Financial StatementsI Auditor’s ReportWhether the interim report has been audited?
□Yes √ No
The interim report of the Company has not been audited.II Financial StatementsCurrency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
Unit: RMB
| Item | 30 June 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 829,509,716.65 | 896,646,719.87 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Trading financial assets | ||
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | ||
| Notes receivable | 135,766,529.32 | 107,506,613.50 |
| Accounts receivable | 765,827,365.76 | 834,420,596.05 |
| Financing backed by accounts receivable | ||
| Prepayments | 11,891,130.86 | 13,811,905.18 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 27,065,266.07 | 21,745,690.53 |
| Including: Interest receivable | 5,828,623.70 | 5,152,364.04 |
| Dividends receivable |
| Financial assets purchased under resale agreements | ||
| Inventories | 644,986,460.94 | 767,319,599.00 |
| Contract assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 913,945,157.63 | 864,093,663.30 |
| Total current assets | 3,328,991,627.23 | 3,505,544,787.43 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Available-for-sale financial assets | 897,716,590.20 | |
| Investments in other debt obligations | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 180,122,685.92 | 182,458,559.69 |
| Investments in other equity instruments | 964,212,719.39 | |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 586,093,658.59 | 512,106,912.39 |
| Construction in progress | 158,184,271.59 | 224,624,447.16 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 170,510,917.01 | 172,725,277.21 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 8,361,600.95 | 6,852,985.35 |
| Deferred income tax assets | 34,504,330.96 | 37,831,704.45 |
| Other non-current assets | 47,366,671.02 | 48,305,435.42 |
| Total non-current assets | 2,149,356,855.43 | 2,082,621,911.87 |
| Total assets | 5,478,348,482.66 | 5,588,166,699.30 |
| Current liabilities: | ||
| Short-term borrowings |
| Borrowings from central bank | ||
| Interbank loans obtained | ||
| Trading financial liabilities | 1,473,400.00 | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | |
| Derivative financial liabilities | ||
| Notes payable | 375,906,405.75 | 452,683,676.97 |
| Accounts payable | 508,983,045.12 | 532,597,143.95 |
| Advances from customers | 35,916,666.09 | 43,850,788.04 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Payroll payable | 64,798,848.43 | 96,088,621.59 |
| Taxes payable | 28,472,607.76 | 25,354,466.37 |
| Other payables | 47,164,268.80 | 43,115,011.68 |
| Including: Interest payable | ||
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Contract liabilities | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 1,062,715,241.95 | 1,194,166,908.60 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term payroll payable | ||
| Provisions | ||
| Deferred income | 77,500.35 | 155,000.31 |
| Deferred income tax liabilities | 63,404,928.38 | 52,530,509.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 63,482,428.73 | 52,685,509.31 |
| Total liabilities | 1,126,197,670.68 | 1,246,852,417.91 |
| Owners’ equity: | ||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 158,608,173.07 | 158,608,173.07 |
| Less: Treasury stock | ||
| Other comprehensive income | 359,303,760.45 | 297,667,872.80 |
| Specific reserve | ||
| Surplus reserves | 809,456,186.20 | 809,456,186.20 |
| General reserve | ||
| Retained earnings | 1,603,158,758.12 | 1,654,181,032.39 |
| Total equity attributable to owners of the Company as the parent | 4,329,873,031.84 | 4,319,259,418.46 |
| Non-controlling interests | 22,277,780.14 | 22,054,862.93 |
| Total owners’ equity | 4,352,150,811.98 | 4,341,314,281.39 |
| Total liabilities and owners’ equity | 5,478,348,482.66 | 5,588,166,699.30 |
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 2019 | 31 December 2018 |
| Current assets: |
| Monetary capital | 777,873,712.87 | 848,949,693.91 |
| Trading financial assets | ||
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | ||
| Notes receivable | 134,345,022.32 | 104,945,398.61 |
| Accounts receivable | 709,370,406.65 | 795,897,932.65 |
| Financings backed by accounts receivable | ||
| Prepayments | 26,317,689.21 | 25,444,445.34 |
| Other receivables | 49,579,918.55 | 43,538,848.72 |
| Including: Interest receivable | 5,828,623.70 | 5,152,364.04 |
| Dividends receivable | ||
| Inventories | 575,485,441.72 | 692,681,479.03 |
| Contract assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 908,608,201.81 | 856,504,839.81 |
| Total current assets | 3,181,580,393.13 | 3,367,962,638.07 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Available-for-sale financial assets | 897,716,590.20 | |
| Investments in other debt obligations | ||
| Held-to-maturity investments | ||
| Long-term receivables | ||
| Long-term equity investments | 463,915,788.18 | 466,251,661.95 |
| Investments in other equity instruments | 964,212,719.39 | |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 528,301,991.89 | 427,947,613.74 |
| Construction in progress | 156,307,643.11 | 222,570,503.14 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets |
| Intangible assets | 127,512,566.55 | 129,452,067.42 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 5,477,080.74 | 5,106,268.25 |
| Deferred income tax assets | 32,238,587.52 | 35,908,741.15 |
| Other non-current assets | 45,858,121.02 | 46,852,235.42 |
| Total non-current assets | 2,323,824,498.40 | 2,231,805,681.27 |
| Total assets | 5,505,404,891.53 | 5,599,768,319.34 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Trading financial liabilities | 1,473,400.00 | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | |
| Derivative financial liabilities | ||
| Notes payable | 375,906,405.75 | 452,683,676.97 |
| Accounts payable | 668,029,057.46 | 681,490,174.69 |
| Advances from customers | 31,494,990.99 | 41,912,301.85 |
| Contract liabilities | ||
| Payroll payable | 53,654,091.41 | 84,220,746.16 |
| Taxes payable | 26,618,163.16 | 17,528,644.83 |
| Other payables | 129,244,340.97 | 114,073,355.23 |
| Including: Interest payable | ||
| Dividends payable | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 1,286,420,449.74 | 1,392,386,099.73 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities |
| Long-term payables | ||
| Long-term payroll payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 63,404,928.38 | 52,530,509.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 63,404,928.38 | 52,530,509.00 |
| Total liabilities | 1,349,825,378.12 | 1,444,916,608.73 |
| Owners’ equity: | ||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 166,211,779.15 | 166,211,779.15 |
| Less: Treasury stock | ||
| Other comprehensive income | 359,294,594.15 | 297,672,884.34 |
| Specific reserve | ||
| Surplus reserves | 809,456,186.20 | 809,456,186.20 |
| Retained earnings | 1,421,270,799.91 | 1,482,164,706.92 |
| Total owners’ equity | 4,155,579,513.41 | 4,154,851,710.61 |
| Total liabilities and owners’ equity | 5,505,404,891.53 | 5,599,768,319.34 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Revenue | 1,687,184,660.86 | 2,064,779,289.99 |
| Including: Operating revenue | 1,687,184,660.86 | 2,064,779,289.99 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 1,529,073,323.52 | 1,796,559,951.51 |
| Including: Cost of sales | 1,297,336,713.77 | 1,579,291,867.89 |
| 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 surcharges | 20,836,268.74 | 21,962,518.24 |
| Selling expense | 123,410,566.38 | 103,917,010.47 |
| Administrative expense | 67,537,179.69 | 85,530,538.74 |
| R&D expense | 29,860,632.61 | 18,943,492.78 |
| Finance costs | -9,908,037.67 | -13,085,476.61 |
| Including: Interest expense | ||
| Interest income | ||
| Add: Other income | 5,523,870.00 | 1,018,385.17 |
| Return on investment (“-” for loss) | 43,839,659.74 | 24,509,870.36 |
| Including: Share of profit or loss of joint ventures and associates | 784,711.98 | 179,781.56 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Foreign exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -996,200.00 | |
| Credit impairment loss (“-” for loss) | -1,036,971.94 | |
| Asset impairment loss (“-” for loss) | -12,239,244.21 | -16,006,869.83 |
| Asset disposal income (“-” for |
| loss) | ||
| 3. Operating profit (“-” for loss) | 193,202,450.93 | 277,740,724.18 |
| Add: Non-operating income | 1,941,872.57 | 1,669,856.43 |
| Less: Non-operating expense | 478,391.97 | 191,749.42 |
| 4. Profit before tax (“-” for loss) | 194,665,931.53 | 279,218,831.19 |
| Less: Income tax expense | 27,167,288.57 | 47,044,145.70 |
| 5. Net profit (“-” for net loss) | 167,498,642.96 | 232,174,685.49 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 167,498,642.96 | 232,174,685.49 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to owners of the Company as the parent | 167,275,725.75 | 229,277,455.82 |
| 5.2.1 Net profit attributable to non-controlling interests | 222,917.21 | 2,897,229.67 |
| 6. Other comprehensive income, net of tax | 61,635,887.65 | -322,975,351.39 |
| Attributable to owners of the Company as the parent | 61,635,887.65 | -322,975,351.39 |
| 6.1 Items that will not be reclassified to profit or loss | 61,621,709.81 | |
| 6.1.1 Changes caused by remeasurements on defined benefit pension schemes | ||
| 6.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 6.1.3 Changes in the fair value of investments in other equity instruments | 61,621,709.81 | |
| 6.1.4 Changes in the fair value of the company’s credit risks | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 14,177.84 | -322,975,351.39 |
| 6.2.1 Other comprehensive income that will be reclassified to profit |
| or loss under the equity method | ||
| 6.2.2 Changes in the fair value of investments in other debt obligations | ||
| 6.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | -322,972,909.70 | |
| 6.2.4 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 6.2.6 Allowance for credit impairments in investments in other debt obligations | ||
| 6.2.7 Reserve for cash flow hedges | ||
| 6.2.8 Differences arising from the translation of foreign currency-denominated financial statements | 14,177.84 | -2,441.69 |
| 6.2.9 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 229,134,530.61 | -90,800,665.90 |
| Attributable to owners of the Company as the parent | 228,911,613.40 | -93,697,895.57 |
| Attributable to non-controlling interests | 222,917.21 | 2,897,229.67 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1195 | 0.1638 |
| 8.2 Diluted earnings per share | 0.1195 | 0.1638 |
Where business combinations under common control occurred in the current period, the net profit achieved by the acquirees beforethe combinations was RMB0.00 , with the amount for last year being RMB0.00 .Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Operating revenue | 1,635,659,167.96 | 2,004,288,444.76 |
| Less: Cost of sales | 1,284,411,581.81 | 1,587,394,320.53 |
| Taxes and surcharges | 17,949,984.61 | 17,214,406.11 |
| Selling expense | 114,023,284.09 | 91,117,192.72 |
| Administrative expense | 58,470,337.78 | 77,627,911.90 |
| R&D expense | 28,129,639.08 | 18,613,246.57 |
| Finance costs | -9,671,203.12 | -12,655,059.12 |
| Including: Interest expense | ||
| Interest income | ||
| Add: Other income | 5,323,870.00 | 561,343.06 |
| Return on investment (“-” for loss) | 44,169,887.94 | 21,037,840.32 |
| Including: Share of profit or loss of joint ventures and associates | 784,711.98 | 179,781.56 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -996,200.00 | |
| Credit impairment loss (“-” for loss) | -99,161.29 | |
| Asset impairment loss (“-” for loss) | -11,804,419.91 | -15,224,655.05 |
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 178,939,520.45 | 231,350,954.38 |
| Add: Non-operating income | 1,748,491.88 | 1,572,451.59 |
| Less: Non-operating expense | 387,894.46 | 164,104.09 |
| 3. Profit before tax (“-” for loss) | 180,300,117.87 | 232,759,301.88 |
| Less: Income tax expense | 22,896,024.86 | 32,947,939.09 |
| 4. Net profit (“-” for net loss) | 157,404,093.01 | 199,811,362.79 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 157,404,093.01 | 199,811,362.79 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | 61,621,709.81 | -322,972,909.70 |
| 5.1 Items that will not be reclassified to profit or loss | 61,621,709.81 | |
| 5.1.1 Changes caused by remeasurements on defined benefit pension schemes | ||
| 5.1.2 Other comprehensive income that will not be reclassified to profit or loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | 61,621,709.81 | |
| 5.1.4 Changes in the fair value of the company’s credit risks | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | -322,972,909.70 | |
| 5.2.1 Other comprehensive income that will be reclassified to profit or loss under the equity method | ||
| 5.2.2 Changes in the fair value of investments in other debt obligations | ||
| 5.2.3 Gain/Loss on changes in the fair value of available-for-sale financial assets | -322,972,909.70 | |
| 5.2.4 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.5 Gain/Loss arising from the reclassification of held-to-maturity investments to available-for-sale financial assets | ||
| 5.2.6 Allowance for credit impairments in investments in other debt obligations |
| 5.2.7 Reserve for cash flow hedges | ||
| 5.2.8 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.9 Other | ||
| 6. Total comprehensive income | 219,025,802.82 | -123,161,546.91 |
| 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 Qionglan
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,751,423,769.24 | 1,769,237,743.67 |
| Net increase in customer deposits and interbank deposits | ||
| Net increase in borrowings 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 | ||
| Interest, handling charges and commissions received | ||
| Net increase in interbank loans obtained | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds for acting trading of |
| securities | ||
| Tax rebates | 48,922,234.35 | 47,287,499.42 |
| Cash generated from other operating activities | 45,162,461.57 | 33,545,832.35 |
| Subtotal of cash generated from operating activities | 1,845,508,465.16 | 1,850,071,075.44 |
| Payments for commodities and services | 1,126,149,726.07 | 1,131,421,056.92 |
| 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 | ||
| Net increase in financial assets held for trading | ||
| Net increase in interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 322,785,746.27 | 339,556,840.55 |
| Taxes paid | 94,770,787.34 | 137,020,623.78 |
| Cash used in other operating activities | 111,120,372.00 | 97,348,775.81 |
| Subtotal of cash used in operating activities | 1,654,826,631.68 | 1,705,347,297.06 |
| Net cash generated from/used in operating activities | 190,681,833.48 | 144,723,778.38 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 6,000,000.00 | 660,000,000.00 |
| Return on investment | 48,172,890.30 | 34,539,472.29 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 40,834.00 | |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing |
| activities | ||
| Subtotal of cash generated from investing activities | 54,213,724.30 | 694,539,472.29 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 18,563,706.98 | 90,700,439.05 |
| Payments for investments | 35,000,000.00 | |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 3,304,699.80 | |
| Subtotal of cash used in investing activities | 53,563,706.98 | 94,005,138.85 |
| Net cash generated from/used in investing activities | 650,017.32 | 600,534,333.44 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Borrowings obtained | ||
| Net proceeds from issuance of bonds | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayments of borrowings | ||
| Payments for interest and dividends | 218,298,000.02 | 405,163,764.00 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 218,298,000.02 | 405,163,764.00 |
| Net cash generated from/used in financing activities | -218,298,000.02 | -405,163,764.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -1,156,757.42 | 1,385,343.10 |
| 5. Net increase in cash and cash equivalents | -28,122,906.64 | 341,479,690.92 |
| Add: Cash and cash equivalents, beginning of the period | 795,285,756.38 | 570,184,208.96 |
| 6. Cash and cash equivalents, end of the period | 767,162,849.74 | 911,663,899.88 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2019 | H1 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,691,951,258.99 | 1,712,676,401.03 |
| Tax rebates | 48,910,795.69 | 47,263,864.23 |
| Cash generated from other operating activities | 34,052,232.29 | 26,388,452.49 |
| Subtotal of cash generated from operating activities | 1,774,914,286.97 | 1,786,328,717.75 |
| Payments for commodities and services | 1,178,508,853.41 | 1,263,659,844.11 |
| Cash paid to and for employees | 244,677,337.79 | 209,185,383.63 |
| Taxes paid | 65,955,849.88 | 87,060,201.23 |
| Cash used in other operating activities | 100,456,711.55 | 85,851,338.88 |
| Subtotal of cash used in operating activities | 1,589,598,752.63 | 1,645,756,767.85 |
| Net cash generated from/used in operating activities | 185,315,534.34 | 140,571,949.90 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 6,000,000.00 | 440,000,000.00 |
| Return on investment | 48,503,118.50 | 30,667,499.69 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 40,330.00 | |
| Net proceeds from the disposal of |
| subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 54,543,448.50 | 470,667,499.69 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 17,446,155.95 | 85,557,155.41 |
| Payments for investments | 35,000,000.00 | |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 3,304,699.80 | |
| Subtotal of cash used in investing activities | 52,446,155.95 | 88,861,855.21 |
| Net cash generated from/used in investing activities | 2,097,292.55 | 381,805,644.48 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings obtained | ||
| Net proceeds from the issuance of bonds | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayments of borrowings | ||
| Payments for interest and dividends | 218,298,000.02 | 405,163,764.00 |
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 218,298,000.02 | 405,163,764.00 |
| Net cash generated from/used in financing activities | -218,298,000.02 | -405,163,764.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | -1,176,711.33 | 1,384,289.90 |
| 5. Net increase in cash and cash equivalents | -32,061,884.46 | 118,598,120.28 |
| Add: Cash and cash equivalents, beginning of the period | 747,588,730.42 | 502,169,100.40 |
| 6. Cash and cash equivalents, end of the period | 715,526,845.96 | 620,767,220.68 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
7. Consolidated Statements of Changes in Owners’ Equity
H1 2019
Unit: RMB
| Item | H1 2019 | ||||||||||||||
| 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 stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balances as at the end of the prior year | 1,399,346,154.00 | 158,608,173.07 | 297,667,872.80 | 809,456,186.20 | 1,654,181,032.39 | 4,319,259,418.46 | 22,054,862.93 | 4,341,314,281.39 | |||||||
| Add: Adjustments for changed accounting policies | |||||||||||||||
| Adjustments for corrections of previous errors | |||||||||||||||
| Adjustments for business combinations under common control | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balances as at the beginning | 1,399,346, | 158,608,173. | 297,667,872. | 809,456,186. | 1,654,181,03 | 4,319,259,41 | 22,054,862.9 | 4,341,314,28 | |||||||
| of the year | 154.00 | 07 | 80 | 20 | 2.39 | 8.46 | 3 | 1.39 | |||||||
| 3. Increase/ decrease in the period (“-” for decrease) | 61,635,887.65 | -51,022,274.27 | 10,613,613.38 | 222,917.21 | 10,836,530.59 | ||||||||||
| 3.1 Total comprehensive income | 61,635,887.65 | 167,275,725.75 | 228,911,613.40 | 222,917.21 | 229,134,530.61 | ||||||||||
| 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 | -218,298,000.02 | -218,298,000.02 | -218,298,000.02 | ||||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||||
| 3.3.3 | -218,2 | -218,2 | -218,2 |
| Appropriation to owners (or shareholders) | 98,000.02 | 98,000.02 | 98,000.02 | ||||||||||||
| 3.3.4 Other | |||||||||||||||
| 3.4 Transfers within owners’ equity | |||||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Loss offset by surplus reserves | |||||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Other | |||||||||||||||
| 3.5 Specific reserve | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used |
| in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balances as at the end of the period | 1,399,346,154.00 | 158,608,173.07 | 359,303,760.45 | 809,456,186.20 | 1,603,158,758.12 | 4,329,873,031.84 | 22,277,780.14 | 4,352,150,811.98 |
H1 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 stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balances as at the end of the prior year | 1,272,132,868.00 | 285,821,459.07 | 716,607,333.78 | 772,953,002.36 | 1,731,600,796.18 | 4,779,115,459.39 | 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 at the 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 | 4,779,115,459.39 | 20,519,660.40 | 4,799,635,119.79 | |||||||
| 3. Increase/ | 127,2 | -127,2 | -322,9 | -189,2 | -512,2 | 2,897,2 | -509,33 | ||||||||
| decrease in the period (“-” for decrease) | 13,286.00 | 13,286.00 | 75,351.39 | 54,257.75 | 29,609.14 | 29.67 | 2,379.47 | ||||||||
| 3.1 Total comprehensive income | -322,975,351.39 | 229,277,455.82 | -93,697,895.57 | 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 | -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 | -418,531,713.57 | -418,531,713.57 | -418,531,713.57 |
| shareholders) | |||||||||||||||
| 3.3.4 Other | |||||||||||||||
| 3.4 Transfers 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 Loss offset by surplus reserves | |||||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Other | |||||||||||||||
| 3.5 Specific reserve | |||||||||||||||
| 3.5.1 |
| Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balances as at the 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 | 4,266,885,850.25 | 23,416,890.07 | 4,290,302,740.32 |
Legal representative: He Yong General Manager: Liu Xingming Chief Financial Officer: Tang Qionglan
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2019
Unit: RMB
| Item | H1 2019 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balances as at the end of the prior year | 1,399,346,154.00 | 166,211,779.15 | 297,672,884.34 | 809,456,186.20 | 1,482,164,706.92 | 4,154,851,710.61 | ||||||
| Add: Adjustments for changed accounting policies | ||||||||||||
| Adjustments for corrections of previous errors | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balances as at the beginning of the year | 1,399,346,154.00 | 166,211,779.15 | 297,672,884.34 | 809,456,186.20 | 1,482,164,706.92 | 4,154,851,710.61 | ||||||
| 3. Increase/ decrease in the period (“-” for | 61,621,709.81 | -60,893,907.01 | 727,802.80 | |||||||||
| decrease) | ||||||||||||
| 3.1 Total comprehensive income | 61,621,709.81 | 157,404,093.01 | 219,025,802.82 | |||||||||
| 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 | -218,298,000.02 | -218,298,000.02 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -218,298,000.02 | -218,298,000.02 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or share capital) from |
| capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balances as at the end of the period | 1,399,346,154.00 | 166,211,779.15 | 359,294,594.15 | 809,456,186.20 | 1,421,270,799.91 | 4,155,579,513.41 |
H1 2018
Unit: RMB
| Item | H1 2018 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balances as at the end of the 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 at the 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 Transfers 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 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit pension schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income |
| transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balances as at the 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 |
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 limitedcompany jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed BrickField, and Foshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval of YGS(1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System ofGuangdong Province and the Economic System Reform Commission of Guangdong Province, is an enterprisewith its shares held by both the corporate and the natural persons. As approved by China Securities RegulatoryCommission with Document (1993) No. 33, the Company publicly issued 19.3 million shares of social publicshares (A shares) to the public in October 1993, and was listed in Shenzhen Stock Exchange for trade on 23November 1993. The Company was approved to issue 50,000,000 B shares on 23 July 1995. And, as approved tochange into a foreign-invested stock limited company on 26 August 1996 by (1996) WJMZEHZ No. 466Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China.On 11 December 2000, as approved by China Securities Regulatory Commission with ZJGS Zi [2000] No. 175Document, the Company additionally issued 55,000,000 A shares. At approved by the Shareholders’ GeneralMeeting 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 products
and 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 XXX August 2019.The consolidation scope of the financial statement during the Reporting Period including the Company and the 9subsidiaries such as FSL Chanchang Optoelectronics Co., Ltd. ( referred to as “Chanchang Company”), FoshanChansheng Electronic Ballast Co., Ltd. ( referred to as “Chansheng Company”), Foshan Taimei Times Lamps andLanterns Co., Ltd. ( referred to as “Taimei Company”), Nanjing Fozhao Lighting Components Co., Ltd. ( referredto as “Nanjing Fozhao”), FSL (Xinxiang) Lighting Co., Ltd. ( referred to as “Xinxiang Company”), FoshanElectrical and Lighting New Light Source Technology Co., Ltd. ( referred to as “New Light Source Company”),Foshan Lighting Lamps & Components Co., Ltd. ( referred to as “Lamps & Components Company”) and FSLZhida Electric Technology Co., Ltd ( referred to as “Zhida Electric Technology”), and FSL LIGHTING GmbH(referred to as “FSL LIGHTING”).The consolidation scope of the financial statements decreases one subsidiary that is Guangdong Fozhao FinancialLeasing Co., Ltd. For details, see relevant contents in Note VIII “Changes in the consolidation scope”, and NoteIX “Equities in other entities”.IV Basis for Preparation of Financial Statements
1. Preparation Basis
The financial statements of the Company are based on the continuing operation, and are confirmed and measuredaccording to the actual transactions and events, the Accounting Standards for Business Enterprises - BasicStandards, other various specific accounting standards, the application guide, the interpretation of accountingstandards for business enterprises (hereinafter referred to as the Accounting Standards for Business Enterprises).And based on the following important accounting policies, and accounting estimations, they are preparedaccording to the relevant regulations of Rules for the Information Disclosure of Companies Publicly IssuingSecurities No. 15 - General Provisions on Financial Reporting of China Securities Regulatory Commission(Revised in 2014). Except the Cash Flow Statement prepared under the principle of cash basis, the rest of financialstatement 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. Continuation
The 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 on thebasis of continuing operation.
V Important Accounting Policies and EstimationsReminders 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. Account
Receivables), pricing method of inventory (Note 15. Inventory), depreciation of fixed assets and amortization ofintangible assets (Note 24. Fixed Assets and Note 30. Intangible Assets), and recognized time point of income(Note 39. 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 Period
A 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 Currency
Renminbi is the recording currency for the statements of the Company, and the financial statements are listed andpresented by Renminbi.
5. Accounting Treatment Methods for Business Combinations under the Same Control or not under theSame Control
1. Business Combinations under the Same Control
For the merger of enterprises under the same control, if the consideration of the merging enterprise is that it makespayment in cash, transfers non-cash assets or bear its debts, it shall, on the date of merger, regard the share of thebook value among final controller’s consolidated financial statement of the owner's equity of the merged enterpriseas the initial cost of the long-term equity investment. The difference between the initial cost of the long-term equityinvestment and the payment in cash, non-cash assets transferred as well as the book value of the debts borne by themerging party shall offset against the capital reserve. If the capital reserve is insufficient to dilute, the retainedearnings shall be adjusted.If the consideration of the merging enterprise is that it issues equity securities, it shall, on the date of merger, regardthe 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 total face value of the stocks issuedshall be regarded as the capital stock, while the difference between the initial cost of the long-term equityinvestment and total face value of the shares issued shall offset against the capital reserve. If the capital reserve isinsufficient to dilute, the retained earnings shall be adjusted.
2. Business Combinations not under the Same Control
The Company measured the paid assets as the consideration of business combination and liabilities happened orundertaken by fair value. The difference between fair value and its book value shall be included into the current
losses and gains. The Company distributed combined cost on the purchasing date.The difference of the combination cost greater than the fair value of the identifiable net assets of the acquireeacquired is recognized as goodwill; the difference of the combination cost less than the fair value of the identifiablenet assets of the acquiree acquired is included into current losses and gains.As for the assets other than intangible assets acquired from the acquiree in a business combination (not limited to theassets which have been recognized by the acquiree), if the economic benefits brought by them are likely to flow intothe Company and their fair values can be measured reliably, they shall be separately recognized and measured inlight of their fair values; intangible asset whose fair value can be measured reliably shall be separately recognized asan intangible asset and shall measured in light of its fair value; As for the liabilities other than contingent liabilitiesacquired from the acquiree, if the performance of the relevant obligations is likely to result in any out-flow ofeconomic benefits from the Company, and their fair values can be measured reliably, they shall be separatelyrecognized and measured in light of their fair values; As for the contingent liabilities of the acquiree, if their fairvalues can be measured reliably, they shall separately recognized as liabilities and shall be measured in light of theirfair values.
6. Methods for Preparing Consolidated Financial Statements
1. Principle of Determining the Scope of Consolidation
The scope of consolidation of the consolidated financial statements of the Company is determined on the basis ofcontrol. Control means that the investors has the right to invest in the investee and enjoy a variable return throughthe participation of the relevant activities of the investee, and has the ability to use the power over the investee toaffect the amount of its return. The Company includes the subsidiaries with actual right of control (includingseparate 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 policies andfiscal 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 toother 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 more thanthe share enjoyed by the minority shareholders of the subsidiary in the initial shareholders’ equity, if the Articlesof Corporation or Agreement didn’t stipulate that minority shareholders should be responsible for it, then thebalance need to offset the shareholders’ equity of the Company; if the Articles of Corporation or Agreementstipulated that minority shareholders should be responsible for it, then the balance need to offset the minorityshareholders’ 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 same control,then initial book balance of consolidated balance sheet need to be adjusted; the income, expenses, and profits of
subsidiaries from the combination’s period-begin to the end of the reporting period need to be included intoconsolidated income statement; the cash flow of subsidiaries from the combination’s period-begin to the end ofthe reporting period need to be included into consolidated cash flow statement. if the subsidiaries were added dueto Business combinations not under the same control, then initial book balance of consolidated balance sheetdoesn’t need to be adjusted; the income, expenses, and profits of subsidiaries from the purchasing date to the endof the reporting period need to be included into consolidated income statement; the cash flow of subsidiaries frompurchasing date to the end of the reporting period need to be included into consolidated cash flow statement.During the Reporting Period, if the Company disposed the subsidiaries, then the income, expenses, and profits 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 items relatedto 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 holding share;
(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 the jointventures as the long-term equity investment and be measured according g to the said methods of the notes of thelong-term equity investment of the financial statement.
8. Recognition Standard for Cash and Cash Equivalents
In the Company’s understanding, cash and cash equivalents include cash on hand, any deposit that can be used forcover, and short-term (usually due within 3 months since the day of purchase) and high circulating investments,which are easily convertible into known amount of cash and whose risks in change of value are minimal.
9. Foreign Currency and Accounting Method for Foreign Currency
1. Foreign Currency Business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translatedinto the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate ofthe transaction date. On the balance sheet date, the foreign currency monetary items shall be translated at the spotexchange rate. The balance of exchange arising from the difference between the spot exchange rate on the balancesheet date and the spot exchange rate at the time of initial recognition or prior to the balance sheet date shall be
recorded into the profits and losses at the current period except that the balance of exchange arising from foreigncurrency borrowings for the purchase and construction or production of qualified assets shall be capitalized. Theforeign currency non-monetary items measured at the historical cost shall still be translated at the spot exchangerate on the transaction date.
2. Translation of Foreign Currency Financial Statements
The asset and liability items in the balance sheets shall be translated at a spot exchange rate on the balance sheetdate. 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 of theincome 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 financial statement.When disposing the foreign operation, as for the discounted difference of the foreign financial statement related tothe foreign operation should be transferred in the current gains and losses according to the proportion. The foreigncash flow adopts the spot exchange rate on the occurring date of the cash flow. And the influenced amount of theexchange rate changes should be individually listed among the cash flow statement.
10. Financial Instruments
(Applicable from January 1,2019)Financial instruments refer to the contracts that constitute a company’s financial assets and the financial liabilitiesor equity instruments of other units.Recognition and derecognition of financial instrumentsWhen the Company becomes a party to a financial instrument, it shall recognize a financial asset or financialliability.A financial asset (or part of a financial asset or part of a group of similar financial assets) that meets the followingconditions should be derecognized, or in other words, be written off from its account and balance sheet:
1) The right to receive cash flow from the financial asset has expired;
2) The right to receive cash flow from the financial asset has been transferred, or the “transfer” agreementspecifies the obligation to duly pay the full amount of cash flow received to a third party; and (a) has transferredsubstantially all the risks and rewards of the asset, or (b) has neither transferred nor retained substantially all therisks and rewards of the asset, but has transferred control of the asset.A financial liability that has been fulfilled, canceled or expired should be derecognized. If a financial liability isreplaced with another financial liability by the same creditor on almost entirely different terms materially, or theterms for an existing liability have been almost fully revised materially, such replacement or revision should betreated as derecognition of the original liability and recognition of the new liability, and the difference should beincluded into current profits/losses.A financial asset traded in a conventional manner should be recognized and derecognized by trade-dateaccounting. The trading of financial assets in a conventional manner means that financial assets are received ordelivered by the deadline as specified in regulations or general practice according to contract provisions. Tradedate refers to the date committed by the Company to buy or sell a financial asset.Classification and measurement of financial assets
The Company classifies the financial assets when initially recognized into financial assets measured at amortizedcost, financial assets measured by the fair value and the changes recorded in other comprehensive income andfinancial assets at fair value through profit or loss based on the business model for financial assets managementand characteristics of contractual cash flow of financial assets. Financial assets initially recognized shall bemeasured at their fair values. For accounts receivable and notes receivable excluding major financing or withoutregard to financing over one year generated from ales of commodities or provision of labor services, the initialmeasurement shall be conducted based on the transaction price.For financial assets at fair value through profit or loss, the transaction expenses thereof shall be directly includedinto the current profit or loss; for other financial assets, the transaction expenses thereof shall be included into theinitially recognized amount.The subsequent measurement of financial assets depends on the classification thereof:
Debt instrument investments measured at amortized costFinancial assets meeting the following conditions at the same time shall be classified as financial assets measuredat amortized cost: the business mode of the Company to manage such financial assets targets at collecting thecontractual cash flow. The contract of such financial assets stipulates that the cash flow generated in the specificdate is the payment of the interest based on the principal and outstanding principal amount. The interest incomefor this kind of financial assets shall be recognized by effective interest method, and the gains or losses generatedfrom the derecognition, modification or impairment shall all be included into the current profit or loss. This kindof financial assets mainly consist of monetary capital, accounts receivable and notes receivable, other receivables,investments in debt obligations and long-term receivables. The Company presents the investments in debtobligations due within one year since the balance sheet date and long-term receivables as current portion ofnon-current assets and the original investments in debt obligations with maturity date within one year as othercurrent assets.Investments in debt instruments measured at fair value and changes thereof recorded into other comprehensiveincomeFinancial assets meeting the following conditions at the same time shall be classified as financial assets measuredat fair value and changes thereof recorded into other comprehensive income: the business mode of the Companyto manage such financial assets takes contract cash flow collected as target and selling as target. The contract ofsuch financial assets stipulates that the cash flow generated in the specific date is the payment of the interest basedon the principal and outstanding principal amount. The interest income for this kind of financial assets shall berecognized by effective interest method.All changes in fair value should be included into other comprehensive income except for interest income,impairment losses and exchange differences, which should be recognized as current profits/losses. When afinancial asset is derecognized, the cumulative gains or losses included into other comprehensive incomepreviously should be transferred out and included into current profits/losses. Such financial assets should bepresented as other credit investments. Other credit investments that will mature within one year from the date ofbalance sheet should be presented as non-current assets due within one year, and other credit investments with theoriginal maturity date coming within one year should be presented as other current assets.Equity instrument investment measured at fair value with changes included into other comprehensive incomeThe Company irrevocably chooses to designate part of non-trading equity instrument investments as financialassets measured at fair value with changes included into other comprehensive income. Only related dividendincome (excluding the dividend income confirmed to be recovered as part of investment costs) will be recognizedinto current profits/losses, while subsequent changes in fair value will be recognized into other comprehensiveincome without the withdrawal of impairment provisions required. When a financial asset is derecognized, the
cumulative gains or losses included into other comprehensive income previously should be recognized intoretained earnings. Such financial assets should be presented as other equity investments.A financial asset that meets one of the following conditions is classified as a trading financial asset: The financialasset has been acquired in order to be sold or repurchased in the near future; the financial asset is part of anidentifiable financial instrument portfolio under centralized management, and there is evidence proving that thecompany has recently adopted a short-term profit model; it is a derivative instrument, but derivative instrumentsthat are designated as and are effective hedging instruments and those conforming with financial guaranteecontracts are excluded.Financial assets at fair value through profit or lossThe Company classifies financial assets except for above-mentioned financial assets measured with amortizedcost and financial assets measured with fair value whose change is included into other comprehensive income intofinancial assets at fair value through profit or loss. The subsequent measurement of such kind of financial assetsshall be conducted by fair value method and all changes in fair value shall be recorded into the current profit orloss. Such financial assets shall be presented as trading financial assets, and those will due over one year since thebalance sheet date and expectedly held over one year shall be presented as other non-current financial assets.Classification and measurement of financial liabilitiesThe Company’s financial liabilities are, on initial recognition, classified into financial liabilities at fair valuethrough profit or loss, other financial liabilities and derivative instruments designated as effective hedginginstruments. For financial liabilities at fair value through profit or loss, relevant transaction costs are immediatelyrecognized in profit or loss for the current period, and transaction costs relating to other financial liabilities areincluded in the initial recognition amounts.The subsequent measurement of financial liabilities depends on the classification thereof:
Financial liabilities at fair value through profit or lossFinancial liabilities at fair value through profit or loss include trading financial liabilities (including the derivativeinstruments belonging to financial liabilities) and financial liabilities designated at the initial recognition to bemeasured by the fair value and their changes are recorded in the current profit or loss.A financial liability that meets one of the following conditions is classified as a trading financial liability: Thefinancial liability has been undertaken in order to be sold or repurchased in the near future; the financial liability ispart of an identifiable financial instrument portfolio under centralized management, and there is evidence provingthat the company has recently adopted a short-term profit model; it is a derivative instrument, but derivativeinstruments that are designated as and are effective hedging instruments and those conforming with financialguarantee contracts are excluded. Trading financial liabilities (including derivative instruments classified asfinancial liabilities) should be subsequently measured at fair value, and all changes in fair value should berecorded into current profits/losses, except for those related to hedging accounting.Other financial liabilitiesFor such kind of financial liabilities, the subsequent measurement shall be conducted by effective interest methodbased on the amortized cost.Impairment of financial instrumentsBased on expected credit losses, the Company carries out impairment treatment on financial assets measured atamortized cost and debt instrument investments measured at fair value with changes included into othercomprehensive income, rental receivables, contract assets and financial assets and recognizes provisions forlosses.Credit losses refer to the difference between all contract cash flows discounted by the original actual interest ratereceivable according to contracts and all cash flows expected to be received by the Company, which is the present
value of all cash shortfalls. The financial assets purchased by or originating from the Company with creditimpairment should be discounted by the actual interest rate of the financial assets after credit adjustment.In respect of receivable accounts and contract assets that do not contain significant financing components, theCompany uses the simplified measurement method to measure provisions for losses by the amount equivalent tothe expected credit losses of the whole duration.In respect of receivable accounts and contract assets that contain significant financing components, the Companyopts to use the simplified measurement method to measure provisions for losses by the amount equivalent to theexpected credit losses for the whole duration.For other financial assets and financial guarantee contracts than the above using the simplified measurementmethod, the Company on the balance sheet date assesses whether their credit risks have increased substantiallysince the initial recognition. If the credit risks have not increased substantially since the initial recognition and arein the first stage, the Company will measure provisions for losses by the amount equivalent to the expected creditlosses for the next 12 months and calculate interest income by the book balance and the actual interest rate; if thecredit risks have increased obviously without credit impairment since the initial recognition and are in the secondstage, the Company will measure provisions for losses by the amount equivalent to the expected credit losses forthe whole duration and calculate interest income by the book balance and the actual interest rate; if the credit riskshave increased substantially with credit impairment since the initial recognition and are in the third stage, theCompany will measure provisions for losses by the amount equivalent to the expected credit losses for the wholeduration and calculate interest income by the amortized cost and the actual interest rate. For financial instrumentswith only low credit risks on the balance sheet date, the Company assumes that their credit risks have notincreased substantially since the initial recognition.The Company 1) assesses expected credit losses of financial assets with credit impairment based on individualitems; 2) assesses expected credit losses of financial assets that are not derecognized but with changes in contractcash flows due to revision of or renegotiation on contracts by the Company and the counterparty, based onindividual items; 3) assesses expected credit losses of other financial assets based on age combination.The Company considers related past matters, current conditions, the reasonableness of the forecast on futureeconomic conditions and well-founded information when assessing expected credit losses.The Company’s information of the judgment standards for remarkable increase in credit risks, definition of assetswith incurred credit impairment and assumption of measurement on expected credit losses is disclosed in thisNote.When no longer reasonably expects to recover all or partial contractual cash flow of financial assets, the Companydirectly writes down the carrying amount of the financial assets.Financial instruments offseta financial asset and a financial liability shall be offset and the net amount is presented in the balance sheet whenthe following conditions are met at the same time: When the Company has a legal right that is currentlyenforceable to set off the recognized financial assets and financial liabilities, and intends either to settle on a netbasis, or to realize the financial asset and settle the financial liability simultaneously.Financial guarantee contractA financial guarantee contract refers to a contract in which a specific debtor shall compensate the contract holdersuffering the losses when the debtor is unable to repay the debt in due course according to the debt instrumentterms. Financial guarantee contracts are measured at fair value at the initial recognition. After the initialrecognition, all financial guarantee contracts should be subsequently measured by the higher amount between theamount of provisions for expected credit losses recognized on the balance sheet date and the balance of theinitially recognized amount deducting the cumulative amortization recognized according to the income
recognition principle, except for the financial guarantee contracts designated as financial liabilities measured atfair value with changes recorded into current profits/losses.Derivative financial instrumentsThe Company uses derivative financial instruments, which are initially measured at the fair value on the signaturedate of the derivative transaction contract and subsequently measured at their fair value. A derivative financialinstrument with a positive fair value is recognized as an asset and that with a negative fair value is recognized as aliability.Gains or losses from changes in the fair value of derivative instruments are directly recognized into currentprofits/losses.Revision of financial assetsFor the financial assets that are not derecognized but with changes in contract cash flows due to revision of orrenegotiation on contracts by the Company and the counterparty, the Company recalculates the book balance ofthe financial assets according to the renegotiated or revised contract cash flows by the discounted value of theoriginal actual interest rate (or the actual interest rate after credit adjustment). Relevant gains or losses arerecorded into current profits/losses. Costs or expenses for the revision of financial assets are adjusted to therevised book balance of financial assets and amortized in the remaining period of the revised financial assets.Transfer of financial assetsAs 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 rewards relatedto the ownership of a financial asset, should continue to recognize the transferred financial assets.Where the Company does not transfer or retain nearly all of the risks and rewards related to the ownership of afinancial asset, it shall deal with it according to the circumstances as follows, respectively: (1) If it gives up itscontrol over the financial asset, it shall stop recognizing the financial asset and recognize the assets and liabilitiesgenerated; (2) If it does not give up its control over the financial asset, it shall, according to the extent of itscontinuous involvement in the transferred financial asset, recognize the related financial asset and recognize therelevant liability accordingly.
11. Notes Receivable
| Category | Accounting estimate policy |
| Bank’s acceptance bill | The Company evaluates that the portfolio has relatively low credit risks, and generally no provision for impairment is made. |
12. Accounts Receivable
The Company withdraws the impairment loss for accounts receivable excluding significant financing componentwith the simplified method.
1) Accounts Receivable with Significant Single Amount for which the Bad Debt Provision is MadeIndividually
| 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 accountsreceivable with a significant single amount
| 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 between the present value of the account receivable’s future cash flows and its carrying amount. |
2) Accounts Receivable for which the Bad Debt Provision is Withdrawn by Credit Risk Characteristics
| 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 accounts receivable | Withdrawal proportion of other 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 applicable
In 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 | Recognizing the impairment loss and withdrawing the bad debt provision according to the difference between the present value of the account receivable’s future cash flows and its carrying amount. |
13. Financing Backed by Accounts Receivable
Not applicable
14. Other Receivables
Recognition method and accounting treatment for expected credit losses of other receivablesRefer to Note 10 for details about the recognition method and accounting treatment for expected credit losses ofother receivables since 1 January 2019.
15. Inventories
Is the Company subject to any disclosure requirements for special industries?No.
1. Classification of Inventory
Inventory 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 commissioned processingmaterials. Turnover materials include low-value consumables and packaging.
2. Pricing Method of Inventory Sent Out
The inventory is valued at actual cost when acquired, and inventory costs include procurement costs, 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 incurred atthe 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 related taxesin the process of normal production and operation.For materials inventory needs to be processed, the net realizable value is determined by the estimated selling priceof the finished products minus the estimated cost to be incurred, the estimated sales costs and the relevant taxes
and fees in the process of normal production and operation.
4. Inventory System
The inventory system of the Company is perpetual inventory.
5. Amortization Method of Turnover Materials
Low-value consumables are amortized in one-off method.The packaging is amortized in one-off method.
16. Contract Assets
Not applicable
17. Contract Costs
Not applicable
18. Assets Held for Sale
1. Assets Held for Sale
When a company relies mainly on selling (including the exchanges of non-monetary assets with 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 above donot 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, deferredincome tax assets and rights generated from insurance contracts.Disposal group refers to a group of assets that are disposed of together as a whole through sale or other means in atransaction, 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 heldfor sale: ① Assets or disposal groups can be sold immediately under current conditions based on the practice ofselling such assets or disposal groups in similar transactions; ② Sales are highly likely to occur, that is, theCompany has already made a resolution on a sale plan and obtained a certain purchase commitment, and the saleis expected to will be completed within one year, and the sale has been approved if relevant regulations requirerelevant 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 thenon-current assets or disposal groups as held-for-sale: ①The purchaser or other party unexpectedly setsconditions 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 salewithin one year after the conditions were set. ②Due to unusual circumstances, the non-current assets or disposalgroups held for sale failed to be sold within one year. In the first year, the Company has taken necessary measures
for these new conditions and the assets or disposal groups meet the conditions of held-for-sale again.If the Company loses control of a subsidiary due to the sale of investments to its subsidiaries, whether or not 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, the bookvalue will be written down to the net amount of fair value minus the sale costs, and the amount written down willbe recognized as impairment loss of assets and included in the current profit and loss, and provision forimpairment of held-for-sale assets will be made. For the confirmed amount of impairment loss of assets of thedisposal groups held for sale, the book value of goodwill of the disposal groups will be offset first, and then thebook 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, and reversedto the asset impairment loss confirmed after the assets being classified as held-for-sale. The reversed amount willbe included in the current profit or loss. The book value of goodwill that has been deducted cannot be reversed.Non-current assets held for sale or non-current assets in the disposal group are not subject to depreciation 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 is removedout from the held-for-sale disposal group due to failure in meeting the classification conditions for the category ofheld-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 Operation
Termination 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. Presentation
In 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 current assetsand 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 the informationoriginally presented as profit or loss of continuing operation in the current financial statements to profit or loss oftermination of the comparable accounting period. If the termination of operation no longer meets the conditions of
held-for-sale, the Company restates the information originally presented as a profit and loss of termination in thecurrent financial statements to profit or loss of continuing operation of the comparable accounting period.
19. Investments in Debt Obligations
Not applicable
20. Other Investments in Debt Obligations
Not applicable
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
Long-term equity investment refers to the Company’s long-term equity investment with control, joint control orsignificant influence on the investee. The long-term equity investment of the Company which has no control, jointcontrol or significant influence on the investee is accounted for as financial assets available-for-sale or financialassets at fair value and changes recognized in profit or loss for the current period. For details of accountingpolicies, 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 the control.Significant influence refers to the Company has the power to participate in decision-making on the financial andoperating policies of the investee, but can’t control or jointly control the formulation of these policies with otherparties.
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 and lossesof the current period.
(2) For the merger of enterprises not under the same control, The combination costs shall be the fair values, on theacquisition 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 for thebusiness combination. Where any future event that is likely to affect the combination costs is stipulated in thecombination contract or agreement, if it is likely to occur and its effects on the combination costs can be measuredreliably, 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 assets
received.
(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 Method
When 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 Method
When the equity method is used for accounting, if the initial investment cost of the long-term equity investment isgreater 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 shall berecognized separately according to the net profit or loss and other comprehensive income realized by the investee,and the book value of the long-term equity investment shall be adjusted at the same time. The part entitled shall becalculated according to the profits or cash dividends declared by the investee, and the book value of the long-termequity investment shall be reduced accordingly. For other changes in the owner’s equity other than the net profitor loss, other comprehensive income and profit distribution of the investee, the book value of the long-term equityinvestment shall be adjusted and included in the capital reserve. When the share of the net profit or loss of theinvestee is recognized, the net profit of the investee shall be adjusted and recognized according to the fair value ofthe identifiable assets of the investee when the investment is made. If the accounting policies and accountingperiods adopted by the investee are inconsistent with the Company, the financial statements of the investee shallbe adjusted according to the accounting policies and accounting periods of the Company and the investmentincome and other comprehensive income shall be recognized accordingly. For the transactions between theCompany and associates and joint ventures, if the assets made or sold don’t constitute business, the unrealizedgains and losses of the internal transactions are offset by the proportion attributable to the Company, and theinvestment gains and losses are recognized accordingly. However, the loss of unrealized internal transactionsincurred by the Company and the investee attributable to the impairment loss of the transferred assets shall not beoffset. If the assets made to associates or joint ventures constitute business, and the investor makes long-termequity investment but does not obtain the control, the fair value of the investment shall be taken as the initialinvestment cost of the new long-term equity investment, and the difference between initial investment and thebook value of the investment is fully recognized in profit or loss for the current period. If the assets sold by theCompany to joint ventures or associates constitute business, the difference between the consideration and the bookvalue of the business shall be fully credited to the current profits and losses. If the assets purchased by Companyfrom joint ventures or associates constitute business, conduct accounting treatment in accordance with theprovisions of Accounting Standard for Business Enterprises No. 20 - Business combination, and the profits orlosses 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 to zero.In addition, if the Company has an obligation to bear additional losses to the investee, the estimated liabilities arerecognized in accordance with the obligations assumed and included in the current investment losses. If theinvestee has realized net profit in later period, the Company will resume the recognition of the income share afterthe income share has made up the unrecognized loss share.
(3) Acquisition of Minority Interests
In the preparation of the consolidated financial statements, capital reserve shall be adjusted according to 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 Investment
In the consolidated financial statements, the parent company partially disposes of the long-term equity investmentin the subsidiary without the loss of control, and the difference between the disposal price and the net assets of thesubsidiary corresponding to the disposal of the long-term equity investment is included in the shareholders’ equity.If the disposal of long-term equity investment in subsidiaries results in the loss of control over the subsidiaries,handle in accordance with the relevant accounting policies described in 6（2）. “Principles, Procedures andMethods for the Preparation of Consolidated 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 still accountedby the equity method, other comprehensive income originally included in the shareholders’ equity shall be treatedin the same basis of the investee directly disposing related assets or liabilities by corresponding proportion. Theowner’s equity recognized by the change of the owner’s equity of the investee other than the net profit or loss,other comprehensive income and profit distribution is carried forward proportionally into the current profits andlosses.For long-term equity investment accounted by the cost method and residual equity after disposal still accounted bythe cost method, other comprehensive income accounted by equity method or recognized by financial instrumentand accounted and recognized by measurement criteria before the acquisition of the control over the investee istreated in the same basis of the investee directly disposing related assets or liabilities, and carried forwardproportionately into the current profits and losses. Other changes of owner’s equity in net assets of the investeeaccounted and recognized by the equity method other than the net profit or loss, other comprehensive income andprofit distribution are carried forward proportionally into the current profits and losses.
3. Impairment Provisions for Long-term Equity Investments
For the relevant testing method and provision making method, see 31. Impairment of Long-term Assets in Notes Vherein.
23. Investment Property
Measurement mode of investment propertyNot applicable
24. Fixed Assets
(1) Recognition Conditions
Fixed assets of the Company refers to the tangible assets that simultaneously possess the features as follows: theyare held for the sake of producing commodities, rendering labor service, renting or business management; andtheir useful life is in excess of one accounting year and unit price is higher. No fixed assets may be recognizedunless 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 | Depreciable life | Expected net salvage value | Annual deprecation |
| Housing and building | Straight-line method | 3—30 years | 5% | 31.67%-3.17% |
| Machinery equipments | Straight-line method | 2—10 years | 5% | 47.50%-9.50% |
| Transportation equipments | Straight-line method | 5—10 years | 5% | 19.00%-9.50% |
| Electronic equipment | Straight-line method | 2—8 years | 5% | 47.50%-11.88% |
(3) Recognition Basis, Pricing and Depreciation Method of Fixed Assets by Finance LeaseNot applicable
25. Construction in Progress
1. Pricing of Construction in Progress
The constructions are accounted according to the actual costs incurred. The constructions shall be carried forwardinto fixed assets at the actual cost when reach intended usable condition. The borrowing expenses eligible forcapitalization 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 of thefollowing:
(1) The physical construction (including installation) of fixed assets has been completed or substantially completed;
(2) Has been produced or run for trial, and the results indicate that the assets can run normally or can produce stableproducts 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 designor contract requirements.
3. Provision for Impairment of Construction in Progress
Please refer to Note 31: Long-term Asset Impairment under Note V for the impairment test method and provision
for impairment of construction in progress.
26. Borrowing Costs
The borrowing costs refer to interest and other related costs incurred by the Company as a result of borrowings,including interest on borrowings, amortization of discounts or premiums, ancillary expenses and 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 costs
Borrowing 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 costs
Capitalization 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 shall besuspended. 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 the conditionsof capitalization meet the intended useable or sellable status. The borrowing costs incurred after the assets eligiblefor capitalization meet the intended useable or sellable status can be included in the current profits and losseswhen incurred.
3. Calculation method of capitalized amount of borrowing costs
During 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 for capitalization,the Company multiplies the weighted average of the asset expenditure of the accumulated asset expenditureexceeding the special borrowing by the capitalization rate of the general borrowing to calculate the amount ofinterest that should be capitalized for general borrowings. The capitalization rate is determined based on theweighted average interest rate of general borrowings.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Right-of-use Assets
Not applicable
30. Intangible Assets
(1) Pricing Method, Useful Life and Impairment Test
1. Recognition Criteria of Intangible Assets
Intangible assets are identifiable non-monetary assets that are owned or controlled by the Company without physicalform. The intangible assets are recognized when all the following conditions are met: (1) Conform to the definitionof intangible assets; (2) Expected future economic benefits related to the assets are likely to flow into the Company;
(3) The costs of the assets can be measured reliably.
2. Initial Measurement of Intangible Assets
Intangible assets are initially measured at cost. Actual costs are determined by the following principles:
(1) The cost of the acquisition of intangible assets, including the purchase price, relevant taxes and other expensesdirectly attributable to the intended use of the asset. The payment of purchase price of intangible assets exceedingnormal credit terms is deferred, and the cost of intangible assets having financing nature in essence shall berecognized based on the present value of the purchase price. The difference between the actual payment price andthe present value of the purchase price shall be recorded into the current profits and losses in the credit period exceptthat can be capitalized in accordance with the Accounting Standard for Business Enterprises No. 17 - BorrowingCost.
(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 Assets
The Company shall determine the useful life when it obtains intangible assets. The useful life of intangible assets islimited, and the years of the useful life or output that constitutes the useful life or similar measurement units shall beestimated. The intangible assets are regarded as intangible assets with uncertain useful life if the term that bringseconomic 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 uncertain usefullife shall not be amortized. The Company reviews the estimated useful life and amortization method of intangibleassets with limited useful life at the end of each year, and reviews the estimated useful life of intangible assets withuncertain useful life in each accounting period. For intangible assets that evidence shows the useful life is limited,the useful life shall be estimated and the intangible assets shall be amortized in the estimated useful life.
4. Recognition Criteria and Withdrawal Method of Intangible Asset Impairment ProvisionThe impairment test method and withdrawal method for impairment provision of intangible assets are detailed inNote 31: 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 inresearch 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 market andwill 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 intangible assetsrecognition criterion until reaching intended use. Expenditures that have been expensed in previous periods are nolonger adjusted.Non-monetary assets exchange, debt restructuring, government subsidies and the cost of intangible assets acquiredby business combination are recognized according to relevant provisions of Accounting Standard for BusinessEnterprises No. 7 - Non-monetary assets exchange, Accounting Standard for Business Enterprises No. 12 - Debtrestructuring, Accounting Standards for Business Enterprises No. 16 - Government subsidies, AccountingStandard for Business Enterprises No. 20 - Business combination respectively.
31. Impairment of Long-term Assets
For non-current non-financial assets such as fixed assets, construction in progress, intangible assets with limiteduseful 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 sheet date.If there is indication of impairment, then estimate the amount of its recoverable value and test the impairment.Goodwill, intangible assets with uncertain useful life and intangible assets that have not yet reached useable stateshall 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 sales agreementin the fair trade; if there is no sales agreement but there is an active market, the fair value is recognized accordingto the buyer’s bid of the asset; if there is no sales agreement or active market, the fair value of asset shall beestimated based on the best information that can be obtained. Disposal costs include legal costs related to disposalof assets, related taxes, handling charges, and direct costs incurred to enable the asset reaching sellable status. Thepresent value of the expected future cash flows of the assets is recognized by the amount discounted at appropriatediscount rate according to the expected future cash flows arising from the continuing use of the asset and the finaldisposal. The provision for impairment of assets is calculated and recognized on the basis of individual assets. If itis difficult to estimate the recoverable amount of individual assets, the recoverable amount of the asset group shallbe 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 combination whenthe impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate thatthe recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill islower than its book value. The amount of the impairment loss shall offset the book value of the goodwillapportioned to the asset group or portfolio of asset groups, and offset the book value of other assets in proportionaccording to the proportion of the book value of other assets except the goodwill in the asset group or portfolio ofasset groups.Once the impairment loss of the above asset is recognized, the portion that the value is restored will not be writtenback in subsequent periods.
32. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (one yearexcluded) that have occurred but attributable to the current and future periods. Long-term deferred expense shallbe amortized averagely within benefit period. In case of no benefit in the future accounting period, the amortizedvalue of such project that fails to be amortized shall be transferred into the profits and losses of the current period.
33. Contract Liabilities
Not applicable
34. Payroll
(1) Accounting Treatment of Short-term Compensation
Short-term compensation mainly including salary, bonus, allowances and subsidies, employee services andbenefits, 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 Demission
Welfare after demission mainly includes defined contribution plans and defined benefit plans. Of which definedcontribution plans mainly include basic endowment insurance, unemployment insurance, annuity funds, etc., andthe corresponding payable and deposit amount should be included into the relevant assets cost or the current gainsand losses when happen.
(3) Accounting Treatment of the Demission Welfare
If an enterprise cancels the labor relationship with any employee prior to the expiration of the relevant laborcontract or brings forward any compensation proposal for the purpose of encouraging the employee to accept a
layoff, and should recognize the payroll liabilities occurred from the demission welfare base on the earlier datebetween the time when the Group could not one-sided withdraw the demission welfare which offered by the planor layoff proposal owning to relieve the labor relationship and the date the Group recognizes the cost related to thereorganization of the payment of the demission welfare and at the same time includes which into the current gainsand losses. But if the demission welfare is estimated that could not totally pay after the end of the annual reportwithin 12 months, should be disposed according to other long-term payroll payment.
(4) Accounting Treatment of Other Long-term Welfare for Staff
The inside employee retirement plan is treated by adopting the same principle with the above dismiss ion welfare.The Group would recorded the salary and the social security insurance fees paid and so on from the employee’sservice terminative date to normal retirement date into current profits and losses (dismiss ion welfare) under thecondition 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.
35. Lease Liabilities
Not applicable
36. Provisions
1. Recognition of Provisions
The obligation such as external guaranty, pending litigation or arbitration, product quality assurance, layoff plan,loss contract, restructuring and disposal of fixed assets, pertinent to a contingencies shall be recognized as anprovisions when the following conditions are satisfied simultaneously: ① That obligation is a current obligationof the enterprise; ② It is likely to cause any economic benefit to flow out of the enterprise as a result ofperformance of the obligation; and ③ The amount of the obligation can be measured in a reliable way
2. Measurement of Provisions
The provisions shall be initially measured in accordance with the best estimate of the necessary expenses for theperformance 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 thefollowing 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 should becalculated and determined in accordance with all possible outcomes and the relevant probabilities. ③ When allor some of the expenses necessary for the liquidation of an provisions 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 theprovisions on the balance sheet date. The amount of compensation is not exceeding the book value of therecognized provisions.
37. Share-based Payment
Not applicable
38. Other Financial Instruments such as Preferred Shares and Perpetual BondsNot applicable
39. Revenue
Is the Company subject to any disclosure requirements for special industries?NoHas implemented the new standards governing revenue?
□ Yes √ No
1. Sale of Goods
No revenue from selling goods may be recognized unless the following conditions are met simultaneously: ① Thesignificant risks and rewards of ownership of the goods have been transferred to the buyer by the Company; ② TheCompany retains neither continuous management right that usually keeps relation with the ownership nor effectivecontrol over the sold goods; ③ The revenue amount could be reliably measured; and ④ The relevant economicbenefits may flow into the Company, and the relevant cost which had occurred or will occur could be reliablymeasured.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 the incomehas been determined and the sales invoice has been issued. The payment for the delivered products has beenreceived 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 income hasbeen determined and the export sales invoice has been issued. The payment for the delivered products has beenreceived in full or is expectedly recoverable.
2. Provision of Labor Services
In the case that the results of the labor service transaction can be reliably estimated, the income from the provision oflabor services shall be recognized at the balance sheet date by the percentage of completion method according to theprogress 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 to theenterprise; ③ The progress of the transaction can be reliably determined; ④ The cost incurred and to be incurred inthe 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 cost oflabor 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 the provision
of labor services, and the sale of goods and the provision of labor services can be distinguished and measuredseparately, the sale of goods and the provision of labor services shall be dealt with separately; if the sale of goodsand the provision of labor services can’t be distinguished or can’t be measured separately, the contract will betreated as sale of goods.
3. Income from Transferring the Right to Use Assets
The 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; ②Economic benefits related to the transaction can inflow.
40. Government Subsidies
1. Category of Government Subsidies
Government subsidies refer to the monetary assets and non-monetary assets obtained by the Company from thegovernment, which mainly include government subsidies related to assets and government subsidies related toincome.
2. Distinction Standard of Government Subsidies Related to Assets with Government Subsidies Related to IncomeThe government subsidies related to assets refer to the government subsidies obtained for acquisition, constructionor otherwise formation of long-term assets. The government subsidies related to income refer to the governmentsubsidies 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.The specific criteria that the Company classifies government subsidies as income related is: other governmentsubsidies other than asset-related government subsidies.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 and changedas necessary; (2) if the government documents only have a general statement of the purpose and do not specify aspecific project, the subsidy is recognized as government subsidy related to income.
3. Measurement of Government Subsidies
If a government subsidy is a monetary asset, it shall be measured according to the amount received or receivable.If a government subsidy is a non-monetary asset, it shall be measured at its fair value, and shall be measured at 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.
4. Accounting Treatment for Government Subsidies
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 are
included 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 the profitor loss of the asset disposal in the Current Period.Government subsidies related to income shall be treated as follows:
(1) government subsidies used to compensate the relevant costs, expenses or losses of the Company in 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 innon-operating income).For government subsidies that include both assets-related and income-related parts, they should be distinguishedseparately for accounting treatment; for government subsidies that are difficult to be distinguished, they should beclassified as income-related.
41. Deferred Income Tax Assets/Deferred Income Tax Liabilities
The income tax of the Company includes the current income tax and deferred income tax. Both are recorded intothe 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 accounting profitnor 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, subject tothe 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 or theamount 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 according totax law, and reflects the income tax effect of expected assets recovery or liabilities payoff method at the balancesheet 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.
42. 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 overthe 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 rental expensesare 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 amount islarger, they are capitalized and are recorded in the current period in stages on the same basis as the recognition oflease income during the entire lease period.When the company assumes the lease-related expenses that should be borne by the lessee, the company deductsthe expenses from the total amount of rental income and allocates the deducted rental expenses during the leaseperiod.
(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 theleased asset and the present value of the minimum lease payments on the lease beginning date as the enteringvalue in an account, recognized the amount of the minimum lease payments as the entering value in an account oflong-term account payable, and treated the balance between the recorded amount of the leased asset and thelong-term account payable as unrecognized financing charges. The company adopted the effective interest methodto amortize the unrecognized financing expenses during the asset lease period and included it into financialexpenses.
(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 unrealized financingincome. It is recognized as lease income during any lease period in the future. The initial direct costs incurred bythe Company in relation to the lease transaction, were included in the initial measurement of the financial leasereceivable and the amount of revenue recognized during the lease period shall be reduced.
43. Other Significant Accounting Policies and Estimates
Not applicable
44. Changes in Main Accounting Policies and Estimates
(1) Change of Accounting Policies
√ Applicable □ Not applicable
| Changes in accounting policy | Approval procedure | Remark |
| In 2017, the Ministry of Finance revised and issued the Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments, Accounting Standards for Business Enterprises No.24-Hedge Accounting, Accounting Standards for Business Enterprises No.37-Presentation of Financial Instruments and required enterprises listed both domestically and overseas as well as companies listed overseas with financial report prepared in accordance with International Financial Reporting Standards or Accounting Standards for Business Enterprises to carry out the revised accounting standards since 1 January 2018, required other domestically listed companies to carry out the revised standards since 1 January 2019, and required unlisted enterprises implementing Accounting Standards for Business Enterprises to carry out the revised standards since 1 January 2021. Thus the Company starts to implement the changed new standards governing financial instruments since 1 January 2019. | Reviewed and approved by the 30th Meeting of the 8th Board of Directors | For details, refer to the Announcement on Changes in Accounting Policies (Announcement No.: 2019-020) disclosed on cninfo.com.cn. |
(2) Significant Changes in Accounting Estimates
□ Applicable √ Not applicable
(3) Adjustments to the Financial Statements at the Beginning of the First Execution Year of any NewStandards Governing Financial Instruments, Revenue or Leases
√ Applicable □ Not applicable
Consolidated Balance Sheet
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjusted |
| Current assets: | |||
| Monetary capital | 896,646,719.87 | 896,646,719.87 | |
| Settlement reserve | |||
| Interbank loans granted | |||
| Trading financial assets | 6,000,000.00 | 6,000,000.00 | |
| Financial assets at fair value through profit or loss | |||
| Derivative financial assets | |||
| Notes receivable | 107,506,613.50 | 107,506,613.50 | |
| Accounts receivable | 834,420,596.05 | 834,420,596.05 | |
| Financing backed by accounts receivable | |||
| Prepayments | 13,811,905.18 | 13,811,905.18 | |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 21,745,690.53 | 21,745,690.53 | |
| Including: Interest receivable | 5,152,364.04 | 5,152,364.04 | |
| Dividends receivable | |||
| Financial assets purchased under resale agreements | |||
| Inventories | 767,319,599.00 | 767,319,599.00 | |
| Contract assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 864,093,663.30 | 864,093,663.30 | |
| Total current assets | 3,505,544,787.43 | 3,511,544,787.43 | 6,000,000.00 |
| Non-current assets: | |||
| Loans and advances to customers | |||
| Investments in debt obligations |
| Available-for-sale financial assets | 897,716,590.20 | -897,716,590.20 | |
| Investments in other debt obligations | |||
| Held-to-maturity investments | |||
| Long-term receivables | |||
| Long-term equity investments | 182,458,559.69 | 182,458,559.69 | |
| Investments in other equity instruments | 891,716,590.20 | 891,716,590.20 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 512,106,912.39 | 512,106,912.39 | |
| Construction in progress | 224,624,447.16 | 224,624,447.16 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 172,725,277.21 | 172,725,277.21 | |
| R&D expense | |||
| Goodwill | |||
| Long-term prepaid expense | 6,852,985.35 | 6,852,985.35 | |
| Deferred income tax assets | 37,831,704.45 | 37,831,704.45 | |
| Other non-current assets | 48,305,435.42 | 48,305,435.42 | |
| Total non-current assets | 2,082,621,911.87 | 2,076,621,911.87 | -6,000,000.00 |
| Total assets | 5,588,166,699.30 | 5,588,166,699.30 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Borrowings from central bank | |||
| Interbank loans obtained | |||
| Trading financial liabilities | 477,200.00 | 477,200.00 | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | -477,200.00 | |
| Derivative financial liabilities |
| Notes payable | 452,683,676.97 | 452,683,676.97 | |
| Accounts payable | 532,597,143.95 | 532,597,143.95 | |
| Advances from customers | 43,850,788.04 | 43,850,788.04 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and interbank deposits | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Payroll payable | 96,088,621.59 | 96,088,621.59 | |
| Taxes payable | 25,354,466.37 | 25,354,466.37 | |
| Other payables | 43,115,011.68 | 43,115,011.68 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Handling charges and commissions payable | |||
| Reinsurance payables | |||
| Contract liabilities | |||
| Liabilities directly associated with assets classified as held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | |||
| Total current liabilities | 1,194,166,908.60 | 1,194,166,908.60 | |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities |
| Long-term payables | |||
| Long-term payroll payable | |||
| Provisions | |||
| Deferred income | 155,000.31 | 155,000.31 | |
| Deferred income tax liabilities | 52,530,509.00 | 52,530,509.00 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 52,685,509.31 | 52,685,509.31 | |
| Total liabilities | 1,246,852,417.91 | 1,246,852,417.91 | |
| Owners’ equity: | |||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Capital reserves | 158,608,173.07 | 158,608,173.07 | |
| Less: Treasury stock | |||
| Other comprehensive income | 297,667,872.80 | 297,667,872.80 | |
| Specific reserve | |||
| Surplus reserves | 809,456,186.20 | 809,456,186.20 | |
| General reserve | |||
| Retained earnings | 1,654,181,032.39 | 1,654,181,032.39 | |
| Total equity attributable to owners of the Company as the parent | 4,319,259,418.46 | 4,319,259,418.46 | |
| Non-controlling interests | 22,054,862.93 | 22,054,862.93 | |
| Total owners’ equity | 4,341,314,281.39 | 4,341,314,281.39 | |
| Total liabilities and owners’ equity | 5,588,166,699.30 | 5,588,166,699.30 |
Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments (CK[2017]No.7), the Accounting Standards for Business Enterprises No. 23 – Transfer ofFinancial Assets (CK[2017]No.8), the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting (CK[2017]No.9),and the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (CK[2017]No.14). TheCompany starts to implement above new standards since 1 January 2019. In accordance with the link up provision, no adjustmentwas made to information of comparative period, and the Company retroactively adjusted the retained earnings of period-begin or
other comprehensive income based on the difference between the original standards and the new standards on the first execution date.Those originally recorded into “available-for-sale financial assets” are now recorded into “trading financial assets” and “otherinvestments in equity instruments”; those originally recorded into “financial liabilities at fair value through profit or loss” are nowrecorded into “trading financial liabilities”.
Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjusted |
| Current assets: | |||
| Monetary capital | 848,949,693.91 | 848,949,693.91 | |
| Trading financial assets | 6,000,000.00 | 6,000,000.00 | |
| Financial assets at fair value through profit or loss | |||
| Derivative financial assets | |||
| Notes receivable | 104,945,398.61 | 104,945,398.61 | |
| Accounts receivable | 795,897,932.65 | 795,897,932.65 | |
| Financings backed by accounts receivable | |||
| Prepayments | 25,444,445.34 | 25,444,445.34 | |
| Other receivables | 43,538,848.72 | 43,538,848.72 | |
| Including: Interest receivable | 5,152,364.04 | 5,152,364.04 | |
| Dividends receivable | |||
| Inventories | 692,681,479.03 | 692,681,479.03 | |
| Contract assets | |||
| Assets classified as held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 856,504,839.81 | 856,504,839.81 | |
| Total current assets | 3,367,962,638.07 | 3,373,962,638.07 | 6,000,000.00 |
| Non-current assets: | |||
| Investments in debt obligations | |||
| Available-for-sale financial assets | 897,716,590.20 | -897,716,590.20 | |
| Investments in other debt |
| obligations | |||
| Held-to-maturity investments | |||
| Long-term receivables | |||
| Long-term equity investments | 466,251,661.95 | 466,251,661.95 | |
| Investments in other equity instruments | 891,716,590.20 | 891,716,590.20 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 427,947,613.74 | 427,947,613.74 | |
| Construction in progress | 222,570,503.14 | 222,570,503.14 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 129,452,067.42 | 129,452,067.42 | |
| R&D expense | |||
| Goodwill | |||
| Long-term prepaid expense | 5,106,268.25 | 5,106,268.25 | |
| Deferred income tax assets | 35,908,741.15 | 35,908,741.15 | |
| Other non-current assets | 46,852,235.42 | 46,852,235.42 | |
| Total non-current assets | 2,231,805,681.27 | 2,225,805,681.27 | -6,000,000.00 |
| Total assets | 5,599,768,319.34 | 5,599,768,319.34 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Trading financial liabilities | 477,200.00 | 477,200.00 | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | -477,200.00 | |
| Derivative financial liabilities | |||
| Notes payable | 452,683,676.97 | 452,683,676.97 | |
| Accounts payable | 681,490,174.69 | 681,490,174.69 | |
| Advances from customers | 41,912,301.85 | 41,912,301.85 | |
| Contract liabilities | |||
| Payroll payable | 84,220,746.16 | 84,220,746.16 |
| Taxes payable | 17,528,644.83 | 17,528,644.83 | |
| Other payables | 114,073,355.23 | 114,073,355.23 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Liabilities directly associated with assets classified as held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | |||
| Total current liabilities | 1,392,386,099.73 | 1,392,386,099.73 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preferred shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term payroll payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | 52,530,509.00 | 52,530,509.00 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 52,530,509.00 | 52,530,509.00 | |
| Total liabilities | 1,444,916,608.73 | 1,444,916,608.73 | |
| Owners’ equity: | |||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 | |
| Other equity instruments | |||
| Including: Preferred shares | |||
| Perpetual bonds |
| Capital reserves | 166,211,779.15 | 166,211,779.15 | |
| Less: Treasury stock | |||
| Other comprehensive income | 297,672,884.34 | 297,672,884.34 | |
| Specific reserve | |||
| Surplus reserves | 809,456,186.20 | 809,456,186.20 | |
| Retained earnings | 1,482,164,706.92 | 1,482,164,706.92 | |
| Total owners’ equity | 4,154,851,710.61 | 4,154,851,710.61 | |
| Total liabilities and owners’ equity | 5,599,768,319.34 | 5,599,768,319.34 |
Note for adjustment:
In 2017, Ministry of Finance respectively revised and issued the Accounting Standards for Business Enterprises No. 22 - Recognitionand Measurement of Financial Instruments (CK[2017]No.7), the Accounting Standards for Business Enterprises No. 23 – Transfer ofFinancial Assets (CK[2017]No.8), the Accounting Standards for Business Enterprises No. 24 – Hedging Accounting (CK[2017]No.9),and the Accounting Standards for Business Enterprises No. 37 – Presentation of Financial Instruments (CK[2017]No.14). TheCompany starts to implement above new standards since 1 January 2019. In accordance with the link up provision, no adjustmentwas made to information of comparative period, and the Company retroactively adjusted the retained earnings of period-begin orother comprehensive income based on the difference between the original standards and the new standards on the first execution date.Those originally recorded into “available-for-sale financial assets” are now recorded into “trading financial assets” and “otherinvestments in equity instruments”; those originally recorded into “financial liabilities at fair value through profit or loss” are nowrecorded into “trading financial liabilities”.
(4) Retroactive Adjustments to Comparative Data of Prior Years when First Execution of any NewStandards Governing Financial Instruments or Leases
□ Applicable √ Not applicable
45. Other
NaughtVI 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%, 9%, 10%, 11%, 13%, 16% |
| Urban maintenance and construction tax | Turnover tax payable | 7%, 5% |
| Enterprise income tax | Taxable income | 15%, 20%, 25% |
| Educational surtax | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
| Name | Income tax rate |
| Foshan Electrical and Lighting Co., Ltd. | 15% |
| FSL Chanchang Optoelectronics Co., Ltd. | 25% |
| Foshan Chansheng Electronic Ballast Co., Ltd. | 20% |
| 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 Financial Leasing Co., Ltd. | 25% |
| Foshan Lighting Lamps and Lanterns Co., Ltd. | 25% |
| FSL Zhida Electric Technology Co., Ltd. | 25% |
| FSL Europe GmbH | 15% |
2. Tax Preference
The Company passed the re-examination for High-tech Enterprises in 2017, as well as won the “Certificate ofHigh-tech Enterprise” after approval by Department of Science and Technology of Guangdong Province,Department of Finance of Guangdong Province, Guangdong Provincial Bureau of State Taxation and 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. Other
Paid according to the relevant regulation of the tax law.VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Capital
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 41,073.13 | 34,937.47 |
| Bank deposits | 766,646,136.79 | 784,166,295.87 |
| Other monetary capital | 62,822,506.73 | 112,445,486.53 |
| Total | 829,509,716.65 | 896,646,719.87 |
| Of which: Total amount deposited oversees | 1,018,633.97 | 739,617.83 |
Other notesNote: Other monetary capital includes cash deposit for notes, cash deposit for future foreign exchange settlement, investment funddeposited in securities companies and e-commerce balance, of which, the cash deposit for notes and cash deposit for future foreignexchange settlement are restricted assets. For details, please refer to Note VII-Notes to Items of Consolidated Financial Statements(81. Assets with Restricted Ownership and Right to Use).
2. Trading Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Of which: | ||
| Financial assets assigned measured by fair value and the changes be included in the current gains and losses | 6,000,000.00 | |
| Of which: | ||
| Total | 6,000,000.00 |
Other notes:
The reason for the decrease of trading financial assets at the period-end is the Company transferred 69% of shares in ChengduHongbo Enterprise Co., Ltd. to Xiamen Tungsten Co., Ltd. in the Reporting Period.
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 135,766,529.32 | 107,506,613.50 |
| Total | 135,766,529.32 | 107,506,613.50 |
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal | Amount | Proportion | Amount | Withdrawal | |||
| proportion | proportion | |||||||||
| Of which: | ||||||||||
| Notes receivable withdrawn bad debt provision by group | 135,766,529.32 | 100.00% | 135,766,529.32 | 107,506,613.50 | 100.00% | 107,506,613.50 | ||||
| Of which: | ||||||||||
| Total | 135,766,529.32 | 100.00% | 135,766,529.32 | 107,506,613.50 | 100.00% | 107,506,613.50 |
Individual withdrawal of bad debt provision:
NaughtWithdrawal of bad debt provision by group:
NaughtNotes of confirming the basis of the groups:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of notes receivable.
□ Applicable √ Not applicable
(2) Notes Receivable Withdrawn, Reversed or Collected during the Reporting PeriodInformation of bad debt provision in the Reporting Period:
NaughtOf which bad debt provision recovered or reversed with significant amount during the Reporting Period:
□ Applicable √ Not applicable
(3) Notes Receivable Pledged at the Period-end
Unit: RMB
| Item | Amount pledged at the period-end |
| Bank acceptance bill | 79,189,073.66 |
| Total | 79,189,073.66 |
(4) 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 | 47,238,011.00 | |
| Total | 47,238,011.00 |
(5) Notes Transferred to Accounts Receivable because Drawer of the Notes Fails to Executed the Contractor AgreementNaught
(6) The Actual Write-off Accounts Receivable
Naught
5. 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 withdrawn bad debt provision separately | 23,377,223.66 | 2.87% | 16,266,810.09 | 69.58% | 7,110,413.57 | 23,377,223.66 | 2.65% | 16,266,810.09 | 69.58% | 7,110,413.57 |
| Of which: | ||||||||||
| Accounts receivable withdrawn bad debt provision by group | 792,053,023.50 | 97.13% | 33,336,071.31 | 4.21% | 758,716,952.19 | 860,060,668.85 | 97.35% | 32,750,486.37 | 3.81% | 827,310,182.48 |
| Of which: | ||||||||||
| Total | 815,430,247.16 | 100.00% | 49,602,881.40 | 6.08% | 765,827,365.76 | 883,437,892.51 | 100.00% | 49,017,296.46 | 5.55% | 834,420,596.05 |
Individual withdrawal of bad debt provision:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Withdrawal reason | |
| Customer A | 14,220,827.14 | 7,110,413.57 | 50.00% | Involved in the lawsuit, the Company won the lawsuit in the first instance, and the other side has appealed. |
| Customer B | 9,156,396.52 | 9,156,396.52 | 100.00% | Involved in the lawsuit, the case hasn’t been finalized |
| Total | 23,377,223.66 | 16,266,810.09 | -- | -- |
Withdrawal of bad debt provision by group:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Credit risk group | 792,053,023.50 | 33,336,071.31 | 4.21% |
| Total | 792,053,023.50 | 33,336,071.31 | -- |
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 724,279,399.86 |
| 1 to 2 years | 30,884,789.03 |
| 2 to 3 years | 7,653,591.61 |
| 3 to 4 years | 2,782,638.29 |
| 4 to 5 years | 226,946.97 |
| Over 5 years | 0.00 |
| Total | 765,827,365.76 |
(2) Accounts Receivable Withdrawn, Reversed or Collected during the Reporting PeriodInformation of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning amount | Changes in the Reporting Period | Ending balance | ||
| Withdrawal | Reversal or recovery | Write-off | |||
| Accounts receivable | 49,017,296.46 | 696,350.03 | 0.00 | 110,765.09 | 49,602,881.40 |
| Total | 49,017,296.46 | 696,350.03 | 110,765.09 | 49,602,881.40 | |
Of which bad debt provision recovered or reversed with significant amount during Reporting Period:
Naught
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
| Item | Amount |
| No. 1 | 110,652.83 |
| Other retails accounts | 112.26 |
Of which verification of significant accounts receivable:
Naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to the Arrears PartyUnit: RMB
| Name of units | Relationship with the Company | Carrying amount | Amount of bad debt provision withdrawn | Proportion to total accounts receivable (%) |
| No. 1 | Non-related party | 116,548,474.42 | 3,496,454.23 | 14.29% |
| No. 2 | Non-related party | 21,132,097.12 | 691,796.76 | 2.59% |
| No. 3 | Non-related party | 19,446,088.18 | 876,795.88 | 2.38% |
| No. 4 | Non-related party | 17,103,092.54 | 513,092.78 | 2.10% |
| No. 5 | Non-related party | 16,775,164.92 | 503,254.95 | 2.06% |
| Total | 191,004,917.18 | 6,081,394.60 | 23.42% |
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts ReceivableNaught
6. Accounts Receivable Financing
Naught
7. Prepayment
(1) Listed by Aging
Unit: RMB
| Aging | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 7,024,075.66 | 59.07% | 8,074,848.21 | 58.46% |
| 1 to 2 years | 2,549,809.80 | 21.44% | 3,525,963.03 | 25.53% |
| 2 to 3 years | 706,193.75 | 5.94% | 721,403.24 | 5.22% |
| Over 3 years | 1,611,051.65 | 13.55% | 1,489,690.70 | 10.79% |
| Total | 11,891,130.86 | -- | 13,811,905.18 | -- |
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in time:
Naught
(2) Top 5 of the Ending Balance of the Prepayments Collected according to the Prepayment Target
Unit: RMB
| Name of units | Relationship with the Company | Ending balance | Proportion to total prepayments (%) | Aging |
| No. 1 | Non-related supplier | 1,190,838.91 | 10.01% | Within 1 year |
| No. 2 | Non-related supplier | 1,043,968.84 | 8.78% | Within 1 year |
| No. 3 | Non-related supplier | 600,525.92 | 5.05% | Within 2 years |
| No. 4 | Non-related supplier | 591,568.29 | 4.97% | Within 2 years |
| No. 5 | Non-related supplier | 418,205.26 | 3.52% | Within 1 year |
| Total | 3,845,107.22 | 32.33% |
8. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | 5,828,623.70 | 5,152,364.04 |
| Dividend receivable | 0.00 | 0.00 |
| Other receivables | 21,236,642.37 | 16,593,326.49 |
| Total | 27,065,266.07 | 21,745,690.53 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deposits on a regular basis | 1,575,001.54 | 56,317.78 |
| Entrusted loan | 0.00 | |
| Bond investment | 0.00 | |
| Structural deposit | 2,400,361.88 | 3,151,895.54 |
| Bank financial products | 1,853,260.28 | 1,944,150.72 |
| Total | 5,828,623.70 | 5,152,364.04 |
2) Significant Overdue Interest
Naught
3) Information of Withdrawal of Bad Debt Provision
□Applicable √Not applicable
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Accounts Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Staff borrow and deposit | 6,418,419.33 | 3,451,053.16 |
| VAT export tax refunds | 6,006,579.00 | 6,252,642.96 |
| Performance bond | 3,949,456.48 | 2,905,450.00 |
| Rent, water & electricity fees | 1,516,762.13 | 765,582.10 |
| Other | 5,017,418.94 | 4,549,969.87 |
| Total | 22,908,635.88 | 17,924,698.09 |
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment | Expected loss in the duration (credit impairment |
| not occurred) | occurred) | |||
| Balance of 1 January 2019 | 427,381.20 | 903,990.40 | 1,331,371.60 | |
| Balance of 1 January 2019 in the current period | —— | —— | —— | —— |
| Withdrawal of the current period | 149,282.77 | 191,339.14 | 340,621.91 | |
| Balance of 30 June 2019 | 576,663.97 | 1,095,329.54 | 1,671,993.51 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable √Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 18,645,468.79 |
| 1 to 2 years | 1,584,151.10 |
| 2 to 3 years | 938,235.43 |
| 3 to 4 years | 11,181.16 |
| 4 to 5 years | 57,605.89 |
| Over 5 years | 0.00 |
| Total | 21,236,642.37 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |
| Withdrawal | Reversal or recovery | |||
| Other receivables | 1,331,371.60 | 340,621.91 | 1,671,993.51 | |
| Total | 1,331,371.60 | 340,621.91 | 1,671,993.51 | |
Of which bad debt provision reversed or recovered with significant amount during Reporting Period:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to ending | Ending balance of |
| balance of other receivables (%) | bad debt provision | ||||
| No. 1 | Export rebates | 6,006,579.00 | Within 1 year | 26.22% | 180,197.37 |
| No. 2 | Social insurance | 1,532,340.79 | Within 1 year | 6.69% | 45,970.22 |
| No. 3 | Other | 1,296,947.31 | 1 to 3 years | 5.66% | 314,327.63 |
| No. 4 | Other | 1,157,064.20 | Within 1 year | 5.05% | 34,711.93 |
| No. 5 | Petty cash | 1,151,893.62 | 1 to 3 years | 5.03% | 70,085.15 |
| Total | -- | 11,144,824.92 | -- | 48.65% | 645,292.30 |
6) Accounts Receivable Involving Government Subsidies
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other ReceivablesNaught
9. Inventory
Whether the Company has executed the new income standards
□ Yes √ No
(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 | 101,814,729.03 | 2,221,937.15 | 99,592,791.88 | 126,493,040.39 | 1,912,404.69 | 124,580,635.70 |
| Goods in process | 67,462,606.70 | 67,462,606.70 | 34,923,287.33 | 34,923,287.33 | ||
| Inventory goods | 393,861,262.51 | 30,812,489.13 | 363,048,773.38 | 495,768,205.24 | 25,743,927.08 | 470,024,278.16 |
| Semi-finished goods | 112,541,908.64 | 906,893.85 | 111,635,014.79 | 135,536,163.37 | 787,982.05 | 134,748,181.32 |
| Low priced and easily worn articles | 3,247,274.19 | 3,247,274.19 | 3,043,216.49 | 3,043,216.49 | ||
| Total | 678,927,781.07 | 33,941,320.13 | 644,986,460.94 | 795,763,912.82 | 28,444,313.82 | 767,319,599.00 |
Whether the Company need satisfy relevant disclosure requirements stated in SZSE Industrial Information Disclosure GuidanceNo.4---Listed Company Specialized in Seed Industry and Planting Businesses or not?No
(2) Falling Price Reserves of Inventory
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | ||
| Withdrawal | Other | Reversal or write-off | Other | |||
| Raw materials | 1,912,404.69 | 1,217,399.07 | 907,866.61 | 2,221,937.15 | ||
| Inventory goods | 25,743,927.08 | 10,637,928.27 | 5,569,366.22 | 30,812,489.13 | ||
| Semi-finished goods | 787,982.05 | 383,916.87 | 265,005.07 | 906,893.85 | ||
| Total | 28,444,313.82 | 12,239,244.21 | 6,742,237.90 | 33,941,320.13 | ||
Reason for withdrawal and reversal of falling price reserves of inventories
| 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 |
(3) Notes to the Ending Balance of Inventory Including Capitalized Borrowing ExpenseNot applicable
(4) Completed Unsettled Assets Formed from the Construction Contact at the Period-endNaught
10. Contract Assets
Naught
11. Held-for-Sale Assets
Naught
12. Current Portion of Non-current Assets
Naught
13. Other Current Assets
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
| Item | Ending balance | Beginning balance |
| Deductible input tax of VAT | 38,945,157.63 | 21,691,700.53 |
| Advance payment of enterprise income tax | 2,401,962.77 | |
| Bank financial products (Note) | 295,000,000.00 | 240,000,000.00 |
| Structural deposits (Note) | 580,000,000.00 | 600,000,000.00 |
| Total | 913,945,157.63 | 864,093,663.30 |
Other notes:
Note: The bank principal-guaranteed financial products with maturity date more than three months but investment cycle shorter thana year and structural deposit products which cannot be terminated in advance.
14. Creditors' Investment
Naught
15. Other Creditors' Investment
Naught
16. Long-term Accounts Receivable
Naught
17. Long-term Equity Investment
Unit: RMB
| Investees | Beginning balance | Increase/decrease | Ending balance | Ending balance of depreciation reserves | |||||||
| 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 depreciation reserves | Other | ||||
| I. Joint ventures | |||||||||||
| II. Associated enterprises | |||||||||||
| Shenzhen Primatron | 182,458,559.69 | 784,711.98 | 3,120,585.75 | 180,122,685.92 | |||||||
| ix (Nanho) Electronics Ltd. | |||||||||||
| Subtotal | 182,458,559.69 | 784,711.98 | 3,120,585.75 | 180,122,685.92 | |||||||
| Total | 182,458,559.69 | 784,711.98 | 3,120,585.75 | 180,122,685.92 |
18. Other Equity Instrument Investment
Unit: RMB
| Item | Ending balance | Beginning balance |
| Non-listed equity investment | 297,628,309.40 | 297,628,309.40 |
| Listed equity investment | 666,584,409.99 | 594,088,280.80 |
| Total | 964,212,719.39 | 891,716,590.20 |
Disclosure of Non-trading Equity Instrument Investment
Unit: RMB
| Item | Dividend income recognized | Accumulative gains | Accumulative losses | Amount of other comprehensive income transferred to retained earnings | Reason for assigning to measure in fair value and the changes included in the current gains and losses | Reason for other comprehensive income transferred to retained earnings |
| Shares of Guoxuan High-tech | 375,686,137.61 | |||||
| Shares of Everbright Bank | 2,986,027.39 | 47,013,384.92 | ||||
| Total | 2,986,027.39 | 422,699,522.53 |
19. Other Non-current Financial Assets
Naught
20. Investment Property
Naught
21. Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 586,093,658.59 | 512,106,912.39 |
| Disposal of fixed assets | 0.00 | 0.00 |
| Total | 586,093,658.59 | 512,106,912.39 |
(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 | 710,892,641.29 | 721,559,752.40 | 22,584,005.26 | 27,863,135.01 | 1,482,899,533.96 |
| 2. Increased amount of the period | 96,636,567.00 | 8,632,421.52 | 92,758.58 | 639,458.50 | 106,001,205.60 |
| (1) Purchase | 4,044,140.03 | 92,758.58 | 639,458.50 | 4,776,357.11 | |
| (2) Transfer from construction in progress | 96,636,567.00 | 4,588,281.49 | 101,224,848.49 | ||
| (3) Enterprise combination increase | |||||
| 3. Decreased amount of the period | 1,209,668.15 | 431,957.26 | 49,799.75 | 1,691,425.16 | |
| (1) Disposal or scrap | 1,159,375.15 | 431,957.26 | 49,799.75 | 1,641,132.16 | |
| (2) Equipment transformation | 50,293.00 | 50,293.00 | |||
| 4. Ending balance | 807,529,208.29 | 728,982,505.77 | 22,244,806.58 | 28,452,793.76 | 1,587,209,314.40 |
| II. Accumulative depreciation | |||||
| 1. Beginning balance | 432,350,311.91 | 497,669,898.94 | 16,516,228.63 | 21,965,331.34 | 968,501,770.82 |
| 2. Increased amount of the period | 9,828,642.78 | 20,205,006.36 | 561,299.96 | 1,290,449.88 | 31,885,398.98 |
| (1) Withdrawal | 9,828,642.78 | 20,205,006.36 | 561,299.96 | 1,290,449.88 | 31,885,398.98 |
| 3. Decreased amount of the period | 1,104,695.59 | 410,359.40 | 47,309.75 | 1,562,364.74 | |
| (1) Disposal or scrap | 1,093,945.45 | 410,359.40 | 47,309.75 | 1,551,614.60 | |
| (2) Equipment transformation | 10,750.14 | 10,750.14 | |||
| 4. Ending balance | 442,178,954.69 | 516,770,209.71 | 16,667,169.19 | 23,208,471.47 | 998,824,805.06 |
| III. Depreciation reserves | |||||
| 1. Beginning balance | 0.00 | 2,290,422.72 | 0.00 | 428.03 | 2,290,850.75 |
| 2. Increased amount of the period | |||||
| (1) Withdrawal | |||||
| 3. Decreased amount of the period | |||||
| (1) Disposal or scrap | |||||
| 4. Ending balance | 2,290,422.72 | 428.03 | 2,290,850.75 | ||
| IV. Carrying value | |||||
| 1. Ending carrying value | 365,350,253.60 | 209,921,873.34 | 5,577,637.39 | 5,243,894.26 | 586,093,658.59 |
| 2. Beginning carrying value | 278,542,329.38 | 221,599,430.74 | 6,067,776.63 | 5,897,375.64 | 512,106,912.39 |
(2) List of Temporarily Idle Fixed Assets
Unit: RMB
| Item | Original carrying value | Accumulated depreciation | Depreciation reserves | Carrying value | Note |
| T5, T8, energy-saving lamp production line | 7,940,325.52 | 5,945,024.07 | 1,943,741.93 | 51,559.52 | Name of the announcement: Announcement on Withdrawing the |
(3) Fixed Assets Leased in by Financing Lease
Naught
(4) Fixed Assets Leased out by Operation Lease
Naught
(5) Fixed Assets Failed to Accomplish Certification of Property
Naught
(6) Disposal of Fixed Assets
Unit: RMB
Preparation for theAssets Impairmenton the IdleEquipments andConstruction inProgress; theAnnouncement No.:
2015-030; disclosurewebsite:
www.cninfo.com.cnItem
| Item | Ending balance | Beginning balance |
| Total | 0.00 | 0.00 |
22. Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
| Construction in progress | 158,184,271.59 | 224,624,447.16 |
| Engineering materials | 0.00 | 0.00 |
| Total | 158,184,271.59 | 224,624,447.16 |
(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 | 158,184,271.59 | 158,184,271.59 | 224,624,447.16 | 224,624,447.16 | ||
| Total | 158,184,271.59 | 158,184,271.59 | 224,624,447.16 | 224,624,447.16 |
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
| Item | Budget | Beginning balance | Increased amount | Transferred in fixed assets | Other decreased amount | Ending balance | Proportion of accumulated investment in constructions to budget | Job schedule | Accumulated amount of interest capitalization | Of which: amount of capitalized interests for the Reporting Period | Capitalization rate of interests for the Reporting Period | Capital resources |
| Fuwan intelligent workshop H | 52,040,000.00 | 41,583,109.95 | 5,042,505.78 | 33,168.62 | 46,592,447.11 | 89.53% | 99.00% | Other | ||||
| Gaoming R&D workshop 11, 12, 13, 14 and 18 | 40,000,000.00 | 12,615,097.54 | 11,372,859.14 | 1,212,576.14 | 22,775,380.54 | 56.94% | 65.00% | Other | ||||
| Fuwan standard workshop K1 | 23,775,000.00 | 19,241,452.36 | 439,002.14 | 210,108.52 | 19,470,345.98 | 81.89% | 99.00% | Other | ||||
| Fuwan standard workshop J3 | 23,775,000.00 | 19,015,075.82 | 305,357.32 | 210,108.51 | 19,110,324.63 | 80.38% | 99.00% | Other | ||||
| Family housing of Gao Ming, | 10,100,000.00 | 7,693,423.10 | 920,308.42 | 3,663.06 | 8,610,068.46 | 85.25% | 99.00% | Other |
| Building 8# | ||||||||||||
| Employee Housing Seven of Fuwan | 6,500,000.00 | 5,643,729.10 | 599,922.96 | 99,829.23 | 6,143,822.83 | 94.52% | 99.00% | Other | ||||
| Automatic system of intelligent production workshop (workshop H) | 21,920,000.00 | 11,604,461.41 | 0.00 | 486,620.65 | 11,117,840.76 | 50.72% | 85.00% | Other | ||||
| Fuwan standard workshop J1 | 22,310,000.00 | 18,583,845.29 | 1,267,022.40 | 19,850,867.69 | 100.00% | 100.00% | Other | |||||
| Fuwan standard workshop J2 | 22,310,000.00 | 18,367,669.88 | 1,122,125.31 | 19,489,795.19 | 100.00% | 100.00% | Other | |||||
| Fuwan standard workshop K2 | 26,200,000.00 | 21,702,430.93 | 3,259,153.06 | 24,961,583.99 | 100.00% | 100.00% | Other | |||||
| Fuwan standard workshop K3 | 26,200,000.00 | 21,942,287.85 | 3,841,306.92 | 25,783,594.77 | 100.00% | 100.00% | Other | |||||
| Total | 275,130,000.00 | 197,992,583.23 | 28,169,563.45 | 90,085,841.64 | 2,256,074.73 | 133,820,230.31 | -- | -- | -- |
(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress
Naught
(4) Engineering Materials
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Total | 0.00 | 0.00 | ||||
23. Productive Living Assets
(1) Productive Biological Assets Adopting Cost Measurement Mode
□ Applicable √ Not applicable
(2) Productive Biological Assets Adopting Fair Value Measurement Mode
□ Applicable √ Not applicable
24. Oil and Gas Assets
□ Applicable √ Not applicable
25. Right-to-use Assets
Naught
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
| Item | Land use right | Patent | Non-patent technology | Using right of software | Total |
| I. Original carrying value | |||||
| 1. Beginning balance | 233,741,723.60 | 200,000.00 | 2,773,651.87 | 236,715,375.47 | |
| 2. Increased amount of the period | |||||
| (1) Purchase | |||||
| (2) Internal R&D |
| (3) Business combination increase | |||||
| 3. Decreased amount of the period | |||||
| (1) Disposal | |||||
| 4. Ending balance | 233,741,723.60 | 200,000.00 | 2,773,651.87 | 236,715,375.47 | |
| II. Accumulated amortization | |||||
| 1. Beginning balance | 61,904,106.59 | 200,000.00 | 1,885,991.67 | 63,990,098.26 | |
| 2. Increased amount of the period | 2,157,510.86 | 56,849.34 | 2,214,360.20 | ||
| (1) Withdrawal | 2,157,510.86 | 56,849.34 | 2,214,360.20 | ||
| 3. Decreased amount of the period | |||||
| (1) Disposal | |||||
| 4. Ending balance | 64,061,617.45 | 200,000.00 | 1,942,841.01 | 66,204,458.46 | |
| III. Depreciation reserves | |||||
| 1. Beginning balance | |||||
| 2. Increased amount of the period | |||||
| (1) Withdrawal | |||||
| 3. Decreased amount of the period | |||||
| (1) Disposal | |||||
| 4. Ending balance | |||||
| IV. Carrying value | |||||
| 1. Ending carrying value | 169,680,106.15 | 830,810.86 | 170,510,917.01 |
| 2. Beginning carrying value | 171,837,617.01 | 887,660.20 | 172,725,277.21 |
(2) Land Use Right with Certificate of Title Uncompleted
Naught
27. R&D Expense
Naught
28. Goodwill
Naught
29. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount | Amortization amount of the period | Other decreased amount | Ending balance |
| Engineering decoration expenses | 6,004,040.42 | 2,914,673.24 | 2,832,554.17 | 6,086,159.49 | |
| Other | 848,944.93 | 1,792,321.52 | 365,824.99 | 2,275,441.46 | |
| Total | 6,852,985.35 | 4,706,994.76 | 3,198,379.16 | 8,361,600.95 |
30. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that 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 | |
| Provision for impairment of assets | 93,357,045.81 | 14,481,934.60 | 86,933,832.63 | 13,391,933.49 |
| Unrealized profit of internal transactions | 1,363,677.73 | 204,551.66 | 1,187,129.74 | 178,069.46 |
| Depreciation of fixed assets | 74,907,420.57 | 11,577,365.09 | 75,022,616.39 | 11,594,644.46 |
| Payroll payable | 53,463,130.75 | 8,019,469.61 | 83,969,846.94 | 12,595,477.04 |
| Changes in fair value of trading financial liabilities | 1,473,400.00 | 221,010.00 | 477,200.00 | 71,580.00 |
| Total | 224,564,674.86 | 34,504,330.96 | 247,590,625.70 | 37,831,704.45 |
(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 other equity instrument investment | 422,699,522.53 | 63,404,928.38 | 350,203,393.34 | 52,530,509.00 |
| Total | 422,699,522.53 | 63,404,928.38 | 350,203,393.34 | 52,530,509.00 |
(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 | 34,504,330.96 | 37,831,704.45 | ||
| Deferred income tax liabilities | 63,404,928.38 | 52,530,509.00 |
(4) List of Unrecognized Deferred Income Tax Assets
Naught
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following YearsNaught
31. Other Non-current Assets
Whether the Company has executed the new income standards
□ Yes √ No
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 | 5,610,971.02 | 6,549,735.42 |
| Total | 47,366,671.02 | 48,305,435.42 |
32. Short-term Borrowings
Naught
33. Trading Financial Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Of which: | ||
| Specified as financial liabilities at fair value through profit or loss | 1,473,400.00 | 477,200.00 |
| Of which: | ||
| Total | 1,473,400.00 | 477,200.00 |
34. Derivative Financial Liabilities
Naught
35. Notes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Trade acceptance | 0.00 | |
| Bank’s acceptance bill | 375,906,405.75 | 452,683,676.97 |
| Total | 375,906,405.75 | 452,683,676.97 |
The total amount of the due but not paid notes payable at the end of the period was of RMB0.00.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Accounts payable | 508,983,045.12 | 532,597,143.95 |
| Total | 508,983,045.12 | 532,597,143.95 |
(2) Significant Accounts Payable Aging over One Year
Naught
37. Advances from Customers
Whether the Company has executed the new income standards
□ Yes √ No
(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advances from customers | 35,916,666.09 | 43,850,788.04 |
| Total | 35,916,666.09 | 43,850,788.04 |
(2) Significant Advances from Customers Aging over One Year
Naught
(3) Settled but Uncompleted Projects Formed by Construction Contracts at the Period-endNaught
38. Contract Liabilities
Naught
39. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 96,088,621.59 | 271,353,842.77 | 302,643,615.93 | 64,798,848.43 |
| II. Post-employment benefit-defined contribution plans | 20,142,130.34 | 20,142,130.34 | ||
| Total | 96,088,621.59 | 291,495,973.11 | 322,785,746.27 | 64,798,848.43 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 95,725,486.52 | 245,059,024.54 | 276,318,324.20 | 64,466,186.86 |
| 2. Employee welfare | 6,362,973.01 | 6,362,973.01 | ||
| 3. Social insurance | 12,654,519.65 | 12,654,519.65 | ||
| Of which: Medical insurance premiums | 10,015,605.90 | 10,015,605.90 | ||
| Work-related injury insurance | 514,975.61 | 514,975.61 | ||
| Maternity insurance | 2,123,938.14 | 2,123,938.14 | ||
| 4. Housing fund | 5,257,270.50 | 5,257,270.50 | ||
| 5.Labor union budget and employee education budget | 363,135.07 | 2,020,055.07 | 2,050,528.57 | 332,661.57 |
| Total | 96,088,621.59 | 271,353,842.77 | 302,643,615.93 | 64,798,848.43 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 19,470,095.01 | 19,470,095.01 | ||
| 2. Unemployment insurance | 672,035.33 | 672,035.33 | ||
| Total | 20,142,130.34 | 20,142,130.34 |
40. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 12,661,807.02 | 3,147,064.81 |
| Corporate income tax | 6,230,743.24 | 14,907,122.79 |
| Personal income tax | 1,273,129.98 | 704,101.03 |
| Urban maintenance and construction tax | 1,627,040.15 | 761,673.03 |
| Education surcharge | 1,162,171.53 | 544,052.17 |
| Property tax | 3,035,301.90 | 2,374,748.34 |
| Land use tax | 2,311,597.02 | 2,750,413.52 |
| Other | 170,816.92 | 165,290.68 |
| Total | 28,472,607.76 | 25,354,466.37 |
41. Other Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Other payables | 47,164,268.80 | 43,115,011.68 |
| Total | 47,164,268.80 | 43,115,011.68 |
(1) Interest Payable
Naught
(2) Dividends Payable
Naught
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
| Item | Ending balance | Beginning balance |
| Compensation for lawsuit | 1,126,231.95 | 1,762,533.43 |
| Performance bond | 31,524,138.52 | 27,413,254.10 |
| Other | 14,513,898.33 | 13,939,224.15 |
| Total | 47,164,268.80 | 43,115,011.68 |
2) Significant Other Payables Aging over One Year
Naught
42. Held-for-sale Liabilities
Naught
43. Current Portion of Non-current Liabilities
Naught
44. Other Current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Naught
45. Long-term Borrowings
Naught
46. Bonds Payable
Naught
47. Lease Liabilities
Naught
48. Long-term Payables
Naught
49. Long-term Payroll Payable
Naught
50. Provisions
Whether the Company has executed the new income standards
□ Yes √ No
Naught
51. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Reason for formation |
| Government subsidies | 155,000.31 | 77,499.96 | 77,500.35 | Government subsidies related to assets/income | |
| Total | 155,000.31 | 77,499.96 | 77,500.35 | -- |
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 to income |
| Production line of 50 million energy-saving fluorescent lamp | 155,000.31 | 77,499.96 | 77,500.35 | Related to assets | ||||
| Total | 155,000.31 | 77,499.96 | 77,500.35 |
52. Other Non-current Liabilities
Whether the Company has executed the new income standards
□ Yes √ No
Naught
53. 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 | 1,399,346,154.00 | 1,399,346,154.00 | |||||
54. Other Equity Instruments
Naught
55. Capital Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Capital premium | 151,362,201.53 | 151,362,201.53 |
| (premium on stock) | ||||
| Other capital reserves | 7,245,971.54 | 7,245,971.54 | ||
| Total | 158,608,173.07 | 158,608,173.07 |
56. Treasury Shares
Naught
57. 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: Recorded in other comprehensive income in prior period and transferred in retained earnings 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 | |||
| I. Other comprehensive income that may not subsequently be reclassified to profit or loss | 297,672,884.34 | 72,496,129.19 | 10,874,419.38 | 61,621,709.81 | 359,294,594.15 | |||
| Changes in fair value of other equity instrument investment | 297,672,884.34 | 72,496,129.19 | 10,874,419.38 | 61,621,709.81 | 359,294,594.15 | |||
| II. Other comprehensive income that may subsequently be reclassified to profit or loss | -5,011.54 | 14,177.84 | 14,177.84 | 9,166.30 | ||||
| Differences arising from translation of foreign currency-denominated financial statements | -5,011.54 | 14,177.84 | 14,177.84 | 9,166.30 | ||||
| Total of other comprehensive income | 297,667,872.80 | 72,510,307.03 | 10,874,419.38 | 61,635,887.65 | 359,303,760.45 | |||
58. Specific Reserve
Naught
59. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserves | 672,569,617.84 | 672,569,617.84 | ||
| Discretionary surplus reserves | 136,886,568.36 | 136,886,568.36 | ||
| Total | 809,456,186.20 | 809,456,186.20 |
60. Retained Earnings
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Beginning balance of retained earnings before adjustments | 1,654,181,032.39 | 1,731,600,796.18 |
| Beginning balance of retained earnings after adjustments | 1,654,181,032.39 | 1,731,600,796.18 |
| Add: Net profit attributable to owners of the Company as the parent | 167,275,725.75 | 229,277,455.82 |
| Dividend of ordinary shares payable | 218,298,000.02 | 418,531,713.57 |
| Ending retained earnings | 1,603,158,758.12 | 1,542,346,538.43 |
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained earnings was affected by retrospective adjustment conducted according to the Accounting Standardsfor Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
61. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same Period of last year |
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 1,670,888,644.93 | 1,283,982,749.97 | 2,048,839,316.62 | 1,568,876,663.19 |
| Other operations | 16,296,015.93 | 13,353,963.80 | 15,939,973.37 | 10,415,204.70 |
| Total | 1,687,184,660.86 | 1,297,336,713.77 | 2,064,779,289.99 | 1,579,291,867.89 |
Whether the Company has executed the new income standards
□ Yes √ No
62. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Urban maintenance and construction tax | 8,002,766.99 | 8,264,474.00 |
| Education surcharge | 5,716,249.15 | 5,949,176.10 |
| Property tax | 3,616,025.09 | 4,231,277.07 |
| Land use tax | 2,499,767.83 | 2,590,984.95 |
| Vehicle and vessel use tax | 4,952.48 | 6,668.80 |
| Stamp duty | 934,962.64 | 906,543.92 |
| Environmental protection tax | 61,544.56 | 13,393.40 |
| Total | 20,836,268.74 | 21,962,518.24 |
63. Selling Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Employee’s remuneration | 29,625,732.79 | 30,104,690.49 |
| Freight | 36,186,424.88 | 36,843,018.64 |
| Business travel charges | 5,908,417.09 | 4,436,361.10 |
| Business propagandize fees and advertizing fees | 23,221,696.87 | 9,922,450.58 |
| Dealer meeting expense | 2,629,705.03 | 2,444,484.12 |
| Sales promotion fees | 10,918,490.31 | 7,768,266.90 |
| Other | 14,920,099.41 | 12,397,738.64 |
| Total | 123,410,566.38 | 103,917,010.47 |
64. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Employee’s remuneration | 41,310,326.31 | 56,356,593.01 |
| Office expenses | 5,056,903.17 | 5,211,417.98 |
| Rent of land and management charge | 2,757,197.21 | 3,135,605.89 |
| Amortization of intangible assets | 2,214,360.20 | 2,157,008.85 |
| Depreciation charge | 7,701,119.24 | 7,681,086.49 |
| Other | 8,497,273.56 | 10,988,826.52 |
| Total | 67,537,179.69 | 85,530,538.74 |
65. R&D Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Employee’s remuneration | 23,210,591.76 | 13,466,962.82 |
| Expense on equipment debugging | 1,357,085.75 | 2,277,877.56 |
| Fees for certification testing | 2,197,635.38 | 1,851,079.26 |
| Material consumption | 1,955,730.02 | 598,544.26 |
| Charges related to patents | 187,908.12 | 494,973.06 |
| Depreciation and long-term prepayments | 303,946.75 | 169,890.88 |
| Other | 647,734.83 | 84,164.94 |
| Total | 29,860,632.61 | 18,943,492.78 |
Other notes:
1. The R&D expense of the Reporting Period was RMB10,917,139.83 with increase of 57.63% compared with that of last year whichwas due to the huge increase in labor costs compared with that of last year.
2. In the Company’s R&D activities, the expense on bench-scale and pilot-scale production is recorded in R&D expense, the revenuegenerated from the sale of products through bench-scale and pilot-scale production is recorded in main operation revenue, and thecosts incurred are recorded in the cost of sales of main operation.
66. Finance Costs
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Interest expense | ||
| Less: Interest income | 10,378,329.29 | 4,879,439.87 |
| Foreign exchange gains or losses | -303,552.28 | -9,341,097.44 |
| Other | 773,843.90 | 1,135,060.70 |
| Total | -9,908,037.67 | -13,085,476.61 |
67. Other Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Subsidy for stabilizing posts | 792,403.17 | |
| Supporting fund for import and export | 4,494,490.00 | |
| Competition among Hundreds of Enterprises | 700,000.00 | |
| Other | 329,380.00 | 225,982.00 |
| Total | 5,523,870.00 | 1,018,385.17 |
68. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | 784,711.98 | 179,781.56 |
| Investment income from holding of trading financial assets | 1,750,000.00 | |
| Investment income from disposal of trading financial assets | 13,550,000.00 | |
| Investment income from holding of other equity instrument investment | 13,957,444.99 | |
| Investment income from holding of available–for-sale financial assets | 10,971,417.60 | |
| Income received from financial products and structural deposits | 14,528,002.77 | 13,358,671.20 |
| Other | -730,500.00 | |
| Total | 43,839,659.74 | 24,509,870.36 |
69. Net Gain on Exposure Hedges
Naught
70. Gain on Changes in Fair Value
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Trading financial liabilities | -996,200.00 |
| Total | -996,200.00 |
71. Credit Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Bad debt loss of other receivables | -340,621.91 | |
| Bad debt loss of accounts receivable | -696,350.03 | |
| Total | -1,036,971.94 |
72. Assets Impairment Loss
Whether the Company has executed the new income standards
□ Yes √ No
Unit: RMB
| Item | Reporting Period | Same period of last year |
| I. Bad debt loss | -8,366,488.61 | |
| II. Loss on inventory valuation | -12,239,244.21 | -7,640,381.22 |
| Total | -12,239,244.21 | -16,006,869.83 |
73. Assets Disposal Income
Naught
74. 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 | 1,202,579.96 | 914,699.96 | 1,202,579.96 |
| Other | 739,292.61 | 755,156.47 | 739,292.61 |
| Total | 1,941,872.57 | 1,669,856.43 | 1,941,872.57 |
Government subsidies recorded in 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 to 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 regulations of national policy) | No | No | 77,499.96 | 77,499.96 | Related to assets | |
| Other miscellaneous government subsidies | Rewards | Subsidy from R&D Technical updating and transformation, etc. | No | No | 1,125,080.00 | 837,200.00 | Related to income | |
| Total | 1,202,579.96 | 914,699.96 |
75. 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 | 53,336.67 | 70,182.97 | 53,336.67 |
| Of which: Losses from disposal of fixed assets | 53,336.67 | 70,182.97 | 53,336.67 |
| Losses on inventories | 170,523.69 | 170,523.69 | |
| Penalty | 4,995.00 | 4,995.00 | |
| Delaying payment | 239,571.80 | 239,571.80 | |
| Lawsuit compensation | 65,000.00 | ||
| Other | 9,964.81 | 56,566.45 | 9,964.81 |
| Total | 478,391.97 | 191,749.42 | 478,391.97 |
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Current income tax expense | 23,839,915.08 | 44,301,342.36 |
| Deferred income tax expense | 3,327,373.49 | 2,742,803.34 |
| Total | 27,167,288.57 | 47,044,145.70 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | 194,665,931.53 |
| Current income tax expense accounted at statutory/applicable tax rate | 28,967,898.33 |
| Influence of applying different tax rates by subsidiaries | 1,166,469.64 |
| Influence of income tax before adjustment | -443,721.62 |
| Influence of non-taxable income | -2,523,357.78 |
| Income tax expense | 27,167,288.57 |
77. Other Comprehensive Income
Refer to Note 57 for details.
78. Cash Flow Statement
(1) Cash Generated from Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Deposit interest | 8,960,610.92 | 10,461,602.02 |
| Income from insurance compensation | 245,123.30 | 50,333.58 |
| Cash deposit income | 14,070,620.26 | 1,729,639.24 |
| Property and rental income | 3,133,802.35 | 2,110,828.30 |
| Income from subsidy | 6,634,379.76 | 1,911,331.54 |
| Income from waste | 6,413,317.83 | 8,814,180.41 |
| Other | 5,704,607.15 | 8,467,917.26 |
| Total | 45,162,461.57 | 33,545,832.35 |
(2) Cash Used in Other Operating Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Administrative expense paid in cash | 15,681,410.19 | 20,080,875.34 |
| Selling expense paid in cash | 80,443,469.23 | 70,572,897.55 |
| Finance costs paid in cash | 237,571.61 | 343,210.94 |
| Returned cash deposit | 7,855,566.14 | |
| Other | 6,902,354.83 | 6,351,791.98 |
| Total | 111,120,372.00 | 97,348,775.81 |
(3) Cash Generated from Other Investing Activities
Naught
(4) Cash Used in Other Investing Activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| 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 Activities
Naught
(6) Cash Used in Other Financing Activities
Naught
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Reporting Period | Same period of last year |
| 1. Reconciliation of net profit to net cash flows generated from operating activities: | -- | -- |
| Net profit | 167,498,642.96 | 232,174,685.49 |
| Add: Provision for impairment of assets | 13,276,216.15 | 16,006,869.83 |
| Depreciation of fixed assets, oil-gas assets, and productive living assets | 31,885,398.98 | 34,998,383.79 |
| Amortization of intangible assets | 2,214,360.20 | 2,157,008.85 |
| Amortization of long-term prepaid expenses | 3,198,379.16 | 2,859,910.25 |
| Losses from disposal of fixed assets (gains: negative) | 53,336.67 | 70,182.97 |
| Losses from changes in fair value (gains: negative) | 996,200.00 | |
| Investment loss (gains: negative) | -43,839,659.74 | -24,509,870.36 |
| Decrease in deferred income tax assets (increase: negative) | 3,327,373.49 | 2,742,803.34 |
| Decrease in inventory (gains: negative) | 116,836,131.75 | 23,967,773.95 |
| Decrease in accounts receivable generated from operating activities (gains: negative) | 12,637,048.69 | -280,200,774.50 |
| Increase in accounts payable used in operating activities (decrease: negative) | -117,401,594.83 | 134,456,804.77 |
| Net cash generated from/used in operating activities | 190,681,833.48 | 144,723,778.38 |
| 2.Significant investing and financing activities without involvement of cash receipts and payments | -- | -- |
| 3.Net increase/decrease of cash and cash equivalents: | -- | -- |
| Ending balance of cash | 767,162,849.74 | 911,663,899.88 |
| Less: Beginning balance of cash | 795,285,756.38 | 570,184,208.96 |
| Net increase in cash and cash equivalents | -28,122,906.64 | 341,479,690.92 |
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught
(3) Net Cash Received from Disposal of the Subsidiaries
Naught
(4) Cash and Cash Equivalents
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 767,162,849.74 | 795,285,756.38 |
| Including: Cash on hand | 41,073.13 | 34,937.47 |
| Bank deposit on demand | 765,976,136.79 | 783,346,295.87 |
| Other monetary capital on demand | 1,145,639.82 | 11,904,523.04 |
| III. Ending balance of cash and cash equivalents | 767,162,849.74 | 795,285,756.38 |
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of ending balance of the Same period of last year adjusted and the amount adjusted:
Not applicable
81. Assets with Restricted Ownership or Right to Use
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary capital | 62,346,866.91 | Security deposit of notes and security deposit of future foreign exchange settlement |
| Notes receivable | 79,189,073.66 | Pledged for notes pool |
| Total | 141,535,940.57 | -- |
82. 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 | -- | -- | 2,363,055.17 |
| Of which: USD | 194,325.01 | 6.8747 | 1,335,926.15 |
| EUR | 131,396.83 | 7.8170 | 1,027,129.02 |
| HKD | |||
| Accounts receivable | -- | -- | 278,313,858.59 |
| Of which: USD | 40,483,782.36 | 6.8747 | 278,313,858.59 |
| EUR | |||
| HKD | |||
| Long-term borrowings | -- | -- | |
| Of which: USD | |||
| EUR | |||
| HKD | |||
| Advances from customers | 15,878,401.30 | ||
| Of which: USD | 2,250,062.46 | 6.8747 | 15,468,504.40 |
| EUR | 52,436.60 | 7.8170 | 409,896.90 |
| Prepayments | 1,462,174.10 | ||
| Of which: USD | 212,689.15 | 6.8747 | 1,462,174.10 |
| Other payables | 481,710.23 | ||
| Of which: USD | 70,070.00 | 6.8747 | 481,710.23 |
(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 applicable
83. Arbitrage
Naught
84. Government Subsidy
(1) Basic Information on Government Subsidy
Unit: RMB
| Type | Amount | Presented in | Charged to current profit or loss |
| Rewards for Competition among Hundreds of Enterprises | 700,000.00 | Other income | 700,000.00 |
| Supporting fund for import and export | 4,494,490.00 | Other income | 4,494,490.00 |
| Other | 329,380.00 | Other income | 329,380.00 |
| Production line of 50 million energy-saving fluorescent lamp | 77,499.96 | Non-operating income | 77,499.96 |
| Other miscellaneous government subsidies | 1,125,080.00 | Non-operating income | 1,125,080.00 |
| Total | 6,726,449.96 | 6,726,449.96 |
(2) Return of Government Subsidy
□ Applicable √ Not applicable
85. Other
NaughtVIII. Changes of Consolidation Scope
1. Business Combination Not under the Same Control
Naught
2. Business Combination under the Same Control
Naught
3. Counter Purchase
Naught
4. Disposal of Subsidiary
Whether there is a single disposal of the investment to the subsidiary and lost control?
□ Yes √ No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□ Yes √ No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) and relevantinformation:
The original subsidiary not included in combination scope in the current yearOn September 7, 2018, the Company held the 26th meeting of the 8th Board of Directors, in which examined and approved theProposal on Cancelling the Wholly-owned Subsidiary Guangdong FSL Finance Leasing Co., Ltd.(hereinafter referred as “FSLLeasing Company). The Company received the Notice of Approval of Cancellation and Registration issued by Market Supervisionand Administration of Foshan on March 26, 2019 and has completed the registration cancellation of FSL Leasing Company. FSL
Leasing Company will not be included in the consolidated financial statements of the Company after cancelling thereof.
6. Other
NaughtIX. 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 Optoelectronics Co., Ltd. | Foshan | Foshan | Production and sales | 100.00% | Newly 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 | |
| Nanjing Fozhao Lighting Components Manufacturing | Nanjing | Nanjing | Production and sales | 100.00% | Acquired | |
| Co., Ltd. | ||||||
| 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 |
Notes: Holding proportion in subsidiary different from voting proportion:
NaughtBasis of holding half or less voting rights but still been controlled investee and holding more than half of the voting rights not beencontrolled investee:
NaughtSignificant structured entities and controlling basis in the scope of combination:
Basis of determining whether the Company is the agent or the principal:
NaughtOther notes:
Naught
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
| Name | Shareholding proportion of non-controlling interests | The profit or loss attributable to the non-controlling interests | Declaring dividends distributed to non-controlling interests | Balance of non-controlling interests at the period-end |
| Foshan Taimei Times Lamps and Lanterns Co., Ltd. | 30.00% | 452,768.42 | 8,560,833.21 | |
| FSL Zhida Electric Technology Co., Ltd. | 49.00% | -229,851.21 | 13,716,946.93 |
Holding proportion of minority shareholder in subsidiary different from voting proportion:
NaughtOther notes:
Naught
(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 and Lanterns Co., Ltd. | 36,400,405.91 | 19,106,461.76 | 55,506,867.67 | 26,970,756.97 | 26,970,756.97 | 35,881,053.56 | 19,031,531.64 | 54,912,585.20 | 27,885,702.58 | 27,885,702.58 | ||
| FSL Zhida Electric Technology Co., Ltd. | 74,496,865.78 | 10,281,076.04 | 84,777,941.82 | 41,692,335.84 | 41,692,335.84 | 74,044,533.25 | 10,388,813.87 | 84,433,347.12 | 40,878,657.04 | 40,878,657.04 | ||
| Total | 110,897,271.69 | 29,387,537.80 | 140,284,809.49 | 68,663,092.81 | 68,663,092.81 | 109,925,586.81 | 29,420,345.51 | 139,345,932.32 | 68,764,359.62 | 68,764,359.62 |
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. | 59,575,680.86 | 1,509,228.08 | 1,509,228.08 | 778,035.37 | 73,606,152.87 | 3,544,952.10 | 3,544,952.10 | 11,967,649.42 |
| FSL Zhida Electric Technology Co., Ltd. | 38,271,963.92 | -469,084.10 | -469,084.10 | 6,129,306.92 | 56,884,635.54 | 3,742,334.78 | 3,742,334.78 | -6,170,821.36 |
| Total | 97,847,644.78 | 1,040,143.98 | 1,040,143.98 | 6,907,342.29 | 130,490,788.41 | 7,287,286.88 | 7,287,286.88 | 5,796,828.06 |
(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 ofConsolidated Financial StatementsNaught
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling theSubsidiary
Naught
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught
(2) Main Financial Information of Significant Joint Ventures
Naught
(3) Main Financial Information of Significant Associated Enterprises
Naught
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
| Ending balance/Reporting Period | Beginning balance/The same period of last year | |
| Joint ventures: | -- | -- |
| The total of following items according to the shareholding proportions | -- | -- |
| Associated enterprises: | -- | -- |
| Total carrying value of investment | 180,122,685.92 | 182,458,559.69 |
| The total of following items according to the shareholding proportions | -- | -- |
| --Net profit | 784,711.98 | 179,781.56 |
| --Total comprehensive income | 784,711.98 | 179,781.56 |
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises toTransfer Funds to the CompanyNaught
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught
(7) The Unrecognized Commitment Related to Investment to Joint VenturesNaught
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated EnterprisesNaught
4. Significant Common Operation
Naught
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNaught
6. Other
Naught
X. The Risk Related to Financial InstrumentsThe 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 of thepolicies.
(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 of thecustomer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation,the Company should conduct necessary measures to requesting the payment timely.
(II) Liquidity 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 was sufficientcash to pay the due liabilities. The liquidity risk is centralized controlled by the Financial Department of theCompany. The financial department through supervising the balance of the cash and securities can be convert tocash at any time and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficientcash to pay the liabilities under the case of all reasonable prediction, Each financial liability of the Company was
estimated due within 1 year.
(III) Market riskMarket 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 risk
Exchange 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 June 30, 2019, all assets andliabilities of the Company were balances in RMB except that the balances of assets and liabilities presented in theNote VII (82) Foreign Currency Monetary Items were in USD and EUR. The exchange rate risk generated fromthose balance of assets and liabilities in foreign currency might influence the running performance of theCompany to some extent.The Company made efforts to avoid exchange rate risk through forward exchange settlement, improving operationmanagement and promoting the international competitiveness of the Company, etc.
2. Interest rate risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument change due tothe change of market price. There was no bank loan in the Company, thus no RMB benchmark interest rate changes
3. Other price risk
Naught
XI. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| 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 | -- | -- | -- | -- |
| (III) Other equity instrument investment | 666,584,409.99 | 666,584,409.99 | ||
| The total amount of assets consistently measured at fair value | 666,584,409.99 | 666,584,409.99 | ||
| (VII) Specified as financial liabilities at fair value through profit or loss | 1,473,400.00 | 1,473,400.00 | ||
| The total amount of liabilities consistently | 1,473,400.00 | 1,473,400.00 | ||
| measured at fair value | ||||
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
2. Market Price Recognition Basis for Consistent and Inconsistent Fair Value Measurement Items at Level
In line with the market price of shares on the balance sheet date and forward foreign exchange option exchange rate.
3. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 2Naught
4. Valuation Technique Adopted and Nature and Amount Determination of Important Parameters forConsistent and Inconsistent Fair Value Measurement Items at Level 3Naught
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning andEnding Carrying Value of Consistent Fair Value Measurement Items at Level 3Naught
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different LevelsNaught
7. Changes in the Valuation Technique in the Current Period and the Reason for Such ChangesNaught
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair ValueNaught
9. Other
Naught
XII. Related Party and Related-party Transactions
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 Investment Development Co., Ltd. | Shenzhen | Investment | RMB135.409614 million | 5.12% | 5.12% |
| Guangdong Electronics Information Industry Group Ltd. | Guangzhou | Sales & Production | RMB462 million | 4.74% | 4.74% |
| Rising Investment Development Co., Ltd. | Hong Kong | Investment | RMB 200 million and 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 parentThe largest shareholder of the Company, Hong Kong Wah Shing Holding Co., Ltd., was the wholly-owned subsidiary of ElectronicsGroup, and Electronics Group, Shenzhen Rising Investment Development Co., Ltd. (hereinafter referred to as “Shenzhen Rising”),Guangdong Rising Finance Holding Co., Ltd. (hereinafter referred to as “GD Rising Finance”) and Rising Investment DevelopmentCo., Ltd. (hereinafter referred to as “Rising Investment”) were the wholly-owned subsidiaries of Guangdong Rising AssetsManagement Co., Ltd. (hereinafter referred to as “Rising Company”). In line with the relevant stipulation of Corporation Law andRules on Listed Companies Acquisition, Electronics Group, Shenzhen Rising and Rising Investment were persons acting in concert,and the Rising Company was the actual controller of the Company. As of 30 June 2019, the aforesaid persons acting in concertholding total A, B share of the Company 359,632,344.00 shares, 25.70 % of total share equity of the Company.
The final controller of the Company was Guangdong Rising Assets Management Co., Ltd.
2. Subsidiaries of the Company
Refer to Note IX Equity in Other Entities-1. Equity in Subsidiaries for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note IX Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of significant joint venturesor associated enterprises of the Company.
4. Information on Other Related Parties
| Name | Relationship with the Company |
| PROSPERITY LAMPS & COMPONENTS LTD | Shareholder owning over 5% shares |
| 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 Vollsun Data Solid-state Storage Co., Ltd | Under same actual controller |
| Guangdong Rising Finance Limited | Under same actual controller |
| MTM Semiconductor Equipment Co., Ltd. | Under same actual controller |
| Henan Rising Technology Investment Co., Ltd. | Under same actual controller |
| Guangdong Electronic Technology Research Institute | Under same actual controller |
| Guangzhou Diansheng Property Management Co., Ltd. | Under same actual controller |
| Hangzhou Times Lighting and Electrical Co., Ltd. | Company controlled by related natural person |
| Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. | Company controlled by related natural person |
| Prosperity Electrical (China) Co., Ltd. | Company controlled by related natural person |
| Siteco Prosperity Lighting (Langfang) Co., Ltd. | Company controlled by related natural person |
| OSRAM (China) Lighting Co., Ltd. | Company controlled by related natural person with significant influence |
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service
Unit: RMB
| Related 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 | 1,358,912.39 | 12,000,000.00 | No | 3,844,498.14 |
| Prosperity Electrical (China) Co., Ltd. | Purchase of materials | 4,500,000.00 | No | 729,882.89 |
| Hangzhou Times Lighting and Electrical Co., Ltd. | Purchase of materials | 317,153.35 | 1,000,000.00 | No | 368,916.04 |
| Foshan NationStar Optoelectronics Co., Ltd. | Purchase of materials | 24,160,788.99 | 210,000,000.00 | No | 43,595,754.55 |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Purchase of materials | 1,919,036.93 | 10,000,000.00 | No | 5,172,863.77 |
| Guangdong Electronic Technology Research Institute | Purchase of equipment | 46,551.72 | 3,000,000.00 | No | 760,683.76 |
| MTM Semiconductor Equipment Co., Ltd. | Purchase of equipment | 261,855.01 | 1,000,000.00 | No | 323,282.05 |
| Guangdong Vollsun Data Solid-state Storage Co., Ltd. | Purchase of equipment | 1,600,000.00 | |||
| Total | 28,064,298.39 | 241,500,000.00 | 56,395,881.20 |
Information of sales of goods and provision of labor service
Unit: RMB
| Related party | Content | Reporting Period | Same period of last year |
| PROSPERITY LAMPS & COMPONENTS LTD | Sale of products | 11,773,638.34 | 18,871,809.73 |
| Prosperity Electrical (China) Co., Ltd. | Sale of products | 56,974.66 | 175,397.67 |
| Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. | Sale of products | 46,299.15 | |
| Guangdong Rising Optoelectronics Co., Ltd. | Sale of products | 568.97 | |
| Guangzhou Diansheng Property Management Co., Ltd. | Sale of products | 846.90 | |
| Total | 11,831,459.90 | 19,094,075.52 |
Information of sales/purchase of goods and provision/reception of labor serviceThe pricing for related-party transactions observes the principle of market subject to the market price when the transaction happensand relevant accounts shall be paid on time based on actual transaction.
(2) Information on Related-party Trusteeship/Contract
Naught
(3) Information on Related-party Lease
The 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 | 5,699.21 | 8,333.31 |
(4) Information on Related-party Guarantee
Naught
(5) Information on Inter-bank Lending of Capital of Related Parties
Naught
(6) Information on Assets Transfer and Debt Restructuring by Related 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 |
| General Manager | 707,777.02 | 700,000.00 |
| Chairman of the Supervisory Committee | 199,621.80 | 0.00 |
| Secretary of the Board | 66,667.00 | 400,000.00 |
| Chief Financial Officer | 407,777.02 | 400,000.00 |
| Other | 2,773,195.18 | 2,695,000.00 |
| Total | 4,155,038.02 | 4,195,000.00 |
(8) Other Related-party Transactions
Naught
6. Accounts Receivable and Payable of Related Party
(1) Accounts Receivable
Unit: RMB
| Item | Related party | Ending balance | Beginning balance | ||
| Carrying amount | Bad debt provision | Carrying amount | Bad debt provision | ||
| Interest receivable | Guangdong Rising Finance Co., Ltd. | 16,711.11 | 49,800.02 | ||
| Accounts receivable | Guangdong Vollsun Data Solid-state Storage Co., Ltd. | 2,753,280.00 | 82,598.40 | 2,753,280.00 | 82,598.40 |
| Accounts receivable | Guangzhou Diansheng Property Management Co., Ltd. | 957.00 | 28.71 | ||
| Accounts receivable | PROSPERITY LAMPS & COMPONENTS LTD | 3,642,370.89 | 109,271.13 | 3,676,377.29 | 110,291.32 |
| Accounts receivable | Prosperity (Hangzhou) Lighting and Electrical Co., Ltd. | 86,367.27 | 86,293.82 | 86,367.27 | 69,093.82 |
| Accounts receivable | OSRAM (China) Lighting Co., Ltd. | 117,554.16 | 41,566.93 | 117,554.16 | 35,266.25 |
| Prepayments | Prosperity Electrical (China) Co., Ltd. | 7,521.37 | 7,521.37 | ||
| Prepayments | MTM Semiconductor Equipment Co., Ltd | 28,368.00 | |||
| Other receivables | Guangdong Electronics Information Industry Group Ltd. | 19,500.00 | 585.00 | ||
| Total | 6,624,761.80 | 319,758.99 | 6,738,768.11 | 297,834.79 | |
(2) Accounts Payable
Unit: RMB
| Item | Related party | Ending carrying amount | Beginning carrying amount |
| Accounts payable | Foshan NationStar Optoelectronics Co., Ltd. | 15,740,680.29 | 17,964,138.25 |
| Accounts payable | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 1,757,507.91 | 1,489,703.61 |
| Accounts payable | Siteco Prosperity Lighting (Langfang) Co., Ltd. | 251,021.56 | 251,021.56 |
| Accounts payable | Prosperity Electrical (China) Co., Ltd. | 160,759.70 | 160,759.70 |
| Accounts payable | Hangzhou Times Lighting and Electrical Co., Ltd. | 197,700.70 | 229,109.60 |
| Accounts payable | Prosperity Lamps and Components Ltd. | 554,680.06 | |
| Other payables | Guangdong Electronic Technology Research Institute | 181,700.00 | 179,000.00 |
| Other payables | Prosperity Electrical (China) Co., Ltd. | 100,000.00 | 100,000.00 |
| Other payables | MTM Semiconductor Equipment Co., Ltd. | 21,000.00 | 38,600.00 |
| Other payables | Prosperity Lamps and Components Ltd. | 481,710.23 | 480,904.43 |
| Other payables | Foshan NationStar Optoelectronics Co., Ltd. | 200,000.00 | |
| Other payables | Guangdong Electronics Information Industry Group Ltd. | 11,111.12 | |
| Advances from customers | Prosperity Electrical (China) Co., Ltd. | 57,295.04 | 38,646.66 |
| Total | 19,149,375.43 | 21,497,674.99 |
7. Commitments of Related Party
(1)Commitment: commitments made in acquisition documents or shareholding alteration documentsCommitment maker: Controlling shareholderType of commitment: About avoidance of horizontal competitionContents: Electronics Group and its acting-in-concert parties Shenzhen Rising Investment and Hong Kong Rising
Investment have made a commitment that the elimination of the horizontal competition between Foshan NationStar Optoelectronics Co., Ltd. and the Company through business integration or other ways or arrangements shallbe 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 RisingInvestment have made more commitments as follows to avoid horizontal competition with the Company: 1. Theyshall conduct 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, if theproducts 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 and actualcontroller; 2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run or associatedcompanies (the “Relevant Enterprises” for short) will try their best to avoid or reduce related-party transactionswith the Company or the Company’s subsidiaries; 3. strictly follow the market principle of justness, fairness andequal value exchange for necessary and unavoidable related-party transactions between them and their RelevantEnterprises and the Company, and withdraw from voting when a related-party transaction with them or theirRelevant Enterprises is being voted on at a general meeting or a board meeting, and execute the relevant approval
procedure and information disclosure duties pursuant to the applicable laws, regulations and regulatory documents.Where the aforesaid commitments are broken and a loss is thus caused for the Company, its subsidiaries or theCompany’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 RisingInvestment have made the following commitments: 1. They will ensure the independence of the Company inbusiness: (1) They promise that the Company will have the assets, personnel, qualifications and capabilities for itto operate independently as well as the ability of independent, sustainable operation in the market. (2) Theypromise not to intervene in the Company’s business activities other than the execution of their rights as theCompany’s shareholders. (3) They promise that they and their related parties will not be engaged in business thatis substantially 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 necessary andunavoidable related-party transactions, they promise to operate fairly following the market-oriented principle andat fair prices, and execute the transaction procedure and the duty of information disclosure pursuant to theapplicable laws, regulations and regulatory documents. 2.They will ensure the independence of the Company inpersonnel: (1) They promise that the Company’s GM, deputy GMs, CFO, Company Secretary and other seniormanagement personnel will work only for and receive remuneration from the Company, not holding any positionsin them or their other controlled subsidiaries other than director and supervisor. (2) They promise the Company’sabsolute independence from their related parties in labor, human resource and salary management. And (3) Theypromise to follow the legal procedure in their recommendation of directors, supervisors and senior managementpersonnel to the Company and not to hire or dismiss employees beyond the Company’s Board of Directors andGeneral Meeting. 3. They will ensure the independence and completeness of the Company in asset: (1) Theypromise that the Company will have a production system, an auxiliary production system and supporting facilitiesfor its operation; legally have the ownership or use rights of the land, plants, machines, trademarks, patents andnon-patented technology in relation to its production and operation; and have independent systems for theprocurement of raw materials and the sale of its products. (2) They promise that the Company will haveindependent and complete assets all under the Company’s control and independently owned and operated by theCompany. And (3) They promise that they and their other controlled subsidiaries will not illegally occupy theCompany’s funds and assets in any way, or use the Company’s assets to provide guarantees for the debts ofthemselves or their other controlled subsidiaries with. 4. They will ensure the independence of the Company inorganization: (1) They promise that the Company has a sound corporate governance structure as a joint-stockcompany with an independent and complete organization structure. (2) They promise that the operational andmanagement organs within the Company will independently execute their functions according to laws, regulationsand the Company’s Articles of Association. 5. They will ensure the independence of the Company in finance: (1)They promise that the Company will have an independent financial department and financial accounting systemwith normative, independent financial accounting rules. (2) They promise that the Company will have
independent bank accounts and not share bank accounts with its related parties. (3) They promise that theCompany’s financial personnel do not hold concurrent positions in its related parties. (4) They promise that theCompany will independently pay its tax according to law. And (5) They promise that the Company can makefinancial decisions independently and that they will not illegally intervene in the Company’s use of its funds.Date of commitment making: 4 December 2015Term of commitment: Long-standingFulfillment: In execution
8. Other
Naught
XIII. Stock Payment
1. The Overall Situation of Stock Payment
□Applicable √ Not applicable
2. The Stock Payment Settled in Equity
□Applicable √ Not applicable
3. The Stock Payment Settled in Cash
□Applicable √ Not applicable
4. Modification and Termination of the Stock Payment
Naught
5. Other
Naught
XIV. Commitments and Contingency
1. Significant Commitments
Significant commitments on the balance sheet dateNaught
2. Contingency
(1) Significant Contingency on Balance Sheet Date
Naught
(2) In Despite of no Significant Contingency to Disclose, the Company Shall Also Make RelevantStatementsThere was no significant contingency in the Company.
3. Other
Naught
XV. Events after Balance Sheet Date
1. Significant Non-adjusted Events
Naught
2. Profit Distribution
Naught
3. Sales Return
Naught
4. Notes to Other Events after Balance Sheet Date
NaughtXVI. Other Significant Events
1. The Accounting Errors Correction in Previous Period
Naught
2. Debt Restructuring
Naught
3. Assets Replacement
Naught
4. Pension Plan
Naught
5. Discontinued Operations
Naught
6. Segment Information
Naught
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
Naught
8. Other
Naught
XVII. Notes of Main Items in the Financial Statements of the Company as the Parent
1. 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 for which bad debt provision separately accrued | 23,377,223.66 | 3.09% | 16,266,810.09 | 69.58% | 7,110,413.57 | 23,377,223.66 | 2.78% | 16,266,810.09 | 69.58% | 7,110,413.57 |
| Of which: | ||||||||||
| Accounts receivable | 732,299, | 96.91% | 30,039,3 | 4.10% | 702,259,9 | 819,146,6 | 97.22% | 30,359,11 | 3.71% | 788,787,51 |
| for which bad debt provision accrued by group | 386.93 | 93.85 | 93.08 | 35.09 | 6.01 | 9.08 | ||||
| Of which: | ||||||||||
| Total | 755,676,610.59 | 100.00% | 46,306,203.94 | 6.13% | 709,370,406.65 | 842,523,858.75 | 100.00% | 46,625,926.10 | 5.53% | 795,897,932.65 |
Individual withdrawal of bad debt provision by single item:
Unit: RMB
| Name | Ending balance | |||
| Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdrawal | |
| Customer A | 14,220,827.14 | 7,110,413.57 | 50.00% | Involved in the lawsuit; the Company won in the first instance judgment and the other side had appealed |
| Customer B | 9,156,396.52 | 9,156,396.52 | 100.00% | Involved in the lawsuit, the case hasn’t been finalized |
| Total | 23,377,223.66 | 16,266,810.09 | -- | -- |
Withdrawal of bad debt provision by group:
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal reason | |
| Credit risk | 732,299,386.93 | 30,039,393.85 | 4.10% |
| Total | 732,299,386.93 | 30,039,393.85 | -- |
Notes to the determination basis for the group:
Please refer to the relevant information of disclosure of bad debt provision of other accounts receivable if adopting the general modeof expected credit loss to withdraw bad debt provision of accounts receivable.
□ Applicable √ Not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 676,467,035.42 |
| 1 to 2 years | 22,338,039.73 |
| 2 to 3 years | 7,653,591.61 |
| 3 to 4 years | 2,782,638.29 |
| 4 to 5 years | 129,101.60 |
| Total | 709,370,406.65 |
(2) Bad Debt Provision Withdrawal, Reversed or Recovered in the Reporting PeriodInformation of withdrawal of bad debt provision:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | ||
| Withdrawal | Reversal or recovery | Write-off | |||
| Accounts receivable | 46,625,926.10 | -210,202.38 | 109,519.78 | 46,306,203.94 | |
| Total | 46,625,926.10 | -210,202.38 | 109,519.78 | 46,306,203.94 | |
Of which bad debt provision recovered or reversed with significant amount during the Reporting Period:
Naught
(3) Particulars of the Actual Verification of Accounts Receivable during the Reporting Period
Unit: RMB
| Item | Amount |
| No. 1 | 109,420.64 |
| Other driblet small amount | 99.14 |
Of which verification of significant accounts receivable:
Naught
(4) Top 5 of the Ending Balance of the Accounts Receivable Collected according to Arrears Party
Unit: RMB
| Name | Relationship with the Company | Carrying amount | Amount of bad debt provision withdrawn | Proportion to total accounts receivable |
| No. 1 | Non-related party | 116,548,474.42 | 3,496,454.23 | 15.42% |
| No. 2 | Non-related party | 21,132,097.12 | 691,796.76 | 2.80% |
| No. 3 | Non-related party | 18,052,065.50 | 834,975.20 | 2.39% |
| No. 4 | Non-related party | 17,103,092.54 | 1,710,309.25 | 2.26% |
| No. 5 | Non-related party | 16,775,164.92 | 1,677,516.49 | 2.22% |
| Total | 189,610,894.50 | 8,411,051.93 | 25.09% |
(5) Derecognition of Accounts Receivable due to the Transfer of Financial Assets
Naught
(6) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement ofAccounts ReceivableNaught
2. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Interest receivable | 5,828,623.70 | 5,152,364.04 |
| Other receivables | 43,751,294.85 | 38,386,484.68 |
| Total | 49,579,918.55 | 43,538,848.72 |
(1) Interest Receivable
1) Category of Interest Receivable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed time deposit | 1,575,001.54 | 56,317.78 |
| Structural deposit | 2,400,361.88 | 3,151,895.54 |
| Bank financial products | 1,853,260.28 | 1,944,150.72 |
| Total | 5,828,623.70 | 5,152,364.04 |
2) Significant Overdue Interest
Naught
3) Information of Withdrawal of Bad Debt Provision
□ Applicable √ Not applicable
(2) Dividends Receivable
Naught
(3) Other Receivables
1) Other Receivables Classified by Accounts Nature
Unit: RMB
| Nature | Ending carrying amount | Beginning carrying amount |
| Internal business group | 23,824,279.81 | 22,478,786.69 |
| Borrowings and petty cash for employees | 6,070,982.35 | 3,294,170.26 |
| VAT export tax refunds | 6,006,579.00 | 6,252,642.96 |
| Performance bond | 3,904,842.00 | 2,905,450.00 |
| Rental fees and water & electricity fees | 1,253,446.62 | 765,582.10 |
| Other | 4,302,146.66 | 3,991,470.59 |
| Total | 45,362,276.44 | 39,688,102.60 |
2) Information of Withdrawal of Bad Debt Provision
Unit: RMB
| Bad debt provision | First stage | Second stage | Third stage | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2019 | 406,679.05 | 894,938.87 | 1,301,617.92 | |
| Balance of 1 January 2019 in the current period | —— | —— | —— | —— |
| Withdrawal of the current period | 132,933.30 | 176,430.37 | 309,363.67 | |
| Balance of 30 June 2019 | 539,612.35 | 1,071,369.24 | 1,610,981.59 |
Changes of carrying amount with significant amount changed of loss provision in the current period
□ Applicable √ not applicable
Disclosure by aging
Unit: RMB
| Aging | Ending balance |
| Within 1 year (including 1 year) | 41,271,745.79 |
| 1 to 2 years | 1,483,985.07 |
| 2 to 3 years | 927,958.10 |
| 3 to 4 years | 10,000.00 |
| 4 to 5 years | 57,605.89 |
| Total | 43,751,294.85 |
3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of withdrawal of bad debt provision
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |
| Withdrawal | Reversal or recovery | |||
| Other accounts receivable | 1,301,617.92 | 309,363.67 | 1,610,981.59 | |
| Total | 1,301,617.92 | 309,363.67 | 1,610,981.59 | |
Of which bad debt provision recovered or reversed with significant amount during the Reporting Period:
Naught
4) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Naught
5) Top 5 of the Ending Balance of Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Aging | Proportion to ending balance of total other receivables% | Ending balance of bad debt provision |
| No. 1 | Internal business group | 18,835,715.58 | Within 3 years | 41.52% | |
| No. 2 | Export rebates | 6,006,579.00 | Within 1 year | 13.24% | 180,197.37 |
| No. 3 | Internal business group | 4,584,479.53 | Within 1 year | 10.11% | |
| No. 4 | Other | 1,296,947.31 | Within 3 years | 2.86% | 314,327.63 |
| No. 5 | Other | 1,157,064.20 | Within 1 year | 2.55% | 34,711.93 |
| Total | -- | 31,880,785.62 | -- | 70.28% | 529,236.93 |
6) Accounts Receivable Involving Government Subsidies
Naught
7) Derecognition of Other Receivables due to the Transfer of Financial Assets
Naught
8) The Amount of the Assets and Liabilities Formed due to the Transfer and the Continued Involvement of Other ReceivablesNaught
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 | 283,793,102.26 | 283,793,102.26 | 283,793,102.26 | 283,793,102.26 | ||
| Investment to joint ventures and associated enterprises | 180,122,685.92 | 180,122,685.92 | 182,458,559.69 | 182,458,559.69 | ||
| Total | 463,915,788.18 | 463,915,788.18 | 466,251,661.95 | 466,251,661.95 | ||
(1) Investment to Subsidiaries
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 | ||||
| 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 | ||||
| Total | 283,793,102.26 | 283,793,102.26 |
(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 | |||||||||||
| ShenzhenPrimatronix (Nanho) Electronics Ltd. | 182,458,559.69 | 784,711.98 | 3,120,585.75 | 180,122,685.92 | |||||||
| Subtotal | 182,458,559.69 | 784,711.98 | 3,120,585.75 | 180,122,685.92 | |||||||
| Total | 182,458,559.69 | 784,711.98 | 3,120,585.75 | 180,122,685.92 | |||||||
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 business | 1,587,821,567.72 | 1,245,016,649.64 | 1,951,987,821.57 | 1,545,234,231.64 |
| Other business | 47,837,600.24 | 39,394,932.17 | 52,300,623.19 | 42,160,088.89 |
| Total | 1,635,659,167.96 | 1,284,411,581.81 | 2,004,288,444.76 | 1,587,394,320.53 |
Whether the Company has executed the new income standards
□ Yes √ No
5. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | 784,711.98 | 179,781.56 |
| Investment income from disposal of long-term equity investment | 330,228.20 | |
| Investment income from holding of trading financial assets | 1,750,000.00 | |
| Investment income from disposal of trading financial assets | 13,550,000.00 | |
| Dividend income from holding of other equity instrument investment | 13,957,444.99 | |
| Investment income from holding of available-for-sale financial assets | 10,971,417.60 | |
| Investment income from financial products and structural deposits | 14,528,002.77 | 9,886,641.16 |
| Other | -730,500.00 | |
| Total | 44,169,887.94 | 21,037,840.32 |
6. Other
Naught
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 | -53,336.67 | |
| Government grants recognized in the current period, except for those acquired in the ordinary course of business or granted at certain quotas or amounts according to the government’s unified standards | 2,231,959.96 | |
| Gain/loss from change of fair value of trading assets and liabilities, derivative in financial assets and liabilities, and investment gains from disposal of trading financial assets and liabilities, derivative financial assets and liabilities, and other creditors’ investment, other than valid hedging related to the Company’s common | 12,553,800.00 | Mainly because investment income obtained from selling equity of Chengdu Hongbo Enterprise Co., Ltd. |
| businesses | ||
| Other non-operating income and expenses other than the above | 314,237.31 | |
| Less: Income tax effects | 2,287,287.39 | |
| Non-controlling interests effects | 1,635.12 | |
| Total | 12,757,738.09 | -- |
Explain the reasons if the Company classifies an item as an non-recurring gain/loss according to the definition in the ExplanatoryAnnouncement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—Non-recurring Gains andLosses, or classifies any extraordinary gain/loss item mentioned in the said explanatory announcement as a recurrent gain/loss item
□ Applicable √ Not applicable
2. Return on Equity and Earnings Per Share
| Profit as of Reporting Period | Weighted average ROE (%) | EPS (Yuan/share) | |
| EPS-basic | EPS-diluted | ||
| Net profit attributable to ordinary shareholders of the Company | 3.77% | 0.1195 | 0.1195 |
| Net profit attributable to ordinary shareholders of the Company after deduction of non-recurring profit or loss | 3.49% | 0.1104 | 0.1104 |
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 Internationaland Chinese Accounting Standards
□ Applicable √ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas andChinese Accounting Standards
□ Applicable √ Not applicable
(3) Explain Reasons for the Differences between Accounting Data under Domestic and OverseasAccounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by theForeign Auditing Agent, Such Foreign Auditing Agent’s Name Shall Be Clearly StatedNaught
4. Other
Naught