvestmentshallbereducedaccordingly.Forotherchangesintheowner’sequityotherthanthenetprofit
orloss,othercomprehensiveincomeandprofitdistributionoftheinvestee,thebookvalueofthelong-termequity
investmentshallbeadjustedandincludedinthecapitalreserve.Whentheshareofthenetprofitorlossofthe
investeeisrecognized,thenetprofitoftheinvesteeshallbeadjustedandrecognizedaccordingtothefairvalueof
theidentifiableassetsoftheinvesteewhentheinvestmentismade.Iftheaccountingpoliciesandaccounting
periodsadoptedbytheinvesteeareinconsistentwiththeCompany,thefinancialstatementsoftheinvesteeshall
beadjustedaccordingtotheaccountingpoliciesandaccountingperiodsoftheCompanyandtheinvestment
incomeandothercomprehensiveincomeshallbe recognizedaccordingly.Forthetransactionsbetweenthe
Companyandassociatesandjointventures,iftheassetsmadeorsolddon’tconstitutebusiness,theunrealized
gainsandlossesoftheinternaltransactionsareoffsetbytheproportionattributabletotheCompany,andthe
investmentgainsandlossesarerecognizedaccordingly.However,thelossofunrealizedinternaltransactions
incurredbytheCompanyandtheinvesteeattributabletotheimpairmentlossofthetransferredassetsshallnotbe
offset.Iftheassetsmadetoassociatesorjointventuresconstitutebusiness,andtheinvestormakeslong-term
equityinvestmentbutdoesnotobtainthecontrol,thefairvalueoftheinvestmentshallbetakenastheinitial
investmentcostofthenewlong-termequityinvestment,andthedifferencebetweeninitialinvestmentandthe
bookvalueoftheinvestmentisfullyrecognizedinprofitorlossforthecurrentperiod.Iftheassetssoldbythe
Companytojointventuresorassociatesconstitutebusiness,thedifferencebetweentheconsiderationandthebook
valueofthebusinessshallbefullycreditedtothecurrentprofitsandlosses.IftheassetspurchasedbyCompany
fromjoint venturesorassociates constitutebusiness, conduct accountingtreatmentin accordancewiththe
provisionsofAccountingStandardforBusinessEnterprisesNo.20-Businesscombination,andtheprofitsor
lossesrelatedtothetransactionshallberecognizedinfull.
Whenthenetlossincurredbytheinvesteeisrecognized,thebookvalueofthelong-termequityinvestmentand
otherlong-termequitythatsubstantiallyconstitutethenetinvestmentintheinvesteeshallbewrittendowntozero.
Inaddition,iftheCompanyhasanobligationtobearadditionallossestotheinvestee,theestimatedliabilitiesare
recognizedinaccordancewiththeobligationsassumedandincludedinthecurrentinvestmentlosses.Ifthe
investeehasrealizednetprofitinlaterperiod,theCompanywillresumetherecognitionoftheincomeshareafter
theincomesharehasmadeuptheunrecognizedlossshare.
(3)Acquisitionofminorityinterests
Inthepreparationoftheconsolidatedfinancialstatements,capitalreserveshallbeadjustedaccordingtothe
differencebetweenthelong-termequityinvestmentincreasedduetothepurchaseofminorityinterestsandthe
shareofthenetassetsheldbythesubsidiaryfromthedateofpurchase(orthedateofcombination)calculated
accordingtotheproportionofthenewshareholdingratio,andretainedearningsshallbeadjustedifthecapital
reserveisinsufficienttooffset.
(4)Disposaloflong-termequityinvestment
Intheconsolidatedfinancialstatements,theparentcompanypartiallydisposesofthelong-termequityinvestment
inthesubsidiarywithoutthelossofcontrol,andthedifferencebetweenthedisposalpriceandthenetassetsofthe
subsidiarycorrespondingtothedisposalofthelong-termequityinvestmentisincludedintheshareholders’equity.
Ifthedisposaloflong-termequityinvestmentinsubsidiariesresultsinthelossofcontroloverthesubsidiaries,
handleinaccordancewiththerelevantaccountingpoliciesdescribedinNote5:Importantaccountingpoliciesand
accountingestimates,andNote6:Preparationmethodofconsolidatedfinancialstatements.
Inothercases,thedifferencebetweenthebookvalueandtheactualacquisitionpriceshallberecordedintothe
currentprofitsandlossesforthedisposalofthelong-termequityinvestment.
Forlong-termequityinvestmentaccountedbytheequitymethodandresidualequityafterdisposalstillaccounted
bytheequitymethod,othercomprehensiveincomeoriginallyincludedintheshareholders’equityshallbetreated
inthesamebasisoftheinvesteedirectlydisposingrelatedassetsorliabilitiesbycorrespondingproportion.The
owner’sequityrecognizedbythechangeoftheowner’sequityoftheinvesteeotherthanthenetprofitorloss,
othercomprehensiveincomeandprofitdistributioniscarriedforwardproportionallyintothecurrentprofitsand
losses.
Forlong-termequityinvestmentaccountedbythecostmethodandresidualequityafterdisposalstillaccountedby
thecostmethod,othercomprehensiveincomeaccountedbyequitymethodorrecognizedbyfinancialinstrument
andaccountedandrecognizedbymeasurementcriteriabeforetheacquisitionofthecontrolovertheinvesteeis
treatedinthesamebasisoftheinvesteedirectlydisposingrelatedassets orliabilities,andcarriedforward
proportionatelyintothecurrentprofitsandlosses.Otherchangesofowner’sequityinnetassetsoftheinvestee
accountedandrecognizedbytheequitymethodotherthanthenetprofitorloss,othercomprehensiveincomeand
profitdistributionarecarriedforwardproportionallyintothecurrentprofitsandlosses.
3.Impairmentprovisionsforlong-termequityinvestments
Fortherelevanttestingmethodandprovisionmakingmethod,see“22.Impairmentoflong-termassets”herein.
15.Investmentrealestates
Measurementmodeofinvestmentrealestates
Notapplicable
16.Fixedassets
(1)Recognitionconditions
FixedassetsoftheCompanyreferstothetangibleassetsthatsimultaneouslypossessthefeaturesasfollows:theyareheldforthe
sakeofproducingcommodities,renderinglaborservice,rentingorbusinessmanagement;andtheirusefullifeisinexcessofone
accountingyearandunitpriceishigher.Nofixedassetsmayberecognizedunlessitsimultaneouslymeetstheconditionsasfollows:
①TheeconomicbenefitspertinenttothefixedassetarelikelytoflowintotheCompany;and②Thecostofthefixedassetcanbe
measuredreliably.
(2)Depreciationmethod
Expectednetsalvage
Categoryoffixedassets Method Usefullife Annualdeprecation
value
Housingandbuilding Average method of3―30years
5% 31.67%-3.17%
usefullife
Machineryequipments Average method of2―10years
5% 47.50%-9.50%
usefullife
Transportationvehicle Average method of5―10years
5% 19.00%-9.50%
usefullife
Electronicequipment Average method of2―8years
5% 47.50%-11.88%
usefullife
(3)Recognitionbasis,pricinganddepreciationmethodoffixedassetsbyfinancelease
Notapplicable
17.ConstructioninProgress
1.Pricingofconstructioninprogress
Theconstructionsareaccountedaccordingtotheactualcostsincurred.Theconstructionsshallbecarriedforward
intofixedassetsattheactualcostwhenreachintendedusablecondition.Theborrowingexpenseseligiblefor
capitalizationincurredbeforethedeliveryoftheconstructionareincludedintheconstructioncost;afterthe
delivery,therelevantinterestexpenseshallberecordedintothecurrentprofitsandlosses.
2.Standardandtimeofconstructioninprogresscarryingforwardintofixedassets
TheCompany’sconstructioninprogressiscarriedforwardintofixedassetswhentheconstructioncompletesand
reachesintendedusablecondition.Thecriteriafordeterminingtheintendedusableconditionshallmeetoneofthe
following:
(1) The physical construction (including installation) of fixedassets has been completedor substantially
completed;
(2)Hasbeenproducedorrunfortrial,andtheresultsindicatethattheassetscanrunnormallyorcanproduce
stableproductsstably,ortheresultsofthetrialoperationshowthatitcanoperatenormally;
(3)Theamountoftheexpenditureonthefixedassetsconstructedislittleoralmostnolongeroccurring;
(4)Thefixedassetspurchasedhavereachedthedesignorcontractrequirements,orbasicallyinlinewiththe
designorcontractrequirements.
3.Provisionforimpairmentofconstructioninprogress
PleaserefertoNote5:ImportantaccountingpoliciesandaccountingestimatesandNote22:Long-termdeferred
expensesfortheimpairmenttestmethodandprovisionforimpairmentofconstructioninprogress.
18.Borrowingcosts
TheborrowingcostsrefertointerestandotherrelatedcostsincurredbytheCompanyasaresultofborrowings,
includinginterestonborrowings, amortization ofdiscountsorpremiums,ancillary expensesand exchange
differencesarisingfromforeigncurrencyborrowings.TheborrowingcostsincurredbytheCompanydirectly
attributabletotheacquisition,constructionorproductionofassetseligibleforcapitalizationarecapitalizedand
includedinthecostoftherelevantassets.Otherborrowingcostsarerecognizedasexpensesaccordingtothe
amountatthetimeofoccurrence,andareincludedinthecurrentprofitsandlosses.
1.Principleofcapitalizationofborrowingcosts
Borrowingcostscanbecapitalizedwhenallthefollowingconditionsaremet:Assetexpenditurehasalready
occurred;borrowingcostshavealreadyoccurred;constructionorproductionactivitiesnecessarytobringthe
assetstotheintendeduseableorsellablestatushavealreadybegun.
2.Capitalizationperiodofborrowingcosts
Capitalizationperiodrefersto theperiodfrom thecapitalizationofborrowingcostsstarting totheend of
capitalization,excludingtheperiodwhencapitalizationissuspended.
Ifassetsthatmeettheconditionsofcapitalizationareinterruptedabnormallyinthecourseofconstructionor
production,andtheinterruptiontimeexceeds3consecutivemonths,thecapitalizationofborrowingcostsshallbe
suspended.Theborrowingcostsincurredduringtheinterruptionarerecognizedasexpensesandincludedin
currentprofitsandlossesuntiltheacquisitionorconstructionoftheassetsisresumed.Thecapitalizationofthe
borrowingcostscontinuesiftheinterruptionisaprocedurenecessaryforthepurchaseorproductionofassets
eligibleforcapitalizationtomeettheintendeduseableorsellablestatus.
Theborrowingcostsshallceasetobecapitalizedwhenthepurchasedorproducedassetsthatmeettheconditions
ofcapitalizationmeettheintendeduseableorsellablestatus.Theborrowingcostsincurredaftertheassetseligible
forcapitalizationmeettheintendeduseableorsellablestatuscanbeincludedinthecurrentprofitsandlosses
whenincurred.
3.Calculationmethodofcapitalizedamountofborrowingcosts
Duringtheperiodofcapitalization,thecapitalizationamountofinterests(includingamortizationofdiscountsor
premiums)foreachaccountingperiodisdeterminedinaccordancewiththefollowingprovisions:
(1)Forspecialborrowingsfortheacquisitionorconstructionofassetseligibleforcapitalization,theinterest
expensesactuallyincurredinthecurrentperiodofborrowingsshallberecognizedafterdeductingtheinterest
incomeobtainedbydepositingtheunusedborrowingfundsintothebankorinvestmentincomeobtainedfrom
temporaryinvestment.
(2)Wherethegeneralborrowingisoccupiedfortheacquisitionorconstructionofassetseligibleforcapitalization,
theCompanymultipliestheweightedaverageoftheassetexpenditureoftheaccumulatedassetexpenditure
exceedingthespecialborrowingbythecapitalizationrateofthegeneralborrowingtocalculatetheamountof
interestthatshouldbecapitalizedforgeneralborrowings.Thecapitalizationrateisdeterminedbasedonthe
weightedaverageinterestrateofgeneralborrowings.
19.Biologicalassets
Notapplicable
20.Oil-gasassets
Notapplicable
21.Intangibleassets
(1)Pricingmethod,usefullifeandimpairmenttest
1.Recognitioncriteriaofintangibleassets
Intangibleassetsareidentifiablenon-monetaryassetsthatareownedorcontrolledbytheCompanywithout
physicalform.Theintangibleassetsarerecognizedwhenallthefollowingconditionsaremet:(1)Conformtothe
definitionofintangibleassets;(2)Expectedfutureeconomicbenefitsrelatedtotheassetsarelikelytoflowinto
theCompany;(3)Thecostsoftheassetscanbemeasuredreliably.
2.Initialmeasurementofintangibleassets
Intangibleassetsareinitiallymeasuredatcost.Actualcostsaredeterminedbythefollowingprinciples:
(1)Thecostoftheacquisitionofintangibleassets,includingthepurchaseprice,relevanttaxesandotherexpenses
directlyattributabletotheintendeduseoftheasset.Thepaymentofpurchasepriceofintangibleassetsexceeding
normalcredittermsisdeferred,andthecostofintangibleassetshavingfinancingnatureinessenceshallbe
recognizedbasedonthepresentvalueofthepurchaseprice.Thedifferencebetweentheactualpaymentpriceand
thepresentvalueofthepurchasepriceshallberecordedintothecurrentprofitsandlossesinthecreditperiod
exceptthatcanbecapitalizedinaccordancewiththeAccountingStandardforBusinessEnterprisesNo.17-
BorrowingCost.
(2)Thecostofinvesting inintangibleassetsshallberecognizedaccordingtothevalueagreeduponinthe
investmentcontractoragreement,exceptthatthevalueofthecontractoragreementisunfair.
3.Subsequentmeasurementofintangibleassets
TheCompanyshalldeterminetheusefullifewhenitobtainsintangibleassets.Theusefullifeofintangibleassets
islimited,andtheyearsoftheusefullifeoroutputthatconstitutestheusefullifeorsimilarmeasurementunits
shallbeestimated.Theintangibleassetsareregardedasintangibleassetswithuncertainusefullifeifthetermthat
bringseconomicbenefitstotheCompanyisunforeseeable
Intangibleassetswithlimitedusefullifeshallbeamortizedbystraightlinemethod fromthetimewhenthe
intangibleassetsareavailableuntilcan’tberecognizedasintangibleassets;intangibleassetswithuncertainuseful
lifeshallnotbeamortized.TheCompanyreviewstheestimatedusefullifeandamortizationmethodofintangible
assetswithlimitedusefullifeattheendofeachyear,andreviewstheestimatedusefullifeofintangibleassets
withuncertainusefullifeineachaccountingperiod.Forintangibleassetsthatevidenceshowstheusefullifeis
limited,theusefullifeshallbeestimatedandtheintangibleassetsshallbeamortizedintheestimatedusefullife.
4.Recognitioncriteriaandwithdrawalmethodofintangibleassetimpairmentprovision
Theimpairmenttestmethodandwithdrawalmethodforimpairmentprovisionofintangibleassetsaredetailedin
Note5:Significantaccountingpoliciesandaccountingestimates,andNote22:Long-termassetimpairment.
(2)Accountingpolicyforinternalresearchanddevelopmentexpenditures
TheexpendituresininternalresearchanddevelopmentprojectsoftheCompanyareclassifiedintoexpendituresin
researchstageandexpendituresindevelopmentstage.Theexpendituresinresearchstageareincludedinthe
currentprofitsandlosseswhenincurred.Theexpendituresindevelopmentstagearerecognizedasintangible
assetswhenmeetingthefollowingconditions:
(1)Thecompletionoftheintangibleassetsmakesittechnicallyfeasibleforusingorselling;
(2)Havingtheintentiontocompleteanduseorselltheintangibleassets;
(3)Thewayinwhichanintangibleasset generateseconomicbenefits,includingtheproofthattheproducts
producedwiththeintangibleassethavemarketortheproofofitsusefulnessiftheintangibleassethasmarketand
willbeusedinternally;
(4)Havesufficienttechnical,financialresourcesandotherresourcestosupportthedevelopmentoftheintangible
assetsandtheabilitytouseorselltheintangibleassets;
(5)Expenditureattributabletothedevelopmentstageofintangibleassetscanbemeasuredreliably.
Thecostofself-developedintangibleassetsincludesthetotalexpenditureincurredsincemeetingintangibleassets
recognitioncriterionuntilreachingintendeduse.Expendituresthathavebeenexpensedinpreviousperiodsareno
longeradjusted.
Non-monetaryassetsexchange,debtrestructuring,governmentsubsidiesandthecostofintangibleassetsacquired
bybusinesscombinationarerecognizedaccordingtorelevantprovisionsofAccountingStandardforBusiness
EnterprisesNo.7-Non-monetaryassetsexchange,AccountingStandardforBusinessEnterprisesNo.12-Debt
restructuring, AccountingStandards for Business Enterprises No. 16- Government subsidies, Accounting
StandardforBusinessEnterprisesNo.20-Businesscombinationrespectively.
22.Impairmentoflong-termassets
Fornon-currentnon-financialassetssuchasfixedassets,constructioninprogress,intangibleassetswithlimited
usefullife,investmentrealestatemeasuredincostmodeandlong-termequityinvestmentsinsubsidiaries,joint
venturesandassociates,theCompanydetermineswhetherthereisindicationofimpairmentatbalancesheetdate.
Ifthereisindicationofimpairment,thenestimatetheamountofitsrecoverablevalueandtesttheimpairment.
Goodwill,intangibleassetswithuncertainusefullifeandintangibleassetsthathavenotyetreacheduseablestate
shallbetestedforimpairmenteveryyear,whetherornotthereisanyindicationofimpairment.
Iftheimpairmenttestresultsindicatethattherecoverableamountoftheassetislowerthanitsbookvalue,the
impairmentprovisionshallbemadeatthedifferenceandincludedintheimpairmentloss.Therecoverableamount
isthehigherofthefairvalueoftheassetminusthedisposalcostandthepresentvalueoftheexpectedfuturecash
flowoftheasset.Thefairvalueoftheassetisrecognizedaccordingtothepriceofthesalesagreementinthefair
trade;ifthereisnosalesagreementbutthereisanactivemarket,thefairvalueisrecognizedaccordingtothe
buyer’sbidoftheasset;ifthereisnosalesagreementoractivemarket,thefairvalueofassetshallbeestimated
basedonthebestinformationthatcanbeobtained.Disposalcostsincludelegalcostsrelatedtodisposalofassets,
relatedtaxes,handlingcharges,anddirectcostsincurredtoenabletheassetreachingsellablestatus.Thepresent
valueoftheexpectedfuturecashflowsoftheassetsisrecognizedbytheamountdiscountedatappropriate
discountrateaccordingtotheexpectedfuturecashflowsarisingfromthecontinuinguseoftheassetandthefinal
disposal.Theprovisionforimpairmentofassetsiscalculatedandrecognizedonthebasisofindividualassets.Ifit
isdifficulttoestimatetherecoverableamountofindividualassets,therecoverableamountoftheassetgroupshall
berecognizedbytheassetgrouptowhichtheassetbelongs.Theassetgroupisthesmallestportfolioofassetsthat
cangeneratecashinflowsindependently.
Thebookvalueofthegoodwillpresentedseparatelyinthefinancialstatementsshallbeapportionedtotheasset
grouporportfolioofassetgroupsthatisexpectedtobenefitfromthesynergiesofthebusinesscombinationwhen
theimpairmenttestisconducted.Thecorrespondingimpairmentlossisrecognizedifthetestresultsindicatethat
therecoverableamountoftheassetgrouporportfolioofassetgroupscontainingtheapportionedgoodwillis
lowerthanitsbookvalue.Theamount oftheimpairment lossshalloffsetthebookvalueofthegoodwill
apportionedtotheassetgrouporportfolioofassetgroups,andoffsetthebookvalueofotherassetsinproportion
accordingtotheproportionofthebookvalueofotherassetsexceptthegoodwillintheassetgrouporportfolioof
assetgroups.Oncetheimpairmentlossoftheaboveassetisrecognized,theportionthatthevalueisrestoredwill
notbewrittenbackinsubsequentperiods.
23.Amortizationmethodoflong-termdeferredexpenses
Long-termdeferredexpensesrefertogeneralexpenseswiththeapportionedperiodoveroneyear(oneyear
excluded)thathaveoccurredbutattributabletothecurrentandfutureperiods.Long-termdeferredexpenseshall
beamortizedaveragelywithinbenefitperiod.Incaseofnobenefitinthefutureaccountingperiod,theamortized
valueofsuchprojectthatfailstobeamortizedshallbetransferredintotheprofitsandlossesofthecurrentperiod.
24.Payroll
(1)Accountingtreatmentofshort-termcompensation
Short-termcompensation mainlyincludingsalary, bonus,allowancesand subsidies, employeeservicesand
benefits,medicalinsurancepremiums,birthinsurancepremium,industrialinjuryinsurancepremium,housing
fund, labor union expenditure and personnel education fund, non-monetary benefits etc. The short-term
compensationactuallyhappenedduringtheaccountingperiodwhentheactivestaffofferingtheserviceforthe
Groupshouldberecognizedasliabilitiesandisincludedinthecurrentgainsandlossesorrelevantassetscost.Of
whichthenon-monetarybenefitsshouldbemeasuredaccordingtothefairvalue.
(2)Accountingtreatmentofthewelfareafterdemission
Welfareafterdemissionmainlyincludesdefinedcontributionplansanddefinedbenefitplans.Ofwhichdefined
contributionplansmainlyincludebasicendowmentinsurance,unemploymentinsurance,annuityfunds,etc.,and
thecorrespondingpayableanddepositamountshouldbeincludedintotherelevantassetscostorthecurrentgains
andlosseswhenhappen.
(3)Accountingtreatmentofthedemissionwelfare
Ifanenterprisecancelsthelaborrelationshipwithanyemployeepriortotheexpirationoftherelevantlabor
contractorbringsforwardanycompensationproposalforthepurposeofencouragingtheemployeetoaccepta
layoff,andshouldrecognizethepayrollliabilitiesoccurredfromthedemissionwelfarebaseontheearlierdate
betweenthetimewhentheGroupcouldnotone-sidedwithdrawthedemissionwelfarewhichofferedbytheplan
orlayoffproposalowningtorelievethelaborrelationshipandthedatetheGrouprecognizesthecostrelatedtothe
reorganizationofthepaymentofthedemissionwelfareandatthesametimeincludeswhichintothecurrentgains
andlosses.Butifthedemissionwelfareisestimatedthatcouldnottotallypayaftertheendoftheannualreport
within12months,shouldbedisposedaccordingtootherlong-termpayrollpayment.
(4)Accountingtreatmentofthewelfareofotherlong-termstaffs
Theinsideemployeeretirementplanistreatedbyadoptingthesameprinciplewiththeabovedismissionwelfare.
Thegroupwouldrecordedthesalaryandthesocialsecurityinsurancefeespaidandsoonfromtheemployee’s
serviceterminativedatetonormalretirementdateintocurrentprofitsandlosses(dismissionwelfare)underthe
conditionthattheymeettherecognitionconditionsofestimatedliabilities.
Theotherlong-termwelfarethattheGroupofferstothestaffs,ifmetwiththesettingdrawingplan,shouldbe
accountingdisposedaccordingtothesettingdrawingplan,whiletherestshouldbedisposedaccordingtothe
settingrevenueplan.
25.Estimatedliabilities
(1)Recognitionofestimateddebts
Theobligationsuchasexternalguaranty,pendinglitigationorarbitration,productqualityassurance,layoffplan,
losscontract,restructuringanddisposaloffixedassets,pertinenttoacontingenciesshallberecognizedasan
estimateddebtswhenthefollowingconditionsaresatisfiedsimultaneously:①Thatobligationisacurrent
obligationoftheenterprise;②Itislikelytocauseanyeconomicbenefittoflowoutoftheenterpriseasaresultof
performanceoftheobligation;and③Theamountoftheobligationcanbemeasuredinareliableway.
(2)Measurementofestimateddebts
Theestimateddebtsshallbeinitiallymeasuredinaccordancewiththebestestimateofthenecessaryexpensesfor
theperformanceofthecurrentobligation.Ifthereisasequentrangeforthenecessaryexpensesandifallthe
outcomeswithinthisrangeareequallylikelytooccur,thebestestimateshallbedeterminedinaccordancewith
themiddleestimatewithintherange.Inothercases,thebestestimateshallbeconductedinaccordancewiththe
followingsituations,respectively:①IftheContingenciesconcernasingleitem,itshallbedeterminedinthelight
ofthemostlikelyoutcome.②IftheContingenciesconcerntwoormoreitems,thebestestimateshouldbe
calculatedanddeterminedinaccordancewithallpossibleoutcomesandtherelevantprobabilities.③Whenallor
someoftheexpensesnecessaryfortheliquidation ofanestimateddebtsofanenterpriseisexpected tobe
compensatedbyathirdparty,thecompensationshouldbeseparatelyrecognizedasanassetonlywhenitis
virtuallycertainthatthereimbursementwillbeobtained.TheCompanyshallcheckthebookvalueofthe
estimateddebtsonthebalancesheetdate.Theamountofcompensationisnotexceedingthebookvalueofthe
recognizedestimatedliabilities.
26.Share-basedpayment
Notapplicable
27.Otherfinancialinstrumentssuchaspreferredsharesandperpetualcapitalsecurities
Notapplicable
28.Revenue
IstheCompanysubjecttoanydisclosurerequirementsforspecialindustries
No.
(1)Saleofgoods
Norevenuefromsellinggoodsmayberecognizedunlessthefollowingconditionsaremetsimultaneously:①The
significantrisksandrewardsofownershipofthegoodshavebeentransferredtothebuyerbytheCompany;②
TheCompanyretainsneithercontinuousmanagementrightthatusuallykeepsrelationwiththeownershipnor
effectivecontroloverthesoldgoods;③Therevenueamountcouldbereliablymeasured;and④Therelevant
economicbenefitsmayflowintotheCompany,andtherelevantcostwhichhadoccurredorwilloccurcouldbe
reliablymeasured.
Specificprinciplesforrecognitionofthe“domesticsaleandexport”incomesoftheCompany:
①Methodforrecognitionofthedomesticsaleincome:Accordingtothebuyer’srequirements,theCompany
deliverstothebuyertheproductsthathavebeenconsideredqualifieduponexamination.Theamountofthe
incomehasbeendeterminedandthesalesinvoicehasbeenissued.Thepaymentforthedeliveredproductshas
beenreceivedinfullorisexpectedlyrecoverable.
②Methodforrecognitionoftheexportincome:TheCompanyproducestheproductsaccordingtothecontract
signedwiththebuyer.Aftertheproductshavebeenexaminedasqualified,theCompanycompletesthecustoms
clearingprocedureforexport.Theshippingcompanyloadstheproductsforshipping.Theamountoftheincome
hasbeendeterminedandtheexportsalesinvoicehasbeenissued.Thepaymentforthedeliveredproductshas
beenreceivedinfullorisexpectedlyrecoverable.
2.Provisionoflaborservices
Inthecasethattheresultsofthelaborservicetransactioncanbereliablyestimated,theincomefromtheprovision
oflaborservicesshallberecognizedatthebalancesheetdatebythepercentageofcompletionmethodaccording
totheprogressofthelabortransaction.
Theresultoftheprovisionoflaborservicescanbereliablyestimatedrefersthatallthefollowingconditionsare
met:①Theamountofincomecanbemeasuredreliably;②Therelevanteconomicbenefitsarelikelytoinflowto
theenterprise;③Theprogressofthetransactioncanbereliablydetermined;④Thecostincurredandtobe
incurredinthetransactioncanbemeasuredreliably.
Iftheresultoftheprovisionoflaborservicescan’tbereliablyestimated,theincomefromtheprovisionoflabor
servicesshallberecognizedaccordingtothecostoflaborservicesthathaveincurredandareexpectedtobe
compensated,andthecostoflaborservicesthathaveincurredisrecognizedasthecurrentexpenses.Ifthecostof
laborservicesalreadyincurredisn’texpectedtobecompensated,theincomewillnotberecognized.
IfthecontractoragreementbetweentheCompanyandotherenterprisesincludesthesaleofgoodsandthe
provisionoflaborservices,andthesaleofgoodsandtheprovisionoflaborservicescanbedistinguishedand
measuredseparately,thesaleofgoodsandtheprovisionoflaborservicesshallbedealtwithseparately;ifthesale
ofgoodsandtheprovisionoflaborservicescan’tbedistinguishedorcan’tbemeasuredseparately,thecontract
willbetreatedassaleofgoods.
3.Incomefromtransferringtherighttouseassets
Theoperatingincomeiscalculatedandrecognizedaccordingtothetimeandmethodstipulatedbyrelevant
contractsandagreements.
4.Interestincome
Recognizedwhenallthefollowingconditionsaremet:①Theamountofincomecanbemeasuredreliably;②
Economicbenefitsrelatedtothetransactioncaninflow.
29.GovernmentSubsidies
(1)Judgmentbasisandaccountingtreatmentofgovernmentsubsidiesrelatedtoassets
TheCompanydefinesgovernmentsubsidiesobtainedforacquisition,constructionorotherwiseformationof
long-termassetsasgovernmentsubsidiesrelatedtoassets.Ifthegovernmentdocumentsdonotspecifythe
subsidy object, the subsidies are dividedinto income-related subsidies and assets-relatedsubsidies in the
followingmethod:(1) Ifthespecificitemsfor whichthe subsidyistargetedarestipulatedingovernment
documents,divideaccordingtotherelativeproportionoftheamountofexpenditurethatformsassetsandthe
amountofexpenditureincludedinthecostinthebudgetforthatparticularproject,andtheproportionshallbe
reviewedateachbalancesheetdateandchangedasnecessary;(2)itisincome-relatedgovernmentsubsidiesifthe
governmentdocumentsonlyhaveageneralstatementofthepurposeanddonotspecifyaspecificproject.
Thegovernmentsubsidiespertinenttoassetsshallberecognizedasdeferredincome,equallydistributedwithin
theusefullivesoftherelevantassets,andincludedinthecurrentprofitsandlosses.Butthegovernmentsubsidies
measuredattheirnominalamountsshallbedirectlyincludedinthecurrentprofitsandlosses.
(2)Judgmentbasisandaccountingtreatmentofgovernmentsubsidiespertinenttoincomes
Othergovernmentsubsidiesthanthoserecognizedasgovernmentsubsidiespertinenttoassetsin(1)aboveare
governmentsubsidiespertinenttoincomes.
Thegovernmentsubsidiespertinenttoincomesshallbetreatedrespectivelyinaccordancewiththecircumstances
asfollows:thosesubsidiesusedforcompensatingtherelatedfutureexpensesorlossesoftheenterpriseshallbe
recognizedasdeferredincomeandshallincludedinthecurrentprofitsandlossesduringtheperiodwhenthe
relevantexpensesarerecognized;orthosesubsidiesusedforcompensatingtherelatedexpensesorlossesincurred
totheenterpriseshallbedirectlyincludedinthecurrentprofitsandlosses.
30.Deferredincometaxassets/deferredincometaxliabilities
Atthebalance sheetdate, theCompanyrecognizes thedeferredincometaxassetsordeferred incometax
liabilitiesinaccordancewiththebalancesheetliabilitymethodforthetemporarydifferencebetweenthebook
valueofassetsorliabilitiesanditstaxbase.
TheCompanyrecognizesalltaxabletemporarydifferencesasdeferredincometaxliabilitiesunlesstaxable
temporarydifferencesariseinthefollowingtransactions:
(1)Theinitialrecognitionofgoodwillortheinitialrecognitionoftheassetsorliabilitiesarisingfromatransaction
withthefollowingcharacteristics:thetransactionisnotabusinesscombinationandneithertheaccountingprofit
northetaxableincomeisincurredatthetimeofthetransaction;
(2)Thetimeofwrite-backoftaxabletemporarydifferencesrelatedtotheinvestmentsinsubsidiaries,associates
andjointventurescanbecontrolledandthetemporarydifferencesarelikelytonotbewrittenbackinthe
foreseeablefuture.
TheCompanyrecognizesthedeferredincometaxassetsarisingfromdeductibletemporarydifferences,subjectto
theamount oftaxableincomeobtainedtooffsetthedeductibletemporarydifferences,unlessthedeductible
temporarydifferencesariseinthefollowingtransactions:
(1)Thetransactionisnotabusinesscombination,andthetransactiondoesnotaffecttheaccountingprofitorthe
amountoftaxableincome;
(2)Thedeductibletemporarydifferencesrelatedtotheinvestmentsinsubsidiaries,associatesandjointventures
arenotmetsimultaneously:Temporarydifferencesarelikelytobewrittenbackintheforeseeablefutureandare
likelytobeusedtooffsetthetaxableincomeofdeductibletemporarydifferencesinthefuture.
Atthebalance sheetdate,theCompanymeasures thedeferred incometaxassetsanddeferred incometax
liabilitiesattheapplicabletaxrateoftheperiodexpectedtorecovertheassetorpayofftheliabilitiesaccordingto
taxlaw,andreflectstheincometaxeffectofexpectedassetsrecoveryorliabilitiespayoffmethodatthebalance
sheetdate.
Atthebalancesheetdate,theCompanyreviewsthebookvalueofthedeferredincometaxassets.Ifitislikely
thatsufficienttaxableincomewillnotbeavailabletooffsetthebenefitofthedeferredincometaxassetsinthe
futureperiod,thebookvalueofthedeferredincometaxassetswillbewrittendown.Ifitisprobablethat
sufficienttaxableincomewillbeavailable,theamountofwrite-downwillbewrittenback.
31.Lease
(1)Accountingtreatmentofoperatinglease
Fortheleaseeoftheoperatinglease,therentexpensesfromoperatingleasesshallberecordedbythelesseeinthe
relevantassetcostsortheprofitsandlossesofthecurrentperiodbyusingthestraight-linemethodovereach
periodoftheleaseterm.Theinitialdirectcostsshallberecognizedastheprofitsandlossesofthecurrentperiod;
thecontingentrentsshallberecordedintotheprofitsandlossesofthecurrentperiodinwhichtheyactuallyarise.
Alessorshallincludetheassetssubjecttooperatingleasesinrelevantitemsofitsbalancesheetsinlightofthe
natureoftheasset；Therentsfromoperatingleasesshallberecordedintheprofitsandlossesofthecurrentperiod
byusingthestraight-linemethodovereachperiodoftheleaseterm；theinitialdirectcostsincurredtoalessor
shallberecordedintotheprofitsandlossesofthecurrentperiod.Asforthefixedassetssubjecttooperating
leases,thelessorshallcalculatethedepreciationofitbyadoptingdepreciationpolicyforsimilarassets;asfor
otherleasedassets,systematicandreasonablemethodsshallbeadoptedforitsamortization;thecontingentrents
shallberecordedintheprofitsandlossesoftheperiodinwhichtheyactuallyarise.
(2)Accountingtreatmentsoffinanciallease
Ontheleasebeginningdate,alesseeshallrecordtheloweroneofthefairvalueoftheleasedassetandthepresent
valueoftheminimumleasepaymentsontheleasebeginningdateastheenteringvalueinanaccount,recognize
theamountoftheminimumleasepaymentsastheenteringvalueinanaccountoflong-termaccountpayable,and
treatthebalance between therecorded amount ofthe leased asset and thelong-termaccount payableas
unrecognizedfinancingcharges; theinitial direct costssuch as commissions, attorney's feesand traveling
expenses,stampdutiesdirectlyattributabletotheleaseditemincurredduringtheprocessofleasenegotiatingand
signingtheleasingagreementshallberecordedintheassetvalueofthecurrentperiod;whenamortizingthe
unrecognizedfinancialchargesduringeachperiodwithintheleaseterm,shouldrecognizethecurrentfinancial
expensesbytheactualinterestsrate;andthecontingentrentalshouldbeincludedthecurrentgainsandlosses
whenactuallyariseWhenalesseecalculatesthepresentvalueoftheminimumleasepayments,ifitcanobtainthe
lessor'sinterestrateimplicitinthelease,itshalladopttheinterestrateimplicitintheleaseasthediscountrate.
Otherwise,itshalladopttheinterestrateprovidedintheleaseagreementasthediscountrate.Incasethelessee
cannotobtainthelessor'sinterestrateimplicitintheleaseandnointerestrateisprovidedintheleaseagreement,
thelesseeshalladopttheborrowinginterestrateofthebankforthesameperiodasthediscountrate.Ifitis
reasonabletobecertainthatthelesseewillobtaintheownershipoftheleasedassetwhentheleasetermexpires,
theleasedassetshallbefullydepreciatedoveritsusefullife.Ifitisnotreasonabletobecertainthatthelesseewill
obtaintheownershipoftheleasedassetattheexpiryoftheleaseterm,theleasedassetshallbefullydepreciated
overtheshorteroneoftheleasetermoritsusefullife.Onthebeginningdateoftheleaseterm,alessorshall
recognizethesumoftheminimumleasereceiptsontheleasebeginningdateandtheinitialdirectcostsasthe
enteringvalueinanaccountofthefinancingleasevaluesreceivable,andrecordtheunguaranteedresidualvalue
atthesametime;thebalancebetweenthesumsoftheminimumleasereceipts,theinitialdirectcostsandthe
unguaranteedresidualvalue,andthesumoftheirpresentvaluesshallberecognizedasunrealizedfinancing
income;theunrealizedfinancingincomeshallbeallocatedtoeachperiodduringtheleaseterm;thelessorshall
calculatethefinancingincomeatthecurrentperiodbyadoptingtheeffectiveinterestratemethod;contingent
rentsshallberecognizedasanexpenseintheperiodinwhichtheyareactuallyincurred.
32.Othersignificantaccountingpoliciesandestimates
Notapplicable
33.Changesinmainaccountingpoliciesandestimates
(1)Changeofaccountingpolicies
□Applicable√Notapplicable
(2)Significantchangesinaccountingestimates
□Applicable√Notapplicable
34.Other
Naught
VITaxes
1.Maintaxesandtaxrates
Categoryoftax Taxableamount Taxrate
Balanceaftertheoffsetofoutputandinput11%、17%
VAT
VAT
Urbanmaintenanceandconstructiontax Turnovertaxpayable 7%、5%
Enterpriseincometax Taxableincome 15%、25%
Educationalsurtax Turnovertaxpayable 3%
Localeducationalsurtax Turnovertaxpayable 2%
Notesofthedisclosuresituationofthetaxpayingbodieswithdifferententerprisesincometaxrate
Taxpayer Incometaxrate
FoshanElectricalandLightingCo.,Ltd. 15%
FoshanChanchangElectricAppliance(Gaoming)Co.,Ltd. 25%
FoshanChanshengElectronicBallastCo.,Ltd. 25%
FoshanTaimeiTimesLampsandLanternsCo.,Ltd. 25%
NanjingFozhaoLightingComponentsManufacturingCo.,Ltd. 25%
FoshanElectrical&Lighting(Xinxiang)Co.,Ltd. 25%
FSLNewLightSourceTechnologyCo.,Ltd. 25%
GuangdongFozhaoLeasingCo.,Ltd. 25%
FoshanLightingLampsandLanternsCo.,Ltd. 25%
FSLZhidaElectricTechnologyCo.,Ltd. 25%
2.Taxpreference
TheCompanypassedthere-examinationfortheFirstBatchHigh-techEnterprisein2014onMarch17,2015,as
wellaswonthe“CertificateofHigh-techEnterprise”withserialnumberGR201444001411afterapprovalby
DepartmentofScienceandTechnologyofGuangdongProvince,DepartmentofFinanceofGuangdongProvince,
GuangdongProvincial Bureau of State Taxationand Guangdong ProvincialBureau ofLocal Taxation. In
accordancewithrelevantprovisionsinCorporateIncomeTaxLawofthePeople'sRepublicofChinaandthe
AdministrationMeasuresforIdentificationofHigh-techEnterprisespromulgatedin2007,theCompanypaidthe
corporateincometaxbasedonataxrateof15%withinthreeyearssinceJanuary1,2014.
3.Other
Paidaccordingtotherelevantregulationofthetaxlaw.
VII.NotestoMainItemsofConsolidatedFinancialStatements
1.Monetaryfunds
Unit:RMB
Item Closingbalance Openingbalance
Cashonhand 53,479.90 13,058.91
Bankdeposits 806,670,784.99 1,477,005,924.93
Othercurrencyfunds 8,313,754.40 2,264,658.70
Total 815,038,019.29 1,479,283,642.54
Othernotes
2.Financialassetsmeasuredbyfairvalueandthechangesbeincludedinthecurrentgainsandlosses
Naught
3.Derivativefinancialassets
□Applicable√Notapplicable
4.Notesreceivable
(1)Notesreceivablelistedbycategory
Unit:RMB
Item Closingbalance Openingbalance
Bankacceptancebill 26,434,680.74 67,925,843.74
Total 26,434,680.74 67,925,843.74
(2)NotesreceivablepledgedbytheCompanyattheperiod-end
Naught
(3)Notesreceivable whichhadendorsedbytheCompanyorhaddiscountedandhadnotdue onthe
balancesheetdateattheperiod-end
Unit:RMB
Item Amountofrecognitionterminationatthe Amountofnotterminatedrecognitionat
period-end theperiod-end
Bankacceptancebill 120,858,754.05
Total 120,858,754.05
(4)Notestransferredtoaccountsreceivablebecausedrawerofthenotesfailstoexecutedthecontractor
agreement
Naught
Othernotes
The closing balance of thenotes receivable decreased of RMB 41,491,163.00yuan by61.08%over the
period-begin,whichwasmainlydue totheincreaseofpaymentforgoods byendorsing thereceivedbank
acceptancebill.
5.Accountsreceivable
(1)Accountsreceivabledisclosedbycategory
Unit:RMB
Closingbalance Openingbalance
Bookbalance Baddebtprovision Bookbalance Baddebtprovision
Category Withdra Book
Proportio wal Proportio WithdrawalBookvalue
Amount Amount value Amount Amount
n proportio n proportion
n
Accountsreceivable
withsignificant
singleamountfor 10,062,3 10,062,3 10,064, 10,064,66
1.11% 100.00% 1.59% 100.00%
whichbaddebt 78.10 78.10 664.92 4.92
provisionseparately
accrued
Accountsreceivable
withdrawnbaddebt
899,878, 37,444,5 862,433,8624,003 28,745,59 595,257,95
provisionaccording 98.89% 4.16% 98.41% 4.61%
370.83 03.88 66.95 ,551.87 7.87 4.00
tocreditrisks
characteristics 909,940, 47,506,8 862,433,8634,068 38,810,26 595,257,95Total 100.00% 5.22% 100.00% 6.12% 748.93 81.98 66.95 ,216.79 2.79 4.00Accountsreceivablewithsignificantsingleamountforwhichbaddebtprovisionseparatelyaccruedattheperiod-end√Applicable□Notapplicable Unit:RMBAccountsreceivable(by Closingbalance
units) Accountsreceivable Baddebtprovision Withdrawalproportion Withdrawalreasons
Thedebtorwasata
continuouslossdueto
SuzhouMontLighting thescaleandmarketand
10,062,378.10 10,062,378.10 100.00%
Co.,Ltd. otherreasons,sonowit
isnotsuitabletoproduce
continuously.
Total 10,062,378.10 10,062,378.10 -- --
Inthegroups,accountsreceivableadoptingaginganalysismethodtoaccruebaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
Closingbalance
Aging Accountsreceivable Baddebtprovision WithdrawalproportionSubitemwithin1yearWithin1year 865,599,141.43 25,967,974.24 3.00%Subtotalwithin1year 865,599,141.43 25,967,974.24 3.00%1to2years 16,117,550.89 1,611,755.08 10.00%2to3years 2,434,424.81 730,327.45 30.00%Over3years 15,727,253.70 9,134,447.11 58.08%3to4years 11,627,150.17 5,813,575.09 50.00%4to5years 3,896,157.57 3,116,926.06 80.00%Over5years 203,945.96 203,945.96 100.00%Total 899,878,370.83 37,444,503.88 4.16%Notesofconfirmingthebasisofthegroups:Inthegroups,accountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision□Applicable√NotapplicableInthegroups,accountsreceivableadoptingothermethodstowithdrawbaddebtprovision:Naught
(2)Accountsreceivablewithdraw,reversedorcollectedduringtheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB9,788,103.48yuan;theamountofthe
reversedorcollectedpartduringtheReportingPeriodwasofRMB0.00.
(3)Theactualwrite-offaccountsreceivable
Unit:RMB
Item Amount
BeijingSenjiyuanElectronicComponentsSalesCenter 339,032.24
NanjingWeiyimingPhotoelectricTechnologyCo.,Ltd 303,567.17
TEERA-MONGKOLINDUSTRYPUBLIC 213,202.93
ChenzhouWangshengdaMaterialsCo.,Ltd 99,999.82
PanjinPanfengHardwareSalesCo.,Ltd 17,018.73
BureauinFinancein2013 14,703.90
Otherretailsaccounts 103,959.50
Total 1,091,484.29
Notesofaccountsreceivablewrite-off:
Thewrite-offprocesshadbeenperformedfortheaccountsreceivablewrite-offoftheReportingPeriodinaccordancewiththe
provisionsoftheCompany’sbaddebtmanagementsystem.
(4)Top5oftheclosingbalanceoftheaccountsreceivablecollectedaccordingtothearrearsparty
Unit:RMB
Nameofunits Nature Amount Aging
First Paymentforgoods 86,950,173.28 Within1year
Second Paymentforgoods 31,389,810.51 Within1year
Third Paymentforgoods 25,.078,424.52 Within1year
Fourth Paymentforgoods 18,267,713.00 Within1year
Fifth Paymentforgoods 14,737,760.00 Within1year
Total 176,423,881.31
(5)Accountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
Naught
(6)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementof
accountsreceivable
Naught
6.Prepayment
(1)Listbyaginganalysis
Unit:RMB
Closingbalance Openingbalance
Aging Amount Proportion Amount ProportionWithin1year 22,472,029.30 81.17% 25,191,421.39 83.16%1to2years 742,018.33 2.68% 3,788,046.20 12.51%2to3years 3,545,685.81 12.81% 616,046.47 2.03%Over3years 925,285.52 3.34% 696,493.05 2.30%Total 27,685,018.96 -- 30,292,007.11 --(2)Top5oftheclosingbalanceoftheprepaymentcollectedaccordingtotheprepaymenttarget Unit:RMB Nameofunits Closingbalance Aging PercentageoftotalRelationship
amount(%)
First Non-relatedrelationship 2,900,000.00 2to3years 10.47%
Second Non-relatedrelationship 2,094,715.75 Within1year 7.57%
Third Non-relatedrelationship 1,996,800.00 Within1year 7.21%
Fourth Non-relatedrelationship 1,199,640.00 Within1year 4.33%
Fifth Non-relatedrelationship 935,476.71 Within1year 3.38%
Total 9,126,632.46 32.97%
7.Interestreceivable
(1)Categoryofinterestreceivable
Unit:RMB
Item Closingbalance Openingbalance
Depositsonaregularbasis 2,209,500.00 2,555,260.82
Financeproducts 1,008,417.15 2,057,145.98
Total 3,217,917.15 4,612,406.80
(2)Significantoverdueinterest
Naught
8.Dividendreceivable
Naught
9.Otheraccountsreceivable
(1)Otheraccountsreceivabledisclosedbycategory
Unit:RMB
Closingbalance Openingbalance
Bookbalance Baddebtprovision Bookbalance Baddebtprovision
Category Withdra Book Book
Proportio wal value Proportio Withdrawal value
Amount Amount Amount Amount
n proportio n proportion
n
Otheraccounts
receivablewithdrawn
38,455,6 2,439,18 36,016,47 13,527, 1,549,488 11,977,660
baddebtprovision 99.24% 6.34% 97.86% 11.45%
62.27 5.62 6.65 149.04 .46 .58
accordingtocredit
riskscharacteristics
Otheraccounts
receivablewith
insignificantsingle 295,120. 295,120. 295,120 295,120.0
0.76% 100.00% 2.14% 100.00%
amountforwhich 00 00 .00 0
baddebtprovision
separatelyaccrued
38,750,7 2,734,30 36,016,47 13,822, 1,844,608 11,977,660
Total 100.00% 7.06% 100.00% 13.35%
82.27 5.62 6.65 269.04 .46 .58
Otherreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod
□Applicable√Notapplicable
Inthegroups,otheraccountsreceivableadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
Closingbalance
Aging Otheraccountsreceivable Baddebtprovision WithdrawalproportionSubitemwithin1yearWithin1year 33,054,794.93 991,643.84 3.00%Subtotalwithin1year 33,054,794.93 991,643.84 3.00%1to2years 1,972,699.38 197,269.94 10.00%2to3years 3,107,684.06 932,305.22 30.00%Over3years 320,483.90 317,966.62 99.21%3to4years 2,233.32 1,116.66 50.00%4to5years 7,003.10 5,602.48 80.00%Over5years 311,247.48 311,247.48 100.00%
Total 38,455,662.27 2,439,185.62 6.34%
Notes:
Inthegroups,otheraccountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√Notapplicable
Inthegroups,otheraccountsreceivableadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable
(2)Baddebtprovisionwithdrawal,reversedorrecoveredinthereportperiod
TheamountofbaddebtprovisionwasRMB889,703.51yuan,theamountofreversedorrecoveredbaddebtprovisioninthe
ReportingPeriodRMB000.
(3)ParticularsoftheactualverificationofotheraccountsreceivableduringtheReportingPeriod
Unit:RMB
Item Amount
Otherretailsaccounts 6.35
Total 6.35
Ofwhich:othersignificantwrite-offaccountsreceivable:
Naught
(4)Otheraccountreceivableclassifiedbyaccountnature
Unit:RMB
Nature Closingbookbalance Openingbookbalance
VATexporttaxrefunds 15,120,172.36
Performancebond 3,095,428.94 1,959,752.60
Staffborrowanddeposit 11,854,983.51 5,767,808.81
Water&electricityfees 874,384.16 955,738.35
Advancemoneyforstreetlight
3,777,672.16 2,523,547.23
construction
Internalbusinessgroup 295,120.00 295,120.00
Other 3,733,021.14 2,320,302.05
Total 38,750,782.27 13,822,269.04
(5)Thetopfiveotheraccountreceivableclassifiedbydebtoratperiod-end
Unit:RMB
Closingbalanceof
Nameofunits Nature Closingbalance Aging Proportion%
baddebtprovision
VATexporttax
First 15,120,172.36Within1year 39.02% 453,605.17
refunds AdvancemoneyforSecond streetlight 3,777,672.162to3years 9.75% 794,687.92constructionThird Other 1,801,136.00Within1year 4.65% 54,034.08 ApplicationfeesforFourth 1,382,012.61Within1year 3.57% 41,460.38certificationFifth Performancebond 1,332,058.60Within1year 3.44% 39,961.76Total -- 23,413,051.73 -- 60.42% 1,383,749.31(6)AccountsreceivableinvolvedwithgovernmentsubsidiesNaught
(7)Otheraccountreceivablewhichterminatetherecognitionowningtothetransferofthefinancialassets
Naught
(8)Theamountoftheassetsandliabilitiesformedbythetransferandthecontinuesinvolvementofother
accountsreceivable
Naught
10.Inventory
WhethertheCompanyneedstocomplywiththedisclosurerequirementsoftherealestateindustry
No
(1)Categoryofinventory
Unit:RMB
Closingbalance Openingbalance
Item Fallingprice Fallingprice
Bookbalance Bookvalue Bookbalance Bookvalue
reserves reserves
Rawmaterials 91,904,445.39 5,289,467.13 86,614,978.26 116,197,403.06 1,635,294.87 114,562,108.19
Goodsinprocess 52,788,483.44 52,788,483.44 28,522,590.52 28,522,590.52
Inventorygoods 472,426,724.68 13,423,926.27 459,002,798.41 443,843,318.14 14,938,179.05 428,905,139.09
Self-manufacture 133,746,869.72 1,189,614.35 132,557,255.37 179,867,083.78 579,873.99 179,287,209.79
dsemi-finished
product
Low-value
2,188,275.52 2,188,275.52 2,404,557.60 2,404,557.60
fugitiveitems
Total 753,054,798.75 19,903,007.75 733,151,791.00 770,834,953.10 17,153,347.91 753,681,605.19
WhethertheCompanyneedstocomplywiththedisclosurerequirementsofShenzhenStockExchangeIndustryInformation
DisclosureGuidelinesNo.4-Listedcompaniesengagedinseedindustryandplantingbusiness
No
(2)Fallingpricereservesofinventory
Unit:RMB
Increasedamount Decreasedamount
Item Openingbalance Reverseor Closingbalance
Withdrawal Other Other
write-off
Rawmaterials 1,635,294.87 5,299,351.65 1,645,179.39 5,289,467.13
Inventorygoods 14,938,179.05 7,306,926.80 8,821,179.58 13,423,926.27
Self-manufacturedsemi-finished 579,873.99 775,633.91 165,893.55 1,189,614.35product
Total 17,153,347.91 13,381,912.36 10,632,252.52 19,903,007.75
(3)Notesoftheclosingbalanceoftheinventorywhichincludescapitalizedborrowingexpenses
Naught
(4)Completedunsettledassetsformedfromtheconstructioncontactattheperiod-end
Naught
11.Assetsdividedasheld-to-sold
Naught
12.Non-currentassetsduewithin1year
Naught
13.Othercurrentassets
Unit:RMB
Item Closingbalance Openingbalance
DeductibleinputtaxofVAT 46,262,718.17 41,181,826.53
Advancepaymentofenterpriseincometax 23,635.19
Bankfinancialproducts 420,000,000.00 400,000,000.00
Total 466,262,718.17 441,205,461.72
14.Available-for-salefinancialassets
(1)Listofavailable-for-salefinancialassets
Unit:RMB
Closingbalance Openingbalance
Item Depreciation Depreciation
Bookbalance Bookvalue Bookbalance Bookvalue
reserves reserves
Available-for-saleequity 1,764,589,646. 1,758,739,646.1,738,000,857.0
5,850,000.00 5,850,000.00 1,732,150,857.01
instruments 36 36 1
Measuredbyfair 1,454,989,886. 1,454,989,886.1,427,901,096.6
1,427,901,096.63
value 20 20 3
Measuredbycost 309,599,760.16 5,850,000.00303,749,760.16 310,099,760.38 5,850,000.00 304,249,760.38
1,764,589,646. 1,758,739,646.1,738,000,857.0
Total 5,850,000.00 5,850,000.00 1,732,150,857.01
36 36 1
(2)Available-for-salefinancialassetsmeasuredbyfairvalueattheperiod-end
Unit:RMB
Categoryofthe
Available-for-saleequity Available-for-sale
available-for-sale Total
instruments liabilitiesinstruments
financialassets
Costoftheequity
instruments/amortized 119,501,727.41 119,501,727.41costofthedebtinstruments
Fairvalue 1,454,989,886.20 1,454,989,886.20
Changedamountofthe
fairvaluethatbe
accumulativelyrecorded 1,335,488,158.79 1,335,488,158.79
inothercomprehensive
income
(3)Available-for-salefinancialassetsmeasuredbycostattheperiod-end
Unit:RMB
Bookbalance Depreciationreserves Shareholdi Cash
ng bonusof
Investee Period-beg Period-beg proportion the
Increase Decrease Period-end Increase Decrease Period-endamongthe Reporting
in in
investees Period
Shenzhen
Zhonghao 5,850,000. 5,850,000. 5,850,000. 5,850,000. Lessthan
(Group) 00 00 00 00 5.00%
Ltd.
Chengdu
Hongbo 6,000,000. 6,000,000.
6.94%
Industrial 00 00
Co.,Ltd.
Xiamen 292,574,13 292,574,13
5.85%
Bank 3.00 3.00
Guangdon
g
Lessthan
Developm500,000.00 500,000.00
5.00%
entBank
Co.,Ltd.
Foshan
Fochen
Road
5,175,627. 4,675,627.
Developm 500,000.22 7.66%
38 16
ent
Company
Limited
310,099,76 309,599,765,850,000. 5,850,000.
Total 500,000.22 --
0.38 0.16 00 00
(4)Changesoftheimpairmentoftheavailable-for-salefinancialassetsduringtheReportingPeriod
Unit:RMB
Categoryofthe
Available-for-saleequity Available-for-sale
available-for-sale Total
instruments liabilitiesinstruments
financialassets
Withdrawnimpairment 5,850,000.00 5,850,000.00
balanceatthe
period-begin
Withdrawnimpairment
5,850,000.00 5,850,000.00
balanceattheperiod-end
(5)Relevantnotesofthefair valueoftheavailable-for-saleequityinstrumentswhichseriouslyfellor
temporarilyfellbutnotwithdrawntheimpairmentprovision
Othernotes
―Therevenueoftheinvesteecompany,FoshanFochenRoadDevelopmentCompanyLimitedhadbeincludedintheunified
collectiondistributionsystemofFoshanroadandbridgetolls,andtheCompanyhadexecutedamortizationwithintheremained
plantingdurationbyregardingtheinvestmentbalanceastheusufructandtheamortizedinvestmentcostoftheReportingPeriodwas
ofRMB500,000.22yuan.
15.Investmentheld-to-maturity
Naught
16.Long-termaccountsreceivable
Naught
17.Long-termequityinvestment
Unit:RMB
Increase/decrease
Closing
GainsandAdjustme balance
Cash Withdraw
Opening Additiona losses ntof Closing of
Investee Reduced Changes bonusor alof
balance l recognize other balance impairme
investmen ofother profits impairme Other
investmen dunder comprehe nt
t equity announce nt
t theequity nsive provision
dtoissue provision
method income
I.Jointventures
II.Associatedenterprises
Qinghai
FSL
Lithium
29,836,24 1,286,376 31,122,62
Energy
6.62 .00 2.62
Exploitati
onCo.,
Ltd.
Shenzhen 180,558,6 257,589.7 2,080,390 178,735,8
Primatron 86.07 9 .50 85.36
ix
(Nanho)
Electronic
sLtd.
210,394,9 1,543,965 2,080,390 209,858,5
Subtotal
32.69 .79 .50 07.98
210,394,9 1,543,965 2,080,390 209,858,5
Total
32.69 .79 .50 07.98
18.Investmentproperty
(1)Investmentpropertyadoptingcostmeasurementmode
□Applicable√Notapplicable
(2)Investmentpropertyadoptingfairvaluemeasurementmode
□Applicable√Notapplicable
(3)Listoftheinvestmentpropertyfailedtocompletedthepropertycertificate
Naught
19.Fixedassets
(1)Listoffixedassets
Unit:RMB
Housesand Machinery Transportation Electronic
Item Total
buildings equipment equipment equipment
I.Originalbook
value:
1.Opening
643,574,297.79 810,592,982.55 22,120,160.45 23,976,160.84 1,500,263,601.63
balance
2.Increased
4,589,391.32 28,207,291.04 992,312.85 994,921.51 34,783,916.72
amountoftheperiod
(1)Purchase 1,296,522.30 20,846,321.47 992,312.85 994,921.51 24,130,078.13
(2)Transferof
projectunder 3,292,869.02 7,360,969.57 10,653,838.59
construction
(3)Enterprises
combinationincrease
3.Decreased
1,970,199.57 67,346,113.02 406,278.29 68,214.56 69,790,805.44
amountoftheperiod
(1)Disposalor
1,970,199.57 61,308,043.53 406,278.29 68,214.56 63,752,735.95
scrap
(2)Equipment
6,038,069.49 6,038,069.49
transformation 4.Closingbalance 646,193,489.54 771,454,160.57 22,706,195.01 24,902,867.79 1,465,256,712.91II.Accumulateddesperation
1.Opening
385,133,462.44 597,616,093.63 15,094,925.78 16,342,970.63 1,014,187,452.48
balance
2.Increased
12,231,418.42 21,710,315.76 702,193.40 1,755,214.89 36,399,142.47
amountoftheperiod
(1)Withdrawal 12,231,418.42 21,710,315.76 702,193.40 1,755,214.89 36,399,142.47
3.Decreased
412,154.52 57,224,217.64 385,964.37 60,042.55 58,082,379.08
amountoftheperiod
(1)Disposalor
412,154.52 53,078,764.67 385,964.37 60,042.55 53,936,926.11
scrap
(2)Equipment
4,145,452.97 4,145,452.97
transformation 4.Closingbalance 396,952,726.34 562,102,191.75 15,411,154.81 18,038,142.97 992,504,215.87III.Depreciationreserves
1.Opening
40,068,791.46 428.03 40,069,219.49
balance
2.Increased
amountoftheperiod
(1)Withdrawal
3.Decreased
4,214,033.78 4,214,033.78
amountoftheperiod
(1)Disposalor
4,165,026.73 4,165,026.73
scrap
(2)Equipment
49,007.05 49,007.05
transformation 4.Closingbalance 35,854,757.68 428.03 35,855,185.71IV.Bookvalue
1.Closingbook
249,240,763.20 173,497,211.14 7,295,040.20 6,864,296.79 436,897,311.33
value
2.Openingbook
258,440,835.35 172,908,097.46 7,025,234.67 7,632,762.18 446,006,929.66
value
(2)Listoftemporarilyidlefixedassets
Unit:RMB
Accumulated Depreciation
Item Originalbookvalue Bookvalue Remark
depreciation reserves
Nameofthe
announcement:
Announcementon
Withdrawingthe
Preparationforthe
AssetsImpairment
T5,T8,
ontheIdle
energy-savinglamp 95,099,861.20 60,999,110.87 33,801,743.65 299,006.68
Equipmentsand
productionline
Constructionin
Progress;the
AnnouncementNo.:
2015-030;disclosure
website:
www.cninfo.com.cn
(3)Fixedassetsleasedinfromfinancinglease
Naught
(4)Fixedassetsleasedoutfromoperationlease
Naught
(5)Detailsoffixedassetsfailedtoaccomplishcertificationofproperty
Naught
20.Constructioninprogress
(1)Listofconstructioninprogress
Unit:RMB
Closingbalance Openingbalance
Item Depreciation Depreciation
Bookbalance Bookvalue Bookbalance Bookvalue
reserves reserves
Constructionin
147,360,531.44 147,360,531.44 71,479,325.91 71,479,325.91
progress
Total 147,360,531.44 147,360,531.44 71,479,325.91 71,479,325.91
(2)Changesofsignificantconstructioninprogress
Unit:RMB
Of
Amount Proporti which:
Accumul
that on the Capitaliz
Other ative
transferr estimate amount ationrate
Estimate decrease amount
Nameof Opening Increase edto Closing dofthe Project ofthe ofthe Capital
d damount of
item balance damount fixed balance project progress capitaliz interestsresources
number ofthe capitaliz
assetsof accumul ed ofthe
period ed
the ative interests period
interests
period input ofthe
period
Fuwan
intellige
49,000,0 12,977,7 12,977,7
nt 26.49%30.00% Other
00.00 41.38 41.38
worksho
pH
Dproject
of
Gaoming 30,000,018,949,62,753,74 21,703,3
72.34%95.00% Other
standard 00.00 19.56 5.95 65.51
worksho
p
Fuwan
standard 30,000,016,567,36,656,84 23,224,1
77.41%95.00% Other
worksho 00.00 14.48 3.69 58.17
pE
Fuwan
standard 26,400,0 7,786,23 7,786,23
29.49%35.00% Other
worksho 00.00 0.10 0.10
pK2
Fuwan 26,400,0 7,949,14 7,949,14
30.11%35.00% Other
standard 00.00 7.56 7.56
worksho
pK3
Fuwan
standard 22,400,0 6,941,59 6,941,59
30.99%32.00% Other
worksho 00.00 3.11 3.11
pJ1
Fuwan
standard 22,400,0 6,803,03 6,803,03
30.37%32.00% Other
worksho 00.00 2.32 2.32
pJ2
Automat
ion
equipme
nt
system
of 22,000,0 5,533,33 5,533,33
25.15%30.00% Other
intellige 00.00 3.21 3.21
nt
worksho
p
(worksh
opH)
9
assembly
11,000,07,981,042,019,64 10,000,6
linesof 90.92%95.00% Other
00.00 4.20 8.42 92.62
LED
(16005)
LEDT8
automati
cline 6,500,002,907,393,110,43 6,017,83
92.58%99.00% Other
transfor 0.00 8.19 7.44 5.63
mation
(16033)
246,100,46,405,362,531,7 108,937,
Total -- -- --
000.00 76.43 53.18 129.61
(3)Listofthewithdrawaloftheimpairmentprovisionoftheconstructioninprogress
Naught
21.Engineeringmaterial
Naught
22.Liquidationoffixedassets
Naught
23.Productivebiologicalassets
(1)Productivebiologicalassetsadoptingcostmeasurementmode
□Applicable√Notapplicable
(2)Productivebiologicalassetsadoptingfairvaluemeasurementmode
□Applicable√Notapplicable
24.Oilandgasassets
□Applicable√Notapplicable
25.Intangibleassets
(1)Information
Unit:RMB
Item Landuseright Patent Non-patents Softwareuseright Total
I.Originalbook
value
1.Opening
211,719,938.60 200,000.00 2,773,651.87 214,693,590.47
balance
2.Increased
amountoftheperiod
(1)Purchase
(2)InternalR&D
(3)Increasefrom
enterprise
combination
3.Decreaseinthe
ReportingPeriod
(1)Disposal
4.Closing 211,719,938.60 200,000.00 2,773,651.87 214,693,590.47
balance
II.Totalaccrued
amortization
1.Opening
53,104,711.50 200,000.00 1,058,483.84 54,363,195.34
balance
2.Increased
1,937,293.01 220,515.84 2,157,808.85
amountoftheperiod
(1)Withdrawal 1,937,293.01 220,515.84 2,157,808.85
3.Decreasein
theReportingPeriod
(1)Disposal
4.Closing
55,042,004.51 200,000.00 1,278,999.68 56,521,004.19
balance
III.Depreciation
reserves
1.Opening
balance
2.Increased
amountoftheperiod
(1)Withdrawal
3.Decreaseinthe
ReportingPeriod
(1)Disposal
4.Closing
balance
IV.Bookvalue
1.Bookvalueofthe
156,677,934.09 1,494,652.19 158,172,586.28
period-end
2.Bookvalueofthe
158,615,227.10 1,715,168.03 160,330,395.13
period-begin
TheproportiontheintangibleassetsformedfromtheinternalR&DthroughtheCompanyamountthebalanceoftheintangibleassets
attheperiod-endwas0.00%.
(2)Detailsoffixedassetsfailedtoaccomplishcertificationoflanduseright
Naught
26.R&Dexpenses
Naught
27.Goodwill
(1)Originalbookvalueofgoodwill
Naught
(2)Impairmentprovisionofgoodwill
Naught
28.Long-termunamortizedexpenses
Unit:RMB
Amortization
Item Openingbalance Increasedamount Decrease Closingbalance
amount
Maintenanceand
6,897,119.78 1,683,365.04 1,647,573.52 6,932,911.30
decorationexpenses
Total 6,897,119.78 1,683,365.04 1,647,573.52 6,932,911.30
29.Deferredincometaxassets/deferredincometaxliabilities
(1)Deferredincometaxassetshadnotbeenoff-set
Unit:RMB
Closingbalance Openingbalance
Item Deductibletemporary Deferredincometax Deductibletemporary Deferredincometax
difference assets difference assets
Assetsimpairment
136,128,598.22 20,625,526.93 128,070,435.31 19,448,040.38
provision
Unrealizedprofitsof
476,596.87 71,489.53 1,356,293.17 203,443.98
internaltransactions
Deductiblelosses 16,382,698.72 4,095,674.68 16,435,405.51 4,108,851.38
Depreciationoffixed
67,654,979.71 10,479,436.86 65,682,019.37 10,183,492.79
assets
Payrollpayable 36,389,097.70 5,458,364.66 63,987,177.61 9,604,089.91
Total 257,031,971.22 40,730,492.66 275,531,330.97 43,547,918.44
(2)Deferredincometaxliabilitieshadnotbeenoff-set
Unit:RMB
Closingbalance Openingbalance
Item Deductibletemporary Deferredincometax Deductibletemporary Deferredincometax
difference liabilities difference liabilities
Changesofthefairvalue
oftheavailable-for-sale 1,335,488,158.79 200,323,223.82 1,308,399,369.22 196,259,905.39
financialassets
Shareofother
comprehensiveincome
ofinvesteesthatcannot
25,684,598.14 3,852,689.72 25,684,598.14 3,852,689.72
bereclassifiedinto
profit/lossunderthe
equitymethod
Total 1,361,172,756.93 204,175,913.54 1,334,083,967.36 200,112,595.11
(3)Deferredincometaxassetsorliabilitieslistedbynetamountafteroff-set
Unit:RMB
Mutualset-offamountof Amountofdeferred Mutualset-offamountof Amountofdeferred
deferredincometax incometaxassetsor deferredincometax incometaxassetsor
Item assetsandliabilitiesat liabilitiesafteroff-setat assetsandliabilitiesat liabilitiesafteroff-setat theperiod-end theperiod-end theperiod-begin theperiod-beginDeferredincometax 40,730,492.66 43,547,918.44assets
Deferredincometax
204,175,913.54 200,112,595.11
liabilities
(4)Listofunrecognizeddeferredincometaxassets
Naught
(5)Deductiblelossesofunrecognizeddeferredincometaxassetswillduethefollowingyears
Naught
30.Othernon-currentassets
Unit:RMB
Item Closingbalance Openingbalance
Landpurchaseandtheownershipimplicit
41,755,700.00 41,755,700.00
ofrelevantitems
Prepaymentsforbusinessfacilities 2,444,434.60 3,369,640.00
Total 44,200,134.60 45,125,340.00
31.Short-termloans
Naught
32.Financialliabilitiesmeasuredbyfairvalueandthechangesincludedinthecurrentgainsandlosses
Naught
33.Derivativefinancialliabilities
□Applicable√Notapplicable
34.Notespayable
ThetotalunpaidnotespayabledueattheperiodendwasRMB0.00.
35.Accountspayable
(1)Listofaccountspayable
Unit:RMB
Item Closingbalance Openingbalance
Accountspayable 673,397,021.27 552,255,512.33
Total 673,397,021.27 552,255,512.33
(2)Notesoftheaccountspayableagingoveroneyear
Naught
36.Advancefromcustomers
(1)Listofadvancefromcustomers
Unit:RMB
Item Closingbalance Openingbalance
Prepayments 32,657,976.85 41,180,818.13
Total 32,657,976.85 41,180,818.13
(2)Significantadvancefromcustomersagingoveroneyear
Naught
(3)Particularsofsettledbutunfinishedprojectsformedbyconstructioncontractatperiod-end
Naught
37.PayrollPayable
(1)ListofPayrollPayable
Unit:RMB
Item Openingbalance Increase Decrease Closingbalance
I.Short-termsalary 96,021,156.06 319,106,399.00 346,744,195.73 68,383,359.33
II.Welfareafter
demission-defined 25,197,964.53 25,197,964.53
contributionplans
Total 96,021,156.06 344,304,363.53 371,942,160.26 68,383,359.33
(2)ListofShort-termSalary
Unit:RMB
Item Openingbalance Increase Decrease Closingbalance
1.Salary, bonus,allowance,
95,595,393.49 282,014,781.96 309,691,654.41 67,918,521.04
subsidy
2.Employeewelfare 12,695,704.13 12,695,704.13
3.Socialinsurance 15,681,813.55 15,681,813.55
Including:Medicalinsurance
12,905,594.63 12,905,594.63
premiums
Work-related 1,561,453.07 1,561,453.07injuryinsurance Maternityinsurance 1,214,765.85 1,214,765.854.Housingfund 5,987,908.00 5,987,908.005. Labor union budget and 425,762.57 2,726,191.36 2,687,115.64 464,838.29employeeeducationbudgetTotal 96,021,156.06 319,106,399.00 346,744,195.73 68,383,359.33
(3)ListofDrawingScheme
Unit:RMB
Item Openingbalance Increase Decrease Closingbalance
1.Basicpensionbenefits 24,306,411.37 24,306,411.37
2.Unemployment
891,553.16 891,553.16
insurance
Total 25,197,964.53 25,197,964.53
38.TaxesPayable
Unit:RMB
Item Closingbalance Openingbalance
VAT 18,160,385.85 9,504,368.23
Corporateincometax -171,758.70 121,469,524.92
Personalincometax 610,225.20 452,181.32
Urbanmaintenanceandconstructiontax 1,262,089.71 947,172.36
EducationSurcharge 904,746.30 680,460.70
Propertytax 1,104,316.04 4,259,219.31
Landusetax 2,334,756.55 804,737.31
Othertaxes 166,446.47 164,980.57
Total 24,371,207.42 138,282,644.72
Othernotes:
Theclosingbalanceoftaxespayabledrops82.38%,RMB113,911,437.30yuan.comparedtothatofthebeginningoftheperiod,
whichisfromthepaymentofincreaseofcorporateincometaxcausedbyrevenuesgeneratedfromsalesofsharesofGuoxuan
High-techCo.,Ltd.inthefourthquarterofthesameperiodoflastyear.
39.InterestPayable
Naught
40.DividendsPayable
Unit:RMB
Item Closingbalance Openingbalance
Commonstockdividends 6,287,923.09
Total 6,287,923.09
Othernotes:includingthesignificantdividendspayableunpaidformorethanoneyear,thereasonforunpaymentshallbedisclosed:
ThesubsidiaryFoshanTaimeiTimesLampsandLanternsCo.,Ltd.hasdistributedandpaidinthereportingperiodtheprofitsof
2013and2014allocatedatthebeginningoftheyear.
41.OtherAccountsPayable
(1)OtherAccountsPayableListedbyNatureoftheAccount
Unit:RMB
Item Closingbalance Openingbalance
Compensationforlawsuit 1,762,533.43 1,762,533.43
performancebond 18,404,130.82 20,564,161.28
Relevantfeesofsale 1,327,650.91 15,634,331.32
Escrowofhousingprovidentfund,
damages,defaultmoneyanddown 8,076,410.52 8,076,410.52
payment
Others 2,614,851.86 4,066,902.26
Total 32,185,577.54 50,104,338.81
(2)OtherSignificantAccountsPayablewithAgingoverOneYear
Unit:RMB
Item Closingbalance Unpaid/Un-carry-overreason
Escrowofhousingprovidentfund,
damages,defaultmoneyanddown 8,076,410.52
payment
Total 8,076,410.52 --
42.LiabilitiesClassifiedasHoldingforSale
Naught
43.Non-currentLiabilitiesDuewithin1Year
Naught
44.OtherCurrentLiabilities
Naught
45.Long-termLoan
Naught
46.BondsPayable
Naught
47.Long-termPayable
Naught
48.Long-termPayrollPayable
Naught
49.SpecialPayable
Naught
50.AccruedLiabilities
Naught
51.DeferredRevenue
Unit:RMB
Item Openingbalance Increase Decrease Closingbalance Reason
Government
Government
10,449,768.49 1,500,000.00 77,499.96 11,872,268.53subsidiesrelatedto
subsidies
assets/revenues
Total 10,449,768.49 1,500,000.00 77,499.96 11,872,268.53 --
Iteminvolvinggovernmentsubsidies:
Unit:RMB
Amountrecorded
into Relatedto
Amountofnewly
Item Openingbalance non-operating Otherchanges Closingbalance assets/related
subsidy
incomeinreport income
period
LED production
technical Related to the
9,852,274.95 9,852,274.95
transformation assets
project
Productionlineof
50 million Related to the
465,000.15 77,499.96 387,500.19
energy-saving assets
fluorescentlamp
Newtypeoflow
cost silicon
substrate LED Related to the
29,668.32 29,668.32
light source income
module
technology
Standard optical
components
testinglaboratory
capacity Related to the
102,825.07 102,825.07
construction and income
products quality
guarantee
engineering
Suggestionfrom
the
Electro-optical Instituteof Relatedtothe 1,000,000.00 1,000,000.00 Foshan income Electricaland LightingCo.,Ltd.
Overseas
protectionplanof Relatedtothe
500,000.00 500,000.00
intellectual income
propertyofFSL
Total 10,449,768.49 1,500,000.00 77,499.96 11,872,268.53 --
52.OtherNon-currentLiabilities
Naught
53.ShareCapital
Unit:RMB
Increase/decrease(+/-)
Opening Closing
balance Newshares Capitalized balance
Bonusshares Others Subtotal
issued Capital
reserves
Thesumof 1,272,132,868. 1,272,132,868.
shares 00 00
Othernotes:
54.OtherEquityInstruments
Naught
55.CapitalSurplus
Unit:RMB
Item Openingbalance Increase Decrease Closingbalance
Capitalpremium 278,575,487.53 278,575,487.53
Othercapitalreserves 7,245,971.54 7,245,971.54
Total 285,821,459.07 285,821,459.07
56.TreasuryStock
Naught
57.OtherComprehensiveIncome
Unit:RMB
Reportingperiod
Less:recorded
inother
Amount comprehensive Attributable
Opening before incomein Less: toowners Attributable Closing
Item balance incometax priorperiod Incometax ofthe tominority balance incurrent andtransferred expense Company shareholder period toprofitor aftertax saftertax lossincurrentperiod
II.Othercomprehensiveincome 1,133,971,3727,088,789. 4,063,318.423,025,471. 1,156,996
reclassifyintoprofitsandlosses 2.25 57 3 14 ,843.39
Including:sharesenjoyedintheother
comprehensiveincomereclassified 21,831,908.4 21,831,90
intoprofitsandlossesunderthe 2 8.42
equitymethod
Profitsorlossesfromthe
1,112,139,4627,088,789. 4,063,318.423,025,471. 1,135,164
changeoffairvalueofavailablefor
3.83 57 3 14 ,934.97
salefinancialassets
1,133,971,3727,088,789. 4,063,318.423,025,471. 1,156,996
Totalofothercomprehensiveincome
2.25 57 3 14 ,843.39
58.SpecialReserves
Naught
59.SurplusReserves
Unit:RMB
Item Openingbalance Increase Decrease Closingbalance
Statutory surplus
597,038,383.45 597,038,383.45
reserves
Discretionary surplus
136,886,568.36 136,886,568.36
reserves
Total 733,924,951.81 733,924,951.81
60.RetainedEarnings
Unit:RMB
Item ReportingPeriod Lastperiod
Openingbalanceofretainedprofitsbefore
1,564,615,925.99 613,661,381.40
adjustments
Opening balance of retained profits after
1,564,615,925.99 613,661,381.40
adjustments
Add: Net profitattributable to ownersof the
228,494,660.57 206,925,812.72
Company
Dividendofcommonstockpayable 534,295,804.56 15,901,660.85
Closingretainedprofits 1,258,814,782.00 804,685,533.27
Listofadjustmentofopeningretainedprofits:
1)RMB0.00yuanopeningretainedprofitswasaffectedbyretrospectiveadjustmentconductedaccordingtotheAccountingStandards
forBusinessEnterprisesandrelevantnewregulations.
2)RMB0.00yuanopeningretainedprofitswasaffectedbychangesonaccountingpolicies.
3)RMB0.00yuanopeningretainedprofitswasaffectedbycorrectionofsignificantaccountingerrors.
4)RMB0.00yuanopeningretainedprofitswasaffectedbychangesincombinationscopearisingfromsamecontrol.
5)RMB0.00yuanopeningretainedprofitswasaffectedtotallybyotheradjustments.
61.RevenuesandOperatingCosts
Unit:RMB
ReportingPeriod Sameperiodoflastyear
Item Salesrevenue Costofsales Salesrevenue CostofsalesMainoperations 2,010,535,149.65 1,537,416,165.51 1,743,092,467.69 1,315,261,790.95Otheroperations 13,390,433.19 9,515,614.34 12,578,459.75 7,720,769.75Total 2,023,925,582.84 1,546,931,779.85 1,755,670,927.44 1,322,982,560.7062.BusinessTaxandSurcharges Unit:RMB Item ReportingPeriod SameperiodoflastyearUrbanmaintenanceandconstructiontax 7,980,261.34 7,002,504.08EducationSurcharge 5,707,899.61 5,015,667.87Propertytax 3,045,704.60Landusetax 2,621,884.53Vehiclesandvesselsusetax 13,909.92Stampduty 1,016,936.24Businesstax 233,406.51Embankment-protectionfees 6.09Total 20,386,602.33 12,251,578.46Othernotes:thefiveincreasedtaxitemsarereclassifiedfromadministrationexpensesinaccordancewiththeNo.22stipulationofFinance&Accounting[2016].63.SaleExpenses Unit:RMB Item ReportingPeriod SameperiodoflastyearTransportfees 31,103,632.14 26,988,943.15Salary 30,517,319.21 23,124,058.32Businesspropagandizefee 3,408,430.38 5,771,832.24Businesstravelcharges 5,183,499.37 3,730,926.88Salespromotionfee&dealermeeting 7,656,851.44 8,919,049.44expense
Streetlightprojectmaintenancefee 40,600.00
Others 3,782,261.15 4,676,397.38
Total 81,651,993.69 73,251,807.41
64.AdministrationExpenses
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Employee’sremuneration 41,767,426.90 25,133,604.07
Depreciationcharge 9,552,900.65 9,506,297.68
Taxexpenses 7,387,142.35
Officeexpenses 5,129,871.30 4,466,075.16
Amortizationofintangibleassets 2,157,808.85 2,100,959.51
R&Dexpenses 5,467,714.83 3,198,358.61
Testingexpense 1,046,717.25 680,292.67
Others 33,668,381.82 29,645,097.89
Total 98,790,821.60 82,117,827.94
65.FinancialExpenses
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Interestexpenses
Less:interestincome 15,609,163.27 6,489,563.72
Exchangegainsandlosses 6,502,463.05 -556,267.25
Others 1,990,792.86 600,077.93
Total -7,115,907.36 -6,445,753.04
Othernotes:
66.AssetImpairmentLoss
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
I.Baddebtloss 10,677,806.99 14,692,768.91
II.Inventoryfallingpriceloss 13,381,912.36 21,160,604.92
Total 24,059,719.35 35,853,373.83
67.GainsandLossesfromChangesinFairValue
Naught
68.InvestmentIncome
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Long-termequityinvestmentincome
1,543,965.79 -19,640.12
accountedbyequitymethod
Investmentincomereceivedfromdisposalof
financialassetsmeasuredbyfairvalueandthe
261,818.10
changesbeincludedinthecurrentprofitsand
lossesduringholdingperiod
Investmentincomereceivedfromholdingof
6,560,422.50 10,950,922.50
available-for-salefinancialassets
Investmentincomereceivedfromfinancial
6,404,893.95 2,659,136.99
products
Others -500,000.22 -131,489.70
Total 14,009,282.02 13,720,747.77
69.OtherIncome
Naught
70.Non-operatingGains
Unit:RMB
Recordedintheamountofthe
Item ReportingPeriod Sameperiodoflastyear
non-recurringgainsandlosses
Total gains from disposalof
20,253.97
non-currentassets
Including:Gainsfromdisposal
20,253.97
offixedassets
Governmentsubsidies 3,869,949.96 505,099.96 3,869,949.96
Others 2,152,445.92 1,049,662.65 2,152,445.92
Total 6,022,395.88 1,575,016.58 6,022,395.88
Governmentsubsidiesrecordedintocurrentprofitsandlosses
Unit:RMB
Whether
subsidies Special Relatedto
Distribution Distribution Reporting Sameperiod
Item Nature influencethe subsidyor assets/related
entity reason Period oflastyear
current not income
profitsand
lossesornot
Due to
engaged in
special
industry that
the state
Production encouraged
line of 50 and
million supported, Relatedto
Subsidy No No 77,499.96 77,499.96
energy-savin gained assets
g fluorescent subsidy
lamp (obtaining in
linewiththe
law and the
regulationsof
national
policy)
Specialfunds Subsidyfrom
for export R&D
enterprises Technical Relatedto
Award No No 26,000.00 69,000.00
exploitingthe updatingand income
international transformatio
market n,etc.
Subsidyfrom
Award for
R&D
adopting
Technical Relatedto
international Award No No 150,000.00
updatingand income
standard
transformatio
products
n,etc.
Chancheng
Subsidyfrom
District
R&D
Economyand
Technical Relatedto
Science Award No No 300,000.00 66,000.00
updatingand income
Promotion
transformatio
BureauTalent
n,etc.
Subsidy
Subsidyfrom
R&D
Supportfund
Technical Relatedto
forimport Award No No 3,249,240.00
updatingand income
andexport
transformatio
n,etc.
Subsidyfrom
Projectgrants
R&D
from
Technical Relatedto
National Award No No 10,000.00
updatingand income
Spark
transformatio
Program
n,etc.
Subsidyfrom
R&D
Governmenta Technical Relatedto
Award No No 20,000.00
lrewardfund updatingand income
transformatio
n,etc.
The
Subsidyfrom
development
R&D
of science
Technical Relatedto
and Award No No 93,600.00
updatingand income
technology
transformatio
plan project
n,etc.
funds
Subsidyfrom
R&D
Other odd
Technical Relatedto
government Award No No 187,210.00 49,000.00
updatingand income
subsidies
transformatio
n,etc.
Total -- -- -- -- -- 3,869,949.96 505,099.96 --
71.Non-operatingExpenses
Unit:RMB
Recordedintheamountofthe
Item ReportingPeriod Sameperiodoflastyear
non-recurringgainsandlosses
Lossondisposalofnon-current
4,255,164.43 223,092.25 4,255,164.43
assets
Including:Lossondisposalof
4,255,164.43 223,092.25 4,255,164.43
fixedassets
Outwarddonation 2,000.00 2,000.00
Theinventoryscraploss 3,403,353.00
Lawsuitcompensation 100,000.00
Others 512,609.26 1,190,611.69 512,609.26
Total 4,769,773.69 4,917,056.94 4,769,773.69
72.IncomeTaxExpense
(1)ListsofIncomeTaxExpense
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Currentincometaxexpense 39,780,075.57 44,968,418.65
Deferredincometaxexpense 2,817,425.78 -5,542,441.36
Total 42,597,501.35 39,425,977.29
(2)AdjustmentProcessofAccountingProfitandIncomeTaxExpense
Unit:RMB
Item ReportingPeriod
Totalprofits 274,482,477.59
Currentincome taxexpense accounted bytax andrelevant
41,055,651.79
regulations
Influenceofdifferenttaxratesuitabletosubsidiary 3,120,459.39
Influenceofincometaxbeforeadjustment -362,951.59
Influenceofnontaxableincome -1,215,658.24
Incometaxexpense 42,597,501.35
73.OtherComprehensiveIncome
Fordetails,pleaserefertoNotesonmajoritemsinconsolidatedfinancialstatementsoftheCompany,57.
74.InformationofCashFlowStatement
(1)OtherCashReceivedRelevanttoOperatingActivities
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Depositinterest 17,037,947.97 5,465,229.02
Incomefrominsurancecompensation 132,451.15 2,217,602.70
Guaranteedincome -3,637,333.34 2,428,184.00
Propertyandrentalincome 1,737,139.33 1,058,343.21
Incomefromsubsidy 5,010,204.36 939,625.32
Incomefromwaste 5,756,171.75 1,910,274.50
Others 2,857,134.88 1,038,449.92
Total 28,893,716.10 15,057,708.67
(2)OtherCashPaidRelevanttoOperatingActivities
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Transportfees 50,931,038.88 32,535,287.92
Donations, punishment, lawsuit
63,859.62 12,680,691.76
compensationAdvertisingexpense 10,719,132.28 9,850,522.41Auditfees,attorney fees,appraisal cost 7,686,184.18 6,382,707.08anddetectcostBusinessofficeexpenses 7,272,319.87 4,324,091.36Thespareparts,maintenance,andservice 6,530,959.82 1,076,002.69charge
Margin 2,955,498.60 864,301.00
Businesstravelcharges 7,085,185.69 4,541,469.24
Energy-savingpromotionfee 368,987.65
Street light project construction and
1,378,623.48 1,677,736.31
maintenance
Landrentandmanagementfee 3,301,887.73 3,311,454.39
Trademarkfee&patentfee 1,396,336.23 442,693.00
Others 8,568,952.86 4,121,304.08
Total 107,889,979.24 82,177,248.89
(3)OtherCashReceivedRelevanttoInvestmentActivities
Naught
(4)OtherCashPaidRelevanttoInvestmentActivity
Unit:RMB
Item ReportingPeriod Sameperiodoflastyear
Others 39,878.12
The future foreign exchange settlement
7,500,000.00
guaranteedeposit
Total 7,539,878.12
(5)OtherCashReceivedRelevanttoFinancingActivities
Naught
(6)OtherCashPaidRelevanttoFinancingActivities
Naught
75.SupplementalInformationforCashFlowStatement
(1)SupplementalInformationforCashFlowStatement
Unit:RMB
Supplementalinformation ReportingPeriod Sameperiodoflastyear
1.Reconciliationofnetprofittonetcash
-- --
flowsgeneratedfromoperatingactivities
Netprofit 231,884,976.24 206,612,262.26
Add:Provisionforimpairmentofassets 24,059,719.35 35,853,373.83
Depreciation of fixed assets, of oil-gas
36,399,142.47 37,519,048.12
assets,ofproductivebiologicalassets
Amortizationofintangibleassets 2,157,808.85 2,100,959.51
Long-termunamortizedexpenses 1,647,573.52 84,671.95
Lossesondisposaloffixedassets,intangible
assets and other long-termassets (gains: 166,326.42 -20,253.97
negative)
Lossonretirementoffixedassets(gains:
4,088,838.01 223,092.25
negative)
Financialcost(gains:negative) -956,368.36
Investmentloss(gains:negative) -14,009,282.02 -13,720,747.77
Decrease in deferred income tax assets
2,817,425.78 -5,535,752.11
(gains:negative)
Increaseindeferredincometaxliabilities
(“-”meansdecrease) -6,689.25
Decreaseininventory(gains:negative) 17,780,154.35 84,829,939.85
Decrease in accounts receivable from
-214,104,001.05 -161,829,594.02
operatingactivities(gains:negative)
Increase in payables from operating -123,951,869.14 106,474,364.77
activities(decrease:negative)
Net cashflows generated from operating
-31,063,187.22 291,628,307.06
activities
2. Significant investing and financing
activities without involvement of cash -- --
receiptsandpayments
3.Changeofcashandcashequivalent: -- --
Closingbalanceofcash 815,038,019.29 780,593,190.58
Less:Openingbalanceofcash 1,479,283,642.54 933,546,108.37
Netincreaseincashandcashequivalents -664,245,623.25 -152,952,917.79
(2)NetCashPaidofObtainingtheSubsidiary
Naught
(3)NetCashReceivefromDisposaloftheSubsidiary
Naught
(4)CashandCashEquivalents
Unit:RMB
Item Closingbalance Openingbalance
I.Cash 815,038,019.29 1,479,283,642.54
Including:Cashonhand 53,479.90 13,058.91
Bankdepositondemand 806,670,784.99 1,477,005,924.93
Othermonetaryfundsondemand 8,313,754.40 2,264,658.70
III. Closing balance of cash and cash
815,038,019.29 1,479,283,642.54
equivalents
76.NotetoItemsintheStatementofChangeinEquity
Notetonameof"other"itemadjustedclosingbalanceandtheadjustmentamount:
Notapplicable
77.AssetswithRestrictedOwnershipandRighttoUse
Naught
78.ForeignCurrencyMonetaryItems
(1)ForeignCurrencyMonetaryItems
Unit:RMB
Closingforeigncurrency ClosingconverttoRMB
Item Exchangerate
balance balance
Monetarycapital -- -- 18,611,366.01
Including:USD 2,735,685.926.7744 18,532,630.69
EUR 10,159.927.7496 78,735.32
Accountreceivable -- -- 279,015,390.10
Including:USD 41,186,730.946.7744 279,015,390.10
Prepayments 1,416,270.15
Including:USD 209,062.086.7744 1,416,270.15
Depositreceived 12,497,338.74
Including:USD 1,844,789.016.7744 12,497,338.74
Othernotes:
(2)NotetoOverseaEntitiesIncluding:forSignificantOverseaEntities,ShallDiscloseMainOperating
Place,RecordingCurrencyandSelectionBasis,ifthereAreChangesintoRecordingCurrency,ShallAlso
DisclosetheReason.
□Applicable√Notapplicable
79.Arbitrage
Qualitativeandquantitativeinformationofrelevantarbitrageinstruments,hedgedriskinlinewiththetypeofarbitragetodisclose:
Notapplicable
80.Other
Notapplicable
VIII.ChangeofConsolidationScope
1.BusinessCombinationNotundertheSameControl
(1)BusinessCombinationNotundertheSameControlduringtheReportingPeriod
Naught
(2)CombinationCostandGoodwill
Naught
(3)TheIdentifiableAssetsandLiabilitiesofAcquireeatPurchaseDate
Naught
(4)TheProfitorLossfromEquityHeldbytheDatebeforeAcquisitioninAccordancewiththeFairValue
MeasuredAgain
Whetherthereisatransactionthatthroughmultipletransactionstepbysteptorealizeenterprisesmergerandgainingthecontrol
duringtheReportingPeriod
□Yes√No
(5)TheExplanationsontheSituationinwhichtheMergerPriceCannotBedeterminedRationallyatthe
DateofAcquisitionortheEndofthePeriodofMergerandExplanationsontheFair Valueofthe
Acquiree’sRecognizableAssetsandLiabilities
Naught
(6)OtherNotes
Naught
2.BusinessCombinationundertheSameControl
(1)BusinessCombinationundertheSameControlduringtheReportingPeriod
Naught
(2)CombinationCost
Naught
(3)TheBookValueoftheAssetsandLiabilitiesoftheCombinedPartyatCombiningDate
Naught
3.CounterPurchase
Naught
4.TheDisposalofSubsidiary
Whetherthereisasingledisposaloftheinvestmenttosubsidiaryandlostcontrol
□Yes√No
WhethertherearemultipletransactionsstepbystepdisposetheinvestmenttosubsidiaryandlostcontrolinReportingPeriod
□Yes√No
5.OtherReasonsfortheChangesinCombinationScope
Notetoreasonsforthechangesincombinationscope(Newlyestablishedsubsidiaryandsubsidiaryofliquidation)andrelevant
information:
Naught
6.Other
Naught
IX.EquityinOtherEntities
1.EquityinSubsidiary
(1)TheStructureoftheEnterpriseGroup
Mainoperating Natureof Holdingpercentage(%)
Name Registrationplace Wayofgaining
place business Directly Indirectly
Foshan
Chansheng Production and Newly
Foshan Foshan 100.00%
ElectronicBallast sales established
Co.,Ltd.
Foshan Lighting
Lamps & Production and Newly
Foshan Foshan 100.00%
Components Co., sales established
Ltd.
Guangdong
Fozhao New
Production and Newly
Light SourcesFoshan Foshan 100.00%
sales established
Technology Co.,
Ltd.
Foshan
Chanchang Production and Newly
Foshan Foshan 100.00%
Electric sales established
Appliance
(Gaoming) Co.,
Ltd.
Foshan Taimei
Production and Newly
TimesLampsandFoshan Foshan 70.00%
sales established
LanternsCo.,Ltd.
FoshanElectrical
& Lighting Production and Newly
Xinxiang) Xinxiang) 100.00%
(Xinxiang) Co., sales established
Ltd.
Guangdong
Newly
Fozhao LeasingFoshan Foshan Financelease 100.00%
established
Co.,Ltd.
Nanjing Fozhao
Lighting
Production and
Components Nanjing Nanjing 100.00% Purchase
sales
ManufacturingCo.,Ltd.
FSLZhida
Electric Production and Newly
Foshan Foshan 51.00%
TechnologyCo., sales established
Ltd.
(2)SignificantNotWhollyOwnedSubsidiary
Unit:RMB
Theprofitsandlosses Declaringdividends Balanceofminority
Shareholdingproportion
Name arbitratetotheminority distributetominority shareholderatclosing
ofminorityshareholder
shareholders shareholder period
FoshanTaimeiTimes
LampsandLanternsCo., 30.00% 602,673.03 5,630,109.21
Ltd.
FSLZhidaElectric
49.00% 2,787,642.64 12,768,272.90
TechnologyCo.,Ltd.
(3)TheMainFinancialInformationofSignificantNotWhollyOwnedSubsidiary
Unit:RMB
Closingbalance Openingbalance
Name Non-curr Non-curr Non-curr Non-curr
Current Total Current Total Current Total Current Total
ent ent ent ent
assets assets liabilities liabilities assets assets liabilities liabilities
assets liabilities assets liabilities
Foshan
Taimei
Times 67,603,9,341,0476,944,358,177,3 58,177,366,911,9 7,126,9774,038,957,280,8 57,280,8
Lampsand 322.46 4.99 67.45 36.75 36.75 91.61 9.81 71.42 50.82 50.82
Lanterns
Co.,Ltd.
FSLZhida
Electric 93,769,7,765,83101,535,60,386,0 60,386,038,927,713,176.738,940,93,480,45 3,480,45
Technolog 706.82 5.11 541.93 05.40 05.40 48.34 0 25.04 5.13 5.13
yCo.,Ltd.
Unit:RMB
Reportingperiod Thesameperiodoflastyear
Cashflow Cashflow
Name Total Total
Operation from Operation from
Netprofit consolidated Netprofit consolidated
revenue operating revenue operating
income income
activities activities
Foshan
TaimeiTimes
82,641,917.3 23,327,544.4 51,763,010.9
Lampsand 2,008,910.10 2,008,910.10 1,570,356.09 1,570,356.09 301,174.27
2 9 4
LanternsCo.,
Ltd.
FSLZhida
Electric 66,773,802.1
5,689,066.62 5,689,066.62-3,415,460.17
Technology 5
Co.,Ltd.
(4)SignificantRestrictionsofUsingEnterpriseGroupAssetsandPayingOffEnterpriseGroupDebt
Naught
(5)ProvideFinancialSupportorOtherSupportforStructure EntitiesIncorporateintotheScope of
ConsolidatedFinancialStatements
Naught
2.TheTransactionoftheCompanywithItsOwner’sEquityShareChangedbutStillControllingthe
Subsidiary
(1)ExplanationsonChangesofOwner’sEquityintheSubsidiary
Naught
(2) TheEffectsofTransactions on Minority Equityand Owner’s Equity Attributableto theParent
Company
Naught
3.EquityinJointVentureArrangementorAssociatedEnterprise
(1)ListofSignificantJointVenturesorAssociatedEnterprises
Naught
(2)TheMainFinancialInformationofSignificantJointVentures
Naught
(3)TheMainFinancialInformationofSignificantAssociatedEnterprises
Naught
(4)TheSummarizedFinancialInformationofUnimportantJointVenturesandAssociatedEnterprises
Unit:RMB
Closingbalance/amountincurredinthe Openingbalance/amountincurredinlast
currentperiod period
Jointventure: -- --
Thetotaloffollowingitemsaccordingtothe
-- --
shareholdingproportions
Associatedenterprise: -- --
Thetotaloffollowingitemsaccordingtothe
-- --
shareholdingproportions
Totalinvestmentbookvalue 209,858,507.98 210,394,932.69
Thetotaloffollowingitemsaccordingtothe
-- --
shareholdingproportions
--Netprofits 1,543,965.79 432,767.03
--Othercomprehensiveincome 21,831,908.42
--Totalcomprehensiveincome 1,543,965.79 26,159,605.45
(5)ExplanationsonGreatLimitationoftheAbilitytoTransferFundstotheCompanybyJointVentures
orAssociatedEnterprises
Naught
(6)ExcessLossIncurredinJointVenturesorAssociatedEnterprises
Naught
(7)TheUnrecognizedCommitmentRelatedtotheInvestmentofJointVentures
Naught
(8)TheContingentLiabilitiesRelatedtotheInvestmentofJointVenturesorAssociatedEnterprises
Naught
4.SignificantJointOperation
Naught
5.EquityofStructureEntityNotIncludingintheScopeofConsolidatedFinancialStatements
Naught
6.Other
Naught
X.TheRiskRelatedFinancialInstruments
ThefinancialinstrumentsoftheCompanyincluded:equityinvestment,accountsreceivable,accountspayable,etc.
ThedetailsofeachfinancialinstrumentseerelevantitemsofnoteV.
ThemainrisksoftheCompanyduetofinancialinstrumentswerecreditrisk,liquidityriskandmarketrisk.The
operatingmanagementoftheCompanywasresponsiblefortheriskmanagementtargetandtherecognitionofthe
policies.
I.CreditRisk
Creditriskwasonepartyofthecontractfailedtofulfilltheobligationsandcauseslossoffinancialassetsofthe
otherparty.ThecreditrisktheCompanyfacedwassellingoncreditwhichleadstocustomercreditrisk.
TheCompanywillevaluate creditriskofnewcustomer,and setcreditlimit, oncethebalanceofaccount
receivableovercreditlimit,requirethecustomertopayorproducinganddeliveringgoodsshallbeapprovedby
themanagementoftheCompany.
TheCompanythroughmonthlyaginganalysisofaccountreceivableandmonitoringthecollectionsituationofthe
customerensuredtheoverallcreditriskoftheCompanywasincontrolscope.Onceappearabnormalsituation,
theCompanyshouldconductnecessarymeasurestorequestingthepaymenttimely.
II.LiquidityRisk
Liquidityriskisreferredtotheirriskofincurringcapitalshortagewhenperformingsettlementobligationinthe
wayofcashpaymentorotherfinancialassets.ThepoliciesoftheCompanyaretoensurethattherewassufficient
cashtopaythedueliabilities.TheliquidityriskiscentralizedcontrolledbytheFinancialDepartmentofthe
Company.Thefinancialdepartmentthroughsupervisingthebalanceofthecashandsecuritiescanbeconvertto
cashatanytimeandtherollingpredictionofcashflowinfuture12monthstoensuretheCompanyhavesufficient
cashtopaytheliabilitiesunderthecaseofallreasonableprediction,EachfinancialliabilityoftheCompanywas
estimatedduewithin1year.
III.MarketRisk
Marketriskwasreferredtoriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedduetothe
changeofmarketprice,including:exchangeraterisk,interestrateriskandotherpricerisk.
1.ExchangeRateRisk
Exchangerateriskwasreferredtothepossiblelossduetochangesofexchangerateinthefinancialactivitiesthat
economicagentsheldorusedtheforeignexchange.TheCompany’sexportbusinesswassettledbyUSDwhich
avoidedexchangerisktheCompanyfacedintransaction.
2.InterestRateRisk
Interestrateriskisreferstofluctuationriskofthefairvalueorfuturecashflowoffinancialinstrumentchangedue
tothechangeofmarketprice.TherewasnobankloanintheCompany,thusnoRMBbenchmarkinterestrate
changes
3.OtherPriceRisk
N/A
XI.TheDisclosureoftheFairValue
1.ClosingFairValueofAssetsandLiabilitiesCalculatedbyFairValue
Unit:RMB
Fairvalueattheendofthereportingperiod
Item Firstlevel Secondlevel Thirdlevel
Total
Fairvaluemeasurement Fairvaluemeasurement Fairvaluemeasurement
I. Consistent fair value
-- -- -- --
measurement
(II) Available-for-sale
1,454,989,886.20 1,454,989,886.20
financialassets
(1)Equitytoolinvestment 1,454,989,886.20 1,454,989,886.20
Totalassetsofconsistent
1,454,989,886.20 1,454,989,886.20
fairvaluemeasurement
II.Inconsistentfairvalue
-- -- -- --
measurement
2.MarketPriceRecognitionBasisforConsistentandInconsistentFairValueMeasurementItemsatLevel
1
Therecognitionjudgmentofthefairvaluemeasurementitemsatlevel1wasthestockpriceonthebalancesheetdate
3.ConsistentandInconsistentFairvalueMeasurementItemsatLevel2,ValuationTechniquesAdopted,
theQualitativeandQuantitativeInformationofImportantParameters
Naught
4.ConsistentandInconsistentFairValueMeasurementItemsatLevel3,ValuationTechniquesAdopted,
theQualitativeandQuantitativeInformationofImportantParameters
Naught
5.ConsistentFairValueMeasurementItemsatLevel3,theAdjustmentInformationoftheOpeningand
ClosingBookValue,andtheSensitivityAnalysisofUnobservableParameters
Naught
6.ConsistentFairValueMeasurementItems,ConversionbetweenAllLevelsduringtheReportingPeriod,
theReasonsforConversionandPoliciesattheTimeofDeterminationofConversion
Naught
7.ChangeandChangeReasonofValuationTechniquesintheReportingPeriod
Naught
8.ParticularsabouttheFairValueoftheFinancialAssetsandFinancialLiabilitiesNotMeasuredatFair
Value
Naught
9.Other
Naught
XII.RelatedPartyandRelatedTransaction
1.InformationRelatedtoParentCompanyoftheCompany
Registration Natureof Proportionofshare Proportionofvoting
Nameofparentcompany Registeredcapital heldbyparent rightsownedby
place business
companyagainstthe parentcompany
Company(%) againsttheCompany
(%)
HongKongWahShing
HongKong / / 13.47% 13.47%
HoldingCompanyLimited
ShenzhenRisingInvestment
Shenzhen Investment RMB120,000,000 5.12% 5.12%
DevelopmentCo.,Ltd.
GuangdongElectronics
Sales&
InformationIndustryGroupGuangzhou RMB462,000,000 4.74% 4.74%
Production
Ltd.
RisingInvestment
HongKong / / 1.82% 1.82%
DevelopmentCo.,Ltd.
GuangdongRisingFinance
Zhuhai Investment RMB1,393,000,000 0.54% 0.54%
HoldingCo.,Ltd.
25.70% 25.70%
Notes:Informationontheparentcompany:
September9,2015,theCompany’soriginalfirstmajorityshareholderOSRAMHoldingCompanyLimitedsigned
EquityTransfer AgreementwithGuangdongElectronics InformationIndustryGroup Co., Ltd.(Hereinafter
referredtoas"ElectronicsGroup”)GermanyOSRAM CompanyLimited transferits100% shareequityto
ElectronicsGroup.TherelevanttransactionwascompletedonDecember4,2015.ElectronicsGroupbecameonly
controllingshareholderofOSRAMHolding(RenamedasHongKongWahShingHoldingCompanyLimited
(hereinafterreferredtoas“HongKongWahShingHolding”)andindirectlybecamethefirstmajorityshareholder
oftheCompany.
ThefirstmajorityshareholderoftheCompany,HongKongWahShingHoldingCo.,Ltd.wasthewhollyowned
subsidiaryofElectronicsGroup,andElectronicsGroup,ShenzhenRisingInvestmentDevelopmentCo.,Ltd.
(Hereinafterreferredtoas"ShenzhenRising"),GuangdongRisingFinanceHoldingCo.,Ltd.(Hereinafter
referredtoasGDRisingFinance)andRisingInvestmentDevelopmentCo.,Ltd.(Hereinafterreferredtoas"
RisingInvestment")werethewhollyownedsubsidiariesofGuangdongRisingAssetsManagementCo.,Ltd.In
linewiththerelevantstipulationofCorporationLawandRulesonListedCompaniesAcquisition,Electronics
Group,ShenzhenRisingandRisingInvestmentwerepersonsactinginconcert.AsofJune30,2017,theaforesaid
personsactinginconcertholdingtotalA,BshareoftheCompany000shares,000%oftotalshareequityofthe
Company.GuangdongRisingAssetsManagementCo.,Ltd.becametheactualcontrolleroftheCompany.
ThefinalcontrolleroftheCompanyisGuangdongRisingAssetsManagementCo.,Ltd.(GRAM)
2.SubsidiariesoftheCompany
Formoredetails,pleaserefertoNotesIX.Equityinotherentities1.Equityinsubsidiary.
3.InformationontheJointVenturesandAssociatedEnterprisesoftheCompany
ThedetailsofsignificantjointventureandassociatedenterpriseoftheCompany,pleaserefertoNotesIX.Equityinotherentities3.
Equityinthejointventurearrangementorassociatedenterprise
4.InformationonOtherRelatedPartiesoftheCompany
Name Relationship
PROSPERITYLAMPS&COMPONENTSLTD Shareholderowningover5%shares
Prosperity(Hangzhou)LightingandElectricalCo.,Ltd. Companycontrolledbyrelatednaturalperson
HangzhouTimesLightingandElectricalCo.,Ltd. Companycontrolledbyrelatednaturalperson
ProsperityElectrical(China)Co.,Ltd. Companycontrolledbyrelatednaturalperson
Prosperity(Xinxiang)Electro-opticMachineryCo.,Ltd. Companycontrolledbyrelatednaturalperson
Prosperity(Xinxiang)LightingMachineryCo.,Ltd. Companycontrolledbyrelatednaturalperson
FoshanNationStarOptoelectronicsCo.Ltd. Undersameactualcontroller
GuangdongFenghuaAdvancedTechnologyHoldingCo.,Ltd. Undersameactualcontroller
HenanRisingHigh-TechInvestmentCo.,Ltd. Undersameactualcontroller
GuangdongRisingFinanceCo.,Ltd. Undersameactualcontroller
MTMSemiconductorEquipmentCo.,Ltd. Undersameactualcontroller
GuangdongHYBNewEnergyCo.,Ltd. Undersameactualcontroller
5.ListofRelated-partyTransactions
(1)InformationonAcquisitionofGoodsandReceptionofLaborService(Unit:TenThousandYuan)
Informationonacquisitionofgoodsandreceptionoflaborservice
Unit:RMB
Theapprovaltrade Whetherexceedtrade Sameperiodoflast
Related-party Content ReportingPeriod
credit creditornot year
ProsperityLamps
Purchaseof
andComponents 670,457.93 2,000,000.00No 1,205,832.30
materialsLtd.
ProsperityElectricalPurchaseof
-32,104.28 6,000,000.00No 4,670,025.04
(China)Co.,Ltd. materials
Hangzhou Times
Purchaseof
Lighting and 1,138,676.40 3,000,000.00No 978,074.43
materialsElectricalCo.,Ltd.FoshanNationStar PurchaseofOptoelectronics 38,972,909.25 200,000,000.00No 50,935,351.13materialsCo.,Ltd.
Guangdong
Fenghua AdvancedPurchaseof
4,100,354.77 9,000,000.00No 2,950,368.03
TechnologyHoldingmaterials
Co.,Ltd.
GuangdongHYB
Purchaseof
NewEnergyCo., 933,432.24 No
materialsLtd.
MTM
Purchaseof
Semiconductor 164,400.00 2,000,000.00No
equipmentEquipmentCo.,Ltd.Informationofsalesofgoodsandprovisionoflaborservice Unit:RMB Related-party Content ReportingPeriod SameperiodoflastyearProsperityLampsand Saleofproducts 14,820,551.42 13,828,671.26ComponentsLtd.Prosperity(Hangzhou)Lighting Saleofproducts 38,649.58 63,364.11andElectricalCo.,Ltd.Prosperity Electrical (China) Saleofproducts 177,652.13 127,799.81Co.,Ltd.
FoshanNationStar
Saleofproducts 3,353.85 139,981.43
OptoelectronicsCo.,Ltd.
HangzhouTimesLightingand
Saleofproducts 25,852.99
ElectricalCo.,Ltd.
(2)RelatingCommissionedManagement/ContractandEntrustedManagement/Outsourcing
Naught
(3)InformationofRelatedLease
TheCompanyservesasthelessor:
Unit:RMB
RentalincomeconfirmedintheRentalincomeconfirmedinthe
Nameofleasee Typeofleasedassets
Reportperiod sameperiodoflastyear
TheCompanyservesastheleasee:
Unit:RMB
RentalexpenseconfirmedintheRentalexpenseconfirmedinthe
Nameoflessor Typeofleasedassets
reportperiod sameperiodoflastyear
GuangdongElectronics
InformationIndustryGroup Vehicles 24,500.00
Ltd.
(4)Related-partyGuarantee
Naught
(5)BorrowingandLendingofRelatedParties
Naught
(6)RelatedPartyAssetTransferandDebtRestructuring
Naught
(7)RewardsfortheKeyManagementPersonnel
Unit:RMB
Item Reportingperiod Sameperiodoflastyear
ChairmanoftheBoard 0.00 0.00
Director&GM 700,000.00 496,125.00
ChairmanoftheSupervisor 0.00 0.00
SecretaryoftheBoard 400,000.00 358,314.00
CFO 400,000.00 298,595.00
Others 2,671,500.00 2,099,970.00
Total 4,171,500.00 3,253,004.00
(8)OtherRelated-partyTransactions
Naught
6.ReceivablesandPayablesofRelatedParties
(1)Receivables
Unit:RMB
Closingbalance Openingbalance
Nameofitem Related-party
Bookbalance Baddebtprovision Bookbalance Baddebtprovision
Prosperity (Hangzhou)LightingAccountsreceivable 86,367.27 43,110.18 86,367.27 25,910.18 and Electrical Co.,Ltd. ProsperityElectricalAccountsreceivable 104,626.70 3,138.80 26,156.80 784.70 (China)Co.,Ltd. ProsperityLamps
Accountsreceivable andComponents 5,987,859.76 179,635.79 4,121,642.27 123,649.27
Ltd. HenanRisingOtheraccounts High-tech 117,000.00 117,000.00 117,000.00 93,600.00receivable
InvestmentCo.,Ltd.
GuangdongOtheraccounts Electronics 5,000.00 500.00 5,000.00 150.00receivable InformationIndustry GroupLtd.MTMPrepayment Semiconductor 164,400.00 EquipmentCo.,Ltd. ProsperityElectricalPrepayment 7,521.37 92,424.45 (China)Co.,Ltd. Guangdong RisingInterestreceivable 42,222.22 FinanceCo.,Ltd.(2)Payables Unit:RMB Nameofitem Related-party Closingbookbalance Openingbookbalance Prosperity Lamps andAccountspayable 608,772.61 331,774.70 ComponentsLtd. Prosperity Electrical (China)Accountspayable 366,125.94 1,286,052.41 Co.,Ltd. Foshan Nation StarAccountspayable 18,377,867.72 19,840,379.88 OptoelectronicsCo.,Ltd. HangzhouTimesLightingandAccountspayable 879,884.85 243,897.33 ElectricalCo.,Ltd. GuangdongFenghuaAdvancedAccountspayable 2,038,015.43 2,492,269.85 TechnologyHoldingCo.,Ltd. GuangdongHYBNewEnergyAccountspayable 1,391,666.63 Co.,Ltd. ProsperityLampsandOtheraccountspayable 448,258.77 ComponentsLtd. ProsperityElectrical(China)Otheraccountspayable 100,000.00 100,000.00 Co.,Ltd. MTMSemiconductorOtheraccountspayable 47,860.00 47,860.00 EquipmentCo.,Ltd.7.RelatedPartyCommitment
(1)
Commitment:commitmentsmadeinacquisitiondocumentsorshareholdingalterationdocuments
Commitmentmaker:Controllingshareholder
Typeofcommitment:Aboutavoidanceofhorizontalcompetition
Content:ElectronicsGroupanditsacting-in-concertpartiesShenzhenRisingInvestmentandHongKongRising
InvestmenthavemadeacommitmentthatthebusinessofFoshanNationStarOptoelectronicsCo.,Ltd.thatisin
competitionwiththebusinessoftheCompanytakesuponlyasmallpartinNationStar’stotalbusiness,theyshall
graduallyreduceoreliminatethehorizontalcompetitionasplannedthroughbusinessintegrationorotherwaysor
arrangementswithinthecoming24months.
Dateofcommitmentmaking:2015-12-04
Termofcommitment:24months
Fulfillment:Inexecution
(2)
Commitment:commitmentsmadeinacquisitiondocumentsorshareholdingalterationdocuments
Commitmentmaker:Controllingshareholder
Typeofcommitment:Aboutavoidanceofhorizontalcompetition
Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
InvestmenthavemademorecommitmentsasfollowstoavoidhorizontalcompetitionwiththeCompany:1.They
shallconductsupervisionandrestraintontheproductionandoperationactivitiesofthemselvesandtheirrelevant
enterprisessothatbesidestheenterpriseabovethatisinhorizontalcompetitionwiththeCompanyfornow,ifthe
productsorbusinessofthemortheirrelevantenterprisesbecomethesamewithorsimilartothoseofthe
Companyoritssubsidiariesinthefuture,theyshalltakethefollowingmeasures:(1)IftheCompanythinks
necessary,theyandtheirrelevantenterprisesshallreduceandwhollytransfertheirrelevantassetsandbusiness;
and(2)IftheCompanythinksnecessary,itisgiventheprioritytoacquirefirst,bypropermeans,therelevant
assetsandbusinessofthemandtheirrelevantenterprises. 2.Allthecommitmentsmadebythemtoeliminateor
avoidhorizontalcompetitionwiththeCompanyarealsoapplicable totheirdirectlyorindirectlycontrolled
subsidiaries.Theyareobligedtourgeandmakesurethatothersubsidiariesexecutewhat’sprescribedinthe
relevantdocumentandfaithfullyhonoralltherelevantcommitments. 3.Iftheyortheirdirectlyorindirectly
controlledsubsidiariesbreaktheaforesaidcommitmentsandthuscausealossfortheCompany,theyshall
compensatetheCompanyonarationalbasis.
Dateofcommitmentmaking:2015-12-04
Termofcommitment:Long-standing
Fulfillment:Inexecution
(3)
Commitment:commitmentsmadeinacquisitiondocumentsorshareholdingalterationdocuments
Commitmentmaker:Controllingshareholder
Typeofcommitment:Aboutreductionandregulationofrelated-partytransactions
Content:ElectronicsGroupanditsacting-in-concertpartiesShenzhenRisingInvestmentandHongKongRising
InvestmenthavemadeacommitmentthatduringtheirdirectorindirectholdingoftheCompany’sshares,they
shall1.Strictlyabidebytheregulatorydocuments oftheCSRCandtheSZSE,theCompany’sArticlesof
Association,etc. andnotharmtheinterestsoftheCompanyorothershareholdersoftheCompanyintheir
productionandoperationactivitiesbytakingadvantageoftheirpositionasthecontrollingshareholderandactual
controller;2.makesurethat theyortheirothercontrolledsubsidiaries,branchoffices,jointly-runorassociated
companies(the“RelevantEnterprises”forshort)willtrytheirbesttoavoidorreducerelated-partytransactions
withtheCompanyortheCompany’ssubsidiaries;3.strictlyfollowthemarketprincipleofjustness,fairnessand
equalvalueexchangefornecessaryandunavoidablerelated-partytransactionsbetweenthemandtheirRelevant
EnterprisesandtheCompany, andwithdrawfromvotingwhenarelated-partytransactionwiththemortheir
RelevantEnterprisesisbeingvotedonatageneralmeetingoraboardmeeting,andexecutetherelevantapproval
procedureandinformationdisclosuredutiespursuanttotheapplicablelaws,regulationsandregulatorydocuments.
WheretheaforesaidcommitmentsarebrokenandalossisthuscausedfortheCompany,itssubsidiariesorthe
Company’sothershareholders,theyshallbeobligedtocompensate.
Dateofcommitmentmaking:2015-12-04
Termofcommitment:Long-standing
Fulfillment:Inexecution
(4)
Commitment:commitmentsmadeinacquisitiondocumentsorshareholdingalterationdocuments
Commitmentmaker:Controllingshareholder
Typeofcommitment:Aboutindependence
InordertoensuretheindependenceoftheCompanyinbusiness,personnel,asset,organizationandfinance,
Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investmenthavemadethefollowingcommitments:1.TheywillensuretheindependenceoftheCompanyin
business:(1)TheypromisethattheCompanywillhavetheassets,personnel,qualificationsandcapabilitiesforit
tooperateindependentlyaswellastheabilityofindependent,sustainableoperationinthemarket.(2)They
promisenottointerveneintheCompany’sbusinessactivitiesotherthantheexecutionoftheirrightsasthe
Company’sshareholders.(3)Theypromisethattheyandtheirrelatedpartieswillnotbeengagedinbusinessthat
issubstantiallyincompetitionwiththeCompany’sbusiness. And(4)Theypromisethattheyandtheirrelated
partieswilltrytheirbesttoreducerelated-partytransactionsbetweenthemandtheCompany;fornecessaryand
unavoidablerelated-partytransactions,theypromisetooperatefairlyfollowingthemarket-orientedprincipleand
atfairprices,andexecutethetransactionprocedureandthedutyofinformationdisclosurepursuanttothe
applicablelaws,regulationsandregulatorydocuments.2.TheywillensuretheindependenceoftheCompanyin
personnel:(1)TheypromisethattheCompany’sGM,deputyGMs,CFO,CompanySecretaryandothersenior
managementpersonnelwillworkonlyforandreceiveremunerationfromtheCompany,notholdinganypositions
in them or their other controlledsubsidiaries otherthan directorand supervisor. (2) They promise the
Company’sabsoluteindependencefromtheirrelatedpartiesinlabor,humanresourceandsalarymanagement.
And(3)Theypromisetofollowthelegalprocedureintheirrecommendationofdirectors,supervisorsandsenior
managementpersonneltotheCompanyandnottohireordismissemployeesbeyondtheCompany’sBoardof
DirectorsandGeneralMeeting.3.TheywillensuretheindependenceandcompletenessoftheCompanyinasset:
(1)TheypromisethattheCompanywillhaveaproductionsystem,aauxiliaryproductionsystemandsupporting
facilitiesforitsoperation;legallyhavetheownershiporuserightsoftheland,plants,machines,trademarks,
patentsandnon-patentedtechnologyinrelationtoitsproductionandoperation;andhaveindependentsystemsfor
theprocurementofrawmaterialsandthesaleofitsproducts. (2)TheypromisethattheCompanywillhave
independentandcompleteassetsallundertheCompany’scontrolandindependentlyownedandoperatedbythe
Company. And(3)Theypromisethattheyandtheirothercontrolledsubsidiarieswillnotillegallyoccupythe
Company’sfundsandassetsinanyway,orusetheCompany’sassetstoprovideguaranteesforthedebtsof
themselvesortheirothercontrolledsubsidiarieswith.4.TheywillensuretheindependenceoftheCompanyin
organization:(1)TheypromisethattheCompanyhasasoundcorporategovernancestructureasajoint-stock
companywithanindependentandcompleteorganizationstructure.(2)Theypromisethattheoperationaland
managementorganswithintheCompanywillindependentlyexecutetheirfunctionsaccordingtolaws,regulations
andtheCompany’sArticlesofAssociation.5.TheywillensuretheindependenceoftheCompanyinfinance:(1)
TheypromisethattheCompanywillhaveanindependentfinancialdepartmentandfinancialaccountingsystem
with normative, independent financial accounting rules. (2) They promise that the Company will have
independentbank accountsand notsharebank accountswithitsrelatedparties.(3)Theypromisethatthe
Company’sfinancialpersonneldonotholdconcurrentpositionsinitsrelatedparties.(4)Theypromisethatthe
Companywillindependentlypayitstaxaccordingtolaw.And(5)TheypromisethattheCompanycanmake
financialdecisionsindependentlyandthattheywillnotillegallyinterveneintheCompany’suseofitsfunds.
Dateofcommitmentmaking:2015-12-04
Termofcommitment:Long-standing
Fulfillment:Inexecution
8.Other
Naught
XIII.Share-basedPayment
1.GeneralShare-basedPayment
□Applicable√Notapplicable
2.Shared-basedPaymentSettledbyEquity
□Applicable√Notapplicable
3.Shared-basedPaymentSettledbyCash
□Applicable√Notapplicable
4.ModificationandTerminationonShare-basedPayment
Naught
5.Other
Naught
XIV.CommitmentsandContingencies
1.SignificantCommitments
Significantcommitmentsatbalancesheetdate
Naught
2.Contingencies
(1)SignificantContingenciesatBalanceSheetDate
Naught
(2)IftheCompanyHasNoSignificantContingencytoDisclose,RelevantExplanationsShouldAlsoBe
Given
Thecompanyhasnosignificantcontingencytodisclose.
3.Other
Naught
XV.EventsafterBalanceSheetDate
1.SignificantNon-adjustingEvents
Naught
2.ProfitDistribution
Naught
3.SalesReturn
Naught
4.NotesofOtherEventsafterBalanceSheetDate
Naught
XVI.OtherSignificantEvents
1.TheAccountingErrorsCorrectioninPreviousPeriod
Naught
2.DebtRestructuring
Naught
3.AssetsReplacement
Naught
4.AnnuityPlan
Naught
5.DiscontinuedOperation
Naught
6.SegmentInformation
Naught
7.OtherImportantTransactionsandEventsthatHaveanImpactonInvestors’Decision-making
Naught
8.Other
Naught
XVII.NotesofMainItemsintheFinancialStatementsoftheCompany
1.AccountsReceivable
(1)AccountsReceivableClassifiedbyCategory
Unit:RMB
Closingbalance Openingbalance
Bookbalance Baddebtprovision Bookbalance Baddebtprovision
Category Withdra Book
Proportio wal Proportio WithdrawalBookvalue
Amount Amount value Amount Amount
n proportio n proportion
n
Accountsreceivable 10,062,3 10,062,3 10,064, 10,064,66
withsignificant 1.10% 100.00% 1.55% 100.00%
78.10 78.10 664.92 4.92
singleamountfor
whichbaddebt
provisionseparately
accrued
Accountsreceivable
withdrawalofbad
902,068, 36,131,9 865,936,5640,256 28,400,67 611,855,49
debtprovisionofby 98.90% 4.01% 98.45% 4.44%
469.45 43.21 26.24 ,170.33 3.43 6.90
creditrisks
characteristics: 912,130, 46,194,3 865,936,5650,320 38,465,33 611,855,49Total 100.00% 5.06% 100.00% 5.91% 847.55 21.31 26.24 ,835.25 8.35 6.90Accountsreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod√Applicable□Notapplicable Unit:RMB Accountsreceivable Closingbalance (Unit) Accountsreceivable Bad-debtprovision Withdrawalproportion Reasonforwithdrawal Thedebtorisnot qualifiedtocontinuouslySuzhouMontLighting produceforthetime 10,062,378.10 10,062,378.10 100.00%Co.,Ltd. beingforcontinuing lossescausedbythe scaleandmarket.Total 10,062,378.10 10,062,378.10 -- --Inthegroups,accountsreceivableadoptingaginganalysismethodtowithdrawbaddebtprovision:√Applicable□Notapplicable Unit:RMB ClosingbalanceAging Accountsreceivable Bad-debtprovision WithdrawalproportionSubentrywithin1yearWithin1year 838,284,736.17 25,148,542.09 3.00%Subtotalofwithin1year 838,284,736.17 25,148,542.09 3.00%1to2years 16,064,941.39 1,606,494.14 10.00%2to3years 1,845,107.85 553,532.36 30.00%Over3years 15,318,633.22 8,823,374.62 57.60%3to4years 11,531,150.17 5,765,575.08 50.00%4to5years 3,648,417.57 2,918,734.06 80.00%Over5years 139,065.48 139,065.48 100.00%Total 871,513,418.63 36,131,943.21 4.15%Notes:
Inthegroups,accountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision:
□Applicable√Notapplicable
Inthegroups,accountsreceivableadoptingothermethodstowithdrawbaddebtprovision:
Naught
(2)AccountsReceivableWithdraw,ReversedorCollectedduringtheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB8,820,467.25yuan;theamountofthe
reversedorcollectedpartduringtheReportingPeriodwasofRMB0.00.
(3)ParticularsaboutOtherAccountsReceivableActuallyVerifiedduringtheReportingPeriod
Unit:RMB
Item Amountofverification
BeijingSenjiyuanElectronicComponentsSalesCenter 339,032.24
NanjingWeiyimingPhotoelectricTechnologyCo.,Ltd. 303,567.17
TEERA-MONGKOLINDUSTRYPUBLIC 213,202.93
ChenzhouWangshengdaMaterialsCo.,Ltd. 99,999.82
PanjinPanfengHardware&ElectricMaterialsSalesCo.,Ltd. 17,018.73
2013FinanceBureau 14,703.90
Otherdribletsmallamount 103,959.50
Total 1,091,484.29
(4)AccountsReceivableoftheTop5oftheClosingBalanceCollectedAccordingtotheArrearsParty
Unit:RMB
Nameoftheentity Nature Closingbalance Aging
No.1 Loan 86,950,173.28 Within1year
No.2 Loan 27,597,102.14 Within1year
No.3 Loan 25,.078,424.52 Within1year
No.4 Loan 17,190,715.74 Within1year
No.5 Loan 14,046,026.43 1to2years
Total 172,862,442.11
(5)AccountsReceivableDerecognizedfortheTransferofFinancialAssets
Naught
(6)AmountofAssetsandLiabilitiesGeneratedfromtheTransferofAccountsReceivableandContinued
InvolvementNaught
2.OtherAccountsReceivable
(1)OtherAccountsReceivableClassifiedbyCategory
Unit:RMB
Closingbalance Openingbalance
Bookbalance Baddebtprovision Bookbalance Baddebtprovision
Category Withdra Book
Proportio wal Proportio WithdrawalBookvalue
Amount Amount value Amount Amount
n proportio n proportion
n
Otheraccounts
receivablewithdrawn
66,104,3 2,373,67 63,730,64 58,237, 1,522,852 56,714,849.
baddebtprovision 99.56% 3.59% 99.50% 2.61%
23.42 4.97 8.45 702.22 .38 84
accordingtocredit
riskscharacteristics
Otheraccounts
receivablewith
insignificantsingle 295,120. 295,120. 295,120 295,120.0
0.44% 100.00% 0.50% 100.00%
amountforwhich 00 00 .00 0
baddebtprovision
separatelyaccrued
66,399,4 2,668,79 63,730,64 58,532, 1,817,972 56,714,849.
Total 100.00% 4.02% 100.00% 3.11%
43.42 4.97 8.45 822.22 .38 84
Otherreceivablewithsinglesignificantamountandwithdrawalbaddebtprovisionseparatelyatendofperiod：
□Applicable√Notapplicable
Inthegroups,otheraccountsreceivableadoptingaginganalysismethodtowithdrawbaddebtprovision:
√Applicable□Notapplicable
Unit:RMB
Closingbalance
Aging Otheraccountsreceivable Baddebtprovision WithdrawalproportionSubentrywithin1yearWithin1year 31,298,666.50 938,959.99 3.00%Subtotalofwithin1year 31,298,666.50 938,959.99 3.00%1to2years 1,916,881.38 191,688.14 10.00%2to3years 3,107,684.06 932,305.22 30.00%
Over3years 313,238.90 310,721.62 99.20%
3to4years 2,233.32 1,116.66 50.00%
4to5years 7,003.10 5,602.48 80.00%
Over5years 304,002.48 304,002.48 100.00%
Total 36,636,470.84 2,373,674.97 6.48%
Notes:
Inthegroups,otheraccountsreceivableadoptingbalancepercentagemethodtowithdrawbaddebtprovision
□Applicable√Notapplicable
Inthegroups,otheraccountsreceivableadoptingothermethodstowithdrawbaddebtprovision:
□Applicable√Notapplicable
(2)TheBad-debtProvisionWithdrew,ReversedorCollectedduringtheReportingPeriod
ThewithdrawalamountofthebaddebtprovisionduringtheReportingPeriodwasofRMB850,828.94yuan;theamountofthe
reversedorcollectedpartduringtheReportingPeriodwasofRMB0.00.
(3)OtherAccountsReceivableActuallyVerifiedduringtheReportingPeriod
Unit:RMB
Item Amountofverification
Otherdribletsmallamount 6.35
(4)OtherAccountsReceivableClassifiedbyAccountNature
Unit:RMB
Natureofaccounts Closingbookbalance Openingbookbalance
Internalbusinessgroup 29,762,972.58 45,581,148.85
VATexporttaxrefunds 15,120,172.36
Performancebond 2,805,428.94 1,959,752.60
Staffborrowanddeposit 10,792,685.93 5,587,226.25
Water&electricityfees 870,716.06 936,834.08
Advancemoneyforstreetlightconstruction 3,777,672.16 2,523,547.23
Other 3,269,795.39 1,944,313.21
Total 66,399,443.42 58,532,822.22
(5)TheTopFiveOtherAccountReceivableClassifiedbyDebtoratPeriod-end
Unit:RMB
Proportiontothe
Account-ageatthe totalofclosing Closingbalanceof
Nameofunit Natureofaccounts Closingbalance
endoftheperiod balanceofother bad-debtprovision
accountsreceivable
VATexporttax
No.1 15,120,172.36Within1year 22.77% 453,605.17
refunds InternalbusinessNo.2 10,852,345.81Within1year 16.34%group InternalbusinessNo.3 6,125,510.621to2years 9.23%group InternalbusinessNo.4 4,395,981.862to3years 6.62%group InternalbusinessNo.5 4,026,908.74Within1year 6.06%groupTotal -- 40,520,919.39 -- 61.03% 453,605.17(6)AccountReceivableInvolvingGovernmentSubsidiesNaught
(7)OtherAccountReceivableDerecognizedDueTotheTransferofFinancialAssets
Naught
(8)AmountofAssetsandLiabilitiesGeneratedfromtheTransferofOtherAccountsReceivableand
ContinuedInvolvement
Naught
3.Long-termEquityInvestment
Unit:RMB
Closingbalance Openingbalance
Item Impairment Impairment
Bookbalance Bookvalue Bookbalance Bookvalue
provision provision
Investmenttothe
507,957,289.76 24,360,000.00 483,597,289.76 507,957,289.76 24,360,000.00 483,597,289.76
subsidiary
Investment to
jointventuresand
209,858,507.98 209,858,507.98 210,394,932.69 210,394,932.69
associated
enterprises
Total 717,815,797.74 24,360,000.00 693,455,797.74 718,352,222.45 24,360,000.00 693,992,222.45
(1)InvestmenttotheSubsidiary
Unit:RMB
Withdrawn
Closingbalance
impairment
Investee Openingbalance Increase Decrease Closingbalance ofimpairment
provisioninthe
provision
ReportingPeriod
FoshanChansheng
Electronic Ballast 2,744,500.00 2,744,500.00
Co.,Ltd.
FoshanChanchang
ElectricAppliance
82,507,350.00 82,507,350.00
(Gaoming) Co.,
Ltd.
Foshan Taimei
TimesLamps and 350,000.00 350,000.00
LanternsCo.,Ltd.
Nanjing Fozhao
Lighting
Components 72,000,000.00 72,000,000.00
ManufacturingCo.,Ltd.
Foshan Electrical
& Lighting
35,418,439.76 35,418,439.76
(Xinxiang) Co.,
Ltd.
Guangdong
FozhaoNewLight
Sources 50,077,000.00 50,077,000.00
Technology Co.,
Ltd.
Guangdong
Fozhao Leasing 200,000,000.00 200,000,000.00
Co.,Ltd.
Foshan Lighting
Lamps &
15,000,000.00 15,000,000.00
Components Co.,
Ltd.
FSLZhidaElectric 25,500,000.00 25,500,000.00
TechnologyCo.,
Ltd.
SuzhouMont
24,360,000.00 24,360,000.00 24,360,000.00
LightingCo.,Ltd.
Total 507,957,289.76 507,957,289.76 24,360,000.00
(2)InvestmenttoJointVenturesandAssociatedEnterprises
Unit:RMB
Increase/decrease
Profitand Closing
losson Adjustme Cash, balance
Additiona investmen ntof dividendsImpairme for
The Opening Reduced Changes Closing
l ts other and nt impairme
investor balance investmen inother Others balance
investmen confirmedcomprehe profits provision nt
ts equity provision
ts according nsive declared s
toequity income toissue s
law
I.Jointventures
II.Associatedenterprises
Qinghai
FSL
Lithium 29,836,24 1,286,376 31,122,62
Develop 6.62 .00 2.62
mentCo.,
Ltd.
Primatro
nix 180,558,6 257,589.7 2,080,390 178,735,8
(Nanho) 86.07 9 .50 85.36
Electron
icsLtd.
210,394,9 1,543,965 2,080,390 209,858,5
Subtotal
32.69 .79 .50 07.98
210,394,9 1,543,965 2,080,390 209,858,5
Total
32.69 .79 .50 07.98
(3)OtherNotes
Naught
4.RevenuesandOperatingCosts
Unit:RMB
ReportingPeriod Sameperiodoflastyear
Item Salesrevenue Costofsales Salesrevenue CostofsalesMainoperations 1,932,419,061.23 1,513,940,853.47 1,734,702,749.77 1,312,995,991.44Otheroperations 47,777,343.06 36,016,802.63 47,754,466.37 42,711,518.50Total 1,980,196,404.29 1,549,957,656.10 1,782,457,216.14 1,355,707,509.945.InvestmentIncome Unit:RMB Item ReportingPeriod SameperiodoflastyearLong-termequityinvestmentincome 1,543,965.79 -19,640.12accountedbyequitymethodInvestmentincomereceivedfromdisposaloffinancialassetsmeasuredbyfairvalueand261,818.10
thechangesbeincludedinthecurrentprofits
andlossesduringholdingperiod
Investmentincomereceivedfromholdingof
6,560,422.50 10,950,922.50
available-for-salefinancialassets
Investmentincomereceivedfrombank
5,299,088.41 2,659,136.99
financialproducts
Others -500,000.22 -131,489.70
Total 12,903,476.48 13,720,747.77
6.Other
Nought
XVIII.SupplementaryMaterials
1.ItemsandAmountsofExtraordinaryGainsandLosses
√Applicable□Notapplicable
Unit:RMB
Item Amount Explanation
Gains/lossesonthedisposalofnon-current
-4,255,164.43
assets
Governmentsubsidiesrecordedintothe 3,869,949.96
currentgainsandlosses(excludingthe
governmentsubsidiesthatareclosely
relativetobusinessandenjoyedinnormed
wayorquantitativelyinaccordancewiththe
nationalstandards)
Othernon-operatingincomeandexpenses
1,637,836.66
otherthantheabove
Less:amountaffectedofincometax -57,390.05
Amountaffectedofminorityequity -414.63
Total 1,310,426.87 --
ExplainthereasonsiftheCompanyclassifiesanitemasanextraordinarygain/lossaccordingtothedefinitionintheExplanatory
AnnouncementNo.1onInformationDisclosureforCompaniesOfferingTheirSecuritiestothePublic―ExtraordinaryGainsand
Losses,orclassifiesanyextraordinarygain/lossitemmentionedinthesaidexplanatoryannouncementasarecurrentgain/lossitem.
□Applicable√Notapplicable
2.ReturnonNetEquityandEarningsPerShare
EPS（Yuan/share）
ProfitasofReportingPeriod WeightedaverageROE(%)
EPS-basic EPS-diluted
Netprofitattributabletocommon
4.99% 0.1796 0.1796
shareholdersoftheCompany
Netprofitattributabletocommon
shareholdersoftheCompanyafter
4.96% 0.1786 0.1786
deduction of non-recurringprofit
andloss
3.DifferencesbetweenAccountingDataunderDomesticandOverseasAccountingStandards
(1)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderInternational
andChineseAccountingStandards
□Applicable√Notapplicable
(2)DifferencesofNetProfitandNetAssetsDisclosedinFinancialReportsPreparedunderOverseasand
ChineseAccountingStandards
□Applicable√Notapplicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
AccountingStandards,forAuditDataAdjustingDifferencesHadBeenForeignAudited,ShouldIndicate
theNameoftheForeignInstitutions
Naught
4.Other
Naught
SectionXIDocumentsAvailableforReference
Investors and relevant departments may refer to the following materials placed in the Board
SecretariatintheofficebuildingoftheCompany:
1.Financialstatementssignedandsealedbythelegalrepresentative,theaccountingheadforthe
Reportandthemanagerofthefinancedepartment;and
2.AlloriginalsoftheCompany’sdocumentsandannouncementsdisclosedonChinaSecurities
Journal,SecuritiesTimes,andTaKungPaointheReportingPeriod.
TheBoardofDirectors
FoshanElectricalandLightingCo.,Ltd
August23,2017
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