FOSHAN ELECTRICAL AND LIGHTING CO., LTD.
INTERIM REPORT 2024
August 2024
Part I Important Notes, Table of Contents and DefinitionsThe 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 the factuality, accuracy and completeness ofthe contents of this Report and its summary, and shall be jointly and severally liable for anymisrepresentations, misleading statements or material omissions therein.Wan Shan, the Company’s legal representative, Tang Qionglan, the Company’s ChiefFinancial Officer (CFO), and Liang Yuefei, the person-in-charge of the Company’s accountingorgan (equivalent to accounting manager) hereby guarantee that the Financial Statementscarried in this Report are factual, accurate and complete.All the Company’s directors have attended the Board meeting for the review of this Reportand its summary.Any plans for the future and other forward-looking statements mentioned in this Report andits summary shall NOT be considered as absolute promises of the Company to investors.Therefore, investors are reminded to exercise caution when making investment decisions.The Company has described in detail in this Report the risk of macro-economic fluctuationsand intensified market competition, the risk of rising raw material prices, the risk of exchangerate fluctuations, and the risk of the recoverability of accounts receivable. Please refer to thesection headed “Risks Facing the Company and Countermeasures” in Item X of Part III ofthis Report.The Company has no interim dividend plan, either in the form of cash or stock.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.
Table of Contents
Part I Important Notes, Table of Contents and Definitions ...... 2
Part II Corporate Information and Key Financial Information ...... 6
Part III Management Discussion and Analysis ...... 10
Part IV Corporate Governance ...... 36
Part V Environmental and Social Responsibility ...... 38
Part VI Significant Events ...... 51
Part VII Share Changes and Shareholder Information ...... 70
Part VIII Preferred Shares ...... 79
Part IX Bonds ...... 80
Part X Financial Statements ...... 81
Documents Available for Reference
1. The financial statements signed and stamped by the Company’s legal representative, ChiefFinancial Officer, and the person-in-charge of the Company’s accounting organ.
2. The originals of all the Company’s announcements and documents disclosed to the public duringthe Reporting Period on the media designated by the CSRC for information disclosure.
Definitions
| Term | Definition |
| The “Company”, “listed company”, “FSL” or “we” | Foshan Electrical and Lighting Co., Ltd. and its consolidated subsidiaries, except where the context otherwise requires |
| Rising Holdings Group | Guangdong Rising Holdings Group Co., Ltd. |
| Electronics Group | Guangdong Electronics Information Industry Group Ltd. |
| Hong Kong Rising Investment | Rising Investment Development Limited |
| Hongkong Wah Shing | Hongkong Wah Shing Holding Company Limited |
| Rising Capital | Guangdong Rising Capital Investment Co., Ltd. (formerly known as “Guangdong Rising Finance Holding Co., Ltd.”) |
| Shenzhen Rising Investment | Shenzhen Rising Investment Development Co., Ltd. |
| NationStar Optoelectronics | Foshan NationStar Optoelectronics Co., Ltd. (stock code: 002449) |
| NationStar Semiconductor | Foshan NationStar Semiconductor Technology Co., Ltd. |
| Sigma | Foshan Sigma Venture Capital Co., Ltd. |
| Nanning Liaowang | Nanning Liaowang Auto Lamp Co., Ltd. |
| Fenghua Semiconductor | Guangdong Fenghua Semiconductor Technology Co., Ltd. |
| CSRC | China Securities Regulatory Commission |
| SZSE | Shenzhen Stock Exchange |
| General meeting | General meeting of Foshan Electrical and Lighting Co., Ltd. |
| Board of Directors | The board of directors of Foshan Electrical and Lighting Co., Ltd. |
| Supervisory Committee | The supervisory committee of Foshan Electrical and Lighting Co., Ltd. |
| RMB, RMB’0,000, RMB’00,000,000 | Expressed in the Chinese currency of Renminbi, expressed in tens of thousands of Renminbi, expressed in hundreds of millions of Renminbi |
Part II Corporate Information and Key Financial Information
I Corporate Information
| Stock name | FSL, FSL-B | Stock code | 000541, 200541 |
| Stock exchange for stock listing | Shenzhen Stock Exchange | ||
| Company name in Chinese | 佛山电器照明股份有限公司 | ||
| Abbr. (if any) | 佛山照明 | ||
| Company name in English (if any) | FOSHAN ELECTRICAL AND LIGHTING GO.,LTD | ||
| Abbr. (if any) | FSL | ||
| Legal representative | Wan Shan | ||
II Contact Information
| Board Secretary | Securities Representative | |
| Name | Huang Zhenhuan | Huang Yufen |
| Address | No. 8, Zhihui Road, Chancheng District, Foshan City, Guangdong Province, P.R.China | No. 8, Zhihui Road, Chancheng District, Foshan City, Guangdong Province, P.R.China |
| Tel. | （0757）82810239 | （0757）82966028 |
| Fax | （0757）82816276 | （0757）82816276 |
| Email address | fsldsh@chinafsl.com | fslhyf@163.com |
III Other Information
1. Contact Information of the Company
Indicate by tick mark whether any change occurred to the registered address, office address and their zip codes,website address, email address and other contact information of the Company in the Reporting Period.? Applicable □ Not applicable
| Registered address | No. 64, Fenjiang North Road, Chancheng District, Foshan City, Guangdong Province, P.R.China |
| Zip code | 528099 |
| Office address | No. 8, Zhihui Road, Chancheng District, Foshan City, Guangdong Province, P.R.China |
| Zip code | 528042 |
| Company website | www.chinafsl.com |
| Email address | fsldsh@chinafsl.com |
| Date when the relevant announcement was disclosed on the designated website (if any) | 17 January 2024 |
| Designated website on which the relevant announcement was disclosed (if any) | www.cninfo.com.cn |
2. Media for Information Disclosure and Place where this Report is Kept
Indicate by tick mark whether any change occurred to the information disclosure media and the place forkeeping the Company’s periodic reports in the Reporting Period.? Applicable □ Not applicable
| Stock exchange website where this Report is disclosed | www.szse.cn |
| Media and website where this Report is disclosed | www.cninfo.com.cn |
| Place where this Report is lodged | Board Office, FSL Office Building, No. 8, Zhihui Road, Chancheng District, Foshan City, Guangdong Province, P.R.China |
| Date when the relevant announcement was disclosed on the designated website (if any) | 17 January 2024 |
| Designated website on which the relevant announcement was disclosed (if any) | www.cninfo.com.cn |
3. Other Information
Indicate by tick mark whether any change occurred to other information in the Reporting Period.
□ Applicable ? Not applicable
IV Key Financial InformationIndicate by tick mark whether there is any retrospectively restated datum in the table below.? Yes □ NoReason for retrospective restatement:
Other reason
| H1 2024 | H1 2023 | Change (%) | ||
| Before | Restated | Restated | ||
| Operating revenue (RMB) | 4,784,545,767.42 | 4,566,062,729.02 | 4,566,062,729.02 | 4.78% |
| Net profit attributable to the listed company’s shareholders (RMB) | 192,229,182.38 | 168,935,232.54 | 168,935,232.54 | 13.79% |
| Net profit attributable to the listed company’s shareholders before exceptional gains and losses (RMB) | 178,842,912.77 | 180,389,211.53 | 180,914,198.99 | -1.14% |
| Net cash generated from/used in operating activities (RMB) | 384,593,044.61 | 387,869,057.20 | 387,869,057.20 | -0.84% |
| Basic earnings per share (RMB/share) | 0.1252 | 0.1252 | 0.1252 | 0.00% |
| Diluted earnings per share (RMB/share) | 0.1241 | 0.1240 | 0.1240 | 0.08% |
| Weighted average return on equity (%) | 3.02% | 3.23% | 3.23% | -0.21% |
| 30 June 2024 | 31 December 2023 | Change (%) | ||
| Before | Restated | Restated | ||
| Total assets (RMB) | 17,074,410,700.64 | 16,934,439,915.02 | 16,934,439,915.02 | 0.83% |
| Equity attributable to the listed company’s shareholders (RMB) | 6,274,369,252.81 | 6,285,442,808.19 | 6,285,442,808.19 | -0.18% |
Note: The Company has adopted the Explanatory Announcement No. 1 on Information Disclosure forCompanies Offering Their Securities to the Public—Exceptional Gain/Loss Items (Revised in 2023) for thecurrent period, and carried out the relevant retrospective restatements for the same period of last year.V Accounting Data Differences under China’s Accounting Standards for BusinessEnterprises (CAS) and International Financial Reporting Standards (IFRS) and ForeignAccounting Standards
1. Net Profit and Equity Differences under CAS and IFRS
□ Applicable ? Not applicable
No such differences for the Reporting Period.
2. Net Profit and Equity Differences under CAS and Foreign Accounting Standards
□ Applicable ? Not applicable
No such differences for the Reporting Period.
VI Exceptional Gains and Losses? Applicable □ Not applicable
Unit: RMB
| Item | Amount | Note |
| Gain or loss on disposal of non-current assets (inclusive of impairment allowance write-offs) | 65,734.07 | |
| Government grants recognised in current profit or loss (exclusive of those that are closely related to the Company's normal business operations and given in accordance with defined criteria and in compliance with government policies, and have a continuing impact on the Company's profit or loss) | 28,947,688.70 | |
| Gain or loss on fair-value changes in financial assets and liabilities held by a non-financial enterprise, as well as on disposal of financial assets and liabilities (exclusive of the effective portion of hedges that arise in the Company’s ordinary course of business) | 2,805,784.23 | |
| Capital occupation charges on a non-financial enterprise that are charged to | 159,108.10 |
| current profit or loss | ||
| Reversed portions of impairment allowances for receivables which are tested individually for impairment | 137,714.26 | |
| Non-operating income and expense other than the above | 2,403,799.26 | |
| Less: Income tax effects | 3,935,014.64 | |
| Non-controlling interests effects (net of tax) | 17,198,544.37 | |
| Total | 13,386,269.61 |
Details of other items that meet the definition of exceptional gain/loss:
□ Applicable ? Not applicable
No such cases for the Reporting Period.Explanation of why the Company reclassifies as recurrent an exceptional gain/loss item 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.
Part III Management Discussion and Analysis
I Principal Operations of the Company in the Reporting Period(I) Principal operationsThe Company has been committed to the R&D, production and sale of high-quality and energy-efficientlighting products in order to provide integrated lighting solutions for customers. It is the controlling shareholderof Nanning Liaowang Auto Lamp Co., Ltd. ("Nanning Liaowang") and Foshan NationStar Optoelectronics Co.,Ltd. ("NationStar Optoelectronics") through acquisition programs starting from 2021. At present, the principalbusiness of the Company mainly includes the R&D, production and sale of general lighting products, electricalproducts, automotive lighting products, and LED packaging products.The general lighting business of the Company mainly covers LED light sources, LED luminaries, traditionallighting products and comprehensive lighting solutions for home lighting, commercial lighting, industriallighting, municipal road lighting and landscape lighting. Over recent years, the Company has been exploringnew fields, including smart lighting, healthy lighting, marine lighting, and animal and plant lighting.Electrical products mainly include switches, sockets, smart control panels, and smart door locks.Based on its own automotive light sources and modules, the Company, relying on its majority-owned subsidiaryNanning Liaowang, has expanded the automotive lighting business into the automotive light assembly sector,involving basically all the lights that an automobile requires, such as headlights, rear light combos, fog lights,backup lights, interior lights, and license plate lights. The main clients of Nanning Liaowang include SAIC-GM-Wuling Automobile, Chongqing Changan Automobile, Bestune, SAIC Maxus Automotive, DFLZM,Dongfeng Xiaokang, SERES, and other whole-automobile manufacturers.The Company conducts LED packaging business mainly by relying on its majority-owned subsidiaryNationStar Optoelectronics (stock code: 002449). The primary products include components (includingcomponents for display, lighting, automotive applications, and optoelectronics), modules (including display andbacklight modules as well as mini backlight modules), LED epitaxial wafers and chips (including blue andgreen display / digital indication / automotive high power flip-flop / vertical LED chip products / Mini/MicroLED chip products), integrated circuit packaging components (including SOP/SOT/SOD/DFN/QFN products),and third generation semiconductor packaging components and modules (including SiC-SBD/SiC-MOS/NSiCpower modules / NSGaN/E-mode series products). These products are widely used for consumer electronics,home appliances, computers, communications, display and lighting products, general lighting, automotivelighting, sterilization and purification, plant lighting, and other fields.(II) Industry developmentCurrently, lighting enterprises remain under pressure in the face of difficulties and challenges such asinadequate effective market demand and weak social expectations. Industry competition has further intensified.Major enterprises accelerated transformation and upgrading to intelligent, energy-saving, and differentiatedproducts for new competitive edges. Enterprises with advantages in technology, fund and brand were gradually
expanding their market shares, and high-quality resources were being channeled to leading players.Concurrently, with the continuously upgraded technologies and policy encouragement, segmentations such asintelligent lighting, healthy lighting, marine lighting, and animal and plant lighting achieved sustained growth,bringing new development opportunities for the industry.Automotive lights are core parts of an automobile, which are closely linked to the development of theautomotive industry. In accordance with the statistics released by the China Association of AutomobileManufacturers (CAAM), the automobile output and sales in China for the first half of the year reached 13.891million and 14.047 million, up by 4.9% and 6.1% year on year, respectively. Particularly, the new energyvehicle industry achieved ongoing fast growth. Statistically, the output and sales of new energy vehicles for thefirst half of the year reached 4.929 million and 4.944 million, up by 30.1% and 32% year on year, respectively.Additionally, the market share of new energy vehicles reached 35.2%. The growth in automobile output andsales boosted steady scale growth in the automotive light market. As the new energy vehicle industry in Chinahas rapidly developed and the R&D capabilities of the upstream, midstream and downstream enterprises alongthe domestic automotive-light industrial chain have improved in the last few years, Chinese auto partsenterprises have gradually been incorporated by vehicle companies into their supply chain systems. This hasgiven good opportunities to Chinese automotive light enterprises. At the same time, the increasingly stricterenvironmental protection and energy conservation requirements for and the continuous electronic, intelligentand personalised development of automotive lights have placed higher demands on enterprises' technologyinnovation.Although LED packaging demand picked up in the first half of the year, the overall improvement fell short ofexpectations. With the upgraded technologies as well as national and local policy support, product applicationfields were constantly expanded. Leading LED packaging enterprises occupied more market shares based ontechnical and cost advantages. Meanwhile, the new-generation display technology led by Mini/Micro LEDentered a phase of rapid development with its excellent characteristics such as low power consumption, highintegration, high display effect, and high technical life. Additionally, VR/AR devices, wearable devices, vehicledisplays, tablet/computer displays, and projection displays became important application scenarios of newdisplay technologies. Market opportunities continuously increased.(III) Business models
1. Procurement model
The Company's procurement department should ensure that the procured materials and products meet theprescribed requirements and that procurement activities are under control. Besides, it should consider the needsof each department and the reasonable stock quantity before carrying out any procurement, determine suppliersby means of bidding, price negotiation, and price comparison, as well as follow up on the purchase orders.There should be several backup suppliers of each principal raw material to ensure fair procurement price, timelymaterial supply, and reliable quality.
2. Production model
For routine products, the production plan for the next month is prepared based on the analysis of the sales ofeach month and changes in the future market demand and the safe stock benchmark. Each production
department produces products as planned so as to control the stock and meet the sales demand. For customizedproducts, the make-to-order strategy is implemented to effectively control the stock quantity of raw materials,reduce the funds that are tied up, and improve the Company's operational efficiency.
3. Sales model
In the general lighting business, for domestic sales, the Company adopts the model of agency distribution anddirect supply to engineering projects. The Company sells in hardware distribution, home, engineering, and e-commerce & retail sale channels. For foreign sales, the Company adopts the models of OEM and independentbrands. The sale of products of independent brands abroad is carried out mainly via agencies.In the automotive lighting business, in the factory-installed market, the model of supplying automotive lightproducts directly to OEMs is mainly adopted; in the aftermarket, products are mainly sold by agencies.In the LED packaging business, the direct sale model is mainly adopted, in which products are sold throughdirect communication with clients.(IV) Main driving forces for growthThe Company upholds the overall idea of "stabilizing the fundamentals and strengthening new businesses", andcontinuously strengthens the innovation driver and refines the business portfolio. Additionally, it promotes thechange of the marketing model, intensifies management improvement, and vigorously explores marketsegments. Since 2021, the Company has acquired Nanning Liaowang and NationStar Optoelectronics, whichhas provided strong support for the Company to rapidly enter the OEM market and make the automobile vehiclelamp business of the Company stronger and bigger, as well as to strengthen integration upstream anddownstream of the industrial chain of LED. Meanwhile, with the evolution of the industrial competition model,consumers are getting increasingly concerned with product quality and brand. As a result, lighting companieswith weak competitiveness will be gradually elbowed out of the market while large enterprises or enterpriseswith core competitiveness will have more market opportunities. By virtue of its advantages in technology, brand,channel and scale, the Company has continued to promote the technical upgrading of its primary products,improve product quality, beef up market expansion and optimize the business portfolio through sustainedspending on R&D and technical innovation. Meanwhile, it has gained an advantageous position in the processof enhancing market concentration by increasing the level of production automation, effectively controllingpurchase costs and ramping up production efficiency.II Core Competitiveness Analysis
The Company has been dedicated to the R&D, manufacturing and sale of lighting products since itsestablishment. Through continuous channel development, branding, investment in R&D and innovation as wellas vertical integration of the industrial chain, the core competitiveness of the Company has been furtherstrengthened, which is mainly reflected in the following aspects:
Channel advantage
The Company has been sticking to the market strategy of deeply cultivating and refining channels. Over yearsof development and experience, the Company has been equipped with four major sales channels in domesticmarket (hardware distribution, home, engineering, and e-commerce & retail sales channels), forming amarketing network covering the whole country; in foreign market, the Company has made active steps todevelop international market business, sold products to more than 120 countries and regions in North America,Europe, Southeast Asia, Africa and Oceania, and kept improving overseas sales channel. By virtue of itspowerful and comprehensive sales channels, the Company has enabled its products to enter market rapidly,substantially enhancing its market development abilities and competitiveness. Nanning Liaowang is a majormanufacturer in the Chinese automotive light industry. It has accumulated stable whole-automobilemanufacturing clients and has been developing customers of medium- and high-end and new energy vehiclemakers. Its client entities are increasingly diverse. NationStar Optoelectronics has an excellent client structure.It has established a long-term cooperative relationship with industry-leading display manufacturers andinternationally famous home appliance enterprises, has successfully showcased its products in many largeevents and high-end venues at home and abroad, and is widely recognized by end clients and the market.Brand advantageAs a national brand that has 66 years of experience in the lighting industry, the presence and value of “FSL” hascontinued to increase. For 19 consecutive years, the Company has been included in the list of "China's 500 MostValuable Brands". In 2024, the value of FSL brand reached RMB39.382 billion. In 2014, “FSL” was recognizedby China’s Ministry of Commerce as a “China Time-honored Brand”. In recent years, with the enhancement ofits development positioning, product design and user experience, the Company has initiated the strategy ofbrand upgrading and carried out promotion by centering around the new "Professional, Healthy, Fashionableand Intelligent". In addition, it has accelerated brand building through high-end mainstream media platform,Internet emerging media and offline terminal advertising respectively. Seizing the opportunities arising from therecognition of “China Time-honored Brand”, the Company deeply explores the connotation and core values of“China Time-honored Brand”, and promotes the optimisation and upgrading of the brand image, such assignboards for stores and shelves for stores. By doing so, it has maximized the brand and productcommunication effect, formed a comprehensive and diversified publicity position, and driven the transition of“FSL” from an industrial brand to a popular brand to further stimulate vitality as a “China Time-honoredBrand”. The brand "FSL" has become one of the most influential and popular industrial brands in China, andthe powerful brand influence has played a key role in driving the sustained growth of the Company’s sales.Nanning Liaowang strictly abides by the national industry standards when producing automotive lights of the"Liaowang" brand. It has been hailed as a high-quality supplier of car manufacturers for quite a few times.NationStar Optoelectronics has been awarded honors such as "National High-tech Enterprise Certification","Brand Power", "Top 10 LED Packaging Brands", GREE’s “Excellent Display Device Suppler”, and Midea’s“Partner of Excellent Quality”, which constantly enhances its image of professionalism and brand advantages.R&D technical advantageThe Company values the R&D of new products and the development of innovation and R&D teams, and hasestablished a scientific and independent science and technology innovation system, and a team of well-structured, collaborative and efficient talents. It has further increased spending on technology and introducedfirst-class R&D equipment and facilities from home and abroad to provide favourable conditions for scientificand technological innovation. The Company is a national high-tech company, and its testing center has the
CNAS-approved qualification. In addition, the Company has built innovative platforms such as "GuangdongEngineering Technology Development Center", "Guangdong Industrial Design Center", "Guangdong EnterpriseTechnology Center", and "Lighting Research Institute". Besides, the Company has won the titles of "NationalIP Demonstration Enterprise" and “Guangdong Province Manufacturing Segment Champion Enterprise”, andestablished a "Postdoctoral Research Station (Substation)" and a "Guangdong Science and Technology ExpertWorkstation" to explore and intensify efforts in the cutting-edge technology of LEDs, and address key issuesand common technology issues in the industry. It has formed technical barriers with proprietary intellectualproperty rights in lighting, spectroscopic, electrical, IoT, AI and many other fields. Cumulatively, the companyand its holding subsidiaries have been granted nearly 2,400 valid patents. The Company actively integratesinternal and external resources and collaborates with Tsinghua University, Fudan University, Sun Yat-senUniversity, South China University of Technology, Dalian Ocean University, Institute of Deep-Sea Science andEngineering of CAS, Ji Hua Laboratory, and other scientific research institutes to establish in-depth industrialand research cooperation, so as to promote key technological breakthroughs and transformation of scientific andtechnological achievements. Meanwhile, the Company has formed a smooth R&D talent cultivation channel toprovide a strong guarantee for the Company to maintain technological leadership and continuous productinnovation. Nanning Liaowang boasts a provincial enterprise technology center, a provincial R&D center, and aGuangxi automotive lighting parts engineering technology research center; and established the AutomotiveLighting Research Institute and multiple R&D centres. In recent years, Nanning Liaowang has increasedinvestment in R&D, accelerated investment in various lens modules and interactive signal lamp technologies,and continuously enhanced its R&D strength. NationStar Optoelectronics has created 14 R&D platforms,including the Postdoctoral Research Station, and the National- and local-joint Engineering Laboratory forSemiconductor Lighting Materials and Components. It has undertaken near 30 national research projects suchas the national "863" program and the key national R&D program, in addition to more than 100 provincial andministerial research projects. Besides, it has won a variety of honors such as "National Intellectual PropertyDemonstration Enterprise", “China Patent Gold Award”, "National Science and Technology Progress Award(first/second prize)", as well as “GG Golden Globe Award”. In recent years, it has launched Mini/Micro LED,third-generation semiconductor power devices, smart health sensors, and vehicle-mounted devices, among otherproducts.Scale advantageAs one of the enterprises to first step into the industry of producing and selling lighting products, the Companyforms a capability of mass manufacturing by years of experience accumulation. After years of continuousinvestment, the Company has greatly improved its production automation level. The large-scale and centralizedproduction brings obvious economic benefits to the Company, which not only shows in manufacture cost ofproducts, but also shows in aspects such as raw material procurement and price negotiation. Withmanufacturing bases in Nanning, Liuzhou, Chongqing, Qingdao, and Indonesia, Nanning Liaowang has anannual production capacity of more than five million sets of automotive lights. NationStar Optoelectronicsbegan engaging in LED packaging in 1976. It is included in the first batch of enterprises that have producedLED products and the first Chinese enterprise to go public with LED packaging as its principal business.Besides, it is one of the largest LED manufacturers in China.Advantage of a vertical and integrated LED industrial chain
By controlling NationStar Optoelectronics, whose business covers the entire LED industry chain, includingupstream LED chip manufacturing, midstream LED packaging, and downstream LED application products, theCompany has optimized the industry chain and further enhanced its competitiveness and visibility in theindustry.III Analysis of Principal OperationsOverviewDuring the Reporting Period, in the face of the unfavourable factors of weak market demand and more intensecompetition in the industry, the Company adhered to the operating principle of “strengthening the foundation,promoting transformation, preventing risks and achieving new heights”. Seizing all favourable factors andmaking use of all favourable conditions, the Company went all out to improve operation, strengthenmanagement, expand markets and drive growth. As a result, good results were achieved in various operationalaspects. During the first half of 2024, the Company recorded operating revenue of RMB4.785 billion, up 4.78%year on year, and a net profit attributable to its shareholders of RMB192 million, increasing by 13.79% year onyear.The highlights of the Company's work during the Reporting Period are as follows:
1. Focusing on market expansion, the Company achieved steadily improved operating results.The Company implemented the business strategy of "enhancing brands, increasing varieties, improving quality,and optimising services" in the first half of the year, stepping up efforts on all business segments and lines. First,the marketing network endpoints were constantly expanded. The Company promoted channel extension on anongoing basis and the construction of retail outlets. A batch of exclusive stores were newly opened.Furthermore, it developed untapped markets and improved its service to and control of retail outlets. Second,support from large customers and large projects became stronger. The Company signed strategic cooperationagreements with several capable large enterprises, successfully won bids for a number of centralisedprocurement projects of large customers, and implemented several large rail transit projects and industriallighting projects, which effectively drove sales growth. Third, efforts were continued to expand overseas market.The Company conducted in-depth exploration of the potential of major customers, actively engaged withspecific market needs, and enhanced its service capabilities. While consolidating markets where it hascompetitive edges, the Company intensified the development of emerging markets. The operating revenue ofoverseas independent brands kept increasing. Fourth, automotive lights maintained growth. The Companyseized market opportunities with technologies and services. Six automobile OEMs were newly developed andten new model projects were launched.
2. Focusing on technological innovation, the Company accelerated product transformation and upgrading.The Company insisted on giving full play to the leading role of technology R&D in expanding major customersand new customers, and on promoting projects with technologies. Targeting the development trends ofintelligent, healthy, low-carbon and other technologies, the Company consistently invested in R&D,accelerating technological upgrades, product iterations, and the cultivation and development of new qualityproductive forces. In the first half of the year, the Company invested a total of RMB289 million in R&D,
representing a year-on-year growth of 26.84%. The intensity of R&D investment reached 6.04%. The Companytargeted market demands and conducted technological research to develop innovative products. It identified fiveproduct series, introducing new products such as intelligent parking lot lighting solutions, OLED photon beautydevices, comfortable lamps to maintain good eye health and help with sleep, internationally certified sky lightsthat meet European ERP energy efficiency requirements, and HD projection interactive modules with high pixeldensity. The Company strengthened its efforts in applying for independent intellectual property rights. In thefirst half of the year, it was granted 274 new patents, and issued 12 standards at various levels.
3. Focusing on quality and efficiency improvement, the Company effectively increased its profitability.The Company identified "quality and efficiency improvement" as its annual battle, focusing on key points anddifficulties, and taking multiple measures to reduce costs and improve quality and efficiency. First, a variety ofmeasures were adopted to minimise costs. Through a combination of strategies including design optimisation,procurement bids, lean production, and expense control, the Company tapped into the potential of the entiresupply chain. With respect to procurement, the Company decreased procurement costs by refining suppliers,pre-judging price trends of relevant raw materials, reducing material specifications, and lowering prices throughvolume increase, among other methods. In terms of production, the Company implemented measures such asthe "five cost reduction measures”, quantitative control of materials, as well as energy conservation andconsumption reduction to reduce manufacturing costs. As for management, the Company insisted on diligentcorporate management and enhanced expenditure control. Second, the Company strengthened its control overinventory and accounts receivable. The Company fully implemented the "Inventory Control 369" rule. Itstrengthened sales forecasting and the docking of production and marketing, and implemented real-timemonitoring and monthly inspections of product inventory, doing its utmost to control inventory levelseffectively. Furthermore, it adjusted sales policies, strictly controlled risk exposures, set up a leadership groupfor the collection of overdue accounts receivable, and doubled collection efforts.
4. Focusing on reform and upgrading, the Company stimulated both vitality and impetus.The Company centred its efforts on the goal of stimulating vitality and improving efficiency, and made everyeffort to secure in-depth and solid advances in reform deepening and upgrading. First, the Company reshapedthe organisational structure, re-defined posts and pay grades, and optimised staffing. Based on the principle of"research, production and sale" quick response, the function of "optimisation and small changes" wastransferred from the Institute to business departments and production departments so that efficiency wasboosted and that the Institute was able to be more focused on the R&D of innovative products. Second, theCompany rebuilt the orientation for talent use. As a key talent management system featuring "both integrity andprofessional competence and an optimised structure" was established, the Company promoted the competitiveselection of middle-level management positions and continuously optimised the talent structure. Third, theCompany restructured the incentive system. The reform of the remuneration system was put fully into effect. Adifferentiated performance appraisal and remuneration mechanism was implemented, effectively stimulating theenthusiasm and motivation of all employees to strive for higher goals.Year-on-year changes in key financial data:
Unit: RMB
| H1 2024/30 June 2024 | H1 2023/31 December 2023 | Change (%) | Main reason for change |
| H1 2024/30 June 2024 | H1 2023/31 December 2023 | Change (%) | Main reason for change | |
| Operating revenue | 4,784,545,767.42 | 4,566,062,729.02 | 4.78% | |
| Cost of sales | 3,861,658,076.61 | 3,733,474,828.88 | 3.43% | |
| Selling expense | 175,810,829.30 | 131,921,130.00 | 33.27% | Business promotion and advertising expenses, employee remunerations, and other expenses paid in the process of selling products for market expansion in the current period |
| Administrative expense | 226,332,962.51 | 200,946,085.42 | 12.63% | |
| Finance costs | -30,606,244.74 | -30,162,622.41 | -1.47% | |
| Income tax expense | 24,632,382.12 | 31,304,364.49 | -21.31% | |
| R&D expense | 288,841,483.79 | 227,718,701.74 | 26.84% | |
| Net cash generated from/used in operating activities | 384,593,044.61 | 387,869,057.20 | -0.84% | |
| Net cash generated from/used in investing activities | -831,982,796.40 | -4,465,936.70 | -18,529.53% | Purchase of a higher total amount of large depository receipts in the current period |
| Net cash generated from/used in financing activities | 19,514,293.35 | -359,583,672.75 | 105.43% | Higher amounts of cash dividend payout and borrowing repayment in the same period of last year |
| Net increase in cash and cash equivalents | -413,495,213.21 | 28,750,024.39 | -1,538.24% | Decrease in net cash generated from investing activities |
| Accounts receivable financing | 296,834,332.74 | 443,201,960.02 | -33.03% | Decrease in bank acceptance bills of a high credit level in the current period |
| Prepayments | 55,984,559.55 | 34,508,638.92 | 62.23% | Increase in prepayments in the ordinary course of business in the current period |
| Contract assets | 2,366,030.73 | 4,252,013.94 | -44.36% | Receipt of customer payments in the current period |
| Other current assets | 195,745,670.47 | 109,292,399.14 | 79.10% | Purchase of bank’s short-term wealth management products in the current period |
| Investments in other debt obligations | 1,124,498,738.94 | 454,822,905.25 | 147.24% | Purchase of a higher total amount of large depository receipts in the current period |
| Right-of-use assets | 4,980,388.38 | 8,812,320.64 | -43.48% | Surrender of some leases in the current period |
| Other non-current assets | 157,198,709.48 | 119,327,703.18 | 31.74% | Increase in long-term assets to be disposed of in the current period |
| H1 2024/30 June 2024 | H1 2023/31 December 2023 | Change (%) | Main reason for change | |
| Short-term borrowings | 124,850,000.00 | 220,019,877.73 | -43.26% | Derecognition of discounted notes with recourse in the current period |
| Advances from customers | 231,062.59 | 466,872.69 | -50.51% | Decrease in advances of rentals in the current period |
| Contract liabilities | 136,319,866.46 | 235,335,693.28 | -42.07% | Decreased advances from customers in the current period |
| Taxes payable | 80,226,629.71 | 42,940,157.30 | 86.83% | Increase in value added tax payable in the current period |
| Other payables | 614,845,550.63 | 362,491,923.01 | 69.62% | The 2023 final dividend in cash was declared and provided for in the current period |
| Other current liabilities | 194,436,120.52 | 95,008,427.01 | 104.65% | Increase in notes receivable that had been endorsed but were undue in the current period |
| Lease liabilities | 1,976,953.14 | 4,310,967.92 | -54.14% | Surrender of some leases in the current period |
| Other non-current liabilities | 205,769.48 | -100.00% | Transfer of output tax pending write-off in the current period | |
| Specific reserve | 4,407,364.68 | 1,213,325.92 | 263.25% | Establishment of specific reserve in the current period |
| Other income | 60,151,413.19 | 27,389,992.05 | 119.61% | Increase in government grants received in the current period |
| Return on investment (“-” for loss) | 38,017,499.24 | 22,449,570.63 | 69.35% | Increased interest income from large depository receipts in the current period |
| Gain on changes in fair value (“-” for loss) | -601,447.40 | -22,153,522.56 | 97.29% | Decreased gain on changes in fair value as a result of the transfer of investments in wealth management instruments to return on investment upon maturity |
| Credit impairment loss (“-” for loss) | -38,270,808.58 | -18,947,421.03 | -101.98% | Increased allowance for expected credit loss in the current period |
| Asset impairment loss (“-” for loss) | -36,958,804.89 | -16,390,888.73 | -125.48% | Increased inventory valuation allowances in the current period |
| Asset disposal income (“-” for loss) | -99,108.79 | 110,475.52 | -189.71% | Loss on disposal of assets in the current period |
| Non-operating expense | 486,217.43 | 4,780,570.32 | -89.83% | A higher base of such loss on damage and retirement of non-current assets in the same period of last year |
| H1 2024/30 June 2024 | H1 2023/31 December 2023 | Change (%) | Main reason for change | |
| Other comprehensive income, net of tax | -22,766,075.54 | -49,800,869.38 | 54.29% | Decreased changes in the fair value of investments in other equity instruments in the current period compared with the same period of last year |
| Other comprehensive income, net of tax attributable to owners of the Company as the parent | -22,203,388.92 | -50,939,650.35 | 56.41% | Decreased changes in the fair value of investments in other equity instruments in the current period compared with the same period of last year |
| Changes in the fair value of investments in other equity instruments | -21,548,515.71 | -52,237,967.85 | 58.75% | Decreased changes in the fair value of investments in other equity instruments in the current period compared with the same period of last year |
| Differences arising from the translation of foreign currency-denominated financial statements | -654,873.21 | 1,298,317.50 | -150.44% | Fluctuations of the RMB against foreign currencies |
| Other comprehensive income, net of tax attributable to non-controlling interests | -562,686.62 | 1,138,780.97 | -149.41% | Fluctuations of the RMB against foreign currencies |
| Total comprehensive income | 230,676,181.11 | 175,304,418.91 | 31.59% | Decreased changes in the fair value of investments in other equity instruments in the current period compared with the same period of last year |
| Total comprehensive income attributable to owners of the Company as the parent | 170,025,793.46 | 117,995,582.19 | 44.10% | Decreased changes in the fair value of investments in other equity instruments in the current period compared with the same period of last year |
Material changes to the profit structure or sources of the Company in the Reporting Period:
□Applicable?Not applicable
No such changes in the Reporting Period.
Breakdown of operating revenue:
Unit: RMB
| H1 2024 | H1 2023 | Change (%) | |||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| Total | 4,784,545,767.42 | 100% | 4,566,062,729.02 | 100% | 4.78% |
| By operating division | |||||
| Lighting products and luminaries | 2,867,569,798.18 | 59.93% | 2,710,661,113.22 | 59.37% | 5.79% |
| Electronic component manufacturing | 1,441,392,532.40 | 30.13% | 1,360,444,139.66 | 29.79% | 5.95% |
| Export trade and | 475,583,436.84 | 9.94% | 494,957,476.14 | 10.84% | -3.91% |
| H1 2024 | H1 2023 | Change (%) | |||
| Operating revenue | As % of total operating revenue (%) | Operating revenue | As % of total operating revenue (%) | ||
| other | |||||
| By product category | |||||
| General lighting products | 1,718,962,585.41 | 35.93% | 1,792,551,295.05 | 39.26% | -4.11% |
| LED packaging and components | 1,323,471,292.10 | 27.66% | 1,253,523,386.12 | 27.45% | 5.58% |
| Auto lamps | 1,045,063,423.50 | 21.84% | 806,133,465.65 | 17.65% | 29.64% |
| Trade and other | 697,048,466.41 | 14.57% | 713,854,582.20 | 15.63% | -2.35% |
| By operating segment | |||||
| Domestic | 3,747,878,177.49 | 78.33% | 3,478,275,919.17 | 76.18% | 7.75% |
| Overseas | 1,036,667,589.93 | 21.67% | 1,087,786,809.85 | 23.82% | -4.70% |
Operating Division, Product Category or Operating Segment Contributing over 10% of Operating Revenue orOperating Profit:
? Applicable □ Not applicable
Unit: RMB
| Operating revenue | Cost of sales | Gross profit margin | YoY change in operating revenue (%) | YoY change in cost of sales (%) | YoY change in gross profit margin (%) | |
| By operating division | ||||||
| Lighting products and luminaries | 2,867,569,798.18 | 2,194,117,341.06 | 23.49% | 5.79% | 3.17% | 1.95% |
| Electronic component manufacturing | 1,441,392,532.40 | 1,235,716,493.51 | 14.27% | 5.95% | 7.54% | -1.27% |
| Export trade and other | 475,583,436.84 | 431,824,242.04 | 9.20% | -3.91% | -5.66% | 1.68% |
| By product category | ||||||
| General lighting products | 1,718,962,585.41 | 1,268,088,979.58 | 26.23% | -4.11% | -7.80% | 2.96% |
| LED packaging and components | 1,323,471,292.10 | 1,099,752,921.69 | 16.90% | 5.58% | 8.25% | -2.05% |
| Auto lamps | 1,045,063,423.50 | 852,898,599.13 | 18.39% | 29.64% | 27.59% | 1.31% |
| Trade and other | 697,048,466.41 | 640,917,576.21 | 8.05% | -2.35% | -4.87% | 2.43% |
| By operating segment | ||||||
| Domestic | 3,747,878,177.49 | 2,991,223,462.34 | 20.19% | 7.75% | 6.97% | 0.59% |
| Overseas | 1,036,667,589.93 | 870,434,614.27 | 16.04% | -4.70% | -7.11% | 2.18% |
Data of principal operations of the latest period adjusted according to the changed statistical caliber in theReporting Period:
□ Applicable ? Not applicable
IV Analysis of Non-Principal Operations
? Applicable □ Not applicable
Unit: RMB
| Amount | As % of profit before tax | Source/Reason | Recurrent or not | |
| Return on investment | 38,017,499.24 | 13.67% | Dividend income from other equity investments held during the period, and interest income from other debt investments | Yes |
| Gain/loss on changes in fair value | -601,447.40 | -0.22% | Gain/loss on changes in fair value of financial instruments | Yes |
| Asset impairments | -36,958,804.89 | -13.29% | Inventory valuation allowances | Yes |
| Non-operating income | 3,054,859.55 | 1.10% | Revenue from liquidated damages, and carryforwards of payables that require no payment | Not |
| Non-operating expense | 486,217.43 | 0.17% | Loss on retirement of non-current assets and compensation expenses | Not |
| Other income | 60,151,413.19 | 21.63% | Receipt of continuing government grants | Not |
| Credit impairment loss | -38,270,808.58 | -13.76% | Allowances for doubtful accounts receivable and other receivables | Yes |
| Asset disposal income | -99,108.79 | -0.04% | Gains or losses on the disposal of non-current assets | Not |
V Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
| 30 June 2024 | 31 December 2023 | Change in percentage (%) | Main reason for significant change | |||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Monetary assets | 3,191,608,973.70 | 18.69% | 3,596,049,654.55 | 21.24% | -2.55% | Purchase of large depository receipts in the current period |
| Accounts receivable | 2,452,672,368.91 | 14.36% | 2,093,499,280.40 | 12.36% | 2.00% | Increased sales in the current period |
| Contract assets | 2,366,030.73 | 0.01% | 4,252,013.94 | 0.03% | -0.02% | |
| Inventory | 1,713,501,547.83 | 10.04% | 1,971,171,641.14 | 11.64% | -1.60% | The Company enhanced inventory control in the current period. |
| Investment property | 160,155,678.54 | 0.94% | 163,636,347.41 | 0.97% | -0.03% | |
| Long-term equity investments | 180,633,275.87 | 1.06% | 179,188,555.15 | 1.06% | 0.00% | |
| Fixed assets | 3,481,812,429.68 | 20.39% | 3,453,214,586.47 | 20.39% | 0.00% | |
| Construction in progress | 1,070,611,321.57 | 6.27% | 1,174,533,505.11 | 6.94% | -0.67% | Increase in construction in progress transferred to fixed assets in the current period |
| 30 June 2024 | 31 December 2023 | Change in percentage (%) | Main reason for significant change | |||
| Amount | As % of total assets | Amount | As % of total assets | |||
| Right-of-use assets | 4,980,388.38 | 0.03% | 8,812,320.64 | 0.05% | -0.02% | |
| Short-term borrowings | 124,850,000.00 | 0.73% | 220,019,877.73 | 1.30% | -0.57% | Derecognition of discounted notes with recourse in the current period |
| Contract liabilities | 136,319,866.46 | 0.80% | 235,335,693.28 | 1.39% | -0.59% | Decreased advances from customers in the current period |
| Long-term borrowings | 274,397,540.10 | 1.61% | 253,093,421.29 | 1.49% | 0.12% | |
| Lease liabilities | 1,976,953.14 | 0.01% | 4,310,967.92 | 0.03% | -0.02% | |
| Notes receivable | 968,135,967.44 | 5.67% | 1,057,352,267.60 | 6.24% | -0.57% | Maturity of some notes receivable in the current period |
| Receivables financing | 296,834,332.74 | 1.74% | 443,201,960.02 | 2.62% | -0.88% | Decrease in bank acceptance bills of a high credit level in the current period |
| Other current assets | 195,745,670.47 | 1.15% | 109,292,399.14 | 0.65% | 0.50% | Purchase of bank’s short-term wealth management products in the current period |
| Other debt investments | 1,124,498,738.94 | 6.59% | 454,822,905.25 | 2.69% | 3.90% | Purchase of a higher total amount of large depository receipts in the current period |
| Notes payable | 2,052,737,312.65 | 12.02% | 2,271,174,787.69 | 13.41% | -1.39% | Maturity of some notes payable in the current period |
| Accounts payable | 2,971,638,357.60 | 17.40% | 2,875,980,206.64 | 16.98% | 0.42% | |
| Other payables | 614,845,550.63 | 3.60% | 362,491,923.01 | 2.14% | 1.46% | The 2023 final dividend in cash was declared and provided for in the current period |
| Other current liabilities | 194,436,120.52 | 1.14% | 95,008,427.01 | 0.56% | 0.58% | Increase in notes receivable that had been endorsed but were undue in the current period |
2. Major Assets Overseas
□ Applicable ? Not applicable
3. Assets and Liabilities at Fair Value
? Applicable □ Not applicable
Unit: RMB
| Item | Beginning amount | Gain/loss on fair-value changes in the Reporting Period | Cumulative fair-value changes charged to equity | Impairment allowance for the Reporting Period | Purchased in the Reporting Period | Sold in the Reporting Period | Other changes | Ending amount |
| Financial assets | ||||||||
| 1. Held-for-trading financial assets (exclusive of derivative financial assets) | 152,529,775.41 | -601,447.40 | 260,000,000.00 | 305,000,000.00 | 106,928,328.01 | |||
| 2. Other debt investments | 454,822,905.25 | 727,000,000.00 | 70,000,000.00 | 12,675,833.69 | 1,124,498,738.94 | |||
| 3. Investments in other equity instruments | 699,762,746.35 | -25,351,194.95 | 397,860,890.64 | 674,411,551.40 | ||||
| 4. Receivables financing | 443,201,960.02 | 146,367,627.28 | 296,834,332.74 | |||||
| Subtotal of financial assets | 1,750,317,387.03 | -25,952,642.35 | 397,860,890.64 | 987,000,000.00 | 521,367,627.28 | 12,675,833.69 | 2,202,672,951.09 | |
| Total of the above | 1,750,317,387.03 | -25,952,642.35 | 397,860,890.64 | 987,000,000.00 | 521,367,627.28 | 12,675,833.69 | 2,202,672,951.09 | |
| Financial liabilities | 0.00 | 0.00 | ||||||
Details about other changes:
(1) The purchased amount in the Reporting Period of other debt investments referred to the cash management(large depository receipts) by the Company with its own temporarily idle funds, which was classified asfinancial assets at fair value through other comprehensive income. RMB727,000,000.00 andRMB70,000,000.00 of large depository receipts were purchased and sold, respectively, in the Reporting Period,with the cumulative fair value changes being RMB0.00 and other changes being RMB12,675,833.69 ofcumulative recognized interest.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes ? No
4. Restricted Asset Rights as at the Period-End
Unit: RMB
| Item | Ending carrying value | Reason for restriction |
| Monetary assets | 492,360,246.76 | Security deposits for notes, performance bonds, payments by buyers for pre-sale of properties |
| Notes receivable | 750,368,403.26 | In pledge for notes pool, undue notes receivable that have been endorsed or discounted |
| Receivables financing | 31,596,200.00 | In pledge for notes pool |
| Fixed assets | 211,662,443.02 | As mortgage and guarantee for related party, see XVI (III) “Guarantees” in Part X |
| Intangible assets | 10,497,200.96 | |
| Total | 1,496,484,494.00 | —— |
VI Investments Made
1. Total Investment Amount
? Applicable □ Not applicable
| Investment amount in the Reporting Period (RMB) | Investment amount in the same period of last year (RMB) | Change (%) |
| 88,163,470.03 | 30,578,843.07 | 188.32% |
2. Major Equity Investments Made in the Reporting Period
□ Applicable ? Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
? Applicable □ Not applicable
Unit: RMB
| Name of project | Way of investment | Fixed asset investment or not | Industry of the investment project | Input in the Reporting Period | Cumulative input as of the period-end | Funding source | Project progress | Predicted return | Cumulative return as of the period-end | Reason for failure to reach the planned progress and predicted return | Date of disclosure (if any) | Disclosure index (if any) |
| The production ramp-up | Other | Yes | LED packaging | 5,568,000.00 | 899,877,146.45 | Self-pooled funds | 98.52% | N/A | 10 January 2019 | Announcement on Investment in the Productio |
| project for new-generation LED packaging devices and chips | n Ramp-up Project for New-generation LED Packaging Devices and Chips on www.cninfo.com.cn (announcement of subsidiary NationStar Optoelectronics) | |||||||||||
| The Jili Industrial Park project (not including land purchase) | Other | Yes | LED packaging | 26,670,733.97 | 563,541,550.17 | Self-pooled funds | 32.87% | N/A | 7 August 2020 | Announcement on Investment in the Construction of NationStar Optoelectronics’ Jili Industrial Park Project on www.cninfo.com.cn (announcement of subsidiary NationStar Optoelectronics) | ||
| Total | -- | -- | -- | 32,238,733.97 | 1,463,418,696.62 | -- | -- | -- | -- | -- |
4. Financial Investments
(1) Securities Investments
? Applicable □ Not applicable
Unit: RMB
| Security type | Security code | Security name | Initial investment cost | Measurement method | Beginning carrying value | 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 value | Accounting title | Funding source |
| Domestically/Overseas listed stock | 002074 | Gotion High-tech Co., Ltd. | 83,014,485.13 | Fair value method | 368,376,506.50 | -40,264,408.85 | 245,097,612.52 | 1,713,379.10 | 328,112,097.65 | Investments in other equity instruments | Self-funded | ||
| Domestically/Overseas listed stock | 601187 | Xiamen Bank Co., Ltd. | 152,957,606.83 | Fair value method | 290,807,671.05 | 14,913,213.90 | 152,763,278.12 | 17,781,139.65 | 305,720,884.95 | Investments in other equity instruments | Self-funded | ||
| Other | N/A | Foshan branch of Guangdong Development Bank | 500,000.00 | Fair value method | 500,000.00 | 500,000.00 | Investments in other equity instruments | Self-funded | |||||
| Domestically/Overseas listed stock | 601777 | Lifan Technology | 1,176,008.74 | Fair value method | 901,522.76 | 65,473.72 | 966,996.48 | Held-for-trading financial assets | Other | ||||
| Domestically/Overseas listed stock | 000980 | ZOTYE Automobile | 423,448.92 | Fair value method | 77,775.02 | -40,975.43 | 36,799.59 | Held-for-trading financial assets | Other | ||||
| Total | 238,071,549.62 | -- | 660,663,475.33 | -25,326,696.66 | 397,860,890.64 | 0.00 | 0.00 | 19,494,518.75 | 635,336,778.67 | -- | -- | ||
(2) Investments in Derivative Financial Instruments
? Applicable □ Not applicable
1) Derivative Investments for Hedging Purposes in the Reporting Period
? Applicable □ Not applicable
Unit: USD’0,000
| Type of derivative | Initial investment amount | Beginning investment amount | Gain/Loss on fair-value changes in the Reporting Period | Accumulated fair-value changes recorded in equity | Purchased in the Reporting Period | Sold in the Reporting Period | Ending investment amount | Ending investment amount as % of the Company’s ending equity |
| General forward | 400 | 0 | 0 | 0 | 400 | 400 | 0 | 0.00% |
| General forward | 200 | 0 | 1.39 | 0 | 200 | 0 | 200 | 0.15% |
| Total | 600 | 0 | 1.39 | 0 | 600 | 400 | 200 | 0.15% |
| Major changes in accounting policies and specific accounting principles adopted for hedges in the Reporting Period compared to the last reporting period | No | |||||||
| Actual gain/loss in the Reporting Period | The actual gain stood at USD48,300 in the Reporting Period. | |||||||
| Effectiveness of hedging | The Company carries out foreign exchange hedging business appropriately according to specific situations, which can effectively reduce the foreign exchange market risk, lock in industrial profit of export business and avoid exchange rate risk. | |||||||
| Funding source | Self-funded | |||||||
| 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, etc.) | Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of economic changes at home and abroad, the foreign exchange hedging business faces market risk, to some extent. 2. Foreign currency risk: When the foreign currency trend greatly deviates from the Company's judgment of such trend, the expenses after locking the exchange rate might exceed that before doing so, resulting in losses to the Company. 3. Internal control risk: Imperfect internal control policies probably trigger risks to the foreign exchange hedging business, as it is highly professional and complex. 4. Trading default risk: If the counterparty of foreign exchange hedging defaults by failing to pay hedging earnings to the Company as agreed, the actual exchange loss of the Company will not be offset. 5. Collection forecast risk: Marketing departments forecast collection based on the actual and expected orders of customers. In practice, customers may adjust such orders. As a result, the Company's collection forecast will not be accurate, leading to delivery risks. 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 Company has established the Management System for Foreign Exchange Hedging and majority-owned subsidiary NationStar Optoelectronics has also formulated the Management System for Forward Forex Settlement and Sale and Forex Option Transactions, clearly defining 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 foreign exchange hedging business. 3. In order to prevent any delay in the foreign exchange hedging, 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 foreign exchange hedges must be strictly based on the Company’s foreign exchange earnings prediction. Besides, the Company shall strictly control the scale of its foreign exchange hedges, 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) | 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. |
| Legal matters involved (if applicable) | N/A |
| Disclosure date of announcement on board’s approving derivative investment (if any) | 1 August 2023, 30 April 2024 |
2) Derivative Investments for Speculative Purposes in the Reporting Period
□ Applicable ? Not applicable
No such cases in the Reporting Period.
5. Use of Funds Raised
? Applicable □ Not applicable
(1) General Information about Use of Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
| Year of raising | Way of raising | Total amount raised | Net proceeds | used in the current period | Cumulatively used | Re-purposed amount in the Reporting Period | Cumulative re-purposed amount | Cumulative re-purposed amount as % of total amount raised | Unused amount | Purpose and whereabouts of the unused amount | Amount being idle for more than two years |
| 2023 | Issuance of shares to specific objects | 109,455.18 | 108,841.55 | 3,479.13 | 12,276.66 | / | / | / | 96,771.36 | The Company had a cash management balance of | / |
| RMB599 million utilising temporarily idle raised funds, and the remaining amount was deposited in the special account for raised funds. | |||||||||||
| Total | -- | 109,455.18 | 108,841.55 | 3,479.13 | 12,276.66 | / | / | / | 96,771.36 | -- | / |
| Description of the use of raised funds | |||||||||||
| As approved by the Reply on the Approval of the Registration of Foshan Electrical and Lighting Co., Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the China Securities Regulatory Commission ("CSRC"), the Company issued 186,783,583 RMB-denominated ordinary shares (A shares) to specific objects at an issuance price of RMB5.86 per share. As of 9 November 2023, the Company had actually issued 186,783,583 RMB-denominated ordinary shares (A shares) to 13 specific objects. The total amount raised was RMB1,094,551,796.38. Exclusive of the issuance costs including underwriting fees, sponsor fees, audit fees, and attorney's fees equivalent to RMB6,136,307.56, the Company had actually raised net proceeds of RMB1,088,415,488.82. The availability of the above proceeds has been verified by China Central Public Accounting Firm (special general partnership), which issued the Capital Verification Report Z.H.Y.Z. (2023) No. 0500031. As of the end of 2023, the amount of raised funds actually received by the Company was RMB1,091,377,596.17. In 2023, RMB0.00 in the raised funds account was directly used in raised funds investment projects, a total self-pooled amount of RMB87,975,313.46 was input in advance to the raised funds investment projects and awaited swap, and another amount of RMB2,603,975.16 also awaited swap, which was the total of the self-pooled amount that had been paid in advance for issuance costs and stamp duty and the issuance costs to be paid. These amounts that awaited swap have been verified by WUYIGE Certified Public Accountants LLP, which issued the Verification Report D.X.Z.S.Z. [2023] No. 22-00052. And these amounts still awaited swap by 31 December 2023. As of 31 December 2023, the balance was RMB1,091,632,250.94. In the first half of 2024, RMB34,791,287.54 from the raised funds was directly used by the Company in raised funds investment projects. As of 30 June 2024, the amount of raised funds cumulatively used by the Company was RMB122,766,601 and the unused amount was RMB967,713,575.12. The Company's use of the raised funds was subject to approval by dedicated personnel to ensure that the funds were earmarked for their specific purposes only. | |||||||||||
(2) Promised Use of Raised Funds
? Applicable □ Not applicable
Unit: RMB’0,000
| Promised project funded with raised | Re-purposed or partial | Total promised investme | Adjusted total investment | Investment in the Reporting Period | Cumulative investment | Investment progress as at the | Time when the project is ready | Returns derived in the Reportin | Meeting the expected returns | Significant change to |
| funds and investment with over-raised funds | ly re-purposed or not | nt amount with raised funds | amount (1) | amount at the period-end (2) | period-end (3)＝(2)/(1) | for its intended use | g Period | or not | project feasibility or not | |
| Promised projects | ||||||||||
| 1. FSL’s automation and digitalization project | No | 36,464.27 | 35,850.64 | 730.63 | 1,024.3 | 2.86% | 1 November 2026 | - | N/A | No |
| 2. FSL’s Hainan industrial park Phase I | No | 25,252.91 | 25,252.91 | 1,590.72 | 8,955.29 | 35.46% | 1 May 2025 | - | N/A | No |
| 3. The smart street lights project | No | 9,179.52 | 9,179.52 | 1.3 | 67.44 | 0.73% | 1 May 2025 | - | N/A | No |
| 4. The vehicle light module production project | No | 24,008.8 | 24,008.8 | 801.06 | 951.59 | 3.96% | 1 May 2025 | - | N/A | No |
| 5. The R&D centre construction project | No | 14,549.68 | 14,549.68 | 355.42 | 1,278.04 | 8.78% | 1 May 2026 | - | N/A | No |
| Subtotal of promised projects | -- | 109,455.18 | 108,841.55 | 3,479.13 | 12,276.66 | -- | -- | - | -- | -- |
| Use of over-raised funds | ||||||||||
| N/A | ||||||||||
| Total | -- | 109,455.18 | 108,841.55 | 3,479.13 | 12,276.66 | -- | -- | - | -- | -- |
| Explain the circumstances and reasons for failing to achieve the planned progress and expected returns by item (including the reason for selecting | On 18 June 2024, the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th Supervisory Committee, reviewing and passing the Proposal on Extending the R&D Centre Construction Project Time. According to the construction status and implementation progress of the raised funds investment project, and in light of the demand for products in the downstream market, the relevant R&D projects planned for the Company's R&D centre are currently progressing steadily and the purchase of relevant R&D equipment and R&D-related software is under way in succession. However, as some experimental equipment needs to be customised and the R&D equipment is characterised by small batches and multiple varieties, not all equipment has been procured, installed or commissioned adequately. In view of the above reasons, the Company agreed to extend the construction period of the raised funds investment project "R&D centre construction project" by two years, that is, to extend the time for the raised funds investment project to reach the intended status of use to May 2026. | |||||||||
| “N/A” for “Meeting the expected returns or not”) | |
| Particulars about significant change to project feasibility | No in the Reporting Period |
| Amount, purpose and use progress of over-raised funds | N/A |
| Change of implementation location of raised funds investment projects | N/A |
| Adjustments to the way of implementation of raised funds investment projects | Applicable |
| Occurred during the Reporting Period | |
| On 18 June 2024, the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th Supervisory Committee, reviewing and passing the Proposal on Adding Implementation Entities and Special Accounts for Raised Funds to Some Raised Funds Investment Projects and agreed to add FSL Chanchang Lighting Co., Ltd. (hereinafter referred to as "Chanchang Company"), a wholly-owned subsidiary of the Company, as one of the implementation entities for the raised funds investment project "FSL's automation and digitalisation project". In consequence, the implementation entities of the raised funds investment project changed from the Company to the Company and Chanchang Company. The adjustment did not involve any change to the amount or purpose of the raised funds. | |
| Advance investments in promised projects funded with raised funds and subsequent swaps | Applicable |
| On 16 January 2024, the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the 9th Supervisory Committee, reviewing and passing the Proposal on Using Raised Funds to Replace Self-raised Funds for Pre-invested Capital Projects and Paid Issuance Expenses and agreed based on the actual situation of the Company to use the raised funds to replace self-raised funds of RMB87,975,313.46 used for pre-invested capital projects. Specifically, self-raised funds of RMB2,603,975.16 for paid issuance expenses would be replaced. By January 2024, the Company had completed the swap of all the self-pooled funds. | |
| Use of idle raised funds for temporarily supplementing the working capital | N/A |
| Surplus amount of raised funds upon project implementation and the reasons | N/A |
| Purpose and whereabouts of unused raised funds | As of 30 June 2024, the total amount of raised funds unused by the Company was RMB967,713,600. Specifically, the balance of bank deposits deposited in the special account for raised funds was RMB368,713,600, and the amount of idle raised funds utilised for cash management and not yet due for redemption was RMB599 million. The raised funds unused by the Company would be put into use according to the subsequent progress of the raised funds investment projects. |
| Problems or other issues arising in the use and disclosure of raised funds | On 16 January 2024, the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of the 9th Supervisory Committee, reviewing and passing the Proposal on Using Raised Funds to Provide Subsidiaries with Loans for Implementing Raised Funds Investment Projects. Given that the implementation of the raised funds investment project "FSL Hainan Industrial Park I" is organised by Fozhao (Hainan) Technology Co., Ltd. (hereinafter referred to as "Hainan Technology"), a wholly-owned subsidiary of the Company, to guarantee the successful implementation of the raised funds investment project, the Board of Directors agreed that the Company might use raised funds to provide an interest-free loan for Hainan Technology, with the total loan amount not exceeding RMB252,529,100 and a loan term of three years. |
(3) Re-purposed Raised Funds
□ Applicable ? Not applicable
No such cases in the Reporting Period.VII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Sale of Major Equity Investments
□ Applicable ? Not applicable
VIII Major Subsidiaries? Applicable □ Not applicableMajor fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on theCompany’s net profit:
Unit: RMB
| Name | Relationship with the Company | Principal activity | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Foshan NationStar | Subsidiary | Manufacturing | 618,477,169.00 | 6,457,769,957.80 | 3,825,359,009.05 | 1,853,708,942.97 | 52,118,606.78 | 56,242,432.00 |
| Name | Relationship with the Company | Principal activity | Registered capital | Total assets | Net assets | Operating revenue | Operating profit | Net profit |
| Optoelectronics Co., Ltd. | ||||||||
| Nanning Liaowang Auto Lamp Co., Ltd. | Subsidiary | Manufacturing | 35,055,700.00 | 2,521,919,065.89 | 947,530,076.32 | 835,320,128.96 | 28,936,829.29 | 28,661,214.92 |
| FSL Zhida Electric Technology Co., Ltd. | Subsidiary | Manufacturing | 38,150,000.00 | 202,961,671.83 | 94,198,468.73 | 114,780,281.05 | 11,507,699.77 | 9,873,512.27 |
| FSL Chanchang Optoelectronics Co., Ltd. | Subsidiary | Manufacturing | 72,782,944.00 | 859,535,100.78 | 350,844,126.12 | 502,704,202.93 | 47,008,722.42 | 39,756,031.83 |
Subsidiaries obtained or disposed in the Reporting Period:
? Applicable □ Not applicable
| Name | How the subsidiary was obtained or disposed of in the Reporting Period | Impact on overall operations and performance |
| Fozhao Huaguang (Maoming) Technology Co., Ltd. | Newly established | No significant impact on the Company’s production and performance |
| Gaozhou NationStar Lighting Technology Co., Ltd. | Newly established | No significant impact on the Company’s production and performance |
Information about major majority- and minority-owned subsidiaries:
—In a major asset restructuring in February 2022, the Company acquired a 21.32% interest in Foshan NationStarOptoelectronics Co., Ltd. (NationStar) from Rising Holdings and its acting-in-concert party. Upon the conclusionof the transaction, the Company eventually holds a 21.48% interest in NationStar, and NationStar has become amajority-owned subsidiary of the Company. The Company has included NationStar in its consolidated financialstatements since Q1 2022.—Nanning Liaowang Auto Lamp Co., Ltd. signed an equity agreement with its existing shareholders in July 2021,and acquired Nanning Liaowang through equity acquisition and capital increase and share expansion. Upon theconclusion of the transaction, the Company eventually holds a 53.79% interest in Nanning Liaowang, andNanning Liaowang has become a majority-owned subsidiary of the Company. The Company has includedNanning Liaowang in its consolidated financial statements from the date when the Company obtained actualcontrol of it.—FSL Zhida Electric Technology Co., Ltd. (FSL Zhida) was incorporated by the Company, Foshan ZhibidaEnterprise Management Co., Ltd. and Dongguan Baida Semiconductor Material Co., Ltd. on a joint investmentbasis. FSL Zhida obtained its business license on 21 October 2016. FSL Zhida changed its registered capital onthe basis of paid-in-capital on 16 January 2023. Upon the completion of the change, the Company holds a stake of
66.84% in it. The Company has included FSL Zhida in its consolidated financial statements since the date of FSLZhida’s incorporation.—FSL Chanchang Optoelectronics Co., Ltd. (renamed on 19 June 2018 from “Foshan Chanchang ElectricAppliances (Gaoming) Co., Ltd.”), which is a Sino-foreign joint venture invested and established by the Companyand Prosperity Lamps and Components Ltd, had obtained license for business corporation on 23 August 2005through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District, Foshan withdocument “MWJMY Zi [2005] No. 79”. The Company holds 70% equities of the said company; therefore the saidsubsidiary was included into the scope of the consolidated financial statements since the date of foundation. On 23August 2016, the Company and Prosperity Lamps and Components Ltd signed the equity transfer agreement. TheCompany purchased 30% equity of Foshan Chanchang Electric Appliances (Gaoming) Co., Ltd. held byProsperity Lamps and Components Ltd. After the purchasing, the Company held 100% equity of FSL ChanchangOptoelectronics Co., Ltd.
IX Structured Bodies Controlled by the Company
□ Applicable ? Not applicable
X Risks Facing the Company and Countermeasures
1. Risks of macro economic fluctuations and fiercer market competition
At present, economic uncertainties remain at home and abroad. If economic growth continues to slow down, itmay have an adverse impact on the development of the industry. Meanwhile, the lighting industry is a fullycompetitive industry. And as market demand slows down in growth, the Company could be facing fiercercompetition.Countermeasures: The Company will adhere to the set strategies, spend greater effort in developing new products,constantly refine the business portfolio, and actively explore segment markets such as intelligent lighting, healthylighting, ocean lighting, animal and plant lighting. It will also accelerate the introduction of new manufacturingprocesses, technologies and products to the market for new competitive edges. At the same time, by optimizingmarketing network and strengthening the business focus and expansion on domestic and foreign major customers,the Company will improve service quality, strengthen internal management, and increase core competitivecapacity constantly.
2. Risk of raw material price fluctuations
The main raw materials of the Company and its subsidiaries include chips, lamp beads, electronic components,aluminum substrates, plastic parts, metal materials, etc., and the price fluctuations of main raw materials will havean impact on the Company's production costs. If the price of raw materials continues to rise in the future, it mayadversely affect the Company's production and operation.Countermeasures: The Company will pay attention to market dynamics, collect information, analyze and pre-judge supply of main raw materials and price trends, so as to make excellent sourcing plans. By enhancingnegotiation, refining suppliers, perfecting supply chain management, and promoting alternative materials, theCompany is able to decrease procurement costs.
3. Risk of exchange rate fluctuations
The overseas sales of the Company exceed 20%, which are mainly settled in USD. If RMB experiencessignificant appreciation, the price competitiveness of overseas sales could be undermined and exchange lossesmay increase, which will produce adverse impacts on the Company’s net profit.Countermeasures: By keeping abreast of and analyzing exchange rate policies and fluctuation trend of settlementcurrencies in time, intensifying settlement currency management, ,and carrying out foreign exchange hedgingbusiness when the timing is right, the Company can relatively lock in exchange rates and minimize the risksbrought by exchange rate fluctuations.
4. Risk associated with the recoverability of accounts receivable
Receivables grow along with the Company's business. Customers who fail to repay loans timely or becomeinsolvent, due to changes in macroeconomic trends, market environments, and their business, will place theCompany at the risk of non-performing receivables.Countermeasures: In order to reduce the receivable collection risk, the Company can constantly optimize thereceivable risk management system, categorize and manage customers, regularly assess customers' credit profiles,and enhance customer risk assessment. Meanwhile, it can reinforce contract approval and management, double itseffort to collect receivables, and incorporate the collection of receivables into the performance assessment systemfor business departments.XI Implementation of the “Quality and Earnings Dual Improvement” Action PlanIndicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.
□ Yes ? No
Part IV Corporate Governance
I Annual and Extraordinary General Meeting Convened during the Reporting Period
1. General Meeting Convened during the Reporting Period
| Meeting | Type | Investor participation ratio | Convened date | Disclosure date | Resolutions of the meeting |
| The First Extraordinary General Meeting of 2024 | Extraordinary General Meeting | 41.42% | 26 February 2024 | 27 February 2024 | Resolutions of the First Extraordinary General Meeting of 2024 |
| The 2023 Annual General Meeting | Annual General Meeting | 41.16% | 14 May 2024 | 15 May 2024 | Resolutions of the 2023 Annual General Meeting |
2. Extraordinary General Meetings Convened at the Request of Preference Shareholders with ResumedVoting Rights
□ Applicable ? Not applicable
II Change of Directors, Supervisors and Senior Management? Applicable □ Not applicable
| Name | Office title | Type | Date | Reason |
| Wan Shan | Chairman of the Board | Elected | 26 February 2024 | Elected |
| Zhang Xuequan | Director | Elected | 26 February 2024 | Elected |
| General Manager | Appointed | 21 December 2023 | Appointed as General Manager | |
| Chen Mingjie | Director | Elected | 26 February 2024 | Elected |
| Zhang Yong | Executive Deputy General Managerv | Appointed | 5 February 2024 | Appointed as Executive Deputy General Managerv |
| Wu Shenghui | Chairman of the Board | Left | 23 February 2024 | Job transfer |
| Wei Bin | Deputy General Manager | Left | 19 January 2024 | Job transfer |
| Huang Zhiyong | Director | Left | 5 February 2024 | Job transfer |
| Chen Xinjie | Supervisor, Chairman of the Supervisory Committee | Elected | 14 May 2024 | Elected |
| Li Zehua | Director | Elected | 14 May 2024 | Elected |
| Zeng Xiaojing | Senior management | Engaged | 14 May 2024 | Engaged as Deputy General Manager |
III Interim Dividend Plan
□ Applicable ? Not applicable
The Company has no interim dividend plan, either in the form of cash or stock.
IV Equity Incentive Plans, Employee Stock Ownership Plans or Other Incentive Measuresfor Employees? Applicable □ Not applicable
1. Equity incentives
On 12 June 2023, the 2023 Restricted Share Incentive Plan (Draft), together with other relevant proposals, wereapproved at the 44
th Meeting of the Ninth Board of Directors and the 22
ndMeeting of the Ninth SupervisoryCommittee. As such, the Company intended to grant no more than 13,000,000 restricted shares to 262 awardees.To be specific, there were 11.7 million shares for the first grant, accounting for 90.00% of the total grant underthe incentive plan; and there were 1.3 million reserved shares, accounting for 10.00% of the total grant underthe incentive plan. The restricted shares were A-stock ordinary shares repurchased by the Company. And thegrant price for the first grant was RMB3.81/share. This equity incentive plan is subject to approval by the State-owned Assets Supervision and Administration Commission of Guangdong Province and a general meeting ofshareholders of the Company. For further information, see the 2023 Restricted Share Incentive Plan (Draft) andIts Summary and other relevant proposals that have been disclosed on http://www.cninfo.com.cn/ dated 13 June2023.
2. Implementation of Employee Stock Ownership Plans
□ Applicable ? Not applicable
3. Other Incentive Measures for Employees
□ Applicable ? Not applicable
Part V Environmental and Social ResponsibilityI Major Environmental IssuesIndicate by tick mark whether the Company or any of its subsidiaries is identified as a major polluter by theenvironmental protection authorities.? Yes □ NoEnvironmental policies and standards:
During production and operations, the Company conscientiously implemented guidelines and policies forenvironmental protection at all levels and strictly observed relevant laws and regulations for environmentalprotection, such as Law of the People's Republic of China on Environmental Protection, Law of the People'sRepublic of China on Prevention and Control of Air Pollution, Law of the People's Republic of China onPrevention and Control of Water Pollution, Law of the People's Republic of China on Prevention and Control ofEnvironmental Pollution by Solid Waste, and Law of the People's Republic of China on Prevention and Controlof Noise Pollution. Meanwhile, it has put in place facilities for pollution prevention and control, and ensures thestable operation of facilities. Additionally, the Company regularly commissions third parties to carry outmonitoring work in accordance with the requirements of the Environmental Monitoring Management Measuresto ensure that all pollutants are discharged in accordance with the standards.Environment-related administrative permits:
| Name of the Company or its subsidiary | Administrative permit granted | Permit No. | Date of grant | Effective period |
| Foshan Electrical and Lighting Co., Ltd. | Pollutant Discharge Registration for Stationary Source of Pollutant | 91440000190352575W001W | 17 March 2020 | 5 years |
| Foshan Electrical and Lighting Co., Ltd. Gaoming Branch | Pollutant Discharge Permit | 91440600784850061B001U | 1 June 2023 | 5 years |
| Foshan Taimei Times Lamp Co., Ltd. | Pollutant Discharge Permit | 91440600782035581D001Q | 17 November 2022 | 5 years |
| FSL Chanchang Lighting Co., Ltd. | Pollutant Discharge Registration for Stationary Source of Pollutant | 91440600779203775W | 18 March 2020 | 5 years |
| FSL Zhida Electric Technology Co., Ltd. | Pollutant Discharge Registration for Stationary Source of Pollutant | 91440605MA4UWNPY98001W | 1 September 2021 | 5 years |
| Foshan Haolaite Lighting Co., Ltd. | Pollutant Discharge Registration for Stationary Source of | 91440604MA552Q66XM001W | 14 January 2021 | 5 years |
| Name of the Company or its subsidiary | Administrative permit granted | Permit No. | Date of grant | Effective period |
| Pollutant | ||||
| Foshan Electrical and Lighting Co., Ltd. Gaoming Lamp Branch | Pollutant Discharge Registration for Stationary Source of Pollutant | 914406005666224665001Y | 20 August 2021 | 5 years |
| Nanning Liaowang Auto Lamp Co., Ltd. | Pollutant Discharge Registration for Stationary Source of Pollutant | 914501001983431121001Y | 17 March 2020 | 5 years |
| Liuzhou Guige Lighting Technology Co., Ltd. | Pollutant Discharge Permit | 914502000836092085001V | 18 July 2023 | 5 years |
| Chongqing Guinuo Lighting Technology Co., Ltd. | Pollutant Discharge Permit | 9150000035128048Y001Q | 25 September 2022 | 5 years |
| Qingdao Guige Lighting Technology Co., Ltd. | Pollutant Discharge Registration for Stationary Source of Pollutant | 913702820530892807001W | 26 November 2021 | 5 years |
| Foshan NationStar Optoelectronics Co., Ltd. | Pollutant Discharge Permit | 914406001935264036001X | 24 June 2024 | 5 years |
| Foshan NationStar Semiconductor Co., Ltd. | Pollutant Discharge Permit | 91440600570160743B001Q | 12 January 2024 | 5 years |
| Guangdong Fenghua Semiconductor Technology Co., Ltd. | Pollutant Discharge Registration for Stationary Source of Pollutant | 91440000725451562J001Y | 27 February 2020 | 5 years |
Discharge standards and pollutants discharged in production and operation activities:
| Name of the Company or its subsidiary | Type of Major and Characteristic Pollutants | Name of Major and Characteristic Pollutants | Discharge Method | Outlet Quantity | Outlet Distribution | Discharge Concentration /intensity | Pollutant Discharge Standards | Total Actual Discharge | Total Discharge Approved | Excessive Discharge |
| Foshan Electrical and Lighting Co., Ltd. Gaoming Branch | Exhaust gas | SO2 | Discharged in an organized manner | 1 | In the plant | SO2: 280 mg/m3 | Emission Standards for Air Pollutants in Glass Industry (DB44/2159-2019) | 0.48437 | SO2: 40.597 t/y | No |
| Foshan Electrical and Lighting Co., Ltd. Gaoming Branch | Exhaust gas | Oxynitride | Discharged in an organized manner | 1 | In the plant | Oxynitride: 550mg/m3 | Emission Standards for Air Pollutants in Glass Industry (DB44/2159-2019) | 19.6186 | Oxynitride: 149.839 t/y | No |
| Liuzhou Guige Lighting Technology Co., Ltd. | Exhaust gas | Xylene, SO2, nitrogen oxide, benzene, toluene, particulate matter, volatile organic matter | Discharged in an organized manner | 1 | In the plant | Discharged upon reaching applicable standards | Integrated Emission Standards of Air Pollutants (GB16297-1996) | / | / | No |
| Name of the Company or its subsidiary | Type of Major and Characteristic Pollutants | Name of Major and Characteristic Pollutants | Discharge Method | Outlet Quantity | Outlet Distribution | Discharge Concentration /intensity | Pollutant Discharge Standards | Total Actual Discharge | Total Discharge Approved | Excessive Discharge |
| Liuzhou Guige Lighting Technology Co., Ltd. | Exhaust gas | Volatile organic compounds | Discharged in an un-organized manner | 2 | In the plant | Discharged upon reaching applicable standards | Integrated Emission Standards of Air Pollutants (GB16297-1996) | / | / | No |
| Foshan NationStar Optoelectronics Co., Ltd. | Wastewater | COD, and ammonia nitrogen | Discharged by standards after treatment | 1 | Wastewater treatment station | COD:21mg/L Ammonia:0.035mg/L | GB39731-2020 | COD:1.43t/a Ammonia:0.00238t/a | / | No |
| Foshan NationStar Optoelectronics Co., Ltd. | Exhaust gas | Total VOCs, non-methane total hydrocarbons | Discharged by standards after treatment | 3 | Roof of the Building West and Building East in south area, roof of Building A in north area | Total VOCs:0.22mg/m? Non-methane total hydrocarbons:7.395mg/m? | DB44/814-2010DB 44/2367-2022 | Total VOCs:0.19t/a Non-methane Hydrocarbons:6.37 t/a | / | No |
| Foshan NationStar Optoelectronics Co., Ltd. | Noise | Noise | Discharged by standards | / | / | Daytime 57 Nighttime 49 Unit: dB(A) | GB12348-2008 | / | / | No |
| Foshan NationStar Semiconductor Technology Co., Ltd. | Wastewater | COD, and ammonia nitrogen | Discharged by standards after treatment | 1 | Wastewater treatment station | COD：43.12mg/L Ammonia nitrogen: 2.569mg/L | DB44/26-2001 | COD：2.199751t/a Ammonia nitrogen :0.054532t/a | COD：9.771t/a Ammonia nitrogen :1.221t/a | No |
| Foshan NationStar Semiconductor Technology Co., Ltd. | Exhaust gas | Total VOCs | Discharged by standards after treatment | 7 | Roof of a building | Total VOCs：1.421mg/m? | GB14554-93DB44/27-2001DB44/2367-2022 | Total VOCs：1.0736t/a | Total VOCs：6.757t/a | No |
| Foshan NationStar Semiconductor Technology Co., Ltd. | Noise | Noise | Discharged by standards | / | / | Daytime 59 Nighttime 49 Unit: dB(A) | GB12348-2008 | / | / | No |
| Guangdong Fenghua Semiconductor Technology Co., Ltd. | Wastewater | COD | Discharged by standards after treatment | 1 | The main drain is located next to the north duty room | COD：19mg/L | DB44/26—2001 | COD:2.03t/a | / | No |
| Guangdong Fenghua | Exhaust gas | Particulate matter, | Discharged by | 7 | Roof of the plant I | Particulate Matter: | DB44/27-2001 | Particulate Matter: | / | No |
| Name of the Company or its subsidiary | Type of Major and Characteristic Pollutants | Name of Major and Characteristic Pollutants | Discharge Method | Outlet Quantity | Outlet Distribution | Discharge Concentration /intensity | Pollutant Discharge Standards | Total Actual Discharge | Total Discharge Approved | Excessive Discharge |
| Semiconductor Technology Co., Ltd. | total VOCs | standards after treatment | 4.3mg/m, total VOCs:0.46mg/m? | 0.089t/a Total VOCs:0.012t/a | ||||||
| Guangdong Fenghua Semiconductor Technology Co., Ltd. | Noise | Noise | Discharged by standards | / | / | Daytime 48 Nighttime 45 Unit: dB(A) | GB12348-2008 | / | / | No |
Pollutant treatment:
Emission and treatment of the Company's main pollutants:
(1) Exhaust gas:
FSL: The flue gas of glass kilns and the high-temperature melting of glass raw materials generated airpollutants, such as sulphur dioxide, nitric oxide, and smoke, during the manufacturing of semi-products, such asglass bulb shells and lamp tubes. Such flue gas was treated with semi-dry desulfurization, electric precipitation,and SCR denitration. Upon treatment, the standard limits for glass kilns in the Emission Standards for AirPollutants in Glass Industry (DB44/2159-2019): Table 1 Emission Limits of Air Pollutants were met.Nanning Liaowang: Exhaust gases like volatile organic compounds (VOCs), were mainly generated during themanufacturing of auto luminary, which were treated through Regenerative Thermal Oxidizer (RTO) catalyticcombustion and UV activated carbon adsorption. Upon treatment, the discharge limits and requirementsstipulated in Comprehensive Discharge Standards for Air Pollution (GB16297-1996) were met.NationStar Optoelectronics: The manufacturing of LED mainly caused pollutants such as VOCs, NMHC, andparticulate matters, which was treated through three grades of dry filtration + secondary activated carbonadsorption and three grades of dry filtration + activated carbon adsorption concentration + catalytic combustion.Upon treatment, the Emission Limits of Air Pollutants (DB44/27-2001), the Emission Standard of OdorPollutants (GB14554-93), and the Integrated Emission Standard of Volatile Organic Compounds for StationaryPollution Source (DB44/ 2367—2022) were met.NationStar Semiconductor: a) Pollutants, such as ammonia gas, was mainly generated during themanufacturing of LED epitaxial wafers. Upon treatment through ammonia recycling, the Emission Standardsfor Odour Pollutants (GB14554-93): Table 2 was met. b) The manufacturing of LED chips mainly causedpollutants such as sulfuric acid mist, hydrochloric acid mist, chlorine, hydrogen chloride, fluorides, andparticulate matters. Upon treatment through Scrubber combustion-based washing and spraying equipment and
scrubbing towers for acid and alkali exhaust gas, the Emission Limits of Air Pollutants (DB44/27-2001) ofGuangdong Province: Standard Class II for Time Period II were met. c) Wastes, such as acetone, isopropylalcohol, esters, ethers, and amines, were mainly caused during the manufacturing of LED chips. Upon treatedthrough water spray + dehumidification and fog removal + secondary activated carbon adsorption, the dischargelimits and requirements stipulated in Table 1 of the Integrated Emission Standard of Volatile OrganicCompounds for Stationary Pollution Source (DB44/ 2367—2022) were met.Fenghua Semiconductor: The sealing test of electronic components mainly generated pollutants, such as dustand particulate matters, organic exhaust gas, sulfuric acid mist, and hydrogen chloride mist. Through filter vatsand activated carbon adsorption, and spraying alkali liquor for neutralization, the Emission Limits of AirPollutants (DB44/27-2001) of Guangdong Province: Standard Class II for Time Period II were met.
(2) Wastewater:
FSL: The Company's wastewater mainly came from offices and living. Domestic wastewater was treated with atertiary septic tank. Oily sewage from the canteen was pre-treated with an oil and residue separation system, andthen transferred to wastewater treatment stations for centralized treatment. Upon treatment, the discharge limitsand requirements stipulated in the Discharge Limits of Water Pollutants (DB44/26-2001) of GuangdongProvince: Standard Class III for Time Period II were met.Nanning Liaowang: The manufacturing of auto luminary did not generate industrial wastewater and mainlycaused wastes, such as domestic wastewater. Upon treatment through physicochemical and biochemical, thedischarge limits and requirements stipulated in the Level 1 standards of the Integrated Wastewater DischargeStandard (GB 8978-1996) were met.NationStar Optoelectronics: Wastes, such as COD and ammonia nitrogen, was mainly generated during themanufacturing of LED products. Upon treatment through coagulation, sedimentation, and frame filtering, thedischarge limits and requirements stipulated in the Discharge Standard of Water Pollutants for ElectronicIndustry (GB39731-2020) and the Discharge Limits of Water Pollutants (DB44/26-2001) were met.NationStar Semiconductor: The manufacturing of LED chips mainly generated wastes, such as COD,ammonia nitrogen, SS, and fluorides. Upon treatment through physicochemical and biochemical, the indirectdischarge limits and requirements stipulated in the Table 1 of the Discharge Standard of Water Pollutants forElectronic Industry (DB39731-2020) were met.
Fenghua Semiconductor: Pollutants, such as COD, ammonia nitrogen, and heavy metals, were mainlygenerated during the sealing test of electronic components. Through physicochemical and biochemicaltreatment, MBR films, and reverse osmosis (RO) membranes, the discharge limits and requirements stipulatedin the Discharge Limits of Water Pollutants (DB44/26-2001) of Guangdong Province: Standard Class III forTime Period II.
(3) Noises:
FSL: Noises mainly came from the operation of production machinery. Specifically, water pumps and fans thatwould cause loud noises were placed in a soundproof room or covered with a noise enclosure. Hush pipes wereattached to exhaust gas exhaust pipes that would cause loud noises.Nanning Liaowang: Noises mainly came from the operation of production machinery. Specifically, basicdamping, soundproof rooms, and soundproof cottons were applied to injection moulding and friction weldingthat would cause loud noises. The Emission Standard for Noise of Industrial Enterprises at Boundary(GB12348-2008): Standard Class III was met.NationStar Optoelectronics: Noises mainly included mechanical and aerodynamic noises. Specifically,production and process equipment were placed in a closed workshop. Soundproof rooms, vibration dampers,and noise enclosures were adopted for Equipment, such as air compressors, water pumps, and fans, that wouldcause loud noises.NationStar Semiconductor: Noises mainly included mechanical and aerodynamic noises. Production andprocess equipment was placed in a closed workshop. Soundproof rooms, vibration dampers, and noiseenclosures were adopted for equipment, such as air compressors, water pumps, and fans, that would cause loudnoises.Fenghua Semiconductor: Noises mainly came from the operation of production machinery. Specifically, waterpumps and fans that would cause loud noises were placed in a soundproof room or covered with a noiseenclosure.Construction and operation of pollution prevention and control facilities:
| No. | Facility | Total Investment (RMB10,000) | Date of Construction (MM/YYYY) | Date of Operation (MM/YYYY) | Operator | Processes | Design processing capacity | Actual capacity | Operating hours |
| 1 | Exhaust gas treatment facilities | 500 | November 2015 | 2015 December | Gaoming Branch | Semi-dry flue gas desulphurization (SDFGD) + electric precipitation + SCR denitration | 60000m3/h | 60000m3/h | 24h/d |
| No. | Facility | Total Investment (RMB10,000) | Date of Construction (MM/YYYY) | Date of Operation (MM/YYYY) | Operator | Processes | Design processing capacity | Actual capacity | Operating hours |
| 2 | Exhaust gas treatment facilities | 30 | September 2019 | May 2020 | Taimei Company | Cyclone plate tower + activated carbon adsorption | 12000 m3/h | 12000 m3/h | 12h/d |
| 3 | Wastewater treatment facilities | 130 | September 2019 | May 2020 | Taimei Company | Conditioning + coagulation + sedimentation + air flotation + filtration | 120m?/d | 120m?/d | 12h/d |
| 4 | Exhaust gas treatment facilities | 20 | August 2014 | August 2015 | Chanchang Company | activated carbon adsorption | 8000m3/h | 8000m3/h | 12h/d |
| 5 | Exhaust gas treatment facilities | 48 | September 2020 | October 2021 | Zhida Company | UV photocatalytic oxidation + activated carbon adsorption | 35000m3/h | 35000m3/h | 12h/d |
| 6 | Photo-Oxygen-Activated Carbon All-in-One Machine | 28 | December 2021 | 2022 October | Nanning Liaowang | Activated carbon adsorption + UV photo-oxidation catalysis | 70000㎡/h | 70000㎡/h | 24h/d |
| 7 | VOCs organic waste gas RTO (regenerative thermal incinerator) oxidizer | 500 | December 2016 | 2017 March | Liuzhou Lighting | Activated carbon adsorption + incineration | 10,000 cubic meters per hour | 9500 cubic meters per hour | 24h/d |
| 8 | VOC organic waste gas treatment facility | 28.11 | June 2018 | February 2019 | Qingdao Lighting | activated carbon adsorption | 32000㎡/h | 32000㎡/h | 8h/d |
| 9 | RTO (Regenerative Thermal Incinerator) | 500 | October 2017 | May 2018 | Chongqing Guinuo | Zeolite adsorption+desorption+RTO catalytic combustion | 75000㎡/h | 75000㎡/h | 24h/d |
| 10 | UV photocatalysis | 200 | October 2017 | May 2018 | Chongqing Guinuo | Zeolite Adsorption + Dedusting + UV Photocatalysis | 70000㎡/h | 70000㎡/h | 24h/d |
| 11 | Wastewater treatment station | 39.5 | April 2017 | May 2017 | NationStar | Coagulation and sedimentation | 600t/d | 227.1t/d | 24h/d |
| 12 | Method for treating the exhaust gases of the plant in the west | 259 | May 2023 | June 2023 | NationStar | Dry filtration + secondary activated carbon adsorption | 80000m?/h | 54330m?/h | 24h/d |
| 13 | Method for treating the exhaust gases of the plant in the east | May 2023 | June 2023 | NationStar | Dry filtration + secondary activated carbon adsorption | 110000m?/h | 65411m?/h | 24h/d | |
| 14 | Exhaust gas control facilities in north area | 93 | March 2024 | April 2024 | Headquarters of NationStar Optoelectronics | Dry filtration + activated carbon adsorption concentration + catalytic combustion | 60000m?/h | 60000m?/h | 24h/d |
| 15 | Wastewater treatment station | 356.7 | September 2012 | December 2012 | NATIONSTAR Semiconductor | Physiochemical and biochemical processing | 1080t/d | 287.83t/d | 24h/d |
| 16 | Method for treating MOCVD | 467.9 | July 2023 | November 2023 | NATIONSTAR Semiconducto | Ammonia recovery unit | ≥2000Nm3/h | 6546m?/h | 24h/d |
| No. | Facility | Total Investment (RMB10,000) | Date of Construction (MM/YYYY) | Date of Operation (MM/YYYY) | Operator | Processes | Design processing capacity | Actual capacity | Operating hours |
| exhaust gas | r | ||||||||
| 17 | Method for treating acid and alkali exhaust gases | 348.405 | September 2012 | November 2012 | NATIONSTAR Semiconductor | Scrubber combustion water washing spray device + acid and alkali waste gas scrubber device | 45000m?/h | 16607m?/h | 24h/d |
| 18 | Method for treating acid and alkali exhaust gases | 348.405 | September 2012 | November 2012 | NATIONSTAR Semiconductor | Scrubber combustion water washing spray device + acid and alkali waste gas scrubber device | 40000m?/h | 13166m?/h | 24h/d |
| 19 | Method for treating acid and alkali exhaust gases | 106.2 | July 2023 | November 2023 | NATIONSTAR Semiconductor | Scrubber combustion water washing spray device + acid and alkali waste gas scrubber device | 40000m?/h | 7366 m?/h | 24h/d |
| 20 | Method for treating organic exhaust gas | 119.87 | July 2023 | November 2023 | NATIONSTAR Semiconductor | Water spray + dehumidification and fog removal + secondary activated carbon adsorption | 20000m?/h | 4824 m?/h | 24h/d |
| 21 | Method for treating organic exhaust gas | 362.07 | July 2023 | November 2023 | NATIONSTAR Semiconductor | Water spray + dehumidification and fog removal + secondary activated carbon adsorption | 40000m?/h | 24410m?/h | 24h/d |
| 22 | Method for treating organic exhaust gas | 362.07 | July 2023 | November 2023 | NATIONSTAR Semiconductor | Water spray + dehumidification and fog removal + secondary activated carbon adsorption | 20000m?/h | 10516m?/h | 24h/d |
| 23 | Wastewater treatment station | 251 | March 2016 | October 2016 | Fenghua Semiconductor | Physicochemical, biochemical, reverse osmosis RO membrane processing technology | 140t/d | 70t/d | 24h/d |
| 24 | Exhaust gas control facilities | 20 | August 2005 | January 2006 | Fenghua Semiconductor | Filter cartridge dust removal + activated carbon adsorption | 15000m?/h | 7728m?/h | 24h/d |
| 25 | Exhaust gas control facilities | 20 | August 2005 | January 2006 | Fenghua Semiconductor | Filter cartridge dust removal + activated carbon adsorption | 15000m?/h | 7728m?/h | 24h/d |
| 26 | Exhaust gas control facilities | 20 | August 2005 | January 2006 | Fenghua Semiconductor | Filter cartridge dust removal + activated carbon adsorption | 15000m?/h | 7728m?/h | 24h/d |
| 27 | Exhaust gas control facilities | 20 | August 2005 | January 2006 | Fenghua Semiconductor | Filter cartridge dust removal + activated carbon adsorption | 15000m?/h | 7728m?/h | 24h/d |
| 28 | Exhaust gas control facilities | 19 | January 2006 | August 2006 | Fenghua Semiconductor | Lye spray | 11000m?/h | 9000m?/h | 24h/d |
| 29 | Exhaust gas control facilities | 19 | January 2006 | August 2006 | Fenghua Semiconductor | Lye spray | 11000m?/h | 9000m?/h | 24h/d |
| 30 | Exhaust gas control | 19 | January 2006 | August 2006 | Fenghua Semiconducto | Lye spray | 11000m?/h | 9000m?/h | 24h/d |
| No. | Facility | Total Investment (RMB10,000) | Date of Construction (MM/YYYY) | Date of Operation (MM/YYYY) | Operator | Processes | Design processing capacity | Actual capacity | Operating hours |
| facilities | r |
Contingency plan for environmental emergencies:
The Company formulated the Contingency Plan for Environmental Emergencies of Foshan Electrical andLighting Co., Ltd. Gaoming Branch (Including Risk Assessment Report and Material Survey of EnvironmentalEmergencies in August 2017, had it reviewed by experts on 13 September 2017, and had it filed with the FoshanMunicipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-2017-094-L) on 24October 2017. This document was revised in August 2020, reviewed by experts again on 7 September 2020, andfiled with the Foshan Municipal Ecology and Environment Bureau Gaoming Sub-bureau (Filing No.: 440608-2020-056-M) on 25 September 2020.In June 2018, Liuzhou Guige Lighting Technology Co., Ltd. completed the preparation of the Emergency Plan forEnvironmental Emergencies of Liuzhou Guige Lighting Technology Co., Ltd. (including the Risk AssessmentReport for Environmental Emergencies and the Investigation Report for Emergency Resources for EnvironmentalEmergencies), which was reviewed by experts and released, and filed with Liudong Branch of LiuzhouEnvironmental Protection Bureau on 29 August 2018 (No. 450203-2018-022-1). In August 2021, the EmergencyPlan for Environmental Emergencies of Liuzhou Guige Lighting Technology Co., Ltd. (including the RiskAssessment Report for Environmental Emergencies and the Investigation Report for Emergency Resources forEnvironmental Emergencies) was updated and compiled, passed the expert review and released, and on 27December 2021, the Emergency Plan was filed with the Ecological Environment Bureau of Liudong New Area,Liuzhou City (No. 450203-2021-0019-L). The Emergency Plan for Environmental Emergencies of Liuzhou GuigeLighting Technology Co., Ltd. (including the Risk Assessment Report for Environmental Emergencies and theInvestigation Report for Emergency Resources for Environmental Emergencies) was signed and issued on 30 May2024. On 24 June 2024, the Emergency Plan was filed with the Ecological Environment Bureau of Liudong NewArea, Liuzhou City (No. 450203-2024-1006-L).NationStar Optoelectronics revised the Contingency Plan for Environmental Emergencies of NationStarOptoelectronics (Including Risk Assessment Report and Material Survey of Environmental Emergencies) in 2023according to the requirements of the Management Methods for Environmental Emergencies, and had it filed withthe Foshan Municipal Ecology and Environment Bureau (Filing No.: 440604-2023-0040-L).
NationStar Semiconductor formulated the Contingency Plan for Environmental Emergencies of NationStarSemiconductor (Including Risk Assessment Report and Material Survey of Environmental Emergencies)according to the requirements of the Management Methods for Environmental Emergencies, and had it filed withthe Foshan Municipal Ecology and Environment Bureau (Filing No.: 440605-2023-0124-M) in 2023.Fenghua Semiconductor formulated the Contingency Plan for Environmental Emergencies of GuangdongFenghua Semiconductor Technology Co., Ltd. (including Risk Assessment Report and Material Survey ofEnvironmental Emergencies) according to the requirements of the Management Methods for EnvironmentalEmergencies, and had it filed with the Guangzhou Municipal Ecology and Environment Bureau (Filing No.:
440112-2022-032-L) on in 2022.Input in environmental governance and protection and the payment of environmental protection-related taxes:
During the Reporting Period, the input of the Company and its subsidiaries in the construction of environmentalprotection facilities, the development of environmental protection standards, the treatment of exhaust gas,wastewater, and waste residue, and routine detection totaled RMB5.5279 million, and their environmentalprotection-related taxes paid amounted to RMB45,800.Environmental self-monitoring plan:
Foshan Electrical and Lighting Co., Ltd. Gaoming Branch developed an environmental self-monitoring plan. Itentrusted a third-party environmental testing agency to perform the annual inspection of the exhaust outlet. Allthe inspection results were lower than the standard limits. Meanwhile, it accepted the annual supervision andmonitoring by local environmental protection departments. All the monitoring results were lower than thestandard limits.Liuzhou Guige Lighting Technology Co., Ltd. has put in place the Self-monitoring Plan of Liuzhou GuigeLighting Technology Co., Ltd. It entrusted a third-party, Guangxi Huaqiang Environmental Monitoring Co.,Ltd., to perform the annual inspection of the exhaust outlet. All the inspection results were lower than thestandard limits. Meanwhile, it accepted the annual supervision and monitoring by local environmentalprotection departments. All the monitoring results were lower than the standard limits.NationStar Optoelectronics, following the self-monitoring plan, entrusted a qualified third-party environmentaltesting agency to perform inspection of various pollutants every half a year. All the inspection results werelower than the standard limits. Meanwhile, it accepted the quarterly supervision and monitoring by localenvironmental protection departments. All the monitoring results were lower than the standard limits.
Foshan NationStar Semiconductor Technology Co., Ltd. abided by its self-monitoring plan. It entrusted aqualified third-party environmental testing agency to perform the inspection of the pollutants on a half-yearbasis. All the inspection results were lower than the standard limits. Meanwhile, it accepted the quarterlysupervision and monitoring by local environmental protection departments. All the monitoring results werelower than the standard limits.According to its self-monitoring plan, Guangdong Fenghua Semiconductor Technology Co., Ltd. entrusted aqualified third-party environmental testing agency to perform the inspection of the pollutants on a half-year basis.All the inspection results were lower than the standard limits. Meanwhile, it accepted the quarterly inspection bylocal environmental protection departments. All the monitoring results were lower than the standard limits.Administrative punishments received with respect to environmental issues in the Reporting Period:
| The Company/subsidiary | Reason for punishment | Incompliance | Punishment | Impact on the Company’s operations | Rectification |
| N/A | N/A | N/A | N/A | N/A | N/A |
Other environment-related information that should be disclosed:
None.Measures taken during the Reporting Period to reduce carbon emissions and the impact:
? Applicable □ Not applicableDuring the Reporting Period, the Company reduced electricity consumption under the same output value byselecting high-efficiency and energy-saving equipment. The Company insists on constantly publicizingenvironmental protection knowledge to employees, improving their awareness of environmental protection, andrealizing the sustainable development goal of harmonious coexistence between enterprises and the environmentthrough the joint efforts of all employees.Other relevant information:
None.II Social ResponsibilityThe Company places a high value on corporate social responsibility and commitment. Adhering to the "create thevalue of light" corporate mission, the Company vigorously performs its social responsibility and constantlyenhances its protection for the interests of stakeholders in order to create a healthy and beautiful life of light forcustomers, create and improve the space for personal development for employees and help them achieve the value
of life, and contribute to the sound and sustainable development of the society.
1. Protection of the rights and interests of our shareholders and creditors
We continuously improve our corporate governance structure, regulate our operation and enhance ourmanagement on information disclosure and investor relations. We treat all our investors fairly and justly, ensuretheir rights to know about, participate in and vote on the significant events of the Company, and safeguard thelegal rights and interests of all our shareholders, especially our minority shareholders.
2. Protection of the rights and interests of our employees
Considering employees the most valuable resource for our survival and development, we constantly improve ouremployment system, improve the compensation packages for our employees and attach importance to talentcultivation so as to provide opportunities and space for the sustainable development of our employees as well asrealize the common development of the employees and the Company. We also pay attention to the health of ouremployees, attach importance to production safety and labor protection, and improve the working and livingconditions for our employees so as to formulate harmonious and stable labor relations.
3. Protection of the rights and interests of our customers and consumers
We have been upholding the “Customer First” principle in our provision of quality products and services tocustomers. We operate honestly and disallow any unfair trade practice against commercial ethics, market rulesand the fair competition principle. We also improve our product quality and after-sales services and try to build awin-win relationship with our customers.
4. Protection of the rights and interests of our suppliers
We respect and protect the legal rights and interests of our suppliers, carefully protect their secret and proprietaryinformation, encourage and push them to continuously improve the quality of their products and services throughcreating an environment for open and fair competition among them so as to realize mutual benefits and mutualdevelopment of the suppliers and the Company.
5. Production Safety, Environmental Protection and Sustainable Development
The Company sees production safety, environmental protection and energy conservation as an important part ofits strategy of sustainable development. It implements accountability systems in relation environmental protectionand production safety in strict accordance with the applicable laws and regulations. In addition, it is ISO9001-(aquality management system), IATF16949-(a quality management system), ISO14001-(an environmentmanagement system), ISO45001-(a management system for occupational health and safety) and ISO50001-(an
energy management system) certified. In 2018, upon the review and publication by the Ministry of Industry andInformation Technology, the Company was certified as one of the second batch of National Demonstration Entityof Green Factory.
6. Public relations and welfare
The Company fully implements the social responsibility strategy. By carrying out a series of specific actionsand projects, it actively gives back to society and promotes sustainable development. During the ReportingPeriod, the Company took an active part in rural revitalisation, voluntary blood donations, volunteer services,employee care, health promotion, social welfare, and other fields. The cumulative amount of its donations andsupport exceeded RMB537,000. During the Reporting Period, the Company donated solar street lamps toQianfeng Town, Yuncheng District, Yunfu City for rural beautification and lighting. In its efforts to vigorouslypromote industrial assistance, it purchased assistance products worth more than RMB480,000 from theassistance recipients, which boosted the sales of local agricultural products. It also organised voluntary blooddonations for the spring of 2024, attracting 96 participants. Additionally, the Company raised RMB57,000 in its"Graciously Supporting Rural Revitalisation" charitable donation event. Moreover, it launched volunteeractivities of the Party Branch and the Labor Union, such as the "Lighting Project", tree planting, streetbeautification, and learning from Lei Feng.
Part VI Significant EventsI Commitments of the Company’s De Facto Controller, Shareholders, Related Parties andAcquirers, as well as the Company Itself and Other Entities Fulfilled in the ReportingPeriod or Ongoing at the Period-End
□ Applicable ? Not applicable
No such cases in the Reporting Period.II Occupation of the Company’s Capital by the Controlling Shareholder or any of ItsRelated Parties for Non-Operating Purposes
□ Applicable ? Not applicable
No such cases in the Reporting Period.
III Irregularities in the Provision of Guarantees
□ Applicable ? Not applicable
No such cases in the Reporting Period.IV Engagement and Disengagement of Independent AuditorAre the interim financial statements audited?
□Yes ? No
These interim financial statements are unaudited.V Explanations Given by the Board of Directors and the Supervisory Committee Regardingthe Independent Auditor's “Modified Opinion” on the Financial Statements of theReporting Period
□ Applicable ? Not applicable
VI Explanations Given by the Board of Directors Regarding the Independent Auditor's“Modified Opinion” on the Financial Statements of Last Year
□ Applicable ? Not applicable
VII Insolvency and Reorganization
□ Applicable ? Not applicable
No such cases in the Reporting Period.
VIII Legal Matters
Significant lawsuits and arbitrations
□ Applicable ? Not applicable
No such cases in the Reporting Period.
Other legal matters? Applicable □ Not applicable
| Basic information on lawsuit (arbitration) | Amount involved (RMB’0,000) | Whether there are accrued liabilities | Lawsuit (arbitration) progress | Lawsuit (arbitration) results and influences | Execution of lawsuit (arbitration) judgment | Date of disclosure | Disclosure index |
| 92 other litigation matters that did not meet litigation standards | 37,683.98 | No | 37 cases are at the trial stage, 27 are closed, 24 are in the implementation stage, 1 is in the performance stage and 3 are in the insolvency stage. | The closed cases have no significant influence on the Company | N/A | N/A | N/A |
IX Punishments and Rectifications
□ Applicable ? Not applicable
No such cases in the Reporting Period.X Credit Quality of the Company as well as its Controlling Shareholder and De FactoController? Applicable □ Not applicableIn the Reporting Period, the Company and its controlling shareholder and de facto controller were not involvedin any unsatisfied court judgments, large-amount overdue liabilities or the like.XI Major Related-Party Transactions
1. Continuing Related-Party Transactions
?Applicable □ Not applicable
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Purchase of materials | Market price | 226.41 | 226.41 | 0.07% | 1,600 | Not | Bank transfers or bank acceptance notes | 226.41 | 27 February 2024 | www.cninfo.com.cn |
| Shenzhen Yuepeng Construction Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 188.65 | 188.65 | 0.56% | Bank transfers or bank acceptance notes | 188.65 | ||||
| Zhuhai Dongjiang Environmental Technology Co, Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 27.13 | 27.13 | 0.12% | 300 | Not | Bank transfers or bank acceptance notes | 27.13 | 27 February 2024 | www.cninfo.com.cn |
| Foshan Fulong Envir | Under same actual controller | Purchasing products and | Receiving labor service | Market price | 7.05 | 7.05 | 0.03% | Bank transfers or bank accept | 7.05 |
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| onmental Technology Co., Ltd. | receiving labor service from related party | ance notes | |||||||||||
| Shenzhen Longgang Dongjiang Industrial Waste Treatment Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 1.44 | 1.44 | 0.01% | Bank transfers or bank acceptance notes | 1.44 | ||||
| Primatronix Nanho Technology Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Purchase of materials | Market price | 1.67 | 1.67 | 0.00% | Bank transfers or bank acceptance notes | 1.67 | ||||
| Zhuhai Doumen District Yongxingsheng Envir | Under same actual controller | Purchasing products and receiving labor service | Receiving labor service | Market price | 0.45 | 0.45 | 0.00% | Bank transfers or bank acceptance notes | 0.45 |
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| onmental Industry Waste Recovery and Comprehensive Treatment Co., Ltd. | from related party | ||||||||||||
| Jiangmen Dongjiang Environmental Technology Co, Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 0.22 | 0.22 | 0.00% | Bank transfers or bank acceptance notes | 0.22 | ||||
| Primatronix Nanho Technology Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 11.48 | 11.48 | 0.06% | Bank transfers or bank acceptance notes | 11.48 | ||||
| Guangzhou Shengfeng | Under same actual contro | Purchasing products | Receiving labor service | Market price | 136.26 | 136.26 | 0.60% | 1,200 | Not | Bank transfers or bank | 136.26 | 27 February 2024 | www.cninfo.com.cn |
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| Catering Management Service Co., Ltd. | ller | and receiving labor service from related party | acceptance notes | ||||||||||
| Guangdong Rising Commercial Development Co., Ltd. (formerly: Guangdong Tianxin Commercial Service Co., Ltd.) | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 20.94 | 20.94 | 0.09% | Bank transfers or bank acceptance notes | 20.94 | ||||
| Guangdong Great Wall Hotel Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 0.57 | 0.57 | 0.00% | Bank transfers or bank acceptance notes | 0.57 |
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| Guangzhou Haixinsha Industry General Company | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 51.32 | 51.32 | 0.58% | 900 | Not | Bank transfers or bank acceptance notes | 51.32 | 27 February 2024 | www.cninfo.com.cn |
| Guangzhou Huajian Business Development Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 8.74 | 8.74 | 0.04% | Bank transfers or bank acceptance notes | 8.74 | ||||
| Prosperity Lamps & Components Limited | Shareholder that holds over 5% shares of the Company | Selling products and providing labor service to related party | Selling products | Market price | 573.24 | 573.24 | 0.12% | 3,600 | Not | Bank transfers or bank acceptance notes | 573.24 | 27 February 2024 | www.cninfo.com.cn |
| Guangdong Fenghua Advanced | Under same actual controller | Selling products and provid | Selling products | Market price | 457.27 | 457.27 | 0.10% | 2,000 | Not | Bank transfers or bank acceptance | 457.27 | 27 February 2024 | www.cninfo.com.cn |
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| Technology Holding Co., Ltd. | ing labor service to related party | notes | |||||||||||
| Shandong Zhongjin Lingnan Copper Co., Ltd. | Under same actual controller | Selling products and providing labor service to related party | Selling products | Market price | 0.91 | 0.91 | 0.00% | 1,000 | Not | Bank transfers or bank acceptance notes | 0.91 | 27 February 2024 | www.cninfo.com.cn |
| Guangdong Yixin Changcheng Construction Group | Under same actual controller | Selling products and providing labor service to related party | Selling products | Market price | 12.10 | 12.1 | 0.00% | 1,500 | Not | Bank transfers or bank acceptance notes | 12.10 | 27 February 2024 | www.cninfo.com.cn |
| Guangzhou Wanshun Investment Management Co., Ltd. | Under same actual controller | Selling products and providing labor service to related party | Selling products | Market price | 5.96 | 5.96 | 0.00% | Bank transfers or bank acceptance notes | 5.96 | ||||
| Guan | Under | Sellin | Sellin | Marke | 9.96 | 9.96 | 0.00% | Bank | 9.96 |
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction price (RMB’0,000) | Total value (RMB’0,000) | As % of total value of all same-type transactions | Approved transaction line (RMB’0,000) | Over the approved line or not | Method of settlement | Obtainable market price for same-type transactions (RMB’0,000) | Disclosure date | Index to disclosed information |
| gdong Rising Non-ferrous Metal Group | same actual controller | g products and providing labor service to related party | g products | t price | transfers or bank acceptance notes | ||||||||
| Guangdong Xintaochip Microelectronics Co., Ltd. | Under same actual controller | Selling products and providing labor service to related party | Providing labor service | Market price | 64.79 | 64.79 | 0.01% | Bank transfers or bank acceptance notes | 64.79 | ||||
| Total | -- | -- | 1,806.56 | -- | 12,100 | -- | -- | -- | -- | -- | |||
| Large-amount sales return in detail | N/A | ||||||||||||
| Give the actual situation in the Reporting Period (if any) where an estimate had been made for the total value of continuing related-party transactions by type to occur in the Reporting Period | In June 2024, the Company forecasted the aggregate amount of its routine connected transactions with related parties including Prosperity Lamps & Components Limited and its majority-owned subsidiaries, Guangdong Rising Holdings Group Co., Ltd., Guangdong Fenghua Advanced Technology Holding Co., Ltd., Guangdong Electronics Information Industry Group Ltd. and its majority-owned subsidiaries, Dongjiang Environmental Company Limited and its majority-owned subsidiaries, Guangdong Rising Property Group Co., Ltd. and its majority-owned subsidiaries, Guangdong Rising Research and Development Institute Co., Ltd. and its majority-owned subsidiaries, Guangdong Rising Real Estate Group Co., Ltd. and its majority-owned subsidiaries, Guangdong Huajian Enterprise Group Co., Ltd. and its majority-owned subsidiaries, Guangdong Rising Non-ferrous Metal Group Co., Ltd. and its majority-owned subsidiaries, and Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. and its majority-owned subsidiaries. In terms of related party procurements, the actual transaction amount for June 2024 was RMB6,823,300, representing 15.87% of the forecasted amount for the entire year of 2024; in terms of related party sales, the actual transaction amount for June 2024 was RMB11,242,300, accounting for 10.91% of the estimated total for the year 2024. | ||||||||||||
| Reason for any significant difference between the transaction price and the market reference price (if applicable) | N/A | ||||||||||||
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable ? Not applicable
No such cases in the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable ? Not applicable
No such cases in the Reporting Period.
4. Amounts Due to and from Related Parties
? Applicable □ Not applicableNon-operating amounts due to and from related parties or not
□ Yes ? No
No such cases in the Reporting Period.
5. Transactions with Related Finance Companies
? Applicable □ Not applicableDeposit business:
| Related party | Relationship | Daily maximum limits (RMB’0,000) | Interest rate range | Beginning balance (RMB’0,000) | Actual amount | Ending balance (RMB’0,000) | |
| Total deposited in (RMB’0,000) | Total withdrawn (RMB’0,000) | ||||||
| Guangdong Rising Finance Co., Ltd. | Controlled by the same controlling shareholder | 150,000 | 0.25%-2.8% | 117,915.42 | 327,398.77 | 310,718.30 | 134,595.89 |
Loan business:
NoneCredit or other financial business:
| Related party | Relationship | Type of business | Total amount (RMB’0,000) | Actual amount (RMB’0,000) |
| Guangdong Rising Finance Co., Ltd. | Controlled by the same controlling shareholder | Credit granting | 200,000 | 0 |
6. Transactions with Related Parties by Finance Company Controlled by the Company
□ Applicable ? Not applicable
No finance company controlled by the Company was involved in making deposits, borrowing, credit granting orany other financial business with any related party.
7. Other Major Related-Party Transactions
? Applicable □ Not applicable
| Related party | Relationship with the Company | Type of transaction | Specific transaction | Pricing principle | Transaction amount | Method of settlement | Disclosure date | Disclosure website |
| (RMB’0,000) | ||||||||
| Guangdong Zhongnan Construction Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 826.63 | Bank transfers or bank acceptance notes | 9 July 2021, 17 August 2021, and 12 March 2022 | www.cninfo.com.cn |
| Guangdong Yixin Changcheng Construction Group | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 4,749.32 | Bank transfers or bank acceptance notes | 6 May 2021 and 28 January 2022 | www.cninfo.com.cn |
| Guangdong Zhongren Group Construction Co., Ltd. | Under same actual controller | Purchasing products and receiving labor service from related party | Receiving labor service | Market price | 240.76 | Bank transfers or bank acceptance notes | 1 December 2020 | www.cninfo.com.cn (announcement of subsidiary NationStar Optoelectronics) |
Index to the current announcement about the said related-party transaction disclosed:
| Title of announcement | Disclosure date | Disclosure website |
| Announcement on a Related-Party Transaction Due to a Call for Public Bids | 1 December 2020 | www.cninfo.com.cn (announcement of subsidiary NationStar Optoelectronics) |
| Announcement on a Related-Party Transaction Due to a Call for Public Bids | 6 May 2021 | www.cninfo.com.cn |
| Announcement on a Related-Party Transaction Due to a Call for Public Bids | 9 July 2021 | www.cninfo.com.cn |
| Announcement on a Related-Party Transaction Due to a Call for Public Bids | 17 August 2021 | www.cninfo.com.cn |
| Announcement on a Related-Party Transaction Due to a Call for Public Bids | 28 January 2022 | www.cninfo.com.cn |
| Announcement on a Related-Party Transaction Due to a Call for Public Bids | 12 March 2022 | www.cninfo.com.cn |
XII Major Contracts and Execution thereof
1. Entrustment, Contracting and Leases
(1) Entrustment
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(2) Contracting
□ Applicable ? Not applicable
No such cases in the Reporting Period.
(3) Leases
? Applicable □ Not applicableNotes to leasesNo such cases in the Reporting Period.Lease items with a greater-than-10% impact on the Company’s gross profit during the Reporting Period:
□ Applicable ? Not applicable
No such cases in the Reporting Period.
2. Major guarantees
? Applicable □ Not applicable
Unit: RMB'0,000
| Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries) | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Guarantees provided by the Company as the parent for its subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Guarantees provided between subsidiaries | ||||||||||
| Obligor | Disclosure date of the guarantee line announcement | Line of guarantee | Actual occurrence date | Actual guarantee amount | Type of guarantee | Collateral (if any) | Counter guarantee (if any) | Term of guarantee | Having expired or not | Guarantee for a related party or not |
| Nanning Liaowang Auto Lamp Co., Ltd., Liuzhou Guige Foreshine Technology Co., Ltd., Liuzhou Guige Lighting Technology Co., Ltd. | 2 March 2023 、19 April 2024 | 6,350 | 21 June 2023 | 2,832.98 | Secured | Yes | None | 25 April 2022 -31 December 2025 | No | No |
| Chongqing Guinuo Lighting Technology Co., Ltd. | 2 March 2023、19 April 2024 | 7,000 | 10 February 2023 | 4,930.6 | Secured | Yes | None | 25 May 2023 -24 May 2024,21 May 2024 -20 May 2025 | No | No |
| Nanning | 2 March | 14,300 | 24 | 4,385.06 | Secured | Yes | None | 24 April | No | No |
| Liaowang Auto Lamp Co., Ltd., Liuzhou Guige Foreshine Technology Co., Ltd., Liuzhou Guige Lighting Technology Co., Ltd. | 2023、19 April 2024 | March 2023 | 2022 -31 December 2025 | ||||
| Total approved line for such guarantees in the Reporting Period (C1) | 27,650 | Total actual amount of such guarantees in the Reporting Period (C2) | 12,148.64 | ||||
| Total approved line for such guarantees at the end of the Reporting Period (C3) | 27,650 | Total actual balance of such guarantees at the end of the Reporting Period (C4) | 12,148.64 | ||||
| Total guarantee amount (total of the three kinds of guarantees above) | |||||||
| Total guarantee line approved in the Reporting Period (A1+B1+C1) | 27,650 | Total actual guarantee amount in the Reporting Period (A2+B2+C2) | 12,148.64 | ||||
| Total approved guarantee line at the end of the Reporting Period (A3+B3+C3) | 27,650 | Total actual guarantee balance at the end of the Reporting Period (A4+B4+C4) | 12,148.64 | ||||
| Total actual guarantee amount (A4+B4+C4) as % of the Company’s net assets | 1.94% | ||||||
| Of which: | |||||||
Compound guarantees:
None.Chongqing Guinuo Lighting Technology Co., Ltd. (referred to as “Chongqing Guinuo”), Liuzhou GuigeForeshine Technology Co., Ltd. (referred to as “Liuzhou Foreshine”), and Liuzhou Guige Lighting TechnologyCo., Ltd. (referred to as “Liuzhou Lighting”) are all wholly-owned subsidiaries of Nanning Liaowang AutoLamp Co., Ltd. (referred to as “Nanning Liaowang”). As of 30 June 2024, guarantees between NanningLiaowang and its subsidiaries and collaterals are set out in “3. Other” under “XVI Commitments andContingencies” in Part X of this Report.
3. Cash Entrusted for Wealth Management
? Applicable □ Not applicable
Unit: RMB’0,000
| Type | Funding source | Amount | Undue amount | Unrecovered overdue amount | Provision for impairment on |
| unrecovered overdue amount | |||||
| Bank financial products | Self-owned funds | 26,000 | 10,500 | ||
| Others | Raised funds | 59,900 | 59,900 | ||
| Others | Self-owned funds | 61,670 | 61,670 | ||
| Total | 147,570 | 132,070 | |||
High-risk wealth management transactions with a significant single amount, or with low security and lowliquidity:
? Applicable □ Not applicable
Unit: RMB'0,000
| Trustee | Type of trustee | Type of wealth management product | Principal | Source of principal | Beginning date | Ending date | Use of principal | Determination of yield | Annualized yield rate for reference | Expected yield (if any) | Actual gain/loss in Reporting Period | Receipt/payment of such gain/loss | Allowance for impairment (if any) | Prescribed procedure executed or not | Plan for more transaction or not | Index to transaction summary and other information (if any) |
| Guangzhou Branch of China Everbright Bank | Bank | Large certificate of deposit | 10,000 | Self-owned funds | 6 January 2023 | 6 January 2026 | Other | Subject to actual investment period | 3.30% | 990 | 164.55 | To be recovered | Yes | Incompliance with prescribed approval procedure | Announcement No. 2023-011 on Continuing to use its Self-owned Funds for Entrusted Wealth Management and Announcement No. 2024-017 on Entrustment of Some Idle | |
| Foshan Branch of Bank of Communications | Bank | Large certificate of deposit | 5,000 | Self-owned funds | 31 August 2023 | 31 August 2026 | Other | Subject to actual investment period | 2.90% | 435 | 73.31 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Guangzhou Branch of China Everbright Bank | Bank | Large certificate of deposit | 10,000 | Self-owned funds | 3 November 2023 | 3 November 2026 | Other | Subject to actual investment period | 2.90% | 870 | 212.93 | To be recovered | Yes | Incompliance with prescribed approval procedure |
| Trustee | Type of trustee | Type of wealth management product | Principal | Source of principal | Beginning date | Ending date | Use of principal | Determination of yield | Annualized yield rate for reference | Expected yield (if any) | Actual gain/loss in Reporting Period | Receipt/payment of such gain/loss | Allowance for impairment (if any) | Prescribed procedure executed or not | Plan for more transaction or not | Index to transaction summary and other information (if any) |
| Foshan Hujing Sub-branch of Bank of GuangZhou | Bank | Large certificate of deposit | 15,000 | Self-owned funds | 1 December 2023 | 1 December 2026 | Other | Subject to actual investment period | 2.95% | 1,327.5 | 220.64 | To be recovered | Yes | Incompliance with prescribed approval procedure | Funds for Wealth Management on http://www.cninfo.com.cn/ | |
| Foshan Hujing Sub-branch of Bank of GuangZhou | Bank | Large certificate of deposit | 21,200 | Raised funds | 5 February 2024 | 5 February 2027 | Other | Subject to actual investment period | 2.75% | 1,749 | 234.8 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Guangzhou Branch of China Everbright Bank | Bank | Large certificate of deposit | 5,500 | Raised funds | 5 February 2024 | 5 February 2027 | Other | Subject to actual investment period | 2.60% | 429 | 57.59 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan Branch of Huaxia Bank | Bank | Large certificate of deposit | 14,300 | Raised funds | 5 February 2024 | 5 February 2027 | Other | Subject to actual investment period | 2.60% | 1,115.4 | 149.74 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan | Bank | Large | 8,200 | Raised | 5 February | 5 February 2027 | Other | Subject to | 2.60% | 639.6 | 85.86 | To be recov | Yes | Incompliance |
| Trustee | Type of trustee | Type of wealth management product | Principal | Source of principal | Beginning date | Ending date | Use of principal | Determination of yield | Annualized yield rate for reference | Expected yield (if any) | Actual gain/loss in Reporting Period | Receipt/payment of such gain/loss | Allowance for impairment (if any) | Prescribed procedure executed or not | Plan for more transaction or not | Index to transaction summary and other information (if any) |
| Branch of China Merchants Bank | certificate of deposit | funds | 2024 | actual investment period | ered | with prescribed approval procedure | ||||||||||
| Foshan Branch of Huaxia Bank | Bank | Large certificate of deposit | 15,000 | Self-owned funds | 8 March 2024 | 8 March 2027 | Other | Subject to actual investment period | 2.60% | 1,170 | 122.88 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan Branch of China Merchants Bank | Bank | Large certificate of deposit | 3,500 | Self-owned funds | 29 March 2024 | 29 March 2027 | Other | Repay the principal and interest when due and subject to actual investment period | 2.60% | 273 | 23.44 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan Branch of China Merchants Bank | Bank | Large certificate of deposit | 3,000 | Self-owned funds | 30 April 2024 | 30 April 2027 | Other | Subject to actual investment period | 2.60% | 234 | 21.37 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan Sub-branch of | Bank | Structured deposit | 4,000 | Self-owned funds | 18 January 2024 | 16 July 2024 | Other | Subject to actual investment | 3.00% | 56.6 | 51.57 | To be recovered | Yes | Incompliance with prescribed |
| Trustee | Type of trustee | Type of wealth management product | Principal | Source of principal | Beginning date | Ending date | Use of principal | Determination of yield | Annualized yield rate for reference | Expected yield (if any) | Actual gain/loss in Reporting Period | Receipt/payment of such gain/loss | Allowance for impairment (if any) | Prescribed procedure executed or not | Plan for more transaction or not | Index to transaction summary and other information (if any) |
| LUSO International Banking Ltd. | period | approval procedure | ||||||||||||||
| Foshan Sub-branch of LUSO International Banking Ltd. | Bank | Structured deposit | 2,000 | Self-owned funds | 22 April 2024 | 21 October 2024 | Other | Subject to actual investment period | 2.95% | 28.14 | 10.67 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan Sub-branch of LUSO International Banking Ltd. | Bank | Structured deposit | 2,500 | Self-owned funds | 10 May 2024 | 12 August 2024 | Other | Subject to actual investment period | 2.85% | 17.55 | 9.52 | To be recovered | Yes | Incompliance with prescribed approval procedure | ||
| Foshan Sub-branch of LUSO International Banking Ltd. | Bank | Structured deposit | 2,000 | Self-owned funds | 21 May 2024 | 14 November 2024 | Other | Subject to actual investment period | 2.90% | 26.9 | 6.08 | To be recovered | Yes | Incompliance with prescribed approval procedure |
| Trustee | Type of trustee | Type of wealth management product | Principal | Source of principal | Beginning date | Ending date | Use of principal | Determination of yield | Annualized yield rate for reference | Expected yield (if any) | Actual gain/loss in Reporting Period | Receipt/payment of such gain/loss | Allowance for impairment (if any) | Prescribed procedure executed or not | Plan for more transaction or not | Index to transaction summary and other information (if any) |
| Total | 121,200 | -- | -- | -- | -- | -- | -- | 9,361.69 | 1,444.95 | -- | -- | -- | -- | |||
Situation where the principal is expectedly irrecoverable or an impairment may be incurred:
□ Applicable ? Not applicable
4. Other Significant Contracts
□ Applicable ? Not applicable
No such cases in the Reporting Period.XIII Other Significant Events? Applicable □ Not applicableOn 6 December 2023 and 22 December 2023, the Company respectively held the 49th meeting of the 9th Boardof Directors and the Second Extraordinary General Meeting of 2023, which approved the Proposal on theDisposal of Assets of the Company and Signing of Reserve Agreement, and agreed that the Company would signthe Letter of Intent on Land Reserve with Foshan City Chancheng District Zumiao Street Office, and sign theState-owned Land Use Right Reserve Agreement with Foshan City Chancheng District Land Reserve Center andFoshan City Chancheng District Zumiao Street Office. After completing the preliminary land preparation worksuch as demolition of buildings on the ground in accordance with relevant laws, regulations and policies, the No.64 Fenjiang North Road land parcel in Chancheng District, Foshan City would be handed over in three yearsbatch by batch for pending expropriation. On 1 February 2024, the Company formally signed the State-ownedLand Use Right Reserve Agreement with Foshan City Chancheng District Land Reserve Center and Foshan CityChancheng District Zumiao Street Office. The Company would conduct pending expropriation of Lot No. 64,Fenjiang North Road in accordance with the relevant contents of the agreement. The Company will continue tofollow up on the progress of pending expropriation, and fulfill its information disclosure obligations in a timelymanner in accordance with relevant laws, regulations, and normative documents.XIV Significant Events of Subsidiaries
? Applicable □ Not applicableExpropriation of land and above-ground housing of Nanjing FozhaoThe Company held the 24th Meeting of the Ninth Board of Directors on 15 December 2021, where the Proposalon Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary Nanjing FozhaoLighting Equipment Manufacturing Co., Ltd., was deliberated and adopted. The Board of Directors agreed thatNanjing Lishui District People's Government expropriates the land use rights and above-land housing ofNanjing Fozhao Lighting Equipment Manufacturing Co., Ltd. (hereinafter referred to as "Nanjing Fozhao"), awholly-owned subsidiary of the Company, at a compensation amount of RMB183,855,895.00, and NanjingFozhao signed an expropriation and compensation agreement with Lishui County House Dismantling, Moving& Resettling Development Co., Ltd., the implementing unit of the housing expropriation. As of 30 June 2024,
Nanjing Fozhao has received 30% of the compensation, that is, RMB55,160,000.00, and the land use rightcertificate and house ownership certificate of the assets involved have been cancelled. As of the date of thisreport, the site handover is still in progress. After the demolition work is completed, Nanjing Fozhao plans to beliquidated and cancelled.
Part VII Share Changes and Shareholder InformationI Share Changes
1. Share Changes
Unit: share
| Before | Increase/decrease in the Reporting Period (+/-) | After | |||||||
| Shares | Percentage (%) | New issues | Shares as dividend converted from profit | Shares as dividend converted from capital reserves | Other | Subtotal | Shares | Percentage (%) | |
| 1. Restricted shares | 197,537,241 | 12.75% | -140,165,794.00 | -140,165,794.00 | 57,371,447 | 3.70% | |||
| 1.1 Shares held by state | |||||||||
| 1.2 Shares held by state-owned legal persons | 69,136,167 | 4.46% | -22,440,271.00 | -22,440,271.00 | 46,695,896 | 3.02% | |||
| 1.3 Shares held by other domestic investors | 1,826,025 | 0.12% | -78,106.00 | -78,106.00 | 1,747,919 | 0.11% | |||
| Among which: Shares held by domestic legal persons | 1,338,434 | 0.09% | 0.00 | 0.00 | 1,338,434 | 0.09% | |||
| Shares held by domestic natural persons | 487,591 | 0.03% | -78,106.00 | -78,106.00 | 409,485 | 0.03% | |||
| 1.4 Shares held by foreign investors | 24,481,196 | 1.58% | -15,553,564.00 | -15,553,564.00 | 8,927,632.00 | 0.58% | |||
| Among which: Shares held by foreign legal | 11,604,094 | 0.75% | -11,604,094.00 | -11,604,094.00 | 0 | 0.00% | |||
| persons | |||||||||
| Shares held by foreign natural persons | 12,877,102 | 0.83% | -3,949,470.00 | -3,949,470.00 | 8,927,632 | 0.58% | |||
| 1.5. Funds, and other financial products, etc. | 102,093,853 | 6.59% | -102,093,853.00 | -102,093,853.00 | 0 | 0.00% | |||
| 2. Unrestricted shares | 1,351,240,989 | 87.25% | 140,165,794.00 | 140,165,794.00 | 1,491,406,783 | 96.30% | |||
| 2.1 RMB-denominated ordinary shares | 1,056,501,050 | 68.22% | 140,167,683.00 | 140,167,683.00 | 1,196,668,733 | 77.27% | |||
| 2.2 Domestically listed foreign shares | 294,739,939 | 19.03% | -1,889.00 | -1,889.00 | 294,738,050 | 19.03% | |||
| 2.3 Overseas listed foreign shares | |||||||||
| 2.4 Other | |||||||||
| 3. Total shares | 1,548,778,230 | 100.00% | 0.00 | 0.00 | 1,548,778,230 | 100.00% |
Reasons for share changes:
? Applicable □ Not applicable
1. In 2023, in accordance with the Reply on the Approval of the Registration of Foshan Electrical and LightingCo., Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the CSRC, the Companyissued 186,783,583 RMB-denominated ordinary shares (A shares) to 13 specific objects including RisingHoldings Group, the Company's de facto controller, and such shares were listed on the Shenzhen StockExchange on 4 December 2023. In the first half of 2024, the 140,087,688 restricted shares subscribed by 12subscribers in this issue were relieved. For details, please refer to the Indicative Announcement on the Tradingon the Market of Restricted Shares Issued to Specific Objects That Have Been Relieved disclosed on 29 May2024 on http://www.cninfo.com.cn.
2. Due to the resignation of directors and senior management, 78,106 tradable shares with unlimited sellingconditions were added in accordance with relevant regulations.Approval of share changes:
? Applicable □ Not applicableDuring the Reporting Period, the application for the relief of the 140,087,688 restricted shares subscribed by 12specific objects, which were issued by the Company in 2023, and their change to unrestricted shares wasapproved by the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited.Transfer of share ownership:
□Applicable ? Not applicable
Progress on any share repurchase:
□Applicable ? Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□Applicable ? Not applicable
Effects of share changes on the basic and diluted earnings per share, equity per share attributable to theCompany’s ordinary shareholders and other financial indicators of the prior year and the prior accountingperiod, respectively:
□Applicable ? Not applicable
Other information that the Company considers necessary or is required by the securities regulator to bedisclosed:
□Applicable ? Not applicable
2. Changes in Restricted Shares
? Applicable □ Not applicable
Unit: share
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares relieved of the period | Restricted shares increased of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Nuode Asset Management Co., Ltd. | 33,373,720 | 33,373,720 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Caitong Fund Management Co., Ltd. | 44,658,703 | 44,658,703 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| CSC Financial Co., Ltd. | 8,788,395 | 8,788,395 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| UBSAG | 6,484,641 | 6,484,641 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to | 4 June 2024 |
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares relieved of the period | Restricted shares increased of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| specific objects in 2023 | ||||||
| Morgan Stanley & Co. International plc | 5,119,453 | 5,119,453 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| CITIC Securities Co., Ltd. | 5,119,453 | 5,119,453 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Guangdong Rongchuang Lingyue Intelligent Manufacturing and Information Technology Industry Equity Investment Fund Partnership (Limited Partnership) | 5,119,453 | 5,119,453 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Changsha Lugu Capital Management Co., Ltd. | 8,532,423 | 8,532,423 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Huatai Asset Management Co., Ltd.-Huatai Youyi Stock Specialized Pension Product | 5,119,453 | 5,119,453 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Sichuan Pu Xin | 5,119,453 | 5,119,453 | 0 | 0 | Relief of | 4 June 2024 |
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares relieved of the period | Restricted shares increased of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Chan Rong Investment Co., Ltd. | restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | |||||
| Horizon Asset Management Co., Ltd. | 8,703,071 | 8,703,071 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Wu Xiaochun | 3,949,470 | 3,949,470 | 0 | 0 | Relief of restricted A shares subscribed, which were issued by the Company to specific objects in 2023 | 4 June 2024 |
| Wei Bin | 78,919 | 0 | 26,307 | 105,226 | Restricted sale due to separation of directors, supervisors and senior management | Relief of restricted shares in accordance with rules on restricted shares for senior management |
| Jiao Zhigang | 67,799 | 67,799 | 0 | 0 | Restricted sale due to separation of directors, supervisors and senior management | Relief of restricted shares in accordance with rules on restricted shares for senior management |
| Cheng Ke | 8,662 | 8,662 | 0 | 0 | Restricted sale due to separation of directors, supervisors and senior management | Relief of restricted shares in accordance with rules on restricted shares for senior management |
| Name of the shareholders | Restricted shares amount at the period-begin | Restricted shares relieved of the period | Restricted shares increased of the period | Restricted shares amount at the period-end | Restricted reasons | Restricted shares relieved date |
| Xu Xiaoping | 27,952 | 27,952 | 0 | 0 | Restricted sale due to separation of directors, supervisors and senior management | Relief of restricted shares in accordance with rules on restricted shares for senior management |
| Total | 140,282,500 | 140,192,101 | 26,307 | 105,226 | -- | -- |
II. Issuance and Listing of Securities
□Applicable ? Not applicable
III. Total Number of Shareholders and Their Shareholdings
Unit: share
| Total number of ordinary shareholders at the period-end | 72,742 | Total number of preference shareholders with resumed voting rights at the period-end (if any) (see Note 8) | 0 | |||||
| Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares lent in refinancing) | ||||||||
| Name of shareholder | Nature of shareholder | Shareholding percentage | Total ordinary shares held at the period-end | Increase/decrease in the Reporting Period | Restricted ordinary shares held | Non-restricted ordinary shares held | Shares in pledge, marked or frozen | |
| Status | Shares | |||||||
| Hongkong Wah Shing Holding Company Limited | Foreign corporation | 12.52% | 193,915,480 | 5,419,050 | 0 | 193,915,480 | N/A | 0 |
| Prosperity Lamps & Components Limited | Foreign corporation | 9.49% | 146,934,857 | 0 | 0 | 146,934,857 | N/A | 0 |
| Guangdong Electronics Information Industry Group Ltd. | State-owned corporation | 8.49% | 131,439,546 | 8,745,300 | 0 | 131,439,546 | N/A | 0 |
| Guangdong Rising Holdings Group Co., Ltd. | State-owned corporation | 8.38% | 129,826,793 | 0 | 46,695,895 | 83,130,898 | N/A | 0 |
| Essence International Securities (Hong Kong) Limited | Foreign corporation | 2.50% | 38,645,124 | 418,600 | 0 | 38,645,124 | N/A | 0 |
| Central Huijin Asset Management Co., Ltd. | State-owned corporation | 2.14% | 33,161,800 | 0 | 0 | 33,161,800 | N/A | 0 |
| Rising Investment Development Limited | Foreign corporation | 1.65% | 25,482,252 | 0 | 0 | 25,482,252 | N/A | 0 |
| Hong Kong Securities Clearing Company Limited | Foreign corporation | 1.36% | 21,004,044 | -9,363,762 | 0 | 21,004,044 | N/A | 0 |
| Zhang Shaowu | Domestic individual | 1.10% | 17,000,000 | 5,300,000 | 0 | 17,000,000 | N/A | 0 |
| Zhuang Jianyi | Foreign individual | 0.77% | 11,903,509 | 0 | 8,927,632 | 2,975,877 | N/A | 0 |
| Strategic investors or general corporations becoming top-ten shareholders due to placing of new shares (if any) (see Note 3) | Naught | |||||||
| Related or acting-in-concert parties among the shareholders above | Among the top 10 shareholders, Hongkong Wah Shing Holding Company Limited, Guangdong Rising Holdings Group Co., Ltd., Guangdong Electronics Information Industry Group Ltd. and Rising Investment Development Limited 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. | |||||||
| Above shareholders involved in entrusting/being entrusted with voting rights and giving up voting rights | Naught | |||||||
| Special account for share repurchases (if any) among the top 10 shareholders (see note 11) | As of the period-end, the Company had 13,000,000 A-shares of it in its special account for share repurchases, accounting for 0.84% of the Company’s total share capital. | |||||||
| Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and executive lock-up shares) | ||||||||
| Name of shareholder | Unrestricted ordinary shares at the period-end | Type of shares | ||||||
| Type | Shares | |||||||
| Hongkong Wah Shing Holding Company Limited | 193,915,480 | RMB-denominated ordinary stock | 188,496,430 | |||||
| Domestically listed foreign stock | 5,419,050 | |||||||
| Prosperity Lamps & Components Limited | 146,934,857 | RMB-denominated ordinary stock | 146,934,857 | |||||
| Guangdong Electronics Information Industry Group Ltd. | 131,439,546 | RMB-denominated ordinary stock | 131,439,546 | |||||
| Guangdong Rising Holdings Group Co., Ltd. | 83,130,898 | RMB-denominated ordinary stock | 83,130,898 | |||||
| Essence International Securities (Hong Kong) Limited | 38,645,124 | Domestically listed foreign stock | 38,645,124 |
| Central Huijin Asset Management Co., Ltd. | 33,161,800 | RMB-denominated ordinary stock | 33,161,800 |
| Rising Investment Development Limited | 25,482,252 | Domestically listed foreign stock | 25,482,252 |
| Hong Kong Securities Clearing Company Limited | 21,004,044 | RMB-denominated ordinary stock | 21,004,044 |
| Zhang Shaowu | 17,000,000 | RMB-denominated ordinary stock | 17,000,000 |
| China Merchants Securities (HK) Co., Limited | 8,567,891 | Domestically listed foreign stock | 8,567,891 |
| Related or acting-in-concert parties among the top 10 unrestricted ordinary shareholders, as well as between the top 10 unrestricted ordinary shareholders and the top 10 ordinary shareholders | Among the top 10 unrestricted ordinary shareholders, Hongkong Wah Shing Holding Company Limited, Guangdong Rising Holdings Group 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) (see note 4) | None | ||
5% or greater shareholders, top 10 shareholders and Top 10 unrestricted shareholders involved in refinancingshares lending
□Applicable ? Not applicable
Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/returncompared with the prior period
□Applicable ? Not applicable
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.
IV Change in Shareholdings of Directors, Supervisors and Senior Management
□Applicable ? Not applicable
No changes occurred to the shareholdings of the directors, supervisors and senior management in the ReportingPeriod. See the 2023 Annual Report for more details.
V Change of the Controlling Shareholder or the Actual Controller
Change of the controlling shareholder in the Reporting Period
□Applicable ? Not applicable
No such cases in the Reporting Period.Change of the actual controller in the Reporting Period
□Applicable ? Not applicable
No such cases in the Reporting Period.
Part VIII Preference Shares
□Applicable ? Not applicable
No preference shares in the Reporting Period.
Part IX Bonds
□Applicable ? Not applicable
Part X Financial StatementsI Auditor’s Report
Whether the interim report has been audited?
□Yes ? No
The interim report of the Company has not been audited.II Financial Statements
Currency unit for the financial statements and the notes thereto: RMB
1. Consolidated Balance Sheet
Prepared by Foshan Electrical and Lighting Co., Ltd.
30 June 2024
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Monetary assets | 3,191,608,973.70 | 3,596,049,654.55 |
| Settlement reserve | ||
| Interbank loans granted | ||
| Held-for-trading financial assets | 106,928,328.01 | 152,529,775.41 |
| Derivative financial assets | ||
| Notes receivable | 968,135,967.44 | 1,057,352,267.60 |
| Accounts receivable | 2,452,672,368.91 | 2,093,499,280.40 |
| Accounts receivable financing | 296,834,332.74 | 443,201,960.02 |
| Prepayments | 55,984,559.55 | 34,508,638.92 |
| Premiums receivable | ||
| Reinsurance receivables | ||
| Receivable reinsurance contract reserve | ||
| Other receivables | 57,278,936.88 | 49,108,300.85 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Financial assets purchased under resale agreements | ||
| Inventories | 1,713,501,547.83 | 1,971,171,641.14 |
| Including: data resources | ||
| Contract assets | 2,366,030.73 | 4,252,013.94 |
| Assets held for sale | 17,147,339.84 | 17,147,339.84 |
| Current portion of non-current assets | ||
| Other current assets | 195,745,670.47 | 109,292,399.14 |
| Total current assets | 9,058,204,056.10 | 9,528,113,271.81 |
| Non-current assets: | ||
| Loans and advances to customers | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | 1,124,498,738.94 | 454,822,905.25 |
| Long-term receivables | ||
| Long-term equity investments | 180,633,275.87 | 179,188,555.15 |
| Investments in other equity instruments | 674,411,551.40 | 699,762,746.35 |
| Item | 30 June 2024 | 1 January 2024 |
| Other non-current financial assets | ||
| Investment property | 160,155,678.54 | 163,636,347.41 |
| Fixed assets | 3,481,812,429.68 | 3,453,214,586.47 |
| Construction in progress | 1,070,611,321.57 | 1,174,533,505.11 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 4,980,388.38 | 8,812,320.64 |
| Intangible assets | 395,232,106.46 | 434,549,913.99 |
| Including: data resources | ||
| Development costs | ||
| Including: data resources | ||
| Goodwill | 421,831,593.46 | 421,831,593.46 |
| Long-term prepaid expense | 220,312,810.06 | 190,362,699.25 |
| Deferred income tax assets | 124,528,040.70 | 106,283,766.95 |
| Other non-current assets | 157,198,709.48 | 119,327,703.18 |
| Total non-current assets | 8,016,206,644.54 | 7,406,326,643.21 |
| Total assets | 17,074,410,700.64 | 16,934,439,915.02 |
| Current liabilities: | ||
| Short-term borrowings | 124,850,000.00 | 220,019,877.73 |
| Borrowings from the central bank | ||
| Interbank loans obtained | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 2,052,737,312.65 | 2,271,174,787.69 |
| Accounts payable | 2,971,638,357.60 | 2,875,980,206.64 |
| Advances from customers | 231,062.59 | 466,872.69 |
| Contract liabilities | 136,319,866.46 | 235,335,693.28 |
| Financial assets sold under repurchase agreements | ||
| Customer deposits and interbank deposits | ||
| Payables for acting trading of securities | ||
| Payables for underwriting of securities | ||
| Employee benefits payable | 197,680,567.52 | 193,830,812.66 |
| Taxes payable | 80,226,629.71 | 42,940,157.30 |
| Other payables | 614,845,550.63 | 362,491,923.01 |
| Including: Interest payable | ||
| Dividends payable | 184,293,387.60 | |
| Handling charges and commissions payable | ||
| Reinsurance payables | ||
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 380,199,297.64 | 343,914,214.45 |
| Other current liabilities | 194,436,120.52 | 95,008,427.01 |
| Total current liabilities | 6,753,164,765.32 | 6,641,162,972.46 |
| Non-current liabilities: | ||
| Insurance contract reserve | ||
| Long-term borrowings | 274,397,540.10 | 253,093,421.29 |
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 1,976,953.14 | 4,310,967.92 |
| Long-term payables | ||
| Long-term employee benefits payable |
| Item | 30 June 2024 | 1 January 2024 |
| Provisions | 16,495,438.86 | 14,277,087.30 |
| Deferred income | 67,417,473.08 | 75,185,461.27 |
| Deferred income tax liabilities | 166,936,684.37 | 174,806,746.25 |
| Other non-current liabilities | 205,769.48 | |
| Total non-current liabilities | 527,224,089.55 | 521,879,453.51 |
| Total liabilities | 7,280,388,854.87 | 7,163,042,425.97 |
| Owners’ equity: | ||
| Share capital | 1,548,778,230.00 | 1,548,778,230.00 |
| Other equity instruments | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 914,336,325.66 | 914,336,325.66 |
| Less: Treasury stock | 82,165,144.15 | 82,165,144.15 |
| Other comprehensive income | 337,823,638.67 | 360,027,027.59 |
| Specific reserve | 4,407,364.68 | 1,213,325.92 |
| Surplus reserves | 107,944,679.06 | 107,944,679.06 |
| General reserve | ||
| Retained earnings | 3,443,244,158.89 | 3,435,308,364.11 |
| Total equity attributable to owners of the Company as the parent | 6,274,369,252.81 | 6,285,442,808.19 |
| Non-controlling interests | 3,519,652,592.96 | 3,485,954,680.86 |
| Total owners’ equity | 9,794,021,845.77 | 9,771,397,489.05 |
| Total liabilities and owners’ equity | 17,074,410,700.64 | 16,934,439,915.02 |
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
2. Balance Sheet of the Company as the Parent
Unit: RMB
| Item | 30 June 2024 | 1 January 2024 |
| Current assets: | ||
| Monetary assets | 1,196,626,652.19 | 1,756,256,289.35 |
| Held-for-trading financial assets | 99,400.00 | |
| Derivative financial assets | ||
| Notes receivable | 100,797,978.25 | 90,413,382.59 |
| Accounts receivable | 894,653,466.59 | 840,003,427.41 |
| Accounts receivable financing | 13,529,700.40 | 105,327,382.82 |
| Prepayments | 5,701,515.48 | 7,334,575.29 |
| Other receivables | 723,060,470.78 | 558,342,534.44 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 299,958,974.53 | 462,793,053.42 |
| Including: data resources | ||
| Contract assets | 2,366,030.73 | 4,252,013.94 |
| Assets held for sale | ||
| Current portion of non-current assets | ||
| Other current assets | 868,495.65 | 8,244,786.97 |
| Total current assets | 3,237,662,684.60 | 3,832,967,446.23 |
| Non-current assets: | ||
| Investments in debt obligations | ||
| Investments in other debt obligations | 1,124,498,738.94 | 454,822,905.25 |
| Long-term receivables | ||
| Long-term equity investments | 2,561,988,701.78 | 2,502,623,981.06 |
| Item | 30 June 2024 | 1 January 2024 |
| Investments in other equity instruments | 634,332,982.60 | 659,684,177.55 |
| Other non-current financial assets | ||
| Investment property | 45,659,514.37 | 47,163,026.83 |
| Fixed assets | 836,040,870.57 | 651,197,430.25 |
| Construction in progress | 55,054,639.18 | 205,106,029.03 |
| Productive living assets | ||
| Oil and gas assets | ||
| Right-of-use assets | 5,134,011.70 | 5,082,521.44 |
| Intangible assets | 59,236,789.26 | 93,932,977.96 |
| Including: data resources | ||
| Development costs | ||
| Including: data resources | ||
| Goodwill | ||
| Long-term prepaid expense | 22,824,457.66 | 29,727,301.65 |
| Deferred income tax assets | 38,868,999.60 | 36,285,162.26 |
| Other non-current assets | 93,456,548.50 | 48,331,060.62 |
| Total non-current assets | 5,477,096,254.16 | 4,733,956,573.90 |
| Total assets | 8,714,758,938.76 | 8,566,924,020.13 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Held-for-trading financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | 907,228,805.34 | 982,735,414.37 |
| Accounts payable | 1,043,067,777.80 | 977,444,406.30 |
| Advances from customers | ||
| Contract liabilities | 63,423,644.02 | 145,086,858.16 |
| Employee benefits payable | 82,707,806.22 | 64,958,645.43 |
| Taxes payable | 31,796,289.03 | 20,946,142.07 |
| Other payables | 593,057,848.13 | 324,137,191.03 |
| Including: Interest payable | ||
| Dividends payable | 184,293,387.60 | |
| Liabilities directly associated with assets held for sale | ||
| Current portion of non-current liabilities | 4,949,546.08 | 1,377,403.64 |
| Other current liabilities | 96,594,079.44 | 82,802,283.98 |
| Total current liabilities | 2,822,825,796.06 | 2,599,488,344.98 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Lease liabilities | 262,647.65 | 3,705,117.80 |
| Long-term payables | ||
| Long-term employee benefits payable | ||
| Provisions | ||
| Deferred income | ||
| Deferred income tax liabilities | 58,942,641.95 | 63,366,691.06 |
| Other non-current liabilities | ||
| Total non-current liabilities | 59,205,289.60 | 67,071,808.86 |
| Total liabilities | 2,882,031,085.66 | 2,666,560,153.84 |
| Owners’ equity: | ||
| Share capital | 1,548,778,230.00 | 1,548,778,230.00 |
| Other equity instruments |
| Item | 30 June 2024 | 1 January 2024 |
| Including: Preferred shares | ||
| Perpetual bonds | ||
| Capital reserves | 909,058,541.44 | 909,058,541.44 |
| Less: Treasury stock | 82,165,144.15 | 82,165,144.15 |
| Other comprehensive income | 338,309,557.35 | 359,858,073.06 |
| Specific reserve | 3,493,553.56 | 897,781.74 |
| Surplus reserves | 339,248,748.30 | 339,248,748.30 |
| Retained earnings | 2,776,004,366.60 | 2,824,687,635.90 |
| Total owners’ equity | 5,832,727,853.10 | 5,900,363,866.29 |
| Total liabilities and owners’ equity | 8,714,758,938.76 | 8,566,924,020.13 |
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
3. Consolidated Income Statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Revenue | 4,784,545,767.42 | 4,566,062,729.02 |
| Including: Operating revenue | 4,784,545,767.42 | 4,566,062,729.02 |
| Interest income | ||
| Insurance premium income | ||
| Handling charge and commission income | ||
| 2. Costs and expenses | 4,531,278,513.54 | 4,299,771,626.28 |
| Including: Cost of sales | 3,861,658,076.61 | 3,733,474,828.88 |
| Interest expense | ||
| Handling charge and commission expense | ||
| Surrenders | ||
| Net insurance claims paid | ||
| Net amount provided as insurance contract reserve | ||
| Expenditure on policy dividends | ||
| Reinsurance premium expense | ||
| Taxes and surcharges | 37,916,939.23 | 37,443,299.13 |
| Selling expense | 175,810,829.30 | 131,921,130.00 |
| Administrative expense | 226,332,962.51 | 200,946,085.42 |
| R&D expense | 260,165,950.63 | 226,148,905.26 |
| Finance costs | -30,606,244.74 | -30,162,622.41 |
| Including: Interest expense | 11,047,212.70 | 14,255,244.44 |
| Interest income | 25,938,447.85 | 24,520,047.73 |
| Add: Other income | 60,151,413.19 | 27,389,992.05 |
| Return on investment (“-” for loss) | 38,017,499.24 | 22,449,570.63 |
| Including: Share of profit or loss of joint ventures and associates | 1,444,720.72 | 1,186,031.53 |
| 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) | -601,447.40 | -22,153,522.56 |
| Credit impairment loss (“-” for loss) | -38,270,808.58 | -18,947,421.03 |
| Item | H1 2024 | H1 2023 |
| Asset impairment loss (“-” for loss) | -36,958,804.89 | -16,390,888.73 |
| Asset disposal income (“-” for loss) | -99,108.79 | 110,475.52 |
| 3. Operating profit (“-” for loss) | 275,505,996.65 | 258,749,308.62 |
| Add: Non-operating income | 3,054,859.55 | 2,440,914.48 |
| Less: Non-operating expense | 486,217.43 | 4,780,570.32 |
| 4. Profit before tax (“-” for loss) | 278,074,638.77 | 256,409,652.78 |
| Less: Income tax expense | 24,632,382.12 | 31,304,364.49 |
| 5. Net profit (“-” for net loss) | 253,442,256.65 | 225,105,288.29 |
| 5.1 By operating continuity | ||
| 5.1.1 Net profit from continuing operations (“-” for net loss) | 253,442,256.65 | 225,105,288.29 |
| 5.1.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5.2 By ownership | ||
| 5.2.1 Net profit attributable to shareholders of the Company as the parent (“-” for net loss) | 192,229,182.38 | 168,935,232.54 |
| 5.2.1 Net profit attributable to non-controlling interests (“-” for net loss) | 61,213,074.27 | 56,170,055.75 |
| 6. Other comprehensive income, net of tax | -22,766,075.54 | -49,800,869.38 |
| Attributable to owners of the Company as the parent | -22,203,388.92 | -50,939,650.35 |
| 6.1 Items that will not be reclassified to profit or loss | -21,548,515.71 | -52,237,967.85 |
| 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 | -21,548,515.71 | -52,237,967.85 |
| 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 | -654,873.21 | 1,298,317.50 |
| 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 Other comprehensive income arising from the reclassification of financial assets | ||
| 6.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 6.2.5 Reserve for cash flow hedges | ||
| 6.2.6 Differences arising from the translation of foreign currency-denominated financial statements | -654,873.21 | 1,298,317.50 |
| 6.2.7 Other | ||
| Attributable to non-controlling interests | -562,686.62 | 1,138,780.97 |
| 7. Total comprehensive income | 230,676,181.11 | 175,304,418.91 |
| Attributable to owners of the Company as the parent | 170,025,793.46 | 117,995,582.19 |
| Attributable to non-controlling | 60,650,387.65 | 57,308,836.72 |
| Item | H1 2024 | H1 2023 |
| interests | ||
| 8. Earnings per share | ||
| 8.1 Basic earnings per share | 0.1252 | 0.1252 |
| 8.2 Diluted earnings per share | 0.1241 | 0.1240 |
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: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
4. Income Statement of the Company as the Parent
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Operating revenue | 1,799,801,338.92 | 1,767,119,810.22 |
| Less: Cost of sales | 1,377,838,357.05 | 1,475,930,147.80 |
| Taxes and surcharges | 15,272,851.85 | 14,118,151.89 |
| Selling expense | 111,657,013.75 | 76,993,414.88 |
| Administrative expense | 98,157,531.70 | 77,700,935.31 |
| R&D expense | 83,461,134.06 | 72,152,520.98 |
| Finance costs | -18,473,106.96 | -23,728,727.28 |
| Including: Interest expense | 205,821.60 | 3,685,018.81 |
| Interest income | 8,056,174.38 | 7,478,589.21 |
| Add: Other income | 11,207,995.85 | 1,095,070.80 |
| Return on investment (“-” for loss) | 38,136,678.31 | 27,748,972.71 |
| Including: Share of profit or loss of joint ventures and associates | 1,444,720.72 | 1,186,031.53 |
| 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) | 99,400.00 | -23,059,475.00 |
| Credit impairment loss (“-” for loss) | -22,899,921.83 | -9,630,073.47 |
| Asset impairment loss (“-” for loss) | -5,911,919.35 | -1,814,506.09 |
| Asset disposal income (“-” for loss) | ||
| 2. Operating profit (“-” for loss) | 152,519,790.45 | 68,293,355.59 |
| Add: Non-operating income | 1,706,418.89 | 36,865.24 |
| Less: Non-operating expense | 127,113.54 | 745,254.33 |
| 3. Profit before tax (“-” for loss) | 154,099,095.80 | 67,584,966.50 |
| Less: Income tax expense | 18,488,977.50 | 3,301,961.09 |
| 4. Net profit (“-” for net loss) | 135,610,118.30 | 64,283,005.41 |
| 4.1 Net profit from continuing operations (“-” for net loss) | 135,610,118.30 | 64,283,005.41 |
| 4.2 Net profit from discontinued operations (“-” for net loss) | ||
| 5. Other comprehensive income, net of tax | -21,548,515.71 | -52,237,967.85 |
| 5.1 Items that will not be reclassified to profit or loss | -21,548,515.71 | -52,237,967.85 |
| 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 |
| Item | H1 2024 | H1 2023 |
| loss under the equity method | ||
| 5.1.3 Changes in the fair value of investments in other equity instruments | -21,548,515.71 | -52,237,967.85 |
| 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 investments in other debt obligations | ||
| 5.2.3 Other comprehensive income arising from the reclassification of financial assets | ||
| 5.2.4 Credit impairment allowance for investments in other debt obligations | ||
| 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 | 114,061,602.59 | 12,045,037.56 |
| 7. Earnings per share | ||
| 7.1 Basic earnings per share | ||
| 7.2 Diluted earnings per share |
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
5. Consolidated Cash Flow Statement
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 4,381,995,484.08 | 3,850,932,261.31 |
| Net increase in customer deposits and interbank deposits | ||
| 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, 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 | 82,383,727.52 | 100,132,103.39 |
| Cash generated from other operating activities | 119,388,419.41 | 141,107,593.13 |
| Subtotal of cash generated from operating activities | 4,583,767,631.01 | 4,092,171,957.83 |
| Item | H1 2024 | H1 2023 |
| Payments for commodities and services | 3,124,222,860.48 | 2,663,359,134.35 |
| Net increase in loans and advances to customers | ||
| Net increase in deposits in the 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 | 731,015,486.26 | 687,281,073.20 |
| Taxes paid | 151,177,949.87 | 204,166,141.70 |
| Cash used in other operating activities | 192,758,289.79 | 149,496,551.38 |
| Subtotal of cash used in operating activities | 4,199,174,586.40 | 3,704,302,900.63 |
| Net cash generated from/used in operating activities | 384,593,044.61 | 387,869,057.20 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 305,000,000.00 | 190,981,292.12 |
| Return on investment | 24,056,243.57 | 22,659,407.23 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 22,544,055.06 | 1,402,000.00 |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | ||
| Subtotal of cash generated from investing activities | 351,600,298.63 | 215,042,699.35 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 159,583,095.03 | 109,147,876.06 |
| Payments for investments | 1,024,000,000.00 | 110,000,000.00 |
| Net increase in pledged loans granted | ||
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 360,759.99 | |
| Subtotal of cash used in investing activities | 1,183,583,095.03 | 219,508,636.05 |
| Net cash generated from/used in investing activities | -831,982,796.40 | -4,465,936.70 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Including: Capital contributions by non-controlling interests to subsidiaries | ||
| Borrowings raised | 200,111,329.57 | 126,598,725.21 |
| Cash generated from other financing activities | 7,224,809.91 | 381,437.71 |
| Subtotal of cash generated from financing activities | 207,336,139.48 | 126,980,162.92 |
| Repayment of borrowings | 136,959,822.56 | 323,893,000.00 |
| Interest and dividends paid | 39,360,714.14 | 160,367,407.65 |
| Including: Dividends paid by subsidiaries to non-controlling interests | 29,139,436.44 | 30,294,736.68 |
| Cash used in other financing activities | 11,501,309.43 | 2,303,428.02 |
| Subtotal of cash used in financing activities | 187,821,846.13 | 486,563,835.67 |
| Net cash generated from/used in financing activities | 19,514,293.35 | -359,583,672.75 |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 14,380,245.23 | 4,930,576.64 |
| Item | H1 2024 | H1 2023 |
| 5. Net increase in cash and cash equivalents | -413,495,213.21 | 28,750,024.39 |
| Add: Cash and cash equivalents, beginning of the period | 3,101,252,943.88 | 1,945,971,307.26 |
| 6. Cash and cash equivalents, end of the period | 2,687,757,730.67 | 1,974,721,331.65 |
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
6. Cash Flow Statement of the Company as the Parent
Unit: RMB
| Item | H1 2024 | H1 2023 |
| 1. Cash flows from operating activities: | ||
| Proceeds from sale of commodities and rendering of services | 1,714,147,588.24 | 1,496,145,578.96 |
| Tax rebates | 37,731,938.65 | 53,498,627.75 |
| Cash generated from other operating activities | 39,430,747.84 | 33,751,986.68 |
| Subtotal of cash generated from operating activities | 1,791,310,274.73 | 1,583,396,193.39 |
| Payments for commodities and services | 1,212,273,623.36 | 1,035,027,746.06 |
| Cash paid to and for employees | 231,944,514.55 | 232,728,601.56 |
| Taxes paid | 59,269,827.89 | 35,941,134.26 |
| Cash used in other operating activities | 68,770,731.65 | 56,041,082.96 |
| Subtotal of cash used in operating activities | 1,572,258,697.45 | 1,359,738,564.84 |
| Net cash generated from/used in operating activities | 219,051,577.28 | 223,657,628.55 |
| 2. Cash flows from investing activities: | ||
| Proceeds from disinvestment | 100,000,000.00 | |
| Return on investment | 24,016,123.90 | 27,483,617.76 |
| Net proceeds from the disposal of fixed assets, intangible assets and other long-lived assets | 22,433,746.58 | |
| Net proceeds from the disposal of subsidiaries and other business units | ||
| Cash generated from other investing activities | 35,000,000.00 | |
| Subtotal of cash generated from investing activities | 81,449,870.48 | 127,483,617.76 |
| Payments for the acquisition of fixed assets, intangible assets and other long-lived assets | 27,169,498.35 | 11,143,401.81 |
| Payments for investments | 714,920,000.00 | |
| Net payments for the acquisition of subsidiaries and other business units | ||
| Cash used in other investing activities | 178,883,363.61 | |
| Subtotal of cash used in investing activities | 920,972,861.96 | 11,143,401.81 |
| Net cash generated from/used in investing activities | -839,522,991.48 | 116,340,215.95 |
| 3. Cash flows from financing activities: | ||
| Capital contributions received | ||
| Borrowings raised | ||
| Cash generated from other financing activities | ||
| Subtotal of cash generated from financing activities | ||
| Repayment of borrowings | 178,893,000.00 |
| Item | H1 2024 | H1 2023 |
| Interest and dividends paid | 119,898,677.90 | |
| Cash used in other financing activities | ||
| Subtotal of cash used in financing activities | 298,791,677.90 | |
| Net cash generated from/used in financing activities | -298,791,677.90 | |
| 4. Effect of foreign exchange rates changes on cash and cash equivalents | 9,378,014.06 | 1,541,521.95 |
| 5. Net increase in cash and cash equivalents | -611,093,400.14 | 42,747,688.55 |
| Add: Cash and cash equivalents, beginning of the period | 1,610,082,668.66 | 461,062,144.20 |
| 6. Cash and cash equivalents, end of the period | 998,989,268.52 | 503,809,832.75 |
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
7. Consolidated Statements of Changes in Owners’ Equity
H1 2024
Unit: RMB
| Item | H1 2024 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balance as at the end of the period of prior year | 1,548,778,230.00 | 914,336,325.66 | 82,165,144.15 | 360,027,027.59 | 1,213,325.92 | 107,944,679.06 | 3,435,308,364.11 | 6,285,442,808.19 | 3,485,954,680.86 | 9,771,397,489.05 | |||||
| Add: Adjustment for change in accounting policy | |||||||||||||||
| Adjustment for correction of previous error | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the Reporting Period | 1,548,778,230.00 | 914,336,325.66 | 82,165,144.15 | 360,027,027.59 | 1,213,325.92 | 107,944,679.06 | 3,435,308,364.11 | 6,285,442,808.19 | 3,485,954,680.86 | 9,771,397,489.05 | |||||
| 3. Increase/ decrease in the period (“-” for | -22,203 | 3,194,038 | 7,935,794 | -11,073 | 33,697,91 | 22,624,35 | |||||||||
| Item | H1 2024 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| decrease) | ,388.92 | .76 | .78 | ,555.38 | 2.10 | 6.72 | |||||||||
| 3.1 Total comprehensive income | -22,203,388.92 | 192,229,182.38 | 170,025,793.46 | 60,650,387.65 | 230,676,181.11 | ||||||||||
| 3.2 Capital increased and reduced by owners | |||||||||||||||
| 3.2.1 Ordinary shares increased by owners | |||||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | |||||||||||||||
| 3.2.4 Other | |||||||||||||||
| 3.3 Profit distribution | -184,293,387.60 | -184,293,387.60 | -29,139,436.44 | -213,432,824.04 | |||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -184,293,387.60 | -184,293,387.60 | -29,139,436.44 | -213,432,824.04 | |||||||||||
| 3.3.4 | |||||||||||||||
| Item | H1 2024 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| Other | |||||||||||||||
| 3.4 Transfers within owners’ equity | |||||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Loss offset by surplus reserves | |||||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Other | |||||||||||||||
| 3.5 Specific reserve | 3,194,038.76 | 3,194,038.76 | 2,186,960.89 | 5,380,999.65 | |||||||||||
| 3.5.1 Increase in the period | 4,940,359.02 | 4,940,359.02 | 3,049,660.90 | 7,990,019.92 | |||||||||||
| 3.5.2 Used in the period | 1,746,320.26 | 1,746,320.26 | 862,700.01 | 2,609,020.27 | |||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance as at the end of | 1,548, | 914,33 | 82,165 | 337,82 | 4,407, | 107,94 | 3,443, | 6,274, | 3,519, | 9,794, | |||||
| Item | H1 2024 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| the Reporting Period | 778,230.00 | 6,325.66 | ,144.15 | 3,638.67 | 364.68 | 4,679.06 | 244,158.89 | 369,252.81 | 652,592.96 | 021,845.77 | |||||
H1 2023
Unit: RMB
| Item | H1 2023 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| 1. Balance as at the end of the period of prior year | 1,361,994,647.00 | 7,245,971.54 | 82,165,144.15 | 498,141,018.70 | 91,359,027.15 | 3,296,490,575.52 | 5,173,066,095.76 | 3,427,280,735.85 | 8,600,346,831.61 | ||||||
| Add: Adjustment for change in accounting policy | -54,747.02 | -54,747.02 | -47,032.17 | -101,779.19 | |||||||||||
| Adjustment for correction of previous error | |||||||||||||||
| Other adjustments | |||||||||||||||
| 2. Balance as at the beginning of the Reporting Period | 1,361,994,647.00 | 7,245,971.54 | 82,165,144.15 | 498,141,018.70 | 91,359,027.15 | 3,296,435,828.50 | 5,173,011,348.74 | 3,427,233,703.68 | 8,600,245,052.42 | ||||||
| 3. Increase/ decrease in the period (“-” for decrease) | -50,939,650.35 | 34,035,767.84 | -16,903,882.51 | 27,014,100.04 | 10,110,217.53 | ||||||||||
| 3.1 Total comprehensive income | -50,939 | 168,935,2 | 117,995,5 | 57,308,83 | 175,304,4 | ||||||||||
| Item | H1 2023 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| ,650.35 | 32.54 | 82.19 | 6.72 | 18.91 | |||||||||||
| 3.2 Capital increased and reduced by owners | |||||||||||||||
| 3.2.1 Ordinary shares increased by owners | |||||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | |||||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | |||||||||||||||
| 3.2.4 Other | |||||||||||||||
| 3.3 Profit distribution | -134,899,464.70 | -134,899,464.70 | -30,294,736.68 | -165,194,201.38 | |||||||||||
| 3.3.1 Appropriation to surplus reserves | |||||||||||||||
| 3.3.2 Appropriation to general reserve | |||||||||||||||
| 3.3.3 Appropriation to owners (or shareholders) | -134,899,464.70 | -134,899,464.70 | -30,294,736.68 | -165,194,201.38 | |||||||||||
| 3.3.4 Other | |||||||||||||||
| 3.4 Transfers within owners’ equity | |||||||||||||||
| 3.4.1 | |||||||||||||||
| Item | H1 2023 | ||||||||||||||
| Equity attributable to owners of the Company as the parent | Non-controlling interests | Total owners’ equity | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | General reserve | Retained earnings | Other | Subtotal | |||||
| Preferred shares | Perpetual bonds | Other | |||||||||||||
| Increase in capital (or share capital) from capital reserves | |||||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | |||||||||||||||
| 3.4.3 Loss offset by surplus reserves | |||||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | |||||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | |||||||||||||||
| 3.4.6 Other | |||||||||||||||
| 3.5 Specific reserve | |||||||||||||||
| 3.5.1 Increase in the period | |||||||||||||||
| 3.5.2 Used in the period | |||||||||||||||
| 3.6 Other | |||||||||||||||
| 4. Balance as at the end of the Reporting Period | 1,361,994,647.00 | 7,245,971.54 | 82,165,144.15 | 447,201,368.35 | 91,359,027.15 | 3,330,471,596.34 | 5,156,107,466.23 | 3,454,247,803.72 | 8,610,355,269.95 | ||||||
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang Yuefei
8. Statements of Changes in Owners’ Equity of the Company as the Parent
H1 2024
Unit: RMB
| Item | H1 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balance as at the end of the period of prior year | 1,548,778,230.00 | 909,058,541.44 | 82,165,144.15 | 359,858,073.06 | 897,781.74 | 339,248,748.30 | 2,824,687,635.90 | 5,900,363,866.29 | ||||
| Add: Adjustment for change in accounting policy | ||||||||||||
| Adjustment for correction of previous error | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the Reporting Period | 1,548,778,230.00 | 909,058,541.44 | 82,165,144.15 | 359,858,073.06 | 897,781.74 | 339,248,748.30 | 2,824,687,635.90 | 5,900,363,866.29 | ||||
| 3. Increase/ decrease in the period (“-” for decrease) | -21,548,515.71 | 2,595,771.82 | -48,683,269.30 | -67,636,013.19 | ||||||||
| 3.1 Total comprehensive income | -21,548,515.71 | 135,610,118.30 | 114,061,602.59 | |||||||||
| 3.2 Capital increased and reduced by owners | ||||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | ||||||||||||
| Item | H1 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | -184,293,387.60 | -184,293,387.60 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -184,293,387.60 | -184,293,387.60 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | 2,595,771.82 | 2,595,771.82 | ||||||||||
| Item | H1 2024 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 3.5.1 Increase in the period | 4,106,091.11 | 4,106,091.11 | ||||||||||
| 3.5.2 Used in the period | 1,510,319.29 | 1,510,319.29 | ||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the Reporting Period | 1,548,778,230.00 | 909,058,541.44 | 82,165,144.15 | 338,309,557.35 | 3,493,553.56 | 339,248,748.30 | 2,776,004,366.60 | 5,832,727,853.10 | ||||
H1 2023
Unit: RMB
| Item | H1 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| 1. Balance as at the end of the period of prior year | 1,361,994,647.00 | 7,426,635.62 | 82,165,144.15 | 498,788,284.79 | 322,663,096.39 | 2,810,316,233.41 | 4,919,023,753.06 | |||||
| Add: Adjustment for change in accounting policy | ||||||||||||
| Adjustment for correction of previous error | ||||||||||||
| Other adjustments | ||||||||||||
| 2. Balance as at the beginning of the Reporting Period | 1,361,994,647.00 | 7,426,635.62 | 82,165,144.15 | 498,788,284.79 | 322,663,096.39 | 2,810,316,233.41 | 4,919,023,753.06 | |||||
| 3. Increase/ decrease in the period (“-” for decrease) | -52,237,967.85 | -70,616,459.29 | -122,854,427.14 | |||||||||
| 3.1 Total comprehensive income | -52,237,967.85 | 64,283,005.41 | 12,045,037.56 | |||||||||
| 3.2 Capital increased and reduced | ||||||||||||
| Item | H1 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| by owners | ||||||||||||
| 3.2.1 Ordinary shares increased by owners | ||||||||||||
| 3.2.2 Capital increased by holders of other equity instruments | ||||||||||||
| 3.2.3 Share-based payments included in owners’ equity | ||||||||||||
| 3.2.4 Other | ||||||||||||
| 3.3 Profit distribution | -134,899,464.70 | -134,899,464.70 | ||||||||||
| 3.3.1 Appropriation to surplus reserves | ||||||||||||
| 3.3.2 Appropriation to owners (or shareholders) | -134,899,464.70 | -134,899,464.70 | ||||||||||
| 3.3.3 Other | ||||||||||||
| 3.4 Transfers within owners’ equity | ||||||||||||
| 3.4.1 Increase in capital (or share capital) from capital reserves | ||||||||||||
| 3.4.2 Increase in capital (or share capital) from surplus reserves | ||||||||||||
| 3.4.3 Loss offset by surplus reserves | ||||||||||||
| 3.4.4 Changes in defined | ||||||||||||
| Item | H1 2023 | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Less: Treasury stock | Other comprehensive income | Specific reserve | Surplus reserves | Retained earnings | Other | Total owners’ equity | |||
| Preferred shares | Perpetual bonds | Other | ||||||||||
| benefit schemes transferred to retained earnings | ||||||||||||
| 3.4.5 Other comprehensive income transferred to retained earnings | ||||||||||||
| 3.4.6 Other | ||||||||||||
| 3.5 Specific reserve | ||||||||||||
| 3.5.1 Increase in the period | ||||||||||||
| 3.5.2 Used in the period | ||||||||||||
| 3.6 Other | ||||||||||||
| 4. Balance as at the end of the Reporting Period | 1,361,994,647.00 | 7,426,635.62 | 82,165,144.15 | 446,550,316.94 | 322,663,096.39 | 2,739,699,774.12 | 4,796,169,325.92 | |||||
Legal representative: Wan Shan Chief Financial Officer: Tang QionglanPerson-in-charge of the Company’s accounting organ: Liang YuefeiIII Company profile
(I) Basic informationFoshan Electrical and Lighting Co., Ltd. (hereinafter referred to as “the Company”), a joint-stock limitedcompany jointly founded by Foshan Electrical and Lighting Company, Nanhai Wuzhuang Color Glazed BrickField, and Foshan Poyang Printing Industrial Co. on 20 October 1992 by raising funds under the approval ofYGS (1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in StockSystem of Guangdong Province and the Economic System Reform Commission of Guangdong Province, is anenterprise with its shares held by both the corporate and the natural persons. As approved by China SecuritiesRegulatory Commission with Document (1993) No. 33, the Company publicly issued 19.3 million shares ofsocial public shares (A shares) to the public in October 1993, and was listed in Shenzhen Stock Exchange fortrade on 23 November 1993. The Company was approved to issue 50,000,000 B shares on 23 July 1995. And,
as approved to change into a foreign-invested stock limited company on 26 August 1996 by (1996) WJMZEHZNo. 466 Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’sRepublic of China. On 11 December 2000, as approved by China Securities Regulatory Commission with ZJGSZi [2000] No. 175 Document, the Company additionally issued 55,000,000 A shares. At approved by theShareholders’ General Meeting 2006, 2007, 2008, 2014 and 2017 the Company implemented the plan ofcapitalization of capital reserve, after the transfer, the registered capital of the Company has increased toRMB1,399,346,154.00. The Company held the 26th Meeting of the 9th Board of Directors on 14 January 2022,where the Proposal on Cancelling Some Shares of the Company's Repurchase Special Securities Account wasdeliberated and adopted. The repurchased 13 million A shares were used for the equity incentive plan. Theremaining 18,952,995 A shares and the repurchased 18,398,512 B shares, totaling 37,351,507 shares, were allderegistered. On 8 February 2022, it was confirmed by Shenzhen Branch of CSDC that the number ofrepurchased public shares canceled this time was 37,351,507, accounting for 2.67% of the total share capital ofthe Company before the cancellation, including 18,952,995 A shares and 18,398,512 B shares. Upon thecancellation of the shares, the total share capital of the Company was changed from 1,399,346,154 shares to1,361,994,647 shares. The Company's registered capital was changed to RMB1,361,994,647.00. On 14 March2023, the Company held the 39th Meeting of the Ninth Session of the Board of Directors and considered andpassed the Proposal on the Company's Compliance with the Conditions for the Issuance of A Shares to SpecificObjects, and the Board of Directors agreed that the Company should apply for the issuance of shares to specificobjects to the Shenzhen Stock Exchange (''SZSE''). According to the resolutions passed at the 39th Meeting ofthe Ninth Board of Directors and the First Extraordinary General Meeting of 2023, the Company applied for theissuance of ordinary shares (A shares) not exceeding 30% of the total share capital, i.e., not exceeding408,598,394 shares to specific investors, and 186,783,583 shares were actually issued. After the issuance ofshares, the total share capital of the Company changed from 1,361,994,647 shares to 1,548,778,230 shares, andthe registered capital of the Company changed to RMB One Billion, Five Hundred and Forty-eight Million,Seven Hundred and Seventy-eight Thousand, Two Hundred and Thirty (RMB1,548,778,230.00).Credibility code of the Company: 91440000190352575W.Legal representative: Mr. Wan ShanCorporate domicile: No. 64, Fenjiang North Road, Chancheng District, Foshan, Guangdong ProvinceOffice address: No. 8, Zhihui Road, Chancheng District, Foshan, Guangdong Province
Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): lighting products,electro technical products, vehicle lamp products, epitaxy and chip products, LED packaging and componentproducts, trade and other products.The business term of the Company is long-term, which was calculated from the date of issuance of License ofBusiness Corporation.(II) Authorized issuer and date of approval of the financial reportThe Financial Report was approved and authorized for issue by the Board of Directors on 30 August 2024.(III) Consolidation scope of financial statementsThe consolidation scope of the financial statement during the Reporting Period including the Company and FSLChanchang Optoelectronics Co., Ltd. ( referred to as “Chanchang Company”), Foshan Taimei Times Lamp Co.,Ltd. ( referred to as “Taimei Company”), Nanjing Fozhao Lighting Components Co., Ltd. ( referred to as“Nanjing Fozhao”), FSL (Xinxiang) Lighting Co., Ltd. ( referred to as “Xinxiang Company”), Foshan FozhaoZhicheng Technology Co., Ltd. ( referred to as “Zhicheng Company”), FSL Zhida Electric Technology Co., Ltd(referred to as “Zhida Company”), Foshan Hortilite Optoelectronics Co.,Ltd. (referred to as “HortiliteCompany”), Fozhao (Hainan) Technology Co., Ltd. (referred to as “Hainan Technology”), Foshan Kelian NewEnergy Technology Co., Ltd. (referred to as “Foshan Kelian”), Nanning Liaowang Auto Lamp Co., Ltd.(referred to as “Nanning Liaowang”), Foshan NationStar Optoelectronics Co., Ltd. (referred to as “NationStarOptoelectronics”), Foshan Sigma Venture Capital Co., Ltd. (referred to as “Sigma”) and Fozhao Huaguang(Maoming) Technology Co., Ltd. (referred to as “Huaguang Maoming”) in total 13 subsidiaries and LiuzhouGuige Lighting Technology Co., Ltd. (referred to as “Liuzhou Lighting”), Liuzhou Guige ForeshineTechnology Co., Ltd. (referred to as “Liuzhou Foreshine”), Chongqing Guinuo Lighting Technology Co., Ltd.(referred to as “Chongqing Guinuo”), Qingdao Guige Lighting Technology Co., Ltd. (referred to as “QingdaoLighting”), Indonesia Liaowang Auto Lamp Co., Ltd. (referred to as “Indonesia Liaowang”), Foshan NationStarElectronic Manufacturing Co., Ltd. (referred to as “Guoxing Electronic”), Foshan NationStar SemiconductorCo., Ltd. (referred to as “NationStar Semiconductor”), Nanyang Baoli Vanadium Industry Co., Ltd. (referred toas “Baoli Vanadium Industry”), Guangdong New Electronic Information Ltd. (referred to as “New Electronic”),NationStar Optoelectronics (Germany) Co., Ltd. (referred to as “Germany NationStar”), Guangdong FenghuaSemiconductor Technology Co., Ltd. (referred to as “Fenghua Semiconductor”) and Gaozhou NationStarLighting Technology Co., Ltd. (referred to as “Gaozhou NationStar”) in total 12 sub-subsidiary.
Given that Nanyang Baoli Vanadium Industry Co., Ltd. (Baoli Vanadium) is in a state of non-continuingoperations, the Financial Statements H1 2024 of Baoli Vanadium were formulated at fair value or costswhichever was lower.The scope of consolidation of the financial statements for this period increased by one subsidiary, FozhaoHuaguang (Maoming) Technology Co., Ltd. (referred to as “Huaguang Maoming”) and one sub-subsidiary,Gaozhou NationStar Lighting Technology Co., Ltd. (referred to as “Gaozhou NationStar”), compared with theprevious period. See Note IX "Changes in the scope of consolidation" and Note X "Interests in other entities"for details.
IV Basis for Preparation of Financial Statements
1. Preparation Basis
The Company's financial statements are prepared on a going concern basis, based on transactions and eventsthat actually occur, in accordance with the provisions of the Accounting Standards for Business Enterprises -Basic Guidelines and specific accounting standards issued by the Ministry of Finance (hereinafter referred to as"ASBEs"), as well as the relevant provisions of "No. 15 of the Rules Governing the Preparation of InformationDisclosures by Companies Offering Securities to the Public - General Provisions on Financial Reporting" of theChina Securities Regulatory Commission and on the basis of the significant accounting policies and accountingestimates formulated.
2. Going Concern
The Company has the ability to continue as a going concern for at least 12 months from the end of theReporting Period and there are no material matters affecting its ability to continue as a going concern.V Important Accounting Policies and EstimationsReminders of the specific accounting policies and accounting estimations:
The following significant accounting policies and accounting estimates of the Company have been formulatedin accordance with ASBEs. Operations not mentioned are treated in accordance with the relevant accountingpolicies in the ASBE.
1. Statement of Compliance with the Accounting Standards for Business EnterprisesThe financial statements prepared by the Company are in compliance with the Accounting Standards forBusiness Enterprises, which factually and completely present the Company’s and the consolidated financialpositions, business results and cash flows, as well as other relevant information of the Company.
2. Fiscal Year
A fiscal year starts on January 1
st and ends on December 31
st
according to the Gregorian calendar.
3. Operating Cycle
An operating cycle for the Company is 12 months, which is also the classification criterion for the liquidity ofits assets and liabilities.
4. Recording Currency
Renminbi is the recording currency for the statements of the Company.
5. Methods for Determining materiality standards and selection criteria
?Applicable □ Not applicable
1. Materiality of Financial Statement Items
The Company determines the materiality of financial statement items based on the principle of whether such itemsaffect the users of financial statements making economic decisions in terms of both the nature and amount. Themateriality of financial statement items in terms of the amount is determined based on a certain percentage ofrelevant items in total assets, total liabilities, net assets, operating income, and net profit. The materiality offinancial statement items in terms of nature is based on factors with a significant impact on the Company'sfinancial position and operating results, such as whether they are part of routine operating activities, whether theyresult in changes in profit or loss, and whether they affect regulatory indicators.
2. Materiality of Detailed Items in the Notes to Financial Statement Items
The Company determines the materiality of detailed items in the notes to financial statement items based on themateriality of the financial statement items. This determination is made by considering a certain percentage of thespecific item, or a combination of the amount of the item, taking into account the nature of the specific item.Certain items that are not material to the financial statements may be material to the notes and still requireseparate disclosure in the notes. The materiality criteria related to the notes to the financial statement items are:
| Item | Materiality criteria |
| Significant accounts receivable with bad debt provision separately accrued | The individual amount accounts for more than 10% of the account receivable or bad debt provision, and the amount exceeds RMB10 million. |
| Bad debt provision of accounts receivable collected or reversed with significant amount in this year | Individual amount accounts for more than 10% of the current reversal of bad debt provision, and the amount exceeds RMB10 million. |
| Significant verification of accounts receivable in this year | The individual amount accounts for more than 10% of the account receivable or bad debt provision, and the amount exceeds RMB10 million. |
| Significant construction in progress | The ending balance of an individual construction in progress accounts for more than 10%, and the amount exceeds RMB50 million. |
| Significant accounts payable/other payables over one year | The individual amount accounts for more than 10% of accounts payable over 1 year/other payables, and the amount exceeds RMB10 million. |
| Significant cash flows generated from investment activities | Cash flows of an individual investment accounts for more than 3% of the net assets at the period-end, and the amount exceeds RMB100 million. |
| Significant non-wholly-owned subsidiary | Minority shareholders hold more than 5% interest and any of |
| the items of total assets, net assets, operating revenues and net profits of the subsidiary accounts for more than 10% of the corresponding items in the consolidated financial statements. | |
| Significant joint ventures or associated enterprises | The investment income generated from joint ventures or associated enterprises (The loss is calculated in absolute terms) accounts for more than 10% of the net profit of consolidated financial statements. |
| Significant debt reorganization | The influence of individual amount on net profit exceeds 10%. |
| Significant commitments | The amount of an individual commitment exceeds RMB10 million. |
| Significant contingency | The amount of money involved in cases exceeds RMB10 million. |
6. Accounting Methods for Business Combination Involving Enterprises under and not under the SameControl
1. Business combination under the same control
In case of a long-term equity investment resulting from a business combination under the same control, if theacquirer pays cash, transfers non-cash assets, assumes debts as merger consideration, the share of the Company'sequity of the acquiree obtained on combination date in the carrying value of the financial statements of theultimate controlling party is deemed as an initial investment cost of long-term equity investments. If the acquirerissues equity instruments as consideration for a combination, the total par value of the shares issued is treated asequity. The difference between the initial investment cost of a long-term equity investment and the carryingamount of the consideration for consolidation (or the total nominal value of shares issued) shall be adjusted tocapital surplus; if capital surplus is not sufficient to offset the difference, retained earnings shall be adjusted.
2. Business combination not involving entities under the same control
In case of business combination involving enterprises not under the same control, the combination costs shall bethe total fair values of the assets paid, liabilities incurred or assumed and the equity securities issued on the date ofacquisition by the acquirer in exchange for control on the acquiree. Identifiable assets, liabilities and contingentliabilities of the acquiree acquired in a business combination not under the same control that qualify forrecognition are measured at fair value on the date of acquisition. The acquirer recognizes as goodwill thedifference between the combination costs and the fair value share of the identifiable net assets of the acquireeobtained in the combination. If the combination costs are less than the fair value share of the acquiree'sidentifiable net assets obtained in the combination, the difference between the combination costs still less than thefair value share of the acquiree's identifiable net assets obtained in the combination after review shall be includedin the non-operating revenue for the current period.
7. Criteria for Judging Control and Methods for Preparing Consolidated Financial Statements
1. Judgment criteria for control
The scope of consolidation of the consolidated financial statements is determined on the basis of control. Aninvestee is considered to be controlled if the following three elements are present: the possession of power overthe investee, the enjoyment of variable returns as a result of participating in the relevant activities of theinvestee, and the ability to use the power over the investee to affect the amount of returns.
2. Preparation methods for consolidation financial statements
(1) Unification of accounting policies, balance sheet dates and accounting periods of parent and subsidiarycompaniesIf the accounting policies and accounting period adopted by the subsidiaries are inconsistent with those of theCompany, necessary adjustments are made in accordance with the accounting policies and accounting period ofthe Company when preparing the consolidated financial statements.
(2) Offsetting items in the consolidated financial statements
The consolidated financial statements are based on the financial statements of the Company and its subsidiariesand have been offset by internal transactions that occurred between the Company and its subsidiaries and betweensubsidiaries. The share of owners' equity of subsidiaries that do not belong to the Company is presented asminority interests in the consolidated balance sheet under the item of shareholders' equity as "minority interests".Long-term equity investments held by subsidiaries are deemed as the Company's treasury stock and presented as adeduction from shareholders' equity in the consolidated balance sheet under the item "Less: treasury stock".
(3) Accounting treatment of the acquisition of subsidiaries through consolidationFor subsidiaries acquired through a business combination under common control, the assets, liabilities, operatingresults, and cash flows are included in the consolidated financial statements from the beginning of the period ofconsolidation as if the business combination had occurred at the time the ultimate controlling party began toexercise control; for subsidiaries acquired through a business combination, not under the same control, the fairvalue of the identifiable net assets on the acquisition date is used as the basis for preparing the consolidatedfinancial statements. The financial statements are adjusted based on the fair value of the identifiable net assets onthe acquisition date.
(4) Accounting treatment of disposal of subsidiaries
If a long-term equity investment in a subsidiary is partially disposed of without loss of control, the differencebetween the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of thelong-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date isadjusted to capital surplus in the consolidated financial statements, and retained earnings is adjusted if the capitalsurplus is not sufficient to cover the reduction. If the control over the investee is lost due to the disposal of part ofequity investments, the residual equity are re-measured at fair value on the date of loss of control. The aggregateof the consideration obtained by disposing of the equity and the fair value of the remaining equity less the portionof the net assets of the subsidiary that has been measured, as calculated at the original shareholding proportion,from the acquisition date or combination date is recognized in profit and loss of the current period on investmentsin which the control is lost, and goodwill shall be offset. Other comprehensive income related to the equityinvestments in the former subsidiary shall be included in the return on investment for the current period when theCompany lost the control.
8. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations
1. Classification of joint arrangements
Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not reachedthrough separate entities are classified as joint operations. Separate entities refer to entities with separateidentifiable financial structures, including separate legal entities and entities that do not have legal entity status butare recognized by law. The joint arrangements reaching through separate entities are usually classified as jointventures. Where changes in relevant facts and circumstances result in changes in the rights and obligations of thejoint venture parties in the joint venture arrangement, the joint venture parties shall reassess the classification ofthe joint venture arrangement.
2. Accounting treatment of joint operations
As a participant in a joint operation, the Company recognizes the following items related to its share of interest inthe joint operations. It accounts for them following the relevant Accounting Standards for Business Enterprises:
Recognition of assets or liabilities held separately, and recognition of assets or liabilities held jointly on a sharebasis; recognition of revenue from the sale of the share of output from the joint operation to which it is entitled;recognition of revenue from the joint operation arising from the sale of output on a share basis; and recognition ofexpenses incurred separately, and recognition of expenses incurred in the joint operation on a share basis.If the Company is a participant in a joint operation that does not enjoy joint control, and it owns the underlyingassets of the joint operation and assumes the liabilities related to the joint operation, the accounting treatment ofthe joint operation partner shall be referred to; otherwise, the accounting treatment shall be carried out inaccordance with the relevant enterprise accounting standards.
3. Accounting treatment of joint ventures
If the Company is a joint venture partner, it shall account for its investment in joint ventures following theprovisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity Investments; if theCompany is a non-joint venture partner, it shall account for its investment in such joint ventures based on theextent of its influence on such joint ventures.
9. Recognition Criteria of Cash and Cash Equivalents
Cash, as determined by the Company in preparing the statement of cash flows, represents the Company's cash onhand and deposits that are readily available for disbursement. Cash equivalents identified in the preparation of thestatement of cash flows are investments that are held for a short period of time, are highly liquid, are readilyconvertible to known amounts of cash and are subject to an insignificant risk of change in value.
10. Translation of Transactions and Financial Statements Denominated in Foreign Currencies
1. Conversion of foreign currency business
Foreign currency shall be recognized by employing systematic and reasonable methods, and shall be translatedinto the amount in the functional currency at the exchange rate which is approximate to the spot exchange rate ofthe transaction date. Exchange differences arising from the difference between the spot rate on that date and thespot rate at initial recognition or on the previous balance sheet date are recognized in profit or loss, except forexchange differences on special borrowings in foreign currencies that qualify for capitalization, which arecapitalized in the period in which they are capitalized and charged to the cost of the related assets. Non-monetaryitems measured at historical costs in foreign currencies are still translated at the spot exchange rate on thetransaction date with the amount of standard currency for accounting unchanged. Non-monetary items measuredat fair value in foreign currencies are translated at the spot exchange rate on the date when the fair value isdetermined. The difference between the amount of standard currency for accounting after translation and theoriginal amount shall be treated as a change in fair value (including exchange rate changes) and recognized incurrent profit or loss or in other comprehensive income.
2. Conversion of foreign currency financial statements
If the Company's subsidiaries, joint ventures, and affiliated business use a different bookkeeping base currencyfrom the Company's, they need to convert their foreign currency financial statements before conductingaccounting and preparing consolidated financial statements. The assets and liabilities in the balance sheet shall betranslated at the spot rate on the balance sheet date. All items of owners' equity, except for "undistributed profit",shall be translated at the spot exchange rate at the time of occurrence. Items under revenue and expenses in theincome statement are translated at the spot exchange rate on the transaction date. The exchange difference intranslating foreign operations arising from the translation are shown under other comprehensive income in theowner's equity line in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchangerate on the date of occurrence of the cash flows. The impact of exchange rate changes on cash is presentedseparately in the cash flow statement. When an overseas operation is disposed of, the foreign currency statementtranslation difference related to the overseas operation is transferred to the current profit and loss of the disposal infull or in proportion to the disposal of the overseas operation.
11. Financial Instruments
1. Classification, recognition and measurement of financial instruments
(1) Financial assets
Based on the business model for managing financial assets and the contractual cash flow characteristics offinancial assets, the Company classifies its financial assets into the following three categories:
a) Financial assets are measured at the amortized cost. The business model of the Company for managing suchfinancial assets aims at obtaining contractual cash flow, and the characteristics of contractual cash flow of suchfinancial assets are basically the same as basic borrowing arrangement, namely the cash flow arising on a specific
date, which are solely payments of principal and interest on the principal amount outstanding. Interest income issubsequently recognized on such financial assets on the basis of the effective interest method.b) Financial assets at fair value and changes included in other comprehensive income The business model of theCompany for managing such financial assets aims at receiving contractual cash flow as well as selling, and thecharacteristics of contractual cash flow of such financial assets are basically the same as basic borrowingarrangement. Such financial assets are subsequently measured at fair value with changes recognized in othercomprehensive income, except for interest income, impairment losses or gains calculated in accordance with theeffective interest method and foreign exchange gains or losses recognized in the current profit or loss.c) Financial assets measured at fair value through profit or loss for the current period Financial assets held that arenot classified as at amortized cost and at fair value through other comprehensive income are measured at fairvalue, with gains or losses (including interest and dividend income) recognized in profit or loss for the currentperiod. On initial recognition, a financial asset may be irrevocably designated as financial asset at fair valuethrough profit or loss if the accounting mismatch can be eliminated or reduced. The designation shall not berevoked once made.For instruments in non-business equity instruments, the Company may irrevocably assign such investments asfinancial assets (equity instruments) measured at fair value through other comprehensive income at initialrecognition. The assignment is made based on investments by item, and the relevant investments meet thedefinition of an equity instrument from the issuer's perspective. Such financial assets are subsequently measured atfair value, and except for dividends received (except for the portion which forms part of investment costrecovered), which are recognized in profit or loss, all other related gains and losses are recognized in othercomprehensive income and are not subsequently transferred to current profit or loss.
(2) Financial liabilities
On initial recognition, financial liabilities are classified into the following categories:
a) Financial liabilities measured at fair value through profit and loss for the current period. Such financialliabilities are subsequently measured at fair value, and the resulting gains or losses are recognized in profit or lossfor the current period.b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when thecontinuing involvement approach applies.c) Financial liabilities measured at amortized cost. Such financial liabilities are measured at amortized cost usingthe effective interest method.
2. Method for recognizing the fair value of financial instruments
For a financial instrument with an active market, its fair value is determined by its quoted price in the activemarket; for a financial instrument without an active market, its fair value is determined by valuation techniques.Under limited circumstances, if the information used to determine fair value is insufficient, or if the range ofpossible estimates of fair value is wide and the cost represents the best estimate of fair value within that range, thecost may represent its appropriate estimate of fair value within that range of distribution. The Company uses allinformation available after the initial recognition date about the investee's performance and operations todetermine whether the cost represents fair value.
3. Derecognition of financial instruments
A financial asset is derecognized when one of the following conditions is met: (1) the contractual right to receivecash flows from the financial asset is terminated; (2) the financial asset is transferred and the conditions forderecognition are met.If the present obligation of a financial liability is discharged in whole or in part, the discharged portion isderecognized. If an existing liability is replaced by another financial liability from the same creditor onsubstantially different terms, or the terms of an existing liability are substantially modified, the existing financialliability is derecognized and a new financial liability is recognized simultaneously. All regular acquisitions orsales of financial assets are recognized and derecognized on a transaction date basis.
12. Notes Receivable
The determination methods and accounting methods of notes receivable are detailed in Note V-13. AccountsReceivable.
13. Accounts Receivable
1. Measurement of expected credit loss
The Company uses expected credit losses as the basis for impairment accounting and recognizes an allowance forbad debts for financial assets measured at amortized cost (including accounts receivable, including notesreceivable and accounts receivable), financing receivables, lease receivables, and other receivables.
2. Recognition method for expected credit losses
The general approach to expected credit losses is that: the Company assesses whether the credit risk of therelevant financial instruments has increased significantly since the initial recognition on each balance sheet date,divides the process of credit impairment of financial instruments into three stages, and applies differentaccounting treatments to the impairment of financial instruments at different stages: (1) in the first stage, if thecredit risk of a financial instrument has not increased significantly since the initial recognition, the Company willmeasure the loss reserves according to the amount equivalent to the expected credit losses in the next 12 months,and calculate the interest revenue according to the book balance (i.e., before deducting the provision forimpairment) and the actual interest rate; (2) In the second stage, if the credit risk of a financial instrument hasincreased significantly since the initial recognition but no credit impairment has occurred, the Company willmeasure the loss reserves based on the expected credit loss over the entire life of the financial instrument andcalculates interest revenue based on the carrying amount of the financial instrument and the effective interest rate;
(3) In the third stage, if credit impairment occurs after the initial recognition, the Company will measure the lossreserves based on the expected credit loss over the life of the financial instrument and calculates interest revenuebased on the amortized cost (carrying amount less provision for impairment) and the effective interest rate.The simplified approach for expected credit losses is to always measure the allowance for losses at an amountequal to the expected credit losses throughout their lives.
3. Accounting methods of the expected credit losses
To reflect the changes in credit risk of financial instruments since initial recognition, the Company remeasuresexpected credit losses at each balance sheet date. The resulting increase or reversal amount of the loss provisionshould be recognized as an impairment loss or gain in profit or loss and offset against the carrying amount of thefinancial asset as stated in the balance sheet or included in projected liabilities, depending on the type of financialinstrument (loan commitments or financial guarantee contracts).
4. Method of the provision for losses on the measurement of receivables, lease receivables
(1) Receivables with no significant financing component. For receivables arising from transactions governed byAccounting Standard for Business Enterprises No. 14 - Revenue that do not have a significant financingcomponent, the Company uses a simplified approach whereby the allowance for losses is always measured on thebasis of expected credit losses throughout their lives.
①Accounts receivable of expected credit losses withdrawn individually
| Rationale for a single provision for expected credit losses | Objective evidence of impairment |
| Individual accruals for expected credit losses | The impairment tests are conducted separately for accounts receivable individually accrued. An impairment loss is recognized based on the difference between the present value of future cash flows and their carrying amount, and an expected credit loss is recorded |
②Accounts Receivable with Expected Credit Losses Provision Based on Credit Risk Portfolio
| Portfolio name | Basis for portfolio recognition | Determination method of expected credit losses |
| Business portfolio of general lighting and auto lamps | General lighting, auto lamps and other relevant business with the Company as the parent and the subsidiary Nanning Liaowang as the representative, this portfolio takes the aging of accounts receivable as the credit risk characteristics | Prepare the comparative list between aging of accounts receivable and expected credit loss rate over the entire life and calculate the expected credit loss by consulting historical experience in credit losses, combining current situation and prediction for future economic situation. |
| Business portfolio of LED packaging and components | LED packaging, components and other relevant business with the subsidiary NationStar Optoelectronics as the representative, this portfolio takes the aging of accounts receivable as the credit risk characteristics | Prepare the comparative list between aging of accounts receivable and expected credit loss rate over the entire life and calculate the expected credit loss by consulting historical experience in credit losses, combining current situation and prediction for future economic situation. |
| Internal business portfolio | Related parties and internal transactions | Other methods |
Notes Receivable for which the Expected Credit Loss is Withdrawn by Credit Risk Characteristics
| Portfolio name | Basis for portfolio recognition | Determination method of expected credit losses |
| Portfolio 1 | Bank acceptance bill | Low credit risk with no provision for bad debts |
| Portfolio 2 | Trade acceptance | Prepare the comparative list between aging of accounts receivable and expected credit loss rate over the entire life and calculate the expected credit loss by consulting historical experience in credit losses, combining current situation and prediction for future economic situation. |
The aging analyses are based on their date of entry into the accounts.Among portfolios, expected credit losses accrued by aging analysis:
| Aging | Expected credit loss rate | |
| Business portfolio of general lighting and auto lamps | Business portfolio of LED packaging and components | |
Within 1 year (including 1 year)
| Within 1 year (including 1 year) | 3% | 2% |
| 1 to 2 years | 10% | 10% |
2 to 3 years
| 2 to 3 years | 30% | 30% |
| 3 to 4 years | 50% | 50% |
4 to 5 years
| 4 to 5 years | 80% | 80% |
| Over 5 years | 100% | 100% |
(2) Receivables and lease receivables containing significant financing components.For receivables with significant financing components and lease receivables, the Company measures theprovision for losses in accordance with the general method, i.e., the "three-stage" model. The credit riskcharacteristics grouping, the aging calculation method based on the credit risk characteristics grouping, and thecriteria for determining individual provisioning are consistent with the recognition standards for those withoutfinancing components.
5. Method of measuring loss provision for other financial assets
For financial assets other than those mentioned above, such as debt investments, other debt investments, otherreceivables and long-term receivables other than lease receivables, the Company measures the allowance forlosses in accordance with the general method, i.e. the "three-stage" model.
(1) Categories of bad debt provision according to credit risk characteristics and basis of determinationThe Company divides other receivables into certain credit risk combinations based on the nature of the amounts. Itcalculates expected credit losses based on the combinations, and the basis for determining the combinations is asbelow:
| Portfolio name | Basis for portfolio recognition |
| Porfolio 1: Deposit, security deposit | Based on nature of accounts |
| Porfolio 2: Amounts from related parties | Based on nature of accounts |
| Porfolio 3: Advances on behalf of others | Based on nature of accounts |
(2) Aging calculation method for recognizing credit risk combinations based on agingRefer to the description of receivables with no significant financing components.
(3) Criteria for determining the bad debt provision based on individual items
Refer to the description of receivables with no significant financing components.
14. Accounts Receivable Financing
The determination methods and accounting methods of receivables financing are detailed in Note V-13.Accounts Receivable.
15. Other Receivables
The determination methods and accounting methods of expected credit losses of other receivables is the same asthat of accounts receivable, as detailed in Note V-13. Accounts Receivable.
16. Contract Assets
The Company presents the right to receive consideration for goods or services that have been transferred to thecustomer (and which is dependent on factors other than time-lapse) as a contract asset. The provision forimpairment of contract assets is made with reference to the method of determining expected credit losses in thisnote.Contract assets are categorized into the following portfolios according to credit risk characteristics:
| Portfolio | Determination basis |
| Portfolio 1: General lighting and lamps business portfolio | General lighting, automotive lamps and related businesses represented by the parent company and its subsidiary Nanning Liaowang. This portfolio uses the aging of accounts receivable as the credit risk characteristic. |
| Portfolio 2: LED packaging and components business portfolio | LED packaging, components and other related businesses represented by subsidiary NationStar Optoelectronics. This portfolio uses the aging of accounts receivable as the credit risk characteristic |
| Portfolio 3: Internal business portfolio | This portfolio involves related-party transactions and internal transactions |
17. Inventory
1. Classification of inventories
Inventories refer to the Company's finished goods or commodities for sale held in daily activities, unfinishedgoods in manufacturing process, and materials and supplies consumed in process of manufacturing products orproviding services, etc. Inventories mainly include raw materials, goods in process, materials in transit, finishedgoods, commodities, turnover materials, materials commissioned for processing, etc. Turnover materials includelow-value consumables and packaging materials.
2. Pricing method of issuing inventories
Inventories are valuated at the actual cost of the acquisition, and the inventory costs include procurement costsand processing costs. Inventories are valuated using the weighted average method when being issued.
3. Inventory system of inventories
The perpetual inventory system is adopted for the inventories of the Company.
4. Amortization of low-value consumables and packing materials
The one-off charge-off method is used for low-value consumables and packaging materials.
5. Criteria for Recognizing and Accrual method of provision for decline in value of inventoriesNet realizable value refers to the amount after deducting the cost estimated until completion, estimated sellingexpenses, and relevant taxes from the estimated selling price of the inventory. The Company determines the netrealizable value of inventories based on solid evidence obtained and after taking into consideration the purpose forwhich the inventory is held, and the impact of post-balance sheet events.The net realizable value of finished goods, materials for sale, and other merchandise inventories used directly forsale is determined in the normal course of production and operation as the estimated selling price of suchinventories, less estimated selling expenses, and related taxes.The net realizable value of material inventories subject to processing is determined in the normal course ofproduction operations as the estimated selling price of the finished goods produced, less the estimated costs to beincurred to completion, estimated selling expenses, and related taxes. The Company determines the net realizablevalue of inventories based on solid evidence obtained and after taking into consideration the purpose for which theinventory is held, and the impact of post-balance sheet events.
18. Assets Held for Sale
1. Recognition criteria and accounting treatment for non-current assets classified as held for sale or disposalgroupsA non-current asset or disposal group whose carrying value will be recovered principally through sale rather thanthrough continuing use is classified as held for sale and meets the following conditions: first, it is immediatelyavailable for sale under current conditions based on the customary practice for sales of such assets or disposalgroups in similar transactions; and second, it is highly probable that the sale will occur, i.e., the enterprise hasalready resolved on a plan for the sale and has obtained a firm commitment to purchase, and it is expected that thesale is expected to be completed within one year. The relevant regulations require the approval of the relevant orregulatory authority of the enterprise before the sale shall have been approved.When the Company initially measures or remeasures non-current assets or disposal groups held for sale on thebalance sheet date, if the carrying value is higher than the fair value minus the net amount of the sale costs, thecarrying value will be written down to the net amount of fair value minus the sale costs. The amount written downwill be recognized as asset impairment loss and included in current profit and loss, and provision for impairmentof assets held for sale will be made.The amount of asset impairment loss recognized for disposal groups held for sale shall be offset against thecarrying value of goodwill in the disposal group first, and then against the carrying value of each non-current asset
proportionately according to the proportion of the carrying value of each non-current asset in the disposal group asdefined in the applicable measurement of the "Accounting Standards for Business Enterprises - Non-currentAssets Held for Sale, Disposal Groups and Discontinued Operations".
2. Recognition criteria and presentation of discontinued operations
Discontinued operations is a separately distinguishable component that meets one of the following conditions andthat has been disposed of by the Company or classified by the Company as held for sale: the componentrepresents a separate principal business or a separate principal operating area; the component is part of a relatedprogram of proposed dispositions of a separate principal business or a separate principal operating area; Thecomponent is a subsidiary acquired specifically for resale.The Company presents gains and losses from continuing operations and gains and losses from discontinuedoperations separately in the statement of income. Operating gains and losses, such as impairment losses andreversal amounts for discontinued operations, and gains and losses on disposals are presented as gains and lossesfrom discontinued operations. The revenues, expenses, gross profit, income tax expense (benefit) and net profitfrom discontinued operations, impairment losses recognized on assets or disposal groups of discontinuedoperations and the amount of their reversal, total gain or loss on disposal of discontinued operations, income taxexpense (benefit) and net gain or loss on disposal, net cash flows from operating activities, investing activities andfinancing activities of discontinued operations, and gains and losses from continuing operations and gains andlosses from discontinued operations attributable to owners of the parent company are disclosed in the notes.
19. Investment in Debt Obligations
Not applicable
20. Other Investment in Debt Obligations
The determination methods and accounting methods of other investment in debt obligations are detailed in NoteV-11. Financial Instruments.
21. Long-term Receivables
Not applicable
22. Long-term Equity Investments
1. Judgment criteria for joint control and significant influence
Joint control means that activities that have a significant impact on the return of an arrangement must be decidedupon with the unanimous consent of the participants sharing control, including sales and purchases of goods orservices, management of financial assets, purchases and disposals of assets, research and development activities,and financing activities. Significant influence refers to the condition where an investor holds between 20% to 50%of the voting capital in an investee, generally indicating a significant influence. Or, although less than 20%,having a significant influence when one of the following conditions is met: Representation on the board ofdirectors or similar authority of the investee; participation in the policy-making process of the investee;assignment of management personnel to the investee; reliance of the investee on the technology or technicalinformation of the investee; and major transactions with the investee.
2. Determination of initial investment cost
For long-term equity investments acquired through a business combination, in the case of a business combinationunder the same control, the initial investment cost of the long-term equity investment shall be the share of theowners' equity of the party being combined in the consolidated financial statements of the ultimate controllingparty on the combination date; in the case of a business combination not under the same control, the initialinvestment cost of the long-term equity investment shall be the cost of combination determined on the acquisition
date; for long-term equity investments acquired by paying cash, the initial investment cost is the actual purchaseprice paid; for long-term equity investments acquired by issuing equity securities, the initial investment cost is thefair value of the equity securities issued; for long-term equity investments acquired through debt restructuring, theinitial investment cost is determined in accordance with the relevant provisions of Accounting Standards forBusiness Enterprises No. 12-Debt Restructuring; for long-term equity investments acquired through exchange ofnon-monetary assets, the initial investment cost is determined in accordance with the relevant provisions ofAccounting Standards for Business Enterprises No. 7-Exchange of Non-monetary Assets.
3. Method of subsequent measurement and recognition of profit or loss
Long-term equity investments in which the Company can exercise control over the investees are accounted for bythe cost method, and long-term equity investments in associates and joint ventures are accounted for by the equitymethod. If a portion of the Company's equity investments in affiliates is held indirectly through venture capitalinstitutions, mutual funds, trust companies, or similar entities, including investment-linked funds, regardless ofwhether the above entities have significant influence over this portion of the investment, the Company treats it inaccordance with the relevant provisions of Accounting Standards for Business Enterprises No. 22-Recognitionand Measurement of Financial Instruments and accounts for the remaining portion with the equity method.
23. Investment Properties
Measurement model of investment propertyMeasurement of cost methodDepreciation or amortization methodThe Company's investment property include leased land use rights, leased buildings, and land use rights held andready to be transferred after appreciation. Investment property is initially measured according to cost, and thenmeasured by cost model.The Company uses the composite life depreciation method for buildings leased out of investment properties, andthe specific accounting policies are the same as those for fixed assets. Land use rights leased out of investmentproperties and land use rights held and intended to be transferred after appreciation are amortized through thestraight-line method with the same accounting policies as those for the intangible assets segment.
24. Fixed Assets
(1) Recognition conditions
The fixed assets refer to tangible assets held for production of goods, provision of labour services, lease orbusiness with a service life of over a fiscal year. Recognition is made when the following conditions are met: Theeconomic benefits associated with the fixed-asset will probably flow to the enterprise; the cost of the fixed-assetcan be measured reliably.
(2) Depreciation method
| Category | Depreciation method | Depreciable life | Residual value rate | Annual depreciation rate |
| Houses and buildings | Straight-line depreciation method | 3-36 years | 1%-10% | 31.67%-3.17% |
| Machinery equipment | Straight-line depreciation method | 2-11 years | 1%-10% | 47.50%-8.18% |
| Transportation equipment | Straight-line depreciation method | 5-10 years | 1%-10% | 19.00%-9.50% |
| Electronic equipment | Straight-line depreciation method | 2-8 years | 1%-10% | 47.50%-11.88% |
| Other equipment | Straight-line depreciation method | 5 years | 5%-10% | 19%-18% |
The Company's fixed assets are mainly classified into: buildings and structures, machinery and equipment,electronic equipment, transportation equipment, other equipment, etc. The depreciation method is the averageannual limit method. The service lives and estimated residual values of fixed assets are determined according tothe nature and utilization of each category of fixed assets. At the end of the year, the service lives, estimatedresidual values and depreciation methods of fixed assets are reviewed, and adjustments are made accordingly ifthere are differences from the original estimates. All fixed assets are depreciated, except for fully depreciatedfixed assets that continue to be used and land that is separately accounted for.
25. Construction in Progress
The Company's construction in progress is divided into two types: Construction on a self-operation basis and acontracted basis. The criteria and time point for carrying forward construction in progress to fixed assets arebased on the construction in progress reaching its intended state of use. The standard for determining theintended usable condition shall be one of the following: The physical construction (including installation) of thefixed assets has been fully completed or substantially completed; production or trial operation has beenconducted, and the results show that the assets can operate normally or can steadily produce qualified products,or the results of the trial operation show that they can function normally or operate; the amount of expenditureon the fixed assets constructed is little or almost no longer incurred; the fixed assets acquired have met thedesign or contract requirements, or are substantially consistent with the design or contract requirements.
26. Borrowing Costs
1. Recognition principles for the capitalization of borrowing costs
If the borrowing costs incurred by the Company can be directly attributable to the acquisition, construction orproduction of assets that meet the capitalization conditions, they shall be capitalized and included in the costs ofthe underlying assets; other borrowing costs recognized as costs according to the amount incurred shall beincluded in the profit and loss for the current period. Assets eligible for capitalization refer to assets, such as fixedassets, investment properties, and inventories that require a long period for their acquisition or productionactivities to reach the expected usable or saleable status.
2. Calculation of capitalization amount
The capitalization period refers to the period from when the capitalization of borrowing costs starts to when thecapitalization stops. The period during which capitalization of borrowing costs is suspended is not included.Capitalization of borrowing costs shall be suspended if there is an abnormal interruption in the course ofacquisition or production and the interruption lasts for more than three consecutive months.Borrowing of special borrowings is determined by the interest expense incurred in the period of the specialborrowings, less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or theinvestment income earned by making temporary investments; the appropriation of general borrowings isdetermined by multiplying the weighted average amount of asset expenses over the portion of special borrowingsby the capitalization rate of the general borrowings appropriated, which is the weighted average interest rate ofgeneral borrowings; if there is a discount or premium on borrowings, the amount of discount or premium to be
amortized in each accounting period is determined by the effective interest rate method. The amount of interest isadjusted for each period.The effective interest rate method is a method of calculating the amortized discount or premium or interestexpense on a borrowing based on its effective interest rate. The effective interest rate method calculates theamortized discount or premium or interest expense on a borrowing based on its effective interest rate.
27. Living Assets
Not applicable
28. Oil and Gas Assets
Not applicable
29. Intangible Assets
1. Pricing method of intangible assets
The Company initially measures the intangible assets at cost. For the acquired intangible assets, the actual pricespaid and related expenses shall be regarded as the actual costs. The actual cost of intangible assets invested byinvestors shall be recognized according to the value agreed upon in the investment contract or agreement. In caseof unfair contract or agreement, the actual cost shall be recognized according to the fair value. The cost of self-developed intangible assets shall be the total expenditure incurred before they reach the intended use.
2. Service life and its determination basis, estimation, amortization method, or review procedureIntangible assets with finite service lives are amortized on a straight-line basis over their service lives, and theservice lives and amortization methods of intangible assets are reviewed at the end of the year and adjustedaccordingly if there are differences from the original estimates. Intangible assets with indefinite service lives arenot amortized, but are reviewed at the end of the year for service lives and estimated when there is conclusiveevidence that the service life is finite.The useful life and its determination basis and amortization method of intangible assets with restricted useful life:
| Category | Useful life | Determination basis of useful life | Amortization method |
| Land use right | 20-50 | Duration of land use rights | Method of line |
| Patent use right | 5-20 | Expected number of years of benefit | Method of line |
| Software use right | 3-10 | Expected number of years of benefit | Method of line |
The intangible assets are regarded as intangible assets with uncertain service life if the term during which they canbring economic benefits to the Company is unforeseeable or if their usage period is uncertain. The bases fordetermining of uncertain service life are: The intangible assets come from contractual or other legal rights, but thecontract or laws have no certain stipulations of the service life; the term during which the intangible assets bringeconomic benefits to the Company is still unforeseeable even with consideration of peer status or demonstrationsof related professionals.At the end of each year, the review of service life of intangible assets with uncertain service life mainly adopts themethod of reviewing from lower department to upper department, where departments related to the use ofintangible assets shall conduct the basic review and make assessment of whether the determining basis ofuncertain service life changes.
3. The scope of R&D expenditure collection and the related accounting treatmentThe scope of the Company's R&D expenditures is mainly formulated based on the Company's research anddevelopment projects, which mainly includes: including R&D personnel's employee remuneration, direct input
expenses, depreciation expenses and long-term amortization expenses, design expenses, equipmentcommissioning expenses, amortization expenses of intangible assets, commissioned external research anddevelopment expenses, and other expenses, etc.Expenditures incurred during the research phase of an internal research and development project are recognized inprofit or loss when incurred; expenditures incurred during the development phase that meet the conditions forrecognition as an intangible asset are transferred to intangible asset accounting.Specific criteria for dividing the research phase and development phase of internal research and developmentprojects: The expenditures in internal research and development projects of the Company are classified intoexpenditures in research stage and expenditures in development stage. The expenditures in research stage areincluded in the current profits and losses when incurred. The expenditures in development stage are recognized asintangible assets when meeting the following conditions:
(1) The completion of the intangible assets makes it technically feasible for using or selling;
(2) Having the intention to complete and use or sell the intangible assets;
(3) The way in which an intangible asset generates economic benefits, including the proof that the productsproduced with the intangible assets can be sold in a market or the proof of its usefulness if the intangible assetscan be sold in a market and will be used internally;
(4) Having sufficient technical, financial resources and other resources to support the development of theintangible assets and the ability to use or sell the intangible assets;
(5) Expenditure attributable to the development stage of intangible assets can be measured reliably.The cost of self-developed intangible assets includes the total expenditure incurred after meeting intangible assetsrecognition criterion and before reaching intended use. Expenditures that have been expensed in previous periodsare no longer adjusted.
30. Impairment of Long-term Assets
For long-term assets having the indication of impairment on balance sheet date such as long-term equityinvestments, investment property measured in cost mode, fixed assets, construction in progress, productive livingassets measured in cost mode, oil and gas assets, and intangible assets, the Company shall test the impairment. Ifthe impairment test results indicate that the recoverable amount of the asset is lower than its book value, theimpairment provision shall be made at the difference and included in the impairment loss.The recoverable amount is the higher of the fair value of the asset minus the disposal cost and the present value ofthe expected future cash flow of the asset. The provision for impairment of assets is calculated and recognized onthe basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets, therecoverable amount of the asset group shall be recognized by the asset group to which the asset belongs. The assetgroup is the smallest portfolio of assets that can generate cash inflows independently.Goodwill presented separately in the financial statements shall be tested for impairment every year, whether or notthere is any indication of impairment. The book value of the goodwill shall be apportioned to the asset group orportfolio of asset groups that is expected to benefit from the synergies of the business combination when theimpairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that therecoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is lowerthan its book value. The amount of the impairment loss shall offset the book value of the goodwill apportioned tothe asset group or portfolio of asset groups, and offset the book value of other assets in proportion according to theproportion of the book value of other assets except the goodwill in the asset group or portfolio of asset groups.Once the impairment loss of the above asset is recognized, the portion that the value is restored will not be writtenback in subsequent periods.
31. Long-term Prepaid Expense
Long-term prepaid expense refers to general expenses with the apportioned period over one year (excluding oneyear) that have occurred but are attributable to the current and future periods. Long-term prepaid expense shall beamortized averagely within benefit period. In case of no benefit in the future accounting period, the amortizedvalue of such item that fails to be amortized shall be transferred into the current profits and losses.
32. Contract Liabilities
The Company presents the obligation of transferring goods to or providing services for customers forconsideration received or receivable as a contract liability. The Company presents contract asset and contractliability under the same contract on a net basis.
33. Payroll
Employee benefits refer to all forms of remuneration or compensation given by the Company for servicesrendered by employees or for the termination of employment relationships. Employee benefits mainly includeshort-term benefits, post-employment benefits, termination benefits and other long-term employee benefits.
(1) Accounting treatments for short-term benefits
The short-term compensation actually happened during the accounting period when the active staff offering theservice for the Company should be recognized as liabilities and is included in the current profits and losses exceptfor those required or allowed to be included in the assets cost by the Accounting Standards for BusinessEnterprises. The employee services benefits actually happened in the Company shall be included in the currentprofits and losses or relevant assets cost according to the actual amount. Of which the non-monetary benefitsshould be measured according to the fair value. During the accounting term in which employees provide service,the Company calculates and determines the corresponding payroll amount in accordance with the withdrawalbasis and withdrawal proportion specified in regulations with the social insurance premiums such as medicalinsurance premiums, industrial injury insurance premium and birth insurance premium, housing fund, and thelabour union budget and employee education budget withdrawn in regulations, and then recognizes it as liabilitiesthat are included in the current profits and losses or relevant assets cost.
(2) Accounting treatment of the welfare after demission
The payable and deposit amount calculated according to the defined contribution plan during the accountingperiod when the active staff offering the service for the Company is recognized as liabilities and is included in thecurrent profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shallbe attributable to the period in which the employees provide services based on the formula determined byexpected cumulative welfare unit method and included in current profits and losses or cost of relevant asset.
(3) Accounting treatment of the demission welfare
When offering the demission welfare, the Company shall recognize the payroll liabilities incurred from thedemission welfare on the earlier of the date when the Company could not unilaterally withdraw the demissionwelfare offered by the plan or layoff proposal owing to termination of the labour relationship or the date when theCompany recognizes the cost related to the reorganization of the payment of the demission welfare, and includethe payroll liabilities into the current profits and losses:
(4) Accounting treatment of the welfare of other long-term staffs
The other long-term welfare that the Company offers to the staff, if met with the setting drawing plan, shall bedisposed of according to the relevant setting drawing plan; except for that, net liabilities or net assets of thewelfare of other long-term staff shall be recognized and measured according to the setting drawing plan.
34. Accrued liabilities
The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a currentobligation of the Company, and it is likely to cause any economic benefit to flow out of the enterprise as a resultof performance of the obligation, while the amount of the obligation can be measured in a reliable way. TheCompany conducts the initial measurement in accordance with the best estimate of the necessary expenses for theperformance of the current obligation. If there is a sequent range for the necessary expenses and if all theoutcomes within this range are equally likely to occur, the best estimate shall be determined in accordance withthe midpoint estimate within the range; if the contingencies concern two or more items, the best estimate shall becalculated and determined in accordance with all possible outcomes and the relevant probabilities.Review of the book value of provisions shall be conducted on the balance sheet date. The book value shall beadjusted in accordance with the current best estimate when there is definite evidence indicating that the bookvalue cannot reflect the current best estimate in faithfulness.
35. Share-based Payment
Not applicable
36. Other Financial Instruments such as Preferred Shares and Perpetual BondsNot applicable
37. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement by type of businessThe Company recognizes revenue based on the transaction price apportioned to the performance obligation in acontract when the customer obtains control of the underlying good or service. Obtaining control of related goodsrefers to that customers can control the use of the goods and obtain almost all the economic benefits from thegoods. A performance obligation is a contractual commitment by the Company to transfer a clearly distinguishablecommodity to a customer. The transaction price is the amount of consideration that the Company expects to beentitled to receive as a result of the transfer of the commodity to the customer, excluding amounts collected onbehalf of third parties and amounts that the Company expects to return to the customer.Whether the performance obligation is to be fulfilled within a certain period of time or at a certain point in timedepends on the terms of the contract and the relevant legal provisions. If the performance obligation is fulfilledwithin a certain period of time, the Company recognizes revenue in accordance with the progress of performance.Otherwise, the Company recognizes revenue at a point in time when the customer obtains control of theunderlying asset.The Company determines whether the Company's status is that of a principal or agent when engaging in atransaction based on whether it has control over the goods or services prior to transferring them to the customer. Ifthe Company is able to control the goods or services before transferring them to the customer, the Company is theprincipal responsible party and recognizes revenue based on the total consideration received or receivable.Otherwise, the Company shall recognize revenue as an agent based on the amount of commissions or fees towhich it is expected to be entitled, which shall be determined at the net amount of the total consideration receivedor receivable less the price payable to other related parties, or at the established commission amount or percentage,etc.
Specific principles and measurement methods for revenue recognition by business type: The Company recognizesrevenue from general lighting products, LED packaging and component products, automotive lamp products,trading and other products as follows:
(1) Recognition of domestic sales revenue: Under the conventional settlement mode, the Company has deliveredgoods that have passed inspection to the purchaser as required by the purchaser; the amount of revenue has beendetermined, a sales invoice has been issued and the payment has been received or is expected to be recovered;under the consignment sales settlement mode, the Company recognizes sales revenue when the product is issuedand the settlement notice is issued after the customer inspection is qualified.
(2) Recognition of export sales revenue: The Company has produced goods according to the requirementsstipulated in the sales contract, and completed the export declaration procedures after the goods have passedinspection; products have been loaded on board; the amount of revenue has been determined, an export salesinvoice has been issued, and the payment has been received or is expected to be recovered.Different business models for the same type of business involving different revenue recognition and measurementmethods：None.
38. Contract Costs
Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to fulfil acontract with a customer. Incremental costs of obtaining a contract ("contract acquisition costs") are costs thatwon't have been incurred if the contract is not acquired. The Company recognizes as an asset the incremental costsof obtaining a contract with a customer if it expects to recover those costs.Costs incurred for the performance of a contract that do not fall within the scope of other enterprise accountingstandards, such as inventory, are recognized as an asset as contract performance costs when the followingconditions are simultaneously met: The cost is directly related to a current or anticipated acquisition of a contractand includes direct labour, direct materials, manufacturing overhead (or similar costs), costs explicitly attributableto the user, and other costs incurred solely as a result of that contract; the cost increases the resources available tomeet future performance obligations; and the cost is expected to be recovered.Contract performance costs recognized as assets are included in "Inventory" on the balance sheet if theamortization period at the initial recognition doesn't exceed one year or one normal operating cycle; if theamortization period at the initial recognition is more than one year or one normal operating cycle, they areincluded in "Other non-current assets" on the balance sheet.Contract acquisition cost recognized as assets are included in "Other current assets" on the balance sheet if theamortization period at the initial recognition doesn't exceed one year or one normal operating cycle; if theamortization period at the initial recognition is more than one year or one normal operating cycle, they areincluded in "Other non-current assets" on the balance sheet.The Company amortizes the assets recognized for contract acquisition costs and contract performance costs on thesame basis as the revenue recognition of the merchandise to which the assets relate, and recognizes them in profitor loss for the current period. Assets formed from the incremental cost of acquiring a contract with anamortization period of not more than one year are recognized in profit or loss for the current period when it occurs.If the carrying amount of an asset related to the cost of a contract exceeds the difference between the followingtwo items, the Company makes an allowance for impairment and recognizes an asset impairment loss for theexcess: the remaining consideration expected to be received for the transfer of the merchandise to which the assetrelates; and the estimated costs to be incurred for the transfer of the related merchandise.If the two differences above are higher than the book value of the assets due to the subsequent changes in theimpairment factors in previous periods, the asset impairment provisions set aside should be reversed andrecognized as profit and loss of the current period. However, upon the reversal, the book value of the assets shallnot exceed the book value of the assets on the reversal date, supposing that impairment provisions are not set aside.
39. Government Subsidies
1. Category of and accounting treatment for government subsidies
Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from thegovernment (excluding the capital invested by the government as an equity holder). If a government subsidy is amonetary asset, it shall be measured according to the amount received or receivable. If a government subsidy is anon-monetary asset, it shall be measured at its fair value, and shall be measured at a nominal amount when the fairvalue cannot be obtained reliably.Government subsidies related to the daily activities are included in other income in accordance with the nature ofeconomic business. Government subsidies unrelated to the daily activities are included in non-operating revenue.Government subsidies are recognized as asset-related subsidies when stipulated by government documents to beused for acquisition, construction or otherwise formation long-term assets. Government subsidies without subsidyobject specified by the government document shall be recognized as asset-related subsidies.Government subsidies other than asset-related government subsidies are recognized as government subsidiesrelated to income. Government subsidies related to income used to compensate the relevant costs, expenses orlosses of the Company in the subsequent period shall be recognized as deferred income, and shall be included inthe current profit and loss during the period of confirming the relevant cost, expenses or losses; subsidies used tocompensate the relevant costs, expenses or losses incurred by the Company shall be directly included in thecurrent profits and losses.
2. Recognition time of government subsidies
Government subsidies shall be recognized when the Company satisfies the conditions attached to the governmentsubsidies and is able to receive them. Government subsidies measured according to the receivable amount shall berecognized when there is positive evidence at the end of the period that they can meet the relevant conditionsstipulated by the financial support policies and are expected to receive financial support funds. Other governmentsubsidies other than government subsidies measured by amount receivable are recognized when the Companyactually receives the subsidies.
40. Deferred Income Tax Assets/Deferred Income Tax Liabilities
1. Recognition of deferred income tax
The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordance with theapplicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the differentamount between the book value of assets or liabilities and its tax base (for items not recognized as assets andliabilities, if its tax basis can be determined according to the tax law, the tax basis is recognized as the differentamount).
2. Measurement of deferred income tax
The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset thedeductible temporary differences. On the balance sheet date, deferred income tax assets without recognitionduring the former accounting period shall be recognized if there are definite indications representing that it isprobable to have sufficient taxable income to offset the deductible temporary differences during the future period.If it is likely that sufficient taxable income will not be available to offset the benefit of the deferred income taxassets in the future period, the book value of the deferred income tax assets will be written down.For taxable temporary differences related to the investment in subsidiaries and associated enterprises, the deferredincome tax liabilities are recognized unless the time of temporary differences reversal can be controlled by theCompany and are probably not to be reversed in foreseeable future. For deductible temporary differences relatedto the investment in subsidiaries and associated enterprises, the deferred income tax assets are recognized if thetemporary differences are probably to be reversed in foreseeable future and it is likely to have taxable income tooffset the deductible temporary differences.
3. Basis for netting off deferred income taxes
Deferred income tax assets and deferred income tax liabilities are presented in net amount after offsetting whenthe following conditions are simultaneously met: there is a legal right to settle current income tax assets andcurrent income tax liabilities on a net basis; the deferred income tax assets and deferred income tax liabilities arerelated to income taxes levied by the same tax authority on the same taxable entity or are related to differenttaxable entities, but are not expected to reverse in the future in each of the periods in which the deferred incometax assets and deferred income tax liabilities are material; and the taxable entities involved intend to settle currentincome tax assets and current income tax liabilities on a net basis. However, in each future period in which thedeferred tax assets and deferred tax liabilities are reversed, the taxable entity involved intends to either settle thecurrent income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle theliabilities at the same time.
41. Lease
The Company assesses whether a contract is a lease or contains a lease at the inception date of the contract. Acontract is a lease or contains a lease if one of the parties to the contract has given up the right to control the use ofone or more identified assets for a specified period of time in exchange for consideration.
(1) Accounting treatment for leases as the lessee
1. On the start date of the lease term, the Company deems the right-of-use assets and lease liabilities of all theoperating leases except for the short-term leases and low-value leases, and recognizes the depreciation expenseand interest expense respectively within the lease term.
(1) Right-of-use assets
After the commencement date of the lease term, the Group uses the cost for initial measurement of right-of-useassets. This cost includes the initial measurement amount of the lease liability, lease payments made on or beforethe commencement date of the lease term net of lease incentives, and initial direct cost.If it is reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term,the Company will depreciate the leasehold property over its estimated remaining service life. If it is notreasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term, theCompany will depreciate the leased assets over the lease term or the remaining service life, whichever is shorter.When the recoverable amount is less than the carrying amount of the right-of-use asset, the carrying amount iswritten down to the recoverable amount.
(2) Lease liabilities
The Company initially measures the lease liabilities at the current value of the lease payments outstanding at thestart date of the lease term. Lease payments include fixed payments and payments that are reasonably certain to bemade when the option to purchase or terminate the lease is exercised. Variable lease payments that are notcovered in the measurement of the lease liabilities are included in current profit or loss when actually incurred.The Company uses the interest rate implicit in lease as the rate of discount. If the interest rate implicit in leasecannot be reasonably determined, the Company's incremental borrowing rate is used as the rate of discount.Interest expense on the lease liability for each period during the lease term is calculated on the basis of a fixedperiodic rate, i.e., the discount rate used by the Company or a revised discount rate, and is included in financecosts.
2. Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as a lessee forsimplified treatmentFor short-term leases with a lease term of no exceeding 12 months and leases where the brand-new value of asingle asset is less than RMB40,000, the Company has elected not to recognize right-of-use assets and leaseliabilities, and to charge the related rental expenses to current profit or loss or the cost of the related assets on astraight-line basis for each period during the lease term.
(2) Accounting treatment of leases as the lessor
The Company recognizes leases that transfer substantially all the risks and rewards associated with ownership ofthe leased asset as finance leases at the inception of the lease, and leases other than these are classified asoperating leases.
(1) Accounting treatment of operating leases
Rental income from operating leases is recognized on a straight-line basis over the lease term. Initial directexpenses are capitalized and recognized as current income in instalments over the lease term on the samerecognition basis as rental income, and variable rentals not included in lease receipts are recognized as rentalincome when they are actually incurred.
(2) Accounting treatment of financial lease
On the inception of a lease, the difference between the sum of finance lease receivable and unguaranteed residualvalue and its present value is recognized as unrealised lease income by the Company, which is recognized as leaseincome in each period when the rent is received in the future and the finance lease asset is derecognized. Initialdirect costs are included in the initial recorded value of the finance lease receivable.
42. Other Significant Accounting Policies and Estimates
(1) Safety production expenses
Operating in the electrical machinery and equipment manufacturing industry, the Company has accrued safetyproduction expenses in accordance with the relevant provisions of the Management Measures for the Provisionand Use of Enterprise Production Safety Costs (C.Z. [2022] No. 136) jointly issued by the Ministry of Financeand the Ministry of Emergency Management on 21 November 2022. Safety production expenses, when accrued,are included in costs or current profit or loss of relevant products and in the "Special Reserve" account. Whensafety production expenses are used within the prescribed scope and are operating expenses, they are directly usedto offset the special reserves. If they form fixed assets, the expenses incurred are first aggregated under the"Construction in Progress" account, and when the safety projects are completed and reach the predeterminedusable state, they are recognised as fixed assets. Meanwhile, the special reserves are offset as per the cost offorming fixed assets, and an equivalent amount of accumulated depreciation is recognised. The aforesaid fixedassets will not be depreciated as accrued in the future period.
43. Changes in Main Accounting Policies and Estimates
(1) Change in accounting policies
? Applicable □ Not applicable
Unit: RMB
| Changes to the accounting policies and why | Name of statement item materially affected | Amount affected |
| The Interpretation No. 17 of the Accounting Standards for Business Enterprises (C.K. [2023] No. 21) issued by the Ministry of Finance on 25 October 2023 stipulates contents about “Classification of Current Liabilities and Non-current Liabilities”, “Disclosure of Financing Arrangement of Suppliers” and “Accounting Treatment for Sale-leaseback Transactions”, which shall be implemented since 1 January 2024. | No impact | 0.00 |
(2) Changes in accounting estimates
□Applicable ?Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of the NewAccounting Standards Implemented since 2024
□Applicable ?Not applicable
44. Other
None
VI. Taxes
1. Main Taxes and Tax Rates
| Category of taxes | Tax basis | Tax rate |
| VAT | Sales volume from goods selling or taxable service | 3%, 6%, 9%, 13% |
| Urban maintenance and construction tax | Turnover tax payable | 7%, 5% |
| Enterprise income tax | Taxable income | 11%, 15%, 25% |
| Education surcharge | Turnover tax payable | 3% |
| Local educational surtax | Turnover tax payable | 2% |
Notes of the disclosure situation of the taxpaying bodies with different enterprises income tax rate
| Name | Income tax rate |
| The Company, Zhida Company, Chanchang Company, Haolaite Company, Nanning Liaowang, Chongqing Guinuo, Liuzhou Lighting, Liuzhou Foreshine, Qingdao Lighting, NationStar Optoelectronics, NationStar Semiconductor, Germany NationStar, Fenghua Semiconductor | 15% |
| Indonesia Liaowang | 11% |
| Other subsidiaries | 25% |
2. Tax Preference
1. The Company passed the review of high-tech enterprises in 2023 and obtained the certificate of high-techenterprise (Certificate No. GR202344003659) approved by the Guangdong Provincial Department of Science andTechnology, the Department of Finance of Guangdong Province, and the Guangdong Provincial Tax Service ofState Taxation Administration. According to relevant regulations, the Company is entitled to a reduced enterpriseincome tax rate of 15% for three years starting from 2023.
2. Subsidiary Zhida Company passed the review of high-tech enterprises in December 2022 and obtained thecertificate of high-tech enterprise (Certificate No.: GR202244009711) approved by the Guangdong ProvincialDepartment of Science and Technology, the Department of Finance of Guangdong Province, and the GuangdongProvincial Tax Service of State Taxation Administration. According to the relevant regulations, Zhida Company isentitled to a reduced enterprise income tax rate of 15% for three years starting from 2022.
3. Subsidiary Chanchang Company passed the audit of high-tech enterprises in December 2021 and obtained thecertificate of high-tech enterprise (Certificate No.: GR202144000342) approved by the Guangdong ProvincialDepartment of Science and Technology, the Department of Finance of Guangdong Province, and the GuangdongProvincial Tax Service of State Taxation Administration. According to the relevant regulations, ChanchangCompany is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2021. In
accordance with the relevant provisions of the Enterprise Income Tax Law of the People's Republic of China,Chanchang Company shall prepay the enterprise income tax for fiscal year 2024 at a tax rate of 15%.
4. Subsidiary Haolaite Company passed the review of high-tech enterprises in 2022 and obtained the certificate ofhigh-tech enterprise (Certificate No. GR202244003711) approved by the Guangdong Provincial Department ofScience and Technology, the Department of Finance of Guangdong Province, and the Guangdong Provincial TaxService of State Taxation Administration. According to relevant regulations, Haolaite Company is entitled to areduced enterprise income tax rate of 15% for three years starting from 2022.
5. Subsidiary Nanning Liaowang passed the review of high-tech enterprises in 2023 and obtained the certificate ofhigh-tech enterprise (Certificate No. GR202345001098) approved by the Science and Technology Department ofthe Guangxi Zhuang Autonomous Region, the Department of Finance of Guangxi Zhuang Autonomous Region,and the Guangxi Zhuang Autonomous Region Tax Service of State Taxation Administration. According torelevant regulations, Nanning Liaowang is entitled to a reduced enterprise income tax rate of 15% for three yearsstarting from 2023.
6. Chongqing Guinuo, a wholly-owned subsidiary of Nanning Liaowang, enjoys the tax incentives of reducingand exempting enterprise income tax for the development of western China since 1 January 2019, and is entitledto a reduced enterprise income tax rate of 15% after examination by and filing with the tax authorities.
7. Liuzhou Lighting, a wholly-owned subsidiary of Nanning Liaowang, passed the review of high-tech enterprisein 2022 and obtained the certificate of high-tech enterprise (Certificate No.: GR202245001221). According torelevant regulations, Liuzhou Lighting will pay enterprise income tax at a reduced rate of 15% for three yearsstarting from 2022.
8. Liuzhou Fuxuan, a wholly-owned subsidiary of Nanning Liaowang, passed the review of high-tech enterprise inNovember 2021 and obtained the certificate of high-tech enterprise (Certificate No.: GR202145001045) approvedby the Science and Technology Department of the Guangxi Zhuang Autonomous Region, the Department ofFinance of Guangxi Zhuang Autonomous Region, and the Guangxi Zhuang Autonomous Region Tax Service ofState Taxation Administration. According to relevant regulations, Liuzhou Fuxuan will pay enterprise income taxat a reduced rate of 15% for three years starting from 2021. In accordance with the relevant provisions of theEnterprise Income Tax Law of the People's Republic of China, Liuzhou Fuxuan shall prepay the enterprise incometax for fiscal year 2024 at a tax rate of 15%.
9. Qingdao Lighting, a wholly-owned subsidiary of Nanning Liaowang, passed the review of high-tech enterpriseon 14 December 2022 and obtained the certificate of high-tech enterprise (Certificate No.: GR202237100785)approved by the Qingdao Municipal Science and Technology Bureau, the Qingdao Municipal Finance Bureau,and the Qingdao Municipal Tax Service of State Taxation Administration. According to relevant regulations,Qingdao Optoelectronics will pay enterprise income tax at a reduced rate of 15% for three years starting from2022.
10. Subsidiary NationStar Optoelectronics was recognized as a high-tech enterprise on 16 December 2008, and itscertificate number was GR200844000097. It was re-recognized as a high-tech enterprise in 2023, and its newcertificate number is GR202344017343. According to relevant regulations, NationStar Optoelectronics will payenterprise income tax at a reduced rate of 15% for three years starting from 2023.
11. NationStar Semiconductor, a wholly-owned subsidiary of NationStar Optoelectronics, was recognized as ahigh-tech enterprise on 10 October 2015, and its certificate number was GR201544001238. It was re-recognizedas a high-tech enterprise in 2021, and its new certificate number is GR202144008779. According to relevantregulations, NationStar Semiconductor will pay enterprise income tax at a reduced rate of 15% for three yearsstarting from 2021. In accordance with the relevant provisions of the Enterprise Income Tax Law of the People'sRepublic of China, NationStar Semiconductor shall prepay the enterprise income tax for fiscal year 2024 at a tax
rate of 15%.
12. Fenghua Semiconductor, a majority-owned subsidiary of NationStar Optoelectronics, was recognized as ahigh-tech enterprise on 16 December 2008, and its certificate number was GR200844000295. It was re-recognizedas a high-tech enterprise in 2021, and its new certificate number is GR202144008851. According to relevantregulations, Fenghua Semiconductor will pay enterprise income tax at a reduced rate of 15% for three yearsstarting from 2021. In accordance with the relevant provisions of the Enterprise Income Tax Law of the People'sRepublic of China, Fenghua Semiconductor shall prepay the enterprise income tax for fiscal year 2024 at a taxrate of 15%.
13. Indonesia Liaowang, a wholly-owned subsidiary of Nanning Liaowang, is located in the country whereIndonesia's statutory corporate income tax rate is 22%, and there are local incentives for medium, small and microenterprises to reduce or waive income tax by 50%, therefore, Indonesia Liaowang is subject to a preferential taxrate of 11% for the payment of enterprise income tax.
3. Other
Pay in accordance with the relevant provisions of the tax law.VII. Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Cash on hand | 41,943.58 | 42,466.76 |
| Bank deposits | 1,335,829,321.44 | 1,942,320,219.96 |
| Other monetary assets (Note 1) | 498,287,775.41 | 466,064,741.94 |
| Deposits placed with finance companies (Note 2) | 1,345,958,937.00 | 1,179,154,268.07 |
| To-be-received interest (Note 3) | 11,490,996.27 | 8,467,957.82 |
| Total | 3,191,608,973.70 | 3,596,049,654.55 |
| Of which: Total amount deposited overseas | 30,746,333.12 | 31,405,378.56 |
Other notes:
Note 1: Other monetary assets were security deposits for notes and performance bonds, as well as investmentsplaced with security firm and the balance with e-commerce platforms, of which the security deposits for notesand performance bonds were restricted assets (see “31. Assets with Restricted Ownership or Right of Use” inNote “VII Notes to Consolidate Financial Statements”).Note 2: Deposits placed with finance companies refer to the amount deposited with Guangdong Rising FinanceCo., Ltd.
Note 3: To-be-received interest was interest receivable on undue bank deposits and term deposits as of the endof the Reporting Period, which is not recognised as cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Financial assets at fair value through profit or loss | 106,928,328.01 | 152,529,775.41 |
| Of which: | ||
| Wealth management products | 105,825,131.94 | 151,550,477.63 |
| Equity instrument investments | 1,003,796.07 | 979,297.78 |
| Others | 99,400.00 | |
| Total | 106,928,328.01 | 152,529,775.41 |
Other notes:
Naught.
3. Derivative Financial Assets
Naught
4. Notes Receivable
(1) Notes Receivable Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 882,662,892.04 | 984,928,441.40 |
| Commercial acceptance bill | 85,473,075.40 | 72,423,826.20 |
| Total | 968,135,967.44 | 1,057,352,267.60 |
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Notes receivable withdrawn bad debt provision by group | 969,880,315.91 | 100.00% | 1,744,348.47 | 0.18% | 968,135,967.44 | 1,058,830,304.87 | 100.00% | 1,478,037.27 | 0.14% | 1,057,352,267.60 |
| Of which: | ||||||||||
| Bank acceptance bill | 882,662,892. | 91.01% | 0.00 | 0.00% | 882,662,892.04 | 984,928,441. | 93.02% | 0.00 | 0.00% | 984,928,441.40 |
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| 04 | 40 | |||||||||
| Commercial acceptance bill | 87,217,423.87 | 8.99% | 1,744,348.47 | 2.00% | 85,473,075.40 | 73,901,863.47 | 6.98% | 1,478,037.27 | 2.00% | 72,423,826.20 |
| Total | 969,880,315.91 | 100.00% | 1,744,348.47 | 0.18% | 968,135,967.44 | 1,058,830,304.87 | 100.00% | 1,478,037.27 | 0.14% | 1,057,352,267.60 |
Withdrawal of bad debt provision by group: RMB1,744,348.47 of bad debt provision by bank acceptance bill.
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Within one year | 87,217,423.87 | 1,744,348.47 | 2.00% |
| Total | 87,217,423.87 | 1,744,348.47 | |
Notes:
Please refer to Note V-13. Accounts Receivable for details.If adopting the general mode of expected credit loss to withdraw bad debt provision of notes receivable:
□Applicable ?Not applicable
(3) Bad Debt Provision Withdrawn, Reversed or Collected during the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | |||
| Withdrawn | Reversal or recovery | Write-off | Others | |||
| Commercial acceptance bill | 1,478,037.27 | 266,311.20 | 1,744,348.47 | |||
| Total | 1,478,037.27 | 266,311.20 | 1,744,348.47 | |||
Of which, bad debt provision collected or reversed with significant amount:
□Applicable ?Not applicable
(4) Notes Receivable Pledged by the Company at the Period-end
Unit: RMB
| Item | Amount pledged at the period-end |
| Bank acceptance bill | 609,340,614.44 |
| Total | 609,340,614.44 |
(5) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on theBalance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not recognition termination at the period-end |
| Bank acceptance bill | 214,209,835.91 | 141,027,788.82 |
| Total | 214,209,835.91 | 141,027,788.82 |
(6) Notes Receivable with Actual Verification for the Reporting Period
Naught
5. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
| Ageing | Ending carrying balance | Beginning carrying balance |
| Within one year (including one year) | 2,300,520,301.54 | 1,944,758,964.52 |
| One to two years | 155,076,064.08 | 151,569,005.90 |
| Two to three years | 118,368,497.46 | 99,249,444.34 |
| Over three years | 58,543,775.35 | 40,389,042.02 |
| Three to four years | 24,878,664.34 | 9,919,239.39 |
| Four to five years | 5,320,094.97 | 7,074,054.82 |
| Over five years | 28,345,016.04 | 23,395,747.81 |
| Total | 2,632,508,638.43 | 2,235,966,456.78 |
(2) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Accounts receivable for which bad debt provision accrued separately | 85,206,971.63 | 3.24% | 50,838,105.55 | 59.66% | 34,368,866.08 | 25,780,344.44 | 1.15% | 21,977,900.85 | 85.25% | 3,802,443.59 |
| Of which: | ||||||||||
| Accounts receivable withdrawal of bad debt provision by | 2,547,301,666.80 | 96.76% | 128,998,163.97 | 5.06% | 2,418,303,502.83 | 2,210,186,112.34 | 98.85% | 120,489,275.53 | 5.45% | 2,089,696,836.81 |
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| portfolio | ||||||||||
| Of which: | ||||||||||
| (1) Business portfolio of general lighting and auto lamps | 1,862,285,382.77 | 70.74% | 114,586,762.69 | 6.15% | 1,747,698,620.08 | 1,698,428,474.56 | 75.96% | 109,583,622.27 | 6.45% | 1,588,844,852.29 |
| (2) Business portfolio of LED packaging and components | 685,016,284.03 | 26.02% | 14,411,401.28 | 2.10% | 670,604,882.75 | 511,757,637.78 | 22.89% | 10,905,653.26 | 2.13% | 500,851,984.52 |
| Total | 2,632,508,638.43 | 100.00% | 179,836,269.52 | 6.83% | 2,452,672,368.91 | 2,235,966,456.78 | 100.00% | 142,467,176.38 | 6.37% | 2,093,499,280.40 |
Category name of bad debt provision accrued by item: Bad debt provision accrued by item of RMB50,838,105.55.There is no significant individual provision for bad debts for accounts receivable in the current period.Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB114,586,762.69 for the portfolio of generallighting and auto lamps; Withdrawal of bad debt provision of RMB14,411,401.28 for the portfolio of LED packaging andcomponent business.
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| (1) Business portfolio of general lighting and auto lamps | 1,862,285,382.77 | 114,586,762.69 | 6.15% |
| (2) Business portfolio of LED packaging and components | 685,016,284.03 | 14,411,401.28 | 2.10% |
| Total | 2,547,301,666.80 | 128,998,163.97 | |
Notes:
Please refer to Note V-13. Accounts Receivable for details.If adopting the general mode of expected credit loss to withdraw bad debt provision of accounts receivable:
□Applicable ?Not applicable
(3) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting PeriodInformation of bad debt provision withdrawn:
Unit: RMB
| Category | Beginning balance | Changes in the Reporting Period | Ending balance | ||||
| Withdrawal | Write-off for the previous period and transferred-back for the current | Reversal or recovery | Write-off | Others | |||
| period | |||||||
| Accounts receivable for which bad debt provision accrued separately | 21,977,900.85 | 28,734,766.44 | 131,576.26 | 6,138.00 | 50,838,105.55 | ||
| Accounts receivable withdrawal of bad debt provision by portfolio | 120,489,275.53 | 8,508,917.49 | 29.05 | 128,998,163.97 | |||
| Total | 142,467,176.38 | 37,243,683.93 | 131,576.26 | 6,138.00 | 29.05 | 179,836,269.52 |
Of which, bad debt provision collected or reversed with significant amount: Naught.The amount of expected credit losses accrued in the current period was RMB37,243,683.93, the amount of priorperiod write-offs reversed in the current period was RMB131,576.26, the amount of expected credit lossesrecovered or reversed in the current period was RMB6,138.00, the amount of expected credit losses written offin the current period was RMB29.05, which is RMB5,839.52 different from the amount of credit impairmentloss accrued in the current period of RMB37,243,385.45, which is due to the difference in translation of foreigncurrency statements at the end of the period.
(4) Accounts Receivable with Actual Verification during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Accounts receivable with actual verification | 29.05 |
Of which, verification of significant accounts receivable: Naught.Notes to verification of accounts receivable:
The amount of accounts receivable written off in the current period was RMB29.05, and the bad debt provisionwas RMB29.05. The approval procedure was performed in accordance with provisions of the bad debtmanagement system of the Company.
(5) Top Five Accounts Receivable and Contract Assets in Ending Balance Collected According to theArrears Party
Unit: RMB
| Name of the entity | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to total ending balance of accounts receivable and contract assets | Ending balance of bad debt provision of accounts receivable and impairment provision for contract assets |
| No. 1 | 173,240,516.01 | 173,240,516.01 | 6.57% | 5,197,215.48 | |
| No. 2 | 136,060,695.38 | 136,060,695.38 | 5.16% | 4,081,820.86 | |
| No. 3 | 132,880,329.94 | 132,880,329.94 | 5.04% | 3,986,409.90 | |
| No. 4 | 126,697,107.97 | 126,697,107.97 | 4.81% | 3,803,407.33 | |
| No. 5 | 86,002,105.06 | 86,002,105.06 | 3.26% | 2,656,192.76 |
| Name of the entity | Ending balance of accounts receivable | Ending balance of contract assets | Ending balance of accounts receivable and contract assets | Proportion to total ending balance of accounts receivable and contract assets | Ending balance of bad debt provision of accounts receivable and impairment provision for contract assets |
| Total | 654,880,754.36 | 654,880,754.36 | 24.84% | 19,725,046.33 |
6. Contract Assets
(1) List of Contract Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |
| Contract assets | 3,380,043.90 | 1,014,013.17 | 2,366,030.73 | 6,074,305.63 | 1,822,291.69 | 4,252,013.94 |
| Total | 3,380,043.90 | 1,014,013.17 | 2,366,030.73 | 6,074,305.63 | 1,822,291.69 | 4,252,013.94 |
(2) Significant Changes in the Amount of Carrying Value and the Reason in the Reporting PeriodThere was no significant change in the book value during the Reporting Period.
(3) Disclosure by Withdrawal Methods for Bad Debts
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Withdrawal of bad debt provision by group | 3,380,043.90 | 100.00% | 1,014,013.17 | 30.00% | 2,366,030.73 | 6,074,305.63 | 100.00% | 1,822,291.69 | 30.00% | 4,252,013.94 |
| Of which: | Of which: | |||||||||
| Business portfolio of general lighting and auto lamps | 3,380,043.90 | 100.00% | 1,014,013.17 | 30.00% | 2,366,030.73 | 6,074,305.63 | 100.00% | 1,822,291.69 | 30.00% | 4,252,013.94 |
| Total | 3,380,043.90 | 100.00% | 1,014,013.17 | 30.00% | 2,366,030.73 | 6,074,305.63 | 100.00% | 1,822,291.69 | 30.00% | 4,252,013.94 |
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB1,014,013.17 for the portfolio of generallighting and auto lamps.
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Business portfolio of general | 3,380,043.90 | 1,014,013.17 | 30.00% |
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| lighting and auto lamps | |||
| Total | 3,380,043.90 | 1,014,013.17 | |
Notes:
Please refer to Note V-16. Contract AssetsWithdrawal of bad debt provision by adopting the general mode of expected credit loss
□Applicable ?Not applicable
(4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Unit: RMB
| Item | Withdrawal of the Current Period | Reversal or recovery in the Reporting Period | Verification | Reason |
| Provision for impairment of contract assets | 808,278.52 | |||
| Total | 808,278.52 |
Of which, bad debt provision collected or reversed with significant amount: Naught.
(5) Contract Assets Written-off in Current Period
Naught.
7. Accounts Receivable Financing
(1) Accounts Receivable Financing Listed by Category
Unit: RMB
| Item | Ending balance | Beginning balance |
| Bank acceptance bill | 296,834,332.74 | 443,201,960.02 |
| Total | 296,834,332.74 | 443,201,960.02 |
(2) Disclosure by Withdrawal Methods for Bad Debts
Naught.The basis for the division of each phase and the withdrawal proportion of bad debt provisionPlease refer to Note V-13. Accounts Receivable for details.Explanation of significant changes in the accounts receivable financing book balance with changes in lossreserves in the current period: Naught
(3) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current PeriodNaught.
(4) Accounts Receivable Financing Pledged by the Company at the Period-end
Unit: RMB
| Item | Amount pledged at the period-end |
| Bank acceptance bill | 31,596,200.00 |
| Total | 31,596,200.00 |
(5) Accounts Receivable Financing Which Had Endorsed by the Company or Had Discounted and Hadnot Due on the Balance Sheet Date at the Period-end
Unit: RMB
| Item | Amount of recognition termination at the period-end | Amount of not recognition termination at the period-end |
| Bank acceptance bill | 288,485,094.80 | |
| Total | 288,485,094.80 |
(6) Accounts Receivable Financing with Actual Verification for the Current PeriodNaught.
(7) The Changes of Accounts Receivable Financing in the Reporting Period and the Changes in FairValue
Naught.
(8) Other Notes
Naught.
8. Other Receivables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Other receivables | 57,278,936.88 | 49,108,300.85 |
| Total | 57,278,936.88 | 49,108,300.85 |
(1) Interest Receivable
1) Category of Interest Receivable
Naught
2) Significant Overdue Interest
Naught
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable ?Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
5) Interests Receivable Written-off in Current Period
Naught.
(2) Dividends Receivable
1) Category of Dividends Receivable
Naught.
2) Significant Dividends Receivable Aged over One Year
Naught.
3) Disclosure by Withdrawal Methods for Bad Debts
□Applicable ?Not applicable
4) Bad Debt Provision Withdrawal, Reversed or Recovered in the Current Period
Naught.
5) Dividends Receivable with Actual Verification during the Reporting Period
Naught.
(3) Other Receivables
1) Other Receivables Disclosed by Account Nature
Unit: RMB
| Nature | Ending carrying balance | Beginning carrying balance |
| Other intercourse | 59,879,773.01 | 65,389,794.88 |
| Performance bond | 30,112,547.74 | 17,686,774.68 |
| VAT export tax refunds | 5,905,055.39 | 4,708,061.84 |
| Staff borrow and petty cash | 2,054,163.39 | 1,589,234.30 |
| Nature | Ending carrying balance | Beginning carrying balance |
| Rent, water & electricity fees | 1,116,434.75 | 817,043.94 |
| Total | 99,067,974.28 | 90,190,909.64 |
2) Disclosure by Aging
Unit: RMB
| Ageing | Ending carrying balance | Beginning carrying balance |
| Within one year (including one year) | 55,131,877.28 | 46,054,067.53 |
| One to two years | 7,593,228.99 | 7,676,026.75 |
| Two to three years | 1,578,581.30 | 2,219,050.74 |
| Over three years | 34,764,286.71 | 34,241,764.62 |
| Three to four years | 6,180,482.37 | 5,990,920.12 |
| Four to five years | 3,620,295.50 | 4,583,526.14 |
| Over five years | 24,963,508.84 | 23,667,318.36 |
| Total | 99,067,974.28 | 90,190,909.64 |
3) Disclosure by Withdrawal Methods for Bad Debts
?Applicable □ Not applicable
Unit: RMB
| Category | Ending balance | Beginning balance | ||||||||
| Carrying amount | Bad debt provision | Carrying value | Carrying amount | Bad debt provision | Carrying value | |||||
| Amount | Proportion | Amount | Withdrawal proportion | Amount | Proportion | Amount | Withdrawal proportion | |||
| Bad debt provision separately accrued | 31,541,239.47 | 31.84% | 31,541,239.47 | 100.00% | 0.00 | 31,541,239.47 | 34.97% | 31,541,239.47 | 100.00% | 0.00 |
| Of which: | ||||||||||
| Withdrawal of bad debt provision by group | 67,526,734.81 | 68.16% | 10,247,797.93 | 15.18% | 57,278,936.88 | 58,649,670.17 | 65.03% | 9,541,369.32 | 16.27% | 49,108,300.85 |
| Of which: | ||||||||||
| Other receivables of bad debt provision withdrawn by credit risk characteristic portfolio: | 67,526,734.81 | 68.16% | 10,247,797.93 | 15.18% | 57,278,936.88 | 58,649,670.17 | 65.03% | 9,541,369.32 | 16.27% | 49,108,300.85 |
| Total | 99,067,974.28 | 100.00% | 41,789,037.40 | 42.18% | 57,278,936.88 | 90,190,909.64 | 100.00% | 41,082,608.79 | 45.55% | 49,108,300.85 |
Category name of bad debt provision accrued by item: Bad debt provision accrued by item of RMB31,541,239.47.
Unit: RMB
| Name | Beginning balance | Ending balance |
| Carrying amount | Provision for impairment | Carrying amount | Bad debt provision | Withdrawal proportion | Reason for withdrawal | |
| Customer A | 20,000,000.00 | 20,000,000.00 | 20,000,000.00 | 20,000,000.00 | 100.00% | Less likely to be recovered |
| Total | 20,000,000.00 | 20,000,000.00 | 20,000,000.00 | 20,000,000.00 |
Withdrawal of bad debt provision by group: Withdrawal of bad debt provision of RMB10,247,797.93 based on credit riskcharacteristic portfolio
Unit: RMB
| Name | Ending balance | ||
| Carrying amount | Bad debt provision | Withdrawal proportion | |
| Other receivables of bad debt provision withdrawn by credit risk characteristic portfolio: | 67,526,734.81 | 10,247,797.93 | 15.18% |
| Total | 67,526,734.81 | 10,247,797.93 | |
Notes:
Please refer to Note V-13. Accounts Receivable for details.Withdrawal of bad debt provision by adopting the general mode of expected credit loss:
Unit: RMB
| Bad debt provision | Phase I | Phase II | Phase III | Total |
| Expected credit loss of the next 12 months | Expected loss in the duration (credit impairment not occurred) | Expected loss in the duration (credit impairment occurred) | ||
| Balance of 1 January 2024 | 1,342,723.92 | 7,982,242.94 | 31,757,641.93 | 41,082,608.79 |
| Balance of 1 January 2024 in the Current Period | ||||
| Withdrawal of the Current Period | 253,833.88 | 502,594.73 | 756,428.61 | |
| Amount written-off for the current period | 50,000.00 | 50,000.00 | ||
| Balance of 30 June 2024 | 1,596,557.80 | 8,484,837.67 | 31,707,641.93 | 41,789,037.40 |
The basis for the division of each phase and the withdrawal proportion of bad debt provisionPlease refer to Note V-13. Accounts Receivable for details.Changes of carrying amount with significant amount changed of loss provision in the current period
□Applicable ?Not applicable
4) Bad Debt Provision Withdrawn, Reversed or Recovered in the Reporting Period
Information of bad debt provision withdrawn:
Unit: RMB
| Category | Beginning | Changes in the Reporting Period | Ending balance |
| balance | Withdrawal | Reversal or recovery | Charged-off/Written-off | Others | ||
| Other receivables | 41,082,608.79 | 756,428.61 | 50,000.00 | 41,789,037.40 | ||
| Total | 41,082,608.79 | 756,428.61 | 50,000.00 | 41,789,037.40 |
The amount of expected credit losses accrued during the current period was RMB756,428.61, the amount ofexpected credit losses recovered or reversed during the current period was RMB0.00, and the amount ofexpected credit losses verified during the current period was RMB50,000.00, which was RMB4,683.32 differentfrom the amount of expected credit losses on other receivables accrued during the current period ofRMB761,111.93, which was due to the difference in translation of foreign currency statements at the end of thecurrent period.Of which the bad debt provision reversed or recovered with significant amount during the Reporting Period:
Naught.
5) Particulars of the Actual Verification of Other Receivables during the Reporting Period
Unit: RMB
| Item | Amount verified |
| Customer A | 50,000.00 |
Of which the verification of significant other receivables: Naught.
6) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party
Unit: RMB
| Name of the entity | Nature | Ending balance | Ageing | Proportion to total ending balance of other receivables (%) | Ending balance of bad debt provision |
| No. 1 | Other intercourse | 20,000,000.00 | Over five years | 20.19% | 20,000,000.00 |
| No. 2 | Other intercourse | 15,883,375.00 | Within one year | 16.03% | 476,501.25 |
| No. 3 | Performance bond | 10,000,000.00 | Within one year | 10.09% | 300,000.00 |
| No. 4 | VAT export tax refunds | 5,905,055.39 | Within one year | 5.96% | 177,151.66 |
| No. 5 | Other intercourse | 5,000,000.00 | One to two years | 5.05% | 5,000,000.00 |
| Total | 56,788,430.39 | 57.32% | 25,953,652.91 |
7) Presentation in Other Receivables Due to the Centralised Management of FundNaught.
9. Prepayments
(1) Listed by Aging
Unit: RMB
| Ageing | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Ageing | Ending balance | Beginning balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within one year | 48,852,140.71 | 87.26% | 27,750,424.91 | 80.42% |
| One to two years | 3,253,316.42 | 5.81% | 3,496,897.72 | 10.13% |
| Two to three years | 1,227,273.96 | 2.19% | 665,594.01 | 1.93% |
| Over three years | 2,651,828.46 | 4.74% | 2,595,722.28 | 7.52% |
| Total | 55,984,559.55 | 34,508,638.92 | ||
Notes of the reasons of the prepayment aging over one year with significant amount but failed settled in time:
Naught.
(2) Top Five of the Ending Balance of the Prepayments Collected according to the Prepayment Target
| Name of the entity | Relationship with the Company | Ending balance | Ageing | Proportion to total prepayments (%) |
| No. 1 | Unrelated party | 8,406,000.00 | Within one year | 15.01% |
| No. 2 | Unrelated party | 4,791,920.00 | Within one year | 8.56% |
| No. 3 | Unrelated party | 3,997,613.78 | Within one year | 7.14% |
| No. 4 | Unrelated party | 2,772,000.00 | Within one year | 4.95% |
| No. 5 | Unrelated party | 1,990,400.00 | Within one year | 3.56% |
| Total | 21,957,933.78 | 39.22% |
Other notes: Naught.
10. Inventory
Whether the Company needs to comply with disclosure requirements for real estate industryNo
(1) Category of Inventory
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves of inventory or depreciation reserves of contract performance cost | Carrying value | Carrying amount | Falling price reserves of inventory or depreciation reserves of contract performance cost | Carrying value | |
| Raw materials | 344,053,149.04 | 15,495,808.86 | 328,557,340.18 | 305,927,108.28 | 13,862,774.27 | 292,064,334.01 |
| Goods in process | 205,009,533.55 | 205,009,533.55 | 247,880,117.38 | 247,880,117.38 | ||
| Inventory goods | 958,249,713.55 | 172,754,438.69 | 785,495,274.86 | 1,051,891,889.47 | 146,951,222.27 | 904,940,667.20 |
| Goods in transit | 277,403,732.59 | 3,513,495.97 | 273,890,236.62 | 425,003,429.61 | 9,197,980.38 | 415,805,449.23 |
| Semi-finished goods | 96,587,205.46 | 4,911,245.36 | 91,675,960.10 | 96,957,960.11 | 4,480,118.25 | 92,477,841.86 |
| Low-value consumables | 1,916,139.64 | 1,916,139.64 | 1,322,185.78 | 1,322,185.78 | ||
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Falling price reserves of inventory or depreciation reserves of contract performance cost | Carrying value | Carrying amount | Falling price reserves of inventory or depreciation reserves of contract performance cost | Carrying value | |
| Others | 26,957,062.88 | 26,957,062.88 | 16,681,045.68 | 16,681,045.68 | ||
| Total | 1,910,176,536.71 | 196,674,988.88 | 1,713,501,547.83 | 2,145,663,736.31 | 174,492,095.17 | 1,971,171,641.14 |
(2) Data Resources Recognised as Inventory
Naught.
(3) Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | ||
| Withdrawal | Others | Reversal or write-off | Others | |||
| Raw materials | 13,862,774.27 | 3,185,716.44 | 1,552,681.85 | 15,495,808.86 | ||
| Inventory goods | 146,951,222.27 | 30,846,707.82 | 5,043,491.40 | 172,754,438.69 | ||
| Goods in transit | 9,197,980.38 | 388,014.16 | 6,072,498.57 | 3,513,495.97 | ||
| Semi-finished goods | 4,480,118.25 | 1,324,501.82 | 893,374.71 | 4,911,245.36 | ||
| Total | 174,492,095.17 | 35,744,940.24 | 13,562,046.53 | 196,674,988.88 | ||
Provision for depreciation in value of inventories by portfolio: Naught.Provision standards for depreciation in value of inventories by groupPlease refer to Note V-17. Inventory.
(4) Notes to the Ending Balance of Inventories Including Capitalised Borrowing ExpenseNaught
(5) Amortisation Amount of Contract Performance Cost during the Reporting PeriodNaught
11. Held-for-Sale Assets
Unit: RMB
| Item | Ending carrying balance | Depreciation reserves | Ending carrying value | Fair value | Estimated disposal expense | Estimated disposal time |
| Houses, buildings and land involved in expropriation | 17,147,339.84 | 17,147,339.84 | 183,855,895.00 | 55,718,333.95 | 31 December 2024 | |
| Total | 17,147,339.84 | 17,147,339.84 | 183,855,895.00 | 55,718,333.95 |
Other notes:
Note: For details, see Part X-XVIII. Other Major Events-8. Other: “Demolition Matters of Nanjing Fozhao” ofthis Report. The estimated disposal costs include employee resettlement fees, compensation for the terminationof the original tenant’s contract, and taxes related to the proceeds of demolition.
12. Current Portion of Non-current Assets
Naught.
13. Other Current Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Term deposits (note) | 108,700,000.00 | 700,000.00 |
| Input tax of VAT to be certified and deducted | 79,617,000.29 | 94,451,130.80 |
| Advance payment of enterprise income tax | 4,381,508.30 | 11,454,058.94 |
| Others | 3,047,161.88 | 2,687,209.40 |
| Total | 195,745,670.47 | 109,292,399.14 |
Other notes:
Note: This is a fixed deposit with a term not exceeding one year from the date of purchase.
14. Investments in Debt Obligations
Naught
15. Other Investments in Debt Obligations
(1) List of Other Investments in Debt Obligations
Unit: RMB
| Item | Beginning balance | Accrued interest | Interest adjustment | Change in fair value in the Reporting Period | Ending balance | Cost | Accumulated changes in fair value | Accumulated impairment provision recognised in other comprehensive income | Note |
| Purchase held-to-maturity investments in 2023 | 454,822,905.25 | 6,714,288.43 | 411,537,193.68 | 400,000,000.00 | Large deposit certificate of a bank | ||||
| Purchase held- | 5,961,545. | 712,961,54 | 707,000,0 | Large |
| Item | Beginning balance | Accrued interest | Interest adjustment | Change in fair value in the Reporting Period | Ending balance | Cost | Accumulated changes in fair value | Accumulated impairment provision recognised in other comprehensive income | Note |
| to-maturity investments in 2024 | 26 | 5.26 | 00.00 | deposit certificate of a bank | |||||
| Total | 454,822,905.25 | 12,675,833.69 | 1,124,498,738.94 | 1,107,000,000.00 |
Changes in the impairment provision for other investments in debt obligations during the current period: Naught.
(2) Significant Other Investments in Debt Obligations at the Period-end
Unit: RMB
| Item | Ending balance | Beginning balance | ||||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | Par value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | |
| Large deposit certificate of Everbright Bank | 100,000,000.00 | 3.30% | 3.30% | 6 January 2026 | 100,000,000.00 | 3.30% | 3.30% | 6 January 2026 | ||
| Large deposit certificate of Bank of Communications | 50,000,000.00 | 2.90% | 2.90% | 31 August 2026 | 50,000,000.00 | 2.90% | 2.90% | 31 August 2026 | ||
| Large deposit certificate of Everbright Bank | 100,000,000.00 | 2.90% | 2.90% | 3 November 2026 | 150,000,000.00 | 2.90% | 2.90% | 3 November 2026 | ||
| Large deposit certificate of Bank of Guangzhou | 150,000,000.00 | 2.95% | 2.95% | 1 December 2026 | 150,000,000.00 | 2.95% | 2.95% | 1 December 2026 | ||
| Large deposit certificate of Bank of Guangzhou | 212,000,000.00 | 2.75% | 2.75% | 5 February 2027 | ||||||
| Large deposit certificate of Everbright Bank | 55,000,000.00 | 2.60% | 2.60% | 5 February 2027 | ||||||
| Large deposit certificate of Huaxia Bank | 143,000,000.00 | 2.60% | 2.60% | 5 February 2027 | ||||||
| Large deposit certificate of China Merchants Bank | 82,000,000.00 | 2.60% | 2.60% | 5 February 2027 | ||||||
| Large deposit certificate of Huaxia Bank | 150,000,000.00 | 2.60% | 2.60% | 8 March 2027 | ||||||
| Large deposit certificate of | 35,000,000.00 | 2.60% | 2.60% | 29 March 2027 | ||||||
| Item | Ending balance | Beginning balance | ||||||||
| Par value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | Par value | Coupon rate | Actual interest rate | Maturity date | Overdue principal | |
| China Merchants Bank | ||||||||||
| Large deposit certificate of China Merchants Bank | 30,000,000.00 | 2.60% | 2.60% | 30 April 2027 | ||||||
| Total | 1,107,000,000.00 | 450,000,000.00 | ||||||||
(3) Status of Accrued Depreciation Reserves
Naught.
The basis for the division of each phase and the withdrawal proportion of bad debt provisionPlease refer to Note V-20. Other Debt Investments
(4) Status of Other Investments in Debt Obligations Written-off in Current PeriodNaught.
16. Other Equity Instrument Investments
Unit: RMB
| Item | Beginning balance | Gains recorded in other comprehensive income in the current period | Losses recorded in other comprehensive income in the current period | Accumulative gains recorded in other comprehensive income in the current period | Accumulative losses recorded in other comprehensive income in the current period | Dividend income recognised in current year | Ending balance | Reason for assigning to measure in fair value and the changes included in other comprehensive income |
| Gotion High-tech Co., Ltd. | 368,376,506.50 | 40,264,408.85 | 245,097,612.52 | 1,713,379.10 | 328,112,097.65 | Equity instruments not held for trading | ||
| Xiamen Bank Co.,Ltd. | 290,807,671.05 | 14,913,213.90 | 152,763,278.12 | 17,781,139.65 | 305,720,884.95 | Equity instruments not held for trading | ||
| Guangdong Rising Finance Co., Ltd. | 30,000,000.00 | 496,154.24 | 30,000,000.00 | Equity instruments not held for trading | ||||
| Beijing Guangrong Lianmeng Semiconductor lighting Industry Investment Centre (L.P.) | 7,078,568.80 | 7,078,568.80 | Equity instruments not held for trading |
| Item | Beginning balance | Gains recorded in other comprehensive income in the current period | Losses recorded in other comprehensive income in the current period | Accumulative gains recorded in other comprehensive income in the current period | Accumulative losses recorded in other comprehensive income in the current period | Dividend income recognised in current year | Ending balance | Reason for assigning to measure in fair value and the changes included in other comprehensive income |
| Foshan Nanhai District United Guangdong New Light Source Industry Innovation Centre | 3,000,000.00 | 3,000,000.00 | Equity instruments not held for trading | |||||
| China Guangfa Bank Co.,Ltd. | 500,000.00 | 500,000.00 | Equity instruments not held for trading | |||||
| Total | 699,762,746.35 | 14,913,213.90 | 40,264,408.85 | 397,860,890.64 | 19,990,672.99 | 674,411,551.40 |
Derecognition in the current period: Naught.Disclosure of non-trading equity instrument investment by items
Unit: RMB
| Item | Dividend income recognised | Accumulative gains | Accumulative losses | Amount of other comprehensive income transferred to retained earnings | Reason for assigning to measure in fair value and the changes included in other comprehensive income | Reason for other comprehensive income transferred to retained earnings |
| Gotion High-tech Co., Ltd. | 1,713,379.10 | 245,097,612.52 | Not satisfied with the condition of trading equity instrument | Not applicable | ||
| Xiamen Bank Co.,Ltd. | 17,781,139.65 | 152,763,278.12 | Not satisfied with the condition of trading equity instrument | Not applicable | ||
| Guangdong Rising Finance Co., Ltd. | 496,154.24 | 644,988.33 | Not satisfied with the condition of trading equity instrument | Not applicable | ||
| Beijing Guangrong Lianmeng Semiconductor lighting Industry Investment Centre (L.P.) | 995,839.20 | Not satisfied with the condition of trading equity instrument | Not applicable | |||
| Total | 19,990,672.99 | 399,501,718.17 |
Other notes:
Naught.
17. Long-term Receivables
Naught.
18. Long-term Equity Investment
Unit: RMB
| Investee | Beginning balance (carrying value) | Beginning balance of impairment provision | Increase/decrease | Ending balance (carrying value) | Ending balance of impairment provision | |||||||
| Additional investment | Reduced investment | Gains and losses recognised under the equity method | Adjustment of other comprehensive income | Changes of other equity | Cash bonus or profits announced to issue | Withdrawal of impairment provision | Others | |||||
| I. Joint Ventures | ||||||||||||
| II. Associated Enterprises | ||||||||||||
| Shenzhen Primatronix (Nanho) Electronics Ltd. | 179,188,555.15 | 1,444,720.72 | 180,633,275.87 | |||||||||
| Sub-total | 179,188,555.15 | 1,444,720.72 | 180,633,275.87 | |||||||||
| Total | 179,188,555.15 | 1,444,720.72 | 180,633,275.87 | |||||||||
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the expected future cash flow
□Applicable ?Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairmenttests in prior years or external informationNaught.The reason for the discrepancy between the information used in the Company’s impairment tests in prior yearsand the actual situation of those yearsNaught.Other notes:
Naught.
19. Other Non-current Financial Assets
Naught.
20. Investment Property
(1) Investment Property Adopting the Cost Measurement Mode
?Applicable □ Not applicable
Unit: RMB
| Item | Houses and buildings | Land use right | Construction in Progress | Total |
| I. Original carrying value | ||||
| 1. Beginning balance | 204,959,267.68 | 204,959,267.68 | ||
| 2. Increased amount of the period | ||||
| 3. Decreased amount of the period | ||||
| 4. Ending balance | 204,959,267.68 | 204,959,267.68 | ||
| II. Accumulative depreciation and accumulative amortisation | ||||
| 1. Beginning balance | 41,322,920.27 | 41,322,920.27 | ||
| 2. Increased amount of the period | 3,480,668.87 | 3,480,668.87 | ||
| (1) withdrawal or amortisation | 3,480,668.87 | 3,480,668.87 | ||
| 3. Decreased amount of the period | ||||
| 4. Ending balance | 44,803,589.14 | 44,803,589.14 | ||
| III. Depreciation reserves | ||||
| 1. Beginning balance | ||||
| 2. Increased amount of the period | ||||
| 3. Decreased amount of the period | ||||
| 4. Ending balance | ||||
| IV. Carrying value | ||||
| 1. Ending Carrying Value | 160,155,678.54 | 160,155,678.54 | ||
| 2. Beginning carrying value | 163,636,347.41 | 163,636,347.41 |
The recoverable amount is determined based on the net amount of the fair value minus disposal costs
□Applicable ?Not applicable
The recoverable amount is determined by the present value of the expected future cash flow
□Applicable ?Not applicable
The reason for the discrepancy between the foregoing information and the information used in the impairmenttests in prior years or external informationNaught.The reason for the discrepancy between the information used in the Company’s impairment tests in prior yearsand the actual situation of those yearsNaught.
(2) Investment Property Adopting the Fair Value Measurement Mode
□Applicable ?Not applicable
(3) Projects Converted to Investment Properties and Measured at Fair Value
Naught.
(4) Investment Property Failed to Accomplish Certification of Property
As of 30 June 2024, the relevant property certificates for the LED Workshop and R&D Workshop 18 are still in progress. TheManagement believes that obtaining such property certificates is not subject to any substantive legal obstacles and has nosignificant adverse impact on the Company’s normal operations.
21. Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Fixed assets | 3,479,919,717.47 | 3,451,760,127.91 |
| Disposal of fixed assets | 1,892,712.21 | 1,454,458.56 |
| Total | 3,481,812,429.68 | 3,453,214,586.47 |
(1) List of Fixed Assets
Unit: RMB
| Item | Buildings and structures | Machinery equipment | Transportation equipment | Electronic equipment | Other (Note 1) | Total |
| I. Original carrying value | ||||||
| 1. Beginning balance | 2,159,878,650.29 | 5,130,492,486.84 | 38,514,056.09 | 72,880,741.85 | 91,765,712.00 | 7,493,531,647.07 |
| 2. Increased amount of the period | 212,787,304.72 | 70,908,098.55 | 1,234,254.48 | 4,095,032.92 | 2,126,126.53 | 291,150,817.20 |
| (1) Purchase | 952,939.08 | 18,657,431.70 | 764,584.07 | 3,693,065.72 | 429,561.67 | 24,497,582.24 |
| (2) Transfer from | 211,834,365.64 | 51,281,113.60 | 409,670.41 | 401,967.20 | 1,696,564.86 | 265,623,681.71 |
| Item | Buildings and structures | Machinery equipment | Transportation equipment | Electronic equipment | Other (Note 1) | Total |
| Construction in progress | ||||||
| (3) Other (Note 2) | 969,553.25 | 60,000.00 | 1,029,553.25 | |||
| 3. Decreased amount of the period | 144,238,068.90 | 11,956,506.64 | 685,299.70 | 260,308.44 | 389,072.60 | 157,529,256.28 |
| (1) Disposal or scrap | 10,991,457.51 | 679,081.00 | 260,078.93 | 384,334.40 | 12,314,951.84 | |
| (2) Equipment transformation | 398,251.96 | 398,251.96 | ||||
| (3) Other (Note 2) | 144,238,068.90 | 566,797.17 | 6,218.70 | 229.51 | 4,738.20 | 144,816,052.48 |
| 4. Ending balance | 2,228,427,886.11 | 5,189,444,078.75 | 39,063,010.87 | 76,715,466.33 | 93,502,765.93 | 7,627,153,207.99 |
| II. Accumulated amortisation | ||||||
| 1. Beginning balance | 772,209,491.83 | 3,107,267,227.12 | 28,949,352.01 | 51,404,295.01 | 74,136,436.53 | 4,033,966,802.50 |
| 2. Increased amount of the period | 49,689,862.40 | 200,996,187.31 | 1,420,192.61 | 4,304,261.54 | 3,202,985.76 | 259,613,489.62 |
| (1) Withdrawal | 49,689,862.40 | 200,996,187.31 | 1,420,192.61 | 4,304,261.54 | 3,202,985.76 | 259,613,489.62 |
| 3. Decreased amount of the period | 142,072,380.30 | 10,771,429.68 | 654,866.28 | 249,869.95 | 369,024.20 | 154,117,570.41 |
| (1) Disposal or scrap | 10,245,692.75 | 648,709.76 | 249,642.74 | 359,531.17 | 11,503,576.42 | |
| (2) Equipment transformation | 209,802.10 | 209,802.10 | ||||
| (3) Other (Note 2) | 142,072,380.30 | 315,934.83 | 6,156.52 | 227.21 | 9,493.03 | 142,404,191.89 |
| 4. Ending balance | 679,826,973.93 | 3,297,491,984.75 | 29,714,678.34 | 55,458,686.60 | 76,970,398.09 | 4,139,462,721.71 |
| III. Depreciation reserves | ||||||
| 1. Beginning balance | 7,800,885.08 | 3,037.99 | 793.59 | 7,804,716.66 | ||
| 2. Increased amount of the period | ||||||
| (1) Withdrawal | ||||||
| 3. Decreased amount of the period | 33,947.85 | 33,947.85 | ||||
| (1) Disposal or scrap | ||||||
| (2) Equipment | 33,947.85 | 33,947.85 |
| Item | Buildings and structures | Machinery equipment | Transportation equipment | Electronic equipment | Other (Note 1) | Total |
| transformation | ||||||
| 4. Ending balance | 7,766,937.23 | 3,037.99 | 793.59 | 7,770,768.81 | ||
| IV. Carrying value | ||||||
| 1. Ending carrying value | 1,548,600,912.18 | 1,884,185,156.77 | 9,348,332.53 | 21,253,741.74 | 16,531,574.25 | 3,479,919,717.47 |
| 2. Beginning carrying value | 1,387,669,158.46 | 2,015,424,374.64 | 9,564,704.08 | 21,473,408.85 | 17,628,481.88 | 3,451,760,127.91 |
Note 1: Fixed Assets - Other refer to cooling system and sewage treatment station of NationStar Optoelectronicsand instruments and implement of Nanning Liaowang.Note 2: The original carrying value and accumulated depreciation, as well as other increases or decreases, aredue to the addition of ancillary facilities to properties and buildings, and the transfer to other non-current assetsbecause of purchase and storage.
(2) List of Temporarily Idle Fixed Assets
Naught.
(3) Fixed Assets Leased out by Operation Lease
Naught.
(4) Fixed Assets Failed to Accomplish Certification of Property
Other notes:
The Company’s Fuwan Standard Workshop J3, Fuwan Standard Workshop K1, Building 8 of Gaoming FamilyDormitory, Fuwan Staff Dormitory Building 7, Family Dormitory Building 3 to 6, Staff Village DormitoryBuilding A, Staff Village Dormitory Building 2, 3, 5, 6, 10 to 13, Staff Dormitory Building 1 to 4, FuwanEnergy Saving Lamp Workshop 2, Glass Workshop 8, Glass Workshop 9, Fluorescent Lamp Workshop,Standard Workshop A, R&D Workshop 11 to 14, Kelian Building, and LED Workshop 1-3 have beencompleted and put into use and carried forward fixed assets. As at 30 June 2024, the relevant propertycertificates are still in progress. The Management believes that obtaining such property certificates is not subjectto any substantive legal obstacles and has no significant adverse impact on the Company’s normal operations.In addition, the ten-story comprehensive building, Building 1 of Block A, Building 3 of Block B, etc., have noproperty ownership certificates due to historical matters, and these properties and buildings are involved in the
“pending expropriation” project, which is planned to be implemented by the relevant government departments,as detailed in Note VII-30. Other Non-current Assets.
(5) Impairment Test of Fixed Assets
□Applicable ?Not applicable
(6) Proceeds from Disposal of Fixed Assets
Unit: RMB
| Item | Ending balance | Beginning balance |
| Applying for scrapping indisposed equipment | 1,892,712.21 | 1,454,458.56 |
| Total | 1,892,712.21 | 1,454,458.56 |
22. Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance |
| Construction in progress | 1,070,611,321.57 | 1,174,533,505.11 |
| Total | 1,070,611,321.57 | 1,174,533,505.11 |
(1) List of Construction in Progress
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Construction in progress | 1,072,138,876.56 | 1,527,554.99 | 1,070,611,321.57 | 1,176,061,060.10 | 1,527,554.99 | 1,174,533,505.11 |
| Total | 1,072,138,876.56 | 1,527,554.99 | 1,070,611,321.57 | 1,176,061,060.10 | 1,527,554.99 | 1,174,533,505.11 |
(2) Changes in Significant Construction in Progress during the Reporting Period
Unit: RMB
| Item | Budget | Beginning balance | Increased amount | Transferred in fixed assets | Other decreased amounts | Ending balance | Proportion of accumulative investment in constructions to budget | Job schedule | Accumulative amount of interest capitalisation | Of which: Amount of capitalised interests for the Reporting Period | Capitalisation rate of interests for the Reporting Period | Capital resources |
| The Project of the Geely Industrial Park | 1,714,546,700.00 | 467,955,507.68 | 24,826,921.02 | 492,782,428.70 | 32.87% | 32.87% | 633,494.78 | 71,131.68 | 3.47% | Self-financing and borrowing | ||
| Kelian | 726,738, | 265,818,75 | 1,931,02 | 1,570,667.8 | 266,179, | 41.63% | 93.00% | 36,640,953.0 | Self- |
| Item | Budget | Beginning balance | Increased amount | Transferred in fixed assets | Other decreased amounts | Ending balance | Proportion of accumulative investment in constructions to budget | Job schedule | Accumulative amount of interest capitalisation | Of which: Amount of capitalised interests for the Reporting Period | Capitalisation rate of interests for the Reporting Period | Capital resources |
| Building | 900.00 | 1.84 | 6.18 | 7 | 110.15 | 2 | financing and borrowing | |||||
| FSL Hainan Industrial Park I | 310,400,000.00 | 165,138,431.72 | 12,008,236.18 | 177,146,667.90 | 62.21% | 63.00% | Fund raising and self-financing | |||||
| Gaoming office building | 212,135,300.00 | 164,777,145.48 | 52,955,808.81 | 211,834,365.64 | 5,898,588.65 | 3.03% | 95.00% | Self-financing | ||||
| Total | 2,963,820,900.00 | 1,063,689,836.72 | 91,721,992.19 | 211,834,365.64 | 1,570,667.87 | 942,006,795.40 | 37,274,447.80 | 71,131.68 | 3.47% |
(3) List of the Withdrawal of the Depreciation Reserves for Construction in ProgressNaught.
(4) Impairment Test of Construction in Progress
□Applicable ?Not applicable
(5) Engineering Materials
Naught.
23. Productive Living Assets
(1) Productive Living Assets Adopting Cost Measurement Mode
□Applicable ?Not applicable
(2) Impairment Testing of Productive Living Assets Adopting Cost Measurement Mode
□Applicable ?Not applicable
(3) Productive Living Assets Adopting Fair Value Measurement Mode
□Applicable ?Not applicable
24. Oil and Gas Assets
□Applicable ?Not applicable
25. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
| Item | Houses and buildings | Total |
| I. Original carrying value | ||
| 1. Beginning balance | 16,811,584.09 | 16,811,584.09 |
| 2. Increased amount of the period | 4,650,661.92 | 4,650,661.92 |
| (1) Leased in | 4,650,661.92 | 4,650,661.92 |
| 3. Decreased amount of the period | 8,156,616.28 | 8,156,616.28 |
| (1) Disposal | 8,156,616.28 | 8,156,616.28 |
| 4. Ending balance | 13,305,629.73 | 13,305,629.73 |
| II. Accumulated amortisation | ||
| 1. Beginning balance | 7,999,263.45 | 7,999,263.45 |
| 2. Increased amount of the period | 4,097,193.56 | 4,097,193.56 |
| (1) Withdrawal | 4,097,193.56 | 4,097,193.56 |
| 3. Decreased amount of the period | 3,771,215.66 | 3,771,215.66 |
| (1) Disposal | 3,771,215.66 | 3,771,215.66 |
| 4. Ending Balance | 8,325,241.35 | 8,325,241.35 |
| III. Depreciation reserves | ||
| 1. Beginning balance | ||
| 2. Increased amount of the period | ||
| 3. Decreased amount of the period | ||
| 4. Ending balance | ||
| IV. Carrying value | ||
| 1. Ending carrying value | 4,980,388.38 | 4,980,388.38 |
| 2. Beginning carrying value | 8,812,320.64 | 8,812,320.64 |
(2) Impairment Test of Right-of-use Assets
□Applicable ?Not applicable
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
| Item | Land use right | Patent | Non-patent technology | Software use rights | Total |
| I. Original carrying value | |||||
| 1. Beginning balance | 491,170,315.79 | 24,227,977.69 | 74,865,934.65 | 590,264,228.13 | |
| 2. Increased amount of the period | 53,752.18 | 5,904,368.98 | 5,958,121.16 |
| Item | Land use right | Patent | Non-patent technology | Software use rights | Total |
| (1) Purchase | 53,752.18 | 5,904,368.98 | 5,958,121.16 | ||
| 3. Decreased amount of the period | 69,584,050.87 | 69,584,050.87 | |||
| (1) Disposal | 69,584,050.87 | 69,584,050.87 | |||
| 4. Ending balance | 421,640,017.10 | 24,227,977.69 | 80,770,303.63 | 526,638,298.42 | |
| II. Accumulated amortisation | |||||
| 1. Beginning balance | 109,627,032.21 | 24,185,151.93 | 21,902,130.00 | 155,714,314.14 | |
| 2. Increased amount of the period | 4,920,465.90 | 3,903.10 | 5,624,943.38 | 10,549,312.38 | |
| (1) Withdrawal | 4,920,465.90 | 3,903.10 | 5,624,943.38 | 10,549,312.38 | |
| 3. Decreased amount of the period | 34,857,434.56 | 34,857,434.56 | |||
| (1) Disposal | 34,857,434.56 | 34,857,434.56 | |||
| 4. Ending balance | 79,690,063.55 | 24,189,055.03 | 27,527,073.38 | 131,406,191.96 | |
| III. Depreciation Reserves | |||||
| 1. Beginning balance | |||||
| 2. Increased amount of the period | |||||
| 3. Decreased amount of the period | |||||
| 4. Ending balance | |||||
| IV. Carrying value | |||||
| 1. Ending carrying value | 341,949,953.55 | 38,922.66 | 53,243,230.25 | 395,232,106.46 | |
| 2. Beginning carrying value | 381,543,283.58 | 42,825.76 | 52,963,804.65 | 434,549,913.99 |
The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending balance ofintangible assets was 0.00%.
(2) Data Resources Recognised as Intangible Assets
Naught.
(3) Land Use Right with Certificate of Title Uncompleted
Naught.
(4) Impairment Test of Intangible Assets
□Applicable ?Not applicable
27. Goodwill
(1) Original Carrying Value of Goodwill
Unit: RMB
| Name of the invested units or events generating goodwill | Beginning balance | Increase | Decrease | Ending balance | ||
| Formed by business combination | Disposal | |||||
| Nanning Liaowang Auto Lamp Co., Ltd. | 16,211,469.82 | 16,211,469.82 | ||||
| Foshan NationStar Optoelectronics Co., Ltd. | 405,620,123.64 | 405,620,123.64 | ||||
| Total | 421,831,593.46 | 421,831,593.46 | ||||
28. Long-term Prepaid Expense
Unit: RMB
| Item | Beginning balance | Increased amount | Amortisation amount of the period | Other decreased amount | Ending balance |
| Mould | 130,329,590.74 | 115,507,296.40 | 65,168,696.17 | 13,253,649.00 | 167,414,541.97 |
| Expense on maintenance and decoration | 49,146,320.04 | 6,751,286.13 | 10,426,803.16 | 45,470,803.01 | |
| Boarding box | 667,938.96 | 39,889.35 | 210,439.49 | 497,388.82 | |
| Others | 10,218,849.51 | 830,927.90 | 4,119,701.15 | 6,930,076.26 | |
| Total | 190,362,699.25 | 123,129,399.78 | 79,925,639.97 | 13,253,649.00 | 220,312,810.06 |
Other notes: Other decrease amount of moulds was mainly due to the provision for impairment and the sales of moulds
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets that Had not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Provision for impairment of assets | 435,105,859.50 | 66,462,224.17 | 390,622,029.71 | 59,298,411.33 |
| Unrealised profit of internal transactions | 110,879,700.14 | 16,631,955.04 | 37,737,392.89 | 5,660,608.94 |
| Deductible loss | 121,241,173.91 | 21,149,566.84 | 124,708,331.49 | 22,015,171.66 |
| Estimated expense | 50,202,680.16 | 7,530,402.02 | 46,135,701.47 | 6,920,355.22 |
| Depreciation of fixed assets | 49,521,055.65 | 7,428,158.35 | 54,793,929.61 | 8,219,089.44 |
| Accrued liabilities | 16,495,438.86 | 2,474,315.82 | 14,277,087.30 | 2,141,563.09 |
| Changes in the fair value of trading financial assets | 726,609.03 | 108,991.36 | 751,107.32 | 112,666.10 |
| Lease liabilities and others | 17,716,016.40 | 2,742,427.10 | 12,750,617.72 | 1,915,901.17 |
| Total | 801,888,533.65 | 124,528,040.70 | 681,776,197.51 | 106,283,766.95 |
(2) Deferred Income Tax Liabilities Had not Been Off-set
Unit: RMB
| Item | Ending balance | Beginning balance | ||
| Taxable temporary difference | Deferred income tax liabilities | Taxable temporary difference | Deferred income tax liabilities | |
| Assets assessment appreciation from business consolidation not under the same control | 81,212,531.53 | 12,181,879.73 | 83,667,098.60 | 12,550,064.79 |
| Changes in fair value of other investments in equity instruments | 392,010,890.64 | 58,801,633.60 | 417,362,085.59 | 62,604,312.84 |
| One-off depreciation of fixed assets | 626,634,231.58 | 94,353,357.81 | 649,066,960.98 | 97,598,859.53 |
| Changes in the fair value of trading financial assets | 1,659,245.00 | 248,886.75 | 1,559,845.00 | 233,976.75 |
| Right-of-use assets and others | 8,442,450.83 | 1,350,926.48 | 12,108,349.60 | 1,819,532.34 |
| Total | 1,109,959,349.58 | 166,936,684.37 | 1,163,764,339.77 | 174,806,746.25 |
(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set
Unit: RMB
| Item | Mutual set-off amount of deferred income tax assets and liabilities at the period-end | Amount of deferred income tax assets or liabilities after off-set at the period-end | Mutual set-off amount of deferred income tax assets and liabilities at the period-begin | Amount of deferred income tax assets or liabilities after off-set at the period-begin |
| Deferred income tax assets | 124,528,040.70 | 106,283,766.95 | ||
| Deferred income tax liabilities | 166,936,684.37 | 174,806,746.25 |
(4) List of Unrecognised Deferred Income Tax Assets
Naught.
(5) Deductible Losses of Unrecognised Deferred Income Tax Assets will Due in the Following YearsNaught.
30. Other Non-current Assets
Unit: RMB
| Item | Ending balance | Beginning balance | ||||
| Carrying amount | Depreciation reserves | Carrying value | Carrying amount | Depreciation reserves | Carrying value | |
| Long-term assets to be disposed (note) | 80,601,020.69 | 80,601,020.69 | 41,955,426.17 | 41,955,426.17 | ||
| Prepaid long-term assets acquisition funds | 44,550,073.05 | 44,550,073.05 | 36,085,714.00 | 36,085,714.00 | ||
| Advance payment for equipment and project | 31,752,262.94 | 31,752,262.94 | 40,991,898.73 | 40,991,898.73 | ||
| Prepayment for equity acquisition | 10,000,000.00 | 10,000,000.00 | 10,000,000.00 | 10,000,000.00 | ||
| Others | 295,352.80 | 295,352.80 | 294,664.28 | 294,664.28 | ||
| Total | 167,198,709.48 | 10,000,000.00 | 157,198,709.48 | 129,327,703.18 | 10,000,000.00 | 119,327,703.18 |
Other notes:
Note: The Company intends to hand over the plots of land located on the south and north sides of the GongyeRoad to the government for revitalisation in the form of “pending expropriation”. When the governmentsuccessfully sells the plots through a public auction, the Company will be given the compensation for the landtransfer according to the policy. The buildings and constructions to be revitalised include the plant of LEDWorkshop 3, the added plant of LED Workshop 3, the large plant in the south area (single-end workshop), theplant in the north area (four buildings), spark plug workshop of energy saving lamps warehouse, T8 Workshop1 (Building 2), LED Workshop 2, Building 14 of Iodine Lamp Workshop 3155m, the Company’s new finishedgoods warehouse 3662M2, materials warehouse (east end of single-end workshop), North Zone LPG station, T5warehouse in the North Zone, ten-story comprehensive building, Building 1 of Block A, Building 3 of Block B,etc.
31. Assets with Restricted Ownership or Right of Use
Unit: RMB
| Item | Period-end | Period-beginning | ||||||
| Carrying amount | Carrying value | Type of restriction | Status of restriction | Carrying amount | Carrying value | Type of restriction | Status of restriction | |
| Monetary Assets | 492,360,246.76 | 492,360,246.76 | Restricted use | Bill deposit, guarantee deposit, | 486,328,752.85 | 486,328,752.85 | Restricted use | Bill deposit, guarantee deposit, |
| Item | Period-end | Period-beginning | ||||||
| Carrying amount | Carrying value | Type of restriction | Status of restriction | Carrying amount | Carrying value | Type of restriction | Status of restriction | |
| pre-sale house payment, etc | pre-sale house payment, etc | |||||||
| Notes receivable | 750,368,403.26 | 750,368,403.26 | Pledge, endorsed or discounted but not yet due | Pledge of bill pool, bills receivable endorsed or discounted and not due | 873,275,556.80 | 873,275,556.80 | Pledge, endorsed or discounted but not yet due | Pledge of bill pool, bills receivable endorsed or discounted and not due |
| Fixed assets | 326,522,715.93 | 211,662,443.02 | Pledge | Mortgage guarantee of related parties | 326,522,715.93 | 219,746,331.38 | Pledge | Mortgage guarantee of related parties |
| Intangible assets | 15,551,408.00 | 10,497,200.96 | Pledge | Mortgage guarantee of related parties | 15,551,408.00 | 10,652,715.04 | Pledge | Mortgage guarantee of related parties |
| Accounts receivable financing | 31,596,200.00 | 31,596,200.00 | Pledged | Pledge of bill pool | 120,221,199.92 | 120,221,199.92 | Pledged | Pledge of bill pool |
| Total | 1,616,398,973.95 | 1,496,484,494.00 | 1,821,899,633.50 | 1,710,224,555.99 | ||||
32. Short-term Borrowings
(1) Category of Short-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pledged loans | 39,850,000.00 | |
| Mortgage loans | 20,000,000.00 | 83,330,000.00 |
| Credit borrowings | 65,000,000.00 | 70,000,000.00 |
| Acceptance bill discount | 66,689,877.73 | |
| Total | 124,850,000.00 | 220,019,877.73 |
(2) List of the Short-term Borrowings Overdue but not Returned
Naught.
33. Trading Financial Liabilities
Naught.
34. Derivative Financial Liabilities
Naught.
35. Notes Payable
Unit: RMB
| Category | Ending balance | Beginning balance |
| Bank acceptance bill | 2,052,737,312.65 | 2,256,122,566.65 |
| letter of credit | 15,052,221.04 | |
| Total | 2,052,737,312.65 | 2,271,174,787.69 |
The total amount of the due but not paid notes payable at the end of the period was of RMB0.00.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Accounts payable | 2,971,638,357.60 | 2,875,980,206.64 |
| Total | 2,971,638,357.60 | 2,875,980,206.64 |
(2) Significant Accounts Payable Aging over One Year or Overdue
Unit: RMB
| Item | Ending balance | Reason for not repayment or carry-over |
| No. 1 | 53,279,803.09 | It has not reached the settlement period |
| Total | 53,279,803.09 |
37. Other Payables
Unit: RMB
| Item | Ending balance | Beginning balance |
| Dividends payable | 184,293,387.60 | |
| Other payables | 430,552,163.03 | 362,491,923.01 |
| Total | 614,845,550.63 | 362,491,923.01 |
(1) Interest Payable
Naught.
(2) Dividends Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| Ordinary share dividends | 184,293,387.60 | |
| Total | 184,293,387.60 |
Other notes: Including significant dividends payable unpaid for over one year, the unpaid reason shall be disclosed: Naught.
(3) Other Payables
1) Other Payables Listed by Nature
Unit: RMB
| Item | Ending balance | Beginning balance |
| Transaction amount | 140,671,169.10 | 122,073,392.43 |
| Relevant expense of sales | 109,951,518.01 | 88,852,388.08 |
| Performance bond | 96,000,687.89 | 76,508,284.65 |
| Payments for demolition | 34,898,417.30 | 36,592,784.44 |
| Payment for equity transfer | 5,000,000.00 | 5,000,000.00 |
| Others | 44,030,370.73 | 33,465,073.41 |
| Total | 430,552,163.03 | 362,491,923.01 |
2) Significant Other Accounts Payable Aging over One Year or Overdue
Unit: RMB
| Item | Ending balance | Reason for not repayment or carry-over |
| Unit A | 100,046,577.48 | It has not reached the settlement period |
| Total | 100,046,577.48 |
38. Advances from Customers
(1) List of Advances from Customers
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advance payments received | 231,062.59 | 466,872.69 |
| Total | 231,062.59 | 466,872.69 |
(2) Significant Advances from Customers Aging over One Year or OverdueNaught.
39. Contract Liability
Unit: RMB
| Item | Ending balance | Beginning balance |
| Advances on sales | 136,319,866.46 | 235,335,693.28 |
| Total | 136,319,866.46 | 235,335,693.28 |
Significant contract liabilities aging over one year: Naught.
40. Payroll Payable
(1) List of Payroll Payable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Item | Beginning balance | Increase | Decrease | Ending balance |
| I. Short-term salary | 192,578,525.70 | 687,220,124.10 | 683,439,069.76 | 196,359,580.04 |
| II. Post-employment benefit-defined contribution plans | 1,252,286.96 | 60,736,517.03 | 60,667,816.51 | 1,320,987.48 |
| III. Termination benefits | 712,550.73 | 712,550.73 | ||
| Total | 193,830,812.66 | 748,669,191.86 | 744,819,437.00 | 197,680,567.52 |
(2) List of Short-term Salary
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Salary, bonus, allowance, subsidy | 189,203,378.17 | 605,069,847.01 | 600,337,718.86 | 193,935,506.32 |
| 2. Employee welfare | 39,743.10 | 29,828,256.30 | 29,828,433.13 | 39,566.27 |
| 3. Social insurance | 513,915.45 | 27,467,949.85 | 27,520,016.05 | 461,849.25 |
| Of which: Medical insurance premiums | 432,930.31 | 25,411,232.75 | 25,462,669.89 | 381,493.17 |
| Work-related injury insurance | 80,985.14 | 2,056,717.10 | 2,057,346.16 | 80,356.08 |
| 4. Housing fund | 498,319.50 | 19,702,612.21 | 19,681,009.93 | 519,921.78 |
| 5. Labour union budget and employee education budget | 2,323,169.48 | 5,151,458.73 | 6,071,891.79 | 1,402,736.42 |
| Total | 192,578,525.70 | 687,220,124.10 | 683,439,069.76 | 196,359,580.04 |
(3) List of Defined Contribution Plans
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| 1. Basic pension benefits | 941,107.39 | 56,317,069.74 | 56,310,872.05 | 947,305.08 |
| 2. Unemployment insurance | 29,771.68 | 2,015,785.00 | 2,015,259.25 | 30,297.43 |
| 3. Annuity | 281,407.89 | 2,403,662.29 | 2,341,685.21 | 343,384.97 |
| Total | 1,252,286.96 | 60,736,517.03 | 60,667,816.51 | 1,320,987.48 |
Other notes:
The Company participates in the scheme of pension insurance and unemployment insurance established bygovernment agencies as required. According to the scheme, fees are paid to it on a monthly basis and at the rateof stipulated by government agencies. In addition to the above monthly deposit fees, the Company no longerassumes further payment obligations. Corresponding expenses are recorded into the current profits or losses orthe cost of related assets when incurred.
41. Taxes Payable
Unit: RMB
| Item | Ending balance | Beginning balance |
| VAT | 37,093,526.88 | 15,318,825.56 |
| Corporate income tax | 24,245,663.48 | 17,336,516.13 |
| Personal income tax | 1,648,953.58 | 3,796,001.53 |
| City maintenance and construction tax | 3,270,422.27 | 1,905,489.83 |
| Property tax | 8,849,819.79 | 1,260,207.36 |
| Education surcharge | 2,260,139.15 | 1,423,582.17 |
| Land use tax | 1,320,801.82 | 247,268.25 |
| Others | 1,537,302.74 | 1,652,266.47 |
| Total | 80,226,629.71 | 42,940,157.30 |
42. Liabilities Held for sale
Naught.
43. Non-current Liabilities Due within One Year
Unit: RMB
| Item | Ending balance | Beginning balance |
| Current portion of long-term borrowings | 376,755,861.52 | 339,846,622.13 |
| Current portion of lease liabilities | 3,443,436.12 | 4,067,592.32 |
| Total | 380,199,297.64 | 343,914,214.45 |
44. Other Current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pending changerover output VAT and others | 8,817,198.94 | 23,162,317.81 |
| Reversed notes that are endorsed and undue | 185,618,921.58 | 71,846,109.20 |
| Total | 194,436,120.52 | 95,008,427.01 |
Increase/decrease of the short-term bonds payable: Naught.
45. Long-term Borrowings
(1) Category of Long-term Borrowings
Unit: RMB
| Item | Ending balance | Beginning balance |
| Mortgage loans | 36,511,789.18 | 27,754,169.97 |
| Credit borrowings | 614,641,612.44 | 565,185,873.45 |
| Less: Current portion of long-term borrowings | 376,755,861.52 | 339,846,622.13 |
| Total | 274,397,540.10 | 253,093,421.29 |
46. Bonds Payable
Naught.
47. Lease Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Leasing liabilities | 5,420,389.26 | 8,378,560.24 |
| Less: current portion of lease liabilities | 3,443,436.12 | 4,067,592.32 |
| Total | 1,976,953.14 | 4,310,967.92 |
Other notes:
Analysis of maturity fate of lease liabilities
| Item | Ending balance | Beginning balance |
| One to two years | 1,885,905.40 | 1,637,899.09 |
| Two to five years | 91,047.74 | 2,673,068.83 |
| Total | 1,976,953.14 | 4,310,967.92 |
48. Long-term Accounts Payable
Naught.
49. Long-term Employee Benefits Payable
Naught.
50. Provisions
Unit: RMB
| Item | Ending balance | Beginning balance | Formed reason |
| Product quality assurance | 16,495,438.86 | 14,277,087.30 | Provision for product quality guarantee expenses |
| Total | 16,495,438.86 | 14,277,087.30 |
51. Deferred Income
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | Formed reason |
| Government grants | 75,185,461.27 | 12,184,500.00 | 19,952,488.19 | 67,417,473.08 | Government allocations |
| Total | 75,185,461.27 | 12,184,500.00 | 19,952,488.19 | 67,417,473.08 |
Other notes:
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in the Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related income |
| Government grants related to assets | 63,950,864.78 | 6,763,500.00 | 11,549,664.02 | 59,164,700.76 | ||||
| The Projects of the Production Expansion and Technological Transformation of Components of Small-spacing and Outdoor LED Displays | 14,068,497.44 | 2,032,275.84 | 12,036,221.60 | Related to assets | ||||
| The Project of the Innovation in Packaging Technology and Technological Transformation of Key Packaging Equipment of LEDs with High Colour Rendering Index for Illumination | 7,623,293.17 | 785,363.70 | 6,837,929.47 | Related to assets | ||||
| 2023 Award Funds Project for Industrial Enterprise Expansion Investment, Technological Innovation and Quality Improvement of Hainan Province | 4,763,500.00 | 4,763,500.00 | Related to assets | |||||
| The Project of the Innovation in Packaging Technology and Technological Transformation of Key Packaging Equipment of LEDs with Small Spacing for Display | 4,832,954.10 | 548,355.48 | 4,284,598.62 | Related to assets | ||||
| 2022 Award Funds Project for Industrial Enterprise Expansion Investment, Technological Innovation and Quality Improvement of Hainan Province | 4,137,000.00 | 4,137,000.00 | Related to assets | |||||
| The Subsidy for Metal-organic Chemical Vapour Deposition (MOCVD) | 7,084,696.84 | 4,800,912.92 | 2,283,783.92 | Related to assets | ||||
| The First Batch of 2022 Special Funds for Industrial Technological Transformation by the Finance Bureau of Liang Jiang New Area | 2,047,999.99 | 128,000.00 | 1,919,999.99 | Related to assets | ||||
| The Project of Resource Conservation and Environmental Protection | 2,440,481.00 | 671,246.82 | 1,769,234.18 | Related to assets | ||||
| The Second Batch of Support Funds for the "Technological Transformation of Thousands of Enterprises" in the Guangxi Zhuang Autonomous Region for 2021 | 1,566,666.58 | 100,000.02 | 1,466,666.56 | Related to assets | ||||
| The 2019 Second Batch of Special Funds of RMB3 million for the Industrial and Information Development of the City | 1,500,000.00 | 150,000.00 | 1,350,000.00 | Related to assets | ||||
| Special Project on Deep-sea | 1,200,00 | 1,200,0 | Related to |
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in the Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related income |
Technology Industry Promotion(Industry Development Category) ofHainan Deep-Sea TechnologyInnovation Centre - Project onBuilding and Commercial Operationof Deep-sea Lighting ProductProduction Line
| 0.00 | 00.00 | assets | ||||||
| The First Batch of Special Funds for the Industrial and Information Development for the Guangxi Zhuang Autonomous Region for 2017 (Technological Transformation) for Liuzhou Guige | 1,366,666.93 | 199,999.98 | 1,166,666.95 | Related to assets | ||||
| The Project of the First Batch of Support Funds for Enterprises in Liuzhou City for 2017 for Liuzhou Guige | 1,200,000.00 | 150,000.00 | 1,050,000.00 | Related to assets | ||||
| Research and Development and Industrialisation Project of Potassium Nitride-based Rf Devices in the Field of Next Generation Mobile Communication | 857,384.58 | 56,798.76 | 800,585.82 | Related to assets | ||||
| Research on the Third-generation Semiconductor Power Device and Module Packaging Technology | 800,000.00 | 800,000.00 | Related to assets | |||||
| The 2019 14th Batch of Industrial Support Funds of RMB1.5 million | 750,000.00 | 75,000.00 | 675,000.00 | Related to assets | ||||
| Intelligent Technology Reform Project of LED Packaging Workshop in Geely Industrial Park (Phase I) | 620,755.00 | 620,755.00 | Related to assets | |||||
| The First Batch of 2022 Special Funds for Micro, Small, and Medium Enterprises | 560,000.01 | 35,000.00 | 525,000.01 | Related to assets | ||||
| The Innovation Fund for Enterprises in Liudong New Area for 2017 for Liuzhou Guige | 600,000.00 | 75,000.00 | 525,000.00 | Related to assets | ||||
| The Project of the Third Batch of Special Funds of Innovation-driven Development for the Guangxi Zhuang Autonomous Region for 2018 for Liuzhou Guige | 520,000.00 | 48,000.00 | 472,000.00 | Related to assets | ||||
| LED Technology for Efficient Cultivation in Modern Agriculture and Its Demonstrative Application | 607,172.60 | 143,251.56 | 463,921.04 | Related to assets | ||||
| The Project of Support Funds for Enterprises in Liuzhou City for 2020 for Liuzhou Guige | 516,666.57 | 100,000.02 | 416,666.55 | Related to assets | ||||
| The Key Labs of Semiconductor | 434,562. | 37,718.7 | 396,843 | Related to |
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in the Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related income |
| Micro Display Enterprises in Guangdong Province (for 2020) | 60 | 0 | .90 | assets | ||||
| The Project of Key Technologies and Industrialisation of Silica-based Gallium Nitride Power Components | 380,250.00 | 30,495.00 | 349,755.00 | Related to assets | ||||
| The Project of Research and Development and Industrialisation of NB-IoT-based Multi-Mode Low-Power Wide-Area Internet of Things Node Chips and Packaging Technology | 361,725.80 | 18,915.90 | 342,809.90 | Related to assets | ||||
| The Project of Financial Support for Developing Liuzhou City into an Industrial Internet of Things (IIOT) Demonstration City for 2021 for Liuzhou Guige | 421,333.24 | 79,000.02 | 342,333.22 | Related to assets | ||||
| The Demonstration of Industrial Internet of Things (IIOT) Applications for LED Production Control | 380,668.88 | 67,332.78 | 313,336.10 | Related to assets | ||||
| Others | 9,072,089.45 | 1,216,996.52 | 7,855,092.93 | Related to assets | ||||
| Government grants related to income | 11,234,596.49 | 5,421,000.00 | 8,402,824.17 | 8,252,772.32 | ||||
| The Research on the Key Technology of 4K/8K Full-colour Micro-LED Displays with Ultra High Definition (UHD) | 4,962,516.28 | 2,911,576.13 | 2,050,940.15 | Related to income | ||||
| 2023 Automotive Lamp Production Digitalisation Workshop Technology Improvement Project | 765,000.00 | 1,030,000.00 | 94,000.00 | 1,701,000.00 | Related to income | |||
| Research on Key Technologies of the Third Generation of High Frequency Semiconductor Electronic Power Module in Colleges and Universities | 1,705,474.54 | 33,235.86 | 1,672,238.68 | Related to income | ||||
| The Research on Full-colour and Integrated Packaging of Micro-LED Display with High Brightness and Contrast | 1,770,402.30 | 877,192.23 | 893,210.07 | Related to income | ||||
| The Fund for the Intelligent Transformation and Upgrading Projects of Automobile Enterprises for 2021 | 487,333.22 | 34,000.02 | 453,333.20 | Related to income | ||||
| The Fund for the Project of the Management Committee of the Liuzhou High-tech Industrial Development Zone | 448,000.12 | 31,999.98 | 416,000.14 | Related to income | ||||
| The Guangdong-Hong Kong-Macao | 350,000. | 3,983.07 | 346,016 | Related to |
| Item | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount recorded into other income in the Reporting Period | Amount offset cost in the Reporting Period | Other changes | Ending balance | Related to assets/related income |
| Joint Lab of Intelligent Micro-nano Photoelectric Technology | 00 | .93 | income | |||||
| The Special Fund of the Science and Technology Department of the Guangxi Zhuang Autonomous Region for Innovation-driven Development for 2020 | 340,000.00 | 30,000.00 | 310,000.00 | Related to income | ||||
| Epitaxial Growth and Chip Fabrication Techniques for High-Performance Deep Ultraviolet LED | 400,000.00 | 400,000.00 | Related to income | |||||
| Others | 5,870.03 | 4,391,000.00 | 3,986,836.88 | 410,033.15 | Related to income | |||
| Total | 75,185,461.27 | 12,184,500.00 | 19,952,488.19 | 67,417,473.08 |
52. Other Non-current Liabilities
Unit: RMB
| Item | Ending balance | Beginning balance |
| Pending changerover output VAT | 205,769.48 | |
| Total | 205,769.48 |
53. Share Capital
Unit: RMB
| Beginning balance | Increase/decrease (+/-) | Ending balance | |||||
| New issues | Bonus shares | Bonus issue from profit | Others | Sub-total | |||
| Total shares | 1,548,778,230.00 | 1,548,778,230.00 | |||||
Other notes:
| Item/Investor | Beginning balance | Increase | Decrease | Ending balance | ||
| Invested amount | Proportion | Invested amount | Proportion | |||
| Restricted shares | 197,537,241.00 | 12.75% | 140,165,794.00 | 57,371,447.00 | 3.70% | |
| Unrestricted shares | 1,351,240,989.00 | 87.25% | 140,165,794.00 | 1,491,406,783.00 | 96.30% | |
| Total | 1,548,778,230.00 | 100.00% | 140,165,794.00 | 140,165,794.00 | 1,548,778,230.00 | 100.00% |
54. Other Equity Instrument
Naught.
55. Capital Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Capital premium (premium on stock) | 907,090,354.12 | 907,090,354.12 | ||
| Other capital reserves | 7,245,971.54 | 7,245,971.54 | ||
| Total | 914,336,325.66 | 914,336,325.66 |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change: Naught.
56. Treasury Shares
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Treasury shares (A-share) | 82,165,144.15 | 82,165,144.15 | ||
| Total | 82,165,144.15 | 82,165,144.15 |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change: Naught.
57. Other Comprehensive Income
Unit: RMB
| Item | Beginning balance | Reporting Period | Ending balance | |||||
| Income before taxation in the Current Period | Less: Recorded in other comprehensive income in prior period and transferred to profit or loss in the Current Period | Less: Recorded in other comprehensive income in prior period and transferred to retained earnings in the Current Period | Less: Income tax expense | Attributable to owners of the Company as the parent after tax | Attributable to non-controlling interests after tax | |||
| I. Other comprehensive income that may not subsequently be reclassified to profit or loss | 359,730,272.74 | -25,351,194.95 | -3,802,679.24 | -21,548,515.71 | 338,181,757.03 | |||
| Changes in fair value of other investments in equity instruments | 359,730,272.74 | -25,351,194.95 | -3,802,679.24 | -21,548,515.71 | 338,181,757.03 | |||
| II. Other comprehensive income that may be reclassified to profit or loss | 296,754.85 | -1,217,559.83 | -654,873.21 | -562,686.62 | -358,118.36 | |||
| Differences arising from translation of foreign | 296,754.85 | -1,217,559.83 | -654,873.21 | -562,686.62 | -358,118.36 | |||
| Item | Beginning balance | Reporting Period | Ending balance | |||||
| Income before taxation in the Current Period | Less: Recorded in other comprehensive income in prior period and transferred to profit or loss in the Current Period | Less: Recorded in other comprehensive income in prior period and transferred to retained earnings in the Current Period | Less: Income tax expense | Attributable to owners of the Company as the parent after tax | Attributable to non-controlling interests after tax | |||
| currency-denominated financial statements | ||||||||
| Total of other comprehensive income | 360,027,027.59 | -26,568,754.78 | -3,802,679.24 | -22,203,388.92 | -562,686.62 | 337,823,638.67 | ||
Other notes, including the note to the adjustment of the initial recognition amount of hedged item transferred from the effectivegain/loss on cash flow hedges:
Naught.
58. Specific Reserve
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Production safety reserve | 1,213,325.92 | 4,940,359.02 | 1,746,320.26 | 4,407,364.68 |
| Total | 1,213,325.92 | 4,940,359.02 | 1,746,320.26 | 4,407,364.68 |
Other notes, including a description of the increase or decrease for the current period and the reasons for the change:
The increase in the current year represents the safety production expenses accrued in accordance with the proportion stipulated inthe Notice on issuing the Management Measures for the Provision and Use of Enterprise Production Safety Costs (C.Z. [2022] No.
136), and the decrease in the current year represents the actual safety production expenses incurred.
59. Surplus Reserves
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance |
| Statutory surplus reserve | 66,264,408.10 | 66,264,408.10 | ||
| Discretionary surplus reserve | 41,680,270.96 | 41,680,270.96 | ||
| Total | 107,944,679.06 | 107,944,679.06 |
60. Retained Profits
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Beginning balance of retained earnings before adjustments | 3,435,308,364.11 | 3,296,490,575.52 |
| Item | Reporting Period | Same period of last year |
| Beginning balance of total retained earnings of adjustments (“+” for increase, “-” for decrease) | -54,747.02 | |
| Beginning balance of retained earnings after adjustments | 3,435,308,364.11 | 3,296,435,828.50 |
| Add: Net profit attributable to owners of the Company as the parent | 192,229,182.38 | 290,357,652.22 |
| Less: Withdrawal of statutory surplus reserves | 16,585,651.91 | |
| Dividend of ordinary shares payable | 184,293,387.60 | 134,899,464.70 |
| Ending retained earnings | 3,443,244,158.89 | 3,435,308,364.11 |
List of adjustment of beginning retained earnings:
(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the AccountingStandards for Business Enterprises and relevant new regulations.
(2) RMB0.00 beginning retained earnings was affected by changes in accounting policies.
(3) RMB0.00 beginning retained earnings was affected by correction of significant accounting errors.
(4) RMB0.00 beginning retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 beginning retained earnings was affected totally by other adjustments.
Note: Due to changes in accounting policies from the previous year, the retained profits at the beginning of the previous year wereRMB-54,747.02.
61. Operating Revenue and Cost of Sales
Unit: RMB
| Item | Reporting Period | Same period of last year | ||
| Operating revenue | Cost of sales | Operating revenue | Cost of sales | |
| Main operations | 4,641,840,263.11 | 3,761,579,956.02 | 4,405,159,052.69 | 3,604,574,132.92 |
| Other operations | 142,705,504.31 | 100,078,120.59 | 160,903,676.33 | 128,900,695.96 |
| Total | 4,784,545,767.42 | 3,861,658,076.61 | 4,566,062,729.02 | 3,733,474,828.88 |
Breakdown information of operating revenue and cost of sales:
Unit: RMB
| Category of contracts | Total | |
| Operating revenue | Cost of sales | |
| Business type | 4,784,545,767.42 | 3,861,658,076.61 |
| Of which: | ||
| General lighting products | 1,718,962,585.41 | 1,268,088,979.58 |
| LED packaging and component products | 1,323,471,292.10 | 1,099,752,921.69 |
| Vehicle lamp products | 1,045,063,423.50 | 852,898,599.13 |
| Trade and other products | 697,048,466.41 | 640,917,576.21 |
| By operating places | 4,784,545,767.42 | 3,861,658,076.61 |
| Of which: | ||
| Domestic | 3,747,878,177.49 | 2,991,223,462.34 |
| Overseas | 1,036,667,589.93 | 870,434,614.27 |
Information related to transaction value assigned to residual performance obligations:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not
completed at the end of the Reporting Period was RMB248,672,435.17.
62. Taxes and Surtaxes
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Urban maintenance and construction tax | 11,477,398.90 | 11,300,137.99 |
| Education surcharge | 5,817,380.58 | 5,980,104.43 |
| Property tax | 12,240,976.04 | 11,009,535.41 |
| Land use tax | 1,862,982.54 | 3,483,007.51 |
| Vehicle and vessel use tax | 11,539.44 | 11,986.96 |
| Stamp duty | 4,090,236.94 | 3,297,666.10 |
| Local education surcharge | 2,386,760.07 | 2,165,938.97 |
| Environmental protection tax | 19,936.01 | 41,537.23 |
| Embankment fee | 2,613.03 | 128.45 |
| Deed tax | 146,289.40 | |
| Others | 7,115.68 | 6,966.68 |
| Total | 37,916,939.23 | 37,443,299.13 |
63. Administrative Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Employee benefits | 130,927,710.77 | 125,958,952.18 |
| Depreciation charge | 39,408,441.47 | 25,811,976.14 |
| Office expenses | 18,519,960.05 | 13,062,802.09 |
| Intermediary agency fee | 5,246,590.63 | 4,119,910.31 |
| Engineering decoration cost | 4,801,504.22 | 6,357,723.64 |
| Rent of land and management charge | 4,141,330.16 | 1,104,528.44 |
| Amortisation of intangible assets | 4,114,485.79 | 4,630,270.87 |
| Utilities | 3,149,472.00 | 4,491,149.48 |
| Labour cost | 2,666,214.20 | 1,731,130.54 |
| Security fund for the disabled | 30,023.52 | 102,385.50 |
| Party building funds | 87,374.01 | |
| Others | 13,327,229.70 | 13,487,882.22 |
| Total | 226,332,962.51 | 200,946,085.42 |
64. Selling Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Employee benefits | 72,432,535.06 | 57,961,009.41 |
| Business propagandise fees and advertising fees | 53,863,531.30 | 30,216,805.26 |
| After-sales expenses | 8,564,114.94 | 6,867,083.35 |
| Office expenses | 6,876,969.60 | 2,944,396.54 |
| Sales promotion fees | 6,294,529.20 | 7,233,896.10 |
| Business travel charges | 5,507,517.26 | 4,858,839.15 |
| Commercial insurance premium | 3,232,729.39 | 3,582,158.77 |
| Others | 19,038,902.55 | 18,256,941.42 |
| Item | Reporting Period | Same period of last year |
| Total | 175,810,829.30 | 131,921,130.00 |
65. Development Costs
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Personnel and labour costs | 126,235,339.99 | 108,806,040.39 |
| Direct investment expenses | 82,440,945.66 | 74,178,886.31 |
| Depreciation expenses and long-term prepaid expenses | 22,649,859.13 | 22,819,097.36 |
| Cost of outsourcing external R&D | 3,917,155.30 | 188,759.61 |
| Design fees | 1,696,516.00 | 406,394.30 |
| Amortisation charge of intangible assets | 28,166.42 | 125,382.49 |
| Other Fees | 23,197,968.13 | 19,624,344.80 |
| Total | 260,165,950.63 | 226,148,905.26 |
Other notes:
In respect of R&D expense incurred by the Company, expense other than that on bench-scale and pilot-scaleproduction is included in R&D expense; and sales revenue of products from bench-scale and pilot-scaleproduction is included in core business revenue and the relevant costs are included in cost of sales of corebusiness.
66. Finance Cost
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Interest costs | 11,047,212.70 | 14,255,244.44 |
| Less: Interest income | 25,938,447.85 | 24,520,047.73 |
| Foreign exchange gains or losses | -17,140,676.80 | -21,315,108.34 |
| Handling charge and others | 1,425,667.21 | 1,417,289.22 |
| Total | -30,606,244.74 | -30,162,622.41 |
67. Other Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| The Deductible Input Tax for Advanced Manufacturing Enterprises | 30,052,926.81 | |
| The Tax Incentives for The Poor | 5,435,946.87 | 2,247,050.00 |
| The Subsidy for Metal-organic Chemical Vapour Deposition (MOCVD) | 4,800,912.92 | 8,258,085.76 |
| The Research on the Key Technology of 4K/8K Full-colour Micro-LED Displays with Ultra High Definition (UHD) | 2,911,576.13 | 1,338,901.10 |
| The Projects of the Production Expansion and Technological Transformation of Components of Small-spacing and Outdoor LED Displays | 2,032,275.84 | 2,032,275.84 |
| CAE software Research Project for Multi-physics Field Coupling Simulation of NationStar LED Products | 1,890,966.85 | |
| Manufacturing Operation Management MOM Prototype Software | 1,880,000.00 |
| Sources | Reporting Period | Same period of last year |
| Research Project for NationStar Manufacturing Scenarios | ||
| The Research on Full-colour and Integrated Packaging of Micro-LED Display with High Brightness and Contrast | 877,192.23 | 116,069.52 |
| The Project of the Innovation in Packaging Technology and Technological Transformation of Key Packaging Equipment of LEDs with High Colour Rendering Index for Illumination | 785,363.70 | 1,014,030.94 |
| The Project of Resource Conservation and Environmental Protection | 671,246.82 | 904,683.72 |
| Support Fund for the Digital Intelligent Transformation of the Manufacturing Industry | 592,548.00 | 172,700.00 |
| The Project of the Innovation in Packaging Technology and Technological Transformation of Key Packaging Equipment of LEDs with Small Spacing for Display | 548,355.48 | 510,442.92 |
| Chancheng District Government Quality Award | 500,000.00 | |
| Reward Funds for Smart Factory Demonstration Enterprises and Digital Workshops | 500,000.00 | |
| Return of handling charges for withholding and remittance | 479,040.08 | 737,693.99 |
| Epitaxial Growth and Chip Fabrication Techniques for High-Performance Deep Ultraviolet LED | 400,000.00 | |
| Enterprise with 5A Quality Management Maturity | 400,000.00 | |
| Standardised Strategy Municipal Subsidy Funds | 370,000.00 | |
| Incentive for standard products of Foshan City | 360,000.00 | 400,000.00 |
| Incentive Subsidy for Digital and Intelligent Demonstration Workshop of Foshan City in 2022 | 2,000,000.00 | |
| Subsidy for Industrial Logistics in the Second Quarter of 2022 | 808,200.00 | |
| The Research on the Key Technology of Full-colour Micro-LED Displays with High Brightness and Contrast | 506,013.47 | |
| The 2021 "100 Enterprises Strive for the First Place" bonus | 500,000.00 | |
| The Visible Light Communication and Positioning System for the Industrial Internet of Things (IIOT) | 473,516.21 | |
| 2022 Special Funds of Nanhai District, Foshan City for Promoting High-quality Development of Foreign Trade | 347,360.00 | |
| Enterprise R&D Reward and Subsidy | 333,200.00 | |
| Others | 4,663,061.46 | 4,689,768.58 |
| Total | 60,151,413.19 | 27,389,992.05 |
68. Net Gain on Exposure Hedges
Naught.
69. Gains from Changes in Fair Value
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Financial assets held for trading | -601,447.40 | 905,952.44 |
| Trading financial liabilities | -23,059,475.00 | |
| Total | -601,447.40 | -22,153,522.56 |
70. Investment Income
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Item | Reporting Period | Same period of last year |
| Long-term equity investment income accounted by equity method | 1,444,720.72 | 1,186,031.53 |
| Investment income from disposal of trading financial assets | 2,911,077.39 | 2,649,651.54 |
| Dividend income from holding of other equity instrument investment | 19,990,672.99 | 16,686,333.81 |
| Interest income of investment in other debt obligations during holding period | 13,671,028.14 | |
| Investment income from financial products and structural deposits | 1,927,553.75 | |
| Total | 38,017,499.24 | 22,449,570.63 |
71. Credit Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Bad debt loss on notes receivable | -266,311.20 | -512,338.76 |
| Bad debt loss on accounts receivable | -37,243,385.45 | -19,672,657.13 |
| Bad debt loss on other receivables | -761,111.93 | 1,237,574.86 |
| Total | -38,270,808.58 | -18,947,421.03 |
72. Asset Impairment Loss
Unit: RMB
| Item | Reporting Period | Same period of last year |
| I. Loss on inventory valuation and contract performance cost | -29,752,322.32 | -14,576,382.64 |
| IV. Loss on impairment of fixed assets | -1,500,990.00 | |
| XI. Loss on impairment of contract Assets | 808,278.52 | -313,516.09 |
| XII. Others | -8,014,761.09 | |
| Total | -36,958,804.89 | -16,390,888.73 |
73. Assets Disposal Income
Unit: RMB
| Sources | Reporting Period | Same period of last year |
| Gains/losses from the disposal of non-current assets | -99,108.79 | 110,475.52 |
| Total | -99,108.79 | 110,475.52 |
74. Non-operating Income
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Government grants | 11,000.00 | ||
| Total income from scrap of non-current assets | 320,853.22 | 37,753.32 | 320,853.22 |
| Of which: income from scrap of fixed assets | 320,853.22 | 37,753.32 | 320,853.22 |
| Income from default money | 1,460,120.49 | 11,400.00 | 1,460,120.49 |
| Confiscated income | 54,273.27 | 106,635.54 | 54,273.27 |
| Others | 1,219,612.57 | 2,274,125.62 | 1,219,612.57 |
| Total | 3,054,859.55 | 2,440,914.48 | 3,054,859.55 |
75. Non-operating Expense
Unit: RMB
| Item | Reporting Period | Same period of last year | Amount recorded in the current non-recurring profit or loss |
| Losses from damage and scrap of non-current assets | 156,010.36 | 1,547,347.79 | 156,010.36 |
| Of which: Loss on disposal of fixed assets | 156,010.36 | 1,547,347.79 | 156,010.36 |
| Penalty and fine for delaying payment | 204,491.05 | 1,842,755.41 | 204,491.05 |
| Others | 125,716.02 | 1,390,467.12 | 125,716.02 |
| Total | 486,217.43 | 4,780,570.32 | 486,217.43 |
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Current income tax expense | 31,645,407.23 | 34,309,667.76 |
| Deferred income tax expense | -7,013,025.11 | -3,005,303.27 |
| Total | 24,632,382.12 | 31,304,364.49 |
(2) Adjustment Process of Accounting Profit and Income Tax Expense
Unit: RMB
| Item | Reporting Period |
| Profit before taxation | 278,074,638.77 |
| Current income tax expense accounted at statutory/applicable tax rate | 41,711,195.82 |
| Influence of applying different tax rates by subsidiaries | 600,242.10 |
| Influence of income tax before adjustment | 2,642,987.97 |
| Influence of non-taxable income | -3,691,644.03 |
| Influence of non-deductable costs, expenses and losses | 9,442.91 |
| The effect of using deductible losses of deferred income tax assets that have not been recognised in the previous period | -6,851,117.26 |
| Influence of unrecognised deductible temporary differences | 8,588,753.73 |
| and deductible losses | |
| Influence of deduction | -18,377,479.12 |
| Income tax expenses | 24,632,382.12 |
77. Other Comprehensive Income
Refer to Note VII Notes to Main Items of Consolidated Financial Statements-57 for details.
78. Cash Flow Statement
(1) Cash Related to Operating Activities
Cash generated from other operating activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Margin | 22,370,050.64 | 35,010,552.18 |
| Deposit interest | 22,332,393.90 | 19,310,323.07 |
| Income from subsidy | 20,458,063.38 | 10,420,346.33 |
| Income from waste | 14,076,991.86 | 12,864,885.36 |
| Rental income from property and equipment, utility | 2,272,907.82 | 3,406,219.56 |
| Others | 37,878,011.81 | 60,095,266.63 |
| Total | 119,388,419.41 | 141,107,593.13 |
Cash used in other operating activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Administrative expense paid in cash | 61,546,270.39 | 56,194,828.30 |
| Selling expense paid in cash | 46,645,367.15 | 31,789,893.32 |
| Finance costs paid in cash | 1,012,751.95 | 1,521,292.79 |
| Returned cash deposit | 52,147,104.25 | 28,216,695.73 |
| Others | 31,406,796.05 | 31,773,841.24 |
| Total | 192,758,289.79 | 149,496,551.38 |
(2) Cash Related to Investing Activities
Cash generated from other investing activitiesNaught.Significant cash received related to investing activitiesNaught.Notes to other cash payments related to financing activities:
Naught.Cash used in other investing activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Others | 360,759.99 | |
| Total | 360,759.99 |
(3) Cash Related to Financing Activities
Cash generated from other financing activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Recapture bank acceptance bill margin | 7,224,809.91 | 381,437.71 |
| Total | 7,224,809.91 | 381,437.71 |
Cash used in other financing activities
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Payment for cash deposit of bank acceptance bills | 10,803,556.41 | 2,124,043.19 |
| Payment for financing intermediary fees, etc | 211,897.22 | |
| Others | 485,855.80 | 179,384.83 |
| Total | 11,501,309.43 | 2,303,428.02 |
Changes in liabilities arising from financing activities?Applicable □ Not applicable
Unit: RMB
| Item | Beginning balance | Increase | Decrease | Ending balance | ||
| Cash | Non-cash | Cash | Non-cash | |||
| Short-term borrowings | 220,019,877.73 | 89,896,989.00 | 85,000,000.00 | 100,066,866.73 | 124,850,000.00 | |
| Long-term loans | 253,093,421.29 | 110,214,340.57 | 10,114,335.27 | 51,909,636.00 | 47,114,921.03 | 274,397,540.10 |
| Other payables - equity transfer payments | 5,000,000.00 | 5,000,000.00 | ||||
| Non-current liabilities due within one year | 343,914,214.45 | 64,060,020.14 | 27,774,936.95 | 380,199,297.64 | ||
| Leasing liabilities | 4,310,967.92 | 7,958,032.33 | 433,063.09 | 9,858,984.02 | 1,976,953.14 | |
| Total | 826,338,481.39 | 200,111,329.57 | 82,132,387.74 | 137,342,699.09 | 184,815,708.73 | 786,423,790.88 |
(4) Explanation for Presentation of Cash Flows on a Net Basis
Naught.
(5) Significant Activities and Financial Impact that Do Not Involve Current Cash Receipts andDisbursements but Affect the Company’s Financial Position or May Affect the Company’s Cash Flows inthe FutureNaught.
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
| Supplemental information | Reporting Period | Same period of last year |
| 1. Reconciliation of net profit to net cash generated from/used in operating activities: | ||
| Net profit | 253,442,256.65 | 225,105,288.29 |
| Add: Provision for impairment of assets | 75,229,613.47 | 35,338,309.76 |
| Depreciation of fixed assets, oil-gas assets, and productive living assets | 263,094,158.49 | 261,275,385.66 |
| Depreciation of right-of-use assets | 4,097,193.56 | 4,213,175.21 |
| Amortisation of intangible assets | 10,549,312.38 | 6,138,499.52 |
| Amortisation of long-term deferred expenses | 79,925,639.97 | 33,792,488.83 |
| Loss from disposal of fixed assets, intangible assets and other long-term assets (gains: negative) | 99,108.79 | -110,475.52 |
| Losses from scrapping of fixed assets (gains: negative) | -164,842.86 | 1,509,594.47 |
| Losses from changes in fair value (gains: negative) | 601,447.40 | 22,153,522.56 |
| Finance costs (gains: negative) | -6,093,464.10 | 14,255,244.44 |
| Investment loss (gains: negative) | -38,017,499.24 | -22,449,570.63 |
| Decrease in deferred income tax assets (increase: negative) | -18,244,273.75 | -3,951,966.78 |
| Increase in deferred income tax liabilities (“-” for decrease) | -4,067,382.64 | 946,663.51 |
| Decrease in inventory (“-” for increase) | 227,917,770.99 | 367,566,004.75 |
| Decrease in operating receivables (“-” for increase) | -250,051,969.33 | -492,079,133.11 |
| Increase in operating payables (“-” for decrease) | -219,105,024.82 | -65,833,973.76 |
| Others | 5,380,999.65 | 0.00 |
| Net cash generated from/used in operating activities | 384,593,044.61 | 387,869,057.20 |
| 2. Significant investing and financing activities without involvement of cash receipts and payments | ||
| Transfer of debts into capital | ||
| Current portion of convertible corporate bonds | ||
| Fixed assets leased in for financing |
| Supplemental information | Reporting Period | Same period of last year |
| 3.Net increase/decrease of cash and cash equivalents: | ||
| Ending balance of cash | 2,687,757,730.67 | 1,974,721,331.65 |
| Less: Beginning balance of cash | 3,101,252,943.88 | 1,945,971,307.26 |
| Add: Ending balance of cash equivalents | ||
| Less: Beginning balance of cash equivalents | ||
| Net increase in cash and cash equivalents | -413,495,213.21 | 28,750,024.39 |
(2) Net Cash Paid For Acquisition of Subsidiaries
Naught.
(3) Net Cash Received from Disposal of the Subsidiaries
Naught.
(4) Cash and Cash Equivalents
Unit: RMB
| Item | Ending balance | Beginning balance |
| I. Cash | 2,687,757,730.67 | 3,101,252,943.88 |
| Including: Cash on hand | 41,943.58 | 42,466.76 |
| Bank deposits available on demand | 2,667,512,806.58 | 3,097,947,293.67 |
| Other monetary assets on demand | 20,202,980.51 | 3,263,183.45 |
| III. Ending balance of cash and cash equivalents | 2,687,757,730.67 | 3,101,252,943.88 |
(5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on Their UsageNaught.
(6) Monetary Funds Other than Cash and Cash Equivalents
Unit: RMB
| Item | Reporting Period | Same period of last year | Reason for not classifying the item as cash and cash equivalents |
| Bill deposit, guarantee deposit, pre-sale house payment, etc | 492,360,246.76 | 535,698,818.93 | Specific purpose |
| To-be-received interest | 11,490,996.27 | 8,255,130.73 | Interest receivable on undue bank deposits and term deposits as of the end of the Reporting Period |
| Total | 503,851,243.03 | 543,953,949.66 |
(7) Notes on Other Significant Activities
Naught.
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to names under the item of “Other” in the adjusted ending balance for the same period of last year and the correspondingamount:
Naught.
81. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
| Item | Ending foreign currency balance | Exchange rate | Ending balance converted to RMB |
| Monetary Assets | 240,519,383.87 | ||
| Including: USD | 30,122,860.10 | 7.1268 | 214,679,599.36 |
| EUR | 163,298.07 | 7.6617 | 1,251,140.82 |
| HKD | 51,810.41 | 0.91268 | 47,286.32 |
| IDR | 55,273,327,410.47 | 0.000444 | 24,541,357.37 |
| Accounts receivable | 367,246,194.87 | ||
| Including: USD | 50,952,638.99 | 7.1268 | 363,129,267.55 |
| EUR | 446,529.92 | 7.6617 | 3,421,178.29 |
| HKD | 24,796.39 | 0.91268 | 22,631.17 |
| IDR | 1,516,031,205.42 | 0.000444 | 673,117.86 |
| Other receivables | 1,391.14 | ||
| Of which: IDR | 3,133,197.00 | 0.000444 | 1,391.14 |
| Accounts payable | 23,156,860.15 | ||
| Including: USD | 2,631,991.97 | 7.1268 | 18,757,680.37 |
| EUR | 189,530.79 | 7.6617 | 1,452,128.05 |
| IDR | 6,637,503,901.41 | 0.000444 | 2,947,051.73 |
| Other current assets | 286,788.25 | ||
| Of which: IDR | 645,919,472.76 | 0.000444 | 286,788.25 |
(2) Notes to Overseas Entities Including: for Significant Overseas Entities, Main Operating Place,Recording Currency and Selection Basis Shall Be Disclosed; If There Are Changes in RecordingCurrency, Relevant Reasons Shall Be Disclosed.
□Applicable ?Not applicable
82. Leases
(1) The Company Served as the Lessee:
?Applicable □ Not applicable
| Item | Amount |
| Item | Amount |
| Simplified short-term lease charges recognised in the cost of the related assets or in current profit or loss | 198,758.23 |
| Total cash outflows related to leases | 2,508,044.34 |
Variable lease payments that are not covered in the measurement of the lease liabilities
□Applicable ?Not applicable
Simplified short-term lease or lease expense for low-value assets
□Applicable ?Not applicable
Circumstances involving sale and leaseback transactionsNaught.
(2) The Company Served as the Lessor:
Operating leases with the Company as lessor?Applicable □ Not applicable
Unit: RMB
| Item | Lease income | Of which: income related to variable lease payments not included in lease receipts |
| House lease and others | 7,202,722.94 | 0.00 |
| Total | 7,202,722.94 | 0.00 |
Finance leases with the Company as lessor
□Applicable ?Not applicable
Undiscounted lease receipts for each of the next five years
□Applicable ?Not applicable
Reconciliation of undiscounted lease receipts to net investment in leasesNaught.
(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer orDistributor
□Applicable ?Not applicable
83. Data Resources
Naught.
84. Others
Naught.
VIII. Research and Development Expenses
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Personnel and labour costs | 126,235,339.99 | 108,806,040.39 |
| Direct investment expenses | 111,116,478.82 | 72,326,399.46 |
| Depreciation expenses and long-term prepaid expenses | 22,649,859.13 | 22,819,097.36 |
| Cost of outsourcing external R&D | 3,917,155.30 | 188,759.61 |
| Design fees | 1,696,516.00 | 406,394.30 |
| Amortisation charge of intangible assets | 28,166.42 | 125,382.49 |
| Other Fees | 23,197,968.13 | 23,046,628.13 |
| Total | 288,841,483.79 | 227,718,701.74 |
| Including: research and development expenditures that are expensed | 288,841,483.79 | 227,718,701.74 |
Note: In respect of R&D expense incurred by the Company, expense other than that on bench-scale and pilot-scale production is included in R&D expense, and sales revenue of products from bench-scale and pilot-scaleproduction is included in core business revenue and the relevant costs are included in cost of sales of corebusiness.
1. Research and Development Projects Which are Eligible for CapitalisationNaught.
2. Significant Outsourced Research and Development Projects in Progress
Naught.IX. Change of Consolidation Scope
1. Business Combination Involving Entities not Under Common Control
(1) Business Combination Not under the Same Control during the Current Period
Naught.
(2) Combination Cost and Goodwill
Naught.
(3) Identifiable Assets and Liabilities of the Acquiree on the Acquisition Date
Naught.
(4) Gain or Loss from Remeasurement of Equity Interests Held before the Acquisition Date at Fair ValueWhether there were several transactions to realise business combinations and acquire controls during the Reporting Period
□Yes ? No
(5) Notes to Failure to Reasonably Determine the Combination Consideration or the Fair Value of Identifiable Assets andLiabilities of the Acquiree on the Acquisition Date or at the End of the Current PeriodNaught.
(6) Other Notes
Naught.
2. Business Combination under the Same Control
(1) Business Combination under the Same Control during the Current Period
Naught.
(2) Combination Cost
Naught.
(3) The Carrying Value of Assets and Liabilities of the Combined Party on the Combination DateNaught.
3. Counter Purchase
Basic information of the transactions, basis of the counter purchase, basis and whether assets and liabilities retained by the listedcompany constitute business, determination of the combination cost, the amount and calculation of the equity amount adjusted intreatment for the equity transaction:
Naught.
4. Disposal of Subsidiary
Whether there were any transactions or events during the period in which control of the subsidiary was lost?
□Yes ?No
Whether there are several disposals of the investment to the subsidiary and lost controls?
□Yes ?No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of subsidiaries, etc.) andrelevant information:
Fozhao Huaguang (Maoming) Technology Co., Ltd. completed its business registration in April of the currentperiod, and the Company completed its capital injection in May. Huaguang (Maoming) has been included in themerger scope since May 2024;Gaozhou NationStar Lighting Technology Co., Ltd. completed its business registration in April of the currentperiod, and NationStar completed its capital injection in May. Gaozhou NationStar has been included in themerger scope since May 2024.
6. Others
Naught.
X. Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Unit: RMB
| Name of the subsidiary | Registered capital | Main operating place | Registration place | Nature of business | Holding percentage | Way of gaining | |
| Direct | Indirect | ||||||
| Foshan Fozhao Zhicheng Technology Co., Ltd. | 50,000,000.00 | Foshan | Foshan | Production and sales | 100.00% | Newly established | |
| FSL Chanchang Lighting Co., Ltd. | 72,782,944.00 | Foshan | Foshan | Production and sales | 100.00% | Newly established | |
| Foshan Taimei Times Lamp Co., Ltd. | 500,000.00 | Foshan | Foshan | Production and sales | 70.00% | Newly established | |
| Foshan Electrical & Lighting (Xinxiang) Co., Ltd. | 35,418,439.76 | Xinxiang | Xinxiang | Production and sales | 100.00% | Newly established | |
| Nanjing Fozhao Lighting Components Manufacturing Co., Ltd. | 41,683,200.00 | Nanjing | Nanjing | Production and sales | 100.00% | Acquired | |
| FSL Zhida Electric Technology Co., Ltd. | 38,150,000.00 | Foshan | Foshan | Production and sales | 66.84% | Newly established | |
| Foshan Haolaite Lighting Co., Ltd. | 17,158,000.00 | Foshan | Foshan | Production and sales | 51.00% | 10.53% | Newly established |
| NationStar | 1,436,419.00 | Germany | Germany | Trade | 61.53% | Business | |
| Name of the subsidiary | Registered capital | Main operating place | Registration place | Nature of business | Holding percentage | Way of gaining | |
| Direct | Indirect | ||||||
| Optoelectronics (Germany) Co., Ltd. | combination under the same control | ||||||
| Foshan Kelian New Energy Technology Co., Ltd. | 170,000,000.00 | Foshan | Foshan | Property development | 100.00% | Business combination under the same control | |
| Fozhao (Hainan) Technology Co., Ltd. | 200,000,000.00 | Haikou | Haikou | Production and sales | 100.00% | Newly established | |
| Nanning Liaowang Auto Lamp Co., Ltd. | 35,055,700.00 | Nanning | Nanning | Manufacturing of vehicle lamps | 53.79% | Acquired | |
| Liuzhou Guige Lighting Technology Co., Ltd. | 30,000,000.00 | Liuzhou | Liuzhou | Manufacturing of vehicle lamps | 53.79% | Acquired | |
| Liuzhou Guige Fuxuan Technology Co., Ltd. | 20,000,000.00 | Liuzhou | Liuzhou | Manufacturing of automotive electronic products | 53.79% | Acquired | |
| Chongqing Guinuo Lighting Technology Co., Ltd. | 30,000,000.00 | Chongqing | Chongqing | Manufacturing of vehicle lamps | 53.79% | Acquired | |
| Qingdao Guige Lighting Technology Co., Ltd. | 30,000,000.00 | Qingdao | Qingdao | Manufacturing of vehicle lamps | 53.79% | Acquired | |
| Indonesia Liaowang Auto Lamp Co., Ltd. | 40,873,066.42 | Indonesia | Indonesia | Manufacturing of vehicle lamps | 53.79% | Acquired | |
| Foshan Sigma Venture Capital Co., Ltd. | 50,000,000.00 | Foshan | Foshan | Business services | 100.00% | Business combination under the same control | |
| Fozhao Huaguang (Maoming) Technology Co., Ltd. | 22,920,000.00 | Maoming | Maoming | Production and sales | 100.00% | Newly established | |
| Foshan NationStar Optoelectronics Co., Ltd. | 618,477,169.00 | Foshan | Foshan | Electronic manufacturing | 21.48% | Business combination under the same control | |
| Foshan NationStar Semiconductor Co., Ltd. | 820,000,000.00 | Foshan | Foshan | Electronic manufacturing | 21.48% | Business combination under the same control | |
| Foshan Guoxing Electronic Manufacture | 10,000,000.00 | Foshan | Foshan | Electronic manufacturing | 21.48% | Business combination under the | |
| Name of the subsidiary | Registered capital | Main operating place | Registration place | Nature of business | Holding percentage | Way of gaining | |
| Direct | Indirect | ||||||
| Co., Ltd. | same control | ||||||
| Nanyang Baoli Vanadium Industry Co., Ltd. | 100,000,000.00 | Henan | Nanyang | Mining | 12.89% | Business combination under the same control | |
| Guangdong New Electronic Information Ltd. | 5,000,000.00 | Guangzhou | Guangzhou | Trade | 21.48% | Business combination under the same control | |
| Guangdong Fenghua Semiconductor Technology Co., Ltd. | 200,000,000.00 | Guangzhou | Guangzhou | Electronic manufacturing | 21.45% | Business combination under the same control | |
| Gaozhou NationStar Lighting Technology Co., Ltd. | 30,000,000.00 | Maoming | Maoming | Electronic manufacturing | 21.48% | Newly established | |
Notes to holding proportion in subsidiary different from voting proportion:
Naught.Basis of holding half or less voting rights but still controlling the investee and holding more than half of the voting rights but notcontrolling the investee:
Naught.Significant structural entities and controlling basis in the scope of combination:
Naught.Basis of determining whether the Company is the agent or the principal:
Naught.
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
| Name of the subsidiary | Shareholding proportion of non-controlling interests | The profit or loss attributable to the non-controlling interests | Declaring dividends distributed to non-controlling interests | Balance of non-controlling interests at the period-end |
| Nanning Liaowang Auto Lamp Co., Ltd. | 46.21% | 12,280,230.29 | 469,759,697.56 | |
| Foshan NationStar Optoelectronics Co., Ltd. | 78.52% | 44,120,712.70 | 29,139,436.44 | 2,988,225,565.90 |
Holding proportion of non-controlling interests in subsidiary different from voting proportion:
Naught.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
| Name of the subsidiary | Ending balance | Beginning balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities | Non-current liabilities | Total liabilities | |
| Nanning Liaowang Auto Lamp Co., Ltd. | 1,602,836,374.91 | 919,082,690.98 | 2,521,919,065.89 | 1,508,777,464.17 | 65,611,525.40 | 1,574,388,989.57 | 1,590,859,943.26 | 896,982,948.71 | 2,487,842,891.97 | 1,512,829,422.99 | 54,928,920.36 | 1,567,758,343.35 |
| Foshan NationStar Optoelectronics Co., Ltd. | 4,002,485,032.19 | 2,455,284,925.61 | 6,457,769,957.80 | 2,253,675,523.12 | 378,735,425.63 | 2,632,410,948.75 | 3,967,291,374.52 | 2,559,121,730.06 | 6,526,413,104.58 | 2,340,584,273.66 | 382,388,851.56 | 2,722,973,125.22 |
Unit: RMB
| Name of the subsidiary | Reporting Period | Same period of last year | ||||||
| Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | Operating revenue | Net profit | Total comprehensive income | Cash flows from operating activities | |
| Nanning Liaowang Auto Lamp Co., Ltd. | 835,320,128.96 | 28,661,214.92 | 27,445,527.70 | 15,328,786.43 | 720,209,306.91 | 22,341,749.52 | 24,793,716.86 | 8,225,803.73 |
| Foshan NationStar Optoelectronics Co., Ltd. | 1,853,708,942.97 | 56,242,432.00 | 56,242,432.00 | 140,461,398.36 | 1,758,744,095.83 | 53,804,452.96 | 53,804,452.96 | 102,905,050.77 |
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the CompanyNaught.
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of ConsolidatedFinancial StatementsNaught.
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling theSubsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Naught.
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner’s Equity Attributable to theCompany as the ParentNaught.
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
Naught.
(2) Main Financial Information of Significant Joint Ventures
Naught.
(3) Main Financial Information of Significant Associated Enterprises
Naught.
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
| Ending balance/Reporting Period | Beginning balance/Same period of last year | |
| Joint ventures: | ||
| The total of following items according to the shareholding proportions | ||
| Associated enterprises: | ||
| Total carrying value of investment | 180,633,275.87 | 179,188,555.15 |
| The total of following items according to the shareholding proportions | ||
| --Net profit | 1,444,720.72 | 1,186,031.53 |
| --Total comprehensive income | 1,444,720.72 | 1,186,031.53 |
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises toTransfer Funds to the CompanyNaught.
(6) The Excess Loss of Joint Ventures or Associated Enterprises
Naught.
(7) The Unrecognised Commitment Related to Investment to Joint VenturesNaught.
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated EnterprisesNaught.
4. Significant Common Operation
Naught.
5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial StatementsNotes to the structured entity excluded in the scope of consolidated financial statements:
Naught.
6. Others
Naught.XI. Government Grants
1. Government Grants Recognised at the End of the Reporting Period at the Amount Receivable
□Applicable ?Not applicable
Reasons for failing to receive government grants in the estimated amount at the estimated point in time
□Applicable ?Not applicable
2. Liability Items Involving Government Grants
?Applicable □ Not applicable
Unit: RMB
| Accounting items | Beginning balance | Amount of newly subsidy | Amount recorded into non-operating income in the Reporting Period | Amount carried forward other income in the Reporting Period | Other changes in the Reporting Period | Ending balance | Related to assets/income |
| Deferred income | 63,950,864.78 | 6,763,500.00 | 11,549,664.02 | 59,164,700.76 | Related to assets | ||
| Deferred | 11,234,596.4 | 5,421,000.00 | 8,402,824.17 | 8,252,772.3 | Related to |
| income | 9 | 2 | income |
3. Government Grants Recognised in Profit or Loss for the Current Period
?Applicable □ Not applicable
Unit: RMB
| Accounting items | Reporting Period | Same period of last year |
| Other income | 60,151,413.19 | 27,389,992.05 |
| Non-operating income | 11,000.00 |
XII. Risks Associated with Financial Instruments
1. Various Types of Risks Arising from Financial Instruments
The primary financial instruments of the Company include equity investments, bills receivable, accountsreceivable, other receivables, accounts payable, bills payable, other payables, short-term borrowings, long-termborrowings, etc. The details of each financial instrument see relevant items of Note V.The main risks of the Company due to financial instruments were credit risk, liquidity risk and market risk. Theoperating management of the Company was responsible for the risk management target and the recognition ofthe policies.
(1) Credit Risk
Credit risk was one party of the contract failed to fulfil the obligations and causes loss of financial assets of theother party. The credit risk the Company faced was selling on credit which leads to customer credit risk.The Company will evaluate credit risk of new customer, and set credit limit, once the balance of accountreceivable over credit limit, require the customer to pay or producing and delivering goods shall be approved bythe management of the Company.The Company through monthly aging analysis of account receivable and monitoring the collection situation ofthe customer ensured the overall credit risk of the Company was in control scope. Once appear abnormalsituation, the Company should conduct necessary measures to requesting the payment timely.
(2) Liquidity Risk
Liquidity risk is referred to their risk of incurring capital shortage when performing settlement obligation in theway of cash payment or other financial assets. The policies of the Company are to ensure that there wassufficient cash to pay the due liabilities. The liquidity risk is centralised controlled by the Financial Departmentof the Company. The liquidity risk is centralised controlled by the Financial Department of the Company. Thefinancial department through supervising the balance of the cash and securities can be convert to cash at any
time and the rolling prediction of cash flow in future 12 months to ensure the Company have sufficient cash topay the liabilities under the case of all reasonable prediction.
(3) Market Risk
Market risk was referred to risk of the fair value or future cash flow of financial instrument changed due to thechange of market price, including: exchange rate risk, interest rate risk and other price risk.
1) Exchange Rate Risk
Exchange rate risk refers to the risk of loss due to exchange rate changes. The Company’s exposure to foreignexchange risk is mainly related to the US dollar and the euro. As of 30 June 2024, the Company’s assets andliabilities were in RMB, except for the balances of USD, EUR, HKD and IDR as set out in this Note VII-81,Foreign Currency Monetary Items. Foreign exchange risk arising from the assets and liabilities of such foreigncurrency balances may have a certain impact on the Company’s operating results.The Company made efforts to avoid exchange rate risk through forward exchange settlement, improvingoperation management and promoting the international competitiveness of the Company, etc.
2) Interest Rate Risk
Interest rate risk is refers to fluctuation risk of the fair value or future cash flow of financial instrument changedue to the change of market interest rates. The interest rate risk faced by the Company mainly comes from bankborrowings. By establishing a good bank-enterprise relationship, the Company reasonably designed the creditline, credit variety and credit period, ensured sufficient credit line of banks, and met various short-termfinancing needs of the Company with preferential loan interest rates. As of 30 June 2024, the Company’s fixedinterest rate loan balance was RMB776,003,401.62, accounting for 100% of the total loan balance, and the risksin this part were controllable.
3) Other Price Risk
Naught.
2. Hedge
(1) The Company Carries out Hedging Business for Risk Management
□Applicable ?Not applicable
(2) The Company Conducts Eligible Hedging Operations and Applies Hedge AccountingNaught.
(3) The Company Conducts Hedging Operations for Risk Management, Expects to Achieve Its Risk ManagementObjectives, but Does Not Apply Hedge Accounting
□Applicable ?Not applicable
3. Financial Assets
(1) Classification of Transfer Methods
?Applicable □ Not applicable
Unit: RMB
| Transfer methods | Nature of financial assets transferred | Amount of financial assets transferred | Derecognition | Basis for determining derecognition |
| Bills endorsement | Accounts receivable financing | 288,485,094.80 | Yes | Due to the low credit risk and deferred payment risk of bank acceptance bills in accounts receivable financing, and the transfer of interest rate risk related to the bills to the bank, it can be concluded that almost all risks and rewards of ownership of the bills have been transferred |
| Bills endorsement | Notes receivable | 74,782,858.81 | Yes | Almost all risks and rewards related to the ownership of the bills have been transferred |
| Bills discounting | Notes receivable | 139,426,977.10 | Yes | Almost all risks and rewards related to the ownership of the bills have been transferred |
| Bills endorsement | Notes receivable | 141,027,788.82 | No | Retaining almost all risks and rewards, including default risks associated with them |
| Total | 643,722,719.53 |
(2) Financial Assets Derecognised due to Transfer
?Applicable □ Not applicable
Unit: RMB
| Item | Ways of transferring financial assets | Derecognised financial asset amount | Gains or losses related to derecognition |
| Accounts receivable financing | Bills endorsement | 288,485,094.80 | |
| Notes receivable | Bills endorsement | 74,782,858.81 | |
| Notes receivable | Bills discounting | 139,426,977.10 | |
| Total | 502,694,930.71 |
(3) Continued Involvement in the Transfer of Assets Financial Assets
?Applicable □ Not applicable
Unit: RMB
| Item | Asset transfer methods | Amount of assets formed due to continuous involvement | Amount of liabilities formed due to continuous involvement |
| Notes receivable | |||
| Of which: Bank’s acceptance bill | Bills endorsement | 141,027,788.82 |
| Total | 141,027,788.82 |
XIII. The Disclosure of Fair Value
1. Ending Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
| Item | Ending fair value | |||
| Level 1 Fair value measurement | Level 2 Fair value measurement | Level 3 Fair value measurement | Total | |
| I. Consistent fair value measurement | -- | -- | -- | -- |
| 1. Trading financial assets | 1,103,196.07 | 105,825,131.94 | 106,928,328.01 | |
| (1)Financial assets at fair value through profit or loss | 1,103,196.07 | 105,825,131.94 | 106,928,328.01 | |
| 1) Wealth management products | 105,825,131.94 | 105,825,131.94 | ||
| 2) Equity instrument investment | 1,003,796.07 | 1,003,796.07 | ||
| 3) Other | 99,400.00 | 99,400.00 | ||
| 2. Other Investments in Debt Obligations | 1,124,498,738.94 | 1,124,498,738.94 | ||
| 3. Other equity instrument investment | 633,832,982.60 | 40,578,568.80 | 674,411,551.40 | |
| 4. Accounts receivable financing | 296,834,332.74 | 296,834,332.74 | ||
| Total assets measured at fair value on a recurring basis | 634,936,178.67 | 1,230,323,870.88 | 337,412,901.54 | 2,202,672,951.09 |
| II. Inconsistent fair value measurement | -- | -- | -- | -- |
2. Basis for Determining the Market Value of Continuing and Discontinuing Level 1 Fair ValueMeasurement ItemsLevel 1 fair value measurements are determined based on the market price of equities at the balance sheet date andthe mid-price of the RMB exchange rate published by the State Administration of Foreign Exchange as quotedprices in an active market.
3. Continuing and Discontinuing Level 2 Fair Value Measurement Items, Qualitative and QuantitativeInformation on the Valuation Techniques Used and Significant ParametersThe fair value of financial products and other debt investment subscribed by the Group that are measured at fairvalue is determined by reference to the expected rate of return provided by the financial institutions.
4. Continuing and Discontinuing Level 3 Fair Value Measurement Items, Qualitative and QuantitativeInformation on the Valuation Techniques Used and Significant Parameters
(1) The Company measured the investment at cost as a reasonable estimate of fair value because there were nosignificant changes in the business environment and operating and financial conditions of the investee, GF Bank.
(2) The Company measured the investee, Shenzhen Zhonghao (Group) Company Limited, at nil as a reasonableestimate of fair value due to the deterioration of its business environment and operating and financial conditions.
(3) The Company measured the investment at cost as a reasonable estimate of fair value because there were nosignificant changes in the business environment and operating and financial conditions of the investee companies,Foshan Nanhai District United Guangdong New Light Source Industry Innovation Centre, Beijing Guang RongUnion Semiconductor Lighting Industry Investment Centre and Guangdong Rising Finance Co., Ltd.
(4) The receivables financing represents bank acceptance notes held by the Company with a short remainingmaturity, the face value of which approximates the fair value and the face amount is used to recognise the fairvalue at the statement date.
5. Consistent Fair Value Measurement Items at Level 3, Adjustment between the Beginning CarryingValue and the Ending Carrying Value and Sensitivity Analysis on Unobservable ParametersNaught.
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens ifConversion Happens among Consistent Fair Value Measurement Items at Different LevelsNaught.
7. Changes in Valuation Techniques in the Reporting Period and Reasons for the ChangesNaught.
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair ValueFinancial assets and liabilities not measured at fair value include: monetary assets, accounts receivable andaccounts payable, etc. There is small difference between the carrying value of above financial assets andliabilities and fair value.
9. Others
Naught.
XIV. Related Party and Related-party Transactions
1. Information on the Company as the Parent
| Company name | Registration place | Nature of business | Registered capital | Proportion of share held by the Company as the parent against the Company (%) | Proportion of voting rights owned by the Company as the parent against the Company (%) |
| Hongkong Wah Shing Holding Company Limited | Hong Kong | Investment | HKD110,000 | 12.52% | 12.52% |
| Guangdong Rising Holdings Group Co., Ltd. | Guangzhou | Investment | RMB10 billion | 8.38% | 8.38% |
| Guangdong Electronics Information Industry Group Ltd. | Guangzhou | Production and sales | RMB1,162 million | 8.49% | 8.49% |
| Rising Investment Development Limited | Hong Kong | Investment | RMB360 million and HKD1 million | 1.65% | 1.65% |
| Total | 31.04% | 31.04% |
Notes to the Company as the parentHongkong Wah Shing Holding Company Limited (hereinafter referred to as “Hongkong Wah Shing”), the largest shareholder ofthe Company, is a wholly-owned subsidiary of Guangdong Electronics Information Industry Group Ltd. (hereinafter referred to as“Electronics Group”), and Electronics Group, Shenzhen Rising Investment Development Co., Ltd. (hereinafter referred to as“Shenzhen Rising”), Guangdong Rising Finance Holding Co., Ltd. (renamed Guangdong Rising Capital Investment Co., Ltd. on13 December 2021, hereinafter referred to as “Rising Capital”) and Rising Investment Development Limited (hereinafter referredto as “Rising Investment”) are wholly-owned subsidiaries of Guangdong Rising Holdings Group Co., Ltd. (hereinafter referred toas “Rising Holdings Group”). According to the relevant provisions of the Company Law and the Measures for the AdministrativeMeasures on Acquisition of Listed Companies, Electronics Group, Shenzhen Rising, Rising Capital and Rising Investment areconcerted actors, and Rising Holdings Group becomes the actual controller of the Company. In December 2021, Shenzhen Risingand Rising Capital transferred all their shares of the Company to Rising Holdings Group. After the transfer, Rising HoldingsGroup, Electronics Group and Rising Investment acted in concert with each other. In February 2022, the Company repurchasedand cancelled part of its shares, and the proportion of shares held by the above parties acting in concert was 30.82% in aggregate;in November 2023, the Company made a non-public offering of 186,783,583.00 shares of A-shares to a specific object, and RisingGroup subscribed 46,695,895.00 shares, and the proportion of shares held by the above parties acting in concert was 30.12%. InJune 2024, Electronic Group and Hongkong Wah Shing cumulatively increased their holdings of the Company’s shares by15,487,850 shares through call auction on the Shenzhen Stock Exchange trading system. As of 30 June 2024, the total proportionof shares held by the aforementioned concerted action parties was 31.04%.The final controller of the Company is Guangdong Rising Holdings Group Co., Ltd.
2. Subsidiaries of the Company
Refer to Note X Equity in Other Entities-1. Equity in Subsidiaries for details of the Company’s subsidiaries.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note X Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details of significant jointventures or associated enterprises of the Company.List of other joint ventures and associated enterprises that made connected transactions with the Company generating balanceduring or before the Reporting Period:
Naught.
4. Information on Other Related Parties
| Name of other related parties | Relationship with the Company |
| PROSPERITY LAMPS & COMPONENTS LTD | Shareholder owning over 5% shares |
| Dongguan Hengjian Environmental Protection Technology Co., Ltd. | Under same actual controller |
| Foshan Fulong Environmental Technology Co., Ltd. | Under same actual controller |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Under same actual controller |
| Guangdong Rising Research and Development Institute Co. Ltd. | Under same actual controller |
| Guangdong Heshun Property Management Co., Ltd. Rising International Building Branch | Under same actual controller |
| Guangdong Huajian Enterprise Group Co., Ltd. | Under same actual controller |
| Guangdong Electronics Information Industry Group Ltd. | Under same actual controller |
| Guangdong Rising Finance Co., Ltd. | Under same actual controller |
| Guangdong Yixin Changcheng Construction Group | Under same actual controller |
| Guangdong Zhongjin Lingnan Engineering Technology Co., Ltd. | Under same actual controller |
| Guangdong Zhongnan Construction Co., Ltd. | Under same actual controller |
| Guangdong Zhongren Group Construction Co., Ltd | Under same actual controller |
| Guangdong Zhuyuan Construction Engineering Co., Ltd. | Under same actual controller |
| Guangzhou Haixinsha Industrial Co., Ltd. | Under same actual controller |
| Guangzhou Wanshun Investment Management Co., Ltd. | Under same actual controller |
| Jiangmen Dongjiang Environmental Company Limited | Under same actual controller |
| Zhuhai Doumen District Yongxingsheng Environmental Industry Waste Recovery and Comprehensive Treatment Co., Ltd. | Under same actual controller |
| Shenzhen Longgang Dongjiang Industrial Waste Treatment Co., Ltd. | Under same actual controller |
| Shenzhen Yuepeng Construction Co., Ltd. | Under same actual controller |
| Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. | Under same actual controller |
| Zhuhai Dongjiang Environmental Protection Technology Co., Ltd. | Under same actual controller |
| Shandong Zhongjin Lingnan Copper Co., Ltd. | Under same actual controller |
| Guangdong Great Wall Hotel Co., Ltd. | Under same actual controller |
| Shenzhen Nanhe Mobile Communication Technology Co., Ltd. | Under same actual controller |
| Guangdong Xintao Microelectronics Co., Ltd. | Under same actual controller |
| Rising Nonferrous Metals Share Co., Ltd. | Under same actual controller |
| Guangdong Huajian Engineering Construction Co., Ltd. | Under same actual controller |
| Guangzhou Shengfeng Catering Management Service Co., Ltd. | Under same actual controller |
| Guangdong Rising Commercial Development Co., Ltd. (Renamed Guangzhou Tianxin Property Management Company) | Under same actual controller |
| Guangzhou Huajian Business Development Co., Ltd. | Under same actual controller |
| Hongkong Wah Shing Holding Company Limited | Under same actual controller |
| Rising Investment Development Limited | Under same actual controller |
| Prosperity (China) Electrical Company Limited | Enterprise controlled by related natural person |
| Hangzhou Times Lighting Electric Appliances Co., Ltd. | Enterprise controlled by related natural person |
| Nanning Ruixiang Industrial Investment Co., Ltd. | Enterprise significantly affected by related natural person |
| Guangdong Electronic Technology Research Institute | Under same actual controller (not included into the consolidation scope of Rising Holdings Group since October 2023) |
| Guangdong The Great Wall Building Co., Ltd. | Enterprises controlled by the same actual controller |
| Name of other related parties | Relationship with the Company |
| (cancelled in August 2023) |
5. Transactions with Related Parties
(1) Information on Acquisition of Goods and Reception of Labour Service
Information on acquisition of goods and reception of labour service
Unit: RMB
| Name of related party | Nature of transaction | Reporting Period | The approval trade credit | Whether exceed trade credit or not | Same period of last year |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Purchase of materials | 2,264,120.89 | 16,000,000.00 | No | 1,427,073.05 |
| Guangdong Yixin Changcheng Construction Group | Receiving of labour service | 47,493,226.47 | 42,453,620.42 | ||
| Guangdong Zhongnan Construction Co., Ltd. | Receiving of labour service | 8,266,347.72 | 58,500,517.50 | ||
| Guangdong Zhongren Group Construction Co., Ltd | Receiving of labour service | 2,407,583.18 | 26,677,655.81 | ||
| Shenzhen Yuepeng Construction Co., Ltd. | Receiving of labour service | 1,886,492.75 | 754,528.33 | ||
| Shenzhen Nanhe Mobile Communication Technology Co., Ltd. | Receiving of labour service | 114,801.77 | |||
| Zhuhai Dongjiang Environmental Protection Technology Co., Ltd. | Receiving of labour service | 271,319.56 | 3,000,000.00 | No | 13,133.52 |
| Foshan Fulong Environmental Technology Co., Ltd. | Receiving of labour service | 70,467.96 | 162,917.93 | ||
| Shenzhen Nanhe Mobile Communication Technology Co., Ltd. | Purchase of materials | 16,672.57 | |||
| Shenzhen Longgang Dongjiang Industrial Waste | Receiving of labour service | 14,375.09 | 116,673.57 |
| Name of related party | Nature of transaction | Reporting Period | The approval trade credit | Whether exceed trade credit or not | Same period of last year |
| Treatment Co., Ltd. | |||||
| Zhuhai Doumen District Yongxingsheng Environmental Industry Waste Recovery and Comprehensive Treatment Co., Ltd. | Receiving of labour service | 4,528.30 | |||
| Jiangmen Dongjiang Environmental Company Limited | Receiving of labour service | 2,169.81 | 69,970.76 | ||
| Dongguan Hengjian Environmental Protection Technology Co., Ltd. | Receiving of labour service | 76,930.19 | |||
| Guangdong The Great Wall Building Co., Ltd. | Receiving of labour service | 22,053.55 | |||
| Guangzhou Shengfeng Catering Management Service Co., Ltd. | Receiving of labour service | 1,362,571.29 | 12,000,000.00 | No | |
| Guangdong Rising Commercial Development Co., Ltd. (renamed Guangzhou Tianxin Property Management Company) | Receiving of labour service | 42,887.72 | 18,779.44 | ||
| Guangdong Great Wall Hotel Co., Ltd. | Receiving of labour service | 5,740.00 | |||
| Guangzhou Haixinsha Industrial Co., Ltd. | Receiving of labour service | 513,226.63 | 9,000,000.00 | No | 467,135.78 |
| Guangzhou Huajian Business Development Co., Ltd. | Receiving of labour service | 87,421.36 | |||
| Prosperity Lamps & Components Limited | Purchase of materials | 3,000,000.00 | No | 57,268.76 | |
| Total | 64,823,953.07 | 43,000,000.00 | No | 130,818,258.61 |
Information of sales of goods and provision of labour service
Unit: RMB
| Name of related party | Nature of transaction | Reporting Period | Same period of last year |
| Prosperity Lamps & Components Limited | Sale of products | 5,732,428.94 | 12,641,522.79 |
| Guangdong Fenghua Advanced Technology Holding Co., Ltd. | Sale of products | 4,572,650.62 | 7,466,567.41 |
| Guangdong Yixin Changcheng Construction Group | Sale of products | 121,035.60 | |
| Rising Nonferrous Metals Share Co., Ltd. | Sale of products | 99,577.88 | |
| Guangzhou Wanshun Investment Management Co., Ltd. | Sale of products | 59,565.75 | |
| Shandong Zhongjin Lingnan Copper Co., Ltd. | Sale of products | 9,102.65 | 223,796.46 |
| Guangdong Zhongnan Construction Co., Ltd. | Sale of products | 3,012,466.81 | |
| Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. | Sale of products | 710,376.99 | |
| Guangdong Zhongjin Lingnan Engineering Technology Co., Ltd. | Sale of products | 23,113.27 | |
| Guangdong Zhuyuan Construction Engineering Co., Ltd. | Sale of products | 12,318.58 | |
| Guangdong Rising Holdings Group Co., Ltd. | Sale of products | 2,787.61 | |
| Total | 10,594,361.44 | 24,092,949.92 |
Notes to acquisition of goods and reception of labour service
1. The pricing policy for related-party transactions between the Company and its related parties is as follows:
The pricing of related-party transactions should be market-oriented and subject to the market prices when such atransaction occurs. The relevant funds should be paid on time according to the actual transaction.
2. The related-party transactions between the Company and its subsidiaries and between subsidiaries have beenoffset during report consolidation.
(2) Connected Transactions with the Company as Entrustee/Contractor or Entruster/ContracteeThe Company as entrustee/contractor:
Naught.The Company as entruster/contractee:
Unit: RMB
| Name of the entruster/contractee | Name of the entrustee/contractor | Type | Start date | Due date | Pricing basis | Income recognised in this Current Period |
| Foshan NationStar Optoelectronics Co., Ltd. | Guangdong Zhongren Group Construction Co., Ltd | 30 December 2020 | 31 December 2022 | |||
| Fozhao (Hainan) Technology Co., | Guangdong Zhongnan | 30 March 2022 | 14 May 2023 |
| Name of the entruster/contractee | Name of the entrustee/contractor | Type | Start date | Due date | Pricing basis | Income recognised in this Current Period |
| Ltd. | Construction Co., Ltd. | |||||
| Foshan Kelian New Energy Technology Co., Ltd. | Guangdong Zhongnan Construction Co., Ltd. | 23 June 2021 | 23 December 2022 | |||
| Foshan Kelian New Energy Technology Co., Ltd. | Guangdong Huajian Enterprise Group Co., Ltd. | 1 May 2023 | 31 December 2033 |
Notes:
1. The Company’s subsidiary Foshan NationStar Optoelectronics Co., Ltd. entered into the General Contracting Contract ofNationStar Optoelectronics for the Survey, Design, and Construction of the Geely Industrial Park with Guangdong ZhongrenGroup Construction Co., Ltd., Guangdong Architectural Design & Research Institute Co., Ltd., and CSIC InternationalEngineering Co., Ltd. on 30 December 2020. The above parties take charge of the survey, design, and construction of the GeelyIndustrial Park. The total price of the contract is RMB509,292,500. As of the date of this report, the project is in the acceptanceinspection stage.
2. The Company’s subsidiary Fozhao (Hainan) Technology Co., Ltd. entered into the General Contracting Contract for Design andConstruction of FSL Hainan Industrial Park Phase I with Guangdong Zhongnan Construction Co., Ltd. and GuangdongArchitectural Design & Research Institute Co., Ltd. on 30 March 2022. The above parties take charge of the design andconstruction of FSL Hainan Industrial Park. The total price of the contract is RMB179,051,600, and the planned total constructionperiod is 390 calendar days (50 days for design and 340 days for construction). As of the date of this report, the project has not yetreached its intended usable state.
3. The Company’s subsidiary Foshan Kelian New Energy Technology Co., Ltd. entered into the General Contracting Contract forDesign and Construction of the Foshan Kelian Building Decoration Engineering with Guangdong Zhongnan Construction Co., Ltd.and Guangdong Architectural Design & Research Institute Co., Ltd. on 23 June 2021. The above parties take charge of the survey,design and construction of Kelian Building. The total price of the contract is RMB189,070,200, and the planned total constructionperiod is 240 calendar days. Among them, except for the self-used layers, the construction period shall be counted from the datewhen the construction actually begins. As of the date of this report, the office self use floor of Building 2 has been completed andpassed the final acceptance inspection. The decoration work for the public areas and apartments on floors 4-8 of Building 2 hasbeen completed, and Building 1 is currently in the stage of detailed construction drawing design.
4. On 21 April 2023, the Company’s subsidiary Foshan Kelian New Energy Technology Co., Ltd. entered into the Contract on theOperation and Investment Attraction Services for Kelian Building with Guangdong Huajian Enterprise Group Co., Ltd.(hereinafter referred to as “Huajian Group”), and Foshan Kelian entrusted some of the properties of Kelian Building to HuajianGroup for operation. During the operation period, Huajian Group paid a guaranteed rental income to Foshan Kelian. As of the dateof this report, the property entrusted for operation is under renovation.
(3) Information on Connected Lease
The Company was lessor:
Unit: RMB
| Name of lessee | Type of assets leased | The lease income confirmed in the Reporting Period | The lease income confirmed in the same period of last year |
| Guangdong Rising Research | Plant | 647,933.71 | 582,347.85 |
| Name of lessee | Type of assets leased | The lease income confirmed in the Reporting Period | The lease income confirmed in the same period of last year |
| and Development Institute Co., Ltd. and its majority-owned subsidiaries |
The Company served as the lessee:
Unit: RMB
| Name of lessor | Type of assets leased | Rental expenses of short-term lease simplified treated and low-value asset lease (if applicable) | Variable lease payments not included in the measurement of lease liabilities (if applicable) | Paid rent | Income expense of lease liabilities undertaken | Increased right-of-use assets | |||||
| Reporting Period | Same period of last year | Reporting Period | Same period of last year | Reporting Period | Same period of last year | Reporting Period | Same period of last year | Reporting Period | Same period of last year | ||
| Guangdong The Great Wall Building Co., Ltd. | Operating lease | 64,954.29 | 1,801.29 | ||||||||
| Guangdong Rising Commercial Development Co., Ltd. (renamed Guangzhou Tianxin Property Management Company) | Operating lease | 166,520.05 | 65,059.65 | 3,420.80 | 1,211.87 | 291,156.20 | |||||
Notes to connected lease:
Naught.
(4) Connected Guarantee
Naught.
(5) Interbank Borrowing and Lending of Capital by Connected Party
Naught.
(6) Information on Assets Transfer and Debt Restructuring by Related PartyNaught.
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
| Item | Reporting Period | Same period of last year |
| Item | Reporting Period | Same period of last year |
| Chairman of the Board | 412,195.28 | 486,397.79 |
| General Manager | 481,683.12 | 475,655.67 |
| Chairman of the Supervisory Committee | 615,288.82 | 467,681.15 |
| Secretary of the Board | 418,182.04 | 275,841.67 |
| Chief Financial Officer | 475,438.92 | 466,313.55 |
| Others | 2,568,209.82 | 3,782,176.00 |
| Total | 4,970,998.00 | 5,954,065.83 |
(8) Other Connected Transactions
In accordance with the Financial Service Agreement signed by the Company, the total maximum daily depositbalance of the Company and its holding subsidiaries deposited in Guangdong Rising Finance Co., Ltd. shall notexceed RMB1.5 billion, and the general credit limit provided by Guangdong Rising Finance Co., Ltd. for theCompany and its holding subsidiaries shall not exceed RMB2 billion. As of 30 June 2024, the deposit balanceof the Company and its holding subsidiaries deposited in Guangdong Rising Finance Co., Ltd. isRMB1,345,958,900. The outstanding interest receivable is RMB6,007,900.
6. Receivables from and Payables to Related Parties
(1) Accounts Receivable
Unit: RMB
| Item | Name of related party | Ending balance | Beginning balance | ||
| Carrying amount | Provision for impairment | Carrying amount | Provision for impairment | ||
| Monetary capital- accrued interest | Guangdong Rising Finance Co., Ltd. | 6,007,939.77 | 5,226,458.64 | ||
| Accounts receivable | Prosperity Lamps & Components Limited | 3,684,287.87 | 110,528.64 | 7,510,483.08 | 225,314.49 |
| Accounts receivable | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 3,671,208.41 | 73,424.17 | 2,992,978.95 | 59,859.58 |
| Accounts receivable | Guangdong Zhongnan Construction Co., Ltd. | 3,423,458.25 | 339,854.41 | 4,612,923.23 | 188,722.11 |
| Accounts receivable | Guangdong Yixin Changcheng Construction Group | 2,332,537.86 | 403,416.48 | 2,332,537.86 | 206,392.47 |
| Accounts receivable | Guangdong Zhuyuan Construction Engineering Co., Ltd. | 510,276.71 | 15,308.30 | 510,276.71 | 15,308.30 |
| Item | Name of related party | Ending balance | Beginning balance | ||
| Carrying amount | Provision for impairment | Carrying amount | Provision for impairment | ||
| Accounts receivable | Shenzhen Zhongjin Lingnan Nonfemet Co., Ltd. | 504,147.00 | 31,536.61 | 566,449.00 | 16,993.47 |
| Accounts receivable | Guangdong Xintao Microelectronics Co., Ltd. | 457,251.11 | 9,145.02 | 266,736.05 | 5,334.72 |
| Accounts receivable | Guangdong Zhongren Group Construction Co., Ltd | 289,918.22 | 8,697.55 | 289,918.22 | 8,697.55 |
| Accounts receivable | Guangdong Zhongjin Lingnan Engineering Technology Co., Ltd. | 138,827.00 | 4,164.81 | 138,827.00 | 4,164.81 |
| Accounts receivable | Guangdong Huajian Engineering Construction Co., Ltd. | 44,297.00 | 29,813.02 | 44,297.00 | 22,148.50 |
| Accounts receivable | Guangdong Rising Holdings Group Co., Ltd. | 15,206.96 | 304.14 | 146,462.96 | 2,929.26 |
| Accounts receivable | Shandong Zhongjin Lingnan Copper Co., Ltd. | 10,286.00 | 308.58 | ||
| Accounts receivable | Guangdong Rising Research and Development Institute Co. Ltd. | 3,850.00 | 138.60 | 3,850.00 | 77.00 |
| Accounts receivable | Guangdong Heshun Property Management Co., Ltd. Rising International Building Branch | 242,112.68 | 7,263.38 | ||
| Prepayments | Prosperity (China) Electrical Company Limited | 39,428.00 | 39,428.00 | ||
| Prepayments | Hangzhou Times Lighting Electric Appliances Co., Ltd. | 1,300.88 | 1,300.88 | ||
| Prepayments | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 148.68 | 148.68 | ||
| Other receivables | Guangdong Huajian Enterprise Group Co., Ltd. | 2,090,868.46 | 62,726.05 | 1,791,739.20 | 53,752.18 |
| Other receivables | Guangdong Rising Commercial | 77,761.92 | 2,685.16 | 67,165.92 | 1,343.32 |
| Item | Name of related party | Ending balance | Beginning balance | ||
| Carrying amount | Provision for impairment | Carrying amount | Provision for impairment | ||
| Development Co., Ltd. (renamed Guangzhou Tianxin Property Management Company) | |||||
| Other receivables | Nanning Ruixiang Industrial Investment Co., Ltd. | 5,000.00 | 150.00 | 5,000.00 | 150.00 |
| Other receivables | Guangdong Zhongren Group Construction Co., Ltd | 304.31 | 9.13 | 304.31 | 9.13 |
| Total | 23,308,304.41 | 1,092,210.67 | 26,789,398.37 | 818,460.27 | |
(2) Accounts Payable
Unit: RMB
| Item | Name of related party | Ending carrying balance | Beginning carrying balance |
| Notes payable | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 155,588.72 | 373,870.86 |
| Notes payable | Guangdong Zhongren Group Construction Co., Ltd | 15,052,221.04 | |
| Accounts payable | Guangdong Zhongren Group Construction Co., Ltd | 113,478,475.81 | 117,665,437.46 |
| Accounts payable | Guangdong Yixin Changcheng Construction Group | 95,910,150.20 | 65,992,673.05 |
| Accounts payable | Guangdong Zhongnan Construction Co., Ltd. | 35,906,275.26 | 43,398,748.24 |
| Accounts payable | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 2,096,767.69 | 1,385,589.20 |
| Accounts payable | Shenzhen Yuepeng Construction Co., Ltd. | 1,123,472.38 | 1,174,680.84 |
| Accounts payable | Shenzhen Nanhe Mobile Communication Technology Co., Ltd. | 306,838.00 | 14,457.85 |
| Accounts payable | Guangzhou Haixinsha Industrial Co., Ltd. | 146,441.00 | 506,936.01 |
| Accounts payable | Prosperity Lamps & Components Limited | 58,230.70 | 58,230.70 |
| Accounts payable | Guangdong Electronic Technology Research Institute | 46,500.00 | 46,500.00 |
| Accounts payable | Nanning Ruixiang Industrial Investment Co., Ltd. | 32,400.00 | |
| Accounts payable | Guangzhou Shengfeng Catering Management Service Co., Ltd. | 665.00 | |
| Accounts payable | Shenzhen Longgang Dongjiang Industrial Waste Treatment Co., Ltd. | 9,478.00 | |
| Accounts payable | Zhuhai Dongjiang Environmental Protection Technology Co., Ltd. | 1,325.10 | |
| Other payables | Nanning Ruixiang Industrial Investment Co., Ltd. | 100,046,577.48 | 103,639,661.12 |
| Other payables | Guangdong Huajian Enterprise Group Co., Ltd. | 6,618,860.15 | 3,593,345.15 |
| Other payables | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 5,035,015.07 | 5,030,015.07 |
| Other payables | Shenzhen Yuepeng Construction Co., Ltd. | 406,880.64 | 474,900.64 |
| Other payables | Guangzhou Haixinsha Industrial Co., Ltd. | 345,769.78 | 154,568.76 |
| Other payables | Guangzhou Shengfeng Catering Management Service Co., Ltd. | 268,000.00 | |
| Other payables | Guangzhou Huajian Business Development Co., | 13,900.00 |
| Item | Name of related party | Ending carrying balance | Beginning carrying balance |
| Ltd. | |||
| Other payables | Shenzhen Nanhe Mobile Communication Technology Co., Ltd. | 13,624.00 | |
| Other payables | Guangdong Xintao Microelectronics Co., Ltd. | 8,028.00 | 8,028.00 |
| Other payables | Guangdong Rising Holdings Group Co., Ltd. | 4,750.00 | |
| Other payables | Guangdong Zhongnan Construction Co., Ltd. | 423,469.05 | |
| Other payables | Zhuhai Dongjiang Environmental Protection Technology Co., Ltd. | 20,000.00 | |
| Other payables | Shenzhen Longgang Dongjiang Industrial Waste Treatment Co., Ltd. | 20,000.00 | |
| Dividends payable | Hongkong Wah Shing Holding Company Limited | 23,211,071.75 | |
| Dividends payable | Guangdong Electronics Information Industry Group Ltd. | 15,772,745.52 | |
| Dividends payable | Prosperity Lamps & Components Limited | 17,632,182.84 | |
| Dividends payable | Guangdong Rising Holdings Group Co., Ltd. | 15,579,215.16 | |
| Dividends payable | Rising Investment Development Limited | 2,781,438.77 | |
| Contract liabilities, other current liabilities | Prosperity Lamps & Components Limited | 57,547.68 | 59,428.00 |
| Other current liabilities | Guangdong Zhongren Group Construction Co., Ltd | 568,478.42 | 0.00 |
| Other current liabilities | Guangdong Zhongnan Construction Co., Ltd. | 500,000.00 | 6,700,000.00 |
| Other current liabilities | Guangdong Fenghua Advanced Technology Holding Co., Ltd. | 207,244.60 | 339,669.91 |
| Other current liabilities | Guangzhou Haixinsha Industrial Co., Ltd. | 51,154.03 | 339,220.26 |
| Other current liabilities | Guangdong Yixin Changcheng Construction Group | 69,483.06 | |
| Total | 438,384,288.65 | 366,551,937.37 |
7. Commitments of the Related Parties
1. Commitment on Avoidance of Horizontal Competition
(1) Commitment Makers: Electronics Group and Hong Kong Rising Investment
Contents: Electronics Group and Hong Kong Rising Investment have made more commitments as follows toavoid horizontal competition with the Company: 1. They shall conduct supervision and restraint on theproduction and operation activities of themselves and their relevant enterprises so that besides the enterpriseabove that is in horizontal competition with the Company for now, if the products or business of them or theirrelevant enterprises become the same with or similar to those of the Company or its subsidiaries in the future,they shall take the following measures: (1) If the Company thinks necessary, they and their relevant enterprisesshall reduce and wholly transfer their relevant assets and business; and (2) If the Company thinks necessary, itis given the priority to acquire first, by proper means, the relevant assets and business of them and their relevantenterprises. 2. All the commitments made by them to eliminate or avoid horizontal competition with FSL are
also applicable to their directly or indirectly controlled subsidiaries. They are obliged to urge and make sure thatother subsidiaries execute what’s prescribed in the relevant document and faithfully honour all the relevantcommitments. 3. If they or their directly or indirectly controlled subsidiaries break the aforesaid commitmentsand thus cause a loss for the Company, they shall compensate the Company on a rational basis.Date of commitment making: 4 December 2015.Term of commitment: Long-standing.Fulfilment: In execution.
(2) Commitment Maker: Rising Holdings Group
Contents: 1. The Promisor will take active measures to avoid any business or activity that competes or maycompete with the principal business of the Company and its auxiliary enterprises, and urge the Promisor tocontrol enterprises to avoid any business or activity that competes or may compete with the principal businessof the Company and its auxiliary enterprises. 2. If the Promisor and its controlled enterprises are given theopportunity to engage in new business that constitutes or may constitute horizontal competition with theprincipal businesses of the Company and its auxiliary enterprises, the Promisor will make every effort to makethe business opportunity first available to the Company or its auxiliary enterprises on reasonable and fair termsand conditions on the premise that conditions permit and in the interest of the listed company.Date of commitment making: 4 November 2021.Term of commitment: Long-standing.Fulfilment: In execution.
(3) Commitment Makers: Rising Holdings Group, Rising Capital, and Hongkong Wah ShingContents: 1. They shall conduct supervision and restraint on the production and operation activities ofthemselves and their relevant enterprises so that besides the enterprise above that is in horizontal competitionwith FSL for now, if the products or business of them or their relevant enterprises become the same with orsimilar to those of FSL or its subsidiaries in the future, they shall take the following measures: (1) If FSL thinksnecessary, they and their relevant enterprises shall reduce and wholly transfer their relevant assets and business;and (2) If FSL thinks necessary, it is given the priority to acquire first, by proper means, the relevant assets andbusiness of them and their relevant enterprises. 2. All the commitments made by them to eliminate or avoidhorizontal competition with FSL are also applicable to their directly or indirectly controlled subsidiaries. Theyare obliged to urge and make sure that other subsidiaries execute what’s prescribed in the relevant documentand faithfully honour all the relevant commitments. 3. If they or their directly or indirectly controlled
subsidiaries break the aforesaid commitments and thus cause a loss for FSL, they shall compensate FSL on arational basis.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfilment: In execution.
2. Commitment on Reduction and Regulation of Related-party Transactions
(1) Commitment makers: Electronics Group and Hong Kong Rising Investment
Contents: Electronics Group and Hong Kong Rising Investment have made a commitment that during theirdirect or indirect holding of the Company’s shares, they shall 1. strictly abide by the regulatory documents ofthe CSRC and the SZSE, the Company’s Articles of Association, etc. and not harm the interests of the Companyor other shareholders of the Company in their production and operation activities by taking advantage of theirposition as the controlling shareholder and actual controller; 2. make sure that they or their other controlledsubsidiaries, branch offices, jointly-run or associated companies (the “Relevant Enterprises” for short) will trytheir best to avoid or reduce related-party transactions with the Company or the Company’s subsidiaries; 3.strictly follow the market principle of justness, fairness and equal value exchange for necessary and unavoidablerelated-party transactions between them and their Relevant Enterprises and the Company, and withdraw fromvoting when a related-party transaction with them or their Relevant Enterprises is being voted on at a generalmeeting or a board meeting, and execute the relevant approval procedure and information disclosure dutiespursuant to the applicable laws, regulations and regulatory documents. Where the aforesaid commitments arebroken and a loss is thus caused for the Company, its subsidiaries or the Company’s other shareholders, theyshall be obliged to compensate.Date of commitment making: 4 December 2015.Term of commitment: Long-standing.Fulfilment: In execution.
(2) Commitment Maker: Rising Holdings Group
Contents: 1. Strictly abide by the regulatory documents of the CSRC and the SZSE, the Company’s Articles ofAssociation, etc. and not harm the interests of the Company or other shareholders of the Company in theirproduction and operation activities by taking advantage of their position as the controlling shareholder andactual controller; 2. make sure that they or their other controlled subsidiaries, branch offices, jointly-run orassociated companies (the “Relevant Enterprises” for short) will try their best to avoid or reduce related-party
transactions with the Company or the Company’s subsidiaries; 3. strictly follow the market principle of justness,fairness and equal value exchange for necessary and unavoidable related-party transactions between them andtheir Relevant Enterprises and the Company, and withdraw from voting when a related-party transaction withthem or their Relevant Enterprises is being voted on at a general meeting or a board meeting, and execute therelevant approval procedure and information disclosure duties pursuant to the applicable laws, regulations andregulatory documents.Date of commitment making: 4 November 2021.Term of commitment: Long-standing.Fulfilment: In execution.
(3) Commitment makers: Rising Holdings Group, Rising Capital, and Hongkong Wah ShingContents: They have made a commitment that during their direct or indirect holding of FSL’s shares, they shall
1. strictly abide by the regulatory documents of the CSRC and the SZSE, FSL’s Articles of Association, etc. andnot harm the interests of the Company or other shareholders of FSL in their production and operation activitiesby taking advantage of their position as the controlling shareholder and actual controller; 2. make sure that theyor their other controlled subsidiaries, branch offices, jointly-run or associated companies (the “RelevantEnterprises” for short) will try their best to avoid or reduce related-party transactions with FSL or FSL’ssubsidiaries; 3. strictly follow the market principle of justness, fairness and equal value exchange for necessaryand unavoidable related-party transactions between them and their Relevant Enterprises and FSL, and withdrawfrom voting when a related-party transaction with them or their Relevant Enterprises is being voted on at ageneral meeting or a board meeting, and execute the relevant approval procedure and information disclosureduties pursuant to the applicable laws, regulations and regulatory documents. Where the aforesaid commitmentsare broken and a loss is thus caused for FSL, its subsidiaries or FSL’s other shareholders, they shall be obligedto compensate.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfilment: In execution.
3. Commitment on Independence
(1) Commitment makers: Electronics Group and Hong Kong Rising Investment
Contents: In order to ensure the independence of FSL in business, personnel, asset, organisation and finance,Electronics Group and Hong Kong Rising Investment have made the following commitments: 1. They will
ensure the independence of FSL in business: (1) They promise that FSL will have the assets, personnel,qualifications and capabilities for it to operate independently as well as the ability of independent, sustainableoperation in the market. (2) They promise not to intervene in FSL’s business activities other than the executionof their rights as FSL’s shareholders. (3) They promise that they and their related parties will not be engaged inbusiness that is substantially in competition with FSL’s business. And (4) They promise that they and theirrelated parties will try their best to reduce related-party transactions between them and FSL; for necessary andunavoidable related-party transactions, they promise to operate fairly following the market-oriented principleand at fair prices, and execute the transaction procedure and the duty of information disclosure pursuant to theapplicable laws, regulations and regulatory documents. 2. They will ensure the independence of FSL inpersonnel: (1) They promise that FSL’s GM, deputy GMs, CFO, Secretary of the Board and other seniormanagement personnel will work only for and receive remuneration from FSL, not holding any positions inthem or their other controlled subsidiaries other than director and supervisor. (2) They promise FSL’s absoluteindependence from their related parties in labour, human resource and salary management. And (3) Theypromise to follow the legal procedure in their recommendation of directors, supervisors and senior managementpersonnel to FSL and not to hire or dismiss employees beyond FSL’s Board of Directors and General Meeting.
3. They will ensure the independence and completeness of FSL in asset: (1) They promise that FSL will have aproduction system, an auxiliary production system and supporting facilities for its operation; legally have theownership or use rights of the land, plants, machines, trademarks, patents and non-patented technology inrelation to its production and operation; and have independent systems for the procurement of raw materials andthe sale of its products. (2) They promise that FSL will have independent and complete assets all under FSL’scontrol and independently owned and operated by FSL. And (3) They promise that they and their othercontrolled subsidiaries will not illegally occupy FSL’s funds and assets in any way, or use the FSL’s assets toprovide guarantees for the debts of themselves or their other controlled subsidiaries with. 4. They will ensurethe independence of the Company in organisation: (1) They promise that FSL has a sound corporate governancestructure as a joint-stock company with an independent and complete organisational structure. (2) They promisethat the operational and management organs within FSL will independently execute their functions according tolaws, regulations and FSL’s Articles of Association. 5. They will ensure the independence of FSL in finance: (1)They promise that FSL will have an independent financial department and financial accounting system withnormative, independent financial accounting rules. (2) They promise that FSL will have independent bankaccounts and not share bank accounts with its related parties. (3) They promise that FSL’s financial personnel
do not hold concurrent positions in its related parties. (4) They promise that FSL will independently pay its taxaccording to law. And (5) They promise that FSL can make financial decisions independently and that they willnot illegally intervene in FSL’s use of its funds.Date of commitment making: 4 December 2015.Term of commitment: Long-standing.Fulfilment: In execution.
(2) Commitment makers: Rising Holdings Group
Contents: To maintain the independence of the Company, the Promisor has made the following commitments: Itwill ensure the personnel independence of the Company. 1. It promises to ensure personnel independence withthe Company, and GM, deputy GMs, CFO, Secretary of the Board of Directors and other senior managementpersonnel of the Company will not hold positions other than directors and supervisors in the enterprises whollyowned, controlled or actually controlled by it and its subsidiaries (hereinafter referred to as “subsidiaries”), andwill not receive salaries from it or its subsidiaries. 2. It will ensure the asset independence of the Company: (1)It promises that the Company has independent and complete assets. (2) It promises that it and its subsidiarieswill not illegally occupy the Company’s funds and assets in any way. 3. It will ensure the financialindependence of the Company: (1) It promises that the Company will have an independent financial departmentand financial accounting system. (2) It promises that the Company will have a standardised and independentfinancial accounting system. (3) It promises that the Company will have independent bank accounts and notshare bank accounts with it. (4) It promises that the Company’s financial personnel do not hold concurrentpositions in it or its subsidiaries. And (5) It promises that the Company can make financial decisionsindependently and that they will not illegally intervene in the Company’s use of its funds. 4. It will ensure theindependence of the Company in organisation: (1) It promises that the Company can operate independently withan independent and complete organisation structure. (2) It promises that the office and production and businesspremises of the Company are separated from those of Rising Holdings Group. And (3) It promises that theBoard of Directors, the Supervisory Committee and various functional departments of the Company operateindependently, and there is no subordinate relationship with the functional departments of Rising HoldingsGroup. 5. It will ensure the independence of the Company in business: (1) It promises that the Company willhave independence in business. And (2) It promises that the Company will have the assets, personnel,qualifications and capabilities for it to operate independently as well as the ability of independent, sustainableoperation in the market.
Date of commitment making: 4 November 2021.Term of commitment: Long-standing.Fulfilment: In execution.
4. Commitment on Effective Performance of Measures to Fill up Returns
Commitment makers: Rising Holdings Group, Rising Capital, Electronics Group, Hongkong Wah Shing, HongKong Rising Investment and Shenzhen Rising InvestmentContents: 1. They promise not to interfere in the operation and management activities of the listed companybeyond their authority and not to encroach on the interests of the listed company. 2. From the date of issuanceof these commitments to the completion of this trading of the listed company, if the CSRC makes newregulatory requirements on measures to fill up returns and commitments of relevant personnel, and the abovecommitments cannot meet these new regulatory requirements of the CSRC, they promise to issuesupplementary commitments according to the latest regulations of the CSRC at that time. From the date ofissuance of these commitments to the completion of this trading of the listed company, if the CSRC makes newregulatory requirements on measures to fill up returns and commitments of relevant personnel, and the abovecommitments cannot meet these new regulatory requirements of the CSRC, they promise to issuesupplementary commitments according to the latest regulations of the CSRC at that time. 3. They promise toearnestly fulfill the measures to fill up returns formulated by the listed company and any commitments made bythem. If they violate these commitments and causes losses to the listed company or investors, they are willing tobear the compensation responsibility for the listed company or investors according to law. As one of thesubjects responsible for the measures to fill up returns, if they violate the above commitments or refuse to fulfilthe above commitments, they agree that the securities regulatory agencies such as the CSRC and the SZSE willpunish them or take relevant regulatory measures in accordance with the relevant regulations and rules theyformulated or issued.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfilment: In execution.
5. Commitment on Compensation for Possible Violations of Laws and Regulations by NATIONSTARCommitment makers: Rising Holdings Group, Electronics Group, and Rising CapitalContents: If NationStar Optoelectronics is subject to administrative penalties such as accountability and fines byrelevant competent departments after the completion of this trading due to the illegal acts of NationStar
Optoelectronics before the completion of this acquisition, they promise to fully bear the losses of NATIONSTARor FSL, as well as the expenses and fees under punishment or recourse, to ensure that NationStar Optoelectronicsor FSL will not suffer any economic losses.Date of commitment making: 27 October 2021.Term of commitment: Long-standing.Fulfilment: In execution.
6. Commitment on the Truthfulness, Accuracy and Completeness of the Information Provided During ThisMajor Asset Restructuring
(1) Commitment makers: Rising Holdings Group, Electronics Group, and Rising CapitalContents: 1. They promise that the information provided is true, accurate and complete, and there are no falserecords, misleading statements or material omissions. 2. They have provided relevant information anddocuments (including but not limited to original written materials, duplicate materials or oral testimony, etc.)related to this trading to the intermediaries. They promise that the copies or photocopies of the documents andmaterials provided are consistent with the originals, and that the signatures and seals of the documents andmaterials are authentic, and the signatories of the documents have been legally authorised and effectively signedthe documents; that there are no false records, misleading statements or material omissions. 3. They promisethat the explanations and confirmations issued by them are true, accurate and complete, and there are no falserecords, misleading statements or material omissions. 4. During this trading, they will disclose the informationabout this trading in a timely manner in accordance with relevant laws and regulations, the CSRC and the SZSE,and ensure the authenticity, accuracy and completeness of such information. 5. They shall bear legalresponsibility for the authenticity, accuracy and completeness of the information, documents,