Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
THIRD QUARTER REPORT 2019
October 2019
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Part I Important NotesThe Board of Directors (or the “Board”), the Supervisory Committee as well as the directors,supervisors and senior management of Foshan Electrical and Lighting Co., Ltd. (togetherwith its consolidated subsidiaries, the “Company”, except where the context otherwiserequires) hereby guarantee the factuality, accuracy and completeness of the contents of thisReport and its summary, and shall be jointly and severally liable for any misrepresentations,misleading statements or material omissions therein.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.He Yong, the Company’s legal representative, Liu Xingming, the Company’s GeneralManager, and Tang Qionglan, the Company’s Chief Financial Officer (CFO) herebyguarantee that the financial statements carried in this Report are factual, accurate andcomplete.This Report and its summary have been prepared in both Chinese and English. Should therebe any discrepancies or misunderstandings between the two versions, the Chinese versionsshall prevail.
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
Part II Key Corporate InformationI Key Consolidated Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| 30 September 2019 | 31 December 2018 | Change (%) | ||||
| Total assets (RMB) | 5,512,912,337.32 | 5,588,166,699.30 | -1.35% | |||
| Equity attributable to the listed company’s shareholders (RMB) | 4,372,149,231.17 | 4,319,259,418.46 | 1.22% | |||
| Q3 2019 | YoY change (%) | Q1-Q3 2019 | YoY change (%) | |||
| Operating revenue (RMB) | 755,281,612.77 | -7.98% | 2,442,466,273.63 | -15.35% | ||
| Net profit attributable to the listed company’s shareholders (RMB) | 63,440,260.60 | -32.79% | 230,715,986.35 | -28.72% | ||
| Net profit attributable to the listed company’s shareholders before exceptional items (RMB) | 64,734,076.20 | -31.54% | 219,252,063.86 | -32.03% | ||
| Net cash generated from/used in operating activities (RMB) | -- | -- | 335,947,221.70 | -34.18% | ||
| Basic earnings per share (RMB/share) | 0.0453 | -32.89% | 0.1649 | -28.71% | ||
| Diluted earnings per share (RMB/share) | 0.0453 | -32.89% | 0.1649 | -28.71% | ||
| Weighted average return on equity (%) | 1.52% | -0.14% | 5.29% | -1.69% | ||
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1-Q3 2019 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -53,336.67 | |
| Government subsidies charged to current profit or loss (exclusive of government subsidies given in the Company’s ordinary course of business at fixed quotas or amounts as per government’s uniform standards) | 3,412,550.19 |
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
| Gain or loss on fair-value changes in trading financial assets and liabilities and derivative financial assets and liabilities & investment income from disposal of trading financial assets and liabilities and derivative financial assets and liabilities, and other creditors’ investment (exclusive of effective portion of hedges that arise in the Company’s ordinary course of business) | 11,401,600.00 | |
| Non-operating income and expense other than above | -1,196,346.06 | |
| Less: Income tax effects | 2,084,348.88 | |
| Non-controlling interests effects (net of tax) | 16,196.09 | |
| Total | 11,463,922.49 | -- |
Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item defined or listed in theExplanatory Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to thePublic—Exceptional Gain/Loss Items:
□ Applicable √ Not applicable
No such cases for the Reporting Period.II Total Number of Shareholders and Holdings of Top 10 Shareholders at 30 September 2019
1. Numbers of Ordinary Shareholders and Preferred Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 85,241 | Number of preferred shareholders with resumed voting rights (if any) | 0 | |||||
| Top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Number of shares | Restricted shares | Shares in pledge or frozen | |||
| Status | Shares | |||||||
| Hong Kong Wah Shing Holding Company Limited | Foreign legal person | 13.47% | 188,496,430 | In pledge | 92,363,251 | |||
| Prosperity Lamps & Components Limited | Foreign legal person | 10.50% | 146,934,857 | |||||
| Shenzhen Rising Investment Development Co., Ltd. | State-owned legal person | 5.12% | 71,696,136 | In pledge | 35,800,000 | |||
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
| Guangdong Electronics Information Industry Group Ltd. | State-owned legal person | 4.74% | 66,393,501 | In pledge | 32,532,815 | |
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 2.42% | 33,878,900 | |||
| Essence International Securities (Hong Kong) Limited | Foreign legal person | 2.22% | 31,008,913 | |||
| Rising Investment Development Limited | Foreign legal person | 1.82% | 25,482,252 | |||
| DBS VICKERS (HONG KONG) LTD A/C CLIENTS | Foreign legal person | 1.57% | 22,002,137 | |||
| China Merchants Securities (HK) Co., Limited | Foreign legal person | 0.87% | 12,226,036 | |||
| Zhuang Jianyi | Foreign natural person | 0.85% | 11,903,509 | 8,927,632 | ||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted shares | Shares by type | ||||
| Type | Shares | |||||
| Hong Kong Wah Shing Holding Company Limited | 188,496,430 | RMB-denominated ordinary stock | 188,496,430 | |||
| Prosperity Lamps & Components Limited | 146,934,857 | RMB-denominated ordinary stock | 146,934,857 | |||
| Shenzhen Rising Investment Development Co., Ltd. | 71,696,136 | RMB-denominated ordinary stock | 71,696,136 | |||
| Guangdong Electronics Information Industry Group Ltd. | 66,393,501 | RMB-denominated ordinary stock | 66,393,501 | |||
| Central Huijin Asset Management Co., Ltd. | 33,878,900 | RMB-denominated ordinary stock | 33,878,900 | |||
| Essence International Securities (Hong Kong) Limited | 31,008,913 | Domestically listed foreign stock | 31,008,913 | |||
Foshan Electrical and Lighting Co., Ltd. Third Quarter Report 2019
| Rising Investment Development Limited | 25,482,252 | Domestically listed foreign stock | 25,482,252 |
| DBS VICKERS (HONG KONG) LTD A/C CLIENTS | 22,002,137 | Domestically listed foreign stock | 22,002,137 |
| China Merchants Securities (HK) Co., Limited | 12,226,036 | Domestically listed foreign stock | 12,226,036 |
| Zhao Xiyi | 7,868,765 | RMB-denominated ordinary stock | 7,868,765 |
| Related or acting-in-concert parties among shareholders above | Among the top 10 shareholders, Hong Kong Wah Shing Holding Company Limited, Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information Industry Group Ltd. and Rising Investment Development Limited are acting-in-concert parties. Apart from that, it is unknown whether there is among the top 10 shareholders any other related parties or acting-in-concert parties as defined in the Administrative Measures for the Acquisition of Listed Companies. | ||
| Top 10 ordinary shareholders involved in securities margin trading (if any) | NA | ||
Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinaryshareholders of the Company conducted any promissory repo during the Reporting Period.
□ Yes √ No
No such cases in the Reporting Period.
2. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant EventsI Changes in Selected Consolidated Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Unit: RMB
| Item | 30 September 2019 (or Q1~Q3 2019) | 31 December 2018 (or Q1~Q3 2018) | Change (%) | Explanation of why |
| Interests receivable | 7,827,159.65 | 5,152,364.04 | 51.91% | Primarily driven by increase in withdrawal of interests of undue fixed time deposits in the Reporting Period |
| Available-for-sale financial assets | 897,716,590.20 | -100.00% | Primarily driven by the transfer of this item into investments in other equity instruments for accounting in accordance with the New Standards Governing Financial Instruments in the Reporting Period | |
| Investments in other equity instruments | 939,350,512.41 | N/A | Primarily driven by the transfer of those originally recorded into available-for-sale financial assets into this item for accounting in accordance with the New Standards Governing Financial Instruments in the Reporting Period | |
| Other non-current assets | 6,829,987.60 | 48,305,435.42 | -85.86% | Primarily driven by recovery of accounts |
| Trading financial liabilities | 2,625,600.00 | N/A | Primarily driven by the transfer of those originally recorded into financial liabilities at fair value through profit or loss into this item for accounting in accordance with the New Standards Governing Financial Instruments in the Reporting Period | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | -100.00% | Primarily driven by the transfer of this item into trading financial liabilities for accounting in accordance with the New Standards Governing Financial Instruments in the Reporting Period | |
| Payroll payable | 65,113,082.24 | 96,088,621.59 | -32.24% | The payment in the current period of the year-end bonuses of last year to the employees |
| Tax payable | 16,204,972.79 | 25,354,466.37 | -36.09% | Decrease in VAT and income tax in the Reporting Period |
| Deferred income | 38,750.37 | 155,000.31 | -75.00% | Carry-over of some deferred income to non-operating income in the Reporting Period |
| R&D expense | 51,257,471.53 | 35,259,823.24 | 45.37% | Primarily driven by increase in the salary of R&D personnel for the Reporting Period compared to that of last year |
| Interest income | 16,370,875.76 | 7,691,616.90 | 112.84% | Primarily driven by increase in interests of deposits for the Reporting Period |
| Other income | 6,665,710.25 | 27,330,963.26 | -75.61% | A smaller amount of government subsidies received in the Company’s ordinary course of business |
| Income from investment in joint ventures and associated enterprises | 875,062.13 | 6,515,462.53 | -86.57% | Decrease in associated enterprises’ net profit attributable to shareholders of the Company as the parent in the Reporting Period |
| Gain on changes in fair value | -2,148,400.00 | -4,819,200.00 | 55.42% | Primarily driven by decrease in amount of undue forward foreign exchange settlement products as at 30 September 2019 |
| Credit impairment loss | 1,749,099.60 | N/A | Primarily driven by the presentation of bad debt provision withdrawn for accounts receivable under this item in accordance with the New Standards Governing Financial Instruments in the Reporting Period | |
| Asset impairment loss | -12,157,202.51 | -31,327,824.39 | 61.19% | Primarily driven by the presentation of bad debt provision withdrawn for accounts receivable under the item of credit impairment loss in accordance with the New Standards Governing Financial Instruments in the Reporting Period |
| Asset disposal income | -78,039.44 | 100.00% | Resale of non-current assets in the same period of last year | |
| Operating profit | 271,171,799.88 | 387,876,055.36 | -30.09% | Decrease in operating revenue in the Reporting Period |
| Non-operating income | 2,672,321.16 | 2,040,284.75 | 30.98% | Primarily driven by increase in non-operating income for the Reporting Period |
| Non-operating expense | 2,680,673.95 | 884,191.93 | 203.18% | Increase in non-operating expense in the Reporting Period |
| Profit before tax | 271,163,447.09 | 389,032,148.18 | -30.30% | Decrease in operating revenue in the Reporting Period |
| Income tax expense | 38,512,677.43 | 62,530,147.85 | -38.41% | Decrease in profit before tax in the Reporting Period |
| Net profit attributable to non-controlling interests | 1,934,783.31 | 2,835,156.82 | -31.76% | Decrease in profits of non-wholly-owned subsidiaries in the Reporting Period |
| Other comprehensive income, net of tax | 40,471,826.38 | -333,328,064.68 | 112.14% | Increase in fair value of investments in other equity assets in the Reporting Period |
| Total comprehensive income | 273,122,596.04 | -6,826,064.35 | 4101.17% | Increase in fair value of investments in other equity instruments in the Reporting Period |
| Net cash generated from/used in operating activities | 335,947,221.70 | 510,441,096.28 | -34.18% | Primarily driven by increase of mature bank acceptance bills honored in the Reporting Period compared to that of the same period of last year |
| Net cash generated from/used in investing activities | 47,955,813.35 | -20,911,229.55 | 329.33% | Decrease in cash paid for construction of fixed assets, intangible assets and other long-term assets in |
| the Reporting Period | ||||
| Net cash generated from/used in financing activities | -215,948,000.02 | -405,163,764.00 | 46.70% | Decrease in cash dividends paid in the Reporting Period |
| Effect of foreign exchange rate changes on cash and cash equivalents | 531,705.94 | 5,036,692.65 | -89.44% | Large fluctuation of exchange rates of the same period of last year |
| Net increase in cash and cash equivalents | 168,486,740.97 | 89,402,795.38 | 88.46% | Primarily driven by increase in cash flows from financing activities |
II Progress, Influence and Solutions with regard to Significant Events
□ Applicable √ Not applicable
Progress of any share repurchase:
□ Applicable √ Not applicable
Progress of any reduction of the repurchased shares through centralized bidding:
□ Applicable √ Not applicable
III Commitments that the Company’s Actual Controller, Shareholders, Related Parties,Acquirers, the Company Itself or Other Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.IV Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Security type | Security code | Security name | Initial investment cost | Measurement method | Beginning carrying amount | Gain/Loss on fair-value changes in Reporting Period | Accumulated fair-value changes charged to equity | Purchased in Reporting Period | Sold in Reporting Period | Gain/loss in Reporting Period | Ending carrying amount | Accounting title | Funding source |
| Domestically/Overseas listed stock | 002074 | Guoxuan High-tech | 160,000,000.00 | Fair value method | 525,465,291.00 | 43,182,701.25 | 348,412,852.61 | 4,545,547.50 | 568,647,992.25 | Investment in other equity instruments | Self-funded |
| Domestically/Overseas listed stock | 601818 | China Everbright Bank | 30,828,816.00 | Fair value method | 68,622,989.80 | 4,451,220.96 | 49,424,462.94 | 2,986,027.39 | 73,074,210.76 | Investment in other equity instruments | Self-funded | ||
| Domestically/Overseas listed stock | N/A | Xiamen Bank | 292,574,133.00 | Cost method | 292,574,133.00 | 10,971,417.60 | 292,574,133.00 | Investment in other equity instruments | Self-funded | ||||
| Domestically/Overseas listed stock | N/A | Foshan branch of Guangdong Development Bank | 500,000.00 | Cost method | 500,000.00 | 7,962.31 | 500,000.00 | Investment in other equity instruments | Self-funded | ||||
| Total | 483,902,949.00 | -- | 887,162,413.80 | 47,633,922.21 | 397,837,315.55 | 0.00 | 0.00 | 18,510,954.80 | 934,796,336.01 | -- | -- | ||
| Disclosure date of announcement on Board’s consent for securities investments | |||||||||||||
| Disclosure date of announcement on general meeting’s consent for securities investments (if any) | |||||||||||||
V Wealth Management Entrustment
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
| Type of wealth management | Funding source | Principal | Outstanding amount before maturity | Overdue amount |
| Wealth management product purchased from bank | Self-funded | 36,500 | 34,500 | 0 |
| Structural deposits | Self-funded | 60,000 | 48,000 | 0 |
| Total | 96,500 | 82,500 | 0 | |
High-risk wealth management entrustments with amounts that are individually significant, or with low security,low liquidity, or no protection of the principal:
√ Applicable □ Not applicable
Unit: RMB’0,000 (in RMB ten thousand yuan)
| Trustee | Type of trustee | Type of wealth management product | Principal | Funding source | Start date | End date | Investment with principal | Way of payback | Reference annualized return (%) | Expected return (if any) | Actual gain/loss in Reporting Period | Collection/payment of gain/loss in Reporting Period | Impairment allowance (if any) | Through prescribed procedure or not | Any plan for further entrustment | Overview and index to more information (if any) |
| China Guangfa Bank (Guangzhou Development District sub-branch) | Bank | Principal-protected with floating-rate income | 8,000 | Self-owned idle capital | 12 July 2019 | 11 October 2019 | Investment | Payment of principal and interest upon maturity | 3.90% | 48.62 | 42.74 | To be collected | Yes | Yes | www.cninfo.com.cn | |
| China Guangfa Bank (Foshan Chengnan sub-branch) | Bank | Principal-protected with floating-rate income | 5,000 | Self-owned idle capital | 23 July 2019 | 21 October 2019 | Investment | Payment of principal and interest upon maturity | 3.95% | 48.7 | 37.34 | To be collected | Yes | Yes | www.cninfo.com.cn | |
| Bohai Bank | Bank | Principal-prot | 5,000 | Self-owned | 9 Augus | 10 Februa | Investment | Payment of | 3.85% | 97.57 | 27.42 | To be collect | Yes | Yes | www.cninfo |
| (Shenzhen Chegongmiao Branch) | ected with floating-rate income | idle capital | t 2019 | ry 2020 | principal and interest upon maturity | ed | .com.cn | |||||||||
| Huaxia Bank (Foshan branch) | Bank | Principal-protected with floating-rate income | 3,000 | Self-owned idle capital | 9 August 2019 | 7 November 2019 | Investment | Payment of principal and interest upon maturity | 3.90% | 28.85 | 16.67 | To be collected | Yes | Yes | www.cninfo.com.cn | |
| China Guangfa Bank (Guangzhou Development District sub-branch) | Bank | Principal-protected with floating-rate income | 2,000 | Self-owned idle capital | 20 August 2019 | 18 November 2019 | Investment | Payment of principal and interest upon maturity | 3.90% | 19.23 | 8.76 | To be collected | Yes | Yes | www.cninfo.com.cn | |
| China Guangfa Bank (Guangzhou Development District sub-branch) | Bank | Principal-protected with floating-rate income | 5,000 | Self-owned idle capital | 27 August 2019 | 25 November 2019 | Investment | Payment of principal and interest upon maturity | 3.85% | 47.47 | 17.93 | To be collected | Yes | Yes | www.cninfo.com.cn | |
| PingA | Bank | Princip | 3,500 | Self-o | 22 | 22 | Invest | Payme | 3.85% | 33.96 | 14.4 | To be | Yes | Yes | www. |
| n Bank (Foshan Jiangwan sub-branch) | al-protected with floating-rate income | wned idle capital | August 2019 | November 2019 | ment | nt of principal and interest upon maturity | collected | cninfo.com.cn | ||||||||
| China Guangfa Bank (Foshan Chengnan sub-branch) | Bank | Principal-protected with floating-rate income | 3,000 | Self-owned idle capital | 4 September 2019 | 3 December 2019 | Investment | Payment of principal and interest upon maturity | 3.85% | 28.48 | 8.23 | To be collected | Yes | Yes | www.cninfo.com.cn | |
| Total | 34,500 | -- | -- | -- | -- | -- | -- | 352.88 | 173.49 | -- | -- | -- | -- | |||
Wealth management entrustments with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
VI Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: USD’0,000
| Counterparty | Relationship with the Company | Related-party transaction or not | Type of derivative | Initial investment amount | Start date | End date | Beginning investment | Purchased in Reporting Period | Sold in Reporting Period | Impairment allowance (if any) | Ending investment | Ending investment as % of the Company’s ending net assets | Actual gain/loss in Reporting Period |
| China Construction Bank (Foshan branch) | Not related | Not | Forward forex settlement portfolio | 1,200 | 12 July 2018 | 14 January 2019 | 200 | 200 | 0.00% | -1.78 |
| Agricultural Bank of China (Foshan branch) | Not related | Not | Forward forex settlement portfolio | 1,200 | 2 August 2018 | 1 February 2019 | 400 | 400 | 0.00% | -0.12 | |||
| GuanzhouRural Commercial Bank (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 600 | 22 March 2019 | 12 June 2019 | 600 | 600 | 0.00% | -5.6 | |||
| GuanzhouRural Commercial Bank (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 600 | 24 April 2019 | 31 October 2019 | 600 | 600 | 0.96% | -29.51 | |||
| China Construction Bank (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 500 | 9 May 2019 | 15 October 2019 | 500 | 400 | 100 | 0.16% | -11.51 | ||
| Agricultural Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 500 | 9 May 2019 | 14 October 2019 | 500 | 400 | 100 | 0.16% | -11.32 | ||
| Total | 4,600 | -- | -- | 600 | 2,200 | 2,000 | 0 | 800 | 1.28% | -59.84 | |||
| Funding source | Self-funded | ||||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||||
| Disclosure date of board announcement approving derivative investment (if any) | 23 May 2018 | ||||||||||||
| Disclosure date of general meeting announcement approving derivative investment (if any) | |||||||||||||
| Analysis of risks and control measures associated with derivative investments held in Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal | Risk Analysis of Forward Exchange Settlement Business: 1. Risk of exchange rate fluctuations. In the case of large fluctuations in the exchange rate, the quoted price of the bank’s forward exchange rate may be lower than the Company’s quoted exchange rate to the customer, which will make the Company unable to lock the quoted exchange rate to the customer or the bank’s forward exchange rate may deviate from the exchange rate at the time | ||||||||||||
| risk, etc.) | of the Company’s actual receipt and payment, and causes exchange losses. 2. Risk of customer default. The customer’s accounts receivable may be overdue, and the payment for goods cannot be recovered within the predictable payback period, which will result in the loss of the Company due to the delayed forward settlement. 3. Risk of payback prediction. The marketing department shall made corresponding payback prediction based on customer orders and expected orders. However, during the actual implementation process, customers may adjust their orders and predictions, which will result in the Company’s incorrect payback prediction and cause the risk of delayed delivery of forward exchange settlement. Adopted Risk Control Measures: 1. The Company will strengthen the research and analysis of the exchange rate. When the exchange rate fluctuates greatly, it will adjust the business strategy in a timely manner to stabilize the export business and avoid exchange losses to the utmost. 2. The Management System for Forward Settlement and Sales of Foreign Exchanges reviewed and approved by the board of directors of the Company stipulates that all forward foreign exchange settlement businesses of the Company shall be based on the normal production and operation, and relied on specific business operations to avoid and prevent various exchange rate risks. However, speculative transaction and interest arbitrage are not allowed. At the same time, the system clearly defines the operating principles, approval authority, responsible department and responsible person, internal operation procedures, information isolation measures, internal risk reporting system, risk management procedures, and information disclosure related to the forward settlement business as well. In fact, the system is conducive to strengthen the management of the Company’s forward foreign exchange settlement business and prevent investment risks. 3. In order to prevent any delay in the forward exchange settlement, the Company will strengthen the management of accounts receivable, actively collect receivables, and avoid any overdue receivables. In the meantime, the Company plans to increase the export purchases and purchase corresponding credit insurance so as to reduce the risk of default and customer default. 4. The Company’s forward foreign exchange settlement transactions must be based on the Company’s foreign exchange earnings prediction. Besides, the Company shall strictly control the scale of its forward foreign exchange settlement business, and manage all risks that the Company may face within a controllable range. 5. The internal audit department of the Company shall check the actual signing and execution situation of all trading contracts on a regular or irregular basis. |
| Changes in market prices or fair value of derivative investments in Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | 1. The Company has invested various derivatives including Forward Exchange Settlement 3+3 Portfolio. This product portfolio is superior to other ordinary forward settlement products during the same period. The first three sessions of vesting conditions of this portfolio are: the spot exchange rate at maturity is lower than the agreed front-end exchange rate, and the exchange settlement shall be carried out based on the agreed front-end exchange rate; if the spot exchange rate at maturity is higher than the agreed front-end exchange rate, the Company can choose not to settle the exchange or choose to settle the exchange based on the spot exchange rate at maturity. The back-end three sessions of vesting conditions are: the spot exchange rate at maturity is lower than the agreed back-end exchange rate, and the Company can choose not to settle the exchange or choose to settle the exchange based on the spot exchange rate at maturity; if the spot exchange rate at maturity is higher than the agreed back-end exchange rate, the exchange settlement shall be carried out based on the agreed |
| back-end exchange rate. At present, in terms of Forward Exchange Settlement 3+3 Portfolio purchased by the Company, the spot exchange rates at maturity are all higher than the agreed front-end exchange rates, and the Company chooses not to exercise the right. Therefore, the product’s fair value has not changed. 2. The Company has invested ordinary forward exchange settlement product and the exchange settlement shall be carried out in accordance with the currency, amount and exchange rate stipulated in the forward exchange settlement contract, and the fair value of the product will change. | |
| Major changes in accounting policies and specific accounting principles adopted for derivative investments in Reporting Period compared to last reporting period | N/A |
| Opinion of independent directors on derivative investments and risk control | The independent directors of the Company are of the opinion that during the Reporting Period, the Company carried out forward forex settlement in strict compliance with the Company Law, the Regulations of the People’s Bank of China on Foreign Exchange Settlement, Sale and Payment and the Company’s Management Rules for Forward Foreign Exchange Settlement and Sale, among others, as well as within the Board’s authorization. Such trading is primarily aimed to prevent exchange rate fluctuations from impacting the Company’s export business and operating earnings, with no speculative trading involved. It is a necessity, and the risk is well under control. |
VII Communications with the Investment Community such as Researches, Inquiries andInterviews during the Reporting Period
√ Applicable □ Not applicable
| Date | Way of communication | Type of communication party | Index to main information communicated |
| 2 September 2019 | By one-on-one meeting | Institution | Cninf-Interactive-Investor Relations |
VIII Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.IX Occupation of the Company’s Capital by the Controlling Shareholder or Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.
Part IV Financial Statements
I Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 September 2019
Unit: RMB
| Item | 30 September 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 1,038,625,465.23 | 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 | 117,332,228.14 | 107,506,613.50 |
| Accounts receivable | 715,591,814.02 | 834,420,596.05 |
| Accounts receivable financing | ||
| Prepayments | 12,297,675.47 | 13,811,905.18 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 26,391,846.27 | 21,745,690.53 |
| Including: Interest receivable | 7,827,159.65 | 5,152,364.04 |
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 651,340,109.93 | 767,319,599.00 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets |
| Other current assets | 864,628,092.32 | 864,093,663.30 |
| Total current assets | 3,426,207,231.38 | 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 | 180,213,036.07 | 182,458,559.69 |
| Investments in other equity instruments | 939,350,512.41 | |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 578,059,529.88 | 512,106,912.39 |
| Construction in progress | 171,553,570.26 | 224,624,447.16 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 169,403,736.89 | 172,725,277.21 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 7,691,746.38 | 6,852,985.35 |
| Deferred income tax assets | 33,602,986.45 | 37,831,704.45 |
| Other non-current assets | 6,829,987.60 | 48,305,435.42 |
| Total non-current assets | 2,086,705,105.94 | 2,082,621,911.87 |
| Total assets | 5,512,912,337.32 | 5,588,166,699.30 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from central bank | ||
| Interbank loans obtained | ||
| Trading financial liabilities | 2,625,600.00 | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | |
| Derivative financial liabilities |
| Notes payable | 419,896,446.04 | 452,683,676.97 |
| Accounts payable | 451,398,326.85 | 532,597,143.95 |
| Advances from customers | 51,392,925.18 | 43,850,788.04 |
| Contractual liabilities | ||
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Payroll payable | 65,113,082.24 | 96,088,621.59 |
| Taxes payable | 16,204,972.79 | 25,354,466.37 |
| Other payables | 48,077,759.10 | 43,115,011.68 |
| Including: Interest payable | ||
| Dividends payable | ||
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets classified as held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 1,054,709,112.20 | 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 | 38,750.37 | 155,000.31 |
| Deferred income tax liabilities | 59,675,597.34 | 52,530,509.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 59,714,347.71 | 52,685,509.31 |
| Total liabilities | 1,114,423,459.91 | 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 | 338,139,699.18 | 297,667,872.80 |
| Specific reserve | ||
| Surplus reserves | 809,456,186.20 | 809,456,186.20 |
| General reserve | ||
| Retained earnings | 1,666,599,018.72 | 1,654,181,032.39 |
| Total equity attributable to owners of the Company as the parent | 4,372,149,231.17 | 4,319,259,418.46 |
| Non-controlling interests | 26,339,646.24 | 22,054,862.93 |
| Total owners’ equity | 4,398,488,877.41 | 4,341,314,281.39 |
| Total liabilities and owners’ equity | 5,512,912,337.32 | 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 September 2019 | 31 December 2018 |
| Current assets: | ||
| Monetary capital | 977,640,664.63 | 848,949,693.91 |
| Trading financial assets | ||
| Financial assets at fair value through profit or loss | ||
| Derivative financial assets | ||
| Notes receivable | 112,920,307.14 | 104,945,398.61 |
| Accounts receivable | 689,203,898.48 | 795,897,932.65 |
| Accounts receivable financing | ||
| Prepayments | 10,690,306.76 | 25,444,445.34 |
| Other receivables | 53,009,127.43 | 43,538,848.72 |
| Including: Interest receivable | 7,827,159.65 | 5,152,364.04 |
| Dividends receivable | ||
| Inventories | 575,936,836.56 | 692,681,479.03 |
| Contractual assets | ||
| Assets classified as held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 862,211,256.36 | 856,504,839.81 |
| Total current assets | 3,281,612,397.36 | 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 | 464,006,138.33 | 466,251,661.95 |
| Investments in other equity instruments | 939,350,512.41 | |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 520,809,674.90 | 427,947,613.74 |
| Construction in progress | 168,539,320.30 | 222,570,503.14 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 126,592,816.10 | 129,452,067.42 |
| R&D expense | ||
| Goodwill | ||
| Long-term prepaid expense | 5,184,296.98 | 5,106,268.25 |
| Deferred income tax assets | 31,390,774.48 | 35,908,741.15 |
| Other non-current assets | 5,190,287.60 | 46,852,235.42 |
| Total non-current assets | 2,261,063,821.10 | 2,231,805,681.27 |
| Total assets | 5,542,676,218.46 | 5,599,768,319.34 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Trading financial liabilities | 2,625,600.00 | |
| Financial liabilities at fair value through profit or loss | 477,200.00 | |
| Derivative financial liabilities | ||
| Notes payable | 419,896,446.04 | 452,683,676.97 |
| Accounts payable | 584,693,750.70 | 681,490,174.69 |
| Advances from customers | 48,018,693.90 | 41,912,301.85 |
| Contractual liabilities | ||
| Payroll payable | 54,090,069.48 | 84,220,746.16 |
| Taxes payable | 17,278,471.94 | 17,528,644.83 |
| Other payables | 160,789,518.61 | 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 | 1,287,392,550.67 | 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 | 59,675,597.34 | 52,530,509.00 |
| Other non-current liabilities | ||
| Total non-current liabilities | 59,675,597.34 | 52,530,509.00 |
| Total liabilities | 1,347,068,148.01 | 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 | 338,161,718.21 | 297,672,884.34 |
| Specific reserve | ||
| Surplus reserves | 809,456,186.20 | 809,456,186.20 |
| Retained earnings | 1,482,432,232.89 | 1,482,164,706.92 |
| Total owners’ equity | 4,195,608,070.45 | 4,154,851,710.61 |
| Total liabilities and owners’ equity | 5,542,676,218.46 | 5,599,768,319.34 |
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
3. Consolidated Income Statement for Q3
Unit: RMB
| Item | Q3 2019 | Q3 2018 |
| 1. Revenue | 755,281,612.77 | 820,735,540.10 |
| Including: Operating revenue | 755,281,612.77 | 820,735,540.10 |
| Interest income | ||
| Premium income | ||
| Handling charge and commission income | ||
| 2. Operating costs and expenses | 691,448,806.54 | 742,105,730.35 |
| Including: Cost of sales | 580,798,340.17 | 619,459,583.91 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as policy reserve | ||
| Expenditure on policy |
| dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 8,935,144.14 | 7,110,901.52 |
| Selling expense | 56,301,280.46 | 67,625,662.29 |
| Administrative expense | 38,716,494.36 | 45,731,759.35 |
| R&D expense | 21,396,838.92 | 16,316,330.46 |
| Finance costs | -14,699,291.51 | -14,138,507.18 |
| Including: Interest expense | ||
| Interest income | 5,992,546.47 | 2,812,177.03 |
| Add: Other income | 1,141,840.25 | 26,312,578.09 |
| Investment income (“-” for loss) | 11,278,789.23 | 25,411,137.34 |
| Including: Share of profit or loss of joint ventures and associates | 90,350.15 | 6,335,680.97 |
| Derecognition income of financial assets measured at amortized cost | ||
| Foreign exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -1,152,200.00 | -4,819,200.00 |
| Credit impairment loss (“-” for loss) | 2,786,071.54 | |
| Asset impairment loss (“-” for loss) | 82,041.70 | -15,320,954.56 |
| Asset disposal income (“-” for loss) | -78,039.44 | |
| 3. Operating profit (“-” for loss) | 77,969,348.95 | 110,135,331.18 |
| Add: Non-operating income | 730,448.59 | 370,428.32 |
| Less: Non-operating expense | 2,202,281.98 | 692,442.51 |
| 4. Profit before tax (“-” for loss) | 76,497,515.56 | 109,813,316.99 |
| Less: Income tax expense | 11,345,388.86 | 15,486,002.15 |
| 5. Net profit (“-” for net loss) | 65,152,126.70 | 94,327,314.84 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 65,152,126.70 | 94,327,314.84 |
| 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 | 63,440,260.60 | 94,389,387.69 |
| 5.2.2 Net profit attributable to non-controlling interests | 1,711,866.10 | -62,072.85 |
| 6. Other comprehensive income, net of tax | -21,164,061.27 | -10,352,713.29 |
| Attributable to owners of the Company as the parent | -21,164,061.27 | -10,352,713.29 |
| 6.1 Items that will not be reclassified to profit or loss | -21,132,875.94 | |
| 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 | -21,132,875.94 | |
| 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 | -31,185.33 | -10,352,713.29 |
| 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 | -10,354,561.67 | |
| 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 | -31,185.33 | 1,848.38 |
| 6.2.9 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 43,988,065.43 | 83,974,601.55 |
| Attributable to owners of the Company as the parent | 42,276,199.33 | 84,036,674.40 |
| Attributable to non-controlling interests | 1,711,866.10 | -62,072.85 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0453 | 0.0675 |
| 8.2 Diluted earnings per share | 0.0453 | 0.0675 |
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 the same period of 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 for Q3
Unit: RMB
| Item | Q3 2019 | Q3 2018 |
| 1. Operating revenue | 740,099,125.98 | 806,761,538.76 |
| Less: Cost of sales | 584,073,731.53 | 629,785,452.97 |
| Taxes and surcharges | 7,830,107.52 | 4,807,080.85 |
| Selling expense | 51,020,010.55 | 59,544,684.51 |
| Administrative expense | 33,727,059.40 | 42,369,376.35 |
| R&D expense | 19,137,384.89 | 15,372,638.99 |
| Finance costs | -14,606,198.25 | -13,703,097.66 |
| Including: Interest expense | ||
| Interest income | 5,888,747.23 | 2,367,541.27 |
| Add: Other income | 1,003,660.25 | 24,812,879.00 |
| Investment income (“-” for loss) | 11,278,789.23 | 57,357,355.93 |
| Including: Share of profit or | 90,350.15 | 6,335,680.97 |
| loss of joint ventures and associates | ||
| Derecognition income of financial assets measured at amortized cost | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -1,152,200.00 | -4,819,200.00 |
| Credit impairment loss (“-” for loss) | 2,533,358.60 | |
| Asset impairment loss (“-” for loss) | 82,041.70 | -15,359,989.07 |
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 72,662,680.12 | 130,576,448.61 |
| Add: Non-operating income | 674,724.20 | 330,267.62 |
| Less: Non-operating expense | 2,202,281.98 | 192,865.77 |
| 3. Profit before tax (“-” for loss) | 71,135,122.34 | 130,713,850.46 |
| Less: Income tax expense | 9,973,689.36 | 12,679,416.15 |
| 4. Net profit (“-” for net loss) | 61,161,432.98 | 118,034,434.31 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 61,161,432.98 | 118,034,434.31 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -21,132,875.94 | -10,354,561.67 |
| 5.1 Items that will not be reclassified to profit or loss | -21,132,875.94 | |
| 5.1.1 Changes in net liabilities or assets caused by remeasurements on defined benefit pension schemes | ||
| 5.1.2 Share of other comprehensive income of investees that will not be reclassified to profit or loss under equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | -21,132,875.94 | |
| 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 | -10,354,561.67 | |
| 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 | -10,354,561.67 | |
| 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 | 40,028,557.04 | 107,679,872.64 |
| 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 Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2019 | Q1~Q3 2018 |
| 1. Revenue | 2,442,466,273.63 | 2,885,514,830.09 |
| Including: Operating revenue | 2,442,466,273.63 | 2,885,514,830.09 |
| Interest income | ||
| Premium income |
| Handling charge and commission income | ||
| 2. Operating costs and expenses | 2,220,522,130.06 | 2,538,665,681.86 |
| Including: Cost of sales | 1,878,135,053.94 | 2,198,751,451.80 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net claims paid | ||
| Net amount provided as policy reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 29,771,412.88 | 29,073,419.76 |
| Selling expense | 179,711,846.84 | 171,542,672.76 |
| Administrative expense | 106,253,674.05 | 131,262,298.09 |
| R&D expense | 51,257,471.53 | 35,259,823.24 |
| Finance costs | -24,607,329.18 | -27,223,983.79 |
| Including: Interest expense | ||
| Interest income | 16,370,875.76 | 7,691,616.90 |
| Add: Other income | 6,665,710.25 | 27,330,963.26 |
| Investment income (“-” for loss) | 55,118,448.97 | 49,921,007.70 |
| Including: Share of profit or loss of joint ventures and associates | 875,062.13 | 6,515,462.53 |
| Derecognition income of financial assets measured at amortized cost | ||
| Foreign exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -2,148,400.00 | -4,819,200.00 |
| Credit impairment loss (“-” for loss) | 1,749,099.60 | |
| Asset impairment loss (“-” for loss) | -12,157,202.51 | -31,327,824.39 |
| Asset disposal income (“-” for loss) | -78,039.44 | |
| 3. Operating profit (“-” for loss) | 271,171,799.88 | 387,876,055.36 |
| Add: Non-operating income | 2,672,321.16 | 2,040,284.75 |
| Less: Non-operating expense | 2,680,673.95 | 884,191.93 |
| 4. Profit before tax (“-” for loss) | 271,163,447.09 | 389,032,148.18 |
| Less: Income tax expense | 38,512,677.43 | 62,530,147.85 |
| 5. Net profit (“-” for net loss) | 232,650,769.66 | 326,502,000.33 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 232,650,769.66 | 326,502,000.33 |
| 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 | 230,715,986.35 | 323,666,843.51 |
| 5.2.2 Net profit attributable to non-controlling interests | 1,934,783.31 | 2,835,156.82 |
| 6. Other comprehensive income, net of tax | 40,471,826.38 | -333,328,064.68 |
| Attributable to owners of the Company as the parent | 40,471,826.38 | -333,328,064.68 |
| 6.1 Items that will not be reclassified to profit or loss | 40,488,833.87 | |
| 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 | 40,488,833.87 | |
| 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 | -17,007.49 | -333,328,064.68 |
| 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 | -333,327,471.37 | |
| 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 | -17,007.49 | -593.31 |
| 6.2.9 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 273,122,596.04 | -6,826,064.35 |
| Attributable to owners of the Company as the parent | 271,187,812.73 | -9,661,221.17 |
| Attributable to non-controlling interests | 1,934,783.31 | 2,835,156.82 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1649 | 0.2313 |
| 8.2 Diluted earnings per share | 0.1649 | 0.2313 |
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 the same period of last year being RMB0.00.Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2019 | Q1~Q3 2018 |
| 1. Operating revenue | 2,375,758,293.94 | 2,811,049,983.52 |
| Less: Cost of sales | 1,868,485,313.34 | 2,217,179,773.50 |
| Taxes and surcharges | 25,780,092.13 | 22,021,486.96 |
| Selling expense | 165,043,294.64 | 150,661,877.23 |
| Administrative expense | 92,197,397.18 | 119,997,288.25 |
| R&D expense | 47,267,023.97 | 33,985,885.56 |
| Finance costs | -24,277,401.37 | -26,358,156.78 |
| Including: Interest expense | ||
| Interest income | 16,013,181.20 | 6,799,775.32 |
| Add: Other income | 6,327,530.25 | 25,374,222.06 |
| Investment income (“-” for loss) | 55,448,677.17 | 78,395,196.25 |
| Including: Share of profit or loss of joint ventures and associates | 875,062.13 | 6,515,462.53 |
| Derecognition income of financial assets measured at amortized cost | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | -2,148,400.00 | -4,819,200.00 |
| Credit impairment loss (“-” for loss) | 2,434,197.31 | |
| Asset impairment loss (“-” for loss) | -11,722,378.21 | -30,584,644.12 |
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 251,602,200.57 | 361,927,402.99 |
| Add: Non-operating income | 2,423,216.08 | 1,902,719.21 |
| Less: Non-operating expense | 2,590,176.44 | 356,969.86 |
| 3. Profit before tax (“-” for loss) | 251,435,240.21 | 363,473,152.34 |
| Less: Income tax expense | 32,869,714.22 | 45,627,355.24 |
| 4. Net profit (“-” for net loss) | 218,565,525.99 | 317,845,797.10 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 218,565,525.99 | 317,845,797.10 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | 40,488,833.87 | -333,327,471.37 |
| 5.1 Items that will not be reclassified to profit or loss | 40,488,833.87 | |
| 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 | 40,488,833.87 | |
| 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 | -333,327,471.37 | |
| 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 | -333,327,471.37 | |
| 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 | 259,054,359.86 | -15,481,674.27 |
| 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
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2019 | Q1~Q3 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,592,925,263.78 | 2,646,375,234.95 |
| 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 from acting trading of securities | ||
| Tax rebates | 76,915,672.88 | 109,951,990.96 |
| Cash generated from other operating activities | 101,313,019.67 | 71,257,187.00 |
| Subtotal of cash generated from operating activities | 2,771,153,956.33 | 2,827,584,412.91 |
| Payments for commodities and services | 1,641,623,556.46 | 1,462,982,460.41 |
| 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 interbank loans granted | ||
| Interest, handling charges and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 472,172,124.51 | 501,231,015.45 |
| Taxes paid | 145,610,049.05 | 195,992,337.25 |
| Cash used in other operating activities | 175,801,004.61 | 156,937,503.52 |
| Subtotal of cash used in operating activities | 2,435,206,734.63 | 2,317,143,316.63 |
| Net cash generated from/used in operating activities | 335,947,221.70 | 510,441,096.28 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 21,000,000.00 | 160,000,000.00 |
| Investment income | 60,410,002.14 | 45,348,316.28 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-lived assets | 40,834.00 | 507,597.20 |
| Net proceeds from disposal of subsidiaries or other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 81,450,836.14 | 205,855,913.48 |
| Payments for acquisition of fixed assets, intangible assets and other long-lived assets | 33,495,022.79 | 136,815,616.01 |
| Payments for investments | ||
| Net increase in pledged loans granted | ||
| Net payments for acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 89,951,527.02 | |
| Subtotal of cash used in investing activities | 33,495,022.79 | 226,767,143.03 |
| Net cash generated from/used in investing activities | 47,955,813.35 | -20,911,229.55 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | 2,350,000.00 |
| Including: Capital contributions by non-controlling interests to subsidiaries | 2,350,000.00 | |
| Increase in borrowings obtained | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 2,350,000.00 | |
| Repayment 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 | -215,948,000.02 | -405,163,764.00 |
| 4. Effect of foreign exchange rate changes on cash and cash equivalents | 531,705.94 | 5,036,692.65 |
| 5. Net increase in cash and cash equivalents | 168,486,740.97 | 89,402,795.38 |
| 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 | 963,772,497.35 | 659,587,004.34 |
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2019 | Q1~Q3 2018 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,496,081,015.34 | 2,555,607,130.21 |
| Tax rebates | 76,904,234.22 | 109,928,355.77 |
| Cash generated from other operating activities | 87,466,294.97 | 57,831,655.01 |
| Subtotal of cash generated from operating activities | 2,660,451,544.53 | 2,723,367,140.99 |
| Payments for commodities and services | 1,712,948,237.15 | 1,638,169,956.39 |
| Cash paid to and for employees | 357,209,702.93 | 311,008,108.99 |
| Taxes paid | 109,330,385.86 | 124,616,603.82 |
| Cash used in other operating activities | 158,745,798.35 | 141,247,884.47 |
| Subtotal of cash used in operating activities | 2,338,234,124.29 | 2,215,042,553.67 |
| Net cash generated from/used in operating activities | 322,217,420.24 | 508,324,587.32 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 21,000,000.00 | 140,000,000.00 |
| Investment income | 60,740,230.34 | 73,422,562.27 |
| Net proceeds from disposal of fixed assets, intangible assets and other long-lived assets | 40,330.00 | |
| Net proceeds from disposal of subsidiaries or other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 81,780,560.34 | 213,422,562.27 |
| Payments for acquisition of fixed assets, intangible assets and other long-lived assets | 31,023,609.46 | 129,942,619.86 |
| Payments for investments | ||
| Net payments for acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 89,951,527.02 | |
| Subtotal of cash used in investing activities | 31,023,609.46 | 219,894,146.88 |
| Net cash generated from/used in investing activities | 50,756,950.88 | -6,471,584.61 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Increase in borrowings obtained | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities |
| Repayment of borrowings | ||
| Payments for interest and dividends | 218,298,000.02 | 405,163,764.00 |
| Cash used in other financing activities | ||
| Sub-total 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 | 522,595.23 | 5,004,415.19 |
| 5. Net increase in cash and cash equivalents | 155,198,966.33 | 101,693,653.90 |
| 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 | 902,787,696.75 | 603,862,754.30 |
Legal representative: He Yong General manager: Liu Xingming Chief Financial Officer: Tang Qionglan
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the Execution of any New StandardsGoverning Financial Instruments, Revenue or Leases from 2019
√ Applicable □ Not applicable
Consolidated balance sheet
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjustment |
| 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 | |
| Accounts receivable |
| financing | |||
| 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 | |
| Contractual 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 | |
| Contractual liabilities | |||
| 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 | |||
| 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 |
Notes to the adjustmentThe Ministry of Finance enacted the revised Accounting Standards for Business Enterprises No. 22-Recognition and Measurement ofFinancial Instruments (CK [2017] No. 7), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (CK[2017] No. 8), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (CK [2017] No. 9) and AccountingStandards for Business Enterprises No. 37-Presentation of Financial Instruments (CK [2017] No. 14) in 2017. The Company starts tocarry out above new financial accounting standards since 1 January 2019. In line with the convergence regulation, the information ofcomparative period is unnecessary to be adjusted and for the difference with former standards when the new standards are carried outon the first day, the beginning retained earnings and other comprehensive income for the Reporting Period shall be retroactivelyadjusted.Those originally recorded into “available-for-sale financial assets” are currently recorded into “trading financial assets” and“investments in other equity instruments”; those originally recorded into “Financial liabilities at fair value through profit or loss” arecurrently recorded into “trading financial liabilities”.Balance sheet of the Company as the parent
Unit: RMB
| Item | 31 December 2018 | 1 January 2019 | Adjustment |
| 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 | |
| Accounts receivable financing | |||
| 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 | |
| Contractual 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 | |
| Contractual 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 |
Notes to the adjustmentThe Ministry of Finance enacted the revised Accounting Standards for Business Enterprises No. 22-Recognition and Measurement ofFinancial Instruments (CK [2017] No. 7), Accounting Standards for Business Enterprises No. 23-Transfer of Financial Assets (CK[2017] No. 8), Accounting Standards for Business Enterprises No. 24-Hedge Accounting (CK [2017] No. 9) and Accounting
Standards for Business Enterprises No. 37-Presentation of Financial Instruments (CK [2017] No. 14) in 2017. The Company starts tocarry out above new financial accounting standards since 1 January 2019. In line with the convergence regulation, the information ofcomparative period is unnecessary to be adjusted and for the difference with former standards when the new standards are carried outon the first day, the beginning retained earnings and other comprehensive income for the Reporting Period shall be retroactivelyadjusted.Those originally recorded into “available-for-sale financial assets” are currently recorded into “trading financial assets” and“investments in other equity instruments”; those originally recorded into “Financial liabilities at fair value through profit or loss” arecurrently recorded into “trading financial liabilities”.
2. Retrospective Restatement of Previous Comparative Data due to the Execution of any New StandardsGoverning Financial Instruments or Leases from 2019
□ Applicable √ Not applicable
III Independent Auditor’s Report
Indicate by tick mark whether the financial statements above have been audited by an independent auditor.
□Yes √ No
These financial statements have not been audited by such an auditor.
The Board of DirectorsFoshan Electrical and Lighting Co., Ltd.29 October 2019