Stock Code: 000541, 200541 Stock Name: FSL, FSL-B Announcement No. 2020-047
FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
INTERIM REPORT 2020 (SUMMARY)Part I Important Notes
This Summary is based on the full text of the Interim Report of Foshan Electrical and Lighting Co., Ltd. (togetherwith its consolidated subsidiaries, the “Company”, except where the context otherwise requires). In order for a fullunderstanding of the Company’s operating results, financial condition and future development plans, investorsshould carefully read the aforesaid full text, which has been disclosed together with this Summary on the mediadesignated by the China Securities Regulatory Commission (the “CSRC”).
All the Company’s directors have attended the Board meeting for the review of this Report and its summary.
Independent auditor’s modified opinion:
□ Applicable √ Not applicable
Board-approved interim cash and/or stock dividend plan for ordinary shareholders:
□ Applicable √ Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
Board-approved interim cash and/or stock dividend plan for preferred shareholders:
□ Applicable √ Not applicable
Part II Key Corporate Information
1. Stock Profile
| Stock name | FSL, FSL-B | Stock code | 000541, 200541 | |
| Stock exchange for stock listing | Shenzhen Stock Exchange | |||
| Contact information | Board Secretary | Securities Representative | ||
| Name | Wu Shenghui | Huang Yufen | ||
| Office address | No. 64, Fenjiang North Road, | No. 64, Fenjiang North Road, | ||
| Chancheng District, Foshan City, Guangdong Province, P.R.China | Chancheng District, Foshan City, Guangdong Province, P.R.China | |
| Tel. | 0757-82810239 | 0757-82966028 |
| E-mail address | fsldsh@chinafsl.com | fslhyf@163.com |
2. Key Financial Information
Indicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| H1 2020 | H1 2019 | Change (%) | |
| Operating revenue (RMB) | 1,522,884,127.04 | 1,687,184,660.86 | -9.74% |
| Net profit attributable to the listed company’s shareholders (RMB) | 151,061,447.83 | 167,275,725.75 | -9.69% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 150,434,836.00 | 154,517,987.66 | -2.64% |
| Net cash generated from/used in operating activities (RMB) | 201,077,703.45 | 190,681,833.48 | 5.45% |
| Basic earnings per share (RMB/share) | 0.1080 | 0.1195 | -9.62% |
| Diluted earnings per share (RMB/share) | 0.1080 | 0.1195 | -9.62% |
| Weighted average return on equity (%) | 2.94% | 3.77% | -0.83% |
| 30 June 2020 | 31 December 2019 | Change (%) | |
| Total assets (RMB) | 6,517,507,782.65 | 6,175,200,008.24 | 5.54% |
| Equity attributable to the listed company’s shareholders (RMB) | 5,234,668,010.70 | 4,880,736,800.07 | 7.25% |
3. Shareholders and Their Holdings as at the End of the Reporting Period
Unit: share
| Number of ordinary shareholders | 87,618 | 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 | 0 | In pledge | 92,363,251 | |||
| Prosperity Lamps & Components Limited | Foreign legal person | 10.50% | 146,934,857 | 0 | |||||
| Shenzhen Rising Investment Development Co., Ltd. | State-owned legal person | 5.12% | 71,696,136 | 0 | In pledge | 35,800,000 | |||
| Guangdong Electronics Information Industry Group Ltd. | State-owned legal person | 4.85% | 67,876,801 | 0 | In pledge | 32,532,815 | |||
| Central Huijin Asset Management Co., Ltd. | State-owned legal person | 2.42% | 33,878,900 | 0 | |||||
| Essence International | Foreign legal | 2.22% | 31,059,913 | 0 | |||||
| Securities (Hong Kong) Co., Ltd. | person | |||||
| Hong Kong Rising Investment Development Co., Ltd. | Foreign legal person | 1.82% | 25,482,252 | 0 | ||
| DBS Vickers(Hong Kong) Ltd A/C Clients | Foreign legal person | 1.50% | 20,929,637 | 0 | ||
| China Merchants Securities (Hong Kong) Co., Ltd | Foreign legal person | 0.89% | 12,494,704 | 0 | ||
| Zhuang Jianyi | Foreign natural person | 0.85% | 11,903,509 | 8,927,632 | ||
| Related or acting-in-concert parties among the 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 Hong Kong Rising Investment Development Co., Ltd. are acting-in-concert parties; and Prosperity Lamps & Components Limited and Zhuang Jianyi 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. | |||||
| Shareholders involved in securities margin trading (if any) | None | |||||
4. Change of the Controlling Shareholder or the Actual Controller in the Reporting PeriodChange of the controlling shareholder in the Reporting Period:
□ Applicable √ Not applicable
The controlling shareholder remained the same in the Reporting Period.
Change of the actual controller in the Reporting Period:
□ Applicable √ Not applicable
The actual controller remained the same in the Reporting Period.
5. Number of Preferred Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
No preferred shareholders in the Reporting Period.
6. Corporate bonds
Does the Company have any corporate bonds publicly offered on the stock exchange, which were outstandingbefore the date of this Report’s approval or were due but could not be redeemed in full?No.
Part III Operating Performance Discussion and Analysis
1. Business Overview of the Reporting Period
Is the Company subject to any industry-specific disclosure requirements?No.The first half of 2020 saw a heavy hit by the COVID-19 pandemic to the global economy and consumer market.This, together with the fierce competition in the lighting industry, put companies under tremendous pressure. Inface of the pressure and challenges, the Company forged ahead with great solidarity against headwinds. Inaddition to playing its part in the fight against the pandemic, the Company tapped potential internally andexplored more markets externally. Through fully implementing the philosophy of “Focus on the Key Work,Improve Weak Links, Solve Bottlenecks, Increase Efficiency and Promote Growth”, as well as by paying moreattention in various work, the Company has achieved a better level of production and operation. Due to thepandemic, for the Reporting Period, the Company achieved operating revenue of RMB1522.8841million, ayear-on-year decrease of 9.74%; and a net profit attributable to the listed company’s shareholders ofRMB151.0614million, a year-on-year decrease of 9.69%.In the first half year of 2020, the Company has carried out work mainly in the following aspects:
1. Stepping up effort in scientific and technological innovation to strengthen the momentum of developmentThe Company has continued to increase R&D spending since the beginning of the year. In the first half year, itspent RMB64.96million on R&D, accounting for 4.27% of the operating revenue of the period. It completed thedevelopment of 335 new products, applied for 53 new patents and was granted with 42 patents. To meet newmarket demands in the context of COVID-19, the Company quickly mobilized forces to develop, upgrade andrelease series of new functional products with anti-epidemic and disinfecting functions and new healthy lightingproducts to the market. In addition, it further stepped up effort in the development and promotion of intelligentlighting products.,accessed the IoT platforms such as Alibaba Cloud, and developed smart home lighting productsjointly with Alibaba (artificial intelligent lab o f Tmall Genie), Huiwei (Hilink) and Baidu (Duer) so as to providemore abundant products and home application scenarios for users.The Company continued to promoteindustry-education-research collaboration with key colleges and universities and professional research institutesacross the country, and extended business into new segments to produce stronger impetus for development.
2. Focusing on marketing model innovation and market expansion to boost salesFirst, the Company effectively enhanced market activity through new marketing models, such as “live streaming
and crowd funding”. By hosting large-scale live streaming targeting the whole country, the Company improvedthe operation efficiency of its online traffic, laying a solid foundation for raising sales revenue. Second, theCompany focused on developing key accounts and projects and further developed the potentials of existing keyaccounts. While proactively entering into the centralized purchases of real estate companies, the Companycontinuously expanded cooperation with home decor companies, property management companies, large chaingroups and other channel customers. On top of that, the Company actively developed the overseas market,increase the development of new customers. At the same time, the Company further developed the potentials ofexisting big accounts and provided quality services to them, so as to obtain more orders and develop more projectsof intelligent products and new lamps.
3. Tightening effort in delicacy management to enhance corporate management efficacyThe Company worked hard to increase revenue and reduce expenditure to counter the impact of the epidemic onits production and operation. First, it controlled costs and cut expenses, analyzed and monitored budget execution,and made “belt-tightening” plans with strict control over non-operating expenses. It continued to advance theupgrading of production automation to cut labor costs and increase production efficiency. Second, it drove thecollection of accounts receivable by establishing a warning mechanism for Accounts receivable. Through strongereffort in this aspect, the Company intended to prevent the risk of operating fund. Third, it improved its capacityfor supply chain delivery. Through coordination and cooperation among different departments, the Companyensured timely receiving of materials and timely shipment of products.
4. Managing corporate culture and team building to enhance its cohesion
Guided by Party building, the Company set up multiple platforms, such as Key Party Members Pioneering Post,Key Party Members Responsibility Zone, and Key Party Members Fortification Team, gave play to the leadingrole of Party members. It published reports on meritorious deeds in lighting and the battle against the virus, andcommended 31 “Lighting Pioneers”. By doing this, the Company aimed to create a favorable atmosphere forbusiness development, make all staff pull together towards production and operation.
2. Matters Related to Financial Reporting
(1) Changes to Accounting Policies, Accounting Estimates or Measurement Methods Compared to the LastAccounting Period
√ Applicable □ Not applicable
| Changes in accounting policy | Approval procedure | Remark |
| On 5 July 2017, the Ministry of Finance | Approved by the 35th Meeting of the 8th | For details, refer to the Announcement on |
| issued the Notice on Revising and Issuing the Accounting Standards for Business Enterprises No.14-Revenue (CK(2017)No.22 and required those enterprises both listed in domestic and aboard and those enterprises overseas listed with International Financial Reporting Standards or Accounting Standards for Business Enterprises for preparation of financial statements to implement it since 1 January 2018, required other domestically listed enterprises to implement it since 1 January 2020 and required non-listed enterprises carrying out the Accounting Standards for Business Enterprises to implement it since 1 January 2021. Thus, the Company starts to implement the new standards governing revenue since 1 January 2020 and has made the treatment in accordance with governing connection regulation. | Board of Directors | Changes in Accounting Policies (Announcement No.: 2020-011) disclosed on cninfo.com.cn. |
(2) Retrospective Restatements due to the Correction of Material Accounting Errors in the ReportingPeriod
□ Applicable √ Not applicable
No such cases.
(3) Changes to the Scope of Consolidated Financial Statements Compared to the Last Accounting Period
□ Applicable √ Not applicable
No such cases.
The Board of DirectorsFoshan Electrical and Lighting Co., Ltd.27 August 2020