Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
FOSHAN ELECTRICALAND LIGHTING CO. LTD.ANNUALREPORT 2025
April 2026
1Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ANNUALREPORT 2025
Part I Important Notes Table of Contents and Definitions
The Board of Directors (or the “Board”) as well as the directors 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.Yu Zhongmin the Company’s legal representative Zeng Xiaojing the Company’s
Chief Financial Officer 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.The future plans and other forward-looking statements as well as the cautionary
statements mentioned in this Report shall not be considered as virtual promises of the
Company to investors. And investors are kindly reminded to be well aware of possible risks.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 the risk of the recoverability of accounts receivable.Please refer to the section headed “Potential Risks” in Item XI of Part III of this Report.The Board has approved a final dividend plan as follows: based on the total share
capital of 1535778230 shares at the disclosure date of the 2025 Annual Report a cash
dividend of RMB0.5 (tax inclusive) per 10 shares is to be distributed to the shareholders
with no bonus issue from either profit or capital reserves. Where any change occurs to the
total shares entitled to the final dividend due to any share repurchase grant of equity
incentives etc. when the final dividend plan is implemented the dividend per share shall
2Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
remain the same while the total payout amount shall be adjusted accordingly.This Report has been prepared in both Chinese and English. Should there be any
discrepancies or misunderstandings between the two versions the Chinese version shall
prevail.
3Foshan Electrical and Lighting Co. Ltd. Annual 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......... 13
Part IV Environmental Social and Governance Inform.. 55
Part V Significant Events............................81
Part VI Share Changes and Shareholder Information...128
Part VII Bonds......................................139
Part VIII Financial Statements..................... 140
4Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Documents Available for Reference
Investors and interested parties can get access to the following materials in the Board Office
(the Strategic Investment Department) in the Company’s office building:
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 original copy of the Independent Auditor’s Report signed and stamped by the certified
public accountants and stamped by the CPA firm.
3. 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.
5Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Definitions
Term Definition
Foshan Electrical and Lighting Co. Ltd. and its consolidated subsidiaries
The “Company” “listed company” “FSL” or “we”
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
Guangdong Rising Capital Investment Co. Ltd. (formerly known as
Rising Capital
“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 Electric Zhejiang Hule Electric Equipment Manufacture Co. Ltd.Guangdong Airtrust Aviation Equipment Co. Ltd. (formerly known as “BeijingAirtrustAirtrust Technology Co. Ltd.”)
Guangdong Fenghua Semiconductor Technology Co. Ltd. (formerly known as
Fenghua Semiconductor
“Guangdong Yuejing High-tech Co. Ltd.”)
CSRC China Securities Regulatory Commission
SZSE Shenzhen Stock Exchange
Meeting of shareholders Meeting of shareholders of Foshan Electrical and Lighting Co. Ltd.Board of Directors The board of directors of Foshan Electrical and Lighting Co. Ltd.Expressed in the Chinese currency of Renminbi expressed in tens of thousands
RMB RMB’0000 RMB’00000000
of Renminbi expressed in hundreds of millions of Renminbi
Reporting Period The period from January 1 2025 to December 31 2025
Last year The period from January 1 2024 to December 31 2024
6Foshan Electrical and Lighting Co. Ltd. Annual 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 listing Shenzhen Stock Exchange
Company name in Chinese 佛山电器照明股份有限公司
Abbr. 佛山照明
Company name in English (if
FOSHAN ELECTRICALAND LIGHTING CO.LTD
any)
Abbr. (if any) FSL
Legal representative Yu Zhongmin
Registered address No. 64 Fenjiang North Road Chancheng District Foshan City Guangdong Province P.R.China
Zip code 528000
Changes of registered address N/A
Office address No. 8 Zhihui Road Chancheng District Foshan City Guangdong Province P.R.China
Zip code 528051
Company website www.chinafsl.com
Email address gzfsligh@pub.foshan.gd.cn
II Contact Information
Board Secretary Securities Representative
Name Huang Zhenhuan Huang Yufen
No. 8 Zhihui Road Chancheng District No. 8 Zhihui Road Chancheng District
Address Foshan City Guangdong Province Foshan City Guangdong Province
P.R.China P.R.China
Tel. （0757）82810239 （0757）82966028
Fax （0757）82816276 （0757）82816276
Email address fsldsh@chinafsl.com fslhyf@163.com
III Media for Information Disclosure and Place where this Report Is Lodged
Stock exchange website where this Report is disclosed http://www.cninfo.com.cn
Media and website where this Report is disclosed Securities Daily and http://www.cninfo.com.cn
Place where this Report is lodged Board Office (the Strategic Investment Department) FSL Office Building
7Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
No. 8 Zhihui Road Chancheng District Foshan City Guangdong Province
P.R.China
IV Change to Company Registered Information
Unified social credit code 91440000190352575W
Change to principal activity of the
Unchanged
Company since going public (if any)
In April 2006 the State-owned Assets Supervision and Administration Commission
(SASAC) of Foshan Municipal People’s Government the former controlling
shareholder of the Company transferred 13.47% of shares it held in the Company to
OSRAM Prosperity Holding Company Limited (later renamed as "OSRAM Holding
Company Limited") and at the same time SASAC of Foshan Municipal People’s
Government transferred 10.50% of shares it held in the Company to Prosperity Lamps
& Components Limited. Upon completion of such transfer the biggest shareholder of
the Company was OSRAM Prosperity Holding Company Limited and the Company
had no any controlling shareholder or actual controller. In December 2015 OSRAM of
Germany transferred 100% equity it held in OSRAM Holding Company Limited
(OSRAM Holding Company Limited held 13.47% of shares of the Company being the
biggest shareholder of the Company and later renamed as "Hongkong Wah Shing
Holding Company Limited") to Electronics Group. In addition Electronics Group and
its parties acting in concert (Rising Capital Shenzhen Rising Investment and Hong
Kong Rising Investment) held 23.144% of the shares of the Company through
increasing their shareholding of the Company. Electronics Group and its parties acting
in concert became the controlling shareholder of the Company and Electronics Group
Every change of controlling shareholder
is a wholly-owned subsidiary of Rising Holdings Group. In December 2021 wholly-
since incorporation (if any)
owned subsidiaries of Rising Holdings Group Rising Capital and Shenzhen Rising
Investment transferred 5.94% of shares they held in the Company to Rising Holdings
Group through transfer by agreement for no compensation. Therefore Rising Holdings
Group and its parties acting in concert held 30% of shares in the Company. In February
2022 the Company repurchased and retired certain shares and Rising Holdings Group
and its parties acting in concert held 30.82% of shares in the Company. In November
2023 the Company carried out a private placement of 186783583 shares of A-stock to
specific parties of which Rising Holdings Group subscribed for 46695895 shares. As
such Rising Holdings Group and its parties acting in concert held 30.12% of shares in
the Company. From June 3 2024 to November 8 2024 Electronics Group and Hong
Kong Wah Shing increased their shareholdings in the Company by 18342550 shares
accounting for 1.18% of the Company’s total share capital. As of December 31 2024
Rising Holdings Group and its parties acting in concert held 31.30% of shares in the
Company. In 2025 the Company repurchased shares for retirement and Electronics
Group increased its shareholding in the Company. As of December 31 2025 Rising
Holdings Group and its parties acting in concert held 32.31% of shares in the
Company.
8Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
V Other Information
The independent audit firm hired by the Company:
Name WUYIGE Certified Public Accountants LLP
Office address Room 2206 22/F 1 Zhichun Road Haidian District Beijing
Accountants writing signatures He Xiaojuan and Wang Xiaohan
The independent sponsor hired by the Company to exercise constant supervision over the Company in the
Reporting Period:
□ Applicable □ Not applicable
Name of sponsor Office address Name of representative Period of supervision
Guotai Haitong Securities
No. 618 Shangcheng Road
Co. Ltd. (formerly known as Xu Zhenyu and Yang From December 4 2023 to
China (Shanghai) Pilot Free“Guotai Junan Securities Co. Haoyue December 31 2025Trade ZoneLtd.”)
The independent financial advisor hired by the Company to exercise constant supervision over the Company in
the Reporting Period:
□ Applicable□ Not applicable
VI Key Financial Information
Indicate whether there is any retrospectively restated datum in the table below.□ Yes□ No
2025-on-2024 change
202520242023
(%)
Operating revenue
8796808970.589048237647.14-2.78%9057292003.90
(RMB)
Net profit attributable
to the listed company’s 214845871.24 446184021.97 -51.85% 290357652.22
shareholders (RMB)
Net profit attributable
to the listed company’s
shareholders before 83903640.69 97753307.23 -14.17% 274838768.63
exceptional gains and
losses (RMB)
Net cash generated
from/used in operating 297149393.01 598115335.88 -50.32% 1174389978.98
activities (RMB)
Basic earnings per
0.13990.2905-51.84%0.2128
share (RMB/share)
Diluted earnings per
0.13980.2881-51.48%0.2108
share (RMB/share)
Weighted average
3.21%6.94%-3.73%5.51%
return on equity (%)
December 31 2025 December 31 2024 Change of December December 31 2023
31 2025 on December
9Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
312024(%)
Total assets (RMB) 17167245635.67 17159763456.64 0.04% 16934439915.02
Equity attributable to
the listed company’s 6834820501.84 6574304305.27 3.96% 6285442808.19
shareholders (RMB)
Indicate whether the lower of the net profit attributable to the listed company’s shareholders before and after
exceptional gains and losses was negative for the last three accounting years and the latest independent
auditor’s report indicated that there was uncertainty about the Company’s ability to continue as a going concern.□ Yes□ No
Indicate whether the lowest of the Company’s audited gross profit net profit and net profit before exceptional
gains and losses for the Reporting Period is negative.□ Yes□ No
VII 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 under CAS and IFRS
□ Applicable□ Not applicable
No difference for the Reporting Period.
2. Net Profit and Equity under CAS and Foreign Accounting Standards
□ Applicable□ Not applicable
No difference for the Reporting Period.VIII Key Financial Information by Quarter
Unit: RMB
Q1 Q2 Q3 Q4
Operating revenue 2145097615.85 2240633503.93 2146468712.59 2264609138.21
Net profit attributable
to the listed company’s 64757120.39 50236631.85 26013078.35 73839040.65
shareholders
Net profit attributable
to the listed company’s
shareholders before 61595567.60 44481416.69 15947121.16 -38120464.76
exceptional gains and
losses
Net cash generated
from/used in operating -114950715.22 124795728.17 31289232.66 256015147.40
activities
10Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Indicate whether any of the quarterly financial data in the table above or their summations differs materially
from what have been disclosed in the Company’s quarterly or interim reports.□ Yes□ No
IX Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item 2025 2024 2023 Note
Mainly the
expropriation
compensation for
Gain or loss on disposal of non-current assets
land use rights and
(inclusive of impairment allowance write- 138973197.06 374276636.74 11286004.48
buildings of
offs)
subsidiary Nanjing
Fozhao in the
period
Government grants recognized in current
profit or loss (exclusive of those that are
closely related to the Company’s normal
business operations and given in accordance 50583661.71 51867148.37 52146676.20
with defined criteria and in compliance with
government 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
1424910.153881370.83-10070899.66
financial assets and liabilities (exclusive of
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 charged to 1503705.43 665872.11 224271.91
current profit or loss
Reversed portions of impairment allowances
for receivables which are tested individually 12965744.52 16742832.57 573448.92
for impairment
Gain equal to the amount by which
investment costs for the Company to obtain
subsidiaries associates and joint ventures are
2131597.43
lower than the Company’s enjoyable fair
value of identifiable equity of investees when
making investments
Gain or loss on debt restructuring 610478.39 -368531.60
Non-operating income and expense other
87950.3011943647.794424223.10
than the above
Less: Income tax effects 46874285.60 65001245.07 5440558.97
Non-controlling interests effects (net of
28333131.4147708614.4337624282.39
tax)
Total 130942230.55 348430714.74 15518883.59 --
11Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.
12Foshan Electrical and Lighting Co. Ltd. Annual 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 Liaowang Auto Lamp NationStar Optoelectronics Hule Electric and 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 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 OEM
market 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
communications display and lighting products general lighting automotive lighting sterilization and
purification plant lighting and other fields.ii. Business models
1. Procurement model
13Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.iii. Main driving forces for growthThe Company is committed to the 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 Electric and 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.
14Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 Industry Overview for the Reporting Period
1. Lighting
In 2025 amid a complex and severe macro environment China’s lighting industry entered a critical stage
of deep adjustment and structural reshaping. From the demand side the continued adjustment of the domestic
real estate market and changes in the investment structure led to weak market growth; in terms of the export
trade environment the continuous fluctuations in international trade policies and the frequent geopolitical
conflicts led to a significant decline in the industry’s export value. The dual squeeze of internal and external
demand accelerated the survival of the fittest within the industry. Small and medium-sized enterprises faced a
survival crisis due to shrinking orders and persistently high costs and market concentration continued to
increase amid the growing pains. However against the backdrop of overall market weakness multiple segments
demonstrated strong development momentum. Specialized segments such as smart lighting healthy lighting
and automotive lighting maintained solid growth because they aligned with long-term trends such as the
development of intelligent technologies rising health awareness and growing personalized demand. All these
imposed higher requirements on LED light quality reliability intelligent control and interdisciplinary
integration becoming important engines driving technological innovation and value enhancement in the
industry. The logic of industry competition accelerated its shift from homogeneous competition in prices to
differentiated competition in technology ecosystems and scenario-based solutions. Leading enterprises with
advantages in brand technology and capital continuously extended their business boundaries by optimizing
15Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
product structures actively expanding into high-value-added fields and continuously broadening application
scenarios demonstrating stronger operational resilience amid overall industry pressure.
2. Automotive lighting
The rapid expansion of China’s new energy vehicle industry has profoundly reshaped the competitive
landscape across the entire automotive supply chain. As one of the core supporting components automotive
lighting is confronted with both unprecedented opportunities for transformation and the practical challenge of
downward price pressure. On the one hand market demand continues to expand. Driven by policies
technologies costs and consumer trends the industry is accelerating its technological upgrading with
intelligence emerging as a core competitive strength. Matrix LED headlamps adaptive driving beam (ADB)
systems laser headlamps digital pixel (DPL) lamps and smart lighting technologies deeply integrated with
ADAS systems are gaining rapid adoption. Vehicle lighting is becoming increasingly interconnected with the
Internet of Vehicles and human-machine interaction systems. Innovative features such as dynamic welcome
lighting and interactive projection lamps are emerging continuously transforming automotive lamps from
traditional functional components into key enablers of vehicle intelligence and brand differentiation. On the
other hand cost-reduction demands from automakers have been passed down the supply chain putting
downward pressure on headlight pricing and squeezing overall gross margins across the industry. Meanwhile
domestic automotive lighting manufacturers have steadily increased their market share by virtue of their fast
response strong cost control capabilities and continuous technological accumulation. Leveraging their cost-
performance advantages and technological progress they have also actively explored overseas markets and
participated in global competition. Against this backdrop of coexisting challenges and opportunities the
automotive lighting industry is entering a new stage of high-quality development.
3. LED packaging
The LED packaging industry is forging ahead amid a mix of challenges and opportunities. On the one hand
the industrial competitive landscape is undergoing accelerated restructuring. Buffeted by volatile external
demand and an uncertain trading environment the industry has entered a phase of transitional adjustment
marked by overall volume consolidation and margin pressure. Many enterprises are facing a situation where
revenue grows without a corresponding rise in profits while market consolidation and integration gather pace.Resources are increasingly concentrated among industry leaders with superior technological scale and financial
strengths leading to a profound reshaping of the competitive structure. On the other hand technological
16Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
innovation continues to fuel application upgrades. The integration of LED technology with frontier technologies
such as the Internet of Things artificial intelligence and big data is deepening steadily driving advancements
toward more customized scenario-based and user-centric solutions. High-value-added segments including
automotive LEDs UV LEDs and infrared sensing are demonstrating robust growth resilience. Continuous
breakthroughs in Mini/Micro-LED technologies are lowering costs and raising penetration rates in high-end
applications such as ultra-high-definition displays in-vehicle screens and virtual production unlocking new
market potential. At the same time in response to shifting global market demand—particularly the rapid rise of
demand in emerging markets—industry enterprises are actively expanding into overseas markets to increase
their market share.III Core Competitiveness Analysis
The Company has been dedicated to the R&D manufacturing and sale of lighting products since its
establishment. Through measures such as continuous investment in R&D and innovation branding channel
development as well as 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
The Company has established a multi-dimensional qualification system represented by its status as a
National High-Tech Enterprise a National Intellectual Property Demonstration Enterprise and a Guangdong
Manufacturing Champion Demonstration Enterprise in LED bulbs and LED intelligent green luminaries. It has
also been listed as one of the Top 100 Innovative Enterprises in Guangdong Province and one of the Top 100
Manufacturing Enterprises in Guangdong Province underscoring its strong technological innovation
capabilities and industry-leading position. 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. The Company and its subsidiaries have established 35 research and development platforms
including the "Guangdong Provincial Enterprise Technology Center" "Guangdong Provincial Doctoral
Workstation" "Guangdong Provincial Science and Technology Expert Workstation" "Postdoctoral Research
Station (Branch Station)" "Guangdong Provincial Engineering Technology Research and Development Center
for Electric Light Sources" and the "Guangdong Provincial Industrial Design Center" forming a
comprehensive innovation system that supports cutting-edge technology research and development as well as
the commercialization of research findings. The Company has taken the lead in undertaking a number of
17Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
national provincial and ministerial-level 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 achieving continuous breakthroughs in core technologies. Backed by its
outstanding R&D and innovation capabilities the Company has been awarded major scientific and
technological honors such as the First Prize for Scientific and Technological Progress in China’s Machinery
Industry the Second Prize of the China Invention and Entrepreneurship Achievement Award and the Second
Prize for Scientific and Technological Progress from the China National Light Industry Council. It has also won
a host of authoritative international and domestic design awards including the German iF Design Award the
German Red Dot Design Award the US MUSE Design Awards Gold Winner and the Industrial Design Award
of the BRICS Industrial Innovation Competition. These achievements fully demonstrate its innovative strength
in integrating technology and design. The Company has established a presence in optics spectroscopy
electronics IoT and AI and has developed systematic technological barriers with independent intellectual
property providing solid support for product innovation and industrial upgrading. As at the end of the
Reporting Period the Company and its subsidiaries have cumulatively obtained over 2900 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 Wuhan University University of Electronic Science and
Technology of China and Wuhan University of Technology 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 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. As a National High-Tech Enterprise and a provincial-level specialized
refined distinctive innovative enterprise Hule Electrical Equipment boasts industry-leading technologies
independently developed for marine LED lighting and navigation signal lights. Its products feature excellent
resistance to high and low temperatures low electromagnetic interference and strong sealing and protection
18Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
performance. The marine products have obtained certification from the China Classification Society (CCS) and
are also accredited by major international classification societies including ABS BV LR and RINA fully
meeting the application standards for all scenarios of ship lighting. NationStar Optoelectronics has created 14
research platforms at or above the 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)" and "National Manufacturing Individual Champion". Closely
following cutting-edge technology trends across the industry it has successfully launched a series of frontier
products such as MIP display devices and GOB panels achieving multiple breakthroughs in specialized fields.Brand advantage
As a China Time-Honored Brand with 68 years of deep cultivation in the lighting industry the Company
has built industry-leading core brand advantages by relying on its profound brand heritage and long-term
strategic commitment forming a key pillar supporting the steady development of the enterprise. Guided by the
"Technology-FSL" strategy the Company has pursued a development path focused on specialization and high-
end positioning achieving a continuous rise in brand value. With a brand value of RMB47507 million it firmly
ranks second in the industry and has long been listed among the "Top 500 Most Valuable Chinese Brands" and
"Top 500 Asia Brands." By launching the brand IP "Light Xiaoming" and a series of cultural and creative
content as well as renewing its VI system product packaging and retail stores the Company has infused its
time-honored brand with a vibrant contemporary character presenting a youthful technological and fashionable
brand image. Leveraging mainstream media including Xinhua News Agency and Southern Plus together with
new media platforms such as WeChat Xiaohongshu and Douyin the Company has rolled out featured columns
including "Light of Excellence" and "Mingming Knows It All". Through storytelling and scenario-based
communication it has continuously strengthened brand recognition in both professional and consumer markets
steadily advancing its transformation from an industry brand to a public-facing brand. After years of
accumulation FSL has become one of the most influential and popular industrial brands in China. Its profound
brand heritage extensive market recognition and strong brand appeal have become the core support and
enduring competitiveness for the steady growth of the Company’s market performance. Liaowang Auto Lamp
19Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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. With over 40 years of
expertise in the ship lighting sector Hule Electrical Equipment has established itself as a leading player in
China’s ship lighting market. Its products are widely applied across various vessels and offshore engineering
scenarios enjoying high recognition within the industry. 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. Liaowang Auto Lamp is a major manufacturer in the domestic
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. Hule Electric is one of the major manufacturers in the domestic ship lighting industry and
has established long-term and stable cooperative relationships with large domestic shipbuilding enterprises.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.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
20Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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. With
manufacturing bases in Nanning Liuzhou Chongqing Qingdao and Suzhou Liaowang Auto Lamp has an
annual production capacity of more than 5 million sets of automotive lights. Hule Electric 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. 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 an 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. Through independent investment and external mergers and acquisitions the
Company has expanded its industrial presence to automotive lighting marine lighting sports lighting aviation
lighting and other sectors forming a vertically integrated industrial chain covering upstream to downstream and
a horizontally diversified layout spanning general to professional applications. This has further enhanced the
Company’s competitiveness and presence in the industry.IV Analysis of Principal Operations
1. Overview
In 2025 the domestic and international environment was complex and challenging. Domestically affected
by the continued adjustment of the real estate market and changes in the investment structure market demand
remained weak amid increasingly fierce market competition. International trade was hampered by escalating
geopolitical tensions rampant protectionism and frequent trade barriers. The external trade environment grew
increasingly complex resulting in a notable full-year decline in industry export volume. Coupled with
unfavorable factors such as rising raw material prices all enterprises faced pressure in production and
operations. In the face of this situation the Company adhered to the work strategy of "Three Leads Three
Stabilizations Four Transformations and Five Strengths" and focused closely on the business theme of "Lean
Management Breakthrough and Climbing Higher". Guided by the "Climbing Plan 2.0" and the "Industrial
21Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Leap Plan" the Company continued to focus on market expansion technology empowerment lean operations
deepening reform and risk prevention and control. Overall the scale of business operations has been
stabilized.In 2025 the Company recorded operating revenue of RMB8.797 billion and a net profit attributable
to its shareholders of RMB0.215 billion .During the Reporting Period the Company carried out the following key initiatives:
(1) Market expansion driven by all-around efforts to build a diversified development system
First the domestic counteroffensive was deepened and upgraded. First the domestic counteroffensive was
deepened and upgraded. The Company stepped up efforts to penetrate the retail market expanded more high-
quality outlets through the “special operations zone” model won bids from multiple large corporate groups and
design institutes and implemented a number of multi-million-RMB projects resulting in an 8% year-on-year
increase in revenue from the commercial lighting business. By fully leveraging the national subsidy program
integrating cross-platform resources launching AI tools and optimizing its product portfolio structure the e-
commerce sector achieved a year-on-year revenue growth of over 20%. Second the export expansion drive
broke new ground and expanded the global footprint. The Company accelerated market expansion in regions
including the Belt and Road and Europe and won bids for overseas lighting projects such as the University of
Ethiopia. Revenue from the lighting business in the European market and the Southeast Asia market rose by 9%
and 19% year-on-year respectively gradually establishing a diversified overseas market system. Third
breakthrough initiatives in new growth areas were further advanced. In terms of automotive lighting focusing
on the mid-to-high-end market the Company secured more than 10 new projects for mid-to-high-end vehicle
models and new module projects respectively leading to a year-on-year revenue increase of 5.63% for the
automotive lighting business. In marine lighting the Company won the bid for a microalgae carbon
sequestration project successfully delivered and launched the "Zhanjiang Bay No. 1" aquaculture light control
system and simultaneously expanded into the overseas shipbuilding and ship lighting market resulting in
substantial year-on-year revenue growth. In sports lighting the Company secured projects including the
National Youth Football Training Base and Gaozhou Olympic Sports Center achieving new breakthroughs. In
age-friendly lighting it was shortlisted in the brand libraries of several professional elderly care enterprises. Its
independently developed age-friendly smart home system won the Gold Award at the National Competition for
Elderly-Oriented Design Competition and two products were selected into the 2025 Catalog for the Promotion
of Elderly Products by the Ministry of Industry and Information Technology making the Company the only
22Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
lighting enterprise included in the catalog. In packaging devices the Company continued to deepen cooperation
with leading enterprises in security display panels home appliances and other sectors while exploring the
development potential of display applications in emerging fields such as automotive glass cabin ambient
lighting power banks central control screens and instrument panels achieving diversified expansion of product
application scenarios.
(2) Deepened technology-enabled innovation to activate the core drivers of development
First the Company advanced a number of collaborative innovation achievements. It deepened industry-
university-research cooperation focusing on smart lighting healthy lighting marine lighting aviation lighting
and other fields and carried out extensive cooperation with renowned universities research institutions and
partners. By integrating scientific research resources with industrial demands it jointly established collaborative
innovation centers and developed professional lighting products in response to market needs. Second the
Company delivered a host of hardcore technological breakthroughs. It launched AI Light Code technology
enabling full-scenario intelligent spectral applications in residential commercial and other settings. It upgraded
the lighting system for the national key project "Jiaolong" submersible enhancing its deep-sea exploration and
precise search capabilities at a depth of 10000 meters. The MDL intelligent human-vehicle interaction
technology was applied to mass-produced new energy vehicle models marking a breakthrough. The patent "A
Quantum Dot Light-Emitting Device and Manufacturing Method Therefor" won the China Patent Excellence
Award. The microwave induction LED key technology won the third prize for scientific progress from the
China Light Industry Council. LED intelligent green luminaries were recognized as a "Guangdong
Manufacturing Champion Demonstration Enterprise" and six products including "High-Performance MIP
Display Devices" were awarded "Guangdong Famous & High-Quality High-Tech Products". Third the
Company contributed to industry standards. It added 455 new authorized patents and obtained certification for
the AS9100D aerospace quality system and IECEx international explosion-proof certification. It hosted national
mandatory standards revision seminars and issued 20 standards focusing on energy efficiency improvement and
consumer product quality grading continuously strengthening its qualifications and industry presence.
(3) Lean operations to enhance quality and efficiency consolidating a solid foundation for
development
First the Company coordinated cost reduction and efficiency enhancement. Starting with the optimization
of product design schemes it promoted cost reduction for core products and improved the product structure
23Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
further enhancing product competitiveness. Second the supply chain was rectified and optimized to boost
efficiency. The Company implemented hierarchical and categorized management and performance evaluation
for the supply chain improved the supply chain management system and leveraged supply chain financial
instruments to optimize capital flow efficiency. It strictly enforced the bidding and competitive pricing system
effectively lowering procurement costs. Third intelligent transformation and digital upgrading drove efficiency
gains. Combining application scenarios such as smart customer services the Company launched the
construction of AICG projects rolled out systems including the PLM system and financial sharing services and
carried out more than 120 automation upgrades continuously improving production efficiency.
(4) New brand image to enhance brand influence
First the Company upgraded its brand image. It launched the new brand IP "Light Xiaoming" completed a
full renewal of brand visuals including the VI system product packaging and retail terminals and developed
cultural and creative products to enrich brand connotation presenting a youthful technological and fashionable
brand image. Second the Company strengthened brand communication. Leveraging mainstream media
including Xinhua News Agency and Southern Plus together with new media platforms such as WeChat
Xiaohongshu and Douyin the Company told the FSL story through featured columns including "Light of
Excellence" and "Mingming Knows It All" in a storytelling and scenario-based manner continuously deepening
brand recognition in both professional and consumer markets. Third the Company took concrete measures for
brand protection. It established a special task force for anti-counterfeiting and launched online and offline
campaigns against trademark infringement and counterfeit products through a multi-dimensional model
combining civil liability administrative penalties and criminal crackdowns. This has further improved the
integrated brand protection system coordinated by legal business and technical teams.
2. Revenue and Cost Analysis
(1) Breakdown of Operating Revenue
Unit: RMB
20252024
As % of total As % of total Change (%)
Operating revenue operating revenue Operating revenue operating revenue
(%)(%)
Total 8796808970.58 100% 9048237647.14 100% -2.78%
By operating division
Lighting products
5404657063.9761.44%5498230129.5160.77%-1.70%
and luminaries
24Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Electronic
component 2505250956.82 28.48% 2709267008.01 29.94% -7.53%
manufacturing
Export trade and
886900949.7910.08%840740509.629.29%5.49%
other
By product category
General lighting
3029903446.4834.45%3226311712.8335.66%-6.09%
products
LED packaging
2261567606.5425.71%2467584592.1527.27%-8.35%
and components
Auto lamps 2225917346.52 25.30% 2107363678.88 23.29% 5.63%
Trade and other 1279420571.04 14.54% 1246977663.28 13.78% 2.60%
By operating segment
Domestic 6967139709.49 79.20% 7069352913.60 78.13% -1.45%
Overseas 1829669261.09 20.80% 1978884733.54 21.87% -7.54%
By sales model
Distribution 2969809086.18 33.76% 3235221661.38 35.76% -8.20%
Other 5826999884.40 66.24% 5813015985.76 64.24% 0.24%
(2) Operating Division Product Category Operating Segment and Sales Model Contributing over 10%
of Operating Revenue or Operating Profit
□Applicable □ Not applicable
Unit: RMB
Gross YoY change in YoY change in YoY change in
Operating revenue Cost of sales profit operating cost of sales gross profit
margin revenue (%) (%) margin (%)
By operating division
Lighting products
5404657063.974296857498.7520.50%-1.70%0.77%-1.95%
and luminaries
Electronic
component 2505250956.82 2146396355.82 14.32% -7.53% -8.05% 0.48%
manufacturing
Export trade and
886900949.79798165228.2210.01%5.49%3.78%1.48%
other
By product category
General lighting
3029903446.482254839510.0425.58%-6.09%-5.86%-0.18%
products
LED packaging
2261567606.541907376612.4515.66%-8.35%-7.25%-1.00%
and components
Auto lamps 2225917346.52 1930734570.62 13.26% 5.63% 10.37% -3.73%
Trade and other 1279420571.04 1148468389.68 10.24% 2.60% -1.54% 3.78%
By operating segment
Domestic 6967139709.49 5665162928.65 18.69% -1.45% -0.40% -0.85%
Overseas 1829669261.09 1576256154.14 13.85% -7.54% -6.14% -1.28%
By sales model
Distribution 2969809086.18 2205638531.52 25.73% -8.20% -8.02% -0.15%
Other 5826999884.40 5035780551.27 13.58% 0.24% 1.33% -0.93%
Core business data of the prior year restated according to the changed statistical caliber for the Reporting Period:
□ Applicable□ Not applicable
25Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(3) Whether Revenue from Physical Sales Is Higher than Service Revenue
□ Yes □ No
Operating division Item Unit 2025 2024 Change (%)
Unit sales 0000 units 75143 71322 5.36%
Lighting products
Output 0000 units 75398 71889 4.88%
and luminaries
Inventory 0000 units 12395 12140 2.10%
Electronic Unit sales 0000 units 15725035 15692588 0.21%
component Output 0000 units 17719096 15693050 12.91%
manufacturing Inventory 0000 units 5499300 3505239 56.89%
Any over 30% YoY movements in the data above and why:
□ Applicable □ Not applicable
Due to intensified market competition during the Reporting Period the Company implemented product
structure optimization. Sales volume growth was temporarily lower than production growth leading to an
increase in inventory.
(4) Execution Progress of Major Signed Sales and Purchase Contracts in the Reporting Period
□ Applicable□ Not applicable
(5) Breakdown of Cost of Sales
By operating division and product category:
Unit: RMB
20252024
As % of
Operating division Item As % oftotal cost Change (%)
Cost of sales Cost of sales total cost of
of sales
sales (%)
(%)
Lighting products Raw
3355258726.3146.34%3438364079.3546.67%-2.42%
and luminaries materials
Lighting products
Labor cost 486886961.52 6.72% 428258110.88 5.81% 13.69%
and luminaries
Depreciati
Lighting products
on and 454711810.92 6.28% 397433697.50 5.39% 14.41%
and luminaries
other
Electronic
Raw
component 1529344318.35 21.12% 1654069012.61 22.45% -7.54%
materials
manufacturing
Electronic
component Labor cost 150137883.37 2.07% 157574627.02 2.14% -4.72%
manufacturing
Electronic
Manufactu
component 466914154.10 6.45% 522784348.66 7.10% -10.69%
ring costs
manufacturing
Trade Other 536592294.40 7.41% 592011916.96 8.04% -9.36%
Other Other 261572933.82 3.61% 177055108.51 2.40% 47.74%
26Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Total 7241419082.79 100.00% 7367550901.49 100.00% -1.71%
Unit: RMB
20252024
As % of
Product category Item As % oftotal cost Change (%)
Cost of sales Cost of sales total cost of
of sales
sales (%)
(%)
General lighting Raw
1809615634.0024.99%1928152601.2026.17%-6.15%
products materials
General lighting Labor
259660029.303.59%263720327.803.58%-1.54%
products cost
Deprecia
General lighting
tion and 185563846.74 2.56% 203309638.26 2.76% -8.73%
products
other
General lighting
Subtotal 2254839510.04 31.14% 2395182567.26 32.51% -5.86%
products
Raw
Auto lamps 1443387302.06 19.93% 1403947879.47 19.06% 2.81%
materials
Labor
Auto lamps 223034968.24 3.08% 158140979.51 2.15% 41.04%
cost
Deprecia
Auto lamps tion and 264312300.32 3.65% 187279582.58 2.54% 41.13%
other
Auto lamps Subtotal 1930734570.62 26.66% 1749368441.56 23.75% 10.37%
LED packaging and Raw
1422515058.6419.64%1504607255.4820.42%-5.46%
components materials
LED packaging and Labor
114934531.591.59%129901398.231.76%-11.52%
components cost
Deprecia
LED packaging and
tion and 369927022.22 5.11% 422049865.45 5.73% -12.35%
components
other
LED packaging and
Subtotal 1907376612.45 26.34% 2056558519.16 27.91% -7.25%
components
Raw
Trade and other 745677344.36 10.30% 847737272.77 11.51% -12.04%
materials
Labor
Trade and other 39395315.76 0.54% 34070032.36 0.46% 15.63%
cost
Deprecia
Trade and other tion and 101822795.74 1.41% 107578959.87 1.46% -5.35%
other
Trade and other Subtotal 886895455.86 12.25% 989386265.00 13.43% -10.36%
Other Other 261572933.82 3.61% 177055108.51 2.40% 47.74%
(6) Changes in the Scope of Consolidated Financial Statements for the Reporting Period
□ Yes □ No
For details see “IX Changes to the Consolidation Scope” in “Part VIII Financial Statements” of this Report.
(7) Major Changes to the Business Scope or Product or Service Range in the Reporting Period
□ Applicable□ Not applicable
(8) Major Customers and Suppliers
Major customers:
27Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Total sales to top five customers (RMB) 1968096052.47
Total sales to top five customers as % of total sales of the
22.38%
Reporting Period (%)
Total sales to related parties among top five customers as % of
0.00%
total sales of the Reporting Period (%)
Information about top five customers:
Sales revenue contributed for As % of total sales revenue
No. Customer
the Reporting Period (RMB) (%)
1 Customer A 679633771.41 7.73%
2 Customer B 459241377.19 5.22%
3 Customer C 398998308.93 4.54%
4 Customer D 279291040.49 3.17%
5 Customer E 150931554.45 1.72%
Total -- 1968096052.47 22.38%
Other information about major customers:
□Applicable □ Not applicable
None of the top five customers is a related party of the Company.Major suppliers:
Total purchases from top five suppliers (RMB) 569646423.47
Total purchases from top five suppliers as % of total purchases
11.02%
of the Reporting Period (%)
Total purchases from related parties among top five suppliers
0.00%
as % of total purchases of the Reporting Period (%)
Information about top five suppliers:
Purchase in the Reporting
No. Supplier As % of total purchases (%)
Period (RMB)
1 Supplier A 168039572.94 3.25%
2 Supplier B 107515406.03 2.08%
3 Supplier C 101966533.00 1.97%
4 Supplier D 100229123.80 1.94%
5 Supplier E 91895787.70 1.78%
Total -- 569646423.47 11.02%
Other information about major suppliers:
□Applicable □ Not applicable
None of the top five suppliers is a related party of the Company.Indicate whether the Company’s trading revenue accounted for more than 10% of its total operating revenue
during the Reporting Period.□ Applicable□ Not applicable
28Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3. Expense
Unit: RMB
Main reason for any significant
2025 2024 Change (%)
change
Selling expense 357637822.70 349356200.73 2.37%
Administrative expense 481252499.96 484757347.38 -0.72%
Currency fluctuations in the
Finance costs -13152507.21 -55499247.20 76.30%
period
R&D expense 539265201.03 548670366.07 -1.71%
4. R&D Investments
□Applicable □ Not applicable
Expected impact on
Names of main Project the future
Project objectives Objectives to be achieved
R&D projects progress development of the
Company
This project aims to leverage AI
Enhance the
spectral automatic adaptation
intelligence and
technology to build a full-chain
health attributes of
technical system of "multi-scenario
Build a multi-scenario lighting promote the
Development standard spectral library + AI spectral
spectral library develop a personalized and
and Application large model + AI interactive integrated
web-based AI spectral green development
of the AI products" achieving precise real-time Completed
model and apply the of smart lighting
Spectral Expert spectral output addressing the pain
technology to multiple create AI + lighting
Model points of difficult spectral adaptation
lighting products. demonstration
low efficiency and insufficient
solutions and
intelligence in traditional lighting and
strengthen market
covering lighting needs across multiple
competitiveness.fields.This project aims to create products that
Enhance brand
can provide reliable efficient and safe
R&D of High- Comprehensively enhance influence and the
lighting in harsh environments through
weather- the weather resistance market
complex processes integrating multiple
resistance Tri- Completed lighting performance and competitiveness of
disciplines including optics
Proof Bracket energy-saving performance high-weather-
electronics materials mechanics
Lights of luminaries. resistance lighting
thermodynamics and safety
products.engineering.Research on
Develop an age-
Age-friendly This project aims to take technological Break through the barriers
friendly lighting
Lighting innovation as the driving force focus between traditional lighting
product system to
Design on home community elderly care and and age-friendly needs
Completed help the Company
Innovation and other scenarios and build a core system build a closed-loop service
expand into the
Key of "light health + AI intelligent system and achieve
silver economy
Technology monitoring". business implementation.market.Application
This project aims to address the pain Complete the design of Enhance the
Research on the
points of traditional aircraft cabin multiple cabin scenario Company’s
Design Scheme
lighting which has a single function solutions achieve technological
of Cabin
and can not meet passengers’ needs for technological and capabilities in the
Scenario Completed
comfort mood regulation and healthy integration breakthroughs field of civil aircraft
Lighting
circadian rhythm management by and advance cabin lighting cabin lighting and
Systems for
upgrading the civil aircraft cabin from basic lighting to smart expand into new
Civil Aircraft
lighting system solution. healthy scenarios. application scenario
29Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
markets.This project aims to develop heliport Enrich the product
luminaries that comply with civil Develop products with line of airfield
R&D of High
aviation industry standards enrich the stable performance and luminaries enhance
Reliability
product line structure and meet the Trial multiple protection market
Airport Aiming
precise aiming stable warning production functions filling the competitiveness and
Point
requirements of helicopter airports in Company’s gap in the drive the growth of
Luminaries
daytime nighttime and complex heliport segment. the airport lighting
weather conditions. business.This project aims to develop a low-cost
Development of highly reliable airfield luminary that
High- complies with civil aviation standards Reduce product life-cycle Enhance product
Performance enhances taxiing guidance safety and costs and meet the quality and our
In progress
Airport efficiency and meets the market’s requirements of green strengths in the field
Taxiway Edge growing demands for this lighting airports. of airport lighting.Lights product in terms of cost performance
and reliability.Enhance the
This project aims to overcome the
Complete the in-house Company’s
Development of technical challenges of sports lighting
R&D and manufacturing of technical strength in
High-Power involving high standards and high
In progress high-power sports lighting sports lighting and
Sports Lighting stability and to provide high-quality
products enhancing product increase its market
Products lighting products for professional and
performance. share in the sports
public sports venues.lighting market.This project aims to research the water-
sealing and corrosion-resistant
Development of technology for deep-sea lighting
Launch a series of deep-sea Enhance
Deep-Sea products. It aims to break through the
lighting products technological
Luminaries and technical barriers of deep-sea pressure-
advancing efforts to localize capabilities in deep-
Their Semi- resistant packaging and environmental In progress
the development of deep- sea lighting and
Automated reliability developing reliable easy-to-
sea lighting products and increase market
Manufacturing maintain deep-sea lighting products
promoting their application. share.Process with high brightness uniform
illumination and a high color rendering
index.This project undertakes the research
and development task of the sub-topic
Directed The project will“Development and Application ofAggregation enhance the
High-Efficiency Fish Luring Lights and
and Intelligent This project aims to develop Company’s
Control Systems for Deep-Sea Fisheries
Equipment fish aggregation lamps for technologicalin the South China Sea” as part of the In progress
Technology for aquatic environments to strength in fish
national key R&D program. It also
Deep-Sea support industrialization. aggregation lighting
collaborates in the integration and
Fishery to support
application demonstration of new deep-
Resources industrialization.sea fishery resource capture
technologies in the South China Sea.This project aims to use highly efficient Enhance the
LED light sources and high-efficiency Company’s
R&D of High- Improve the ship lighting
diffuser plates to provide uniform and technological
Reliability Ship product portfolio and
soft light avoid problems of glare and Completed capabilities and
Lighting enhance the quality of ship
dazzling brightness and improve the product
Luminaries lighting products.lighting working environment for crew competitiveness in
members. ship lighting.Analysis This project aims to focus on the Enhance the light efficiency Promote the
Testing of analysis and testing of specific and carbon sequestration innovative
In progress
Specific microalgae light formulas and to study capacity of microalgae and upgrading of the
Microalgae the suitable illumination parameters for implement intelligent microalgae industry
30Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Light Formulas Spirulina Scenedesmus and Chlorella cultivation technology. and optimize the
and R&D of pyrenoidosa. application of
Intelligent intelligent
Cultivation cultivation systems.Systems
This project focuses on current
technical pain points of the LED tunnel Break through
light industry including low heat industry technical
dissipation efficiency poor color Achieve ultra-strong heat bottlenecks reduce
Development of
rendering and excessively high color dissipation high efficiency operation and
Highly
temperature. Leveraging innovative Completed and high color rendering for maintenance costs
Efficient LED
packaging and light source tunnel lights enhancing and enhance the
Tunnel Lights
technologies the R&D of a new type of environmental adaptability. competitiveness of
LED tunnel light is conducted to break the Company’s
through the performance limitations of products.existing products.This project aims to develop a new type
Expand smart light
of smart light pole integrating a highly
pole application
safe modular energy storage system Break through bottlenecks
Development of scenarios enhance
addressing the limitations on the in energy storage safety to
Energy Storage product reliability
application of smart light poles in areas Completed ensure the independent and
Smart Light and environmental
with unstable power grids or no mains stable operation of light
Poles attributes and
electricity and responding to the need poles.strengthen market
for upgrades to smart city lighting
competitiveness.systems.This project aims to develop an
innovative aerial virtual imaging Create orders for
Innovative Develop cutting-edge
system focusing on cutting-edge new product
Aerial Virtual imaging optical products
technological breakthroughs in the field In progress categories and
Imaging and maintain technological
of interactive display and to develop expand business
System leadership.core imaging optics products to secure a boundaries.leading position in the industry.This project aims to carry out research
and industrialization of MDL intelligent
Research and interactive display technology with a Consolidate
Industrializatio focus on continuous innovation and technological
Achieve technological
n of MDL breakthroughs in interactive display leadership and
Trial leadership in MDL and
Intelligent technologies. It will enhance product increase market
production implement its application in
Interactive performance and market share in the
automotive lighting.Display competitiveness through a phased automotive lighting
Technology approach to technology research and market.development and iterative mass
production.Enhance the
Company’s market
The project aims to upgrade and iterate Enhance luminous competitiveness
Digital interactive display technology performance and complete support the
Mass
Interactive transitioning from white light to red the implementation and Company in seizing
production
Luminaries II light display thereby expanding conversion into mass first-mover
application scenarios and usage scope. production. advantages and
drive business
growth.LED To meet the industrial demand to This project aims to develop The project will
Technology for improve light efficiency and reduce an LED technology system support the
Trial
Efficient energy consumption in LED plant for efficient cultivation in demonstration
production
Cultivation in lighting as well as the physiological modern agriculture through application of plant
Modern requirements of high light efficiency research on efficient LED lighting products in
31Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Agriculture and during crop breeding processes an LED epitaxial regulation for high-value crops.Its technology system for efficient modern agricultural
Demonstrative cultivation in modern agriculture will cultivation design and
Application be developed to promote the industrial fabrication processes of
application of LED technology in crop high light efficiency LED
breeding and the efficient production of chips as well as design and
high-value crops thereby driving the packaging processes of high
high-quality development of smart light efficiency LED
agriculture. devices. The goal is to
provide chip and device
support for the
manufacturing of
specialized LED luminary
systems dedicated to
efficient cultivation in
modern agriculture.This project aims to develop
a low thermal resistance and
highly reliable universal
deep ultraviolet (UV) LED
light source for pathogen
disinfection addressing the
technological and market
demands of deep UV LED
The This project aims to promote the
virus inactivation. It
Development integration between the public health
integrates intelligent This project will
and Application safety sector and the deep ultraviolet
identification and driving drive the upgrading
Demonstration LED industry by conducting research
control technologies and development of
of Deep on high-security and intelligent deep
Trial tailored to specific industries related to
Ultraviolet ultraviolet LED disinfection equipment
production application scenarios. The public disinfection
LED Modules and system solutions for the public
project also involves the using deep
and Equipment health domain. It strives to drive the
application of pathogen ultraviolet
for Public large-scale application of purification
disinfection equipment in technology.Health and and disinfection in the public health and
the field of public health
Other Fields logistics sectors.driving the upgrading and
development of industries
related to public
disinfection. Its goal is to
effectively prevent control
and eliminate the hazards of
sudden public health
emergencies.This project focuses on
research into high-density
highly efficient MIP
Development of integrated packaging
Key This project aims to overcome the key technology high-quality Deepen the MIP
Technologies technologies for ultra-high-definition color mixing technology for technology layout
for Ultra-High- Micro-LED display panels based on the MIP packaged devices and and focus on
Definition MIP packaging architecture so as to fill high-reliability MIP display collaborative
In progress
Micro-LED the domestic technological gap in high- panel packaging and innovation across
Display Panels end MIP devices and provide core defective pixel detection the ultra-high-
Based on the support for the large-scale and repair technology. It definition display
MIP Packaging industrialization of Micro-LED. aims to establish the full- industry chain.Architecture process chain integrating
Micro-LED chips MIP
device packaging and MIP
display panel integration
32Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
accelerate the resolution of
key technical challenges in
the Micro-LED industry
chain and seize the
commanding heights of
global next-generation
display technology.This project leverages its
technological advantages in
display packaging to further
Research and break through the
Based on the new opportunities created
Application of performance limitations of
by 5G+4K/8K ultra-high-definition
Key LED display devices and
display platform for indoor small-pitch
Technologies optimize the packaging
display application scenarios this The project will
for Indoor Fine- processes of display
project carries out the research on key increase product
Pitch LED Trial modules to improve their
technologies of indoor fine-pitch LED market share and
Display production utilization. It aims to
display devices seizes the consolidate core
Devices and promote the application and
technological heights in the field of new competitiveness
Modules for adoption of fine-pitch
displays forms a demonstration of new
Next- display devices in high-
displays and consolidates the core
Generation definition display terminal
competitiveness of enterprises.Displays products and seize the
technological high ground
in the field of new display
technologies.This project by tackling
core and critical processes
such as high-weather-
resistance GOB display
panel packaging curing
This project carries out systematic processes highly
research on the key technologies for waterproof and moisture-
Research and GOB display panel packaging and is resistant GOB display panel
Application of committed to developing high- packaging processes and Increase product
Key Packaging performance GOB display panels Trial highly anti-yellowing GOB market share and
Technologies helping enterprises achieve production display panel packaging consolidate core
for GOB technological upgrading and processes breaks through competitiveness.Display Panels transformation at a lower cost and the constraints of traditional
continuously injecting new vitality and SMD technology and has
momentum into the industry market. established a GOB
packaging technology
system providing solid
technical support for the
iterative upgrade of small-
pitch display products.This project focuses on tackling the key By conducting research on a
Research and technologies of ambient modules for new display module
Application of home appliance scenarios and integrating hand proximity
Ambient multifunctional display modules sensing lighter and thinner
Modules for aiming to promote the innovation and display modules high- Increase product
Home upgrade of intelligent display and Trial definition displays market share and
Appliance control products such as ambient production comparable to flexible consolidate core
Scenarios and modules for home appliance scenarios OLED screens colorful competitiveness.Multifunctional and multifunctional display modules LED display modules and
Display toward thinner more integrated and integrated intelligent
Modules multifunctional development support display modules this
the performance iteration of home project developed LED
33Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
appliance products and create a display modules with more
smarter more convenient and more vivid colors richer content
comfortable quality life for users. display and stronger
interactivity effectively
enhancing the intelligence
level of display modules
and user experience
strengthening the
competitiveness of core
technologies and providing
strong support for product
upgrades and scenario-
based applications of smart
home appliances.This project conducts
research on long-distance
reverse wire bonding
processes anti-wire
This project focuses on the research and
collapse processes and anti-
Research on application of packaging and
delamination processes for
and Application applications for miniaturized transistor
miniaturized optocoupler
of Key optocoupler products aiming to
products. It develops the
Packaging develop miniaturized optocoupler Increase product
10XX series optocoupler
Technologies products with independent intellectual Trial market share and
products in LSOP4
for property rights. It further seeks to production consolidate core
packages and the 35X series
Miniaturized enhance the Company’s technological competitiveness.optocoupler products in
Optocouplers capabilities and market competitiveness
SOP4 packages thereby
for Emerging in the optocoupler field and to support
further improving the
Applications the domestic substitution of high-end
Company’s optocoupler
optocoupler devices.product portfolio and
strengthening its core
competitiveness in the
optocoupler device sector.This project focuses on the
research of multiple key
technologies related to
high-power ceramic LEDs
for automotive applications
This project aims to accelerate with the goal of developing
Research and
breakthroughs in key packaging high-power ceramic LEDs
Application of
technologies for high-power ceramic featuring low thermal The project will
Key Packaging
LEDs for automotive applications At the stage resistance high brightness improve the market
Technologies
develop new products with both market of mass and long lifespan. The share of the product
for High-Power
value and industrial security production implementation of this and strengthen core
Ceramic LEDs
significance and continuously project will continuously competitiveness.for Automotive
strengthen leadership in the LED enhance the quality of high-
Use
packaging industry. power ceramic LED
products for automotive
applications and further
enrich the Company’s
automotive LED product
portfolio.Research and This project focuses on key packaging This project through
Increase product
Application of technology breakthroughs for indoor research on key materials
Mass market share and
Packaging for small-pitch display devices aiming to for high-performance
production consolidate core
High-Density develop high-performance indoor indoor full-color LED
competitiveness.High-Weather- small-pitch display devices overcome display devices process
34Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Resistance LED technical bottlenecks of traditional flow design for indoor full-
Display products in resolution reliability and color devices and reliability
Devices for display performance and enhance research on indoor full-
Indoor product market competitiveness and color LED devices
Applications application value within the industry. develops high-performance
indoor small-pitch display
devices with independent
intellectual property rights
so as to precisely align with
the development trend of
the 5G+8K ultra-high-
definition display industry
and effectively expand the
application scope of the
indoor display market.This project aims to develop
a series of automotive-grade
Development of
This project plans to carry out research LED chips that while
Highly
on high-luminous-efficiency ensuring luminous intensity
Efficient
automotive-grade epitaxial chip achieve a smaller-form-
Automotive-
technology based on a novel light factor design for LED Increase product
Grade Epitaxial
extraction structure aiming to develop Trial automotive lighting chips market share and
Chip
a series of automotive-grade LED chips production and ensure their consolidate core
Technology
and promote the industrialization and performance and reliability competitiveness.Based on a
commercialization of high-luminous- under various operating
Novel Light
efficiency automotive-grade epitaxial conditions ultimately
Extraction
chip technology. realizing the
Structure
industrialization of the
related technologies.This project focuses on the research and This project focuses on
development of high-power DFN power research into the packaging
device packaging technology with an framework wire bonding
emphasis on developing high- process and reliability of
performance high-power DFN power high-power DFN power
Research and
devices enhancing product devices developing high-
Development of Increase product
performance and market power DFN power devices
High-Power Mass market share and
competitiveness and supporting the in multiple specifications
DFN Power production consolidate core
upgrade of the Company’s products such as DFN7*7 8*8 and
Device competitiveness.toward higher integration 12*12 further enriching the
Packaging
miniaturization and greater reliability Company’s product
thereby laying a solid technical portfolio and enhancing our
foundation for the strategic transition core technological
from single-chip devices to multi-chip competitiveness and market
integration. influence.Details about R&D personnel:
2025 2024 Change (%)
Number of R&D personnel 1562 2045 -23.62%
R&D personnel as % of total
13.05%16.76%-3.71%
employees
Educational background
Bachelor’s degree 943 1176 -19.81%
Master’s degree 157 155 1.29%
Doctoral degree and above 13 13 0.00%
Junior college and below 449 701 -35.95%
35Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Age structure
Below 30 533 763 -30.14%
30~40643792-18.81%
40 and beyond 386 490 -21.22%
Details about R&D investments:
2025 2024 Change (%)
R&D investments (RMB) 560437274.57 590807947.33 -5.14%
R&D investments as % of
6.37%6.53%-0.16%
operating revenue
Capitalized R&D investments
0.000.000.00%
(RMB)
Capitalized R&D investments
as % of total R&D 0.00% 0.00% 0.00%
investments
Reason for any significant change to the composition of R&D personnel and impact:
□Applicable □ Not applicable
The decrease and changes in the composition of the Company’s R&D personnel during the Reporting Period
were primarily driven by its continuous optimization of internal resource allocation and the optimization of the
structure of the R&D team.Reasons for any significant YoY change in the percentage of R&D investments in operating revenue:
□ Applicable□ Not applicable
Reason for any sharp variation in the percentage of capitalized R&D investments and rationale:
□ Applicable□ Not applicable
5. Cash Flows
Unit: RMB
Item 2025 2024 Change (%)
Subtotal of cash generated from
8661695964.008884435924.99-2.51%
operating activities
Subtotal of cash used in
8364546570.998286320589.110.94%
operating activities
Net cash generated from/used in
297149393.01598115335.88-50.32%
operating activities
Subtotal of cash generated from
1172591759.991059888697.1410.63%
investing activities
Subtotal of cash used in
856344658.041775272864.22-51.76%
investing activities
Net cash generated from/used in
316247101.95-715384167.08144.21%
investing activities
Subtotal of cash generated from
380674200.72445145960.64-14.48%
financing activities
36Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Subtotal of cash used in
853845132.00768748792.5211.07%
financing activities
Net cash generated from/used in
-473170931.28-323602831.88-46.22%
financing activities
Net increase in cash and cash
134977279.31-416870923.47132.38%
equivalents
Explanation of why any of the data above varies significantly:
□Applicable □ Not applicable
(1) Net cash generated from operating activities decreased by 50.32% year on year primarily driven by the
decreased cash proceeds from sale of commodities and the increased taxes paid during the period.
(2) Net cash generated from investing activities increased by 144.21% year on year primarily driven by a
higher amount of large-denomination certificates of deposit purchased during the prior period and the disposal
of Gotion High-tech shares during the period.
(3) Net cash generated from financing activities decreased by 46.22% year on year primarily driven by the
increase in the bank acceptance bill margin for the bill pool business during the period.
(4) Net increase in cash and cash equivalents increased by 132.38% year on year primarily driven by the
increased net cash generated from investing activities.Explanation of why net cash generated from/used in operating activities varies significantly from net profit for
the Reporting Period:
□ Applicable□ Not applicable
V Analysis of Non-Core Businesses
□Applicable □ Not applicable
Unit: RMB
As % of
Recurrent
Amount profit Main source/reason
or not
before tax
Dividend income from other equity investments held
Return on
61774334.25 22.73% during the period and interest income from other debt Yes
investment
investments
Gain/loss on changes Gain/loss on changes in fair value of financial
922115.30 0.34% Yes
in fair value instruments during the period
Inventory valuation allowances and goodwill impairment
Asset impairments -129947636.14 -47.81% Yes
allowances during the period
Non-operating Carryforwards of payables that require no payment
4777173.86 1.76% No
income during the period
Non-operating
4468274.46 1.64% Payment of late fees during the period No
expense
Other income 99643539.11 36.66% Receipt of continuing government grants during the No
37Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
period
Credit impairment Allowances for doubtful accounts receivable and other
-12955005.06 -4.77% Yes
loss (“-” for loss) receivables during the period
Asset disposal Gains or losses on the disposal of non-current assets
138721265.11 51.04% No
income (“-” for loss) during the period
VI Analysis of Assets and Liabilities
1. Significant Changes in Asset Composition
Unit: RMB
December 31 2025 January 1 2025 Change
in Main reason for any
As % of As % of
Amount Amount percent significant change
total assets total assets age (%)
Disposal of Gotion
Monetary
3455743091.17 20.13% 3209127437.31 18.70% 1.43% High-tech shares
assets
during the period
Accounts
2173325283.7812.66%2125667291.9612.39%0.27%
receivable
Contract assets 450672.52 0.00% 1690021.95 0.01% -0.01%
Inventory 2163660652.65 12.60% 2025499361.38 11.80% 0.80%
Investment
810582038.874.72%793487046.024.62%0.10%
property
Long-term
equity 184806652.92 1.08% 180300594.89 1.05% 0.03%
investments
Fixed assets 3586917576.90 20.89% 3646594206.04 21.25% -0.36%
Construction in
223949659.061.30%263601705.891.54%-0.24%
progress
Right-of-use
23771544.090.14%22342999.340.13%0.01%
assets
Use of supply chain
Short-term finance bills to pay
635015074.863.70%307141147.491.79%1.91%
borrowings suppliers during the
period
Contract
140787246.730.82%119506301.480.70%0.12%
liabilities
Long-term
192915075.781.12%222581930.541.30%-0.18%
borrowings
Lease liabilities 15354724.02 0.09% 15023993.11 0.09% 0.00%
Maturity of some
Notes
732835152.15 4.27% 997281070.21 5.81% -1.54% accounts receivable
receivable
during the period
Receivables
415949788.022.42%352694866.892.06%0.36%
financing
Reclassification of
large-denomination
Current portion certificates of deposit
of non-current 429862721.67 2.50% 0.00 0.00% 2.50% under other debt
assets investments during the
period that have a term
of over one year but
38Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
will mature within one
year
Reclassification of
large-denomination
certificates of deposit
under other debt
Other debt
720083694.31 4.19% 1140022863.72 6.64% -2.45% investments during the
investments
period that have a term
of over one year but
will mature within one
year
Disposal of Gotion
Other equity
471794043.90 2.75% 726663613.42 4.23% -1.48% High-tech shares
investments
during the period
Intangible
383525440.662.23%388587348.992.26%-0.03%
assets
Payments made to
Notes payable 2179070444.41 12.69% 1930784817.62 11.25% 1.44% suppliers during the
period
Payments made to
Accounts
2443871780.95 14.24% 2781965096.70 16.21% -1.97% suppliers during the
payable
period
Other payables 372152039.73 2.17% 495717050.97 2.89% -0.72%
Share capital 1535778230.00 8.95% 1548778230.00 9.03% -0.08%
Capital reserves 843517955.90 4.91% 914336325.66 5.33% -0.42%
Indicate whether overseas assets account for a higher proportion of total assets.□ Applicable□ Not applicable
2. Assets and Liabilities at Fair Value
□Applicable □ Not applicable
Unit: RMB
Gain/loss
Cumulative
on fair- Impairment
fair-value Purchased
Opening value allowance Sold during Other Closing
Item changes during the
amount changes for the the period changes amount
charged to period
during the period
equity
period
Financial assets
1. Held-
for-trading
financial
assets
43649820.75000000.116802932768997.3
(exclusive 922115.30
47008.443
of
derivative
financial
assets)
2. Other
debt 11400228 20000000. 29923552. 11499464
investment 63.72 00 26 15.98
s
3. Other 72666361 29584960 72598832 11200000. 56191917 47179404
39Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
equity 3.42 5.60 7.84 00 5.12 3.90
investment
s
4.
3526948663254921.41594978
Receivable
6.89
s financing 13 8.02
Subtotal of
22630311296771727259883286200000.6987221193178473.20404592
financial
64.500.907.84003.563945.23
assets
Total of the 22630311 29677172 72598832 86200000. 69872211 93178473. 20404592
above 64.50 0.90 7.84 00 3.56 39 45.23
Financial
275250.00275250.00
liabilities
Details about other changes:
The purchased amount in the Reporting Period of other debt investments referred to the cash management
(large-denomination certificates) by the Company with its own temporarily idle funds and idle raised funds
which was classified as financial assets at fair value through other comprehensive income. An amount of
RMB20000000.00 was sold in the Reporting Period and other changes were RMB29923552.26 of
cumulative recognized interest.Significant changes to the measurement attributes of the major assets in the Reporting Period:
□ Yes□ No
3. Restricted Asset Rights as at the Period-End
Unit: RMB
Item Closing carrying value Reason for restriction
Security deposits for bills performance bonds payments by
Monetary assets 631081782.33
buyers for pre-sale of properties
In pledge for the bill pool undue notes receivable that have been
Notes receivable 540078294.10
endorsed or discountedFixed assets 198427841.71As mortgage and guarantee for related party see “3. Otherinformation” under “XVI Commitments and Contingencies” of
Intangible assets 10030658.70
“Part VIII Financial Statements” in this Report
Receivables financing 7000000.00In pledge for the bill pool
Other current assets 6658273.00Frozen funds
Other non-current assets 3528951.23Frozen funds
Accounts receivable 945000.00Undue accounts receivable that have been transferred
Total 1397750801.07 /
VII Investments Made
1. Total Investment Amount
□Applicable □ Not applicable
40Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Investment amount during the Reporting Investment amount in the same period of
Change (%)
Period (RMB) last year (RMB)
380967047.92386039888.94-1.31%
2. Major Equity Investments Made in the Reporting Period
□ Applicable□ Not applicable
3. Major Non-Equity Investments Ongoing in the Reporting Period
□Applicable □ Not applicable
Unit: RMB
Cu Reaso
mu n for
lati failure
Fixe
Wa Indust ve to
d Date
y ry of Fu Pre ret reach
asse Projec of
of the Cumulative input ndi dict urn the Disclosure
Name of t Input during t discl
inv invest as of the period- ng ed as planne index (if
project inve the period progre osure
est ment end sou retu of d any)
stme ss (if
me projec rce rn the progre
nt or any)
nt t per ss and
not
iod predict
- ed
end return
Announce
ment on
Investmen
t in the
Constructi
on of
The Jili NationStar
Sel
Industrial Optoelectr
f-
Park onics’ Jili
LED po Augu
project Ot 219032377.0 50.21 Industrial
Yes packa 860827746.13 ole N/A st 7
(not her 9 % Park
ging d 2020
including Project on
fun
land www.cnin
ds
purchase) fo.com.cn
(announce
ment of
subsidiary
NationStar
Optoelectr
onics)
219032377.00.00.0
Total -- -- -- 860827746.13 -- -- -- -- --
900
4. Financial Investments
(1) Securities Investments
□ Applicable □ Not applicable
Unit: RMB
Security Sec Securi Initial Meas Beginn Gain/L Accum Purc Sold in Gain/l Ending Acco Fun
41Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
type urit ty invest ureme ing oss on ulated hase Reporti oss in carryin untin din
y name ment nt carryin fair- fair- d in ng Report g value g title g
cod cost metho g value value value Rep Period ing sou
e d change change ortin Period rce
s in s g
Reporti charge Peri
ng d to od
Period equity
Inves
tment
s in
Domestica Fair Self
Xiam 15295 32350 26805 17207 42101 other
lly/Overse 601 value 97509 -
en 7606.8 2024.6 3893.2 554.5 1500.1 equit
as listed 187 metho 475.50 fun
Bank 3 0 7 0 0 y
stock d ded
instru
ment
s
Held-
for-
Domestica Fair tradi
Qianli
lly/Overse 601 13069 value 19264 75042 75042 26768 ng Oth
Techn
as listed 777 56.18 metho 38.30 9.56 9.56 67.86 finan er
ology
stock d cial
asset
s
Fosha
Inves
n
tment
branc
s in
h of Fair Self
other
No Guan 50000 value 50000 11033 50000 -
Other equit
ne gdong 0.00 metho 0.00 8.26 0.00 fun
y
Devel d ded
instru
opme
ment
nt
s
Bank
Held-
for-
ZOT
Domestica Fair tradi
YE
lly/Overse 000 42344 value 62376. 29752. 29752 92129. ng Oth
Auto
as listed 980 8.92 metho 61 86 .86 47 finan er
mobil
stock d cial
e
asset
s
Inves
tment
s in
Domestica Gotio Fair Self
36357 19834 45793 56191 other
lly/Overse 002 n 83014 value 95776 -
9045.0 0130.1 4434.5 9175.1 equit
as listed 074 High- 485.13 metho 5.10 fun
2 0 7 2 y
stock tech d ded
instru
ment
s
Hang Held-
Fair Self
zhou for-
Trust No 15000 value 15439 15519 7969. -
Indust tradi
product ne 00.00 metho 50.00 19.05 05 fun
rial & ng
d ded
Com finan
42Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
merci cial
al asset
Trust s
23970691112966272598563471906342428
Total 2497.0 -- 3834.5 9788.0 8327.8 0.00 1094.1 809.3 0497.4 -- --
6324733
(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
Closing
Gain/Loss Accumulat
investment
on fair- ed fair-
Initial Purchased amount
Type of Opening value value Sold during Closing
investment during the as % of the
derivative amount changes changes the period amount
amount period Company’s
during the recorded in
closing
period equity
equity
General
50001.88050050000.00%
forward
General
65065000065000.00%
forward
Total 1150 650 1.88 0 500 1150 0 0.00%
Major
changes in
accounting
policies
and
specific
accounting
principles
adopted for No
hedges in
the
Reporting
Period
compared
to the last
reporting
period
Actual
gain/loss in
the The actual gain/loss stood at USD 15200 in the Reporting Period.Reporting
Period
Effectivene The Company carries out foreign exchange hedging business appropriately according to specific situations which
ss of can effectively reduce the foreign exchange market risk lock in industrial profit of export business and avoid
hedging exchange rate risk.Funding
Self-funded
source
43Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of economic
changes at home and abroad the foreign exchange hedging business faces market risk to some extent. 2. Foreign
Analysis of
currency risk: When the foreign currency trend greatly deviates from the Company’s judgment of such trend the
risks and
expenses after locking the exchange rate might exceed that before doing so resulting in losses to the Company. 3.control
Internal control risk: Imperfect internal control policies probably triggers risks to the foreign exchange hedging
measures
business as it is highly professional and complex. 4. Trading default risk: If the counterparty of foreign exchange
associated
hedging defaults by failing to pay hedging earnings to the Company as agreed the actual exchange loss of the
with
Company will not be offset. 5. Collection forecast risk: Marketing departments forecast collection based on the
derivative
actual and expected orders of customers. In practice customers may adjust such orders. As a result the Company’s
investment
collection forecast will not be accurate leading to delivery risks.s held in
Adopted risk control measures: 1. The Company will strengthen the research and analysis of the exchange rate.Reporting
When the exchange rate fluctuates greatly it will adjust the business strategy in a timely manner to stabilize the
Period
export business and avoid exchange losses to the utmost. 2. The Company has established the Management System
(including
for Foreign Exchange Hedging and majority-owned subsidiary NationStar Optoelectronics has also formulated the
but not
Management System for Forward Forex Settlement and Sale and Forex Option Transactions clearly defining the
limited to
operating principles approval authority responsible department and responsible person internal operation
market
procedures information isolation measures internal risk reporting system risk management procedures and
risk
information disclosure related to the foreign exchange hedging business. 3. In order to prevent any delay in the
liquidity
foreign exchange hedging the Company will strengthen the management of accounts receivable actively collect
risk credit
receivables and avoid any overdue receivables. In the meantime the Company plans to increase the export
risk
purchases and purchase corresponding credit insurance so as to reduce the risk of default and customer default. 4.operational
The Company’s foreign exchange hedges must be strictly based on the Company’s foreign exchange earnings
risk legal
prediction. Besides the Company shall strictly control the scale of its foreign exchange hedges and manage all
risk etc.)
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
investment
The Company carries out recognition and measurement in accordance with the Accounting Standard for Business
s in
Enterprises No. 22—Recognition and Measurement of Financial Instruments the Accounting Standard for
Reporting
Business Enterprises No. 24—Hedges the Accounting Standard for Business Enterprises No. 37—Presentation of
Period (fair
Financial Instrument and other applicable regulations. Fair value is arrived at based on the price provided by
value
pricing service providers such as banks or the price obtained. Fair value measurement and recognition are carried
analysis
out on a monthly basis. Changes in the fair value of forward exchange settlement contracts entered into by the
should
Company are mainly attributable to difference arising from exchange rate fluctuations.include
measureme
nt method
and related
assumption
s and
parameters)
Legal
matters
N/A
involved (if
applicable)
Disclosure
date of
announcem
ent on April 30 2024 and April 23 2025
board’s
approving
derivative
investment
44Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(if any)
2) Derivative Investments for Speculative Purposes in the Reporting Period
□ Applicable□ Not applicable
No such cases during the Reporting Period.VIII Sale of Major Assets and Equity Investments
1. Sale of Major Assets
□ Applicable □ Not applicable
Relat
ionsh
Net ip
Ratio
profit betw
of the Exec
contri een
net Credi uted
buted the Own
profit tor’s as
to the trans ershi
contri rights sched
Com actio p of
buted and uled
Trans pany Relat n the Index
by liabili or
actio from Effec ed- party asset to
Trans the Prici ties not;
Date n the t on party and invol Discl discl
actio Asset sale ng invol if
of price perio the trans the ved osure osed
n sold of the princi ved not
sale (RM d- Com actio Com has date infor
party asset ple have give
B’00 begin pany n or pany been matio
to the been reaso
00) to the not (appli all n
Com all ns
date cable transf
pany’ transf and
of for erred
s erred meas
sale relate or not
total or not ures
(RM d-
profit taken
B’00 party
(%)
00) trans
actio
ns)
The
sale
woul
d not
Mark
affect
Centr et
the
alize Share price
Com
d s of of
June pany’
biddi Gotio Gotio
and s
ng on n 5619 0.00 n
Augu 95.78 busin No N/A Yes Yes N/A N/A N/A
the High- 1.92 % High-
st ess
secon tech tech
2025 conti
dary Co. at the
nuity
mark Ltd. time
or
et of
mana
sales
geme
nt
stabil
ity.Lishu The Dece 1838 9031 The 41.29 Base Dece Anno
No N/A Yes Yes N/A
i state- mber 5.59 .59 sale % d on mber unce
45Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Distri owne 2025 woul the 16 ment
ct d d not asset 2021 on
Dem land affect valua and the
olitio use the tion Dece Expr
n and rights Com repor mber opriat
Reset and pany’ t 19 ion of
tleme buildi s issue 2025 Land
nt ngs busin d by Use
Co. of ess the Right
Ltd. Nanji conti valua s and
of ng nuity tion Build
Nanji Fozh or comp ings
ng ao mana any of a
Light geme Whol
ing nt ly-
Equi stabil Own
pmen ity. ed
t Subsi
Manu diary
factur and
ing Anno
Co. unce
Ltd. ment
on
Progr
ess of
the
Expr
opriat
ion of
Land
Use
Right
s and
Build
ings
of a
Whol
ly-
Own
ed
Subsi
diary
46Foshan Electrical and Lighting Co. Ltd. Annual 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. Net profit contributed to the Company from the period-begin to the date of sale was dividends
received during the period.
2. Sale of Major Equity Investments
□ Applicable□ Not applicable
IX 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
Relationsh
Principal Registered Operating Operating
Name ip with the Total assets Net assets Net profit
activity capital revenue profit
Company
Foshan
NationStar - -
Manufact 618477169. 61054413 37891715 32814812
Optoelectro Subsidiary 19843454. 13008857.uring 00 89.20 00.92 14.08
nics Co. 51 18
Ltd.Nanning
Liaowang Manufact 35055700.0 31250702 10651881 20316256 28857374. 28088406.Subsidiary
Auto Lamp uring 0 95.34 31.36 17.87 44 31
Co. Ltd.FSL
Chanchang
Manufact 72782944.0 13377047 48332174 14677129 12275655 10575110
Optoelectro Subsidiary
uring 0 73.71 2.13 11.27 3.22 5.31
nics Co.Ltd.Nanjing
Fozhao
Lighting
Manufact 41683200.0 19603702 15851340 1486738.6 12651294 91212772.Equipment Subsidiary
uring
Manufactur 0 4.03 9.39 1 2.85 69
ing Co.Ltd.Subsidiaries obtained or disposed in the Reporting Period:
□ Applicable □ Not applicable
How the subsidiary was obtained or Impact on overall operations and
Name
disposed of in the Reporting Period performance
Guangdong Airtrust Aviation Equipment Acquired No significant impact on the Company’s
47Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Co. Ltd. production and performance
No significant impact on the Company’s
Airstar (Tianjin) Lighting Co. Ltd. Acquired
production and performance
FSL (Thailand) Lighting Technology No significant impact on the Company’s
Incorporated
Co. Ltd. production and performance
Shanghai Lelaite Electrical Equipment No significant impact on the Company’s
Transferred
Co. Ltd. production and performance
Nanyang Baoli Vanadium Industry Co. No significant impact on the Company’s
De-registered
Ltd. production and performance
No significant impact on the Company’s
Airstar (Tianjin) Lighting Co. Ltd. De-registered
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.
48Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
4. Pursuant to the equity agreement signed between the Company and Prosperity Lamps and Components Ltd
on August 27 2008 Prosperity Lamps and Components Ltd transferred 100% of its equity interest in NanjingFozhao Lighting Equipment Manufacturing Co. Ltd. (formerly known as “Prosperity (Nanjing) LightingEquipment Co. Ltd. which was renamed “Nanjing Fozhao Lighting Equipment Manufacturing Co. Ltd.” on
November 15 2010) to the Company in full. As a result Nanjing Fozhao Lighting Equipment Manufacturing Co.Ltd. has become a wholly-owned subsidiary of the Company. The Company has included it in the scope of its
consolidated financial statements since the acquisition date.X Structured Bodies Controlled by the Company
□ Applicable□ Not applicable
XI Prospects
i. Development strategiesThe Company is committed to implementing the development strategy of “new-type basic platform andlarge-scale new tracks.” It will continue to focus on technology and services as the core emphasizing brand and
value. The Company will upgrade its R&D and innovation system oriented toward intelligence health and
green development build a business system covering products solutions and services improved its marketing
system spanning distribution direct sales and international operations develop a differentiated core
competitiveness system and promote the Company to become a leading domestic provider of intelligent and
healthy lighting environment services.ii. Operational plan for 2026
1. Upgrade marketing and build a collaborative system for omnichannel growth
First the Company will upgrade its mature business. Focusing on scenario-based development and value
upgrading it will promote channel penetration and terminal empowerment improve the grid management
layout continue to enhance the sales and operational capabilities of terminal stores and effectively improve the
conversion rate of results. It will expand channels such as home decoration companies and designers to build a
full-coverage contact ecosystem. By tapping into demand from new consumption and urban renewal scenarios
the Company will expand key customers including smart city and industrial decoration customers implement
refined strategies for segmented scenarios and fully transform into a professional commercial engineering
lighting service provider. It will accelerate the release of production capacity at the Thailand factory. On the
basis of stabilizing its share in existing advantageous regions and among key major customers the Company
49Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
will intensify efforts to expand into emerging markets promote the upgrade from "Product Exports" to "Brand
and Industry Globalization" and build a diversified and resilient overseas market landscape. In response to the
trends of electrification networking and intelligence the automotive lighting business will integrate internal
R&D resources tackle technologies such as laser and intelligent human-vehicle interaction upgrade to mid-to-
high-end segments of automotive lamps and modules and expand more influential new energy vehicle
customers. Second the Company will expand its business into new growth areas. In ship lighting the Company
will accelerate the improvement of product systems including marine engineering and explosion-proof
electrical products explore the overseas shipbuilding market and actively develop resources for military and
ocean-going projects. In sports lighting it will focus on core technologies and strive to secure national-level
sports event projects. In aviation lighting based on airport navigation aids it will focus on breakthroughs in
large aircraft cabin lighting. In age-friendly lighting it will strengthen the development of benchmark projects
and participation in standard-setting. In plant and animal lighting the Company will deeply cultivate light
formula technologies cooperate with leading aquaculture enterprises and modern agricultural projects and form
unique competitiveness in segmented sectors.
2. Advance technologies and build self-reliant leadership advantages
First the Company will consolidate the areas of excellence in technology. Closely aligning with market
demand it will vigorously promote product iteration and upgrading drive the development of products towards
intelligence greenization and healthiness strengthen the research on common and key technologies and
actively launch new technologies and products to the market thus consolidating the "technological moat."
Second the Company will strengthen standard leadership. It will take the initiative to lead and participate in the
formulation and revision of international national local and industry standards at all levels focus on key fields
such as smart lighting marine lighting smart street lights and sports lighting concentrate efforts on tackling
common and key technical standards promote the improvement of industry standards and further enhance the
Company’s industry influence in the industry. Third the Company will strengthen collaborative cooperation. It
will deepen industry-university-research cooperation with universities research institutes and leading industry
enterprises jointly build an innovation consortium coordinate the R&D forces and resources of the research
institute and various subsidiaries to realize the sharing of innovative resources. It will achieve more "from zero
to one" breakthroughs in the reserve of original technologies and the solution of "bottleneck" problems and
50Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
complete the "from one to N" expansion in achievement transformation so that technological innovation can be
truly converted into product competitiveness and market influence.
3. Upgrade products and strengthen the foundation of value
First the Company will anchor on needs to set the direction. It will accurately capture industry trends
identify customers’ real needs and scientifically assess market directions continuously enhancing the foresight
relevance and feasibility of product planning and promoting a high degree of alignment between the product
matrix and market demand so as to build a solid product foundation for market expansion. Second the
Company will strengthen dynamic management and control throughout the entire product lifecycle. It will
establish a dynamic operating mechanism of cultivating new products revitalizing core products and phasing
out low-efficiency products so that product iteration has a clear direction and resource allocation has clear
priorities thereby enhancing the overall competitiveness of our products. Third the Company will strictly
control quality. It will improve the quality control system throughout the entire chain of products from raw
material procurement production and processing inspection and testing and warehousing and logistics to
finished product delivery empowering full lifecycle product management through digital and intelligent means
and achieving full-process data traceability for products from raw material procurement to after-sales service so
as to enhance overall operational efficiency and product quality.
4. Improve operational efficiency and enhance competitive advantages
First the Company will deepen the transformation of its mindset. Focusing on key areas such as
technology management and mechanisms it will prioritize advancing the innovation system rapid response
mechanisms and business model transformation continuously enhancing its overall operational efficiency and
innovation vitality. Second the Company will strengthen lean operations. It will improve process collaboration
efficiency steadily advance digital and intelligent empowerment in a progressive scalable manner driving deep
integration of digital intelligence across the full value chain of R&D production supply sales and management.Third the Company will insist on value-driven cohesion. It will improve the remuneration and performance
system in line with the market and linked to benefits optimize the remuneration structure with key indicators
such as overall labor productivity and per capita profit creation as guiding factors increase incentives for core
backbone personnel and value creators and build a strong synergy among all employees to work hard and
pursue entrepreneurship.iii. Potential risks facing the Company and countermeasures
51Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 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 sports 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
competitiveness 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. The prices of the aforementioned raw
materials are closely related to the prices of commodities such as metals and oil. 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 could adversely affect the Company’s production and operation.Countermeasures: The Company will pay attention to market dynamics collect industry information analyze
and pre-judge supply of main raw materials and price trends so as to make excellent sourcing plans. By
strengthening centralized procurement through negotiations refining suppliers perfecting supply chain
management optimizing product design 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 prices and competitiveness of overseas sales could be undermined and exchange
losses may increase which will produce adverse impacts on the Company’s net profit.
52Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.XII Communications with the Investment Community such as Researches Inquiries and
Interviews
□ Applicable □ Not applicable
Index to
Main discussions
Way of Type of communicati
Date Place Visitor and materials
communication visitor on
provided
information
Investor
Relations
www.p5w. Through an online www.cninfo.May 23 2025 Other Online investors Activities Log
net platform com.cn
Sheet No. 2025-
01
Eight institutions:
Guangzhou Private
Equity Council
Zhongdaqing Private
Fund Guangzhou Investor
Ruimin Investment Relations
The One-on-one www.cninfo.May 27 2025 Institution Luxiang Investment Activities Log
Company meeting com.cn
Guangzhou Chunhui Sheet No. 2025-
Private Fund 02
Guangdong Xiaoyu
Private Fund China
Futures and CITIC
Securities
Investor
September 19 www.p5w. Through an online www.cninfo.Other Online investors Relations
2025 net platform com.cn
Activities Log
53Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Sheet No. 2025-
03
Over 30 institutional
investors media
representatives etc.including Foshan
Listed Companies
Association Rising
The
Holdings Group
headquarter
Northeast Securities Investor
s of the
Guosen Securities Relations
November 7 Company’s One-on-one www.cninfo.Institution Guotai Haitong Activities Log
2025 subsidiary meeting com.cn
Securities Sinolink Sheet No. 2025-
NationStar
Securities Guolian 04
Optoelectro
Minsheng Securities
nics
GF Securities Huaxi
Securities Industrial
Securities China
Merchants Securities
CITIC Securities
and Huatai Securities
XIII Implementation of Market Value Management Mechanism and Valuation
Enhancement Plan
Indicate whether the Company has established a market value management mechanism.□ Yes□ No
Indicate whether the Company has disclosed its valuation enhancement plan.□ Yes□ NoXIV Implementation of the Action Plan for “Dual Enhancement of Development Qualityand Investor Returns”Indicate whether the Company has disclosed the Action Plan for “Dual Enhancement of Development Qualityand Investor Returns”.□ Yes□ No
54Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Part IV Environmental Social and Governance Information
I General Information of Corporate Governance
During the Reporting Period in strict accordance with relevant requirements of Company Law Securities
Law Code of Corporate Governance of Listed Companies in China and Rules of Stock Listing of Shenzhen Stock
Exchange as well as other relevant laws rules and regulations the Company continuously perfected the corporate
governance structure and the governance rules. So far the Company has set up governance structure of
responsible Shareholders’ Meeting the Board of Directors and managers. Besides it has set up special
committees of the Board of Directors and work rules for independent directors. Also the Company strengthened
its internal control and risk management to promote its sound operation. It strengthened information disclosure of
principal shareholders and persons acting-in-concert and prohibited shareholders from abusing their shareholder
rights. The Company separated from the principal shareholder in personnel assets business financial affairs and
organizational and was absolutely impendent.Indicate whether there is any material incompliance with the applicable laws regulations or rules issued by the
CSRC governing the governance of listed companies.□ Yes□ No
No such cases during the Reporting Period.II The Company’s Independence from Its Controlling Shareholder and Actual Controller in
Asset Personnel Financial Affairs Organization and Business
The Company is completely separated from its controlling shareholder and actual controller in aspects such
as business personnel assets institutions and finance and possesses independent and complete business and self-
dependent operating ability.
1. As for the business the Company is independent of its controlling shareholder and actual controller and
their subordinate enterprises and owns the independent business departments and management system as well as
possesses of impendent and entire business and self-dependent operating ability.
2. As for the personnel the Company formulates the independent management system such as the labor
personnel and the salary possesses the independent personnel department and the operating management team.The Senior Executives of the Company are serving at the Company in full time and receiving the salary from the
55Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Company.
3. As for the assets the assets of the Company are independent and entire with clear ownership and
possesses the independent production system BOP system and the supporting facilities as well as possesses the
legal ownership of the land factories equipments related to the production and operating and the assets such as
the trademark patent and the non-patent technology and possesses the entire control and govern power of all the
assets of the Company without any behavior such as the controlling shareholder or the actual controller occupies
the assets of the Company.
4. As for the institutions the Company set up the independent and entire organizations and institutions and
the construction as well as the operating of the corporate governance institutions is executed strictly executed
according to the Articles of Association and the production and operating as well as the offices are entirely
independent from the controlling shareholder and the actual controller with any situation of working under one
roof with the controlling shareholder or the actual controller.
5. As for the finance the Company set up the independent finance department and builds up the independent
and normative accounting and financial control system according to the requirements of the ASBE set up the
independent bank account and pays the taxes legally and independently and the Company could make the
financial decisions independently without any situation of the controlling shareholder or the actual controller
intervenes the capital usage of the Company.III Horizontal Competition
□ Applicable□ Not applicable
IV Directors and Senior Management
1. General Information
Increas Decrea Reas
Other
Opening e se Closing on
Ge Incum increas
Ag Start of End of sharehol during during sharehol for
Name nd Office title bent/F e/decre
e tenure tenure ding the the ding share
er ormer ase
(share) period period (share) chan
(share)
(share) (share) ges
Yu Chairman Septemb
Ma Incum
Zhongm 53 of the er 29 0 0 0 0 0
le bent
in Board 2025
Vice
Decemb
Zhuang Ma Chairman Incum 119035 119035
74 er 25 0 0 0
Jianyi le of the bent 09 09
2015
Board
Zhang Ma Incum February 73052 0 0 0 73052
48 Director
Xuequa le bent 26 2024
56Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
n
Zhang Decemb
Ma General Incum
Xuequa 48 er 21
le Manager bent
n 2023
Wang
Ma Incum February
Weidon 57 Director 0 0 0 0 0
le bent 9 2026
g
Septemb
Huang Ma Incum
40 Director er 29 0 0 0 0 0
Yue le bent
2025
Septemb
Li Ma Independe Incum
65 er 13 0 0 0 0 0
Xiyuan le nt Director bent
2021
Zhang Septemb
Ma Independe Incum
Rensho 60 er 13 0 0 0 0 0
le nt Director bent
u 2021
Dou Ma Independe Incum August
6600000
Linping le nt Director bent 24 2020
Deputy
Chen Ma Incum May 13
53 General 66066 0 0 0 66066
Yu le bent 2014
Manager
Zeng Fe Deputy
Incum May 14
Xiaojin ma 47 General
bent 2024
g le Manager 0 0 0 0 0
Zeng Fe Chief
Incum July 10
Xiaojin ma 47 Financial
bent 2025
g le Officer
Deputy Septemb
Li Ma Incum
40 General er 12 0 0 0 0 0
Zehua le bent
Manager 2025
Deputy
Wang Ma Incum August
49 General 5600 0 0 0 5600
Ye le bent 30 2024
Manager
Huang
Ma Board Incum May 19
Zhenhu 38 0 0 0 0 0
le Secretary bent 2021
an
Chairman Septem
Wan Ma Forme February
56 of the ber 28 0 0 0 0 0
Shan le r 26 2024
Board 2025
Decemb
Hu Ma Forme June 30
60 Director er 31 0 0 0 0 0
Fengcai le r 2022
2025
Septem
Chen Ma Forme February
42 Director ber 12 0 0 0 0 0
Mingjie le r 26 2024
2025
Septem
Li Ma Forme May 14
40 Director ber 28 0 0 0 0 0
Zehua le r 2024
2025
Executive Septem
Zhang Ma Forme February
51 Vice ber 12 77596 0 0 0 77596
Yong le r 5 2024
President 2025
Tang Fe Chief
Forme January July 10
Qiongla ma 55 Financial 75940 0 0 0 75940
r 26 2016 2025
n le Officer
122017122017
Total -- -- -- -- -- -- 0 0 0 --
63.0063.00
Indicate whether any director or senior management left office before the expiration of their office terms during
57Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
the Reporting Period.□ Yes □ No
1. In July 2025 Ms. Tang Qionglan resigned as Chief Financial Officer due to reaching the statutory retirement
age.
2. In September 2025 Mr. Zhang Yong resigned as Executive Vice President due to a job transfer.
3. In September 2025 Mr. Chen Mingjie resigned from his positions as Director and on relevant special
committees of the Company due to a job transfer.
4. In September 2025 Mr. Li Zehua resigned from his positions as Director and on relevant special committees
of the Company due to a job transfer.
5. In September 2025 Mr. Wan Shan resigned from his positions as Chairman of the Board Director and on
relevant special committees of the Company due to a job transfer.
6. In December 2025 Mr. Hu Fengcai resigned from his positions as Director and on relevant special
committees of the Company due to reaching the statutory retirement age.Change of directors and senior management:
□Applicable □ Not applicable
Name Office title Type of change Date of change Reason for change
Tang Qionglan Chief Financial Officer Leaving office July 10 2025 Retirement
Chen Mingjie Director Leaving office September 12 2025 Job transfer
Executive Vice
Zhang Yong Leaving office September 12 2025 Job transfer
President
Wan Shan Chairman of the Board Leaving office September 28 2025 Job transfer
Li Zehua Director Leaving office September 28 2025 Job transfer
Hu Fengcai Director Leaving office December 31 2025 Retirement
Zeng Xiaojing Chief Financial Officer Appointed July 10 2025 Job transfer
Deputy General
Li Zehua Appointed September 12 2025 Job transfer
Manager
Yu Zhongmin Chairman of the Board Elected September 29 2025 Job transfer
Huang Yue Director Elected September 29 2025 Job transfer
2. Biographical Information
Professional backgrounds major work experience and current duties in the Company of the incumbent directors
and senior management:
i. Work experience of the directors
Mr. Yu Zhongmin: Born in September 1972 a member of the Communist Party of China. He holds a
bachelor’s degree and is an engineer. He previously served as Deputy Director of the Party Office Deputy
General Manager of the Enterprise Management Department Deputy Director of the General Manager’s Office
and concurrently Director of the Foreign Affairs Office Director of the General Manager’s Office Member of
the Party Committee and Vice President of Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.; Deputy Secretary
58Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
of the Party Committee Director and President of Dongjiang Environmental Company Limited; and Secretary
of the Party Committee and Chairman of Guangdong Guangsheng Real Estate Group Co. Ltd. He currently
serves as Secretary of the Party Committee and Chairman of the Board of Foshan Electrical and Lighting Co.Ltd.Mr. Zhuang Jianyi: Born in 1951 with a bachelor’s degree and MBA. Currently the chairman of Prosperity
Lamps & Components Limited and a director of Thinkon Semiconductor Jinzhou Corp. he has been engaged in
the lighting industry for nearly fifty years. From 1995 to 2010 he acted as the Directors the Vice Chairman of the
Board and the Chairman of the Board of the Company. And he has been serving as the Vice Chairman of the
Board of the Company since December 2015.Mr. Zhang Xuequan: Born in December 1977 a member of the Communist Party of China MBA of
Lingnan College of Sun Yat-Sen University. He joined the Company in 1996. He worked in the former Iodine-
tungsten Lamp Workshop from October to December 1996; worked in the Technology Department and then the
Quality Control Department from January 1997 to August 2002; acted as the Workshop Manager of Lamp
Workshop from September 2002 to May 2008; acted as the Department Director of the Business Management
Department of the Company from June 2008 to August 2016. He concurrently acted as the Office Director and the
Head of the Investment Department from February 2016 to December 2018. He was the Party Branch Secretary
for the Administrative Office of the Company from July 2010 to June 2017 and a member of the party committee
of the Company since July 2015. He was a supervisor of the Company from May 2013 to August 2016 a Deputy
General Manager of the Company from August 2016 to March 2020 an Executive Deputy General Manager of
the Company from March 2020 to December 2023. He has been serving as the Deputy Secretary of the CPC
Committee and General Manager of the Company since December 2023 and a Director of the Company since
February 2024. He has also served as a director of FSL Zhida Electric Technology Co. Ltd. (FSL Zhida)
chairman and general manager of Foshan Taimei Times Lamp Co. Ltd. executive director of Foshan Kelian New
Energy Technology Co. Ltd. director of Nanning Liaowang Auto Lamp Co. Ltd. and a director of Foshan
NationStar Optoelectronics Co. Ltd.Mr. Wang Weidong: Born in 1968 a member of the Communist Party of China no foreign residency
Bachelor’s degree EMBA and MBA of Lingnan College of Sun Yat-sen University Senior Human Resources
Manager Senior Political Worker and Economist. He used to be Executive Director and General Manager (legal
representative) of Guangdong Zhenxing Property Management Co. Ltd.; Deputy General Manager and Party
59Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Committee Member of Guangdong Zhenxing Industry Derelopment Group Co. Ltd.; Deputy General Manager
and Party Committee Member of Guangzhou Huanan Printing Factory; Assistant General Manager Director of
the Comprehensive Department Deputy Secretary of the Party Committee Secretary of the Discipline Inspection
Commission and Chairman of the Trade Union of Guangdong Rising Asset Management Co. Ltd.; Chairman and
General Manager of Hunan Chushengyuan Property Development Co. Ltd. and Chairman of Hunan Rising Real
Estate Holdings Co. Ltd.; Director of the Stability Maintenance Department Director of the Party and Personnel
Department Director of the Party Committee Office Deputy Secretary of the Party Committee of the
Headquarters and Director of the Human Resources Department of Guangdong Rising Assets Management Co.Ltd. (now renamed Guangdong Rising Holdings Group Co. Ltd.); Director of Rising Nonferrous Metals Share
Co. Ltd.; Deputy Secretary of the Party Committee Director Chairman of the Trade Union and Secretary of the
Party Committee of the Headquarters of Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd.; and Party Committee
Member Secretary of the Discipline Inspection Commission and Chairman of the Supervisory Committee of
Foshan NationStar Optoelectronics Co. Ltd. He is currently Outside Director of Guangdong Rising Mining Group
Co. Ltd. and has served as Director of the Company since February 2026.Mr. Huang Yue: Born in January 1985 a member of the Communist Party of China with a postgraduate
degree. He previously served as Manager of the Asset Management Department and Manager of the Financial
Business Department of Guangdong Technology Financial Group Co. Ltd. Deputy Head of the Investment
Management Department of Guangdong Rising Capital Investment Co. Ltd. Chairman of Guangdong
Shengchuang Private Equity Investment Fund Management Co. Ltd. and Head of the Strategic Investment
Department and Deputy General Manager of the Expansion Business Division of Guangdong Electronics
Information Industry Group Co. Ltd. He currently serves as Secretary to the Board of Directors and Head of the
Strategic Investment Department of Guangdong Electronics Information Industry Group Co. Ltd. and has
served as a Director of the Company since September 2025.Mr. Li Xiyuan: Born in March 1961 member of the Communist Party of China no permanent residence
abroad postdoctoral degree professor-level senior engineer. He has previously served as Deputy Director of the
Construction Management Office of the Northern Section of Beijing-Zhuhai Expressway in Guangdong Province
Deputy Director of the Infrastructure Management Department at Guangdong Provincial Communication Group
Co. Ltd. General Manager of Guangdong Gaintop Highway Engineering Construction Group Co. Ltd. General
Manager and Chairman of Guangdong Provincial Expressway Development Co. Ltd. Chairman of Guangdong
60Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Road and Bridge Construction Development Co. Ltd. and Director of Guangdong Construction Engineering
Group Co. Ltd. Guangdong Province Navigation Group Co. Ltd. Guangdong Namyue Group Co. Ltd. and
Guangdong Provincial Railway Construction Investment Group Co. Ltd. He is currently an external director of
Guangzhou Port Group Co. Ltd. Guangzhou High-tech Industry Group Co. Ltd. and Zhongshan Cuiheng Group
Co. Ltd. as well as an independent director of Shenzhen Tagen Group Co. Ltd. and Dongguan Development
(Holdings) Co. Ltd. He has been an Independent Director of the Company since September 2021.Mr. Zhang Renshou: Born in May 1965 Ph.D. professor postdoctoral co-supervisor doctoral supervisor
no permanent residence abroad doctoral degree. Former assistant lecturer lecturer and associate professor at the
Guangzhou Foreign Language Training Centre of the Ministry of Petroleum Industry; editor at the Development
Research Centre of People’s Government of Guangdong Province; and a professor in the Accounting Department
of the School of Management at Guangzhou University. Currently a special researcher at the Consultancy Office
of the People’s Government of Guangdong Province; and an independent director at Jiangmen Rural Commercial
Bank Limited. (non-listed company) Guangdong Provincial Expressway Development Co. Ltd. and Thinkon
Semiconductor Jinzhou Corp. He also serves as: Member of the Expert Group of the Budget Committee of
Guangzhou Municipal People’s Congress Member of the Expert Group of the Economic Committee of
Guangzhou Municipal People’s Congress Member of the 8th Committee of Guangdong Social Sciences
Association Member of the Academic Committee of Research Center for Guangdong Local Public Finance
Professional Advisory Committee Member of Guangdong Statistics Bureau Member of the Academic Committee
of Guangdong Coastal Economic Belt Development Research Center President of Guangdong South China
Economic Development Research Association Major Administrative Decision Demonstration Expert and
Innovation and Entrepreneurship Development Expert of Shaoguan Municipal People’s Government of
Guangdong Province and Special Researcher of Guangzhou Taxation Bureau of State Taxation Administration of
the People’s Republic of China. He has been an Independent Director of the Company since September 2021.Mr. Dou Linping: Male born in August 1959 with no right of permanent residence in a foreign country
holds a Bachelor’s degree and is a Senior Engineer. Previously he has served as Deputy Chief of the Design
Section of Beijing Luminaries Factory Director of the Office of Design Standards and then Vice Director of
Beijing Luminaries Research Institution Deputy Secretary-General and Managing Director of China Association
of Lighting Industry and Managing Director and Secretary-General of China Illuminating Engineering Society.At present he serves as Vice Director-General of China Solid State Lighting Alliance Director of the Urban
61Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Cultural and Tourism Lighting Professional Committee of CSA and Independent Director of Beijing New Space
Technology Co. Ltd. He has been an Independent Director of the Company since August 2020.ii. Work experience of the senior management
Mr. Zhang Xuequan: Male born in December 1977 a member of the Communist Party of China MBA of
Lingnan College of Sun Yat-Sen University. He joined the Company in 1996. He worked in the former Iodine-
tungsten Lamp Workshop from October to December 1996; worked in the Technology Department and then the
Quality Control Department from January 1997 to August 2002; acted as the Workshop Manager of Lamp
Workshop from September 2002 to May 2008; acted as the Department Director of the Business Management
Department of the Company from June 2008 to August 2016. He concurrently acted as the Office Director and the
Head of the Investment Department from February 2016 to December 2018. He was the Party Branch Secretary
for the Administrative Office of the Company from July 2010 to June 2017 and a member of the party committee
of the Company since July 2015. He was a supervisor of the Company from May 2013 to August 2016 a Deputy
General Manager of the Company from August 2016 to March 2020 an Executive Deputy General Manager of
the Company from March 2020 to December 2023. He has been serving as the Deputy Secretary of the CPC
Committee and General Manager of the Company since December 2023 and a Director of the Company since
February 2024. He has also served as a director of FSL Zhida Electric Technology Co. Ltd. (FSL Zhida)
chairman and general manager of Foshan Taimei Times Lamp Co. Ltd. executive director of Foshan Kelian New
Energy Technology Co. Ltd. director of Nanning Liaowang Auto Lamp Co. Ltd. and a director of Foshan
NationStar Optoelectronics Co. Ltd.Mr. Chen Yu: Male born in December 1972 a member of the Communist Party of China and an engineer
with a bachelor’s degree. He entered the Company in 1994. And acted as workshop manager of parabolic reflector
coating film energy-saving lamps factory director of the branch factory of Gaoming and workshop manager of
general bulbs from January 1997 to December 2012 acted as Director of Production Department OEM
Department and Mechanical Served as the head of the Production Department OEM Department and Mechanical
Power Department from January 2013 to August 2013. From September 2013 to May 2014 served as the head of
the Production Department and OEM Department. He has been the Deputy General Manager of the Company
since May 2014. Since Starting from August 2021 he has also served as the Chairman of Nanning Liaowang Auto
Lamp Co. Ltd.
62Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Ms. Zeng Xiaojing: Female born in October 1978 a member of the Communist Party of China with a
university degree and a certified accountant. She has previously served as the Deputy Head of the Finance
Section at Guangdong Petroleum Enterprise Group Yunfu City Company; Deputy Director of the Finance and
Asset Department and Head of Financial Computerization Management at Sinopec Guangdong Yunfu Petroleum
Branch; Chief Accountant and Deputy Director of the Finance Department at Guangdong Yunfu Salt Industry
General Company; Head of the Finance Section and Manager of the Finance Management Department at
Guangdong Yunfu Salt Industry Group Co. Ltd.; Deputy General Manager (Deputy Director) Executive Director
Legal Representative and Party Branch Secretary at Guangdong Yunfu Salt Industry Group Co. Ltd. (Yunfu Salt
Industry Bureau); and Deputy General Manager Executive Director (Legal Representative) General Manager
and Party Committee Secretary at Guangdong Zhaoqing Salt Industry Group Co. Ltd. She has been Deputy
General Manager of the Company since May 2024 and concurrently Chief Financial Officer of the Company
since July 2025.Mr. Li Zehua: Male born in October 1985 a member of the Communist Party of China. He holds a
Master’s degree in Law and has obtained the legal professional qualification certificate. He used to serve as
Deputy Director and Director of the Office Director of the Party-Masses Department Director of the Human
Resources Department Director of the Securities and Legal Affairs Department Director of the Investment
Management Department Board Secretary and Chief Legal Counsel at Dongjiang Environmental Company
Limited; a Party Committee Member and Deputy General Manager of Guangdong Electronics Information
Industry Group Ltd.; Chairman of the Board of Shenzhen Yuebao Electronic Technology Co. Ltd.; and Director
of Foshan Electrical and Lighting Co. Ltd. Currently he is Deputy General Manager of Foshan Electrical and
Lighting Co. Ltd. Director of Foshan NationStar Optoelectronics Co. Ltd. and Chairman of the Board of Foshan
Hortilite Optoelectronics Co. Ltd.Mr. Wang Ye: Male born in January 1977 with a postgraduate degree and an Executive MBA (EMBA)
from China Europe International Business School (CEIBS). He has previously served as Senior Director of the
South China Regional Headquarters at Orient Overseas Logistics (China) Ltd. Senior Manager at the Supply
Chain Headquarters of Danone (China) Food and Beverage Co. Ltd. Deputy General Manager of Logistics
Management Headquarters at Qingdao Beer Co. Ltd. Head of the Supply Chain Centre Vice President and
General Manager of the E-commerce Division at Opple Lighting Co. Ltd. He has been the Deputy General
Manager of the Company since September 2024.
63Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Mr. Huang Zhenhuan: Male born in December 1987 he holds a master’s degree in finance is a financial
economist and has obtained the qualification certificate of Secretary of the Board of Directors issued by SZSE.He used to be the sponsor of Assets Department Assistant General Manager of Investment Department and
General Manager of Finance Department of Guangzhou Guangyong State-owned Asset Sales Co. Ltd. General
Manager of Guangzhou Guangyong Equity Investment Fund Management Co. Ltd. General Manager of
Corporate Finance Department III (Industry Center) of Minsheng Bank Guangzhou Branch Investment Director
of Guangdong Rising Finance Holding Co. Ltd. (GD Rising Finance) and Senior Director of Capital Operation
Department of Guangdong Rising Holdings Group Co. Ltd. He has served as Board Secretary of the Company
since May 2021 and is concurrently Chairman of the Board and General Manager of Guangdong Airtrust
Aviation Equipment Co. Ltd. a majority-owned subsidiary of the Company.Indicate whether the controlling shareholder or actual controller concurrently serves as the Chairman of the
Board or General Manager of the Company.□ Applicable□ Not applicable
Offices held concurrently in shareholding entities:
□Applicable □ Not applicable
Remuneration or
Shareholding Office held in the
Name Start of tenure End of tenure allowance from the
entity shareholding entity
shareholding entity
Full-time director
Guangdong Rising accredited to the
December 31
Hu Fengcai Holdings Group listed company by Yes
2025
Co. Ltd. capital operation
department
Guangdong Board Secretary
Electronics and Head of
Huang Yue Information Strategic Yes
Industry Group Investment
Ltd. Department
Prosperity Lamps
Chairman of the
Zhuang Jianyi & Components Yes
Board
Limited
Offices held concurrently in other entities:
□Applicable □ Not applicable
Remuneration or
Office held in the
Name Other entity Start of tenure End of tenure allowance from the
entity
entity
Thinkon
Zhuang Jianyi Semiconductor Director No
Jinzhou Corp.Li Xiyuan Guangzhou Port Director Yes
64Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Group Co. Ltd.Guangzhou High
Li Xiyuan Tech Industry Director Yes
Group Co. Ltd.Zhongshan
Li Xiyuan Cuiheng Group Director Yes
Co. Ltd.Dongguan
Development Independent
Li Xiyuan Yes
(Holdings) Co. Director
Ltd.Shenzhen Tagen Independent
Li Xiyuan Yes
Group Co. Ltd. Director
Guangzhou Accounting
Zhang Renshou June 30 2025 Yes
University Professor
Jiangmen Rural
Independent
Zhang Renshou Commercial Bank Yes
Director
Company Limited
Guangdong
Provincial
Independent
Zhang Renshou Expressway Yes
Director
Development Co.Ltd.Thinkon
Independent
Zhang Renshou Semiconductor Yes
Director
Jinzhou Corp.China Solid State
Dou Linping Vice Chairman No
Lighting Alliance
Hengdian Group
Independent
Dou Linping Tospo Lighting April 20 2025 Yes
Director
Co. Ltd.Beijing New Space
Independent
Dou Linping Technology Co. Yes
Director
Ltd.Punishments imposed in the recent three years by the securities regulator on the incumbent directors and senior
management as well as those who left in the Reporting Period:
□ Applicable□ Not applicable
3. Remuneration of Directors and Senior Management
Decision-making procedure determination basis and actual payments of remuneration for directors and senior
management:
During the Reporting Period the Remuneration & Appraisal Committee under the Board of Directors
decided the 2024 remunerations for the leadership in accordance with the Measures for Managing the
Remuneration of the Leadership Team Members and the performance appraisal indicators taking into account the
main operating indicators the accomplishment of key tasks and the fulfillment of job responsibilities during the
period before submitting the remuneration plan to the Board of Directors for approval.
65Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Remuneration of directors and senior management for the Reporting Period:
Unit: RMB’0000
Total before-
Any
tax
Incumbent/For remuneration
Name Gender Age Office title remuneration
mer from related
from the
party
Company
Chairman of
Yu Zhongmin Male 53 Incumbent 20.14 No
the Board
Vice Chairman
Zhuang Jianyi Male 74 Incumbent 0 Yes
of the Board
Director and
Zhang Xuequan Male 48 General Incumbent 179.69 No
Manager
Huang Yue Male 40 Director Incumbent 0 Yes
Independent
Li Xiyuan Male 65 Incumbent 18 No
Director
Independent
Zhang Renshou Male 60 Incumbent 18 No
Director
Independent
Dou Linping Male 66 Incumbent 18 No
Director
Deputy General
Chen Yu Male 53 Incumbent 166.95 No
Manager
Deputy General
Li Zehua Male 40 Incumbent 18.39 No
Manager
Deputy General
Manager and
Zeng Xiaojing Female 47 Incumbent 117.32 No
Chief Financial
Officer
Deputy General
Wang Ye Male 49 Incumbent 311.16 No
Manager
Huang Board
Male 38 Incumbent 77.27 No
Zhenhuan Secretary
Chairman of
Wan Shan Male 56 Former 121 No
the Board
Chen Mingjie Male 42 Director Former 129.06 No
Hu Fengcai Male 60 Director Former 0 Yes
Executive Vice
Zhang Yong Male 51 Former 141.8 No
President
Chief Financial
Tang Qionglan Female 55 Former 121.92 No
Officer
Total? -- -- -- -- 1458.7 --
Performance appraisal basis for the The remuneration of non-independent directors and senior management personnel who
actual remuneration received by all receive remuneration from the Company is appraised in accordance with their annual
directors and senior management at performance appraisal indicators and the provisions of the Company’s Measures for
the end of the Reporting Period Managing the Remuneration of the Leadership Team Members.During the Reporting Period the Remuneration and Appraisal Committee of the Board
of Directors formulated the remuneration plan for non-independent directors and senior
Performance appraisal for the actual
management receiving remuneration from the Company in accordance with relevant
remuneration received by all directors
regulations and procedures for 2024. Therefore the Company completed the
and senior management at the end of
remuneration appraisal for non-independent directors and senior management receiving
the Reporting Period
remuneration from the Company for 2024 during the Reporting Period. The
remuneration appraisal for 2025 will be conducted after the operating audit results are
66Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
released based on a comprehensive appraisal of the appraisal indicators and the
remuneration rules. The 2025 remuneration appraisal has not yet been completed.In accordance with the Company’s Measures for Managing the Remuneration of the
Deferred payment arrangements for Leadership Team Members the term-based incentives and additional rewards for non-
the actual remuneration received by independent directors and senior management receiving remuneration from the Company
all directors and senior management are deferred. During the Reporting Period the remuneration received by non-
at the end of the Reporting Period independent directors and senior management from the Company included a portion of
term-based incentives from previous years.Payment termination and recovery of
the actual remuneration received by
None
all directors and senior management
at the end of the Reporting Period
Other information:
□Applicable □ Not applicable
1. Due to the failure to pass the 2025 annual appraisal of the non-independent directors and senior
management receiving remuneration from the Company during the Reporting Period the remuneration received
by the Company’s directors and senior management for the year 2025 includes the performance-based
remuneration for 2024 that was not paid as well as some term-based incentive remuneration for the period from
2020 to 2023 that was vested in the current period. It does not include the performance-based remuneration for
2025 that has not yet been settled upon appraisal.
2. The above total remuneration represents the pre-tax remuneration received by directors and senior
management from the Company in 2025 including base salary performance-based pay social insurance
contributions housing fund enterprise annuity and other forms of remuneration obtained from the Company.V Performance of Duty by Directors during the Reporting Period
1. Attendance of Directors at Board Meetings and Meetings of Shareholders
Attendance of directors at board meetings and meetings of shareholders
Whether the
Total number Board
Board Board director
of board Board meetings
meetings meetings the failed to Meetings of
meetings the meetings attended by
Director attended director attend two shareholders
director was attended on way of
through a failed to consecutive attended
eligible to site telecommuni
proxy attend board
attend cation
meetings
Yu
5 1 4 0 0 No 1
Zhongmin
Zhuang
11 3 8 0 0 No 3
Jianyi
Zhang
11 3 8 0 0 No 3
Xuequan
Chen
6 2 4 0 0 No 1
Mingjie
Hu Fengcai 11 3 8 0 0 No 3
Li Zehua 6 2 4 0 0 No 1
67Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Li Xiyuan 11 3 8 0 0 No 3
Zhang
11 3 8 0 0 No 3
Renshou
Dou Linping 11 3 8 0 0 No 3
Wan Shan 6 2 4 0 0 No 1
Huang Yue 5 1 4 0 0 No 1
Explanation on any director failing to attend two consecutive board meetings:
None.
2. Objections Raised by Directors on Matters of the Company
Indicate whether any directors raised any objections on any matter of the Company.□ Yes□ No
No such cases during the Reporting Period.
3. Other Information about the Performance of Duty by Directors
Indicate whether any suggestions from directors were adopted by the Company.□ Yes □ No
Suggestions from directors adopted or not adopted by the Company:
During the Reporting Period the directors of the Company worked to fulfill their functions and duties
actively attended board meetings and meetings of shareholders offered advices and suggestions and performed
their rights functions duties and obligations as defined in the Company Law the Securities Law and the
Articles of Association. They fulfilled their role as a director upheld the legitimate rights and interests of the
Company and its shareholders promoted further improvement in corporate governance and effectively
facilitated regulatory compliance of the Company’s operation. During the Reporting Period the directors of the
Company actively performed their functions and duties made full use of their professional knowledge worked
diligently to fulfill their duties and offered many invaluable advices and suggestions on the Company’s
management decision-making and major matters based on their in-depth understanding of the Company’s
operations. They played their due role in improving the Company’s supervision mechanism promoting
improvement in the Company’s risk control capacity and upholding the legitimate rights and interests of the
Company and its shareholders.VI Performance of Duty by Special Committees under the Board during the Reporting
Period
Meeti Opinion Othe ObjectiConvened
Committee Members ngs Contents reviewed and on (ifdate r
conve advice activ any)
68Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ned ities
Strategy and Yu
1. Proposal on Participation in the
Investment Zhongmin
Subscription of A-Shares Issued to
Committee Zhuang
1 July 8 2025 Specific Entities by the Majority- Approved
of the 10th Jianyi Zhang
owned Subsidiary NationStar
Board of Xuequan
Optoelectronics in 2025
Directors Dou Linping
1. Proposal on the Appointment of
July 8 2025 Approved
Chief Financial Officer
1. Proposal on the Nomination of
Zhang
Nomination Candidates for Non-Independent
Xuequan Li
Committee September 10 Directors of the 10th Board of
Xiyuan Dou Approved
of the 10th 3 2025 Directors
Linping
Board of 2. Proposal on the Nomination of
Zhang
Directors Deputy General Manager
Renshou
1. Proposal on the Election of
September 26
Chairman of the 10th Board of Approved
2025
Directors
1. Proposal on the 2024 Financial
March 24
Statement Audit Work Plan and Approved
2025
Progress
1. 2024 Financial Statement Audit
and Internal Control Audit Report
2. 2024 Annual Financial Statements
3. 2025 Financial Budget Report
4. Proposal on the Provision for
Asset Impairment and the Write-off
of Assets
5. 2024 Internal Control Self-
Assessment Report
6. Assessment Report on the
Performance of the Accounting Firm
7. Report of the Board’s Audit
Audit Compliance and Risk Management
Compliance Committee on the Performance of
Zhang
and Risk Supervisory Duties by the
Renshou Li
Management Accounting Firm in 2024
Xiyuan Dou 6
Committee 8. Proposal on the Modification or
Linping
of the 10th April 16 Termination of Certain Raised Funds
Huang Yue Approved
Board of 2025 Invested Projects
Directors 9. Proposal on Adjusting the Internal
Investment Structure Adding
Implementation Locations and
Postponing the Implementation of
Some Raised Funds Invested Projects
10. Special Report on the Deposit
and Use of Raised Funds in 2024
11. 2024 Compliance and Risk
Report
12. Audit Department’s 2024 Work
Report and 2025 Work Plan
13. First Quarterly Report 2025
14. Special Report on the Deposit
and Actual Use of Raised Funds in
the First Quarter of 2025
15. Audit Department’s First
Quarterly Work Summary for 2025
69Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
1. Proposal on the Appointment of
July 8 2025 Approved
Chief Financial Officer
1. 2025 Interim Report and its
Summary
2. Special Report on the Deposit and
Use of Raised Funds in the First Half
August 22
of 2025 Approved
2025
3. Audit Department’s Summary for
the First Half of 2025 and Work Plan
4. Proposal on the Revision of the
Internal Audit Rules
1. Third Quarterly Report 2025
2. Proposal on the Reappointment of
Accounting Firm for 2025
3. Special Report on the Deposit and
October 27
Actual Use of Raised Funds in the Approved
2025
Third Quarter of 2025
4. Audit Department’s Work
Summary for the First Three Quarters
of 2025 and Work Plan
1. Proposal on the Use of Part of Idle
December 17
Proceeds from Fundraising for Cash Approved
2025
Management
1. Proposal on Appraisal for the 2024
August 22 Performance-Based Remuneration
Approved
2025 for Deputy General Managers
Remuneratio (Professional Managers)
n and Dou Linping Approved
Appraisal Zhang and the
Committee Renshou Li 2 1. Proposal on the 2024 Performance relevant
of the 10th Xiyuan Appraisal Results and Remuneration committe
Board of Huang Yue September 26 Payment Plan for Company Leaders e
Directors 2025 2. Proposal on the Performance members
Appraisal Indicators for Company
abstained
Leaders for 2025
from
voting
VII Performance of Duty by the Audit Committee
Indicate whether the Audit Committee found any risk to the Company during its supervision in the Reporting
Period.□ Yes□ No
The Audit Committee raised no objections in the Reporting Period.VIII Employees
1. Number Functions and Educational Backgrounds of Employees
Number of in-service employees of the parent company at the
4929
period-end
Number of in-service employees of major subsidiaries at the
7042
period-end
Total number of in-service employees at the period-end 11971
Total number of paid employees during the Reporting Period 11971
70Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Number of retirees to whom the parent company or its major
217
subsidiaries need to pay retirement pensions
Functions
Function Number of employees
Production 8360
Sales 898
Technical 1882
Financial 137
Administrative 694
Total 11971
Educational backgrounds
Educational background Number of employees
Junior college and below 9291
Bachelor’s degree 2383
Master’s degree 283
Doctoral degree and above 14
Total 11971
2. Employee Remuneration Policy
The Company adheres to a remuneration approach based on job value supported by individual capability
and centered on performance contribution and has established a comprehensive compensation management
system featuring "position-based pay performance-based remuneration and dynamic adjustment." Balancing
fairness competitiveness and incentives in remuneration it enhances the ability to attract retain and motivate
core talent achieving the common development of the Company and employees. With position-based pay as the
core premise the Company uses scientific job value assessments to clarify the responsibilities authority and
value grades of each position sets up a clear salary grade system and ensures that the remuneration level for
different positions matches their job value. Performance-based remuneration serves as the core incentive.Compensation is closely linked to individual performance departmental performance and overall performance
of the Company. Incentive modules such as performance bonuses and special awards are established to give key
rewards to employees with outstanding performance and excellent results fully motivating employees’ work
enthusiasm and creativity. Dynamic adjustments serve as an important safeguard. The Company regularly
optimizes and adjusts the compensation system in light of industry compensation levels market supply and
demand for talent the Company’s operating performance and improvements in employees’ individual
capabilities. This not only ensures the market competitiveness of employees’ compensation levels but also
aligns compensation with the Company’s development further enhancing employees’ sense of belonging and
well-being.
71Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3. Employee Training Plans
Centered on the core approach of "strategic orientation business-driven development tiered and
categorized management and digital empowerment" the Company has formulated systematic and normalized
training plans in light of its long-term development strategy business development pain points and employees’
growth needs striving to enhance the overall competence and professional capabilities of all employees and
inject talent-driven momentum into high-quality development. The Company’s training initiatives focus on two
core priorities. First the Company strengthens capacity building for digital transformation. In line with its
digital development strategy the Company delivers tiered and targeted digital skills training to employees
across different roles covering digital tool application digital mindset development and business digitalization
implementation. Such training drives the deep integration of digital technology and business operations
enhances the digital literacy and innovation capabilities of all employees and supports the Company in
achieving its digital transformation objectives. Second the Company advances the development of its internal
trainer team by identifying outstanding cadres technical experts and management talents to form a professional
internal training corps. It has refined the training assessment and incentive mechanisms for internal trainers
who help pass on the Company’s core technologies best practices and corporate culture through instruction
experience sharing and case workshops. Concurrently the Company has established a training platform
integrating internal and external resources and introduced high-quality external programs to offer diversified
courses covering management competence professional skills and professional conduct. These measures cater
to the growth needs of employees at all levels and across various positions foster a learning-oriented
organization and promote common growth of employees and the Company.
4. Labor Outsourcing
□ Applicable□ Not applicable
IX Profit Distribution and Bonus Issue
How the profit distribution policy especially the cash dividend policy for ordinary shareholders was formulated
executed or revised in the Reporting Period:
□Applicable □ Not applicable
The Company’s Articles of Association have clearly stipulated the conditions for profit distribution the
priority of cash dividends the minimum dividend payout ratio and the decision-making procedures for
formulating and adjusting profit distribution policies. Meanwhile it has formulated the Management Rules for
72Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Profit Distribution and the Return for Shareholder Plan for the Coming Three Years (2024-2026) specifying the
arrangements and forms of dividends the cash dividend planning and the distribution intervals etc. which has
further improved the decision-making and supervision procedures for dividend distribution. According to the
Company’s profit distribution rules the profit distributed in cash shall not be less than 30% of the distributable
profit achieved in the year.Special statement about the cash dividend policy
In compliance with the Company’s Articles of Association and
Yes
resolution of meeting of shareholders
Specific and clear dividend standard and ratio Yes
Complete decision-making procedure and mechanism Yes
Independent directors faithfully performed their duties and
Yes
played their due role
If the Company has no dividend plan it should disclose the
specific reasons and the next steps it intends to take to enhance N/A
investor returns
Non-controlling interests are able to fully express their opinion
Yes
and desire and their legal rights and interests are fully protected
In case of adjusting or changing the cash dividend policy the
conditions and procedures involved are in compliance with Not involved
applicable regulations and transparent
Indicate whether the Company fails to put forward a cash dividend proposal for shareholders despite the facts
that the Company has made profits in the Reporting Period and the profits of the parent company distributable
to shareholders are positive.□ Applicable□ Not applicable
Final dividend plan and bonus issue for the Reporting Period:
□Applicable □ Not applicable
Bonus shares for every 10 shares (share) 0
Dividend for every 10 shares (RMB) (tax inclusive) 0.5
Total shares as the basis for the profit distribution proposal
1535778230
(share)
Cash dividends (RMB) (tax inclusive) 76788911.50
Cash dividends in other forms (such as share repurchase)
0.00
(RMB)
Total cash dividends (including those in other forms) (RMB) 76788911.50
Distributable profit (RMB) 3188821949.84
Total cash dividends (including those in other forms) as % of
100.00%
total profit distribution
Cash dividend policy
Where it is difficult to determine the development stage of the Company but it has plans for considerable spending in profit
distribution cash dividends shall reach at least 20% in the total profit to be distributed.
73Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Details about the final dividend and bonus issue proposal
As audited by WUYIGE Certified Public Accountants LLP the consolidated net profit attributable to shareholders of the parent
company for 2025 is RMB214845871.24 and the cumulative consolidated retained earnings as of the end of 2025 is
RMB4035582297.14 . The parent company recorded a net profit of RMB3361835.06 for 2025 of which 10% i.e.RMB336183.51 was appropriated as statutory surplus reserve. Plus the opening retained earnings of RMB3019769843.45 and
a transfer of RMB350319842.44 to retained earnings from the sale of shares in Gotion High-tech held by the Company during
the period and the cumulative fair value changes previously included in other comprehensive income minus the profit
distributions of RMB184293387.60 for 2024 the cumulative retained earnings of the parent company as of the end of 2025 is
RMB3188821949.84. The Board of Directors has recommended a final dividend plan for 2025 as follows: based on the total
share capital of 1535778230 shares at the disclosure date of the 2025 Annual Report a cash dividend of RMB0.50 (tax
inclusive dividends for B-shareholders to be paid in an equivalent amount of HKD) per 10 shares is to be distributed to the
shareholders with no bonus issue from either profit or capital reserves. And the remaining retained earnings shall be carried
forward for distribution in subsequent years. Where any change occurs to the total shares entitled to the final dividend due to any
share repurchase grant of equity incentives etc. when the final dividend preplan is implemented the dividend per share shall
remain the same while the total payout amount shall be adjusted accordingly.X Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures
for Employees
□ Applicable□ Not applicable
No such cases during the Reporting Period.XI Formulation and Implementation of Internal Control System during the Reporting
Period
1. Internal control formulation and implementation
During the Reporting Period the Company in accordance with the Basic Standards for Internal Control and
its supporting guidelines as well as the actual situation further revised and improved the relevant internal control
systems and established a relatively effective internal control system so as to effectively prevent and discover
risks in the process of operation and management in time and provide guarantee for the legal compliance and
asset safety of operation and management. The Company’s Board of Directors has established an Audit
Compliance and Risk Management Committee responsible for supervising reviewing and communicating the
Company’s internal and external audits internal control system reviews risk management and compliance
management. The internal audit department of the Company is responsible for the internal audit supervision of the
Company including supervising and inspecting the implementation of the internal control system of the Company
regularly or irregularly conducting routine audits or special audits on finance internal control major projects and
their businesses and putting forward suggestions for improving internal control to control and prevent risks. If the
audit department finds major defects in internal control in the process of supervision and inspection it has the
right to report directly to the Audit Compliance and Risk Management Committee of the Board of Directors.
74Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
According to the identification of major defects in the Company’s internal control there were no major defects in
the internal control of financial reports and non-financial reports in 2025.
2. Material Internal Control Weaknesses Identified for the Reporting Period
□ Yes□ No
XII Management and Control of Subsidiaries by the Company during the Reporting Period
Problems Follow
Settle
encounter Soluti -up
Name of ment
Integration plan Integration progress ed in ons settlem
company progre
integratio taken ent
ss
n plan
First the Company strengthened
empowerment through technological During the Reporting Period
R&D. Leveraging the mature Airtrust’s production base
technological expertise accumulated was successfully established
by its Lighting Research Institute in in the Company’s Gaoming
Guangdong the lighting sector it provided Production Park achieving
Airtrust technical development guidance for deep integration with R&D
Aviation aviation lighting products of Airtrust and production resources and
Equipment covering structural design optical forming a development
Co. Ltd. applications electronic control and pattern of efficient
(formerly other key areas thereby helping coordination between R&D
None None None None
known as Airtrust enhance its R&D strength and production. The
Beijing and product competitiveness. Second integration and synergy
Airtrust the Company promoted the effects between both parties
Aviation integration of management systems continued to emerge. Going
Technology by introducing its lean production forward the Company will
Co. Ltd.) management system assisting focus on market expansion in
Guangdong Airtrust in optimizing aviation lighting providing
production and operational processes support for the overall growth
to achieve cost reduction and of the Company’s operating
efficiency gains across the entire results.value chain.Anomalies found in the management and control of subsidiaries:
□ Yes□ No
XIII Assessment Report or Independent Auditor’s Report on Internal Control
1. Internal Control Assessment Report
Disclosure date of the internal
April 17 2026
control assessment report
Index to the disclosed internal See www.cninfo.com.cn for the Internal Control Assessment Report 2025
control assessment report
Assessed entities’ combined
assets as % of consolidated 100.00%
total assets
Assessed entities’ combined
operating revenue as % of 100.00%
consolidated operating revenue
75Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Identification standards for internal control weaknesses
Weaknesses in internal control over Weaknesses in internal control not related to
Type
financial reporting financial reporting
A weakness should be considered a material
weakness if it meets any of the following
characteristics:
1. It has been penalized for serious violations of
national laws administrative regulations and
normative documents;
2. Due to a severe lack of the “Three Key Areasand Major Decisions” decision-making
procedure resulting in undemocratic decision-
making processes which caused serious
decision-making errors and significant
A weakness with any of the following
economic losses for the Company;
characteristics should be considered a
3. The negative impact caused by illegal or non-
material weakness:
compliant behavior is widespread widely
1. The weakness involves fraud by directors
attracts public attention and causes irreparable
or senior management;
damage to the Company’s reputation;
2. The control environment is ineffective;
4. Important business operations in the
3. The registered public accountant
Company’s production and management lack
identifies a material misstatement in the
policy controls or policy system failure; or
financial statements for the period and
5. The internal control assessment result is a
internal control failed to detect the
material weakness and effective remediation
misstatement during its operation; or
has not been completed within twelve months.
4. The Audit Committee and internal audit
function’s oversight of internal control is
A weakness with any of the following
ineffective.characteristics should be recognized as a serious
weakness:
A weakness should be considered a serious
1. Owing to partly lack of the decision-making
Nature standard weakness if it meets any of the following
process on significant events and the
conditions:
undemocratic decision-making process which
1. An identified serious weakness has not
caused the decision-making mistake that led the
been corrected within a reasonable period;
Company face with certain economic losses;
2. Restatement of previously published
2. The negative influences owning to the
financial statements;
unlawful acts and the irregularities h involve
3. The internal audit function is ineffective;
with wide range and cause public concern
or
among the partial regions which bring certain
4. The control over the selection and
harms to the reputation of the Company;
application of accounting policies in
3. The system of the major business involved
accordance with generally accepted
with the production and operating of the
accounting principles is ineffective.Company is incomplete or partially invalid; or
4. The results of the internal control assessment
A weakness should be considered a general
turn out to include any serious weakness and
weakness if it is a control weakness other
such a weakness fails to be rectified effectively
than the material and serious weaknesses
within six months.mentioned above.A weakness should be considered a general
weakness if it meets any of the following
characteristics:
1. Due to the incomplete implementation of the
“Three Key Areas and Major Decisions”
decision-making procedure resulting in
undemocratic decision-making processes and
decision-making errors causing the Company to
suffer relatively small economic losses;
2. The negative impact caused by non-
76Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
compliant behavior affects certain regions and
attracts limited public attention causing minor
damage to the Company’s reputation;
3. The general business policies related to the
Company’s production and operations are
incomplete or partially ineffective; or
4. The remediation of any general weakness has
not been completed within six months.Based on the data of the 2024 consolidated
According to the quantitative criterion of the
financial statements the quantitative
internal control weaknesses of the financial
criterion of confirming the degree of the
statements the quantitative criterion of
misstatement (including the false negatives)
weaknesses in internal control not related to
from of the consolidated financial
financial reporting confirmed by the Company
statements of the listed company is as
Quantitative standard is as follows: Material weakness: Misstatement
follows: Material weakness: Misstatement
≥ 1.0% of the total assets amount; serious
≥ 1.0% of the total assets amount; serious
weakness: 0.5% of the total assets amount ≤
weakness: 0.5% of the total assets amount ≤
misstatement ＜1.0% of the total assets
misstatement ＜ 1.0% of the total assets
amount; general weakness: Misstatement ＜
amount; general weakness: Misstatement
0.5% of the total assets amount.
＜ 0.5% of the total assets amount.Number of material
weaknesses in internal control 0
over financial reporting
Number of material
weaknesses in internal control
0
not related to financial
reporting
Number of serious weaknesses
in internal control over 0
financial reporting
Number of serious weaknesses
in internal control not related to 0
financial reporting
2. Independent Auditor’s Report on Internal Control
□Applicable □ Not applicable
Opinion paragraph in the independent auditor’s report on internal control
WUYIGE Certified Public Accountants LLP considered that: Foshan Electrical and Lighting Co. Ltd. maintained effective
internal control of the financial report in all significant aspects according to the Basic Standards for Internal Control and relevant
regulations.Independent auditor’s report on internal control disclosed or
Disclosed
not
Disclosure date April 17 2026
See www.cninfo.com.cn for the Auditor’s Report on Internal
Index to such report disclosed
Control
Type of the auditor’s opinion Unmodified unqualified opinion
Material weaknesses in internal control not related to financial
No
reporting
Indicate whether any modified opinion is expressed in the independent auditor’s report on the Company’s
internal control.
77Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
□ Yes□ No
Indicate whether the independent auditor’s report on the Company’s internal control is consistent with the
internal control self-evaluation report issued by the Company’s Board.□ Yes □ No
Indicate whether the Company was issued any modified opinion by the independent auditor on its internal
control for the Reporting Period or last year.□ Yes□ No
XIV Rectifications of Problems Identified by Self-inspection in the Special Action for Listed
Company Governance
None.XV Environmental Information Disclosure
Indicate whether the listed company or any of its major subsidiaries is included in the list of companies that are
required by law to disclose environmental information.□ Yes □ No
Number of companies included in the list of companies that are required by law to
5
disclose environmental information
Index to the report on required
No. Company
environmental information
Gaoming branch of Foshan Electrical List of Key Environmental Supervision
and Lighting Co. Ltd. Units in Foshan City 2025
Liuzhou Guige Lighting Technology List of Key Environmental Supervision
Co. Ltd. Units in Liuzhou City 2025
Department of Ecology and Environment
Foshan NationStar Optoelectronics Co. of Guangdong Province- Enterprise
Ltd. Environmental Information Disclosure
System
Department of Ecology and Environment
Foshan NationStar Semiconductor Co. of Guangdong Province- Enterprise
Ltd. Environmental Information Disclosure
System
Department of Ecology and Environment
Guangdong Fenghua Semiconductor of Guangdong Province- Enterprise
Technology Co. Ltd. Environmental Information Disclosure
System
XVI Social Responsibility
For details about the Company’s fulfillment of social responsibilities in 2025 please refer to the
Environmental Social and Governance (ESG) Report 2025 disclosed by the Company on www.cninfo.com.cn
on April 17 2026.
78Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
XVII Efforts in Poverty Alleviation and Rural Revitalization
The Company takes promoting industrial development strengthening technological support and practicing
green concepts as its core pathways breaks through the single-donation model and actively explores new
models for rural revitalization through measures such as industrial assistance paired assistance and
consumption-based assistance thereby contributing to the development of livable business-friendly and
beautiful rural areas.First the Company deepens industrial momentum to promote simultaneous improvement in employment
and the economy. Driven by the dual engines of industrial implementation and technological innovation the
Company together with its subsidiary NationStar Optoelectronics invested nearly RMB 53 million to build a
smart outdoor and sports lighting production base in Gaozhou Maoming with an annual output value of
approximately RMB 60 million generating stable tax revenue for the local area and driving local employment.In 2025 the base was awarded the title of "Industrial Collaboration Demonstration Enterprise of Foshan
(Maoming) Industrial Transfer Cooperation Park" effectively energizing local economic development through
the engine of industry.Second the Company strengthens technological empowerment to support quality improvement and
efficiency enhancement in agriculture. In response to the production challenges in agriculture animal
husbandry and the marine industry the Company has precisely developed adaptive technologies and products
injecting technological momentum into the revitalization of rural industries. In the agricultural sector it has
successfully developed highly efficient LED supplemental lighting equipment for plants and a customizable
intelligent spectral control system meeting the needs of high-value crops such as roses blueberries and
Chinese medicinal herbs at different growth stages. The relevant technologies have been demonstrated and
applied at the Maoming dragon fruit base achieving increased crop yields and extended production periods. In
the livestock sector the Company has launched the husbandry lighting series of heating bulbs the husbandry
lighting series of waterproof light tubes and intelligent lighting systems addressing issues such as high energy
consumption in breeding and difficulties in environmental control. Among them the husbandry lighting series
of heating bulbs achieved energy savings of more than 14% and doubled service life effectively improving
breeding efficiency. In the marine industry sector it promotes the commercialization of patented technologies
such as ship lighting and aquaculture lighting completes the R&D and domestic application of 10000-meter-
79Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
class LED deep-sea lighting equipment and has developed an intelligent lighting system for marine ranches
supporting the development of marine resources.Third the Company deepens urban-rural integration and effectively advances consumption-based
assistance and infrastructure improvement. On the one hand it builds bridges for the mutual exchange of urban
and rural resources deepens the long-term mechanism for consumption-based assistance and promotes
resource sharing and complementary advantages through methods such as targeted procurement of agricultural
products from assistance regions and providing agricultural-support products as employee benefits. In 2025 the
Company implemented consumption-based assistance of more than RMB 1.70 million in assistance areas such
as Wuhua County in Meizhou Qiandongnan in Guizhou and Conghua in Guangzhou achieving a win-win in
both economic and social benefits. On the other hand focusing on the improvement of rural infrastructure it
donated 145 sets of intelligent solar street lights to assistance areas such as Batou Village Hengpi Town
Wuhua County Meizhou City and Luohu Middle School Dongyuan County Heyuan City. With a clean low-
carbon and easy-to-maintain lighting solution the Company effectively improved villagers’ nighttime travel
conditions and the campus lighting environment safeguarding rural well-being with the warmth of technology.
80Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Part V Significant Events
I Fulfillment of Commitments
1. Commitments of the Company’s Actual 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
Date
Type of Term
Commitm Promiso of comm of Fulfill
Details of commitment
ent r comm itment comm ment
itment makin itment
g
Electronics Group and Hong Kong Rising Investment have made
commitments as follows to avoid horizontal competition with the
Company: 1. They shall conduct supervision and restraint on the
production and operating activities of themselves and their relevant
enterprises so that besides the enterprise above that is in horizontal
Commitm competition with the Company for now if the products or business of
ents made them or their relevant enterprises become the same with or similar to
Electron
in those of the Company or its subsidiaries in the future they shall take
ics About
acquisitio the following measures: (1) If the Company thinks necessary they
Group avoida
n and their relevant enterprises shall reduce and wholly transfer their Dece
and nce of
document relevant assets and business; and (2) If the Company thinks mber Long- Ongoi
Hong horizo
s or necessary it is given the priority to acquire first by proper means 4 term ng
Kong ntal
sharehold the relevant assets and business of them and their relevant 2015
Rising compe
ing enterprises. 2. All the commitments made by them to eliminate or
Investm tition
alteration avoid horizontal competition with the Company are also applicable to
ent
document their directly or indirectly controlled subsidiaries. They are obliged to
s urge and make sure that other subsidiaries execute what’s prescribed
in the relevant document and faithfully honor all the relevant
commitments. 3. If they or their directly or indirectly controlled
subsidiaries break the aforesaid commitments and thus cause a loss
for the Company they shall compensate the Company on a rational
basis.
1. Rising Group will take active measures to avoid any business or
Commitm
activity that competes or may compete with the principal business of
ents made
the Company and its auxiliary enterprises and urge the Promisor to
in
About control enterprises to avoid any business or activity that competes or
acquisitio
avoida may compete with the principal business of the Company and its
n Nove
Rising nce of auxiliary enterprises. 2. If the Promisor and its controlled enterprises
document mber Long- Ongoi
Holding horizo are given the opportunity to engage in new business that constitutes
s or 4 term ng
s Group ntal or may constitute horizontal competition with the principal
sharehold 2021
compe businesses of the Company and its auxiliary enterprises the Promisor
ing
tition will make every effort to make the business opportunity first
alteration
available to the Company or its auxiliary enterprises on reasonable
document
and fair terms and conditions on the premise that conditions permit
s
and in the interest of the listed company.Electron About Electronics Group and Hong Kong Rising Investment have made a Dece Long- Ongoi
Commitm ics reduct commitment that during their direct or indirect holding of the mber term ng
81Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ents made Group ion Company’s shares they shall 1. Strictly abide by the regulatory 4
in and and documents of the CSRC and the SZSE the Company’s Articles of 2015
acquisitio Hong regula Association etc. and not harm the interests of the Company or other
n Kong tion of shareholders of the Company in their production and operating
document Rising related activities by taking advantage of their position as the controlling
s or Investm -party shareholder and actual controller; 2. Make sure that they or their
sharehold ent transa other controlled subsidiaries branch offices jointly-run or associated
ing ctions companies (the “Relevant Enterprises” for short) will try their best to
alteration avoid or reduce related-party transactions with the Company or the
document Company’s subsidiaries; 3. Strictly follow the market principle of
s justness fairness and equal value exchange for necessary and
unavoidable related-party transactions between them and their
Relevant Enterprises and the Company and withdraw from voting
when a related-party transaction with them or their Relevant
Enterprises is being voted on at a general meeting or a board
meeting and execute the relevant approval procedure and
information disclosure duties pursuant to the applicable laws
regulations and regulatory documents. Where the aforesaid
commitments are broken and a loss is thus caused for the Company
its subsidiaries or the Company’s other shareholders they shall be
obliged to compensate.
1. Strictly abide by the regulatory documents of the CSRC and the
SZSE the Company’s Articles of Association etc. and not harm the
interests of the Company or other shareholders of the Company in
Commitm
their production and operating activities by taking advantage of their
ents made About
position as the controlling shareholder and actual controller; 2. Make
in reduct
sure that they or their other controlled subsidiaries branch offices
acquisitio ion
jointly-run or associated companies (the “Relevant Enterprises” for
n and Nove
Rising short) will try their best to avoid or reduce related-party transactions
document regula mber Long- Ongoi
Holding with the Company or the Company’s subsidiaries; 3. Strictly follow
s or tion of 4 term ng
s Group the market principle of justness fairness and equal value exchange
sharehold related 2021
for necessary and unavoidable related-party transactions between
ing -party
them and their Relevant Enterprises and the Company and withdraw
alteration transa
from voting when a related-party transaction with them or their
document ctions
Relevant Enterprises is being voted on at a general meeting or a
s
board meeting and execute the relevant approval procedure and
information disclosure duties pursuant to the applicable laws
regulations and regulatory documents.In order to ensure the independence of the Company in business
personnel asset organization and finance Electronics Group and
Hong Kong Rising Investment have made the following
commitments: 1. They will ensure the independence of the Company
Commitm in business: (1) They promise that the Company will have the assets
ents made personnel qualifications and capabilities for its operating activities to
Electron
in be conducted independently as well as the ability of independent
ics
acquisitio sustainable operation in the market. (2) They promise not to
Group
n About intervene in FSL’s business activities other than the execution of Dece
and
document indepe their rights as FSL’s shareholders. (3) They promise that they and mber Long- Ongoi
Hong
s or ndenc their related parties will not be engaged in business that is 4 term ng
Kong
sharehold e substantially in competition with FSL’s business. And (4) They 2015
Rising
ing promise that they and their related parties will try their best to reduce
Investm
alteration related-party transactions between them and FSL; for necessary and
ent
document unavoidable related-party transactions they promise to operate fairly
s following the market-oriented principle and at fair prices and
execute the transaction procedure and the duty of information
disclosure pursuant to the applicable laws regulations and regulatory
documents. 2. They will ensure the independence of FSL in
personnel: (1) They promise that FSL’s GM deputy GMs CFO
82Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Company Secretary of Board of Directors and other senior
management personnel will work only for and receive remuneration
from FSL not holding any positions in them or their other controlled
subsidiaries other than director and supervisor. (2) They promise
FSL’s absolute independence from their related parties in labor
human resource and salary management. And (3) They promise to
follow the legal procedure in their recommendation of directors
supervisors and senior management personnel to FSL and not to hire
or dismiss employees beyond FSL’s Board of Directors and General
Meeting. 3. They will ensure the independence and completeness of
FSL in asset: (1) They promise that FSL will have a production
system an auxiliary production system and supporting facilities for
its operation; legally have the ownership or use rights of the land
plants machines trademarks patents and non-patented technology in
relation to its production and operation; and have independent
systems for the procurement of raw materials and the sale of its
products. (2) They promise that FSL will have independent and
complete assets all under FSL’s control and independently owned
and operated by FSL. And (3) They promise that they and their other
controlled subsidiaries will not illegally occupy FSL’s funds and
assets in any way or use FSL’s assets to provide guarantees for the
debts of themselves or their other controlled subsidiaries with. 4.They will ensure the independence of FSL in organization: (1) They
promise that FSL has a sound corporate governance structure as a
joint-stock company with an independent and complete organization
structure. (2) They promise that the operational and management
organs within FSL will independently execute their functions
according to laws regulations and FSL’s Articles of Association. 5.They will ensure the independence of FSL in finance: (1) They
promise that FSL will have an independent financial department and
financial accounting system with normative independent financial
accounting rules. (2) They promise that FSL will have independent
bank accounts and not share bank accounts with its related parties.
(3) They promise that FSL’s financial personnel do not hold
concurrent positions in its related parties. (4) They promise that FSL
will independently pay its tax according to law. And (5) They
promise that FSL can make financial decisions independently and
that they will not illegally intervene in FSL’s use of its funds.To maintain the independence of the Company Rising Holdings
Group has made the following commitments: 1. It will ensure the
personnel independence of the Company. It promises to ensure
personnel independence with the Company and GM deputy GMs
Commitm CFO Company Secretary of Board of Directors and other senior
ents made management personnel of the Company will not hold positions other
in than directors and supervisors in the enterprises wholly owned
acquisitio controlled or actually controlled by it and its subsidiaries (hereinafter
n About referred to as “subsidiaries”) and will not receive salaries from it or Nove
Rising
document indepe its subsidiaries. It promises to ensure personnel independence with mber Long- Ongoi
Holding
s or ndenc the Company and GM deputy GMs CFO Secretary of the Board of 4 term ng
s Group
sharehold e Directors and other senior management personnel of the Company 2021
ing will not hold positions other than directors and supervisors in the
alteration enterprises wholly owned controlled or actually controlled by it and
document its subsidiaries (hereinafter referred to as “subsidiaries”) and will not
s receive salaries from it or its subsidiaries. 2. It will ensure the asset
independence of the Company. (1) It promises that the Company has
independent and complete assets. (2) It promises that it and its
subsidiaries will not illegally occupy the Company’s funds and assets
in any way. 3. It will ensure the financial independence of the
83Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Company: (1) It promises that the Company will have an independent
financial department and financial accounting system. (2) It promises
that the Company will have a standardized and independent financial
accounting system. (3) It promises that the Company will have
independent bank accounts and not share bank accounts with it. (4) It
promises that the Company’s financial personnel do not hold
concurrent positions in it or its subsidiaries. And (5) It promises that
the Company can make financial decisions independently and that
they will not illegally intervene in the Company’s use of its funds. 4.It will ensure the independence of the Company in organization: (1)
It promises that the Company can operate independently with an
independent and complete organization structure. (2) It promises that
the office and production and business premises of the Company are
separated from those of Rising Holdings Group. And (3) It promises
that the Board of Directors the Supervisory Committee and various
functional departments of the Company operate independently and
there is no subordinate relationship with the functional departments
of Rising Holdings Group. And 5 It will ensure the independence of
the Company in business: (1) It promises that the Company will have
independence in business. And (2) It promises that the Company will
have the assets personnel qualifications and capabilities for its
operating activities to be conducted independently as well as the
ability of independent sustainable operation in the market.
1. They shall conduct supervision and restraint on the production and
operating activities of themselves and their relevant enterprises so
that besides the enterprise above that is in horizontal competition
with NationStar Optoelectronics for now if the products or business
of them or their relevant enterprises become the same with or similar
Commitm
to those of NationStar Optoelectronics or its subsidiaries in the
ents made
future they shall take the following measures: (1) If NationStar
in
About Optoelectronics thinks necessary they and their relevant enterprises
acquisitio
avoida shall reduce and wholly transfer their relevant assets and business;
n
nce of and (2) If NationStar Optoelectronics thinks necessary it is given the Octob
document Long- Ongoi
FSL horizo priority to acquire first by proper means the relevant assets and er 7
s or term ng
ntal business of them and their relevant enterprises. 2. All the 2021
sharehold
compe commitments made by them to eliminate or avoid horizontal
ing
tition competition with FSL are also applicable to their directly or
alteration
indirectly controlled subsidiaries. They are obliged to urge and make
document
sure that other subsidiaries execute what’s prescribed in the relevant
s
document and faithfully honor all the relevant commitments. 3. If
they or their directly or indirectly controlled subsidiaries break the
aforesaid commitments and thus cause a loss for NationStar
Optoelectronics they shall compensate NationStar Optoelectronics
on a rational basis.Commitm 1. FSL and enterprises under its control (except NationStar
ents made About Optoelectronics and its subsidiaries) will reduce and standardize
in reduct related transactions with NationStar Optoelectronics and its
acquisitio ion subsidiaries. 2. In case of any inevitable or reasonably justified
n and related party transactions FSL and enterprises under its control
Octob
document regula (except NationStar Optoelectronics and its subsidiaries) will strictly Long- Ongoi
FSL er 7
s or tion of abide by the market principles conduct related party transactions term ng
2021
sharehold related with NationStar Optoelectronics fairly and reasonably based on the
ing -party general principles of equality mutual benefit equal value and
alteration transa compensation and perform legal procedures in accordance with laws
document ctions regulations normative documents and relevant regulations of
s NationStar Optoelectronics.Commitm FSL About To promote NationStar Optoelectronics’ implementation of Octob Long- Ongoi
84Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ents made mainta standardized management and the lawful and compliant exercise of er 7 term ng
in ining shareholder rights and corresponding obligations practical and 2021
acquisitio indepe effective measures will be taken to ensure the independence of
n ndenc NationStar Optoelectronics in terms of personnel assets finance
document e of organization and business. The undersigned commits to the
s or the following: (I) Ensure the independence of NationStar
sharehold listed Optoelectronics’ personnel: 1. Ensure that senior management
ing compa personnel of NationStar Optoelectronics including the General
alteration ny Manager (President) Deputy General Managers Chief Financial
document Officer Secretary of Board of Directors and others do not hold any
s position other than Director or Supervisor in Foshan Lighting or
other enterprises controlled by Foshan Lighting (excluding
NationStar Optoelectronics and its controlled enterprises the same
below) and do not receive salaries from Foshan Lighting or other
enterprises controlled by Foshan Lighting. 2. Ensure the
independence of labor personnel relations and the salary
management system between NationStar Optoelectronics and Foshan
Lighting or other enterprises controlled by Foshan Lighting. (II) It
will ensure the independence of NationStar Optoelectronics in asset
1. FSL promises that NationStar Optoelectronics will have
independent and complete operating assets related to operation; 2.FSL promises that the funds assets and other resources of NationStar
Optoelectronics will not be illegally occupied. (III) It will ensure the
independence of NationStar Optoelectronics in finance 1. It promises
that NationStar Optoelectronics will have an independent financial
department and independent financial accounting system and
financial accounting rules. 2. It promises that NationStar
Optoelectronics will have independent bank accounts and not share
bank accounts with FSL and other enterprises under its control; 3. It
promises that the financial personnel of NationStar Optoelectronics
do not work part-time and receive salaries in FSL and other
enterprises under its control; 4. It promises that NationStar
Optoelectronics will independently pay its tax according to law; And
(5) It promises that NationStar Optoelectronics can make financial
decisions independently and that it will not illegally intervene in
NationStar Optoelectronics’ use of its funds. (IV) It will ensure the
independence of NationStar Optoelectronics in organization It
promises that the listed company has a sound corporate governance
structure as a joint-stock company with an independent and complete
organization structure. (V) It will ensure the independence of
NationStar Optoelectronics in business It promise that NationStar
Optoelectronics remains independent in procurement production
sales and intellectual property rights and that NationStar
Optoelectronics will have the assets personnel qualifications and
capabilities for it operating activities to be conducted independently
as well as the ability of independent sustainable operation in the
market.About 1. FSL has provided relevant information and documents (including
the but not limited to original written materials duplicate materials or
truthfu oral testimony etc.) related to this trading to the intermediaries
Commitm
lness providing professional services of auditing valuation legal and
ents made
accura financial consultancy for this trading. FSL promises that the copies or Octob
during Long- Ongoi
FSL cy and photocopies of the documents and materials provided are consistent er 27
asset term ng
compl with the originals and that the signatures and seals of the documents 2021
restructuri
etenes and materials are authentic and the signatories of the documents
ng
s of have been legally authorized and effectively signed the documents;
the that the provided information and documents are authentic accurate
inform and complete and that there are no false records misleading
85Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ation statements or material omissions. FSL also promises to bear
provid individual and joint and several liability. 2. We promise that the
ed copies or photocopies of the documents and materials provided are
during consistent with the originals and that the signatures and seals of the
this documents and materials are authentic and the signatories of the
major documents have been legally authorized and effectively signed the
asset documents; that the provided information and documents are
restruc authentic accurate and complete and that there are no false records
turing misleading statements or material omissions. We also promise to
bear individual and joint and several liability. We promise that the
information provided is true accurate and complete. 2.
1. They promise not to transfer benefits to other units or individuals
free of charge or under unfair conditions and not to harm the
interests of the Company in any other ways; 2. They promise to
About
restrain position-related consumption behavior; 3. They promise not
measu
to use the Company’s assets to engage in investment and
res to
consumption activities unrelated to the performance of duties; 4.fill up
They promise that the future remuneration system formulated by the
return
Board of Directors or the Remuneration and Assessment Committee
s for
will be linked to the implementation of the Company’s measures to
Director risks
Commitm fill up returns; 5. If the Company formulates an equity incentive plan
and arising
ents made in the future they will actively promote the exercise conditions of the
senior from Octob
during future equity incentive plan to be linked with the implementation of Long- Ongoi
manage dilutin er 27
asset the Company’s measures to fill up returns; 6. From the date of term ng
ment g 2021
restructuri issuance of these commitments to the completion of this major asset
office of imme
ng restructuring of the Company if the CSRC makes other new
FSL diate
regulatory provisions on measures to fill up returns and the relevant
return
commitments and these commitments cannot meet these provisions
in
of the CSRC they promise to issue supplementary commitments in
major
accordance with the latest regulations of the CSRC at that time. 7.asset
We promise to earnestly fulfill the compensation measures
restruc
formulated by the Company and any commitments we make. If we
turing
violate any of these commitments and cause losses to the Company
or investors we are willing to bear corresponding legal
responsibilities to the Company or investors according to law.
1. We have provided relevant information and documents (including
but not limited to original written materials duplicate materials or
About
oral testimony etc.) related to this trading to the intermediaries
the
providing professional services of auditing assessment legal and
truthfu
financial consultancy for this trading. We promise that the copies or
lness
photocopies of the documents and materials provided are consistent
accura
with the originals and that the signatures and seals of the documents
cy and
and materials are authentic and the signatories of the documents
compl
Director have been legally authorized and effectively signed the documents;
Commitm etenes
and the provided information and documents are authentic accurate and
ents made s of
senior complete and there are no false records misleading statements or Octob
during the Long- Ongoi
manage material omissions. We also promise to bear individual and joint and er 27
asset inform term ng
ment several liability. We promise that the information provided is true 2021
restructuri ation
office of accurate and complete. 2. We promise that the copies or photocopies
ng provid
FSL of the documents and materials provided are consistent with the
ed
originals and that the signatures and seals of the documents and
during
materials are authentic and the signatories of the documents have
this
been legally authorized and effectively signed the documents; that
major
the provided information and documents are authentic accurate and
asset
complete and that there are no false records misleading statements or
restruc
material omissions. We also promise to bear individual and joint
turing
and several liability. We promise that the information provided is
true accurate and complete. 3. Where the information provided or
86Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
disclosed by us in this trading is suspected of false records
misleading statements or material omissions and we are filed for
investigation by the judicial organ or by the CSRC the shares with
interests in the listed company will not be transferred until the
investigation conclusion is formed.Rising 1. They promise not to interfere in the operation and management
Holding activities of the listed company beyond their authority and not to
s Group encroach on the interests of the listed company. 2. From the date of
Rising issuance of these commitments to the completion of this trading of
Capital the listed company if the CSRC makes new regulatory requirements
About
Electron on measures to fill up returns and commitments of relevant
effecti
ics personnel and the above commitments cannot meet these new
ve
Commitm Group regulatory requirements of the CSRC they promise to issue
perfor
ents made Hongko supplementary commitments according to the latest regulations of the
mance Octob
during ng Wah CSRC at that time. 3. They promise to earnestly fulfill the measures Long- Ongoi
of er 27
asset Shing to fill up returns formulated by the listed company and any term ng
measu 2021
restructuri Hong commitments made by them. If they violate these commitments and
res to
ng Kong causes losses to the listed company or investors they are willing to
fill up
Rising bear the compensation responsibility for the listed company or
return
Investm investors according to law. As one of the subjects responsible for the
s
ent and measures to fill up returns if they violate the above commitments or
Shenzhe refuse to fulfill the above commitments they agree that the securities
n Rising regulatory agencies such as the CSRC and the SZSE will punish
Investm them or take relevant regulatory measures in accordance with the
ent relevant regulations and rules they formulated or issued.
1. They shall conduct supervision and restraint on the production and
operating activities of themselves and their relevant enterprises so
that besides the enterprise above that is in horizontal competition
with FSL for now if the products or business of them or their
relevant enterprises become the same with or similar to those of FSL
Rising or its subsidiaries in the future they shall take the following
Holding About measures: (1) If FSL thinks necessary they and their relevant
Commitm
s Group avoida enterprises shall reduce and wholly transfer their relevant assets and
ents made
Rising nce of business; and (2) If FSL thinks necessary it is given the priority to Octob
during Long- Ongoi
Capital horizo acquire first by proper means the relevant assets and business of er 27
asset term ng
and ntal them and their relevant enterprises. 2. All the commitments made by 2021
restructuri
Hongko compe them to eliminate or avoid horizontal competition with the Company
ng
ng Wah tition are also applicable to their directly or indirectly controlled
Shing subsidiaries. They are obliged to urge and make sure that other
subsidiaries execute what’s prescribed in the relevant document and
faithfully honor all the relevant commitments. 3. If they or their
directly or indirectly controlled subsidiaries break the aforesaid
commitments and thus cause a loss for FSL they shall compensate
FSL on a rational basis.They have made a commitment that during their direct or indirect
holding of FSL’s shares they shall 1. Strictly abide by the regulatory
About documents of the CSRC and the SZSE FSL’s Articles of
Rising
regula Association etc. and not harm the interests of the Company or other
Holding
Commitm tion shareholders of FSL in their production and operating activities by
s Group
ents made and taking advantage of their position as the controlling shareholder and
Rising Octob
during reduct actual controller; 2. Make sure that they or their other controlled Long- Ongoi
Capital er 27
asset ion of subsidiaries branch offices jointly-run or associated companies (the term ng
and 2021
restructuri related “Relevant Enterprises” for short) will try their best to avoid or reduce
Hongko
ng -party related-party transactions with FSL or FSL’s subsidiaries; 3. Strictly
ng Wah
transa follow the market principle of justness fairness and equal value
Shing
ctions exchange for necessary and unavoidable related-party transactions
between them and their Relevant Enterprises and the Company and
withdraw from voting when a related-party transaction with them or
87Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
their Relevant Enterprises is being voted on at a general meeting or a
board meeting and execute the relevant approval procedure and
information disclosure duties pursuant to the applicable laws
regulations and regulatory documents. Where the aforesaid
commitments are broken and a loss is thus caused for FSL its
subsidiaries or FSL’s other shareholders they shall be obliged to
compensate.About
compe
nsatio
n for
possib
Rising
le If NationStar Optoelectronics is subject to administrative penalties
Holding
Commitm violati such as accountability and fines by relevant competent departments
s Group
ents made ons of after the completion of this trading due to the illegal acts of
Electron Octob
during laws NationStar Optoelectronics before the completion of this acquisition Long- Ongoi
ics er 27
asset and they promise to fully bear the losses of NationStar Optoelectronics or term ng
Group 2021
restructuri regula FSL as well as the expenses and fees under punishment or recourse
and
ng tions to ensure that NationStar Optoelectronics or FSL will not suffer any
Rising
by economic losses.Capital
Nation
Star
Optoel
ectron
ics
1. We promise that the information provided is true accurate and
complete and there are no false records misleading statements or
material omissions. 2. We have provided relevant information and
documents (including but not limited to original written materials
duplicate materials or oral testimony etc.) related to this trading to
About
the intermediaries. They promise that the copies or photocopies of
the
the documents and materials provided are consistent with the
truthfu
originals and that the signatures and seals of the documents and
lness
materials are authentic and the signatories of the documents have
accura
been legally authorized and effectively signed the documents; that
cy and
Rising there are no false records misleading statements or material
compl
Holding omissions. 3. We promise that the explanations and confirmations
Commitm etenes
s Group issued by them are true accurate and complete and there are no false
ents made s of
Electron records misleading statements or material omissions. 4. During this Octob
during the Long- Ongoi
ics trading we will disclose the information about this trading in a er 27
asset inform term ng
Group timely manner in accordance with relevant laws and regulations the 2021
restructuri ation
and CSRC and the SZSE and ensure the authenticity accuracy and
ng provid
Rising completeness of such information. 5. We shall bear legal
ed
Capital responsibility for the authenticity accuracy and completeness of the
during
information documents materials explanations and confirmations
this
provided. In case of any violation or losses caused to the listed
major
company investors parties to the trading and intermediaries
asset
participating in this trading they will be liable for compensation
restruc
according to law. 6. Where the information provided or disclosed by
turing
us in this trading is suspected of false records misleading statements
or material omissions and we are filed for investigation by the
judicial organ or by the CSRC the shares with interests in the listed
company will not be transferred until the investigation conclusion is
formed.About Electronics Group promises that the 100% equity of Sigma it held is
Commitm Electron Octobthe clear in ownership and is not subject to any dispute or potential Long- Ongoi
ents made ics er 27clarity dispute and there is no situation affecting its legal existence; the term ng
during Group 2021of the above shares are not subject to any other pledges guarantees or third-
88Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
asset underl party interests or restrictions and there is no pending or potential
restructuri ying litigation arbitration and any other administrative or judicial
ng assets procedure that may lead to the seizure freezing expropriation or
of this restriction of transfer of the above-mentioned equity by the relevant
major judicial or administrative organs. There is no entrusted shareholding
asset or trust shareholding restriction or prohibition of transfer of the
restruc above-mentioned equity controlled by Electronics Group.turing
About Contents of Commitment: Rising Holdings Group and Rising Capital
the promise that the shares of NationStar Optoelectronics it held is clear
clarity in ownership and is not subject to any dispute or potential dispute
Commitm Rising of the and there is no situation affecting its legal existence; the above shares
ents made Holding underl are not subject to any other pledges guarantees or third-party
Octob
during s Group ying interests or restrictions and there is no pending or potential litigation Long- Ongoi
er 27
asset and assets arbitration and any other administrative or judicial procedure that term ng
2021
restructuri Rising of this may lead to the seizure freezing expropriation or restriction of
ng Capital major transfer of the above-mentioned equity by the relevant judicial or
asset administrative organs. There is no entrusted shareholding or trust
restruc shareholding restriction or prohibition of transfer of the above-
turing mentioned equity controlled by Rising Group and Rising Capital.NationStar Optoelectronics has provided the necessary true
About accurate complete and effective documents materials or oral
statem statements and explanations for this trading at this stage and there is
ent no concealment falsehood or material omission. The copies or
and photocopies of the documents provided are consistent with the
comm original materials or originals. The signatures and seals on the
itment documents and materials provided are authentic and NationStar
Commitm of Optoelectronics has fulfilled the legal procedures required for such
ents made NationS truthfu signatures and seals and obtained legal authorization. All the facts
Octob
during tar lness stated and explained are consistent with the facts that happened. As Long- Ongoi
er 27
asset Optoele accura this transaction proceeds the Company shall provide needed term ng
2021
restructuri ctronics cy and information and documents as required by applicable laws
ng compl regulations rules and requirements of CSRC and the stock exchange
etenes and continue to guarantee the truthfulness accuracy completeness
s of and validity of the information and documents provided. The
inform Company promises and guarantees the truthfulness accuracy and
ation completeness of the information provided or disclosed with respect to
provid this transaction. It guarantees that there are no misrepresentations
ed misleading statements or material omissions. And it shall be
individually and jointly liable for that.Among 79753050 shares of tradable shares with unlimited selling
conditions of NationStar Optoelectronics held by Sigma 39876 500
About
shares were pledged for Guangdong Electronics Information Industry
the
Group Ltd. As of the date of issuance of this commitment the pledge
clarity
of the above shares has been released. However theMaximum
of the
Pledge Contract for Stocks of Listed Companies (No.: XXYZZ (BY)
owner
Commitm No. 201906280001-2) signed by Sigma and Guangzhou Branch of
ship
ents made Industrial Bank Co. Ltd. has not been dissolved. There is no
of the Octob
during entrusted shareholding or trust shareholding restriction or Long- Ongoi
Sigma underl er 27
asset prohibition of transfer of the above-mentioned equity controlled by term ng
ying 2021
restructuri Rising Group. Guangdong Electronics Information Industry Group
assets
ng Ltd. has promised that it will not add any new loans to Guangzhou
of this
Branch of Industrial Bank Co. Ltd. as a borrower during the validity
major
period of the guarantee and that it will not substantially assume any
asset
guarantee responsibility due to theMaximum Pledge Contract for
restruc
Stocks of Listed Companies. Except as aforesaid the asset ownership
turing
of Sigma is clear there is no dispute or potential dispute and there is
no situation affecting the legal existence. There is no entrusted
89Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
shareholding or trust shareholding restriction or prohibition of
transfer of the above-mentioned equity controlled by Rising Group
and Rising Capital.About
Commitm
no 1. Sigma promises that all its registered capital has been paid in. 2.ents made
owner Sigma promises that all existing shareholders contribute their own Octob
during Long- Ongoi
Sigma ship funds to hold shares there is no situation such as holding shares on er 27
asset term ng
disput behalf of them and there is no dispute or potential dispute between 2021
restructuri
e in shareholders over their shares.ng
equity
1. FSL has provided relevant information and documents (including
but not limited to original written materials duplicate materials or
About oral testimony etc.) related to this trading to the intermediaries
statem providing professional services of auditing valuation legal and
ent financial consultancy for this trading. FSL promises that the copies or
and photocopies of the documents and materials provided are consistent
comm with the originals and that the signatures and seals of the documents
itment and materials are authentic and the signatories of the documents
Commitm of have been legally authorized and effectively signed the documents;
ents made truthfu that the provided information and documents are authentic accurate
Octob
during lness and complete and that there are no false records misleading Long- Ongoi
Sigma er 27
asset accura statements or material omissions. FSL also promises to bear term ng
2021
restructuri cy and individual and joint and several liability. 2. We promise that the
ng compl copies or photocopies of the documents and materials provided are
etenes consistent with the originals and that the signatures and seals of the
s of documents and materials are authentic and the signatories of the
inform documents have been legally authorized and effectively signed the
ation documents; that the provided information and documents are
provid authentic accurate and complete and that there are no false records
ed misleading statements or material omissions. We also promise to
bear individual and joint and several liability. We promise that the
information provided is true accurate and complete. 2.According to the laws and regulations issued by the State Council
Director such as the Notice of the State Council on Resolutely Curbing the
senior Soaring of Housing Prices in Some Cities (GF [2010] No. 10) the
manage Notice of the General Office of the State Council on Further
ment Improving Regulation of the Real Estate Market (GBF [2013] No.office of About 17) and the Adjustment of Regulatory Policies on Listed Companies’
FSL matter Re-financing Merger and Acquisition and Reorganization Involving
Rising s on Real Estate Business issued by the CSRC on the relevant
Commitm Holding specia requirements for refinancing of listed companies involved in real
ents made s Group l self- estate business the controlling shareholders and all directors and
March
in time of Electron inspec Senior Management of Foshan Electrical and Lighting Co. Ltd. Long- Ongoi
14
IPO or ics tion of (hereinafter referred to as the “Company”) have made the following term ng
2023
refinancin Group the commitments: The Self-inspection Report on the Company’s
g Hongko real Involvement in Real Estate Business has truthfully disclosed the self-
ng Wah estate inspection of the real estate development projects of the Company
Shing busine and its subsidiaries between 1 January 2020 and 31 December 2022.Hong ss If the Company is identified with illegalities or violations not
Kong disclosed as required by the self-inspection such as idle land land
Rising speculation holding real estate projects from selling and house price
Investm rigging thus causing losses to itself and the investors we will be
ent liable for compensation in line with relevant laws regulations and
requirements of securities regulatory authorities.Director About According to the Opinions of the General Office of the State Council
Commitm Marchand the on Further Strengthening the Protection of the Lawful Rights and Long- Ongoi
ents made 14senior measu Interests of Small and Medium-sized Investors in the Capital Market term ng
in time of 2023manage res to (GBF [2013] No. 110) the Opinions of the State Council on Further
90Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
IPO or ment fill up Promoting the Sound Development of Capital Markets (GF [2014]
refinancin office of imme No. 17) the Guiding Opinions on Matters concerning the Dilution of
g FSL diate Immediate Return in Initial Public Offering Refinancing and
return Material Asset Restructuring (ZJHGG [2015] No. 31) and other
s relevant regulations in order to protect the interests of small and
dilute medium-sized investors the Directors and Senior Management of the
d by Company have made the following commitments that the measures
the to fill up immediate returns diluted by the issuance of A-shares to
issuan specific objects can be effectively fulfilled: 1. We promise not to
ce of transfer benefits to other units or individuals for free or under unfair
A- conditions and not to compromise the interests of the Company in
shares other ways. 2. We promise to restrain position-related consumption
to behavior. 3. We promise not to use the Company’s assets to engage
specifi in investment and consumption activities unrelated to the
c performance of duties. 4. We promise that the remuneration system
object formulated by the Board of Directors or the Remuneration and
s in Assessment Committee is linked to the implementation of the
2023 Company’s measures to fill up returns. 5. If the Company
implements an equity incentive plan in the future the exercise
conditions of the future equity incentive plan will be linked with the
implementation of the Company’s measures to fill up returns. 6.From the date of issuance of these commitments to the completion of
the issuance of shares to specific objects if the CSRC makes other
new regulatory provisions on measures to fill up returns and the
relevant commitments and these commitments cannot meet these
provisions of the CSRC we promise to issue supplementary
commitments in accordance with the latest regulations of the CSRC
at that time. As one of the subjects responsible for the measures to fill
up returns if we violate the above commitments or refuse to fulfil the
above commitments we agree that the securities regulatory agencies
such as the CSRC and the SZSE will punish us or take relevant
regulatory measures in accordance with the relevant regulations and
rules they formulated or issued.According to the relevant provisions of the CSRC in order to ensure
About
that the measures to fill up immediate returns diluted by the issuance
the
of A-shares to specific objects can be practically fulfilled the
effecti
Company’s controlling shareholders Rising Holdings Group
ve
Electronics Group Hong Kong Rising Investment Hongkong Wah
fulfil
Shing and the de facto controller Rising Holdings Group
Rising ment
respectively made the following commitments: 1. We promise not to
Holding of
interfere in the operation and management activities of the listed
s Group measu
company beyond our authority and not to encroach on the interests of
Electron res
the listed company. 2. From the date of issuance of these
Commitm ics taken
commitments to the completion of the issuance of shares to specific
ents made Group by
objects if the CSRC makes new regulatory requirements on March
in time of Hongko contro Long- Ongoi
measures to fill up returns and commitments of relevant personnel 14
IPO or ng Wah lling term ng
and the above commitments cannot meet these new regulatory 2023
refinancin Shing shareh
requirements of the CSRC we promise to issue supplementary
g Hong olders
commitments according to the latest regulations of the CSRC at that
Kong and de
time. 3. From the date of issuance of these commitments to the
Rising facto
completion of the issuance of shares to specific objects if the CSRC
Investm contro
makes new regulatory requirements on measures to fill up returns and
ent ller to
commitments of relevant personnel and the above commitments
fill up
cannot meet these new regulatory requirements of the CSRC we
imme
promise to issue supplementary commitments according to the latest
diate
regulations of the CSRC at that time. As one of the subjects
return
responsible for the measures to fill up returns if we violate the above
s
commitments or refuse to fulfil the above commitments we agree
91Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
that the securities regulatory agencies such as the CSRC and the
SZSE will punish us or take relevant regulatory measures in
accordance with the relevant regulations and rules they formulated or
issued.Other
commitm
ents made About
May
to cash FSL’s profit distributed in cash shall not be less than 30% of the Long- Ongoi
FSL 27
minority divide distributable profit realized in the year. term ng
2009
sharehold nds
ers of the
Company
Notifi
cation
Withi
Letter
n six
Regar Electronics Group commits to completing the current share
month
ding acquisition plan within the implementation period. During the
Nove s Havin
Other Electron the acquisition period and the statutory period the Electronics Group
mber startin g
commitm ics Increa will not reduce its holdings in Foshan Lighting shares and will
18 g from expire
ents Group se in strictly comply with relevant regulations. It will not engage in insider
2024 Nove d
Fosha trading trading shares during sensitive periods or short-term trading
mber
n activities.
20
Lighti
2024
ng
Shares
About
the
effecti
ve
imple
mentat 1. We promise not to interfere in the operation and management
ion of activities of the listed company beyond our authority and not to
measu encroach on the interests of the listed company.res to 2. We promise to earnestly fulfil the measures to fill up returns
addres formulated by the listed company and any commitments made by us.s the If we violate these commitments and cause losses to the listed
dilutio company or investors we are willing to bear the compensation
n of responsibility for the listed company or investors according to the
imme law.diate 3. From the date of issuance of these commitments to the completion
Other July
return of the issuance of shares to specific objects if the CSRC makes new Long- Ongoi
commitm FSL 10
s regulatory requirements on measures to fill up returns and term ng
ents 2025
resulti commitments of relevant personnel and the above commitments
ng cannot meet these new regulatory requirements of the CSRC we
from promise to issue supplementary commitments according to the latest
Nation regulations of the CSRC at that time.Star As one of the subjects responsible for the measures to fill up returns
Optoel if we violate the above commitments or refuse to fulfil the above
ectron commitments we agree that the securities regulatory agencies such
ics’ as the CSRC and the SZSE will punish us or take relevant regulatory
2025 measures in accordance with the relevant regulations and rules they
issuan formulated or issued.ce of
A
shares
to
specifi
92Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
c
object
s
I. Ensure the independence of NationStar Optoelectronics’ personnel
1. We ensure that the labor relations personnel relations and
compensation management of NationStar Optoelectronics and its
subsidiaries (the same below collectively referred to as "NationStar
Optoelectronics") are completely independent from those of the
Company and other companies businesses or other economic
organizations controlled by the Company.
2. We ensure that the senior management of NationStar
Optoelectronics serve exclusively in NationStar Optoelectronics and
receive remuneration from NationStar Optoelectronics and do not
hold any positions other than directors or supervisors in the
Company or other companies businesses or other economic
Letter organizations controlled by the Company.of 3. We ensure that we do not interfere with the exercise of authority
comm by the shareholders’ meeting and the board of directors of NationStar
itment Optoelectronics in making decisions on personnel appointments and
on removals.ensuri II. Ensure the institutional independence of NationStar
ng the Optoelectronics
indepe 1. We ensure that NationStar Optoelectronics establishes a sound
ndenc corporate governance structure as a legal person and has independent
e of and complete organizational institutions.Nation 2. We ensure that the shareholders’ meeting board of directors and
Star board of supervisors of NationStar Optoelectronics independently
Optoel exercise their powers in accordance with laws regulations and the
ectron articles of association of NationStar Optoelectronics.Other ics 3. We ensure that NationStar Optoelectronics will have the right to July
Long- Ongoi
commitm FSL issued set up and adjust functional departments independently and will not 10
term ng
ents in be subject to rule-violating intervention from the Company or other 2025
conne companies businesses or economic organizations controlled by the
ction Company. We promise that neither the superior-subordinate
with relationship nor mixed ownership and co-office situation exist
its between NationStar Optoelectronics and the Company or other
2025 companies businesses or economic organizations controlled by the
issuan Company.ce of III. Ensure the independence and integrity of NationStar
A Optoelectronics’ assets
shares 1. We ensure that NationStar Optoelectronics has independent and
to complete assets related to production and operations and that there is
specifi no shared use with the Company or other companies businesses or
c other economic organizations controlled by the Company.object 2. We ensure that NationStar Optoelectronics’ office and business
s premises are independent from those of the Company and other
companies businesses and economic organizations controlled by the
Company.
3. We ensure that except for regular business dealings neither
NationStar Optoelectronics’ funds nor assets will be occupied by the
Company or other companies businesses or economic organizations
controlled by the Company.IV. Ensure the business independence of NationStar Optoelectronics
1. We ensure that NationStar Optoelectronics possesses the relevant
qualifications to independently carry out business activities has
independent autonomous and sustainable market-oriented operating
capabilities and is not dependent on the Company or other
companies businesses or other economic organizations controlled
93Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
by the Company for production and operating activities.
2. We ensure that the Company and other companies businesses and
economic organizations controlled by the Company will not engage
in business in competition with NationStar Optoelectronics or other
companies businesses or economic organizations under its control.
3. We ensure that the Company and other companies businesses or
other economic organizations controlled by the Company reduce
related-party transactions with NationStar Optoelectronics and other
companies businesses or other economic organizations under its
control; for related-party transactions that are truly necessary and
unavoidable ensure that they are conducted fairly in accordance with
market principles and fair prices and that the relevant approval
procedures and information disclosure obligations are performed in
accordance with the provisions of relevant laws regulations and
normative documents.V. Ensure the financial independence of NationStar Optoelectronics
1. We ensure that NationStar Optoelectronics establishes an
independent finance department and an independent financial
accounting system and has standardized and independent financial
and accounting systems.
2. We ensure that NationStar Optoelectronics will have independent
bank accounts and will not share bank accounts with the Company or
other companies businesses or economic organizations controlled
by the Company.
3. We ensure that the financial personnel of NationStar
Optoelectronics do not hold concurrent positions or receive
remuneration in the Company or other companies businesses or
other economic organizations controlled by the Company.
4. We ensure that NationStar Optoelectronics is able to make
financial decisions independently and that the Company does not
interfere with the use of funds by NationStar Optoelectronics.
5. We ensure that NationStar Optoelectronics independently applies
for tax registration certificates and pays taxes independently in
accordance with the law.If we violate the foregoing commitments we shall be liable for the
losses of NationStar Optoelectronics arising therefrom.Letter 1. The promisor will supervise and restrain its own and relevant
of enterprises’ production and operating activities. If in the future the
comm products or business of the promisor and relevant enterprises become
itment identical or similar to those of NationStar Optoelectronics and its
on subsidiaries the promisor promises to adopt measures including but
avoidi not limited to the following to resolve the situation:
ng (1) Where NationStar Optoelectronics deems it necessary the
horizo promisor and relevant enterprises will reduce their holdings until
ntal fully transferring the relevant assets and business held;
compe (2) Where NationStar Optoelectronics deems it necessary the
Other July
tition promisor may through appropriate means give priority to acquiring Long- Ongoi
commitm FSL 10
issued the relevant assets and business held by NationStar Optoelectronics term ng
ents 2025
in and its subsidiaries.conne 2. All the commitments made by the promisor to eliminate or avoid
ction horizontal competition with the Company are also applicable to the
with promisor’s directly or indirectly controlled subsidiaries. The
Nation promisor is obliged to urge and make sure that other subsidiaries
Star execute what’s prescribed in the relevant document and faithfully
Optoel honor all the relevant commitments.ectron 3. If the promisor or its directly or indirectly controlled subsidiaries
ics’ break the aforesaid commitments and thus cause a loss for NationStar
2025 Optoelectronics the promisor shall compensate NationStar
94Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
issuan Optoelectronics on a rational basis.ce of
A
shares
to
specifi
c
object
s
Letter
of
1. The promisor strictly abides by the regulatory documents of the
comm
CSRC and the SZSE NationStar Optoelectronics’ articles of
itment
association etc. In future production and business operations the
about
promisor will not use its position as controlling shareholder to
the
engage in conduct that harms the interests of NationStar
reduct
Optoelectronics and other shareholders.ion
2. The promisor and its other controlled subsidiaries branches joint
and
ventures or associates (hereinafter referred to as the "relevant
regula
enterprises") will endeavor to avoid and reduce related-party
tion of
transactions with NationStar Optoelectronics and its subsidiaries.related
3. For related-party transactions between the promisor and relevant
-party
enterprises and NationStar Optoelectronics that are genuinely
transa
necessary and unavoidable such transactions will be conducted in
ctions
strict accordance with the market principles of fairness impartiality
issued
and equivalent value for consideration. The promisor strictly follows
Other in July
the market principle of justness fairness and equal value exchange Long- Ongoi
commitm FSL conne 10
for necessary and unavoidable related-party transactions between term ng
ents ction 2025
them and their Relevant Enterprises and the Company and withdraw
with
from voting when a related-party transaction with them or their
Nation
Relevant Enterprises is being voted on at a general meeting or a
Star
board meeting and execute the relevant approval procedure and
Optoel
information disclosure duties pursuant to the applicable laws
ectron
regulations and regulatory documents. The promisor undertakes not
ics’
to use related-party transactions to transfer or convey benefits and
2025
not to engage in conduct that harms the lawful rights and interests of
issuan
the Company and other shareholders by improperly exercising
ce of
shareholder rights or through other improper means.A-
4. If the promisor violates the above commitments and causes
shares
economic losses to NationStar Optoelectronics and other
to
shareholders the promisor shall bear corresponding legal liability for
specifi
all losses incurred by NationStar Optoelectronics and other
c
shareholders as a result.object
s
Whether
the
commitm
ents were Yes
timely
performe
d
Specific
reasons
for failing N/A
to fulfill
commitm
ents on
95Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
time and
plans for
next step
2. Where there had been an earnings forecast for an asset or project and the Reporting Period was still
within the forecast period explain why the forecast has been reached for the Reporting Period.□ Applicable□ Not applicable
3. Performance commitments involving the Company
□ Applicable□ Not applicable
II Occupation of the Company’s Capital by the Controlling Shareholder or Its Related
Parties for Non-Operating Purposes
□ Applicable□ Not applicable
No such cases during the Reporting Period.III Irregularities in the Provision of Guarantees
□ Applicable□ Not applicable
No such cases during the Reporting Period.IV Explanations Given by the Board of Directors Regarding the Independent Auditor’s
“Modified Opinion” on the Financial Statements of the Latest Period
□ Applicable□ Not applicable
V Explanations Given by the Board of Directors and the Independent Directors (if any)
Regarding the Independent Auditor’s “Modified Opinion” on the Financial Statements of
the Reporting Period
□ Applicable□ Not applicable
VI YoY Changes to Accounting Policies Estimates and Correction of Material Accounting
Errors
□Applicable □ Not applicable
Please refer to Part VIII Financial Statements-V Important Accounting Policies and Estimations-43. Changes in
Main Accounting Policies and Estimates for details.VII YoY Changes to the Scope of the Consolidated Financial Statements
□ Applicable □ Not applicable
Compared with the prior period the scope of the consolidated financial statements for the current period
96Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
saw the addition of one subsidiary (Guangdong Airtrust Aviation Equipment Co. Ltd.) and two sub-subsidiaries
(Airstar (Tianjin) Lighting Co. Ltd. and FSL (Thailand) Lighting Technology Co. Ltd.) and the exclusion of
three sub-subsidiaries (Shanghai Lelaite Electrical Equipment Co. Ltd. Nanyang Baoli Vanadium Industry Co.Ltd. and Airstar (Tianjin) Lighting Co. Ltd.). For details see Part VIII Financial Statements-IX Change of
Consolidation Scope.VIII Engagement and Disengagement of Independent Auditor
Current independent auditor:
Name of the domestic independent auditor WUYIGE Certified Public Accountants LLP
The Company’s payment to the domestic independent auditor
169.9
(RMB’0000)
How many consecutive years the domestic independent auditor
4
has provided audit service for the Company
Names of the certified public accountants from the domestic
He Xiaojuan Wang Xiaohan
independent auditor writing signatures on the auditor’s report
How many consecutive years the certified public accountants
from the domestic independent auditor have provided audit He Xiaojuan (4 years) Wang Xiaohan (2 years)
service for the Company
Indicate whether the independent auditor was changed for the Reporting Period.□Yes□ No
Independent auditor financial advisor or sponsor engaged for the audit of internal controls:
□ Applicable □ Not applicable
In the Reporting Period the Company engaged WUYIGE Certified Public Accountants LLP as its internal
control auditor with the total audit fees of RMB250000.IX Possibility of Delisting after Disclosure of this Report
□ Applicable□ Not applicable
X Insolvency and Reorganization
□ Applicable□ Not applicable
No such cases during the Reporting Period.XI Major Legal Matters
□ Applicable □ Not applicable
Basic Whether Lawsuit Execution of
Amount Lawsuit
information there are (arbitration) lawsuit Date of Disclosure
involved (arbitration)
on lawsuit accrued results and (arbitration) disclosure index
(RMB’0000) progress
(arbitration) liabilities influences judgment
177 other 49789.53 No 57 cases are No Of these 42 N/A N/A
97Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
litigation currently significant cases are
matters that under trial; impact on the currently
did not meet and 120 Company under
litigation cases have enforcement.standards been
concluded.XII Punishments and Rectifications
□ Applicable□ Not applicable
No such cases during the Reporting Period.XIII Credit Quality of the Company as well as Its Controlling Shareholder and Actual
Controller
□ Applicable □ Not applicable
During the Reporting Period the Company and its controlling shareholder and actual controller were not
involved in any unsatisfied court judgments large-amount overdue liabilities or the like.XIV Major Related-Party Transactions
1. Continuing Related-Party Transactions
□ Applicable □ Not applicable
Obtai
nable
As %
Appro marke
of
Relati Trans ved Over t price
Total total
onshi Type Specif Pricin action transa the Metho for Index to
value value Disclo
Related p with of ic g price ction appro d of same- disclosed
(RMB of all sure
party the transa transa princi (RMB line ved settle type informati
’0000 same- date
Comp ction ction ple ’0000 (RMB line or ment transa on
) type
any ) ’0000 not ctions
transa
) (RMB
ctions
’0000
)
Purch
asing
produ
Actua Bank
Guangd cts/rec
l Recei transf
ong eiving
contro ving er or
Rising labor Marke 643.2 643.2 643.2
ller of labor 0.10% bank
Holding servic t price
the servic 9 9 accept 9
s Group e Febru
Comp e www.cni
Co. Ltd. from 5850.ance ary
any No bill nfo.com.relate 00 27 cn
d 2025
party
Guangd Under Purch Bank
Purch
ong same asing transf
ase of Marke 239.1 239.1 239.1
Xintao actual produ 0.04% er or
materi t price
Microel contro cts/rec 1 1 bank 1
als
ectronic ller eiving accept
98Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
s Co. labor ance
Ltd. servic bill
e
from
relate
d
party
Purch
asing
produ
Shenzhe Bank
cts/rec
n Under transf
eiving Purch
Yuedin same er or
labor ase of Marke 102.9 102.9 102.9
Precise actual 0.02% bank
servic materi t price
Machine contro 2 2 accept 2
e als
ry Co. ller ance
from
Ltd. bill
relate
d
party
Purch
asing
Guangd
produ
ong Bank
cts/rec
Electron Under transf
eiving Purch
ics same er or
labor ase of Marke
Informat actual 66.18 66.18 0.01% bank 66.18
servic materi t price
ion contro accept
e als
Industry ller ance
from
Group bill
relate
Ltd.d
party
Purch
asing
Guangd
produ
ong Bank
cts/rec
Electron Under Recei transf
eiving
ics same ving er or
labor Marke
Informat actual labor 33.41 33.41 0.01% bank 33.41
servic t price
ion contro servic accept
e
Industry ller e ance
from
Group bill
relate
Ltd.d
party
Purch
asing
produ
Bank
cts/rec
Primatro Under Recei transf
eiving
nix same ving er or
labor Marke
Nanho actual labor 21.67 21.67 0.00% bank 21.67
servic t price
Technol contro servic accept
e
ogy Ltd. ller e ance
from
bill
relate
d
party
Zhuhai Under Purch Recei Bank
Marke
Dongjia same asing ving 15.45 15.45 0.00% transf 15.45
t price
ng actual produ labor er or
99Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Environ contro cts/rec servic bank
mental ller eiving e accept
Protecti labor ance
on servic bill
Technol e
ogy Co. from
Ltd. relate
d
party
Purch
asing
produ
Guangd Bank
cts/rec
ong Under Recei transf
eiving
Rising same ving er or
labor Marke
Hydroge actual labor 15.33 15.33 0.00% bank 15.33
servic t price
n contro servic accept
e
Energy ller e ance
from
Co. Ltd. bill
relate
d
party
Purch
asing
produ
Shenzhe Bank
cts/rec
n Under Recei transf
eiving
Yuedin same ving er or
labor Marke
Precise actual labor 9.15 9.15 0.00% bank 9.15
servic t price
Machine contro servic accept
e
ry Co. ller e ance
from
Ltd. bill
relate
d
party
Purch
asing
produ
Bank
Guangd cts/rec
Under Recei transf
ong eiving
same ving er or
Fenghua labor Marke
actual labor 5.74 5.74 0.00% bank 5.74
New servic t price
contro servic accept
Energy e
ller e ance
Co. Ltd. from
bill
relate
d
party
Purch
Shenzhe
asing
n
produ
Longgan Bank
cts/rec
g Under Recei transf
eiving
Dongjia same ving er or
labor Marke
ng actual labor 4.42 4.42 0.00% bank 4.42
servic t price
Industria contro servic accept
e
l Waste ller e ance
from
Treatme bill
relate
nt Co.d
Ltd.party
100Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Purch
asing
produ
Bank
cts/rec
Primatro Under Recei transf
eiving
nix same ving er or
labor Marke
(Nanho) actual labor 3.56 3.56 0.00% bank 3.56
servic t price
Electron contro servic accept
e
ics Ltd. ller e ance
from
bill
relate
d
party
Zhuhai
Doumen
District Purch
Yongxin asing
gsheng produ
Bank
Environ cts/rec
Under Recei transf
mental eiving
same ving er or
Industry labor Marke
actual labor 0.79 0.79 0.00% bank 0.79
Waste servic t price
contro servic accept
Recover e
ller e ance
y and from
bill
Compre relate
hensive d
Treatme party
nt Co.Ltd.Purch
asing
produ
Foshan Bank
cts/rec
Fulong Under Recei transf
eiving
Environ same ving er or
labor Marke
mental actual labor 0.30 0.30 0.00% bank 0.30
servic t price
Technol contro servic accept
e
ogy Co. ller e ance
from
Ltd. bill
relate
d
party
Purch
asing
Jiangme
produ
n Bank
cts/rec
Dongjia Under Recei transf
eiving
ng same ving er or
labor Marke
Environ actual labor 0.22 0.22 0.00% bank 0.22
servic t price
mental contro servic accept
e
Compan ller e ance
from
y bill
relate
Limited
d
party
Guangd Purch Bank
Under
ong asing Purch transf Febru
same
Fenghua produ ase of Marke 1257. 1257. 2410. er or 1257.www.cni
ary
actual 0.20% No nfo.com.Advance cts/rec materi t price 03 03 00 bank 27contro 03 cn
d eiving als accept 2025
ller
Technol labor ance
101Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ogy servic bill
Holding e
Co. Ltd. from
relate
d
party
Purch
asing
produ
Guangd Bank
cts/rec
ong Under Recei transf
eiving
Huajian same ving
labor Marke 711.4 711.4
er or 711.4
Enterpri actual labor 0.11% bank
servic t price
se contro servic 6 6 accept 6
e
Group ller e ance
from
Co. Ltd. bill
relate
d
party
Purch
asing
produ
Guangz Bank
cts/rec
hou Under Recei transf
eiving
Haixins same ving 155.7 155.7 er or 155.7 www.cnilabor Marke 1700.ha actual labor 0.02% No bank nfo.com.servic t price 00
Industria contro servic 2 2 accept 2 cn
e
l Co. ller e ance
from
Ltd. bill
relate
d
party
Purch
asing
produ
Guangz Bank
cts/rec
hou Under Recei transf
eiving
Huajian same ving er or
labor Marke
Business actual labor 20.22 20.22 0.00% bank 20.22
servic t price
Develop contro servic accept
e
ment ller e ance
from
Co. Ltd. bill
relate
d
party
Purch
asing
Guangz
produ
hou Bank
cts/rec
Shengfe Under Recei transf
eiving
ng same ving er or
labor Marke 839.1 839.1 839.1
Catering actual labor 0.13% bank
servic t price
Manage contro servic 5 5 accept 5 Febru
e www.cni
ment ller e 1500. No ance
ary
from nfo.com.Service 00 bill 27
relate cn
Co. Ltd. 2025
d
party
Guangd Under Purch Recei Bank
ong same asing ving Marke 101.8 101.8 0.02% transf
101.8
Rising actual produ labor t price 4 4 er or 4
Urban contro cts/rec servic bank
102Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Services ller eiving e accept
Co. Ltd. labor ance
servic bill
e
from
relate
d
party
Purch
asing
Guangd produ
Bank
ong cts/rec
Under Recei transf
Rising eiving
same ving er or
Cultural labor Marke
actual labor 27.93 27.93 0.00% bank 27.93
Industry servic t price
contro servic accept
Develop e
ller e ance
ment from
bill
Co. Ltd. relate
d
party
Purch
asing
Guangd produ
Bank
ong cts/rec
Under transf
Rising eiving Purch
same er or
Cultural labor ase of Marke
actual 15.10 15.10 0.00% bank 15.10
Industry servic materi t price
contro accept
Develop e als
ller ance
ment from
bill
Co. Ltd. relate
d
party
Purch
asing
Guangd produ
Bank
ong cts/rec
Under Recei transf
Rising eiving
same ving er or
Commer labor Marke
actual labor 6.91 6.91 0.00% bank 6.91
cial servic t price
contro servic accept
Develop e
ller e ance
ment from
bill
Co. Ltd. relate
d
party
Purch
asing
produ
Bank
cts/rec
Ramada Under Recei transf
eiving
Pearl same ving er or
labor Marke
Hotel actual labor 3.57 3.57 0.00% bank 3.57
servic t price
Guangz contro servic accept
e
hou ller e ance
from
bill
relate
d
party
Guangz Under Purch Recei Marke 0.18 0.18 0.00% Bank 0.18
hou same asing ving t price transf
103Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Changji actual produ labor er or
an Real contro cts/rec servic bank
Estate ller eiving e accept
Manage labor ance
ment servic bill
Co. Ltd. e
from
relate
d
party
Purch
Share asing
holder produ
Bank
Prosperi that cts/rec
transf
ty holds eiving Purch Febru
er or www.cni
Lamps over labor ase of Marke 29.29 29.29 0.00% 100.0 No bank 29.29
ary
nfo.com.& 5% servic materi t price 0 27
accept cn
Compon shares e als 2025
ance
ents Ltd of the from
bill
Comp relate
any d
party
Comp
any
over
which Purch
a asing
Nanning relate produ
Bank
Ruixian d cts/rec
Recei transf
g indivi eiving Febru
ving er or www.cni
Industria dual labor Marke ary
labor 0.57 0.57 0.00% No bank 0.57 nfo.com.l of the servic t price 27
servic accept cn
Investm Comp e 2025
e ance
ent Co. any from
bill
Ltd. exerci relate
ses d
signifi party
cant
influe
nce
Sellin
g
Guangd
produ
ong Bank
cts/pr
Fenghua Under transf
ovidin Sellin Febru
Advance same er or www.cni
g g Marke 966.4 966.4 966.4
d actual 0.11%
2000. ary
No bank nfo.com.labor produ t price 3 3 00 3 27Technol contro accept cn
servic cts 2025
ogy ller ance
e to
Holding bill
relate
Co. Ltd.d
party
Prosperi Share Sellin Bank
ty holder g Sellin transf Febru
www.cni
Lamps that produ g Marke 788.7 788.7 1500. er or 788.70.09% aryNo nfo.com.& holds cts/pr produ t price 7 7 00 bank 7 27 cn
Compon over ovidin cts accept 2025
ents Ltd 5% g ance
104Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
shares labor bill
of the servic
Comp e to
any relate
d
party
Sellin
Enter
g
prise
produ
contro Bank
cts/pr
lled transf
Traxon ovidin Sellin
by er or
Technol g g Marke 253.5 253.5 253.5
relate 0.03% bank
ogies labor produ t price
d 0 0 accept 0
Limited servic cts
natura ance
e to
l bill
relate
perso
d
n
party
Sellin
g
produ
Bank
cts/pr
Primatro Under transf
ovidin Sellin
nix same
g g Marke 128.0 128.0
er or 128.0
Nanho actual 0.01% bank
labor produ t price
Technol contro 6 6 accept 6
servic cts
ogy Ltd. ller ance
e to
bill
relate
d
party
Sellin
g
produ
Guangd Bank
cts/pr
ong Under transf
ovidin Sellin
Xintao same er or
g g Marke
Microel actual 41.16 41.16 0.00% bank 41.16
labor produ t price
ectronic contro accept Febru
servic cts www.cni
s Co. ller 1100. ance ary
e to No nfo.com.Ltd. 00 bill 27
relate cn2025
d
party
Sellin
g
Guangd produ
Bank
ong cts/pr
Under transf
Zhuyuan ovidin Sellin
same er or
Constru g g Marke
actual 3.12 3.12 0.00% bank 3.12
ction labor produ t price
contro accept
Enginee servic cts
ller ance
ring Co. e to
bill
Ltd. relate
d
party
Primatro Under Sellin Provi Bank
nix same g ding Marke 2.22 2.22 0.00% transf 2.22
Nanho actual produ labor t price er or
Technol contro cts/pr servic bank
105Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ogy Ltd. ller ovidin e accept
g ance
labor bill
servic
e to
relate
d
party
Sellin
g
produ
Actua Bank
Guangd cts/pr
l transf
ong ovidin Sellin
contro er or
Rising g g Marke
ller of 1.12 1.12 0.00% bank 1.12
Holding labor produ t price
the accept
s Group servic cts
Comp ance
Co. Ltd. e to
any bill
relate
d
party
Sellin
g
produ
Guangd Bank
cts/pr
ong Under transf
ovidin Sellin
Zhongre same er or
g g Marke
n Group actual 0.30 0.30 0.00% bank 0.30
labor produ t price
Constru contro accept
servic cts
ction ller ance
e to
Co. Ltd bill
relate
d
party
Sellin
g
produ
Guangd Bank
cts/pr
ong Under Provi transf
ovidin
Huajian same ding
g Marke 997.1 997.1
er or 997.1
Enterpri actual labor 0.11% bank
labor t price
se contro servic 6 6 accept 6
servic
Group ller e ance
e to
Co. Ltd. bill
relate
d
party Febru
660.0 www.cniSellin ary
Yes nfo.com.g 0 27 cn
produ 2025
Guangd Bank
cts/pr
ong Under transf
ovidin Sellin
Zhongna same
g g Marke 192.0 192.0
er or 192.0
n actual 0.02% bank
labor produ t price
Constru contro 8 8 accept 8
servic cts
ction ller ance
e to
Co. Ltd. bill
relate
d
party
Guangd Under Sellin Provi Marke 15.73 15.73 0.00% Bank 15.73
ong same g ding t price transf
106Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Zhongna actual produ labor er or
n contro cts/pr servic bank
Constru ller ovidin e accept
ction g ance
Co. Ltd. labor bill
servic
e to
relate
d
party
7720.1682
Total -- -- -- -- -- --
160.00
Large-amount sales return in detail None
The Company calculated the aggregate amount of its continuing related-party transactions in
Give the actual situation in the 2025 with related parties including Fenghua Advanced Technology and its majority-owned
Reporting Period (if any) where an subsidiaries Rising Real Estate and its majority-owned subsidiaries Rising Group and its
estimate had been made for the total subsidiaries Huajian Group and its majority-owned subsidiaries and Prosperity and its
value of continuing related-party majority-owned subsidiaries. In terms of purchases from related parties the actual transaction
transactions by type to occur in the amount for 2025 was RMB43.3051 million representing 37.46% of the forecasted amount for
Reporting Period the year; and in terms of sales to related parties the actual transaction amount for 2025 was
RMB33.8965 million accounting for 64.44% of the forecasted amount for the year.
2. Related-Party Transactions Regarding Purchase or Sales of Assets or Equity Interests
□ Applicable□ Not applicable
No such cases during the Reporting Period.
3. Related Transactions Regarding Joint Investments in Third Parties
□ Applicable□ Not applicable
No such cases during 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 during the Reporting Period.
5. Transactions with Related Finance Companies
□ Applicable □ Not applicable
Deposit business:
Actual amount during the
Daily
Relationship Opening period Closing
maximum Interest rate
Related party with the balance
limits range Total Total
balance
Company (RMB’0000) (RMB’0000)
(RMB’0000) deposited in withdrawn
(RMB’0000) (RMB’0000)
Guangdong Under same 0.20%-
150000148216.53853254.15868355.4133115.28
Rising controlling 2.40%
107Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Finance Co. shareholder
Ltd.Loan business:
Actual amount during the
Relationship Opening period Closing
Loan limit Interest rate
Related party with the balance balance
(RMB’0000) range Total
Company (RMB’0000) Total loans repayment (RMB’0000)
(RMB’0000)
(RMB’0000)
Guangdong
Under same
Rising 2.40%-
controlling 5000 2000 2000
Finance Co. 2.75%
shareholder
Ltd.Credit or other financial business:
Relationship with the Total amount Actual amount
Related party Type of business
Company (RMB’0000) (RMB’0000)
Guangdong Rising Under same actual
Credit granting 200000 2000
Finance Co. Ltd. controller
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.
7. Other Major Related-Party Transactions
□ Applicable □ Not applicable
(1) Details of major infrastructure related-party transactions
Transaction
Related Relationship with Type of Specific Pricing amount Method of Disclosure
Disclosure date
party the Company transaction transaction principle (RMB’0000 settlement website
)
Purchasing Bank
Guangdong
products and Receiving transfer or July 9 2021
Zhongnan Under same Market 4917.94 www.cninfo.coreceiving labor labor bank August 17 2021
Constructio actual controller price m.cn
service from service acceptanc March 12 2022
n Co. Ltd.related party e bill
www.cninfo.co
Guangdong Purchasing Bank m.cn
Zhongren products and Receiving transfer or (announcement
Under same Market
Group receiving labor labor 1406.54bank December 1 2020 of subsidiary
actual controller price
Constructio service from service acceptanc NationStar
n Co. Ltd. related party e bill 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 RMB11.20 million fund
108Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
share in 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 www.cninfo.com.cn.
(3) To further optimize its capital structure and enhance the efficiency and effectiveness of capital operations
the Company’s majority-owned subsidiary NationStar Optoelectronics transferred at a consideration of
RMB35900 49% of the subscribed equity of its wholly-owned subsidiary Gaozhou NationStar
Optoelectronics Technology Co. Ltd. (corresponding to a capital contribution of RMB14.70 million) to
Guangdong Rising Baijianwan High-Quality Development Industry Investment Fund Partnership (Limited
Partnership) introducing it as a strategic investor. For details please refer to the Announcement on a Majority-
owned Subsidiary’s Transfer of 49% Subscribed Equity Interest in its Wholly-Owned Subsidiary and Related
Party Transaction disclosed by the Company on www.cninfo.com.cn on December 19 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 (announcement of
December 1 2020
Transaction Due to a Call for Public Bids subsidiary NationStar Optoelectronics)
Announcement on a Related-Party
July 9 2021 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
August 17 2021 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Related-Party
March 12 2022 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on the Acquisition of
Fund Subscription Contribution Shares
May 22 2025 www.cninfo.com.cn
by the Majority-Owned Subsidiary and
Related Party Transactions
Announcement on a Related-Party
October 18 2025 www.cninfo.com.cn
Transaction Due to a Call for Public Bids
Announcement on a Majority-owned
Subsidiary’s Transfer of 49% Subscribed
December 19 2025 www.cninfo.com.cn
Equity Interest in its Wholly-Owned
Subsidiary and Related Party Transaction
XV Major Contracts and Execution thereof
1. Entrustment Contracting and Leases
(1) Entrustment
□Applicable □ Not applicable
Explanation of the entrustment:
109Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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-owned subsidiary
Foshan Keliang New Energy Industry Technology Co. Ltd. (hereinafter referred to as “Foshan Kelian”) 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 and the Property Management Service
Contract for Kelian Building 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 during the Reporting Period :
□ Applicable□ Not applicable
No such cases during the Reporting Period.
(2) Contracting
□ Applicable□ Not applicable
No such cases during 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:
Date of Date of
Name of lessor Name of lessee Status of leased assets Lease amount commence expiry of Purpose
ment of leas
110Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
lease
Rent-free period: Two months; from
November 10 2024 to September 9
Guangdong
54/F Guangdong Rising 2026 the monthly rent is September September
Rising Holdings FSL Office
International Tower RMB293144.02; from September 10 2024 9 2027
Group Co. Ltd.
10 2026 to September 9 2027 the
monthly rent is RMB307801.22.Guangdong Self-numbered 01 50/F
NationStar September September
Rising Holdings Guangdong Rising RMB1296000.00/year Office
Optoelectronics 10 2024 9 2027
Group Co. Ltd. International Tower
From December 15 2024 to
December 14 2027 the annual rent
is RMB5093326.08; from
December 15 2027 to December 14
Suzhou
5# Workshop 100 2029 the annual rent is
Xiangcheng Office
Liaowang Auto Wulingqiao Road RMB4138327.44 . In the first three
High-tech December December &
Lamp (Suzhou) Huangdai Town years certain conditions can allow
Industrial 15 2024 14 2029 worksh
Co. Ltd. Xiangcheng District for a reduction or exemption of the
Development Co. op
Suzhou annual rent. In the fourth and fifth
Ltd.years of the lease meeting specific
conditions can lead to a reduction or
exemption of six months’ rent for
that year.
1/F & 2/F Phase II
Workshop 10 Nanxiang
Second Road
Guangdong
Guangdong Guangzhou Science Researc
Fenghua
Xintao City Huangpu District March 1 April 30 h &
Semiconductor RMB91070.00 /month
Microelectronics Guangzhou covering a 2025 2025 manufa
Technology Co.Co. Ltd. total area of 2602 cturing
Ltd.square meters and
situated on the northern
side
1/F & 2/F Phase II
Workshop 10 Nanxiang
Second Road
Guangdong
Guangdong Guangzhou Science Researc
Fenghua
Xintao City Huangpu District RMB91070.00 /month with an May 1 April 30 h &
Semiconductor
Microelectronics Guangzhou covering a increase of 5% every three years 2025 2025 manufa
Technology Co.Co. Ltd. total area of 2602 cturing
Ltd.square meters and
situated on the northern
side
Leases with a greater-than-10% impact on the Company’s gross profit during the Reporting Period:
□ Applicable□ Not applicable
No such cases during the Reporting Period.
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)
111Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Disclosur Guara
e date of Havin ntee
Type Collat
the Line of Actual Actual Counter g for a
of eral Term of
Obligor guarantee guarant occurrence guarantee guarante expire relate
guar (if guarantee
line ee date amount e (if any) d or d
antee any)
announce not party
ment or not
Total actual
amount of such
Total approved line for
guarantees
such guarantees provided
0 provided for 0
for external parties in the
external parties in
Reporting Period (A1)
the Reporting
Period (A2)
Total actual
Total approved line for balance of such
such guarantees at the end guarantees at the
00
of the Reporting Period end of the
(A3) Reporting Period
(A4)
Guarantees provided by the Company for its subsidiaries
Disclosur Guara
e date of Havin ntee
Type Collat
the Line of Actual Actual Counter g for a
of eral Term of
Obligor guarantee guarant occurrence guarantee guarante expire relate
guar (if guarantee
line ee date amount e (if any) d or d
antee any)
announce not party
ment or not
Total actual
amount of such
Total approved line for
guarantees
such guarantees provided
0 provided for 0
for subsidiaries in the
subsidiaries in the
Reporting Period (B1)
Reporting Period
(B2)
Total actual
Total approved line for balance of such
such guarantees at the end guarantees at the
00
of the Reporting Period end of the
(B3) Reporting Period
(B4)
Guarantees provided between subsidiaries
Disclosur Guara
e date of Havin ntee
Type Collat
the Line of Actual Actual Counter g for a
of eral Term of
Obligor guarantee guarant occurrence guarantee guarante expire relate
guar (if guarantee
line ee date amount e (if any) d or d
antee any)
announce not party
ment or not
Nanning March 2 Mort April 25
6913.9 June 21
Liaowang 2023 6913.91 gage Yes None 2022 to No No
12023
Auto Lamp April 19 d May 7
112Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Co. Ltd. 2024 and 2026
Liuzhou April 25
Guige 2025
Fuxuan
Technology
Co. Ltd.Liuzhou
Guige
Lighting
Technology
Co. Ltd.March 2
Chongqing
2023 June 23
Guinuo Mort
April 19 7000.0 February 2025 to
Lighting 2090.10 gage Yes None No No
2024 and 0 10 2023 June 22
Technology d
April 25 2027
Co. Ltd.
2025
Nanning
Liaowang
Auto Lamp
Co. Ltd.Liuzhou March 2
Guige 2023 April 24
Mort
Fuxuan April 19 13944. March 24 2022 to
4904.00 gage Yes None No No
Technology 2024 and 37 2023 May 10
d
Co. Ltd. April 25 2026
Liuzhou 2025
Guige
Lighting
Technology
Co. Ltd.Zhejiang
Hule August 21
Mort
Electric April 25 2000.0 August 21 2023 to
1995.24 gage Yes None No No
Equipment 2025 0 2023 August 20
d
Manufacture 2028
Co. Ltd.Total actual
amount of such
Total approved line for
guarantees
such guarantees provided
42300 provided between 15903.25
between subsidiaries in
subsidiaries in the
the Reporting Period (C1)
Reporting Period
(C2)
Total actual
Total approved line for balance of such
such guarantees at the end guarantees at the
4230015903.25
of the Reporting Period end of the
(C3) Reporting Period
(C4)
Total guarantee amount (total of the three kinds of guarantees above)
Total actual
Total guarantee line guarantee amount
approved in the Reporting 42300 in the Reporting 15903.25
Period (A1+B1+C1) Period
(A2+B2+C2)
113Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Total actual
Total approved guarantee
guarantee balance
line at the end of the
42300 at the end of the 15903.25
Reporting Period
Reporting Period
(A3+B3+C3)
(A4+B4+C4)
Total guarantee balance (A4+B4+C4) as % of the
2.33%
Company’s equity
Compound guarantees:
None.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 December 31 2025 guarantees between Liaowang Auto Lamp and its subsidiaries and collaterals are set out
in “3. Other” under “XVI Commitments and Contingencies” in “Part VIII Financial Statements” of this Report.
3. Cash Entrusted to Other Entities for Management
(1) Cash Entrusted for Wealth Management
□ Applicable □ Not applicable
Overview of cash entrusted for wealth management during the Reporting Period:
Unit: RMB’0000
Balance of cash entrusted for
Product category Risk characteristics wealth management at the Unrecovered overdue amount
period-end
Other low risk 159730 0
Asset management conducted by financial institutions under entrustment of the Company as the sole client or
high-risk wealth management with low security or low liquidity:
□ Applicable □ Not applicable
Unit: RMB’0000
Index to
Actual overvie
Risk gain/loss Recover w and
Type of Product Start Use of
Trustee character Amount End date during y of such other
trustee category date capital
istics the gain/loss informat
period ion (if
any)
Guangzh Large- http://w
To be
ou denomin January January ww.cnin
Bank Low risk 10000 Other 330 recovere
Branch ation 6 2023 6 2026 fo.com.c
d
of China certificat n/:
114Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Everbrig e of Announc
ht Bank deposit ement
Foshan Large- No.Branch denomin 2023-
To be
of Bank ation August August 007 on
Bank Low risk 5000 Other 147.01 recovere
of certificat 31 2023 31 2026 Entrustm
d
Commu e of ent of
nications deposit Some
Guangzh Large- Idle
ou denomin Funds
Novemb Novemb To be
Branch ation for
Bank Low risk 10000 er 3 er 3 Other 292.38 recovere
of China certificat Wealth
2023 2026 d
Everbrig e of Manage
ht Bank deposit ment;
Foshan Announc
Hujing Large- ement
Sub- denomin No.Decemb Decemb To be
branch ation 2024-
Bank Low risk 15000 er 1 er 1 Other 442.5 recovere
of Bank certificat 005 on
2023 2026 d
of e of Using
GuangZ deposit Partial
hou Idle
Foshan Raised
Hujing Large- Funds
Sub- denomin for Cash
To be
branch ation February February Manage
Bank Low risk 21200 Other 583 recovere
of Bank certificat 5 2024 5 2027 ment;
d
of e of Announc
GuangZ deposit ement
hou No.Guangzh Large- 2024-
ou denomin 017 on
To be
Branch ation February February Entrustm
Bank Low risk 5500 Other 143 recovere
of China certificat 5 2024 5 2027 ent of
d
Everbrig e of Some
ht Bank deposit Idle
Large- Funds
Foshan
denomin for
Branch To be
ation February February Wealth
of Bank Low risk 14300 Other 371.8 recovere
certificat 5 2024 5 2027 Manage
Huaxia d
e of ment;
Bank
deposit Announc
Large- ement
Foshan
denomin No.Branch To be
ation February February 2025-
of China Bank Low risk 6200 Other 203.44 recovere
certificat 5 2024 5 2027 003 on
Merchan d
e of Using
ts Bank
deposit Partial
Novemb To be Idle
Bank of Term February
Bank Low risk 11330 er 28 Other 16.05 recovere Raised
Hainan deposit 28 2026
2025 d Funds
Other for Cash
professio Manage
To be
Rising nal Term July 17 July 17 ment;
Low risk 500 Other 3.68 recovere
Finance wealth deposit 2025 2026 Announc
d
manage ement
ment No.
115Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
institutio 2025-
n 010 on
Other Entrustm
professio ent of
nal Some
Decemb To be
Rising wealth Term March Idle
Low risk 2000 er 31 Other 0 recovere
Finance manage deposit 31 2026 Funds
2025 d
ment for
institutio Wealth
n Manage
Other ment;
professio Announc
nal ement
To be
Rising wealth Term October April 16 No.Low risk 2200 Other 9.16 recovere
Finance manage deposit 16 2025 2026 2025-
d
ment 060 on
institutio Using
n Partial
Large- Idle
Foshan
denomin Raised
Branch To be
ation March 8 March 8 Funds
of Bank Low risk 15000 Other 390 recovere
certificat 2024 2027 for Cash
Huaxia d
e of Manage
Bank
deposit ment;
Large- Announc
Foshan
denomin ement
Branch To be
ation March March No.of China Bank Low risk 3500 Other 91 recovere
certificat 29 2024 29 2027 2025-
Merchan d
e of 020 on
ts Bank
deposit the
Large- Signing
Foshan
denomin of a
Branch To be
ation April 30 April 30 Financia
of China Bank Low risk 3000 Other 78 recovere
certificat 2024 2027 l Service
Merchan d
e of Agreeme
ts Bank
deposit nt with
Other Guangdo
professio ng
nal Rising
Novemb To be
Rising wealth Term February Finance
Low risk 15000 er 12 Other 36.99 recovere
Finance manage deposit 12 2026 Co. Ltd.
2025 d
ment
institutio
n
Other
professio
nal
Decemb March To be
Rising wealth Term
Low risk 10000 er 22 22 Other 4.93 recovere
Finance manage deposit
2025 2026 d
ment
institutio
n
Other
professio Decemb To be
Rising Term March
nal Low risk 10000 er 29 Other 1.48 recovere
Finance deposit 29 2026
wealth 2025 d
manage
116Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ment
institutio
n
Total 159730 -- -- -- 3144.42 -- --
(2) Entrusted Loans
□ Applicable□ Not applicable
No such cases during the Reporting Period.
4. Other Significant Contracts
□ Applicable□ Not applicable
No such cases during the Reporting Period.XVI Use of Raised Funds
□ Applicable □ Not applicable
1. General Information about Use of Raised Funds
□ Applicable □ Not applicable
Unit: RMB’0000
Cumu
Usage
ratio lative
Cumu of Re- re- Purpo Amou
lative raised purpo Cumu purpo se and ntNet
Used total sed lative sed where being
Year Way Securi Total amou fundsat the Unusein the amou amou re- amou abouts idle
of of ties amou nt of
curren nt of end of
d
nt in purpo nt of the for
raisin raisin listing nt funds amou
t raised theRepor the sed as % unuse moreg g date raised raised nt
period funds ting Repor amou of d than(1)
used Period ting nt total amou two
(2) Period amou nt years
(3)=(2 nt
)/(1) raised
The
amou
nt of
idle
raised
Issuan funds
ce of used
shares Dece for
to mber 1094 1088 1140 3153 28.97 2450 2450 22.51 7843 cash
2023
specif 4 55.18 41.55 4.51 2.99 % 4.84 4.84 % 0.63 mana
ic 2023 geme
object nt that
s has
not
yet
matur
ed is
RMB
117Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
591.9
583
millio
n
and
the
remai
ning
raised
funds
are
deposi
ted in
a
specia
l
accou
nt for
raised
funds.
109410881140315328.972450245022.517843
Total -- -- --
55.1841.554.512.99%4.844.84%0.63
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 of
December 31 2025 the Company had cumulatively utilized RMB 315.3299 million of the raised funds
accounting for 28.97% of the net proceeds.
2. Promised Use of Raised Funds
□ Applicable □ Not applicable
Unit: RMB’0000
Prom
ised AccuAccu
proje mulatmulat
ct Total iveRe- ive Time
funde prom Adju Inves Retur benef Signipurpo inves when Meeti
d ised sted tment ns its ficantsed Input tment the ng
Finan Secur with inves total progr deriv recor chanProje or in the amou proje the
cing ities raise tment amou ess as ed in ded ge toct partia Repo nt at ct is expec
proje listin d amou nt of at the the as at projenatur lly rting the ready ted
ct g funds nt the perio Repo the cte re- Perio end for its retur
name date and with inves d-end rting end feasipurpo d of the inten ns or
inves raise tment (3)=( Perio of bilitysed Repo ded not
tment d (1) 2)/(1) d Repo or notor not rting use
with funds rtingPerio
over- Period (2)
raise d
d
118Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
funds
Promised projects
2023 FSL’
Issua s
nce auto Prod
of Dece matio uctio
Nove
Share mber n and n and 3646 3585 2633 6169 17.21
No mber N/A N/A N/A No
s to 4 digita const 4.27 0.64 .74 .06 %
2026
Speci 2023 lizati ructio
fic on n
Targe proje
ts ct
2023
Issua
FSL
nce Prod
Hain
of Dece uctio
an
Share mber n and 2525 1363 3106 1363 100.0 Ende
Indus Yes N/A N/A N/A Yes
s to 4 const 2.91 1.82 .32 1.82 0% d
trial
Speci 2023 ructio
Park
fic n
I
Targe
ts
2023
Issua
nce The Prod
of Dece smart uctio
Share mber street n and 9179 100.0 Ende
Yes 95.77 0 95.77 N/A N/A N/A Yes
s to 4 lights const .52 0% d
Speci 2023 proje ructio
fic ct n
Targe
ts
2023 The
Issua vehic
nce le Prod
of Dece light uctio
Share mber modu n and 2400 2400 1542 4209 17.53 May
No N/A N/A N/A No
s to 4 le const 8.8 8.8 .4 .79 % 2027
Speci 2023 produ ructio
fic ction n
Targe proje
ts ct
2023
The
Issua Rese
R&D
nce arch
cente
of Dece and
r Nove
Share mber devel 1454 1454 4122 7426 51.04
const Yes mber N/A N/A N/A No
s to 4 opme 9.68 9.68 .06 .55 %
ructio 2027
Speci 2023 nt
n
fic proje
proje
Targe ct
ct
ts
1094881311403153
Subtotal of promised projects -- -- -- -- --
55.186.714.512.99
Use of over-raised funds
There were no over-raised funds.
119Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
1094881311403153
Total -- -- -- -- --
55.186.714.512.99
1. FSL’s Automation and Digitalization Project: This project aims to procure advanced automated production
equipment and supporting facilities and to implement a digital and intelligent transformation to establish an
intelligent manufacturing system. It was originally scheduled to reach its intended usable state by November
2026. However due to the combined impact of a slowdown in domestic macroeconomic growth overseas tariff
barriers and declining costs of related hardware and software the investment progress of the project has fallen
short of expectations.
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 Committee reviewing and passing the Proposal on
Extending the R&D Center Construction Project Time. According to the construction status and implementation
progress of the raised funds investment project and in light of the demand for products in the downstream
Explain the market the relevant R&D projects planned for the Company’s R&D center are currently progressing steadily
circumstances and the purchase of relevant R&D equipment and R&D-related software is under way in succession. However
and reasons as some experimental equipment needs to be customized and the R&D equipment is characterized by small
for failing to batches and multiple varieties not all equipment has been procured installed or commissioned adequately. In
achieve the view of the above reasons the Company agreed to extend the construction period of the raised funds investmentproject “R&D center construction project” by two years that is to extend the time for the raised funds
planned investment project to reach the intended status of use to May 2026.progress and
expected On April 23 2025 the Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the
returns by 10th Supervisory Committee and on May 15 2025 the Company’s 2024 general meeting of shareholders was
item held during which the Proposal on the Change and Termination of Certain Fundraising Investment Projects wasreviewed and approved. Due to adjustments made to certain R&D topics and supporting equipment during the
(including the implementation of the “R&D Center Construction Project” the Company extended the investment period of the
reason for project by one and a half years to ensure smooth project advancement and the achievement of R&D objectives.selecting Accordingly the planned date for the project to reach its intended usable state will be postponed to November
“N/A” for 2027.“Meeting the 3. Automotive Lighting Module Production Project: On April 23 2025 the Company held the 7th meeting ofexpected the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee and on May 15 2025 the
returns or Company’s 2024 general meeting of shareholders was held during which the Proposal on Adjusting the Internalnot”) 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 “SmartStreetlight Construction Project” please refer to the section “Particulars about significant change to projectfeasibility” 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 Therefore the Company intends to terminate the implementation of this project (for further details please refer
about to the Announcement on the Change and Termination of Certain Fundraising Investment Projects disclosed on
significant April 25 2025 on www.cninfo.com.cn).change to
project 2. Smart streetlight construction project: On April 23 2025 the Company convened the 7th meeting of the 10th
feasibility 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 ConstructionProject” (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 N/A
120Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
purpose and
use progress
of over-raised
funds
Unauthorized
change of the
purpose of
raised funds
N/A
and
misappropriati
on of raised
funds
Applicable
Occurred during the Reporting Period
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 Proposal on Adjusting the Internal Investment Structure
Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed andapproved. The FSL’s Automation and Digitalization Project has added “Fozhao Building 8 Zhihui RoadChange of Zhangcha Subdistrict Chancheng District Foshan City” as a new implementation site. Post-adding the project’simplementatio implementation sites changed to “39 Zhaoming Avenue Hecheng Subdistrict Gaoming District Foshan City’n location of and “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng District Foshan City”.raised funds 2. .The Company held the 7th meeting of the 10th Board of Directors and the 5th meeting of the 10th
investment Supervisory Committee on April 23 2025 and the 2024 general meeting of shareholders on May 15 2025
projects during which the Proposal on the Change and Termination of Certain Fundraising Investment Projects. TheR&D Center Construction Project added “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict ChanchengDistrict Foshan City” and “54/F The Pinnacle 17 West Zhujiang Road Tianhe District Guangzhou City” astwo new implementation sites. After-adding the project’s implementation sites changed to “39 ZhaomingAvenue Hecheng Subdistrict Gaoming District Foshan City” “Fozhao Building 8 Zhihui Road ZhangchaSubdistrict Chancheng District Foshan City” and “54/F The Pinnacle 17 West Zhujiang Road TianheDistrict Guangzhou City”.Applicable
Occurred in the prior year.Adjustments
to the way of On June 18 2024 the Company held the 57th meeting of the 9th Board of Directors and the 29th meeting of the
implementatio 9th Supervisory Committee reviewing and passing the Proposal on Adding Implementation Entities and Special
n of raised Accounts for Raised Funds to Some Raised Funds Investment Projects and agreed to add FSL Chanchang
funds Lighting Co. Ltd. (hereinafter referred to as “Chanchang Company”) a wholly-owned subsidiary of theinvestment Company as one of the implementation entities for the raised funds investment project “FSL’s automation andprojects 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 On January 16 2024 the Company held the 51st meeting of the 9th Board of Directors and the 25th meeting of
projects the 9th Supervisory Committee reviewing and passing the Proposal on Using Raised Funds to Replace Self-
funded with raised Funds for Pre-invested Capital Projects and Paid Issuance Expenses and agreed based on the actual
raised funds situation of the Company to use the raised funds to replace self-raised funds of RMB87975313.46 used for pre-
and invested capital projects. Specifically self-raised funds of RMB2603975.16 for paid issuance expenses would
subsequent be replaced. By January 2024 the Company had completed the swap of all the self-pooled funds.swaps
Use of idle
raised funds
for
temporarily N/A
supplementing
the working
capital
121Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Surplus
amount of
raised funds
upon project N/A
implementatio
n and the
reasons
As of December 31 2025 the total amount of unused proceeds was RMB784.3063 million of which
Purpose and RMB192.3480million was held as bank deposits in designated accounts for raised funds and RMB591.9583
whereabouts million was invested in cash management using temporarily idle proceeds which had not yet matured or been
of unused redeemed.raised funds 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 “Hainan Technology”) a wholly-owned subsidiary of the Company to
guarantee the successful implementation of the raised funds investment project the Board of Directors agreed
that the Company might use raised funds to provide an interest-free loan for Hainan Technology with the total
loan amount not exceeding RMB252529100 and a loan term of three years.
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 Proposal on Adjusting the Internal Investment Structure
Adding Implementation Sites and Postponing Certain Fundraising Investment Projects was reviewed and
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 utilization the Company plans to adjust the internal investment
Problems or structure for equipment upgrades under the “FSL’s automation and digitalization project” and to add a newother issues project implementation site at “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng Districtarising in the Foshan City.”
use and
3. On April 23 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th
disclosure of meeting of the 10th Board of Supervisors at which the Proposal on the Change and Termination of Certain
raised funds 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.
4. On February 5 2026 during a review of the use of raised funds the Company discovered that due to
litigation RMB 6658300 in the special settlement account for wealth management products opened by its
wholly-owned subsidiary Fozhao (Hainan) Technology Co. Ltd. at the Haikou Binhai Branch of Bank of
Hainan Co. Ltd. were frozen. The Company promptly applied to the court for a change in the preservation
order replacing the frozen raised funds with its own funds from a general account. As of the end of February
2026 the frozen raised funds had been unfrozen without affecting the progress of the raised funds invested
projects or the Company’s normal production and operation.
3. Re-purposed Raised Funds
□ Applicable□ Not applicable
Unit: RMB’0000
Corresp Total Actual Actual Investm Time Returns Meetin Signific
Financi Re- onding raised input in accumu ent when derived g the ant
ng Way of purpose original funds to the lative progres the in the expecte change
project raising d promise be Reporti investm s as at project Reporti d to re-
name project d investe ng ent the is ready ng returns purpose
project d in the Period amount period- for its Period or not d
re- at the end intende project
122Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
purpose end of (3)=(2)/ d use feasibili
d the (1) ty or
project Reporti not
(1) ng
Period
(2)
2023
Issuanc
issuanc FSLHai
e of
e of nan
shares Undeter 11621.shares Industri N/A N/A N/A
to mined 09
to al Park
specific
specific I
objects
targets
2023
Issuanc
issuanc The
e of
e of smart
shares Undeter 9083.7
shares street N/A N/A N/A
to mined 5
to lights
specific
specific project
objects
targets
2023
Issuanc The The
issuanc
e of R&D R&D
e of Novem
shares center center 14549. 4122.0 7426.5
shares 51.04% ber 30 N/A N/A No
to constru constru 68 6 5
to 2027
specific ction ction
specific
objects project project
targets
35254.4122.07426.5
Total -- -- -- -- -- -- --
5265
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
Explain the reasons decision- 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
making procedures and infrastructure in recent years the market demand for new infrastructure projects such as smart
information disclosure (by streetlights has grown at a rate below expectations resulting in insufficient project orders.project) Therefore the Company terminated the implementation of the “Smart Streetlight ConstructionProject” (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
123Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
on April 25 2025 on cninfo.com.cn).Explain the circumstances
and reasons for failing to
achieve the planned progress N/A
and expected returns (by
project)
Particulars about significant
change to the feasibility of N/A
repurposed projects
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 amount to be invested will be based on the actual amount in the newly confirmed project.
4. Verification Opinion of an Intermediary Institution Regarding the Deposit and Use of Raised Funds
□ Applicable □ Not applicable
The Company’s annual audit firm WUYIGE Certified Public Accountants LLP audited the deposit
management and actual use of the Company’s raised funds in 2025 and issued an independent auditor’s report
concluding that: the Company’s Special Report on the Deposit Management and Actual Use of Raised Funds
complies with applicable regulations and fairly reflects the deposit management and actual use of raised funds
in 2025 in all material respects.The sponsor Guotai Haitong Securities Co. Ltd. conducted a special verification of the deposit and use of
the Company’s raised funds in 2025 and issued a special verification opinion. Upon verification the sponsor
believes that the deposit and use of FSL’s raised funds in 2025 complied with the relevant regulations of the
China Securities Regulatory Commission and the Shenzhen Stock Exchange regarding the management of
raised funds as well as the Company's management rules for raised funds. The raised funds were deposited in
dedicated accounts and used for specific purposes. There was no unauthorized change of the purposes of raised
funds or damage to shareholder interests nor was there any misuse of raised funds. The issuer's use of raised
funds did not violate any national anti-money laundering laws and regulations. In summary the sponsor has no
objection to the deposit and use of the Company’s raised funds in 2025.XVII Other Significant Events
□ Applicable □ Not applicable
124Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 name:
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. On December 4 2025 NationStar Optoelectronics held the 12th meeting of the 6th Board of
Directors. The meeting reviewed and approved the Proposal on Adjusting the Total Amount of Raised Funds and
adjusted the total amount of raised funds from no more than RMB981.3239 million (inclusive) to no more than
RMB970.1239 million.XVIII Significant Events of Subsidiaries
□ Applicable □ Not applicable
1. Expropriation of land and buildings 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 Buildings 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 buildings 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
125Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 property
ownership certificate of the assets involved have been cancelled. On December 17 2025 Nanjing Fozhao
received the second compensation payment of RMB110695895. Meanwhile in accordance with relevant laws
and regulations and agreements between Nanjing Fozhao and the Honglan Street Office of the Lishui District
People’s Government of Nanjing City Lishui County House Dismantling Moving & Resettling Development
Co. Ltd. and other relevant entities Lishui County House Dismantling Moving & Resettling Development Co.Ltd. has pre-deducted RMB18 million from the expropriation compensation for environmental remediation and
related demolition costs of the expropriated land. The specific costs will be settled between Nanjing Fozhao and
the relevant parties based on actual expenses. For details please refer to the Announcement on Progress of the
Expropriation of Land Use Rights and Buildings of a Wholly-Owned Subsidiary disclosed by the Company on
www.cninfo.com.cn on December 19 2025. After the environmental remediation and related demolition is
completed Nanjing Fozhao will be liquidated and de-registered.
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 subjects. The total amount of raised funds will not exceed RMB970.1239 million (inclusive) which
will be used for the “Ultra-High Definition Display Mini/Micro LED and Display Module Production Project”
“Optoelectronic Sensing and Smart Health Devices Industrialization Project” “Smart Home Display and MiniBacklight Module Project” “Smart Automotive Components and Applications Project” “NationStarOptoelectronics R&D Laboratory Project” and “Supplementing Working Capital”. On April 7 2026 the
proposed issuance of shares to specific investors by NationStar Optoelectronics was approved by the Listing
Review Center of the Shenzhen Stock Exchange. However the implementation thereof is subject to the approval
decision on registration by the China Securities Regulatory Commission. For more details please refer to the 2025
Plan (Revised) for Issuing A-shares to Specific Subjects by Foshan NationStar Optoelectronics Co. Ltd.Announcement on the Approval of the Application for Share Issuance to Specific Investors by the Listing Review
Center of Shenzhen Stock Exchange Prospectus (Registration Draft) for the Issuance of A-Shares to Specific
126Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Investors by Foshan NationStar Optoelectronics Co. Ltd. and other announcements disclosed by NationStar
Optoelectronics on December 5 2025 April 8 2026 and April 10 2026 respectively on www.cninfo.com.cn.
127Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Part VI Share Changes and Shareholder Information
I Share Changes
1. Share Changes
Unit: share
Before Increase/decrease during the period (+/-) After
Shares as
Shares as
dividend
New dividend
Percentag converte Percentag
Shares issue converte Other Subtotal Shares
e (%) d from e (%)
s d from
capital
profit
reserves
--
1. Restricted
572954573.70%46757654675765105378020.69%
shares
55
1.1
Shares held 0 0.00% 0 0 0 0.00%
by state
1.2
Shares held - -
by state- 46695896 3.02% 4669589 4669589 1 0.00%
owned legal 5 5
persons
1.3
Shares held
by other 1671929 0.11% -61760 -61760 1610169 0.10%
domestic
investors
Among
which:
Shares held
13384340.09%0013384340.09%
by domestic
legal
persons
Shares
held by
domestic 333495 0.02% -61760 -61760 271735 0.02%
natural
persons
1.4
Shares held
89276320.58%0089276320.58%
by foreign
investors
Among
which:
Shares held
00.00%0000.00%
by foreign
legal
persons
128Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Shares held
by foreign 8927632 0.58% 0 0 8927632 0.58%
natural
persons
2.
14914827733757653375765152524042
Unrestricted 96.30% 99.31%
3558
shares
2.1 RMB-
denominate 119673716 3375765 3375765 123049482
77.27%80.12%
d ordinary 7 5 5 2
shares
2.2
Domesticall
y listed 294745606 19.03% 0 0 294745606 19.19%
foreign
shares
2.3
Overseas
listed 0 0.00% 0 0 0 0.00%
foreign
shares
2.4 Other 0 0.00% 0 0 0 0.00%
--
3. Total 154877823 153577823
100.00%13000001300000100.00%
shares 0 0
00
Reasons for share changes:
□ Applicable □ Not applicable
1. In 2023 in accordance with the Reply on the Approval of the Registration of Foshan Electrical and
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
129Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.
4. The departure of Zhang Yong the Company’s former Executive Vice President and Tang Qionglan the
former Chief Financial Officer from the Company during the Reporting Period resulted in 38384 new restricted
shares.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
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
130Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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:
20242025
Item Based on previous Based on new share
Based on new share capital
share capital capital
Basic earnings per share (RMB/share) 0.2905 0.2905 0.1399
Diluted earnings per share (RMB/share) 0.2881 0.2905 0.1399
Equity per share attributable to shareholders 4.2808 4.2808 4.4504
Other information that the Company considers necessary or is required by the securities regulator to be disclosed:
□Applicable□ Not applicable
2. Changes in Restricted Shares
□ Applicable □ Not applicable
Unit: share
Restricted
Increase in
Opening shares Closing
Name of restricted
restricted unlocked restricted Reason for restriction Date of unlocking
shareholder shares during
shares during the shares
the period
period
Guangdong Restricted shares after
Rising the IPO: subscription
Holdings 46695895 0 46695895 0 for the Company’s A- June 4 2025
Group Co. share issuance to
Ltd. specific objects in 2023
Subject to rules
Restricted shares of
governing restricted
former directors
Zhang Yong 58197 19399 0 77596 shares for directors
supervisors and senior
supervisors and senior
management
management
Subject to rules
Restricted shares of
governing restricted
former directors
Tang Qionglan 56955 18985 0 75940 shares for directors
supervisors and senior
supervisors and senior
management
management
Subject to rules
Restricted shares of
governing restricted
former directors
Ye Zhenghong 77561 0 77561 0 shares for directors
supervisors and senior
supervisors and senior
management
management
Subject to rules
Restricted shares of
governing restricted
former directors
Lin Qing 22583 0 22583 0 shares for directors
supervisors and senior
supervisors and senior
management
management
Total 46911191 38384 46796039 153536 -- --
131Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
II Issuance and Listing of Securities
1. Securities (Exclusive of Preferred Shares) Issued in the Reporting Period
□ Applicable□ Not applicable
2. Changes to Total Shares Shareholder Structure and Asset and Liability Structures
□ Applicable□ Not applicable
3. Existing Staff-Held Shares
□ Applicable□ Not applicable
III Shareholders and Actual Controller
1. Shareholders and Their Shareholdings at the Period-End
Unit: share
Number of
Number of
ordinary
preference Number of preference
Number of shareholder
shareholders shareholders with resumed
ordinary s at the
with resumed voting rights at the month-
shareholders 79240 month-end 75947 0 0
voting rights at end prior to the disclosure
at the prior to the
the period-end of this Report (if any) (see
period-end disclosure
(if any) (see note 8)
of this
note 8)
Report
5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing)
Total Increase/decreas Shares in pledge marked
Nature of Shareholdin Restricte Unrestricte
Name of shares held e in the or frozen
shareholde g d shares d shares
shareholder at the Reporting
r percentage held held
period-end Period Status Shares
Hong Kong
Wah Shing Overseas
1973389819733898
Holding corporatio 12.85% 0 0 N/A 0
00
Company n
Limited
Prosperity
Overseas
Lamps & 14693485 14693485
corporatio 9.57% 0 0 N/A 0
Component 7 7
n
s Limited
Guangdong
State-
Electronics
owned 14362384 14362384
Information 9.35% 11429600 0 N/A 0
corporatio 6 6
Industry
n
Group Ltd.Guangdong
State-
Rising
owned 12982679 12982679
Holdings 8.45% 0 0 N/A 0
corporatio 3 3
Group Co.n
Ltd.Central State-
Huijin Asset owned 2.16% 33161800 0 0 33161800 N/A 0
Managemen corporatio
132Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
t Co. Ltd. n
SDICS
Internationa
Overseas
l Securities
corporatio 1.69% 25981530 -9161071 0 25981530 N/A 0
(Hong
n
Kong)
Limited
Rising
Overseas
Investment
corporatio 1.66% 25482252 0 0 25482252 N/A 0
Developme
n
nt Limited
Zhang Domestic
1.11% 17000000 0 0 17000000 N/A 0
Shaowu individual
Zhuang Overseas 892763
0.78% 11903509 0 2975877 N/A 0
Jianyi individual 2
Hong Kong
Securities Overseas
Clearing corporatio 0.52% 7962355 -1698622 0 7962355 N/A 0
Company n
Limited
Strategic investor or
general corporation
becoming a top-10 None
shareholder in a rights
issue (if any) (see note 3)
Among the top 10 shareholders Hong Kong Wah Shing Holding Company Limited Guangdong
Electronics Information Industry Group Ltd. Guangdong Rising Holdings Group Co. Ltd. and Rising
Related or acting-in-
Investment Development Limited are acting-in-concert parties; Prosperity Lamps & Components
concert parties among the
Limited and Zhuang Jianyi are acting-in-concert parties. Apart from that it is unknown whether there is
shareholders above
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.Shareholders above
entrusting/entrusted with None
or waiving voting rights
Repurchased share
account (if any) among
None
the top 10 shareholders
(see note 10)
Top 10 unrestricted shareholders (exclusive of shares lent in refinancing and locked shares of senior management)
Shares by class
Name of shareholder Unrestricted shares held at the period-end
Class Shares
RMB-
Hong Kong Wah Shing
denominate 18849643
Holding Company
d ordinary 0
Limited
197338980 stock
Domesticall
Hong Kong Wah Shing
y listed
Holding Company 8842550
overseas
Limited
stock
RMB-
Prosperity Lamps & denominate 14693485
146934857
Components Limited d ordinary 7
stock
Guangdong Electronics RMB- 14362384
143623846
Information Industry denominate 6
133Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Group Ltd. d ordinary
stock
RMB-
Guangdong Rising denominate 12982679
129826793
Holdings Group Co. Ltd. d ordinary 3
stock
RMB-
Central Huijin Asset denominate
3316180033161800
Management Co. Ltd. d ordinary
stock
Domesticall
SDICS International
y listed
Securities (Hong Kong) 25981530 25981530
overseas
Limited
stock
Domesticall
Rising Investment y listed
2548225225482252
Development Limited overseas
stock
RMB-
denominate
Zhang Shaowu 17000000 17000000
d ordinary
stock
RMB-
Hong Kong Securities
denominate
Clearing Company 7962355 7962355
d ordinary
Limited
stock
RMB-
denominate
Zhao Xiyi 7390673 7390673
d ordinary
stock
Related or acting-in-
concert parties among the
Among the top 10 unrestricted public shareholders Hong Kong Wah Shing Holding Company Limited
top 10 unrestricted public
Guangdong Electronics Information Industry Group Ltd. Guangdong Rising Holdings Group Co. Ltd.shareholders as well as
and Rising Investment Development Limited are acting-in-concert parties. Apart from that it is
between the top 10
unknown whether there is among the top 10 shareholders any other related parties or acting-in-concert
unrestricted public
parties as defined in the Administrative Measures for the Acquisition of Listed Companies.shareholders and the top
10 shareholders
Top 10 ordinary
shareholders involved in
None
securities margin trading
(if any) (see note 4)
5% or greater shareholders top 10 shareholders and top 10 unrestricted public shareholders involved in
refinancing shares lending:
□ Applicable□ Not applicable
Changes in top 10 shareholders and top 10 unrestricted public shareholders due to refinancing shares
lending/return compared with the prior period:
□ Applicable□ Not applicable
Indicate whether any of the top 10 ordinary shareholders or the top 10 unrestricted ordinary shareholders of the
134Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Company conducted any promissory repo during the Reporting Period.□ Yes□ No
No such cases during the Reporting Period.
2. Controlling Shareholder
Nature of the controlling shareholder: Controlled by a local state-owned corporation
Type of the controlling shareholder: Corporation
Legal
Name of Date of
representative/ Organizationa
controlling establishme Principal operations
person in l code
shareholder nt
charge
General items: Management of corporate headquarters;
engaging in investment activities with proprietary funds;
equity fund-invested asset management services; housing
lease; lease of non-residential real estate; information
Guangdong technology consultancy services; information system
Rising Lyu December 91440000719 integration services; software development; business
Holdings Group Yongzhong 23 1992 283849E training (trainings that require approval such as educational
Co. Ltd. training and vocational skill training exclusive);
procurement agency services. (Business activities shall be
conducted independently in accordance with laws with the
business license except the items that require approval in
accordance with laws)
Development production and sale of electronics IT
products and electrical appliances operation of electronic
information networks and computers electronic computer
technology service and equipment and venue rental service;
sale of electronic computers and fittings electronic
components electron devices and electrical machinery and
Guangdong
equipment; wholesale of coal; energy performance
Electronics
October 19 91440000725 contracting service development and consulting service of
Information Wang Jia
2000 458764N energy-saving technology and manufacture and installation
Industry Group
of energy-saving equipment; parking lot operation (188
Ltd.Yueken Road Tianhe District Guangzhou Guangdong
Province P.R.China); import and export of goods; and
training of professional and technical personnel (limited to
branch operation); and technical services (for projects that
require approval by law business activities may only be
carried out after approval by the relevant authorities)
Shareholdings At the end of the Reporting Period (December 31 2025) Guangdong Rising Holdings Group Co. Ltd. and its
of the parties acting in concert directly or indirectly held the following stakes in other listed companies at home or
controlling abroad:
shareholder in 1. a 30.06% stake of 1335060698 A-stock shares in Zhongjin Lingnan Nonfemet;
other listed 2. a 23.59% stake of 272894617 A-stock shares in Fenghua Advanced;
companies at 3. a 26.37% stake of 291458228 A-stock and H-stock shares in Dongjiang Environment;
home or abroad 4. a 9.48% stake of 100587368 A-stock shares in China Rare Earth;
during the 5. For holdings in China Telecom (A-stock and H-stock) please refer to the data disclosed in China Telecom’s
period 2025 Annual Report.Change of the controlling shareholder during the Reporting Period:
□ Applicable□ Not applicable
135Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
No such cases during the Reporting Period.
3. Actual Controller and Its Acting-in-Concert Parties
Nature of the actual controller: Local institution for state-owned assets management
Type of the actual controller: Corporation
Legal
Date of
Name of actual representative/ Organizationa
establishm Principal operations
controller person in l code
ent
charge
General items: Management of corporate headquarters;
engaging in investment activities with proprietary funds;
equity fund-invested asset management services; housing
lease; lease of non-residential real estate; information
Guangdong technology consultancy services; information system
Rising Lyu December 91440000719 integration services; software development; business training
Holdings Group Yongzhong 23 1999 283849E (trainings that require approval such as educational training
Co. Ltd. and vocational skill training exclusive); procurement agency
services. (Business activities shall be conducted
independently in accordance with laws with the business
license except the items that require approval in accordance
with laws)
At the end of the Reporting Period (December 31 2025) Guangdong Rising Holdings Group Co. Ltd. and its
Shareholdings
parties acting in concert directly or indirectly held the following stakes in other listed companies at home or
of the actual
abroad:
controller in
1. a 30.06% stake of 1335060698 A-stock shares in Zhongjin Lingnan Nonfemet;
other listed
2. a 23.59% stake of 272894617 A-stock shares in Fenghua Advanced;
companies at
3. a 26.37% stake of 291458228 A-stock and H-stock shares in Dongjiang Environment;
home or abroad
4. a 9.48% stake of 100587368 A-stock shares in China Rare Earth;
during the
5. For holdings in China Telecom (A-stock and H-stock) please refer to the data disclosed in China Telecom’s
period
2025 Annual Report.
Change of the actual controller during the Reporting Period:
□ Applicable□ Not applicable
No such cases during the Reporting Period.Ownership and control relations between the actual controller and the Company:
136Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
People’s Government of Department of Finance of
Guangdong Province Guangdong Province
Guangdong Rising Holdings Group Co. Ltd.Rising Investment Development Limited Guangdong Electronics Information Industry
Group Ltd.Hongkong Wah Shing Enterprise
Limited
Hongkong Wah Shing Holding
Company Limited
Foshan Electrical and Lighting Co. Ltd.Indicate whether the actual controller controls the Company via trust or other ways of asset management.□ Applicable□ Not applicable
4. Number of Accumulative Pledged Shares held by the Company’s Controlling Shareholder or the
Largest Shareholder as well as Its Acting-in-Concert Parties Accounts for 80% of all shares of the
Company held by Them
□ Applicable□ Not applicable
5. Other 10% or Greater Corporate Shareholders
□ Applicable□ Not applicable
6. Limitations on Shareholding Decrease by the Company’s Controlling Shareholder Actual Controller
Reorganizer and Other Commitment Makers
□ Applicable□ Not applicable
IV Share Repurchases during the Reporting Period
Progress on any share repurchases:
137Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
□ Applicable□ Not applicable
Progress on reducing the repurchased shares by means of centralized bidding:
□ Applicable□ Not applicable
V Preference Shares
□ Applicable□ Not applicable
No preference shares during the Reporting Period.
138Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Part VII Bonds
□ Applicable□ Not applicable
139Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Part VIII Financial Statements
I Auditor’s Report
Type of the independent auditor’s opinion Unmodified unqualified opinion
Date of signing this report April 15 2026
Name of the independent auditor WUYIGE Certified Public Accountants LLP
No. of independent auditor’s report WUYIGE Auditor’s Report [2026] No. 22-00026
Names of certified public accountants He Xiaojuan Wang Xiaohan
Independent Auditor’s Report
To the Shareholders of Foshan Electrical and Lighting Co. Ltd.I Opinion
We have audited the financial statements of Foshan Electrical and Lighting Co. Ltd. (the “Company”)
which comprise the consolidated balance sheets and balance sheet of the parent company as of December 31
2025 the consolidated income statement and income statement of the parent company consolidated cash flow
statement and cash flow statement of the parent company and consolidated statement of changes in owners’ equity
and statement of changes in owners’ equity of the parent company for the year then ended as well as the notes to
the financial statements.In our opinion the financial statements referred to above present fairly in all material respects the
consolidated and parent company financial position of the Company at December 31 2025 as well as the
consolidated and parent company operating results and cash flows for the year then ended in conformity with the
Chinese Accounting Standards (CAS).II Basis for Opinion
We conducted our audits in accordance with the Audit Standards for Chinese Registered Accountants. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for Audit of Financial
Statements section of our report. We are independent of the Company in accordance with the China Code of
Ethics for Certified Public Accountants and the Chinese Certified Public Accountants’ Independence Standards
and we have fulfilled our other ethical responsibilities in accordance with the said Code of Ethics. We have
complied with the independence requirements applicable to the audit of financial statements of public interest
entities in the course of our audit.We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
140Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
opinion.III Key Audit Matters
Key audit matters are those matters that in our professional judgment were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of the
financial statements as a whole and in forming our opinion thereon and we do not provide a separate opinion on
these matters.i. Revenue recognition
1. Description
As stated in “V 37. Revenue” and “VII 61. Operating Revenue and Cost of Sales” in the notes to the financial
statements the Company’s operating revenue was RMB8796808970.58 during 2025 with the main business
revenue being RMB8451351444.66 accounting for 96.07% of the total operating revenue. The amount of main
business revenue is significant and is a key performance indicator so there is inherent risk that management will
manipulate revenue recognition in order to meet specific targets or expectations. Therefore we determined that
revenue is recognized as a key audit item.
2. Response to auditing
(1) Understanding and evaluating the design of internal control related to revenue recognition and testing the
effectiveness of relevant internal control;
(2) Checking whether the main business revenue recognition policy is in line with the requirements of the
Accounting Standards for Business Enterprises and is consistently applied;
(3) Selecting the main business revenue transactions recorded of the period to check invoices sales contracts
outbound orders customer receipt records and export documents and assess whether the relevant revenue
recognition conforms to the accounting policies of the Company for revenue recognition;
(4) Selecting the main business revenue transactions recorded of the period to carry out independent
confirmation procedures and confirm the authenticity of revenue;
(5) Inquiring about the industrial and commercial registration information of major customers through public
channels so as to ensure that major customers operate normally and their business scope conforms to the nature of
the Company’s downstream customers;
(6) Implementing analysis procedures for main business revenue including analyzing the annual and
monthly revenue of major products changes in major customers changes in sales prices and gross profit margins
141Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
of major products and judging the rationality of changes in revenue and gross profit margins of the period;
(7) Selecting the main business revenue transactions recorded around the balance sheet date checking the
outbound order customer receipt records and other supporting documents to assess whether the main business
revenue is recorded in the appropriate accounting period.ii. Provision for bad debt of accounts receivable
1. Description
As stated in Notes "V 13. Methods for determining and accounting for expected credit losses" and "VII 5.Accounts Receivable" to the financial statements as of December 31 2025 the gross amount of accounts
receivable in the consolidated financial statements of the Company was RMB2371995404.07 including
RMB198670120.29 in the balance of bad debt provision. The determination of the recoverability of accounts
receivable requires the Management to identify the impaired items and objective evidence assess the expected
future cash flows to be obtained and determine their present value. This involves significant accounting estimates
and judgements by the Management and the provision for impairment of expected credit losses on accounts
receivable is significant to the financial statements. Therefore the impairment of accounts receivable is
considered a key audit matter.
2. Audit Response
(1) Evaluated and tested the design and operating effectiveness of internal controls related to credit policies
and receivables management;
(2) An analysis of the reasonableness of the accounting estimates for the provision for bad debts in respect of
accounts receivable including the basis for determining the group of accounts receivable the judgment of
materiality of amounts the separate provision for bad debts and the judgment of expected credit loss rates;
(3) Analyzed and calculated the ratio between the amount of provision for bad debts and the balance of
accounts receivable at the balance sheet date compared the provision for bad debts with the actual amount
incurred in prior periods and analyzed the adequacy of the provision for bad debts for accounts receivable;
(4) Obtained the table of the provisions for bad debts and checked whether the provision making method is
implemented in accordance with the bad debts policy and whether the recalculation of the amount of provision for
bad debts is accurate;
(5) Evaluated the reasonableness of the provision for bad debts for accounts receivable by analyzing the
aging of the accounts receivable and the creditworthiness of the customers and by performing correspondence
142Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
procedures for accounts receivable and checking the post-period recovery.iii. Goodwill impairment tests
1. Description
On February 28 2022 the Company acquired a 21.48% equity interest in Foshan NationStar Optoelectronics
Co. Ltd. (hereinafter "NationStar Optoelectronics") resulting in goodwill of RMB405620123.64. As of
December 31 2025 an impairment provision of RMB176610990.01 has been made for goodwill. The goodwill
of NationStar Optoelectronics has a significant impact on its financial statements. Additionally in the goodwill
impairment test the Company’s Management reasonably judged and identified signs of goodwill impairment
based on internal and external information. Furthermore in impairment signs and year-end impairment tests
calculation results of recoverable amounts heavily rely on the estimates and assumptions made by the
Management. These estimates involve uncertainties and may be significantly influenced by the Management’s
judgments about future markets and economic environments. Different estimates and assumptions adopted
significantly influence the recoverable value of the goodwill appraised. As goodwill impairment testing involves
significant judgments and estimates made by the Management it is considered a key audit matter.
2. Audit Response
(1) Understanding evaluating and testing the Company’s key internal controls related to goodwill
impairment testing.
(2) For goodwill arising from a business combination understanding the achievement of performance
forecasts for the acquired company.
(3) Discussing with the management the methodology of goodwill impairment testing including the asset
group or combination of asset groups related to goodwill the reasonableness of assumptions such as fair value
future earnings projections and discounted cash flow rates for each asset group or combination of asset groups and
the judgment and assessment of the fair value or profitability of each asset group or combination of asset groups.
(4) Evaluating the competency professional quality and objectivity of the external valuation experts engaged
by management.
(5) Discussing with the external valuation experts engaged by the management to understand the
reasonableness of key assumptions used in the impairment test.
(6) Where necessary with the assistance of internal valuation experts evaluate the reasonableness of the type
of value valuation methodology and valuation parameters such as the discount rate of the asset valuation reports
143Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
issued by external valuation experts.IV Other Information
The Company’s management is responsible for the other information. The other information comprises all of
the information included in the Company’s 2025 Annual Report other than the financial statements and our
auditor’s report thereon.Our opinion on the financial statements does not cover the other information and we do not express any form
of assurance conclusion thereon.In connection with our audit of the financial statements our responsibility is to read the other information
and in doing so consider whether the other information is materially inconsistent with the financial statements or
our knowledge obtained in the audit or otherwise appears to be materially misstated.If based on the work we have performed we conclude that there is a material misstatement of this other
information we are required to report that fact. We have nothing to report in this regard.V Responsibilities of Management and Those Charged with Governance for Financial Statements
The Company’s management is responsible for the preparation of the financial statements that give a fair
view in accordance with CAS and for designing implementing and maintaining such internal control as the
management determines is necessary to enable the preparation of financial statements that are free from material
misstatement whether due to fraud or error.In preparing the financial statements the management is responsible for assessing the Company’s ability to
continue as a going concern disclosing as applicable matters related to going concern and using the going
concern basis of accounting unless the management either intends to liquidate the Company or to cease operations
or have no realistic alternative but to do so.Those charged with governance are responsible for overseeing the Company’s financial reporting process.VI Auditor’s Responsibilities for Audit of Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement whether due to fraud or error and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in
accordance with CAS will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if individually or in the aggregate they could reasonably be expected to
influence the economic decisions of users taken on the basis of these financial statements.
144Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
As part of an audit in accordance with CAS we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
(1) Identify and assess the risks of material misstatement of the financial statements whether due to fraud or
error design and perform audit procedures responsive to those risks and obtain audit evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error as fraud may involve collusion forgery intentional omissions
misrepresentations or the override of internal control.
(2) Understand the internal controls relevant to the audit in order to design appropriate audit procedures.
(3) Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates
and related disclosures made by the management.
(4) Conclude on the appropriateness of the management’s use of the going concern basis of accounting and
based on the audit evidence obtained whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material
uncertainty exists we are required by CAS to draw users’ attention in our auditor’s report to the related
disclosures in the financial statements or if such disclosures are inadequate we should express modified opinion.Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However future
events or conditions may cause the Company to cease to continue as a going concern.
(5) Evaluate the overall presentation structure and content of the financial statements including the
disclosures and whether the financial statements represent the underlying transactions and events in a manner that
achieves fair presentation.
(6) Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Company to express an opinion on the financial statements. We are responsible for the
direction supervision and performance of the Company audit. We remain solely responsible for our audit opinion.We communicate with those charged with governance regarding among other matters the planned scope and
timing of the audit and significant audit findings including any noteworthy deficiencies in internal control that we
identify during our audit.We also provide those charged with governance with a statement that we have complied with the ethical
requirement of independence and communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence and where applicable related safeguards.
145Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
From the matters communicated with those charged with governance we determine those matters that were
of most significance in the audit of the financial statements of the current period and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure
about the matter or when in extremely rare circumstances we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to
outweigh the public interest benefits of such communication.WUYIGE Certified Public Accountants LLP Chinese CPA: He Xiaojuan
(Engagement Partner)
Beijing · China Chinese CPA: Wang Xiaohan
April 15 2026
146Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.December 31 2025
Unit: RMB
Item December 31 2025 January 1 2025
Current assets:
Monetary assets 3455743091.17 3209127437.31
Settlement reserve
Interbank loans granted
Held-for-trading financial assets 2768997.33 43649820.47
Derivative financial assets
Notes receivable 732835152.15 997281070.21
Accounts receivable 2173325283.78 2125667291.96
Accounts receivable financing 415949788.02 352694866.89
Prepayments 49790049.31 24419779.12
Premiums receivable
Reinsurance receivables
Receivable reinsurance contract
reserve
Other receivables 82678537.89 70524265.25
Including: Interest receivable
Dividends receivable
Financial assets purchased under
resale agreements
Inventories 2163660652.65 2025499361.38
Including: Data resources
Contract assets 450672.52 1690021.95
Assets held for sale 17147339.84
Current portion of non-current assets 429862721.67
Other current assets 221586381.03 261284776.85
Total current assets 9728651327.52 9128986031.23
Non-current assets:
Loans and advances to customers
Investments in debt obligations
Investments in other debt obligations 720083694.31 1140022863.72
Long-term receivables
Long-term equity investments 184806652.92 180300594.89
Investments in other equity 471794043.90 726663613.42
147Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
instruments
Other non-current financial assets
Investment property 810582038.87 793487046.02
Fixed assets 3586917576.90 3646594206.04
Construction in progress 223949659.06 263601705.89
Productive living assets
Oil and gas assets
Right-of-use assets 23771544.09 22342999.34
Intangible assets 383525440.66 388587348.99
Including: Data resources
Development costs
Including: Data resources
Goodwill 245346155.52 279438540.78
Long-term prepaid expense 335938420.48 253024495.82
Deferred income tax assets 144164584.33 135948224.91
Other non-current assets 307714497.11 200765785.59
Total non-current assets 7438594308.15 8030777425.41
Total assets 17167245635.67 17159763456.64
Current liabilities:
Short-term borrowings 635015074.86 307141147.49
Borrowings from the central bank
Interbank loans obtained
Held-for-trading financial liabilities 275250.00
Derivative financial liabilities
Notes payable 2179070444.41 1930784817.62
Accounts payable 2443871780.95 2781965096.70
Advances from customers 328004.34 13531474.15
Contract liabilities 140787246.73 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 167248995.64 214651088.46
Taxes payable 91181551.13 107085160.39
Other payables 372152039.73 495717050.97
Including: Interest payable
Dividends payable
Handling charges and commissions
payable
Reinsurance payables
Liabilities directly associated with
148Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
assets held for sale
Current portion of non-current
131296264.00120574788.81
liabilities
Other current liabilities 81286297.53 377156212.40
Total current liabilities 6242237699.32 6468388388.47
Non-current liabilities:
Insurance contract reserve
Long-term borrowings 192915075.78 222581930.54
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 15354724.02 15023993.11
Long-term payables
Long-term employee benefits payable
Provisions 17991357.40 27430683.82
Deferred income 116931745.07 73739179.94
Deferred income tax liabilities 150196615.46 185921269.29
Other non-current liabilities 107831.23 177917.63
Total non-current liabilities 493497348.96 524874974.33
Total liabilities 6735735048.28 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 227147391.31 383429155.02
Specific reserve 3436494.07 4782061.20
Surplus reserves 189358133.42 150097522.97
General reserve
Retained earnings 4035582297.14 3655046154.57
Total equity attributable to owners of the
6834820501.846574304305.27
parent company
Non-controlling interests 3596690085.55 3592195788.57
Total owners’ equity 10431510587.39 10166500093.84
Total liabilities and owners’ equity 17167245635.67 17159763456.64
Legal representative: Yu Zhongmin
Chief Financial Officer: Zeng Xiaojing
Person-in-charge of the Company’s accounting organ: Li Yizhi
149Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
2. Balance Sheet of the Parent Company
Unit: RMB
Item December 31 2025 January 1 2025
Current assets:
Monetary assets 1354400356.07 1260985441.29
Held-for-trading financial assets
Derivative financial assets
Notes receivable 33202567.04 71832245.04
Accounts receivable 757126588.99 745257268.31
Accounts receivable financing 29172106.24 67526522.26
Prepayments 7277923.25 71078813.72
Other receivables 1044883403.20 944184445.88
Including: Interest receivable
Dividends receivable
Inventories 220389239.43 268069616.21
Including: Data resources
Contract assets 450672.52 1690021.95
Assets held for sale
Current portion of non-current assets 270515498.49
Other current assets 5407515.23 861413.93
Total current assets 3722825870.46 3431485788.59
Non-current assets:
Investments in debt obligations
Investments in other debt obligations 625345689.25 1047759858.61
Long-term receivables
Long-term equity investments 2444369319.04 2434177186.55
Investments in other equity instruments 421511500.10 687581069.62
Other non-current financial assets
Investment property 180291877.15 202079386.31
Fixed assets 568691612.66 599351996.15
Construction in progress 5598939.90 5884955.59
Productive living assets
Oil and gas assets
Right-of-use assets 5110635.01 8720969.67
Intangible assets 59201009.37 57347999.70
Including: Data resources
Development costs
Including: Data resources
Goodwill
Long-term prepaid expense 27595661.99 35546452.07
Deferred income tax assets 35139464.32 38910990.65
150Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Other non-current assets 223815163.18 120611200.89
Total non-current assets 4596670871.97 5237972065.81
Total assets 8319496742.43 8669457854.40
Current liabilities:
Short-term borrowings 182549560.55
Held-for-trading financial liabilities 275250.00
Derivative financial liabilities
Notes payable 579751378.73 864782508.32
Accounts payable 790542018.91 860893918.87
Advances from customers 13367850.30
Contract liabilities 58106760.51 58018288.88
Employee benefits payable 50035740.83 57145931.55
Taxes payable 11014777.31 75527406.17
Other payables 362102666.77 445875922.06
Including: Interest payable
Dividends payable
Liabilities directly associated with
assets held for sale
Current portion of non-current
3212484.763581230.44
liabilities
Other current liabilities 26128291.20 50682086.68
Total current liabilities 2063443679.57 2430150393.27
Non-current liabilities:
Long-term borrowings
Bonds payable
Including: Preferred shares
Perpetual bonds
Lease liabilities 2303924.37 5516409.11
Long-term payables
Long-term employee benefits payable
Provisions 2110312.84
Deferred income
Deferred income tax liabilities 40097179.24 68096992.10
Other non-current liabilities
Total non-current liabilities 42401103.61 75723714.05
Total liabilities 2105844783.18 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
151Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Other comprehensive income 227973609.59 383570431.32
Specific reserve 522569.87 3170252.81
Surplus reserves 420662202.66 381401592.21
Retained earnings 3188821949.84 3019769843.45
Total owners’ equity 6213651959.25 6163583747.08
Total liabilities and owners’ equity 8319496742.43 8669457854.40
Legal representative: Yu Zhongmin
Chief Financial Officer: Zeng Xiaojing
Person-in-charge of the Company’s accounting organ: Li Yizhi
3. Consolidated Income Statement
Unit: RMB
Item 2025 2024
1. Revenue 8796808970.58 9048237647.14
Including: Operating revenue 8796808970.58 9048237647.14
Interest revenue
Insurance premium income
Handling charge and
commission income
2. Costs and expenses 8683463546.28 8774598215.99
Including: Cost of sales 7241419082.79 7367550901.49
Interest costs
Handling charge and
commission expense
Surrenders
Net insurance claims paid
Net amount provided as
insurance contract reserve
Expenditure on policy
dividends
Reinsurance premium
expense
Taxes and surcharges 77041447.01 79762647.52
Selling expense 357637822.70 349356200.73
Administrative expense 481252499.96 484757347.38
R&D expense 539265201.03 548670366.07
Finance costs -13152507.21 -55499247.20
Including: Interest
19964126.6821576958.65
expense
Interest
38126946.1451401372.58
income
Add: Other income 99643539.11 111434984.12
Return on investment (“-” for loss) 61774334.25 65850578.68
152Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Including: Share of profit or loss
4506058.031112039.74
of joint ventures and associates
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 (“-”
922115.30-713704.94
for loss)
Credit impairment loss (“-” for
-12955005.06-29684596.41
loss)
Asset impairment loss (“-” for
-129947636.14-207929562.68
loss)
Asset disposal income (“-” for
138721265.11374492447.01
loss)
3. Operating profit (“-” for loss) 271504036.87 587089576.93
Add: Non-operating income 4777173.86 18436172.78
Less: Non-operating expense 4468274.46 4576737.83
4. Profit before tax (“-” for loss) 271812936.27 600949011.88
Less: Income tax expense 53095198.79 77463900.13
5. Net profit (“-” for net loss) 218717737.48 523485111.75
5.1 By operating continuity
5.1.1 Net profit from continuing
218717737.48523485111.75
operations (“-” for net loss)
5.1.2 Net profit from discontinued
operations (“-” for net loss)
5.2 By ownership
5.2.1 Net profit attributable to
214845871.24446184021.97
owners of the parent company
5.2.1 Net profit attributable to non-
3871866.2477301089.78
controlling interests
6. Other comprehensive income net of
231805308.5023135043.59
tax
Attributable to owners of the parent
232962505.6723402127.43
company
6.1 Items that will not be
233647447.6523712358.26
reclassified to profit or loss
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
233647447.6523712358.26
investments in other equity instruments
6.1.4 Changes in the fair value
arising from changes in own credit risk
153Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
6.1.5 Other
6.2 Items that will be reclassified to
-684941.98-310230.83
profit or loss
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- -684941.98 -310230.83
denominated financial statements
6.2.7 Other
Attributable to non-controlling
-1157197.17-267083.84
interests
7. Total comprehensive income 450523045.98 546620155.34
Attributable to owners of the parent
447808376.91469586149.40
company
Attributable to non-controlling
2714669.0777034005.94
interests
8. Earnings per share
8.1 Basic earnings per share 0.1399 0.2905
8.2 Diluted earnings per share 0.1398 0.2881
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 last year being RMB0.00.Legal representative: Yu Zhongmin
Chief Financial Officer: Zeng Xiaojing
Person-in-charge of the Company’s accounting organ: Li Yizhi
4. Income Statement of the Parent Company
Unit: RMB
Item 2025 2024
1. Operating revenue 2691595381.59 3245704296.00
Less: Cost of sales 2165374619.10 2510354864.55
Taxes and surcharges 27569918.98 30174651.89
Selling expense 226810507.98 228778506.21
Administrative expense 168416728.56 174979539.01
154Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
R&D expense 125194545.73 147257581.23
Finance costs -318189.91 -30483466.93
Including: Interest costs 2989988.17 420144.80
Interest revenue 8958784.70 15000167.87
Add: Other income 8842190.72 16862459.80
Return on investment (“-” for loss) 66785852.72 94498689.59
Including: Share of profit or loss
4506058.031112039.74
of joint ventures and associates
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 (“-”
134700.00-275250.00
for loss)
Credit impairment loss (“-” for
-3711120.82-20122940.28
loss)
Asset impairment loss (“-” for
-59118402.10-133838658.95
loss)
Asset disposal income (“-” for
12723964.27359998517.07
loss)
2. Operating profit (“-” for loss) 4204435.94 501765437.27
Add: Non-operating income 1123920.10 2218901.52
Less: Non-operating expense 1200032.15 1757649.60
3. Profit before tax (“-” for loss) 4128323.89 502226689.19
Less: Income tax expense 766488.83 80698250.13
4. Net profit (“-” for net loss) 3361835.06 421528439.06
4.1 Net profit from continuing
3361835.06421528439.06
operations (“-” for net loss)
4.2 Net profit from discontinued
operations (“-” for net loss)
5. Other comprehensive income net of
233647447.6523712358.26
tax
5.1 Items that will not be reclassified
233647447.6523712358.26
to profit or loss
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
233647447.6523712358.26
investments in other equity 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 to
155Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 237009282.71 445240797.32
7. Earnings per share
7.1 Basic earnings per share
7.2 Diluted earnings per share
Legal representative: Yu Zhongmin
Chief Financial Officer: Zeng Xiaojing
Person-in-charge of the Company’s accounting organ: Li Yizhi
5. Consolidated Cash Flow Statement
Unit: RMB
Item 2025 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities
8274573662.668471959981.11
and rendering of services
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
156Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Net increase in proceeds from
repurchase transactions
Net proceeds from acting trading of
securities
Tax rebates 155926771.53 191537811.87
Cash generated from other operating
231195529.81220938132.01
activities
Subtotal of cash generated from
8661695964.008884435924.99
operating activities
Payments for commodities and
5984900770.816057433876.86
services
Net increase in loans and advances to
customers
Net increase in deposits in the central
bank and in interbank loans granted
Payments for claims on original
insurance contracts
Net increase in interbank loans granted
Interest handling charges and
commissions paid
Policy dividends paid
Cash paid to and for employees 1533389989.77 1452338519.97
Taxes paid 421560956.42 357515353.88
Cash used in other operating activities 424694853.99 419032838.40
Subtotal of cash used in operating
8364546570.998286320589.11
activities
Net cash generated from/used in
297149393.01598115335.88
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 1008119175.12 630996025.00
Return on investment 25310204.47 35963824.31
Net proceeds from the disposal of
fixed assets intangible assets and other 115296010.39 392928847.83
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
23866370.01
activities
Subtotal of cash generated from
1172591759.991059888697.14
investing activities
Payments for the acquisition of fixed
assets intangible assets and other long- 487726259.24 368259788.54
lived assets
Payments for investments 301058273.00 1306010850.00
Net increase in pledged loans granted
Net payments for the acquisition of
101002225.68
subsidiaries and other business units
157Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Cash used in other investing activities 67560125.80
Subtotal of cash used in investing
856344658.041775272864.22
activities
Net cash generated from/used in
316247101.95-715384167.08
investing activities
3. Cash flows from financing activities:
Capital contributions received
Including: Capital contributions by
non-controlling interests to subsidiaries
Borrowings raised 379980252.56 438828726.86
Cash generated from other financing
693948.166317233.78
activities
Subtotal of cash generated from
380674200.72445145960.64
financing activities
Repayment of borrowings 444960615.75 524289910.93
Interest and dividends paid 236295473.08 237329833.00
Including: Dividends paid by
31998652.4335144021.09
subsidiaries to non-controlling interests
Cash used in other financing activities 172589043.17 7129048.59
Subtotal of cash used in financing
853845132.00768748792.52
activities
Net cash generated from/used in
-473170931.28-323602831.88
financing activities
4. Effect of foreign exchange rates
-5248284.3724000739.61
changes on cash and cash equivalents
5. Net increase in cash and cash
134977279.31-416870923.47
equivalents
Add: Cash and cash equivalents
2684382020.413101252943.88
beginning of the period
6. Cash and cash equivalents end of the
2819359299.722684382020.41
period
Legal representative: Yu Zhongmin
Chief Financial Officer: Zeng Xiaojing
Person-in-charge of the Company’s accounting organ: Li Yizhi
6. Cash Flow Statement of the Parent Company
Unit: RMB
Item 2025 2024
1. Cash flows from operating activities:
Proceeds from sale of commodities
2597062808.933127149264.78
and rendering of services
Tax rebates 76324515.59 97198208.30
Cash generated from other operating
151911146.5776841817.56
activities
Subtotal of cash generated from 2825298471.09 3301189290.64
158Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
operating activities
Payments for commodities and
2244031274.562300853714.93
services
Cash paid to and for employees 386551049.22 434395756.21
Taxes paid 211807236.08 143240367.24
Cash used in other operating activities 184082110.72 167831948.98
Subtotal of cash used in operating
3026471670.583046321787.36
activities
Net cash generated from/used in
-201173199.49254867503.28
operating activities
2. Cash flows from investing activities:
Proceeds from disinvestment 911919175.12 160000000.00
Return on investment 32122129.81 43963853.10
Net proceeds from the disposal of
fixed assets intangible assets and other 5339598.34 376617558.15
long-lived assets
Net proceeds from the disposal of
subsidiaries and other business units
Cash generated from other investing
7977291.6736354374.99
activities
Subtotal of cash generated from
957358194.94616935786.24
investing activities
Payments for the acquisition of fixed
assets intangible assets and other long- 134227346.87 78104450.17
lived assets
Payments for investments 227416600.00 784920000.00
Net payments for the acquisition of
subsidiaries and other business units
Cash used in other investing activities 55955959.02 363883363.61
Subtotal of cash used in investing
417599905.891226907813.78
activities
Net cash generated from/used in
539758289.05-609972027.54
investing activities
3. Cash flows from financing activities:
Capital contributions received
Borrowings raised
Cash generated from other financing
activities
Subtotal of cash generated from
financing activities
Repayment of borrowings
Interest and dividends paid 188202488.07 185077493.16
Cash used in other financing activities 4322494.32
Subtotal of cash used in financing
192524982.39185077493.16
activities
Net cash generated from/used in
-192524982.39-185077493.16
financing activities
159Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
4. Effect of foreign exchange rates
-2895505.0514253014.98
changes on cash and cash equivalents
5. Net increase in cash and cash
143164602.12-525929002.44
equivalents
Add: Cash and cash equivalents
1084153666.221610082668.66
beginning of the period
6. Cash and cash equivalents end of the
1227318268.341084153666.22
period
Legal representative: Yu Zhongmin
Chief Financial Officer: Zeng Xiaojing
Person-in-charge of the Company’s accounting organ: Li Yizhi
160Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
7. Consolidated Statements of Changes in Owners’ Equity
2025
Unit: RMB
2025
Equity attributable to owners of the parent company
Other equity
Item Other Gene Non- Totalinstruments Less:
Share Capital comprehe Specific Surplus ral Retained Oth controlling owners’
capital Prefer Perpet
Treasury Subtotal
Oth reserves nsive reserve reserves reser earnings er interests equity
red ual stock
er income ve
shares bonds
1.
Balance
1548778291433638216513834291478206150097536550461657430433592195710166500
as at the
30.0025.6644.1555.021.2022.9754.5705.2788.57093.84
end of the
prior year
Add:
Adjustme
nt for
change in
accountin
g policy
Adjustme
nt for
correction
of
previous
error
Other
2.
Balance 15487782 9143363 821651 3834291 478206 1500975 36550461 65743043 35921957 10166500
as at the 30.00 25.66 44.15 55.02 1.20 22.97 54.57 05.27 88.57 093.84
beginning
161Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
of the
year
3.
Increase/
decrease - - - - -
392606138053614260516194494296.9265010493
in the 13000000. 7081836 821651 1562817 134556
0.452.576.578.55period (“- 00 9.76 44.15 63.71 7.13” for
decrease)
3.1
Total
232962521484587447808372714669.0450523045
comprehe
05.671.246.917.98
nsive
income
3.2
Capital
----
increased 29018404. 27365178.
13000000.70818368216511653225.6
and 46 85
009.7644.151
reduced
by owners
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
162Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
payments
included
in
owners’
equity
----
3.2.429018404.27365178.
13000000.70818368216511653225.6
Other 46 85
009.7644.151
3.3
----
Profit 336183.5
184629571842933831998652.216292040
distributio 1
1.117.6043.03
n
3.3.1
Appropria
336183.5-
tion to
1336183.51
surplus
reserves
3.3.2
Appropria
tion to
general
reserve
3.3.3
Appropria
tion to - - - -
owners 18429338 18429338 31998652. 216292040
(or 7.60 7.60 43 .03
sharehold
ers)
3.3.4
Other
3.4
Transfers -
389244235031984
within 3892442
6.942.44
owners’ 69.38
equity
3.4.1
163Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
transferre
d to
retained
earnings
3.4.5
Other
comprehe
nsive -
389244235031984
income 3892442
6.942.44
transferre 69.38
d to
retained
earnings
164Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3.4.6
Other
3.5--
4759875.83414308.7
Specific 134556 1345567.1
85
reserve 7.13 3
3.5.1
Increase 192584 19258445. 12003232. 31261678.in the 45.96 96 07 03
period
3.5.2
20604020604013.7243356.127847369.
Used in
13.0909928
the period
3.6
Other
4.
Balance
1535778284351792271473343649189358140355822683482053596690010431510
as at the
30.0055.9091.314.0733.4297.1401.8485.55587.39
end of the
period
2024
Unit: RMB
2024
Equity attributable to owners of the parent company
Other equity
Item instruments Other Gene
Non- Total
Less:
Share Capital comprehe Specific Surplus ral Retained Oth controlling owners’
capital Prefer Perpet
Treasury Subtotal
Oth reserves nsive reserve reserves reser earnings er interests equity
red ual stock
er income ve
shares bonds
1.
Balance
1548778291433638216513600270121332107944634353083628544283485954697713974
as at the
30.0025.6644.1527.595.9279.0664.1108.1980.8689.05
end of the
prior year
165Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Add:
Adjustme
nt for
change in
accountin
g policy
Adjustme
nt for
correction
of
previous
error
Other
2.
Balance
as at the 15487782 9143363 821651 3600270 121332 1079446 34353083 62854428 34859546 97713974
beginning 30.00 25.66 44.15 27.59 5.92 79.06 64.11 08.19 80.86 89.05
of the
year
3.
Increase/
decrease
23402123568734215284219737792888614910624110395102604
in the
7.435.283.910.467.087.71.79period (“-” for
decrease)
3.1
Total
2340212446184024695861477034005.546620155
comprehe
7.431.979.4094.34
nsive
income
3.2
Capital 59612637. 59612637.increased 51 51
and
reduced
166Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
by owners
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
3.2.459612637.59612637.
Other 51 51
3.3
----
Profit 4215284
226446231842933835144021.219437408
distributio 3.91
1.517.6009.69
n
3.3.1
Appropria -
4215284
tion to 42152843.
3.91
surplus 91
reserves
3.3.2
Appropria
tion to
167Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
general
reserve
3.3.3
Appropria
tion to - - - -
owners 18429338 18429338 35144021. 219437408
(or 7.60 7.60 09 .69
sharehold
ers)
3.3.4
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
168Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3.4.4
Changes
in defined
benefit
schemes
transferre
d to
retained
earnings
3.4.5
Other
comprehe
nsive
income
transferre
d to
retained
earnings
3.4.6
Other
3.5
3568733568735.24738485.38307220.6
Specific
5.28853
reserve
3.5.1
Increase 189455 18945510. 11323527. 30269038.in the 10.32 32 74 06
period
3.5.2
15376715376775.6585042.321961817.
Used in
75.0404943
the period
3.6
Other
4.
Balance
1548778291433638216513834291478206150097536550461657430433592195710166500
as at the
30.0025.6644.1555.021.2022.9754.5705.2788.57093.84
end of the
period
169Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Legal representative: Yu Zhongmin 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 Parent Company
2025
Unit: RMB
2025
Other equity instruments
Item Less: OtherCapital Specific Surplus Retained Othe Total owners’
Share capital Preferre Perpetu Othe Treasury comprehensivreserves reserve reserves earnings r equity
d shares al bonds r stock e income
1. Balance as
1548778230.909058541.82165144.1383570431.3170252.8381401592.3019769843.6163583747.
at the end of
00445321214508
the 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 year
3. Increase/
decrease in - - - -
39260610.4the period (“- -13000000.00 69165144.1 82165144.1 155596821. 2647682.9 169052106.39 50068212.17
5
” for 5 5 73 4
decrease)
170Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3.1 Total
233647447.
comprehensi 3361835.06 237009282.71
65
ve income
3.2 Capital
--
increased and
-13000000.0069165144.182165144.1
reduced by
55
owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
owners’
equity
--
3.2.4
-13000000.0069165144.182165144.1
Other
55
3.3 Profit - -
336183.51
distribution 184629571.11 184293387.60
3.3.1
Appropriatio
336183.51-336183.51
n to surplus
reserves
3.3.2
Appropriatio - -
n to owners 184293387.60 184293387.60
(or
171Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
shareholders)
3.3.3
Other
3.4
Transfers -
38924426.9
within 389244269. 350319842.44
4
owners’ 38
equity
3.4.1
Increase in
capital (or
share capital)
from capital
reserves
3.4.2
Increase in
capital (or
share capital)
from surplus
reserves
3.4.3
Loss offset
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other - 38924426.9
comprehensi 389244269. 350319842.444
ve income 38
transferred to
172Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
retained
earnings
3.4.6
Other
3.5-
Specific 2647682.9 -2647682.94
reserve 4
3.5.1
6615668.0
Increase in 6615668.09
9
the period
3.5.2
9263351.0
Used in the 9263351.03
3
period
3.6 Other
4. Balance as
1535778230.839893397.227973609.420662202.3188821949.6213651959.
at the end of 522569.87
002959668425
the period
2024
Unit: RMB
2024
Other equity instruments
Item Less: OtherCapital Specific Surplus Retained Othe Total owners’
Share capital Preferre Perpetu Othe Treasury comprehensivreserves reserve reserves earnings r equity
d shares al bonds r stock e income
1. Balance as
1548778230.909058541.82165144.359858073.339248748.2824687635.5900363866.
at the end of 897781.74
00441506309029
the prior year
Add:
Adjustment
for change in
accounting
policy
173Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Adjustment
for correction
of previous
error
Other
adjustments
2. Balance as
at the 1548778230. 909058541. 82165144. 359858073. 339248748. 2824687635. 5900363866.
897781.74
beginning of 00 44 15 06 30 90 29
the year
3. Increase/
decrease in
23712358.22272471.042152843.9the period (“- 195082207.55 263219880.79
671
” for
decrease)
3.1 Total
23712358.2
comprehensi 421528439.06 445240797.32
ve income
3.2 Capital
increased and
reduced by
owners
3.2.1
Ordinary
shares
increased by
owners
3.2.2
Capital
increased by
holders of
other equity
instruments
3.2.3
Share-based
payments
included in
174Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
owners’
equity
3.2.4
Other
3.3 Profit 42152843.9 - -
distribution 1 226446231.51 184293387.60
3.3.1
Appropriatio 42152843.9
-42152843.91
n to surplus 1
reserves
3.3.2
Appropriatio
--
n to owners
184293387.60184293387.60
(or
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
175Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
by surplus
reserves
3.4.4
Changes in
defined
benefit
schemes
transferred to
retained
earnings
3.4.5
Other
comprehensi
ve income
transferred to
retained
earnings
3.4.6
Other
3.5
2272471.0
Specific 2272471.07
reserve
3.5.1
11325253.
Increase in 11325253.53
53
the period
3.5.2
9052782.4
Used in the 9052782.46
6
period
3.6 Other
4. Balance as
1548778230.909058541.82165144.383570431.3170252.8381401592.3019769843.6163583747.
at the end of
004415321214508
the period
Legal representative: Yu Zhongmin Chief Financial Officer: Zeng Xiaojing Person-in-charge of the Company’s accounting organ: Li Yizhi
176Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
III Company Profile
1. 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 million 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).
177Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Credibility code of the Company: 91440000190352575W.Legal representative: Yu Zhongmin
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.
2. Authorized issuer and date of approval of the financial report
These financial statements have been authorized for issue by the Board of Directors on April 15 2026.
3. Scope of the consolidated financial statements
The scope of the consolidated financial statements during the Reporting Period include Foshan Electrical and
Lighting Co. Ltd. 14 subsidiaries including 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 “ZhichengCompany”) FSL Zhida Electric Technology Co. Ltd (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 NationStarOptoelectronics Co. Ltd. (referred to as “NationStar Optoelectronics”) Foshan Sigma Venture Capital Co. Ltd.(referred to as “Sigma”) Fozhao Huaguang (Maoming) Technology Co. Ltd. (referred to as “Fozhao Huaguang”)
and Guangdong Airtrust Aviation Equipment Co. Ltd. (referred to as “Airtrust”) as well as 14 sub-subsidiaries
including Liuzhou Guige Lighting Technology Co. Ltd. (referred to as “Liuzhou Lighting”) Liuzhou Guige
Foreshine Technology Co. Ltd. (referred to as “Liuzhou Foreshine”) Chongqing Guinuo Lighting Technology
Co. Ltd. (referred to as “Chongqing Guinuo”) Qingdao Guige Lighting Technology Co. Ltd. (referred to as
“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.
178Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(“Hule Electric”) Foshan NationStar Electronic Manufacturing Co. Ltd. (referred to as “Guoxing Electronic”)
Foshan NationStar Semiconductor Co. Ltd. (referred to as “NationStar Semiconductor”) 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 “GaozhouNationStar”) and FSL (Thailand) Lighting Technology Co. Ltd. (referred to as “Thailand Company”).The Company had 28 subsidiaries included in the consolidation scope during the current period. See Notes
“IX Changes 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.
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.
179Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 bad debt The individual amount accounts for more than 10% of the account receivable or
provision separately accrued bad debt provision and the amount exceeds RMB10 million.Bad debt provision of accounts receivable
Individual amount accounts for more than 10% of the current reversal of bad debt
collected or reversed with significant amount
provision and the amount exceeds RMB10 million.in this year
Significant verification of accounts receivable The individual amount accounts for more than 10% of the account receivable or
in this year bad debt provision and the amount exceeds RMB10 million.The ending balance of an individual construction in progress accounts for more
Significant construction in progress
than 10% and the amount exceeds RMB50 million.
180Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Significant accounts payable/other payables The individual amount accounts for more than 10% of accounts payable over 1
over one year year/other payables and the amount exceeds RMB10 million.Significant cash flows generated from Cash flows of an individual investment accounts for more than 3% of the net assets
investment activities at the period-end and the amount exceeds RMB100 million.Minority shareholders hold more than 5% interest and any of the items of total
Significant non-wholly-owned subsidiary assets net assets operating revenues and net profits of the subsidiary accounts for
more than 10% of the corresponding items in the consolidated financial statements.The investment income generated from joint ventures or associated enterprises (The
Significant joint ventures or associated
loss is calculated in absolute terms) accounts for more than 10% of the net profit of
enterprises
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
181Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.
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
182Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
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
183Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
184Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
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:
* 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.* 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
185Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.* 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:
* 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.* Financial liabilities that arise when a transfer of a financial asset does not qualify for derecognition or
when the continuing involvement approach applies.* 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
186Foshan Electrical and Lighting Co. Ltd. Annual 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: a. the contractual right to
receive cash flows from the financial asset is terminated; b. 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
187Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
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.* Accounts receivable of expected credit losses withdrawn individually
Rationale for a single provision for expected
Objective evidence of impairment
credit losses
The impairment tests are conducted separately for accounts receivable individually
accrued. An impairment loss is recognized based on the difference between the
Individual accruals for expected credit losses
present value of future cash flows and their carrying amount and an expected credit
loss is recorded
* Accounts Receivable with Expected Credit Losses Provision Based on Credit Risk Portfolio
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
Business portfolio of General lighting auto lamps and other Prepare the comparative list between aging of accounts
general lighting and auto relevant business with the Company as the receivable and expected credit loss rate over the entire life
lamps parent and the subsidiary Liaowang Auto and calculate the expected credit loss by consulting
Lamp as the representative this portfolio historical experience in credit losses combining current
188Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
takes the aging of accounts receivable as situation and prediction for future economic situation.the credit risk characteristics
LED packaging components and other
Prepare the comparative list between aging of accounts
relevant business with the subsidiary
receivable and expected credit loss rate over the entire life
Business portfolio of LED NationStar Optoelectronics as the
and calculate the expected credit loss by consulting
packaging and components representative this portfolio takes the
historical experience in credit losses combining current
aging of accounts receivable as the credit
situation and prediction for future economic situation.risk characteristics
Internal business portfolio Related parties and internal transactions Other methods
Notes Receivable for which the Expected Credit Loss is withdrawn by Credit Risk Characteristics
Portfolio name Basis for portfolio recognition Determination method of expected credit losses
Portfolio 1 Bank acceptance bill Low credit risk with no provision for bad debts
Prepare the comparative list between aging of accounts
receivable and expected credit loss rate over the entire life
Portfolio 2 Trade acceptance and calculate the expected credit loss by consulting
historical experience in credit losses combining current
situation and prediction for future economic situation.The aging analyses are based on their date of entry into the accounts.Among portfolios expected credit losses accrued by aging analysis:
Expected credit loss rate
Aging Business portfolio of general lighting and Business portfolio of LED packaging and
auto lamps 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
189Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
Portfolio 1: Deposit security deposit Based on nature of accounts
Portfolio 2: Amounts from related parties Based on nature of accounts
Portfolio 3: Advances on behalf of others and 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.
14. Receivables 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 represented by
Portfolio 1: General lighting and lamps business the parent company and its subsidiary Liaowang Auto Lamp. This
portfolio portfolio uses the aging of accounts receivable as the credit risk
characteristic.
190Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
LED packaging components and other related businesses represented by
Portfolio 2: LED packaging and components business
subsidiary NationStar Optoelectronics. This portfolio uses the aging of
portfolio
accounts receivable as the credit risk characteristic
Portfolio 3: Internal business portfolio This portfolio involves related-party transactions and internal transactions
17. Inventory
(1) Classification of inventories
Inventories refer to the Company’s finished goods or commodities for sale held in daily activities 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.
(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
191Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.
192Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.
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
193Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
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.
194Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
Annual depreciation
Category Depreciation method Depreciable life Residual value rate
rate
Straight-line
Houses and buildings 3-38 years 1%-10% 31.67%-3.17%
depreciation method
Straight-line
Machinery equipment 2-11 years 1%-10% 47.50%-8.18%
depreciation method
Transportation Straight-line
5-10 years 1%-10% 19.00%-9.50%
equipment depreciation method
Straight-line
Electronic equipment 2-8 years 1%-10% 47.50%-11.88%
depreciation method
Straight-line
Other equipment 5 years 5%-10% 19.00%-18.00%
depreciation 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.
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
195Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
196Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
28. Oil and Gas Assets
Not applicable
29. Intangible Assets
(1) Pricing method of intangible assets
The Company initially measures the intangible assets at cost. For the acquired intangible assets the actual
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 useful life Amortization method
Land use right 20-50 years Duration of land use rights Method of line
Expected number of years of
Patent use right 5-20 years Method of line
benefit
Expected number of years of
Software 3-10 years Method of line
benefit
Expected number of years of
Trademark right 3-10 years Method of line
benefit
Expected number of years of
Other 3-10 years Method of line
benefit
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.
197Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.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.
198Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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.
199Foshan Electrical and Lighting Co. Ltd. Annual 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. Employee benefits
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.
(1) Accounting treatment of the short-term remuneration
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.
200Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(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.
34. Provisions
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 Preference Shares and Perpetual Bonds
Not applicable
37. Revenue
Disclosure of accounting policies adopted for revenue recognition and measurement by type of business
201Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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; 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.
202Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(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
203Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 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.
204Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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
205Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 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. Leases
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.
206Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
* 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.* 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
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.
207Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(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.
208Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
43. Changes in Main Accounting Policies and Estimates
(1) Change in accounting policies
□ Applicable □ Not applicable
Unit: RMB
Financial
statement
Amount
Content and reasons for the change in accounting policy line items
affected
significantly
affected
In December 2025 the Ministry of Finance issued the Notice on Issuing the Interpretation No. 19
of the Accounting Standards for Business Enterprises (C.K. [2025] No. 32) which stipulates the
following: "accounting treatment of compensating assets in business combinations not under
common control" "accounting treatment of related capital reserves when disposing of subsidiaries
acquired through business combinations under common control" "derecognition of financial None 0.00
liabilities settled using electronic payment systems" "assessment and related disclosure of the
contractual cash flow characteristics of financial assets" and "disclosure of equity instruments
designated as measured at fair value with changes in fair value recognized in other comprehensive
income". These have taken effect on January 1 2026.The Company adopted Interpretation No. 19 of the Accounting Standards for Business Enterprises
effective January 1 2026. This provision has no impact on the Company’s financial statements for the current
reporting period and does not involve retrospective adjustments to prior years.
(2) Changes in accounting estimates
□ Applicable□ Not applicable
(3) Adjustments to Financial Statement Items at the Beginning of the Year of the First Implementation of
the New Accounting Standards Implemented since 2025
□ Applicable□ Not applicable
44. Other information
None
VI. Taxes
1. Main Taxes and Tax Rates
Category of taxes Tax basis Tax rate
Sales volume from goods selling or
VAT 3% 6% 9% 13%
taxable service
Urban maintenance and construction tax Turnover tax payable 7% 5%
Enterprise income tax Taxable income Tax-free 15% 20% 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 15%
209Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Hortilite Company Liaowang Auto Lamp Chongqing Guinuo
Liuzhou Lighting Liuzhou Foreshine Qingdao Lighting
NationStar Optoelectronics NationStar Semiconductor
Fenghua Semiconductor Hainan Technology Hule Electric
NationStarGermany (note 1) and Xinxiang Company
Thailand Company Tax-free
Airtrust 20%
Indonesia Liaowang (note 2) 22%
Other subsidiaries 25%
Note 1: NationStar Germany a wholly-owned subsidiary of the subsidiary Hortilite is registered in Germany. In
accordance with local tax policies it is subject to corporate income tax at a tax rate of 15%.Note 2: Liaowang Indonesia a wholly-owned subsidiary of the subsidiary Liaowang Auto Lamp is registered in
Indonesia. In accordance with local tax policies it is subject to corporate income tax at a tax rate of 22%.
2. Tax Preference
(1) The Company passed the review as an Innovation Company in December 2023 and obtained the
Innovation Company certificate (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 as an Innovation Company in December 2025 and obtained
the Innovation Company certificate (Certificate No.: GR202544000734). According to the relevant regulations
Zhida Company is entitled to a reduced enterprise income tax rate of 15% for three years starting from 2025.
(3) Subsidiary Chanchang Company passed the review as an “Innovation Company” in November 2024 and
obtained the Innovation Company certificate (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 Hortilite Company passed the review as an Innovation Company in December 2025 and
obtained the Innovation Company certificate (Certificate No. GR202544000737). According to relevant
regulations Hortilite Company is entitled to a reduced enterprise income tax rate of 15% for three years starting
from 2025.
(5) Subsidiary Liaowang Auto Lamp passed the review as an Innovation Company in December 2023 and
obtained the Innovation Company certificate (Certificate No. GR202345001098). According to relevant
regulations Liaowang Auto Lamp is entitled to a reduced enterprise income tax rate of 15% for three years
starting from 2023.
210Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(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 as an
Innovation Company in December 2025 and obtained the Innovation Company certificate (Certificate No.:
GR202545000255). According to relevant regulations Liuzhou Lighting will pay enterprise income tax at a
reduced rate of 15% for three years starting from 2025.
(8) Liuzhou Foreshine a wholly-owned subsidiary of Liaowang Auto Lamp passed the review as an
Innovation Company in November 2024 and the Innovation Company certificate (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] No. 5) enterprises recognized as Innovation Companies 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 review as an
Innovation Company in December 2025 and obtained the Innovation Company certificate (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 2025.
(10) Subsidiary NationStar Optoelectronics passed the review as an Innovation Company in December 2023
and obtained the Innovation Company certificate (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 review
as an Innovation Company in November 2024 and obtained the Innovation Company certificate (Certificate No.:
211Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 review
as an Innovation Company in December 2024 and obtained the Innovation Company certificate (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.
(13) Subsidiary Hainan Technology was recognized as an Innovation Company in October 2024 and
obtained the Innovation Company 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) Hule Electric a majority-owned subsidiary of Hainan Technology was recognized as an Innovation
Company in December 2023 and obtained the Innovation Company certificate (Certificate No.:
GR202333010552). According to relevant regulations Hule Electric is entitled to pay enterprise income tax at a
reduced rate of 15% for three years starting from 2023.
(15) Subsidiary Xinxiang Company was recognized as an Innovation Company in October 2024 and obtained
the Innovation Company 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) The subsidiary Airtrust is a “Small Low-Profit Enterprise”. According to relevant regulations the
policy of calculating taxable income at a reduced rate of 25% and paying corporate income tax at a rate of 20%
for a “Small Low-Profit Enterprise” will continue until December 31 2027. From January 1 2023 to December
31 2027 resource tax (excluding water resource tax) urban maintenance and construction tax property tax urban
land use tax stamp duty (excluding securities transaction stamp duty) cultivated land occupation tax andeducation surcharge and local education surcharge will be levied at half the rate for a “Small Low-ProfitEnterprise”.
(17) Thailand Company a subsidiary of subsidiary Hortilite Company is registered in Thailand. According
to local tax policies profits up to 300000 Thai Baht are exempt from taxation.
3. Other information
Taxes have been paid in accordance with the relevant provisions of the tax law.
212Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
VII Notes to Main Items of Consolidated Financial Statements
1. Monetary Assets
Unit: RMB
Item Closing balance Opening balance
Cash on hand 33030.81 40535.66
Bank deposits 1498436755.78 1221721793.26
Other monetary assets (note 1) 647818448.10 512794818.03
Money deposited in finance company
1304152847.361462165277.45
(note 2)
To-be-received interest (note 3) 5302009.12 12405012.91
Total 3455743091.17 3209127437.31
Of which: Total amount deposited
66844431.3232471593.74
overseas
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 third-party payment platforms
of which the security deposits for notes and performance bonds and pre-sale house payments were restricted
assets (see “31. Assets with Restricted Ownership or Right of Use” in Note “VII Notes to Main Items ofConsolidate Financial Statements”).Note 2: Deposits placed with finance companies referred 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 was not recognized as cash and cash equivalents.
2. Trading Financial Assets
Unit: RMB
Item Closing balance Opening balance
Financial assets at fair value through
2768997.3343649820.47
profit or loss
Including:
Wealth management products 41661005.56
Equity instrument investments 2768997.33 1988814.91
Total 2768997.33 43649820.47
3. Derivative Financial Assets
None.
213Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
4. Notes Receivable
(1) Notes Receivable Disclosed by Category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 628480403.75 928954818.05
Commercial acceptance bill 104354748.40 68326252.16
Total 732835152.15 997281070.21
(2) Disclosure by the Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Categor Provisio
y Carrying
Provisio Carrying
Percenta n
Amount Amount amount
Percenta n
Amount Amount amount
ge (%) percenta ge (%) percenta
ge (%) ge (%)
Notes
receivab
le with
bad debt
provisio
n on an
individu
al basis
Notes
receivab
le with
bad debt 734965 212988 732835100.00% 0.29% 998684 140310 997281100.00% 0.14%
provisio 033.34 1.19 152.15 179.44 9.23 070.21
n on a
portfolio
basis
Of
which:
Bank
628480628480928954928954
acceptan 85.51% 0.00 0.00% 93.02% 0.00 0.00%
403.75403.75818.05818.05
ce bill
Commer
cial 106484 212988 104354 697293 140310 683262
14.49%2.00%6.98%2.01%
acceptan 629.59 1.19 748.40 61.39 9.23 52.16
ce bill
734965212988732835998684140310997281
Total 100.00% 0.29% 100.00% 0.14%
033.341.19152.15179.449.23070.21
Bad debt provision on a portfolio basis: RMB2129881.19 .Unit: RMB
Closing balance
Name
Gross amount Bad debt provision Provision percentage (%)
214Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Within 1 year 734965033.34 2129881.19 0.29%
Total 734965033.34 2129881.19
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.If bad debt provision for notes receivable is provided for under the general model of expected credit losses:
□ Applicable□ Not applicable
(3) Bad Debt Provision Provided for Recovered or Reversed during the Period
Bad debt provision during the period:
Unit: RMB
Changes for the period
Opening
Category
balance Recovery or
Closing balance
Provision Write-off Others
reversal
Notes
receivable with
bad debt 1403109.23 726771.96 2129881.19
provision on a
portfolio basis
Total 1403109.23 726771.96 2129881.19
Of which bad debt provision with a significant recovered or reversed amount during the period:
□ Applicable□ Not applicable
(4) Notes Receivable Pledged by the Company as at the End of the Period
Unit: RMB
Item Amount pledged as at the end of the period
Bank acceptance bill 467791280.20
Total 467791280.20
(5) Notes Receivable Endorsed or Discounted by the Company That Were not yet Due as at the Balance
Sheet Date
Unit: RMB
Derecognized amount as at the end of the Amount not derecognized as at the end
Item
period of the period
Bank acceptance bill 76009751.15 72268153.90
Commercial acceptance bill 18860.00
Total 76009751.15 72287013.90
(6) Notes Receivable Written off during the Period
None.
215Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
5. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Gross amount at period-end Gross amount at period-beginning
Within 1 year (including 1 year) 2052722441.79 1958007653.74
1 to 2 years 118636510.81 160745414.76
2 to 3 years 60271415.93 75845969.51
Over 3 years 140365035.54 116132806.59
3 to 4 years 51225665.54 74345304.65
4 to 5 years 54131540.70 8949462.00
Over 5 years 35007829.30 32838039.94
Total 2371995404.07 2310731844.60
(2) Disclosure by the Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Category Provisio Carrying Provisio Carrying
Percenta n Percenta n
Amount Amount amount Amount Amount amount
ge (%) percenta ge (%) percenta
ge (%) ge (%)
Account
s
receivabl
e with
108762757562330062146052728716731806
bad debt 4.59% 69.65% 6.32% 49.89%
538.9078.5260.38307.6842.1865.50
provisio
n on an
individu
al basis
Account
s
receivabl
e with
226323122913214031216467112192205248
bad debt 95.41% 5.43% 93.68% 5.18%
2865.17841.779023.409536.92910.466626.46
provisio
n on a
portfolio
basis
Of
which:
Business
portfolio
of
148940106212138318147049975269137296
general 62.79% 7.13% 63.64% 6.63%
1022.52902.468120.062300.8807.725393.16
lighting
and auto
lamps
216Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Business
portfolio
of LED
773831167009757130694187146660679521
packagin 32.62% 2.16% 30.04% 2.11%
842.6539.31903.34236.0402.74233.30
g and
compone
nts
237199198670217332231073185064212566
Total 100.00% 8.38% 100.00% 8.01%
5404.07120.295283.781844.60552.647291.96
Bad debt provision on an individual basis: RMB75756278.52 .There were no significant accounts receivable with bad debt provision on an individual basis during the period
or in other periods.Bad debt provision on a portfolio basis: RMB122913841.77 .Unit: RMB
Closing balance
Name
Gross amount Bad debt provision Provision percentage (%)
Business portfolio of general
1489401022.52106212902.467.13%
lighting and auto lamps
Business portfolio of LED
773831842.6516700939.312.16%
packaging and components
Total 2263232865.17 122913841.77
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.If bad debt provision for accounts receivable is provided for under the general model of expected credit losses:
□ Applicable□ Not applicable
(3) Bad Debt Provision Provided for Recovered or Reversed during the Period
Bad debt provision during the period:
Unit: RMB
Changes for the period
Opening Reversal of Closing
Category
balance Provisio write-offs from Recovery or reversal Write-off Others balance
n
prior periods
Accounts
receivabl
e with
bad debt 728716 132199 526858. 757562
9808429.97
provision 42.18 24.85 54 78.52
on an
individua
l basis
Accounts -112192 126820 88054.5 122913
receivabl 187306910.46 51.93 2 841.77
e with 6.10
217Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
bad debt
provision
on a
portfolio
basis
-
185064259019614913.198670
Total 9808429.97 187306
552.6476.7806120.29
6.10
Of which bad debt provision with a significant recovered or reversed amount during the period: None
(4) Accounts Receivable Written off during the Period
Unit: RMB
Item Amount written off
Accounts receivable written off 678372.63
Of which significant accounts receivable written off: Not applicable
Notes to the write-off:
RMB 678372.63 of accounts receivable has been written off with the bad debt provision of
RMB614913.06 and the approval procedures have been performed in accordance with the Company’s bad
debt management system.
(5) Top 5 Balances of Accounts Receivable and Contract Assets by Debtor as at the End of the Period
Unit: RMB
Closing balance of
Proportion to total bad debt provision
Closing balance of
Closing balance of closing balance of for accounts
Closing balance of accounts
Name of the entity accounts accounts receivable and
contract assets receivable and
receivable receivable and impairment
contract assets
contract assets provision for
contract assets
No. 1 174261678.54 174261678.54 7.34% 5233019.85
No. 2 115055684.93 115055684.93 4.85% 3451670.55
No. 3 103839000.18 103839000.18 4.37% 3129719.53
No. 4 85495151.51 85495151.51 3.60% 2564854.55
No. 5 59104212.11 59104212.11 2.49% 1888421.38
Total 537755727.27 537755727.27 22.65% 16267685.86
6. Contract Assets
(1) List of Contract Assets
Unit: RMB
Closing balance Opening balance
Item Bad debt Carrying Bad debt Carrying
Gross amount Gross amount
provision amount provision amount
Contract assets 2253362.60 1802690.08 450672.52 3380043.90 1690021.95 1690021.95
Total 2253362.60 1802690.08 450672.52 3380043.90 1690021.95 1690021.95
218Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) Amount and Reasons for Material Changes in Carrying Amount during the Reporting Period
No material changes occurred in the carrying amount during the Reporting Period.
(3) Disclosure by the Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Categor Provisio
y Carrying
Provisio Carrying
Percenta n Percenta n
Amount Amount amount Amount Amount amount
ge (%) percenta ge (%) percenta
ge (%) ge (%)
Bad debt
provisio
n on an
individu
al basis
Bad debt
provisio
225336180269450672.338004169002169002
n on a 100.00% 80.00% 100.00% 50.00%
2.600.08523.901.951.95
portfolio
basis
Of
which:
Business
portfolio
of
225336180269450672.338004169002169002
general 100.00% 80.00% 100.00% 50.00%
2.600.08523.901.951.95
lighting
and auto
lamps
225336180269450672.338004169002169002
Total 100.00% 80.00% 100.00% 50.00%
2.600.08523.901.951.95
Bad debt provision on a portfolio basis: RMB1802690.08 .Unit: RMB
Closing balance
Name
Gross amount Bad debt provision Provision percentage (%)
Business portfolio of general
2253362.601802690.0880.00%
lighting and auto lamps
Total 2253362.60 1802690.08
A description of the basis for determining the portfolio:
See Note V-16. Contract Assets.Bad debt provision provided for under the general model of expected credit losses:
□ Applicable□ Not applicable
(4) Bad Debt Provision Provided for Recovered or Reversed during the Period
Unit: RMB
219Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Recovered or reversed Charged off/written off
Item Provision Reason
during the period during the period
Impairment provision
112668.13
for contract assets
Total 112668.13 ——
Of which bad debt provision with a significant recovered or reversed amount during the period: None
(5) Contract Assets Written off during the Period
None.
7. Accounts Receivable Financing
(1) Accounts Receivable Financing Disclosed by Category
Unit: RMB
Item Closing balance Opening balance
Bank acceptance bill 415949788.02 352694866.89
Total 415949788.02 352694866.89
(2) Disclosure by the Bad Debt Provision Method
None.Basis for classification into stages and provision rates of bad debt provision
See Note V-13. Accounts Receivable.Explanation of significant changes in the gross amount of accounts receivable financing where the bad debt
provision has changed during the period: None.
(3) Bad Debt Provision Provided for Recovered or Reversed during the Period
None.
(4) Accounts Receivable Financing Pledged by the Company as at the End of the Period
Unit: RMB
Item Amount pledged as at the end of the period
Bank acceptance bill 7000000.00
Total 7000000.00
(5) Accounts Receivable Financing Endorsed or Discounted by the Company That Were not yet Due as at
the Balance Sheet Date
Unit: RMB
Derecognized amount as at the end of the Amount not derecognized as at the end
Item
period of the period
Bank acceptance bill 570237010.86
Total 570237010.86
220Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(6) Accounts Receivable Financing Written off during the Period
None.
(7) Movements in Accounts Receivable Financing and Changes in Fair Value during the Period
None.
(8) Other Notes
None.
8. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 82678537.89 70524265.25
Total 82678537.89 70524265.25
(1) Interest Receivable
None.
(2) Dividend Receivable
None.
(3) Other Receivables
1) Other Receivables Disclosed by Category of Nature
Unit: RMB
Nature Gross amount at period-end Gross amount at period-beginning
Other transactions 80310603.33 77640342.04
Value-added tax (VAT) export rebates 20284110.73 5974168.41
Performance guarantee deposits 16916339.82 25244600.82
Rent and utilities 2229668.90 1314614.82
Employee loans and petty cash 1881995.33 3138997.42
Total 121622718.11 113312723.51
2) Disclosure by Aging
Unit: RMB
Aging Gross amount at period-end Gross amount at period-beginning
Within 1 year (including 1 year) 50304035.90 51110555.10
1 to 2 years 17170952.38 22389136.32
2 to 3 years 18350276.26 6564915.91
Over 3 years 35797453.57 33248116.18
3 to 4 years 6424579.68 1383400.01
4 to 5 years 1371309.73 4236860.23
Over 5 years 28001564.16 27627855.94
221Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Total 121622718.11 113312723.51
3) Disclosure by the Bad Debt Provision Method
□ Applicable □ Not applicable
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Category Provisio Carrying Provisio Carrying
Percenta n Percenta n
Amount Amount amount Amount Amount amount
ge (%) percenta ge (%) percenta
ge (%) ge (%)
Bad debt
provisio
573009279071293938304090304090
n on an 47.11% 48.70% 26.84% 100.00%
94.2891.0303.2596.0496.04
individu
al basis
Bad debt
provisio
643217110369532847829036123793705242
n on a 52.89% 17.16% 73.16% 14.93%
23.8389.1934.6427.4762.2265.25
portfolio
basis
Of
which:
Deposits
and 169163 790873 900760 252446 793682 173077
13.92%46.75%22.28%31.44%
guarante 39.82 8.97 0.85 00.82 6.08 74.74
es
Amount
s due
250858956601.155198407040104447302592
from/to 2.06% 38.13% 3.59% 25.66%
6.94355.593.149.044.10
related
parties
Advance
448967217164427251535886339805501905
s and 36.91% 4.84% 47.29% 6.34%
97.078.8748.2023.517.1066.41
others
121622389441826785113312427884705242
Total 100.00% 32.02% 100.00% 37.76%
718.1180.2237.89723.5158.2665.25
Bad debt provision on an individual basis: RMB27907191.03
Unit: RMB
Opening balance Closing balance
Name Bad debt Bad debt Provision Basis for
Gross amount Gross amount
provision provision percentage (%) provision
Wuxi Yixin Recovery of the
Optoelectronics amount is
20000000.0020000000.0020000000.0020000000.00100.00%
Technology considered
Co. Ltd. unlikely.Based on
Industrial and litigation in the
Commercial period a bad
15883375.00476501.253.00%
Bank of China debt provision
Foshan Branch is made on an
individual
222Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
basis.Based on
litigation in the
Infore Robotics period a bad
& Automation 14419514.95 432585.45 3.00% debt provision
Co. Ltd. is made on an
individual
basis.Total 20000000.00 20000000.00 50302889.95 20909086.70
Bad debt provision on a portfolio basis: RMB11036989.19
Unit: RMB
Closing balance
Name
Gross amount Bad debt provision Provision percentage (%)
Deposits and guarantees 16916339.82 7908738.97 46.75%
Amounts due from/to related
2508586.94956601.3538.13%
parties
Advances and others 44896797.07 2171648.87 4.84%
Total 64321723.83 11036989.19
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.Bad debt provision provided for under the general model of expected credit losses:
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt provision Lifetime expected Lifetime expected12-month expected Total
credit losses (not credit losses (credit-
credit loss
credit-impaired) impaired)
Balance as at January
1522771.9010819530.4730446155.8942788458.26
12025
Balance as at January
1 2025 in the period
Provided for during the
-24631.11-1301717.741189405.27-136943.58
period
Reversed during the
3728370.133728370.13
period
Written off during the
15070.0015070.00
period
Other changes 30558.97 5546.70 36105.67
Balance as at
1528699.769508289.4327907191.0338944180.22
December 31 2025
Basis for classification into stages and provision rates of bad debt provision
See Note V-13. Accounts Receivable.Explanation of material changes in gross amount arising from movements in loss allowance during the period
□ Applicable□ Not applicable
223Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
4) Bad Debt Provision Provided for Recovered or Reversed during the Period
Bad debt provision during the period:
Unit: RMB
Changes for the period
Opening
Category Recovery or Charge off or Closing balancebalance Provision Others
reversal write off
Other
42788458.26-136943.583728370.1315070.0036105.6738944180.22
Receivables
Total 42788458.26 -136943.58 3728370.13 15070.00 36105.67 38944180.22
Of which bad debt provision with a significant recovered or reversed amount during the period: None.
5) Other Receivables Written off during the Period
Unit: RMB
Item Amount written off
Other receivables 15070.00
6) Top 5 Balances of Other Receivables by Debtor as at the End of the Period
Unit: RMB
Proportion to total
closing balance of Closing balance of
Name of the entity Nature Closing balance Aging
other bad debt provision
receivables %
Guangdong
Provincial Tax Value-added tax
Service State (VAT) export 20284110.73 Within 1 year 16.68% 608523.32
Taxation rebates
Administration
Wuxi Yixin
Optoelectronics
Other transactions 20000000.00 Over 5 years 16.44% 20000000.00
Technology Co.Ltd.Industrial and
Commercial Bank
Other transactions 15883375.00 Within 3 years 13.06% 476501.25
of China Foshan
Branch
Infore Robotics &
Automation Co. Other transactions 14419514.95 Within 2 years 11.86% 432585.45
Ltd.Foshan Chancheng
District Land Other transactions 6000000.00 Within 1 year 4.93% 180000.00
Reserve Center
Total 76587000.68 62.97% 21697610.02
7) Other receivables Presented due to Centralized Management of Funds
None.
224Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
9. Prepayments
(1) Prepayments Disclosed by Aging
Unit: RMB
Closing balance Opening balance
Aging
Amount Proportion Amount Proportion
Within 1 year 42210473.83 84.78% 18587036.85 76.11%
1 to 2 years 3276728.21 6.58% 2101361.07 8.61%
2 to 3 years 1563537.85 3.14% 1640558.43 6.72%
Over 3 years 2739309.42 5.50% 2090822.77 8.56%
Total 49790049.31 24419779.12
Notes of the reasons of the prepayment aging over 1 year with significant amount but failed settled in
time: None.
(2) Top 5 Balances of Prepayments by Debtor as at the End of the Period
Unit: RMB
Relationship with the Proportion to total
Name of the entity Closing balance Aging
Company prepayments
No. 1 Non-Related Party 17773459.56 Within 1 year 35.70%
No. 2 Non-Related Party 3278898.34 Within 1 year 6.59%
No. 3 Non-Related Party 1954490.08 Within 1 year 3.93%
No. 4 Non-Related Party 1573835.50 Within 1 year 3.16%
No. 5 Non-Related Party 1192416.43 Within 1 year 2.39%
Total 25773099.91 51.77%
10. Inventories
Whether the Company needs to comply with the disclosure requirements for the real estate industry
No
(1) Category of Inventories
Unit: RMB
Closing balance Opening balance
Provisions for Provisions for
inventory inventory
impairments or impairments or
Item impairment Carrying impairment Carrying
Gross amount Gross amount
provisions for amount provisions for amount
contract contract
performance performance
costs costs
Raw materials 355222010.08 17408072.98 337813937.10 314930694.77 22535048.55 292395646.22
Goods in
254192102.97254192102.97229665213.27229665213.27
process
Inventory 1439828181. 1269394382. 1249130700. 1122784657.
170433798.55126346042.26
goods 08 53 18 92
225Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Goods in transit 217149231.66 16800564.57 200348667.09 291148176.11 27816444.67 263331731.44
Semi-finished
97109458.642061225.7495048232.90103638782.422492313.51101146468.91
goods
Low-value
2032676.872032676.871515044.741515044.74
consumables
Others 4830653.19 4830653.19 14660598.88 14660598.88
2370364314.2163660652.2204689210.2025499361.
Total 206703661.84 179189848.99
49653738
(2) Data Resources Recognized as Inventories
None.
(3) Provisions for Inventory Impairments and Impairment Provisions for Contract Performance Costs
Unit: RMB
Increase during the period Decrease during the period
Opening
Item Reversal or Closing balancebalance Provision Others Others
charge off
Raw materials 22535048.55 929520.30 6056495.87 17408072.98
Inventory
126346042.2670093704.4926005948.20170433798.55
goods
Goods in transit 27816444.67 17804558.49 28820438.59 16800564.57
Semi-finished
2492313.51193801.79624889.562061225.74
goods
Total 179189848.99 89021585.07 61507772.22 206703661.84
Note: Of the amount reversed or written off during the period the reversal amount was RMB5589615.56 and
the charge-off amount was RMB55918156.66.Provisions for inventory impairments on a portfolio basis
None.Criteria for making provisions for inventory impairments on a portfolio basis
See Note V-17. Inventory.
(4) Capitalized Borrowing Cost in the Closing Balance of Inventories
None.
(5) Notes to the Amount of Contract Performance Costs Amortized for the Period
None.
11. Assets held for sale
Other notes:
The assets held for sale at the beginning of the period were disposed of during the period. For detailsplease refer to 8. Other Information – “Matter regarding the expropriation of land and above-ground housing of
226Foshan Electrical and Lighting Co. Ltd. Annual Report 2025Nanjing Fozhao” in Note XVIII “Other Significant Events to this Note.
12. Current Portion of Non-current Assets
Unit: RMB
Item Closing balance Opening balance
Current portion of other investments in
429862721.67
debt obligations
Total 429862721.67
(1) Current Portion of Investments in Debt Obligations
□Applicable□Not applicable
(2) Current Portion of Other Investments in Debt Obligations
□Applicable □Not applicable
1) List of Current Portion of Other Investments in Debt Obligations
Unit: RMB
Accumulat
ed
Change in Accumulat impairment
Opening Accrued fair value Closing ed changes provisionItem interest Cost in fair recognized Notesbalance in the balance
value in otherperiod comprehen
sive
income
Large-
denominati
on
4176344612228252.4298627240000000
certificates
9.18491.670.00
of deposit
acquired in
2023
4176344612228252.4298627240000000
Total
9.18491.670.00
2) Significant Current Portion of Other Investments in Debt Obligations as at the End of the Period
Unit: RMB
Actual interest rate Overdue principal
Item Par value Coupon rate Maturity date Closing Opening Closing Opening
balance balance balance balance
Large-
denominatio
n certificates 100000000. January 6
3.30%3.30%
of deposit 00 2026
acquired in
2023
Large-
denominatio 50000000.0 August 31
2.90%2.90%
n certificates 0 2026
of deposit
227Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
acquired in
2023
Large-
denominatio
n certificates 100000000. November 3
2.90%2.90%
of deposit 00 2026
acquired in
2023
Large-
denominatio
n certificates 150000000. December 1
2.95%2.95%
of deposit 00 2026
acquired in
2023
400000000.
Total
00
3) Impairment Provision
None.
4) Status of Current Portion of Other Investments in Debt Obligations Written-off during the Period
None.
13. Other Current Assets
Unit: RMB
Item Closing balance Opening balance
Value-added tax (VAT) input tax to be
180724871.99125298564.45
verified or deducted
Time deposits 35013164.98 130975312.95
Prepaid corporate income tax 4349157.57 2524237.91
Others 1499186.49 2486661.54
Total 221586381.03 261284776.85
14. Investments in debt obligations
None.
15. Other Investments in Debt Obligations
(1) List of Other Investments in Debt Obligations
Unit: RMB
Accumula
ted
impairme
Change in Accumula
Opening Interest fair value Closing ted
nt
Item Accrued provision
balance interest
adjustmen Cost changes Notes
t in the balance in fair recognize
period value d in othercomprehe
nsive
income
Large- The
denomina 4176344 closing
tion 69.18 balance
certificate was
228Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
s of reclassifie
deposit d to
acquired current
in 2023 portion of
non-
current
assets
Large-
denomina
tion
certificate 7223883 1769529 7200836 6870000
s of 94.54 9.77 94.31 00.00
deposit
acquired
in 2024
1140022176952972008366870000
Total
863.729.7794.3100.00
Changes in the impairment provision for other investments in debt obligations during the period:
None.
(2) Significant Other Investments in Debt Obligations as at the End of the Period
Unit: RMB
Closing balance Opening balance
Item Par Coupon Actualinterest Maturity Overdue Par Coupon
Actual
value rate date principal value rate interest
Maturity Overdue
rate rate date principal
Large-
denomin
ation
certificat
es of
212000 February 212000 February
deposit 2.75% 2.75% 2.75% 2.75%
000.00 5 2027 000.00issued 5 2027
by Bank
of
Guangzh
ou
Large-
denomin
ation
certificat
es of 550000 February 550000 February
2.60%2.60%2.60%2.60%
deposit 00.00 5 2027 00.00 5 2027
issued
by China
Everbrig
ht Bank
Large-
denomin
ation
certificat 143000 February 143000 February
2.60%2.60%2.60%2.60%
es of 000.00 5 2027 000.00 5 2027
deposit
issued
by Hua
229Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Xia
Bank
Large-
denomin
ation
certificat
es of 620000 February 820000 February
2.60%2.60%2.60%2.60%
deposit 00.00 5 2027 00.00 5 2027
issued
by China
Merchan
ts Bank
Large-
denomin
ation
certificat
es of 150000 March 8 150000 March 8
2.60%2.60%2.60%2.60%
deposit 000.00 2027 000.00 2027
issued
by Hua
Xia
Bank
Large-
denomin
ation
certificat
es of 350000 March 350000 March
2.60%2.60%2.60%2.60%
deposit 00.00 29 2027 00.00 29 2027
issued
by China
Merchan
ts Bank
Large-
denomin
ation
certificat
es of 300000 April 30 300000 April 30
2.60%2.60%2.60%2.60%
deposit 00.00 2027 00.00 2027
issued
by China
Merchan
ts Bank
Large-
denomin
ation
certificat
es of 100000 January
3.30%3.30%
deposit 000.00 6 2026
issued
by China
Everbrig
ht Bank
Large-
denomin
ation 500000 August
2.90%2.90%
certificat 00.00 31 2026
es of
deposit
230Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
issued
by Bank
of
Commu
nications
Large-
denomin
ation
certificat Novemb
es of 100000
2.90% 2.90% er 3
deposit 000.00
issued 2026
by China
Everbrig
ht Bank
Large-
denomin
ation
certificat
es of Decemb
150000
deposit 2.95% 2.95% er 1
000.00
issued 2026
by Bank
of
Guangzh
ou
687000110700
Total
000.000000.00
(3) Impairment Provision
None.Basis for classification into stages and provision rates of bad debt provision
See Note V-17. Other Investments in Debt Obligations.
(4) Other Investments in Debt Obligations Written off during the Period
None.
16. Investments in other equity instruments
Unit: RMB
Cumulative Cumulative
Reasons for
gain loss
Gains Losses designatingrecognized recognized
recognized recognized Dividend as at fairin other in other
income value
Closing Opening in other in other comprehen comprehen
Item comprehen comprehen recognized through
balance balance sive sive sive sive in the other
income in income in income as income as period comprehen
the period the period at the end at the end sive
of the of the
income
period period
Non-
Xiamen
42101150 32350202 97509475. 26805389 17207554. trading
Bank Co.
0.10 4.60 50 3.27 50 equity
Ltd.instruments
231Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Guangdong Non-
Rising 30000000. 30000000. trading
477925.41
Finance 00 00 equity
Co. Ltd. instruments
Guangdong
Rising Hun
dred
Counties
Thousand
Towns and
Ten
Thousand
Villages
High
Non-
Quality
11200000. trading
Developme
00 equity
nt
instruments
Project Ind
ustrial
Investment
Fund of
Funds
Partnership
Enterprise
(Limited
Partnership
)
Beijing
Glory
Alliance
Semicondu Non-
ctor 6082543.8 6082543.8 trading
32499.41
Lighting 0 0 equity
Industry instruments
Investment
Center
(L.P.)
Foshan
Nanhai
District
United Non-
Guangdong 3000000.0 3000000.0 trading
New Light 0 0 equity
Source instruments
Industry
Innovation
Center
China Non-
Guangfa trading
500000.00500000.00110338.26
Bank Co. equity
Ltd. instruments
Non-
Gotion
36357904 17736987 45793443 trading
High-tech 957765.10
5.02 4.68 4.57 equity
Co. Ltd.instruments
4717940472666361274879357259883218786082.
Total
3.903.420.187.8468
232Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Non-trading equity instrument investment in the period disclosed by items
Unit: RMB
Amount Reasons for
Reasons for
reclassified reclassification
designating as
Dividend from other from other
Item income Accumulative Accumulative
at fair value
gains losses comprehensive comprehensiverecognized through otherincome to income to
comprehensive
retained retained
income
earnings earnings
Not satisfied
with the
Gotion High- Disposal of
957765.10 457934434.57 389244269.38 condition of
tech Co. Ltd. shares
trading equity
instrument
Not satisfied
with the
Xiamen Bank
17207554.50 268053893.27 condition of N/A
Co. Ltd.trading equity
instrument
Not satisfied
with the
China Guangfa
110338.26 condition of N/A
Bank Co. Ltd.trading equity
instrument
Beijing Glory
Alliance Not satisfied
Semiconductor with the
Lighting 32499.41 1538068.73 condition of N/A
Industry trading equity
Investment instrument
Center (L.P.)
Not satisfied
Guangdong with the
Rising Finance 477925.41 1122913.74 condition of N/A
Co. Ltd. trading equity
instrument
Total 18786082.68 728649310.31 389244269.38
Other notes:
NationStar Optoelectronics is a limited partner of Beijing Glory Alliance Semiconductor Lighting Industry
Investment Center (Limited Partnership). As at December 31 2025 NationStar Optoelectronics has received a
total distribution of principal and interest amounting to RMB 5455524.93 from Beijing Glory Alliance
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.
17. Long-term Receivables
None.
233Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
18. Long-term Equity Investment
Unit: RMB
Changes for the period
Openi Openi Gains Closin Closin
ng ng and Adjust Cash g g
balanc balanc losses mentof bonus balanc balanc
Investe e e of Additi Reduc recogn other Chang
Provisi
or e e of
e (carryi impair onal ed ized es of on for (carryi impair
ng ment invest invest under
compr
ehensi other
profits Others
impair
ment ment the equity annou ng ment
amoun provisi mentequity ve nced to amoun provisi
t) on metho income issue
t) on
d
I. Joint ventures
II. Associated enterprises
Shenz
hen
Primat
ronix 18030 18480
4506
(Nanh 0594. 6652.
058.03
o) 89 92
Electro
nics
Ltd.
1803018480
Subtot 4506
0594.6652.
al 058.03
8992
1803018480
4506
Total 0594. 6652.
058.03
8992
The recoverable amount is determined based on fair value less costs of disposal
□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable□ Not applicable
Reasons for significant inconsistency between the above-mentioned information and the information adopted in
the impairment tests in the prior year or external information
None.Reasons for significant inconsistency between the information adopted in the impairment tests in the prior year
and the actual situation in the year
None.
19. Other Non-current Financial Assets
None.
234Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
20. Investment Property
(1) Investment Property Measured at Cost
□ Applicable □ Not applicable
Unit: RMB
Construction in
Item Houses and buildings Land use right Total
progress
I. Gross amount
1. Opening
822894661.9361486213.33884380875.26
balance
2. Increase during
68868462.6368868462.63
the period
(1)
336268.00336268.00
Purchased
(2)
Transferred from
inventories/fixed 68532194.63 68532194.63
assets/construction in
progress
(3) Increase
from business
combination
3. Decrease
11573978.2311573978.23
during the period
(1) Disposal 539504.00 539504.00
(2) Other
11034474.2311034474.23
transfer
4. Closing balance 880189146.33 61486213.33 941675359.66
II. Accumulative
depreciation and
accumulative
amortization
1.Opening balance 77917683.10 12976146.14 90893829.24
2. Increase during
39003821.981830072.1540833894.13
the period
(1) Provision
32501038.211830072.1534331110.36
or amortization
(2)
Transferred from
inventories/fixed 6502783.77 6502783.77
assets/construction in
progress
3. Decrease
634402.58634402.58
during the period
(1) Disposal 512528.80 512528.80
(2) Other
121873.78121873.78
transfer
4. Closing balance 116287102.50 14806218.29 131093320.79
235Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
III. Impairment
provisions
1.Opening balance
2. Increase during
the period
(1) Provision
3. Decrease
during the period
(1) Disposal
(2) Other
transfer
4. Closing balance
IV. Carrying amount
1. Closing
763902043.8346679995.04810582038.87
carrying amount
2. Opening
744976978.8348510067.19793487046.02
carrying amount
The recoverable amount is determined based on fair value less costs of disposal
□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable□ Not applicable
Reasons for significant inconsistency between the above-mentioned information and the information adopted in
the impairment tests in the prior year or external information
None.Reasons for significant inconsistency between the information adopted in the impairment tests in the prior year
and the actual situation in the year
None.
(2) Investment Property Measured at Fair Value
□ Applicable□ Not applicable
(3) Projects Converted to Investment Properties and Measured at Fair Value
None.
(4) Investment Property without Certificate of Title
As at December 31 2025 the relevant property certificates for the LED Workshopand 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
236Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Company’s normal operations.
21. Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Fixed assets 3584415229.00 3646134662.80
Disposal of fixed assets 2502347.90 459543.24
Total 3586917576.90 3646594206.04
(1) List of Fixed Assets
Unit: RMB
Houses and Machinery Transportation Electronic
Item Other (note:1) Total
buildings equipment equipment equipment
I. Gross
amount:
1. Opening 2446766384. 5356958204. 8027338334.
41393466.7682849592.2699370685.94
balance 14 94 04
2. Increase
during the 162710579.03 296537906.23 1448042.84 10604643.93 6973657.82 478274829.85
period
(1) Purchased 57785214.04 52320961.09 1433635.76 8952237.21 1701813.55 122193861.65
(2) Transferred
from
104375734.33242635348.8814407.081504578.825229384.58353759453.69
construction in
progress
(3) Increase
from business 147626.90 147626.90
combination
(4) Others (note
549630.661581596.26201.0042459.692173887.61
2)
3. Decrease
during the 20236241.56 79289604.35 929514.34 952640.51 2408207.81 103816208.57
period
(1) Disposal or
76546169.14916711.13481039.472232640.4880176560.22
retirement
(2) Equipment
2528083.90165811.972693895.87
transformation
(3) Others
20236241.56215351.3112803.21471601.049755.3620945752.48
(Note 2)
4. Closing 2589240721. 5574206506. 8401796955.
41911995.2692501595.68103936135.95
balance 61 82 32
II.Accumulative
depreciation
1.Opening 3482012719. 4372821401.
722456586.9629416209.2659344753.7279591132.16
balance 28 38
2. Increase
during the 112311955.30 380929125.82 3390452.40 10321969.28 5389281.66 512342784.46
period
(1) Provision 112190081.52 380521890.37 3390452.40 10227644.47 5348944.95 511679013.71
237Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) Increase
from business 94134.01 94134.01
combination
(3) Others
121873.78407235.45190.8040336.71569636.74
(Note 2)
3. Decrease
during the 6572801.98 72635534.66 881014.74 905596.49 2346656.24 83341604.11
period
(1) Disposal or
71796402.27868339.57457556.552172844.5975295142.98
retirement
(2) Equipment
712225.98164153.85876379.83
transformation
(3) Others (note
6572801.98126906.4112675.17448039.949657.807170081.30
2)
4. Closing 3790306310. 4801822581.
828195740.2831925646.9268761126.5182633757.58
balance 44 73
III. Impairment
provisions
1.Opening
8375870.553454.522944.798382269.86
balance
2. Increase
during the 6580100.00 2096092.05 12499.13 15532.03 887.46 8705110.67
period
(1) Provision 6580100.00 2096092.05 12499.13 15532.03 887.46 8705110.67
3. Decrease
during the 1502488.98 12499.13 13247.83 1528235.94
period
(1) Disposal or
1502488.9812499.1313247.831528235.94
retirement
4. Closing
6580100.008969473.625738.723832.2515559144.59
balance
IV. Carrying
amount
1. Closing
1754464881.1774930722.3584415229.
carrying 9986348.34 23734730.45 21298546.12
337600
amount
2. Opening
1724309797.1866569615.3646134662.
carrying 11977257.50 23501384.02 19776608.99
181180
amount
Note 1: Fixed assets-Others refer to the Cooling system and wastewater treatment plant of NationStar
Optoelectronics and tools equipment instruments and meters of Liaowang Auto Lamp etc.Note 2: Other increases or decreases in gross amount and accumulated depreciation are mainly due to the
addition of houses and buildings and building accessories the transfer between investment property and fixed
assets arsing from a change in the use of buildings during the period and reversal of input VAT during the
period.
238Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) Temporarily Idle Fixed Assets
None.
(3) Fixed Assets Leased out under Operating Lease
None.
(4) Fixed Assets without Certificate of Title
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 December 31 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
The recoverable amount is determined based on fair value less costs of disposal
□ Applicable □ Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable □ Not applicable
In 2025 the Company recognized a total impairment provision for fixed assets of RMB8705110.67 . The
Company performed impairment tests on certain machinery and equipment that had become severely worn due
to prolonged use or had been rendered idle and obsolete as a result of product upgrades as well as on buildings
whose market value had declined due to a drop in real estate market prices. Among these for the machinery and
equipment the fair value and costs of disposal were determined by reference to the recovery rate from recent
disposals of similar assets and the recoverable amount was estimated resulting in an impairment. For the
buildings the fair value and costs of disposal were determined by reference to market transaction prices in the
relevant regions and the recoverable amount was estimated resulting in an impairment. The recoverable
amount was determined as the higher of the fair value less costs of disposal and the present value of estimated
future cash flows of the relevant asset groups. Accordingly the Company provided for an impairment loss of
239Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
RMB8705110.67 ...Reasons for significant inconsistency between the above-mentioned information and the information adopted in
the impairment tests in the prior year or external information
None.Reasons for significant inconsistency between the information adopted in the impairment tests in the prior year
and the actual situation in the year
None.
(6) Disposal of Fixed Assets
Unit: RMB
Item Closing balance Opening balance
Machinery equipment 2502347.90 459543.24
Total 2502347.90 459543.24
22. Construction in progress
Unit: RMB
Item Closing balance Opening balance
Construction in progress 223949659.06 263601705.89
Total 223949659.06 263601705.89
(1) List of Construction in Progress
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
provision amount provision amount
Construction in
225544478.201594819.14223949659.06265196525.031594819.14263601705.89
progress
Total 225544478.20 1594819.14 223949659.06 265196525.03 1594819.14 263601705.89
(2) Changes in Significant Construction in Progress during the Period
Unit: RMB
Of
Cum
whic Intere
Trans ulativ
Cum h: st
ferre Other e
Incre ulativ Capit capit
d to decre proje Proje
Open ase Closi e alize alizat
fixed ases ct ct
Item Budg ing durin ng capit d ionassets durin inves progr Funding source
et balan g the balan alize intere rate
durin g the tment ess
ce perio ce d st for
g the perio as % (%)
d intere durin the
perio d of the
st g the perio
d budg
perio d (%)
et
d
The 1714 2038 1756 2179 1416 1474
6456 Self-financing and
Proje 546 1131 7726 1521 6143 0721 50.21 50.21
10.61 borrowing
ct of 700.0 2.45 1.98 4.65 .00 6.78
240Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
the 0
Geel
y
Indus
trial
Park
1714
20381756217914161474
5466456
Total 1131 7726 1521 6143 0721
700.010.61
2.451.984.65.006.78
0
Note: The other decreases during the period were due to the transfer to long-term prepaid expenses.
(3) Impairment Provisions for Construction in Progress for the Period
None.
(4) Impairment Test of Construction in Progress
□ Applicable□ Not applicable
(5) Engineering Materials
None.
23. Productive Living Assets
(1) Productive Living Assets Measured at Cost
□ Applicable□ Not applicable
(2) Impairment Test of Productive Living Assets Measured at Cost
□ Applicable□ Not applicable
(3) Productive Living Assets Measured at Fair Value
□ Applicable□ Not applicable
24. Oil and Gas Assets
□ Applicable□ Not applicable
25. Right-of-use Assets
(1) List of Right-of-use Assets
Unit: RMB
Item Houses and buildings Machinery equipment Others Total
I. Gross amount
1. Opening
31539171.101096398.9675471.7032711041.76
balance
2. Increase during
13681057.0613681057.06
the period
(1) Leased in 13681057.06 13681057.06
3. Decrease 5340062.93 75471.70 5415534.63
241Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
during the period
(1) Disposal 5340062.93 75471.70 5415534.63
4.Closing balance 39880165.23 1096398.96 40976564.19
II. Accumulative
depreciation
1. Opening
9940040.61383976.6444025.1710368042.42
balance
2. Increase during
11591782.82548199.4731446.5312171428.82
the period
(1) Provision 11591782.82 548199.47 31446.53 12171428.82
3. Decrease
5258979.4475471.705334451.14
during the period
(1) Disposal 5258979.44 75471.70 5334451.14
4.Closing balance 16272843.99 932176.11 17205020.10
III. Impairment
provisions
1. Opening
balance
2. Increase during
the period
(1) Provision
3. Decrease
during the period
(1) Disposal
4. Closing balance
IV. Carrying amount
1. Closing
23607321.24164222.8523771544.09
carrying amount
2. Opening
21599130.49712422.3231446.5322342999.34
carrying amount
(2) Impairment Test of Right-of-use Assets
□ Applicable□ Not applicable
26. Intangible Assets
(1) List of Intangible Assets
Unit: RMB
Land use Non-patent
Item Patent Software Trademark Others (note) Total
right technology
I. Gross
amount
1. Opening 369823060. 38099524.8 82321557.7 27020000.0 520734143.
3470000.00
balance 63 6 8 0 27
2. Increase
3242500.00 18511432.1 21753932.1during the
44
period
(1)291900.0018511432.118803332.1
242Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Purchased 4 4
(2)
Developed
internally
(3) Increase
from
2950600.002950600.00
business
combination
3. Decrease
during the 16641.51 16641.51
period
(1) Disposal 15094.34 15094.34
(2) Others 1547.17 1547.17
4. Closing 369823060. 41325383.3 100832989. 27020000.0 542471433.
3470000.00
balance 63 5 92 0 90
II.Accumulativ
e
depreciation
1. Opening 72311396.3 25018656.5 33546324.7 132146794.
1125833.35144583.35
balance 0 0 8 28
2. Increase
13496125.426805920.4
during the 7925442.54 2335352.42 2702000.02 347000.02
11
period
13496125.426805920.4
(1) Provision 7925442.54 2335352.42 2702000.02 347000.02
11
(2) Increase
from
business
combination
3. Decrease
during the 6721.45 6721.45
period
(1) Disposal 6540.92 6540.92
(2) Others 180.53 180.53
4. Closing 80236838.8 27347287.4 47042450.1 158945993.
3827833.37491583.37
balance 4 7 9 24
III.Impairment
provisions
1. Opening
balance
2. Increase
during the
period
(1) Provision
3. Decrease
during the
period
(1) Disposal
4. Closing
243Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
balance
IV. Carrying
amount
1. Closing
289586221.13978095.853790539.723192166.6383525440.
carrying 2978416.63
7983366
amount
2. Opening
297511664.13080868.348775233.025894166.6388587348.
carrying 3325416.65
3360599
amount
Note: Intangible assets--Others refers to the software copyrights.The proportion of intangible assets formed from the internal R&D of the Company as at the end of the period to
the closing balance of intangible assets was 0.00%.
(2) Data Resources Recognized as Intangible Assets
□ Applicable□ Not applicable
(3) Land Use Right without Certificate of Title
None.
(4) Impairment Test of Intangible Assets
□ Applicable□ Not applicable
27. Goodwill
(1) Gross Amount of Goodwill
Unit: RMB
Name of the Increase during the period Decrease during the period
invested units
Opening
or events Formed by Closing balance
balance
generating business Others Disposed Others
goodwill combination
Nanning
Liaowang Auto 16211469.82 16211469.82
Lamp Co. Ltd.Guangdong
Airtrust
Aviation 125552.07 125552.07
Equipment Co.Ltd.Foshan
NationStar
405620123.64405620123.64
Optoelectronics
Co. Ltd.Total 421831593.46 125552.07 421957145.53
Note: As for the M&A of NationStar Optoelectronics in 2014 by Guangdong Electronics Information
Industry Group Ltd. the wholly-owned subsidiary of Guangdong Rising Holdings Group Co. Ltd. the
244Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
difference between the fair value and the net assets attributable to the shareholders of the listed company on the
date of acquisition of NationStar Optoelectronics formed goodwill of RMB405620123.64.
(2) Impairment Provisions for Goodwill
Unit: RMB
Name of the Increase during the period Decrease during the period
invested units
Opening
or events Closing balance
balance
generating Provision Others Disposal Others
goodwill
Foshan
NationStar
142393052.6834217937.33176610990.01
Optoelectronics
Co. Ltd.Total 142393052.68 34217937.33 176610990.01
(3) Information on the Asset Group or Combination of Asset Groups to which the Goodwill Belongs
Composition and basis of the
asset group or combination of Operating segment to which it Whether it is consistent with
Name
asset groups to which it belongs and basis that of the prior years
belongs
Nanning Liaowang Auto General lighting and auto
Yes
Lamp Co. Ltd. Non-current operating assets lamps products
Guangdong Airtrust Aviation and goodwill allocated based General lighting and auto
N/A
Equipment Co. Ltd. on the smallest identifiable lamps products
group of assets that generates LED packaging and
Foshan NationStar independent cash inflows. component products other Yes
Optoelectronics Co. Ltd.products
(4) Determination of the Recoverable Amount
The recoverable amount is determined based on fair value less costs of disposal
□ Applicable □ Not applicable
Unit: RMB
Method for
Basis for
Carrying Recoverable Impairment determining
Item Key parameters determining
amount amount amount fair value and
key parameters
disposal costs
Average
Foshan trading price
NationStar 696620492.61 520009502.60 176610990.01 Market for the 30 note 1
Optoelectronics approach trading days
Co. Ltd. preceding the
valuation date
Total 696620492.61 520009502.60 176610990.01
Note 1: Note 1: The recoverable amount of the NationStar Optoelectronics asset group is determined as the
higher of the fair value less costs of disposal and the present value of estimated future cash flows. NationStar
Optoelectronics is a listed company on the SME Board of the Shenzhen Stock Exchange. For the purpose of this
245Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
valuation the fair value is determined based on the average trading price for the 30 trading days preceding the
valuation date and the costs of disposal are determined based on transaction costs and related taxes and fees
associated with the disposal of the asset.The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable □ Not applicable
Unit: RMB
Basis of
Key Key
determining
Length of the parameters parameters
Carrying Recoverable Impairment the key
Item forecast for the for the
amount amount amount parameters of
period forecast terminal
the terminal
period period
period
Based on a
prudent
basis the
revenue
assumption
Revenue
Nanning Revenue for the
growth rate:
Liaowang 577791233. 588728107. growth rate: terminal
5 years 5% to 6.5%;
Auto Lamp 64 44 0%; discount period
discount rate:
Co. Ltd. rate: 10.82% remains
10.82%
stable at the
level of the
final year of
the forecast
period.Based on a
prudent
basis the
revenue
Revenue assumption
Guangdong
growth rate: Revenue for the
Airtrust
10% to growth rate: terminal
Aviation 1935863.14 2403630.00 5 years
469%; 0%; discount period
Equipment
discount rate: rate: 10.58% remains
Co. Ltd.
10.58% stable at the
level of the
final year of
the forecast
period.
579727096.591131737.
Total
7844
Reasons for significant inconsistency between the above-mentioned information and the information adopted in
the impairment tests in the prior year or external information
None.Reasons for significant inconsistency between the information adopted in the impairment tests in the prior year
and the actual situation in the year
246Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
None.
(5) Completion of Commitments to Results and Corresponding Goodwill Impairment
When goodwill is formed there is a commitment to the results and the reporting period or the period preceding
the reporting period is within the commitment period
□ Applicable□ Not applicable
28. Long-term Prepaid Expense
Unit: RMB
Increase during the Amortization
Item Opening balance Other decreases Closing balance
period during the period
Mold 180708464.33 171371792.66 71738341.53 31793647.02 248548268.44
Expense on
maintenance and 64783900.72 39987703.85 30007497.26 1723.46 74762383.85
decoration
Boarding box 313010.00 483185.63 185567.32 610628.31
Others 7219120.77 9595152.67 4797133.56 12017139.88
Total 253024495.82 221437834.81 106728539.67 31795370.48 335938420.48
Other notes:
Other decreases of mold represent disposals of mold.
29. Deferred Income Tax Assets/Deferred Income Tax Liabilities
(1) Deferred Income Tax Assets before Offsetting
Unit: RMB
Closing balance Opening balance
Item Deductible temporary Deferred income tax Deductible temporary Deferred income tax
difference assets difference assets
Provision for 455575694.14 69542275.28 437165619.65 66540210.84
impairment of assets
Unrealized profit of 25371871.73 3805780.74 67232648.57 10084897.28
internal transactions
Deductible loss 210552472.38 33948090.76 205026280.47 33375483.69
Depreciation of fixed 38958013.64 5843702.05 45661228.34 6849184.25
assets
Accrued liabilities 17991357.40 2698703.61 27430683.82 4114602.59
Change in fair value of 331319.45 49697.92 636322.31 95448.35
trading financial assets
Estimated cost 76653774.22 12908097.81 59384034.04 8907605.11
Lease liabilities and 82428921.05 15368236.16 34868832.74 5980792.80
others
Total 907863424.01 144164584.33 877405649.94 135948224.91
(2) Deferred Income Tax Liabilities before Offsetting
Unit: RMB
Closing balance Opening balance
Item
Taxable temporary Deferred income tax Taxable temporary Deferred income tax
247Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
difference liabilities difference liabilities
Assets assessment
appreciation from
business consolidation 140027029.47 21134372.57 151028108.51 22654216.26
not under the same
control
Changes in fair value
of other investments in 262203893.26 39330583.99 445258977.65 66788846.65
equity instruments
Changes in the fair
value of trading 1369911.68 205486.75 736537.65 110480.65
financial assets
One-off depreciation of 564657876.65 84698681.50 615396814.10 92309522.12
fixed assets
Right-of-use assets and 24465203.89 4827490.65 22342999.38 4058203.61
others
Total 992723914.95 150196615.46 1234763437.29 185921269.29
(3) Deferred Income Tax Assets or Liabilities Presented on a Net Basis after Offsetting
Unit: RMB
Offsetting amount Offsetting amount
Net deferred income Net deferred tax assets
between deferred between deferred
tax assets or liabilities or liabilities as at the
Item income tax assets and income tax assets and
as at the end of the beginning of the period
liabilities as at the end liabilities as at the
period after offsetting after offsetting
of the period beginning of the period
Deferred income tax
144164584.33135948224.91
assets
Deferred income tax
150196615.46185921269.29
liabilities
(4) List of Unrecognized Deferred Income Tax Assets
None.
(5) Deductible Losses of Unrecognized Deferred Income Tax Assets will Expire in the Following Years
None.
30. Other Non-current Assets
Unit: RMB
Closing balance Opening balance
Item Impairment Carrying Impairment Carrying
Gross amount Gross amount
provision amount provision amount
Contract assets 501901.93 75862.82 426039.11 389288.95 20492.17 368796.78
Long-term
assets to be 198202153.88 198202153.88 103788056.44 103788056.44
disposed (note)
Advance
payment for
long-term 6992221.25 1635100.00 5357121.25 36085714.00 36085714.00
assets
acquisition
Advance 99361501.47 99361501.47 59359531.60 59359531.60
248Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
payment for
equipment and
project
Prepayments
for equity 10000000.00 10000000.00
acquisition
Others 4367681.40 4367681.40 1163686.77 1163686.77
Total 309425459.93 1710962.82 307714497.11 210786277.76 10020492.17 200765785.59
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 Gross Carrying Type of Gross Carrying Type of
Restriction Restriction
amount amount restriction amount amount restriction
Note Note
deposits deposits
bond bond
Monetary 63108178 63108178 Restricted 51234040 51234040 Restricted
deposits deposits
assets 2.33 2.33 use 3.99 3.99 use
pre-sale of pre-sale of
properties properties
etc. etc.Pledge of Pledge of
note pool note pool
Pledged Pledged
notes notes
endorsed or endorsed or
Notes 54007829 54007829 receivable 95190908 95190908 receivable
discounted discounted
receivable 4.10 4.10 endorsed or 2.20 2.20 endorsed or
but not but not
discounted discounted
matured matured
but not but not
matured matured
Related Related
Fixed 34816101 19842784 party 34816101 21197710 party
Mortgaged Mortgaged
assets 6.79 1.71 mortgage 6.79 0.96 mortgage
guarantees guarantees
Related Related
Intangible 15551408. 10030658. party 15551408. 10341686. party
Mortgaged Mortgaged
assets 00 70 mortgage 00 87 mortgage
guarantees guarantees
Accounts
7000000.0 7000000.0 Pledge of 25328943. 25328943. Pledge of
receivable Pledged Pledged
0 0 note pool 24 24 note pool
financing
Other
6658273.0 6658273.0 Frozen
current Frozen
0 0 funds
assets
Other non-
3528951.2 3528951.2 Frozen Frozen
current Frozen 2931.37 2931.37 Frozen
3 3 funds funds
assets
Accounts
receivable
Accounts 1050000.0
945000.00 Pledged transferred
receivable 0
but not yet
due
Investment 10330904 10330904 Frozen Frozen
249Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
s in other 1.10 1.10 large-
debt denominati
obligations on
certificates
of deposit
15531097139775081956602818152091
Total
25.4501.0726.6989.73
32. Short-term Borrowings
(1) Breakdown of Short-term Borrowings
Unit: RMB
Item Closing balance Opening balance
Pledged loans 0.00 39850000.00
Mortgage loans 8000000.00 28000000.00
Credit loans 625462091.12 234995981.93
Acceptance bill discount 1542591.80 4282836.39
Interest from short-term borrowings 10391.94 12329.17
Total 635015074.86 307141147.49
Notes to classification of short-term borrowings:
1.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. As at December 31 2025 the carrying amount of fixed assets pledged as collateral for secured short-
term borrowings was RMB4634012.09.
3. The short-term borrowings as at the end of the Reporting Period included credit loans arising fromsupplier financing arrangements. For details please refer to “Note VII-79 -(7)Notes on Other SignificantActivities – Supplier Financing Arrangements”.
(2) Overdue Short-term Borrowings
None.
33. Trading Financial Liabilities
Unit: RMB
Item Closing balance Opening balance
Trading financial liabilities 275250.00
Of which:
Others 275250.00
Total 275250.00
34. Derivative Financial Liabilities
None.
250Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
35. Notes Payable
Unit: RMB
Category Closing balance Opening balance
Bank acceptance bill 2165892938.76 1930784817.62
letter of credit 13177505.65
Total 2179070444.41 1930784817.62
The total amount of notes payable that are due but unpaid amounted to RMB0.00 as at the end of the period.
36. Accounts Payable
(1) List of Accounts Payable
Unit: RMB
Item Closing balance Opening balance
Accounts payable 2443871780.95 2781965096.70
Total 2443871780.95 2781965096.70
(2) Significant Accounts Payable Aged over One Year or Overdue
Unit: RMB
Item Closing balance Unpaid/Un-carry-over reason
Unit A 43054646.76 It has not reached the settlement period
Total 43054646.76
(3) Whether There Are any Overdue and Outstanding Payments to Small and Medium-sized Enterprises
(SMEs)
Whether the Company is a large enterprise
□ Yes □ No
Whether there are any overdue and outstanding payments to small and medium-sized enterprises (SMEs)
□ Yes□ No
37. Other Payables
Unit: RMB
Item Closing balance Opening balance
Other payables 372152039.73 495717050.97
Total 372152039.73 495717050.97
(1) Interest Payable
None.
(2) Dividends Payable
None.
251Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(3) Other Payables
1) Other Payables Disclosed by Category of Nature
Unit: RMB
Item Closing balance Opening balance
Transactions 148822484.44 208777778.90
Performance bond 86126189.35 96583554.73
Relevant expense of sales 70427822.25 87551768.43
Payments for demolition 2071772.00 34898417.30
Payment for equity transfer 16366572.00
Others 64703771.69 51538959.61
Total 372152039.73 495717050.97
2) Significant Other Payable Aged over One Year or Overdue
Unit: RMB
Item Closing balance Unpaid/Un-carry-over reason
Unit A 67046577.48 It has not reached the settlement period
Unit B 53974917.16 It has not reached the settlement period
Total 121021494.64
38. Advances from Customer
(1) List of Advances from Customers
Unit: RMB
Item Closing balance Opening balance
Advances from customers 328004.34 163623.85
Land reserve payment 13367850.30
Total 328004.34 13531474.15
(2) Significant Advances from Customers Aged over One Year or Overdue
None.
39. Contract Liabilities
Unit: RMB
Item Closing balance Opening balance
Advances on sales 140787246.73 119506301.48
Total 140787246.73 119506301.48
40. Employee Benefits Payable
(1) List of Employee Benefits Payable
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
period period
I. Short-term salary 200892219.93 1356777771.57 1395083301.86 162586689.64
II. Post-employment
benefit-defined 1620912.77 142743326.46 142618682.23 1745557.00
contribution plans
III. Termination 12137955.76 7454366.97 16675573.73 2916749.00
252Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
benefits
Total 214651088.46 1506975465.00 1554377557.82 167248995.64
(2) List of Short-term Salary
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
period period
1. Salary bonus
197310106.141178738227.111216797938.45159250394.80
allowance subsidy
2. Employee welfare 39061.65 65310067.70 65311038.58 38090.77
3. Social insurance 662261.81 56361308.58 56333057.50 690512.89
Of which:
Medical insurance 566202.62 50785958.83 50763711.52 588449.93
premiums
Work-related injury
96059.195575349.755569345.98102062.96
insurance
4. Housing fund 509881.17 44453941.88 44383624.34 580198.71
5. Labor union budget
and employee 2370909.16 11205927.79 11549344.48 2027492.47
education budget
6. Other short-term
708298.51708298.51
salary
Total 200892219.93 1356777771.57 1395083301.86 162586689.64
(3) List of Defined Contribution Plans
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
period period
1. Basic pension
1165716.90131027535.17131020940.781172311.29
benefits
2. Unemployment
37636.785437306.405435367.5239575.66
insurance
3. Annuity 417559.09 6278484.89 6162373.93 533670.05
Total 1620912.77 142743326.46 142618682.23 1745557.00
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
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 Closing balance Opening balance
253Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
VAT 27647834.28 20024672.48
Corporate income tax 52061425.04 70202563.56
Personal income tax 3516287.76 10342055.07
Urban maintenance and construction tax 1761355.03 1622938.34
Property tax 2562362.23 1631337.72
Stamp tax 2024051.39 1757727.88
Education surcharge 754321.85 695000.38
Local education surcharge 497930.79 458383.14
Land use tax 318266.40 313705.15
Others 37716.36 36776.67
Total 91181551.13 107085160.39
42. Liabilities Held for sale
None.
43. Current Portion of Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Current portion of long-term borrowings 120586240.76 112386714.93
Current portion of lease liabilities 10710023.24 8188073.88
Total 131296264.00 120574788.81
44. Other Current Liabilities
Unit: RMB
Item Closing balance Opening balance
Output VAT to be carried forward 8449283.63 7910035.80
Reversed notes that are endorsed and
71787013.90368196176.60
undue
Cloud Credit endorsed but not yet
1050000.001050000.00
terminated recognition
Total 81286297.53 377156212.40
45. Long-term Borrowings
(1) Breakdown of Long-term Borrowings
Unit: RMB
Item Closing balance Opening balance
Mortgage loans 20935917.42 39680861.51
Credit borrowings 292565399.12 295287783.96
Less: Current portion of long-term
120586240.76112386714.93
borrowings
Total 192915075.78 222581930.54
46. Bonds Payable
None.
254Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
47. Lease Liabilities
Unit: RMB
Item Closing balance Opening balance
Lease liabilities 28245829.94 25185296.61
Less: Unrecognized financing expenses 2181082.68 1973229.62
Less: current portion of lease liabilities 10710023.24 8188073.88
Total 15354724.02 15023993.11
Other notes:
The maturity analysis of lease liabilities based on the undiscounted remaining contractual obligations is as
follows:
Unit: RMB
Item Closing balance Opening balance
Within 1 year 11428580.01 8906841.70
1-2 years 9295051.12 8815320.49
3-5 years 5261795.21 4519959.28
Over 5 years 2260403.60 2943175.14
Total 28245829.94 25185296.61
48. Long-term Payables
None.
49. Long-term Employee Benefits Payable
None.
50. Provisions
Unit: RMB
Item Closing balance Opening balance Cause
Pending litigation 2110312.84 Contract disputes
Product quality assurance 17991357.40
Provision for product quality
25320370.98
assurance expenses
Total 17991357.40 27430683.82
51. Deferred Income
Unit: RMB
Increase during the Decrease during
Item Opening balance Closing balance Cause
period the period
Government
Government grants 73739179.94 73093981.93 29901416.80 116931745.07
allocations
Total 73739179.94 73093981.93 29901416.80 116931745.07 --
Other notes:
Amount Amount Amoun
Amount recogniz
Related to
recognized in t offset Other
Opening Closing assets/relat
Item added during ed in other income against chang
balance balance ed to
the period non- during the costs es
operatin period and
income
g expens
255Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
income es
during during
the the
period period
Government grants related to
68183747.3819854824.14
assets 59118579.13 107447502.37
Small-pitch LED Packaging
Technology Innovation for Related to
Display and Key Packaging 9322107.78 9842813.88 3272130.18 15892791.48
Equipment Technology assets
Transformation Project
Geely Industrial Park LED Ultra-
High Definition Display Related to
213333.2514786666.75
Technology Transformation 15000000.00 assets
Project (Phase I)
The First Batch of Ultra-long- Related to
term Special Government Bond 368000.01 14351999.99
14720000.00
Project Subsidies for 2025 assets
Technology Renovation Project Related to
for the Production Line of Micro 2001695.76 1865979.66 12361299.10
12225583.00
and Flip-chip LED Chips assets
Government Subsidy for Annual
Fixed Asset Investment in Related to
8677987.50445025.038232962.47
Advanced Manufacturing and Oil assets
& Gas Extraction Projects
Small-pitch and Outdoor LED
Display Device Expansion Related to
10003945.764064551.685939394.08
Project and Technical assets
Transformation Project
The Second Batch of Ultra-long- Related to
term Special Government Bond 5162500.00 525000.00 4637500.00
Project Subsidies for 2024 assets
The Project of the Innovation in
Packaging Technology and
Technological Transformation of Related to
6052565.771570727.404481838.37
Key Packaging Equipment of assets
LEDs with High Color Rendering
Index for Illumination
Intelligent Technology Reform
Project of LED Packaging Related to
620755.002104386.1221334.372703806.75
Workshop in Geely Industrial assets
Park (Phase I)
Hainan Deep-Sea Technology
Innovation Centre Special Project
for Deep-Sea Technology
Industry Promotion (Industrial Related to
1200000.001600000.00311244.122488755.88
Development Category) – assets
Construction and Commercial
Operation of Deep-Sea Lighting
Product Production Lines
Equipment Subsidies for the Related to
Gaozhou Production Base 2504336.13 156852.78 2347483.35
Construction Project assets
2023 Automotive Lamp Related to
Production Digitalization 2129000.00 246000.00 1883000.00
Workshop Technology assets
256Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Improvement Project
Research on Packaging
Technologies for Third- Related to
1871395.37334987.321536408.05
Generation Semiconductor Power assets
Devices and Modules
The First Batch of 2022 Special
Funds for Industrial Related to
Technological Transformation by 1792000.00 256000.00 1536000.00
the Finance Bureau of Liang assets
Jiang New Area
The Second Batch of SupportFunds for the “TechnologicalTransformation of Thousands of Related to
1366666.54200000.041166666.50Enterprises” in the Guangxi assets
Zhuang Autonomous Region for
2021
The 2019 Second Batch of
Special Funds of RMB3 million Related to
1200000.00300000.00900000.00
for the Industrial and Information assets
Development of the City
The Project of Resource Related to
Conservation and Environmental 1425234.20 687999.96 737234.24
Protection assets
Research and Development and
Industrialization Project of
Potassium Nitride-based Rf Related to
743787.06113597.52630189.54
Devices in the Field of Next assets
Generation Mobile
Communication
The Project of the First Batch of
Support Funds for Enterprises in Related to
900000.00300000.00600000.00
Liuzhou City for 2017 for assets
Liuzhou Guige
The First Batch of Special Funds
for the Industrial and Information
Development for the Guangxi Related to
Zhuang Autonomous Region for 966666.97 399999.96 566667.01
2017 (Technological assets
Transformation) for Liuzhou
Guige
The 2019 14th Batch of Industrial Related to
Support Funds of RMB1.5 600000.00 150000.00 450000.00
million assets
The First Batch of Special Funds Related to
for Small and Medium-sized 490000.00 70000.00 420000.00
Enterprises in 2022 assets
Research on Color Micro-LED
Displays and Ultra-High- Related to
54997.62351000.0011539.56394458.06
Brightness Micro-Display assets
Technologies
2021 Automotive Industry
Enterprise Intelligent Related to
419333.1868000.04351333.14
Transformation and Upgrading assets
Project Funding
Liuzhou Guige’s Third Batch of
424000.0096000.00328000.00
Guangxi Innovation-driven Related to
257Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Development Special Asset assets
Projects in 2018
Project Funds from the Liuzhou
High-tech Industrial Related to
384000.1663999.96320000.20
Development Zone Management assets
Committee
Liuzhou Guige 2017 Liudong
New District Enterprise Potential Related to
450000.00150000.00300000.00
Development and Renovation assets
Fund
LED Technologies and
Demonstration Applications for Related to
743871.4250460.00494331.42300000.00
the Efficient Cultivation Needs of assets
Modern Agriculture
Related to
Others 9181237.29 720000.00 3098189.88 6803047.41
assets
Government grants related to
5555432.5610046592.669484242.70
income 13975402.80
MOM Software R&D Project for
Manufacturing Operations Related to
Management in NationStar 7628300.00 4921620.63 2706679.37
Optoelectronics’ Manufacturing income
Scenarios
Research Project on Key
Technologies of the Third Related to
Generation of High Efficiency 1639002.82 66471.72 1572531.10
and Frequency Semiconductor income
Electronic Power Module
The Research on the Key
Technology of 4K/8K Full-color Related to
1344000.0042652.801301347.20
Micro-LED Displays with Ultra income
High Definition (UHD)
Phase II Indirect Coupled
Multi- Physics Field Simulation Related to
Software Development Project 2040000.00 897813.31 1142186.69
for NationStar Optoelectronics income
Component Scenarios
Research on Full-Color and
Integrated Packaging of High- Related to
990013.59119836.92870176.67
Brightness High-Contrast Micro- income
LED Display Devices
Related to
MDL Project 840000.00 840000.00
income
Development of Key
Technologies for Ultra-High- Related to
Definition Micro-LED Display 420000.00 420000.00
Panels Based on MIP Packaging income
Architecture
Related to
Others 742416.15 3887102.80 3998197.28 631321.67
income
Total 73739179.94 73093981.93 29901416.80 116931745.07
258Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
52. Other Non-current Liabilities
Unit: RMB
Item Closing balance Opening balance
Output VAT to be transferred 107831.23 174986.26
Others 2931.37
Total 107831.23 177917.63
53. Share Capital
Unit: RMB
Increase/decrease (+/-)
Opening New shares Bonus issue Closing
balance Bonus shares Other (note) Subtotal balance
issued from profit
--
The sum of 154877823 153577823
13000000.013000000.0
shares 0.00 0.00
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:
Item/Investor Opening balance Increase Decrease Closing balance
during the during the
Invested amount Proportion Invested amount Proportion
period period
Restricted 57295457.00 3.70% 38384.0046796039.00 10537802.00 0.69%
shares
Unrestricted 1491482773.00 96.30% 46796039.0013038384.00 1525240428.00 99.31%
shares
Total 1548778230.00 100.00% 46834423.0059834423.00 1535778230.00 100.00%
54. Other Equity Instruments
None.
55. Capital Reserves
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
period period
Capital premium
907090354.1270818369.76836271984.36
(premium on stock)
Other capital reserves 7245971.54 7245971.54
Total 914336325.66 70818369.76 843517955.90
Other notes including changes and reason of change:
Capital premium (premium on stock) decreased by RMB70818369.76 in the current period which were
mainly due to
259Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
1. The Company canceled its stock shares on January 10 2025 resulting in a RMB69165144.15 decrease
in the capital reserve;
2. The acquisition of non-controlling interests in the majority-owned subsidiary Hortilite Company by the
Company in this year resulting in a RMB1653225.61 decrease in the capital reserve.
56. Treasury Shares
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
period period
Treasury shares (A-
82165144.1582165144.15
share)
Total 82165144.15 82165144.15
Other notes including changes and reason of change:
Decrease in treasury shares (A-shares) by RMB82165144.15 during the 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.
57. Other Comprehensive Income
Unit: RMB
During the period
Less: Less:
Recorded Recorded
in other in other
comprehen comprehen Attributabl
Attributabl
Opening Income sive sive e to owners
Item Less: e to non-
Closing
balance before income in income in of theIncome tax controlling balance
taxation in prior period prior period parent
expense interests
the period and and company
after tax
transferred transferred after tax
to profit or to retained
loss in the earnings in
period the period
I. Other
comprehen
sive
income that
-
may not 38344263 27487935 38924426 41231902. 22784580
15559682
subsequentl 1.00 0.18 9.38 53 9.27
1.73
y be
reclassified
to profit or
loss
Chang
es in fair -38344263 27487935 38924426 41231902. 22784580
value of 155596821.00 0.18 9.38 53 9.27
other 1.73
equity
260Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
instrument
investment
II. Other
comprehen
sive
income that
--
may - -
-13475.981842139.11157197.1
subsequentl 684941.98 698417.96
57
y be
reclassified
to profit or
loss
Differ
ences
arising
from
--
translation - -
-13475.981842139.11157197.1
of foreign 684941.98 698417.96
57
currency-
denominate
d financial
statements
Total of
other - -
38342915273037213892442641231902.22714739
comprehen 15628176 1157197.1
5.021.039.38531.31
sive 3.71 7
income
Other notes including the adjustment of the effective portion of gains or losses on cash flow hedges to the
initial recognition amount of the hedged item:
None.
58. Specific Reserve
Unit: RMB
Increase during the Decrease during the
Item Opening balance Closing balance
period period
Safety production costs 4782061.20 19258445.96 20604013.09 3436494.07
Total 4782061.20 19258445.96 20604013.09 3436494.07
Other notes including changes and reason of 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 Opening balance Increase during the Decrease during the Closing balance
261Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
period period
Statutory surplus
108417252.0139260610.45147677862.46
reserves
Discretionary surplus
41680270.9641680270.96
reserves
Total 150097522.97 39260610.45 189358133.42
Notes including changes and reasons thereof:
The increase in surplus reserve during the period arose from: (1) as a result of the disposal of investments
in other equity instruments during the period the cumulative fair value changes previously recognized in other
comprehensive income were transferred to retained earnings and surplus reserves were simultaneously
increased by RMB38924426.94. For further details please refer to Part III Management Discussion and
Analysis - VIII Sale of Major Assets and Equity Investments - 1. Sale of Major Assets; and (2) the
appropriation of surplus reserve based on the net profit of the parent company amounting to RMB336183.51.
60. Retained Earnings
Unit: RMB
Item 2025 2024
Opening balance of retained earnings
3655046154.573435308364.11
before adjustments
Opening balance of retained earnings
3655046154.573435308364.11
after adjustments
Add: Net profit attributable to owners of
214845871.24446184021.97
the parent company
Less: Appropriation of statutory surplus
336183.5142152843.91
reserve
Dividend of ordinary shares payable 184293387.60 184293387.60
Add: Others (note) 350319842.44
Closing retained earnings 4035582297.14 3655046154.57
Note: The amount reclassified from other comprehensive income to retained earnings during the period is
RMB350319842.44.Details of the adjustments of opening retained earnings:
1) RMB0.00 opening retained earnings was affected by retrospective adjustment conducted according to the
Accounting Standards for Business Enterprises and relevant new regulations.
2) RMB0.00 opening retained earnings were affected by changes in accounting policies.
3) RMB0.00 opening retained earnings was affected by correction of significant accounting errors.
4) RMB0.00 opening retained earnings was affected by changes in combination scope arising from same control.
(5) RMB0.00 opening retained earnings was affected totally by other adjustments.
262Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
61. Operating Revenue and Cost of Sales
Unit: RMB
20252024
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 8451351444.66 6979846148.97 8802435475.94 7190495792.98
Other operations 345457525.92 261572933.82 245802171.20 177055108.51
Total 8796808970.58 7241419082.79 9048237647.14 7367550901.49
The lowest of the Company’s audited profit before tax net profit and net profit after deducting non-recurring
gains and losses for the Reporting Period is negative.□ Yes□ No
Breakdown information of operating income and operating cost:
Unit: RMB
Total
Category of contracts
Operating revenue Cost of sales
Business Type
Of which:
General lighting products 3029903446.48 2254839510.04
LED packaging and component products 2261567606.54 1907376612.45
Vehicle lamp products 2225917346.52 1930734570.62
Trade and other products 1279420571.04 1148468389.68
Classification by operating region
Of which:
Domestic 6967139709.49 5665162928.65
Overseas 1829669261.09 1576256154.14
Total 8796808970.58 7241419082.79
Information in relation to the transaction price apportioned to the residual contract performance obligation:
The amount of revenue corresponding to performance obligations of contracts signed but not performed or
not fully performed yet was RMB172606548.97 as at the end of the period.
62. Taxes and Surtaxes
Unit: RMB
Item 2025 2024
Urban maintenance and construction tax 19226974.39 21327278.39
Education surcharge 8243324.99 9143375.97
Property tax 29682069.61 28676638.78
Land use tax 5967160.73 6023030.05
Vehicle and vessel use tax 27710.06 38409.21
Stamp duty 7870773.13 8344850.82
Local education surcharge 5495642.04 6096584.00
VAT of land 431382.84
Environmental protection tax 79751.02 93630.35
Others 16658.20 18849.95
263Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Total 77041447.01 79762647.52
63. Administrative Expense
Unit: RMB
Item 2025 2024
Employee benefits 270866712.65 275293420.32
Depreciation charge 93103409.96 83279370.36
Office expenses 32804380.50 40006914.71
Amortization of intangible assets 10560080.08 8648358.17
Rental and management fees 9086930.36 7859197.84
Intermediary agency fee 8652947.78 11805486.89
Engineering decoration cost 8082260.44 10009360.18
Utilities 7559486.37 8612131.67
Labor cost 6701245.07 5995845.07
Security fund for the disabled 2422603.63 2841940.52
Others 31412443.12 30405321.65
Total 481252499.96 484757347.38
64. Selling Expense
Unit: RMB
Item 2025 2024
Employee benefits 151561039.41 151647016.46
Business propagandize fees and
96261651.49103972069.87
advertising fees
Sales promotion fees 21064820.55 11347352.24
Business travel charges 16786403.33 17187185.83
Office expenses 15448703.63 15730733.51
Commercial insurance premium 6156003.88 6518012.66
Others 50359200.41 42953830.16
Total 357637822.70 349356200.73
65. Development Costs
Unit: RMB
Item 2025 2024
Personnel labor costs 277617509.26 264483169.80
Direct input costs 177652383.79 202803354.52
Depreciation and long-term prepaid
46614208.0841317402.25
expense
Commissioned external research and
6283709.798124543.45
development costs
Design fee 181018.87 939546.93
Amortization expense of intangible
35185.3050558.92
assets
Others 30881185.94 30951790.20
Total 539265201.03 548670366.07
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
264Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
business.
66. Finance Costs
Unit: RMB
Item 2025 2024
Interest expense 19964126.68 21576958.65
Less: Interest income 38126946.14 51401372.58
Foreign exchange gains or losses 8465533.08 -28129824.29
Handling charge and others -3455220.83 2454991.02
Total -13152507.21 -55499247.20
67. Other Income
Unit: RMB
Sources 2025 2024
The Deductible Input Tax for Advanced
40375368.4954157807.49
Manufacturing Enterprises
Technological Transformation Project
for Production Capacity Expansion of
8657294.785590398.00
Fine-Pitch and Outdoor LED Display
Components
VAT refunded as soon as it is levied 7076767.22 3548006.01
MOM Software R&D Project for
Manufacturing Operations Management
2840000.00
in NationStar Optoelectronics’
Manufacturing Scenarios
Phase II MOM Software Development
Project for NationStar Optoelectronics 2081620.63
Manufacturing Scenarios
CAE Software R&D Project for Multi-
Physics Coupling Simulation of
2011100.002011000.00
NationStar Optoelectronics’ LED
Products
Technology Renovation Project for the
Production Line of Micro and Flip-chip 1865979.66 68221.24
LED Chips
The Tax Incentives for the Poor 1696080.44 6655996.87
Technological Transformation Project
for High-Color-Rendering Index (CRI)
LED Packaging Technology Innovation 1570727.40 1570727.40
and Key Packaging Equipment for
Lighting Applications
Credit Insurance Fund – General
1539520.11171000.00
Enterprise Subsidy under Sinosure
Social insurance subsidies 1255842.56 1185266.41
Manufacturing Single Champion Award 1250000.00
Enterprise R&D Reward and Subsidy 1150726.00 684357.00
Nanning City Output Value Incentives 1070000.00
The “Strong Start” Economic Initiative
for Q1 by Nanning New and High-tech 1010000.00
Industrial Development Zone
Special Funds for Promoting High-
1003399.67154754.00
Quality Economic Development
Production Increase Incentives 980000.00
265Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
MOM Prototype Software R&D Project
for Manufacturing Operations
Management in NationStar 933200.00 2813200.00
Optoelectronics’ Manufacturing
Scenarios
Comprehensive Incentive and Subsidy
920000.00
Program for Technological Upgrading
Phase II Indirect Coupled Multi-Physics
Field Simulation Software Development
897813.31
Project for NationStar Optoelectronics
Component Scenarios
Long-Term Special Treasury Bond
893000.0187500.00
Project
The subsidy for stabilizing employment 884908.49 1423855.77
Employment Subsidy 808452.51 240900.00
Resource Conservation and
687999.961015246.80
Environmental Protection Project
Support Fund for the Orderly Industrial
Relocation Project in the Foshan- 621610.99
Maoming Cooperation Park
Incentives and Subsidies for Industrial
610000.00
Enterprises
Return of handling charges for
581015.09531972.25
withholding and remittance
Autonomous Region New
580000.00
Industrialization Funds
Liuzhou Enterprise Support Fund Project 556000.08 556000.08
Rent Subsidy for the Gaozhou
553302.80
Production Base Construction Project
Policy Subsidy Funds for Industrial
Economic Work from the Liuzhou
547000.00
Municipal Bureau of Industry and
Information Technology
Basic Electricity Charge Subsidy for
Transformer Capacity of Large Industrial 507120.00
Enterprises
LED Technology for High-Efficiency
Planting in Modern Agriculture and Its 494331.42 322841.18
Demonstration and Rollout
Hainan Province Industrial Enterprise
Investment Expansion and Technical
445025.04222512.50
Transformation Quality Improvement
Award and Subsidy Fund Project
Support Fund for the Digital Intelligent
Transformation of the Manufacturing 403100.00 592548.00
Industry
The First Batch of Special Funds for the
Industrial and Information Development
for the Guangxi Zhuang Autonomous 399999.96 399999.96
Region for 2017 (Technological
Transformation) for Liuzhou Guige
Tax Incentives for the Unemployed 337350.00
Research on Packaging Technologies for
Third-Generation Semiconductor Power 334987.32 128604.63
Devices and Modules
Hainan Deep-Sea Technology Innovation
311244.11
Centre Special Project for Deep-Sea
266Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Technology Industry Promotion
(Industrial Development Category) –
Construction and Commercial Operation
of Deep-Sea Lighting Product
Production Lines
The 2019 Second Batch of Special Funds
for the Industrial and Information 300000.00 300000.00
Development of the City
MOCVD Subsidy 7084696.84
Incentives and Bonuses for ‘Specialized
Sophisticated Distinctive and 1000000.00
Innovative’ ‘Little Giant’ Enterprises
Chancheng District Government Quality
500000.00
Award
Award Fund for Guangxi Smart Factory
Demonstration Enterprises and Digital 500000.00
Workshops
Talent Enclave 500000.00
Epitaxial Growth and Chip Fabrication
Technology for Flip-Chip High-
400000.00
Performance Deep Ultraviolet (DUV)
LEDs
Quality Management Maturity Level 5A
400000.00
Enterprise Bonus
MDL Project 360000.00
Others
Total 8601651.06 16257571.69
99643539.11111434984.12
68. Net Gain on Exposure Hedges
None.
69. Gain on Changes in Fair Value
Unit: RMB
Sources 2025 2024
Trading financial assets 922115.30 -438454.94
Trading financial liabilities -275250.00
Total 922115.30 -713704.94
70. Investment Income
Unit: RMB
Item 2025 2024
Long-term equity investment income
4506058.031112039.74
accounted by equity method
Investment income from disposal of
30982.85
long-term equity investments
Investment income from disposal of
502794.854098921.53
trading financial assets
Dividend income from holding of other
18786082.6829104180.36
equity instrument investment
Interest income of investment in other 30830663.37 29195152.92
267Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
debt obligations during holding period
Gains on debt restructuring 610478.39 -368531.60
Investment income from wealth
management products and structural 6507274.08 2708815.73
deposits
Total 61774334.25 65850578.68
71. Credit Impairment Loss
Unit: RMB
Item 2025 2024
Bad debt loss on notes receivable -726771.96 206549.91
Bad debt loss on accounts receivable -16093546.81 -28328425.50
Bad debt loss on other receivables 3865313.71 -1562720.82
Total -12955005.06 -29684596.41
72. Asset Impairment Loss
Unit: RMB
Item 2025 2024
I. Loss on impairments of inventories
-83537389.61-53391009.57
and contract performance costs
IV. Loss on impairment of fixed assets -8705110.67 -4175252.76
VI. Loss on impairment of construction
-67264.15
in progress
X. Loss on impairments of goodwill -34217937.33 -142393052.68
XI. Loss on impairment of contract -112668.13 132269.74
assets
XII. Others -3374530.40 -8035253.26
Total -129947636.14 -207929562.68
73. Assets Disposal Income
Unit: RMB
Sources 2025 2024
Gains or losses arising from the disposal
of non-current assets not classified as 125291564.46
held for sale
Gains or losses arising from the disposal
of non-current assets classified as held 13429700.65 374492447.01
for sale
Total 138721265.11 374492447.01
Note: The gain or loss arising from the disposal of non-current assets held for sale during the year relates
primarily to compensation received for the expropriation of land and buildings owned by the wholly-ownedsubsidiary Nanjing Fozhao. For details please refer to 8. Other Information – “Matter regarding theexpropriation of land and above-ground housing of Nanjing Fozhao” in Note XVIII “Other Significant Events.
74. Non-operating Income
Unit: RMB
268Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Amount recorded in the
Item 2025 2024 current non-recurring profit or
loss
Income from scrap of non-
498484.62353339.66498484.62
current assets
Of which: income from scrap
498484.62353339.66498484.62
of fixed assets
Income from default money 481004.23 1407591.86 481004.23
Confiscated income 336444.46 88495.91 336444.46
Negative goodwill resulting
from a business combination 2131597.43
not under the same control
Others 3461240.55 14455147.92 3461240.55
Total 4777173.86 18436172.78 4777173.86
75. Non-operating Expense
Unit: RMB
Amount recorded in the
Item 2025 2024 current non-recurring profit or
loss
Total losses on disposal of
277535.52569149.93277535.52
non-current assets
Of which: losses on disposal
277535.52569149.93277535.52
of fixed assets
Penalty and delaying payment 2163207.46 1119970.98 2163207.46
Others 2027531.48 2887616.92 2027531.48
Total 4468274.46 4576737.83 4468274.46
76. Income Tax Expense
(1) List of Income Tax Expense
Unit: RMB
Item 2025 2024
Current income tax expense 68282962.68 109234078.37
Deferred income tax expense -15187763.89 -31770178.24
Total 53095198.79 77463900.13
(2) Reconciliation between Accounting Profit and Income Tax Expense
Unit: RMB
Item 2025
Profit before taxation 271812936.27
Current income tax expense accounted at statutory/applicable
tax rate 40771940.44
Influence of applying different tax rates by subsidiaries 13457139.20
Influence of income tax before adjustment 7300622.99
Influence of non-taxable income -5654428.92
Influence of non-deductible costs expenses and losses 6670847.65
The effect of using deductible losses of deferred income tax
assets that have not been recognized in the previous period -401082.50
Influence of unrecognized deductible temporary differences 38039116.84
269Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
and deductible losses
Effect of the weighted pre-tax deduction of R&D expenses -47199838.25
Regarded as sales 884905.79
Others -774024.45
Income tax expense 53095198.79
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 2025 2024
Income from subsidy 78843112.35 46067747.23
Deposit interest 44666799.02 46785606.92
Margin received 28019694.81 53286881.53
Income from waste 21661701.25 25670669.63
Rental income from property and
6148324.934592235.96
equipment utility
Income from insurance compensation 565849.48
Others 51855897.45 43969141.26
Total 231195529.81 220938132.01
Notes:
None.Cash Used in Other Operating Activities:
Unit: RMB
Item 2025 2024
Administrative expense and R&D
149317287.14134685611.81
expense paid in cash
Selling expense paid in cash 114309542.63 97075000.74
Finance costs paid in cash 3259289.54 2507911.36
Cash deposit paid 21420970.13 43057569.73
Others 136387764.55 141706744.76
Total 424694853.99 419032838.40
Notes:
None.
(2) Cash Related to Investing Activities
Cash Generated from Other Investing Activities:
Unit: RMB
Item 2025 2024
Cash acquired from subsidiaries 22826907.16
Proceeds from profit or loss during the 1039462.85
270Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
transition period
Total 23866370.01
Significant cash received related to investing activities
Unit: RMB
Item 2025 2024
Proceeds from disposal of shares of
561919175.12
Gotion High-tech
Land revitalization project 110695895.00 381779100.00
Total 672615070.12 381779100.00
Notes:
None.Cash Used in Other Investing Activities:
Unit: RMB
Item 2025 2024
Payments for land remediation costs 47923749.02
Payments for equity interests 11366572.00
Payment of investment margin 8032210.00
Cash outflows arising from disposal of
237594.78
subsidiaries
Total 67565125.80
Significant cash paid related to investing activities
None.Notes:
None.
(3) Cash Related to Financing Activities
Cash Generated from Other Financing Activities:
Unit: RMB
Item 2025 2024
Release of margin for bank acceptance
693948.166317233.78
bills
Total 693948.16 6317233.78
Notes:
None.Cash Used in Other Financing Activities:
Unit: RMB
Item 2025 2024
Cash paid as security deposit for bank
142533055.723114400.41
acceptance bills
Payment of margin 9851633.26
Cash paid for a business combination 5000000.00
271Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
resulting in a controlling interest under
common control
Others 15204354.19 4014648.18
Total 172584043.17 7129048.59
Notes:
None.Changes in liabilities arising from financing activities
□ Applicable □ Not applicable
Unit: RMB
Increase during the period Decrease during the period
Item Opening balance Closing balance
Cash Non-cash Cash Non-cash
Short-term
307141147.49263500000.00424311154.72310861021.3649076205.99635015074.86
borrowings
Long-term
222581930.54116480252.56106240069.18137106584.73115280591.77192915075.78
borrowings
Other
payables-
payment 5000000.00 5000000.00
for equity
transfer
Current
portion of
non- 120574788.81 126198630.06 115477154.87 131296264.00
current
liabilities
Lease
15023993.1116006655.894977909.8910698015.0915354724.02
liabilities
Total 670321859.95 379980252.56 672756509.85 457945515.98 290531967.72 974581138.66
(4) Description of Cash Flows Presented on a Net Basis
None.
(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 RMB3910.3856 million in various types of acceptance
bills issued and endorsed by customers and RMB2964.1383 million in various types of acceptance bills
endorsed and transferred to suppliers. In addition the Company and its subsidiaries received a total of
RMB439.5609 million in payments for goods through bill discounting. Regarding material activities and
financial effects of supplier financing arrangements that do not involve cash flows in the period but affect theCompany’s financial position or may affect its future cash flows please refer to “Note VII79（7） Notes on
272Foshan Electrical and Lighting Co. Ltd. Annual Report 2025Other Significant Activities - Supplier Financing Arrangements”.
79. Supplemental Information for Cash Flow Statement
(1) Supplemental Information for Cash Flow Statement
Unit: RMB
Supplemental information 2025 2024
1. Reconciliation of net profit to net cash
flows generated from operating
activities:
Net profit 218717737.48 523485111.75
Add: Provision for impairment of assets 142902641.20 237614159.09
Depreciation of fixed assets oil-gas
546010124.07532193425.19
assets and productive living assets
Depreciation of right-of-use assets 12171428.82 9069731.43
Amortization of intangible assets 26709111.29 22274527.25
Amortization of long-term prepaid
106728539.6792792758.45
expenses
Loss from disposal of fixed assets
intangible assets and other long-term -138721265.11 -374492447.01
assets (gains: negative)
Losses from scrapping of fixed assets
-220949.10215810.27
(gains: negative)
Losses from changes in fair value (gains:
-922115.30713704.94
negative)
Finance costs (gains: negative) 30333208.44 3107305.71
Investment loss (gains: negative) -61774334.25 -65850578.68
Decrease in deferred income tax assets
-6329808.48-26846373.34
(increase: negative)
Increase in deferred income tax liabilities
-8852277.50-4925674.34
(“-” for decrease)
Decrease in inventory (“-” for increase) -220326009.01 -81113668.04
Decrease in operating receivables (“-”
-416509034.81-235225023.13
for increase)
Increase in operating payables (“-” for
68577962.73-41073056.86
decrease)
Others -1345567.13 6175623.20
Net cash generated from/used in
297149393.01598115335.88
operating activities
2. Significant investing and financing
activities without involvement of cash
receipts and payments
Transfer of debts into capital
Current portion of convertible corporate
273Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
bonds
Fixed assets leased in for financing
3.Net increase/decrease of cash and cash
equivalents:
Closing balance of cash 2819359299.72 2684382020.41
Less: Opening balance of cash 2684382020.41 3101252943.88
Add: Closing balance of cash equivalents
Less: Opening balance of cash
equivalents
Net increase in cash and cash equivalents 134977279.31 -416870923.47
(2) Net Cash Paid For Acquisition of Subsidiaries
Unit: RMB
Amount
Cash or cash equivalents paid in the period for the business
22500000.00
combination occurring in the period
Of which:
Guangdong Airtrust Aviation Equipment Co. Ltd. 22500000.00
Less: Cash and cash equivalents held by subsidiary at the
45326907.16
acquisition date
Of which:
Guangdong Airtrust Aviation Equipment Co. Ltd. 45326907.16Amounts reclassified to “Cash generated from other investing
22826907.16activities” (note)
Net cash paid for acquisition of subsidiaries
Note: In the capital increase of 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 subsidiary onthe date of acquisition was negative. Therefore the amount has been reclassified to the “Cash generated fromother investing activities” item for presentation purposes.
(3) Net Cash Received from Disposal of the Subsidiaries
Unit: RMB
Amount
Cash or cash equivalents received in the period from the
2100.00
disposal of subsidiaries in the period
Of which:
Shanghai Lelaite Electrical Equipment Co. Ltd. 2100.00
Less: Cash and cash equivalents held by subsidiary at the date
239694.78
when the Company ceases to control the subsidiary
Of which:
Shanghai Lelaite Electrical Equipment Co. Ltd. 239694.78Amounts reclassified to “Cash Used in Other Investing
237594.78Activities” (note)
Net cash proceeds from the disposal of subsidiaries
274Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Note: For the disposal of Shanghai Lelaite Electrical Equipment Co. Ltd. during the year the net amount
of cash or cash equivalents received during the period in connection with the disposal of the subsidiary after
deducting the cash and cash equivalents held by the subsidiary at the disposal date was negative. Accordingly
the amount was reclassified and presented under “Cash Used in Other Investing Activities”.
(4) Cash and Cash Equivalents
Unit: RMB
Item Closing balance Opening balance
I. Cash 2819359299.72 2684382020.41
Including: Cash on hand 33030.81 40535.66
Bank deposit on demand 2802250069.46 2680618712.62
Other monetary assets on 17076199.45 3722772.13
demand
III. Closing balance of cash and cash
2819359299.722684382020.41
equivalents
(5) Items That Were Restricted in Use But still Presented as Cash and Cash Equivalents
None.
(6) Monetary Assets Not Classified as Cash and Cash Equivalents
Unit: RMB
Reason for not classifying the
Item 2025 2024 item as cash and cash
equivalents
Note deposits bond deposits
631081782.33 512340403.99 Specific purpose
pre-sale of properties etc.Interest receivable accrued on
bank deposits and time
Interest not received 5302009.12 12405012.91 deposits not yet matured as at
the end of the Reporting
Period
Total 636383791.45 524745416.90
(7) Notes on Other Significant Activities
Supplier financing arrangements
1) Terms and conditions of the supplier financing arrangements
Through the supply chain finance service platforms provided by China Everbright Bank Co. Ltd. and
China Merchants Bank Co. Ltd. the Company undertakes reverse factoring arrangements under which
suppliers transfer their accounts receivable from the Company to the supply chain finance service platforms.Based on the verified information of the accounts receivable the supply chain finance service platforms provide
financing to the suppliers. The Company makes payments to the supply chain finance service platforms on the
275Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
agreed payment date which is generally the 11th month after the disbursement date. The Company’s obligation
to make payments is unconditional and irrevocable and is not affected by any disputes between the suppliers
and the financing providers.
2) Presentation line items and gross amounts in the balance sheet of financial liabilities that are part of
supplier financing arrangements and payments already received by suppliers from the financing providers
Item December 31 2025 December 31 2024
Short-term borrowings 414007606.03
Of which: Payments already received by suppliers 414007606.03
3) Range of maturity dates of financial liabilities that are part of supplier financing arrangements
Item December 31 2025
Within 30 to 60 days from the date
Financial liabilities that are part of supplier financing arrangements
of invoice
Comparable accounts payable not part of supplier financing arrangements As agreed in the contract
4) Types and effects of non-cash changes in the period for financial liabilities that are part of supplier financing
arrangements
In 2025 the Company derecognized accounts payable and increased short-term borrowings by
RMB414007606.03 as a result of supplier financing arrangements representing a non-cash change.
80. Notes to Items of the Statements of Changes in Owners’ Equity
Notes to the name of “Other” of closing balance at the end of the previous year adjusted and the amount
adjusted:
None.
81. Foreign Currency Monetary Items
(1) Foreign Currency Monetary Items
Unit: RMB
Closing balance in foreign
Item Exchange rate Closing balance in RMB
currency
Monetary assets 552048499.75
Of which: USD 74518019.61 7.0288 523772256.23
EUR 287530.19 8.2355 2367954.88
HKD 51818.20 0.90322 46803.23
IDR 60781802166.91 0.000418 25406793.31
THB 2043386.28 0.222518914 454692.10
Accounts receivable 266083103.81
Of which: USD 37538804.10 7.0288 263852746.26
EUR 220054.48 8.2355 1812258.67
HKD
276Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
IDR 1000236547.69 0.000418 418098.88
Long-term borrowings
Of which: USD
EUR
HKD
Other receivables 673837.86
Of which: USD 3707.19 7.0288 26057.10
IDR 272094187.00 0.000418 113735.37
THB 2400000.00 0.222518914 534045.39
Accounts payable 912163.96
Of which: USD 122232.20 7.0288 859145.69
IDR 126837970.00 0.000418 53018.27
Other payables 156898.47
Of which: IDR 10000000.00 0.000418 4180.00
THB 686316.81 0.222518914 152718.47
Other current assets 38113.02
Of which: IDR 91179461.76 0.000418 38113.02
(2) Notes to Overseas Entities Including: for Significant Oversea 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 Was Lessee
□ Applicable □ Not applicable
Variable lease payments not included in the measurement of lease liabilities
□ Applicable□ Not applicable
Simplified short-term lease or lease expense for low-value assets
□ Applicable □ Not applicable
Unit: RMB
Item Amount
Simplified short-term lease charges recognized in the cost of the related assets or in current profit or loss 2604677.32
Low-value asset lease expenses accounted for using the simplified approach and recognized in the cost of
382937.50
related assets or profit or loss (excluding short-term lease expenses for low-value assets)
Total cash outflows related to leases 14784730.93
Involved in sale and leaseback transactions
None.
277Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) The Company Was Lessor
Operating leases with the Company as lessor
□ Applicable □ Not applicable
Unit: RMB
Of which: income related to variable
Item Rental income lease payments not included in lease
receipts
Housing rental and others 13064751.57
Total 13064751.57
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
None.
(3) Gains or Losses on Sales Recognized under Finance Leases as a Producer or Distributor
□ Applicable□ Not applicable
83. Data Resources
None.
84. Other information
None.VIII Research and Development Expenditure
Unit: RMB
Item 2025 2024
Personnel labor costs 277617509.26 264483169.80
Direct input costs 177652383.79 202803354.52
Depreciation and long-term prepaid
expense 46614208.08 41317402.25
Commissioned external research and 6283709.79 8124543.45
development costs
Design fee 181018.87 939546.93
Amortization expense of intangible 35185.30 50558.92
assets
Others 30881185.94 30951790.20
Total 539265201.03 548670366.07
Of which: Expensed research and 539265201.03 548670366.07
development expenditure
Other notes:
278Foshan Electrical and Lighting Co. Ltd. Annual 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.IX. Change of Consolidation Scope
1. Business Combination Not under the Same Control
(1) Business Combination Not under the Same Control during the Period
Unit: RMB
Income
of Net Cash
acquire profits of flows ofthe
Time of Cost of Proportio Way to Acquisi Recognition e from acquiree acquiree
Acquirees gaining gaining n of gain tion basis of the from the
equity the equity equity equity date purchase date purchas purchase
from the
e date date to purchase
to period- date to
period- end the end of
end the period
Re-electing
directors
Guangdo Capital completing
ng increase the handover - -
Airtrust May 1 2250000 31877
45.00% through May 1 procedures of
Aviation 2025 0.00 cash 2025 the assets etc.
43998289938571
45.30
Equipmen contributi and actually.09.53
t Co. Ltd. on controllingthe acquired
company
(2) Combination Cost and Goodwill
Unit: RMB
Combination cost Guangdong Airtrust Aviation Equipment 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
125552.07
the fair value of identifiable net assets acquired
(3) The Identifiable Assets and Liabilities of Acquiree on Purchase Date
Unit: RMB
Guangdong Airtrust Aviation Equipment Co. Ltd.Fair value on purchase date Carrying amount on purchase date
Assets:
Monetary assets 45326907.16 45326907.16
Accounts receivable 1201867.96 1201867.96
Inventories 1267251.77 1302397.51
279Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Fixed assets 53492.93 39515.53
Intangible assets 2950600.00
Prepayments 119698.00 119698.00
Other current assets 4741.73 4741.73
Long-term prepaid expenses 822174.76 822174.76
Deferred income tax assets 1886550.94 1886550.94
Total assets 53633285.25 50703853.59
Liabilities:
Borrowings
Accounts payable 3326403.53 3326403.53
Deferred income tax liabilities 585886.33
Total liabilities 3912289.86 3326403.53
Net assets 49720995.39 47377450.06
Less: Non-controlling interests 27346547.46 26057597.53
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 Airtrust 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 Airtrust based on the assessment
results.
(4) Gains or Losses from Re-measurement of Equity Held before the Purchase Date at Fair Value
Whether there is a transaction that through multiple transaction step by step to realize business combination and
gaining the control during the Reporting Period
□ Yes□ No
(5) Notes to Reasonable Consideration or Fair Value of Identifiable Assets and Liabilities of the Acquiree
that Cannot Be Determined on the Acquisition Date or during the Period-end of the Merger
None.
(6) Other Notes
None.
2. Business Combination under the Same Control
None.
3. Counter Purchase
Basic information of trading the basis of transactions constitute counter purchase the retain assets liabilities
of the listed companies whether constituted a business and its basis the determination of the combination costs
280Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
the amount and calculation of adjusted rights and interests in accordance with the equity transaction process:
None.
4. Disposal of Subsidiary
Whether there were any transactions or events during the period in which control of the subsidiary was lost
□ Yes □ No
Unit: RMB
Differe
Fair
nce Gain
value Amount
between s or Method
Carryi of of other
the losse and
ng remai compreh
disposal s main
amoun ning ensive
price arisi assumpti
t of equit income
and the ng ons for
Rema remain y related
share of from determin
Disp ining ing intere to the
the reme ing the
Propor osal equit equity sts in disposed
Dispos equity asure fair
tion of meth y interes the of
al Time Basis for of the ment value of
dispos od at intere ts in cons equity
Name price of determin subsidia of the
al at the sts on the olidat investm
of at the cease ing time ry in the rema remainin
the time the consoli ed ent in
subsidi time of of of cease consoli ining g equity
time of of date dated finan the
ary cease contro of dated equit interests
cease cease of financi cial subsidia
of l control financia y in the
of of cease al state ry
control l inter consolid
control contr of statem ment transferr
stateme ests ated
ol contr ents on s on ed to
nts unde financial
ol the the return
corresp r the statemen
date of date on
onding fair ts on the
cease of investm
to the valu date of
of cease ent or
investm e cease of
control of retained
ent meth control
contr earnings
dispose od
ol
d of
Obtain
the title
transfer
certificat
e step
down
Shang
from
hai
manage
Lelaite
Nove ment
Electri
2100. 36.30 Trans mber receive 30982.
cal
00 % fer 30 the 85
Equip
2025 consider
ment
ation for
Co.equity
Ltd.transfer
complet
e the
handove
r
procedur
281Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
es of the
assets
Whether there was a step-by-step disposal of investment in a subsidiary through multiple transactions and loss
of control during the period
□ Yes□ No
5. Changes in Combination Scope for Other Reasons
Note to changes in combination scope for other reasons (such as newly establishment or liquidation of
subsidiaries etc.) and relevant information:
(1) In May 2025 the Company obtained control over Airstar (Tianjin) Lighting Co. Ltd. (hereinafter
referred to as “Airstar”) by making a capital contribution to Airtrust. Airstar completed its deregistration
procedures in October 2025 and was therefore excluded from the scope of consolidation of the Company from
the date of its deregistration. As a result the actual period during which Airstar was included in the Company’s
consolidation scope was from May 2025 to October 2025.
(2) In June 2025 FSL (Thailand) Lighting Technology Co. Ltd. completed the record-filing for overseas
investment and received capital contributions from Foshan Hortilite Optoelectronics Co. Ltd. and FSL
Chanchang Optoelectronics Co. Ltd. FSL (Thailand) Lighting Technology Co. Ltd. was included in the
consolidation scope from June 2025.
(3) Nanyang Baoli Vanadium Industry Co. Ltd. a subsidiary of the Company’s subsidiary completed its
deregistration procedures with the Administration for Market Regulation in 2025. In accordance with the
relevant provisions of the Accounting Standards for Business Enterprises the Company ceased to include it in
the consolidation scope.
6. Other information
None.X Equity in Other Entities
1. Equity in Subsidiary
(1) Subsidiaries
Unit: RMB
Regi Shareholding percentage
(%)
Main strat
Name of subsidiaries Registered operati
Nature of Way of
capital ng ion business Directly Indirectly gainingplace plac
e
282Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Foshan Fozhao Zhicheng Fos
Foshan Production Newly50000000.00 100.00%
Technology Co. Ltd. han and sales established
FSL Chanchang Fos Production Newly
72782944.00 Foshan 100.00%
Optoelectronics Co. Ltd. han and sales established
Foshan Taimei Times Lamp Fos
500000.00 Foshan
Production Newly
70.00%
Co. Ltd. han and sales established
Xin
Foshan Electrical & Lighting Xinxian Production Newly
35418439.76 xian 100.00%
(Xinxiang) Co. Ltd. g and sales established
g
Nanjing Fozhao Lighting
Nanj
Components Manufacturing Nanjing Production41683200.00 100.00% Acquired
ing and sales
Co. Ltd.FSL Zhida Electric Technology Fos Production Newly
38150000.00 Foshan 66.84%
Co. Ltd. han and sales established
Foshan Hortilite Fos Production Newly
17158000.00 Foshan 100.00%
Optoelectronics Co. Ltd. han and sales established
Ger Business
NationStar Optoelectronics German combination
1436419.00 man Trade 100.00%
(Germany) Co. Ltd. y under the
y same control
FSL (Thailand) Lighting Thailan Thai Production Newly
43812184.85100.00%
Technology Co. Ltd. d land and sales established
Business
Foshan Kelian New Energy Fos Property combination
170000000.00 Foshan developmen 100.00%
Technology Co. Ltd. han under thet
same control
Fozhao (Hainan) Technology Haikou Haik Production Newly
200000000.00
Co. Ltd. ou and sales
100.00%
established
Zhejiang Hule Electric
Jiaxi Production
Equipment Manufacture Co. 29000000.00 Jiaxing 66.00% Acquired
ng and sales
Ltd.Manufactur
Nanning Liaowang Auto Lamp Nannin Nan ing of
35055700.00 53.79% Acquired
Co. Ltd. g ning vehicle
lamps
Manufactur
Liuzhou Guige Lighting Liuzho Liuz ing of
30000000.00 53.79% Acquired
Technology Co. Ltd. u hou vehicle
lamps
Manufactur
Liuzhou Guige Fuxuan Liuzho Liuz ing of
20000000.00 automotive 53.79% Acquired
Technology Co. Ltd. u hou electronic
products
Cho Manufactur
Chongqing Guinuo Lighting Chongq
ngqi ing of30000000.00 53.79% Acquired
Technology Co. Ltd. ing vehicle
ng lamps
Manufactur
Qingdao Guige Lighting Qingda Qin ing of
30000000.00 53.79% Acquired
Technology Co. Ltd. o gdao vehicle
lamps
283Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Indo Manufactur
Indonesia Liaowang Auto Indones ing of
40873066.42 nesi 53.79% Acquired
Lamp Co. Ltd. ia vehicle
a lamps
Manufactur
Liaowang Auto Lamp Suz ing of Newly
25000000.00 Suzhou 53.79%
(Suzhou) Co. Ltd. hou vehicle established
lamps
Business
Foshan Sigma Venture Capital Fos Business combination
50000000.00 Foshan 100.00%
Co. Ltd. han services under the
same control
Business
Electronic
Foshan NationStar FosFoshan combination618477169.00 manufacturi 21.48%
Optoelectronics Co. Ltd. han under theng
same control
Business
Electronic
Foshan NationStar Fos
820000000.00 Foshan
combination
manufacturi 21.48%
Semiconductor Co. Ltd. han under theng
same control
Business
Electronic
Foshan Guoxing Electronic Fos combination
110000000.00 Foshan manufacturi 21.48%
Manufacture Co. Ltd. han under theng
same control
Business
Gua
Guangdong New Electronics Guangz combination
5000000.00 ngzh Trade 21.48%
Information Ltd. hou under the
ou
same control
Business
Guangdong Fenghua Gua Electronic
Guangz combination
Semiconductor Technology 200000000.00 ngzh manufacturi 21.45%
hou under the
Co. Ltd. ou ng
same control
Mao Electronic
Gaozhou NationStar Lighting Maomi Newly
30000000.00 min manufacturi 21.48%
Technology Co. Ltd. ng established
g ng
Mao
Fozhao Huaguang (Maoming) Maomi Production Newly
22920000.00 min 100.00%
Technology Co. Ltd. ng and sales established
g
Gua
Guangdong Airtrust Aviation Guangz Production
50000000.00 ngzh 45.00% Acquired
Equipment Co. Ltd. hou and sales
ou
Notes to holding proportion in subsidiary different from voting proportion:
None.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:
Shareholding
percentage at
No. The investee Reasons for consolidation
the end of
the year
1 Foshan NationStar Optoelectronics Co. Ltd. 21.48% In February 2022 FSL completed the
acquisition of a 100% equity interest in Sigma
(which held 79753050 shares of NationStar
2 Foshan NationStar Semiconductor Co. Ltd. 21.48% Optoelectronics) held by Guangdong Electronics
284Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Information Industry Group Ltd. as well as an
3 Foshan Guoxing Electronic Manufacture Co. Ltd. 21.48% aggregate of 52051945 shares of NationStar
Optoelectronics held by Guangdong Rising
4 Guangdong New Electronics Information Ltd. 21.48% Holdings Group Co. Ltd. and Guangdong
Rising Finance Holding Co. Ltd. by way of
5 Guangdong Fenghua Semiconductor Technology Co. Ltd. 21.45% cash consideration. Upon completion of the
restructuring FSL and its wholly-owned
subsidiary held an aggregate of 132819895
shares of NationStar Optoelectronics
representing 21.48% of the total share capital of
NationStar Optoelectronics and FSL became the
controlling shareholder of NationStar
Optoelectronics. (i) FSL is the largest
controlling shareholder of NationStar
Optoelectronics in terms of shareholding
percentage; (ii) FSL is able to determine the
6 Gaozhou NationStar Lighting Technology Co. Ltd. 21.48% appointment of more than half of the members
of the board of directors of NationStar
Optoelectronics by virtue of the voting rights it
actually exercises over the shares of the listed
company; and (iii) the voting rights of FSL in
respect of the shares of NationStar
Optoelectronics that it may actually exercise are
sufficient to have a material impact on the
resolutions of the general meeting of NationStar
Optoelectronics. Accordingly FSL can actually
control NationStar Optoelectronics.In April 2025 FSL obtained a 45% equity
interest in Airtrust by way of capital increase
thereby becoming the controlling shareholder of
Airtrust. (i) FSL is the largest controlling
shareholder of Airtrust in terms of shareholding
percentage; (ii) FSL is able to determine the
appointment of more than half of the members
7 Guangdong Airtrust Aviation Equipment Co. Ltd. 45.00% of the board of directors of Airtrust by virtue of
the voting rights it actually exercises over the
shares of Airtrust; and (iii) the voting rights of
FSL in respect of the shares of Airtrust that it
may actually exercise are sufficient to have a
material impact on the resolutions of the general
meeting of Airtrust. Accordingly FSL can
actually control Airtrust.Significant structural entities and controlling basis in the scope of combination:
None.Basis of determining whether the Company is the agent or the principal:
None.Other notes:
Guoxing Electronic Manufacture NationStar Semiconductor New Electronics Fenghua Semiconductor
and Gaozhou NationStar are subsidiaries of NationStar Optoelectronics.
285Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) Significant Non-wholly-owned Subsidiary
Unit: RMB
Shareholding The profit or loss Declaring dividends Balance of non-
Name proportion of non- attributable to the non- distributed to non- controlling interests at
controlling interests controlling interests controlling interests the period-end
Nanning Liaowang
46.21%12979652.554065870.47492230641.87
Auto Lamp Co. Ltd.Foshan NationStar
Optoelectronics Co. 78.52% -9702803.20 24282863.70 2976978464.11
Ltd.Holding proportion of non-controlling interests in subsidiary different from voting proportion:
None.
(3) The Main Financial Information of Significant Not Wholly-owned Subsidiary
Unit: RMB
Closing balance Opening balance
Curren Non- Curren Non-
Name Non- Total Non- TotalCurren Total t current Curren Total t current
current liabiliti current liabiliti
t assets assets liabiliti liabilit t assets assets liabiliti liabilit
assets es assets es
es y es y
Nanni
ng
Liaow
19831142312518801794920591797101728151674927431766
ang
061180091107029387274886.8821659409666822609210227700.784597
Auto
2.572.775.347.03953.989.178.527.698.7619.47
Lamp
Co.Ltd.Foshan
Nation
Star 3767 2338 6105 2076 23936 2316 3841 2408 6249 2096 32820 2425
Optoel 01138 43000 44138 90606 3822. 26988 25956 01970 27926 91516 2453. 11761
ectroni 7.21 1.99 9.20 6.03 25 8.28 3.85 5.26 9.11 6.37 19 9.56
cs Co.Ltd.Unit: RMB
20252024
Total Cash flows Total Cash flows
Name Operating comprehen from Operating comprehen from
Net profit Net profit
revenue sive operating revenue sive operating
income activities income activities
Nanning
Liaowang 20316256 28088406. 25572163. 39124178. 18228394 63038037. 62471720. 5907026.3
Auto Lamp 17.87 31 87 87 21.05 39 71 4
Co. Ltd.Foshan
NationStar - -
32814812222314573472860354375532.54375532.24010827
Optoelectro 13008857. 13008857.
14.088.6017.1937377.59
nics Co. 18 18
Ltd.
286Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(4) Significant Restrictions on Using the Assets and Liquidating the Liabilities of the Company
None.
(5) Financial Support or Other Supports Provided to Structural Entities Incorporated into the Scope of
Consolidated Financial Statements
None.
2. The Transaction of the Company with Its Owner’s Equity Share Changed but Still Controlling the
Subsidiary
(1) Note to the Owner’s Equity Share Changed in Subsidiary
Equity interest before the change Equity interest after the change
Name
Direct Indirect Direct Indirect
Foshan Hortilite
51.00%10.53%100.00%
Optoelectronics Co. Ltd.
(2) The Transaction’s Influence on the Equity of Non-controlling Interests and the Owner’s Equity
Attributable to the Parent Company
Unit: RMB
Foshan Hortilite Optoelectronics Co. Ltd.Purchase cost/disposal consideration 24916600.00
--Cash 24916600.00
Total purchase cost/disposal consideration 24916600.00
Less: Share of net assets of subsidiaries based on percentage of
26569825.61
equity acquired/disposed of
Difference -1653225.61
Of which: Adjusting capital reserve -1653225.61
Adjusting surplus reserve
Adjusting retained profits
3. Equity in Joint Ventures or Associated Enterprises
(1) Significant Joint Ventures or Associated Enterprises
None.
(2) Main Financial Information of Significant Joint Ventures
None.
(3) Main Financial Information of Significant Associated Enterprises
None.
(4) Summary Financial Information of Insignificant Joint Ventures or Associated Enterprises
Unit: RMB
Closing balance/2025 Opening balance/2024
287Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Joint ventures:
Total carrying amount of investment 184806652.92 180300594.89
The total of following items according to
the shareholding proportions
--Net profit 4506058.03 1112039.74
--Total comprehensive income 4506058.03 1112039.74
(5) Note to the Significant Restrictions on the Ability of Joint Ventures or Associated Enterprises to
Transfer Funds to the Company
None.
(6) The Excess Loss of Joint Ventures or Associated Enterprises
None.
(7) The Unrecognized Commitment Related to Investment to Joint Ventures
None.
(8) Contingent Liabilities Related to Investment to Joint Ventures or Associated Enterprises
None.
4. Significant Common Operation
None.
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:
None.
6. Other information
None.XI Government Grants
1. Government Grants Recognized at the Receivable Amount at the End of the Reporting Period
□ Applicable□ Not applicable
Reasons for failing to receive government grants in the estimated amount at the expected time
□ Applicable□ Not applicable
2. Liability Items Involving Government Grants
□ Applicable □ Not applicable
Unit: RMB
Opening
Item Amount of Amount Amount
Other Closing Related to
balance newly recorded into transferred to changes balance assets/related
288Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
subsidy non- other income to income
operating in the period
income in the
period
Deferred 68183747.3 59118579.1 19854824.1 107447502. Related to
income 8 3 4 37 assets
Deferred 13975402.8 10046592.6 Related to
5555432.569484242.70
income 0 6 assets
3. Government Grants through Profit or Loss
□ Applicable □ Not applicable
Unit: RMB
Accounting items 2025 2024
Other income 56265775.09 49901371.11
XII The Risk Related to 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 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
289Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
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 centralized 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 December 31 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 December 31 2025 the
Company’s fixed interest rate loan balance was RMB948516391.40 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.As at December 31 2025 if the expected prices of the Group’s various equity instrument investments
290Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
increase or decrease by 1% and other factors remain unchanged the Group shall increase or decrease
comprehensive income by approximately RMB3437264.37 (December 31 2024: increasing or decreasing
comprehensive income by approximately RMB1059041.21).
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
None.
(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 financial Amount of financial Basis for determining
Transfer methods Derecognition
assets transferred assets transferred derecognition
Due to the low credit
risk and deferred
payment risk of bank
acceptance bills in
accounts receivable
Bills endorsement Accounts receivable
financing and the
financing 324928685.64 Yes transfer of interest raterisk related to the bills
to the bank it can be
concluded that almost
all risks and rewards of
ownership of the bills
have been transferred
Almost all risks and
Bills discounting Accounts receivable 245308325.22 Yes rewards related to thefinancing ownership of the bills
have been transferred
Almost all risks and
Bills endorsement Notes receivable 76009751.15 Yes rewards related to theownership of the bills
have been transferred
Retaining almost all
Bills endorsement Notes receivable 71787013.90 No risks and rewards
including default risks
291Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
associated with them
Retaining almost all
Bills discounting Notes receivable 500000.00 No risks and rewardsincluding default risks
associated with them
Retaining almost all
Cloud Credit
endorsement Accounts receivable 1050000.00 No
risks and rewards
including default risks
associated with them
Total 719583775.91
(2) Financial Assets Derecognized due to Transfer
□ Applicable □ Not applicable
Unit: RMB
Method of financial assets Amount of derecognized Gains or losses related to
Item
transfer financial assets derecognition
Accounts receivable financing Bills endorsement 324928685.64
Accounts receivable financing Bills discounting 245308325.22 -680666.22
Notes receivable Bills endorsement 76009751.15
Total 646246762.01 -680666.22
(3) Continued Involvement in the Transfer of Assets Financial Assets
□ Applicable □ Not applicable
Unit: RMB
Amount of assets resulting Amount of liabilities resulting
Item Method of assets transfer
from continued involvement from continued involvement
Notes receivable 72287013.90 72287013.90
Of which: Bank’s acceptance
Bills endorsement 71768153.90 71768153.90
bill
Commercial
Bills endorsement 18860.00 18860.00
acceptance bill
Bank’s acceptance
Bills discounting 500000.00 500000.00
bill
Accounts receivable Cloud Credit endorsement 1050000.00 1050000.00
Total 73337013.90 73337013.90
XIII The Disclosure of Fair Value
1. Closing Fair Value of Assets and Liabilities at Fair Value
Unit: RMB
Closing fair value
Item Level 1 fair value Level 2 fair value Level 3 fair value
measurement measurement measurement Total
I. Consistent fair value
--------
measurement
(I) Trading financial
2768997.332768997.33
assets
1. Financial assets at 2768997.33 2768997.33
292Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
fair value through
profit or loss
(1) Investments in
2768997.332768997.33
equity instruments
(II) Other investments
1149946415.981149946415.98
in debt obligations
(III) Other equity
421011500.1050782543.80471794043.90
instrument investment
(IV) Receivable
415949788.02415949788.02
financing
Total assets measured
at fair value on a 423780497.43 1149946415.98 466732331.82 2040459245.23
recurring basis
II. Inconsistent fair
--------
value measurement
2. Basis for determining the market value of continuing and discontinuing level 1 fair value measurement
items
Level 1 fair value measurements are determined based on the market price of equities at the balance sheet
date and the mid-price of the RMB exchange rate published by the State Administration of Foreign Exchange as
quoted prices in an active market.
3. Continuing and discontinuing Level 2 fair value measurement items qualitative and quantitative
information on the valuation techniques used and significant parameters
The fair value of financial products subscribed by the Group and other investments in debt obligations that
are measured at fair value is determined by reference to the expected rate of return provided by the financial
institutions.
4. Continuing and discontinuing Level 3 fair value measurement items qualitative and quantitative
information on the valuation techniques used and significant parameters
(1) The Company measured the investment at cost as a reasonable estimate of fair value because there
were no significant changes in the business environment and operating and financial conditions of the investee
companies GF Bank Foshan Nanhai District United Guangdong New Light Source Industry Innovation Center
Beijing Glory Alliance Semiconductor Lighting Industry Investment Center Guangdong Rising Hundred
Counties Thousand Towns and Ten Thousand Villages High Quality Development Project Industrial
Investment Fund of Funds Partnership Enterprise (Limited Partnership) and Guangdong Rising Finance Co.Ltd.
293Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) The Company measured the investee Shenzhen Sinohao (Group) Co. Ltd. at nil as a reasonable
estimate of fair value due to the deterioration of its business environment and operating and financial conditions.
(3) The receivables financing represents bank acceptance notes held by the Company with a short
remaining maturity the face value of which approximates the fair value and the face amount is used to
recognize the fair value at the statement date.
5. Sensitiveness Analysis on Unobservable Parameters and Adjustment Information between Beginning
and Ending Carrying Value of Consistent Fair Value Measurement Items at Level 3
None.
6. Explain the Reason for Conversion and the Governing Policy when the Conversion Happens if
Conversion Happens among Consistent Fair Value Measurement Items at Different Levels
None.
7. Changes in the Valuation Technique in the Period and the Reason for Such Changes
None.
8. Fair Value of Financial Assets and Liabilities Not Measured at Fair Value
Financial assets and liabilities not measured at fair value include: monetary assets accounts receivable and
accounts payable etc. There is small difference between the carrying value of above financial assets and
liabilities and fair value.
9. Other information
None.XIV Related Party and Related-party Transactions
1. The parent company of the Company
Proportion of
Proportion of share voting rights
Name Registration place Nature of business Registered capital held by the parent owned by thecompany against parent company
the Company (%) against the
Company (%)
Hongkong Wah
Shing Holding Hong Kong Investment HKD412.737 12.85% 12.85%
Company Limited million
Guangdong
Electronics
Information Guangzhou Production and
Industry Group sales
RMB1.162 billion 9.35% 9.35%
Ltd.
294Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Guangdong Rising
Holdings Group Guangzhou Investment RMB10 billion 8.45% 8.45%
Co. Ltd.Rising Investment
Development Hong Kong Investment RMB0.42 billion 1.66% 1.66%
Limited and HKD1 million
Total 32.31% 32.31%
Notes to the parent company
Hongkong Wah Shing Holding Company Limited (hereinafter referred to as “Hongkong Wah Shing”) the
largest shareholder of the Company is a wholly-owned subsidiary of Guangdong Electronics Information
Industry Group Ltd. (hereinafter referred to as “Electronics Group”) and Electronics Group and Rising
Investment Development Limited (hereinafter referred to as “Hongkong Rising Investment”) are wholly-ownedsubsidiaries of Guangdong Rising Holdings Group Co. Ltd. (hereinafter referred to as “Rising HoldingsGroup”). According to the relevant provisions of the Company Law and the Measures for the Administrative
Measures on Acquisition of Listed Companies Hongkong Wah Shing Electronics Group and Hongkong
Rising Investment are concerted actors of Rising Holdings Group and Rising Holdings Group is the actual
controller of the Company. As at December 31 2025 the total proportion of shares held by Rising Holdings
Group and its concerted actors was 32.31%.The final controller of the Company is Guangdong Rising Holdings Group Co. Ltd.
2. Subsidiaries of the Company
Refer to Note X Equity in Other Entities -1. Equity in Subsidiaries for details.
3. Information on the Joint Ventures and Associated Enterprises of the Company
Refer to Note X Equity in Other Entities-3. Equity in Joint Ventures or Associated Enterprises for details
of significant joint ventures or associated enterprises of the Company.
4. Information on Other Related Parties
Name Relationship with the Company
Guangdong Zhongren Group Construction Co. Ltd. Under same actual controller
Guangdong Rising Research and Development Institute Co.Under same actual controller
Ltd.Guangdong Rising Digital Technology Co. Ltd. Under same actual controller
Guangdong Xintaochip Microelectronics Co. Ltd. Under same actual controller
Shenzhen Yuedin Precise Machinery Co. Ltd. Under same actual controller
Guangdong Rising Urban Services Co. Ltd. Under same actual controller
Shenzhen Yuepeng Construction Co. Ltd. Under same actual controller
Primatronix Nanho Technology Ltd. Under same actual controller
Zhuhai Dongjiang Environmental Protection Technology Co.Under same actual controller
Ltd.
295Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Guangdong Fenghua New Energy Co. Ltd. Under same actual controller
Shenzhen Longgang Dongjiang Industrial Waste Treatment
Under same actual controller
Co. Ltd.Shenzhen Primatronix (Nanho) Electronics Ltd. Under same actual controller
Guangdong Rising Commercial Development Co. Ltd. Under same actual controller
Zhuhai Doumen District Yongxingsheng Environmental
Industry Waste Recovery and Comprehensive Treatment Co. Under same actual controller
Ltd.Foshan Fulong Environmental Technology Co. Ltd. Under same actual controller
Jiangmen Dongjiang Environmental Company Limited Under same actual controller
Guangdong Yixin Changcheng Construction Group Under same actual controller
Guangdong Rising South Construction Co. Ltd. Under same actual controller
Guangdong Rising Hydrogen Energy Co. Ltd. Under same actual controller
Guangdong Fenghua Advanced Technology (Holding) Co.Under same actual controller
Ltd.Guangdong Zhongnan Construction Co. Ltd. Under same actual controller
Guangzhou Haixinsha Industrial Co. Ltd. Under same actual controller
Guangdong Huajian Enterprise Group Co. Ltd. Under same actual controller
Guangzhou Huajian Business Development Co. Ltd. Under same actual controller
Guangzhou Shengfeng Catering Management Service Co. Ltd. Under same actual controller
Guangdong Rising Cultural Industry Development Co. Ltd. Under same actual controller
Ramada Pearl Hotel Guangzhou Under same actual controller
Guangzhou Changjian Property Management Co. Ltd. Under same actual controller
Guangdong Zhuyuan Construction Engineering Co. Ltd. Under same actual controller
Shandong Zhongjin Lingnan Copper Co. Ltd. Under same actual controller
Guangdong Rising Mining Group Co. Ltd. Under same actual controller
Shantou Rising Infrastructure Construction Investment Co.Under same actual controller
Ltd.Guangzhou Wanshun Investment Management Co. Ltd. Under same actual controller
Guangdong Rising Finance Co. Ltd. Under same actual controller
Shenzhen Zhongjin Lingnan Nonfemet Co. Ltd. Under same actual controller
Guangdong Zhongjin Lingnan Engineering Technology Co.Under same actual controller
Ltd.Guangdong Huajian Engineering Construction Co. Ltd. Under same actual controller
Guangdong Semiconductor Device Factory Under same actual controller
Nanning Ruixiang Industrial Investment Co. Ltd. Enterprise significantly affected by related natural person
Hangzhou Times Lighting Electric Appliances Co. Ltd. Enterprise controlled by related natural person
Traxon Technologies Limited Enterprise controlled by related natural person
Prosperity (China) Electrical Company Limited Enterprise controlled by related natural person
PROSPERITY LAMPS & COMPONENTS LTD Shareholder owning over 5% shares
5. List of Related-party Transactions
(1) Information on Acquisition of Goods and Reception of Labor Service
Information on acquisition of goods and reception of labor service:
Unit: RMB
Related party Content The approval trade Whether exceed2025 2024
credit trade credit or not
Guangdong Rising
Digital Receiving labor
2406983.19 58500000.00 No
Technology Co. service
Ltd.
296Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Guangdong
Xintaochip Purchase of
2391068.173484936.83
Microelectronics materials
Co. Ltd.Guangdong Rising
Receiving labor
Holdings Group 1837359.25 1428.57
service
Co. Ltd.Shenzhen Yuedin
Purchase of
Precise Machinery 1029215.04
materials
Co. Ltd.Guangdong
Electronics
Purchase of
Information 661845.13 638973.44
materials
Industry Group
Ltd.Shenzhen
Yuepeng Receiving labor
458808.312340079.65
Construction Co. service
Ltd.Guangdong
Electronics
Receiving labor
Information 334114.52
service
Industry Group
Ltd.Primatronix Nanho Receiving labor
216716.81433225.66
Technology Ltd. service
Zhuhai Dongjiang
Environmental
Receiving labor
Protection 154479.29 434246.54
service
Technology Co.Ltd.Guangdong Rising
Receiving labor
Hydrogen Energy 153318.59 316592.93
service
Co. Ltd.Shenzhen Yuedin
Receiving labor
Precise Machinery 91504.44
service
Co. Ltd.Guangdong
Receiving labor
Fenghua New 57430.97 59566.39
service
Energy Co. Ltd.Shenzhen
Longgang Receiving labor
44188.9851756.22
Dongjiang service
Industrial Waste
297Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Treatment Co.Ltd.Shenzhen
Primatronix Receiving labor
35605.26
(Nanho) service
Electronics Ltd.Zhuhai Doumen
District
Yongxingsheng
Environmental
Receiving labor
Industry Waste 7907.50 45166.12
service
Recovery and
Comprehensive
Treatment Co.Ltd.Foshan Fulong
Environmental Receiving labor
3021.3085601.30
Technology Co. service
Ltd.Jiangmen
Dongjiang Receiving labor
2169.812169.81
Environmental service
Company Limited
Primatronix Nanho Purchase of
62017.70
Technology Ltd. materials
Guangdong Rising
South Receiving labor
652798.17
Construction Co. service
Ltd.Guangdong
Fenghua
Advanced Purchase of
12570252.88 24100000.00 No 6884215.25
Technology materials
(Holding) Co.Ltd.Guangdong
Receiving labor
Huajian Enterprise 7114584.50 49237.92
service
Group Co. Ltd.Guangzhou
Receiving labor
Haixinsha 1557246.80 17000000.00 No 3724279.84
service
Industrial Co. Ltd.Guangzhou
Receiving labor
Huajian Business 202232.70 240408.74
service
Development Co.
298Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Ltd.Guangzhou
Shengfeng
Receiving labor
Catering 8391471.24 4135911.57
service
Management
Service Co. Ltd.Guangdong Rising
Receiving labor
Urban Services 1018409.80 154938.02
service
Co. Ltd.Guangdong Rising
Cultural Industry Receiving labor
279302.61296727.85
Development Co. service
Ltd.Guangdong Rising
Cultural Industry Purchase of 15000000.00 No
151046.204911.86
Development Co. materials
Ltd.Guangdong Rising
Commercial Receiving labor
38879.9990119.99
Development Co. service
Ltd.Ramada Pearl Receiving labor
35725.28
Hotel Guangzhou service
Guangzhou
Changjian
Receiving labor
Property 1835.22
service
Management Co.Ltd.PROSPERITY
LAMPS & Purchase of
292857.08
COMPONENTS materials
LTD
1000000.00 No
Hangzhou Times
Lighting Electric Purchase of
1300.88
Appliances Co. materials
Ltd.Guangdong
Zhongnan Receiving labor
49179363.76 No 12439305.64
Construction Co. service
Ltd.Guangdong
Zhongren Group Receiving labor
14065752.08 No 15317313.48
Construction Co. service
Ltd.
299Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Guangdong Yixin
Changcheng Receiving labor
No 3923726.90
Construction service
Group
Total 104784696.70 115600000.00 55870957.27
Information of sales of goods and provision of labor service:
Unit: RMB
Related party Content 2025 2024
Guangdong Fenghua
Advanced Technology Sale of products 9664295.72 10819750.06
(Holding) Co. Ltd.PROSPERITY LAMPS &
Sale of products 7887746.25 9616900.56
COMPONENTS LTD
Traxon Technologies Limited Sale of products 2535033.91 952271.46
Guangdong Zhongnan
Sale of products 1920777.22 96507.96
Construction Co. Ltd.Primatronix Nanho
Sale of products 1280555.57
Technology Ltd.Guangdong Xintaochip
Sale of products 411591.87 1791682.84
Microelectronics Co. Ltd.Guangdong Zhuyuan
Construction Engineering Sale of products 31156.00
Co. Ltd.Guangdong Rising Holdings
Providing labor services 11179.25 52.83
Group Co. Ltd.Guangdong Zhongren Group
Sale of products 2953.27 5504.59
Construction Co. Ltd.Shandong Zhongjin Lingnan
Sale of products 9102.65
Copper Co. Ltd.Guangdong Rising Mining
Sale of products 99577.88
Group Co. Ltd.Shantou Rising Infrastructure
Construction Investment Co. Sale of products 1426923.55
Ltd.Guangzhou Wanshun
Investment Management Co. Sale of products 59565.75
Ltd.Guangdong Huajian
Providing labor services 9971631.35
Enterprise Group Co. Ltd.Guangdong Zhongnan
Providing labor services 157296.05 452550.02
Construction Co. Ltd.Primatronix Nanho
Providing labor services 22166.04
Technology Ltd.Guangdong Yixin
Changcheng Construction Providing labor services 121035.60
Group
Total 33896382.50 25451425.75
Notes:
1) The pricing policy for related-party transactions between the Company and its related parties is as
follows:
300Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
The pricing of related-party transactions should be market-oriented and subject to the market prices when
such a transaction occurs. The relevant funds should be paid on time according to the actual transaction.
2) The related-party transactions between the Company and its subsidiaries and between subsidiaries have
been offset during report consolidation.
(2) Information on Related-party Trusteeship/Contract
Lists of trusteeship/contract:
None
Lists of entrust/contractee:
Unit: RMB
Charge
Name of the Name of the
recognized in
entruster/contra entrustee/ Type Start date Due date Pricing basis
this Reporting
ctee contractor
Period
Guangdong
Foshan
Zhongren
NationStar December 30 December 31
Group
Optoelectronics 2020 2022
Construction
Co. Ltd.Co. Ltd.Guangdong
Foshan
Yixin
Electrical and December 29
Changcheng May 28 2021
Lighting Co. 2022
Construction
Ltd.Group
Guangdong
Foshan
Yixin
Electrical and December 11
Changcheng March 1 2022
Lighting Co. 2022
Construction
Ltd.Group
Foshan Kelian Guangdong
New Energy Zhongnan December 23
June 23 2021
Technology Construction 2022
Co. Ltd. Co. Ltd.Foshan Kelian Guangdong
New Energy Huajian December 31
January 1 2025
Technology Enterprise 2034
Co. Ltd. Group Co. Ltd.Notes:
1) The Company’s subsidiary Foshan NationStar Optoelectronics Co. Ltd. entered into the General
Contracting Contract of NationStar Optoelectronics for the Survey Design and Construction of the Geely
Industrial Park with Guangdong Zhongren Group Construction Co. Ltd. Guangdong Architectural Design &
Research Institute Co. Ltd. and CSIC International Engineering Co. Ltd. on December 30 2020. The above
parties take charge of the survey design and construction of the Geely Industrial Park. The total price of the
301Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
contract is RMB509.2925 million. As at the end of the Reporting Period the construction had been completed
and accepted but the final settlement had not yet been completed.
2) The Company entered into the General Contracting Contract of Foshan Electrical and Lighting Co. Ltd.
for the Design and Construction of the Office Buildings of Gaoming Headquarters Production Base Phase II
with Guangdong Yixin Changcheng Construction Group Co. Ltd. and Guangdong Architectural Design &
Research Institute Co. Ltd. on May 28 2021. The above parties take charge of the design and construction of
Gaoming office buildings. The total price of the contract is RMB175025600 and the planned total
construction period is 560 calendar days (560 days for construction including 90 days for design). The project
has now been settled with a settlement amount of RMB166.60 million.
3) On March 1 2022 the Company signed a General Contract for Design and Construction of the Smart
LED Lighting Production Factory Buildings 1-3 at the Gaoming Production Base of Foshan Electrical and
Lighting Co. Ltd. with Guangdong Yixin Changcheng Construction Group and Guangdong Architectural
Design & Research Institute Co. Ltd. The aforementioned companies were responsible for the design and
construction of the three buildings in Gaoming. The tentative total contract value was RMB129.9914 million
with a planned total construction period of 285 calendar days (30 days for design and 255 days for construction).The project has now been settled with a settlement amount of RMB115.00 million.
4) On June 23 2021 the Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd. signed a
General Contract for Design and Construction of the Decoration Engineering of Kelian Building with
Guangdong Zhongnan Construction Co. Ltd. and Guangdong Architectural Design & Research Institute Co.Ltd. The aforementioned companies were responsible for the interior design and construction of the building.The tentative total contract value was RMB189.0702 million with a planned total construction period of 240
calendar days (60 days for design and 210 days for Building 2 and 240 days for Building 1). The construction
period for the self-use floors starts from the actual commencement of construction. The project has now been
completed and accepted.
5) On April 21 2023 the Company’s subsidiary Foshan Kelian New Energy Technology Co. Ltd. signed
the Kelian Building Operation and Leasing Service Contract and the Kelian Building Property Management
Service Contract with Huajian Group. The industrial (R&D center) area (located in Building 1) commercial
(service apartments) commercial (shops) and part of the underground parking lot totaling 70340.04 square
meters were entrusted to Huajian Group for operation and leasing. The operation and leasing service period is
302Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
10 years from January 1 2025.
(3) Information on Related-party Lease
The Company was lessor:
Unit: RMB
The lease income confirmed The lease income confirmed
Name of lessee Category of leased assets
in the Reporting Period in the same period of last year
Guangdong Rising Research
and Development Institute
Plant 1431053.73 1353643.59
Co. Ltd. and its majority-
owned subsidiaries
The Company served as the lessee:
Unit: RMB
Rental expenses of Variable lease
short-term lease payments not
Income expense of
Name Type of simplified treated included in the Increased right-of-Paid rent lease liabilities
of assets and low-value measurement of use assetsundertaken
lessor leased asset lease (if lease liabilities (if
applicable) applicable)
2025202420252024202520242025202420252024
Guangd
ong
Rising
Comme Buildin
rcial gs and
31706.34769713312.5495.610572356782
structur 00 .25 48 3 13.99 .85
Develo es
pment
Co.Ltd.Guangd
ong
Rising Buildin
Holdin gs and 48253 689145 415163 160686 52633. 12379
gs structur 14.12 .18 .67 .36 89 546.50
Group es
Co.Ltd.Nannin
g
Ruixian
g Buildin
Industri gs and 8000.0 6000.0
al structur 0 0
Investm es
ent Co.Ltd.
(4) Information on Related-party Guarantee
None.
303Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(5) Information on Inter-bank Lending of Capital of Related Parties
None.
(6) Information on Assets Transfer and Debt Restructuring by Related Party
None.
(7) Information on Remuneration for Key Management Personnel
Unit: RMB
Item 2025 2024
Chairman of the Board 1411411.67 2884609.72
General Manager 1796887.77 2641336.55
Secretary of the Board 772727.54 768328.52
Chief Financial Officer 2392451.15 2535084.65
Others 8213564.75 9586687.29
Total 14587042.88 18416046.73
Note: Pursuant to the relevant provisions of the Company Law and the Articles of Association the
Company no longer established a supervisory committee during the current period. Consequently the
remuneration for key management personnel disclosed for the period excluded the remuneration for supervisors.To maintain comparability of the financial information the remuneration for key management personnel
disclosed for the prior period has been adjusted accordingly to exclude supervisors’ remuneration and only the
remuneration for directors and senior management was presented.
(8) Other Related-party Transactions
In accordance with the new Financial Service Agreement signed by the Company in 2025 the total
maximum daily deposit balance of the Company and its majority-owned subsidiaries deposited in Guangdong
Rising Finance Co. Ltd. shall not exceed RMB1.5 billion and the general credit limit provided by Guangdong
Rising Finance Co. Ltd. for the Company and its majority-owned subsidiaries shall not exceed RMB2 billion.As of December 31 2025 the deposit balance of the Company and its subsidiaries deposited in Guangdong
Rising Finance Co. Ltd. is RMB1331.1528 million. The undue interest receivable is RMB2.4229 million.
6. Amounts Due from and to Related Parties
(1) Amounts Due from Related Parties
Unit: RMB
Closing balance Opening balance
Item Related party
Gross amount Bad debt provision Gross amount Bad debt provision
Monetary capital- Guangdong Rising
2386097.695153062.03
accrued interest Finance Co. Ltd.
304Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Other current
Guangdong Rising
assets-accrued 36821.92 105555.56
Finance Co. Ltd.interest
Guangdong
Fenghua
Accounts Advanced
4085558.4681711.175584276.94111685.54
receivable Technology
(Holding) Co.Ltd.Guangdong
Accounts Zhongnan
3404563.06424210.813453458.25422680.16
receivable Construction Co.Ltd.Guangdong Yixin
Accounts Changcheng
2057688.05952097.392332537.86623014.72
receivable Construction
Group
PROSPERITY
Accounts LAMPS &
1430261.2142907.842558600.7476758.02
receivable COMPONENTS
LTD
Guangdong
Accounts
Huajian Enterprise 1364775.80 40943.27
receivable
Group Co. Ltd.Shantou Rising
Infrastructure
Accounts
Construction 746660.40 74666.04 1555346.68 46660.40
receivable
Investment Co.Ltd.Guangdong
Zhuyuan
Accounts
Construction 510276.71 153083.01 510276.71 51027.67
receivable
Engineering Co.Ltd.Shenzhen
Accounts Zhongjin Lingnan
504147.00151244.10504147.0050414.70
receivable Nonfemet Co.Ltd.Traxon
Accounts
Technologies 186687.47 5600.62
receivable
Limited
Guangdong
Accounts Zhongren Group
158114.2046533.22239918.2223991.82
receivable Construction Co.Ltd.Guangdong
Zhongjin Lingnan
Accounts
Engineering 138827.00 41648.10 138827.00 13882.70
receivable
Technology Co.Ltd.Guangdong
Huajian
Accounts
Engineering 44297.00 44297.00 44297.00 35437.60
receivable
Construction Co.Ltd.Accounts Shandong
10286.001028.6010286.00308.58
receivable Zhongjin Lingnan
305Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Copper Co. Ltd.Guangdong
Accounts Xintaochip
355473.157109.46
receivable Microelectronics
Co. Ltd.Guangdong Rising
Accounts
Holdings Group 15206.96 1520.70
receivable
Co. Ltd.Guangdong
Fenghua
Advanced
Notes receivable 50050.43
Technology
(Holding) Co.Ltd.Prosperity (China)
Prepayments Electrical 39428.00 39428.00
Company Limited
Guangdong Rising
Prepayments Urban Services 25179.20 60317.70
Co. Ltd.Guangdong Rising
Prepayments Holdings Group 1526.84 13959.24
Co. Ltd.Guangdong
Fenghua
Advanced
Prepayments 148.68
Technology
(Holding) Co.Ltd.Guangdong
Other receivables Huajian Enterprise 1097753.73 79968.99 2587607.38 203049.97
Group Co. Ltd.Guangdong
Other receivables Semiconductor 816441.49 816441.49 816441.49 816441.49
Device Factory
Guangdong Rising
Other receivables Holdings Group 589341.72 58689.87 586288.04 17588.64
Co. Ltd.Nanning Ruixiang
Industrial
Other receivables 5000.00 1500.00 5000.00 500.00
Investment Co.Ltd.Guangdong Rising
Other receivables Urban Services 50.00 1.00
Co. Ltd.Guangdong Rising
Commercial
Other receivables 74761.92 6868.51
Development Co.Ltd.Guangdong
Zhongren Group
Other receivables 304.31 30.43
Construction Co.Ltd.Total 19689833.38 3016572.52 26745526.86 2508971.11
306Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(2) Amounts Due to Related Parties
Unit: RMB
Item Related party Gross amount at period-Gross amount at period-end
beginning
Guangdong Fenghua
Notes payable Advanced Technology 4762313.67 119158.00
(Holding) Co. Ltd.Shenzhen Yuedin Precise
Notes payable 567107.38
Machinery Co. Ltd.Guangdong Xintaochip
Notes payable 375707.77
Microelectronics Co. Ltd.Guangdong Electronics
Notes payable Information Industry Group 300000.00
Ltd.Primatronix Nanho
Notes payable 74812.50
Technology Ltd.Guangdong Zhongren Group
Accounts payable 30918712.83 99422072.40
Construction Co. Ltd.Guangdong Fenghua
Accounts payable Advanced Technology 6577618.93 3976905.41
(Holding) Co. Ltd.Shenzhen Yuepeng
Accounts payable 1381887.30 1381887.30
Construction Co. Ltd.Guangdong Electronics
Accounts payable Information Industry Group 981780.71 638973.44
Ltd.Shenzhen Yuedin Precise
Accounts payable 541449.62
Machinery Co. Ltd.Guangdong Xintaochip
Accounts payable 393877.11 2560606.36
Microelectronics Co. Ltd.Guangzhou Shengfeng
Accounts payable Catering Management Service 56677.20 99516.27
Co. Ltd.Guangdong Rising Cultural
Accounts payable Industry Development Co. 41732.52 14567.75
Ltd.Shenzhen Longgang
Accounts payable Dongjiang Industrial Waste 8360.98 7352.40
Treatment Co. Ltd.Primatronix Nanho
Accounts payable 2427.50 95998.00
Technology Ltd.Nanning Ruixiang Industrial
Accounts payable 2000.00
Investment Co. Ltd.Zhuhai Dongjiang
Accounts payable Environmental Protection 1279.98
Technology Co. Ltd.Guangzhou Haixinsha
Accounts payable 1003260.00
Industrial Co. Ltd.Guangdong Fenghua New
Accounts payable 53946.92
Energy Co. Ltd.Nanning Ruixiang Industrial
Other payables 67046577.48 91046577.48
Investment Co. Ltd.Guangdong Zhongnan
Other payables 53974917.16 38499432.70
Construction Co. Ltd.Other payables Guangdong Huajian 4593253.20 5215652.63
307Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Enterprise Group Co. Ltd.Shenzhen Yuepeng
Other payables 549689.05 499150.37
Construction Co. Ltd.Guangzhou Shengfeng
Other payables Catering Management Service 429240.00 347000.00
Co. Ltd.Guangdong Rising Digital
Other payables 271989.10
Technology Co. Ltd.Guangdong Xintaochip
Other payables 182140.00 8429.40
Microelectronics Co. Ltd.Guangdong Fenghua
Other payables Advanced Technology 35015.07 5035015.07
(Holding) Co. Ltd.Guangdong Rising Urban
Other payables 25179.20
Services Co. Ltd.Primatronix Nanho
Other payables 13624.00 13624.00
Technology Ltd.Guangdong Rising Holdings
Other payables 8002.41
Group Co. Ltd.Guangdong Electronics
Other payables Information Industry Group 5000.00
Ltd.Shenzhen Yuedin Precise
Other payables 5000.00
Machinery Co. Ltd.Guangdong Yixin
Other payables Changcheng Construction 52340650.63
Group
Contract liabilities other Primatronix Nanho
170449.52218729.24
current liabilities Technology Ltd.Contract liabilities other Guangdong Xintaochip
91070.00
current liabilities Microelectronics Co. Ltd.Contract liabilities other PROSPERITY LAMPS &
58112.0059428.00
current liabilities COMPONENTS LTD
Guangdong Fenghua
Other current liabilities Advanced Technology 158791.43 693580.58
(Holding) Co. Ltd.Guangzhou Haixinsha
Other current liabilities 464919.17
Industrial Co. Ltd.Guangdong Zhongren Group
Other current liabilities 150000.00
Construction Co. Ltd.Total 174530983.12 304041246.02
7. Commitments of Related Parties
Commi Promisor Date of commitment Term oftment making commitment Fulfillment Commitment
Electronics Group and
Hong Kong Rising December 4 2015 Long-term Ongoing
Investment
1 About avoidance ofhorizontal competition Rising Holdings Group November 4 2021 Long-term Ongoing
Rising Holdings Group
Rising Capital and October 27 2021 Long-term Ongoing
Hongkong Wah Shing
308Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Electronics Group and
Hong Kong Rising December 4 2015 Long-term Ongoing
Investment
About reduction and
2 regulation of related- Rising Holdings Group November 4 2021 Long-term Ongoing
party transactions
Rising Holdings Group
Rising Capital and October 27 2021 Long-term Ongoing
Hongkong Wah Shing
Electronics Group and
Hong Kong Rising December 4 2015 Long-term Ongoing
3 About independence Investment
Rising Holdings Group November 4 2021 Long-term Ongoing
Rising Holdings Group
About effective Rising Capital Electronics
4 performance of Group Hongkong Wahmeasures to fill up Shing Hong Kong Rising October 27 2021 Long-term Ongoing
returns Investment and Shenzhen
Rising Investment
About compensation
for possible violations Rising Holdings Group
5 of laws and regulations Electronics Group and October 27 2021 Long-term Ongoing
by NATIONSTAR Rising Capital
OPTOELECTRONICS
About the truthfulness Rising Holdings Group
accuracy and Electronics Group and October 27 2021 Long-term Ongoing
6 completeness of the
Rising Capital
information provided
during this major asset Director and senior
restructuring management office of FSL October 27 2021 Long-term Ongoing
About the clarity of the Electronics Group October 27 2021 Long-term Ongoing
7 underlying assets ofthis major asset Rising Holdings Group
restructuring and Rising Capital October 27 2021 Long-term Ongoing
About measures to fill
up returns for risks
8 arising from diluting Director and seniorimmediate return in management office of FSL October 27 2021 Long-term Ongoing
major asset
restructuring
About the measures to
fill up immediate
9 returns diluted by the Director and seniormanagement office of FSL March 14 2023 Long-term Ongoingissuance of A-shares to
specific objects in 2023
About matters on Directors and senior
10 special self-inspection management of FSL March 14 2023 Long-term Ongoing
of the real estate Rising Holdings GroupElectronics Group
309Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
business Hongkong Wah Shing
Hong Kong Rising
Investment
About the effective
fulfillment of measures Rising Holdings Group
11 taken by controlling
Electronics Group
shareholders and de Hongkong Wah Shing March 14 2023 Long-term Ongoing
facto controller to fill Hong Kong Rising
up immediate returns Investment
Notification Letter
12 Regarding the Increasein Foshan Lighting Electronics Group November 18 2024
Within six months starting from
November 20 2024. Completed
Shares
8. Other information
None.XV. Share-based Payment
1. The Overall Situation of Share-based Payments
□ Applicable□ Not applicable
2. Equity-settled Share-based Payments
□ Applicable□ Not applicable
3. Cash-settled Share-based Payments
□ Applicable□ Not applicable
4. Share-Based Payment Expenses for the Period
□ Applicable□ Not applicable
5. Modification and Termination of Share-based Payment
None.
6. Other information
None.XVI Commitments and Contingencies
1. Significant Commitments
Significant commitments on the balance sheet date
(1) Commitments of cash dividends
Commitment maker: the Company
Contents of Commitment: The Company’s profit distributed in cash shall not be less than 30% of the
310Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
distributable profit realized in the year.Date of commitment making: May 27 2009
Term of commitment: Till the completion of the issuance of A-shares to specific objects in 2023.Fulfillment: In execution.
(2) Commitments of the development of Haikou plot
In November 2021 Hainan Technology a wholly-owned subsidiary of the Company acquired an
industrial land located in Mei’an Science and Technology New City Haikou with a land area of 34931.13
square meters and a land price of RMB26596784.43. In the same month Hainan Technology signed the
Agreement on Industrial Project Development and Land Access with Haikou National High-tech IndustrialDevelopment Zone Management Committee (hereinafter referred to as the “Haikou Development ZoneManagement Committee”). The agreement stipulates that the above-mentioned plot is used for the development
of marine lighting R&D and manufacturing base projects and the investment of fixed assets is approximately
RMB314 million (including plants equipment and land equivalent to RMB6 million per mu. Hainan
Technology promises to complete the planning scheme design within two months from the date of signing the
Confirmation of Listing and Transferring the Right to Use State-owned Construction Land; complete the
construction drawing design within three months after completing the planning scheme design and obtain the
Building Construction Permits and start construction at the same time (subject to the foundation concrete
pouring of the main buildings).The project will be put into production within 18 months from the date of
signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction Land. From
the date of signing the contract to the first year after the project is put into production the accumulated tax
payment is not less than RMB10 million; the accumulated tax payment in the first two years is not less than
RMB27.4 million; the accumulated tax payment in the first three years is not less than RMB67.1 million; the
accumulated tax payment in the first four years is not less than RMB117 million; the accumulated tax payment
in the five years is not less than RMB203 million. The total industrial output value (or revenue) in the first year
after the project is put into production is not less than RMB218 million; the accumulated value in the first two
years is not less than RMB433 million; the accumulated value in the first three years is not less than RMB929
million; the accumulated value in the first four years is not less than RMB1.548 billion; the accumulated value
in the five years is not less than RMB2.62 billion. If the project fails to start construction within 12 months from
the date of signing the Confirmation of Listing and Transferring the Right to Use State-owned Construction
311Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Land due to Hainan Technology reasons the Haikou Development Zone Management Committee has the right
to unilaterally terminate the contract and the municipal government will recover the land use rights according to
law; if the total amount of tax paid in the year after the project is put into production does not reach the total
annual tax payment as agreed Hainan Technology shall pay liquidated damages to the Haikou Development
Zone Management Committee according to the difference; if Hainan Technology has idle land not due to
government reasons and force majeure the municipal government shall collect idle land fees or recover the
right to use state-owned construction land. As at the date of this report the first phase of the Hainan Industrial
Park has been completed and put into production.
2. Contingencies
(1) Significant Contingency on Balance Sheet Date
1) Litigation between the Company and Yinghe (Shenzhen) Robotics and Automation Technology Co.
Ltd.Yinghe (Shenzhen) Robotics and Automation Technology Co. Ltd. (hereinafter referred to as the “YingheCompany”) and the Company entered into the Bulb Lamp Intelligent Manufacturing Workshop Project
Construction Contract in 2021. The project failed to meet the final acceptance inspection criteria and after
repeated negotiations between both parties no agreement was reached. Therefore Yinghe Company filed a
lawsuit with the Chancheng District People’s Court of Foshan City in December 2023 with the amount of
RMB104.4037 million involved in litigation. In January 2024 the Company filed a counterclaim on the grounds
that the project undertaken by Yinghe Company had not reached the final acceptance standards for two years
overdue constituting a fundamental breach of contract demanding that Yinghe Company refund the contract
amount of RMB26.904 million and pay a penalty of RMB26.904 million totaling RMB53.808 million. In
September 2024 the Company received the first-instance judgment from the People’s Court of Chancheng
District Foshan City Guangdong Province: 1. The court dismissed all the claims made by Yinghe Company; 2.Yinghe Company is required to return RMB26.904 million to the Company; 3. Yinghe Company is responsible
for the costs of removing the equipment and systems located in the Foshan Lighting production workshop. Both
parties appealed and in January 2025 the case was heard in the second-instance court. In February 2025 the
Company received the second-instance judgment from the Foshan Intermediate People’s Court Guangdong
Province which upheld the original first-instance judgment. In March 2025 the Company applied for
compulsory enforcement and the case was accepted for filing in June 2025. In July 2025 RMB0.4213 million
312Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
was collected through enforcement. In November 2025 the appraisal institution appointed by the court issued
an appraisal report stating that the appraised value of the machinery and equipment owned by Yinghe Company
and located in the Company’s production workshop was RMB49.7403 million. In March 2026 the Company
received a notice from the court that the first auction of such equipment would commence on April 5 2026 at
70% of the appraised value. The first auction was unsuccessful and concluded on April 6 2026 pending the
court’s arrangement for a second auction.
2) Litigation between the Company and China Construction Fourth Engineering Division Installation
Engineering Co. Ltd.China Construction Fourth Engineering Division Installation Engineering Co. Ltd. (hereinafter referred to
as “China Construction Fourth Engineering Division”) as a customer of the Company has a dispute with the
Company over a sales contract. The Company initiated arbitration with the Guangzhou Arbitration Commission
with the subject matter of the arbitration amounting to RMB18.4201 million. In December 2024 both parties
signed a Settlement Agreement under which five properties were used to offset part of the debt with the
remaining balance to be settled in cash and commercial acceptance bills. In April 2025 the Company received a
repayment of RMB500000 from China Construction Fourth Engineering Division. In July 2025 the online
registration and filing for the five properties were completed. However China Construction Fourth Engineering
Division failed to pay the remaining cash and commercial acceptance bills as stipulated in the Settlement
Agreement.. In July 2025 the Company applied to the court for a renewal of the freeze on China Construction
Fourth Engineering Division’s bank account and the court responded that the funds in its account had been
sufficiently frozen amounting to RMB20.2943 million. The case was heard in court in October and November
2025 and in March 2026 the Company received the arbitration award for one of the cases: China Construction
Fourth Engineering Division is to pay the Company overdue payment of RMB9.9893 million and compensation
for losses arising from the overdue payment.
3) Litigation between the Company and Industrial and Commercial Bank of China Foshan Branch
In April 2023 the company engaged in foreign exchange options business with Industrial and Commercial
Bank of China Limited Foshan Branch (hereinafter referred to as “ICBC Foshan”). A dispute arose due to
transaction differences and as per the agreement ICBC Foshan was required to compensate for a difference of
RMB15.8834 million. In April 2025 the Company filed a lawsuit with the People’s Court of Chancheng
District Foshan. The case was heard in the first instance in June 2025. In November 2025 the Company
313Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
received the first-instance judgment which ordered ICBC Foshan to compensate the Company for its loss of
RMB15.8834 million plus interest. In November 2025 the Company received the notice of appeal filed by
ICBC Foshan. The second-instance hearing was originally scheduled for January 2026 but ICBC Foshan
applied to the court for an adjournment and entered into a settlement. In April 2025 the Company received
compensation of RMB4.95 million from ICBC Foshan. As at the date of this reportthis matter is still being
dealt with.
4) Litigation between the Company and Guangdong Huadeng Law Firm
In September 2017 the Company entered into a legal service agency agreement with Guangdong Huadeng
Law Firm (hereinafter referred to as “Huadeng Law Firm”) under which Huadeng Law Firm agreed to
represent the Company in the first-instance and second-instance trials and enforcement proceedings relating to
the dispute arising from the sales contract with the distributor Beijing Zhongao Zhengshi Lighting Electrical
Appliances Co. Ltd. (hereinafter referred to as “Beijing Zhongao Company”) and Jiang Zhenghao and to pay
legal fees of RMB0.109 million. In September 2017 the Chancheng District People’s Court rendered the first-
instance judgment ordering Beijing Zhongao Company to pay RMB14.2208 million plus liquidated damages
with Jiang Zhenghao bearing joint and several liability. In May 2018 Beijing Zhongao Company and Jiang
Zhenghao filed an appeal. In July 2018 the Foshan Intermediate People’s Court accepted the case for filing and
in October 2021 it rendered the second-instance judgment ordering Beijing Zhongao Company to pay the
principal of RMB11.2208 million plus liquidated damages with Jiang Zhenghao bearing joint and several
liability. In December 2021 the Company applied to the court for enforcement. In the process of asset
preservation due to a material dereliction of duty on the part of the lawyers two of Jiang Zhenghao’s properties
were not promptly reapplied for sealing upon the expiry of the sealing period enabling Jiang Zhenghao to
transfer such assets (with an estimated value of approximately RMB11.85 million) which ultimately prevented
the Company from recovering the outstanding debts. In February 2022 the Company terminated its engagement
with Huadeng Law Firm. In June 2024 the Company sent a letter to Huadeng Law Firm requesting an
explanation for its failure to promptly apply for a renewal of the seal on Jiang Zhenghao’s properties. However
to date no feedback has been received from Huadeng Law Firm. In June 2025 the Company filed a lawsuit
with the Chancheng District People’s Court in Foshan seeking a judgment ordering Huadeng Law Firm to
compensate for the losses of RMB11.35 million arising from its failure to timely renew the sealing together
with interest on the overdue compensation. In August 2025 the court served the Notice of Asset
314Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Preservation stating that RMB1.3 million of Huadeng Law Firm’s funds had been frozen. In September 2025
the first-instance hearing of this case was held. As at the date of this report the case is still in the first-instance
proceedings.
5) Litigation matters between subsidiary NationStar Optoelectronics and Lighthouse Technologies
(Huizhou) Limited and Lighthouse Technologies Limited
NationStar Optoelectronics sued Lighthouse Technologies (Huizhou) Limited (hereinafter referred to as
“Huizhou Lighthouse”) and Lighthouse Technologies Limited (hereinafter referred to as “Lighthouse”) for a
sales contract dispute involving an amount of RMB25.8829 million. Among them the account receivable
involved is RMB25.3522 million and the interest is RMB0.5307 million. The specific basic situation and
progress of the case are as follows: Huizhou Lighthouse has been overdue in paying NationStar Optoelectronics’
goods of RMB25.3522 million since April 2024. In view of this NationStar Optoelectronics filed a lawsuit with
the People’s Court of Chancheng District Foshan City Guangdong Province in November 2024. The trial
commenced in March 2025. In June 2025 NationStar Optoelectronics was served with the first-instance
judgment ordering: (1) Huizhou Lighthouse to pay NationStar Optoelectronics RMB25.3522 million in
outstanding principal plus interest accruing at 130% of the LPR from the date of default until full payment; (2)
Lighthouse jointly and severally liable for the said debt; (3) all litigation and preservation costs borne jointly
and severally. As at the date of this report the above judgment has become effective and NationStar
Optoelectronics applied to the court for enforcement in August 2025. In response to the above matters
NationStar Optoelectronics filed a claim with the insurance company under the "2023-2024 Domestic Trade
Credit Insurance (Short-term) Insurance Contract" and received an insurance payment of RMB22.817 million in
May 2025.
(2) In Despite of no Significant Contingency to Disclose the Company Shall Also Make Relevant
Statements
There was no significant contingency in the Company.
3. Other information
As of December 31 2025 mutual guarantees among Liaowang Auto Lamp and its subsidiaries were as
follows (RMB’0000):
Type of Guarantee Guarantee
No. Principal debtor Principal debtee Guarantor
guarantee amount balance
315Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Nanning Liaowang Auto Lamp
Co. Ltd. Liuzhou Guige
Nanning Branch of Nanning Liaowang
1 Fuxuan Technology Co. Ltd. Mortgage 6913.91 6913.91
Industrial Bank Auto Lamp Co. Ltd.Liuzhou Guige Lighting
Technology Co. Ltd. (note 1)
Chongqing Guinuo
Chongqing Guinuo Lighting Chongqing Branch of
2 Lighting Technology Mortgage 7000.00 2090.10
Technology Co. Ltd. (note 2) Industrial Bank
Co. Ltd.Nanning Liaowang Auto Lamp
Co. Ltd. Liuzhou Guige Liuzhou Guige
Nanning Branch of
3 Fuxuan Technology Co. Ltd. Lighting Technology Mortgage 13944.37 4904.00
Industrial Bank
Liuzhou Guige Lighting Co. Ltd.Technology Co. Ltd. (note 3)
Total —— —— —— 27858.28 13908.01
Note 1: Liaowang Auto Lamp and Nanning Branch of Industrial Bank entered into the Maximum
Financing Agreement (X.Y.G.CH.B.R.Z.Z. [2022] No. (01)) to conduct a bill transaction of RMB69.1391
million. Liaowang Auto Lamp provides mortgage guarantee with the immovable property owned as collateral
and the balance of its creditor’s rights does not exceed the maximum mortgage principal of RMB69.1391
million. The mortgage amount is valid from April 25 2022 to December 31 2025 and the guarantee amount is
RMB69.1391 million. The mortgaged real estate is 1) Y.G. (2017) N.N.SH.B.D.CH.Q.Z. No.0065501; 2) E.G.
(2017) N.N.SH.B.D.CH.Q.Z. No.0065499; 3) S.G. (2017) N.N.SH.B.D.CH.Q.Z. No.0065498; 4) S.G. (2017)
N.N.SH.B.D.CH.Q.Z. No.0065497.Note 2: Chongqing Guinuo and Chongqing Branch of Industrial Bank entered into the Fixed Asset Loan
Contract numbered CQ2023-477 with the contract amount being RMB50 million (from June 21 2023 to June
20 2026). As at December 31 2025 RMB20.901 million had been used. Chongqing Guinuo and Chongqing
Branch of Industrial Bank entered into the Maximum Mortgage Contract (X.Y.K.G.G.N.D. [2025] No. 001).Chongqing Guinuo provides mortgage guarantee with the immovable property owned as collateral and the
balance of its creditor’s rights does not exceed the maximum mortgage principal of RMB120 million. The
mortgage amount is valid from June 23 2025 to June 22 2027 and the guarantee amount is RMB70 million.The mortgaged real estate is a) Y.Y. (2020) L.J.X.Q.B.D.C.Q. No.000436821 b) E.Y. (2020) L.J.X.Q.B.D.C.Q.No.000437330 c) S.Y. (2020) L.J.X.Q.B.D.C.Q. No.000437429 and d) S.Y. (2020) L.J.X.Q.B.D.C.Q.No.000437448.Note 3: Liuzhou Guige Lighting entered into the Maximum Financing Agreement numbered
316Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
X.Y.G.CH.B.R.Z.Z. (2022) No. (02) with Nanning Branch of Industrial Bank incurring a note business of
RMB49.04million. Liuzhou Guige Lighting provides mortgage guarantee with the immovable property owned
as collateral and the balance of its creditor’s rights does not exceed the maximum mortgage principal of
RMB139.4437 million. The mortgage amount is valid from April 24 2022 to May 10 2026 and the guarantee
amount is RMB139.4437 million. The mortgaged real estate is: a) Y.G. (2019) L.ZH.SH.B.D.CH.Q. No.
0191988 located at No. 1 Factory Building No. 12 Hengsi Road Cheyuan; b) E.G. (2019) L.ZH.SH.B.D.CH.Q.
No. 0191991 located in the mold Center of No. 12 Hengsi Road Cheyuan; c) S.G. (2019) L.ZH.SH.B.D.CH.Q.No. 0191994 located in the logistics gate guard room at No. 12 Hengsi Road Cheyuan; d) S.G. (2019)
L.ZH.SH.B.D.CH.Q. No. 0191995 located in the guard room of Gate 12 Hengsi Road Cheyuan.
(2) As at December 31 2025 the guarantee arrangements of Hule Electric were as follows (RMB’0000):
Type of Guarantee Guarantee
No. Principal debtor Principal debtee (Lender) Guarantor
guarantee amount balance
Zhejiang Hule
Zhejiang Hule Electric Agricultural Bank of
Electric Equipment
1 Equipment Manufacture China Limited Jiaxing Mortgaged 2000.00 1995.24
Manufacture Co.Co. Ltd. (Note 1) Nanhu Sub-branch
Ltd.Total —— —— —— 2000.00 1995.24
Note: Hule Electric entered into Maximum Mortgage Contract (No. 33100620230099053) with Jiaxing
Nanhu Sub-branch of the Agricultural Bank of China. Under the contract Hule Electric pledged its real estate
assets as collateral to secure debts with the maximum secured principal not exceeding RMB31.18 million. The
guaranteed amount is RMB20 million. The mortgage contract is valid from August 21 2023 to August 20 2028.The mortgaged properties are: a) Property Ownership Certificate No. 00479600 Nanhu District Jiaxing; b)
Property Ownership Certificate No. 00479599 Nanhu District Jiaxing.XVII Events after Balance Sheet Date
1. Significant Non-adjusted Events
None.
2. Distribution of Profit
Dividend to be distributed per 10 shares (RMB) 0.50
Based on the total share capital of 1535778230 shares as at
the disclosure date of the 2025 Annual Report a cash dividend
of RMB0.50 (tax inclusive) per 10 shares is to be distributed to
Profit distribution plan the shareholders with no bonus issue from either profit or
capital reserves. Where any change occurs to the total shares
entitled to the final dividend due to any share repurchases
grant of equity incentives etc. when the final dividend plan is
317Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
implemented the dividend per share shall remain the same
while the total payout amount shall be adjusted accordingly.This profit distribution plan is subject to the approval of the
Company’s meeting of shareholders before it can be
implemented.
3. Sales Return
None.
4. Notes to Other Events after Balance Sheet Date
(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 name:
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 RMB970.1239 million (inclusive). 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 Company signed a Share Subscription
Agreement with conditions for effectiveness and issued related commitments. NationStar Optoelectronics’
application for the proposed placing of shares to specific subjects was approved by the Listing Review Centre
of the Shenzhen Stock Exchange on April 7 2026. The placing remains subject to the approval of the
registration by the China Securities Regulatory Commission before it can be implemented. The final number of
shares to be subscribed by the Company will be determined based on the actual placing price of NationStar
Optoelectronics.XVIII Other Significant Events
1. The Accounting Errors Correction in Previous Period
None.
2. Debt Restructuring
No such cases in the Reporting Period.
3. Assets Replacement
None.
4. Pension Plans
In accordance with provisions of Measures for Enterprise Annuity (RSBL No. 36) Measures for Managing
Enterprise Annuity Fund (RSBL No. 11) and other policies the Company has formulated the Enterprise
318Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Annuity Plan of Foshan Electrical and Lighting Co. Ltd. (hereinafter referred to as the “Plan”).The Plan adopts the corporate trusteeship mode. The collected enterprise annuity fund will be managed by
the trustee entrusted by Foshan Electrical and Lighting Co. Ltd. with the Enterprise Annuity Fund Trusteeship
Contract. And the trustee of the enterprise annuity fund will entrust eligible custodians account managers and
investment managers to provide unified related services. The expenses required shall be jointly borne by the
Company and the employees. The payment channels of the Company shall be implemented according to
relevant regulations of the state and the part that shall be paid by employees themselves will be withheld and
paid by the Company from their salaries.The Plan has been filed at Chancheng District Human Resources and Social Security Bureau of Foshan
City and implemented since June 1 2022. The management of the enterprise annuity fund is subject to the
supervision and inspection of relevant state departments.
5. Discontinued Operations
None.
6. Segment Information
(1) Determination Basis and Accounting Policies of Reportable Segment
With the deployment of the Company’s strategic management and the expansion of business segments
operating segments shall be determined based on the requirements of regulatory laws and regulations company
management etc. which are as follows:
1) General Lighting Automotive Lamps Products Segment: Research and development manufacturing
and sales of General Lighting Automotive Lamps Products
2) LED Packaging and Components Other Products Segment: Research and development manufacturing
and sales of LED packaging and components and other products.Inter-segment transfer prices are determined with reference to the prices used for sales to third parties
while assets liabilities and expenses are determined based on the financial data of each segment.
(2) The Financial Information of Reportable Segment
Unit: RMB
LED packaging and
General lighting and
Item component products Offset among segments Total
vehicle lamp products
and other products
I. Operating revenue 5600603187.72 3281481214.08 -85275431.22 8796808970.58
II. Cost of sales 4425873009.40 2900533077.59 -84987004.20 7241419082.79
III. Income from
investments to joint 4506058.03 4506058.03
319Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
ventures and associates
IV. Credit impairment
loss -4994919.39 -7935774.13 -24311.54 -12955005.06
V. Asset impairment
loss -55224377.79 -40505321.02 -34217937.33 -129947636.14
VI. Depreciation and
amortization cost 346949612.31 345431851.54 -762260.00 691619203.85
VII. Total profits 330448739.27 -18304649.85 -40331153.15 271812936.27
VIII. Income tax
expense 58422620.27 -5295792.67 -31628.81 53095198.79
IX. Net profits 272026119.00 -13008857.18 -40299524.34 218717737.48
X. Total assets 12147590414.63 6105441389.20 -1085786168.16 17167245635.67
XI. Total liabilities 4519190649.55 2316269888.28 -99725489.55 6735735048.28
(3) If there Was no Reportable Segment or the Total Amount of Assets and Liabilities of Each
Reportable Segment Could not Be Reported Relevant Reasons Shall Be Clearly Stated
None.
(4) Other notes
None.
7. Other Significant Transactions and Events with Influence on Investors’ Decision-making
None.
8. Other Information
(1) Matter regarding the expropriation of land and above-ground housing of Nanjing Fozhao
The Company held the 24th Meeting of the 9th 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 a wholly-owned subsidiary of the Company at a compensation amount of
RMB183.8559 million 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
canceled. On December 17 2025 Nanjing Fozhao received the second compensation payment of
RMB110.6959 million. Concurrently in accordance with the relevant laws and regulations and pursuant to the
agreements between Nanjing Fozhao and the Honglan Sub-district Office of the Nanjing Lishui District
People’s Government Nanjing Lishui District Demolition and Resettlement Co. Ltd. and other relevant parties
an amount of RMB18 million was deducted in advance by Nanjing Lishui District Demolition and Resettlement
320Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Co. Ltd. from the compensation payment for environmental remediation of the expropriated land and related
demolition costs. The specific costs will be settled on an actual basis between Nanjing Fozhao and the relevant
parties. For details please refer to the Announcement on Progress in the Expropriation of Land Use Rights and
Above-ground Housing of a Wholly-Owned Subsidiary disclosed by the Company on Cninfo on December 19
2025. Nanjing Fozhao intends to undergo liquidation and deregistration procedures after the environmental
remediation and related demolition work are completed.
(2) Matter regarding land acquisition and reserve
On December 6 2023 and December 22 2023 to consider and approve the Proposal on the Disposal of
Company Assets and the Signing of Land Reserve Agreements agreeing that the Company should sign the
Letter of Intent for Land Reserve with the Zumiao Sub-district Office of Chancheng District Foshan City and
the State-Owned Land Use Rights Reserve Agreement. Following the completion of preliminary land
preparation work including the demolition of above-ground structures in accordance with relevant laws
regulations and policy provisions the land at Plot No. 64 Fenjiang North Road Chancheng District Foshan
City will be handed over in three batches for reserve acquisition on a deferred payment basis. In February 2024
the Company formally signed the State-Owned Land Use Rights Reserve Agreement with the Foshan City
Chancheng District Land Reserve Centre and the Foshan City Chancheng District Zumiao Sub-district Office
and the Company delivered part of the plot at No. 64 Fenjiang North Road in accordance with the relevant
provisions of the agreement. In December 2024 the Company received the first instalment of land reserve funds
amounting to RMB381.7791 million from the Foshan Chancheng District Land Reserve Centre in respect of the
transferred land. In December 2025 the Company received the second instalment of RMB6 million from the
Foshan Chancheng District Land Reserve Centre; the remaining payment is expected to be received in 2026.The land reserve process for the remaining plots is still ongoing.XIX Notes to Main Items in the Financial Statements of the Parent Company
1. Accounts Receivable
(1) Disclosure by Aging
Unit: RMB
Aging Gross amount at period-end Gross amount at period-beginning
Within 1 year (including 1 year) 637329945.58 611829771.52
1 to 2 years 55418635.10 87098817.76
2 to 3 years 62178052.67 61831224.89
Over 3 years 108920845.81 89329641.58
321Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3 to 4 years 43523314.61 68133250.97
4 to 5 years 49248803.98 5227888.30
Over 5 years 16148727.22 15968502.31
Total 863847479.16 850089455.75
(2) Disclosure by the Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Categor Provisio
y Carrying
Provisio Carrying
Percenta n amount Percenta nAmount Amount Amount Amount amount
ge (%) percenta ge (%) percenta
ge (%) ge (%)
Account
s
receivab
le with
799526506654292872975984552708423276
bad debt 9.26% 63.37% 11.48% 56.63%
56.1831.6324.5572.5828.4744.11
provisio
n on an
individu
al basis
Account
s
receivab
le with
783894560554727839752490495613702929
bad debt 90.74% 7.15% 88.52% 6.59%
822.9858.54364.44983.1758.97624.20
provisio
n on a
portfolio
basis
Of
which:
Business
portfolio
of
641634560554585579674720495613625159
general 74.27% 8.74% 79.37% 7.35%
635.5058.54176.96665.6258.97306.65
lighting
and auto
lamps
Internal
142260142260777703777703
business 16.47% 9.15%
187.48187.4817.5517.55
portfolio
863847106720757126850089104832745257
Total 100.00% 12.35% 100.00% 12.33%
479.16890.17588.99455.75187.44268.31
Bad debt provision on an individual basis: RMB50665431.63.Unit: RMB
Opening balance Closing balance
Name Bad debt Bad debt Provision Basis for
Gross amount Gross amount
provision provision percentage (%) provision
Dishonest and
Customer A 12462884.41 12462884.41 11757964.98 11757964.98 100.00%
high-risk
322Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
entities;
recovery is
deemed
unlikely.Litigation
involved;
recovery is
Customer B 11187337.20 11187337.20 11187337.20 11187337.20 100.00%
deemed
unlikely.Total 23650221.61 23650221.61 22945302.18 22945302.18
Bad debt provision on a portfolio basis: RMB56055458.54.Unit: RMB
Closing balance
Name
Gross amount Bad debt provision Provision percentage (%)
Business portfolio of general
641634635.5056055458.548.74%
lighting and auto lamps
Internal business portfolio 142260187.48
Total 783894822.98 56055458.54
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.If bad debt provision for accounts receivable is provided for under the general model of expected
□ Applicable□ Not applicable
(3) Bad Debt Provision Provided for Recovered or Reversed during the Period
Bad debt provision during the period:
Unit: RMB
Changes for the period
Opening Closing
Category
balance Provisio Reversal of write-offs Recovery or reversal Write-off Others balance
n from prior periods
Accounts
receivabl
e with
bad debt 552708 455593 506654
9161330.24
provision 28.47 3.40 31.63
on an
individua
l basis
Accounts
receivabl
e with
-
bad debt 495613 862472 85317.9 560554
204530
provision 58.97 3.47 3 58.54
5.97
on a
portfolio
basis
Total 104832 131806 9161330.24 85317.9 - 106720
323Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
187.4456.873204530890.17
5.97
Of which bad debt provision with a significant recovered or reversed amount during the period: Not applicable
(4) Accounts Receivable Written off during the Period
Unit: RMB
Item Amount written off
Accounts receivable written off 148777.50
Of which significant accounts receivable written off: None.Notes to the write-off:
RMB148777.50 of accounts receivable has been written off with the bad debt provision of RMB85317.93
and the approval procedures have been performed in accordance with the Company’s bad debt management
system.
(5) Top 5 Balances of Accounts Receivable and Contract Assets by Debtor as at the End of the Period
Unit: RMB
Closing balance of
Proportion to total bad debt provision
Closing balance of
Closing balance of closing balance of for accounts
Closing balance of accounts
Name of the entity accounts accounts receivable and
contract assets receivable and
receivable receivable and impairment
contract assets
contract assets provision for
contract assets
No. 1 115055684.93 115055684.93 13.28% 3451670.55
No. 2 85495151.51 85495151.51 9.87% 2564854.55
No. 3 54407016.62 54407016.62 6.28%
No. 4 49360164.03 49360164.03 5.70% 8766678.97
No. 5 46926511.10 46926511.10 5.42%
Total 351244528.19 351244528.19 40.55% 14783204.07
2. Other Receivables
Unit: RMB
Item Closing balance Opening balance
Other receivables 1044883403.20 944184445.88
Total 1044883403.20 944184445.88
(1) Interest Receivable
None.
(2) Dividend Receivable
None.
324Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(3) Other Receivables
1) Other Receivables Disclosed by Category of Nature
Unit: RMB
Nature Gross amount at period-end Gross amount at period-beginning
Other transactions 1022966230.59 936571845.70
Value-added tax (VAT) export rebates 20284110.73 5974168.41
Performance guarantee deposits 4133876.49 5349914.65
Rent and utilities 2216607.00 1283664.90
Employee loans and petty cash 452430.54 482910.18
Total 1050053255.35 949662503.84
2) Disclosure by Aging
Unit: RMB
Aging Gross amount at period-end Gross amount at period-beginning
Within 1 year (including 1 year) 219910886.64 410148181.90
1 to 2 years 304579104.44 109304181.17
2 to 3 years 109175173.42 37014033.22
Over 3 years 416388090.85 393196107.55
3 to 4 years 36656010.56 390960824.47
4 to 5 years 378194458.29 975961.08
Over 5 years 1537622.00 1259322.00
Total 1050053255.35 949662503.84
3) Disclosure by the Bad Debt Provision Method
Unit: RMB
Closing balance Opening balance
Gross amount Bad debt provision Gross amount Bad debt provision
Categor Provisio Carrying Provisioy CarryingPercenta n Percenta n
Amount Amount amount Amount Amount amount
ge (%) percenta ge (%) percenta
ge (%) ge (%)
Bad debt
provisio
303028909086.293938
n on an 2.89% 3.00%
89.957003.25
individu
al basis
Bad debt
provisio
101975426076101548949662547805944184
n on a 97.11% 0.42% 100.00% 0.58%
0365.405.459599.95503.847.96445.88
portfolio
basis
Of
which:
Deposits
and 413387 163051 250336 534991 181914 353077
0.39%39.44%0.56%34.00%
guarante 6.49 4.50 1.99 4.65 2.33 2.32
es
325Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Amount
s due
98082960030.098076989875319020.3898734
from/to 93.41% 0.01% 94.64% 0.00%
697.474667.43041.461021.15
related
parties
Advance
347867257022322165455595363989419196
s and 3.31% 7.39% 4.80% 7.99%
91.440.9170.5347.735.3252.41
others
105005516985104488949662547805944184
Total 100.00% 0.49% 100.00% 0.58%
3255.352.153403.20503.847.96445.88
Bad debt provision on an individual basis: RMB909086.70 .No significant accounts receivable with bad debt provision on an individual basis during the period.Bad debt provision on a portfolio basis: RMB4260765.45 .Unit: RMB
Closing balance
Name
Gross amount Bad debt provision Provision percentage (%)
Deposits and guarantees 4133876.49 1630514.50 39.44%
Amounts due from/to related
980829697.4760030.040.01%
parties
Advances and others 34786791.44 2570220.91 7.39%
Total 1019750365.40 4260765.45
A description of the basis for determining the portfolio:
See Note V-13. Accounts Receivable.Bad debt provision provided for under the general model of expected credit losses:
Unit: RMB
Stage 1 Stage 2 Stage 3
Bad debt provision Lifetime expected Lifetime expected12-month expected Total
credit losses (not credit losses (credit-
credit loss
credit-impaired) impaired)
Balance as at January
919700.544558357.425478057.96
12025
Balance as at January
1 2025 in the period
Provided for during the
100908.78-1318201.29909086.70-308205.81
period
Balance as at
1020609.323240156.13909086.705169852.15
December 31 2025
Basis for classification into stages and provision rates of bad debt provision
See Note V-13. Accounts Receivable.Explanation of material changes in gross amount arising from movements in loss allowance during the period
□ Applicable□ Not applicable
326Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
4) Bad Debt Provision Provided for Recovered or Reversed during the Period
Bad debt provision during the period:
Unit: RMB
Changes for the period
Opening
Category Recovery or Charge Closing balancebalance Provision Others
reversal off/write off
Other
5478057.96-308205.815169852.15
receivables
Total 5478057.96 -308205.81 5169852.15
Of which bad debt provision with a significant recovered or reversed amount during the period: Not applicable
5) Other Receivables Written off during the Period
None.
6) Top 5 Balances of Other Receivables by Debtor as at the End of the Period
Unit: RMB
Proportion to total
closing balance of Closing balance of
Name of the entity Nature Closing balance Aging
other bad debt provision
receivables %
Foshan Kelian
New Energy
Internal group 498159568.79 Within 5 years 47.44%
Technology Co.Ltd.Fozhao (Hainan)
Technology Co. Internal group 338672227.39 Within 4 years 32.25%
Ltd.FSL Chanchang
Optoelectronics Internal group 131659010.75 Within 2 years 12.54%
Co. Ltd.Guangdong
Provincial Tax Value-added tax
Service State (VAT) export 20284110.73 Within 1 year 1.93% 608523.32
Taxation rebates
Administration
Industrial and
Commercial Bank
Other transactions 15883375.00 Within 3 years 1.51% 476501.25
of China Foshan
Branch
Total 1004658292.66 95.67% 1085024.57
7) Other receivables Presented due to Centralized Management of Funds
None.
327Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
3. Long-term Equity Investment
Unit: RMB
Closing balance Opening balance
Item Bad debt Carrying Bad debt Carrying
Gross amount Gross amount
provision amount provision amount
Investment to 2428772025. 2259562666. 2381355425. 2253876591.
169209359.79127478834.25
subsidiaries 91 12 91 66
Investment to
joint ventures
184806652.92184806652.92180300594.89180300594.89
and associated
enterprises
2613578678.2444369319.2561656020.2434177186.
Total 169209359.79 127478834.25
83048055
(1) Investment to Subsidiaries
Unit: RMB
Opening Opening Changes for the period Closing Closing
balance balance of Additional Reduced balance balance ofInvestee
(carrying impairment Impairment Others (carrying impairment
amount) provision investment investment provision amount) provision
Foshan
NationStar
108461141274788341730525.1042880816920935
Optoelectro
11.694.255486.159.79
nics Co.Ltd.Nanning
Liaowang 49388016 49388016
Auto Lamp 3.76 3.76
Co. Ltd.Fozhao
(Hainan) 20000000 20000000
Technolog 0.00 0.00
y Co. Ltd.Foshan
Kelian
New 17000000 17000000
Energy 0.00 0.00
Technolog
y Co. Ltd.FSL
Chanchang
82507350.82507350.
Optoelectro
0000
nics Co.Ltd.Nanjing
Fozhao
Lighting
Component 72000000. 72000000.s 00 00
Manufactur
ing Co.Ltd.Foshan 35418439. 35418439.Electrical 76 76
328Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
& Lighting
(Xinxiang)
Co. Ltd.FSL Zhida
Electric 25500000. 25500000.Technolog 00 00
y Co. Ltd.Foshan
Hortilite
16685000.24916600.41601600.
Optoelectro
000000
nics Co.Ltd.Foshan
Fozhao
50000000.50000000.
Zhicheng
0000
Technolog
y Co. Ltd.Foshan
Taimei
Times 350000.00 350000.00
Lamp Co.Ltd.Fozhao
Huaguang
22920000.22920000.
(Maoming)
0000
Technolog
y Co. Ltd.Foshan
Sigma
Venture 4226.45 4226.45
Capital
Co. Ltd.Guangdong
Airtrust
22500000.22500000.
Aviation
0000
Equipment
Co. Ltd.
225387651274788347416600.41730525.2259562616920935
Total
91.664.25005466.129.79
(2) Investment to Joint Ventures and Associated Enterprises
Unit: RMB
Changes for the period
Openi Openi Gains Adjust Closin Closin
ng ng and ment Cash g g
balanc balanc losses of bonus balanc balanc
Investe e e of Additi Reduc recogn Chang Impairother or e e of
e (carryi impair onal ed ized es of mentcompr profits Others (carryi impair
ng ment invest invest under other provisiehensi annou ng ment
amoun provisi ment ment the equity onve nced to amoun provisi
t) on equity incom issue t) on
metho
e
d
I. Joint ventures
II. Associated enterprises
Shenz 18030 4506 18480
329Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
hen 0594. 058.03 6652.Primat 89 92
ronix
(Nanh
o)
Electro
nics
Ltd.
1803018480
Subtot 4506
0594.6652.
al 058.03
8992
1803018480
4506
Total 0594. 6652.
058.03
8992
The recoverable amount is determined based on fair value less costs of disposal
□ Applicable□ Not applicable
The recoverable amount is determined based on the present value of the estimated future cash flows
□ Applicable□ Not applicable
Reasons for significant inconsistency between the above-mentioned information and the information adopted in
the impairment tests in the prior year or external information
None.Reasons for significant inconsistency between the information adopted in the impairment tests in the prior year
and the actual situation in the year
None.
(3) Other Notes
None.
4. Operating Revenue and Cost of Sales
Unit: RMB
20252024
Item
Operating revenue Cost of sales Operating revenue Cost of sales
Main operations 2572658282.48 2069986916.41 3096917731.64 2377613698.44
Other operations 118937099.11 95387702.69 148786564.36 132741166.11
Total 2691595381.59 2165374619.10 3245704296.00 2510354864.55
Breakdown of Operating Revenue amd Cost of Sales:
Total
Type of contract
Operating revenue Cost of sales
Type of business
Of which:
General lighting products 2163780461.09 1727468204.07
Auto lamps products 362320172.28 303047633.93
330Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
Trade and other products 165494748.22 134858781.10
Total 2691595381.59 2165374619.10
5. Investment Income
Unit: RMB
Item 2025 2024
Long-term equity investment income
11371452.5137817762.65
accounted by cost method
Long-term equity investment income
4506058.031112039.74
accounted by equity method
Investment income from disposal of
248750.00-447400.00
trading financial assets
Dividend income from holding of other
18275657.8628098296.00
equity instrument investment
Interest income from holding of other
26985731.9128286522.80
investments in debt obligations
Income received from wealth
management products and structural 4705448.02
deposits
Gains on debt restructuring 692754.39 -368531.60
Total 66785852.72 94498689.59
6. Other information
None.XX Supplementary Information
1. Exceptional Gains and Losses
□ Applicable □ Not applicable
Unit: RMB
Item Amount Note
Mainly the expropriation compensation
Gain or loss on disposal of non-current
138973197.06 for land use rights and buildings of the
assets
subsidiary Nanjing Fozhao in the period
Government grants recognized in profit
or loss (exclusive of those that are
closely related to the Company’s normal
business operations and given in
50583661.71
accordance with defined criteria and in
compliance with government 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 1424910.15
(exclusive of the effective portion of
hedges that is related to the Company’s
normal business operations)
Capital occupation charges on non- 1503705.43
331Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
financial enterprises that are recorded
into current profit or loss
Reverse of provision for impairment of
accounts receivable individually 12965744.52
conducting impairment test
Gain or loss on debt restructuring 610478.39
Other non-operating income and
87950.30
expenses other than the above
Less: Income tax effects 46874285.60
Non-controlling interests effects
28333131.41
(after-tax)
Total 130942230.55 --
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
2. Return on Equity and Earnings Per Share
EPS (RMB/share)
Profit as of Reporting Period Weighted average ROE (%)
EPS-basic EPS-diluted
Net profit attributable to
ordinary shareholders of the 3.21% 0.1399 0.1398
Company
Net profit attributable to
ordinary shareholders of the
1.25%0.05460.0546
Company after deduction of
non-recurring profit or loss
3. Differences between Accounting Data under Domestic and Overseas Accounting Standards
(1) Differences of Net Profit and Net Assets Disclosed in Financial Reports Prepared under International
and Chinese Accounting Standards
□ Applicable□ Not applicable
(2) Differences of Net profit and Net assets Disclosed in Financial Reports Prepared under Overseas and
Chinese Accounting Standards
□ Applicable□ Not applicable
332Foshan Electrical and Lighting Co. Ltd. Annual Report 2025
(3) Explain Reasons for the Differences between Accounting Data under Domestic and Overseas
Accounting Standards; for any Adjustment Made to the Difference Existing in the Data Audited by the
Foreign Auditing Agent Such Foreign Auditing Agent’s Name Shall Be Clearly Stated
□ Applicable□ Not applicable
4. Other Information
None.Yu Zhongmin legal representative
Foshan Electrical and Lighting Co. Ltd.April 15 2026
333
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