Foshan Electrical And Lighting Co.Ltd(000541) : Announcement on the provision for asset impairment

Stock abbreviation: Foshan Electrical And Lighting Co.Ltd(000541) (A shares) Guangdong lighting B (B shares)

Stock Code: Foshan Electrical And Lighting Co.Ltd(000541) (A shares) 200541 (B shares)

Announcement No.: 2022025

Foshan Electrical And Lighting Co.Ltd(000541)

Announcement on the provision for asset impairment

The company and all members of the board of directors guarantee that the contents of the announcement are true, accurate and complete without false records, misleading statements or major omissions.

The company held the 29th meeting of the 9th board of directors and the 13th meeting of the 9th board of supervisors on March 30, 2022. The meeting deliberated and adopted the proposal on the provision for impairment. The specific conditions are announced as follows: I. overview of the provision for asset impairment this time

In accordance with the accounting standards for business enterprises and relevant accounting policies of the company, in order to truly and accurately reflect the financial status of the company as of December 31, 2021 and the operating results of the year 2021, the company and its holding subsidiaries have conducted impairment tests on various assets, and made corresponding provision for impairment of assets with signs of impairment according to the impairment test results. In 2021, the company made provision for impairment of 355488 million yuan, as shown in the following table:

Amount of impairment loss accrued for the project in 2021 (10000 yuan)

Credit impairment loss 465.72

Inventory falling price loss 291842

Impairment loss of construction in progress 131.88

Impairment loss of intangible assets 38.86

Total 354488

2、 Recognition criteria for the provision for asset impairment this time

(I) provision for credit impairment losses

The expected credit losses of accounts receivable, other receivables and contract assets shall be subject to impairment accounting treatment based on the expected credit losses in accordance with the accounting standards for Business Enterprises No. 22 – recognition and measurement of financial instruments and relevant accounting policies of the company, and the provision for credit impairment losses shall be recognized. In 2021, the company accrued credit impairment loss of 465721552 yuan.

(II) asset impairment loss

1. Provision for inventory falling price reserves

After a comprehensive inventory of inventories, for inventories with signs of falling price, the principle of the lower of inventory cost and net realizable value shall be adopted, and the inventory falling price reserves shall be withdrawn according to the difference between inventory cost and net realizable value. The company shall withdraw the inventory falling price reserves of RMB 291842 million in 2021.

2. Provision for impairment of construction in progress and intangible assets

The company conducts impairment test on long-term assets and judges whether there are signs of impairment. If there are signs of impairment, the recoverable amount shall be estimated. If the recoverable amount of the asset is lower than its book value, the impairment provision shall be withdrawn according to the difference and included in the impairment loss. The oxidation line project of Taimei times lamps Co., Ltd., the holding subsidiary of the company, is idle, and the provision for impairment of construction in progress is RMB 1318800; Chongqing Guinuo Photoelectric Technology Co., Ltd., the holding Sun company, now uses SAP system software. The original Kingdee software is no longer used, and the provision for impairment of intangible assets is 388600 yuan. 3、 Impact of the current provision for impairment on the company

The provision for asset impairment is 355488 million yuan, which will reduce the total profit of the company in 2021 by 355488 million yuan. 4、 Opinions of the board of directors on the provision for asset impairment this time

The company’s provision for asset impairment this time complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company. The basis for the provision for asset impairment is sufficient and in line with the actual situation of the company. The provision for asset impairment this time objectively and fairly reflects the company’s financial situation and operating results. 5、 Independent opinions of independent directors on the provision for asset impairment this time

Independent directors believe that the company’s provision for asset impairment in 2021 is made in accordance with the accounting standards for business enterprises and relevant accounting policies of the company, with sufficient basis and legal procedures. After the provision, it can more fairly reflect the company’s financial status and operating results, and there is no damage to the interests of the company and shareholders. They agree to withdraw the provision for asset impairment this time. 6、 Opinions of the board of supervisors on the provision for asset impairment this time

The board of supervisors believes that the provision for asset impairment of the company this time complies with the provisions of the accounting standards for business enterprises and relevant accounting policies of the company, conforms to the actual situation of the company, and can more fairly reflect the financial status and operating results of the company after the provision; The decision-making procedure for withdrawing the provision for impairment is legal, and it is agreed to withdraw the provision for asset impairment this time. 7、 Documents for future reference

1. Resolutions of the ninth session of the board of directors;

2. Independent opinions of independent directors;

3. Resolution of the 13th meeting of the 9th board of supervisors.

Foshan Electrical And Lighting Co.Ltd(000541) board of directors

March 30, 2022

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