Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

FOSHAN ELECTRICAL AND LIGHTING CO. LTD.INTERIM REPORT 2025

August 2025

1Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part I Important Notes Table of Contents and Definitions

The 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. (hereinafter referred to as the

“Company”) hereby guarantee the factuality accuracy and completeness of the contents of this Report and

its summary and shall be jointly and severally liable for any misrepresentations misleading statements or

material omissions therein.Wan Shan the Company’s legal representative Zeng Xiaojing the Company’s Chief Financial Officer

(CFO) and Li Yizhi the person-in-charge of the Company’s accounting organ (equivalent to accounting

manager) hereby guarantee that the Financial Statements carried in this Report are factual accurate and

complete.All the Company’s directors have attended the Board meeting for the review of this Report and its

summary.Any plans for the future and other forward-looking statements mentioned in this Report and its 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 fluctuations and intensified

market competition the risk of rising raw material prices the risk of exchange rate fluctuations and therisk of the recoverability of accounts receivable. Please refer to the section headed “Risks Facing theCompany and Countermeasures” in Item X of Part III of this 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 there be any

discrepancies or misunderstandings between the two versions the Chinese versions shall prevail.

2Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Table of Contents

Part I Important Notes Table of Contents and Defin... 2

Part II Corporate Information and Key Financial In....7

Part III Management Discussion and Analysis .........11

Part IV Corporate Governance Environment and Socie...46

Part V Significant Events .......................... 49

Part VI Share Changes and Shareholder Information .. 76

Part VII Bonds ..................................... 87

Part VIII Financial Statements ..................... 88

Part IX Other Reported Data ....................... 302

3Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Documents Available for Reference

1. The financial statements signed and stamped by the Company’s legal representative Chief Financial 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 during the Reporting

Period on the media designated by the CSRC for information disclosure.

4Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Definitions

Term Definition

The “Company” “listed company” “FSL” Foshan Electrical and Lighting Co. Ltd. and its consolidated

or “we” 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.NationStar Semiconductor Foshan NationStar Semiconductor Technology Co. Ltd.Sigma Foshan Sigma Venture Capital Co. Ltd.Liaowang Auto Lamp Nanning Liaowang Auto Lamp Co. Ltd.Fozhao Huaguang Fozhao Huaguang (Maoming) Technology Co. Ltd.Hule Electrical Equipment Zhejiang Hule Electrical Equipment Manufacturing Co. Ltd.Beijing Airtrust Beijing Airtrust Technology 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’0000 RMB’00000000 Expressed in the Chinese currency of Renminbi expressed in tens of

thousands of Renminbi expressed in hundreds of millions of

5Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Renminbi

H1 2025 January 1 2025 to June 30 2025

H1 2024 January 1 2024 to June 30 2024

6Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 ELECTRICALAND LIGHTING CO.LTD

Abbr. (if any) FSL

Legal representative Wan Shan

II Contact Information

Board Secretary Securities Representative

Name Huang Zhenhuan Huang Yufen

No. 8 Zhihui Road Chancheng No. 8 Zhihui Road Chancheng

Address District Foshan City Guangdong District Foshan City Guangdong

Province P.R.China 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

7Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

The registered address office address and their zip codes website address email address and other contact

information of the Company did not change in the Reporting Period. For details please refer to the Annual

Report 2024.

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 for keeping

the Company’s periodic reports in the Reporting Period.□ Applicable? Not applicable

The website of the stock exchange and the names and websites of the media where the Company disclosed its

interim reports or the place for keeping the Company’s interim reports did not change in the Reporting Period.For details please refer to the Annual Report 2024.

3. Other Information

Indicate by tick mark whether any change occurred to other information in the Reporting Period.□ Applicable□ Not applicable

IV Key Financial Information

Indicate by tick mark whether there is any retrospectively restated datum in the table below.□ Yes? No

H1 2025 H1 2024 Change (%)

Operating revenue

(RMB) 4385731119.78 4784545767.42 -8.34%

Net profit

attributable to the

listed company’s 114993752.24 192229182.38 -40.18%

shareholders

(RMB)

Net profit

attributable to the

listed company’s

shareholders before 106076984.29 178842912.77 -40.69%

exceptional gains

and losses (RMB)

Net cash generated

from/used in

operating activities 9845012.95 384593044.61 -97.44%

(RMB)

Basic earnings per

share (RMB/share) 0.0749 0.1252 -40.18%

8Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Diluted earnings

per share 0.0748 0.1241 -39.73%

(RMB/share)

Weighted average

return on equity (%) 1.71% 3.02% -1.31%

June 30 2025 December 31 2024 Change (%)

Total assets (RMB) 17172922065.33 17159763456.64 0.08%

Equity attributable

to the listed

company’s 6717892162.17 6574304305.27 2.18%

shareholders

(RMB)

V Accounting Data Differences under China’s Accounting Standards for Business

Enterprises (CAS) and International Financial Reporting Standards (IFRS) and Foreign

Accounting 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 -47603.62

impairment allowance write-offs)

Government grants recognized in

current profit or loss (exclusive of

those that are closely related to the

Company’s normal business 20828366.39

operations and given in accordance

with defined criteria and in

compliance with government

9Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

policies and have a continuing

impact on the Company’s profit or

loss)

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 758629.50

the effective portion of hedges that

arise in the Company’s ordinary

course of business)

Capital occupation charges on a

non-financial enterprise that are 1135048.55

charged to current profit or loss

Reversed portions of impairment

allowances for receivables which

are tested individually for 1563182.27

impairment

Non-operating income and expense

other than the above 9030.37

Less: Income tax effects 3436802.38

Non-controlling interests effects

(net of tax) 11893083.13

Total 8916767.95

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 the Explanatory

Announcement No. 1 on Information Disclosure for Companies Offering Their Securities to the Public—

Exceptional Gain/Loss Items:

□ Applicable□ Not applicable

No such cases for the Reporting Period.

10Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part III Management Discussion and Analysis

I Principal Operations of the Company in the Reporting Period

(I) Principal operations

The Company has been committed to the R&D production and sale of high-quality and energy-efficient lighting

products in order to provide integrated lighting solutions for customers. It is the controlling shareholder of

Nanning Liaowang Auto Lamp Co. Ltd. (“Liaowang Auto Lamp”) Foshan NationStar Optoelectronics Co. Ltd.(“NationStar Optoelectronics”) Zhejiang Hule Electrical Equipment Manufacturing Co. Ltd. (“Hule ElectricalEquipment”) and Beijing Airtrust Technology Co. Ltd. (“Beijing Airtrust”) through acquisition programs starting

from 2021. At present the principal business of the Company mainly includes the R&D production and sale of

general lighting products automotive lighting products and LED packaging products.The general lighting mainly covers LED light sources LED luminaries traditional lighting products and

comprehensive lighting solutions for home lighting commercial lighting industrial lighting municipal road

lighting and landscape lighting. Over recent years the Company has also been exploring new fields including

smart lighting healthy lighting marine lighting aviation lighting and animal and plant lighting.Based on its own automotive light sources and modules the Company relying on its majority-owned subsidiary

Liaowang Auto Lamp 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 Liaowang Auto Lamp include SAIC-

GM-Wuling Automobile Chongqing Changan Automobile SERES IM SAIC Maxus Automotive and other

whole-automobile manufacturers and medium- and high-end products take up an increasing percentage of its total

sales of automotive lights.The Company conducts LED packaging business mainly by relying on its majority-owned subsidiary NationStar

Optoelectronics (stock code: 002449). The primary products include LED epitaxial wafers and chips LED

packaging and component products integrated circuit packaging products and third generation compound

semiconductor packaging products which are widely used for consumer electronics home appliances computers

communications display and lighting products general lighting automotive lighting sterilization and

purification plant lighting and other fields.(II) Industry development

In the first half of 2025 the lighting industry faced a difficult journey amidst intense market competition. On one

hand the domestic economy is in a critical period of structural adjustment and transformation with traditional

growth drivers and emerging growth drivers continuously shifting leading to more challenges and difficulties in

development. On the other hand international trade tariff wars have had a significant impact on export business.According to the China Association of Lighting Industry’s Lighting Industry Export Brief Report for the First

Half of 2025 affected by tariffs the total export value of Chinese lighting products from January to June 2025

decreased by approximately 6% year-on-year with exports to the United States dropping by about 16%. The

overall export revenue of the lighting industry in the first half of the year is under pressure. In the coming period

the competitive landscape in the lighting industry is expected to continue to intensify. Many small and medium-

sized lighting enterprises will be forced to exit the market due to cost and market pressures accelerating industry

reshuffling and restructuring. The industry concentration is expected to further increase. Leading enterprises

leveraging advantages in channels brands technology scale and capital will continue to consolidate their market

dominance. At the same time with the integration of 5G IoT AI and lighting technology industry leaders are

actively adjusting their product structures and market strategies accelerating the transition from offering single

products to providing system solutions such as smart cities smart homes health lighting and green lighting. They

are expanding into new sub-sectors and high-added-value areas creating new growth spaces for the industry.In recent years driven by the rapid development of new energy vehicles (NEVs) and government policies

promoting automotive development and consumption China’s automotive industry has seen strong production

11Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

and sales. According to data from the China Association of Automobile Manufacturers in the first half of 2025

China’s automotive production and sales reached 15621000 and 15653000 units respectively growing by

12.5% and 11.4% year-on-year. Among them the production and sales of NEVs were 6968000 and 6937000

units with a growth of 41.4% and 40.3% respectively raising the market share to 44.3%. Thanks to the continued

development of the automotive market the automotive lighting market has enjoyed vast development potential.With the trends of passenger vehicle intelligence safety comfort and energy efficiency the stability energy

efficiency intelligence and safety requirements for automotive lighting systems have been increasingly elevated.The design and integration requirements for automotive lighting system control modules will become higher with

smart technologies like ADB DLP and interactive features gradually penetrating. The value of automotive

lighting products will continue to rise. Meanwhile with the gradual maturity of China’s semiconductor industry

chain domestic automotive lighting enterprises with their enhanced R&D capabilities and flexible service

offerings have gradually been integrated into the supply chains of various automakers. The acceleration of

domestic substitution continues and domestic automotive lighting companies are facing broad development

opportunities.The LED packaging industry is undergoing rapid reshuffling under pressure from trade tariff disputes slowing

market demand and rising costs with many companies facing the dilemma of increased output without increased

revenue. Their profit margins are being squeezed. Despite short-term pressures some enterprises are achieving

structural breakthroughs through global market expansion diversified applications and high-end technology

shifting the industry focus from scale expansion to value creation. Technical breakthroughs and innovation in

application scenarios have become the core competitive barriers. Meanwhile as technology advances niche

markets like Mini/Micro LEDs and automotive LEDs are rapidly emerging as core growth engines for the

industry. New application scenarios such as virtual production LED movie screens plant lighting human-centric

lighting and smart lighting are deeply integrating with traditional sectors driving the industry towards high-end

intelligent upgrades and a higher-quality developmental phase.(III) Business models

1. Procurement model

The Company’s procurement department should ensure that the procured materials and products meet the

prescribed requirements and that procurement activities are under control. Besides it should consider the needs of

each department and the reasonable stock quantity before carrying out any procurement determine suppliers by

means of bidding price negotiation and price comparison. There should be several backup suppliers of each

principal raw material to ensure fair procurement price timely material supply and reliable quality.

2. Production model

For routine products the monthly production plan is prepared based on the analysis of the sales of each 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 customized products 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 Company’s general lighting business for domestic sales the Company adopts the model of agency

distribution and direct supply to engineering projects with current sales mainly in household commerce and e-

commerce channels. For foreign sales the Company adopts the models of OEM and independent brands. 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 light

products 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 through direct

communication with clients.(IV) Main driving forces for growth

12Foshan Electrical and Lighting Co. Ltd. Interim Report 2025The Company is committed to the overall development strategy of “new-type basic platform and large-scale newtracks” and continuously strengthens the innovation driver and refines the business portfolio. Additionally it

promotes the change of the marketing model intensifies management improvement and vigorously explores

market segments. Since 2021 the Company has acquired Liaowang Auto Lamp NationStar Optoelectronics Hule

Electrical Equipment and Beijing Airtrust significantly enhancing its competitiveness in the automotive lighting

marine lighting and aviation lighting sectors. At the same time the integration of upstream and downstream

resources along the LED industry chain has provided solid support for the Company’s rapid expansion.With the evolution of the industrial competition model consumers are getting increasingly concerned with

product quality and brand. As a result lighting companies with insufficient competitiveness will be gradually

elbowed out of the market while enterprises with core competitiveness will have more market opportunities. By

virtue of its advantages in technology brand channel and scale the Company continuously launches high-tech-

content new products through sustained R&D investment and technology innovation advancing the technological

upgrade and quality improvement of main products. Simultaneously the Company is intensifying market

exploration efforts optimizing industrial layouts increasing production automation and digital management

levels effectively controlling procurement costs and improving production efficiency. These initiatives have

enabled the Company to secure a favorable position amid increasing market concentration further strengthening

its market competitiveness.II Core Competitiveness Analysis

The Company has been dedicated to the R&D manufacturing and sale of lighting products since its establishment.Through continuous investment in R&D and innovation branding channel development as well as vertical

integration of the industrial chain the core competitiveness of the Company has been further strengthened which

is mainly reflected in the following aspects:

R&D technical advantage

As a National High-Tech Enterprise a National Intellectual Property Demonstration Enterprise a Guangdong

Manufacturing Champion Demonstration Enterprise one of the Top 100 Innovative Enterprises in Guangdong

Province and one of the Top 100 Manufacturing Enterprises in Guangdong Province the Company possesses

outstanding innovation capabilities and technological strength. The Company’s testing center is accredited by the

China National Accreditation Service for Conformity Assessment (CNAS) enabling it to provide authoritative

certification for product quality. In addition the Company and its subsidiaries have established 31 research and

development platforms including the “Guangdong Provincial Enterprise Technology Center” “GuangdongProvincial Doctoral Workstation” “Guangdong Provincial Science and Technology Expert Workstation”

“Postdoctoral Research Station (Branch Station)” “Guangdong Provincial Engineering Technology Research andDevelopment Center for Electric Light Sources” and the “Guangdong Provincial Industrial Design Center.” The

Company has undertaken several key scientific and technological projects including the National Key R&D

Program “Marine Agriculture and Freshwater Fisheries Technology Innovation” and Hainan Province “Land-Sea-Air” Technology Special Project. The Company has received numerous honors including the First Prize for

Scientific and Technological Progress in China’s Machinery Industry the Second Prize of the China Invention

and Entrepreneurship Achievement Award the Third Prize for Scientific and Technological Progress from the

China National Light Industry Council the Gold Award at the National Age-friendly Design Competition and the

Taiwan Golden Pin Design Award. Barriers with independent intellectual property have been established in

numerous fields such as optics spectroscopy electronics IoT and AI. As at the end of the Reporting Period the

Company and its subsidiaries have cumulatively obtained over 2700 authorized valid patents and led or

participated in formulating more than 250 standards at international national and industry levels. By actively

integrating internal and external resources the Company has collaborated in-depth with renowned universities and

research institutes such as Tsinghua University Fudan University Hong Kong University of Science and

Technology Wuhan University Dalian Ocean University the Chinese Academy of Sciences’ Institute of Deep-

sea Science and Engineering and the Ji Hua Laboratory in industry-university-research partnerships. This has led

to significant technological breakthroughs and technological achievement transformations spurring innovations in

frontier technology fields establishing efficient R&D talent development channels and providing firm support for

maintaining the Company’s technological leadership and ongoing product innovation. Liaowang Auto Lamp

boasts a provincial enterprise technology center a provincial R&D center and a Guangxi automotive lighting

parts engineering technology research center; and established the Automotive Lighting Research Institute and

13Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

multiple R&D centers. In recent years Liaowang Auto Lamp has increased R&D investment accelerated

investment in various lens modules and interactive signal lamp technologies and continuously enhanced its R&D

strength. NationStar Optoelectronics has created 14 research platforms at or above provincial level including the

Postdoctoral Research Station and the National- and local-joint Engineering Laboratory for Semiconductor

Lighting Materials and Components. It has undertaken over 30 national research projects such as the key national

R&D programs in addition to more than 100 provincial and municipal research projects. Besides it has won

multiple honors such as “National Intellectual Property Demonstration Enterprise” “China Patent Gold Award”

“National Science and Technology Progress Award (first/second prize)” as well as “National ManufacturingIndividual Champion”. Moreover it has constantly made breakthroughs and surmounted technological challenges

in emerging areas such as Mini/Micro LED third-generation semiconductor power devices smart health sensors

automotive LED components and new optoelectronic components.Brand advantage

As a national brand with 67 years of deep cultivation in the lighting industry the Company was recognized in

2024 by the Ministry of Commerce and four other ministries as a “China Time-honored Brand” and was selected

as one of the “Top Ten Cases of Innovation for China Time-honored Brands” by the Ministry of Commerce.During the Reporting Period the Company’s brand influence and value reached new highs. The latest brand value

stood at RMB47507 million a year-on-year increase of 20.64% marking a historic high and maintaining itsposition in the top two of the national industry. The Company has been listed among the “Top 500 Most ValuableChinese Brands” for 20 consecutive years. By aligning improvements in corporate development positioning

product design and user experience the Company has reshaped its corporate value system and refined its

“Technology-FSL” brand strategy successfully completing the launch of a renewed and upgraded brand image.Centering on a new brand image of “youth technology fashion” the Company implemented a multidimensional

communication strategy introduced a new brand IP image “Light Xiaoming” and integrated mainstream media

resources like Xinhua News Agency and Southern media with over 320 million online communication exposures

generated in the first half of the year. These efforts accelerated the transformation of FSL from an industry brand

into a mainstream consumer brand breathing new life into this time-honored enterprise. The brand “FSL” has

become one of the most influential and popular industrial brands in China and the powerful brand influence has

played a key role in driving the sustained growth of the Company’s sales. Liaowang Auto Lamp 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 related automobile enterprises several times. NationStar Optoelectronics actively

participates in various important industry exhibitions and forums and has earned high recognition both within and

outside the industry through its profound professional background and active engagement. As a result it has

received honors such as “Brand Power” and “Top Ten LED Packaging Brands” continually enhancing its

professional image brand awareness and reputation.Channel advantage

The Company has been sticking to the market strategy of deeply cultivating and refining channels. Over years of

development and experience the Company has been equipped with three major sales channels in domestic market

(household commerce and e-commerce channels) forming a marketing network covering the whole country; in

foreign market the Company has made active steps to develop 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 its powerful and comprehensive sales channels the Company has

enabled its products to enter market rapidly substantially enhancing its market development abilities and

competitiveness. Hule Electrical Equipment is one of the major manufacturers in the ship lighting industry in

China and has established long-term cooperative relationships with large domestic shipbuilding enterprises.Beijing Airtrust is a joint venture between the Company and Guangzhou Airport Industrial Development Co.Ltd. focusing on aviation lighting business such as runway approach lights. Liaowang Auto Lamp is a major

manufacturer in the Chinese automotive light industry. It has accumulated stable whole-automobile manufacturing

clients and has been developing customers of medium- and high-end and new energy vehicle makers. 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 and internationally famous home

appliance enterprises has successfully showcased its products in many large events and high-end venues at home

and abroad and is widely recognized by end clients and the market.

14Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Scale advantage

As one of the enterprises to first step into the industry of producing and selling lighting products the Company

forms a capability of mass manufacturing by years of experience accumulation. After years of continuous

investment the Company has greatly improved its production automation level. The large-scale and centralized

production brings obvious economic benefits to the Company which not only shows in manufacture cost of

products but also shows in aspects such as raw material procurement and price negotiation. Hule Electrical

Equipment is an important domestic manufacturer of ship lighting fixtures having been deeply rooted in the

industry for many years. It is one of the leading companies in the domestic ship lighting fixture industry. With

manufacturing bases in Nanning Liuzhou Chongqing Qingdao Suzhou and Indonesia Liaowang Auto Lamp

has an annual production capacity of more than 5 million sets of automotive lights. NationStar Optoelectronics

began engaging in LED packaging in 1976. It is included in the first batch of enterprises that have produced LED

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

The Company achieved full coverage of the LED industry chain by holding equity in NationStar Optoelectronics

including upstream LED chip manufacturing midstream LED packaging and downstream LED application

products. This optimization of the industry chain further enhances the Company’s competitiveness and influence

in the industry.III Analysis of Principal Operations

1. Overview

During the first half of 2025 in the face of mounting pressure on global economic growth an increasing number

of adverse factors in the international political and economic landscape and intensifying industry competition theCompany adhered to the work strategy of “Three Leads Three Stabilizations Four Transformations and FiveStrengths” and focused closely on the business theme of “Lean Management Breakthrough and ClimbingHigher”. The Company made every effort to expand markets strengthen innovation and enhance quality and

efficiency. As a result the Company recorded operating revenue of RMB 4385.7311 million and a net profit

attributable to the shareholders of the listed company of RMB 114.9938 million.The highlights of the Company’s work during the Reporting Period are as follows:

(1) Expanding the market through all possible means

First it launched the domestic counteroffensive. Leveraging the “Guangdong Special Operations Zone” and

“Orange Action” as springboards the Company accelerated the penetration of hardware distribution channels and

built a lean distribution system for commercial products. This enabled the Company to expand into 43 untapped

regional markets and add over 1600 high-quality outlets. It secured over 20 multi-million-RMB projects and won

bids for centralized procurement projects from over 30 large enterprises and design institutes. Meanwhile the e-

commerce sector capitalized on the national trade-in subsidy program and live-streaming promotions driving

traffic and sales to achieve a 10.76% year-on-year revenue growth.Second it executed the export expansion drive. Seizing the “90-day tariff exemption window” the Company

cleared backlogged orders to ensure on-time delivery. Employing a differentiated strategy it accelerated

expansion into emerging markets including those along the Belt and Road securing representation in six

previously untapped countries. Additionally the Company acquired multiple multi-million-RMB customer won

bids for several overseas engineering projects and drove year-on-year sales growth in Europe Africa the Middle

East and Southeast Asia. Concurrently its product mix continued to improve. Revenue from smart products and

key lighting fixtures increased substantially while revenue from self-owned brands achieved double-digit growth.Third it secured breakthroughs in new growth areas. Liaowang Auto Lamp secured six new projects for mid-to-

high-end vehicle models achieving a landmark breakthrough with a luxury automaker and driving revenue

growth of 9.52% year-on-year. The Auto Lamp Division further expanded its portfolio with six new module

15Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

projects and ventured into the automotive lighting controller segment. In marine lighting the Company landed the

“Zhanjiang Bay No. 1” smart marine ranch project and won the bid for a dynamic rhythm lighting system

prototype marking its entry into the high-end deep-sea rhythm lighting sector. For sports lighting key projects

executed included the National Youth Football Training Base and the lighting renovation for the Shanghai PUSH

Basketball Center. Regarding the plant and animal lighting the Company accelerated the application and

promotion of specialized light environments for specialty economic plants and secured projects with several major

aquaculture enterprises resulting in a 46.75% year-on-year sales increase.

(2) Unwavering commitment to innovation

First it drove a series of collaborative innovation achievements. Adhering to the principle of complementary

strengths the Company expanded its “Lighting + Cross-Industry Partnership” focusing on multiple cutting-edge

lighting technology fields including health lighting marine lighting and intelligent sensing. It engaged in

extensive collaboration with renowned universities research institutions and partners integrating R&D resources

with industry demands to explore the deep integration of innovative technologies into lighting product

development and solution building. Second it achieved hard-core technological breakthroughs. The Company

launched AI Light Code technology enabling full-scenario intelligent spectral applications for home commercial

and other environments. It also upgraded the lighting system for the national key project “Jiaolong” submersible

enhancing deep-sea exploration and precise search capabilities with a maximum depth of 10500 meters. The

MDL intelligent human-vehicle interaction technology was applied to mass-produced new energy vehicle models

marking a breakthrough. The microwave induction LED key technology won the third prize for scientific progress

from the China Light Industry Council. The Company introduced the MIP + module + GOB integrated packaging

solution advancing micro-pitch display technology. The Mini LED backlight module can be customized to meet

customer needs leading the upgrade of in-vehicle display technology. Third it contributed to industry standards.With AS9100D aerospace quality system certification and IECEx international explosion-proof certification the

Company had 186 new authorized patents by the end of the Reporting Period. The Company hosted national

mandatory standards revision seminars and released ten standards at various levels including road tunnel lighting

energy efficiency vehicle lighting and light signal durability. These efforts have further enhanced the Company’s

qualifications and industry influence.

(3) Multiple measures to improve quality and efficiency

First the Company enhanced quality and efficiency through digital upgrades. It has launched and implemented

projects such as the PLM system and AI smart customer service robots as well as introduced fully automated

photometry and flexible production lines which have improved production efficiency and shortened order

delivery cycles. Second it reduced costs and controlled expenses with meticulous budgeting. By enforcing full-

process budget control the Company has promoted cost reduction across the entire chain including management

R&D design procurement production and supply chain and established cross-department “elite project teams”

to optimize and reduce costs for 34 key product categories improving product competitiveness. Third it tightened

and solidified the management of “two funds”. The Company has increased the weight of these funds in

performance appraisal managing both the reduction of incremental increases and the clearance of existing stock.Strict order classification and evaluation systems as well as dealer credit management have been implemented to

curb debt growth while measures such as legal action and special teams have been used to expedite the recovery

of receivables. Fourth it conducted process optimization to improve efficiency. The Company has completed over

40 institutional revisions optimized 33 business processes and 78 management processes and built the structure

and operations of the “three major centers” of supply chain products and solutions quality and customer service.The trial production cycle for new products has been reduced by over 30% and product and material SKUs have

been streamlined.

2. Year-on-year Changes in Key Financial Data

Unit: RMB

H1 2025 H1 2024 Change (%) Main reason forchange

Operating revenue 4385731119.78 4784545767.42 -8.34%

16Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025 H1 2024 Change (%) Main reason forchange

Cost of sales 3565320556.68 3870251108.01 -7.88%

Selling expense 182892072.03 167217797.90 9.37%

Administrative

expense 224001579.55 226332962.51 -1.03%

Exchange rate

Finance costs -17117656.17 -30606244.74 44.07% fluctuations in the

current period

Income tax expense 18318812.92 24632382.12 -25.63%

R&D expense 286580266.83 288841483.79 -0.78%

Net cash flow from Reduced cash receipts

operating activities 9845012.95 384593044.61 -97.44% from sales of productsin the current period

Purchase of a

Net cash flow from relatively high

investing activities -18934602.88 -831982796.40 97.72% amount of largedepository receipts in

the previous period

Year-on-year

decrease in bank

Net cash flow from borrowings and year-

financing activities -131887757.84 19514293.35 -775.85% on-year increase inthe repayment of bank

borrowings in the

current period

Year-on-year

decrease in net cash

flows from operating

Net increase in cash activities and

and cash -138553235.69 -413495213.21 66.49% financing activities

equivalents and year-on-yearincrease in net cash

flow from investing

activities in the

current period

Delivery upon

Held-for-trading 2288376.68 43649820.47 -94.76% maturity of wealthfinancing assets management products

in the current period

17Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025 H1 2024 Change (%) Main reason forchange

Increase in

prepayments in the

Prepayments 32710901.40 24419779.12 33.95% ordinary course of

business in the current

period

Receipt of customer

Contract assets 1126681.30 1690021.95 -33.33% payments in the

current period

Other current assets 414826910.56 261284776.85 58.76% Term deposits madein the current period

Repayment of bank

borrowings and de-

recognition of

Short-term

borrowings 199599173.96 307141147.49 -35.01%

discounted notes

receivable with

recourse upon

maturity in the current

period

Changes in the fair

value of forward

Financial liabilities exchange settlement

held for trading 275250.00 -100.00% products caused by

exchange rate

fluctuations

Long-term Repayment of bank

borrowings 131440187.61 222581930.54 -40.95% borrowings in thecurrent period

Cancellation of

Treasury stock 82165144.15 -100.00% treasury stocks in the

current period

Decreased net profit

Investment income attributable to owners

from associates and 646719.77 1444720.72 -55.24% of joint ventures as

joint ventures the parent in the

current period

Gain on changes in Changes in the fair

fair value (“-” for 345894.65 -601447.40 157.51% value of financial

loss) instruments in thecurrent period

Credit impairment

loss (“-” for loss) -12101495.69 -38270808.58 68.38%

Decreased allowance

for expected credit

18Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025 H1 2024 Change (%) Main reason forchange

loss in the current

period compared with

the same period of

last year

Decreased inventory

valuation allowances

Asset impairment in the current period

loss (“-” for loss) -22424871.33 -36958804.89 39.32% compared with the

same period of last

year

Decrease in the loss

Asset disposal on disposal of assets

income (“-” for in the current period-64693.00 -99108.79 34.73%

loss) compared with thesame period of last

year

Non-operating Higher revenue from

income 2113315.35 3054859.55 -30.82% liquidated damages inthe previous period

Non-operating Increase in fines and

expense 2087195.60 486217.43 329.27% late payment penaltiesin the current period

Increased changes in

the fair value of

Other investments in other

comprehensive 213491772.64 -22766075.54 1037.76% equity instruments in

income net of tax the current periodcompared with the

same period of last

year

Other Increased changes in

comprehensive the fair value of

income net of tax investments in other

attributable to 213835708.05 -22203388.92 1063.08% equity instruments in

owners of the the current period

Company as the compared with the

parent same period of lastyear

Increased changes in

Changes in the fair the fair value of

value of investments in other

investments in other 214283065.88 -21548515.71 1094.42% equity instruments in

equity instruments the current period

compared with the

same period of last

19Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025 H1 2024 Change (%) Main reason forchange

year

Differences arising

from the translation Fluctuations of the

of foreign currency- -447357.83 -654873.21 31.69% RMB against foreign

denominated currencies

financial statements

Other

comprehensive Fluctuations of the

income net of tax -343935.41 -562686.62 38.88% RMB against foreign

attributable to non- currencies

controlling interests

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.

3. Breakdown of Operating Revenue

Unit: RMB

H1 2025 H1 2024

Operating As % of total As % of total

Change (%)

revenue operating

Operating operating

revenue (%) revenue revenue (%)

Total 4385731119.78 100% 4784545767.42 100% -8.34%

By operating division

Lighting products

and luminaries 2632166173.46 60.02% 2867569798.18 59.93% -8.21%

Electronic

component 1260619128.02 28.74% 1441392532.40 30.13% -12.54%

manufacturing

Export trade and

other 492945818.30 11.24% 475583436.84 9.94% 3.65%

By product category

General lighting

products 1555797106.24 35.47% 1718962585.41 35.93% -9.49%

LED packaging 1138917060.61 25.97% 1323471292.10 27.66% -13.94%

20Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025 H1 2024

Operating As % of total Operating As % of total

Change (%)

revenue operating revenue operatingrevenue (%) revenue (%)

and components

Auto lamps 1013526856.90 23.11% 1045063423.50 21.84% -3.02%

Trade and other 677490096.03 15.45% 697048466.41 14.57% -2.81%

By operating segment

Domestic 3419449003.11 77.97% 3747878177.49 78.33% -8.76%

Overseas 966282116.67 22.03% 1036667589.93 21.67% -6.79%

4. Operating Division Product Category or Operating Segment Contributing over 10% of Operating

Revenue or Operating Profit

□ Applicable □ Not applicable

Unit: RMB

Gross YoY change YoY YoY changeOperating

revenue Cost of sales profit in operating

change in in gross

margin revenue (%) cost of profit marginsales (%) (%)

By operating division

Lighting

products and 2632166173.46 2021006401.06 23.22% -8.21% -8.25% 0.03%

luminaries

Electronic

component 1260619128.02 1065770286.77 15.46% -12.54% -13.75% 1.19%

manufacturing

Export trade and

other 492945818.30 478543868.85 2.92% 3.65% 10.82% -6.28%

By product category

General lighting

products 1555797106.24 1142860150.29 26.54% -9.49% -9.93% 0.35%

LED packaging

and components 1138917060.61 944141765.80 17.10% -13.94% -14.15% 0.20%

21Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Auto lamps 1013526856.90 833677921.36 17.74% -3.02% -3.15% 0.11%

Trade and other 677490096.03 644640719.23 4.85% -2.81% 0.58% -3.20%

By operating segment

Domestic 3419449003.11 2742697709.96 19.79% -8.76% -8.57% -0.17%

Overseas 966282116.67 822622846.72 14.87% -6.79% -5.49% -1.17%

Data of principal operations of the latest period adjusted according to the changed statistical caliber in the

Reporting Period:

□ Applicable□ Not applicable

IV Analysis of Non-Principal Operations

□ Applicable □ Not applicable

Unit: RMB

Amount As % of profitbefore tax Source/Reason

Recurrent or

not

Dividend income from

Return on other equity investments

investment 27447075.84 16.51% held during the period Yesand interest income from

other debt investments

Gain/loss on

changes in fair 345894.65 0.21% Changes in fair value of

value financial instruments

Yes

Asset impairments -22424871.33 -13.49% Inventory valuationallowances Yes

Carryforwards of

Non-operating payables that require no

income 2113315.35 1.27% payment and revenue Notfrom liquidated damages

in the current period

Non-operating Fines and late payment

expense 2087195.60 1.26% penalties in the current Notperiod

Other income 45245132.45 27.22% Receipt of continuinggovernment grants Not

Credit impairment

loss (“-” for loss) -12101495.69 -7.28%

Allowances for doubtful Yes

accounts receivable and

22Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amount As % of profit Source/Reason Recurrent orbefore tax not

other receivables

Asset disposal Gains or losses on the

income (“-” for -64693.00 -0.04% disposal of non-current Not

loss) assets

V Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

June 30 2025 December 31 2024 Change

in Main reason for

As % of As % of percenta significant changeAmount total assets Amount total assets ge (%)

Monetary 3209127437.3 Term deposits

assets 3084419399.18 17.96% 18.70% -0.74%1 made in thecurrent period

Appropriate

Accounts 2125667291.9 extension of

receivable 2243390191.30 13.06% 12.39% 0.67%6 payment days forsome high-quality

customers

Contract

assets 1126681.30 0.01% 1690021.95 0.01% 0.00%

Inventory 2025499361.32025757449.08 11.80% 11.80% 0.00%8

Investment

property 827883993.63 4.82% 793487046.02 4.62% 0.20%

Long-term

equity 180947314.66 1.05% 180300594.89 1.05% 0.00%

investments

Fixed assets 3646594206.03572275761.68 20.80% 21.25% -0.45%4

Construction

in progress 293945488.06 1.71% 263601705.89 1.54% 0.17%

Right-of-use

assets 18139960.72 0.11% 22342999.34 0.13% -0.02%

Short-term 199599173.96 1.16% 307141147.49 1.79% -0.63% Repayment of

23Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

June 30 2025 December 31 2024 Change

in Main reason for

Amount As % of As % of

percenta significant change

total assets Amount total assets ge (%)

borrowings bank borrowings

and de-

recognition of

discounted notes

receivable with

recourse upon

maturity in the

current period

Contract

liabilities 142244278.82 0.83% 119506301.48 0.70% 0.13%

Repayment of

Long-term 131440187.61 0.77% 222581930.54 1.30% -0.53% bank borrowingsborrowings in the current

period

Lease

liabilities 11380772.63 0.07% 15023993.11 0.09% -0.02%

Maturity of some

Notes

receivable 792038054.34 4.61% 997281070.21 5.81% -1.20%

notes receivable

in the current

period

Receivables

financing 380276549.15 2.21% 352694866.89 2.06% 0.15%

Other current Term deposits

assets 414826910.56 2.42% 261284776.85 1.52% 0.90% made in thecurrent period

Other debt 1140022863.7

investments 1155317713.39 6.73% 6.64% 0.09%2

Investments in

other equity 747257412.11 4.35% 726663613.42 4.23% 0.12%

Intangible

assets 383721802.95 2.23% 388587348.99 2.26% -0.03%

Decreased

payment of

Notes payable 1930784817.61781207077.08 10.37% 11.25% -0.88% ordinary course2 of business using

notes in the

current period

24Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

June 30 2025 December 31 2024 Change

in Main reason for

As % of As % of percenta significant changeAmount total assets Amount total assets ge (%)

Accounts 2781965096.7

payable 2765954401.30 16.11% 16.21% -0.10%0

The 2024 final

Other dividend in cash

payables 669335888.63 3.90% 495717050.97 2.89% 1.01% was declared andprovided for in

the current period

Other current

liabilities 394759280.65 2.30% 377156212.40 2.20% 0.10%

2. Major Assets Overseas

□ Applicable□ Not applicable

3. Assets and Liabilities at Fair Value

□ Applicable □ Not applicable

Unit: RMB

Gain/loss

on fair- Accumulat Impairmen

value ed fair- t allowance Purchased Sold in

Item Beginning changes in valueamount changes for the

in the the Other Ending

the Reporting Reporting Reporting changes amount

Reporting charged to Period Period Period

Period equity

Financial

assets

1. Held-for-

trading

financial

assets 11670733 2288376

(exclusive of 43649820.47 345894.65 75000000.00 8.44 .68

derivative

financial

assets)

3. Other debt 1140022863 1529484 1155317

investments .72 9.67 713.39

4.726663613.4262796583.500992833.2495227874725747320000.00

Investments 2 56 73 4.87 12.11

25Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Gain/loss

on fair- Accumulat Impairmen

value ed fair- t allowance Purchased Sold in

Item Beginningamount changes in

value for the in the the Other Ending

the changes Reporting Reporting Reporting changes amount

Reporting charged to Period Period

Period equity

Period

in other

equity

instruments

5.

Receivables 352694866.8 2758168 3802765

financing 9 2.26 49.15

Total of the 2263031164 263142478. 500992833. 36623012 4287653 2285140

above 82320000.00.50 21 73 3.31 1.93 051.33

Financial

liabilities 275250.00 275250.00 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 as financial

assets at fair value through other comprehensive income. In the Reporting Period other changes recorded

RMB15294849.67 of cumulative recognized interest.

(2) Other changes in receivables financing increased by RMB27581682.26 in the current period.

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 524122497.12Security deposits for notes performance bondspayments by buyers for pre-sale of properties

Notes receivable 830930917.23In pledge for notes pool undue notes receivable thathave been endorsed or discounted

Receivables financing 7600759.79In pledge for notes pool

Fixed assets 207316221.86

As mortgage and guarantee for related party see

XVI 3. Others in Part XIII

Intangible assets 10263929.82

26Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending carrying value Reason for restriction

Other non-current assets 663.57Frozen funds

Total 1580234989.39 ——

VI Investments Made

1. Total Investment Amount

□Applicable □ Not applicable

Investment amount in the Investment amount in the same

Reporting Period (RMB) period of last year (RMB) Change (%)

156790198.8788163470.0377.84%

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

27Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Unit: RMB

Reason

for

failure

Way of Fixed Industry Input in the Cumulative

Cumulativ

Name of asset of the input as at Fundin Project e return as

to reach

investme Reporting g progres Predicte at the the

Date of Disclosure index

project nt investme investme the period- d return planned

disclosur (if any)

nt or not nt project Period end source s period- e (if any)end progressand

predicte

d return

Announcement on

The Jili Investment in the

Industria Construction of

l Park NationStar

project LED Self- Optoelectronics’

(not Other Yes packagin 136605328. 778400697.31 35 pooled 45.40% N/A

August Jili Industrial

includin g funds 7 2020 Park Project on

g land www.cninfo.com.purchase cn (announcement

) of subsidiaryNationStar

Optoelectronics)

Total -- -- -- 136605328. 778400697.31 35 -- -- -- -- --

4. Financial Investments

(1) Securities Investments

□ Applicable □ Not applicable

28Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Unit: RMB

Gain/loss

on fair- Accumulate Purchas

Securi Security Initial Measurem Beginning value d fair-value

ed in Sold in the Gain/loss Ending Fundi

Security type ty name investment ent carrying changes in changes

the Reporting in Accounti

code cost method value the charged to Reporti Period Reporting

carrying ng

ng Period value

ng title source

Reporting equity

Period Period

Investme

nts in

Domestically/Ove 60118 XiamenBank Co. 15295760 Fair value 32350202 65962292. 23650671 9177362. 38946431 other

Self-

rseas listed stock 7 method equity fundeLtd. 6.83 4.60 25 0.02 40 6.85 instrume d

nts

Investme

nts in

Domestically/Ove 00207 Gotion Self-

rseas listed stock 4 High-tech

46404427. Fair value 36357904 19683429 26448612 24952278 31089055 other

Co. Ltd. 75 method

funde

5.02 1.31 3.71 4.87 1.46 equity

instrume d

nts

Qianli Held-for-Domestically/Ove 60177 Technolo 1306956.1 Fair value 1926438.3 211530.4 2137968.7rseas listed stock 7 method 211530.48

trading

financial Othergy 8 0 8 8 assets

Foshan Investme

branch of nts in

Guangdon Fair value other Self-Other N/A 72432.8g 500000.00 method 500000.00 500000.00 funde6 equity

Developm instrume d

ent Bank nts

ZOTYE Held-for-Domestically/Ove 00098 Fair value trading

rseas listed stock 0 Automobi 423448.92 method 62376.61 -7568.71 -7568.71 54807.90le financial

Other

assets

29Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Gain/loss

on fair- Accumulate Purchas

Securi Security Initial Measurem Beginning value d fair-value

ed in Sold in the Gain/loss Ending Fundi

Security type ty name investment ent carrying changes in changes

the

Reporti Reporting

in carrying Accounti ng

code cost method value the charged to Period Reporting value ng titleng Period sourceReporting equity

Period Period

Hangzhou

Industrial Held-for-

Trust product N/A & 1500000.0 Fair value 1543950.0 1543950.0 trading

Self-

Commerci method 7969.05 financial funde0 0 0

al Trust assets d

Co. Ltd.Total 20309243 69111383 26300054 50099283 25106673 9461726 703047649.68 -- --4.53 5.33 3.73 4.87 .08 4.99

(2) Investments in Derivative Financial Instruments

□ Applicable □ Not applicable

1) Derivative Investments for Hedging Purposes in the Reporting Period

□ Applicable □ Not applicable

Unit: USD’0000

Gain/loss on Accumulated Ending

Initial Beginning fair-value fair-value Purchased in Sold in the Ending investment

Type of derivative investment investment changes in the changes the Reporting Reporting investment amount as % of

amount amount Reporting charged to Period Period amount the Company’s

Period equity ending equity

General forward 300 0 0.54 0 300 300 0 0.00%

General forward 100 0 1.34 0 100 0 100 0.07%

30Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

General forward 650 650 0 0 0 650 0 0.00%

Total 1050 650 1.88 0 400 950 100 0.07%

Major changes in

accounting policies

and specific

accounting principles

adopted for hedges in No

the Reporting Period

compared to the last

reporting period

Actual gain/loss in

the Reporting Period The actual gain stood at USD -2800 in the Reporting Period.Effectiveness of The Company carries out foreign exchange hedging business appropriately according to specific situations which can effectively reduce the

hedging foreign exchange market risk lock in industrial profit of export business and avoid exchange rate risk.Funding source Self-funded

Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of economic changes at home and

Analysis of risks and abroad the foreign exchange hedging business faces market risk to some extent. 2. Foreign currency risk: When the foreign currency trend

control measures greatly deviates from the Company’s judgment of such trend the expenses after locking the exchange rate might exceed that before doing so

associated with resulting in losses to the Company. 3. Internal control risk: Imperfect internal control policies probably trigger risks to the foreign exchange

derivative hedging business as it is highly professional and complex. 4. Trading default risk: If the counterparty of foreign exchange hedging defaults

investments held in by failing to pay hedging earnings to the Company as agreed the actual exchange loss of the Company will not be offset. 5. Collection

Reporting Period forecast risk: Marketing departments forecast collection based on the actual and expected orders of customers. In practice customers may

(including but not adjust such orders. As a result the Company’s collection forecast will not be accurate leading to delivery risks.limited to market Adopted risk control measures: 1. The Company will strengthen the research and analysis of the exchange rate. When the exchange rate

risk liquidity risk fluctuates greatly it will adjust the business strategy in a timely manner to stabilize the export business and avoid exchange losses to the

credit risk utmost. 2. The Company has established the Management System for Foreign Exchange Hedging and majority-owned subsidiary NationStar

operational risk legal Optoelectronics has also formulated the Management System for Forward Forex Settlement and Sale and Forex Option Transactions clearly

risk etc.) 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

31Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 The Company carries out recognition and measurement in accordance with the Accounting Standard for Business Enterprises No. 22—

Reporting Period Recognition and Measurement of Financial Instruments the Accounting Standard for Business Enterprises No. 24—Hedges the Accounting

(fair value analysis Standard for Business Enterprises No. 37—Presentation of Financial Instrument and other applicable regulations. Fair value is arrived at

should include based on the price provided by pricing service providers such as banks or the price obtained. Fair value measurement and recognition are

measurement method carried out on a monthly basis. Changes in the fair value of forward exchange settlement contracts entered into by the Company are mainly

and related attributable to difference arising from exchange rate fluctuations.assumptions and

parameters)

Legal matters

involved (if N/A

applicable)

Disclosure date of

announcement on

board’s approving April 30 2024 & April 23 2025

derivative investment

(if any)

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

32Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(1) General Information about Use of Raised Funds

□ Applicable □ Not applicable

Unit: RMB’0000

Usage

ratio of Cumulative

Cumulative raised Re- re-

Net Used in total purposed Cumulative purposed Purpose and Amountfunds at

Year of Way of Securities Totallisting amount amount of the amount of the end of amount in re- amount Unused

whereabouts being idle

raising raising funds current raised the purposed as % of amount of the for moredate raised theraised (1) period funds used Reporting amount total unused than twoReporting

(2) Period amount amount yearsPeriod

raised

(3)=(2)/(1)

The

Company

had a cash

management

balance of

RMB 599

million

Issuance utilizing

2023 of shares Decemberto specific 4 2023 109455.18 108841.55 7040.14 27168.62 24.96% 24504.84 24504.84 22.51% 82483.16

temporarily

idle raised 0

objects funds and

the

remaining

amount was

deposited in

the special

account for

raised funds.Total -- -- 109455.18 108841.55 7040.14 27168.62 24.96% 24504.84 24504.84 22.51% 82483.16 -- 0

Description of the use of raised funds

In November 2023 the Company raised RMB 1094.5518 million through a share issuance to specific investors. After deducting issuance expenses such as underwriting fees sponsorship fees

audit fees and legal fees totaling RMB 6.1363 million the actual net proceeds amounted to RMB1088.4155 million. As at June 30 2025 the Company had cumulatively utilized RMB

33Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

271.6862 million of the raised funds accounting for 24.96% of the net proceeds.

(2) Promised Use of Raised Funds

□ Applicable □ Not applicable

Unit: RMB’0000

Promised

project Re- Total Accumulati Investme Time

funded purpose promised Adjusted ve nt when the Returns Accumulati Meetin Significa

Financin Securitie with raised total Input in investment progress ve benefits g the

g project s listing funds and Project

d or investme project is derived nt change

nature partiall nt amount

amount the amount at as at the ready for in the recorded as expecteof the Reportin the end of period- to projectname date investment y re- with investme g Period the end its Reportin

at the end of d

Reporting returns feasibilitwith over- purpose raised intended g Period y or not

raised d or not funds nt (1) Reporting (3)=(2)/(1 use Period or not

funds Period (2) )

Promised projects

2023

Issuance FSL’s

of Decemb automation Production

Shares er 4 and and Not 35850.6constructio 36464.27 900.93 4436.26 12.37%

Novemb

er 2026 N/A N/A N/A Notto 2023 digitalizatio 4

Specific n project n

Targets

2023

Issuance

of Decemb FSLHainan Production

Shares er 4 Industrial and Yes 13631.8constructio 25252.91 3106.32 13631.82 100.00% Ended N/A N/A N/A Yesto 2023 Park I 2

Specific n

Targets

2023 Production

Issuance Decemb The smart

of er 4 street lights

and

constructio Yes 9179.52 95.77 0 95.77 100.00% Ended N/A N/A N/A Yes

Shares 2023 project n

to

34Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Specific

Targets

2023

Issuance The vehicle

of Decemb light Production

Shares er 4 module andconstructio Not 24008.8 24008.8 897.59 3564.98 14.85%

May N/A N/A N/A Not

to 2023 production 2027

Specific project n

Targets

2023

Issuance

of Decemb The R&D Research

Shares er 4 center and 14549.6 Novemb

to 2023 constructio developme

Yes 14549.68 2135.3 5439.79 37.39%

8 er 2027

N/A N/A N/A Not

Specific n project nt project

Targets

Subtotal of promised projects -- 109455.1 88136.7 7040.14 27168.62 -- -- N/A N/A -- --

81

Use of over-raised funds

There were no over raised funds.Total -- 109455.1 88136.7 7040.14 27168.62 -- -- N/A N/A -- --

81

1. FSL’s Automation and Digitalization Project: This project aims to procure advanced automated production equipment and supporting facilities and to implement a

Explain the digital and intelligent transformation to establish an intelligent manufacturing system. It was originally scheduled to reach its intended usable state by November 2026.circumstances and However due to the combined impact of a slowdown in domestic macroeconomic growth overseas tariff barriers and declining costs of related hardware and software

reasons for failing to the investment progress of the project has fallen short of expectations.achieve the planned 2. R&D Center Construction Project: On June 18 2024 the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the 9th Supervisory

progress and Committee reviewing and passing the Proposal on Extending the R&D Center Construction Project Time. According to the construction status and implementation

expected returns by 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

item (including the R&D center 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

reason for selecting experimental equipment needs to be customized and the R&D equipment is characterized by small batches and multiple varieties not all equipment has been procured

“N/A” for “Meeting 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&Dthe expected returns center 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.or not”)

On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee and on May 15 2025 the

Company’s 2024 general meeting of shareholders was held during which the Proposal on the Change and Termination of Certain Fundraising Investment Projects was

35Foshan Electrical and Lighting Co. Ltd. Interim Report 2025reviewed and approved. Due to adjustments made to certain R&D topics and supporting equipment during the implementation of the “R&D Center ConstructionProject” the Company extended the investment period of the project by one and a half years to ensure smooth project advancement and the achievement of R&D

objectives. Accordingly the planned date for the project to reach its intended usable state will be postponed to November 2027.

3. Automotive Lighting Module Production Project: On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th

Supervisory Committee and on May 15 2025 the Company’s 2024 general meeting of shareholders was held during which the Proposal on Adjusting the Internal

Investment Structure Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed and approved. Throughout the

implementation of the Automotive Lighting Module Production Project the Company has prioritized project quality and long-term profitability laying a solid

foundation and proceeding with investment in a phased manner. However due to the stringent certification requirements for entry into the automotive lighting supply

chain system and the long lead time for the deployment of high-end customized equipment the current investment progress has fallen behind schedule. Therefore the

Company extended the investment period of the project by two years postponing the date for it to reach its intended usable state to May 2027.

(For details on the delay in the planned progress of the “FSL’s Hainan Industrial Park Phase I” and the “Smart Streetlight Construction Project” please refer to the

section “Particulars about significant change to project feasibility” in this table.)

1. FSL’s Hainan Industrial Park Phase I Project: On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th

Supervisory Committee and on May 15 2025 the Company’s 2024 general meeting of shareholders was held during which the Proposal on the Change and

Termination of Certain Fundraising Investment Projects was reviewed and approved. Due to various factors including the fact that China’s marine industry is still in its

early stages of development the Company’s existing production capacity is sufficient to meet the current and near-future demand of the marine lighting market.Particulars about Therefore the Company intends to terminate the implementation of this project (for further details please refer to the Announcement on the Change and Termination of

significant change to Certain Fundraising Investment Projects disclosed on April 25 2025 on www.cninfo.com.cn).project feasibility 2. Smart streetlight construction project: On April 23 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th

Board of Supervisors at which the Proposal on the Change and Termination of Certain Funded Projects was reviewed and approved. Due to a slowdown in investment

by local governments in municipal infrastructure in recent years the market demand for new infrastructure projects such as smart streetlights has grown at a rate below

expectations resulting in insufficient project orders. Therefore the Company proposes to terminate the implementation of the “Smart Streetlight Construction Project”

(For further details please refer to the Announcement on the Change and Termination of Certain Funded Projects disclosed on April 25 2025 on cninfo.com.cn).

Amount purpose

and use progress of N/A

over-raised funds

Unauthorized change

of the purpose of

raised funds and N/A

misappropriation of

raised funds

Change of Applicable

implementation

location of raised Occurred during the Reporting Period

funds investment

projects

1. On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee during which the

36Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Proposal on Adjusting the Internal Investment Structure Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed and

approved. The FSL’s Automation and Digitalization Project has added “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng District Foshan City” as anew implementation site. Post-adding the project’s implementation sites changed to “39 Zhaoming Avenue Hecheng Subdistrict Gaoming District Foshan City’ and“Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng District Foshan City”

2. .The Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee on April 23 2025 and the 2024 general

meeting of shareholders on May 15 2025 during which the Proposal on the Change and Termination of Certain Fundraising Investment Projects. The R&D Center

Construction Project added “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng District Foshan City” and “54/F The Pinnacle 17 West ZhujiangRoad Tianhe District Guangzhou City” as two new implementation sites. After-adding the project’s implementation sites changed to “39 Zhaoming Avenue HechengSubdistrict Gaoming District Foshan City” “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng District Foshan City” and “54/F The Pinnacle 17West Zhujiang Road Tianhe District Guangzhou City.”

Applicable

Adjustments to the Occurred in the prior year.way of

implementation of

raised funds On June 18 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

investment projects Proposal on Adding Implementation Entities and Special Accounts for Raised Funds to Some Raised Funds Investment Projects and agreed to add FSL ChanchangLighting 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 digitalization 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 Applicable

investments in

promised projects On January 16 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

funded with raised 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

funds and situation of the Company to use the raised funds to replace self-raised funds of RMB87975313.46 used for pre-invested capital projects. Specifically self-raised funds

subsequent swaps of RMB2603975.16 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 N/A

working capital

Surplus amount of

raised funds upon

project N/A

implementation and

the reasons

Purpose and

whereabouts of As at June 30 2025 the total amount of unused proceeds was RMB 824.8316 million of which RMB 225.8316 million was held as bank deposits in designated

37Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

unused raised funds accounts for raised funds and RMB 599 million was invested in cash management using temporarily idle proceeds which had not yet matured or been redeemed.The raised funds unused by the Company would be put into use according to the subsequent progress of the raised funds investment projects.

1. On January 16 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 organized by Fozhao (Hainan) Technology Co. Ltd. (hereinafter referred to as “HainanTechnology”) 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 RMB252529100 and

a loan term of three years.Problems or other 2. On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee during which the

issues arising in the Proposal on Adjusting the Internal Investment Structure Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed and

use and disclosure of approved. In light of the rapid development of information technology and the Company’s actual business needs and in order to enhance the efficiency of fund

raised funds utilization the Company plans to adjust the internal investment structure for equipment upgrades under the “FSL’s automation and digitalization project” and to add a

new project implementation site at “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng District Foshan City.”

3. On April 23 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th Board of Supervisors at which the Proposal

on the Change and Termination of Certain Funded Projects was reviewed and approved. It was agreed that the Company would make the following adjustments to the

“R&D Center Construction Project”: first change certain research topics and equipment investment items; second adjust the internal investment structure of the project;

third extend the project investment period by one and a half years; fourth add two new implementation sites. At the same time the implementation of the FSL Hainan

Industrial Park I Project and the Smart Street Lights Project will be terminated.

(3) Re-purposed Raised Funds

? Applicable□ Not applicable

Unit: RMB’0000

Actual

Total raised accumulative

Corresponding funds to be Actual input investment Investment Time when Returns

Significant

Meeting the change to re-

Financing Way of Re-purposed original invested in in the amount at progress asat the the project is

derived in expected purposed

project name raising project promised the re- Reporting the end of theperiod-end ready for its Reporting returns or projectproject purposed Period the (3)=(2)/(1) intended use Period not feasibility orproject (1) Reporting not

Period (2)

2023 Issuance of

shares to FSLHainanissuance of

shares to specific

Undetermined Industrial Park 11621.09 N/A N/A N/A

specific objects

I

38Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

targets

2023

issuance of Issuance ofshares to The smartshares to specific Undetermined street lights 9083.75 N/A N/A N/Aspecific project

targets objects

2023

issuance of Issuance of The R&D The R&D

shares to shares to center center November

specific specific construction construction

14549.68 2135.3 5439.79 37.39% 2027 N/A N/A Not

targets objects project project

Total -- -- -- 35254.52 2135.3 5439.79 -- -- N/A -- --

1. FSL’s Hainan Industrial Park Phase I Project: On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the

5th meeting of the 10th Supervisory Committee and on May 15 2025 the Company’s 2024 general meeting of shareholders was held during

which the Proposal on the Change and Termination of Certain Fundraising Investment Projects was reviewed and approved. Due to various

factors including the fact that China’s marine industry is still in its early stages of development the Company’s existing production capacity is

sufficient to meet the current and near-future demand of the marine lighting market. Therefore the Company terminated the implementation of

this project (for further details please refer to the Announcement on the Change and Termination of Certain Fundraising Investment Projects

disclosed on April 25 2025 on cninfo.com.cn).

2. Smart streetlight construction project: On April 23 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th

meeting of the 10th Board of Supervisors at which the Proposal on the Change and Termination of Certain Funded Projects was reviewed and

Explain the reasons decision-making approved. Due to a slowdown in investment by local governments in municipal infrastructure in recent years the market demand for new

procedures and information disclosure (by infrastructure projects such as smart streetlights has grown at a rate below expectations resulting in insufficient project orders. Therefore the

project) Company terminated the implementation of the “Smart Streetlight Construction Project” (For further details please refer to the Announcement

on the Change and Termination of Certain Funded Projects disclosed on April 25 2025 on cninfo.com.cn).

3. R&D Center Construction Project: On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting

of the 10th Supervisory Committee and on May 15 2025 the Company’s 2024 general meeting of shareholders was held during which the

Proposal on the Change and Termination of Certain Fundraising Investment Projects was reviewed and approved. In accordance with the

actual construction and investment progress of the project upon prudent research the Company adjusted some implementation contents

including the adjustments to some research topics and equipment investment adjustments to the internal investment structure of the project

extension of the investment timeline of the project. The change neither converted the original fundraising project into a new initiative nor

altered the total investment amount of the original fundraising project (For further details please refer to the Proposal on the Change and

Termination of Certain Fundraising Investment Projects disclosed on April 25 2025 on cninfo.com.cn).Explain the circumstances and reasons for

failing to achieve the planned progress and N/A

expected returns (by project)

39Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Particulars about significant change to the

feasibility of repurposed projects N/A

Note: In the “total raised funds to be invested in the re-purposed project” the total raised funds to be invested in the re-purposed project in correspondence to the

previously promised projects of “FSL Hainan Industrial Park I” and “the smart street lights project” refer to the total amount of raised funds that have not yet

been invested in the corresponding projects as at the date of the shareholders’ general meeting to review the project termination (May 15 2025). The final changed

amount will be based on the actual amount in the newly confirmed fundraising project..VII Sale of Major Assets and Equity Investments

1. Sale of Major Assets

?Applicable□ Not applicable

Whether

the project

has been

implement

Net profit ed as

contributed Proportio Whether planned

by the asset n of net Relationshi Whether

to the listed profit p with the the

all the and on

Principles counterpart ownershi associate schedule. Ifcompany Impact of contribute If it is a d rights it has not

Counterpar Asset( Dat Trade Price from the the sale on d by the

for related- y p of the and been

ty s) to e of (RMB’000 beginning the asset sale

determini party (applicable assets obligatio implement Disclosu Disclosu

be sold sale 0) of the Company to the ng the sale transactio in the case involved ns have ed as re date re index

period to (Note 3) total net price of n of related has been

the date of profit of the asset party fully

been planned

fully the reasons

sale the listed transaction transferres) d transferre and the(RMB’000 company d measures

0) taken by

the

Company

should be

explained

40Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Whether

the project

has been

implement

Net profit ed as

contributed Proportio Relationshi Whether Whether plannedby the asset n of net p with the the all the and onto the listed profit associate schedule. If

company Impact of contribute Principles If it is a counterpart ownershifor y p of the d rights it has not

Counterpar Asset( Dat Trade Price from the the sale on d by the related- and beens) to e of (RMB’000 beginning the asset sale determini party (applicable assets obligatio implement Disclosu Disclosuty be sold sale 0) of the Company to the ng the sale transactio in the case involved ns have ed as re date re index

period to (Note 3) total net price of n of related has been

the date of profit of the asset party fully

been planned

sale the listed transaction transferre

fully the reasons

s) d transferre and the(RMB’000 company d measures

0) taken by

the

Company

should be

explained

The

Company’

s sales of

Some Gotion

shares High-tech’s MarketCentralized of Jun price of

Bidding on Gotion e shares did

Secondary High- 202 24966.89 0.00 not cause 0.00%

Gotion

High-tech Not N/A Yes Yes N/A N/A

Market tech 5 material

Co. impacts on

at the time

of sales

Ltd. businesscontinuity

and

manageme

nt stability

41Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Note: Due to the provisions of the new financial instrument standards implemented by the Company from January 1 2019 the Company will designate its

investments in Gotion High-tech Xiamen Bank etc. as non-trading equity instrument investments measured at fair value with changes in fair value included in other

comprehensive income. The Company's shareholding reduction mentioned in the table above has no impact on its current profit.

2. Sale of Major Equity Investments

□ Applicable□ Not applicable

VIII Major Subsidiaries

□ Applicable □ Not applicable

Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the Company’s net profit:

Unit: RMB

Name Relationship with Registered Operating Operatingthe Company Principal activity capital Total assets Net assets revenue profit Net profit

Foshan

NationStar

Optoelectronics Subsidiary Manufacturing 618477169.00 6102640322.34 3823857527.19 1681244438.51 23064379.12 24571004.38

Co. Ltd.Nanning

Liaowang Auto Subsidiary Manufacturing 35055700.00 2649288973.84 1062626126.71 914845763.09 27011417.53 23766475.75

Lamp Co. Ltd.FSL

Chanchang

Optoelectronics Subsidiary Manufacturing 72782944.00 1381918556.91 447722003.45 746283127.52 83035937.60 70501143.44

Co. Ltd.

42Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Subsidiaries obtained or disposed in the Reporting Period:

□ Applicable □ Not applicable

How the subsidiary was obtained

Name or disposed of in the Reporting Impact on overall operations and

Period performance

FSL (Thailand) Lighting No significant impact on the

Technology Co. Ltd. Newly established Company’s production andperformance

Beijing Airtrust Aviation No significant impact on the

Technology Co. Ltd. Acquired Company’s production andperformance

No significant impact on the

Airstar (Tianjin) Lighting Co. Ltd. Acquired Company’s production and

performance

Information about major majority- and minority-owned subsidiaries:

1. In a major asset restructuring in February 2022 the Company acquired a 21.32% interest in Foshan NationStar

Optoelectronics Co. Ltd. (NationStar) from Rising Holdings Group and its acting-in-concert party. Upon the

conclusion of the transaction the Company eventually holds a 21.48% interest in NationStar and NationStar has

become a majority-owned subsidiary of the Company. The Company has included NationStar in its consolidated

financial statements since Q1 2022.

2. Nanning Liaowang Auto Lamp Co. Ltd. signed an equity agreement with its existing shareholders in July

2021 and acquired Liaowang Auto Lamp through equity acquisition and capital increase and share expansion.

Upon the conclusion of the transaction the Company eventually holds a 53.79% interest in Liaowang Auto Lamp

and Liaowang Auto Lamp has become a majority-owned subsidiary of the Company. The Company has included

Liaowang Auto Lamp in its consolidated financial statements from the date when the Company obtained actual

control of it.

3. FSL Chanchang Optoelectronics Co. Ltd. (renamed on June 19 2018 from “Foshan Chanchang ElectricAppliances (Gaoming) Co. Ltd.”) which is a Sino-foreign joint venture invested and established by the Company

and Prosperity Lamps and Components Ltd had obtained license for business corporation on August 23 2005

through approval by Foreign Trade and Economic Cooperation Bureau of Gaoming District Foshan with

document “MWMY Zi [2005] No. 79”. The Company holds 70% equities of the said company; therefore the said

subsidiary was included into the scope of the consolidated financial statements since the date of foundation. On

August 23 2016 the Company and Prosperity Lamps and Components Ltd signed the equity transfer agreement.The Company purchased 30% equity of Foshan Chanchang Electric Appliances (Gaoming) Co. Ltd. held by

Prosperity Lamps and Components Ltd. After the purchasing the Company held 100% equity of FSL Chanchang

Optoelectronics 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

Current domestic and international macroeconomic conditions face multiple uncertainties. Domestic economic

growth is slowing while rising trade protectionism abroad along with frequent tariff barriers and technical trade

43Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

measures may adversely impact the development of the lighting industry. Particularly as the lighting industry has

entered a phase of stock competition slowing market growth coupled with fierce competition could continue to

put pressure on corporate profit margins.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 healthy

lighting ocean lighting animal and plant lighting. It will also accelerate the introduction of new manufacturing

processes technologies and products to the market for new competitive edges. At the same time by optimizing

marketing 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 competitive

capacity 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 have

an impact on the Company’s production costs. If the price of raw materials continues to rise in the future it may

adversely 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 enhancing

negotiation refining suppliers perfecting supply chain management and promoting alternative materials the

Company 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 experiences

significant appreciation the price competitiveness of overseas sales could be undermined and exchange losses

may 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 settlement

currencies in time intensifying settlement currency management and carrying out foreign exchange hedging

business when the timing is right the Company can relatively lock in exchange rates and minimize the risks

brought 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 become

insolvent due to changes in macroeconomic trends market environments and their business will place the

Company at the risk of non-performing receivables.Countermeasures: In order to reduce the receivable collection risk the Company can constantly optimize the

receivable 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 its

effort to collect receivables and incorporate the collection of receivables into the performance assessment system

for business departments.XI Formulation and Implementation of the Market Value Management System and

Valuation Promotion Plan

Has the Company established a market value management system

□Yes□No

Has the Company disclosed a valuation improvement plan

□Yes□No

44Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

XII Implementation of the “Quality and Earnings Dual Improvement” Action Plan

Indicate whether the Company has disclosed the “Quality and Earnings Dual Improvement” Action Plan.□ Yes□ No

45Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part IV Corporate Governance Environment and Society

I Change of Directors Supervisors and Senior Management

□ Applicable? Not applicable

There were no changes in the directors supervisors and senior management of the Company during the Reporting

Period. For details see the Annual Report 2024.II Interim Dividend Plan

□ Applicable□ Not applicable

The Company has no interim dividend plan either in the form of cash or stock.III Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures

for Employees

□ Applicable? Not applicable

No such cases in the Reporting Period.IV Environmental information disclosure

Indicate by tick mark whether the Company or any of its major subsidiaries is included in the list of enterprises

legally required to disclose environmental information.□ Yes □ No

Number of enterprises included in the list of enterprises legally required

to disclose environmental information (unit) 5

No. Name of enterprise Environmental informationdisclosure report index

1 Foshan Electrical and Lighting List of Key Units of EnvironmentalCo. Ltd. Gaoming Branch Supervision of Foshan in 2025

2 Liuzhou Guige Lighting List of Key Units of EnvironmentalTechnology Co. Ltd. Supervision of Liuzhou in 2025

Department of Ecology and

3 Foshan NationStar Optoelectronics Environment of GuangdongCo. Ltd. Province-Enterprise Environmental

Information Disclosure System

Department of Ecology and

4 Foshan NationStar Semiconductor Environment of GuangdongCo. Ltd. Province-Enterprise Environmental

Information Disclosure System

46Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Guangdong Fenghua Department of Ecology and

5 Semiconductor Technology Co. Environment of Guangdong

Ltd. Province-Enterprise EnvironmentalInformation Disclosure System

V 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 constantly

enhances its protection for the interests of stakeholders in order to create a healthy and beautiful life of light for

customers 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 our

management on information disclosure and investor relations. We treat all our investors fairly and justly ensure

their rights to know about participate in and vote on the significant events of the Company and safeguard the

legal 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 our

employment system improve the compensation packages for our employees and attach importance to talent

cultivation so as to provide opportunities and space for the sustainable development of our employees as well as

realize the common development of the employees and the Company. We also pay attention to the health of our

employees attach importance to production safety and labor protection and improve the working and living

conditions 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 to

customers. We operate honestly and disallow any unfair trade practice against commercial ethics market rules

and the fair competition principle. We also improve our product quality and after-sales services and try to build a

win-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 proprietary

information encourage and push them to continuously improve the quality of their products and services through

creating an environment for open and fair competition among them so as to realize mutual benefits and mutual

development 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 of

its strategy of sustainable development. It implements accountability systems in relation environmental protection

and production safety in strict accordance with the applicable laws and regulations. In addition it is ISO9001-(a

quality management system) IATF16949-(a quality management system) ISO14001-(an environment

management 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 and

Information Technology the Company was certified as one of the second batch of National Demonstration Entity

of Green Factory.

6. Public relations and welfare

The Company fully implements the social responsibility strategy. By carrying out a series of specific actions and

projects it actively gives back to society and promotes sustainable development. The Company focuses on

“industrial development for agriculture technological benefits for agriculture and green support for agriculture”

47Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

as its main task. Through measures such as industrial assistance paired assistance and consumption assistance

the Company has upgraded from simple donations to systematic support. It is exploring new models for rural

revitalization and contributing to the development of livable business-friendly and beautiful rural areas. During

the Reporting Period responding to the “6*30” initiative to support rural revitalization the Company organized

employee donations over RMB40000. It launched the “Love for Reading Nurturing the Future” book donation

campaign making a targeted donation of 121 books to Hengbi Primary School in Hengbi Town Wuhua County

to help supplement rural educational resources. Through consumption assistance for industrial products the

Company purchased assistance products worth RMB 460000 converting its procurement into a practical effort to

support rural revitalization promoting the development of the green supply chain and increasing farmers’

incomes. Furthermore the Company organized the 2025 voluntary blood donation event successfully collecting

35200 milliliters of whole blood demonstrating the volunteer spirit of “dedication friendship mutual assistanceand progress” through practical actions and spreading positive energy within society.

48Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part V Significant Events

I Commitments of the Company’s De Facto Controller Shareholders Related Parties and

Acquirers as well as the Company Itself and Other Entities Fulfilled in the Reporting

Period or Ongoing at the Period-End

? Applicable□ Not applicable

Commitment Type of Details of Date of Term of

Reason Promisor commitment commitment commitment Fulfillmentmaking commitment

Electronics

Group commits

to completing

the current

share

acquisition plan

within the

implementation

period. During

the acquisition

period and the

statutory period

Notification the Electronics

Letter Group will not Within six

Other Electronics Regarding the reduce its months starting

Commitments Group Increase in holdings in

November 18 from Expired

Foshan Foshan 2024 November 20

Lighting Lighting shares 2024

Shares and will strictly

comply with

relevant

regulations. It

will not engage

in insider

trading trading

shares during

sensitive

periods or

short-term

trading

activities.Whether the

commitments

were timely Yes

performed

Specific reasons

for failing to N/A

fulfill

49Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

commitments on

time and plans

for next step

II Occupation of the Company’s Capital by the Controlling Shareholder or any of its

Related 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 Auditor

Are 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 Regarding

the Independent Auditor’s “Modified Opinion” on the Financial Statements of the

Reporting 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

50Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Basic information Amount involved Whether there Lawsuit

Lawsuit Execution of

on lawsuit (RMB’0000) are accrued (arbitration)

(arbitration) lawsuit

(arbitration) liabilities progress results and (arbitration)

Date of disclosure Disclosure index

influences judgment

97 litigation

matters that did 56 cases are No significant

not meet major 36600.61 No currently under

litigation trial; 41 cases

influence on the N/A N/A

have been closed. Companystandards

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 Facto Controller

□ Applicable □ Not applicable

In the Reporting Period the Company and its controlling shareholder and de facto controller were not involved in any unsatisfied court judgments large-amount

overdue liabilities or the like.XI Major Related-party Transactions

1. Continuing Related-party Transactions

□Applicable □ Not applicable

As % of Obtainable

Relationship Transaction Transaction total value ApprovedType of Specific Pricing transaction Over the

market price

Related party with the price amount of all same- approved Method of for same- Disclosure Disclosure index

Company transaction transaction principle (RMB’0000) (RMB’0000) type line(RMB’0000) line or not

settlement type date

transactions transactions(RMB’0000)

51Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Transaction Transaction total value Approved Over the market price

Related party with the Type of Specific Pricingtransaction transaction principle price amount of all same-

transaction Method of for same- Disclosure

line approved settlement type date Disclosure indexCompany (RMB’0000) (RMB’0000) type (RMB’0000) line or nottransactions transactions(RMB’0000)

Purchasing Bank

Guangdong products and transfers or

Rising Holdings Actual receiving Receiving

Group Co. Ltd. controller labor service labor service

Market price 356.40 356.40 1.59% bank 356.40

from related acceptance

party notes

Purchasing

Guangdong Under same products and

Bank

Xintao receiving Purchase of transfers or

Microelectronics actualcontroller labor service materials

Market price 204.22 204.22 0.14% bank 204.22

Co. Ltd. from related acceptance

party notes

Purchasing

Shenzhen products and Bank

Yuepeng Under same receiving Receiving transfers or

Construction actual labor service labor service Market price 33.31 33.31 1.34% bank 33.31

Co. Ltd. controller from related acceptance

party 5850 Not notes February 72025 www.cninfo.com.cn

Purchasing

products and BankPrimatronix Under same transfers or

Nanho actual receiving Receiving

Technology Ltd. controller labor service labor service

Market price 21.67 21.67 0.10% bank 21.67

from related acceptance

party notes

Purchasing

Shenzhen Bank

Yuedin Precise Under same

products and

receiving Purchase of transfers or

Machinery Co. actual labor service materials Market price 19.18 19.18 0.02% bank 19.18

Ltd. controller from related acceptance

party notes

Guangdong Under same Purchasing Receiving Bank

Rising actual products and Market price 8.16 8.16 0.04% transfers or 8.16

Hydrogen controller receiving

labor service bank

labor service acceptance

52Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Approved market price

Related party with the Type of Specific Pricing

Transaction Transaction total value Over the

transaction transaction principle price amount of all same-

transaction approved Method of for same- Disclosure Disclosure index

Company (RMB’0000) (RMB’0000) type line line or not settlement type date

transactions (RMB’0000) transactions(RMB’0000)

Energy Co. Ltd. from related notes

party

Zhuhai Purchasing

Dongjiang products and Bank

Environmental Under sameactual receiving Receiving

transfers or

Protection Market price 8.13 8.13 0.04% bank 8.13

Technology Co. controller

labor service labor service

from related acceptance

Ltd. party notes

Purchasing

Shenzhen products and Bank

Yuedin Precise Under sameactual receiving Purchase of

transfers or

Machinery Co. controller labor service materials

Market price 6.50 6.50 0.03% bank 6.50

Ltd. from related acceptance

party notes

Guangdong Purchasing

Electronics Under same products and

Bank

transfers or

Information actual receiving Receivinglabor service labor service Market price 6.02 6.02 0.03% bank 6.02Industry Group controller from related acceptanceLtd. party notes

Purchasing

Guangdong Under same products and

Bank

transfers or

Fenghua New actual receiving Receivinglabor service labor service Market price 5.74 5.74 0.03% bank 5.74Energy Co. Ltd. controller from related acceptance

party notes

Shenzhen Purchasing

Longgang Bank

Dongjiang Under same

products and

receiving Receiving transfers or

Industrial Waste actual labor service labor service Market price 2.21 2.21 0.01% bank 2.21

Treatment Co. controller from related acceptance

Ltd. party notes

Zhuhai Doumen Under same Purchasing Receiving Market price 0.79 0.79 0.00% Bank 0.79

53Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Type of Specific Pricing Transaction Transaction total value

Approved Over the market price

Related party with the transaction transaction principle price amount of all same-

transaction approved Method of for same- Disclosure Disclosure index

Company (RMB’0000) (RMB’0000) type line line or not settlement type date

transactions (RMB’0000) transactions(RMB’0000)

District actual products and labor service transfers or

Yongxingsheng controller receiving bank

Environmental labor service acceptance

Industry Waste from related notes

Recovery and party

Comprehensive

Treatment Co.Ltd.Purchasing

Foshan Fulong Bank

Environmental Under same

products and

actual receiving Receiving

transfers or

Technology Co. controller labor service labor service

Market price 0.30 0.30 0.00% bank 0.30

Ltd. from related acceptance

party notes

Jiangmen Purchasing Bank

Dongjiang Under same products and

Environmental actual receiving Receiving

transfers or

labor service labor service Market price 0.22 0.22 0.00% bank 0.22Company controller from related acceptanceLimited party notes

Guangdong Purchasing Bank

Electronics Under same products and transfers or

Information actual receiving Purchase of

Industry Group controller labor service materials

Market price 0.19 0.19 0.00% bank 0.19

Ltd. from related

acceptance

party notes

Guangzhou Purchasing

Shengfeng Under same products and

Bank

Catering actual receiving Receiving

transfers or

Management labor service labor service Market price 393.60 393.60 1.76% bank 393.60

Service Co. controller from related acceptance1500 Not notes February 7Ltd. party 2025 www.cninfo.com.cn

Guangdong Under same Purchasing Receiving BankRising Urban products and labor service Market price 58.26 58.26 0.26% transfers or 58.26

Services Co. actual receiving bank

54Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Type of Specific Pricing Transaction Transaction total value

Approved market price

Related party with the price amount of all same- transaction

Over the

transaction transaction principle line approved

Method of for same- Disclosure

Company (RMB’0000) (RMB’0000) type line or not settlement type date

Disclosure index

transactions (RMB’0000) transactions(RMB’0000)

Ltd. (formerly controller labor service acceptance

known as from related notes

Guangdong party

Heshun Property

Management

Co. Ltd.)

Guangdong Purchasing Purchasing Bank

Rising Cultural Under same products and products and transfers or

Industry actual receiving Receiving receiving

Development controller labor service labor service labor service

10.97 10.97 0.05% bank 10.97

from related from related acceptanceCo. Ltd. party party notes

Guangdong Purchasing

Rising Under same products and

Bank

transfers or

Commercial actual receiving Receiving

Development controller labor service labor service

Market price 6.91 6.91 0.03% bank 6.91

acceptance

Co. Ltd. from relatedparty notes

Purchasing Bank

Ramada Pearl Under same products and transfers or

Hotel actual receiving Receivinglabor service labor service Market price 3.57 3.57 0.02% bank 3.57Guangzhou controller from related acceptance

party notes

Guangdong Purchasing

Fenghua Under same products and

Bank

Advanced transfers or

Technology actual

receiving Purchase of February 7

labor service materials Market price 376.26 376.26 0.26% 2410 Not bank 376.26 2025 www.cninfo.com.cn

(Holding) Co. controller from related acceptance

Ltd. party notes

Guangzhou

Haixinsha Under same

Purchasing

products and Receiving Bank February 7

Industrial Co. actualcontroller receiving labor service

Market price 137.38 137.38 4.31% 1700 Not transfers or 137.38 2025 www.cninfo.com.cn

Ltd. labor service bank

from related acceptance

55Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Approved market price

Related party with the Type of Specific Pricing

Transaction Transaction total value Over the

transaction transaction principle price amount of all same-

transaction approved Method of for same- Disclosure Disclosure index

Company (RMB’0000) (RMB’0000) type line settlement type date

transactions (RMB’0000)

line or not transactions

(RMB’0000)

party notes

Purchasing

Guangdong products and Bank

Huajian Under same receiving Receiving transfers or

Enterprise actual labor service labor service Market price 135.80 135.80 0.61% bank 135.80

Group Co. Ltd. controller from related acceptance

party notes

Guangzhou Purchasingproducts and BankHuajian Under same transfers or

Business actual receiving Receiving

Development controller labor service labor service

Market price 11.20 11.20 0.05% bank 11.20

Co. Ltd. from related

acceptance

party notes

PROSPERITY Shareholder

Purchasing Bank

LAMPS & that holds

products and

over 5% receiving Purchase of

transfers or

COMPONENTS labor service materials Market price 4.06 4.06 0.00% 100 Not bank 4.06

February 7 www.cninfo.com.cn

LIMITED shares of the acceptance

2025

Company from relatedparty notes

Nanning Enterprise Purchasingsignificantly products and BankRuixiang affected by receiving Receiving transfers orIndustrial related labor service labor service Market price 0.80 0.80 0.00% Not bank 0.80Investment Co. natural from related acceptanceLtd. person party notes

Guangdong Selling

Fenghua products and Bank

Advanced Under same providing Selling transfers oractual February 7Technology controller labor service products

Market price 472.82 472.82 0.11% 2000 Not bank 472.82 2025 www.cninfo.com.cn

(Holding) Co. to related acceptance

Ltd. party notes

PROSPERITY Shareholder Selling Selling Market price 440.53 440.53 0.10% 1500 Not Bank 440.53 February 7 www.cninfo.com.cn

LAMPS & that holds products and products transfers or 2025

56Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Approved market price

Related party with the Type of Specific Pricing

Transaction Transaction total value Over the

transaction transaction principle price amount of all same-

transaction approved Method of for same- Disclosure Disclosure index

Company (RMB’0000) (RMB’0000) type line line or not settlement type date

transactions (RMB’0000) transactions(RMB’0000)

COMPONENTS over 5% providing bank

LIMITED shares of the labor service acceptance

Company to related notes

party

Enterprise Selling Bank

Traxon controlled products and transfers or

Technologies by related providing Sale of

Limited natural labor service products

Market price 229.89 229.89 0.05% bank 229.89

acceptance

person to relatedparty notes

Selling

Primatronix Under same products and

Bank

Nanho actual providing Selling

transfers or

Technology Ltd. controller labor service products

Market price 97.31 97.31 0.02% bank 97.31

to related acceptance

party notes

Selling

Guangdong Under same products and

Bank

Xintao providing Providing transfers or

Microelectronics actual labor service labor service Market price 74.61 74.61 0.02% bank 74.61

Co. Ltd. controller to related acceptance

party notes

1100 Not February 72025 www.cninfo.com.cn

Selling

Guangdong Under same products and

Bank

Xintao providing Selling transfers or

Microelectronics actual labor service products Market price 41.16 41.16 0.01% bank 41.16

Co. Ltd. controller to related acceptance

party notes

Guangdong Sellingproducts and BankZhuyuan Under same transfers or

Construction actual providing Selling Market price 3.12 3.12 0.00% bank 3.12

Engineering controller labor service products acceptance

Co. Ltd. to relatedparty notes

57Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As % of Obtainable

Relationship Approved market price

Related party with the Type of Specific Pricing

Transaction Transaction total value

price amount of all same- transaction

Over the Method of for same- Disclosure

Company transaction transaction principle line

approved Disclosure index

(RMB’0000) (RMB’0000) type (RMB’0000) line or not

settlement type date

transactions transactions(RMB’0000)

Selling

Guangdong Bank

Zhongren Group Under same

products and

providing Selling transfers or

Construction actualcontroller labor service products

Market price 0.30 0.30 0.00% bank 0.30

Co. Ltd to related acceptance

party notes

Selling

Primatronix Under same products and

Bank

providing Providing transfers orNanho actual labor service labor service Market price 2.22 2.22 0.00% bank 2.22Technology Ltd. controller to related acceptance

party notes

Total -- -- 3173.81 -- 16160 -- -- -- -- --

Large-amount sales return in detail N/A

In June 2025 the Company forecasted the aggregate amount of its routine connected transactions with related parties including Fenghua Advanced

Give the actual situation in the Reporting Period (if any) Technology and its majority-owned subsidiaries Guangsheng Real Estate and its majority-owned subsidiaries Guangsheng Group and other subsidiaries

where an estimate had been made for the total value of Huajian Group and its majority-owned subsidiaries and Youchang Company and its majority-owned subsidiaries. In terms of related party procurements

continuing related-party transactions by type to occur in the the actual transaction amount for H1 2025 was RMB 18.1185 million representing 15.67% of the forecasted amount for the entire year of 2025; in terms

Reporting Period of related party sales the actual transaction amount for H1 2025 was RMB 13.6196 million accounting for 25.89% of the estimated total for the year

2025.

Reason for any significant difference between the transaction

price and the market reference price (if applicable) N/A

58Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 applicable

Non-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 applicable

Deposit business:

Actual amount

Daily Beginning Ending

Related Relationshi maximum Interes

party p limits t rate

balance Total Total balance

(RMB’0000 range (RMB’0000 deposited in withdrawn (RMB’0000

) ) (RMB’0000 (RMB’0000 )

))

Guangdon Controlled

g Rising by the same 0.20%-

Finance controlling 150000 148216.53 292987.84 316098.18 125106.192.40%

Co. Ltd. shareholder

Loan business:

Actual amount

Related Relationshi Loan limit Interes

Beginning Ending

party p (RMB’0000 t rate

balance Total balance

(RMB’0000 Total loans) range repayment (RMB’0000) (RMB’0000

) (RMB’0000

)

)

Guangdon Controlled

g Rising by the same 2.40%-

Finance controlling 5000.00 2.75% 2000.00 2000.00

Co. Ltd. shareholder

Credit or other financial business:

59Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Related party Relationship Type of business Total amount Actual amount(RMB’0000) (RMB’0000)

Guangdong Rising Controlled by the

Finance Co. Ltd. same controlling Credit granting 200000 0shareholder

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 or

any other financial business with any related party.

60Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

7. Other Major Related-Party Transactions

□ Applicable □ Not applicable

1. Details of major infrastructure related-party transactions

Transa

ction

Relationship Pricin

Related party with the Type of transaction Specific g

amoun

t Method of

Company transaction princi (RMB settlement

Disclosure date Disclosure index

ple ’0000

)

Guangdong ZhongnanUnder samePurchasing products and receivingReceiving Marke 4917. Bank transfers orJuly 9 2021 August 17

Construction Co. Ltd. actualcontroller labor service from related party

labor t price 94 bank acceptanceservice notes 2021 and March 12 2022

www.cninfo.com.cn

Guangdong ZhongrenUnder same Receiving Bank transfers or

Group Construction Co.actual Purchasing products and receiving Marke 1834.labor service from related party labor t price 86 bank acceptanceDecember 1 2020

www.cninfo.com.cn (announcement of

Ltd. controller service notes subsidiary NationStar Optoelectronics)

2. To further optimize its capital structure and enhance the efficiency and effectiveness of capital operations the Company’s majority-owned subsidiary Foshan

NationStar Optoelectronics Co. Ltd. (hereinafter referred to as “NationStar Optoelectronics”) has acquired the subscription rights corresponding to an RMB11.2

million fund share in the Guangdong Rising Baijianwan High-Quality Development Industry Investment Fund Partnership (Limited Partnership) held by Guangdong

Rising Capital Investment Co. Ltd. at zero consideration. For more details please refer to the Announcement on the Acquisition of Fund Subscription Contribution

Shares by the Majority-Owned Subsidiary and Related Party Transactions disclosed on May 22 2025 on the www.cninfo.com.cn.

61Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Index to the current announcement about the said related-party transaction disclosed:

Title of announcement Disclosure date Disclosure website

Announcement on a Related-Party www.cninfo.com.cn

Transaction Due to a Call for December 1 2020 (announcement of subsidiary

Public Bids NationStar Optoelectronics)

Announcement on a Related-Party

Transaction Due to a Call for July 9 2021 www.cninfo.com.cn

Public Bids

Announcement on a Related-Party

Transaction Due to a Call for August 17 2021 www.cninfo.com.cn

Public Bids

Announcement on a Related-Party

Transaction Due to a Call for March 12 2022 www.cninfo.com.cn

Public Bids

Announcement on the Acquisition

of Fund Subscription Contribution

Shares by the Majority-Owned May 22 2025 www.cninfo.com.cn

Subsidiary and Related Party

Transactions

XII Major Contracts and Execution Thereof

1. Entrustment Contracting and Leases

(1) Entrustment

? Applicable□ Not applicable

Explanation of the entrustment

On June 14 2022 and June 30 2022 the Company held the 32nd meeting of the 9th Board of Directors and the

2nd Extraordinary General Meeting of Shareholders of 2022 respectively. The meetings reviewed and approved

the Proposal for the Public Bid of the Operation Leasing and Property Management Services for Kelian

Building agreeing to publicly bid out the operation leasing and property management services for Kelian

Building an investment property to be outsourced to a third-party operator. The Company’s majority-ownedsubsidiary Foshan Keliang New Energy Industry Technology Co. Ltd. (hereinafter referred to as “FoshanKelian”) was authorized to manage this process. For more details please refer to the Announcement on the Public

Tender of Kelian Building Operation Leasing and Property Management Services by the Majority-Owned

Subsidiary disclosed on June 15 2022 on the www.cninfo.com.cn. After the public bidding process Guangdong

Huajian Enterprise Group Co. Ltd. (hereinafter referred to as “Huajian Group”) was selected as the winning

bidder in October 2022. For more information please refer to the Announcement on a Related-Party Transaction

Due to a Call for Public Bids disclosed on October 11 2022 on the www.cninfo.com.cn. In April 2023 Foshan

Kelian signed the Kelian Building Operation and Leasing Service Contract with Huajian Group entrusting

Huajian Group with the operation and leasing of 70340.04 square meters of property including the industrial

(R&D center) space in Building 1 commercial (service apartments) commercial (shops) and part of the

underground parking lot. The operation and leasing service period is ten years starting from January 1 2025.Projects that resulted in profits or losses exceeding 10% of the Company’s total profit for the Reporting Period.

62Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

□ Applicable□ Not applicable

There were no trust projects during the Reporting Period that resulted in gains or losses exceeding 10% of the

Company’s total profits for the Reporting Period.

(2) Contracting

□ Applicable□ Not applicable

No such cases in the Reporting Period.

(3) Leases

□ Applicable □ Not applicable

Notes to leases

The significant lease matters of the Company during the reporting period are as follows:

63Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Name of

lessor Name of lessee Status of leased assets Lease amount

Date of commencement of Date of expiry of

lease leas Purpose

Rent-free

period: Two

months; from

November 10

2024 to

September 9

Guangdong 2026 the

Rising 54/F Guangdong Rising International monthly rent isHoldings FSL Tower RMB September 10 2024 September 9 2027 OfficeGroup Co. 293144.02;

Ltd. from September

10 2026 to

September 9

2027 the

monthly rent is

RMB

307801.22.

Guangdong

Rising NationStar RMB

Holdings Optoelectronic Self-numbered 01 50/F Guangdong 1296000.00/ye September 10 2024 September 9 2027 Office

Group Co. s Rising International Tower ar

Ltd.From December

15 2024 to

Suzhou December 14

Xiangcheng Liaowang

High-tech Auto Lamp 5# Workshop 100 Wulingqiao Road

2027 the annual

Industrial (Suzhou) Co. Huangdai Town Xiangcheng District

rent is RMB December 15 2024 December 14 2029 Office &

Suzhou 5093326.08; workshopDevelopment Ltd. from December

Co. Ltd. 15 2027 to

December 14

2029 the annual

64Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

rent is RMB

4138327.44. In

the first three

years certain

conditions can

allow for a

reduction or

exemption of

the annual rent.In the fourth

and fifth years

of the lease

meeting specific

conditions can

lead to a

reduction or

exemption of

six months’ rent

for that year.Guangdong 1/F & 2/F Phase II Workshop 10

Fenghua Guangdong Nanxiang Second Road Guangzhou

Semiconduct Xintao Science City Huangpu District RMB Research &

or Microelectroni Guangzhou covering a total area of 91070.00/mont March 1 2025 April 30 2025 manufacturin

Technology cs Co. Ltd. 2602 square meters and situated on the h g

Co. Ltd. northern side

Guangdong 1/F & 2/F Phase II Workshop 10 RMB

Fenghua Guangdong Nanxiang Second Road Guangzhou 91070.00/mont

Semiconduct Xintao Science City Huangpu District h with an Research &

or Microelectroni Guangzhou covering a total area of increase of 5% May 1 2025 April 30 2025 manufacturin

Technology cs Co. Ltd. 2602 square meters and situated on the every three g

Co. Ltd. northern side years

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.

65Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

2. Major Guarantees

□ Applicable □ Not applicable

Unit: RMB’0000

Guarantees provided by the Company and its subsidiaries for external parties (exclusive of those for subsidiaries)

Disclosure date of Actual Actual Counter Having Guarantee for

Obligor the guarantee line Line of Type of Collateralguarantee occurrence guarantee guarantee (if any) guarantee (if Term of guarantee expired or a related partyannouncement date amount any) not or not

Total approved line for such guarantees at Total actual balance of such

the end of the Reporting Period (A3) guarantees at the end of theReporting Period (A4)

Guarantees provided by the Company as the parent for its subsidiaries

Disclosure date of

Obligor the guarantee line Line of

Actual Actual Counter Having Guarantee for

guarantee occurrence guarantee

Type of Collateral guarantee (if Term of guarantee expired or a related party

announcement date amount guarantee (if any) any) not or not

Total approved line for such guarantees at Total actual balance of such

the end of the Reporting Period (B3) guarantees at the end of theReporting Period (B4)

Guarantees provided between subsidiaries

Disclosure date of Line of Actual ActualObligor the guarantee line occurrence guarantee Type of Collateral

Counter Having Guarantee for

guarantee guarantee (if any) guarantee (if Term of guarantee expired or a related partyannouncement date amount any) not or not

Nanning

Liaowang Auto

Lamp Co. Ltd. March 2 2023 April 25 2022 to

Liuzhou Guige April 19 2024 6350 June 21 3063.49 Mortgaged Yes None December 31 Not Not

Fuxuan April 25 2025 2023 2025

Technology Co.Ltd. Liuzhou

Guige Lighting

66Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Technology Co.Ltd.Chongqing

Guinuo Lighting March 2 2023April 19 2024 7000 February

May 21 2024 to

Technology Co. 10 2023 3870.05 Mortgaged Yes None May 20 2025 Not Not

Ltd. April 25 2025 (Note 1)

Nanning

Liaowang Auto

Lamp Co. Ltd.Liuzhou Guige

Fuxuan March 2 2023 March 24 April 24 2022 to

Technology Co. April 19 2024 14300 2023 3501.5 Mortgaged Yes None December 31 Not Not

Ltd. Liuzhou April 25 2025 2025

Guige Lighting

Technology Co.Ltd.Zhejiang Hule

Electrical

Equipment April 25 2025 2000 August 21 August 21 2023 to2023 1360.62 Mortgaged Yes None August 20 2028 Not NotManufacturing

Co. Ltd.Total approved line for such guarantees Total actual amount of such

in the Reporting Period (C1) 42300 guarantees in the Reporting 11795.66Period (C2)

Total approved line for such guarantees at Total actual balance of such

the end of the Reporting Period (C3) 42300 guarantees at the end of the 11795.66Reporting Period (C4)

Total guarantee amount (total of the three kinds of guarantees above)

Total guarantee line approved in the Total actual guarantee

Reporting Period (A1+B1+C1) 42300 amount in the Reporting 11795.66Period (A2+B2+C2)

Total approved guarantee line at the end Total actual guarantee

of the Reporting Period (A3+B3+C3) 42300 11795.66balance at the end of the

67Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Reporting Period

(A4+B4+C4)

Total actual guarantee amount (A4+B4+C4) as % of the Company’s

net assets 1.76%

Compound guarantees:

None.Note 1: Due to the main debt not yet being due the Company is currently in the process of renewing the guarantee contract.Note 2: Hule Electrical was included in the consolidated scope on August 1 2024 and the announcement regarding the guarantee line was disclosed on April 25

2025.

Other notes: Chongqing Guinuo Lighting Technology Co. Ltd. (referred to as “Chongqing Guinuo”) Liuzhou Guige Foreshine Technology Co. Ltd. (referred to as

“Liuzhou Foreshine”) and Liuzhou Guige Lighting Technology Co. Ltd. (referred to as “Liuzhou Lighting”) are all wholly-owned subsidiaries of Nanning

Liaowang Auto Lamp Co. Ltd. (referred to as “Liaowang Auto Lamp”).As at June 30 2025 guarantees between Nanning Liaowang and its subsidiaries and collaterals are set out in “3. Other” under “XVI Commitments andContingencies” in Part VIII of this Report.

3. Cash Entrusted for Wealth Management

□ Applicable □ Not applicable

Unit: RMB’0000

Unrecovered overdue Provision for impairmentType Funding source Amount Undue amount amount on unrecovered overdueamount

Bank financial products Self-owned funds 7500 0 0 0

Others Raised funds 59900 59900 0 0

Others Self-owned funds 79131.79 79131.79 0 0

68Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Total 146531.79 139031.79 0 0

High-risk wealth management transactions with a significant single amount or with low security and low liquidity:

□ Applicable □ Not applicable

Unit: RMB’0000

Prescri

Type of Annual ActualSourc Use ized Expe gain/l Receipt/pa Allowa bed Plan for Index to

Trustee Type of

wealth

manage Princip e of

Begin Endin of Determin yield cted nce for proced transaction

trustee al princi ning ation of yield

oss in yment of impair ure more summary and

ment pal date

g date princi

pal yield

rate for (if Repor such ment execut transacti

product referen any) ting gain/loss

other information

ce Period (if any) ed or

on or not (if any)

not

Incompli For details please

Guangzho ance refer to the

u Branch Large Self-certifica owne Januar Januar

Subject with Company’s

of China Bank 10000 y 6 y 6 Other to actual

163.6

3.30% 990 To be prescrib announcements

Everbright te of d 2023 2026 investme 4 recovered

Yes ed disclosed on on

Bank deposit funds nt period approval http://www.cninfoprocedur .com.cn/:

e Announcement

No. 2023-007 on

Incompli Entrustment of

Foshan ance

Some Idle Funds

Branch of Large Self- Subject with

for Wealth

Bank of Bank certifica owne

Augus Augus

5000 t 31 t 31 Other to actual 2.90% 435 72.9 To be prescrib

Management;

te of d investme recovered Yes ed AnnouncementCommunic 2023 2026 No. 2024-005 on

ations deposit funds nt period approvalprocedur Using Partial Idle

e Raised Funds forCash

Management;

Incompli Announcement

Guangzho ance No. 2024-017 on

u Branch Large Self- Nove Nove Subject

of China Bank certifica 10000 owne mber mber Other to actual

146.1 To be with Entrustment of

te of d 3 3 investme 2.90% 870 9 recovered

Yes prescrib Some Idle Funds

Everbright deposit funds 2023 2026 nt period ed for WealthBank approval Management;

procedur Announcement

69Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Prescri

Type of Annual Actual

wealth Sourc Begin Use Determin ized

Expe

cted gain/l Receipt/pa

Allowa bed

nce for proced Plan for

Index to

Trustee Type of manage Princip e of ning Endin of yield

transaction

trustee al princi g date princi ation of rate for yield

oss in yment of more

ment date yield (if Repor such

impair ure transacti summary and

product pal pal referen any) ting gain/loss

ment execut other information

ce Period (if any) ed or

on or not (if any)

not

e No. 2024-047 on

the Maturity

Foshan Incompli

Redemption and

Continued Cash

Hujing ance

Sub- Large Self- Dece Dece Subject with

Management of

branch of Bank certifica 15000 owne mber mber to actual

1327 219.4 Part of Idle

te of d 1 1 Other investme 2.95%

To be Yes prescrib Raised Funds;

Bank of .5 3 recovered ed

GuangZho deposit funds 2023 2026 nt period approval

Announcement

u procedur

No. 2025-003 on

e Using Partial IdleRaised Funds for

Cash

Foshan Incompli Management; and

Hujing ance Announcement

Sub- Large Subject with No. 2025-010 on

branch of Bank certifica

Raise Februa Februa Entrustment of

te of 21200 d ry 5 ry 5 Other

to actual 2.75% 1749 289.1 To be Yes prescrib

Bank of funds 2024 2027 investme recovered ed Some Idle Funds

GuangZho deposit nt period approval for Wealth

u procedur Management.e

Incompli

Guangzho ance

u Branch Large Raise Februa Februa Subject with

of China Bank certifica 5500 d ry 5 ry 5 Other to actual To be prescrib

Everbright te of funds 2024 2027 investme

2.60% 429 70.91 recovered Yes ed

Bank deposit nt period approvalprocedur

e

Incompli

Foshan Large Raise Februa Februa Subject anceBranch of certifica to actual 1115 184.3 To be with

Huaxia Bank te of 14300 d ry 5 ry 5 Otherfunds 2024 2027 investme

2.60%.4 7 recovered

Yes

prescrib

Bank deposit nt period ed

approval

70Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Prescri

Type of Annual Expe Actual Allowa bed Index to

Type of wealth

Sourc Begin Use ized gain/l Receipt/pa Plan for

Trustee manage Princip e of ning Endin of

Determin yield cted oss in yment of nce for proced more transaction

trustee ment al princi g date princi

ation of yield impair ure summary and

pal date pal yield

rate for Repor such transacti

product referen

(if

any) ting gain/loss

ment execut on or not other information

ce Period (if any) ed or (if any)not

procedur

e

Incompli

Foshan ance

Branch of Large Raise Februa Februa Subject with

China Bank certifica d ry 5 ry 5 Other to actual 105.7te of 8200 investme 2.60% 639.6

To be

recovered Yes

prescrib

Merchants funds 2024 2027 2 ed

Bank deposit nt period approvalprocedur

e

Incompli

ance

Foshan Large Self- March March Subject withBranch of certifica owne to actual To be prescrib

Huaxia Bank te of 15000 d 8 8 Other 2.60% 1170 193.42024 2027 investme recovered

Yes ed

Bank deposit funds nt period approval

procedur

e

Repay

the

principal Incompli

Foshan and ance

Branch of Large Self- with

China Bank certifica

March March interest

3500 owne 29 29 Other when due 2.60% 273 45.13 To be Yes prescrib

Merchants te of ddeposit funds 2024 2027 and

recovered ed

Bank subject to approval

actual procedur

investme e

nt period

Foshan Bank Large 3000 Self- April April Other Subject 2.60% 234 38.68 Yes Incompli

Branch of certifica owne 30 30 to actual To be ance

71Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Annual Actual PrescriType of Sourc Use ized Expe gain/l Receipt/pa Allowa bedwealth Begin Determin cted nce for proced Plan for

Index to

Trustee Type of Princip e of Endin of yield oss in yment of more

transaction

trustee manage al princi ning g date princi ation of rate for yield Repor such impair ure summary andment pal date pal yield referen (if ting gain/loss ment execut

transacti

product any) (if any) ed or on or not

other information

ce Period (if any)not

China te of d 2024 2027 investme recovered with

Merchants deposit funds nt period prescrib

Bank ed

approval

procedur

e

Incompli

ance

Bank of Term Raise Februa Augus

Subject with

Hainan Bank deposit 10700 d ry 5 t 5 Other

to actual

investme 2.00% 107 86.79

To be prescrib

funds 2025 2025 recovered

Yes ed

nt period approval

procedur

e

Incompli

Haikou ance

Guorui Self- Subject with

Branch of Term owne Octob Octob to actual To be prescrib

China Bank deposit 100 d er 18 er 18 Other2024 2025 investme

1.10% 1.1 0.52 recovered Yes ed

Merchants funds nt period approval

Bank procedur

e

Other Incompli

professi ance

onal Self- Subject with

Rising wealth Term owne April July 7 to actual To be prescrib

Finance manage deposit 531.79 d 7 Other 1.15% 1.53 1.422025 2025 investme recovered

Yes ed

ment funds nt period approval

instituti procedur

on e

72Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Prescri

Type of Annual Actual

wealth Sourc

Expe

Begin Use ized gain/l Receipt/pa

Allowa bed Plan for Index to

Trustee Type of manage Princip e of ning Endin of

Determin yield cted oss in yment of nce for proced more transaction

trustee ment al princi date g date princi

ation of

yield rate for

yield Repor such impair ure summary and

pal pal referen (if ting gain/loss ment execut

transacti other information

product ce any)

on or not

Period (if any) ed or (if any)not

Other Incompli

professi ance

onal Self- Subject with

Rising wealth Term owne April Octob2000 3 er 2 Other to actual To be prescribFinance manage deposit d investme 2.00% 20 19.22 recovered Yes ed

ment funds 2025 2025 nt period approval

instituti procedur

on e

Foshan Incompli

Hujing ance

Sub- Self- Januar July Subject with

branch of Bank Termdeposit 5000

owne

d y 24 23 Other

to actual

investme 1.75% 43.75 37.88

To be Yes prescrib

Bank of recovered ed

Guangzho funds

2025 2025 nt period approval

u procedure

Other Incompli

professi ance

onal Self- Januar July Subject withRising wealth Term 10000 owne y 24 23 Other to actualFinance manage deposit d investme 2.00% 100 86.58

To be

recovered Yes

prescrib

ment funds 2025 2025

ed

nt period approval

instituti procedur

on e

Total 139031.79 -- -- -- -- --

95051761.--------.8888

73Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 applicable

1. Subscription for A-shares issued by the majority-owned subsidiary NationStar Optoelectronics in 2025 to

specific subjects

The Company’s majority-owned subsidiary Foshan NationStar Optoelectronics Co. Ltd. (stock abbreviation:

NationStar Optoelectronics stock code: 002449) plans to issue no more than 185543150 A-shares (inclusive) to

specific subjects raising a total of no more than RMB981323900 (inclusive). The raised funds will be used for

the “Ultra-High Definition Display Mini/Micro LED and Display Module Production Project” “OptoelectronicSensing and Smart Health Devices Industrialization Project” “Smart Home Display and Mini Backlight ModuleProject” “Smart Automotive Components and Applications Project” “NationStar Optoelectronics R&DLaboratory Project” and “Supplementing Working Capital.” The Company plans to use its own funds (excluding

the raised funds) to subscribe to the A-shares issued by NationStar Optoelectronics to specific subjects with an

investment amount of RMB116 million. The final number of shares subscribed will be determined based on

Nationstar Optoelectronics’ actual issue price. The Company will sign a Share Subscription Agreement with

conditions for effectiveness and issue related commitments. For more details please refer to the Announcement on

Participating in the Subscription for A-shares Issued by the Majority-Owned Subsidiary NationStar

Optoelectronics to Specific Entities in 2025 disclosed by the Company on July 11 2025 on the

www.cninfo.com.cn.XIV Significant Events of Subsidiaries

□ Applicable □ Not applicable

1. Expropriation of land and above-ground housing of Nanjing Fozhao

The Company held the 24th Meeting of the Ninth Board of Directors on December 15 2021 where the Proposal

on Expropriation of Land and Above-ground Housing of the Wholly-owned Subsidiary Nanjing Fozhao Lighting

Equipment Manufacturing Co. Ltd. was deliberated and adopted. The Board of Directors agreed that Nanjing

Lishui District People’s Government expropriates the land use rights and above-land housing of Nanjing Fozhao

Lighting Equipment Manufacturing Co. Ltd. (hereinafter referred to as “Nanjing Fozhao”) a wholly-owned

subsidiary of the Company at a compensation amount of RMB183855895.00 and Nanjing Fozhao signed an

expropriation and compensation agreement with Lishui County House Dismantling Moving & Resettling

Development Co. Ltd. the implementing unit of the housing expropriation. In December 2021 Nanjing Fozhao

received 30% of the compensation that is RMB55.16 million and the land use right certificate and house

ownership certificate of the assets involved have been cancelled. As at January 7 2025 Lishui District

Demolition and Resettlement Co. Ltd. of Nanjing had taken possession of all land and above-ground buildings of

Nanjing Fozhao. As at the disclosure date of this report both parties are in negotiation and implementation

regarding the performance of the contract and the payment of the remaining compensation. After the demolition

work is completed Nanjing Fozhao plans to carry out liquidation and cancellation.

2. NationStar Optoelectronics’ plan to issue A-shares to specific subjects

To seize industry development opportunities optimize its product structure increase its technological reserves

enhance its R&D capabilities and further strengthen its core competitiveness and sustainable development

capacity NationStar Optoelectronics plans to issue no more than 185543150 A-shares (inclusive) to specific

74Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

subjects. The total amount of raised funds will not exceed RMB981323900 (inclusive) which will be used for

the “Ultra-High Definition Display Mini/Micro LED and Display Module Production Project” “OptoelectronicSensing and Smart Health Devices Industrialization Project” “Smart Home Display and Mini Backlight ModuleProject” “Smart Automotive Components and Applications Project” “NationStar Optoelectronics R&DLaboratory Project” and “Supplementing Working Capital.” For more details please refer to the 2025 Plan for

Issuing A-shares to Specific Subjects by Foshan NationStar Optoelectronics Co. Ltd. and other announcements

disclosed by NationStar Optoelectronics on July 11 2025 on the www.cninfo.com.cn.

75Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part VI Share Changes and Shareholder Information

I Share Changes

1. Share Changes

Unit: share

Before Increase/decrease in the Reporting Period (+/-) After

Shares as

Shares as dividend

Shares Percentage (%) New dividend convertedissues converted from Other Subtotal Shares Percentage (%)

from profit capital

reserves

1. Restricted shares 57295457 3.70% -46796039 -46796039 10499418 0.68%

1.1 Shares held by

state 0 0.00% 0 0 0 0.00%

1.2 Shares held by 46695896

state-owned legal 3.02% -46695895 -46695895 1 0.00%

persons

1.3 Shares held by

other domestic 1671929 0.11% -100144 -100144 1571785 0.10%

investors

Among which:

Shares held by 1338434 0.09% 0 0 1338434 0.09%

domestic legal

76Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

persons

Shares held by

domestic natural 333495 0.02% -100144 -100144 233351 0.02%

persons

1.4 Shares held by 8927632

foreign investors 0.58% 0 0 8927632 0.58%

Among which:

Shares held by

foreign legal 0 0.00% 0 0 0 0.00%

persons

Shares held by

foreign natural 8927632 0.58% 0 0 8927632 0.58%

persons

2. Unrestricted

shares 1491482773 96.30% 33796039 33796039 1525278812 99.32%

2.1 RMB-

denominated 1196737167 77.27% 33796039 33796039 1230533206 80.12%

ordinary shares

2.2 Domestically

listed foreign shares 294745606 19.03% 0 0 294745606 19.19%

2.3 Overseas listed

foreign shares 0 0.00% 0 0 0 0.00%

2.4 Other 0 0.00% 0 0 0 0.00%

3. Total shares 1548778230 100.00% -13000000 -13000000 1535778230 100.00%

77Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 Lighting

Co. Ltd. for the Issue of Shares to Specific Objects (ZJXK [2023] No. 1974) issued by the CSRC the Company

issued 186783583 RMB-denominated ordinary shares (A shares) to 13 specific objects including Rising

Holdings Group the Company’s de facto controller and such shares were listed on the Shenzhen Stock Exchange

on December 4 2023. On June 4 2025 the 46695895 restricted shares subscribed by Rising Holdings Group in

this issue were relieved. For details please refer to the Indicative Announcement on the Trading on the Market of

Restricted Shares Issued to Specific Objects That Have Been Relieved disclosed on May 29 2025 on

http://www.cninfo.com.cn.

2. The Company’s former supervisors Ye Zhenghong and Lin Qing after departure due to expiration of term had

restrictions lifted on 100144 restricted shares upon the lapse of six months in accordance with relevant

regulations.

3. The Company held the 3rd meeting of the 10th Board of Directors the 3rd meeting of the 10th Board of

Supervisors and the 3rd extraordinary general meeting of shareholders on November 29 2024 and December 16

2024 respectively. The meetings approved the Proposal on Canceling Repurchase Shares and Reducing

Registered Capital. In view of the Company’s termination of the 2023 Restricted Stock Incentive Plan and the

impending expiration of the shares originally reserved for the equity incentive plan the Company agreed to cancel

13 million A-shares stored in the repurchase special securities account and correspondingly reduce the Company’s

registered capital. On January 10 2025 the cancellation of the Company’s share repurchase was completed.Following this cancellation the total share capital of the Company has been changed from 1548778230 shares to

1535778230 shares. For details please refer to the Announcement on Completion of Share Cancellation and

Share Capital Change disclosed on January 14 2025 on the www.cninfo.com.cn.Approval of share changes:

□ Applicable □ Not applicable

1. During the Reporting Period the 46695895 shares subscribed by Guangsheng Holdings Group in the

Company’s 2023 issuance were released from sale restrictions and converted into unrestricted shares with the

approval of the Shenzhen Stock Exchange and China Securities Depository and Clearing Corporation Limited.

2. During the Reporting Period the cancellation of 13000000 A-shares repurchased through the Company’s

dedicated securities account and the corresponding reduction of registered capital were reviewed and approved by

the 3rd Meeting of the 10th Board of Directors the 3rd Meeting of the 10th Supervisory Committee and the 3rd

Extraordinary General Meeting of Shareholders of 2024.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 the

Company’s ordinary shareholders and other financial indicators of the prior year and the prior accounting period

respectively:

□Applicable□ Not applicable

During the Reporting Period the cancellation of 13 million A-shares from the repurchase special securities

account resulted in the reduction of total share capital impacting the basic earnings per share diluted earnings per

share and net assets per share attributable to ordinary shareholders of the Company for the most recent fiscal year

and the most recent reporting period as follows:

78Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

2024 H1 2025

Item

Based on original Based on new share Based on new share

share capital capital capital

Basic earnings per share (RMB/share) 0.2905 0.2905 0.0749

Diluted earnings per share

(RMB/share) 0.2881 0.2905 0.0749

Net assets attributable to shareholders

(RMB/share) 4.2808 4.2808 4.3743

Other information that the Company considers necessary or is required by the securities regulator to be disclosed:

□Applicable□ Not applicable

79Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

2. Changes in Restricted Shares

□ Applicable □ Not applicable

Unit: share

Name of the Restricted shares Restricted shares Restricted shares Restricted sharesamount at the relieved of the increased of the amount at the Restricted reasons Restricted sharesshareholders period-begin period period period-end relieved date

Relief of restricted A

Guangdong Rising shares subscribed

Holdings Group Co. 46695895 46695895 0 0 which were issuedby the Company to June 4 2025Ltd. specific subjects in

2023

Restricted sale

within six months Relief of restricted

Ye Zhenghong 77561 77561 0 0 after departure of

shares in accordance

directors with rules on

supervisors and restricted shares for

senior management senior management

Restricted sale

within six months Relief of restricted

after departure of shares in accordanceLin Qing 22583 22583 0 0 directors with rules on

supervisors and restricted shares for

senior management senior management

Total 46796039 46796039 0 0 -- --

II. Issuance and Listing of Securities

□Applicable□ Not applicable

80Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

III. Total Number of Shareholders and Their Shareholdings

Unit: share

Total number of ordinary Total number of preference shareholders with

shareholders at the period-end 95998 resumed voting rights at the period-end (if any) 0(see Note 8)

Shareholding of ordinary shareholders holding more than 5% shares or the top 10 of ordinary shareholders (exclusive of shares lent in refinancing)

Shares in pledge marked or

Name of Nature of Shareholding Total ordinary Increase/decrease Restricted Non-restricted frozen

shareholder shareholder percentage shares held at in the Reporting ordinary ordinarythe period-end Period shares held shares held

Status Shares

Hongkong Wah

Shing Holding Foreign

Company Limited corporation

12.85% 197338980 0 0 197338980 N/A 0

Prosperity Lamps

& Components Foreigncorporation 9.57% 146934857 0 0 146934857 N/A 0Limited

Guangdong

Electronics

Information State-owned

Industry Group corporation

9.35% 143623846 11429600.00 0 143623846 N/A 0

Ltd.Guangdong Rising

Holdings Group State-ownedcorporation 8.45% 129826793 0 0 129826793 N/A 0Co. Ltd.Central Huijin State-owned

Asset corporation 2.16% 33161800 0 0 33161800 N/A 0

Management Co.

81Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Ltd.Guozheng

International Foreign

Securities (Hong corporation 2.07% 31793798 -3348803.00 0 31793798 0

Kong) Co. Ltd.Rising Investment

Development Foreign

Limited corporation

1.66% 25482252 0 0 25482252 N/A 0

Zhang Shaowu Domesticindividual 1.11% 17000000 0 0 17000000 N/A 0

Zhuang Jianyi Foreignindividual 0.78% 11903509 0 8927632 2975877 N/A 0

China Merchants

Securities (HK) Foreigncorporation 0.59% 9008991 241100.00 0 9008991 0Co. Limited

Strategic investors or general

corporations becoming top-ten

shareholders due to placing of new Naught

shares (if any) (see Note 3)

Among the top 10 shareholders Hongkong Wah Shing Holding Company Limited Guangdong Rising Holdings Group Co.Related or acting-in-concert parties Ltd. Guangdong Electronics Information Industry Group Ltd. and Rising Investment Development Limited are acting-in-

among the shareholders above concert parties; and Prosperity Lamps & Components Limited and Zhuang Jianyi are acting-in-concert parties. Apart fromthat 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 Naught

rights

82Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Special account for share

repurchases (if any) among the top Naught

10 shareholders (see note 11)

Top 10 unrestricted ordinary shareholders (exclusive of shares lent in refinancing and executive lock-up shares)

Type of shares

Name of shareholder Unrestricted ordinary shares at the period-end

Type Shares

RMB-

denominated 188496430

ordinary stock

Hongkong Wah Shing Holding

Company Limited 197338980

Domestically

listed foreign 8842550

stock

Prosperity Lamps & Components RMB-

Limited 146934857 denominated 146934857ordinary stock

Guangdong Electronics Information RMB-

Industry Group Ltd. 143623846 denominated 143623846ordinary stock

Guangdong Rising Holdings Group RMB-

Co. Ltd. 129826793 denominated 129826793ordinary stock

Central Huijin Asset Management RMB-

Co. Ltd. 33161800 denominated 33161800ordinary stock

Guozheng International Securities 31793798 Domestically 31793798

83Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(Hong Kong) Co. Ltd. listed foreign

stock

Rising Investment Development Domestically

Limited 25482252 listed foreign 25482252stock

RMB-

Zhang Shaowu 17000000 denominated 17000000

ordinary stock

China Merchants Securities (HK) Domestically

Co. Limited 9008991 listed foreign 9008991stock

Hong Kong Securities Clearing RMB-

Company Limited 8312988 denominated 8312988ordinary stock

Related or acting-in-concert parties

among the top 10 unrestricted Among the top 10 unrestricted ordinary shareholders Hongkong Wah Shing Holding Company Limited Guangdong Rising

ordinary shareholders as well as Holdings Group Co. Ltd. Guangdong Electronics Information Industry Group Ltd. and Rising Investment Development

between the top 10 unrestricted Limited are acting-in-concert parties; Apart from that it is unknown whether there is among the top 10 shareholders any

ordinary shareholders and the top 10 other related parties or acting-in-concert parties as defined in the Administrative Measures for the Acquisition of Listed

ordinary shareholders Companies.Top 10 ordinary shareholders

involved in securities margin trading None

(if any) (see note 4)

5% or greater shareholders top 10 shareholders and Top 10 unrestricted shareholders involved in refinancing shares lending

□Applicable□ Not applicable

Changes in top 10 shareholders and top 10 unrestricted shareholders due to refinancing shares lending/return compared with the prior period

□Applicable□ Not applicable

84Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Indicate by tick mark whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the Company conducted any promissory

repo during the Reporting Period.□Yes□ No

No such cases in the Reporting Period.

85Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 Reporting

Period. See the Annual Report 2024 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.VI Preference Shares

□Applicable□ Not applicable

No preference shares in the Reporting Period.

86Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part VII Bonds

□Applicable□ Not applicable

87Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Part VIII Financial Statements

I 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.June 30 2025

Unit: RMB

Item Ending balance Beginning balance

Current assets:

Monetary assets 3084419399.18 3209127437.31

Settlement reserve

Interbank loans granted

Held-for-trading financial assets 2288376.68 43649820.47

Derivative financial assets

Notes receivable 792038054.34 997281070.21

Accounts receivable 2243390191.30 2125667291.96

Accounts receivable financing 380276549.15 352694866.89

Prepayments 32710901.40 24419779.12

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

88Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

reserve

Other receivables 69553723.47 70524265.25

Including: Interest receivable

Dividends receivable

Financial assets purchased under

resale agreements

Inventories 2025757449.08 2025499361.38

Including: Data resources

Contract assets 1126681.30 1690021.95

Assets held for sale 17147339.84 17147339.84

Current portion of non-current

assets

Other current assets 414826910.56 261284776.85

Total current assets 9063535576.30 9128986031.23

Non-current assets:

Loans and advances to customers

Investments in debt obligations

Investments in other debt

obligations 1155317713.39 1140022863.72

Long-term receivables

Long-term equity investments 180947314.66 180300594.89

Investments in other equity

instruments 747257412.11 726663613.42

Other non-current financial assets

Investment property 827883993.63 793487046.02

Fixed assets 3572275761.68 3646594206.04

89Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Construction in progress 293945488.06 263601705.89

Productive living assets

Oil and gas assets

Right-of-use assets 18139960.72 22342999.34

Intangible assets 383721802.95 388587348.99

Including: Data resources

Development costs

Including: Data resources

Goodwill 279564092.85 279438540.78

Long-term prepaid expense 253617342.85 253024495.82

Deferred income tax assets 141555140.03 135948224.91

Other non-current assets 255160466.10 200765785.59

Total non-current assets 8109386489.03 8030777425.41

Total assets 17172922065.33 17159763456.64

Current liabilities:

Short-term borrowings 199599173.96 307141147.49

Borrowings from the central bank

Interbank loans obtained

Held-for-trading financial

liabilities 275250.00

Derivative financial liabilities

Notes payable 1781207077.08 1930784817.62

Accounts payable 2765954401.30 2781965096.70

Advances from customers 13633630.14 13531474.15

90Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Contract liabilities 142244278.82 119506301.48

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 176048047.84 214651088.46

Taxes payable 78673132.01 107085160.39

Other payables 669335888.63 495717050.97

Including: Interest payable

Dividends payable 188359258.07

Handling charges and commissions

payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

liabilities 154950261.52 120574788.81

Other current liabilities 394759280.65 377156212.40

Total current liabilities 6376405171.95 6468388388.47

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 131440187.61 222581930.54

Bonds payable

91Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Including: Preferred shares

Perpetual bonds

Lease liabilities 11380772.63 15023993.11

Long-term payables

Long-term employee benefits

payable

Provisions 26914403.37 27430683.82

Deferred income 91488890.41 73739179.94

Deferred income tax liabilities 189304175.41 185921269.29

Other non-current liabilities 175649.83 177917.63

Total non-current liabilities 450704079.26 524874974.33

Total liabilities 6827109251.21 6993263362.80

Owners’ equity:

Share capital 1535778230.00 1548778230.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 843517955.90 914336325.66

Less: Treasury stock 82165144.15

Other comprehensive income 425383074.84 383429155.02

Specific reserve 5487071.02 4782061.20

Surplus reserves 167285701.79 150097522.97

General reserve

Retained earnings 3740440128.62 3655046154.57

92Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Total equity attributable to owners

of the Company as the parent 6717892162.17 6574304305.27

Non-controlling interests 3627920651.95 3592195788.57

Total owners’ equity 10345812814.12 10166500093.84

Total liabilities and owners’ equity 17172922065.33 17159763456.64

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

2. Balance Sheet of the Company as the Parent

Unit: RMB

Item Ending balance Beginning balance

Current assets:

Monetary assets 1227301560.14 1260985441.29

Held-for-trading financial assets 95600.00

Derivative financial assets

Notes receivable 60849619.93 71832245.04

Accounts receivable 785383196.43 745257268.31

Accounts receivable financing 29742336.71 67526522.26

Prepayments 11827478.34 71078813.72

Other receivables 1161580974.30 944184445.88

Including: Interest receivable

Dividends receivable 4733110.26

Inventories 246162081.25 268069616.21

Including: Data resources

Contract assets 1126681.30 1690021.95

93Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Assets held for sale

Current portion of non-current

assets

Other current assets 156754438.06 861413.93

Total current assets 3680823966.46 3431485788.59

Non-current assets:

Investments in debt obligations

Investments in other debt

obligations 1061827379.53 1047759858.61

Long-term receivables

Long-term equity investments 2482240506.32 2434177186.55

Investments in other equity

instruments 700854868.31 687581069.62

Other non-current financial assets

Investment property 196570234.20 202079386.31

Fixed assets 583618398.55 599351996.15

Construction in progress 7054078.30 5884955.59

Productive living assets

Oil and gas assets

Right-of-use assets 11329050.69 8720969.67

Intangible assets 58583470.90 57347999.70

Including: Data resources

Development costs

Including: Data resources

Goodwill

94Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Long-term prepaid expense 30209636.40 35546452.07

Deferred income tax assets 39740384.34 38910990.65

Other non-current assets 186159759.10 120611200.89

Total non-current assets 5358187766.64 5237972065.81

Total assets 9039011733.10 8669457854.40

Current liabilities:

Short-term borrowings 14556611.51

Held-for-trading financial

liabilities 275250.00

Derivative financial liabilities

Notes payable 1016255068.69 864782508.32

Accounts payable 962461446.94 860893918.87

Advances from customers 13367850.30 13367850.30

Contract liabilities 75701497.82 58018288.88

Employee benefits payable 53763682.59 57145931.55

Taxes payable 43430264.94 75527406.17

Other payables 499445543.51 445875922.06

Including: Interest payable

Dividends payable 184293387.60

Liabilities directly associated with

assets held for sale

Current portion of non-current

liabilities 7831175.53 3581230.44

Other current liabilities 53231986.52 50682086.68

Total current liabilities 2740045128.35 2430150393.27

95Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 3956954.17 5516409.11

Long-term payables

Long-term employee benefits

payable

Provisions 2110312.84

Deferred income

Deferred income tax liabilities 75985122.66 68096992.10

Other non-current liabilities

Total non-current liabilities 79942076.83 75723714.05

Total liabilities 2819987205.18 2505874107.32

Owners’ equity:

Share capital 1535778230.00 1548778230.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 839893397.29 909058541.44

Less: Treasury stock 82165144.15

Other comprehensive income 425971708.97 383570431.32

Specific reserve 3194742.64 3170252.81

96Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending balance Beginning balance

Surplus reserves 398589771.03 381401592.21

Retained earnings 3015596677.99 3019769843.45

Total owners’ equity 6219024527.92 6163583747.08

Total liabilities and owners’ equity 9039011733.10 8669457854.40

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

3. Consolidated Income Statement

Unit: RMB

Item H1 2025 H1 2024

1. Revenue 4385731119.78 4784545767.42

Including: Operating revenue 4385731119.78 4784545767.42

Interest income

Insurance premium income

Handling charge and commission

income

2. Costs and expenses 4257961593.80 4531278513.54

Including: Cost of sales 3565320556.68 3870251108.01

Interest expense

Handling charge and commission

expense

Surrenders

Net insurance claims paid

Net amount provided as insurance

contract reserve

Expenditure on policy dividends

97Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

Reinsurance premium expense

Taxes and surcharges 35195442.18 37916939.23

Selling expense 182892072.03 167217797.90

Administrative expense 224001579.55 226332962.51

R&D expense 267669599.53 260165950.63

Finance costs -17117656.17 -30606244.74

Including: Interest expense 8116483.14 11047212.70

Interest income 20148088.69 25938447.85

Add: Other income 45245132.45 60151413.19

Return on investment (“-” for loss) 27447075.84 38017499.24

Including: Share of profit or loss of

joint ventures and associates 646719.77 1444720.72

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) 345894.65 -601447.40

Credit impairment loss (“-” for

loss) -12101495.69 -38270808.58

Asset impairment loss (“-” for loss) -22424871.33 -36958804.89

Asset disposal income (“-” for

loss) -64693.00 -99108.79

3. Operating profit (“-” for loss) 166216568.90 275505996.65

Add: Non-operating income 2113315.35 3054859.55

98Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

Less: Non-operating expense 2087195.60 486217.43

4. Profit before tax (“-” for loss) 166242688.65 278074638.77

Less: Income tax expense 18318812.92 24632382.12

5. Net profit (“-” for net loss) 147923875.73 253442256.65

5.1 By operating continuity

5.1.1 Net profit from continuing

operations (“-” for net loss) 147923875.73 253442256.65

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 114993752.24 192229182.38

the parent (“-” for net loss)

5.2.2 Net profit attributable to non-

controlling interests (“-” for net 32930123.49 61213074.27

loss)

6. Other comprehensive income

net of tax 213491772.64 -22766075.54

Attributable to owners of the

Company as the parent 213835708.05 -22203388.92

6.1 Items that will not be

reclassified to profit or loss 214283065.88 -21548515.71

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 214283065.88 -21548515.71

instruments

6.1.4 Changes in the fair value

99Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

arising from changes in own credit

risk

6.1.5 Other

6.2 Items that will be reclassified

to profit or loss -447357.83 -654873.21

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- -447357.83 -654873.21

denominated financial statements

6.2.7 Other

Attributable to non-controlling

interests -343935.41 -562686.62

7. Total comprehensive income 361415648.37 230676181.11

Attributable to owners of the

Company as the parent 328829460.29 170025793.46

Attributable to non-controlling

interests 32586188.08 60650387.65

8. Earnings per share

8.1 Basic earnings per share 0.0749 0.1252

8.2 Diluted earnings per share 0.0748 0.1241

100Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Where business combinations under common control occurred in the current period the net profit achieved by the

acquirees before the combinations was RMB0.00 with the amount for the same period of last year being

RMB0.00.Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

4. Income Statement of the Company as the Parent

Unit: RMB

Item H1 2025 H1 2024

1. Operating revenue 1375713664.69 1799801338.92

Less: Cost of sales 1098937232.29 1378551377.80

Taxes and surcharges 13565054.39 15272851.85

Selling expense 124554920.28 110943993.00

Administrative expense 78778907.88 98157531.70

R&D expense 63700067.52 83461134.06

Finance costs -5528642.24 -18473106.96

Including: Interest expense 860302.39 205821.60

Interest income 5633071.27 8056174.38

Add: Other income 3932905.05 11207995.85

Return on investment (“-” for loss) 31566338.46 38136678.31

Including: Share of profit or loss of

joint ventures and associates 646719.77 1444720.72

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) 134700.00 99400.00

Credit impairment loss (“-” for

loss) -3137238.29 -22899921.83

101Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

Asset impairment loss (“-” for loss) -8828838.84 -5911919.35

Asset disposal income (“-” for

loss)

2. Operating profit (“-” for loss) 25373990.95 152519790.45

Add: Non-operating income 26638.49 1706418.89

Less: Non-operating expense 524656.29 127113.54

3. Profit before tax (“-” for loss) 24875973.15 154099095.80

Less: Income tax expense -550639.58 18488977.50

4. Net profit (“-” for net loss) 25426612.73 135610118.30

4.1 Net profit from continuing

operations (“-” for net loss) 25426612.73 135610118.30

4.2 Net profit from discontinued

operations (“-” for net loss)

5. Other comprehensive income

net of tax 214283065.88 -21548515.71

5.1 Items that will not be

reclassified to profit or loss 214283065.88 -21548515.71

5.1.1 Changes caused by

remeasurements on defined benefit

schemes

5.1.2 Other comprehensive income

that will not be reclassified to

profit or loss under the equity

method

5.1.3 Changes in the fair value of

investments in other equity 214283065.88 -21548515.71

instruments

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

102Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

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 239709678.61 114061602.59

7. Earnings per share

7.1 Basic earnings per share

7.2 Diluted earnings per share

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

5. Consolidated Cash Flow Statement

Unit: RMB

Item H1 2025 H1 2024

1. Cash flows from operating

activities:

Proceeds from sale of commodities

and rendering of services 4100249556.88 4381995484.08

103Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

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 88415257.94 82383727.52

Cash generated from other

operating activities 98470018.95 119388419.41

Subtotal of cash generated from

operating activities 4287134833.77 4583767631.01

Payments for commodities and

services 3072000160.70 3124222860.48

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

104Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

Net increase in interbank loans

granted

Interest handling charges and

commissions paid

Policy dividends paid

Cash paid to and for employees 793037980.68 731015486.26

Taxes paid 197243157.16 151177949.87

Cash used in other operating

activities 215008522.28 192758289.79

Subtotal of cash used in operating

activities 4277289820.82 4199174586.40

Net cash generated from/used in

operating activities 9845012.95 384593044.61

2. Cash flows from investing

activities:

Proceeds from disinvestment 386722784.87 305000000.00

Return on investment 12193550.27 24056243.57

Net proceeds from the disposal of

fixed assets intangible assets and 43414.00 22544055.06

other long-lived assets

Net proceeds from the disposal of

subsidiaries and other business

units

Cash generated from other

investing activities 23042757.16

Subtotal of cash generated from

investing activities 422002506.30 351600298.63

Payments for the acquisition of

fixed assets intangible assets and 188617109.18 159583095.03

other long-lived assets

Payments for investments 252320000.00 1024000000.00

Net increase in pledged loans

105Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

granted

Net payments for the acquisition of

subsidiaries and other business

units

Cash used in other investing

activities

Subtotal of cash used in investing

activities 440937109.18 1183583095.03

Net cash generated from/used in

investing activities -18934602.88 -831982796.40

3. Cash flows from financing

activities:

Capital contributions received

Including: Capital contributions by

non-controlling interests to

subsidiaries

Borrowings raised 63768004.07 200111329.57

Cash generated from other

financing activities 35675972.28 7224809.91

Subtotal of cash generated from

financing activities 99443976.35 207336139.48

Repayment of borrowings 184157032.76 136959822.56

Interest and dividends paid 30690680.79 39360714.14

Including: Dividends paid by

subsidiaries to non-controlling 24282863.70 29139436.44

interests

Cash used in other financing

activities 16484020.64 11501309.43

Subtotal of cash used in financing

activities 231331734.19 187821846.13

Net cash generated from/used in

financing activities -131887757.84 19514293.35

4. Effect of foreign exchange rates 2424112.08 14380245.23

106Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

changes on cash and cash

equivalents

5. Net increase in cash and cash

equivalents -138553235.69 -413495213.21

Add: Cash and cash equivalents

beginning of the period 2684382020.41 3101252943.88

6. Cash and cash equivalents end

of the period 2545828784.72 2687757730.67

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

6. Cash Flow Statement of the Company as the Parent

Unit: RMB

Item H1 2025 H1 2024

1. Cash flows from operating

activities:

Proceeds from sale of commodities

and rendering of services 1309774743.22 1714147588.24

Tax rebates 43232841.35 37731938.65

Cash generated from other

operating activities 18841629.90 39430747.84

Subtotal of cash generated from

operating activities 1371849214.47 1791310274.73

Payments for commodities and

services 1062624948.98 1212273623.36

Cash paid to and for employees 199120202.97 231944514.55

Taxes paid 93662045.51 59269827.89

Cash used in other operating

activities 93658109.42 68770731.65

Subtotal of cash used in operating

activities 1449065306.88 1572258697.45

Net cash generated from/used in -77216092.41 219051577.28

107Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

operating activities

2. Cash flows from investing

activities:

Proceeds from disinvestment 249522784.87

Return on investment 12328693.07 24016123.90

Net proceeds from the disposal of

fixed assets intangible assets and 22433746.58

other long-lived assets

Net proceeds from the disposal of

subsidiaries and other business

units

Cash generated from other

investing activities 215850.00 35000000.00

Subtotal of cash generated from

investing activities 262067327.94 81449870.48

Payments for the acquisition of

fixed assets intangible assets and 70343058.99 27169498.35

other long-lived assets

Payments for investments 197416600.00 714920000.00

Net payments for the acquisition of

subsidiaries and other business

units

Cash used in other investing

activities 178883363.61

Subtotal of cash used in investing

activities 267759658.99 920972861.96

Net cash generated from/used in

investing activities -5692331.05 -839522991.48

3. Cash flows from financing

activities:

Capital contributions received

Borrowings raised 14556611.51

Cash generated from other

108Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item H1 2025 H1 2024

financing activities

Subtotal of cash generated from

financing activities 14556611.51

Repayment of borrowings

Interest and dividends paid

Cash used in other financing

activities

Subtotal of cash used in financing

activities

Net cash generated from/used in

financing activities 14556611.51

4. Effect of foreign exchange rates

changes on cash and cash 237020.05 9378014.06

equivalents

5. Net increase in cash and cash

equivalents -68114791.90 -611093400.14

Add: Cash and cash equivalents

beginning of the period 1084153666.22 1610082668.66

6. Cash and cash equivalents end

of the period 1016038874.32 998989268.52

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

109Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

7. Consolidated Statements of Changes in Owners’ Equity

H1 2025

Unit: RMB

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

1.

Balance

as at the 15487782 9143363 821651 3834291 478206 1500975 36550461 65743043 35921957 10166500

end of the 30.00 25.66 44.15 55.02 1.20 22.97 54.57 05.27 88.57 093.84

period of

prior year

Add:

Adjustme

nt for

change in

accountin

g policy

Adjustme

nt for

correction

of

previous

error

Other

adjustmen

110Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital

capital reserves Treasury

comprehe Specific Surplus ral Retained Oth

nsive reserve reserves reser earnings er Subtotal

interests equity

Prefer Perpet stock

red ual Oth income ve

shares bonds er

ts

2.

Balance

as at the

beginning 15487782 9143363 821651 3834291 478206 1500975 36550461 65743043 35921957 10166500

of the 30.00 25.66 44.15 55.02 1.20 22.97 54.57 05.27 88.57 093.84

Reporting

Period

3.

Increase/

decrease - - -

in the 4195391 705009. 1718817 85393974. 14358785 35724863. 17931272013000000. 7081836 821651period (“- 9.82 82 8.82 05 6.90 38 .2800 9.76 44.15” for

decrease)

3.1 Total

comprehe 2138357 11499375 32882946 32586188. 361415648

nsive 08.05 2.24 0.29 08 .37

income

3.2

Capital - - - -

increased 28999773. 27346547.and 13000000. 7081836 821651 1653225.6 07 46

reduced 00 9.76 44.15 1

by owners

111Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth Subtotal interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

red ual Oth income ve

shares bonds er

3.2.1

Ordinary

shares

increased

by owners

3.2.2

Capital

increased

by

holders of

other

equity

instrumen

ts

3.2.3

Share-

based

payments

included

in

owners’

equity

----

3.2.428999773.27346547.

Other 13000000. 7081836 821651 1653225.6 07 46

009.7644.151

3.3 Profit - - - -

distributio 18429338 18429338 28348734. 212642121

112Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth Subtotal interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

red ual Oth income ve

shares bonds er

n 7.60 7.60 17 .77

3.3.1

Appropria

tion to

surplus

reserves

3.3.2

Appropria

tion to

general

reserve

3.3.3

Appropria

tion to - - - -

owners 18429338 18429338 28348734. 212642121

(or 7.60 7.60 17 .77

sharehold

ers)

3.3.4

Other

3.4-

Transfers 1718817 154693601718817

within 8.82 9.4188.23

owners’

113Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

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

114Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- TotalOther Gene controlling owners’

Share Capital Less:Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

transferre

d to

retained

earnings

3.4.5

Other

comprehe

nsive -

income 1718817 154693601718817

transferre 8.82 9.4188.23

d to

retained

earnings

3.4.6

Other

3.5

Specific 705009. 2487636.4 3192646.2705009.82

reserve 82 0 2

3.5.1

Increase 118126 11812685. 5958913.0 17771598.in the 85.82 82 5 87

period

3.5.211107611107676.3471276.614578952.

Used in 76.00 00 5 65

115Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Share Capital Less:

Other Gene controlling owners’

capital reserves Treasury

comprehe Specific Surplus ral Retained Oth interests equity

Prefer Perpet stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

the period

3.6 Other

4.

Balance

as at the 15357782 8435179 4253830 548707 1672857 37404401 67178921 36279206 10345812

end of the 30.00 55.90 74.84 1.02 01.79 28.62 62.17 51.95 814.12

Reporting

Period

H1 2024

Unit: RMB

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

1.1548778291433638216513600270121332107944634353083628544283485954697713974

Balance 30.00 25.66 44.15 27.59 5.92 79.06 64.11 08.19 80.86 89.05

116Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth Subtotal interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

red ual Oth income ve

shares bonds er

as at the

end of the

period of

prior year

Add:

Adjustme

nt for

change in

accountin

g policy

Adjustme

nt for

correction

of

previous

error

Other

adjustmen

ts

2.

Balance

as at the

beginning 15487782 9143363 821651 3600270 121332 1079446 34353083 62854428 34859546 97713974

of the 30.00 25.66 44.15 27.59 5.92 79.06 64.11 08.19 80.86 89.05

Reporting

Period

117Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth Subtotal interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

red ual Oth income ve

shares bonds er

3.

Increase/

decrease - -

in the 319403 7935794.7 33697912. 22624356.2220338 11073555.period (“- 8.76 8 10 728.92 38” for

decrease)

3.1 Total -

comprehe 19222918 17002579 60650387. 23067618

nsive 2220338 2.38 3.46 65 1.11

income 8.92

3.2

Capital

increased

and

reduced

by owners

3.2.1

Ordinary

shares

increased

by owners

3.2.2

Capital

increased

by

118Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

holders of

other

equity

instrumen

ts

3.2.3

Share-

based

payments

included

in

owners’

equity

3.2.4

Other

3.3 Profit - - - -

distributio 18429338 18429338 29139436. 21343282

n 7.60 7.60 44 4.04

3.3.1

Appropria

tion to

surplus

reserves

3.3.2

Appropria

119Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

tion to

general

reserve

3.3.3

Appropria

tion to - - - -

owners 18429338 18429338 29139436. 21343282

(or 7.60 7.60 44 4.04

sharehold

ers)

3.3.4

Other

3.4

Transfers

within

owners’

equity

3.4.1

Increase

in capital

(or share

capital)

from

capital

reserves

120Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- Total

Less: Other Gene controlling owners’Share Capital Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

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

transferre

d to

retained

earnings

3.4.5

Other

comprehe

nsive

income

transferre

121Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Equity attributable to owners of the Company as the parent

Item Other equity

instruments Non- TotalOther Gene controlling owners’

Share Capital Less:Treasury comprehe Specific Surplus ral Retained Oth interests equitycapital Prefer Perpet reserves stock nsive reserve reserves reser earnings er

Subtotal

red ual Oth income ve

shares bonds er

d to

retained

earnings

3.4.6

Other

3.5

Specific 319403 3194038.7 2186960.8 5380999.6

reserve 8.76 6 9 5

3.5.1

Increase 494035 4940359.0 3049660.9 7990019.9

in the 9.02 2 0 2

period

3.5.2

Used in 174632 1746320.2 2609020.2862700.01

the period 0.26 6 7

3.6 Other

4.

Balance

as at the 15487782 9143363 821651 3378236 440736 1079446 34432441 62743692 35196525 97940218

end of the 30.00 25.66 44.15 38.67 4.68 79.06 58.89 52.81 92.96 45.77

Reporting

Period

122Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

8. Statements of Changes in Owners’ Equity of the Company as the Parent

H1 2025

Unit: RMB

H1 2025

Item Other equity instruments

Capital Less: OtherShare capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

1. Balance as

at the end of 1548778230. 909058541. 82165144.1 383570431. 3170252.8 381401592. 3019769843. 6163583747.the period of 00 44 5 32 1 21 45 08

prior year

Add:

Adjustment

for change in

accounting

policy

Adjustment

for correction

of previous

error

Other

adjustments

2. Balance as

at the 1548778230. 909058541. 82165144.1 383570431. 3170252.8 381401592. 3019769843. 6163583747.beginning of 00 44 5 32 1 21 45 08

the Reporting

123Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Item Other equity instruments Less: Other

Share capital Capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

Period

3. Increase/

decrease in - -the period (“- 42401277.6 17188178.8-13000000.00 69165144.1 82165144.1 24489.83 -4173165.46 55440780.84” for 5 25 5

decrease)

3.1 Total

comprehensi 214283065. 25426612.73 239709678.61

ve income 88

3.2 Capital - -

increased and

reduced by -13000000.00 69165144.1 82165144.1

owners 5 5

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’

124Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Item Other equity instruments

Share capital Capital

Less: Other

Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

equity

--

3.2.4 Other -13000000.00 69165144.1 82165144.1

55

3.3 Profit - -

distribution 184293387.60 184293387.60

3.3.1

Appropriatio

n to surplus

reserves

3.3.2

Appropriatio

n to owners - -

(or 184293387.60 184293387.60

shareholders)

3.3.3 Other

3.4 Transfers -

within 17188178.8

owners’ 171881788. 154693609.412

equity 23

3.4.1

Increase in

capital (or

share capital)

from capital

reserves

125Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Item Other equity instruments Less: Other

Share capital Capitalreserves Treasury comprehensiv

Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe stock e income reserve reserves earnings r equity

d shares al bonds r

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

comprehensi -

ve income 17188178.8

transferred to 171881788. 154693609.412

retained 23

earnings

3.4.6 Other

3.5 Specific

reserve 24489.83 24489.83

126Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2025

Item Other equity instruments

Capital Less: OtherShare capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

3.5.1

Increase in 5741655.3 5741655.37

the period 7

3.5.2 Used in 5717165.5

the period 5717165.544

3.6 Other

4. Balance as

at the end of 1535778230. 839893397. 425971708. 3194742.6 398589771. 3015596677. 6219024527.the Reporting 00 29 97 4 03 99 92

Period

H1 2024

Unit: RMB

H1 2024

Item Other equity instruments

Capital Less: OtherShare capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

1. Balance as

at the end of 1548778230. 909058541. 82165144.1 359858073. 339248748. 2824687635. 5900363866.the period of 897781.7400 44 5 06 30 90 29

prior year

Add:

127Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Item Other equity instruments Less: Other

Share capital Capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

Adjustment

for change in

accounting

policy

Adjustment

for correction

of previous

error

Other

adjustments

2. Balance as

at the

beginning of 1548778230. 909058541. 82165144.1 359858073. 339248748. 2824687635. 5900363866.897781.74

the Reporting 00 44 5 06 30 90 29

Period

3. Increase/

decrease in -the period (“- 2595771.821548515.7 -48683269.30 -67636013.19” for 21

decrease)

3.1 Total -

comprehensi 21548515.7 135610118.30 114061602.59

ve income 1

3.2 Capital

increased and

reduced by

owners

128Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Item Other equity instruments

Capital Less: OtherShare capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

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 184293387.60 184293387.60

3.3.1

Appropriatio

n to surplus

reserves

3.3.2

Appropriatio - -

n to owners 184293387.60 184293387.60

(or

129Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Item Other equity instruments

Share capital Capital

Less: Other

reserves Treasury comprehensiv

Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe stock e income reserve reserves earnings r equity

d shares al bonds r

shareholders)

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

130Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

H1 2024

Item Other equity instruments Less: Other

Share capital Capital Treasury comprehensiv Specific Surplus Retained Othe Total owners’

Preferre Perpetu Othe reserves stock e income reserve reserves earnings r equity

d shares al bonds r

retained

earnings

3.4.5 Other

comprehensi

ve income

transferred to

retained

earnings

3.4.6 Other

3.5 Specific 2595771.8

reserve 2595771.822

3.5.1

Increase in 4106091.1 4106091.11

the period 1

3.5.2 Used in 1510319.2

the period 1510319.299

3.6 Other

4. Balance as

at the end of 1548778230. 909058541. 82165144.1 338309557. 3493553.5 339248748. 2776004366. 5832727853.the Reporting 00 44 5 35 6 30 60 10

Period

Legal representative: Wan Shan Chief Financial Officer: Zeng Xiaojing

Person-in-charge of the Company’s accounting organ: Li Yizhi

131Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

III Company Profile

(I) Basic information

Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as “the Company”) a joint-stock limited

company jointly founded by Foshan Electrical and Lighting Company Nanhai Wuzhuang Color Glazed Brick

Field and Foshan Poyang Printing Industrial Co. on October 20 1992 by raising funds under the approval of YGS

(1992) No. 63 Document issued by the Joint Examination Group for Experimental Enterprises in Stock System of

Guangdong Province and the Economic System Reform Commission of Guangdong Province is an enterprise

with its shares held by both the corporate and the natural persons. As approved by China Securities Regulatory

Commission with Document (1993) No. 33 the Company publicly issued 19.3 million shares of social public

shares (A shares) to the public in October 1993 and was listed in Shenzhen Stock Exchange for trade on

November 23 1993. The Company was approved to issue 50 million B shares on July 23 1995. And as approved

to change into a foreign-invested stock limited company on August 26 1996 by (1996) WJMZEHZ No. 466

Document issued by the Ministry of Foreign Trade and Economic Cooperation of the People’s Republic of China.On December 11 2000 as approved by China Securities Regulatory Commission with ZJGS Zi [2000] No. 175

Document the Company additionally issued 55 milion A shares. At approved by the Shareholders’ General

Meeting 2006 2007 2008 2014 and 2017 the Company implemented the plan of capitalization of capital reserve

after the transfer the registered capital of the Company has increased to RMB1399346154.00. On February 8

2022 the Company cancelled 37351507 shares held in the repurchase special securities account (including

18952995 A-shares and 18398512 B-shares). Upon the cancellation of the shares the total share capital of the

Company was changed from 1399346154 shares to 1361994647 shares. The Company’s registered capital was

changed to RMB1361994647.00. In August 2023 upon approval by the CSRC (Z.J.X.K. Document No. 1974

[2023]) the Company issued 186783583 RMB-denominated ordinary shares (A-shares) to 13 specific subjects.These shares were listed on the Shenzhen Stock Exchange on December 4 2023. After the issuance of shares the

total share capital of the Company changed from 1361994647 shares to 1548778230 shares and the 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 (RMB1548778230.00). On January 10 2025 the Company

canceled 13 million A-shares held in the repurchase special securities account. Following this cancellation the

Company’s total share capital changed from 1548778230 shares to 1535778230 shares and the Company’s

registered capital changed to RMB1535778230.00).Credibility code of the Company: 91440000190352575W.Legal representative: Wan Shan

Corporate domicile: No. 64 Fenjiang North Road Chancheng District Foshan Guangdong Province

Office address: No. 8 Zhihui Road Chancheng District Foshan Guangdong Province

Main business of the company and its subsidiaries (hereinafter referred to as “the Company”): general lighting

products vehicle lamp products epitaxy and chip products LED packaging and component products trade and

other products.The business term of the Company is long-term which was calculated from the date of issuance of License of

Business Corporation.(II) Authorized issuer and date of approval of the financial report

The Financial Report was approved and authorized for issue by the Board of Directors on August 27 2025.(III) Consolidation scope of financial statements

The consolidation scope of the financial statement during the Reporting Period including the Company and FSL

Chanchang 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 Fozhao

Zhicheng Technology Co. Ltd. ( referred to as “Zhicheng Company”) FSL Zhida Electric Technology Co. Ltd

132Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(referred to as “Zhida Company”) Foshan Hortilite Optoelectronics Co.Ltd. (referred to as “Hortilite Company”)

Fozhao (Hainan) Technology Co. Ltd. (referred to as “Hainan Technology”) Foshan Kelian New Energy

Technology Co. Ltd. (referred to as “Foshan Kelian”) Nanning Liaowang Auto Lamp Co. Ltd. (referred to as“Liaowang Auto Lamp) Foshan NationStar Optoelectronics Co. Ltd. (referred to as “NationStarOptoelectronics”) Foshan Sigma Venture Capital Co. Ltd. (referred to as “Sigma”) Fozhao Huaguang

(Maoming) Technology Co. Ltd. (referred to as “Fozhao Huaguang”) and Beijing Airtrust Aviation Technology

Co. Ltd. (referred to as “Beijing Airtrust”) in total 14 subsidiaries and Liuzhou Guige Lighting Technology Co.Ltd. (referred to as “Liuzhou Lighting”) Liuzhou Guige Foreshine Technology Co. Ltd. (referred to as “LiuzhouForeshine”) Chongqing Guinuo Lighting Technology Co. Ltd. (referred to as “Chongqing Guinuo”) Qingdao

Guige Lighting Technology Co. Ltd. (referred to as “Qingdao Lighting”) Indonesia Liaowang Auto Lamp Co.Ltd. (referred to as “Indonesia Liaowang”) Liaowang Auto Lamp (Suzhou) Co. Ltd. (“Suzhou Liaowang”)

Zhejiang Hule Electric Equipment Manufacture Co. Ltd. (“Hule Electric Equipment”) Foshan NationStar

Electronic Manufacturing Co. Ltd. (referred to as “Guoxing Electronic”) Foshan NationStar Semiconductor Co.Ltd. (referred to as “NationStar Semiconductor”) Nanyang Baoli Vanadium Industry Co. Ltd. (referred to as

“Baoli Vanadium Industry”) Guangdong New Electronic Information Ltd. (referred to as “New Electronic”)

NationStar Optoelectronics (Germany) Co. Ltd. (referred to as “Germany NationStar”) Guangdong Fenghua

Semiconductor Technology Co. Ltd. (referred to as “Fenghua Semiconductor”) Gaozhou NationStar Lighting

Technology Co. Ltd. (referred to as “Gaozhou NationStar”) Airstar (Tianjin) Lighting Co. Ltd. (referred to as

“Airstar”) and FSL (Thailand) Lighting Technology Co. Ltd. (referred to as “Thailand Company”) in total 16

sub-subsidiary. Additionally the Company has 1 subsidiary of a sub-subsidiary which is Shanghai Lelaite

Electrical Equipment Co. Ltd. (“Shanghai Leilite”).Given that Nanyang Baoli Vanadium Industry Co. Ltd. (Baoli Vanadium) is in a state of non-continuing

operations the Financial Statements H1 2025 of Baoli Vanadium were formulated at fair value or costs whichever

was lower.The Company had 31 subsidiaries included in the consolidation scope during the current period. See Notes “IXChanges in the scope of consolidation and “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 events that

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 Information

Disclosures by Companies Offering Securities to the Public - General Provisions on Financial Reporting of the

China Securities Regulatory Commission and on the basis of the significant accounting policies and accounting

estimates formulated.

2. Going Concern

The Company has the ability to continue as a going concern for at least 12 months from the end of the Reporting

Period and there are no material matters affecting its ability to continue as a going concern.V Important Accounting Policies and Estimations

Reminders of the specific accounting policies and accounting estimations:

The following significant accounting policies and accounting estimates of the Company have been formulated in

accordance with ASBEs. Operations not mentioned are treated in accordance with the relevant accounting policies

in the ASBE.

133Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company are in compliance with the Accounting Standards for Business

Enterprises which factually and completely present the Company’s and the consolidated financial positions

business results and cash flows as well as other relevant information of the Company.

2. Fiscal Year

A fiscal year starts on January 1 and ends on December 31 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 of its

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 items

affect the users of financial statements making economic decisions in terms of both the nature and amount. The

materiality of financial statement items in terms of the amount is determined based on a certain percentage of

relevant items in total assets total liabilities net assets operating income and net profit. The materiality of

financial statement items in terms of nature is based on factors with a significant impact on the Company’s

financial position and operating results such as whether they are part of routine operating activities whether they

result 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 the

materiality of the financial statement items. This determination is made by considering a certain percentage of the

specific 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 require

separate disclosure in the notes. The materiality criteria related to the notes to the financial statement items are:

Item Materiality criteria

Significant accounts receivable with The individual amount accounts for more than 10% of the account

bad debt provision separately accrued receivable or bad debt provision and the amount exceeds RMB10million.Bad debt provision of accounts

receivable collected or reversed with Individual amount accounts for more than 10% of the current reversal

significant amount in this year of bad debt provision and the amount exceeds RMB10 million.Significant verification of accounts The individual amount accounts for more than 10% of the account

receivable in this year receivable or bad debt provision and the amount exceeds RMB10million.

134Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Significant construction in progress The ending balance of an individual construction in progress accountsfor more than 10% and the amount exceeds RMB50 million.Significant accounts payable/other The individual amount accounts for more than 10% of accounts

payables over one year payable over 1 year/other payables and the amount exceeds RMB10million.Significant cash flows generated from Cash flows of an individual investment accounts for more than 3% of

investment activities the net assets at the period-end and the amount exceeds RMB100million.Minority shareholders hold more than 5% interest and any of the

Significant non-wholly-owned items of total assets net assets operating revenues and net profits of

subsidiary the subsidiary accounts for more than 10% of the corresponding items

in the consolidated financial statements.Significant joint ventures or associated The investment income generated from joint ventures or associated

enterprises enterprises (The loss is calculated in absolute terms) accounts formore 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 Same

Control

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 the

acquirer pays cash transfers non-cash assets assumes debts as merger consideration the share of the Company’s

equity of the acquiree obtained on combination date in the carrying value of the financial statements of the

ultimate controlling party is deemed as an initial investment cost of long-term equity investments. If the acquirer

issues equity instruments as consideration for a combination the total par value of the shares issued is treated as

equity. The difference between the initial investment cost of a long-term equity investment and the carrying

amount of the consideration for consolidation (or the total nominal value of shares issued) shall be adjusted to

capital 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 be

the total fair values of the assets paid liabilities incurred or assumed and the equity securities issued on the date of

acquisition by the acquirer in exchange for control on the acquiree. Identifiable assets liabilities and contingent

liabilities of the acquiree acquired in a business combination not under the same control that qualify for

recognition are measured at fair value on the date of acquisition. The acquirer recognizes as goodwill the

difference between the combination costs and the fair value share of the identifiable net assets of the acquiree

obtained in the combination. If the combination costs are less than the fair value share of the acquiree’s

identifiable net assets obtained in the combination the difference between the combination costs still less than the

fair value share of the acquiree’s identifiable net assets obtained in the combination after review shall be included

in the non-operating revenue for the current period.

135Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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. An

investee is considered to be controlled if the following three elements are present: the possession of power over

the investee the enjoyment of variable returns as a result of participating in the relevant activities of the investee

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 subsidiary

companies

If the accounting policies and accounting period adopted by the subsidiaries are inconsistent with those of the

Company necessary adjustments are made in accordance with the accounting policies and accounting period of

the 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 subsidiaries

and have been offset by internal transactions that occurred between the Company and its subsidiaries and between

subsidiaries. The share of owners’ equity of subsidiaries that do not belong to the Company is presented as

minority 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 a

deduction from shareholders’ equity in the consolidated balance sheet under the item “Less: treasury stock”.

(3) Accounting treatment of the acquisition of subsidiaries through consolidation

For subsidiaries acquired through a business combination under common control the assets liabilities operating

results and cash flows are included in the consolidated financial statements from the beginning of the period of

consolidation as if the business combination had occurred at the time the ultimate controlling party began to

exercise control; for subsidiaries acquired through a business combination not under the same control the fair

value of the identifiable net assets on the acquisition date is used as the basis for preparing the consolidated

financial statements. The financial statements are adjusted based on the fair value of the identifiable net assets on

the 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 difference

between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the

long-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date is

adjusted to capital surplus in the consolidated financial statements and retained earnings is adjusted if the capital

surplus is not sufficient to cover the reduction. If the control over the investee is lost due to the disposal of part of

equity investments the residual equity are re-measured at fair value on the date of loss of control. The aggregate

of the consideration obtained by disposing of the equity and the fair value of the remaining equity less the portion

of 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 investments

in which the control is lost and goodwill shall be offset. Other comprehensive income related to the equity

investments in the former subsidiary shall be included in the return on investment for the current period when the

Company 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 reached

through separate entities are classified as joint operations. Separate entities refer to entities with separate

identifiable financial structures including separate legal entities and entities that do not have legal entity status but

are recognized by law. The joint arrangements reaching through separate entities are usually classified as joint

136Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

ventures. Where changes in relevant facts and circumstances result in changes in the rights and obligations of the

joint venture parties in the joint venture arrangement the joint venture parties shall reassess the classification of

the 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 in

the 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 share

basis; 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 of

expenses 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 underlying

assets of the joint operation and assumes the liabilities related to the joint operation the accounting treatment of

the joint operation partner shall be referred to; otherwise the accounting treatment shall be carried out in

accordance 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 the

provisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity Investments; if the

Company is a non-joint venture partner it shall account for its investment in such joint ventures based on the

extent 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 on

hand and deposits that are readily available for disbursement. Cash equivalents identified in the preparation of the

statement of cash flows are investments that are held for a short period of time are highly liquid are readily

convertible 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

The Company records foreign currency transactions using the spot exchange rate on the transaction date or the

nearest exchange rate to the transaction date to convert into the functional currency. On the balance sheet date the

monetary items in foreign currencies are translated at the spot exchange rate. Exchange differences arising from

the difference between the spot rate on that date and the spot rate at initial recognition or on the previous balance

sheet date are recognized in profit or loss except for exchange differences on special borrowings in foreign

currencies that qualify for capitalization which are capitalized in the period in which they are capitalized and

charged to the cost of the related assets. Non-monetary items measured at historical costs in foreign currencies are

still translated at the spot exchange rate on the transaction date with the amount of standard currency for

accounting unchanged. Non-monetary items measured at fair value in foreign currencies are translated at the spot

exchange rate on the date when the fair value is determined. The difference between the amount of standard

currency for accounting after translation and the original amount shall be treated as a change in fair value

(including exchange rate changes) and recognized in current 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 currency

from the Company’s they need to convert their foreign currency financial statements before conducting

accounting and preparing consolidated financial statements. The assets and liabilities in the balance sheet shall be

translated 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 the

income statement are translated at the spot exchange rate on the transaction date. The exchange difference in

translating foreign operations arising from the translation are shown under other comprehensive income in the

owner’s equity line in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchange

137Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

rate on the date of occurrence of the cash flows. The impact of exchange rate changes on cash is presented

separately in the cash flow statement. When an overseas operation is disposed of the foreign currency statement

translation difference related to the overseas operation is transferred to the current profit and loss of the disposal in

full 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 of

financial 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 such

financial assets aims at obtaining contractual cash flow and the characteristics of contractual cash flow of such

financial 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 is

subsequently 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 the

Company for managing such financial assets aims at receiving contractual cash flow as well as selling and the

characteristics of contractual cash flow of such financial assets are basically the same as basic borrowing

arrangement. Such financial assets are subsequently measured at fair value with changes recognized in other

comprehensive income except for interest income impairment losses or gains calculated in accordance with the

effective 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 are

not classified as at amortized cost and at fair value through other comprehensive income are measured at fair

value with gains or losses (including interest and dividend income) recognized in profit or loss for the current

period. On initial recognition a financial asset may be irrevocably designated as financial asset at fair value

through profit or loss if the accounting mismatch can be eliminated or reduced. The designation shall not be

revoked once made.For instruments in non-business equity instruments the Company may irrevocably assign such investments as

financial assets (equity instruments) measured at fair value through other comprehensive income at initial

recognition. The assignment is made based on investments by item and the relevant investments meet the

definition of an equity instrument from the issuer’s perspective. Such financial assets are subsequently measured

at fair value and except for dividends received (except for the portion which forms part of investment cost

recovered) which are recognized in profit or loss all other related gains and losses are recognized in other

comprehensive 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 financial

liabilities are subsequently measured at fair value and the resulting gains or losses are recognized in profit or loss

for the current period.b) Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or when the

continuing involvement approach applies.c) Financial liabilities measured at amortized cost. Such financial liabilities are measured at amortized cost using

the 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 active

market; 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 of

138Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

possible estimates of fair value is wide and the cost represents the best estimate of fair value within that range the

cost may represent its appropriate estimate of fair value within that range of distribution. The Company uses all

information available after the initial recognition date about the investee’s performance and operations to

determine 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 receive

cash flows from the financial asset is terminated; (2) the financial asset is transferred and the conditions for

derecognition are met.If the present obligation of a financial liability is discharged in whole or in part the discharged portion is

derecognized. If an existing liability is replaced by another financial liability from the same creditor on

substantially different terms or the terms of an existing liability are substantially modified the existing financial

liability is derecognized and a new financial liability is recognized simultaneously. All regular acquisitions or

sales 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. Accounts

Receivable.

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 for

bad debts for financial assets measured at amortized cost (including accounts receivable including notes

receivable 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 the

relevant 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 different

accounting treatments to the impairment of financial instruments at different stages: (1) in the first stage if the

credit risk of a financial instrument has not increased significantly since the initial recognition the Company will

measure 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 for

impairment) and the actual interest rate; (2) In the second stage if the credit risk of a financial instrument has

increased significantly since the initial recognition but no credit impairment has occurred the Company will

measure the loss reserves based on the expected credit loss over the entire life of the financial instrument and

calculates 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 loss

reserves based on the expected credit loss over the life of the financial instrument and calculates interest revenue

based 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 amount

equal 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 remeasures

expected credit losses at each balance sheet date. The resulting increase or reversal amount of the loss provision

should be recognized as an impairment loss or gain in profit or loss and offset against the carrying amount of the

financial asset as stated in the balance sheet or included in projected liabilities depending on the type of financial

instrument (loan commitments or financial guarantee contracts).

4. Method of the provision for losses on the measurement of receivables lease receivables

139Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(1) Receivables with no significant financing component. For receivables arising from transactions governed by

Accounting Standard for Business Enterprises No. 14 - Revenue that do not have a significant financing

component the Company uses a simplified approach whereby the allowance for losses is always measured on the

basis of expected credit losses throughout their lives.a) Accounts receivable of expected credit losses withdrawn individually

Rationale for a single provision for

expected credit losses Objective evidence of impairment

The impairment tests are conducted separately for accounts receivable

Individual accruals for expected credit individually accrued. An impairment loss is recognized based on the

losses difference between the present value of future cash flows and their

carrying amount and an expected credit loss is recorded

2) Accounts Receivable with Expected Credit Losses Provision Based on Credit Risk Portfolio

Portfolio name Basis for portfolio recognition Determination method of expected credit losses

General lighting auto lamps and

other relevant business with the Prepare the comparative list between aging of

Business portfolio of Company as the parent and the accounts receivable and expected credit loss rate

general lighting and subsidiary Liaowang Auto Lamp as over the entire life and calculate the expected

auto lamps the representative this portfolio credit loss by consulting historical experience intakes the aging of accounts credit losses combining current situation and

receivable as the credit risk prediction for future economic situation.characteristics

LED packaging components and

other relevant business with the Prepare the comparative list between aging of

Business portfolio of subsidiary NationStar accounts receivable and expected credit loss rate

LED packaging and Optoelectronics as the over the entire life and calculate the expected

components representative this portfolio takes credit loss by consulting historical experience in

the aging of accounts receivable as credit losses combining current situation and

the credit risk characteristics prediction for future economic situation.Internal business Related parties and internal

portfolio 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

Prepare the comparative list between aging of

accounts receivable and expected credit loss rate

Portfolio 2 Trade acceptance over the entire life and calculate the expectedcredit loss by consulting historical experience in

credit losses combining current situation and

prediction for future economic situation.

140Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

The aging analyses are based on their date of entry into the accounts.Among portfolios expected credit losses accrued by aging analysis:

Expected credit loss rate

Aging

Business portfolio of general lighting Business portfolio of LED packaging

and auto lamps and components

Within 1 year (including 1 year) 3% 2%

1 to 2 years 10% 10%

2 to 3 years 30% 30%

3 to 4 years 50% 50%

4 to 5 years 80% 80%

Over 5 years 100% 100%

For receivables with significant financing components and lease receivables the Company measures the provision

for losses in accordance with the general method i.e. the “three-stage” model. The credit risk characteristics

grouping the aging calculation method based on the credit risk characteristics grouping and the criteria for

determining individual provisioning are consistent with the recognition standards for those without financing

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 other

receivables and long-term receivables other than lease receivables the Company measures the allowance for

losses 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 determination

The Company divides other receivables into certain credit risk combinations based on the nature of the amounts. It

calculates expected credit losses based on the combinations and the basis for determining the combinations is as

below:

Portfolio name Determination basis

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 aging

Refer 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.

141Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 as

that 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 the

customer (and which is dependent on factors other than time-lapse) as a contract asset. The provision for

impairment of contract assets is made with reference to the method of determining expected credit losses in this

note.Contract assets are categorized into the following portfolios according to credit risk characteristics:

Portfolio Determination basis

General lighting automotive lamps and related businesses

Portfolio 1: General lighting and lamps represented by the parent company and its subsidiary Liaowang

business portfolio Auto Lamp. This portfolio uses the aging of accounts

receivable as the credit risk characteristic.LED packaging components and other related businesses

Portfolio 2: LED packaging and components represented by subsidiary NationStar Optoelectronics. This

business portfolio portfolio uses the aging of accounts receivable as the credit risk

characteristic

Portfolio 3: Internal business portfolio This portfolio involves related-party transactions and internaltransactions

17. Inventory

1. Classification of inventories

Inventories refer to the Company’s finished goods or commodities for sale held in daily activities unfinished

goods in manufacturing process and materials and supplies consumed in process of manufacturing products or

providing services etc. Inventories mainly include raw materials circulating materials (such as packaging

materials low-value consumables etc.) materials for entrusted processing work-in-progress self-manufactured

semi-finished products and finished goods (inventory goods).

2. Pricing method of issuing inventories

When inventory is issued the Company uses the weighted average method to determine the actual cost of the

inventory 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.

142Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

5. Criteria for Recognizing and Accrual method of provision for decline in value of inventories

Net realizable value refers to the amount after deducting the cost estimated until completion estimated selling

expenses and relevant taxes from the estimated selling price of the inventory. The Company determines the net

realizable value of inventories based on solid evidence obtained and after taking into consideration the purpose for

which 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 for

sale is determined in the normal course of production and operation as the estimated selling price of such

inventories less estimated selling expenses and related taxes.The net realizable value of material inventories subject to processing is determined in the normal course of

production operations as the estimated selling price of the finished goods produced less the estimated costs to be

incurred to completion estimated selling expenses and related taxes. The Company determines the net realizable

value of inventories based on solid evidence obtained and after taking into consideration the purpose for which the

inventory 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 disposal

groups

A non-current asset or disposal group whose carrying value will be recovered principally through sale rather than

through continuing use is classified as held for sale and meets the following conditions: first it is immediately

available for sale under current conditions based on the customary practice for sales of such assets or disposal

groups in similar transactions; and second it is highly probable that the sale will occur i.e. the enterprise has

already resolved on a plan for the sale and has obtained a firm commitment to purchase and it is expected that the

sale is expected to be completed within one year. The relevant regulations require the approval of the relevant or

regulatory 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 the

balance sheet date if the carrying value is higher than the fair value minus the net amount of the sale costs the

carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down

will be recognized as asset impairment loss and included in current profit and loss and provision for impairment

of assets held for sale will be made.The amount of asset impairment loss recognized for disposal groups held for sale shall be offset against the

carrying 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 as

defined in the applicable measurement of the Accounting Standards for Business Enterprises - Non-current Assets

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 and

that has been disposed of by the Company or classified by the Company as held for sale: the component

represents a separate principal business or a separate principal operating area; the component is part of a related

program of proposed dispositions of a separate principal business or a separate principal operating area; The

component is a subsidiary acquired specifically for resale.The Company presents gains and losses from continuing operations and gains and losses from discontinued

operations separately in the statement of income. Operating gains and losses such as impairment losses and

reversal amounts for discontinued operations and gains and losses on disposals are presented as gains and losses

from discontinued operations. The revenues expenses gross profit income tax expense (benefit) and net profit

from discontinued operations impairment losses recognized on assets or disposal groups of discontinued

operations and the amount of their reversal total gain or loss on disposal of discontinued operations income tax

expense (benefit) and net gain or loss on disposal net cash flows from operating activities investing activities and

financing activities of discontinued operations and gains and losses from continuing operations and gains and

losses from discontinued operations attributable to owners of the parent company are disclosed in the notes.

143Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 Note

V-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 decided

upon with the unanimous consent of the participants sharing control including sales and purchases of goods or

services 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 of

directors 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 technical

information 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 combination

under the same control the initial investment cost of the long-term equity investment shall be the share of the

owners’ equity of the party being combined in the consolidated financial statements of the ultimate controlling

party on the combination date; in the case of a business combination not under the same control the initial

investment 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 purchase

price paid; for long-term equity investments acquired by issuing equity securities the initial investment cost is the

fair value of the equity securities issued; for long-term equity investments acquired through debt restructuring the

initial investment cost is determined

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 by

the cost method and long-term equity investments in associates and joint ventures are accounted for by the equity

method. If a portion of the Company’s equity investments in affiliates is held indirectly through venture capital

institutions mutual funds trust companies or similar entities including investment-linked funds regardless of

whether the above entities have significant influence over this portion of the investment the Company treats it in

accordance with the relevant provisions of Accounting Standards for Business Enterprises No. 22-Recognition

and Measurement of Financial Instruments and accounts for the remaining portion with the equity method.

23. Investment Properties

Measurement model of investment property

Measurement of cost method

Depreciation or amortization method

144Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

The Company’s investment property includes leased land use rights leased buildings and land use rights held and

ready to be transferred after appreciation. Investment property is initially measured according to cost and then

measured by cost model.The Company uses the composite life depreciation method for buildings leased out of investment properties and

the specific accounting policies are the same as those for fixed assets. Land use rights leased out of investment

properties and land use rights held and intended to be transferred after appreciation are amortized through the

straight-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 labor services lease or business

with a service life of over a fiscal year. Recognition is made when the following conditions are met: The

economic benefits associated with the fixed-asset will probably flow to the enterprise; the cost of the fixed-asset

can be measured reliably.

(2) Depreciation method

Category Depreciationmethod Depreciable life Residual value rate

Annual depreciation

rate

Houses and Straight-line

buildings depreciation 3-38 years 1%-10% 31.67%-3.17%method

Machinery Straight-line

equipment depreciation 2-11 years 1%-10% 47.50%-8.18%method

Transportation Straight-line

equipment depreciation 5-10 years 1%-10% 19.00%-9.50%method

Electronic Straight-line

equipment depreciation 2-8 years 1%-10% 47.50%-11.88%method

Straight-line

Other equipment depreciation 5 years 5%-10% 19.00%-18.00%

method

The Company’s fixed assets are mainly classified into: buildings and structures machinery and equipment

electronic equipment transportation equipment etc. The depreciation method is the average annual limit method.The service lives and estimated residual values of fixed assets are determined according to the nature and

utilization of each category of fixed assets. At the end of the year the service lives estimated residual values and

depreciation methods of fixed assets are reviewed and adjustments are made accordingly if there are differences

from the original estimates. All fixed assets are depreciated except for fully depreciated fixed assets that continue

to be used and land that is separately accounted for.

145Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

25. Construction in Progress

The Company’s construction in progress is divided into two types: Construction on a self-operation basis and a

contracted basis. The criteria and time point for carrying forward construction in progress to fixed assets are based

on the construction in progress reaching its intended state of use. The standard for determining the intended usable

condition shall be one of the following: The physical construction (including installation) of the fixed assets has

been fully completed or substantially completed; production or trial operation has been conducted 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 expenditure on the fixed assets

constructed is little or almost no longer incurred; the fixed assets acquired have met the design 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 or

production of assets that meet the capitalization conditions they shall be capitalized and included in the costs of

the underlying assets; other borrowing costs recognized as costs according to the amount incurred shall be

included in the profit and loss for the current period. Assets eligible for capitalization refer to assets such as fixed

assets investment properties and inventories that require a long period for their acquisition or production

activities 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 the

capitalization 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 of

acquisition 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 special

borrowings less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or the

investment income earned by making temporary investments; the appropriation of general borrowings is

determined by multiplying the weighted average amount of asset expenses over the portion of special borrowings

by the capitalization rate of the general borrowings appropriated which is the weighted average interest rate of

general 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 is

adjusted for each period.The effective interest rate method is a method of calculating the amortized discount or premium or interest

expense on a borrowing based on its effective interest rate. The effective interest rate method calculates the

amortized 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

146Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

The Company initially measures the intangible assets at cost. For the acquired intangible assets the actual prices

paid and related expenses shall be regarded as the actual costs. The actual cost of intangible assets invested by

investors shall be recognized according to the value agreed upon in the investment contract or agreement. In case

of 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 procedure

Intangible assets with finite service lives are amortized using the methods presented in the table below over their

service lives and the service lives and amortization methods of intangible assets are reviewed at the end of the

year and adjusted accordingly if there are differences from the original estimates. Intangible assets with indefinite

service lives are not amortized but are reviewed at the end of the year for service lives and estimated when there

is conclusive evidence 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 usefullife Amortization method

Land use right 20-50 years Duration of land use rights Method of line

Patent use right 5-20 years Expected number of years ofbenefit Method of line

Software 3-10 years Expected number of years ofbenefit Method of line

Trademark right 3-10 years Expected number of years ofbenefit Method of line

Other 3-10 years Expected number of years ofbenefit Method of line

The intangible assets are regarded as intangible assets with uncertain service life if the term during which they can

bring economic benefits to the Company is unforeseeable or if their usage period is uncertain. The bases for

determining of uncertain service life are: The intangible assets come from contractual or other legal rights but the

contract or laws have no certain stipulations of the service life; the term during which the intangible assets bring

economic benefits to the Company is still unforeseeable even with consideration of peer status or demonstrations

of related professionals.At the end of each year the review of service life of intangible assets with uncertain service life mainly adopts the

method of reviewing from lower department to upper department where departments related to the use of

intangible assets shall conduct the basic review and make assessment of whether the determining basis of

uncertain service life changes.

3. The scope of R&D expenditure collection and the related accounting treatment

The scope of the Company’s R&D expenditures is mainly formulated based on the Company’s research and

development projects which mainly includes: R&D personnel’s employee remuneration direct input expenses

depreciation expenses and long-term amortization expenses design expenses equipment commissioning

expenses amortization expenses of intangible assets commissioned external research and development expenses

and other expenses etc.Expenditures incurred during the research phase of an internal research and development project are recognized in

profit or loss when incurred; expenditures incurred during the development phase that meet the conditions for

recognition as an intangible asset are transferred to intangible asset accounting.

147Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Specific criteria for dividing the research phase and development phase of internal research and development

projects: The expenditures in internal research and development projects of the Company are classified into

expenditures in research stage and expenditures in development stage. The expenditures in research stage are

included in the current profits and losses when incurred. The expenditures in development stage are recognized as

intangible 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 products

produced with the intangible assets can be sold in a market or the proof of its usefulness if the intangible assets

can be sold in a market and will be used internally;

(4) Having sufficient technical financial resources and other resources to support the development of the

intangible 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 assets

recognition criterion and before reaching intended use. Expenditures that have been expensed in previous periods

are 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 equity

investments investment property measured in cost mode fixed assets construction in progress productive living

assets measured in cost mode oil and gas assets and intangible assets the Company shall test the impairment. If

the impairment test results indicate that the recoverable amount of the asset is lower than its book value the

impairment 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 of

the expected future cash flow of the asset. The provision for impairment of assets is calculated and recognized on

the basis of individual assets. If it is difficult to estimate the recoverable amount of individual assets the

recoverable amount of the asset group shall be recognized by the asset group to which the asset belongs. The asset

group 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 not

there is any indication of impairment. The book value of the goodwill shall be apportioned to the asset group or

portfolio of asset groups that is expected to benefit from the synergies of the business combination when the

impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that the

recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is lower

than its book value. The amount of the impairment loss shall offset the book value of the goodwill apportioned to

the asset group or portfolio of asset groups and offset the book value of other assets in proportion according to the

proportion 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 written

back in subsequent periods.

31. Long-term Prepaid Expense

Long-term prepaid expense refers to general expenses with the apportioned period over one year (excluding one

year) that have occurred but are attributable to the current and future periods. Long-term prepaid expense shall be

amortized averagely within benefit period. In case of no benefit in the future accounting period the amortized

value of such item that fails to be amortized shall be transferred into the current profits and losses.

148Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

32. Contract Liabilities

The Company presents the obligations to transfer goods or provide services to customers for consideration

received or receivable from customers as contract liabilities. Contract assets and contract liabilities under the same

contract are presented net: if the net amount results in a debit balance it is presented in “Contract Assets” or

“Other Non-current Assets” based on its liquidity; if the net amount results in a credit balance it is presented in

“Contract Liabilities” or “Other Non-current Liabilities” based on its liquidity. Contract assets and contract

liabilities under different contracts cannot be offset against each other.

33. Payroll

(1) Accounting treatment of the short-term remuneration

Employee benefits refer to all forms of remuneration or compensation given by the Company for services

rendered by employees or for the termination of employment relationships. Employee benefits mainly include

short-term benefits post-employment benefits termination benefits and other long-term employee benefits.The short-term compensation actually happened during the accounting period when the active staff offering the

service for the Company should be recognized as liabilities and is included in the current profits and losses except

for those required or allowed to be included in the assets cost by the Accounting Standards for Business

Enterprises. The employee services benefits actually happened in the Company shall be included in the current

profits and losses or relevant assets cost according to the actual amount. Of which the non-monetary benefits

should 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 withdrawal

basis and withdrawal proportion specified in regulations with the social insurance premiums such as medical

insurance premiums industrial injury insurance premium and birth insurance premium housing fund and the

labor union budget and employee education budget withdrawn in regulations and then recognizes it as liabilities

that 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 accounting

period when the active staff offering the service for the Company is recognized as liabilities and is included in the

current profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shall

be attributable to the period in which the employees provide services based on the formula determined by

expected 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 the

demission welfare on the earlier of the date when the Company could not unilaterally withdraw the demission

welfare offered by the plan or layoff proposal owing to termination of the labor relationship or the date when the

Company recognizes the cost related to the reorganization of the payment of the demission welfare and include

the 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 be

disposed of according to the relevant setting drawing plan; except for that net liabilities or net assets of the

welfare of other long-term staff shall be recognized and measured according to the setting drawing plan.

149Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

34. Accrued liabilities

The obligation pertinent to contingencies shall be recognized as provisions when that obligation is a current

obligation of the Company and it is likely to cause any economic benefit to flow out of the enterprise as a result

of performance of the obligation while the amount of the obligation can be measured in a reliable way. The

Company conducts the initial measurement in accordance with the best estimate of the necessary expenses for the

performance of the current obligation. If there is a sequent range for the necessary expenses and if all the

outcomes within this range are equally likely to occur the best estimate shall be determined in accordance with

the midpoint estimate within the range; if the contingencies concern two or more items the best estimate shall be

calculated 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 be

adjusted in accordance with the current best estimate when there is definite evidence indicating that the book

value cannot reflect the current best estimate in faithfulness.

35. Share-based Payment

Not applicable

36. Other Financial Instruments such as Preferred Shares and Perpetual Bonds

Not applicable

37. Revenue

Disclosure of accounting policies adopted for revenue recognition and measurement by type of business

The Company recognizes revenue based on the transaction price apportioned to the performance obligation in a

contract when the customer obtains control of the underlying good or service. Obtaining control of related goods

refers to that customers can control the use of the goods and obtain almost all the economic benefits from the

goods. A performance obligation is a contractual commitment by the Company to transfer a clearly distinguishable

commodity to a customer. The transaction price is the amount of consideration that the Company expects to be

entitled to receive as a result of the transfer of the commodity to the customer excluding amounts collected on

behalf 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 time

depends on the terms of the contract and the relevant legal provisions. If the performance obligation is fulfilled

within 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 the

underlying asset.The Company determines whether the Company’s status is that of a principal or agent when engaging in a

transaction based on whether it has control over the goods or services prior to transferring them to the customer. If

the Company is able to control the goods or services before transferring them to the customer the Company is the

principal 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 to

which it is expected to be entitled which shall be determined at the net amount of the total consideration received

or 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 recognizes

revenue 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 delivered

goods that have passed inspection to the purchaser as required by the purchaser the amount of revenue has been

determined a sales invoice has been issued and the payment has been received or is expected to be recovered;

150Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

under the consignment sales settlement mode the Company recognizes sales revenue when the product is issued

and 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 requirements

stipulated in the sales contract and completed the export declaration procedures after the goods have passed

inspection; products have been loaded on board; the amount of revenue has been determined an export sales

invoice 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 measurement

methods

None.

38. Contract Costs

Contract costs are either the incremental costs of obtaining a contract with a customer or the costs to fulfil a

contract with a customer. Incremental costs of obtaining a contract (“contract acquisition costs”) are costs that

won’t have been incurred if the contract is not acquired. The Company recognizes as an asset the incremental

costs of 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 accounting

standards such as inventory are recognized as an asset as contract performance costs when the following

conditions are simultaneously met: The cost is directly related to a current or anticipated acquisition of a contract

and includes direct labor direct materials manufacturing overhead (or similar costs) costs explicitly attributable

to the user and other costs incurred solely as a result of that contract; the cost increases the resources available to

meet 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 the

amortization period at the initial recognition doesn’t exceed one year or one normal operating cycle; if the

amortization period at the initial recognition is more than one year or one normal operating cycle they are

included 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 the

amortization period at the initial recognition doesn’t exceed one year or one normal operating cycle; if the

amortization period at the initial recognition is more than one year or one normal operating cycle they are

included in “Other non-current assets” on the balance sheet.The Company amortizes the assets recognized for contract acquisition costs and contract performance costs on the

same basis as the revenue recognition of the merchandise to which the assets relate and recognizes them in profit

or loss for the current period. Assets formed from the incremental cost of acquiring a contract with an

amortization 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 following

two items the Company makes an allowance for impairment and recognizes an asset impairment loss for the

excess: the remaining consideration expected to be received for the transfer of the merchandise to which the asset

relates; 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 the

impairment factors in previous periods the asset impairment provisions set aside should be reversed and

recognized as profit and loss of the current period. However upon the reversal the book value of the assets shall

not 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 the

government (excluding the capital invested by the government as an equity holder). If a government subsidy is a

151Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

monetary asset it shall be measured according to the amount received or receivable. If a government subsidy is a

non-monetary asset it shall be measured at its fair value and shall be measured at a nominal amount when the fair

value cannot be obtained reliably.Government subsidies related to the daily activities are included in other income in accordance with the nature of

economic 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 be

used for acquisition construction or otherwise formation long-term assets. Regarding the government grants that

the government document does not specify the object of subsidy and can form long-term assets the part of

government subsidy corresponding to the asset value shall be regarded as the asset-related government subsidy

and the rest shall be regarded as income-related government subsidy. If it is difficult to distinguish the

government subsidy shall be regarded as the income-related government subsidy. Government grants related to

assets are recognized as deferred income. The amount recognized as deferred income is included in the current

profits and losses in accordance with reasonable and systematic method in the useful life of relevant assets.Government subsidies other than asset-related government subsidies are recognized as government subsidies

related to income. Government subsidies related to income used to compensate the relevant costs expenses or

losses of the Company in the subsequent period shall be recognized as deferred income and shall be included in

the current profit and loss during the period of confirming the relevant cost expenses or losses; subsidies used to

compensate the relevant costs expenses or losses incurred by the Company shall be directly included in the

current profits and losses.In the case that the Company obtains a policy favorable loan interest subsidy and the fiscal system allocates the

fund of interest subsidy to the lending bank who provides loans to the Company at a policy favorable interest

rate the actual loan amount received is recognized as the recorded value of the loan and the relevant borrowing

costs are calculated based on the loan principal and the policy favorable interest rate; if the fiscal system allocates

the fund of interest subsidy to the Company directly the Company reduces the corresponding interest subsidy

against relevant borrowing costs.

2. Recognition time of government subsidies

Government subsidies shall be recognized when the Company satisfies the conditions attached to the government

subsidies and is able to receive them. Government subsidies measured according to the receivable amount shall be

recognized when there is positive evidence at the end of the period that they can meet the relevant conditions

stipulated by the financial support policies and are expected to receive financial support funds. Other government

subsidies other than government subsidies measured by amount receivable are recognized when the Company

actually 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 the

applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the different

amount between the book value of assets or liabilities and its tax base (for items not recognized as assets and

liabilities if its tax basis can be determined according to the tax law the tax basis is recognized as the different

amount).

2. Measurement of deferred income tax

The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset the

deductible temporary differences. On the balance sheet date deferred income tax assets without recognition

during the former accounting period shall be recognized if there are definite indications representing that it is

probable 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 tax

assets 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 deferred

income tax liabilities are recognized unless the time of temporary differences reversal can be controlled by the

152Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Company and are probably not to be reversed in foreseeable future. For deductible temporary differences related

to the investment in subsidiaries and associated enterprises the deferred income tax assets are recognized if the

temporary differences are probably to be reversed in foreseeable future and it is likely to have taxable income to

offset 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 when

the following conditions are simultaneously met: there is a legal right to settle current income tax assets and

current income tax liabilities on a net basis; the deferred income tax assets and deferred income tax liabilities are

related to income taxes levied by the same tax authority on the same taxable entity or are related to different

taxable entities but are not expected to reverse in the future in each of the periods in which the deferred income

tax assets and deferred income tax liabilities are material; and the taxable entities involved intend to settle current

income tax assets and current income tax liabilities on a net basis. However in each future period in which the

deferred tax assets and deferred tax liabilities are reversed the taxable entity involved intends to either settle the

current income tax assets and current income tax liabilities on a net basis or to acquire the assets and settle the

liabilities 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. A

contract is a lease or contains a lease if one of the parties to the contract has given up the right to control the use of

one 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 the

operating leases except for the short-term leases and low-value leases and recognizes the depreciation expense

and 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-use

assets. This cost includes the initial measurement amount of the lease liability lease payments made on or before

the 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 not

reasonably certain that the ownership of the leasehold property will be obtained at the end of the lease term the

Company 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 is

written 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 the

start date of the lease term. Lease payments include fixed payments and payments that are reasonably certain to be

made when the option to purchase or terminate the lease is exercised. Variable lease payments that are not

covered 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 lease

cannot 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 fixed

periodic rate i.e. the discount rate used by the Company or a revised discount rate and is included in finance

costs.

2. Judgment criteria and accounting treatment for short-term leases and leases of low-value assets as a lessee for

simplified treatment

153Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

For short-term leases with a lease term of no exceeding 12 months and leases where the brand-new value of a

single asset is less than RMB40000 the Company has elected not to recognize right-of-use assets and lease

liabilities and to charge the related rental expenses to current profit or loss or the cost of the related assets on a

straight-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 of

the leased asset as finance leases at the inception of the lease and leases other than these are classified as

operating leases.

(1) Accounting treatment of operating leases

Rental income from operating leases is recognized on a straight-line basis over the lease term. Initial direct

expenses are capitalized and recognized as current income in instalments over the lease term on the same

recognition basis as rental income and variable rentals not included in lease receipts are recognized as rental

income 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 residual

value and its present value is recognized as unrealized lease income by the Company which is recognized as lease

income in each period when the rent is received in the future and the finance lease asset is derecognized. Initial

direct 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 safety

production expenses in accordance with the relevant provisions of the Management Measures for the Provision

and Use of Enterprise Production Safety Costs (C.Z. [2022] No. 136) jointly issued by the Ministry of Finance

and the Ministry of Emergency Management on November 21 2022. Safety production expenses when accrued

are included in costs or current profit or loss of relevant products and in the “Special Reserve” account. When

safety production expenses are used within the prescribed scope and are operating expenses they are directly used

to 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 predetermined

usable state they are recognized as fixed assets. Meanwhile the special reserves are offset as per the cost of

forming fixed assets and an equivalent amount of accumulated depreciation is recognized. The aforesaid fixed

assets 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

(2) Changes in accounting estimates

□Applicable□Not applicable

154Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of

the New Accounting Standards Implemented since 2025

□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 ortaxable service 3% 6% 9% 13%

Urban maintenance and

construction tax Turnover tax payable 7% 5%

Enterprise income tax Taxable income 15% 22% 25%

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 Liaowang Auto Lamp

Chongqing Guinuo Liuzhou Lighting Liuzhou

Foreshine Qingdao Lighting NationStar

Optoelectronics NationStar Semiconductor Fenghua 15%

Semiconductor Hainan Technology Hule Electric

Equipment Germany NationStar and Xinxiang

Company

Indonesia Liaowang 22%

Other subsidiaries 25%

2. Tax Preference

1. The Company passed the review of high-tech enterprises in December 2023 and obtained the certificate of

high-tech enterprise (Certificate No. GR202344003659). According to relevant regulations the Company is

entitled to a reduced enterprise income 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 the

certificate of high-tech enterprise (Certificate No.: GR202244009711). According to the relevant regulations

Zhida Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2022. In

accordance with the relevant provisions of the Enterprise Income Tax Law of the People’s Republic of China

Zhida Company shall prepay the enterprise income tax rate for 2025 at a tax rate of 15%.

155Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

3. Subsidiary Chanchang Company passed the audit of high-tech enterprises in November 2024 and obtained the

certificate of high-tech enterprise (Certificate No.: GR202444001793). According to the relevant regulations

Chanchang Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2024.

4. Subsidiary Haolaite Company passed the review of high-tech enterprises in December 2022 and obtained the

certificate of high-tech enterprise (Certificate No. GR202244003711). According to relevant regulations Haolaite

Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2022. In

accordance with the relevant provisions of the Enterprise Income Tax Law of the People’s Republic of China

Haolaite Company shall prepay the enterprise income tax rate for 2025 at a tax rate of 15%.

5. Subsidiary Liaowang Auto Lamp passed the review of high-tech enterprises in December 2023 and obtained

the certificate of high-tech enterprise (Certificate No. GR202345001098). According to relevant regulations

Nanning Liaowang is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2023.

6. Chongqing Guinuo a wholly-owned subsidiary of Liaowang Auto Lamp enjoys the tax incentives of reducing

and exempting enterprise income tax for the development of western China since January 1 2019 and is entitled

to 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 Liaowang Auto Lamp passed the review of high-tech

enterprise in December 2022 and obtained the certificate of high-tech enterprise (Certificate No.:

GR202245001221). According to relevant regulations Liuzhou Lighting will pay enterprise income tax at a

reduced rate of 15% for three years starting from 2022. In accordance with the relevant provisions of the

Enterprise Income Tax Law of the People’s Republic of China Liuzhou Lighting shall prepay the enterprise

income tax rate for 2025 at a tax rate of 15%.

8. Liuzhou Foreshine a wholly-owned subsidiary of Liaowang Auto Lamp passed the review of high-tech

enterprise in November 2024 and obtained the certificate of high-tech enterprise (Certificate No.:

GR202445000159). According to relevant regulations Liuzhou Fuxuan will pay enterprise income tax at a

reduced rate of 15% for three years starting from 2024.In addition according to the Notice of the Guangxi Zhuang Autonomous Region Department of Finance and the

Guangxi Zhuang Autonomous Region Tax Service of the State Taxation Administration on Clarifying the Policy

on the Partial Exemption of Local Share of Enterprise Income Tax under Certain Circumstances (G.C.S. [2023])

enterprises recognized as high and new technology enterprises during the period from 2021 to 2025 shall be

exempt for five consecutive years starting from the first year of recognition from the portion of enterprise

income tax that is locally shared. According to the above provisions Liuzhou Foreshine is entitled to a 40%

reduction in its payable enterprise income tax.

9. Qingdao Lighting a wholly-owned subsidiary of Liaowang Auto Lamp passed the recognition of high-tech

enterprise on December 2022 and obtained the certificate of high-tech enterprise (Certificate No.:

GR202237100785). According to relevant regulations Qingdao Lighting will pay enterprise income tax at a

reduced rate of 15% for three years starting from 2022. In accordance with the relevant provisions of the

Enterprise Income Tax Law of the People’s Republic of China Qinghai Lighting shall prepay the enterprise

income tax rate for 2025 at a tax rate of 15%.

10. Subsidiary NationStar Optoelectronics passed the recognition of high-tech enterprises in December 2023 and

obtained the certificate of high-tech enterprise (Certificate No. GR202344017343). According to relevant

regulations NationStar Optoelectronics will pay enterprise income tax at a reduced rate of 15% for three years

starting from 2023.

11. NationStar Semiconductor a wholly-owned subsidiary of NationStar Optoelectronics passed the recognition

of high-tech enterprise on November 2024 and obtained the certificate of high-tech enterprise (Certificate No.:

GR202444004544). According to relevant regulations NationStar Semiconductor will pay enterprise income tax

at a reduced rate of 15% for three years starting from 2024.

12. Fenghua Semiconductor a majority-owned subsidiary of NationStar Optoelectronics passed the recognition

of high-tech enterprise on December 2024 and obtained the certificate of high-tech enterprise (Certificate No.:

GR202444013633) According to relevant regulations Fenghua Semiconductor will pay enterprise income tax at a

reduced rate of 15% for three years starting from 2024.

156Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

13. In October 2024 the subsidiary Hainan Technology obtained the qualification as a High and New Technology

Enterprise and received the High and New Technology Enterprise Certificate (Certificate No.: GR202446000187).According to relevant regulations Hainan Technology is entitled to pay enterprise income tax at a reduced rate of

15% for three years starting from 2024.

14. In December 2023 Hule Electrical Equipment a majority-owned subsidiary of Hainan Technology obtained

the qualification as a High and New Technology Enterprise and received the High and New Technology

Enterprise Certificate (Certificate No.: GR202333010552). According to relevant regulations Hule Electrical

Equipment is entitled to pay enterprise income tax at a reduced rate of 15% for three years starting from 2023.

15. In October 2024 the subsidiary Xinxiang Company obtained the qualification as a High and New Technology

Enterprise and received the High and New Technology Enterprise Certificate (Certificate No.: GR202441001673).According to relevant regulations Xinxiang Company is entitled to pay enterprise income tax at a reduced rate of

15% for three years starting from 2024.

16. NationStar Optoelectronics (Germany) a wholly-owned subsidiary of Haolaite Company is registered in

Germany. According to local tax policies it is entitled to an enterprise income tax rate of 15%.

17. Subsidiary Fozhao Huaguang subsidiary Beijing Hangxin and Shanghai Lelaite (indirectly controlled by

subsidiary Hainan Technology) are small and micro enterprises. From January 1 2025 to December 31 2025 in

accordance with the actual conditions of each province autonomous region and municipality directly under the

Central Government and subject to macroeconomic regulation requirements small and micro enterprises may

enjoy a 50% reduction in resource tax urban maintenance and construction tax property tax urban land use tax

stamp duty (excluding stamp duty on securities transactions) farmland occupation tax education surcharge and

local education surcharge.

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 78888.57 40535.66

Bank deposits 1289270845.12 1221721793.26

Other monetary assets (Note 1) 649539702.48 512794818.03

Deposits placed with finance

companies (Note 2) 1131061845.67 1462165277.45

To-be-received interest (Note 3) 14468117.34 12405012.91

Total 3084419399.18 3209127437.31

Of which: Total amount deposited

overseas 53460658.31 32471593.74

157Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Other notes:

Note 1: Other monetary assets were security deposits for notes and performance bonds pre-sale house payments

as well as investments placed with security firm and the balance with e-commerce platforms of which the securitydeposits for notes performance bonds and pre-sale house payment were restricted assets (see “31. Assets withRestricted Ownership or Right of Use” in Note “VII Notes to Consolidate Financial Statements”).Note 2: Deposits placed with finance companies refer to the amount deposited with Guangdong Rising Finance

Co. Ltd.Note 3: To-be-received interest was interest receivable on undue bank deposits and term deposits as at the end of

the Reporting Period which is not recognized 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 2288376.68 43649820.47

Of which:

Wealth management products 41661005.56

Equity instrument investments 2192776.68 1988814.91

Others 95600.00

Of which

Total 2288376.68 43649820.47

3. Derivative Financial Assets

Naught

4. Notes Receivable

(1) Notes Receivable Listed by Category

Unit: RMB

Item Ending balance Beginning balance

Bank acceptance bill 670457905.01 928954818.05

Commercial acceptance bill 121580149.33 68326252.16

Total 792038054.34 997281070.21

158Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(2) Disclosure by Withdrawal Methods for Bad Debts

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying value Carrying value

Amount Proportion Amount Withdrawalproportion Amount Proportion Amount

Withdrawal

proportion

Accounts

receivable for

which bad debt

provision accrued

separately

Notes receivable

withdrawn bad debt 794523312.64 100.00% 2485258.30 0.31% 792038054.34 998684179.44 100.00% 1403109.23 0.14% 997281070.21

provision by group

Of which:

Bank acceptance

bill 670457905.01 84.38% 0.00 0.00% 670457905.01 928954818.05 93.02% 0.00 0.00% 928954818.05

Commercial

acceptance bill 124065407.63 15.62% 2485258.30 2.00% 121580149.33 69729361.39 6.98% 1403109.23 2.01% 68326252.16

Total 794523312.64 100.00% 2485258.30 0.31% 792038054.34 998684179.44 100.00% 1403109.23 0.14% 997281070.21

159Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Withdrawal of bad debt provision by group: Bank acceptance bill and commercial acceptance bill.Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

Within one year 794523312.64 2485258.30 0.31%

Total 794523312.64 2485258.30

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

Changes in the Reporting Period

Category Beginning Endingbalance balance

Withdrawn Reversal orrecovery Write-off Others

Notes

receivable

withdrawn

bad debt 1403109.23 1082149.07 2485258.30

provision by

group

Total 1403109.23 1082149.07 2485258.30

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 447552986.75

Total 447552986.75

160Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(5) Notes Receivable which Had Endorsed by the Company or Had Discounted and Had not Due on the

Balance Sheet Date at the Period-end

Unit: RMB

Item Amount of recognition termination Amount of not recognitionat the period-end termination at the period-end

Bank acceptance bill 63254781.83 382982915.48

Commercial acceptance bill 395015.00

Total 63254781.83 383377930.48

(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) 2074228964.74 1958007653.74

One to two years 181832703.00 160745414.76

Two to three years 63067902.06 75845969.51

Over three years 119581860.75 116132806.59

Three to four years 66613570.91 74345304.65

Four to five years 19241607.01 8949462.00

Over five years 33726682.83 32838039.94

Total 2438711430.55 2310731844.60

161Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(2) Disclosure by Withdrawal Methods for Bad Debts

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying value Carrying value

Amount Proportion Amount Withdrawalproportion Amount Proportion Amount

Withdrawal

proportion

Accounts

receivable for

which bad

debt provision 98723680.62 4.05% 72460102.73 73.40% 26263577.89 146052307.68 6.32% 72871642.18 49.89% 73180665.50

accrued

separately

Accounts

receivable

withdrawal of

bad debt 2339987749.93 95.95% 122861136.52 5.25% 2217126613.41 2164679536.92 93.68% 112192910.46 5.18% 2052486626.46

provision by

portfolio

Of which:

(1) Business

portfolio of

general 1527343308.58 62.63% 105723794.99 6.92% 1421619513.59 1470492300.88 63.64% 97526907.72 6.63% 1372965393.16

lighting and

auto lamps

(2) Business

portfolio of

LED 812644441.35 33.32% 17137341.53 2.11% 795507099.82 694187236.04 30.04% 14666002.74 2.11% 679521233.30

packaging and

components

162Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying value Carrying value

Amount Proportion Amount Withdrawal Amount Proportion Amount Withdrawalproportion proportion

Total 2438711430.55 100.00% 195321239.25 8.01% 2243390191.30 2310731844.60 100.00% 185064552.64 8.01% 2125667291.96

Category name of bad debt provision accrued by item: Accounts receivable for which bad debt provision accrued separately.There is no significant individual provision for bad debts for accounts receivable in the current period.

163Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Withdrawal of bad debt provision by group: (1) Business portfolio of general lighting and auto lamps; (2) business

portfolio of LED packaging and components.Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

(1) Business portfolio of

general lighting and auto 1527343308.58 105723794.99 6.92%

lamps

(2) Business portfolio of

LED packaging and 812644441.35 17137341.53 2.11%

components

Total 2339987749.93 122861136.52

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 Period

Information of bad debt provision withdrawn:

Unit: RMB

Changes in the Reporting Period

Current-

Category Beginning Endingbalance period Reversal balance

Withdrawl recovery of or Write- Others

prior-period recovery off

write-offs

Accounts

receivable

for which

bad debt 1563182.72871642.18 1151642.82 72460102.73

provision 27

accrued

separately

Accounts

receivable

withdrawa 78240.7112192910.46 10532475.78 213991.00 122861136.52

l of bad 2

debt

provision

164Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

by

portfolio

Total 1563182. 78240.7185064552.64 11684118.60 213991.00 195321239.2527 2

Note: Others refer to bad debt provision accrued for the increased accounts receivable of Beijing Airtrust due to

combination in the current period.Of which bad debt provision collected or reversed with significant amount: Naught.

(4) Accounts Receivable with Actual Verification during the Reporting Period

Unit: RMB

Item Amount verified

Accounts receivable with actual verification 78240.72

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 RMB 78240.72 and the bad debt

provision was RMB 78240.72. The approval procedure was performed in accordance with provisions of the bad

debt management system of the Company.

(5) Top Five Accounts Receivable and Contract Assets in Ending Balance Collected According to the

Arrears Party

Unit: RMB

Ending balance

Proportion to of bad debt

Ending balance Ending balance Ending balance total ending provision ofName of the

entity of accounts of contract

of accounts balance of accounts

receivable assets receivable and accounts receivable andcontract assets receivable and impairment

contract assets provision for

contract assets

No. 1 114168148.32 114168148.32 4.68% 3425044.45

No. 2 102522801.14 102522801.14 4.20% 3075684.03

No. 3 89508216.10 89508216.10 3.67% 6383095.03

No. 4 56240105.00 56240105.00 2.30% 1794826.93

No. 5 55114971.26 55114971.26 2.26% 1103099.43

Total 417554241.82 417554241.82 17.11% 15781749.87

165Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

6. Contract Assets

(1) List of Contract Assets

Unit: RMB

Ending balance Beginning balance

Item

Carrying Bad debt Carrying Carrying Bad debt Carrying

amount provision value amount provision value

Contract

assets 2253362.60 1126681.30 1126681.30 3380043.90 1690021.95 1690021.95

Total 2253362.60 1126681.30 1126681.30 3380043.90 1690021.95 1690021.95

(2) Significant Changes in the Amount of Carrying Value and the Reason in the Reporting Period

There was no significant change in the book value during the Reporting Period.

166Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(3) Disclosure by Withdrawal Methods for Bad Debts

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying Carrying

Withdrawal valueAmount Proportion Amount Amount Proportion Amount Withdrawal

value

proportion proportion

Bad debt

provision accrued

separately

Withdrawal of bad

debt provision by 2253362.60 100.00% 1126681.30 50.00% 1126681.30 3380043.90 100.00% 1690021.95 50.00% 1690021.95

group

Of which:

Business portfolio

of general lighting 2253362.60 100.00% 1126681.30 50.00% 1126681.30 3380043.90 100.00% 1690021.95 50.00% 1690021.95

and auto lamps

Total 2253362.60 100.00% 1126681.30 50.00% 1126681.30 3380043.90 100.00% 1690021.95 50.00% 1690021.95

167Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Withdrawal of bad debt provision by group: Business portfolio of general lighting and auto lamps.Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

Business portfolio of

general lighting and auto 2253362.60 1126681.30 50.00%

lamps

Total 2253362.60 1126681.30

Notes:

Please refer to Note V-16. Contract Assets

Withdrawal 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

Reversal or recovery

Current Period in the Reporting Verification ReasonPeriod

Provision for

impairment of -563340.65

contract assets

Total -563340.65

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 380276549.15 352694866.89

168Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Total 380276549.15 352694866.89

(2) Disclosure by Withdrawal Methods for Bad Debts

Naught.The basis for the division of each phase and the withdrawal proportion of bad debt provision

Please refer to Note V-13. Accounts Receivable for details.Explanation of significant changes in the accounts receivable financing book balance with changes in loss

reserves in the current period: Naught

(3) Bad Debt Provision Withdrawal Reversed or Recovered in the Current Period

Naught.

(4) Accounts Receivable Financing Pledged by the Company at the Period-end

Unit: RMB

Item Amount pledged at the period-end

Bank acceptance bill 7600759.79

Total 7600759.79

(5) Accounts Receivable Financing Which Had Endorsed by the Company or Had Discounted and Had

not Due on the Balance Sheet Date at the Period-end

Unit: RMB

Item Amount of recognition termination Amount of not recognitionat the period-end termination at the period-end

Bank acceptance bill 543860638.36

Total 543860638.36

(6) Accounts Receivable Financing with Actual Verification for the Current Period

Naught.

(7) The Changes of Accounts Receivable Financing in the Reporting Period and the Changes in Fair

Value

Naught.

169Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(8) Other Notes

Naught.

8. Other Receivables

Unit: RMB

Item Ending balance Beginning balance

Other receivables 69553723.47 70524265.25

Total 69553723.47 70524265.25

(1) Interest Receivable

Naught.

(2) Dividends Receivable

Naught.

(3) Other Receivables

1) Other Receivables Disclosed by Account Nature

Unit: RMB

Nature Ending carrying balance Beginning carrying balance

Other intercourse 82431083.68 77640342.04

Performance bond 24791707.62 25244600.82

Staff borrow and petty cash 4223606.87 3138997.42

Rent water & electricity fees 1837756.79 1314614.82

VAT export tax refunds 5974168.41

Total 113284154.96 113312723.51

2) Disclosure by Aging

Unit: RMB

Ageing Ending carrying balance Beginning carrying balance

170Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Ageing Ending carrying balance Beginning carrying balance

Within one year (including one

year) 41338021.49 51110555.10

One to two years 30283306.99 22389136.32

Two to three years 6766434.76 6564915.91

Over three years 34896391.72 33248116.18

Three to four years 2690801.70 1383400.01

Four to five years 4313935.81 4236860.23

Over five years 27891654.21 27627855.94

Total 113284154.96 113312723.51

3) Disclosure by Withdrawal Methods for Bad Debts

□Applicable □ Not applicable

Unit: RMB

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying Carrying

value value

Amount Proportion Amount Withdrawal Withdrawalproportion Amount Proportion Amount proportion

Bad debt

provision 30288 302880 304090 304090

separately 26.74% 100.00% 26.84% 100.00%040.46 40.46 96.04 96.04

accrued

Withdrawal of

bad debt 82996 134423 695537 829036 123793 705242

provision by 73.26% 16.20% 73.16% 14.93%114.50 91.03 23.47 27.47 62.22 65.25

group

Among which:

Other

receivables of

bad debt

provision 82996 134423 695537 829036 123793 705242

withdrawn by 73.26% 16.20% 73.16% 14.93%114.50 91.03 23.47 27.47 62.22 65.25

credit risk

characteristic

portfolio:

171Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Ending balance Beginning balance

Category Carrying amount Bad debt provision Carrying amount Bad debt provision

Carrying Carrying

Withdrawal value Withdrawal valueAmount Proportion Amount proportion Amount Proportion Amount proportion

Total 113284 437304 695537 113312 427884 705242100.00% 38.60% 100.00% 37.76%

154.9631.4923.47723.5158.2665.25

Category name of bad debt provision accrued by item: Bad debt provision separately accrued.Significant accounts receivable for which bad debts are accrued separately:

Unit: RMB

Beginning balance Ending balance

Name

Carrying Provision for Carrying Bad debt Withdrawal Reason for

amount impairment amount provision proportion withdrawal

Customer A 20000000.00 20000000.00 20000000.00 20000000.00 100.00% Less likely tobe recovered

Total 20000000.00 20000000.00 20000000.00 20000000.00

Withdrawal of bad debt provision by group: Other receivables of bad debt provision withdrawn by credit risk

characteristic portfolio.Unit: RMB

Ending balance

Name

Carrying amount Bad debt provision Withdrawal proportion

Other receivables of bad

debt provision withdrawn

by credit risk 82996114.50 13442391.03 16.20%

characteristic portfolio

Total 82996114.50 13442391.03

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

172Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Expected credit loss Expected loss in theduration (credit Expected loss in theof the next 12 impairment not duration (creditmonths occurred) impairment occurred)

Balance of January

120251522971.9010819330.4730446155.8942788458.26

Balance of January

1 2025 in the

current period

Withdrawal of the

current period -333607.19 1353073.06 -121055.58 898410.29

Amount written-off

for the current 31213.89 12349.05 43562.94

period

Balance of June 30

20251220578.6012184752.5830325100.3143730431.49

The basis for the division of each phase and the withdrawal proportion of bad debt provision

Please 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

Changes in the Reporting Period

Category Beginning Endingbalance Reversal or Charged- balanceWithdrawal recovery off/Written- Othersoff

Other

receivables 42788458.26 898410.29 43562.94 43730431.49

Total 42788458.26 898410.29 43562.94 43730431.49

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

Naught.

173Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

6) Top 5 of the Ending Balance of the Other Receivables Collected according to the Arrears Party

Unit: RMB

Proportion to total Ending

Name of the Nature Ending balance Ageing ending balance of balance ofentity other receivables bad debt

(%) provision

No. 1 Otherintercourse 20000000.00 Over five years 17.65% 20000000.00

No. 2 Other Within twointercourse 15883375.00 years 14.02% 1588337.50

No. 3 Otherintercourse 14840849.57 Within one year 13.10% 445225.49

No. 4 VAT export tax Within tworefunds 10000000.00 years 8.83% 1000000.00

No. 5 Performance Within threebond 5000000.00 years 4.41% 5000000.00

Total 65724224.57 28033562.958.01%

9

7) Presentation in Other Receivables Due to the Centralized Management of Fund

Naught.

9. Prepayments

(1) Listed by Aging

Unit: RMB

Ending balance Beginning balance

Ageing

Amount Proportion Amount Proportion

Within one year 24889681.78 76.09% 18587036.85 76.11%

One to two years 3300051.28 10.09% 2101361.07 8.61%

Two to three years 2540825.57 7.77% 1640558.43 6.72%

Over three years 1980342.77 6.05% 2090822.77 8.56%

Total 32710901.40 24419779.12

174Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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

Unit: RMB

Name of the Relationship with the Ending balance Ageing Proportion to totalentity Company prepayments (%)

No. 1 Unrelated party 2192566.06 Within four years 6.70%

No. 2 Unrelated party 2024786.17 Within one year 6.19%

No. 3 Unrelated party 1080492.13 Within one year 3.30%

No. 4 Unrelated party 961670.98 Within one year 2.94%

No. 5 Unrelated party 814300.00 Within one year 2.49%

Total 7073815.34 21.62%

10. Inventory

Whether the Company needs to comply with disclosure requirements for real estate industry

No

(1) Category of Inventory

Unit: RMB

Ending balance Beginning balance

Falling price Falling price

Item reserves of reserves of

Carrying inventory or Carrying Carrying inventory or Carrying

amount depreciation value amount depreciation value

reserves of contract reserves of contract

performance cost performance cost

Raw 340191533. 3182511 314930694 2923956

materials 21940374.41 22535048.5578 59.37 .77 46.22

Goods in 213986865. 2139868 229665213 2296652

process 68 65.68 .27 13.27

Inventory 125283389 1113162 12491307 1122784

goods 139671260.73 126346042.261.25 630.52 00.18 657.92

175Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Ending balance Beginning balance

Falling price Falling price

Item reserves of reserves of

Carrying inventory or Carrying Carrying inventory or Carrying

amount depreciation value amount depreciation value

reserves of contract reserves of contract

performance cost performance cost

Goods in 273854319. 2728146 291148176 2633317

transit 1039688.86 27816444.6748 30.62 .11 31.44

Semi-

finished 103588159. 1009494 103638782 10114642638690.27 2492313.51

goods 96 69.69 .42 68.91

Low-value 2637603 1515044.7 1515044.consumables 2637603.96 .96 4 74

Others 3955089 14660598. 14660593955089.24 .24 88 8.88

Total 219104746 2025757 22046892 2025499165290014.27 179189848.993.35 449.08 10.37 361.38

(2) Data Resources Recognized as Inventory

Naught.

(3) Falling Price Reserves of Inventory and Depreciation Reserves of Contract Performance Cost

Unit: RMB

Increase Decrease

Item Beginning Endingbalance balance

Withdrawal Others Reversal orwrite-off Others

Raw

materials 22535048.55 676683.67 1271357.81 21940374.41

Inventory

goods 126346042.26 22805561.00 9480342.53 139671260.73

Goods in

transit 27816444.67 494490.58 27271246.39 1039688.86

Semi-

finished 2492313.51 146376.76 2638690.27

goods

Total 179189848.99 24123112.01 38022946.73 165290014.27

176Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Note: In the amount reversed or charged off in the current period the amount reversed was RMB 1778010.83

and the amount charged off was RMB 36244935.90.Provision for depreciation in value of inventories by portfolio

Naught.Provision standards for depreciation in value of inventories by group

Please refer to Note V-17. Inventory.

(4) Notes to the Ending Balance of Inventories Including Capitalized Borrowing Expense

Naught

(5) Amortization Amount of Contract Performance Cost during the Reporting Period

Naught

11. Held-for-Sale Assets

Unit: RMB

Ending

Item carrying Depreciation

Ending Estimated

carrying Fair value disposal Estimated

balance reserves value expense disposal time

Houses

buildings and

land involved 17147339.17147339.84 165208303.00 55718333.95 December

in 84 31 2025

expropriation

Total 17147339.17147339.84 165208303.00 55718333.9584

Other notes:

Note: For details see Part VIII-XVIII. Other Major Events-8. Other: “Demolition Matters of Nanjing Fozhao” of

this Report. The estimated disposal costs include employee resettlement fees compensation for the termination of

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

Input tax of VAT to be certified and

deducted 130072096.20 125298564.45

177Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Large-value bank certificates of

deposit 281243990.34 130975312.95

Advance payment of enterprise income

tax 1544945.99 2524237.91

Others 1965878.03 2486661.54

Total 414826910.56 261284776.85

14. Investments in Debt Obligations

Naught

178Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

15. Other Investments in Debt Obligations

(1) List of Other Investments in Debt Obligations

Unit: RMB

Accumulated

Change in impairment

Item Beginning Accrued Interest fair value in

Accumulated

balance interest adjustment the Reporting Ending balance Cost changes in fair

provision

value recognized in other

Note

Period comprehensive

income

Purchase held-to-

maturity Large deposit

investments in 417634469.18 6021698.99 423656168.17 400000000.00 certificate of a

2023 bank

Purchase held-to-

maturity Large deposit

investments in 722388394.54 9273150.68 731661545.22 707000000.00 certificate of a

2024 bank

Total 1140022863.72 15294849.67 1155317713.39 1107000000.00

Changes in the impairment provision for other investments in debt obligations during the current period

Naught.

179Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(2) Significant Other Investments in Debt Obligations at the Period-end

Unit: RMB

Ending balance Beginning balance

Item

Par value Coupon Actual Maturity date Overdue Coupon Actual Overduerate interest rate principal Par value rate interest rate Maturity date principal

Large deposit

certificate of 100000000.00 3.30% 3.30% January 6 2026 100000000.00 3.30% 3.30% January 6 2026

Everbright Bank

Large deposit

certificate of Bank of 50000000.00 2.90% 2.90% August 31 2026 50000000.00 2.90% 2.90% August 31 2026

Communications

Large deposit

certificate of 100000000.00 2.90% 2.90% November 32026 100000000.00 2.90% 2.90%

November 3

Everbright Bank 2026

Large deposit

certificate of Bank of 150000000.00 2.95% 2.95% December 12026 150000000.00 2.95% 2.95%

December 1

Guangzhou 2026

Large deposit

certificate of Bank of 212000000.00 2.75% 2.75% February 5 2027 212000000.00 2.75% 2.75% February 5 2027

Guangzhou

Large deposit

certificate of 55000000.00 2.60% 2.60% February 5 2027 55000000.00 2.60% 2.60% February 5 2027

Everbright Bank

Large deposit

certificate of Huaxia 143000000.00 2.60% 2.60% February 5 2027 143000000.00 2.60% 2.60% February 5 2027

Bank

Large deposit 82000000.00 2.60% 2.60% February 5 2027 82000000.00 2.60% 2.60% February 5 2027

certificate of China

180Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Ending balance Beginning balance

Item

Par value Coupon Actual Maturity date Overdue Par value Coupon Actual Maturity date Overduerate interest rate principal rate interest rate principal

Merchants Bank

Large deposit

certificate of Huaxia 150000000.00 2.60% 2.60% March 8 2027 150000000.00 2.60% 2.60% March 8 2027

Bank

Large deposit

certificate of China 35000000.00 2.60% 2.60% March 29 2027 35000000.00 2.60% 2.60% March 29 2027

Merchants Bank

Large deposit

certificate of China 30000000.00 2.60% 2.60% April 30 2027 30000000.00 2.60% 2.60% April 30 2027

Merchants Bank

Total 1107000000.00 1107000000.00

(3) Status of Accrued Depreciation Reserves

Naught.The basis for the division of each phase and the withdrawal proportion of bad debt provision

Please refer to Note V-20. Other Debt Investments.

(4) Status of Other Investments in Debt Obligations Written-off in Current Period

Naught.

181Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

16. Other Equity Instrument Investments

Unit: RMB

Reason for

Gains recorded Losses recorded Accumulative Accumulative Dividend assigning to

Beginning in other in other

gains recorded in losses recorded income measure in fair

Name of project comprehensive comprehensive other in other Ending value and thebalance income in the income in the comprehensive comprehensive

recognized

in current balance changes

current period current period income in the income in the year included in othercurrent period current period comprehensive

income

Gotion High-tech Equity

Co. Ltd. 363579045.02 186135432.31 264486123.71 310890551.46 instruments notheld for trading

Xiamen Bank Equity

Co.Ltd. 323502024.60 65962292.25 236506710.02 9177362.40 389464316.85 instruments notheld for trading

China Guangfa Equity

Bank Co.Ltd. 500000.00 72432.86 500000.00 instruments notheld for trading

Foshan Nanhai

District United

Guangdong New Equity

Light Source 3000000.00 3000000.00 instruments not

Industry held for trading

Innovation Center

Beijing Guangrong

Lianmeng Equity

Semiconductor 6082543.80 6082543.80 instruments not

Lighting Industry held for trading

Investment Center

182Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Reason for

Gains recorded Losses recorded Accumulative Accumulative Dividend assigning to

in other in other gains recorded in losses recorded income measure in fair

Name of project Beginning comprehensive comprehensive other in other Ending value and thebalance income in the income in the comprehensive comprehensive

recognized balance changes

current period current period income in the income in the

in current

year included in othercurrent period current period comprehensive

income

(L.P.)

Guangdong Rising Equity

Finance Co. Ltd. 30000000.00 477925.41 30000000.00 instruments notheld for trading

Rising Baijianwan

High-Quality

Development

Industry Equity

Investment Fund 7320000.00 instruments not

Partnership held for trading

(Limited

Partnership)

Total 726663613.42 252097724.56 500992833.73 9727720.67 747257412.11

Derecognition in the current period

Naught.Disclosure of non-trading equity instrument investment by items

Unit: RMB

183Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amount of other Reason for assigning to Reason for other

Name of project Dividend income Accumulative Accumulative comprehensive

measure in fair value and

the changes included in comprehensiverecognized gains losses income transferred

to retained earnings other comprehensive

income transferred

income to retained earnings

Not satisfied with the

Gotion High-tech Co. Ltd. 264486123.71 171881788.23 condition of trading equity Sales of shares

instrument

Not satisfied with the

Xiamen Bank Co. Ltd. 9177362.40 236506710.02 condition of trading equity Not applicable

instrument

Beijing Guangrong

Lianmeng Semiconductor Not satisfied with the

Lighting Industry Investment 1505569.32 condition of trading equity Not applicable

Center (L.P.) instrument

Guangdong Rising Finance Not satisfied with the

Co. Ltd. 477925.41 1122913.74 condition of trading equity Not applicableinstrument

Total 9655287.81 503621316.79 171881788.23

Other notes:

1. NationStar Optoelectronics is a limited partner of Beijing Guangrong Lianmeng Semiconductor Lighting Industry Investment Center (Limited Partnership). As at

June 30 2025 NationStar Optoelectronics has received a total distribution of principal and interest amounting to RMB 5423025.52 from Beijing Guangrong

Lianmeng Semiconductor Lighting Industry Investment Center (Limited Partnership). The accumulated principal repaid is RMB3917456.20. After partial recovery

of the investment NationStar Optoelectronics holds a 3.98% equity stake in the partnership.

2. NationStar Optoelectronics is a limited partner in Guangdong Rising Baiqianwan High-Quality Development Industry Investment Fund Partnership (Limited

Partnership) holding a 2.24% stake corresponding to a subscribed capital contribution of RMB11.2 million. As of June 30 2025 NationStar Optoelectronics had

paid in RMB7.32 million.

184Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

17. Long-term Receivables

Naught.

18. Long-term Equity Investment

Unit: RMB

Increase/decrease

Beginning Beginning Gains and

balance balance of Cash Ending balance

Ending

Investee losses Adjustment of Withdrawal balance of(carrying impairment (carryingAdditional Reduced recognized other Changes bonus or of

value) provision value)

impairment

investment investment under the comprehensive of other profits impairment Others provision

equity income equity announcedto issue provisionmethod

I. Joint Ventures

II. Associated Enterprises

Shenzhen

Primatronix

(Nanho) 180300594.89 646719.77 180947314.66

Electronics

Ltd.Sub-total 180300594.89 646719.77 180947314.66

Total 180300594.89 646719.77 180947314.66

185Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 impairment

tests in prior years or external information

Naught.The reason for the discrepancy between the information used in the Company’s impairment tests in prior years

and the actual situation of those years

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 Construction inbuildings Land use right Progress Total

I. Original carrying

value

1. Beginning balance 822894661.93 61486213.33 884380875.26

2. Increased amount of

the period 53799926.84 53799926.84

(1) Outsourcing

(2) Transfer from

inventories/fixed

assets/construction in 53799926.84 53799926.84

progress

(3) Increase for

business combination

3. Decreased amount of

the period 503561.13 503561.13

(1) Disposal

186Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Houses and Land use right Construction inbuildings Progress Total

(2) Other transfer 503561.13 503561.13

4. Ending balance 876191027.64 61486213.33 937677240.97

II. Accumulative

depreciation and

accumulative

amortization

1. Beginning balance 77917683.10 12976146.14 90893829.24

2. Increased amount of

the period 17913167.15 1108124.73 19021291.88

(1) Withdrawal or

amortization 16011084.84 1108124.73 17119209.57

(2) Transfer from

inventories/fixed

assets/construction in 1902082.31 1902082.31

progress

3. Decreased amount of

the period 121873.78 121873.78

(1) Disposal

(2) Other transfer 121873.78 121873.78

4. Ending balance 95708976.47 14084270.87 109793247.34

III. Depreciation

reserves

1. Beginning balance

2. Increased amount of

the period

(1) Withdrawal

3. Decreased amount of

the period

(1) Disposal

(2) Other transfer

187Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Houses andbuildings Land use right

Construction in

Progress Total

4. Ending balance

IV. Carrying value

1. Ending carrying

value 780482051.17 47401942.46 827883993.63

2. Beginning carrying

value 744976978.83 48510067.19 793487046.02

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 impairment

tests in prior years or external information

Naught.The reason for the discrepancy between the information used in the Company’s impairment tests in prior years

and the actual situation of those years

Naught.

(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 at December 2025 the relevant property certificates for the LED Workshop R&D Workshop 18 some Hainan

Fuli parking spaces and the leased portion of the Hainan production base are still in progress. The Company

believes that obtaining such property certificates is not subject to any substantive legal obstacles and has no

significant adverse impact on the Company’s normal operations.

21. Fixed Assets

Unit: RMB

Item Ending balance Beginning balance

Fixed assets 3571748769.66 3646134662.80

Disposal of fixed assets 526992.02 459543.24

188Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Total 3572275761.68 3646594206.04

(1) List of Fixed Assets

Unit: RMB

Buildings

Item and Machinery Transportatio Electronic Other (Note

structures equipment n equipment equipment 1)

Total

I. Original

carrying value

1. Beginning 2446766384. 5356958204. 8027338334.

balance 41393466.76 82849592.26 99370685.9414 94 04

2. Increased

amount of the 25094628.33 154385555.00 495044.25 4310575.63 2386563.79 186672367.00

period

(1) Purchase 24326613.99 18388373.99 495044.25 3285319.53 447132.73 46942484.49

(2) Transfer from

Construction in 218383.68 135568512.16 877629.20 1896971.37 138561496.41

progress

(3) Increase for

business 147626.90 147626.90

combination

(4) Other (Note

2)549630.66428668.8542459.691020759.20

3. Decreased

amount of the 7558964.37 3599608.52 6327.53 492852.54 506308.72 12164061.68

period

(1) Disposal or

scrap 24254.78 3504923.58 2669.47 21589.00 452239.42 4005676.25

(2) Equipment

transformation 51282.05 51282.05

(3) Other (Note

2)7534709.5994684.943658.06471263.542787.258107103.38

4. Ending 2464302048. 5507744151. 8201846639.

balance 41882183.48 86667315.35 101250941.0110 42 36

II. Accumulated

189Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Buildings

Item and Machinery Transportatio Electronic Other (Note

structures equipment n equipment equipment 1)

Total

amortization

1. Beginning 3482012719. 4372821401.

balance 722456586.96 29416209.26 59344753.72 79591132.1628 38

2. Increased

amount of the 55795012.28 189649936.18 1733624.94 5325667.39 2672338.12 255176578.91

period

(1) Withdrawal 55673138.50 189242700.73 1733624.94 5231533.42 2632001.41 254512999.00

(2) Increase for

business 94133.97 94133.97

combination

(3) Other (Note

2)121873.78407235.4540336.71569445.94

3. Decreased

amount of the 1936895.05 3372740.41 3621.48 468647.14 500476.37 6282380.45

period

(1) Disposal or

scrap 14807.54 3336481.43 20941.33 446947.77 3819178.07

(2) Equipment

transformation 50769.23 50769.23

(3) Other (Note

2)1922087.5136258.983621.48447705.812759.372412433.15

4. Ending 3668289915. 4621715599.

balance 776314704.19 31146212.72 64201773.97 81762993.9105 84

III. Depreciation

reserves

1. Beginning

balance 8375870.55 3454.52 2944.79 8382269.86

2. Increased

amount of the

period

(1) Withdrawal

3. Decreased

amount of the

190Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Buildings

Item and Machinery Transportatio Electronic Other (Noteequipment n equipment equipment 1) Totalstructures

period

(1) Disposal or

scrap

4. Ending

balance 8375870.55 3454.52 2944.79 8382269.86

IV. Carrying

value

1. Ending 1687987343. 1831078365. 3571748769.

carrying value 10735970.76 22462086.86 19485002.3191 82 66

2. Beginning 1724309797. 1866569615. 3646134662.

carrying value 11977257.50 23501384.02 19776608.9918 11 80

Note 1: Fixed Assets - Other refer to cooling system and sewage treatment station of NationStar Optoelectronics

and instruments and implement of Liaowang Auto Lamp.Note 2: Changes in the original carrying value and accumulated amortization are mainly due to the addition of

ancillary facilities to buildings and structures reclassifications between investment property and fixed assets due

to changes in building usage during the current period and outward transfer of input VAT during the current

period.

(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 Energy Saving Lamp Workshop 2 Glass Workshop 8 Glass Workshop 9 Fluorescent

Lamp Workshop Standard Workshop A Hainan Production Base (self-use part) Fuwan Employee Village

Family Dormitory Buildings 2-6 Family Dormitory Building 8 Fuwan Industrial Park Employee Village

Dormitory Buildings 01-04 Fuwan Employee Village Dormitory Buildings A 2 3 5 6 7 10 to 13 and

Employee Apartment Buildings 1-4 have been completed and put into use and carried forward fixed assets. As at

June 30 2025 the relevant property certificates are still in progress. The Company believes that obtaining such

property certificates is not subject to any substantive legal obstacles and has no significant adverse impact on the

Company’s normal operations.

(5) Impairment Test of Fixed Assets

□Applicable□Not applicable

191Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(6) Proceeds from Disposal of Fixed Assets

Unit: RMB

Item Ending balance Beginning balance

Equipment 526992.02 459543.24

Total 526992.02 459543.24

22. Construction in Progress

Unit: RMB

Item Ending balance Beginning balance

Construction in progress 293945488.06 263601705.89

Total 293945488.06 263601705.89

(1) List of Construction in Progress

Unit: RMB

Ending balance Beginning balance

Item

Carrying Depreciation Carrying value Carrying Depreciationamount reserves amount reserves Carrying value

Construction

in progress 295540307.20 1594819.14 293945488.06 265196525.03 1594819.14 263601705.89

Total 295540307.20 1594819.14 293945488.06 265196525.03 1594819.14 263601705.89

(2) Changes in Significant Construction in Progress during the Reporting Period

Unit: RMB

Proportion Of

of which:Amount Capitalizati

Beginnin Increas Transferr Other

accumulati Accumulat

Name of ed ed in decrease Ending ve Job ive amount

of on rate of

project Budget g amoun fixed d balanc investment schedu of interest

capitalise interests Capital

balance t assets amounts e in le capitalizati

d for the resources

constructio on interests Reporting

ns to for the Period

budget Reporting Period

The 1714 203811 12037 756058 111871 23739 45.4045.40% 645610.61 Self-

Project 54670 312.45 9063. 28.61 54.31 7393. % financing

192Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Proportion Of

of which:

Increas Transferr Other accumulati Accumulat

Amount Capitalizati

Name of Beginnin ed ed in decrease Ending ve Job ive amount

of on rate of

capitalise interests Capital

project Budget g amoun fixed d balanc investment schedu of interestbalance d for the resourcest assets amounts e in le capitalizaticonstructio on interests Reporting

ns to for the Period

budget Reporting Period

of the 0.00 88 41 and

Geely borrowing

Industria

l Park

17141203723739

Total 203811 756058 11187154670 9063. 7393. 645610.61

312.4528.6154.31

0.008841

(3) List of the Withdrawal of the Depreciation Reserves for Construction in Progress

Naught.

(4) Impairment Test of Construction in Progress

□Applicable□Not applicable

(5) Engineering Materials

Naught.

23. Productive Living Assets

Naught.

24. Oil and Gas Assets

Naught.

25. Right-of-use Assets

(1) List of Right-of-use Assets

Unit: RMB

Item Houses and Machinerybuildings equipment Other Total

I. Original carrying value

1. Beginning balance 31539171.10 1096398.96 75471.70 32711041.76

193Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Houses and Machinerybuildings equipment Other Total

2. Increased amount of the period 1249716.67 1249716.67

(1) Leased in 1249716.67 1249716.67

3. Decreased amount of the period 1054446.31 1054446.31

(1) Disposal 1054446.31 1054446.31

4. Ending balance 31734441.46 1096398.96 75471.70 32906312.12

II. Accumulated amortization

1. Beginning balance 9940040.61 383976.64 44025.17 10368042.42

2. Increased amount of the period 5099604.70 274099.74 18867.90 5392572.34

(1) Withdrawal 5099604.70 274099.74 18867.90 5392572.34

3. Decreased amount of the period 994263.36 994263.36

(1) Disposal 994263.36 994263.36

4. Ending Balance 14045381.95 658076.38 62893.07 14766351.40

III. Depreciation reserves

1. Beginning balance

2. Increased amount of the period

(1) Withdrawal

3. Decreased amount of the period

(1) Disposal

4. Ending balance

IV. Carrying value

1. Ending carrying value 17689059.51 438322.58 12578.63 18139960.72

2. Beginning carrying value 21599130.49 712422.32 31446.53 22342999.34

194Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(2) Impairment Test of Right-of-use Assets

□Applicable□Not applicable

26. Intangible Assets

(1) List of Intangible Assets

Unit: RMB

Item Land use Non-patent Otherright Patent technology Software Trademark (Note) Total

I. Original carrying value

1. Beginning balance 369823060 38099524. 8232155 27020000.0 3470000.0 5207341.63 86 7.78 0 0 43.27

2. Increased amount of the 5001661. 7952261.

period 2950600.0027 27

(1) Purchase 5001661. 5001661.27 27

(2) Internal R&D

(3) Increase for business 2950600.

combination 2950600.00 00

3. Decreased amount of the

period 1547.17 1547.17

(1) Disposal

(2) Other 1547.17 1547.17

4. Ending balance 369823060 38097977. 8732321 29970600.0 3470000.0 5286848.63 69 9.05 0 0 57.37

II. Accumulated

amortization

1. Beginning balance 72311396. 25018656. 3354632 13214671125833.35 144583.3530 50 4.78 94.28

2. Increased amount of the 6389503. 1281644

period 3858565.3 994694.77 173500.0287 1400176.69 0.672

(1) Withdrawal 6389503. 12816443858565.3 994694.77 173500.0287 1400176.69 0.67

2

3. Decreased amount of the

period 180.53 180.53

195Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Land use Patent Non-patentright technology Software Trademark

Other

(Note) Total

(1) Disposal

(2) Other 180.53 180.53

4. Ending balance 26013170. 3993582 144963076169961. 318083.3774 8.65 2526010.04 54.42

62

III. Depreciation reserves

1. Beginning balance

2. Increased amount of the

period

(1) Withdrawal

3. Decreased amount of the

period

(1) Disposal

4. Ending balance

IV. Carrying value

1. Ending carrying value 293653099 12084806. 4738739 27444589.9 3151916.6 3837218.01 95 0.40 6 3 02.95

2. Beginning carrying value 297511664 13080868. 4877523 25894166.6 3325416.6 3885873.33 36 3.00 5 5 48.99

Note: Intangible Assets—“Other” mainly refers to software copyrights.The proportion of intangible assets formed from the internal R&D of the Company at the period-end to the ending

balance of intangible assets was 0.00%.

(2) Data Resources Recognized as Intangible Assets

Naught.

(3) Land Use Right with Certificate of Title Uncompleted

Naught.

(4) Impairment Test of Intangible Assets

□Applicable□Not applicable

196Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

27. Goodwill

(1) Original Carrying Value of Goodwill

Unit: RMB

Name of the Increase Decrease

invested units

or events Beginning Endingbalance Formed bygenerating balancebusiness Disposal

goodwill combination

Foshan

NationStar

Optoelectronic 405620123.64 405620123.64

s Co. Ltd.Nanning

Liaowang

Auto Lamp 16211469.82 16211469.82

Co. Ltd.Beijing

Airtrust

Aviation 125552.07 125552.07

Technology

Co. Ltd.Total 421831593.46 125552.07 421957145.53

(2) Goodwill Impairment Provisions

Unit: RMB

Name of the Increase Decrease

invested units or Beginning Ending

events generating balance balance

goodwill Withdrawal Disposal

Foshan NationStar

Optoelectronics 142393052. 142393052.68

Co. Ltd. 68

Total 142393052. 142393052.6868

28. Long-term Prepaid Expense

Unit: RMB

197Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Beginning Increased

Amortization

balance amount amount of the

Other decreased Ending balance

period amount

Mould 180708464.33 48318682.13 31204596.70 21037782.33 176784767.43

Expense on

maintenance 64783900.72 17911930.93 14674584.46 1723.46 68019523.73

and decoration

Boarding box 313010.00 103633.88 209376.12

Others 7219120.77 3389160.58 2004605.78 8603675.57

Total 253024495.82 69619773.64 47987420.82 21039505.79 253617342.85

Other notes

Other decrease amount was mainly due to the disposal of molds

29. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Deferred Income Tax Assets that had not Been Off-set

Unit: RMB

Ending balance Beginning balance

Item Deductible Deductible

temporary Deferred income Deferred income

difference tax assets

temporary

difference tax assets

Provision for impairment

of assets 453198893.30 69193986.12 437165619.65 66540210.84

Unrealized profit of

internal transactions 47409166.20 7111374.93 67232648.57 10084897.28

Deductible loss 222913091.73 36729051.10 205026280.47 33375483.69

Depreciation of fixed

assets 41027390.87 6154108.63 45661228.34 6849184.25

Accrued liabilities 26914403.37 4037160.50 27430683.82 4114602.59

Changes in the fair value

of trading financial assets 368641.02 55296.15 636322.31 95448.35

Estimated expense 77864074.81 12884866.41 59384034.04 8907605.11

198Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Lease liabilities and others 31915351.06 5389296.19 34868832.74 5980792.80

Total 901611012.36 141555140.03 877405649.94 135948224.91

(2) Deferred Income Tax Liabilities Had not Been Off-set

Unit: RMB

Ending balance Beginning balance

Item

Taxable temporary Deferred income Taxable temporary Deferred income

difference tax liabilities difference tax liabilities

Assets assessment

appreciation from

business consolidation 146948206.73 22188702.59 151028108.51 22654216.26

not under the same

control

Changes in fair value of

other investments in 495142833.72 74271425.06 445258977.65 66788846.65

equity instruments

Changes in the fair value

of trading financial assets 1043668.13 156550.22 736537.65 110480.65

One-off depreciation of

fixed assets 594843119.81 89226467.98 615396814.10 92309522.12

Right-of-use assets and

others 18771766.87 3461029.56 22342999.38 4058203.61

Total 1256749595.26 189304175.41 1234763437.29 185921269.29

(3) Deferred Income Tax Assets or Liabilities Listed by Net Amount after Off-set

Unit: RMB

Mutual set-off Amount of deferred Mutual set-off Amount of deferredamount of deferred amount of deferred income tax assets or

Item income tax assets income tax assets orliabilities after off- income tax assets liabilities after off-and liabilities at the set at the period-end and liabilities at the set at the period-period-end period-begin begin

Deferred income

tax assets 141555140.03 135948224.91

Deferred income

tax liabilities 189304175.41 185921269.29

199Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(4) List of Unrecognized Deferred Income Tax Assets

Naught.

(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Due in the Following Years

Naught.

30. Other Non-current Assets

Unit: RMB

Ending balance Beginning balance

Item

Carrying Depreciation Carrying Carrying Depreciation Carrying

amount reserves value amount reserves value

Contract assets 467940.84 33626.88 434313.96 389288.95 20492.17 368796.78

Long-term assets to 165522692 103788056.be disposed 165522692.24 103788056.44.24 44

Prepaid long-term

assets acquisition 36085714. 36085714.036085714.00 36085714.00

funds 00 0

Advance payment

for equipment and 51956326. 59359531.651956326.93 59359531.60

project 93 0

Prepayment for

equity acquisition 10000000.00 10000000.00 10000000.00 10000000.00

Others 1161418.91161418.97 1163686.77 1163686.777

Total 255160466 200765785.265194092.98 10033626.88 210786277.76 10020492.17.10 59

Note: The long-term assets expected to be disposed of mainly include the land use rights of the plot at No. 64

Fenjiang North Road which is to be transferred and disposed of as well as the disposal costs of the plot.

31. Assets with Restricted Ownership or Right of Use

Unit: RMB

Period-end Period-beginning

Item

Carrying Carrying Type of Status of Carrying Carrying Type of Status of

amount value restriction restriction amount value restriction restriction

524122497. 524122497. Bill 512340403. 512340403.Monetary 12 12 Restricted

Bill

deposit 99 99 Restricted deposit

200Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Period-end Period-beginning

Item

Carrying Carrying Type of Status of Carrying Carrying Type of Status of

amount value restriction restriction amount value restriction restriction

Assets use guarantee use guarantee

deposit deposit

pre-sale pre-sale

house house

payment payment

etc. etc

Pledge of Pledge of

Pledge bill poolbills Pledge

bill pool

endorsed endorsed bills

Notes 830930917. 830930917. or receivable 951909082. 951909082. or receivable

receivable 23 23 discounted endorsed 20 20 discounted endorsed

but not yet or but not yet or

due discounted discountedand not due and not

due due

Mortgage Mortgage

Fixed 348161016. 207316221.assets 79 86 Pledge

guarantee 348161016. 211977100.of related 79 96 Pledge

guarantee

of related

parties parties

Mortgage Mortgage

Intangible 15551408.0 10263929.8 Pledge guarantee 15551408.0 10341686.8 Pledge guaranteeassets 0 2 of related 0 7 of related

parties parties

Accounts

receivable 25328943.2 25328943.27600759.79 7600759.79 Pledged Pledge of Pledge of

financing bill pool 4 4

Pledged bill pool

Other non-

current Frozen Frozen663.57 663.57 funds 2931.37 2931.37 Frozen

Frozen

assets funds

Frozen

Other debt large-

investment 103309041. 103309041. denominati

s 10 10 oncertificates

of deposit

Total 172636726 158023498 195660282 1815209182.50 9.39 6.69 9.73

201Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

32. Short-term Borrowings

(1) Category of Short-term Borrowings

Unit: RMB

Item Ending balance Beginning balance

Pledged loans 39850000.00

Mortgage loans 8000000.00 28000000.00

Credit borrowings 177042562.45 234995981.93

Acceptance bill discount 14556611.51 4282836.39

Interest from short-term

borrowings 12329.17

Total 199599173.96 307141147.49

Note of the category for short-term loans:

Notes discounted but not yet due at the end of the period do not meet the conditions for derecognition. Therefore

they are recognized as short-term borrowings.

(2) List of the Short-term Borrowings Overdue but not Returned

Naught.

33. Trading Financial Liabilities

Unit: RMB

Item Ending balance Beginning balance

Held-for-trading financial

liabilities 275250.00

Including:

Other 275250.00

Total 275250.00

34. Derivative Financial Liabilities

Naught.

202Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

35. Notes Payable

Unit: RMB

Category Ending balance Beginning balance

Bank acceptance bill 1781207077.08 1930784817.62

Total 1781207077.08 1930784817.62

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 2765954401.30 2781965096.70

Total 2765954401.30 2781965096.70

(2) Significant Accounts Payable Aging over One Year or Overdue

Unit: RMB

Item Ending balance Reason for not repayment or carry-over

Unit A 81073448.55 It has not reached the settlementperiod

Total 81073448.55

37. Other Payables

Unit: RMB

Item Ending balance Beginning balance

Dividends payable 188359258.07

Other payables 480976630.56 495717050.97

Total 669335888.63 495717050.97

203Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(1) Interest Payable

Naught.

(2) Dividends Payable

Unit: RMB

Item Ending balance Beginning balance

Ordinary share dividends 184293387.60

Other 4065870.47

Total 188359258.07

(3) Other Payables

1) Other Payables Listed by Nature

Unit: RMB

Item Ending balance Beginning balance

Transaction amount 208201244.02 208777778.90

Performance bond 85303654.73 96583554.73

Relevant expense of sales 79290940.23 87551768.43

Payments for demolition 34831884.30 34898417.30

Payment for equity transfer 16366572.00 16366572.00

Others 56982335.28 51538959.61

Total 480976630.56 495717050.97

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 79046577.48 It has not reached the settlementperiod

Total 79046577.48

204Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

38. Advances from Customers

(1) List of Advances from Customers

Unit: RMB

Item Ending balance Beginning balance

Advance payments received 265779.84 163623.85

Land reserve payment 13367850.30 13367850.30

Total 13633630.14 13531474.15

(2) Significant Advances from Customers Aging over One Year or Overdue

Naught.

39. Contract Liability

Unit: RMB

Item Ending balance Beginning balance

Advances on sales 142244278.82 119506301.48

Total 142244278.82 119506301.48

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

I. Short-term salary 200892219.93 682061966.06 714249652.25 168704533.74

II. Post-

employment

benefit-defined 1620912.77 71397561.93 71302971.74 1715502.96

contribution plans

III. Termination

benefits 12137955.76 2921356.41 9431301.03 5628011.14

Total 214651088.46 756380884.40 794983925.02 176048047.84

205Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(2) List of Short-term Salary

Unit: RMB

Item Beginning balance Increase Decrease Ending balance

1. Salary bonus

allowance subsidy 197310106.14 592022731.39 623904434.50 165428403.03

2. Employee

welfare 39061.65 33286660.66 33292052.71 33669.60

3. Social insurance 662261.81 29115632.55 29176810.23 601084.13

Of which: Medical

insurance premiums 566202.62 26359592.93 26423567.44 502228.11

Work-related injury

insurance 96059.19 2756039.62 2753242.79 98856.02

4. Housing fund 509881.17 21867279.88 21778251.34 598909.71

5. Labor union

budget and

employee education 2370909.16 5769661.58 6098103.47 2042467.27

budget

Total 200892219.93 682061966.06 714249652.25 168704533.74

(3) List of Defined Contribution Plans

Unit: RMB

Item Beginning balance Increase Decrease Ending balance

1. Basic pension

benefits 1165716.90 65724442.96 65684954.97 1205204.89

2. Unemployment

insurance 37636.78 2648111.22 2646728.33 39019.67

3. Annuity 417559.09 3025007.75 2971288.44 471278.40

Total 1620912.77 71397561.93 71302971.74 1715502.96

Other notes:

The Company participates in the scheme of pension insurance and unemployment insurance established by

government agencies as required. According to the scheme fees are paid to it on a monthly basis and at the rate of

stipulated by government agencies. In addition to the above monthly deposit fees the Company no longer

206Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

assumes further payment obligations. Corresponding expenses are recorded into the current profits or losses or the

cost of related assets when incurred.

41. Taxes Payable

Unit: RMB

Item Ending balance Beginning balance

VAT 22061381.45 20024672.48

Corporate income tax 38596999.98 70202563.56

Personal income tax 1885724.05 10342055.07

City maintenance and construction

tax 2128620.26 1622938.34

Property tax 8056557.86 1631337.72

Land use tax 2412804.10 313705.15

Stamp tax 1437782.97 1757727.88

Education surcharge 1098284.53 695000.38

Local education surcharge 602863.68 458383.14

Others 392113.13 36776.67

Total 78673132.01 107085160.39

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 146435517.57 112386714.93

Current portion of lease liabilities 8514743.95 8188073.88

Total 154950261.52 120574788.81

207Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

44. Other Current Liabilities

Unit: RMB

Item Ending balance Beginning balance

Reversed notes that are endorsed and

undue 383377930.48 368196176.60

Endorsed but not yet terminated

recognition 1050000.00 1050000.00

Pending changeover output VAT and

others 10331350.17 7910035.80

Total 394759280.65 377156212.40

45. Long-term Borrowings

(1) Category of Long-term Borrowings

Unit: RMB

Item Ending balance Beginning balance

Mortgage loans 38731836.84 39680861.51

Credit borrowings 239143868.34 295287783.96

Less: Current portion of long-term

borrowings 146435517.57 112386714.93

Total 131440187.61 222581930.54

46. Bonds Payable

Naught.

47. Lease Liabilities

Unit: RMB

Item Ending balance Beginning balance

Leasing liabilities 21685561.49 25185296.61

Less: Unrecognized financing

expenses 1790044.91 1973229.62

208Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Less: current portion of lease

liabilities 8514743.95 8188073.88

Total 11380772.63 15023993.11

Other notes:

Analysis of maturity fate of lease liabilities

Item Ending balance Beginning balance

One to two years 6743657.94 7538905.81

Three to five years 2261917.77 4826977.55

Over five years 2375196.92 2658109.75

Total 11380772.63 15023993.11

48. Long-term Accounts Payable

Naught.

49. Long-term Employee Benefits Payable

Naught.

50. Provisions

Unit: RMB

Item Ending balance Beginning balance Formed reason

Pending litigation 2110312.84 Contract dispute

Provision for product

Product quality assurance 26914403.37 25320370.98 quality guarantee

expenses

Total 26914403.37 27430683.82

51. Deferred Income

Unit: RMB

Item Beginningbalance Increase Decrease Ending balance Formed reason

Government 73739179.94 31526945.90 13777235.43 91488890.41 Government

209Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

grants allocations

Total 73739179.94 31526945.90 13777235.43 91488890.41

210Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Other notes:

Unit: RMB

Amoun

t

recorde Amount

d into recorded Amount offset

Beginnin Amount

non- into

operati other cost in Other

Related to

Item of newly the chang Ending assets/relag balance subsidy ng incomeincome in the Reporti es

balance ted

ng incomein the Reportin

Reporti g Period Period

ng

Period

Government grants related to assets 6818374 27697519 9681661. 861996057.38 .13 12 .39

Small-pitch LED Packaging Technology Innovation for Display and Key Packaging 9444242. 17147261 Related to

Equipment Technology Transformation Project 9322107. 1619089.78 88 44 .22 assets

Technology Renovation Project for the Production Line of Micro and Flip-chip 2001695. 12225583 862079.46 13365199 Related toLED Chips. 76 .00 .30 assets

Government Subsidy for Annual Fixed Asset Investment in Advanced 8677987. 222512.52 8455474. Related toManufacturing and Oil & Gas Extraction Projects 50 98 assets

Small-pitch and Outdoor LED Display Device Expansion Project and Technical 1000394

Transformation Project 5.76 2032275. 7971669.Related to

84 92 assets

The Project of the Innovation in Packaging Technology and Technological

Transformation of Key Packaging Equipment of LEDs with High Color Rendering 6052565. 5267202. Related to77 785363.70 07

Index for Illumination assets

211Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amoun

t

recorde Amount

d into recorded Amoun

Amount non- into

t offset Related to

Item Beginnin of newly operati other

cost in Other

the chang Ending assets/relag balance subsidy ng income Reporti es balance tedincome in the ng incomein the Reportin

Reporti g Period Period

ng

Period

The Second Batch of Ultra-long-term Special Government Bond Project Subsidies 5162500.for 2024. 00 262500.00

4900000. Related to

00 assets

Special Project on Deep-sea Technology Industry Promotion (Industry

Development Category) of Hainan Deep-Sea Technology Innovation Center - 1200000. 1600000. 159660.04 2640339. Related toProject on Building and Commercial Operation of Deep-sea Lighting Product 00 00 96 assets

Production Line

Equipment subsidy for Gaozhou Production Base Construction Project 2504336. 22407.54 2481928. Related to13 59 assets

Intelligent Technology Reform Project of LED Packaging Workshop in Geely 620755.0 1683357. 2304112. Related to

Industrial Park (Phase I) 0 12 12 assets

2023 Automotive Lamp Production Digitalization Workshop Technology 2129000.

Improvement Project 00 123000.00

2006000. Related to

00 assets

Research on the Third-generation Semiconductor Power Device and Module 1871395.Packaging Technology 37 167493.66

1703901. Related to

71 assets

The First Batch of 2022 Special Funds for Industrial Technological Transformation 1792000. 1664000. Related to

by the Finance Bureau of Liang Jiang New Area 00 128000.00 00 assets

212Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amoun

t

recorde Amount

d into recorded Amoun

non- into t offsetAmount Related to

Item Beginnin of newly operati other

cost in Other

g balance ng income the chang

Ending assets/rela

subsidy Reporti es balance tedincome in the income

in the Reportin ng

Reporti g Period Period

ng

PeriodThe Second Batch of Support Funds for the “Technological Transformation of 1366666.Thousands of Enterprises” in the Guangxi Zhuang Autonomous Region for 2021 54 100000.02

1266666. Related to

52 assets

The Project of Resource Conservation and Environmental Protection 1425234. 343999.98 1081234. Related to20 22 assets

The 2019 Second Batch of Special Funds of RMB3 million for the Industrial and 1200000. 1050000. Related to

Information Development of the City 00 150000.00 00 assets

The First Batch of Special Funds for the Industrial and Information Development

for the Guangxi Zhuang Autonomous Region for 2017 (Technological 966666.97 199999.98 766666.99

Related to

Transformation) for Liuzhou Guige assets

The Project of the First Batch of Support Funds for Enterprises in Liuzhou City for 900000.0 Related to

2017 for Liuzhou Guige 0 150000.00 750000.00 assets

Research and Development and Industrialization Project of Potassium Nitride-based 743787.0 Related to

Rf Devices in the Field of Next Generation Mobile Communication 6 56798.76 686988.30 assets

The 2019 14th Batch of Industrial Support Funds of RMB1.5 million 600000.0 Related to0 75000.00 525000.00 assets

213Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amoun

t

recorde Amount

d into recorded Amoun

non- into t offsetAmount Related to

Item Beginnin of newly operati other

cost in Other

the chang Ending assets/relag balance subsidy ng income balance tedincome in the Reporti es income

in the Reportin ng

Reporti g Period Period

ng

Period

The First Batch of Special Funds for Small and Medium-sized Enterprises in 2022 490000.0 35000.00 Related to

0 455000.00 assets

2021 Automotive Industry Enterprise Intelligent Transformation and Upgrading 419333.1 34000.02 Related toProject Funding 8 385333.16 assets

Liuzhou Guige's Third Batch of Guangxi Innovation-driven Development Special

Asset Projects in 2018 424000.0 48000.00

Related to

0 376000.00 assets

Liuzhou Guige 2017 Liudong New District Enterprise Potential Development and

Renovation Fund 450000.0 75000.00

Related to

0 375000.00 assets

Project Funds from the Liuzhou High-tech Industrial Development Zone Related to

Management Committee 384000.1 31999.986 352000.18 assets

Guangdong Provincial Semiconductor Microdisplay Enterprise Key Laboratory

(2020)359125.237718.70

Related to

0 321406.50 assets

Research and Development and Industrialization of Multi-mode Low-power Wide- Related to

area IoT Node Chips and Packaging Technologies Based on NB-IoT 323894.0 18915.900 304978.10 assets

214Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amoun

t

recorde Amount

d into recorded Amoun

non- into t offsetAmount cost in Other Related to

Item Beginnin operati otherg balance of newly ng income the chang

Ending assets/rela

subsidy Reporti es balance tedincome in the

in the Reportin ng

income

Reporti g Period Period

ng

Period

Others 9297087. 240000.00 1940845. 7596241. Related to

13 58 55 assets

Government grants related to income 5555432. 3829426. 4095574. 5289285.56 77 31 02

Research Project on Key Technologies of the Third Generation of High Efficiency 1639002. 1605766. Related to

and Frequency Semiconductor Electronic Power Module 82 33235.86 96 income

The Research on the Key Technology of 4K/8K Full-color Micro-LED Displays 1344000. 1344000. Related to

with Ultra High Definition (UHD) 00 00 income

The Research on Full-colour and Integrated Packaging of Micro-LED Display with 990013.5 59918.46 930095.13 Related toHigh Brightness and Contrast 9 income

MDL Project 840000.0 840000.00 Related to0 income

Others 742416.1 3829426. 4002419.5 77 99 569422.93

Related to

income

215Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Amoun

t

recorde Amount

d into recorded Amoun

non- into t offsetAmount Related to

Item Beginnin of newly operati other

cost in Other

the chang Ending assets/relag balance subsidy ng income Reporti es balance tedincome in the ng incomein the Reportin

Reporti g Period Period

ng

Period

Total 7373917 31526945 13777235 914888909.94 .90 .43 .41

216Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

52. Other Non-current Liabilities

Unit: RMB

Item Ending balance Beginning balance

Pending changeover output VAT 174986.26 174986.26

Other 663.57 2931.37

Total 175649.83 177917.63

53. Share Capital

Unit: RMB

Increase/decrease (+/-)

Beginning Ending

balance Bonus Bonus issue balanceNew issues shares from profit Others Sub-total

Total - -15487782 1535778230

shares 13000000. 13000000.30.00 .0000 00

Note: Other refers to the Company’s cancellation of 13 million A-shares held in the repurchase special securities

account on January 10 2025 with a corresponding reduction in registered capital. Following this cancellation the

Company’s total share capital changed from 1548778230 shares to 1535778230 shares.Other notes:

Unit: RMB

Beginning balance Ending balance

Item/Investor Increase Decrease

Invested

amount Proportion

Invested

amount Proportion

57295457.003.70%46796039.0010499418.000.68%

Restricted shares

1491482773.0096.30%46796039.0013000000.001525278812.0099.32%

Unrestricted

shares

1548778230.00100.00%46796039.0059796039.001535778230.00100.00%

Total

54. Other Equity Instrument

Naught.

217Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

55. Capital Reserves

Unit: RMB

Item Beginning balance Increase Decrease Ending balance

Capital premium

(premium on stock) 907090354.12 70818369.76 836271984.36

Other capital

reserves 7245971.54 7245971.54

Total 914336325.66 70818369.76 843517955.90

Other notes including a description of the increase or decrease for the current period and the reasons for the

change:

Capital premium (premium on stock) decreased by RMB 70818369.76 in the current period which were mainly

due to

1. The Company cancelled its stock shares on January 10 2025 resulting in a RMB 69165144.15 decrease in the

capital reserve;

2. The acquisition of non-controlling interests in the majority-owned subsidiary Haolaite resulting in a RMB

1653225.61 decrease in the capital reserve.

56. Treasury Shares

Unit: RMB

Item Beginning balance Increase Decrease Ending balance

Treasury shares (A-

share) 82165144.15 82165144.15

Total 82165144.15 82165144.15

Other notes including a description of the increase or decrease for the current period and the reasons for the

change:

Decrease in treasury shares (A-shares) by RMB 82165144.15 during the current period is attributable to the

Company’s cancellation of 13 million A-shares held in the repurchase special securities account on January 10

2025 with a corresponding reduction in registered capital.

218Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

57. Other Comprehensive Income

Unit: RMB

Reporting Period

Less: Recorded Less: Recorded

in other in other Attributable

Income comprehensive comprehensive to owners Attributable

Item Beginning Endingbalance before income in prior income in prior

taxation in period and period and Less: Income

of the to non- balance

Company controlling

the Current transferred to transferred to tax expense as the interests after

Period profit or loss in retained earnings parent after tax

the Current in the Current tax

Period Period

I. Other comprehensive

income that may not

subsequently be reclassified 383442631.00 252097724.56 171881788.23 37814658.68 42401277.65 425843908.65

to profit or loss

Changes in fair value of

other investments in equity 383442631.00 252097724.56 171881788.23 37814658.68 42401277.65 425843908.65

instruments

II. Other comprehensive

income that may be -13475.98 -791293.24 -447357.83 -343935.41 -460833.81

reclassified to profit or loss

Differences arising from

translation of foreign

currency-denominated -13475.98 -791293.24 -447357.83 -343935.41 -460833.81

financial statements

Total of other comprehensive

income 383429155.02 251306431.32 171881788.23 37814658.68 41953919.82 -343935.41 425383074.84

219Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Other notes including the note to the adjustment of the initial recognition amount of hedged item transferred from

the effective gain/loss on cash flow hedges:

Naught.

58. Specific Reserve

Unit: RMB

Item Beginning balance Increase Decrease Ending balance

Production safety

reserve 4782061.20 11812685.82 11107676.00 5487071.02

Total 4782061.20 11812685.82 11107676.00 5487071.02

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 in the 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 108417252.01 17188178.82 125605430.83

Discretionary

surplus reserve 41680270.96 41680270.96

Total 150097522.97 17188178.82 167285701.79

Notes including changes and reasons thereof:

The increase in surplus reserve by RMB 17188178.82 during the current period is attributable to the disposal of

equity securities classified as investments in other equity instruments whereby the cumulative fair value changes

previously recognized in other comprehensive income were transferred to retained earnings with simultaneous

allocation to surplus reserve.

60. Retained Profits

Unit: RMB

Item Reporting Period Same period of last year

Beginning balance of retained

earnings before adjustments 3655046154.57 3435308364.11

220Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Reporting Period Same period of last year

Beginning balance of retained

earnings after adjustments 3655046154.57 3435308364.11

Add: Net profit attributable to

owners of the Company as the 114993752.24 446184021.97

parent

Less: Withdrawal of statutory

surplus reserves 42152843.91

Dividend of ordinary shares

payable 184293387.60 184293387.60

Add: Other (Note) 154693609.41

Ending retained earnings 3740440128.62 3655046154.57

Note: It refers to the transfer of cumulative fair value changes previously recognized in other comprehensive

income to retained earnings upon sales of shares during the current period.List of adjustment of beginning retained earnings:

(1) RMB0.00 beginning retained profits was affected by retrospective adjustment conducted according to the

Accounting Standards 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.

61. Operating Revenue and Cost of Sales

Unit: RMB

Reporting Period Same period of last year

Item

Operating revenue Cost of sales Operating revenue Cost of sales

Main operations 4185528329.95 3379096211.37 4641840263.11 3770172987.42

Other operations 200202789.83 186224345.31 142705504.31 100078120.59

Total 4385731119.78 3565320556.68 4784545767.42 3870251108.01

Breakdown information of operating revenue and cost of sales:

221Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Unit: RMB

Total

Category of contracts

Operating revenue Cost of sales

Business type 4385731119.78 3565320556.68

Of which:

General lighting products 1555797106.24 1142860150.29

LED packaging and component

products 1138917060.61 944141765.80

Vehicle lamp products 1013526856.90 833677921.36

Trade and other products 677490096.03 644640719.23

By operating places

Of which:

Domestic 3419449003.11 2742697709.96

Overseas 966282116.67 822622846.72

Total 4385731119.78 3565320556.68

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 RMB221676101.25.

62. Taxes and Surtaxes

Unit: RMB

Item Reporting Period Same period of last year

Urban maintenance and

construction tax 9073146.40 11477398.90

Education surcharge 4078286.18 5817380.58

Property tax 12564073.03 12240976.04

Land use tax 2949828.19 1862982.54

Vehicle and vessel use tax 9346.88 11539.44

222Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Reporting Period Same period of last year

Stamp duty 3884049.49 4090236.94

Local education surcharge 2594481.89 2386760.07

Environmental protection tax 33538.16 19936.01

Others 8691.96 9728.71

Total 35195442.18 37916939.23

63. Administrative Expense

Unit: RMB

Item Reporting Period Same period of last year

Employee benefits 131837173.33 130927710.77

Depreciation charge 45950398.92 39408441.47

Office expenses 13106605.91 18519960.05

Amortization of intangible assets 5039291.89 4114485.79

Engineering decoration cost 3561866.59 4801504.22

Intermediary agency engagement

fee 3523533.02 5246590.63

Utilities 3483871.72 3149472.00

Rent of land and management

charge 3044193.90 4141330.16

Labor cost 2184951.46 2666214.20

Security fund for the disabled 30023.52

Others 12269692.81 13327229.70

Total 224001579.55 226332962.51

223Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

64. Selling Expense

Unit: RMB

Item Reporting Period Same period of last year

Employee benefits 76018915.08 72432535.06

Business propagandizing fees and

advertising fees 59495362.31 53863531.30

Sales promotion fees 11457954.80 6294529.20

Office expenses 6887070.56 6876969.60

Business travel charges 5779947.18 5507517.26

Commercial insurance premium 2471904.93 3232729.39

Others 20780917.17 19009986.09

Total 182892072.03 167217797.90

65. Development Costs

Unit: RMB

Item Reporting Period Same period of last year

Personnel and labor costs 145282615.31 126235339.99

Direct investment expenses 81124028.88 82440945.66

Depreciation expenses and long-

term prepaid expenses 25237404.37 22649859.13

Cost of outsourcing external R&D 3418767.96 3917155.30

Amortization charge of intangible

assets 20760.96 28166.42

Design fees 12264.15 1696516.00

Other Fees 12573757.90 23197968.13

Total 267669599.53 260165950.63

Other notes:

224Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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-scale

production is included in core business revenue and the relevant costs are included in cost of sales of core

business.

66. Finance Cost

Unit: RMB

Item Reporting Period Same period of last year

Interest costs 8116483.14 11047212.70

Less: Interest income 20148088.69 25938447.85

Foreign exchange gains or losses -2889508.01 -17140676.80

Handling charge and others -2196542.61 1425667.21

Total -17117656.17 -30606244.74

67. Other Income

Unit: RMB

Sources Reporting Period Same period of lastyear

The Deductible Input Tax for Advanced Manufacturing

Enterprises 19970901.49 30052926.81

The Projects of the Production Expansion and Technological

Transformation of Components of Small-spacing and 4561671.74 2032275.84

Outdoor LED Displays

VAT refunded as soon as it is levied 3514199.48

Manufacturing Operation Management MOM Software

Research Project for NationStar Manufacturing Scenarios 1420000.00

CAE software Research Project for Multi-physics Field

Coupling Simulation of NationStar LED Products 1206700.00 1890966.85

National Manufacturing Single Champion Award 1200000.00

Social insurance subsidies 1032640.64 67954.64

The “Strong Start” Economic Initiative for Q1 by Nanning

New and High-tech Industrial Development Zone 1010000.00

225Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Sources Reporting Period Same period of lastyear

Manufacturing Operation Management MOM Prototype

Software Research Project for NationStar Manufacturing 933200.00 1880000.00

Scenarios

The Tax Incentives for the Poor 864650.00 5435946.87

Technology Renovation Project of Mini and Flip-chip LED

Chip Production Lines 862079.46

The Project of the Innovation in Packaging Technology and

Technological Transformation of Key Packaging Equipment

of LED packaging with High Color Rendering Index for 785363.70 785363.70

Illumination

Return of handling charges for withholding and remittance 581015.09 479040.08

LED Technology for Efficient Cultivation in Modern

Agriculture and Its Demonstrative Application 455981.82 143251.56

Funds for New Industrialization from the Autonomous

Region 430000.00

Enterprise R&D Reward and Subsidy 403326.00

The Project of Resource Conservation and Environmental

Protection 343999.98 671246.82

The Subsidy for Metal-organic Chemical Vapor Deposition

(MOCVD) 4800912.92

The Research on the Key Technology of 4K/8K Full-color

Micro-LED Displays with Ultra-High Definition (UHD) 2911576.13

Support Fund for the Digital Intelligent Transformation of

the Manufacturing Industry 592548.00

Small-pitch LED Packaging Technology Innovation for

Display and Key Packaging Equipment Technology 548355.48

Transformation Project

Chancheng District Government Quality Award 500000.00

Reward Funds for Smart Factory Demonstration Enterprises

and Digital Workshops 500000.00

Epitaxial Growth and Chip Fabrication Techniques for High-

Performance Deep Ultraviolet LED 400000.00

226Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Sources Reporting Period Same period of lastyear

Quality Management Maturity Level 5A Enterprise Bonus 400000.00

Incentive for standard products of Foshan City 360000.00

Others 5669403.05 5699047.49

Total 45245132.45 60151413.19

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 345894.65 -601447.40

Total 345894.65 -601447.40

70. Investment Income

Unit: RMB

Item Reporting Period Same period of last year

Long-term equity investment

income accounted by equity 646719.77 1444720.72

method

Investment income from disposal

of trading financial assets 420703.90 2911077.39

Dividend income from holding of

other equity instrument investment 9727720.67 19990672.99

Interest income of investment in

other debt obligations during 15294849.67 13671028.14

holding period

Investment income from financial

products and structural deposits 1357081.83

227Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Reporting Period Same period of last year

Total 27447075.84 38017499.24

71. Credit Impairment Loss

Unit: RMB

Item Reporting Period Same period of last year

Bad debt loss on notes receivable -1082149.07 -266311.20

Bad debt loss on accounts

receivable -10120936.33 -37243385.45

Bad debt loss on other receivables -898410.29 -761111.93

Total -12101495.69 -38270808.58

72. Asset Impairment Loss

Unit: RMB

Item Reporting Period Same period of last year

I. Loss on inventory valuation and

contract performance cost -22345101.18 -29752322.32

XI. Loss on impairment of contract

Assets 550205.94 808278.52

XII. Others -629976.09 -8014761.09

Total -22424871.33 -36958804.89

73. Assets Disposal Income

Unit: RMB

Sources Reporting Period Same period of last year

Gains or losses arising from the

disposal of non-current assets not -64693.00 -99108.79

classified as held for sale

Total -64693.00 -99108.79

228Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

74. Non-operating Income

Unit: RMB

Item Reporting Same period of

Amount recorded in the

Period last year current non-recurring profitor loss

Income from scrap of non-current assets 19461.06 320853.22 19461.06

Of which: income from scrap of fixed

assets 19461.06 320853.22 19461.06

Income from default money 202108.27 1460120.49 202108.27

Confiscated income 32100.00 54273.27 32100.00

Others 1859646.02 1219612.57 1859646.02

Total 2113315.35 3054859.55 2113315.35

75. Non-operating Expense

Unit: RMB

Same period of last Amount recorded in theItem Reporting Period year current non-recurring profitor loss

External donation 30000.00 30000.00

Losses from damage and

scrap of non-current 2371.68 156010.36 2371.68

assets

Of which: Loss on

disposal of fixed assets 2371.68 156010.36 2371.68

Penalty and fine for

delaying payment 795772.15 204491.05 795772.15

Others 1259051.77 125716.02 1259051.77

Total 2087195.60 486217.43 2087195.60

229Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

76. Income Tax Expense

(1) List of Income Tax Expense

Unit: RMB

Item Reporting Period Same period of last year

Current income tax expense 26724735.72 31645407.23

Deferred income tax expense -8405922.80 -7013025.11

Total 18318812.92 24632382.12

(2) Adjustment Process of Accounting Profit and Income Tax Expense

Unit: RMB

Item Reporting Period

Profit before taxation 166242688.65

Current income tax expense accounted at

statutory/applicable tax rate 24936403.30

Influence of applying different tax rates by

subsidiaries -682404.70

Influence of income tax before adjustment 9763870.79

Influence of non-taxable income -2313090.68

Influence of non-deductible costs expenses and losses 3601618.95

The effect of using deductible losses of deferred

income tax assets that have not been recognized in the -6265165.00

previous period

Influence of unrecognized deductible temporary

differences and deductible losses 7808743.76

Impact of additional deduction of R&D expenses -17706682.23

Other -824481.27

Income tax expenses 18318812.92

230Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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 11435215.76 22370050.64

Deposit interest 16644598.41 22332393.90

Income from subsidy 37237015.27 20458063.38

Income from waste 9810965.91 14076991.86

Rental income from property and

equipment utility 2207358.66 2272907.82

Others 21134864.94 37878011.81

Total 98470018.95 119388419.41

Notes to cash generated from operating activities:

Naught.Cash used in other investing activities

Unit: RMB

Item Reporting Period Same period of last year

Administrative expense paid in

cash 72987101.29 61546270.39

Selling expense paid in cash 49217298.77 46645367.15

Finance costs paid in cash 6712280.00 1012751.95

Cash deposit 13458767.82 52147104.25

Others 72633074.40 31406796.05

Total 215008522.28 192758289.79

231Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Notes to cash used in other operating activities:

Naught

(2) Cash Related to Investing Activities

Cash generated from other investing activities

Item Reporting Period Same period of last year

Proceeds from foreign exchange

settlement 215850.00

Reclassification of net cash paid

for acquisition of subsidiaries 22826907.16

Total 23042757.16

Significant cash received related to investing activities:

Naught.Cash used in other investing activities:

Naught.Significant cash used related to investing activities:

Naught.

(3) Cash Related to Financing Activities

Cash generated from other financing activities

Unit: RMB

Item Reporting Period Same period of last year

Recapture margin 35675972.28 7224809.91

Total 35675972.28 7224809.91

Notes to cash generated from other financing activities:

Naught.Cash used in other financing activities

Unit: RMB

Item Reporting Period Same period of last year

Payment for cash deposit of bank

acceptance bills 14576319.88 10803556.41

Payment for financing 1090901.93 211897.22

232Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

intermediary fees etc

Others 816798.83 485855.80

Total 16484020.64 11501309.43

Notes to cash used in other financing activities:

Naught.Changes in liabilities arising from financing activities

□Applicable □ Not applicable

Unit: RMB

Increase Decrease

Item Beginning Endingbalance balance

Cash Non-cash Cash Non-cash

Short-term

borrowings 307141147.49 62556611.51 58226.88 125929392.21 44227419.71 199599173.96

Long-term

loans 222581930.54 1211392.56 56115823.33 58706402.73 89762556.09 131440187.61

Other

payables -

equity 5000000.00 5000000.00

transfer

payments

Non-current

liabilities due

within one 120574788.81 94941196.02 60565723.31 154950261.52

year

Leasing

liabilities 15023993.11 5029867.67 4029890.75 4643197.40 11380772.63

Total 670321859.95 63768004.07 156145113.90 188665685.69 199198896.51 502370395.72

(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 and

Disbursements but Affect the Company’s Financial Position or May Affect the Company’s Cash Flows in

the Future

In 2025 the Company and its subsidiaries received RMB 1757.7021 million in various types of acceptance bills

issued and endorsed by customers and RMB1073.63 million in various types of acceptance bills endorsed and

233Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

transferred to suppliers. In addition the Company and its subsidiaries received a total of RMB 168.0125 million in

payments for goods through bill discounting.

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 147923875.73 253442256.65

Add: Provision for impairment of assets 34526367.02 75229613.47

Depreciation of fixed assets oil-gas assets

and productive living assets 271632208.57 263094158.49

Depreciation of right-of-use assets 5392572.34 4097193.56

Amortization of intangible assets 12719631.55 10549312.38

Amortization of long-term deferred expenses 47987420.82 79925639.97

Loss from disposal of fixed assets intangible

assets and other long-term assets (gains: 64693.00 99108.79

negative)

Losses from scrapping of fixed assets (gains:

negative) -17089.38 -164842.86

Losses from changes in fair value (gains:

negative) -345894.65 601447.40

Finance costs (gains: negative) 3163870.70 -6093464.10

Investment loss (gains: negative) -27447075.84 -38017499.24

Decrease in deferred income tax assets

(increase: negative) -3720364.18 -18244273.75

Increase in deferred income tax liabilities (“-”

for decrease) -4685558.62 -4067382.64

Decrease in inventory (“-” for increase) -21335937.11 227917770.99

Decrease in operating receivables (“-” for -316641457.57 -250051969.33

234Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Supplemental information Reporting Period Same period of last year

increase)

Increase in operating payables (“-” for

decrease) -140077259.25 -219105024.82

Others 705009.82 5380999.65

Net cash generated from/used in operating

activities 9845012.95 384593044.61

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

3.Net increase/decrease of cash and cash

equivalents:

Ending balance of cash 2545828784.72 2687757730.67

Less: Beginning balance of cash 2684382020.41 3101252943.88

Add: Ending balance of cash equivalents

Less: Beginning balance of cash equivalents

Net increase in cash and cash equivalents -138553235.69 -413495213.21

(2) Net Cash Paid for Acquisition of Subsidiaries

Unit: RMB

Amount

Cash or cash equivalents paid in the current period for

the business combination occurring in the previous 22500000.00

period

Including:

Beijing Airtrust Aviation Technology Co. Ltd. 22500000.00

235Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Less: Cash and cash equivalents held by subsidiary at

the acquisition date 45326907.16

Including:

Beijing Airtrust Aviation Technology Co. Ltd. 45326907.16

Including:Amounts reclassified to “Cash generated from otherinvesting activities” (Note) 22826907.16

Net cash paid for acquisition of subsidiaries

Note: In the capital increase of Beijing Airtrust during the year the net amount of cash or cash equivalents paid

for business combinations during the current period minus the cash and cash equivalents held by the subsidiaryon the date of acquisition was negative. Therefore the amount has been reclassified to the “Cash generatedfrom other investing activities” item for presentation purposes.

(3) Net Cash Received from Disposal of the Subsidiaries

Naught.

(4) Cash and Cash Equivalents

Unit: RMB

Item Ending balance Beginning balance

I. Cash 2545828784.72 2684382020.41

Including: Cash on hand 78888.57 40535.66

Bank deposits available on demand 2416824912.95 2680618712.62

Other monetary assets on demand 128924983.20 3722772.13

III. Ending balance of cash and cash

equivalents 2545828784.72 2684382020.41

(5) Presentation of Cash and Cash Equivalents that Are Subject to Certain Restrictions on Their Usage

Naught.

(6) Monetary Funds Other than Cash and Cash Equivalents

Unit: RMB

236Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Reporting Period Same period of Reason for not classifying the itemlast year as cash and cash equivalents

Bill deposit guarantee

deposit pre-sale house 524122497.12 492360246.76 Specific purpose

payment etc

Interest receivable on undue bank

To-be-received interest 14468117.34 11490996.27 deposits and term deposits as at

the end of the Reporting Period

Total 538590614.46 503851243.03

(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

corresponding amount:

Naught.

81. Foreign Currency Monetary Items

(1) Foreign Currency Monetary Items

Unit: RMB

Item Ending foreign currency Ending balance convertedbalance Exchange rate to RMB

Monetary Assets 367309187.45

Including: USD 44550940.34 7.1586 318922361.52

EUR 153393.47 8.4024 1288873.29

HKD 51815.60 0.91195 47253.24

IDR 57989708959.98 0.000443 25689441.07

THB 97238065.96 0.21968 21361258.33

Accounts receivable 337018218.95

Including: USD 46423417.64 7.1586 332326677.52

237Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Ending foreign currency Exchange rate Ending balance convertedbalance to RMB

EUR 380323.79 8.4024 3195632.61

HKD

IDR 3376769338.96 0.000443 1495908.82

Long-term borrowings

Including: USD

EUR

HKD

Other receivables 553770.29

Of which: USD 3707.19 7.1586 26538.29

THB 2400000.00 0.21968 527232.00

Accounts payable 15390058.91

Including: USD 1605671.68 7.1586 11494361.29

EUR 213470.59 8.4024 1793665.29

IDR 4744993974.50 0.000443 2102032.33

Other current assets 66446.83

Of which: IDR 149992849.76 0.000443 66446.83

(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 Recording

Currency Relevant Reasons Shall Be Disclosed.□Applicable□Not applicable

82. Leases

(1) The Company Served as the Lessee:

□Applicable □ Not applicable

Item Amount

238Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Item Amount

Simplified short-term lease charges recognized in the cost of the

related assets or in current profit or loss 1197410.44

Total cash outflows related to leases 3988335.90

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 transactions

Naught.

(2) The Company Served as the Lessor:

Operating leases with the Company as lessor

□Applicable □ Not applicable

Unit: RMB

Of which: income related to

Item Lease income variable lease payments not

included in lease receipts

House lease and others 9208133.08 0.00

Total 9208133.08 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 leases

Naught.

(3) Recognition of Gain or Loss on Sales under Finance Leases with the Company as a Manufacturer or

Distributor

□Applicable□Not applicable

83. Data Resources

Naught.

239Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

84. Others

Naught.VIII. Research and Development Expenses

Unit: RMB

Item Reporting Period Same period of last year

Personnel and labor costs 145282615.31 126235339.99

Direct investment expenses 81124028.88 82440945.66

Depreciation expenses and long-

term prepaid expenses 25237404.37 22649859.13

Cost of outsourcing external R&D 3418767.96 3917155.30

Amortization charge of intangible

assets 20760.96 28166.42

Design fees 12264.15 1696516.00

Other fees 12573757.90 23197968.13

Total 267669599.53 260165950.63

Including: research and

development expenditures that are 267669599.53 260165950.63

expensed

Other notes:

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-scale

production is included in core business revenue and the relevant costs are included in cost of sales of core

business.

240Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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

Unit: RMB

Cash flows

Income of Net profits of the

Time of Cost of Recognition acquiree of acquiree acquiree

Acquirees gaining gaining the Proportion Way to gain Acquisition basis of from the from the from the

equity equity of equity equity date purchase purchase purchase purchasedate date to date to date to the

period-end period-end end of the

period

Re-electing

directors

completing

Beijing property

Airtrust CapitalMay 1 22500000.0 increase transferAviation 45% May 1 2025 procedures -585722.64 -646259.56

Technology 2025 0 through cashcontribution etc. andCo. Ltd. actually

controlling

the acquired

company

(2) Combination Cost and Goodwill

Unit: RMB

Combination cost Beijing Airtrust Aviation Technology Co. Ltd.-Cash 22500000.00

Total combination costs 22500000.00

Less: share in the fair value of identifiable net assets

acquired 22374447.93

The amount of goodwill/combination cost less than

the share in the fair value of identifiable net assets 125552.07

acquired

241Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(3) Identifiable Assets and Liabilities of the Acquiree on the Acquisition Date

Unit: RMB

Beijing Airtrust Aviation Technology Co. Ltd.Fair value on purchase date Carrying value on purchase date

Assets:

Monetary assets 45326907.16 45326907.16

Accounts receivable 58831.97 58831.97

Inventories 1267251.77 1302397.51

Fixed assets 53492.93 39515.53

Intangible assets 2950600.00

Prepayments 119698.00 119698.00

Other receivables 1143035.99 1143035.99

Other current assets 4741.73 4741.73

Long-term prepaid expense 822174.76 822174.76

Deferred income tax assets 1886550.94 1886550.94

Total assets 53633285.25 50703853.59

Liabilities:

Borrowings

Accounts payable 195197.50 195197.50

Deferred income tax liabilities 585886.33

Other payables 3223105.00 3223105.00

Taxes payable -91898.97 -91898.97

Total liabilities 3912289.86 3326403.53

Net assets 49720995.39 47377450.06

Less: Non-controlling interests 27346547.46 26057597.53

242Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Beijing Airtrust Aviation Technology Co. Ltd.Fair value on purchase date Carrying value on purchase date

Net assets acquired 22374447.93 21319852.53

Method for determining the fair value of identifiable assets and liabilities:

When the Company increased its capital in Beijing Airtrust Aviation Technology Co. Ltd. it engaged an

assessment agency with relevant qualifications to assess the identifiable assets and liabilities of the target

company in accordance with the asset-based method and determined the fair value of the consolidated net assets

of Beijing Airtrust Aviation Technology Co. Ltd. based on the assessment results.

(4) Gain or Loss from Remeasurement of Equity Interests Held before the Acquisition Date at Fair Value

Whether there were several transactions to realize 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 and Liabilities of the Acquiree on the Acquisition Date or at the End of the Current

Period

Naught.

(6) Other Notes

Naught.

2. Business Combination under the Same Control

Naught.

3. Counter Purchase

Basic information of the transactions basis of the counter purchase basis and whether assets and liabilities

retained by the listed company constitute business determination of the combination cost the amount and

calculation of the equity amount adjusted in treatment 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

243Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

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.) and relevant information:

1. Beijing Airtrust the Company’s majority-owned company holds 100% equity interest in Airstar and exercises

control over it. The Company obtained control over Airstar through a capital increase in Beijing Airtrust. Airstar

has been included in the consolidation scope since May 2025.

2. FSL (Thailand) Lighting Technology Co. Ltd. completed its overseas investment filing in June of the current

period. Simultaneously Haolaite Company and Chanchang Company injected capital into Thailand Company.Thailand Company has been included in the consolidation scope since June 2025.

6. Others

Naught.X. Equity in Other Entities

1. Equity in Subsidiary

(1) Subsidiaries

Unit: RMB

Main Holding percentageName of the Registered

subsidiary capital operating

Registration Nature of Way of

place place business gainingDirect Indirect

Foshan Fozhao

Zhicheng 50000000.00 Foshan Foshan Production and 100.00% NewlyTechnology Co. sales established

Ltd.FSL Chanchang

Lighting Co. 72782944.00 Foshan Foshan Production and Newly

Ltd. sales

100.00% established

Foshan Taimei

Times Lamp 500000.00 Foshan Foshan Production and 70.00% Newly

Co. Ltd. sales established

Foshan

Electrical &

Lighting 35418439.76 Xinxiang Xinxiang Production and 100.00% Newly

(Xinxiang) Co. sales established

Ltd.Nanjing Fozhao

Lighting 41683200.00 Nanjing Nanjing Production and 100.00% Acquired

Components sales

Manufacturing

244Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Main Holding percentageName of the Registered operating Registration Nature of Way ofsubsidiary capital place place business gainingDirect Indirect

Co. Ltd.FSL Zhida

Electric

Technology Co. 38150000.00 Foshan Foshan

Production and

sales 66.84%

Newly

established

Ltd.Foshan Haolaite

Lighting Co. 17158000.00 Foshan Foshan Production and Newly

Ltd. sales

100.00% established

NationStar Business

Optoelectronics

(Germany) Co. 1436419.00 Germany Germany Trade 100.00%

combination

under the same

Ltd. control

FSL (Thailand)

Lighting

Technology Co. 21393145.55 Thailand

Production and Newly

sales 100.00% established

Ltd.Foshan Kelian Business

New Energy

Technology Co. 170000000.00 Foshan Foshan

Property

development 100.00%

combination

under the same

Ltd. control

Fozhao (Hainan)

Technology Co. 200000000.00 Haikou Haikou Production and 100.00% Newly

Ltd. sales established

Zhejiang Hule

Electrical

Equipment 29000000.00 Jiaxing Jiaxing Production andsales 66.00% AcquiredManufacturing

Co. Ltd.Shanghai Lelaite

Electrical

Equipment Co. 1000000.00 Shanghai Shanghai Trade 36.30% Acquired

Ltd.Nanning

Liaowang Auto 35055700.00 Nanning Nanning Manufacturing

Lamp Co. Ltd. of vehicle lamps

53.79% Acquired

Liuzhou Guige

Lighting

Technology Co. 30000000.00 Liuzhou Liuzhou

Manufacturing

of vehicle lamps 53.79% Acquired

Ltd.

245Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Holding percentage

Name of the Registered Main Registration Nature of Way of

subsidiary capital operatingplace place business gainingDirect Indirect

Liuzhou Guige Manufacturing

Fuxuan

Technology Co. 20000000.00 Liuzhou Liuzhou

of automotive

electronic 53.79% Acquired

Ltd. products

Chongqing

Guinuo Lighting Manufacturing

Technology Co. 30000000.00 Chongqing Chongqing of vehicle lamps 53.79% Acquired

Ltd.Qingdao Guige

Lighting

Technology Co. 30000000.00 Qingdao Qingdao

Manufacturing

of vehicle lamps 53.79% Acquired

Ltd.Indonesia

Liaowang Auto 40873066.42 Indonesia Indonesia Manufacturingof vehicle lamps 53.79% AcquiredLamp Co. Ltd.Liaowang Auto

Lamp (Suzhou) 25000000.00 Suzhou Suzhou Manufacturing Newly

Co. Ltd. of vehicle lamps

53.79% established

Foshan Sigma Business

Venture Capital 50000000.00 Foshan Foshan Business 100.00% combination

Co. Ltd. services under the samecontrol

Foshan Business

NationStar

Optoelectronics 618477169.00 Foshan Foshan

Electronic combination

manufacturing 21.48% under the same

Co. Ltd. control

Foshan Business

NationStar

Semiconductor 820000000.00 Foshan Foshan

Electronic combination

manufacturing 21.48% under the same

Co. Ltd. control

Foshan Guoxing Business

Electronic

Manufacture 10000000.00 Foshan Foshan

Electronic combination

manufacturing 21.48% under the same

Co. Ltd. control

Nanyang Baoli Business

Vanadium

Industry Co. 100000000.00 Henan Nanyang Mining 12.89%

combination

under the same

Ltd. control

246Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

Holding percentage

Name of the Registered Main Registration Nature of Way of

subsidiary capital operatingplace place business gainingDirect Indirect

Guangdong New Business

Electronic 5000000.00 Guangzhou Guangzhou Trade 21.48% combination

Information Ltd. under the samecontrol

Guangdong

Fenghua Business

Semiconductor 200000000.00 Guangzhou Guangzhou Electronic combination

Technology Co. manufacturing

21.45% under the same

Ltd. control

Gaozhou

NationStar

Lighting 30000000.00 Maoming Maoming Electronic Newly

Technology Co. manufacturing

21.48% established

Ltd.Fozhao

Huaguang

(Maoming) 22920000.00 Maoming Maoming Production and 100.00% Newly

Technology Co. sales established

Ltd.Beijing Airtrust

Aviation Production and

Technology Co. 50000000.00 Beijing Beijing sales 45.00% Acquired

Ltd.Airstar (Tianjin)

Lighting Co. 5000000.00 Tianjin Tianjin Production andsales 45.00% AcquiredLtd.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 not controlling 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.Other notes;

Guoxing Electronic Manufacture NationStar Semiconductor Baoli Vanadium Industry New Electronics

Fenghua Semiconductor and Gaozhou NationStar are subsidiaries of NationStar Optoelectronics.

247Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(2) Significant Non-wholly-owned Subsidiary

Unit: RMB

Name of the Shareholding

The profit or loss

attributable to the Declaring dividends Balance of non-

subsidiary proportion of non- non-controlling distributed to non- controlling interestscontrolling interests interests controlling interests at the period-end

Nanning Liaowang

Auto Lamp Co. 46.21% 10982488.44 4065870.47 491046739.52

Ltd.Foshan NationStar

Optoelectronics 78.52% 19433755.88 24282863.70 3004357842.15

Co. Ltd.Holding proportion of non-controlling interests in subsidiary different from voting proportion:

Naught.

248Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary

Unit: RMB

Ending balance Beginning balance

Name of

the

subsidiary Current Non-current Total assets Current

Non-

current Total Current Non-current Total assets Current

Non- Total

assets assets liabilities liabilities liabilities assets assets liabilities

current

liabilities liabilities

Nanning

Liaowang

Auto 16538223 99546658 26492889 15298653 5679749 15866628 17975940 10176668 28152609 16741022 9274370 17668459

Lamp Co. 84.87 8.97 73.84 54.86 2.27 47.13 99.17 28.52 27.69 78.76 0.71 79.47

Ltd.Foshan

NationStar

Optoelectr 37091050 23935352 61026403 19934349 2853478 22787827 38412595 24080197 62492792 20969151 3282024 24251176

onics Co. 28.91 93.43 22.34 21.60 73.55 95.15 63.85 05.26 69.11 66.37 53.19 19.56

Ltd.Unit: RMB

Reporting Period Same period of last year

Name of the

subsidiary Operating Total Cash flows Total Cash flows

revenue Net profit comprehensive from operating

Operating

revenue Net profit comprehensive from operatingincome activities income activities

Nanning Liaowang

Auto Lamp Co. 914845763.09 23766475.75 23010159.22 48082149.88 835320128.96 28661214.92 27445527.70 15328786.43

Ltd.Foshan NationStar

Optoelectronics Co. 1681244438.51 24571004.38 24571004.38 -6708763.72 1853708942.97 56242432.00 56242432.00 140461398.36

Ltd.

249Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company

Naught.

(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of

Consolidated Financial Statements

Naught.

2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the

Subsidiary

(1) Changes in the Owner's Equity Share in Subsidiaries

Shareholding percentage before the Shareholding percentage after the

Name of subsidiary change change

Direct Indirect Direct Indirect

Foshan Haolaite Lighting Co. Ltd. 51.00% 10.53% 100.00%

(2) Impact of the Transaction on Minority Shareholders' Interests and Equity Attributable to the Parent

Company

Unit: RMB

Foshan Haolaite Lighting Co. Ltd.Purchase cost/disposal consideration 24916600.00

--Cash 24916600.00

--Fair value of non-cash assets

Total purchase cost/disposal consideration 24916600.00

Less: Share of subsidiary's net assets calculated based on equity acquired/disposed 26569825.61

Difference -1653225.61

Of which: Adjustment to capital reserve -1653225.61

Adjustment to surplus reserve

Adjustment to retained earnings

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.

250Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

(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 oflast year

Associated enterprises:

Total carrying value of investment 180947314.66 180300594.89

The total of following items

according to the shareholding

proportions

--Net profit 646719.77 1112039.74

--Total comprehensive income 646719.77 1112039.74

(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to

Transfer Funds to the Company

Naught.

(6) The Excess Loss of Joint Ventures or Associated Enterprises

Naught.

(7) The Unrecognized Commitment Related to Investment to Joint Ventures

Naught.

(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises

Naught.

4. Significant Common Operation

Naught.

5. Equity in the Structured Entity Excluded in the Scope of Consolidated Financial Statements

Notes to the structured entity excluded in the scope of consolidated financial statements:

Naught.

251Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

6. Others

Naught.XI. Government Grants

1. Government Grants Recognized 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

Amount Amount

recorded carried

into non- forward Other

Accounting Beginning Amount ofnewly operating other

changes in Ending Related to

items balance subsidy income in income in

the balance assets/inco

the the Reporting me

Reporting Reporting Period

Period Period

Deferred 68183747.3 27697519.1 86199605.income 9681661.12

Related to

8 3 39 assets

Deferred 5289285.0

income 5555432.56 3829426.77 4095574.31

Related to

2 income

3. Government Grants Recognized in Profit or Loss for the Current Period

□Applicable □ Not applicable

Unit: RMB

Accounting items Reporting Period Same period of last year

Other income 23389446.31 24166249.43

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 held-for-trading financial assets

receivables financing bills receivable accounts receivable other receivables other current assets other debt

252Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

investments accounts payable bills payable other payables short-term borrowings long-term borrowings etc.The details of each financial instrument see relevant items of Note VII.The main risks of the Company due to financial instruments were credit risk liquidity risk and market risk. The

operating management of the Company was responsible for the risk management target and the recognition of the

policies.

(1) Credit Risk

Credit risk was one party of the contract failed to fulfil the obligations and causes loss of financial assets of the

other 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 account

receivable over credit limit require the customer to pay or producing and delivering goods shall be approved by

the management of the Company.The Company through monthly aging analysis of account receivable and monitoring the collection situation of the

customer ensured the overall credit risk of the Company was in control scope. Once appear abnormal situation

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 the

way of cash payment or other financial assets. The policies of the Company are to ensure that there was sufficient

cash to pay the due liabilities. The liquidity risk is centralised controlled by the Financial Department of the

Company. The liquidity risk is centralized controlled by the Financial Management Department of the Company.The Financial Management 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 to pay 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 the

change 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 foreign

exchange risk is mainly related to the US dollar and the euro. As at June 30 2025 the Company’s assets and

liabilities were in RMB except for the balances of USD EUR HKD IDR and THB as set out in this Note VII-81

Foreign Currency Monetary Items. Foreign exchange risk arising from the assets and liabilities of such foreign

currency 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 improving operation

management and promoting the international competitiveness of the Company etc.

2) Interest Rate Risk

Interest rate risk refers to fluctuation risk of the fair value or future cash flow of financial instrument change due

to the change of market interest rates. The interest rate risk faced by the Company mainly comes from bank

borrowings. By establishing a good bank-enterprise relationship the Company reasonably designed the credit line

credit variety and credit period ensured sufficient credit line of banks and met various long- and short-term

financing needs of the Company with preferential loan interest rates. As at June 2025 the Company’s fixed

interest rate loan balance was RMB 477474879.14 accounting for 100% of the total loan balance. Therefore the

market risk of interest rate changes borne by the Company is not significant.

3) Other Price Risk

The Group’s other price risks arise primarily from investments in equity instruments as there is the risk of

changes in the price of equity instruments.

253Foshan Electrical and Lighting Co. Ltd. Interim Report 2025

As at December 2025 if the expected prices of the Group’s various equity instrument investments increase or

decrease by 1% and other factors remain unchanged the Group shall increase or decrease comprehensive income

by approximately RMB1095686.08 (December 31 2024: increasing or decreasing comprehensive income by

approximately RMB 1059041.21).

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 Accounting

Naught.

(3) The Company Conducts Hedging Operations for Risk Management Expects to Achieve Its Risk

Management Objectives but Does Not Apply Hedge Accounting

□Applicable□Not applicable

3. Financial Assets

(1) Classification of Transfer Methods

□Applicable □ Not applicable

Unit: RMB

Nature of

Transfer financial Amount of

methods assets financial assets Derecognition Basis for determining derecognition

transferred transferred

Due to the low credit risk and deferred payment

Accounts risk of bank acceptance bills in accountsBills