FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
THIRD QUARTERLY REPORT 2020
October 2020
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. (hereinafterreferred to as the “Company”) hereby guarantee that the contents of this Report and itssummary are true, accurate and complete and free of any misrepresentations, misleadingstatements or material omissions, and collectively and individually accept legal responsibilityfor such contents.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Wu Shenghui, the Company’s legal representative, Tang Qionglan, the Company’s ChiefFinancial Officer (CFO), and Peng Fentao, the Company’s accounting manager herebyguarantee that the financial statements carried in this Report are truthful, accurate andcomplete.This Report have been prepared in both Chinese and English. Should there be anydiscrepancies or misunderstandings between the two versions, the Chinese versions shallprevail.
Part II Key Corporate InformationI Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.
□ Yes √ No
| 30 September 2020 | 31 December 2019 | Change (%) | ||||
| Total assets (RMB) | 6,946,316,039.12 | 6,175,200,008.24 | 12.49% | |||
| Equity attributable to the listed company’s shareholders (RMB) | 5,200,067,057.45 | 4,880,736,800.07 | 6.54% | |||
| Q3 2020 | YoY change (%) | Q1-Q3 2020 | YoY change (%) | |||
| Operating revenue (RMB) | 1,036,642,740.19 | 37.25% | 2,559,526,867.23 | 4.79% | ||
| Net profit attributable to the listed company’s shareholders (RMB) | 81,713,561.32 | 28.80% | 232,775,009.15 | 0.89% | ||
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 71,099,990.80 | 9.83% | 221,534,826.80 | 1.04% | ||
| Net cash generated from/used in operating activities (RMB) | 151,006,248.62 | 3.95% | 352,083,952.07 | 4.80% | ||
| Basic earnings per share (RMB/share) | 0.0584 | 28.92% | 0.1663 | 0.85% | ||
| Diluted earnings per share (RMB/share) | 0.0584 | 28.92% | 0.1663 | 0.85% | ||
| Weighted average return on equity (%) | 1.68% | 0.16% | 4.62% | -0.67% | ||
Exceptional gains and losses:
√ Applicable □ Not applicable
Unit: RMB
| Item | Q1-Q3 2020 | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | -717,150.35 | |
| Government grants through profit or loss (exclusive of government grants given in the Company’s ordinary course of business at fixed quotas or amounts as per the government’s | 5,562,044.00 |
| uniform standards) | ||
| Gain or loss on fair-value changes on held-for-trading and derivative financial assets and liabilities & income from disposal of held-for-trading and derivative financial assets and liabilities and other debt investments (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 445,000.00 | |
| Reverse of bad debt provision of accounts receivable and contract assets individually conducting impairment test | 7,359,798.26 | |
| Non-operating income and expense other than the above | 492,736.29 | |
| Less: Income tax effects | 1,864,914.82 | |
| Non-controlling interests effects (net of tax) | 37,331.03 | |
| Total | 11,240,182.35 | -- |
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 of Them as at the End of theReporting Period
1. Numbers of Ordinary Shareholders and Preference Shareholders with Resumed Voting Rights as well asHoldings of Top 10 Shareholders
Unit: share
| Number of ordinary shareholders | 75,474 | Number of preference shareholders with resumed voting rights (if any) | 0 | |||||
| Top 10 shareholders | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total shares held | Restricted shares held | Shares in pledge or frozen | |||
| Status | Shares | |||||||
| Hong Kong Wah Shing Holding Company Limited | Foreign corporation | 13.47% | 188,496,430 | In pledge | 92,363,251 | |||
| Prosperity Lamps & Components Limited | Foreign corporation | 10.50% | 146,934,857 | |||||
| Guangdong Electronics Information Industry Group Ltd. | State-owned corporation | 8.77% | 122,694,246 | In pledge | 32,532,815 | |
| Shenzhen Rising Investment Development Co., Ltd. | State-owned corporation | 5.12% | 71,696,136 | In pledge | 35,800,000 | |
| Central Huijin Asset Management Co., Ltd. | State-owned corporation | 2.42% | 33,878,900 | |||
| Essence International Securities (Hong Kong) Limited | Foreign corporation | 2.22% | 31,059,913 | |||
| Rising Investment Development Limited | Foreign corporation | 1.82% | 25,482,252 | |||
| DBS VICKERS(HONG KONG) LTD A/C CLIENTS | Foreign corporation | 1.34% | 18,787,655 | |||
| China Merchants Securities (HK) Co., Limited | Foreign corporation | 0.90% | 12,551,460 | |||
| Zhuang Jianyi | Foreign individual | 0.85% | 11,903,509 | 8,927,632 | ||
| Top 10 unrestricted shareholders | ||||||
| Name of shareholder | Unrestricted ordinary shares held | Shares by class | ||||
| Class | Shares | |||||
| Hong Kong Wah Shing Holding Company Limited | 188,496,430 | RMB-denominated ordinary share | 188,496,430 | |||
| Prosperity Lamps & Components Limited | 146,934,857 | RMB-denominated ordinary share | 146,934,857 | |||
| Guangdong Electronics Information Industry Group Ltd. | 122,694,246 | RMB-denominated ordinary share | 122,694,246 | |||
| Shenzhen Rising Investment Development Co., Ltd. | 71,696,136 | RMB-denominated ordinary share | 71,696,136 | |||
| Central Huijin Asset Management | 33,878,900 | RMB-denominate | 33,878,900 | |||
| Co., Ltd. | d ordinary share | ||
| Essence International Securities (Hong Kong) Limited | 31,059,913 | Domestically listed foreign share | 31,059,913 |
| Rising Investment Development Limited | 25,482,252 | Domestically listed foreign share | 25,482,252 |
| DBS VICKERS(HONG KONG) LTD A/C CLIENTS | 18,787,655 | Domestically listed foreign share | 18,787,655 |
| China Merchants Securities (HK) Co., Limited | 12,551,460 | Domestically listed foreign share | 12,551,460 |
| Guangdong Rising Finance Holding Co., Ltd. | 11,434,762 | RMB-denominated ordinary share | 11,434,762 |
| Related or acting-in-concert parties among the shareholders above | Among the top 10 shareholders and Top 10 unrestricted shareholders, Hong Kong Wah Shing Holding Company Limited, Shenzhen Rising Investment Development Co., Ltd., Guangdong Electronics Information Industry Group Ltd., Guangdong Rising Finance Holding Co., Ltd. and Rising Investment Development Limited are acting-in-concert parties; 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. | ||
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 Preference Shareholders and Shareholdings of Top 10 of Them
□ Applicable √ Not applicable
Part III Significant EventsI Changes in Key Financial Statement Line Items and Explanation of why
√ Applicable □ Not applicable
Unit: RMB
| Item | 30 September 2020 (or Q1~Q3 2020) | 31 December 2019 (or Q1~Q3 2019) | Change (%) | Explanation of why |
| Accounts receivable | 943,423,998.71 | 712,175,266.51 | 32.47% | Increase in receivables from customers with an increase in revenue in Q3 |
| Prepayments | 14,464,209.52 | 7,851,390.78 | 84.22% | Increase in equipment purchases |
| Other receivables | 33,999,418.26 | 22,307,344.76 | 52.41% | Increase in export tax rebates not yet received in the current period |
| Construction in progress | 61,426,124.76 | 119,030,610.16 | -48.39% | Transfer of part of the Gaoming factory to fixed assets upon completion of construction in the current period |
| Long-term prepaid expense | 12,441,270.03 | 7,727,394.74 | 61.00% | Great amount of engineering and decoration expenses in the current period |
| Notes payable | 506,326,979.83 | 374,665,327.74 | 35.14% | Increase in undue notes payable resulted from more purchases with an increase in revenue in Q3 |
| Accounts payable | 801,322,627.18 | 559,016,692.70 | 43.35% | Increase in payables to suppliers resulted from more purchases with an increase in revenue in Q3 |
| Advances from customers | 50,449,357.17 | -100.00% | Transfer of certain advances from customers to contract liabilities due to the adoption of the new accounting standard governing revenue in the Reporting Period | |
| Contract liabilities | 56,790,214.34 | N/A | Transfer of certain advances from customers to contract liabilities due to the adoption of the new accounting standard governing revenue in the Reporting Period | |
| Employee benefits payable | 53,298,130.78 | 83,156,852.86 | -35.91% | Payment of year-end bonuses of last year to employees in the current period |
| Taxes and levies payable | 33,492,447.39 | 17,211,068.21 | 94.60% | Increase in payable value added tax in the current period |
| Deferred income tax liabilities | 197,939,198.29 | 137,216,136.70 | 44.25% | Increase in the value of assets recorded in investments in other equity instruments in the current period |
| Other comprehensive | 1,121,694,634.91 | 776,260,348.19 | 44.50% | Increase in the value of assets recorded in |
| income | investments in other equity instruments in the current period |
| Non-controlling interests | 39,138,093.92 | 26,674,428.08 | 46.73% | New non-wholly-owned subsidiary Foshan HortiLite Optoelectronics Co., Ltd. in the current period |
| R&D expense | 97,286,326.04 | 51,257,471.53 | 89.80% | Increase in the salaries of R&D personnel and in other R&D expenditures in the current period |
| Fiannce costs | -14,876,636.11 | -24,607,329.18 | 39.54% | Appreciation of RMB as a result of exchange rate fluctuations in Q3 |
| Interest income | 28,257,014.56 | 16,370,875.76 | 72.61% | Increase in interest on bank deposits in the current period |
| Other income | 10,870,023.46 | 6,665,710.25 | 63.07% | Increase in government grants received in the ordinary course of business in the current period |
| Return on investment | 37,773,909.66 | 55,118,448.97 | -31.47% | The same period of last year saw an income from the disposal of the Company’s interest in Chengdu Hongbo Industrial Co., Ltd. |
| Share of profit or loss of joint ventures and associates | 3,696,391.14 | 875,062.13 | 322.41% | Increase in share of net profit of associate in the current period |
| Gain on changes in fair value | 445,000.00 | -2,148,400.00 | 120.71% | Appreciation of RMB as a result of exchange rate fluctuations in Q3 |
| Credit impairment loss | -4,002,685.70 | 1,749,099.60 | -328.84% | Decrease in allowances for doubtful accounts in the current period |
| Asset impairment loss | -3,200,793.69 | -12,157,202.51 | 73.67% | Decrease in inventory valuation allowances in the current period |
| Asset disposal income | 7,489.02 | N/A | Disposal of non-current assets in the current period |
| Non-operating income | 936,299.73 | 2,672,321.16 | -64.96% | Decrease in government grants unrelated to operating activities received in the current period |
| Non-operating expense | 1,110,482.81 | 2,680,673.95 | -58.57% | Decrease in non-operating expense in the current period |
| Net profit attributable to non-controlling interests | 4,056,265.84 | 1,934,783.31 | 109.65% | Increase in profit of non-wholly-owned subsidiary in the current period |
| Other comprehensive income, net of tax | 345,434,286.72 | 40,471,826.38 | 753.52% | Increase in the value of assets recorded in investments in other equity instruments in the current period |
| Changes in the fair value of investments in other equity | 345,412,469.12 | 40,488,833.87 | 753.11% | Increase in the value of assets recorded in investments in other equity instruments in |
| instruments | the current period |
| Differences arising from the translation of foreign currency-denominated financial statements | 21,817.60 | -17,007.49 | 228.28% | Appreciation of RMB as a result of exchange rate fluctuations in Q3 |
| Total comprehensive income | 582,265,561.71 | 273,122,596.04 | 113.19% | Increase in the value of assets recorded in investments in other equity instruments in the current period |
| Net cash generated from/used in investing activities | -138,897,311.09 | 47,955,813.35 | -389.64% | Increase in payments for investments in the current period |
| Effect of foreign exchange rates changes on cash and cash equivalents | -1,874,714.70 | 531,705.94 | -452.58% | Appreciation of RMB as a result of exchange rate fluctuations in Q3 |
| Net increase in cash and cash equivalents | -47,567,112.21 | 168,486,740.97 | -128.23% | Decrease in net cash generated from investing activities in the current period |
II Progress, Influence and Solutions in respect of Significant Events
√ Applicable □ Not applicable
On 1 June 2020, the Company held the 40th Meeting of the 8th Board of Directors, on which the Proposal onReducing Some Stocks of Guoxuan High-tech was reviewed and approved and the Board agreed to reduce somestocks of Guoxuan High-tech adopting centralized bidding trading method or block trading method in accordancewith laws and regulations and at an appropriate time within 90 days since the date that the proposal was approved.The amount of stocks reduced shall not exceed 33,880,580 shares, accounting for 3% of current total shares ofGuoxuan High-tech. and the price for reduction shall be determined by the market price when the reduction iscarried out. The term for this shareholding reduction plan has expired and the Company did not carry out any suchreduction.
| Summary of the significant event | Date of disclosure | Index to disclosure |
| Reducing some shareholdings in Guoxuan High-tech | 2 June 2020 | www.cninfo.com.cn |
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 Relevant Parties, Failed to Fulfill on Time during theReporting Period
□ Applicable √ Not applicable
No such cases in the Reporting Period.
IV Financial Investments
1. Securities Investments
√ Applicable □ Not applicable
Unit: RMB
| Type of securities | Code of securities | Name of securities | Initial investment cost | Accounting measurement method | Opening carrying amount | Gain/loss on fair-value changes in the current period | Cumulative fair-value changes through equity | Purchased in the current period | Sold in the current period | Gain/loss in the current period | Closing carrying amount | Accounting title | Funding source |
| Domestically/Overseas listed stock | 002074 | Guoxuan High-tech | 160,000,000.00 | Fair value method | 661,377,161.25 | 420,463,143.75 | 861,605,165.36 | 1,081,840,305.00 | Investment in other equity instruments | Self-funded | |||
| Domestically/Overseas listed stock | 601818 | China Everbright Bank | 30,828,816.00 | Fair value method | 81,791,185.14 | -14,095,533.04 | 44,045,904.28 | 3,969,005.36 | 67,695,652.10 | Investment in other equity instruments | Self-funded | ||
| Domestically/Overseas listed stock | 601187 | Xiamen Bank | 292,574,133.00 | Fair value method | 706,517,718.67 | 413,943,585.67 | 10,971,417.60 | 706,517,718.67 | Investment in other equity instruments | Self-funded |
| Domestically/Overseas listed stock | N/A | Foshan branch of Guangdong Development Bank | 500,000.00 | Fair value method | 500,000.00 | 500,000.00 | Investment in other equity instruments | Self-funded | |||||
| Total | 483,902,949.00 | -- | 1,450,186,065.06 | 406,367,610.71 | 1,319,594,655.31 | 0.00 | 0.00 | 14,940,422.96 | 1,856,553,675.77 | -- | -- | ||
| Disclosure date of the announcement on the Board’s approval of securities investments | |||||||||||||
| Disclosure date of the announcement on the general meeting’s approval of securities investments (if any) | |||||||||||||
2. Investments in Derivative Financial Instruments
√ Applicable □ Not applicable
Unit: US$’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 |
| Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 800 | 4 November 2019 | 7 January 2020 | 400 | 400 | 6.14 | ||||
| Agricultural Bank of | Not related | Not | Ordinary forward forex | 1,200 | 4 December 2019 | 15 April 2020 | 1,200 | 1,200 | 4.43 |
| China (Foshan branch) | settlement | ||||||||||||
| Guangzhou Rural Commercial Bank (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 100 | 17 March 2020 | 27 March 2020 | 100 | 100 | 0.23 | ||||
| Guangzhou Rural Commercial Bank (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 450 | 28 April 2020 | 28 July 2020 | 450 | 450 | 1.50 | ||||
| Agricultural Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 600 | 25 August 2020 | 29 March 2021 | 600 | 600 | 0.78% | ||||
| Industrial and Commercial Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement l | 300 | 15 September 2020 | 23 December 2020 | 300 | 300 | 0.39% | ||||
| Industrial and Commercial Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 400 | 18 September 2020 | 23 November 2020 | 400 | 400 | 0.52% | ||||
| Industri | Not | Not | Ordinary | 200 | 22 | 24 | 200 | 200 | 0.26% |
| al and Commercial Bank of China (Foshan branch) | related | forward forex settlement l | September 2020 | November 2020 | |||||||||
| Agricultural Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 600 | 24 September 2020 | 30 December 2020 | 600 | 600 | 0.78% | ||||
| Industrial and Commercial Bank of China (Foshan branch) | Not related | Not | Ordinary forward forex settlement | 300 | 30 September 2020 | 23 February 2021 | 300 | 300 | 0.39% | ||||
| Total | 4,950 | -- | -- | 1,600 | 2,950 | 2,150 | 2,400 | 3.12% | 12.30 | ||||
| Funding source | All self-funded | ||||||||||||
| Legal matters involved (if applicable) | N/A | ||||||||||||
| Disclosure date of the announcement on the Board’s approval of investments in derivative financial instruments (if any) | 10 April 2020 | ||||||||||||
| Disclosure date of the announcement on the general meeting’s approval of investments in derivative financial instruments (if any) | 7 May 2020 | ||||||||||||
| Risk analysis and control measures in respect of derivative investments held in the Reporting Period (including but not limited to market risk, liquidity risk, credit risk, operational risk, legal risk, etc.) | 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 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 the Reporting Period (fair value analysis should include measurement method and related assumptions and parameters) | The Company carries out recognition and measurement in accordance with the Accounting Standard for Business Enterprises No. 22—Recognition and Measurement of Financial Instruments, the Accounting Standard for Business Enterprises No. 24—Hedges, the Accounting Standard for Business Enterprises No. 37—Presentation of Financial Instrument and other applicable regulations. Fair value is arrived at based on the price provided by pricing service providers such as banks or the price obtained. Fair value measurement and recognition are carried out on a monthly basis. Changes in the fair value of forward exchange settlement contracts entered into by the Company are mainly attributable to difference arising from exchange rate fluctuations. |
| Significant changes in accounting policies and specific accounting principles adopted for derivative investments in the Reporting Period compared to the last reporting period | N/A |
| Opinion of independent directors on | The independent directors of the Company are of the opinion that during the Reporting |
| derivative investments and risk control | 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. |
V Progress of Projects Financed with Raised Funds
□ Applicable √ Not applicable
VI 2020 Annual Operating Performance ForecastWarning of a forecast loss on or a forecast significant year-on-year change in the 2020 annual net profit, as well asexplanation of why:
□ Applicable √ Not applicable
VII Significant Contracts Arising from the Company’s Ordinary Course of Business
□ Applicable √ Not applicable
VIII Cash Entrusted for Wealth Management
√ Applicable □ Not applicable
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount |
| Bank’s wealth management product | Self-funded | 43,000 | 0 | 0 |
| Structured deposits | Self-funded | 76,000 | 92,000 | 0 |
| Total | 119,000 | 92,000 | 0 | |
High-risk wealth management transactions with a significant single amount, or with low security, low liquidity orno principal protection:
√ Applicable □ Not applicable
Unit: RMB’0,000
| Trustee | Type of | Type of | Principal | Funding | Start date | End date | Investment | Way of | Reference | Expected | Actual gain/lo | Recovery of | Impairment | Through | Any plan | Summary |
| trustee | wealth management product | source | with principal | payback | annualized rate of return | return (if any) | ss in the Reporting Period | the gain/loss in the Reporting Period | allowance (if any) | prescribed procedures or not | for further transactions | and index to more information (if any) | ||||
| China Minsheng Bank Foshan sub-branch | Bank | Low-risk wealth management | 5,000 | The Company’s own idle funds | 13 August 2020 | 15 October 2020 | Investment | Repayment of principal with yield | 3.55% | 30.64 | 23.34 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| China Guangfa Bank, Guangzhou development area sub-branch | Bank | Low-risk wealth management | 4,000 | The Company’s own idle funds | 28 August 2020 | 26 November 2020 | Investment | Repayment of principal with yield | 3.30% | 32.55 | 12.3 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| China Guangfa Bank, Guangzhou development area sub-branch | Bank | Low-risk wealth management | 5,000 | The Company’s own idle funds | 4 September 2020 | 3 December 2020 | Investment | Repayment of principal with yield | 3.30% | 40.68 | 11.75 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| Industrial and Commercial Bank | Bank | Low-risk wealth management | 10,000 | The Company’s own idle | 10 September 2020 | 9 December 2020 | Investment | Repayment of principal | 3.40% | 84.77 | 18.63 | Unrecovered | Yes | Yes | www.cninfo.com.cn |
| of China, Foshan branch | funds | with yield | ||||||||||||||
| Industrial and Commercial Bank of China, Foshan branch | Bank | Low-risk wealth management | 10,000 | The Company’s own idle funds | 11 September 2020 | 13 October 2020 | Investment | Repayment of principal with yield | 3.50% | 30.68 | 18.22 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| Bank of China, Foshan branch | Bank | Low-risk wealth management | 10,000 | The Company’s own idle funds | 11 September 2020 | 14 December 2020 | Investment | Repayment of principal with yield | 3.50% | 90.14 | 18.22 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| China Merchants Bank, Foshan branch | Bank | Low-risk wealth management | 10,000 | The Company’s own idle funds | 17 September 2020 | 17 March 2021 | Investment | Repayment of principal with yield | 4.30% | 214.41 | 15.32 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| Huaxia Bank, Foshan branch | Bank | Low-risk wealth management | 8,000 | The Company’s own idle funds | 15 September 2020 | 30 October 2020 | Investment | Repayment of principal with yield | 2.92% | 28.8 | 10.24 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| Industrial Bank Guangzhou Baiyun | Bank | Low-risk wealth management | 10,000 | The Company’s own idle funds | 15 September 2020 | 15 December 2020 | Investment | Repayment of principal with yield | 3.58% | 89.25 | 14.71 | Unrecovered | Yes | Yes | www.cninfo.com.cn |
| Sub-branch | ||||||||||||||||
| Industrial and Commercial Bank of China, Foshan branch | Bank | Low-risk wealth management | 20,000 | The Company’s own idle funds | 22 September 2020 | 27 October 2020 | Investment | Repayment of principal with yield | 3.50% | 67.12 | 15.34 | Unrecovered | Yes | Yes | www.cninfo.com.cn | |
| Total | 92,000 | -- | -- | -- | -- | -- | -- | 709.04 | 158.07 | -- | -- | -- | -- | |||
Wealth management transactions with possible impairments including an expectedly unrecoverable principal:
□ Applicable √ Not applicable
IX Irregularities in the Provision of Guarantees
□ Applicable √ Not applicable
No such cases in the Reporting Period.X Occupation of the Company’s Capital by the Controlling Shareholder or any of Its RelatedParties for Non-Operating Purposes
□ Applicable √ Not applicable
No such cases in the Reporting Period.XI Communications with the Investment Community such as Researches, Inquiries andInterviews Received during the Reporting Period
√ Applicable □ Not applicable
| Date of communication | Place of communication | Way of communication | Type of communication party | Communication party | Main contents communicated and materials provided | Index to main information communicated |
| 22 July 2020 | The Company’s conference room | Field research | Institution | Great Wall Securities | Inquired of the production and operation of the Company | www.cninfo.com.cn-Interaction Easy-IRs |
Part IV Financial StatementsI Financial Statements
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 September 2020
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 1,116,022,922.87 | 1,125,456,662.64 |
| Settlement reserve | ||
| Loans to other banks and financial institutions | ||
| Held-for-trading financial assets | 1,026,911,015.93 | 901,166,682.64 |
| Derivative financial assets | ||
| Notes receivable | 133,139,523.61 | 109,444,480.94 |
| Accounts receivable | 943,423,998.71 | 712,175,266.51 |
| Receivables financing | ||
| Prepayments | 14,464,209.52 | 7,851,390.78 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 33,999,418.26 | 22,307,344.76 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 624,242,422.06 | 637,336,584.06 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 58,987,241.85 | 52,502,863.59 |
| Total current assets | 3,951,190,752.81 | 3,568,241,275.92 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 182,709,726.07 | 181,093,725.43 |
| Investments in other equity instruments | 1,861,107,852.17 | 1,454,740,241.46 |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 672,994,404.06 | 629,832,098.35 |
| Construction in progress | 61,426,124.76 | 119,030,610.16 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 164,591,241.17 | 167,826,499.74 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 12,441,270.03 | 7,727,394.74 |
| Deferred income tax assets | 32,262,510.96 | 36,847,064.36 |
| Other non-current assets | 7,592,157.09 | 9,861,098.08 |
| Total non-current assets | 2,995,125,286.31 | 2,606,958,732.32 |
| Total assets | 6,946,316,039.12 | 6,175,200,008.24 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Borrowings from the central bank | ||
| Loans from other banks and financial institutions | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 506,326,979.83 | 374,665,327.74 |
| Accounts payable | 801,322,627.18 | 559,016,692.70 |
| Advances from customers | 50,449,357.17 | |
| Contract liabilities | 56,790,214.34 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and deposits from other banks and financial institutions | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 53,298,130.78 | 83,156,852.86 |
| Taxes and levies payable | 33,492,447.39 | 17,211,068.21 |
| Other payables | 57,941,289.94 | 46,073,344.71 |
| Including: Interest payable | ||
| Dividends payable | ||
| Fees and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 1,509,171,689.46 | 1,130,572,643.39 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 197,939,198.29 | 137,216,136.70 |
| Other non-current liabilities | ||
| Total non-current liabilities | 197,939,198.29 | 137,216,136.70 |
| Total liabilities | 1,707,110,887.75 | 1,267,788,780.09 |
| Owners’ equity: | ||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 158,608,173.07 | 158,608,173.07 |
| Less: Treasury stock | ||
| Other comprehensive income | 1,121,694,634.91 | 776,260,348.19 |
| Specific reserve | ||
| Surplus reserves | 836,559,645.36 | 836,559,645.36 |
| General reserve | ||
| Retained earnings | 1,683,858,450.11 | 1,709,962,479.45 |
| Total equity attributable to owners of the Company as the parent | 5,200,067,057.45 | 4,880,736,800.07 |
| Non-controlling interests | 39,138,093.92 | 26,674,428.08 |
| Total owners’ equity | 5,239,205,151.37 | 4,907,411,228.15 |
| Total liabilities and owners’ equity | 6,946,316,039.12 | 6,175,200,008.24 |
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 September 2020 | 31 December 2019 |
| Current assets: | ||
| Monetary assets | 995,846,819.15 | 1,059,001,233.28 |
| Held-for-trading financial assets | 1,026,911,015.93 | 901,166,682.64 |
| Derivative financial assets | ||
| Notes receivable | 125,734,764.39 | 107,567,164.99 |
| Accounts receivable | 906,650,768.35 | 666,106,832.53 |
| Receivables financing | ||
| Prepayments | 10,670,485.83 | 6,614,791.10 |
| Other receivables | 89,162,456.61 | 37,934,614.96 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 520,611,115.85 | 553,557,529.00 |
| Contract assets | ||
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 49,171,841.81 | 43,118,385.01 |
| Total current assets | 3,724,759,267.92 | 3,375,067,233.51 |
| Non-current assets: | ||
| Debt investments | ||
| Other debt investments | ||
| Long-term receivables | ||
| Long-term equity investments | 483,187,828.33 | 464,886,827.69 |
| Investments in other equity instruments | 1,861,107,852.17 | 1,454,740,241.46 |
| Other non-current financial assets | ||
| Investment property | ||
| Fixed assets | 613,451,214.70 | 573,844,707.66 |
| Construction in progress | 61,095,990.03 | 116,240,559.37 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | ||
| Intangible assets | 123,000,097.53 | 125,673,065.66 |
| Development costs | ||
| Goodwill | ||
| Long-term prepaid expense | 10,739,153.61 | 4,891,398.93 |
| Deferred income tax assets | 29,152,043.99 | 34,205,213.27 |
| Other non-current assets | 6,110,857.09 | 8,440,448.08 |
| Total non-current assets | 3,187,845,037.45 | 2,782,922,462.12 |
| Total assets | 6,912,604,305.37 | 6,157,989,695.63 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 506,326,979.83 | 376,265,327.74 |
| Accounts payable | 927,958,506.36 | 689,846,497.35 |
| Advances from customers | 46,758,714.00 |
| Contract liabilities | 52,998,958.91 | |
| Employee benefits payable | 38,012,304.77 | 68,658,329.30 |
| Taxes and levies payable | 27,205,723.90 | 12,374,430.19 |
| Other payables | 169,270,271.09 | 125,001,875.83 |
| Including: Interest payable | ||
| Dividends payable | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | ||
| Other current liabilities | ||
| Total current liabilities | 1,721,772,744.86 | 1,318,905,174.41 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Lease liabilities | ||
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 197,939,198.29 | 137,216,136.70 |
| Other non-current liabilities | ||
| Total non-current liabilities | 197,939,198.29 | 137,216,136.70 |
| Total liabilities | 1,919,711,943.15 | 1,456,121,311.11 |
| Owners’ equity: | ||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 |
| Other equity instruments | ||
| Including: Preference shares | ||
| Perpetual bonds | ||
| Capital reserves | 166,211,779.15 | 166,211,779.15 |
| Less: Treasury stock | ||
| Other comprehensive income | 1,121,655,457.02 | 776,242,987.90 |
| Specific reserve | ||
| Surplus reserves | 836,559,645.36 | 836,559,645.36 |
| Retained earnings | 1,469,119,326.69 | 1,523,507,818.11 |
| Total owners’ equity | 4,992,892,362.22 | 4,701,868,384.52 |
| Total liabilities and owners’ equity | 6,912,604,305.37 | 6,157,989,695.63 |
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
3. Consolidated Income Statement for Q3
Unit: RMB
| Item | Q3 2020 | Q3 2019 |
| 1. Revenues | 1,036,642,740.19 | 755,281,612.77 |
| Including: Operating revenue | 1,036,642,740.19 | 755,281,612.77 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 948,225,457.90 | 691,448,806.54 |
| Including: Cost of sales | 810,084,305.71 | 580,798,340.17 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 9,624,519.38 | 8,935,144.14 |
| Selling expense | 46,613,508.38 | 56,301,280.46 |
| Administrative expense | 39,257,552.11 | 38,716,494.36 |
| R&D expense | 38,188,244.31 | 21,396,838.92 |
| Finance costs | 4,457,328.01 | -14,699,291.51 |
| Including: Interest expense |
| Interest income | 10,768,889.50 | 5,992,546.47 |
| Add: Other income | 7,842,020.36 | 1,141,840.25 |
| Return on investment (“-” for loss) | 1,630,653.95 | 11,278,789.23 |
| Including: Share of profit or loss of joint ventures and associates | -1,028,690.75 | 90,350.15 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 1,977,350.00 | -1,152,200.00 |
| Credit impairment loss (“-” for loss) | -623,475.32 | 2,786,071.54 |
| Asset impairment loss (“-” for loss) | 82,041.70 | |
| Asset disposal income (“-” for loss) | ||
| 3. Operating profit (“-” for loss) | 99,243,831.28 | 77,969,348.95 |
| Add: Non-operating income | 273,412.73 | 730,448.59 |
| Less: Non-operating expense | 85,914.67 | 2,202,281.98 |
| 4. Gross profit (“-” for loss) | 99,431,329.34 | 76,497,515.56 |
| Less: Income tax expense | 16,430,921.60 | 11,345,388.86 |
| 5. Net profit (“-” for net loss) | 83,000,407.74 | 65,152,126.70 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 83,000,407.74 | 65,152,126.70 |
| 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 | 81,713,561.32 | 63,440,260.60 |
| 5.2.1 Net profit attributable to non-controlling interests | 1,286,846.42 | 1,711,866.10 |
| 6. Other comprehensive income, net of tax | -116,314,514.57 | -21,164,061.27 |
| Attributable to owners of the Company as the parent | -116,314,514.57 | -21,164,061.27 |
| 6.1 Items that will not be reclassified to profit or loss | -116,353,415.53 | -21,132,875.94 |
| 6.1.1 Changes caused by remeasurements on defined benefit 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 | -116,353,415.53 | -21,132,875.94 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 38,900.96 | -31,185.33 |
| 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 other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 38,900.96 | -31,185.33 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | -33,314,106.83 | 43,988,065.43 |
| Attributable to owners of the Company as the parent | -34,600,953.25 | 42,276,199.33 |
| Attributable to non-controlling interests | 1,286,846.42 | 1,711,866.10 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.0584 | 0.0453 |
| 8.2 Diluted earnings per share | 0.0584 | 0.0453 |
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: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
4. Income Statement of the Company as the Parent for Q3
Unit: RMB
| Item | Q3 2020 | Q3 2019 |
| 1. Operating revenue | 982,873,026.74 | 740,099,125.98 |
| Less: Cost of sales | 790,637,663.33 | 584,073,731.53 |
| Taxes and levies | 8,294,288.65 | 7,830,107.52 |
| Selling expense | 38,682,563.88 | 51,020,010.55 |
| Administrative expense | 34,690,501.27 | 33,727,059.40 |
| R&D expense | 35,052,331.20 | 19,137,384.89 |
| Finance costs | 4,652,388.12 | -14,606,198.25 |
| Including: Interest expense | ||
| Interest income | 10,581,438.02 | 5,888,747.23 |
| Add: Other income | 7,774,020.36 | 1,003,660.25 |
| Return on investment (“-” for loss) | 1,630,653.95 | 11,278,789.23 |
| Including: Share of profit or loss of joint ventures and associates | -1,028,690.75 | 90,350.15 |
| 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) | 1,977,350.00 | -1,152,200.00 |
| Credit impairment loss (“-” for loss) | -141,936.02 | 2,533,358.60 |
| Asset impairment loss (“-” for loss) | 82,041.70 | |
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 82,103,378.58 | 72,662,680.12 |
| Add: Non-operating income | 250,295.50 | 674,724.20 |
| Less: Non-operating expense | 85,914.67 | 2,202,281.98 |
| 3. Gross profit (“-” for loss) | 82,267,759.41 | 71,135,122.34 |
| Less: Income tax expense | 12,494,467.50 | 9,973,689.36 |
| 4. Net profit (“-” for net loss) | 69,773,291.91 | 61,161,432.98 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 69,773,291.91 | 61,161,432.98 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -116,353,415.53 | -21,132,875.94 |
| 5.1 Items that will not be reclassified to profit or loss | -116,353,415.53 | -21,132,875.94 |
| 5.1.1 Changes caused by remeasurements on defined benefit 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 | -116,353,415.53 | -21,132,875.94 |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 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 other debt investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for other debt investments | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | -46,580,123.62 | 40,028,557.04 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
5. Consolidated Income Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Revenues | 2,559,526,867.23 | 2,442,466,273.63 |
| Including: Operating revenue | 2,559,526,867.23 | 2,442,466,273.63 |
| Interest income | ||
| Insurance premium income | ||
| Fee and commission income | ||
| 2. Costs and expenses | 2,324,932,707.61 | 2,220,522,130.06 |
| Including: Cost of sales | 1,971,682,541.82 | 1,878,135,053.94 |
| Interest expense | ||
| Fee and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and levies | 25,475,917.14 | 29,771,412.88 |
| Selling expense | 141,891,111.08 | 179,711,846.84 |
| Administrative expense | 103,473,447.64 | 106,253,674.05 |
| R&D expense | 97,286,326.04 | 51,257,471.53 |
| Finance costs | -14,876,636.11 | -24,607,329.18 |
| Including: Interest expense | ||
| Interest income | 28,257,014.56 | 16,370,875.76 |
| Add: Other income | 10,870,023.46 | 6,665,710.25 |
| Return on investment (“-” for loss) | 37,773,909.66 | 55,118,448.97 |
| Including: Share of profit or loss of joint ventures and associates | 3,696,391.14 | 875,062.13 |
| Income from the derecognition of financial assets at amortized cost (“-” for loss) | ||
| Exchange gain (“-” for loss) | ||
| Net gain on exposure hedges (“-” for loss) | ||
| Gain on changes in fair value (“-” for loss) | 445,000.00 | -2,148,400.00 |
| Credit impairment loss (“-” for loss) | -4,002,685.70 | 1,749,099.60 |
| Asset impairment loss (“-” for loss) | -3,200,793.69 | -12,157,202.51 |
| Asset disposal income (“-” for loss) | 7,489.02 | |
| 3. Operating profit (“-” for loss) | 276,487,102.37 | 271,171,799.88 |
| Add: Non-operating income | 936,299.73 | 2,672,321.16 |
| Less: Non-operating expense | 1,110,482.81 | 2,680,673.95 |
| 4. Gross profit (“-” for loss) | 276,312,919.29 | 271,163,447.09 |
| Less: Income tax expense | 39,481,644.30 | 38,512,677.43 |
| 5. Net profit (“-” for net loss) | 236,831,274.99 | 232,650,769.66 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 236,831,274.99 | 232,650,769.66 |
| 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 | 232,775,009.15 | 230,715,986.35 |
| 5.2.1 Net profit attributable to non-controlling interests | 4,056,265.84 | 1,934,783.31 |
| 6. Other comprehensive income, net of tax | 345,434,286.72 | 40,471,826.38 |
| Attributable to owners of the Company as the parent | 345,434,286.72 | 40,471,826.38 |
| 6.1 Items that will not be reclassified to profit or loss | 345,412,469.12 | 40,488,833.87 |
| 6.1.1 Changes caused by remeasurements on defined benefit 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 | 345,412,469.12 | 40,488,833.87 |
| 6.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 6.1.5 Other | ||
| 6.2 Items that will be reclassified to profit or loss | 21,817.60 | -17,007.49 |
| 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 other debt investments | ||
| 6.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for other debt investments | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | 21,817.60 | -17,007.49 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | ||
| 7. Total comprehensive income | 582,265,561.71 | 273,122,596.04 |
| Attributable to owners of the Company as the parent | 578,209,295.87 | 271,187,812.73 |
| Attributable to non-controlling interests | 4,056,265.84 | 1,934,783.31 |
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1663 | 0.1649 |
| 8.2 Diluted earnings per share | 0.1663 | 0.1649 |
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: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
6. Income Statement of the Company as the Parent for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Operating revenue | 2,405,857,102.58 | 2,375,758,293.94 |
| Less: Cost of sales | 1,904,895,521.87 | 1,868,485,313.34 |
| Taxes and levies | 21,090,379.09 | 25,780,092.13 |
| Selling expense | 125,824,291.98 | 165,043,294.64 |
| Administrative expense | 91,129,402.01 | 92,197,397.18 |
| R&D expense | 88,464,262.40 | 47,267,023.97 |
| Finance costs | -14,407,225.33 | -24,277,401.37 |
| Including: Interest expense | ||
| Interest income | 27,780,321.02 | 16,013,181.20 |
| Add: Other income | 10,581,048.36 | 6,327,530.25 |
| Return on investment (“-” for loss) | 37,773,909.66 | 55,448,677.17 |
| Including: Share of profit or loss of joint ventures and associates | 3,696,391.14 | 875,062.13 |
| 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) | 445,000.00 | -2,148,400.00 |
| Credit impairment loss (“-” for loss) | -1,690,892.30 | 2,434,197.31 |
| Asset impairment loss (“-” for loss) | -2,500,432.51 | -11,722,378.21 |
| Asset disposal income (“-” for loss) | 7,489.02 | |
| 2. Operating profit (“-” for loss) | 233,476,592.79 | 251,602,200.57 |
| Add: Non-operating income | 778,144.92 | 2,423,216.08 |
| Less: Non-operating expense | 354,292.31 | 2,590,176.44 |
| 3. Gross profit (“-” for loss) | 233,900,445.40 | 251,435,240.21 |
| Less: Income tax expense | 29,409,898.33 | 32,869,714.22 |
| 4. Net profit (“-” for net loss) | 204,490,547.07 | 218,565,525.99 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 204,490,547.07 | 218,565,525.99 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | 345,412,469.12 | 40,488,833.87 |
| 5.1 Items that will not be reclassified to profit or loss | 345,412,469.12 | 40,488,833.87 |
| 5.1.1 Changes caused by remeasurements on defined benefit 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 | 345,412,469.12 | 40,488,833.87 |
| 5.1.4 Changes in the fair value arising from changes in own credit risk | ||
| 5.1.5 Other | ||
| 5.2 Items that will be reclassified to profit or loss | ||
| 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 other debt investments | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for other debt investments | ||
| 5.2.5 Reserve for cash flow hedges | ||
| 5.2.6 Differences arising from the translation of foreign currency-denominated financial statements | ||
| 5.2.7 Other | ||
| 6. Total comprehensive income | 549,903,016.19 | 259,054,359.86 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share |
| 7.2 Diluted earnings per share |
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
7. Consolidated Cash Flow Statement for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,365,767,056.58 | 2,592,925,263.78 |
| Net increase in customer deposits and deposits from other banks and financial institutions | ||
| Net increase in borrowings from the 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, fees and commissions received | ||
| Net increase in loans from other banks and financial institutions | ||
| Net increase in proceeds from repurchase transactions | ||
| Net proceeds from acting trading of securities | ||
| Tax and levy rebates | 78,544,375.70 | 76,915,672.88 |
| Cash generated from other operating activities | 75,707,388.30 | 101,313,019.67 |
| Subtotal of cash generated from operating activities | 2,520,018,820.58 | 2,771,153,956.33 |
| Payments for commodities and services | 1,403,011,355.81 | 1,641,623,556.46 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the central bank and other banks and financial |
| institutions | ||
| Payments for claims on original insurance contracts | ||
| Net increase in loans to other banks and financial institutions | ||
| Interest, fees and commissions paid | ||
| Policy dividends paid | ||
| Cash paid to and for employees | 487,026,289.13 | 472,172,124.51 |
| Taxes and levies paid | 132,009,675.42 | 145,610,049.05 |
| Cash used in other operating activities | 145,887,548.15 | 175,801,004.61 |
| Subtotal of cash used in operating activities | 2,167,934,868.51 | 2,435,206,734.63 |
| Net cash generated from/used in operating activities | 352,083,952.07 | 335,947,221.70 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 21,000,000.00 | |
| Return on investment | 40,476,714.61 | 60,410,002.14 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 134,956.12 | 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 | 40,611,670.73 | 81,450,836.14 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 54,508,981.82 | 33,495,022.79 |
| Payments for investments | 125,000,000.00 | |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 179,508,981.82 | 33,495,022.79 |
| Net cash generated from/used in investing activities | -138,897,311.09 | 47,955,813.35 |
| 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 | |
| Borrowings received | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | 2,350,000.00 | |
| Repayment of borrowings | ||
| Interest and dividends paid | 258,879,038.49 | 218,298,000.02 |
| Including: Dividends paid by subsidiaries to non-controlling interests | ||
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 258,879,038.49 | 218,298,000.02 |
| Net cash generated from/used in financing activities | -258,879,038.49 | -215,948,000.02 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | -1,874,714.70 | 531,705.94 |
| 5. Net increase in cash and cash equivalents | -47,567,112.21 | 168,486,740.97 |
| Add: Cash and cash equivalents, beginning of the period | 1,049,833,555.02 | 795,285,756.38 |
| 6. Cash and cash equivalents, end of the period | 1,002,266,442.81 | 963,772,497.35 |
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
8. Cash Flow Statement of the Company as the Parent for Q1~Q3
Unit: RMB
| Item | Q1~Q3 2020 | Q1~Q3 2019 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 2,230,510,122.56 | 2,496,081,015.34 |
| Tax and levy rebates | 78,527,235.44 | 76,904,234.22 |
| Cash generated from other operating activities | 65,792,284.74 | 87,466,294.97 |
| Subtotal of cash generated from operating activities | 2,374,829,642.74 | 2,660,451,544.53 |
| Payments for commodities and services | 1,459,286,205.15 | 1,712,948,237.15 |
| Cash paid to and for employees | 373,949,169.57 | 357,209,702.93 |
| Taxes and levies paid | 96,117,991.31 | 109,330,385.86 |
| Cash used in other operating activities | 133,951,112.09 | 158,745,798.35 |
| Subtotal of cash used in operating activities | 2,063,304,478.12 | 2,338,234,124.29 |
| Net cash generated from/used in operating activities | 311,525,164.62 | 322,217,420.24 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 21,000,000.00 | |
| Return on investment | 40,476,714.61 | 60,740,230.34 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 128,339.02 | 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 | 40,605,053.63 | 81,780,560.34 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 50,981,597.97 | 31,023,609.46 |
| Payments for investments | 141,685,000.00 | |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | ||
| Subtotal of cash used in investing activities | 192,666,597.97 | 31,023,609.46 |
| Net cash generated from/used in investing activities | -152,061,544.34 | 50,756,950.88 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings received | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities |
| Repayment of borrowings | ||
| Interest and dividends paid | 258,879,038.49 | 218,298,000.02 |
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 258,879,038.49 | 218,298,000.02 |
| Net cash generated from/used in financing activities | -258,879,038.49 | -218,298,000.02 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | -1,872,368.36 | 522,595.23 |
| 5. Net increase in cash and cash equivalents | -101,287,786.57 | 155,198,966.33 |
| Add: Cash and cash equivalents, beginning of the period | 983,378,125.66 | 747,588,730.42 |
| 6. Cash and cash equivalents, end of the period | 882,090,339.09 | 902,787,696.75 |
Legal representative: Wu Shenghui Chief Financial Officer: Tang Qionglan Accounting manager: Peng Fentao
II Adjustments to the Financial Statements
1. Adjustments to the Financial Statements at the Beginning of the First Execution Year (2020) of the NewAccounting Standards Governing Revenue and Leases
√ Applicable □ Not applicable
Whether items of the balance sheets at the beginning of the year need adjustments
√ Yes □ No
Consolidated balance sheet
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets: | |||
| Monetary assets | 1,125,456,662.64 | 1,125,456,662.64 | |
| Settlement reserve | |||
| Loans to other banks and financial institutions | |||
| Held-for-trading financial assets | 901,166,682.64 | 901,166,682.64 | |
| Derivative financial assets | |||
| Notes receivable | 109,444,480.94 | 109,444,480.94 | |
| Accounts receivable | 712,175,266.51 | 712,175,266.51 | |
| Receivables financing |
| Prepayments | 7,851,390.78 | 7,851,390.78 | |
| Premiums receivable | |||
| Reinsurance receivables | |||
| Receivable reinsurance contract reserve | |||
| Other receivables | 22,307,344.76 | 22,307,344.76 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Financial assets purchased under resale agreements | |||
| Inventories | 637,336,584.06 | 637,336,584.06 | |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 52,502,863.59 | 52,502,863.59 | |
| Total current assets | 3,568,241,275.92 | 3,568,241,275.92 | |
| Non-current assets: | |||
| Loans and advances to customers | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 181,093,725.43 | 181,093,725.43 | |
| Investments in other equity instruments | 1,454,740,241.46 | 1,454,740,241.46 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 629,832,098.35 | 629,832,098.35 | |
| Construction in progress | 119,030,610.16 | 119,030,610.16 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets |
| Intangible assets | 167,826,499.74 | 167,826,499.74 | |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 7,727,394.74 | 7,727,394.74 | |
| Deferred income tax assets | 36,847,064.36 | 36,847,064.36 | |
| Other non-current assets | 9,861,098.08 | 9,861,098.08 | |
| Total non-current assets | 2,606,958,732.32 | 2,606,958,732.32 | |
| Total assets | 6,175,200,008.24 | 6,175,200,008.24 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Borrowings from the central bank | |||
| Loans from other banks and financial institutions | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities | |||
| Notes payable | 374,665,327.74 | 374,665,327.74 | |
| Accounts payable | 559,016,692.70 | 559,016,692.70 | |
| Advances from customers | 50,449,357.17 | -50,449,357.17 | |
| Contract liabilities | 50,449,357.17 | 50,449,357.17 | |
| Financial assets sold under repurchase agreements | |||
| Customer deposits and deposits from other banks and financial institutions | |||
| Payables for acting trading of securities | |||
| Payables for underwriting of securities | |||
| Employee benefits payable | 83,156,852.86 | 83,156,852.86 | |
| Taxes and levies payable | 17,211,068.21 | 17,211,068.21 | |
| Other payables | 46,073,344.71 | 46,073,344.71 | |
| Including: Interest payable | |||
| Dividends |
| payable | |||
| Fees and commissions payable | |||
| Reinsurance payables | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | |||
| Total current liabilities | 1,130,572,643.39 | 1,130,572,643.39 | |
| Non-current liabilities: | |||
| Insurance contract reserve | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | 137,216,136.70 | 137,216,136.70 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 137,216,136.70 | 137,216,136.70 | |
| Total liabilities | 1,267,788,780.09 | 1,267,788,780.09 | |
| Owners’ equity: | |||
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 | |
| Other equity instruments | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 158,608,173.07 | 158,608,173.07 |
| Less: Treasury stock | |||
| Other comprehensive income | 776,260,348.19 | 776,260,348.19 | |
| Specific reserve | |||
| Surplus reserves | 836,559,645.36 | 836,559,645.36 | |
| General reserve | |||
| Retained earnings | 1,709,962,479.45 | 1,709,962,479.45 | |
| Total equity attributable to owners of the Company as the parent | 4,880,736,800.07 | 4,880,736,800.07 | |
| Non-controlling interests | 26,674,428.08 | 26,674,428.08 | |
| Total owners’ equity | 4,907,411,228.15 | 4,907,411,228.15 | |
| Total liabilities and owners’ equity | 6,175,200,008.24 | 6,175,200,008.24 |
Notes to the adjustmentIn accordance with the new standards governing revenue, “contract liabilities” refer to the Company’s obligations in transferringcommodities or services to the client for the received or predicted consideration. The “advances from customers” of the Companyreceived in advance due to performance of contract obligations by customers shall be adjusted into “contract liabilities”.Balance sheet of the Company as the parent
Unit: RMB
| Item | 31 December 2019 | 1 January 2020 | Adjustment |
| Current assets: | |||
| Monetary assets | 1,059,001,233.28 | 1,059,001,233.28 | |
| Held-for-trading financial assets | 901,166,682.64 | 901,166,682.64 | |
| Derivative financial assets | |||
| Notes receivable | 107,567,164.99 | 107,567,164.99 | |
| Accounts receivable | 666,106,832.53 | 666,106,832.53 | |
| Receivables financing | |||
| Prepayments | 6,614,791.10 | 6,614,791.10 | |
| Other receivables | 37,934,614.96 | 37,934,614.96 | |
| Including: Interest receivable | |||
| Dividends receivable | |||
| Inventories | 553,557,529.00 | 553,557,529.00 |
| Contract assets | |||
| Assets held for sale | |||
| Current portion of non-current assets | |||
| Other current assets | 43,118,385.01 | 43,118,385.01 | |
| Total current assets | 3,375,067,233.51 | 3,375,067,233.51 | |
| Non-current assets: | |||
| Debt investments | |||
| Other debt investments | |||
| Long-term receivables | |||
| Long-term equity investments | 464,886,827.69 | 464,886,827.69 | |
| Investments in other equity instruments | 1,454,740,241.46 | 1,454,740,241.46 | |
| Other non-current financial assets | |||
| Investment property | |||
| Fixed assets | 573,844,707.66 | 573,844,707.66 | |
| Construction in progress | 116,240,559.37 | 116,240,559.37 | |
| Productive living assets | |||
| Oil and gas assets | |||
| Right-of-use assets | |||
| Intangible assets | 125,673,065.66 | 125,673,065.66 | |
| Development costs | |||
| Goodwill | |||
| Long-term prepaid expense | 4,891,398.93 | 4,891,398.93 | |
| Deferred income tax assets | 34,205,213.27 | 34,205,213.27 | |
| Other non-current assets | 8,440,448.08 | 8,440,448.08 | |
| Total non-current assets | 2,782,922,462.12 | 2,782,922,462.12 | |
| Total assets | 6,157,989,695.63 | 6,157,989,695.63 | |
| Current liabilities: | |||
| Short-term borrowings | |||
| Held-for-trading financial liabilities | |||
| Derivative financial liabilities |
| Notes payable | 376,265,327.74 | 376,265,327.74 | |
| Accounts payable | 689,846,497.35 | 689,846,497.35 | |
| Advances from customers | 46,758,714.00 | -46,758,714.00 | |
| Contract liabilities | 46,758,714.00 | 46,758,714.00 | |
| Employee benefits payable | 68,658,329.30 | 68,658,329.30 | |
| Taxes and levies payable | 12,374,430.19 | 12,374,430.19 | |
| Other payables | 125,001,875.83 | 125,001,875.83 | |
| Including: Interest payable | |||
| Dividends payable | |||
| Liabilities directly associated with assets held for sale | |||
| Current portion of non-current liabilities | |||
| Other current liabilities | |||
| Total current liabilities | 1,318,905,174.41 | 1,318,905,174.41 | |
| Non-current liabilities: | |||
| Long-term borrowings | |||
| Bonds payable | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Lease liabilities | |||
| Long-term payables | |||
| Long-term employee benefits payable | |||
| Provisions | |||
| Deferred income | |||
| Deferred income tax liabilities | 137,216,136.70 | 137,216,136.70 | |
| Other non-current liabilities | |||
| Total non-current liabilities | 137,216,136.70 | 137,216,136.70 | |
| Total liabilities | 1,456,121,311.11 | 1,456,121,311.11 | |
| Owners’ equity: |
| Share capital | 1,399,346,154.00 | 1,399,346,154.00 | |
| Other equity instruments | |||
| Including: Preference shares | |||
| Perpetual bonds | |||
| Capital reserves | 166,211,779.15 | 166,211,779.15 | |
| Less: Treasury stock | |||
| Other comprehensive income | 776,242,987.90 | 776,242,987.90 | |
| Specific reserve | |||
| Surplus reserves | 836,559,645.36 | 836,559,645.36 | |
| Retained earnings | 1,523,507,818.11 | 1,523,507,818.11 | |
| Total owners’ equity | 4,701,868,384.52 | 4,701,868,384.52 | |
| Total liabilities and owners’ equity | 6,157,989,695.63 | 6,157,989,695.63 |
Notes to the adjustmentIn accordance with the new standards governing revenue, “contract liabilities” refer to the Company’s obligations in transferringcommodities or services to the client for the received or predicted consideration. The “advances from customers” of the Companyreceived in advance due to performance of contract obligations by customers shall be adjusted into “contract liabilities”.
2. Retrospective Adjustments to the Comparative Data of Prior Periods due to the First Execution in 2020of the New Accounting Standards Governing Revenue and Leases
□ Applicable √ Not applicable
III Independent Auditor’s ReportIndicate 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.28 October 2020