Foshan Electrical and Lighting Co., Ltd.
The semi-annual financial report 2018
Financial Statements
I Independent Auditor’s Report
Are these interim financial statements audited by an independent auditor?□Yes √ NoThey are unaudited by such an auditor.
II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB1. Consolidated Balance SheetPrepared by Foshan Electrical and Lighting Co., Ltd.
30 June 2018
Unit: RMB
| Item | 30 June 2018 | 31 December 2017 |
| Current assets: | ||
| Monetary assets | 914,968,599.68 | 570,184,208.96 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | ||
| Notes receivable | 67,325,195.40 | 68,368,192.41 |
| Accounts receivable | 994,690,386.07 | 756,291,432.56 |
| Prepayments | 30,415,238.48 | 33,095,313.35 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Interest receivable | 1,589,090.91 | 12,428,451.86 |
| Dividends receivable | ||
| Other receivables | 37,100,965.10 | 21,215,215.15 |
| Financial assets purchased under resale agreements | ||
| Inventories | 718,166,451.66 | 746,466,889.87 |
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 348,511,668.85 | 1,006,062,102.56 |
| Total current assets | 3,112,767,596.15 | 3,214,111,806.72 |
| Non-current assets: |
| Loans and advances to customers | ||
| Available-for-sale financial assets | 1,010,613,407.54 | 1,390,581,536.60 |
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 176,473,300.95 | 179,414,105.14 |
| Investment property | ||
| Fixed assets | 511,806,666.21 | 483,520,866.64 |
| Construction in progress | 189,368,112.34 | 162,814,991.68 |
| Engineering materials | ||
| Proceeds from disposal of fixed assets | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Intangible assets | 153,387,711.51 | 155,544,720.36 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 7,405,224.79 | 9,088,933.56 |
| Deferred income tax assets | 34,933,025.45 | 37,675,828.79 |
| Other non-current assets | 42,106,140.00 | 43,059,034.80 |
| Total non-current assets | 2,126,093,588.79 | 2,461,700,017.57 |
| Total assets | 5,238,861,184.94 | 5,675,811,824.29 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from central bank | ||
| Customer deposits and deposits from banks and other financial institutions | ||
| Interbank loans obtained | ||
| Financial liabilities at fair value through profit or loss | ||
| Derivative financial liabilities | ||
| Notes payable | 2,652,485.00 | |
| Accounts payable | 679,471,875.75 | 539,303,554.54 |
| Advances from customers | 39,197,246.65 | 48,706,778.49 |
| Financial assets sold under repurchase agreements | ||
| Handling charges and commissions payable | ||
| Payroll payable | 63,799,759.73 | 81,948,630.59 |
| Taxes payable | 46,542,385.81 | 27,350,670.40 |
| Interest payable | ||
| Dividends payable | ||
| Other payables | 35,648,829.55 | 40,548,489.03 |
| Reinsurance payables |
| Insurance contract reserve | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 867,312,582.49 | 737,858,123.05 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Long-term payables | ||
| Long-term payroll payable | ||
| Specific payables | ||
| Provisions | ||
| Deferred income | 11,780,830.53 | 11,858,330.49 |
| Deferred income tax liabilities | 69,465,031.60 | 126,460,250.96 |
| Other non-current liabilities | ||
| Total non-current liabilities | 81,245,862.13 | 138,318,581.45 |
| Total liabilities | 948,558,444.62 | 876,176,704.50 |
| Owners’ equity: | ||
| Share capital | 1,399,346,154.00 | 1,272,132,868.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 158,608,173.07 | 285,821,459.07 |
| Less: Treasury shares | ||
| Other comprehensive income | 393,631,982.39 | 716,607,333.78 |
| Specific reserve | ||
| Surplus reserves | 772,953,002.36 | 772,953,002.36 |
| General reserve | ||
| Retained earnings | 1,542,346,538.43 | 1,731,600,796.18 |
| Total equity attributable to owners of the Company as the parent | 4,266,885,850.25 | 4,779,115,459.39 |
| Non-controlling interests | 23,416,890.07 | 20,519,660.40 |
| Total owners’ equity | 4,290,302,740.32 | 4,799,635,119.79 |
| Total liabilities and owners’ equity | 5,238,861,184.94 | 5,675,811,824.29 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2018 | 31 December 2017 |
| Current assets: | ||
| Monetary assets | 624,071,920.48 | 502,169,100.40 |
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | ||
| Notes receivable | 66,615,195.40 | 67,268,192.41 |
| Accounts receivable | 972,172,168.34 | 747,430,159.61 |
| Prepayments | 66,845,395.68 | 70,580,941.09 |
| Interest receivable | 1,589,090.91 | 9,744,035.20 |
| Dividends receivable | ||
| Other receivables | 72,164,535.91 | 42,174,877.89 |
| Inventories | 646,102,715.85 | 670,527,529.71 |
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 339,075,203.39 | 777,495,203.31 |
| Total current assets | 2,788,636,225.96 | 2,887,390,039.62 |
| Non-current assets: | ||
| Available-for-sale financial assets | 1,010,613,407.54 | 1,390,581,536.60 |
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 660,266,403.21 | 663,207,207.40 |
| Investment property | ||
| Fixed assets | 425,385,486.39 | 404,667,257.11 |
| Construction in progress | 187,700,809.13 | 161,024,975.28 |
| Engineering materials | ||
| Proceeds from disposal of fixed assets | ||
| Productive living assets | ||
| Oil and gas assets | ||
| Intangible assets | 109,868,785.34 | 112,251,734.86 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 6,193,662.18 | 8,209,699.77 |
| Deferred income tax assets | 32,668,456.01 | 32,985,075.62 |
| Other non-current assets | 42,106,140.00 | 42,661,573.80 |
| Total non-current assets | 2,474,803,149.80 | 2,815,589,060.44 |
| Total assets | 5,263,439,375.76 | 5,702,979,100.06 |
| Current liabilities: | ||
| Short-term borrowings |
| Financial liabilities at fair value through profit or loss | ||
| Derivative financial liabilities | ||
| Notes payable | 2,652,485.00 | |
| Accounts payable | 877,507,812.49 | 719,912,246.75 |
| Advances from customers | 37,809,995.34 | 47,306,971.94 |
| Payroll payable | 43,953,007.55 | 60,345,714.81 |
| Taxes payable | 35,237,842.58 | 13,294,037.24 |
| Interest payable | ||
| Dividends payable | ||
| Other payables | 99,671,341.22 | 96,824,757.90 |
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 1,096,832,484.18 | 937,683,728.64 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Long-term payables | ||
| Long-term payroll payable | ||
| Specific payables | ||
| Provisions | ||
| Deferred income | 11,548,330.26 | 11,548,330.26 |
| Deferred income tax liabilities | 69,465,031.60 | 126,460,250.96 |
| Other non-current liabilities | ||
| Total non-current liabilities | 81,013,361.86 | 138,008,581.22 |
| Total liabilities | 1,177,845,846.04 | 1,075,692,309.86 |
| Owners’ equity: | ||
| Share capital | 1,399,346,154.00 | 1,272,132,868.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 166,211,779.15 | 293,425,065.15 |
| Less: Treasury shares | ||
| Other comprehensive income | 393,635,179.08 | 716,608,088.78 |
| Specific reserve | ||
| Surplus reserves | 772,953,002.36 | 772,953,002.36 |
| Retained earnings | 1,353,447,415.13 | 1,572,167,765.91 |
| Total owners’ equity | 4,085,593,529.72 | 4,627,286,790.20 |
| Total liabilities and owners’ equity | 5,263,439,375.76 | 5,702,979,100.06 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan3. Consolidated Income Statement
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Revenue | 2,064,779,289.99 | 2,023,925,582.84 |
| Including: Operating revenue | 2,064,779,289.99 | 2,023,925,582.84 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Operating costs and expenses | 1,812,566,821.34 | 1,764,705,009.46 |
| Including: Cost of sales | 1,579,291,867.89 | 1,546,931,779.85 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surtaxes | 21,962,518.24 | 20,386,602.33 |
| Selling expense | 103,917,010.47 | 81,651,993.69 |
| Administrative expense | 104,474,031.52 | 98,790,821.60 |
| Finance costs | -13,085,476.61 | -7,115,907.36 |
| Asset impairment loss | 16,006,869.83 | 24,059,719.35 |
| Add: Gain on changes in fair value (“-” for loss) | ||
| Investment income (“-” for loss) | 24,509,870.36 | 14,009,282.02 |
| Including: Share of profit or loss of joint ventures and associates | 179,781.56 | 1,543,965.79 |
| Foreign exchange gain (“-” for loss) | ||
| Asset disposal income (“-” for loss) | -10,790.68 | |
| Other income | 1,018,385.17 | 3,302,994.36 |
| 3. Operating profit (“-” for loss) | 277,740,724.18 | 276,522,059.08 |
| Add: Non-operating income | 1,669,856.43 | 2,719,401.52 |
| Less: Non-operating expense | 191,749.42 | 4,758,983.01 |
| 4. Profit before taxation (“-” for loss) | 279,218,831.19 | 274,482,477.59 |
| Less: Income tax expense | 47,044,145.70 | 42,597,501.35 |
| 5. Net profit (“-” for net loss) | 232,174,685.49 | 231,884,976.24 |
| 5.1 Net profit from continuing | 232,174,685.49 | 231,884,976.24 |
| operations (“-” for net loss) | ||
| 5.2 Net profit from discontinued operations (“-” for net loss) | ||
| Net profit attributable to owners of the Company as the parent | 229,277,455.82 | 228,494,660.57 |
| Net profit attributable to non-controlling interests | 2,897,229.67 | 3,390,315.67 |
| 6. Other comprehensive income, net of tax | -322,975,351.39 | 23,025,471.14 |
| Attributable to owners of the Company as the parent | -322,975,351.39 | 23,025,471.14 |
| 6.1 Items that will not be reclassified to profit or loss | ||
| 6.1.1 Changes in net liabilities or assets caused by remeasurements on defined benefit pension schemes | ||
| 6.1.2 Share of other comprehensive income of investees that will not be reclassified to profit or loss under equity method | ||
| 6.2 Items that may subsequently be reclassified to profit or loss | -322,975,351.39 | 23,025,471.14 |
| 6.2.1 Share of other comprehensive income of investees that will be reclassified to profit or loss under equity method | ||
| 6.2.2 Gain/Loss on changes in fair value of available-for-sale financial assets | -322,972,909.70 | 23,025,471.14 |
| 6.2.3 Gain/Loss arising from reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 6.2.4 Effective gain/loss on cash flow hedges | ||
| 6.2.5 Differences arising from translation of foreign currency-denominated financial statements | -2,441.69 | |
| 6.2.6 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | -90,800,665.90 | 254,910,447.38 |
| Attributable to owners of the Company as the parent | -93,697,895.57 | 251,520,131.71 |
| Attributable to non-controlling interests | 2,897,229.67 | 3,390,315.67 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1638 | 0.1633 |
| 8.2 Diluted earnings per share | 0.1638 | 0.1633 |
Where business combinations under common control occurred in the Current Period, the net profit achieved by the acquireesbefore the combinations was RMB0.00, with the amount for the same period of last year being RMB0.00.Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Operating revenue | 2,004,288,444.76 | 1,980,196,404.29 |
| Less: Cost of sales | 1,587,394,320.53 | 1,549,957,656.10 |
| Taxes and surtaxes | 17,214,406.11 | 14,028,299.06 |
| Selling expense | 91,117,192.72 | 74,062,826.39 |
| Administrative expense | 96,241,158.47 | 98,398,538.37 |
| Finance costs | -12,655,059.12 | -4,474,253.64 |
| Asset impairment loss | 15,224,655.05 | 23,053,208.55 |
| Add: Gain on changes in fair value (“-” for loss) | ||
| Investment income (“-” for loss) | 21,037,840.32 | 12,903,476.48 |
| Including: Share of profit or loss of joint ventures and associates | 179,781.56 | 1,543,965.79 |
| Asset disposal income (“-” for loss) | ||
| Other income | 561,343.06 | 3,285,240.00 |
| 2. Operating profit (“-” for loss) | 231,350,954.38 | 241,358,845.94 |
| Add: Non-operating income | 1,572,451.59 | 2,461,593.41 |
| Less: Non-operating expense | 164,104.09 | 2,041,377.50 |
| 3. Profit before taxation (“-” for loss) | 232,759,301.88 | 241,779,061.85 |
| Less: Income tax expense | 32,947,939.09 | 34,045,999.98 |
| 4. Net profit (“-” for net loss) | 199,811,362.79 | 207,733,061.87 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 199,811,362.79 | 207,733,061.87 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -322,972,909.70 | 23,025,471.14 |
| 5.1 Items that will not be reclassified to profit or loss | ||
| 5.1.1 Changes in net liabilities or assets caused by remeasurements on |
| defined benefit pension schemes | ||
| 5.1.2 Share of other comprehensive income of investees that will not be reclassified into profit or loss under equity method | ||
| 5.2 Items that may subsequently be reclassified to profit or loss | -322,972,909.70 | 23,025,471.14 |
| 5.2.1 Share of other comprehensive income of investees that will be reclassified into profit or loss under equity method | ||
| 5.2.2 Gain/Loss on changes in fair value of available-for-sale financial assets | -322,972,909.70 | 23,025,471.14 |
| 5.2.3 Gain/Loss arising from reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 5.2.4 Effective gain/loss on cash flow hedges | ||
| 5.2.5 Differences arising from translation of foreign currency-denominated financial statements | ||
| 5.2.6 Other | ||
| 6. Total comprehensive income | -123,161,546.91 | 230,758,533.01 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,769,237,743.67 | 1,754,303,637.97 |
| Net increase in customer deposits and deposits from banks and other financial institutions | ||
| Net increase in loans from central bank | ||
| Net increase in loans from other financial institutions |
| Premiums received on original insurance contracts | ||
| Net proceeds from reinsurance | ||
| Net increase in deposits and investments of policy holders | ||
| Net increase in proceeds from disposal of financial assets at fair value through profit or loss | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Tax rebates | 47,287,499.42 | 42,499,505.18 |
| Cash generated from other operating activities | 33,545,832.35 | 28,893,716.10 |
| Subtotal of cash generated from operating activities | 1,850,071,075.44 | 1,825,696,859.25 |
| Payments for commodities and services | 1,131,421,056.92 | 1,114,835,724.72 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in central bank and in interbank loans granted | ||
| Payments for claims on original insurance contracts | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 339,556,840.55 | 371,942,160.26 |
| Taxes paid | 137,020,623.78 | 262,092,182.25 |
| Cash used in other operating activities | 97,348,775.81 | 107,889,979.24 |
| Subtotal of cash used in operating activities | 1,705,347,297.06 | 1,856,760,046.47 |
| Net cash generated from/used in operating activities | 144,723,778.38 | -31,063,187.22 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 660,000,000.00 | |
| Investment income | 34,539,472.29 | 15,011,705.23 |
| Net proceeds from disposal of fixed assets, intangible assets and other | 1,626,000.00 |
| long-lived assets | ||
| Net proceeds from disposal of subsidiaries or other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 694,539,472.29 | 16,637,705.23 |
| Payments for acquisition of fixed assets, intangible assets and other long-lived assets | 90,700,439.05 | 108,664,080.94 |
| Payments for investments | 20,000,000.00 | |
| Net increase in pledged loans granted | ||
| Net payments for acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 3,304,699.80 | |
| Subtotal of cash used in investing activities | 94,005,138.85 | 128,664,080.94 |
| Net cash generated from/used in investing activities | 600,534,333.44 | -112,026,375.71 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Increase in borrowings obtained | ||
| Net proceeds from issuance of bonds | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayment of borrowings | ||
| Payments for interest and dividends | 405,163,764.00 | 522,068,416.83 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 5,660,290.78 | |
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 405,163,764.00 | 522,068,416.83 |
| Net cash generated from/used in financing activities | -405,163,764.00 | -522,068,416.83 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 1,385,343.10 | 912,356.51 |
| 5. Net increase in cash and cash | 341,479,690.92 | -664,245,623.25 |
| equivalents | ||
| Add: Cash and cash equivalents, beginning of the period | 570,184,208.96 | 1,479,283,642.54 |
| 6. Cash and cash equivalents, end of the period | 911,663,899.88 | 815,038,019.29 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2018 | H1 2017 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,712,676,401.03 | 1,700,716,001.72 |
| Tax rebates | 47,263,864.23 | 42,499,505.18 |
| Cash generated from other operating activities | 26,388,452.49 | 24,406,290.15 |
| Subtotal of cash generated from operating activities | 1,786,328,717.75 | 1,767,621,797.05 |
| Payments for commodities and services | 1,263,659,844.11 | 1,363,028,963.41 |
| Cash paid to and for employees | 209,185,383.63 | 167,453,782.97 |
| Taxes paid | 87,060,201.23 | 200,061,046.37 |
| Cash used in other operating activities | 85,851,338.88 | 101,737,482.16 |
| Subtotal of cash used in operating activities | 1,645,756,767.85 | 1,832,281,274.91 |
| Net cash generated from/used in operating activities | 140,571,949.90 | -64,659,477.86 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 440,000,000.00 | 35,000,000.00 |
| Investment income | 30,667,499.69 | 28,724,845.24 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-lived assets | 1,580,000.00 | |
| Net proceeds from disposal of subsidiaries or other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 470,667,499.69 | 65,304,845.24 |
| Payments for acquisition of fixed assets, intangible assets and other long-lived assets | 85,557,155.41 | 99,538,768.93 |
| Payments for investments | ||
| Net payments for acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 3,304,699.80 | |
| Subtotal of cash used in investing activities | 88,861,855.21 | 99,538,768.93 |
| Net cash generated from/used in investing activities | 381,805,644.48 | -34,233,923.69 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Increase in borrowings obtained | ||
| Net proceeds from issuance of bonds | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayment of borrowings | ||
| Payments for interest and dividends | 405,163,764.00 | 516,408,126.05 |
| Cash used in other financing activities | ||
| Sub-total of cash used in financing activities | 405,163,764.00 | 516,408,126.05 |
| Net cash generated from/used in financing activities | -405,163,764.00 | -516,408,126.05 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 1,384,289.90 | 912,356.51 |
| 5. Net increase in cash and cash equivalents | 118,598,120.28 | -614,389,171.09 |
| Add: Cash and cash equivalents, beginning of the period | 502,169,100.40 | 1,235,417,964.88 |
| 6. Cash and cash equivalents, end of the period | 620,767,220.68 | 621,028,793.79 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan7. Consolidated Statements of Changes in Owners’ EquityH1 2018
Unit: RMB
| Item | H1 2018 | ||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | |||||
| Preferred | Perpetual | Other | |||||||||||
| shares | bonds | ||||||||||||
| 1. Balances as of end of prior year | 1,272,132,868.00 | 285,821,459.07 | 716,607,333.78 | 772,953,002.36 | 1,731,600,796.18 | 20,519,660.40 | 4,799,635,119.79 | ||||||
| Add: Adjustments for changed accounting policies | |||||||||||||
| Adjustments for corrections of previous errors | |||||||||||||
| Adjustments for business combinations under common control | |||||||||||||
| Other adjustments | |||||||||||||
| 2. Balances as of beginning of the year | 1,272,132,868.00 | 285,821,459.07 | 716,607,333.78 | 772,953,002.36 | 1,731,600,796.18 | 20,519,660.40 | 4,799,635,119.79 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 127,213,286.00 | -127,213,286.00 | -322,975,351.39 | -189,254,257.75 | 2,897,229.67 | -509,332,379.47 | |||||||
| 3.1 Total comprehensive income | -322,975,351.39 | 229,277,455.82 | 2,897,229.67 | -90,800,665.90 | |||||||||
| 3.2 Capital increased and reduced by owners | |||||||||||||
| 3.2.1 Ordinary shares increased by shareholders | |||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||
| 3.2.3 Share-based payments included in owners’ equity |
| 3.2.4 Other | |||||||||||||
| 3.3 Profit distribution | -418,531,713.57 | -418,531,713.57 | |||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -418,531,713.57 | -418,531,713.57 | |||||||||||
| 3.3.4 Other | |||||||||||||
| 3.4 Carryforwards within owners’ equity | 127,213,286.00 | -127,213,286.00 | |||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | 127,213,286.00 | -127,213,286.00 | |||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||
| 3.4.3 Surplus reserves used to make up losses | |||||||||||||
| 3.4.4 Other | |||||||||||||
| 3.5 Specific reserve | |||||||||||||
| 3.5.1 Withdrawn for the period | |||||||||||||
| 3.5.2 Used during the period | |||||||||||||
| 3.6 Other | |||||||||||||
| 4. Balances as of end of the period | 1,399,346,154.00 | 158,608,173.07 | 393,631,982.39 | 772,953,002.36 | 1,542,346,538.43 | 23,416,890.07 | 4,290,302,740.32 |
31 December 2017
Unit: RMB
| Item | H1 2017 | ||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||
| 1. Balances as of end of prior year | 1,272,132,868.00 | 285,821,459.07 | 1,133,971,372.25 | 733,924,951.81 | 1,564,615,925.99 | 15,008,066.44 | 5,005,474,643.56 | ||||||
| Add: Adjustments for changed accounting policies | |||||||||||||
| Adjustments for corrections of previous errors | |||||||||||||
| Adjustments for business combinations under common control | |||||||||||||
| Other adjustments | |||||||||||||
| 2. Balances as of beginning of the year | 1,272,132,868.00 | 285,821,459.07 | 1,133,971,372.25 | 733,924,951.81 | 1,564,615,925.99 | 15,008,066.44 | 5,005,474,643.56 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -417,364,038.47 | 39,028,050.55 | 166,984,870.19 | 5,511,593.96 | -205,839,523.77 | ||||||||
| 3.1 Total comprehensive income | -417,364,038.47 | 740,308,725.30 | 5,511,593.96 | 328,456,280.79 | |||||||||
| 3.2 Capital increased and reduced by owners | |||||||||||||
| 3.2.1 Ordinary shares increased by shareholders | |||||||||||||
| 3.2.2 Capital increased by | |||||||||||||
| holders of other equity instruments | |||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | |||||||||||||
| 3.2.4 Other | |||||||||||||
| 3.3 Profit distribution | 39,028,050.55 | -573,323,855.11 | -534,295,804.56 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | 39,028,050.55 | -39,028,050.55 | |||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -534,295,804.56 | -534,295,804.56 | |||||||||||
| 3.3.4 Other | |||||||||||||
| 3.4 Carryforwards within owners’ equity | |||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||
| 3.4.3 Surplus reserves used to make up losses | |||||||||||||
| 3.4.4 Other | |||||||||||||
| 3.5 Specific reserve | |||||||||||||
| 3.5.1 Withdrawn for the period | |||||||||||||
| 3.5.2 Used during the period |
| 3.6 Other | |||||||||||||
| 4. Balances as of end of the period | 1,272,132,868.00 | 285,821,459.07 | 716,607,333.78 | 772,953,002.36 | 1,731,600,796.18 | 20,519,660.40 | 4,799,635,119.79 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan8. Statements of Changes in Owners’ Equity of the Company as the ParentH1 2018
Unit: RMB
| Item | H1 2018 | ||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | |||||||||
| 1. Balances as of end of prior year | 1,272,132,868.00 | 293,425,065.15 | 716,608,088.78 | 772,953,002.36 | 1,572,167,765.91 | 4,627,286,790.20 | |||||
| Add: Adjustments for changed accounting policies | |||||||||||
| Adjustments for corrections of previous errors | |||||||||||
| Other adjustments | |||||||||||
| 2. Balances as of beginning of the year | 1,272,132,868.00 | 293,425,065.15 | 716,608,088.78 | 772,953,002.36 | 1,572,167,765.91 | 4,627,286,790.20 | |||||
| 3. Increase/ decrease in the period (“-” for decrease) | 127,213,286.00 | -127,213,286.00 | -322,972,909.70 | -218,720,350.78 | -541,693,260.48 | ||||||
| 3.1 Total comprehensive income | -322,972,909.70 | 199,811,362.79 | -123,161,546.91 | ||||||||
| 3.2 Capital increased and reduced by owners | |||||||||||
| 3.2.1 Ordinary shares increased by shareholders | |||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||
| 3.2.3 Share-based payments included in owners’ equity | |||||||||||
| 3.2.4 Other | |||||||||||
| 3.3 Profit distribution | -418,531,713.57 | -418,531,713.57 | |||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -418,531,713.57 | -418,531,713.57 | |||||||||
| 3.3.3 Other | |||||||||||
| 3.4 Carryforwards within owners’ equity | 127,213,286.00 | -127,213,286.00 | |||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | 127,213,286.00 | -127,213,286.00 | |||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||
| 3.4.3 Surplus reserves used to make up losses | |||||||||||
| 3.4.4 Other | |||||||||||
| 3.5 Specific reserve | |||||||||||
| 3.5.1 Withdrawn for the period | |||||||||||
| 3.5.2 Used during the period | |||||||||||
| 3.6 Other |
| 4. Balances as of end of the period | 1,399,346,154.00 | 166,211,779.15 | 393,635,179.08 | 772,953,002.36 | 1,353,447,415.13 | 4,085,593,529.72 |
31 December 2017
Unit: RMB
| Item | H1 2017 | ||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury shares | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | |||||||||
| 1. Balances as of end of prior year | 1,272,132,868.00 | 293,425,065.15 | 1,133,971,372.25 | 733,924,951.81 | 1,448,907,867.73 | 4,882,362,124.94 | |||||
| Add: Adjustments for changed accounting policies | |||||||||||
| Adjustments for corrections of previous errors | |||||||||||
| Other adjustments | |||||||||||
| 2. Balances as of beginning of the year | 1,272,132,868.00 | 293,425,065.15 | 1,133,971,372.25 | 733,924,951.81 | 1,448,907,867.73 | 4,882,362,124.94 | |||||
| 3. Increase/ decrease in the period (“-” for decrease) | -417,363,283.47 | 39,028,050.55 | 123,259,898.18 | -255,075,334.74 | |||||||
| 3.1 Total comprehensive income | -417,363,283.47 | 696,583,753.29 | 279,220,469.82 | ||||||||
| 3.2 Capital increased and reduced by owners | |||||||||||
| 3.2.1 Ordinary shares increased by shareholders | |||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||
| 3.2.3 Share-based payments included in owners’ equity | |||||||||||
| 3.2.4 Other | |||||||||||
| 3.3 Profit distribution | 39,028,050.55 | -573,323,855.11 | -534,295,804.56 | ||||||||
| 3.3.1 Appropriation to surplus reserves | 39,028,050.55 | -39,028,050.55 | |||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -534,295,804.56 | -534,295,804.56 | |||||||||
| 3.3.3 Other | |||||||||||
| 3.4 Carryforwards within owners’ equity | |||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||
| 3.4.3 Surplus reserves used to make up losses | |||||||||||
| 3.4.4 Other | |||||||||||
| 3.5 Specific reserve | |||||||||||
| 3.5.1 Withdrawn for the period | |||||||||||
| 3.5.2 Used during the period | |||||||||||
| 3.6 Other | |||||||||||
| 4. Balances as of end of the period | 1,272,132,868.00 | 293,425,065.15 | 716,608,088.78 | 772,953,002.36 | 1,572,167,765.91 | 4,627,286,790.20 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
III Company Profile
Foshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limited companyjointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed Brick Field, andFoshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval of YGS (1992) No.63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of GuangdongProvince and the Economic System Reform Commission of Guangdong Province, is an enterprise with its sharesheld by both the corporate and the natural persons. As approved by China Securities Regulatory Commissionwith Document (1993) No. 33, the Company publicly issued 19.3 million shares of social public shares (A shares)to the public in October 1993, and was listed in Shenzhen Stock Exchange for trade on 23 November 1993. TheCompany was approved to issue 50,000,000 B shares on 23 July 1995. And, as approved to change into aforeign-invested stock limited company on 26 August 1996 by (1996) WJMZEHZ No. 466 Document issued by theMinistry of Foreign Trade and Economic Cooperation of the People’s Republic of China. On 11 December 2000, asapproved by China Securities Regulatory Commission with ZJGS Zi [2000] No. 175 Document, the Companyadditionally issued 55,000,000 A shares. At approved by the Annual General Meeting of 2006, 2007, 2008, 2014,and 2017 the Company implemented the plan of capitalization of capital reserve, after the transfer, the
registered capital of the Company has increased to RMB1,399,346,154.00
Credibility code of the Company: 91440000190352575W.Legal representative: Mr. He YongAddress: No. 64, Fenjiang North Road, Foshan, Guangdong ProvinceMain business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting productsand electro technical products.The business term of the Company is long-term, which was calculated from the date of issuance of License ofBusiness Corporation.The Financial Report was approved and authorized for issue by the Board of Directors on 28 August 2018.(II). Scope of the Consolidated Financial StatementsThe consolidation scope of the financial statement during the Reporting Period including the Company and the10 subordinate subsidiaries such as Foshan Lighting Chanchang Optoelectronics Co., Ltd.( referred to as“Chanchang Company”), Foshan Chansheng Electronic Ballast Co., Ltd. ( referred to as “Chansheng Company”),Foshan Taimei Times Lamps and Lanterns Co., Ltd. ( referred to as “Taimei Company”), Nanjing Fozhao LightingComponents Co., Ltd. ( referred to as “Nanjing Fozhao”), FSL (Xinxiang) Lighting Co., Ltd. ( referred to as “XinxiangCompany”), Foshan Electrical and Lighting New Light Source Technology Co., Ltd. ( referred to as “New LightSource Company”), Guangdong Fozhao Leasing Co., Ltd. ( referred to as “Leasing Company”), Foshan LightingLamps & Components Co., Ltd. ( referred to as “Lamps & Components Company”) and FSL Zhida ElectricTechnology Co., Ltd( referred to as “Zhida Electric Technology”), and FSL Lighting GmbH (referred to as “FSLEurope”).For details, see relevant contents in Note VIII “Changes in the consolidation scope”, and Note IX “Equities in otherentities”
IV Basis for Preparation of Financial Statements
1. Preparation BasisThe financial statements of the Company are based on the continuing operation, and are confirmed andmeasured according to the actual transactions and events, the Accounting Standards for Business Enterprises -
Basic Standards, other various specific accounting standards, the application guide, the interpretation ofaccounting standards for business enterprises (hereinafter referred to as the Accounting Standards for BusinessEnterprises). And based on the following important accounting policies, and accounting estimations, they areprepared according to the relevant regulations of Rules for the Information Disclosure of Companies PubliclyIssuing Securities No. 15 - General Provisions on Financial Reporting of China Securities Regulatory Commission(Revised in 2014). Except the Cash Flow Statement prepared under the principle of cash basis, the rest offinancial statement of the Company are prepared under the principle of accrual basis.The Company didn’t find anything like being suspicious of the ability of continuing operation within 12 monthsfrom the end of the Reporting Period with all available information.
2. ContinuationThe Company has no matters affecting the continuing operation of the Company and is expected to have theability to continue to operate in the next 12 months. The financial statements of the Company are prepared onthe basis of continuing operation.
V Important Accounting Policies and Estimations
Reminders of the specific accounting policies and accounting estimations:
The Company confirmed the specific accounting policies and estimations according to production and operationfeatures, mainly reflecting in the method of provision for accounts receivables bad debt (Note 11. AccountReceivables), pricing method of inventory (Note 12. Inventory), depreciation of fixed assets and amortization ofintangible assets (Note 16. Fixed Assets and Note 21. Intangible Assets), and recognized time point of income(Note 28. Income), etc.
1. Statement of Compliance with the Accounting Standards for Business EnterprisesThe financial statements prepared by the Company are in compliance with the Accounting Standards for BusinessEnterprises, which factually and completely present the Company’s and the consolidated financial positions,business results and cash flows, as well as other relevant information.
2. Fiscal YearA fiscal year starts on January 1
st
and ends on December 31
st
according to the Gregorian calendar.3. Operating Cycle
An operating cycle for the Company is 12 months, which is also the classification criterion for the liquidity of itsassets and liabilities.
4. Recording CurrencyRenminbi is the recording currency for the statements of the Company, and the financial statements are listedand presented by Renminbi.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not under theSame Control
1. Business combinations under the same controlFor the merger of enterprises under the same control, if the consideration of the merging enterprise is that itmakes payment in cash, transfers non-cash assets or bear its debts, it shall, on the date of merger, regard the
share of the book value among final controller’s consolidated financial statement of the owner's equity of themerged enterprise as the initial cost of the long-term equity investment. The difference between the initial costof the long-term equity investment and the payment in cash, non-cash assets transferred as well as the bookvalue of the debts borne by the merging party shall offset against the capital reserve. If the capital reserve isinsufficient to dilute, the retained earnings shall be adjusted.If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger,regard the share of the book value among final controller’s consolidated financial statement of the owner'sequity of the merged enterprise as the initial cost of the long-term equity investment. The total face value of thestocks issued shall be regarded as the capital stock, while the difference between the initial cost of the long-termequity investment and total face value of the shares issued shall offset against the capital reserve. If the capitalreserve is insufficient to dilute, the retained earnings shall be adjusted.2. Business combinations not under the same controlThe Company measured the paid assets as the consideration of business combination and liabilities happened orundertaken by fair value. The difference between fair value and its book value shall be included into the currentlosses and gains. The Company distributed combined cost on the purchasing date.The difference of the combination cost greater than the fair value of the identifiable net assets of the acquireeacquired is recognized as goodwill; the difference of the combination cost less than the fair value of theidentifiable net assets of the acquiree acquired is included into current losses and gains.As for the assets other than intangible assets acquired from the acquiree in a business combination (not limitedto the assets which have been recognized by the acquiree), if the economic benefits brought by them are likely toflow into the Company and their fair values can be measured reliably, they shall be separately recognized andmeasured in light of their fair values; intangible asset whose fair value can be measured reliably shall beseparately recognized as an intangible asset and shall measured in light of its fair value; As for the liabilities otherthan contingent liabilities acquired from the acquiree, if the performance of the relevant obligations is likely toresult in any out-flow of economic benefits from the Company, and their fair values can be measured reliably,they shall be separately recognized and measured in light of their fair values; As for the contingent liabilities ofthe acquiree, if their fair values can be measured reliably, they shall separately recognized as liabilities and shallbe measured in light of their fair values.
6. Methods for Preparing Consolidated Financial Statements1. Principle of determining the scope of consolidationThe scope of consolidation of the consolidated financial statements of the Company is determined on the basisof control. Control means that the investors has the right to invest in the investee and enjoy a variable returnthrough the participation of the relevant activities of the investee, and has the ability to use the power over theinvestee to affect the amount of its return. The Company includes the subsidiaries with actual right of control(including separate entity controlled by the Parent Company) into consolidated financial statements.2. Principles, procedures and methods for the preparation of consolidated statements(1) Principles, procedures and methods for the preparation of consolidated statementsAll subsidiaries included into the scope of consolidated financial statements adopted same accounting policiesand fiscal year with the Company. If the accounting policies and fiscal year of the subsidiaries are different to theCompany’s, necessary adjustment should be made in accordance with the Company’s accounting policies andfiscal year when consolidated financial statements are prepared.The consolidated financial statements are based on the financial statements of the Parent Company andsubsidiaries included into the consolidated scope. The consolidated financial statements are prepared by theCompany who makes adjustment to long-term equity investment to subsidiaries by equity method according to
other relevant materials after the offset of the share held by the Parent Company in the equity capital investmentof the Parent Company and owner’s equity of subsidiaries and the significant transactions and intrabranch withinthe Company.For the balance formed because the current loss shared by the minority shareholders of the subsidiary is morethan the share enjoyed by the minority shareholders of the subsidiary in the initial shareholders’ equity, if theArticles of Corporation or Agreement didn’t stipulate that minority shareholders should be responsible for it,then the balance need to offset the shareholders’ equity of the Company; if the Articles of Corporation orAgreement stipulated that minority shareholders should be responsible for it, then the balance need to offsetthe minority shareholders’ equity.(2) Treatment method of increasing or disposing subsidiaries during the Reporting PeriodDuring the Reporting Period, if the subsidiaries were added due to Business combinations under the samecontrol, then initial book balance of consolidated balance sheet need to be adjusted; the income, expenses, andprofits of subsidiaries from the combination’s period-begin to the end of the reporting period need to beincluded into consolidated income statement; the cash flow of subsidiaries from the combination’s period-beginto the end of the reporting period need to be included into consolidated cash flow statement. if the subsidiarieswere added due to Business combinations not under the same control, then initial book balance of consolidatedbalance sheet doesn’t need to be adjusted; the income, expenses, and profits of subsidiaries from the purchasingdate to the end of the reporting period need to be included into consolidated income statement; the cash flow ofsubsidiaries from purchasing date to the end of the reporting period need to be included into consolidated cashflow statement.During the Reporting Period, if the Company disposed the subsidiaries, then the income, expenses, and profits ofsubsidiaries from period-begin to the disposal date need to be included into consolidated income statement; thecash flow of subsidiaries from period-begin to the disposal date need to be included into consolidated cash flowstatement.
7. Classification of Joint Arrangements and Accounting Treatment of Joint OperationsA joint arrangement refers to an arrangement jointly controlled by two participants or above and be divided intojoint operations and joint ventures.When the Company is the joint venture party of the joint operations, should recognize the following itemsrelated to the interests share of the joint operations:
(1) Recognize the assets individually held and the assets jointly held by recognizing according to the holdingshare;(2) Recognize the liabilities undertook individually and the liabilities jointly held by recognizing according to theholding share;(3) Recognize the revenues occurred from selling the output share of the joint operations enjoy by the Company;(4) Recognize the revenues occurred from selling the assets of the joint operations according to the holdingshare;(5) Recognize the expenses individually occurred and the expenses occurred from the joint operations accordingto the holding share of the Company.When the Company is the joint operation party of the joint ventures, should recognize the investment of thejoint ventures as the long-term equity investment and be measured according g to the said methods of the notesof the long-term equity investment of the financial statement.
8. Recognition Standard for Cash and Cash EquivalentsIn the Group’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used for
cover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency and Accounting Method for Foreign Currency1. Foreign currency businessForeign currency shall be recognized by employing systematic and reasonable methods, and shall be translatedinto the amount in the functional currency at the exchange rate which is approximate to the spot exchange rateof the transaction date. On the balance sheet date, the foreign currency monetary items shall be translated atthe spot exchange rate. The balance of exchange arising from the difference between the spot exchange rate onthe balance sheet date and the spot exchange rate at the time of initial recognition or prior to the balance sheetdate shall be recorded into the profits and losses at the current period except that the balance of exchangearising from foreign currency borrowings for the purchase and construction or production of qualified assets shallbe capitalized. The foreign currency non-monetary items measured at the historical cost shall still be translated atthe spot exchange rate on the transaction date.2. Translation of foreign currency financial statementsThe asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balancesheet date. Among the owner’s equity items, except for the items as “undistributed profits”, other items shall betranslated at the spot exchange rate at the time when they are incurred. The revenues and the expenses items ofthe income statement should be translated according to the spot rate on the exchange date.The difference of the foreign currency financial statements occurred from the above translation should be listedunder the “other comprehensive income” item of the owners’ equity of the consolidated financial statement. Asfor the foreign currency items which actually form into the net investment of the foreign operation, the exchangedifference occurred from the exchange rate changes should be listed under the “other comprehensive income” ofthe owners’ equity among the consolidated financial statement when compile the consolidated financialstatement. When disposing the foreign operation, as for the discounted difference of the foreign financialstatement related to the foreign operation should be transferred in the current gains and losses according to theproportion. The foreign cash flow adopts the spot exchange rate on the occurring date of the cash flow. And theinfluenced amount of the exchange rate changes should be individually listed among the cash flow statement.
10. Financial Instruments1. Classification, recognition and measurement of financial assetsFinancial assets shall be classified into the following four categories when they are initially recognized: financialassets measured at fair value and of which variations are recorded in the profits and losses for the current period,loans and the account receivables, financial assets available for sale and the investments which will be held totheir maturity.(1) Financial assets measured at fair value and of which variations are recorded in the profits and losses for thecurrent period refer to financial assets held by the Company for the purpose of selling in the near future,including transactional financial assets, or financial assets designated by the management in the initialrecognition to be measured at fair value with variations recorded in the gains and losses for the current period.Financial assets measured at fair value and of which variations are recorded in the profits and losses for thecurrent period are subsequently measured at their fair values. Interest or cash dividends arising from such assetsduring the holing period are recognized as investment gains. Gains or losses arising from fair value changes arerecorded in the gains and losses for the current period at the end of the Reporting Period. When such assets aredisposed, the difference between their fair values and initially recognized amounts is recognized as investmentgains and the gains and losses arising from fair value changes are adjusted accordingly.
(2) Loan and accounts receivable: the non-derivative financial assets for which there is no quoted price in theactive market and of which the recoverable amount is fixed or determinable shall be classified as loan andaccounts receivable. The Company shall make subsequent measurement on its loan and accounts receivable onthe basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses, whenloan and accounts receivable are terminated from recognizing, or are impaired or amortized, shall be recordedinto the profits and losses of the current period.(3)Available-for-sale Financial Assets: the non-derivative financial assets which are designated asavailable-for-sale financial assets when they are initially recognized as well as the non-derivative financial assetsother than loans and accounts receivables, investments held until their maturity; and transaction financial assets.The Company shall make subsequent measurement on available-for-sale financial assets at fair value andrecognize the interests or the cash bonus acquired the holding period as the investment income, as well asdirectly include the profits or losses formed by the changes of the fair value into the owners’ equity at theperiod-end, until the said financial assets shall be transferred out when they are terminated from recognizing orare impaired, which shall be recorded into the profits and losses of current period.(4) Held-to-maturity Investments: non-derivative financial asset with a fixed date of maturity, a fixed ordeterminable recoverable amount and which the Company’s management holds for a definite purpose or theCompany’s management is able to hold until its maturity. The Company shall make subsequent measurement onits Held-to-maturity Investments on the basis of the post-amortization costs by adopting the actual interest rate,from which gains and losses, when loan and accounts receivable are terminated from recognizing, or areimpaired or amortized, shall be recorded into the profits and losses of the current period.2. Classification, Recognition and Measurement of Financial LiabilitiesFinancial liabilities shall be classified into the following two categories when they are initially recognized: thetransactional financial liabilities; and other financial liabilities. The financial liabilities initially recognized by theCompany shall be measured at their fair values. For the transactional financial liabilities, the transaction expensesthereof shall be directly recorded into the profits and losses of the current period; for other categories offinancial liabilities, the transaction expenses thereof shall be included into the initially recognized amount.(1) As for the financial liabilities measured by fair value and its changes be included in the current gains andlosses, which including trading financial liabilities and the financial liabilities be appointed to be measured by fairvalue with the changes be included in the current gains and losses when being initially recognized, should beexecuted subsequent measurement according to the fair value with the profits or losses formed by the changesof the fair value be included in the current gains and losses.(2) Other financial liabilities: The Company shall make subsequent measurement on its other financial liabilitieson the basis of the post-amortization costs by adopting the actual interest rate, from which gains and losses,when other financial liabilities are terminated from recognizing or amortized, shall be recorded into the profitsand losses of the current period.3. Recognition and measurement of financial asset transfersAs for the Company transferred nearly all of the risks and rewards related to the ownership of a financial asset tothe transferee, should derecognize the financial assets; as for maintained nearly all of the risks and rewardsrelated to the ownership of a financial asset, should continue to recognize the transferred financial assets andrecognize the received counter price as a financial liability. Where the Company does not transfer or retain nearlyall of the risks and rewards related to the ownership of a financial asset (that is to say, it is not under acircumstance as mentioned in Article 7 of these Standards), it shall deal with it according to the circumstances asfollows, respectively: (1) If it gives up its control over the financial asset, it shall stop recognizing the financialasset; (2) If it does not give up its control over the financial asset, it shall, according to the extent of its
continuous involvement in the transferred financial asset, recognize the related financial asset and recognize therelevant liability accordingly.If the transfer of an entire financial asset satisfies the conditions for stopping recognition, the difference betweenthe amounts of the following 2 items shall be recorded in the profits and losses of the current period: (1) Thebook value of the transferred financial asset; (2) the sum of consideration received from the transfer, and theaccumulative amount of the changes of the fair value originally recorded in the owner's equities.If the transfer of partial financial asset satisfies the conditions to stop the recognition, the entire book value ofthe transferred financial asset shall, between the portion whose recognition has been stopped and the portionwhose recognition has not been stopped, be apportioned according to their respective relative fair value, and thedifference between the amounts of the following two items shall be included into the profits and losses of thecurrent period: (1)The book value of the portion whose recognition has been stopped; (2)The sum ofconsideration of the portion whose recognition has been stopped, and the portion of the accumulative amountof the changes in the fair value originally recorded in the owner's equities which is corresponding to the portionwhose recognition has been stopped.4. De-recognition conditions of financial liabilitiesOnly when the prevailing obligations of a financial liability are relieved in all or in part may the recognition of thefinancial liability be terminated in all or partly. Where the Group (debtor) enters into an agreement with acreditor so as to substitute the existing financial liabilities by way of any new financial liability, and if thecontractual stipulations regarding the new financial liability is substantially different from that regarding theexisting financial liability, it terminates the recognition of the existing financial liability, and at the same timerecognizes the new financial liability. If executed practical modification on the whole or part of the contractregulations of the existing financial liabilities, should terminate to recognize the existing financial liabilities orcertain part of it and at the same time recognize the revised financial liabilities as a new financial liabilities.Where the recognition of a financial liability is totally or partially terminated, the enterprise concerned shallinclude into the profits and losses of the current period for the gap between the book value which has beenterminated from recognition and the considerations it has paid (including the non-cash assets it has transferredout and the new financial liabilities it has assumed).If the Company re-purchase part of the financial liabilities, should distribute the whole book value of the financialliabilities according to the comparatively fair value between the continued reorganization part and theterminated reorganization part on the re-purchase date. And the difference between the book value distributedto the terminated recognition part and the counter price of the paid part (including the rolled out non-cashassets or the new financial liabilities undertook) should be included in the current gains and losses.5. Recognition method of the fair value of the financial assets and the financial liabilitiesAs for the financial instruments for which there is an active market, the quoted prices in the active market shallbe used to determine the fair values thereof. Where there is no active market for a financial instrument, theCompany concerned shall adopt value appraisal techniques to determine its fair value. The value appraisaltechniques mainly include the prices adopted by the parties, who are familiar with the condition, in the latestmarket transaction upon their own free will, the current fair value obtained by referring to other financialinstruments of the same essential nature, the cash flow capitalization method and the option pricing model, etc.6. Impairment test of financial assets (excluding the accounts receivable) and withdrawal method of impairmentprovisionThe Company inspects the book value of the financial assets on the balance sheet date to judge whether thereare evidences indicate that the financial assets had occurred impairment owning to the occurrence of one ormultiple events.
As for the measurement for impairment of financial assets measured on the basis of the post-amortization costs,where there is any objective evidence proving that a financial asset measured on the basis of post-amortizationcosts is impaired, should be recognized by the carrying amount of the difference between the said financial assetwhich shall be written down to the current value of the predicted future cash flow (excluding the loss of futurecredits not yet occurred) and the amount of the as written down which shall be recognized as loss of theimpairment of the asset. When calculating the current value of the estimated future cash flow, should adopt theoriginal effective interests’ rate of the financial assets as the discount rate. The book value of the assets shouldbe written down to the estimated recoverable amount through impairment provision items with the writtendown amount be included in the current gains and losses. As for the financial assets with individual significantamount, should adopt the individual assessment for ensure whether there are objective evidences indicate theimpairment provision and as for the other assets with insignificant amount, should be inspected by individual orgroup assessment for ensure whether there are objective evidences indicate the impairment provision.As for the financial assets measured by cost, if there are evidences indicate the impairment of the financialinstruments without market price which had not measured by fair value because the fair value could not bereliable measured, the amount of the impairment losses should be measured by the difference between thebook value of the financial assets and the current value of the estimated future cash flow acquired from thediscounting measurement of the current market return rate of the similar financial assets.Where an available-for-sale financial asset is impaired, the accumulative losses arising from the decrease of thefair value of the owner’s equity which was directly included shall be transferred out and recorded into the profitsand losses of the current period.7. Recognition method of fair valueFair value refers to the price that market participants got from the sale of an asset or the price paid for thetransfer of a liability among the orderly transactions happened on the measurement date. For a financialinstrument with active market, its fair value shall be determined by the quotes in the active market. For afinancial instrument with no active market, its fair value shall be determined by adopting value appraisaltechniques. When the value is appraised, by adopting the value appraisal techniques applying to the currentsituations with the support of enough available data and other information, the Company chooses the sameinput value with features of assets and liabilities considered by market participants in the transactions of relevantassets and liabilities, and gives priority in use of observable input value as far as possible. Unobservable inputvalue shall be used when the relevant observable input value cannot be obtained or the obtainment is notpractical.
11. Receivables(1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is Made
Individually
| Definition or amount criteria for an account receivable with a significant single amount | Top five accounts receivable with the largest balances or accounts accounting for over 10% of the total balance of receivables. |
| Making separate bad-debt provisions for accounts receivable with a significant single amount | For an account receivable with a significant single amount, the impairment test shall be carried out on it separately. If there is any objective evidence of impairment, the impairment loss is recognized and the bad-debt provision is made according to the difference |
(2) Accounts Receivable which the Bad Debt Provision is withdrawn by Credit Risk Characteristics
between the present value of the account receivable’sfuture cash flows and its carrying amount. As fornon-significant accounts receivable for which separateimpairment provisions are not necessary as proved bythe impairment test, as well as other significantaccounts receivable that have not been impaired asproved by a separate impairment test, they shall begrouped according to their credit risks and accountages, and then the impairment test is carried out on agroup basis.Group name
| Group name | Withdrawal method of bad debt provision |
| Common transaction group | Aging analysis method |
| Internal transaction group | Other methods |
In the groups, those adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
| Aging | Withdrawal proportion of account receivables | Withdrawal proportion of other account receivables |
| Within 1 year (including 1 year) | 3.00% | 3.00% |
| 1 to 2 years | 10.00% | 10.00% |
| 2 to 3 years | 30.00% | 30.00% |
| 3 to 4 years | 50.00% | 50.00% |
| 4 to 5 years | 80.00% | 80.00% |
| Over 5 years | 100.00% | 100.00% |
In the groups, those adopting balance percentage method to withdraw bad debt provision□ Applicable √ Not applicableIn the groups, those adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(3) Accounts Receivable with an Insignificant Single Amount but for which the Bad Debt Provision is MadeIndependently
| Reason of individually withdrawing bad debt provision | There are definite evidences indicate the obvious difference of thee return ability |
| Withdrawal method for bad debt provision | Withdraw the bad debt provision according to the difference of which the future cash flow lower than the book value. |
12. InventoryIs the Company subject to any disclosure requirements for special industries?No.
1. Classification of inventoryInventory refers to finished products, goods in process, and materials consumed in the production process or theprovision of labor services held by the Company for sale in daily activities, mainly including raw materials, goodsin process, materials in transit, finished products, commodities, turnover materials, and commissionedprocessing materials. Turnover materials include low-value consumables and packaging.2. Pricing method of inventory sent outThe inventory is valued at actual cost when acquired, and inventory costs include procurement costs, processingcosts and other costs. The weighted average method is used when receiving or sending out inventory.3. Basis for determining the net realizable value of inventory and the method of withdrawal for inventoryimpairmentNet realizable value refers to the estimated selling price of the inventory minus the estimated cost to be incurredat the time of completion, the estimated selling expenses and the relevant taxes and fees in daily activities. Indetermining the net realizable value of inventory, the conclusive evidence obtained is used as the basis and thepurpose of holding the inventory and the impact of the events after the balance sheet date should be taken intoaccount.For finished products, the materials used for sale and other goods used for direct sale, the net realizable value isdetermined by the estimated selling price of the inventory minus the estimated selling expenses and relatedtaxes in the process of normal production and operation.For materials inventory needs to be processed, the net realizable value is determined by the estimated sellingprice of the finished products minus the estimated cost to be incurred, the estimated sales costs and the relevanttaxes and fees in the process of normal production and operation.4. Inventory systemThe inventory system of the Company is perpetual inventory.5. Amortization method of turnover materialsLow-value consumables are amortized in one-off method.The packaging is amortized in one-off method.
13. Assets Held for Sale1. Assets held for sale
When a company relies mainly on selling (including the exchanges of non-monetary assets with commercialsubstance) instead of continuing to use a non-current asset or disposal group to recover its book value, thenon-current asset or disposal group is classified as asset held for sale. The non-current assets mentioned abovedo not include investment properties that are subsequently measured by the fair value model, biological assetsmeasured by fair value less net selling costs, assets formed from employee remuneration, financial assets,deferred income tax assets and rights generated from insurance contracts.Disposal group refers to a group of assets that are disposed of together as a whole through sale or other meansin a transaction, and the liabilities directly related to these assets transferred in the transaction. In certaincircumstances, the disposal group includes goodwill obtained in business combination.The Company recognizes non-current assets or disposal groups that meet both of the following conditions as
held for sale: ① Assets or disposal groups can be sold immediately under current conditions based on thepractice of selling such assets or disposal groups in similar transactions; ② Sales are highly likely to occur, that is,
the Company has already made a resolution on a sale plan and obtained a certain purchase commitment, andthe sale is expected to will be completed within one year, and the sale has been approved if relevant regulations
require relevant authority or regulatory authority of the Company to approve it.Non-current assets or disposal groups specifically obtained by the Company for resale will be classified by theCompany as a held-for-sale category on the acquisition date when they meet the stipulated conditions of“expected to be sold within one year” on the acquisition date, and may well satisfy the category of held-for-salewithin a short time (which is usually 3 months).If one of the following circumstances cannot be controlled by the Company and the transaction betweennon-related parties fails to be completed within one year, and there is sufficient evidence that the Company stillpromises to sell the non-current assets or disposal groups, the Company should continue to classify the
non-current assets or disposal groups as held-for-sale: ①The purchaser or other party unexpectedly sets
conditions that lead to extension of the sale. The Company has already acted on these conditions in a timelymanner and it is expected to be able to successfully deal with the conditions that led to the extension of the sale
within one year after the conditions were set. ②Due to unusual circumstances, the non-current assets or
disposal groups held for sale failed to be sold within one year. In the first year, the Company has taken necessarymeasures for these new conditions and the assets or disposal groups meet the conditions of held-for-sale again.If the Company loses control of a subsidiary due to the sale of investments to its subsidiaries, whether or not theCompany retains part of the equity investment after the sale, when the proposed sale of the investment to thesubsidiary meets the conditions of held- for-sale, the investment to the subsidiary will be classified asheld-for-sale in the individual financial statement of the parent company, and all the assets and liabilities of thesubsidiary will be classified as held-for-sale in the consolidated financial statement.When the company initially measures or re-measures non-current assets or disposal groups held for sale on thebalance sheet date, if the book value is higher than the fair value minus the net amount of the sale costs, thebook value will be written down to the net amount of fair value minus the sale costs, and the amount writtendown will be recognized as impairment loss of assets and included in the current profit and loss, and provisionfor impairment of held-for-sale assets will be made. For the confirmed amount of impairment loss of assets ofthe disposal groups held for sale, the book value of goodwill of the disposal groups will be offset first, and thenthe book value of various non-current assets in the disposal groups will be offset according to the proportions.If the net amount that the fair value of the non-current assets or disposal groups held for sale on the follow-upbalance sheet date minus the sale costs increases, the previous written-down amount will be restored, andreversed to the asset impairment loss confirmed after the assets being classified as held-for-sale. The reversedamount will be included in the current profit or loss. The book value of goodwill that has been deducted cannotbe reversed.Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation oramortization. Interest and other expenses of liabilities in the disposal group held for sale will be confirmed asbefore.When a non-current asset or disposal group ceases be classified as held-for-sale or a non-current asset isremoved out from the held-for-sale disposal group due to failure in meeting the classification conditions for thecategory of held-for-sale, it will be measured by one of the followings whichever is lower:
① The book value before being classified as held for sale will be adjusted according to the depreciation,
amortization or impairment that would have been recognized under the assumption that it was not classified asheld for sale;
② The recoverable amount.
2. Termination of operationTermination of operation refers to a separately identifiable constituent part that satisfies one of the followingconditions that has been disposed of by the Company or is classified as held-for-sale:
(1) This constituent part represents an independent main business or a separate main business area.(2) This constituent part is part of an associated plan that is intended to be disposed of in an independent mainbusiness or a separate major business area.(3) This constituent part is a subsidiary that is specifically acquired for resale.3. PresentationIn the balance sheet, the Company distinguishes the non-current assets held for sale or the assets in the disposalgroup held for sale separately from other assets, and distinguish the liabilities in the disposal group held for saleseparately from other liabilities. The non-current assets held for sale or the assets in the disposal group held forsale are not be offset against the liabilities in the disposal group held for sale. They are presented as currentassets and current liabilities respectively.The Company lists profit and loss from continuing operations and profit and loss from operating profits in theincome statement. For the termination of operations for the current period, the Company restates theinformation originally presented as profit or loss of continuing operation in the current financial statements toprofit or loss of termination of the comparable accounting period. If the termination of operation no longermeets the conditions of held-for-sale, the Company restates the information originally presented as a profit andloss of termination in the current financial statements to profit or loss of continuing operation of the comparableaccounting period.
14. Long-term Equity InvestmentsLong-term equity investment refers to the Company’s long-term equity investment with control, joint control or
significant influence on the investee. The long-term equity investment of the Company which has no control,joint control or significant influence on the investee is accounted for as financial assets available-for-sale orfinancial assets at fair value and changes recognized in profit or loss for the current period. For details ofaccounting policies, please refer to 10. Financial instruments in Notes V.Joint control refers to the control that is common to an arrangement in accordance with the relevant agreement,and the relevant activities of the arrangement must be agreed upon by the participant who has shared thecontrol. Significant influence refers to the Company has the power to participate in decision-making on thefinancial and operating policies of the investee, but can’t control or jointly control the formulation of thesepolicies with other parties.1. Investment cost recognition for long-term equity investments(1) For the merger of enterprises under the same control, it shall, on the date of merger, regard the share of thebook value of the owner's equity of the merged enterprise as the initial cost of the long-term equity investment,and the direct relevant expenses occurred for the merger of enterprises shall be included into the profits andlosses of the current period.(2) For the merger of enterprises not under the same control, The combination costs shall be the fair values, onthe acquisition date, of the assets paid, the liabilities incurred or assumed and the equity securities issued by theCompany in exchange for the control on the acquiree, and all relevant direct costs incurred to the acquirer forthe business combination. Where any future event that is likely to affect the combination costs is stipulated inthe combination contract or agreement, if it is likely to occur and its effects on the combination costs can bemeasured reliably, the Company shall record the said amount into the combination costs.(3) The cost of a long-term equity investment obtained by making payment in cash shall be the purchase costwhich is actually paid. The cost consists of the expenses directly relevant to the obtainment of the long-termequity investment, taxes and other necessary expenses.
(4) The cost of a long-term equity investment obtained on the basis of issuing equity securities shall be the fairvalue of the equity securities issued.(5) The cost of a long-term investment obtained by the exchange of non-monetary assets (having commercialnature) shall be recognized base on taking the fair value and relevant payable taxes as the cost of the assetsreceived.(6) The cost of a long-term equity investment obtained by recombination of liabilities shall be recognized at thefair value.2. Subsequent measurement of long-term equity investment and recognized method of profit/lossThe long-term equity investment with joint control (except for the common operator) or significant influence onthe investee is accounted by equity method. In addition, the Company's financial statements use cost method tocalculate long-term equity investments that can control the investee.(1) Long-term equity investment accounted by cost methodWhen the cost method is used for accounting, the long-term equity investment is priced at the initial investmentcost, and the cost of the long-term equity investment is adjusted according to additional investment or recoveredinvestment. Except the price actually paid when acquired investment or cash dividends or profits that have beendeclared but not yet paid included in the consideration, current investment income is recognized by the cashdividends or profits declared by the investee.(2) Long-term equity investment accounted by equity methodWhen the equity method is used for accounting, if the initial investment cost of the long-term equity investmentis greater than the fair value of the investee’s identifiable net assets, the initial investment cost of the long-termequity investment shall not be adjusted; if the initial investment cost is less than the fair value of the investee’sidentifiable net assets, the difference shall be recorded into the current profits and losses, and the cost of thelong-term equity investment shall be adjusted at the same time.When the equity method is used for accounting, the investment income and other comprehensive income shallbe recognized separately according to the net profit or loss and other comprehensive income realized by theinvestee, and the book value of the long-term equity investment shall be adjusted at the same time. The partentitled shall be calculated according to the profits or cash dividends declared by the investee, and the bookvalue of the long-term equity investment shall be reduced accordingly. For other changes in the owner’s equityother than the net profit or loss, other comprehensive income and profit distribution of the investee, the bookvalue of the long-term equity investment shall be adjusted and included in the capital reserve. When the share ofthe net profit or loss of the investee is recognized, the net profit of the investee shall be adjusted and recognizedaccording to the fair value of the identifiable assets of the investee when the investment is made. If theaccounting policies and accounting periods adopted by the investee are inconsistent with the Company, thefinancial statements of the investee shall be adjusted according to the accounting policies and accounting periodsof the Company and the investment income and other comprehensive income shall be recognized accordingly.For the transactions between the Company and associates and joint ventures, if the assets made or sold don’tconstitute business, the unrealized gains and losses of the internal transactions are offset by the proportionattributable to the Company, and the investment gains and losses are recognized accordingly. However, the lossof unrealized internal transactions incurred by the Company and the investee attributable to the impairment lossof the transferred assets shall not be offset. If the assets made to associates or joint ventures constitute business,and the investor makes long-term equity investment but does not obtain the control, the fair value of theinvestment shall be taken as the initial investment cost of the new long-term equity investment, and thedifference between initial investment and the book value of the investment is fully recognized in profit or loss forthe current period. If the assets sold by the Company to joint ventures or associates constitute business, the
difference between the consideration and the book value of the business shall be fully credited to the currentprofits and losses. If the assets purchased by Company from joint ventures or associates constitute business,conduct accounting treatment in accordance with the provisions of Accounting Standard for Business EnterprisesNo. 20 - Business combination, and the profits or losses related to the transaction shall be recognized in full.When the net loss incurred by the investee is recognized, the book value of the long-term equity investment andother long-term equity that substantially constitute the net investment in the investee shall be written down tozero. In addition, if the Company has an obligation to bear additional losses to the investee, the estimatedliabilities are recognized in accordance with the obligations assumed and included in the current investmentlosses. If the investee has realized net profit in later period, the Company will resume the recognition of theincome share after the income share has made up the unrecognized loss share.(3) Acquisition of minority interestsIn the preparation of the consolidated financial statements, capital reserve shall be adjusted according to thedifference between the long-term equity investment increased due to the purchase of minority interests and theshare of the net assets held by the subsidiary from the date of purchase (or the date of combination) calculatedaccording to the proportion of the new shareholding ratio, and retained earnings shall be adjusted if the capitalreserve is insufficient to offset.(4) Disposal of long-term equity investmentIn the consolidated financial statements, the parent company partially disposes of the long-term equityinvestment in the subsidiary without the loss of control, and the difference between the disposal price and thenet assets of the subsidiary corresponding to the disposal of the long-term equity investment is included in theshareholders’ equity. If the disposal of long-term equity investment in subsidiaries results in the loss of controlover the subsidiaries, handle in accordance with the relevant accounting policies described in 6. “Preparationmethod of consolidated financial statements” in Notes V.In other cases, the difference between the book value and the actual acquisition price shall be recorded into thecurrent profits and losses for the disposal of the long-term equity investment.For long-term equity investment accounted by the equity method and residual equity after disposal stillaccounted by the equity method, other comprehensive income originally included in the shareholders’ equityshall be treated in the same basis of the investee directly disposing related assets or liabilities by correspondingproportion. The owner’s equity recognized by the change of the owner’s equity of the investee other than thenet profit or loss, other comprehensive income and profit distribution is carried forward proportionally into thecurrent profits and losses.For long-term equity investment accounted by the cost method and residual equity after disposal still accountedby the cost method, other comprehensive income accounted by equity method or recognized by financialinstrument and accounted and recognized by measurement criteria before the acquisition of the control over theinvestee is treated in the same basis of the investee directly disposing related assets or liabilities, and carriedforward proportionately into the current profits and losses. Other changes of owner’s equity in net assets of theinvestee accounted and recognized by the equity method other than the net profit or loss, other comprehensiveincome and profit distribution are carried forward proportionally into the current profits and losses.3. Impairment provisions for long-term equity investmentsFor the relevant testing method and provision making method, see 22. Impairment of Long-term Assets in NotesV herein.
15. Investment Real EstatesMeasurement mode of investment real estatesNot applicable
16. Fixed Assets(1) Recognition ConditionsFixed assets of the Company refers to the tangible assets that simultaneously possess the features as follows:
they are held for the sake of producing commodities, rendering labor service, renting or business management;and their useful life is in excess of one accounting year and unit price is higher. No fixed assets may be recognized
unless it simultaneously meets the conditions as follows: ① The economic benefits pertinent to the fixed assetare likely to flow into the Company; and ② The cost of the fixed asset can be measured reliably.
(2) Depreciation Method
| Category of fixed assets | Method | Useful life | Expected net salvage value | Annual deprecation |
| Housing and building | Average method of useful life | 3—30 years | 5% | 31.67%-3.17% |
| Machinery equipments | Average method of useful life | 2—10 years | 5% | 47.50%-9.50% |
| Transportation vehicle | Average method of useful life | 5—10 years | 5% | 19.00%-9.50% |
| Electronic equipment | Average method of useful life | 2—8 years | 5% | 47.50%-11.88% |
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance LeaseNot applicable17. Construction in Progress1. Pricing of construction in progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carriedforward into fixed assets at the actual cost when reach intended usable condition. The borrowing expenseseligible for capitalization incurred before the delivery of the construction are included in the construction cost;after the delivery, the relevant interest expense shall be recorded into the current profits and losses.2. Standard and time of construction in progress carrying forward into fixed assetsThe Company’s construction in progress is carried forward into fixed assets when the construction completes andreaches intended usable condition. The criteria for determining the intended usable condition shall meet one ofthe following:
(1) The physical construction (including installation) of fixed assets has been completed or substantiallycompleted;(2) Has been produced or run for trial, and the results indicate that the assets can run normally or can producestable products stably, or the results of the trial operation show that it can operate normally;(3) The amount of the expenditure on the fixed assets constructed is little or almost no longer occurring;(4) The fixed assets purchased have reached the design or contract requirements, or basically in line with the
design or contract requirements.3. Provision for impairment of construction in progressPlease refer to Note 22: Long-term Asset Impairment under Note V for the impairment test method andprovision for impairment of construction in progress.
18. Borrowing CostsThe borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,
including interest on borrowings, amortization of discounts or premiums, ancillary expenses and exchangedifferences arising from foreign currency borrowings. The borrowing costs incurred by the Company directlyattributable to the acquisition, construction or production of assets eligible for capitalization are capitalized andincluded in the cost of the relevant assets. Other borrowing costs are recognized as expenses according to theamount at the time of occurrence, and are included in the current profits and losses.1. Principle of capitalization of borrowing costsBorrowing costs can be capitalized when all the following conditions are met: Asset expenditure has alreadyoccurred; borrowing costs have already occurred; construction or production activities necessary to bring theassets to the intended useable or sellable status have already begun.2. Capitalization period of borrowing costsCapitalization period refers to the period from the capitalization of borrowing costs starting to the end ofcapitalization, excluding the period when capitalization is suspended.If assets that meet the conditions of capitalization are interrupted abnormally in the course of construction orproduction, and the interruption time exceeds 3 consecutive months, the capitalization of borrowing costs shallbe suspended. The borrowing costs incurred during the interruption are recognized as expenses and included incurrent profits and losses until the acquisition or construction of the assets is resumed. The capitalization of theborrowing costs continues if the interruption is a procedure necessary for the purchase or production of assetseligible for capitalization to meet the intended useable or sellable status.The borrowing costs shall cease to be capitalized when the purchased or produced assets that meet theconditions of capitalization meet the intended useable or sellable status. The borrowing costs incurred after theassets eligible for capitalization meet the intended useable or sellable status can be included in the currentprofits and losses when incurred.3. Calculation method of capitalized amount of borrowing costsDuring the period of capitalization, the capitalization amount of interests (including amortization of discounts orpremiums) for each accounting period is determined in accordance with the following provisions:
(1) For special borrowings for the acquisition or construction of assets eligible for capitalization, the interestexpenses actually incurred in the current period of borrowings shall be recognized after deducting the interestincome obtained by depositing the unused borrowing funds into the bank or investment income obtained fromtemporary investment.(2) Where the general borrowing is occupied for the acquisition or construction of assets eligible forcapitalization, the Company multiplies the weighted average of the asset expenditure of the accumulated assetexpenditure exceeding the special borrowing by the capitalization rate of the general borrowing to calculate theamount of interest that should be capitalized for general borrowings. The capitalization rate is determined basedon the weighted average interest rate of general borrowings.
19. Biological AssetsNot applicable20. Oil-gas AssetsNot applicable21. Intangible Assets(1) Pricing Method, Useful Life and Impairment Test1. Recognition criteria of intangible assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company withoutphysical form. The intangible assets are recognized when all the following conditions are met: (1) Conform to thedefinition of intangible assets; (2) Expected future economic benefits related to the assets are likely to flow intothe Company; (3) The costs of the assets can be measured reliably.2. Initial measurement of intangible assetsIntangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets, including the purchase price, relevant taxes and otherexpenses directly attributable to the intended use of the asset. The payment of purchase price of intangibleassets exceeding normal credit terms is deferred, and the cost of intangible assets having financing nature inessence shall be recognized based on the present value of the purchase price. The difference between the actualpayment price and the present value of the purchase price shall be recorded into the current profits and losses inthe credit period except that can be capitalized in accordance with the Accounting Standard for BusinessEnterprises No. 17 - Borrowing Cost.(2) The cost of investing in intangible assets shall be recognized according to the value agreed upon in theinvestment contract or agreement, except that the value of the contract or agreement is unfair.3. Subsequent measurement of intangible assetsThe Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assetsis limited, and the years of the useful life or output that constitutes the useful life or similar measurement unitsshall be estimated. The intangible assets are regarded as intangible assets with uncertain useful life if the termthat brings economic benefits to the Company is unforeseeableIntangible assets with limited useful life shall be amortized by straight line method from the time when theintangible assets are available until can’t be recognized as intangible assets; intangible assets with uncertainuseful life shall not be amortized. The Company reviews the estimated useful life and amortization method ofintangible assets with limited useful life at the end of each year, and reviews the estimated useful life ofintangible assets with uncertain useful life in each accounting period. For intangible assets that evidence showsthe useful life is limited, the useful life shall be estimated and the intangible assets shall be amortized in theestimated useful life.4. Recognition criteria and withdrawal method of intangible asset impairment provisionThe impairment test method and withdrawal method for impairment provision of intangible assets are detailedin Note 22: Long-term asset impairment under Note V.
(2) Accounting Policy for Internal Research and Development ExpendituresThe expenditures in internal research and development projects of the Company are classified into expenditures
in research stage and expenditures in development stage. The expenditures in research stage are included in thecurrent profits and losses when incurred. The expenditures in development stage are recognized as intangibleassets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;(2) Having the intention to complete and use or sell the intangible assets;(3) The way in which an intangible asset generates economic benefits, including the proof that the productsproduced with the intangible asset have market or the proof of its usefulness if the intangible asset has marketand will be used internally;(4) Having sufficient technical, financial resources and other resources to support the development of theintangible assets and the ability to use or sell the intangible assets;(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.The cost of self-developed intangible assets includes the total expenditure incurred since meeting intangibleassets recognition criterion until reaching intended use. Expenditures that have been expensed in previousperiods are no longer adjusted.Non-monetary assets exchange, debt restructuring, government subsidies and the cost of intangible assetsacquired by business combination are recognized according to relevant provisions of Accounting Standard forBusiness Enterprises No. 7 - Non-monetary assets exchange, Accounting Standard for Business Enterprises No. 12- Debt restructuring, Accounting Standards for Business Enterprises No. 16 - Government subsidies, AccountingStandard for Business Enterprises No. 20 - Business combination respectively.
22. Impairment of Long-term AssetsFor non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limited
useful life, investment real estate measured in cost mode and long-term equity investments in subsidiaries, jointventures and associates, the Company determines whether there is indication of impairment at balance sheetdate. If there is indication of impairment, then estimate the amount of its recoverable value and test theimpairment. Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reacheduseable state shall be tested for impairment every year, whether or not there is any indication of impairment.If the impairment test results indicate that the recoverable amount of the asset is lower than its book value, theimpairment provision shall be made at the difference and included in the impairment loss. The recoverableamount is the higher of the fair value of the asset minus the disposal cost and the present value of the expectedfuture cash flow of the asset. The fair value of the asset is recognized according to the price of the salesagreement in the fair trade; if there is no sales agreement but there is an active market, the fair value isrecognized according to the buyer’s bid of the asset; if there is no sales agreement or active market, the fair valueof asset shall be estimated based on the best information that can be obtained. Disposal costs include legal costsrelated to disposal of assets, related taxes, handling charges, and direct costs incurred to enable the assetreaching sellable status. The present value of the expected future cash flows of the assets is recognized by theamount discounted at appropriate discount rate according to the expected future cash flows arising from thecontinuing use of the asset and the final disposal. The provision for impairment of assets is calculated andrecognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of individualassets, the recoverable amount of the asset group shall be recognized by the asset group to which the asset
belongs. The asset group is the smallest portfolio of assets that can generate cash inflows independently.The book value of the goodwill presented separately in the financial statements shall be apportioned to the assetgroup or portfolio of asset groups that is expected to benefit from the synergies of the business combinationwhen the impairment test is conducted. The corresponding impairment loss is recognized if the test resultsindicate that the recoverable amount of the asset group or portfolio of asset groups containing the apportionedgoodwill is lower than its book value. The amount of the impairment loss shall offset the book value of thegoodwill apportioned to the asset group or portfolio of asset groups, and offset the book value of other assets inproportion according to the proportion of the book value of other assets except the goodwill in the asset groupor portfolio of asset groups.Once the impairment loss of the above asset is recognized, the portion that the value is restored will not bewritten back in subsequent periods.
23. Amortization Method of Long-term Deferred ExpensesLong-term deferred expenses refer to general expenses with the apportioned period over one year (one year
excluded) that have occurred but attributable to the current and future periods. Long-term deferred expenseshall be amortized averagely within benefit period. In case of no benefit in the future accounting period, theamortized value of such project that fails to be amortized shall be transferred into the profits and losses of thecurrent period.
24. Payroll(1) Accounting Treatment of Short-term CompensationShort-term compensation mainly including salary, bonus, allowances and subsidies, employee services and
benefits, medical insurance premiums, birth insurance premium, industrial injury insurance premium, housingfund, labor union expenditure and personnel education fund, non-monetary benefits etc. The short-termcompensation actually happened during the accounting period when the active staff offering the service for theGroup should be recognized as liabilities and is included in the current gains and losses or relevant assets cost. Ofwhich the non-monetary benefits should be measured according to the fair value.
(2) Accounting Treatment of the Welfare after DemissionWelfare after demission mainly includes defined contribution plans and defined benefit plans. Of which defined
contribution plans mainly include basic endowment insurance, unemployment insurance, annuity funds, etc.,and the corresponding payable and deposit amount should be included into the relevant assets cost or thecurrent gains and losses when happen.
(3) Accounting Treatment of the Demission WelfareIf an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant labor
contract or brings forward any compensation proposal for the purpose of encouraging the employee to accept alayoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier datebetween the time when the Group could not one-sided withdraw the demission welfare which offered by theplan or layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost
related to the reorganization of the payment of the demission welfare and at the same time includes which intothe current gains and losses. But if the demission welfare is estimated that could not totally pay after the end ofthe annual report within 12 months, should be disposed according to other long-term payroll payment.
(4) Accounting Treatment of the Welfare of Other Long-term StaffsThe inside employee retirement plan is treated by adopting the same principle with the above dismiss ion
welfare. The group would recorded the salary and the social security insurance fees paid and so on from theemployee’s service terminative date to normal retirement date into current profits and losses (dismiss ionwelfare) under the condition that they meet the recognition conditions of estimated liabilities.The other long-term welfare that the Group offers to the staffs, if met with the setting drawing plan, should beaccounting disposed according to the setting drawing plan, while the rest should be disposed according to thesetting revenue plan.
25. Estimated Liabilities1. Recognition of estimated debts
The obligation such as external guaranty, pending litigation or arbitration, product quality assurance, layoff plan,loss contract, restructuring and disposal of fixed assets, pertinent to a contingencies shall be recognized as an
estimated debts when the following conditions are satisfied simultaneously: ① That obligation is a currentobligation of the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a resultof performance of the obligation; and ③ The amount of the obligation can be measured in a reliable way
2. Measurement of estimated debtsThe estimated debts shall be initially measured in accordance with the best estimate of the necessary expensesfor the performance of the current obligation. If there is a sequent range for the necessary expenses and if all theoutcomes within this range are equally likely to occur, the best estimate shall be determined in accordance withthe middle estimate within the range. In other cases, the best estimate shall be conducted in accordance with
the following situations, respectively: ① If the Contingencies concern a single item, it shall be determined in thelight of the most likely outcome. ② If the Contingencies concern two or more items, the best estimate shouldbe calculated and determined in accordance with all possible outcomes and the relevant probabilities. ③ When
all or some of the expenses necessary for the liquidation of an estimated debts of an enterprise is expected to becompensated by a third party, the compensation should be separately recognized as an asset only when it isvirtually certain that the reimbursement will be obtained. The Company shall check the book value of theestimated debts on the balance sheet date. The amount of compensation is not exceeding the book value of therecognized estimated liabilities.
26. Share-based PaymentNot applicable27. Other Financial Instruments such as Preferred Shares and Perpetual Capital SecuritiesNot applicable
28. RevenueIs the Company subject to any disclosure requirements for special industries?
No1. Sale of goods
No revenue from selling goods may be recognized unless the following conditions are met simultaneously: ①
The significant risks and rewards of ownership of the goods have been transferred to the buyer by the Company;
② The Company retains neither continuous management right that usually keeps relation with the ownershipnor effective control over the sold goods; ③ The revenue amount could be reliably measured; and ④ The
relevant economic benefits may flow into the Company, and the relevant cost which had occurred or will occurcould be reliably measured.Specific principles for recognition of the “domestic sale and export” incomes of the Company:
(1) Method for recognition of the domestic sale income: According to the buyer’s requirements, the Companydelivers to the buyer the products that have been considered qualified upon examination. The amount of theincome has been determined and the sales invoice has been issued. The payment for the delivered products hasbeen received in full or is expectedly recoverable.(2) Method for recognition of the export income: The Company produces the products according to the contractsigned with the buyer. After the products have been examined as qualified, the Company completes the customsclearing procedure for export. The shipping company loads the products for shipping. The amount of the incomehas been determined and the export sales invoice has been issued. The payment for the delivered products hasbeen received in full or is expectedly recoverable.2. Provision of labor servicesIn the case that the results of the labor service transaction can be reliably estimated, the income from theprovision of labor services shall be recognized at the balance sheet date by the percentage of completionmethod according to the progress of the labor transaction.The result of the provision of labor services can be reliably estimated refers that all the following conditions are
met: ① The amount of income can be measured reliably; ②The relevant economic benefits are likely to inflow tothe enterprise; ③ The progress of the transaction can be reliably determined; ④ The cost incurred and to be
incurred in the transaction can be measured reliably.If the result of the provision of labor services can’t be reliably estimated, the income from the provision of laborservices shall be recognized according to the cost of labor services that have incurred and are expected to becompensated, and the cost of labor services that have incurred is recognized as the current expenses. If the costof labor services already incurred isn’t expected to be compensated, the income will not be recognized.If the contract or agreement between the Company and other enterprises includes the sale of goods and theprovision of labor services, and the sale of goods and the provision of labor services can be distinguished andmeasured separately, the sale of goods and the provision of labor services shall be dealt with separately; if thesale of goods and the provision of labor services can’t be distinguished or can’t be measured separately, thecontract will be treated as sale of goods.3. Income from transferring the right to use assetsThe operating income is calculated and recognized according to the time and method stipulated by relevantcontracts and agreements.4. Interest income
Recognized when all the following conditions are met: ① The amount of income can be measured reliably; ②
Economic benefits related to the transaction can inflow.
29. Government Subsidies(1) Judgment Basis and Accounting Treatment of Government Subsidies Related to AssetsThe government subsidies related to assets refer to the government subsidies obtained for acquisition,
construction or otherwise formation of long-term assets. The government subsidies related to income refer tothe government subsidies except the government subsidies related to assets.The specific standard of classifying the government subsidies as subsidies related to assets: government subsidiesfor acquisition, construction or otherwise formation of long-term assets.If the government documents do not specify the subsidy object, the bases that the Company classified thegovernment subsidies as assets-related subsidies or income-related subsidies were as follows: (1) If the specificitems for which the subsidy is targeted are stipulated in government documents, divide according to the relativeproportion of the amount of expenditure that forms assets and the amount of expenditure included in the cost inthe budget for that particular project, and the proportion shall be reviewed at each balance sheet date andchanged as necessary; (2) if the government documents only have a general statement of the purpose and do notspecify a specific project.If a government subsidy is a monetary asset, it shall be measured according to the amount received or receivable.If a government subsidy is a non-monetary asset, it shall be measured at its fair value, and shall be measured at anominal amount (RMB1) when the fair value cannot be obtained reliably.For confirmed government subsidies that need to be returned, if there is relevant deferred income, the bookbalance of related deferred income shall be written off and the excess shall be charged to profit or loss for theCurrent Period; for other circumstances, it shall be directly charged to profit or loss for the Current.The Company adopts the gross method to confirm government subsidies. The government subsidies related toassets are recognized as deferred income, and are charged to the current profit or loss in a reasonable andsystematic manner within the useful lives of the relevant assets (subsidies related to the daily activities of theCompany are included in other income; while subsidies unrelated to the daily activities of the Company areincluded in non-operating income). Government subsidies measured at nominal amounts are directly charged toprofit or loss for the Current Period. Where the relevant assets are sold, transferred, scrapped or damaged beforethe end of their useful lives, the balance of related undistributed deferred income shall be transferred to theprofit or loss of the asset disposal in the Current Period.
(2) Judgment Basis and Accounting Treatment of Government Subsidies Pertinent to IncomesThe specific criteria that the Company classifies government subsidies as income related is: other government
subsidies other than asset-related government subsidies.Government subsidies related to income are treated as follows:
(1) government subsidies used to compensate the relevant costs, expenses or losses of the Company in thesubsequent period shall be recognized as deferred income, and shall be included in the current profit and lossduring the period of confirming the relevant costs, expenses or losses (subsidies related to the daily activities ofthe Company are included in other income; while subsidies unrelated to the daily activities of the Company areincluded in non-operating income);(2) government subsidies used to compensate the relevant costs, expenses or losses incurred by the Companyshall be directly included in the current profits and losses (subsidies related to the daily activities of the Companyare included in other income; while subsidies unrelated to the daily activities of the Company are included in
non-operating income).For government subsidies that include both assets-related and income-related parts, they should bedistinguished separately for accounting treatment; for government subsidies that are difficult to be distinguished,they should be classified as income-related.
30. Deferred Income Tax Assets/Deferred Income Tax LiabilitiesThe income tax of the Company includes the current income tax and deferred income tax. Both are recorded into
the current gains and losses as income tax expenses or revenue, except in the following circumstances:
(1) The income tax generated from the business combination shall be adjusted into goodwill;(2) The income tax related to the transaction or event directly included in shareholders’ equity shall be recordedinto shareholders’ equity.At the balance sheet date, the Company recognizes the deferred income tax assets or deferred income taxliabilities in accordance with the balance sheet liability method for the temporary difference between the bookvalue of assets or liabilities and its tax base.The Company recognizes all taxable temporary differences as deferred income tax liabilities unless taxabletemporary differences arise in the following transactions:
(1) The initial recognition of goodwill or the initial recognition of the assets or liabilities arising from a transactionwith the following characteristics: the transaction is not a business combination and neither the accountingprofit nor the taxable income is incurred at the time of the transaction;(2) The time of write-back of taxable temporary differences related to the investments in subsidiaries, associatesand joint ventures can be controlled and the temporary differences are likely to not be written back in theforeseeable future.The Company recognizes the deferred income tax assets arising from deductible temporary differences, subjectto the amount of taxable income obtained to offset the deductible temporary differences, unless the deductibletemporary differences arise in the following transactions:
(1) The transaction is not a business combination, and the transaction does not affect the accounting profit orthe amount of taxable income;(2) The deductible temporary differences related to the investments in subsidiaries, associates and joint venturesare not met simultaneously: Temporary differences are likely to be written back in the foreseeable future and arelikely to be used to offset the taxable income of deductible temporary differences in the future.At the balance sheet date, the Company measures the deferred income tax assets and deferred income taxliabilities at the applicable tax rate of the period expected to recover the asset or pay off the liabilities accordingto tax law, and reflects the income tax effect of expected assets recovery or liabilities payoff method at thebalance sheet date.At the balance sheet date, the Company reviews the book value of the deferred income tax assets. If it is likelythat sufficient taxable income will not be available to offset the benefit of the deferred income tax assets in thefuture period, the book value of the deferred income tax assets will be written down. If it is probable thatsufficient taxable income will be available, the amount of write-down will be written back.
31. Lease(1) Accounting Treatment of Operating Lease(1) The lease fee paid by the Company for rented assets shall be apportioned using the straight-line method over
the entire lease term without deducting the rent-free period and shall be included in the current period expenses.The initial direct costs related to the lease transaction paid by the Company are included in current expenses.When the lessor of the asset assumes the lease-related expenses that should be borne by the Company, theCompany should deduct the part of the expenses from the total rental amount, and the deducted rentalexpenses are apportioned during the lease term and included in the current expenses.(2) The rental fees received by the company for leasing assets are apportioned on a straight-line basis over theentire lease term without deducting the rent-free period and are recognized as lease income. The initial directexpenses related to lease transactions paid by the company are included in the current expenses; if the amountis larger, they are capitalized and are recorded in the current period in stages on the same basis as therecognition of lease income during the entire lease period.When the company assumes the lease-related expenses that should be borne by the lessee, the companydeducts the expenses from the total amount of rental income and allocates the deducted rental expenses duringthe lease period.
(2) Accounting Treatments of Financial Lease(1) Financing leased assets: on the lease starting date, the Company recorded the lower one of the fair value of
the leased asset and the present value of the minimum lease payments on the lease beginning date as theentering value in an account, recognized the amount of the minimum lease payments as the entering value in anaccount of long-term account payable, and treated the balance between the recorded amount of the leasedasset and the long-term account payable as unrecognized financing charges. The company adopted the effectiveinterest method to amortize the unrecognized financing expenses during the asset lease period and included itinto financial expenses.(2) Assets leased by finance: On the lease beginning date, the Company recognized the financial lease receivables,and the difference between the sum of unguaranteed residual values and its present value as unrealizedfinancing income. It is recognized as lease income during any lease period in the future. The initial direct costsincurred by the Company in relation to the lease transaction, were included in the initial measurement of thefinancial lease receivable and the amount of revenue recognized during the lease period shall be reduced.
32. Other Significant Accounting Policies and EstimatesNot applicable33. Changes in Main Accounting Policies and Estimates(1) Change of Accounting Policies□ Applicable √ Not applicable(2) Significant Changes in Accounting Estimates□ Applicable √ Not applicable
34. OtherNone
VI Taxes
1. Main Taxes and Tax Rates
| Category of taxes | Tax basis | Tax rate |
| VAT | Sales volume from goods selling or taxable service | 3%, 6%, 10%, 11%, 16%, 17% |
| Urban maintenance and construction tax | Turnover tax payable | 7%, 5% |
| Enterprise income tax | Taxable income | 15%, 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
| Taxpayer | Income tax rate |
| Foshan Electrical and Lighting Co., Ltd. | 15% |
| Foshan Lighting Chanchang Optoelectronics Co., Ltd. | 25% |
| Foshan Chansheng Electronic Ballast Co., Ltd. | 25% |
| Foshan Taimei Times Lamps and Lanterns Co., Ltd. | 25% |
| Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. | 25% |
| Foshan Electrical & Lighting (Xinxiang) Co., Ltd. | 25% |
| FSL New Light Source Technology Co., Ltd. | 25% |
| Guangdong Fozhao Leasing Co., Ltd. | 25% |
| Foshan Lighting Lamps and Lanterns Co., Ltd. | 25% |
| FSL Zhida Electric Technology Co., Ltd. | 25% |
| FSL Lighting GMBH | 15% |
2. Tax PreferenceThe Company passed the re-examination for High-tech Enterprises in 2017, as well as won the “Certificate of
High-tech Enterprise” after approval by Department of Science and Technology of Guangdong Province,Department of Finance of Guangdong Province, Guangdong Provincial Bureau of State Taxation and GuangdongProvincial Bureau of Local Taxation. In accordance with relevant provisions in Corporate Income Tax Law of thePeople's Republic of China and the Administration Measures for Identification of High-tech Enterprisespromulgated in 2007, the Company paid the corporate income tax based on a tax rate of 15% within three yearssince 1 January 2017.
3. OtherPaid according to the relevant regulation of the tax law.
VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Funds
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 53,998.39 | 52,031.79 |
| Bank deposits | 909,808,121.57 | 565,323,109.99 |
| Other monetary funds | 5,106,479.72 | 4,809,067.18 |
| Total | 914,968,599.68 | 570,184,208.96 |
| Of which: total amount deposited oversees | 334,199.31 | 183,066.93 |
Other notes:
The ending balance of other monetary funds in the Reporting Period was the refundable deposits saved insecurities company, cash deposits, and e-commerce balance, among which the using right of cash deposits offuture foreign exchange settlement of RMB 2,447,280.00 and margin of RMB 857,419.80 were restricted.
2. Financial Assets at Fair Value through Profit or LossNaught3. Derivative Financial Assets□ Applicable √ Not applicable4. Notes Receivable(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 67,325,195.40 | 68,368,192.41 |
| Total | 67,325,195.40 | 68,368,192.41 |
(2) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
| Item | Amount |
| Bank acceptance bill | 3,500,000.00 |
| Total | 3,500,000.00 |
(3) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on theBalance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not terminated recognition at the period-end |
| Bank acceptance bill | 113,776,579.30 | |
| Total | 113,776,579.30 |
(4) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contractor Agreement
Naught5. Accounts Receivable(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable with significant single amount for which bad debt provision separately accrued | 9,975,968.91 | 0.95% | 9,975,968.91 | 100.00% | 10,061,641.64 | 1.25% | 10,061,641.64 | 100.00% | ||
| Accounts receivable withdrawn bad debt provision according to credit risks characteristics | 1,042,311,223.06 | 99.05% | 47,620,836.99 | 4.57% | 994,690,386.07 | 795,800,674.49 | 98.75% | 39,509,241.93 | 4.96% | 756,291,432.56 |
| Total | 1,052,287,191.97 | 100.00% | 57,596,805.90 | 5.47% | 994,690,386.07 | 805,862,316.13 | 100.00% | 49,570,883.57 | 6.15% | 756,291,432.56 |
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end√ Applicable □ Not applicable
Unit: RMB
| Accounts receivable（by unit） | Ending balance | |||
| Accounts receivable | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
| Suzhou Mont Lighting Co., Ltd. | 9,975,968.91 | 9,975,968.91 | 100.00% | The debtor was at a continuous loss due to |
| the scale and market and other reasons, so now it is not suitable to produce continuously. | ||||
| Total | 9,975,968.91 | 9,975,968.91 | -- | -- |
In the groups, accounts receivable adopting aging analysis method to accrue bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
| Aging | Ending balance | ||
| Accounts receivable | Bad debt provision | Withdrawal proportion | |
| Subitem within 1 year | |||
| Within 1 year | 988,309,695.40 | 29,649,290.86 | 3.00% |
| Subtotal within 1 year | 988,309,695.40 | 29,649,290.86 | 3.00% |
| 1 to 2 years | 32,213,727.24 | 3,221,372.72 | 10.00% |
| 2 to 3 years | 5,878,621.63 | 1,763,586.49 | 30.00% |
| 3 to 4 years | 1,334,879.69 | 667,439.85 | 50.00% |
| 4 to 5 years | 11,275,760.17 | 9,020,608.14 | 80.00% |
| Over 5 years | 3,298,538.93 | 3,298,538.93 | 100.00% |
| Total | 1,042,311,223.06 | 47,620,836.99 | 4.57% |
Notes of confirming the basis of the groups:
In the groups, accounts receivable adopting balance percentage method to withdraw bad debt provision□ Applicable √ Not applicableIn the groups, accounts receivable adopting other methods to withdraw bad debt provision:
Naught
(2) Accounts Receivable Withdraw, Reversed or Collected during the Reporting PeriodThe withdrawal amount of the bad debt provision during the Reporting Period was of RMB 8,026,000.50; the
amount of the reversed or collected part during the Reporting Period was of RMB 0.00.(3) The Actual Write-off Accounts Receivable
Unit: RMB
| Item | Amount |
| Other retails accounts | 78.17 |
| Total | 78.17 |
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears Party
Unit: RMB
| Name of units | Relationship | Amount | Aging | Proportion of ending balance of the total accounts | Ending balance of bad debt provision |
| receivable | |||||
| No. 1 | Non-connected relationship | 191,461,593.37 | Within 1 year | 18.19% | 5,743,847.80 |
| No. 2 | Non-connected relationship | 20,747,221.00 | Within 2 years | 1.97% | 684,803.17 |
| No. 3 | Non-connected relationship | 20,371,305.32 | Within 1 year | 1.94% | 611,139.16 |
| No. 4 | Non-connected relationship | 19,409,126.02 | Within 1 year | 1.84% | 582,273.78 |
| No. 5 | Non-connected relationship | 15,148,133.08 | Within 1 year | 1.44% | 454,443.99 |
| Total | 267,137,378.79 | 25.39% | 8,076,507.90 |
(5) Account Receivable which Terminate the Recognition owning to the Transfer of the Financial AssetsNaught(6) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Accounts ReceivableNaught6. Prepayment(1) Listed by Aging Analysis
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 22,468,064.03 | 73.87% | 25,971,834.21 | 78.48% |
| 1 to 2 years | 3,604,426.17 | 11.85% | 2,782,505.53 | 8.41% |
| 2 to 3 years | 111,031.47 | 0.37% | 3,250,778.25 | 9.82% |
| Over 3 years | 4,231,716.81 | 13.91% | 1,090,195.36 | 3.29% |
| Total | 30,415,238.48 | -- | 33,095,313.35 | -- |
(2) Top 5 of the Ending Balance of the Prepayment Collected according to the Prepayment Target
Unit: RMB
| Name of units | Relationship | Ending balance | Aging | Proportion of the total number |
| No. 1 | Non-connected supplier | 2,900,000.00 | Over 3 years | 9.53% |
| No. 2 | Non-connected supplier | 2,152,731.21 | Within 1 year | 7.08% |
| No. 3 | Non-connected supplier | 1,556,175.80 | Within 1 year | 5.12% |
| No. 4 | Non-connected supplier | 1,463,911.36 | Within 1 year | 4.81% |
| No. 5 | Non-connected supplier | 1,318,800.00 | Within 2 year | 4.34% |
| Total | 9,391,618.37 | 30.88% |
7. Interest Receivable(1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deposits on a regular basis | 222,714.96 | 1,726,993.91 |
| Bank financial products | 4,745,863.01 | |
| Structural deposits | 1,366,375.95 | 5,955,594.94 |
| Total | 1,589,090.91 | 12,428,451.86 |
(2) Significant Overdue InterestNaught8. Dividend ReceivableNaught9. Other Accounts Receivable(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Other accounts receivable withdrawn bad debt provision according to credit risks characteristics | 40,239,298.09 | 99.27% | 3,138,332.99 | 7.80% | 37,100,965.10 | 24,013,060.03 | 98.79% | 2,797,844.88 | 11.65% | 21,215,215.15 |
| Other accounts receivable with insignificant single amount for which bad debt provision | 295,120.00 | 0.73% | 295,120.00 | 100.00% | 295,120.00 | 1.21% | 295,120.00 | 100.00% | ||
| separately accrued | ||||||||||
| Total | 40,534,418.09 | 100.00% | 3,433,452.99 | 8.47% | 37,100,965.10 | 24,308,180.03 | 100.00% | 3,092,964.88 | 12.72% | 21,215,215.15 |
Other receivable with single significant amount and withdrawal bad debt provision separately at the end of the Period□ Applicable √ Not applicableIn the groups, other accounts receivable adopting aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
| Aging | Ending balance | ||
| Other accounts receivable | Bad debt provision | Withdrawal proportion | |
| Subitem within 1 year | |||
| Within 1 year | 33,350,359.64 | 1,000,510.79 | 3.00% |
| Subtotal within 1 year | 33,350,359.64 | 1,000,510.79 | 3.00% |
| 1 to 2 years | 3,432,152.41 | 343,215.24 | 10.00% |
| 2 to 3 years | 167,542.81 | 50,262.84 | 30.00% |
| 3 to 4 years | 3,088,998.23 | 1,544,499.12 | 50.00% |
| 4 to 5 years | 2,000.00 | 1,600.00 | 80.00% |
| Over 5 years | 198,245.00 | 198,245.00 | 100.00% |
| Total | 40,239,298.09 | 3,138,332.99 | 7.80% |
Notes of confirming the basis of the groups:
In the groups, other accounts receivable adopting balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicableIn the groups, other accounts receivable adopting other methods to withdraw bad debt provision:
□ Applicable √ Not applicable
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting PeriodThe amount of bad debt provision was RMB 340,488.11, the amount of reversed or recovered bad debt provision
in the Reporting Period RMB 0.00.(3) Particulars of the Actual Verification of Other Accounts Receivable during the Reporting PeriodNaught(4) Other Account Receivable Classified by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| VAT export tax refunds | 18,007,536.67 | 5,712,812.04 |
| Performance bond | 4,671,837.37 | 4,377,639.20 |
| Staff borrow and deposit | 8,327,131.18 | 4,343,208.32 |
| Rent, water & electricity fees | 420,600.59 | 1,293,281.97 |
| Advance money for street light construction | 3,777,672.16 | 3,777,672.16 |
| Internal business group | 295,120.00 | 295,120.00 |
| Others | 5,034,520.12 | 4,508,446.34 |
| Total | 40,534,418.09 | 24,308,180.03 |
(5) Top 5 Other Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Name of units | Nature | Ending balance | Aging | Proportion of ending balance of the total other accounts receivable | Ending balance of bad debt provision |
| No. 1 | Export rebates | 18,007,536.67 | Within 1 year | 44.43% | 540,226.10 |
| No. 2 | Advance money for street light construction | 3,777,672.16 | Within 4 years | 9.32% | 1,299,397.36 |
| No. 3 | Others | 2,122,656.00 | Within 1 year | 5.24% | 63,679.68 |
| No. 4 | Margin | 2,098,341.00 | 1-2 years | 5.18% | 209,834.10 |
| No. 5 | Reserved funds | 1,272,056.18 | Within 1 year | 3.14% | 38,161.69 |
| Total | -- | 27,278,262.01 | -- | 67.30% | 2,151,298.93 |
(6) Accounts Receivable Involved with Government SubsidiesNaught(7) Other Account Receivable which Terminate the Recognition owning to the Transfer of the Financial
AssetsNaught(8) The Amount of the Assets and Liabilities Formed by the Transfer and the Continues Involvement of
Other Accounts ReceivableNaught10. Inventory(1) Category of Inventory
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves | Carrying value | Carrying amount | Falling price reserves | Carrying value | |
| Raw materials | 131,750,416.99 | 2,109,125.27 | 129,641,291.72 | 104,733,828.43 | 2,513,798.75 | 102,220,029.68 |
| Goods in process | 55,616,044.37 | 55,616,044.37 | 39,662,967.77 | 39,662,967.77 | ||
| Inventory goods | 400,549,699.56 | 15,543,022.09 | 385,006,677.47 | 466,813,177.48 | 10,984,333.96 | 455,828,843.52 |
| Self-manufactured semi-finished product | 146,454,910.82 | 1,151,374.87 | 145,303,535.95 | 146,868,534.26 | 972,725.26 | 145,895,809.00 |
| Low-value fugitive items | 2,598,902.15 | 2,598,902.15 | 2,859,239.90 | 2,859,239.90 | ||
| Total | 736,969,973.89 | 18,803,522.23 | 718,166,451.66 | 760,937,747.84 | 14,470,857.97 | 746,466,889.87 |
Whether the Company needs to comply with the disclosure requirements of Shenzhen Stock Exchange Industry InformationDisclosure Guidelines No. 4 - Listed companies engaged in seed industry and planting businessNo
(2) Falling Price Reserves of Inventory
Unit: RMB
| Item | Beginning balance | Increased amount | Decreased amount | Ending balance | ||
| Withdrawal | Other | Reverse or write-off | Other | |||
| Raw materials | 2,513,798.75 | 89,155.54 | 493,829.02 | 2,109,125.27 | ||
| Inventory goods | 10,984,333.96 | 7,319,251.26 | 2,760,563.13 | 15,543,022.09 | ||
| Self-manufactured semi-finished product | 972,725.26 | 231,974.42 | 53,324.81 | 1,151,374.87 | ||
| Total | 14,470,857.97 | 7,640,381.22 | 3,307,716.96 | 18,803,522.23 | ||
Reason for the withdrawal and reverse of falling price reserves of inventory:
| Item | Basis for provision for falling price of inventory | Reasons for the reverse or write-off of falling price reserves of inventory of Reporting Period | Remark |
| Raw materials | According to the lower of inventory cost and net realizable value | Raw materials sales or scrapping | |
| Inventory goods | According to the lower of inventory cost and net realizable value | Products sales or scrapping |
Reason for the withdrawal of falling price reserves of inventory: withdrawn for non-circulation of a small numberof raw materials; some inventory goods were temporarily idle for product classification.
(3) Notes of the Ending Balance of the Inventory which Includes Capitalized Borrowing ExpensesNaught(4) Completed Unsettled Assets Formed from the Construction Contact at the Period-endNaught
11. Held-for-sale AssetsNaught12. Non-current Assets Due within 1 YearNaught13. Other Current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible input tax of VAT | 28,511,668.85 | 25,823,261.05 |
| Advance payment of enterprise income tax | 238,841.51 | |
| Bank financial products (Note) | 470,000,000.00 | |
| Structural deposits (Note) | 320,000,000.00 | 510,000,000.00 |
| Total | 348,511,668.85 | 1,006,062,102.56 |
Other notes:
Note: the bank principal-guaranteed financial products with maturity date more than three months but investment cycle shorter
than a year and structural deposit products which cannot be terminated in advance.
14. Available-for-sale Financial Assets(1) List of Available-for-sale Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Available-for-sale equity instruments | 1,016,463,407.54 | 5,850,000.00 | 1,010,613,407.54 | 1,396,431,536.60 | 5,850,000.00 | 1,390,581,536.60 |
| Measured by fair value | 706,985,098.14 | 706,985,098.14 | 1,086,953,227.20 | 1,086,953,227.20 | ||
| Measured by cost | 309,478,309.40 | 5,850,000.00 | 303,628,309.40 | 309,478,309.40 | 5,850,000.00 | 303,628,309.40 |
| Total | 1,016,463,407.54 | 5,850,000.00 | 1,010,613,407.54 | 1,396,431,536.60 | 5,850,000.00 | 1,390,581,536.60 |
(2) Available-for-sale Financial Assets Measured by Fair Value at the Period-end
Unit: RMB
| Category of the available-for-sale financial assets | Available-for-sale equity instruments | Available-for-sale liabilities instruments | Total | |
| Cost of the equity | 243,884,887.46 | 243,884,887.46 |
| instruments/amortized cost of the debt instruments | ||||
| Fair value | 706,985,098.14 | 706,985,098.14 | ||
| Changed amount of the fair value that be accumulatively recorded in other comprehensive income | 463,100,210.68 | 463,100,210.68 |
(3) Available-for-sale Financial Assets Measured by Cost at the Period-end
Unit: RMB
| Investee | Carrying amount | Depreciation reserves | Shareholding proportion among the investees | Cash bonus of the Reporting Period | ||||||
| Period-begin | Increase | Decrease | Period-end | Period-begin | Increase | Decrease | Period-end | |||
| Shenzhen Zhonghao (Group) Ltd. | 5,850,000.00 | 5,850,000.00 | 5,850,000.00 | 5,850,000.00 | Less than 5.00% | |||||
| Chengdu Hongbo Industrial Co., Ltd. | 6,000,000.00 | 6,000,000.00 | 6.94% | |||||||
| Xiamen Bank | 292,574,133.00 | 292,574,133.00 | 4.62% | 10,971,417.60 | ||||||
| Guangdong Development Bank Co., Ltd. | 500,000.00 | 500,000.00 | Less than 5.00% | |||||||
| Foshan Fochen Road Development Company Limited | 4,554,176.40 | 4,554,176.40 | 7.66% | |||||||
| Total | 309,478,309.40 | 309,478,309.40 | 5,850,000.00 | 5,850,000.00 | -- | 10,971,417.60 | ||||
(4) Changes of the Impairment of the Available-for-sale Financial Assets during the Reporting Period
Unit: RMB
| Category of the available-for-sale financial assets | Available-for-sale equity instruments | Available-for-sale liabilities instruments | Total | |
| Withdrawn impairment balance at the period-begin | 5,850,000.00 | 5,850,000.00 | ||
| Withdrawn impairment balance at the period-end | 5,850,000.00 | 5,850,000.00 |
(5) Relevant Notes of the Fair Value of the Available-for-sale Equity Instruments which Seriously Fell orTemporarily Fell but not Withdrawn the Impairment Provision
Naught15. Investment Held-to-maturityNaught16. Long-term Accounts ReceivableNaught17. Long-term Equity Investment
Unit: RMB
| Investee | Beginning balance | Increase/decrease | Ending balance | Ending balance of impairment provision | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Primatronix (Nanho) Electronic | 179,414,105.14 | 179,781.56 | 3,120,585.75 | 176,473,300.95 | |||||||
| s Ltd. | |||||||||||
| Subtotal | 179,414,105.14 | 179,781.56 | 3,120,585.75 | 176,473,300.95 | |||||||
| Total | 179,414,105.14 | 179,781.56 | 3,120,585.75 | 176,473,300.95 |
Other notes:
The actual controller of Shenzhen Primatronix (Nanho) Electronics Ltd. is Guangdong Electronics Information Industrial (group)Corp.
18. Investment Property(1) Investment Property Adopting Cost Measurement Mode□ Applicable √ Not applicable(2) Investment Property Adopting Fair Value Measurement Mode□ Applicable √ Not applicable(3) List of the Investment Property Failed to Completed the Property CertificateNaught19. Fixed Assets(1) List of Fixed Assets
Unit: RMB
| Item | Houses and buildings | Machinery equipment | Transportation equipment | Electronic equipment | Total |
| I. Original carrying value | |||||
| 1. Beginning balance | 682,933,149.57 | 689,839,173.35 | 23,667,381.11 | 24,917,745.28 | 1,421,357,449.31 |
| 2. Increased amount of the period | 27,268,792.63 | 33,501,668.80 | 28,376.07 | 2,589,689.54 | 63,388,527.04 |
| (1) Purchase | 797,188.08 | 26,133,191.07 | 28,376.07 | 463,880.06 | 27,422,635.28 |
| (2) Transfer of project under construction | 26,471,604.55 | 7,368,477.73 | 2,125,809.48 | 35,965,891.76 | |
| (3) Enterprises combination increase | |||||
| 3. Decreased | 827,279.14 | 547,960.00 | 28,165.00 | 1,403,404.14 |
| amount of the period | |||||
| (1) Disposal or scrap | 787,806.01 | 547,960.00 | 28,165.00 | 1,363,931.01 | |
| (2) Equipment transformation | 39,473.13 | 39,473.13 | |||
| 4. Ending balance | 710,201,942.20 | 722,513,563.01 | 23,147,797.18 | 27,479,269.82 | 1,483,342,572.21 |
| II. Accumulated desperation | |||||
| 1. Beginning balance | 409,156,400.86 | 491,616,205.03 | 16,048,566.76 | 18,722,379.66 | 935,543,552.31 |
| 2. Increased amount of the period | 11,537,432.84 | 21,228,837.48 | 684,845.71 | 1,547,267.76 | 34,998,383.79 |
| (1) Withdrawal | 11,537,432.84 | 21,228,837.48 | 684,845.71 | 1,547,267.76 | 34,998,383.79 |
| 3. Decreased amount of the period | 751,551.71 | 520,562.00 | 26,946.75 | 1,299,060.46 | |
| (1) Disposal or scrap | 746,239.29 | 520,562.00 | 26,946.75 | 1,293,748.04 | |
| (2) Equipment transformation | 5,312.42 | 5,312.42 | |||
| 4. Ending balance | 420,693,833.70 | 512,093,490.80 | 16,212,850.47 | 20,242,700.67 | 969,242,875.64 |
| III. Depreciation reserves | |||||
| 1. Beginning balance | 2,292,602.33 | 428.03 | 2,293,030.36 | ||
| 2. Increased amount of the period | |||||
| (1) Withdrawal | |||||
| 3. Decreased amount of the period | |||||
| (1) Disposal or scrap | |||||
| 4. Ending balance | 2,292,602.33 | 428.03 | 2,293,030.36 | ||
| IV. Carrying value | |||||
| 1. Ending carrying value | 289,508,108.50 | 208,127,469.88 | 6,934,946.71 | 7,236,141.12 | 511,806,666.21 |
| 2. Beginning carrying value | 273,776,748.71 | 195,930,365.99 | 7,618,814.35 | 6,194,937.59 | 483,520,866.64 |
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Depreciation reserves | Carrying value | Remark |
| T5, T8, energy-saving lamp production line | 7,987,825.52 | 5,990,334.69 | 1,945,921.54 | 51,569.29 | Name of the announcement: Announcement on Withdrawing the Preparation for the Assets Impairment on the Idle Equipments and Construction in Progress; the Announcement No.: 2015-030; disclosure website: www.cninfo.com.cn |
| Total | 7,987,825.52 | 5,990,334.69 | 1,945,921.54 | 51,569.29 |
(3) Fixed Assets Leased in from Financing LeaseNaught(4) Fixed Assets Leased out from Operation LeaseNaught(5) Details of Fixed Assets Failed to Accomplish Certificate of PropertyOther notes
The standard workshop E of the Company had been completed and put into use as well as carried over to fixedassets in this year. As of 30 June 2018, the related certificates of property were in progress. The managementbelieved there were no substantial legal impediments in proceeding with the certificates of property and nosignificant unfavorable effects to normal operation of the Company.
20. Construction in Progress(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Construction in progress | 189,368,112.34 | 189,368,112.34 | 162,814,991.68 | 162,814,991.68 | ||
| Total | 189,368,112.34 | 189,368,112.34 | 162,814,991.68 | 162,814,991.68 |
(2) Changes of Significant Construction in Progress
Unit: RMB
| Name of item | Estimated number | Beginning balance | Increased amount | Amount that transferred to fixed assets of the period | Other decreased amount of the period | Ending balance | Proportion estimated of the project accumulative input | Project progress | Accumulative amount of capitalized interests | Of which: the amount of the capitalized interests of the period | Capitalization rate of the interests of the period | Capital resources |
| Fuwan intelligent workshop H | 51,500,000.00 | 25,715,029.09 | 9,608,307.84 | 35,323,336.93 | 68.59% | 75.00% | Other | |||||
| Fuwan standard workshop K3 | 24,500,000.00 | 14,115,345.92 | 4,909,412.88 | 19,024,758.80 | 77.65% | 85.00% | Other | |||||
| Fuwan standard workshop K2 | 24,500,000.00 | 13,281,620.60 | 5,009,432.38 | 18,291,052.98 | 74.66% | 85.00% | Other | |||||
| Fuwan standard workshop J3 | 23,000,000.00 | 12,491,825.29 | 4,057,472.64 | 16,549,297.93 | 71.95% | 75.00% | Other | |||||
| Fuwan standard workshop K1 | 23,000,000.00 | 12,652,955.32 | 4,065,493.50 | 16,718,448.82 | 72.69% | 75.00% | Other | |||||
| Fuwan standard workshop J1 | 21,500,000.00 | 11,760,018.73 | 3,755,783.46 | 15,515,802.19 | 72.17% | 80.00% | Other |
| Fuwan standard workshop J2 | 21,500,000.00 | 11,621,457.94 | 3,755,783.45 | 15,377,241.39 | 71.52% | 80.00% | Other | |||||
| Automatic system of intelligent production workshop (workshop H) | 21,920,000.00 | 8,479,333.21 | 8,479,333.21 | 38.68% | 60.00% | Other | ||||||
| LEDT8 automatic line transformation (16033) LED third workshop | 8,000,000.00 | 6,971,142.75 | 321,629.83 | 7,292,772.58 | 91.16% | 99.00% | Other | |||||
| 70,000 m2 factory constructed by Gao Ming | 7,500,000.00 | 6,026,386.72 | 6,026,386.72 | 80.35% | 85.00% | Other | ||||||
| Family housing of Gao Ming, Building 8# | 9,000,000.00 | 5,827,528.35 | 1,871,498.77 | 7,699,027.12 | 85.54% | 99.00% | Other | |||||
| Fuwan standard workshop E | 30,000,000.00 | 24,045,444.08 | 1,781,059.03 | 25,826,503.11 | 0.00 | 86.09% | 100.00% | Other | ||||
| Total | 265,920,000.00 | 146,961,701.28 | 45,162,260.50 | 25,826,503.11 | 166,297,458.67 | -- | -- | -- |
(3) List of the Withdrawal of the Impairment Provision of the Construction in ProgressNaught21. Engineering MaterialNaught22. Liquidation of Fixed AssetsNaught23. Productive Biological Assets(1) Productive Biological Assets Adopting Cost Measurement Mode□ Applicable √ Not applicable(2) Productive Biological Assets Adopting Fair Value Measurement Mode□ Applicable √ Not applicable24. Oil and Gas Assets□ Applicable √ Not applicable25. Intangible Assets(1) Information
Unit: RMB
| Item | Land use right | Patent | Non-patents | Using right of Software | Total |
| I. Original carrying value | |||||
| 1. Beginning balance | 211,719,938.60 | 200,000.00 | 2,773,651.87 | 214,693,590.47 | |
| 2. Increased amount of the period | |||||
| (1) Purchase | |||||
| (2) Internal R &D | |||||
| (3) Increase from enterprise combination | |||||
| 3. Decrease in the Reporting Period |
| (1) Disposal | |||||
| 4. Ending balance | 211,719,938.60 | 200,000.00 | 2,773,651.87 | 214,693,590.47 | |
| II. Total accrued amortization | |||||
| 1. Beginning balance | 57,449,354.58 | 200,000.00 | 1,499,515.53 | 59,148,870.11 | |
| 2. Increased amount of the period | 1,936,493.01 | 220,515.84 | 2,157,008.85 | ||
| (1) Withdrawal | 1,936,493.01 | 220,515.84 | 2,157,008.85 | ||
| 3. Decrease in the Reporting Period | |||||
| (1) Disposal | |||||
| 4. Ending balance | 59,385,847.59 | 200,000.00 | 1,720,031.37 | 61,305,878.96 | |
| III. Depreciation reserves | |||||
| 1. Beginning balance | |||||
| 2. Increased amount of the period | |||||
| (1) Withdrawal | |||||
| 3. Decrease in the Reporting Period | |||||
| (1) Disposal | |||||
| 4. Ending balance | |||||
| IV. Carrying value | |||||
| 1. Ending carrying value | 152,334,091.01 | 1,053,620.50 | 153,387,711.51 | ||
| 2. Beginning carrying value | 154,270,584.02 | 1,274,136.34 | 155,544,720.36 |
The proportion of the intangible assets formed from the internal R&D through the Company to the balance ofthe intangible assets at the period-end was 0.00%.
(2) Details of Land Use Right Failed to Accomplish Certificate of TitleNaught26. R&D ExpensesNaught
27. Goodwill(1) Original Carrying value of GoodwillNaught(2) Impairment Provision of GoodwillNaught28. Long-term Unamortized Expenses
Unit: RMB
| Item | Beginning balance | Increased amount | Amortization amount | Other decreased amount | Ending balance |
| Maintenance and decoration expenses | 9,088,933.56 | 1,176,201.48 | 2,859,910.25 | 7,405,224.79 | |
| Total | 9,088,933.56 | 1,176,201.48 | 2,859,910.25 | 7,405,224.79 |
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities(1) Deferred Income Tax Assets Had not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Assets impairment provision | 112,256,028.63 | 17,243,788.29 | 99,556,953.91 | 15,311,430.81 |
| Unrealized profits of internal transactions | 1,324,545.88 | 198,681.88 | 1,795,625.87 | 269,343.88 |
| Deductible losses | 897,811.61 | 224,452.90 | 10,594,861.17 | 2,648,715.29 |
| Depreciation of fixed assets | 69,138,726.15 | 10,701,998.82 | 67,261,836.57 | 10,420,465.38 |
| Payroll payable | 43,760,690.41 | 6,564,103.56 | 60,172,489.55 | 9,025,873.43 |
| Total | 227,377,802.68 | 34,933,025.45 | 239,381,767.07 | 37,675,828.79 |
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Changes in fair value of | 463,100,210.68 | 69,465,031.60 | 843,068,339.74 | 126,460,250.96 |
| available-for-sale financial assets | ||||
| Total | 463,100,210.68 | 69,465,031.60 | 843,068,339.74 | 126,460,250.96 |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
| Item | Mutual set-off amount of deferred income tax assets and liabilities at the period-end | Amount of deferred income tax assets or liabilities after off-set at the period-end | Mutual set-off amount of deferred income tax assets and liabilities at the period-begin | Amount of deferred income tax assets or liabilities after off-set at the period-begin |
| Deferred income tax assets | 34,933,025.45 | 37,675,828.79 | ||
| Deferred income tax liabilities | 69,465,031.60 | 126,460,250.96 |
(4) List of Unrecognized Deferred Income Tax AssetsNaught(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following YearsNaught30. Other Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Land purchase and the ownership implicit of relevant items | 41,755,700.00 | 41,755,700.00 |
| Prepayments for business facilities | 350,440.00 | 1,303,334.80 |
| Total | 42,106,140.00 | 43,059,034.80 |
31. Short-term LoansNaught32. Financial Liabilities at Fair Value through Profit or LossNaught33. Derivative Financial Liabilities□ Applicable √ Not applicable
34. Notes Payable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Bank acceptance bill | 2,652,485.00 | |
| Total | 2,652,485.00 |
The total unpaid notes payable due at the Period end was RMB0.00.35. Accounts Payable(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Accounts payable | 679,471,875.75 | 539,303,554.54 |
| Total | 679,471,875.75 | 539,303,554.54 |
(2) Notes of the Accounts Payable Aging Over One Year
Naught
36. Advance from Customers(1) List of Advance from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advance from customers | 39,197,246.65 | 48,706,778.49 |
| Total | 39,197,246.65 | 48,706,778.49 |
(2) Significant Advance from Customers Aging Over One YearNaught(3) Particulars of Settled but Unfinished Projects Formed by Construction Contract at Period-endNaught37. Payroll Payable(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 81,948,630.59 | 301,930,908.07 | 320,079,778.93 | 63,799,759.73 |
| II. Welfare after demission - defined contribution plans | 19,477,061.62 | 19,477,061.62 | ||
| Total | 81,948,630.59 | 321,407,969.69 | 339,556,840.55 | 63,799,759.73 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 81,567,715.47 | 276,124,154.89 | 294,250,945.69 | 63,440,924.67 |
| 2. Employee welfare | 6,308,719.45 | 6,308,719.45 | ||
| 3. Social insurance | 12,488,143.47 | 12,488,143.47 | ||
| Including: Medical insurance premiums | 10,721,495.58 | 10,721,495.58 | ||
| Work-related injury insurance | 757,389.39 | 757,389.39 | ||
| Maternity insurance | 1,009,258.50 | 1,009,258.50 | ||
| 4. Housing fund | 4,841,241.50 | 4,841,241.50 | ||
| 5. Labor union budget and employee education budget | 380,915.12 | 2,168,648.76 | 2,190,728.82 | 358,835.06 |
| Total | 81,948,630.59 | 301,930,908.07 | 320,079,778.93 | 63,799,759.73 |
(3) List of Drawing Scheme
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 18,665,445.40 | 18,665,445.40 | ||
| 2. Unemployment insurance | 811,616.22 | 811,616.22 | ||
| Total | 19,477,061.62 | 19,477,061.62 |
38. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 14,500,324.87 | 10,282,705.33 |
| Corporate income tax | 23,592,375.47 | 9,181,098.01 |
| Personal income tax | 1,782,936.65 | 1,591,053.45 |
| Urban maintenance and construction tax | 1,013,577.10 | 830,070.63 |
| Education surcharge | 723,983.65 | 596,707.51 |
| Property tax | 2,708,665.52 | 893,895.36 |
| Land use tax | 2,051,969.88 | 3,831,261.26 |
| Other taxes | 168,552.67 | 143,878.85 |
| Total | 46,542,385.81 | 27,350,670.40 |
39. Interest PayableNaught40. Dividends PayableNaught41. Other Accounts Payable(1) Other Accounts Payable Listed by Nature of the Account
Unit: RMB
| Item | Ending balance | Beginning balance |
| Compensation for lawsuit | 1,762,533.43 | 1,762,533.43 |
| Performance bond | 23,904,066.25 | 22,458,290.53 |
| Others | 9,982,229.87 | 16,327,665.07 |
| Total | 35,648,829.55 | 40,548,489.03 |
(2) Other Significant Accounts Payable with Aging Over One YearNaught42. Held-for-sale LiabilitiesNaught43. Non-current Liabilities Due within 1 YearNaught44. Other Current LiabilitiesNaught45. Long-term BorrowingsNaught
46. Bonds PayableNaught47. Long-term Accounts PayableNaught48. Long-term Payroll PayableNaught49. Specific Accounts PayableNaught50. ProvisionsNaught51. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Reason for formation |
| Government subsidy | 11,858,330.49 | 77,499.96 | 11,780,830.53 | Government subsidy related to assets/income | |
| Total | 11,858,330.49 | 77,499.96 | 11,780,830.53 | -- |
Item involving government subsidies:
Unit: RMB
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in the Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related income |
| LED production technical transformation project | 9,852,274.95 | 9,852,274.95 | Related to assets | |||||
| Production line of 50 million | 310,000.23 | 77,499.96 | 232,500.27 | Related to assets |
| energy-saving fluorescent lamp | ||||||||
| Construction of Electro-optical Institute of Foshan Electrical and Lighting Co., Ltd. | 1,000,000.00 | 1,000,000.00 | Related to income | |||||
| Standard optical components testing laboratory capacity construction | 272,669.78 | 272,669.78 | Related to income | |||||
| Overseas protection plan of intellectual property of FSL | 250,000.00 | 250,000.00 | Related to income | |||||
| Standard research on cool LED light with wide angle | 173,385.53 | 173,385.53 | Related to income | |||||
| Total | 11,858,330.49 | 77,499.96 | 11,780,830.53 | -- |
52. Other Non-current LiabilitiesNaught53. Share Capital
Unit: RMB
| Beginning balance | Increase/decrease (+/-) | Ending balance | |||||
| New shares issued | Bonus shares | Bonus issue from profit | Other | Subtotal | |||
| The sum of shares | 1,272,132,868.00 | 127,213,286.00 | 127,213,286.00 | 1,399,346,154.00 | |||
54. Other Equity InstrumentNaught55. Capital Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Capital premium (premium on stock) | 278,575,487.53 | 127,213,286.00 | 151,362,201.53 | |
| Other capital reserves | 7,245,971.54 | 7,245,971.54 | ||
| Total | 285,821,459.07 | 127,213,286.00 | 158,608,173.07 |
Other notes, including changes and reason of change:
The decrease in capital premium (premium on stock) was mainly caused by the review and approval of the 2017Profit Distribution and Bonus Issue from Profit Plan on the shareholders meeting held on 26 April 2018, in which,the Company issues one share for every 10 share in capital reserves to the whole shareholders. The total bonusissue from profit was 127,213,286.00 shares. The aforesaid profit distribution and bonus issue from profit planhas been carried out completely on 16 May 2018.
56. Treasury SharesNaught57. Other Comprehensive Income
Unit: RMB
| Item | Beginning balance | Reporting Period | Ending balance | ||||
| Income before taxation in the Current Period | Less: recorded in other comprehensive income in prior period and transferred in profit or loss in the Current Period | Less: Income tax expense | Attributable to owners of the Company as the parent after tax | Attributable to non-controlling interests after tax | |||
| II. Other comprehensive income that may subsequently be reclassified to profit or loss | 716,607,333.78 | -379,970,570.75 | -56,995,219.36 | -322,975,351.39 | 393,631,982.39 | ||
| Gains or losses from changes in fair value of available-for-sale financial assets | 716,608,088.78 | -379,968,129.06 | -56,995,219.36 | -322,972,909.70 | 393,635,179.08 | ||
| Differences arising from | -755.00 | -2,441.69 | -2,441.69 | -3,196.69 | |||
| translation of foreign currency-denominated financial statements | |||||||
| Total of other comprehensive income | 716,607,333.78 | -379,970,570.75 | -56,995,219.36 | -322,975,351.39 | 393,631,982.39 |
58. Specific ReserveNaught59. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserves | 636,066,434.00 | 636,066,434.00 | ||
| Discretionary surplus reserves | 136,886,568.36 | 136,886,568.36 | ||
| Total | 772,953,002.36 | 772,953,002.36 |
60. Retained Profits
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Beginning balance of retained profits before adjustments | 1,731,600,796.18 | 1,564,615,925.99 |
| Beginning balance of retained profits after adjustments | 1,731,600,796.18 | 1,564,615,925.99 |
| Add: Net profit attributable to owners of the Company as the parent | 229,277,455.82 | 228,494,660.57 |
| Dividend of ordinary shares payable | 418,531,713.57 | 534,295,804.56 |
| Ending retained profits | 1,542,346,538.43 | 1,258,814,782.00 |
List of adjustment of beginning retained profits:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.(2) RMB0.00 beginning retained profits was affected by changes in accounting policies.(3) RMB0.00 beginning retained profits was affected by correction of significant accounting errors.(4) RMB0.00 beginning retained profits was affected by changes in combination scope arising from same control.(5) RMB0.00 beginning retained profits was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same Period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 2,048,839,316.62 | 1,568,876,663.19 | 2,010,535,149.65 | 1,537,416,165.51 |
| Other operations | 15,939,973.37 | 10,415,204.70 | 13,390,433.19 | 9,515,614.34 |
| Total | 2,064,779,289.99 | 1,579,291,867.89 | 2,023,925,582.84 | 1,546,931,779.85 |
62. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Urban maintenance and construction tax | 8,264,474.00 | 7,980,261.34 |
| Education Surcharge | 5,949,176.10 | 5,707,899.61 |
| Property tax | 4,231,277.07 | 3,045,704.60 |
| Land use tax | 2,590,984.95 | 2,621,884.53 |
| Vehicles and vessels use tax | 6,668.80 | 13,909.92 |
| Stamp duty | 906,543.92 | 1,016,936.24 |
| Embankment-protection fees | 6.09 | |
| Environmental protection tax | 13,393.40 | |
| Total | 21,962,518.24 | 20,386,602.33 |
63. Selling Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Employee’s remuneration | 30,104,690.49 | 30,517,319.21 |
| Freight | 36,843,018.64 | 31,103,632.14 |
| Business travel charges | 4,436,361.10 | 5,183,499.37 |
| Business propagandize fees and advertizing fees | 9,922,450.58 | 3,408,430.38 |
| Dealer meeting expense | 2,444,484.12 | 857,144.15 |
| Sales promotion fees | 7,768,266.90 | 6,799,707.29 |
| Other | 12,397,738.64 | 3,782,261.15 |
| Total | 103,917,010.47 | 81,651,993.69 |
64. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Employee’s remuneration | 65,793,996.37 | 57,456,446.88 |
| Office expenses | 5,211,417.98 | 5,128,247.37 |
| Rent of land and management charge | 3,135,605.89 | 3,054,887.77 |
| Amortization of intangible assets | 2,157,008.85 | 2,157,808.85 |
| Depreciation charge | 7,850,977.37 | 9,552,900.65 |
| Other | 20,325,025.06 | 21,440,530.08 |
| Total | 104,474,031.52 | 98,790,821.60 |
65. Finance Costs
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Interest expense | ||
| Less: Interest income | 4,879,439.87 | 15,609,163.27 |
| Foreign exchange gains or losses | -9,341,097.44 | 6,502,463.05 |
| Other | 1,135,060.70 | 1,990,792.86 |
| Total | -13,085,476.61 | -7,115,907.36 |
66. Asset Impairment Loss
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| I. Bad debt loss | 8,366,488.61 | 10,677,806.99 |
| II. Inventory falling price loss | 7,640,381.22 | 13,381,912.36 |
| Total | 16,006,869.83 | 24,059,719.35 |
67. Gain on Changes in Fair ValueNaught
68. Investment Income
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Long-term equity investment income accounted by equity method | 179,781.56 | 1,543,965.79 |
| Investment income received from holding of available-for-sale financial assets | 10,971,417.60 | 6,560,422.50 |
| Income received from financial products and structural deposits | 13,358,671.20 | 6,404,893.95 |
| Other | -500,000.22 | |
| Total | 24,509,870.36 | 14,009,282.02 |
69. Asset Disposal Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Income from disposal of fixed assets | -10,790.68 | |
| Total | -10,790.68 |
70. Other Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Subsidy for stabilizing posts | 792,403.17 | 17,754.36 |
| Supporting fund for import and export | 3,249,240.00 | |
| Other | 225,982.00 | 36,000.00 |
| Total | 1,018,385.17 | 3,302,994.36 |
71. Non-operating Income
Unit: RMB
| Item | Reporting Period | Same Period of last year | Amount recorded in the current non-recurring profit or loss |
| Government subsidy | 914,699.96 | 584,709.96 | 914,699.96 |
| Other | 755,156.47 | 2,134,691.56 | 755,156.47 |
| Total | 1,669,856.43 | 2,719,401.52 | 1,669,856.43 |
Government subsidies recorded into current profit or loss
Unit: RMB
| Item | Distribution entity | Distribution reason | Nature | Whether influence the profits or losses of the year or not | Special subsidy or not | Reporting Period | Same period of last year | Related to assets/related income |
| Production line of 50 million energy-saving fluorescent lamp | Subsidy | Due to engaged in special industry that the state encouraged and supported, gained subsidy (obtaining in line with the law and the | No | No | 77,499.96 | 77,499.96 | Related to assets |
| regulations of national policy) | ||||||||
| Chancheng District Economy and Science Promotion Bureau Talent Subsidy | Award | Subsidy from R&D Technical updating and transformation, etc. | No | No | 300,000.00 | Related to income | ||
| Governmental reward fund | Award | Subsidy from R&D Technical updating and transformation, etc. | No | No | 20,000.00 | Related to income | ||
| Other odd government subsidies | Award | Subsidy from R&D Technical updating and transformation, etc. | No | No | 837,200.00 | 187,210.00 | Related to income | |
| Total | -- | -- | -- | -- | -- | 914,699.96 | 584,709.96 | -- |
72. Non-operating Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year | Amount recorded in the current non-recurring profit or loss |
| Total losses from disposal of non-current assets | 70,182.97 | 4,244,373.75 | 70,182.97 |
| Of which: losses from disposal of fixed assets | 70,182.97 | 4,244,373.75 | 70,182.97 |
| Donations | 2,000.00 | ||
| Lawsuit compensation | 65,000.00 | 65,000.00 | |
| Other | 56,566.45 | 512,609.26 | 56,566.45 |
| Total | 191,749.42 | 4,758,983.01 | 191,749.42 |
73. Income Tax Expense(1) List of Income Tax Expense
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Current income tax expense | 44,301,342.36 | 39,780,075.57 |
| Deferred income tax expense | 2,742,803.34 | 2,817,425.78 |
| Total | 47,044,145.70 | 42,597,501.35 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | 279,218,831.19 |
| Current income tax expense accounted at statutory/applicable tax rate | 41,671,742.41 |
| Influence of applying different tax rates by subsidiaries | 4,549,768.16 |
| Influence of income tax before adjustment | 2,495,315.01 |
| Influence of non-taxable income | -1,672,679.87 |
| Income tax expense | 47,044,145.70 |
74. Other Comprehensive IncomeRefer to Note 57 for details.75. Cash Flow Statement(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Deposit interest | 10,461,602.02 | 17,037,947.97 |
| Income from insurance compensation | 50,333.58 | 132,451.15 |
| Cash deposit income | 1,729,639.24 | -3,637,333.34 |
| Property and rental income | 2,110,828.30 | 1,737,139.33 |
| Income from subsidy | 1,911,331.54 | 5,010,204.36 |
| Income from waste | 8,814,180.41 | 5,756,171.75 |
| Other | 8,467,917.26 | 2,857,134.88 |
| Total | 33,545,832.35 | 28,893,716.10 |
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Administrative expense paid in cash | 20,080,875.34 | 25,668,559.80 |
| Selling expense paid in cash | 70,572,897.55 | 74,020,250.31 |
| Finance costs paid in cash | 343,210.94 | 237,632.16 |
| Other | 6,351,791.98 | 7,963,536.97 |
| Total | 97,348,775.81 | 107,889,979.24 |
(3) Cash Generated from Other Investing ActivitiesNaught(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| The future foreign exchange settlement security deposit | 2,447,280.00 | |
| Security deposit on quota | 857,419.80 | |
| Total | 3,304,699.80 |
(5) Cash Generated from Other Financing ActivitiesNaught(6) Cash Used in Other Financing ActivitiesNaught76. Supplemental Information for Cash Flow Statement(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Reporting Period | Same period of last year |
| 1. Reconciliation of net profit to net cash flows generated from operating activities | -- | -- |
| Net profit | 232,174,685.49 | 231,884,976.24 |
| Add: Provision for impairment of assets | 16,006,869.83 | 24,059,719.35 |
| Depreciation of fixed assets, oil-gas assets, and productive living assets | 34,998,383.79 | 36,399,142.47 |
| Amortization of intangible assets | 2,157,008.85 | 2,157,808.85 |
| Amortization of long-term prepaid expenses | 2,859,910.25 | 1,647,573.52 |
| Losses from disposal of fixed assets, intangible assets and other long-lived assets (gains: negative) | 166,326.42 | |
| Losses on scrap of fixed assets (gains: negative) | 70,182.97 | 4,088,838.01 |
| Investment loss (gains: negative) | -24,509,870.36 | -14,009,282.02 |
| Decrease in deferred income tax assets (gains: negative) | 2,742,803.34 | 2,817,425.78 |
| Decrease in inventory (gains: negative) | 23,967,773.95 | 17,780,154.35 |
| Decrease in accounts receivable generated from operating activities (gains: negative) | -280,200,774.50 | -214,104,001.05 |
| Increase in accounts payable used in operating activities (decrease: negative) | 134,456,804.77 | -123,951,869.14 |
| Net cash generated from/used in operating activities | 144,723,778.38 | -31,063,187.22 |
| 2. Significant investing and financing activities without involvement of cash receipts and payments | -- | -- |
| 3. Net increase/decrease of cash and cash equivalent: | -- | -- |
| Ending balance of cash | 911,663,899.88 | 815,038,019.29 |
| Less: beginning balance of cash | 570,184,208.96 | 1,479,283,642.54 |
| Net increase in cash and cash equivalents | 341,479,690.92 | -664,245,623.25 |
(2) Net Cash Paid For Acquisition of SubsidiariesNaught(3) Net Cash Receive from Disposal of the SubsidiariesNaught(4) Cash and Cash Equivalent
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 911,663,899.88 | 570,184,208.96 |
| Including: Cash on hand | 53,998.39 | 52,031.79 |
| Bank deposit on demand | 909,808,121.57 | 565,323,109.99 |
| Other monetary fund on demand | 1,801,779.92 | 4,809,067.18 |
| III. Ending balance of cash and cash equivalents | 911,663,899.88 | 570,184,208.96 |
77. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the same period of last year adjusted and the amountadjusted:
Not applicable
78. Assets with Restricted Ownership or Right to Use
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary capital | 3,304,699.80 | Security deposit of future foreign exchange settlement and quota |
| Notes payable | 3,500,000.00 | Pledged for FSL Bank Notes Pool |
| Total | 6,804,699.80 | -- |
79. Foreign Currency Monetary Items(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Ending foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Monetary capital | -- | -- | 12,621,526.35 |
| Including: USD | 1,851,278.58 | 6.6166 | 12,249,169.85 |
| EUR | 48,664.51 | 7.6515 | 372,356.50 |
| Account receivable | -- | -- | 377,725,324.07 |
| Including: USD | 57,087,525.93 | 6.6166 | 377,725,324.07 |
| Advances from customers | 19,944,524.61 | ||
| Including: USD | 2,929,395.82 | 6.6166 | 19,382,640.38 |
| EUR | 73,434.52 | 7.6515 | 561,884.23 |
| Prepayments | 669,198.69 | ||
| Including: USD | 101,139.36 | 6.6166 | 669,198.69 |
| Accounts payable | 849,507.92 | ||
| Including: USD | 128,390.40 | 6.6166 | 849,507.92 |
| Other accounts payable | 463,625.16 | ||
| Including: USD | 70,070.00 | 6.6166 | 463,625.16 |
(2) Notes to Overseas Entities Including: for Significant Oversea Entities, Main Operating Place, RecordingCurrency and Selection Basis Shall Be Disclosed; if there Are Changes in Recording Currency, RelevantReasons Shall Be Disclosed.
□ Applicable √ not applicable80. ArbitrageQualitative and quantitative information of relevant arbitrage instruments, hedged risk in line with the type of
arbitrage to disclose:
81. Other
VIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control(1) Business Combination Not under the Same Control during the Reporting PeriodNaught(2) Combination Cost and GoodwillNaught(3) The Identifiable Assets and Liabilities of Acquiree on Purchase DateNaught(4) Gains or losses from Re-measurement of Equity Held before the Purchase Date at Fair ValueWhether there is a transaction that through multiple transaction step by step to realize business combination
and gaining the control during the Reporting Period□ Yes √ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquireethat Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
Naught(6) Other NotesNaught2. Business Combination under the Same Control(1) Business Combination under the Same Control during the Reporting PeriodNaught(2) Combination CostNaught
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination DateNaught3. Counter PurchaseNaught4. The Disposal of SubsidiaryWhether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ NoWhether there are several disposals of the investment to the subsidiary and lost controls?□ Yes √ No
5. Changes in Combination Scope for Other ReasonsNote to changes in combination scope for other reasons (such as newly establishment or liquidation of
subsidiaries, etc.) and relevant information:
Naught
6. OtherNaught
IX. Equity in Other Entities
1. Equity in Subsidiary(1) Subsidiaries
| Name | Main operating place | Registration place | Nature of business | Holding percentage (%) | Way of gaining | |
| Directly | Indirectly | |||||
| Foshan Chansheng Electronic Ballast Co., Ltd. | Foshan | Foshan | Production and sales | 100.00% | Newly established | |
| Foshan Lighting Lamps & Components Co., Ltd. | Foshan | Foshan | Production and sales | 100.00% | Newly established | |
| Guangdong Fozhao New Light Sources Technology Co., Ltd. | Foshan | Foshan | Production and sales | 100.00% | Newly established | |
| FSL Chanchang | Foshan | Foshan | Production and | 100.00% | Newly | |
| Optoelectronics Co., Ltd. | sales | established | ||||
| Foshan Taimei Times Lamps and Lanterns Co., Ltd. | Foshan | Foshan | Production and sales | 70.00% | Newly established | |
| Foshan Electrical & Lighting (Xinxiang) Co., Ltd. | Xinxiang) | Xinxiang) | Production and sales | 100.00% | Newly established | |
| Guangdong Fozhao Leasing Co., Ltd. | Foshan | Foshan | Finance lease | 100.00% | Newly established | |
| Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. | Nanjing | Nanjing | Production and sales | 100.00% | Acquired | |
| FSL Zhida Electric Technology Co., Ltd. | Foshan | Foshan | Production and sales | 51.00% | Newly established | |
| FSL Lighting GmbH） | Germany | Germany | Production and sales | 100.00% | Newly established |
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
| Name | Shareholding proportion of non-controlling shareholders | The profit or loss attributable to the non-controlling shareholders | Declaring dividends distributed to non-controlling shareholders | Balance of non-controlling shareholders at the period-end |
| Foshan Taimei Times Lamps and Lanterns Co., Ltd. | 30.00% | 1,063,485.63 | 7,656,339.44 | |
| FSL Zhida Electric Technology Co., Ltd. | 49.00% | 1,833,744.04 | 15,760,550.63 |
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liability | Total liabilities | |
| Foshan Taimei Times Lamps | 57,511,714.36 | 16,910,024.47 | 74,421,738.83 | 48,900,607.37 | 48,900,607.37 | 74,373,986.81 | 15,493,351.95 | 89,867,338.76 | 67,891,159.40 | 67,891,159.40 | ||
| and Lanterns Co., Ltd. | ||||||||||||
| FSL Zhida Electric Technology Co., Ltd. | 87,826,882.64 | 10,663,620.19 | 98,490,502.83 | 51,234,277.06 | 51,234,277.06 | 89,763,066.89 | 10,457,849.42 | 100,220,916.31 | 56,707,025.32 | 56,707,025.32 |
Unit: RMB
| Name | Reporting Period | Same period of last year | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Foshan Taimei Times Lamps and Lanterns Co., Ltd. | 73,606,152.87 | 3,544,952.10 | 3,544,952.10 | 11,967,649.42 | 82,641,917.32 | 2,008,910.10 | 2,008,910.10 | 23,327,544.49 |
| FSL Zhida Electric Technology Co., Ltd. | 56,884,635.54 | 3,742,334.78 | 3,742,334.78 | -6,170,821.36 | 66,773,802.15 | 5,689,066.62 | 5,689,066.62 | -3,415,460.17 |
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the CompanyNaught(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial StatementsNaught
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Naught
(2) The Transaction’s Influence on the Equity of Non-controlling Shareholders and the Owner's Equity
Attributable to the Company as the ParentNaught3. Equity in Joint Ventures or Associated Enterprises(1) Significant Joint Ventures or Associated EnterprisesNaught(2) Main Financial Information of Significant Joint VenturesNaught(3) Main Financial Information of Significant Associated EnterpriseNaught(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
| Ending balance/Reporting Period | Beginning balance/The same period of last year | |
| Joint venture: | -- | -- |
| The total of following items according to the shareholding proportions | -- | -- |
| Associated enterprise: | -- | -- |
| Total carrying value of investments | 176,473,300.95 | 179,414,105.14 |
| The total of following items according to the shareholding proportions | -- | -- |
| --net profit | 179,781.56 | 1,543,965.79 |
| --total comprehensive income | 179,781.56 | 1,543,965.79 |
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises toTransfer Funds to the Company
Naught(6) The Excess Loss of Joint Ventures or Associated EnterprisesNaught
(7) The Unrecognized Commitment Related to Investment to Joint VenturesNaught(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated EnterprisesNaught4. Significant Common OperationNaught5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNaught6. OtherNaught
X. The Risk Related to Financial Instruments
The financial instruments of the Company included: monetary funds, accounts receivable, notes receivable,
accounts payable, etc. The details of each financial instrument see relevant items of note Ⅶ.
The main risks of the Company due to financial instruments were credit risk, liquidity risk and market risk. Theoperating management of the Company was responsible for the risk management target and the recognition ofthe policies.(I) Credit riskCredit risk was one party of the contract failed to fulfill the obligations and causes loss of financial assets of theother party. The credit risk the Company faced was selling on credit which leads to customer credit risk.The Company will evaluate credit risk of new customer, and set credit limit, once the balance of accountreceivable over credit limit, require the customer to pay or producing and delivering goods shall be approved bythe management of the Company.The Company through monthly aging analysis of account receivable and monitoring the collection situation ofthe customer ensured the overall credit risk of the Company was in control scope. Once appear abnormalsituation, the Company should conduct necessary measures to requesting the payment timely.(II) Liquidity RiskLiquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in theway of cash payment or other financial assets. The policies of the Company are to ensure that there wassufficient cash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department ofthe Company. The financial department through supervising the balance of the cash and securities can beconvert to cash at any time and the rolling prediction of cash flow in future 12 months to ensure the Companyhave sufficient cash to pay the liabilities under the case of all reasonable prediction, Each financial liability of theCompany was estimated due within 1 year.(III) Market risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to thechange of market price, including: exchange rate risk, interest rate risk and other price risk.1. Exchange rate riskExchange rate risk was referred to risk of possible losses due to changes of exchange rate. The exchange rate riskundertaken by the Company was mainly generated from USD and EUR. On 30 June 2018, all assets and liabilitiesof the Company were balances in RMB except that the balances of assets and liabilities presented in the Note VII(79) Foreign Currency Monetary Items were in USD and EUR. The exchange rate risk generated from thosebalance of assets and liabilities in foreign currency might influence the running performance of the Company tosome extent.The Company made efforts to avoid exchange rate risk through forward exchange settlement, improvingoperation management and promoting the international competitiveness of the Company, etc.2. Interest rate riskInterest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument changedue to the change of market price. There was no bank loan in the Company, thus no RMB benchmark interestrate changes3. Other price riskNaught
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Ending fair value | |||
| Fair value measurement items at level 1 | Fair value measurement items at level 2 | Fair value measurement items at level 3 | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| (I)Available-for-sale financial assets | 706,985,098.14 | 706,985,098.14 | ||
| (1) equity instrument investment | 706,985,098.14 | 706,985,098.14 | ||
| The total amount of assets consistently measured at fair value | 706,985,098.14 | 706,985,098.14 | ||
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
In line with the market price of shares on the balance sheet date
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 2
Naught4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters for
Consistent and Inconsistent Fair Value Measurement Items at Level 3Naught5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning and
Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3Naught6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different LevelsNaught7. Changes in the Valuation Technique in the Current Period and the Reason for Such ChangesNaught8. Fair Value of Financial Assets and Liabilities Not Measured at Fair ValueNaught9. OtherNaught
XII. Connected Party and Connected Transaction
1. Information Related to the Company as the Parent of the Company
| Name | Registration place | Nature of business | Registered capital | Proportion of share held by the Company as the parent against the Company (%) | Proportion of voting rights owned by the Company as the parent against the Company (%) |
| Hong Kong Wah Shing Holding Company Limited | Hong Kong | Investment | HKD110,000 | 13.47% | 13.47% |
| Shenzhen Rising | Shenzhen | Investment | RMB120 million | 5.12% | 5.12% |
| Investment Development Co., Ltd. | |||||
| Guangdong Electronics Information Industry Group Ltd. | Guangzhou | Sales & Production | RMB462 million | 4.74% | 4.74% |
| Rising Investment Development Co., Ltd. | Hong Kong | Investment | HKD1 million | 1.82% | 1.82% |
| Guangdong Rising Finance Holding Co., Ltd. | Zhuhai | Investment | RMB1393 million | 0.54% | 0.54% |
| Total | 25.70% | 25.70% |
Notes: Information on the Company as the parent of the Company:
The largest shareholder of the Company, Hong Kong Wah Shing Holding Co., Ltd., was the wholly-ownedsubsidiary of Electronics Group, and Electronics Group, Shenzhen Rising Investment Development Co., Ltd.( Hereinafter referred to as " Shenzhen Rising " ), Guangdong Rising Finance Holding Co., Ltd. ( Hereinafterreferred to as GD Rising Finance) and Rising Investment Development Co., Ltd. ( Hereinafter referred to as "Rising Investment" ) were the wholly-owned subsidiaries of Guangdong Rising Assets Management Co., Ltd.(Hereinafter referred to as “Rising Company”). In line with the relevant stipulation of Corporation Law and Ruleson Listed Companies Acquisition, Electronics Group, Shenzhen Rising and Rising Investment were persons actingin concert, and the Rising Company was the actual controller of the Company. As of 30 June 2018, the aforesaidpersons acting in concert holding total A, B share of the Company 359,632,344 shares, 25.70 % of total shareequity of the Company. Guangdong Rising Assets Management Co., Ltd. became the actual controller of theCompany.The final controller of the Company was Guangdong Rising Assets Management Co., Ltd.
2. Subsidiaries of the CompanyRefer to Note IX Equity in Other Entities-1. Equity in Subsidiary for details.3. Information on the Joint Ventures and Associated Enterprises of the CompanyRefer to Note IX Equity in Other Entities-1. Equity in Joint Ventures or Associated Enterprises for details of
significant joint ventures or associated enterprises of the Company.4. Information on Other Connected Parties
| Name | Relationship with the Company |
| PROSPERITY LAMPS & COMPONENTS LTD | Shareholder owning over 5% shares |
| Foshan NationStar Optoelectronics Co. Ltd. | Under same actual controller |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Under same actual controller |
| Guangdong Rising Optoelectronics Co., Ltd. | Under same actual controller |
| Guangdong Rising Data Solid State Disk Co., Ltd. | Under same actual controller |
| Guangdong Huayuebao New Energy Co., Ltd. | Under same actual controller |
| Guangdong Rising Finance Limited | Under same actual controller |
| Guangdong Zhongke Hongwei Semiconductor Equipment Co., Ltd. | Under same actual controller |
| Hangzhou Times Lighting and Electrical Co., Ltd. | Company controlled by related natural person |
| Henan Rising Technology Investment Co., Ltd. | Under same actual controller |
| Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. | Company controlled by related natural person |
| Prosperity Electrical (China) Co., Ltd. | Company controlled by related natural person |
| OSRAM (China) Lighting Co., Ltd. | Company controlled by related natural person with significant influence |
| Guangdong Electronic Technology Research Institute | Under same actual controller |
5. List of Connected Transactions(1) Information on Acquisition of Goods and Reception of Labor ServiceInformation on acquisition of goods and reception of labor service
Unit: RMB
| Connected party | Content | Reporting Period | The approval trade credit | Whether exceed trade credit or not | Same period of last year |
| Prosperity Lamps and Components Ltd. | Purchase of materials | 3,844,498.14 | 6,000,000.00 | No | 670,457.93 |
| Prosperity Electrical (China) Co., Ltd. | Purchase of materials | 729,882.89 | 0.00 | -32,104.28 | |
| Hangzhou Times Lighting and Electrical Co., Ltd. | Purchase of materials | 368,916.04 | 2,000,000.00 | No | 1,138,676.40 |
| Foshan Nation Star Optoelectronics Co., Ltd. | Purchase of materials | 43,595,754.55 | 200,000,000.00 | No | 38,972,909.25 |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Purchase of materials | 5,172,863.77 | 11,000,000.00 | No | 4,100,354.77 |
| Guangdong HYB New Energy Co., Ltd. | Purchase of materials | 0.00 | 933,432.24 | ||
| Guangdong Electronic Technology Research Institute | Purchase of equipment | 760,683.76 | 3,000,000.00 | No | |
| MTM | Purchase of | 323,282.05 | 1,000,000.00 | No | 164,400.00 |
| Semiconductor Equipment Co., Ltd. | equipment | ||||
| Guangdong Rising Data Solid State Disk Co., Ltd. | Purchase of equipment | 1,600,000.00 | 0.00 | ||
| Total | 56,395,881.20 | No | 45,948,126.31 |
Information of sales of goods and provision of labor service
Unit: RMB
| Connected party | Content | Reporting Period | Same period of last year |
| Prosperity Lamps and Components Ltd. | Sale of products | 18,871,809.73 | 14,820,551.42 |
| Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. | Sale of products | 46,299.15 | 38,649.58 |
| Prosperity Electrical (China) Co., Ltd. | Sale of products | 175,397.67 | 177,652.13 |
| Foshan Nation Star Optoelectronics Co., Ltd. | Sale of products | 3,353.85 | |
| Hangzhou Times Lighting and Electrical Co., Ltd. | Sale of products | 25,852.99 | |
| Guangdong Rising Optoelectronics Co., Ltd. | Sale of products | 568.97 | |
| Total | 19,094,075.52 | 15,066,059.97 |
(2) Information on Connected Trusteeship/ContractNaught(3) Information on Connected LeaseThe Company was lessor:
Naught
The Company was lessee:
Unit: RMB
| Name of lessor | Category of leased assets | The lease fee confirmed in the Reporting Period | The lease fee confirmed in the same period of last year |
| Guangdong Electronics Information Industry Group Ltd. | Vehicles | 8,333.31 |
(4) Information on Connected GuaranteeNaught
(5) Information on Inter-bank Lending of Capital of Related PartiesNaught(6) Information on Assets Transfer and Debt Restructuring by Connected PartyNaught(7) Information on Remuneration for Key Management Personnel
Unit: RMB
| Item | Reporting period | Same period of last year |
| Chairman of the Board | 0.00 | 0.00 |
| Director & GM | 700,000.00 | 700,000.00 |
| Chairman of the Supervisor | 0.00 | 0.00 |
| Secretary of the Board | 400,000.00 | 400,000.00 |
| CFO | 400,000.00 | 400,000.00 |
| Other | 2,695,000.00 | 2,671,500.00 |
| Total | 4,195,000.00 | 4,171,500.00 |
(8) Other Connected TransactionsNaught6. Accounts Receivable and Payable of Connected Party(1) Accounts Receivable
Unit: RMB
| Item | Connected party | Ending balance | Beginning balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Interest receivable | Guangdong Rising Finance Co., Ltd. | 1,622,133.34 | |||
| Accounts receivable | Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. | 86,367.27 | 68,983.64 | 86,367.27 | 43,183.64 |
| Accounts receivable | Guangzhou Diansheng Property Management Co., Ltd. | 660.00 | 19.80 | ||
| Accounts receivable | Prosperity Lamps and Components Ltd. | 8,037,364.18 | 241,120.93 | 4,487,199.01 | 134,615.97 |
| Accounts receivable | OSRAM (China) Lighting Co., Ltd. | 117,554.16 | 19,740.45 | 117,554.16 | 11,755.42 |
| Other accounts | Henan Rising High-tech | 117,000.00 | 117,000.00 | ||
| receivable | Investment Co., Ltd. | ||||
| Other accounts receivable | Guangdong Electronics Information Industry Group Ltd. | 5,000.00 | 150.00 | 5,000.00 | 500.00 |
| Prepayment | MTM Semiconductor Equipment Co., Ltd. | 221,368.00 | 141,840.00 | ||
| Prepayment | Prosperity Electrical (China) Co., Ltd. | 7,521.37 | 7,521.37 | ||
| Total | 8,475,834.98 | 330,014.82 | 6,584,615.15 | 307,055.03 |
(2) Accounts Payable
Unit: RMB
| Item | Connected party | Ending carrying amount | Beginning carrying amount |
| Accounts payable | Prosperity Lamps and Components Ltd. | 3,359,930.74 | 529,296.77 |
| Accounts payable | Prosperity Electrical (China) Co., Ltd. | 1,026,400.70 | 204,381.06 |
| Accounts payable | Foshan Nation Star Optoelectronics Co., Ltd. | 22,430,878.36 | 27,606,272.62 |
| Accounts payable | Hangzhou Times Lighting and Electrical Co., Ltd. | 138,597.54 | 467,927.45 |
| Accounts payable | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 2,035,725.44 | 1,806,876.22 |
| Other accounts payable | Prosperity Lamps and Components Ltd. | 463,625.16 | 438,666.14 |
| Other accounts payable | Prosperity Electrical (China) Co., Ltd. | 100,000.00 | 100,000.00 |
| Other accounts payable | MTM Semiconductor Equipment Co., Ltd. | 54,624.00 | 102,484.00 |
| Other accounts payable | Guangdong Electronic Technology Research Institute | 89,000.00 | |
| Other accounts payable | Guangdong Electronics Information Industry Group Ltd. | 2,777.76 | 11,111.12 |
| Advances from customers | Prosperity Electrical (China) Co., Ltd. | 40,279.46 | 45,694.74 |
| Total | 29,741,839.16 | 31,312,710.12 |
7. Commitments of Connected Party(1)
Commitment: commitments made in acquisition documents or shareholding alteration documentsCommitment maker: Controlling shareholderType of commitment: About avoidance of horizontal competition
Contents: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong RisingInvestment have made a commitment that the elimination of the horizontal competition between FoshanNationStar Optoelectronics Co., Ltd. and the Company through business integration or other ways orarrangements shall be completed before December 4, 2019.Date of commitment making: 4 December 2017Term of commitment: 24 monthsFulfillment: In execution(2)Commitment: commitments made in acquisition documents or shareholding alteration documentsCommitment maker: Controlling shareholderType of commitment: About avoidance of horizontal competitionElectronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising Investmenthave made more commitments as follows to avoid horizontal competition with the Company: 1. They shallconduct supervision and restraint on the production and operation activities of themselves and their relevantenterprises so that besides the enterprise above that is in horizontal competition with the Company for now, ifthe products or business of them or their relevant enterprises become the same with or similar to those of theCompany or its subsidiaries in the future, they shall take the following measures: (1) If the Company thinksnecessary, they and their relevant enterprises shall reduce and wholly transfer their relevant assets and business;and (2) If the Company thinks necessary, it is given the priority to acquire first, by proper means, the relevantassets and business of them and their relevant enterprises. 2. All the commitments made by them to eliminate oravoid horizontal competition with the Company are also applicable to their directly or indirectly controlledsubsidiaries. They are obliged to urge and make sure that other subsidiaries execute what’s prescribed in therelevant document and faithfully honor all the relevant commitments. 3. If they or their directly or indirectlycontrolled subsidiaries break the aforesaid commitments and thus cause a loss for the Company, they shallcompensate the Company on a rational basis.Date of commitment making: 4 December 2015Term of commitment: Long-standingFulfillment: In execution(3)Commitment: commitments made in acquisition documents or shareholding alteration documentsCommitment maker: Controlling shareholderType of commitment: About reduction and regulation of related-party transactionsContent: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong RisingInvestment have made a commitment that during their direct or indirect holding of the Company’s shares, theyshall 1. Strictly abide by the regulatory documents of the CSRC and the SZSE, the Company’s Articles ofAssociation, etc. and not harm the interests of the Company or other shareholders of the Company in theirproduction and operation activities by taking advantage of their position as the controlling shareholder andactual controller; 2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run orassociated companies (the “Relevant Enterprises” for short) will try their best to avoid or reduce related-partytransactions with the Company or the Company’s subsidiaries; 3. strictly follow the market principle of justness,fairness and equal value exchange for necessary and unavoidable related-party transactions between them andtheir Relevant Enterprises and the Company, and withdraw from voting when a related-party transaction withthem or their Relevant Enterprises is being voted on at a general meeting or a board meeting, and execute therelevant approval procedure and information disclosure duties pursuant to the applicable laws, regulations and
regulatory documents. Where the aforesaid commitments are broken and a loss is thus caused for theCompany, its subsidiaries or the Company’s other shareholders, they shall be obliged to compensate.Date of commitment making: 4 December 2015Term of commitment: Long-standingFulfillment: In execution(4)Commitment: commitments made in acquisition documents or shareholding alteration documentsCommitment maker: Controlling shareholderType of commitment: About independenceIn order to ensure the independence of the Company in business, personnel, asset, organization and finance,Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising Investmenthave made the following commitments: 1. They will ensure the independence of the Company in business: (1)They promise that the Company will have the assets, personnel, qualifications and capabilities for it to operateindependently as well as the ability of independent, sustainable operation in the market. (2) They promise not tointervene in the Company’s business activities other than the execution of their rights as the Company’sshareholders. (3) They promise that they and their related parties will not be engaged in business that issubstantially in competition with the Company’s business. And (4) They promise that they and their relatedparties will try their best to reduce related-party transactions between them and the Company; for necessaryand unavoidable related-party transactions, they promise to operate fairly following the market-orientedprinciple and at fair prices, and execute the transaction procedure and the duty of information disclosurepursuant to the applicable laws, regulations and regulatory documents. 2.They will ensure the independence ofthe Company in personnel: (1) They promise that the Company’s GM, deputy GMs, CFO, Company Secretary andother senior management personnel will work only for and receive remuneration from the Company, not holdingany positions in them or their other controlled subsidiaries other than director and supervisor. (2) They promisethe Company’s absolute independence from their related parties in labor, human resource and salarymanagement. And (3) They promise to follow the legal procedure in their recommendation of directors,supervisors and senior management personnel to the Company and not to hire or dismiss employees beyond theCompany’s Board of Directors and General Meeting. 3. They will ensure the independence and completeness ofthe Company in asset: (1) They promise that the Company will have a production system, an auxiliary productionsystem and supporting facilities for its operation; legally have the ownership or use rights of the land, plants,machines, trademarks, patents and non-patented technology in relation to its production and operation; andhave independent systems for the procurement of raw materials and the sale of its products. (2) They promisethat the Company will have independent and complete assets all under the Company’s control andindependently owned and operated by the Company. And (3) They promise that they and their other controlledsubsidiaries will not illegally occupy the Company’s funds and assets in any way, or use the Company’s assets toprovide guarantees for the debts of themselves or their other controlled subsidiaries with. 4. They will ensure theindependence of the Company in organization: (1) They promise that the Company has a sound corporategovernance structure as a joint-stock company with an independent and complete organization structure. (2)They promise that the operational and management organs within the Company will independently execute theirfunctions according to laws, regulations and the Company’s Articles of Association. 5. They will ensure theindependence of the Company in finance: (1) They promise that the Company will have an independent financialdepartment and financial accounting system with normative, independent financial accounting rules. (2) Theypromise that the Company will have independent bank accounts and not share bank accounts with its relatedparties. (3) They promise that the Company’s financial personnel do not hold concurrent positions in its related
parties. (4) They promise that the Company will independently pay its tax according to law. And (5) They promisethat the Company can make financial decisions independently and that they will not illegally intervene in theCompany’s use of its funds.Date of commitment making: 4 December 2015Term of commitment: Long-standingFulfillment: In execution
8. OtherNaught
XIII. Stock Payment
1. The Overall Situation of Stock Payment□ Applicable □ Not applicable2. The Stock Payment Settled in Equity□ Applicable □ Not applicable3. The Stock Payment Settled in Cash□ Applicable □ Not applicable4. Modification and Termination of the Stock PaymentNaught5. OtherNaught
XIV. Commitments and Contingency
1. Significant CommitmentsSignificant commitments on the balance sheet date
Naught2. Contingency(1) Significant Contingency on Balance Sheet DateNaught
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make RelevantStatements
There was no significant contingency in the Company.3. OtherNaught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted EventsNaught2. Profit DistributionNaught3. Sales ReturnNaught4. Notes to Other Events after Balance Sheet DateNaught
XVI. Other Significant Events
1. The Accounting Errors Correction in Previous PeriodNaught2. Debt RestructuringNaught3. Assets ReplacementNaught4. Pension PlanNaught
5. Discontinued OperationsNaught
6. Segment InformationNaught
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught8. OtherNaught
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. Accounts Receivable(1) Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable with significant single amount for which bad debt provision separately accrued | 9,975,968.91 | 0.97% | 9,975,968.91 | 100.00% | 10,061,641.64 | 1.26% | 10,061,641.64 | 100.00% | ||
| Accounts receivable withdrawal of bad debt provision of by credit risks characteristics: | 1,017,592,180.55 | 99.03% | 45,420,012.21 | 4.46% | 972,172,168.34 | 785,497,260.78 | 98.74% | 38,067,101.17 | 4.85% | 747,430,159.61 |
| Total | 1,027,568,149.46 | 100.00% | 55,395,981.12 | 5.39% | 972,172,168.34 | 795,558,902.42 | 100.00% | 48,128,742.81 | 6.05% | 747,430,159.61 |
Accounts receivable with significant single amount for which bad debt provision separately accrued at the period-end:
√ Applicable □ Not applicable
Unit: RMB
| Accounts receivable（by unit） | Ending balance | |||
| Accounts receivable | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
| Suzhou Mont Lighting Co., Ltd. | 9,975,968.91 | 9,975,968.91 | 100.00% | The debtor is not qualified to continuously produce for the time being for continuing losses caused by the scale and market. |
| Total | 9,975,968.91 | 9,975,968.91 | -- | -- |
In the groups, accounts receivable adopted aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
| Aging | Ending balance | ||
| Accounts receivable | Bad debt provision | Withdrawal proportion | |
| Subentry within 1 year | |||
| Within 1 year | 939,833,869.32 | 28,195,016.08 | 3.00% |
| Subtotal of within 1 year | 939,833,869.32 | 28,195,016.08 | 3.00% |
| 1 to 2 years | 31,496,786.31 | 3,149,678.63 | 10.00% |
| 2 to 3 years | 5,826,031.83 | 1,747,809.55 | 30.00% |
| 3 to 4 years | 795,562.73 | 397,781.36 | 50.00% |
| 4 to 5 years | 11,179,760.17 | 8,943,808.14 | 80.00% |
| Over 5 years | 2,985,918.45 | 2,985,918.45 | 100.00% |
| Total | 992,117,928.81 | 45,420,012.21 | 4.58% |
Notes to the determination basis for the group:
In the groups, accounts receivable adopted balance percentage method to withdraw bad debt provision:
□ Applicable √ Not applicableIn the groups, accounts receivable adopted other methods to withdraw bad debt provision:
Unit: RMB
| Name of the group | Ending balance | ||
| Accounts receivable | Bad debt provision | Withdrawal reason | |
| Internal business group | 25,474,251.74 | 0.00 | Intercourse fund among subsidiaries was not withdrawn |
| Total | 25,474,251.74 | 0.00 | |
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodThe withdrawal amount of the bad debt provision during the Reporting Period was of RMB7,267,309.90; the
amount of the reversed or collected part during the Reporting Period was of RMB 0.00.(3) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Other driblet small amount | 71.59 |
| Total | 71.59 |
(4) Top 5 Accounts Receivable in Ending Balance Collected according to the Arrears Party
Unit: RMB
| Name | Relationship with the Company | Ending balance | Aging | Proportion to the ending balance of accounts receivable (%) | Ending balance of bad debt provision |
| No. 1 | Non-connected party | 191,461,593.37 | Within 1 year | 18.63% | 5,743,847.80 |
| No. 2 | Non-connected party | 20,371,305.32 | Within 1 year | 1.98% | 611,139.16 |
| No. 3 | Non-connected party | 19,409,126.02 | Within 1 year | 1.89% | 582,273.78 |
| No. 4 | Non-connected party | 18,329,030.59 | Within 2 years | 1.78% | 612,257.46 |
| No. 5 | Non-connected party | 15,148,133.08 | Within 1 year | 1.47% | 454,443.99 |
| Total | -- | 264,719,188,.38 | -- | 25.76% | 8,003,962.19 |
(5) Accounts Receivable Derecognized due to the Transfer of Financial AssetsNaught(6) The Amount of Assets and Liabilities Generated from the Transfer and the Continued Involvement of
Accounts ReceivableNaught2. Other Accounts Receivable(1) Other Accounts Receivable Disclosed by Category
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Other accounts receivable withdrawn bad debt provision according to credit risks characteristics | 75,245,816.55 | 99.61% | 3,081,280.64 | 4.09% | 72,164,535.91 | 44,939,194.60 | 99.35% | 2,764,316.71 | 6.15% | 42,174,877.89 |
| Other accounts receivable with insignificant single amount for which bad debt provision separately accrued | 295,120.00 | 0.39% | 295,120.00 | 100.00% | 295,120.00 | 0.65% | 295,120.00 | 100.00% | ||
| Total | 75,540,936.55 | 100.00% | 3,376,400.64 | 4.47% | 72,164,535.91 | 45,234,314.60 | 100.00% | 3,059,436.71 | 6.76% | 42,174,877.89 |
Other accounts receivable with significant single amount for which bad debt provision separately accrued at theperiod-end:
□ Applicable √ not applicableIn the groups, other accounts receivable adopted aging analysis method to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
| Aging | Ending balance | ||
| Other accounts receivable | Bad debt provision | Withdrawal proportion | |
| Subentry within 1 year | |||
| Within 1 year | 31,953,716.08 | 958,611.48 | 3.00% |
| Subtotal of within 1 year | 31,953,716.08 | 958,611.48 | 3.00% |
| 1 to 2 years | 3,353,071.99 | 335,307.20 | 10.00% |
| 2 to 3 years | 167,542.81 | 50,262.84 | 30.00% |
| 3 to 4 years | 3,088,998.23 | 1,544,499.12 | 50.00% |
| 4 to 5 years | 2,000.00 | 1,600.00 | 80.00% |
| Over 5 years | 191,000.00 | 191,000.00 | 100.00% |
| Total | 38,756,329.11 | 3,081,280.64 | 7.95% |
Notes to the determination basis for the Group:
In the groups, other accounts receivable adopted balance percentage method to withdraw bad debt provision□ Applicable √ Not applicableIn the groups, other accounts receivable adopted other methods to withdraw bad debt provision:
√ Applicable □ Not applicable
Unit: RMB
| Name of the group | Ending balance | ||
| Other accounts receivable | Bad debt provision | Withdrawal reason | |
| Internal business group | 36,489,487.44 | 0.00 | Intercourse fund among subsidiaries was not withdrawn |
| Total | 36,489,487.44 | 0.00 | |
(2) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodThe withdrawal amount of the bad debt provision during the Reporting Period was of RMB 316,963.93; the
amount of the reversed or collected part during the Reporting Period was of RMB0.00.Naught
(3) Other Account Receivable Classified by Account Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Internal business group | 36,784,607.44 | 21,987,838.89 |
| VAT export tax refunds | 18,007,536.67 | 5,712,812.04 |
| Performance bond | 4,007,646.20 | 4,377,639.20 |
| Staff borrowings and petty cash | 8,029,988.61 | 4,142,205.92 |
| Rental fees and Water & electricity fees | 420,000.59 | 1,293,281.97 |
| Advance money for street light construction | 3,777,672.16 | 3,777,672.16 |
| Other | 4,513,484.88 | 3,942,864.42 |
| Total | 75,540,936.55 | 45,234,314.60 |
(4) The Top Five Other Account Receivable Classified by Debtor at Period-end
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to total ending balance of other accounts receivable | Ending balance of bad debt provision |
| No. 1 | VAT export tax refunds | 18,007,536.67 | Within 1 year | 23.84% | 540,226.10 |
| No. 2 | Advance money for street light construction | 3,777,672.16 | Within 4 years | 5.00% | 1,299,397.36 |
| No. 3 | Others | 2,122,656.00 | Within 1 year | 2.81% | 63,679.68 |
| No. 4 | Margin | 2,098,341.00 | 1 to 2 years | 2.78% | 209,834.10 |
| No. 5 | Provident fund | 1,270,550.18 | Within 1 year | 1.68% | 38,116.51 |
| Total | -- | 27,276,756.01 | -- | 36.11% | 2,151,253.75 |
(5) Account Receivable Involving Government SubsidiesNaught(6) Other Accounts Receivable Derecognized due to the Transfer of Financial AssetsNaught(7) Amount of Assets and Liabilities Generated from the Transfer and Continuous Involvement of Other
Accounts ReceivableNaught
3. Long-term Equity Investment
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserve | Carrying value | Carrying amount | Depreciation reserve | Carrying value | |
| Investment to subsidiaries | 508,153,102.26 | 24,360,000.00 | 483,793,102.26 | 508,153,102.26 | 24,360,000.00 | 483,793,102.26 |
| Investment to joint ventures and associated enterprises | 176,473,300.95 | 176,473,300.95 | 179,414,105.14 | 179,414,105.14 | ||
| Total | 684,626,403.21 | 24,360,000.00 | 660,266,403.21 | 687,567,207.40 | 24,360,000.00 | 663,207,207.40 |
(1) Investment to the Subsidiary
Unit: RMB
| Investee | Beginning balance | Increase | Decrease | Ending balance | Depreciation reserve withdrawn | Ending balance of depreciation reserve |
| Foshan Chansheng Electronic Ballast Co., Ltd. | 2,744,500.00 | 2,744,500.00 | ||||
| FSL Chanchang Optoelectronics Co., Ltd. | 82,507,350.00 | 82,507,350.00 | ||||
| Foshan Taimei Times Lamps and Lanterns Co., Ltd. | 350,000.00 | 350,000.00 | ||||
| Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. | 72,000,000.00 | 72,000,000.00 | ||||
| Foshan Electrical & Lighting (Xinxiang) Co., Ltd. | 35,418,439.76 | 35,418,439.76 | ||||
| Guangdong Fozhao New Light Sources Technology Co., Ltd. | 50,077,000.00 | 50,077,000.00 | ||||
| Guangdong Fozhao Financing | 200,000,000.00 | 200,000,000.00 |
| Leasing Co., Ltd. | ||||||
| Foshan Lighting Lamps & Components Co., Ltd. | 15,000,000.00 | 15,000,000.00 | ||||
| FSL Zhida Electric Technology Co., Ltd. | 25,500,000.00 | 25,500,000.00 | ||||
| FSL Lighting GMBH | 195,812.50 | 195,812.50 | ||||
| Suzhou Mont Lighting Co., Ltd. | 24,360,000.00 | 24,360,000.00 | 24,360,000.00 | |||
| Total | 508,153,102.26 | 508,153,102.26 | 24,360,000.00 |
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
| Investee | Beginning balance | Increase/decrease | Ending balance | Ending balance of depreciation reserve | |||||||
| Additional investment | Reduced investment | Gains and losses recognized under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Primatronix (Nanho) Electronics Ltd. | 179,414,105.14 | 179,781.56 | 3,120,585.75 | 176,473,300.95 | |||||||
| Subtotal | 179,414,105.14 | 179,781.56 | 3,120,585.75 | 176,473,300.95 | |||||||
| Total | 179,414,105.14 | 179,781.56 | 3,120,585.75 | 176,473,300.95 | |||||||
(3)Other NotesNaught
4. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 1,951,987,821.57 | 1,545,234,231.64 | 1,932,419,061.23 | 1,513,940,853.47 |
| Other operations | 52,300,623.19 | 42,160,088.89 | 47,777,343.06 | 36,016,802.63 |
| Total | 2,004,288,444.76 | 1,587,394,320.53 | 1,980,196,404.29 | 1,549,957,656.10 |
5. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | 179,781.56 | 1,543,965.79 |
| Investment income from the holding of available-for-sale financial assets | 10,971,417.60 | 6,560,422.50 |
| Income received from financial products and structural deposits | 9,886,641.16 | 5,299,088.41 |
| Other | -500,000.22 | |
| Total | 21,037,840.32 | 12,903,476.48 |
6. OtherNought
XVIII. Supplementary Materials
1. Items and Amounts of Non-recurring Profit or Loss√ Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gains/losses on the disposal of non-current assets | -70,182.97 | |
| Government subsidies recorded into the current gains and losses (excluding the government subsidies that are closely relative to business and enjoyed in normed way or quantitatively in accordance with the national standards) | 914,699.96 | |
| Other non-operating income and expense other than the above | 633,590.02 | |
| Less: Income tax effects | 228,691.99 |
| Non-controlling interests effects | 195.91 | |
| Total | 1,249,219.11 | -- |
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition inthe Explanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Non-recurring Gains and Losses, or classifies any extraordinary gain/loss item mentioned in the saidexplanatory announcement as a recurrent gain/loss item□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of Reporting Period | Weighted average ROE (%) | EPS (Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to ordinary shareholders of the Company | 5.32% | 0.1638 | 0.1638 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit and loss | 5.29% | 0.1630 | 0.1630 |
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards□ Applicable √ Not applicable(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards□ Applicable √ Not applicable(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
Naught4. OtherNaught