Foshan Electrical And Lighting Co.Ltd(000541) : Announcement on changes in accounting estimates of holding subsidiaries

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.: 2022026

Foshan Electrical And Lighting Co.Ltd(000541)

Announcement on changes in accounting estimates of holding subsidiaries

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. 1、 Summary of changes in accounting estimates

On March 30, 2022, the company held the 29th meeting of the ninth board of directors and the 13th meeting of the ninth board of supervisors. The meeting deliberated and adopted the proposal on the change of accounting estimates of holding subsidiaries, in order to more objectively and fairly reflect the recoverable situation and risk situation of receivables of Nanning Liaowang lamp Co., Ltd. (hereinafter referred to as "Nanning Liaowang"), the holding subsidiary of the company, According to the actual customer payment recovery of Nanning Liaowang and in combination with the management requirements of the company, the board of directors agreed that Nanning Liaowang would change the accounting estimate of the provision proportion of bad debt reserves for accounts receivable in accordance with the relevant provisions of the accounting standards for business enterprises.

In accordance with the Listing Rules of Shenzhen Stock Exchange, the articles of association and other relevant provisions, this matter falls within the approval authority of the board of directors and does not need to be submitted to the general meeting of shareholders for deliberation. 2、 Details of this accounting estimate change

1. Accounting estimates before and after change

The expected credit loss is accrued according to the aging, and Nanning Liaowang changes the accounting estimate according to the principle of consistency with the parent company. The situation before and after the change is as follows:

Before and after aging change

Within 1 year 5% 3%

1-2 years 10%

2-3 years 30%

3-4 years 50%

4-5 years 80%

More than 5 years 100%

2. Change date

This change will be implemented from August 1, 2021.

3. Impact of this accounting estimate change on the company

(1) According to the relevant provisions of accounting standards for Business Enterprises No. 28 - changes in accounting policies, accounting estimates and error correction, this change in accounting estimates adopts the future applicable method and does not make retroactive adjustment. Therefore, it will not have a significant impact on the disclosed financial statements of the company.

(2) The impact of this change in accounting estimates on the company's consolidated financial statements in 2021 is: the loss of credit impairment decreases by 286476800 yuan and the net profit increases by 237643302 yuan. 3、 Explanation of the board of directors on the rationality of changes in accounting estimates

The board of Directors believes that the change of accounting estimate is in line with the actual operation of the holding subsidiary Nanning Liaowang and the provisions of relevant laws and regulations, can more objectively and fairly reflect the company's financial situation and operating results, and is in line with the accounting standards for business enterprises and other relevant provisions. The board of directors agrees with the change of accounting estimate. 4、 Opinions of independent directors on the change of accounting estimates

After review, the independent directors believe that the accounting estimate change of Nanning Liaowang, a holding subsidiary, complies with the accounting standards for business enterprises and other relevant regulations. After the accounting estimate change, it can objectively and fairly reflect the financial status and operating results of the company. The decision-making procedures for the change of accounting estimates comply with relevant laws, regulations and the articles of association, and there is no situation that damages the interests of the company and shareholders. Agree to the change of accounting estimate of the holding subsidiary. 5、 Opinions of the board of supervisors on the change of accounting estimates

The board of supervisors held that the change of accounting estimate of Nanning Liaowang, a holding subsidiary, for withdrawing bad debt reserves complies with the accounting standards for business enterprises and other relevant provisions, the changed accounting estimate can objectively and fairly reflect the company's financial status and operating results, and the relevant decision-making procedures comply with the provisions of relevant laws and regulations. It agreed with the change of accounting estimate of the holding subsidiary. 6、 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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