Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

FOSHAN ELECTRICAL AND LIGHTING CO. LTD.INTERIM REPORT 2026

August 2026

1Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 Li Zehua the Company’s person in

charge of accounting work and Li Yizhi the Company’s person in charge of the accounting

department (accounting supervisor) 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 “Risks Facing the Company and Countermeasures” in

Item X of Part III of this Report.The Company does not intend to distribute cash dividends issue bonus shares or

capitalize capital reserves into share capital for the Reporting Period.This Report has been prepared in Chinese and translated into English. Should there be

any discrepancies or misunderstandings between the two versions the Chinese version shall

prevail.

2Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Table of Contents

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

Part II Corporate Information and Key Financial In... 6

Part III Management Discussion and Analysis.......... 9

Part IV Governance Environmental and Social Inform.. 44

Part V Significant Events............................47

Part VI Share Changes and Shareholder Information....71

Part VII Bonds.......................................78

Part VIII Financial Statements...................... 79

3Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Documents Available for Reference

1. The financial statements signed and stamped by the Company’s legal representative person

in charge of accounting work and person in charge of the accounting department.

2. The originals of all the Company’s announcements and documents disclosed to the public

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

4Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 Electrical Zhejiang Hule Electrical Equipment Manufacturing 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 2026 to June 30 2026

Same period of last year The period from January 1 2025 to June 30 2025

5Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

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 Other Information

1. Contact Information of the Company

Indicate whether any change occurred to the registered address office address and their zip codes website

address email address and other contact information of the Company in the Reporting Period.□ Applicable□ Not applicable

No change occurred to the said information in the Reporting Period which can be found in Annual Report 2025.

2. Media for Information Disclosure and Place where this Report Is Lodged

Indicate whether any change occurred to the information disclosure media and the place for lodging the

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

The website of the stock exchange the media and other website where the Company’s periodic reports are

disclosed as well as the place for lodging such reports did not change in the Reporting Period. The said

6Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

information can be found in Annual Report 2025.

3. Other Information

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

IV Key Financial Information

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

H1 2026 H1 2025 Change (%)

Operating revenue (RMB) 4095104770.43 4385731119.78 -6.63%

Net profit attributable to the

listed company’s shareholders 41705640.38 114993752.24 -63.73%

(RMB)

Net profit attributable to the

listed company’s shareholders

23254347.80106076984.29-78.08%

before exceptional gains and

losses (RMB)

Net cash generated from/used

-117202900.459845012.95-1290.48%

in operating activities (RMB)

Basic earnings per share

0.02720.0749-63.68%

(RMB/share)

Diluted earnings per share

0.02720.0748-63.64%

(RMB/share)

Weighted average return on

0.61%1.71%-1.10%

equity (%)

June 30 2026 December 31 2025 Change (%)

Total assets (RMB) 16610173293.27 17167245635.67 -3.24%

Equity attributable to the

listed company’s shareholders 6771819185.39 6834820501.84 -0.92%

(RMB)

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

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

Accounting Standards

1. Net Profit and Equity 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.

7Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

VI Exceptional Gains and Losses

□ Applicable □ Not applicable

Unit: RMB

Item Amount Note

Gain or loss on disposal of non-current assets

2841505.89

(inclusive of impairment allowance write-offs)

Government grants recognized in current profit or

loss (exclusive of those that are closely related to

the Company’s normal business operations and

20048181.03

given in 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

-1110934.78

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

640302.04

enterprise that are charged to current profit or loss

Reversed portions of impairment allowances for

receivables which are tested individually for 1000558.75

impairment

Gain or loss on debt restructuring 2612485.05

Non-operating income and expense other than the

8876356.86

above

Less: Income tax effects 5464207.93

Non-controlling interests effects (net of tax) 10992954.33

Total 18451292.58

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.

8Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Part III Management Discussion and Analysis

I Principal Operations of the Company in the Reporting Period

1. 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 Electrical 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 sports lighting and aviation 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 landscape lighting general lighting automotive lighting sterilization and

purification plant lighting and other fields.

2. Business models

(1) Procurement model

9Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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.

3. Industry overview

(1) LightingDuring the Reporting Period the lighting industry underwent a phase characterized by “overall pressurestructural differentiation and deep adjustment”. On the demand side domestic market demand faced headwinds

affected by the macroeconomic environment and the sustained adjustment of the real estate sector. Overseas

market demand remained generally stable with growing demand in emerging markets including the Middle

East Africa and Russia. Nevertheless dragged by industrial chain relocation and spillover effects China’s total

exports of lighting products dropped by approximately 7% year-on-year in the first half of the year. On the cost

side prices of raw materials such as non-ferrous metals electronic components and plastic parts surged

10Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

substantially pushing up manufacturers’ production costs markedly. Meanwhile the rapid appreciation of the

RMB further squeezed profit margins for export-oriented enterprises. Dual pressures from home and abroad

have accelerated survival-of-the-fittest consolidation within the industry. Small and medium-sized enterprises

confronted survival risks amid shrinking orders and elevated costs while market concentration continued to rise

amid industry hardships.Despite overall industry pressures multiple specialized market segments maintained a sound development

momentum. Benefiting from alignment with the digital health-oriented and personalized consumption trends

as well as the in-depth integration of artificial intelligence the Internet of Things sensing and computing

technologies market segments including smart lighting and healthy lighting achieved steady growth. AI-

powered functions such as adaptive dimming human-centric lighting and intelligent scene matching have

driven the upgrading of lighting products from simple passive illumination to active perception and intelligent

optimization greatly improving product added value and user experience. Driven by the dual-carbon goals

energy trusteeship and intelligent renovation projects for roads tunnels and public buildings have also brought

new market growth opportunities. These emerging segments have raised higher requirements for lighting

products in terms of light quality reliability intelligent control and interdisciplinary integration capabilities.The logic of industry long-term 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

product structures actively expanding into high-value-added fields and continuously broadening application

scenarios. Boasting greater operational resilience during industry restructuring they are driving the industry

into a new stage of high-quality development.

(2) Automotive lighting

During the Reporting Period affected by shifts in policy cycles cautious consumer sentiment and

macroeconomic conditions China’s automobile output and sales volume reached 14.993 million units and

15.017 million units respectively representing a year-on-year decline of 4.0% and 4.1%. Against this backdrop

driven by technological iteration and upgrading rising per-vehicle lighting value and continuous optimization

of product mix automotive lighting offset the impact of fluctuations in vehicle output and the market size of

automotive lighting maintained sustained growth.

11Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The automotive lighting industry is accelerating its technological upgrading with intelligence integration

and scenario-oriented design emerging as core competitive edges. 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. Meanwhile more than 600 new vehicle models were launched intensively in China in the first

half of 2026. This trend has raised higher requirements for supporting automotive lighting manufacturers in

terms of rapid R&D response flexible production and delivery and large-scale manufacturing capabilities

further forcing technological innovation and capacity upgrading across the industry.While the automotive lighting market continues to expand it also faces structural operational headwinds.Price declines at the vehicle retail end have been passed down the supply chain subjecting automotive lighting

products to annual price reduction pressure. Coupled with the adverse impact of rising raw material prices the

overall gross profit margin of the industry is under pressure. 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

with their internationalization accelerating steadily.

(3) LED packaging

During the Reporting Period the LED packaging industry forged 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 rising prices of core raw materials and other factors the industry has

entered a phase of transitional adjustment marked by overall volume consolidation and margin pressure. 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 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.

12Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

High-value-added segments including automotive LEDs UV LEDs and infrared sensing are demonstrating

steady growth. Continuous breakthroughs in Mini/Micro-LED technologies have accelerated the popularization

of high-end applications including ultra-high-definition displays automotive displays and virtual production

unlocking new market space. Meanwhile demand in overseas emerging markets keeps rising. Industry players

are actively expanding into overseas markets to foster new growth opportunities.

4. Main driving forces for growthThe Company firmly implements its development strategy of “Upgrading the Fundamental Business intoNew Forms and Scaling Up New Tracks”. It continues to strengthen innovation-driven development optimize

industrial layout advance marketing model transformation improve management efficiency and vigorously

explore market opportunities in market segments. The Company has built a collaborative development

framework covering three core businesses: general lighting automotive lighting and LED packaging.Meanwhile the Company expands into new tracks including marine lighting sports lighting and aviation

lighting. Such diversified business portfolio provides stable support for the Company’s operating performance.As the competitive landscape of the lighting industry evolves market share is concentrating rapidly among

leading enterprises. Consumers are paying growing attention to product quality and brand value while small

and medium-sized enterprises lacking sufficient competitiveness are gradually phased out. Leveraging its long-

accumulated advantages in technology brand distribution channels and scale the Company holds a favorable

position amid industry consolidation. On the R&D front the Company keeps increasing R&D investment and

deepens collaborative innovation through industry-university-research partnerships. It focuses on technological

breakthroughs and product iteration in cutting-edge areas including smart and healthy lighting aviation lighting

“AI+lighting” ultra-high-definition displays and intelligent optoelectronics. The Company has successively

launched innovative products such as a lineup of smart healthy lighting products AI agents AI light code

products MiP products and intelligent sensing products. These efforts drive technical upgrading and quality

improvement of core products and continuously reinforce its technological moat. On the market front the

Company advances the operation of a multi-brand matrix to meet differentiated demands across diverse markets

and customer tiers. It pursues coordinated development of online and offline channels as well as domestic and

overseas businesses. While optimizing its domestic channel structure the Company ramps up efforts to explore

overseas markets especially countries under the Belt and Road Initiative and emerging markets. Adhering to a

customer-centric approach it continuously optimizes its portfolio of products integrated solutions and service

13Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

systems to strengthen market adaptability and brand presence. On the operation front the Company steadily

pushes forward production automation and digital transformation. Intelligent manufacturing and digital

management systems effectively boost production efficiency and product quality. The Company further

implements lean management conducts refined cost control and optimizes supply chain management

comprehensively driving sustained improvements in operational efficiency and business performance.II 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 Innovation Company 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 has extended its national CNAS

accreditation obtained the US ENERGY STAR Certification for downlight testing and been accredited as a

TüV NORD third-party witnessed laboratory for automotive lighting testing. Its testing capabilities cover all

dimensions including safety performance reliability and EMC enabling the issuance of authoritative testing

reports with international recognition and mutual acceptance. The Company and its majority-owned subsidiarieshave established 36 research and development platforms including the “Guangdong Provincial EnterpriseTechnology Center” “Guangdong Provincial Doctoral Workstation” “Guangdong Provincial Science andTechnology Expert Workstation” “Postdoctoral Research Station (Branch Station)” “Guangdong ProvincialEngineering Technology Research and Development Center for Electric Light Sources” and the “GuangdongProvincial 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

undertaken a number of national provincial and ministerial-level scientific and technological projects includinga key sub-program under the National Key R&D Program “Marine Agriculture and Freshwater Fisheries

14Foshan Electrical and Lighting Co. Ltd. Interim Report 2026Technology Innovation” and Hainan Province “Land-Sea-Air” Technology Special Project achieving

continuous breakthroughs in core technologies. Leveraging its outstanding R&D strength and innovation

capabilities the Company has won prestigious scientific and technological awards such as the Second Prize of

Science and Technology Progress Award from China National Light Industry Council. It has also pioneered

systematic integration of the “circadian lighting” concept into light environment design. The Company actively

explores the convergence of AI and lighting technology with a focus on in-depth research of large AI models. It

has successfully developed an AI-enabled full-scenario solution that combines AI-powered intelligent control

scenario-based spectral solutions and dynamic light-and-shadow effects. By developing three key agents for

human-machine interaction light-and-shadow interaction and healthy lighting spectra the Company has laidthe technical foundation for the real-world application of AI in the field of smart lighting with the “LightXiaoming” AI agent rolled out to form its agent framework. 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 of the end of

the Reporting Period the Company and its majority-owned subsidiaries have been granted 3096 valid patents

and led or participated in formulating 272 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 a Guangxi automotive lighting partsengineering technology research center and the Nanning Innovation Consortium forming a “one institute andthree centers” R&D ecosystem. It focuses on tackling cutting-edge technologies such as the serialization of lens

modules and interactive signal lights with R&D strength continuously enhanced. As a National Innovation

Company and a provincial-level specialized refined distinctive innovative enterprise Hule Electrical boasts

industry-leading technologies independently developed for marine LED lighting and navigation signal lights.The recently launched HL-8×2M-24D series navigation (signal) light control system has obtained certification

from Det Norske Veritas (DNV) a globally recognized certification and risk management organization. This

15Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

makes Hule Electrical the first DNV-certified navigation light control system supplier in China. NationStar

Optoelectronics has created 15 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. NationStar Optoelectronics

for its technological leadership in high-precision products including MIP display devices intelligent health

detectors optoelectronic coupling devices and vehicle display devices has been awarded the title of“Guangdong Provincial Manufacturing Individual Champion (Intelligent Optoelectronic Health Detectors andLED Devices for Ultra-High-Definition Displays)”. It has achieved multiple breakthroughs across 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 an increasingly strong brand presence. 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 “FSL Homeowner Stories” and “Your Lighting Advisor”.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 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 has

16Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 Electrical 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 maintains long-term and stable partnerships with

leading display manufacturers and internationally renowned home appliance enterprises. It has built a

diversified high-end customer matrix covering smart home appliances a full range of consumer electronics

network communications and industrial control sectors. Also its products have been showcased in many large

events and high-end venues at home and abroad which are 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

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

17Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 Electrical 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.III Analysis of Principal Operations

1. Overview

In the first half of 2026 the domestic and global macroeconomic environment remained complex and

challenging while operating pressures across the industry continued to mount. On the one hand affected by the

global macroeconomic environment and the ongoing adjustment of the domestic real estate market the overall

market demand in the lighting industry was under pressure and market competition became increasingly fierce.On the other hand the prices of raw materials such as non-ferrous metals electronic components and plastic

parts rose sharply directly driving up manufacturing costs. Meanwhile the appreciation of the RMB further

squeezed the profit margins of export business. Facing pressures from both domestic and global factors the

Company remained focused on its core initiatives of “end-to-end lean management and value enhancement”

coordinated the implementation of “Lean Improvement 2.0” and “Profitability Assurance” initiatives while

prioritizing key tasks such as market expansion technological innovation and lean operations. It overcame

18Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

challenges and steadily advanced all undertakings. These measures helped maintain stable revenue but profit

still declined significantly.The Company's major operating results during the Reporting Period are detailed as follows:

(1) Market expansion driven by focused efforts and diversified deployment to strengthen the

foundation and unlock growth potential

First on the domestic market focused efforts were made to improve quality and efficiency and drive

incremental growth. The Company deepened its presence in offline channels. By refining offline service

stations establishing a multi-dimensional distribution network expanding into underserved market areas and

carrying out marketing empowerment activities the Company enhanced terminal sales and market service

capabilities. It successfully developed relationships with multiple leading centralized procurement customers

and design institutes and secured multiple million-level commercial projects achieving growth in revenue from

domestic residential and commercial lighting businesses. Meanwhile the Company expanded its reach across

multiple online platforms. Leveraging content marketing the development of best-selling products and product

portfolio optimization the Company achieved rapid growth in e-commerce revenue. Second the overseas

expansion drive secured existing business and developed new markets. While consolidating its market share in

regions where it has established advantages and among key major customers the Company intensified efforts to

explore untapped and emerging overseas markets achieving positive results. It successfully won bids for

multiple overseas engineering projects further strengthening its diversified overseas market footprint. Revenue

from overseas lighting business increased year-on-year. Third the “Auto Lamp Scaling Initiative” secured new

projects and consolidated business scale. The Company adopted new technologies and new products to conduct

targeted technical marketing proactively aligned with demands of vehicle manufacturers and continuously

intensified efforts to develop new projects. It successfully secured 20 new projects for automotive lighting

lamps and modules. The customer structure improved steadily and revenue from the automotive lighting

business remained generally stable. Fourth the packaging device business enhanced value and explored new

capabilities. Focusing on the expansion of both products and scenarios the Company leveraged product

iteration and upgrading and core performance breakthroughs to drive diversified scenario applications and new

growth engines. Building on in-depth cooperation with leading enterprises in the security display and home

appliance industries the Company rapidly scaled up high-value products including MiP products high-

definition display panels and intelligent display and control modules. Market expansion for optocoupler

19Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

products and automotive LED products also accelerated. Fifth the Company steadily advanced development in

new tracks to foster growth momentum. For marine lighting the Company won bids for microalgae carbon

sequestration and cruise ship projects and became the first domestic enterprise to obtain the DNV Certificate for

Navigation Light Control Systems. It also secured new customers among multiple shipbuilding companies. In

sports lighting the Company focused resources on pursuing stadium and major sports event projects and

secured multiple new projects such as the Maoming Olympic Sports Fitness Center. In elderly-friendly lighting

supported by seven core technologies including fall detection and heart rate monitoring two of its products

were included in the national Catalogue of Promoted Elderly Products and the Company was shortlisted in the

brand supplier pools of several professional elderly care enterprises.

(2) Focused efforts on technological innovation to enhance core competitiveness

First the commercialization of technological innovation results was enhanced. The Company optimized

the allocation of innovation resources deepened the integrated R&D-production-marketing collaboration

mechanism and aligned product iteration and upgrading with market demands. It developed new products in

over 100 specifications with the average product development cycle shortened year-on-year and R&D

efficiency significantly improved. Furthermore the Company secured 176 new patents and 10 new standardsand led or participated in the development of multiple international and national standards. The project “KeyTechnologies and Applications for Visual Environment and Circadian Health of Primary and Secondary SchoolStudents” jointly developed by the Company won the Second Prize of Science and Technology ProgressAward from China National Light Industry Council. Its independently developed “intelligent and eco-friendlyLED lamp” and “intelligent optoelectronic health detector” led to the recognition as a “2025 GuangdongProvincial Manufacturing Individual Champion”. Second technological breakthroughs empowered

development. Highlighting areas including aviation age-friendly intelligent lighting ultra-high-definition

display and intelligent optoelectronics the Company established joint innovation centers with COMAC and

GAMECO and launched a range of innovative products such as the “Light Xiaoming” AI agent AI age-

friendly sensor panel lamps MiP display devices and intelligent health sensing devices. Third testing

capabilities were elevated. The Company built a standardized EMC (Electromagnetic Compatibility) laboratory

extended CNAS accreditation and obtained a number of globally recognized testing certifications such as US

ENERGY STAR Certification for downlights and TüV NORD Certification for automotive lighting. The lab's

timeliness reached 99.62% providing solid technical support for product quality control.

20Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(3) Enhanced lean management to reduce costs improve efficiency and ensure profitability

To effectively mitigate the impact of rising raw material prices and RMB appreciation on overall profit

margins the Company focused on lean management of production and exchange rate risks and tapped cost

reduction and efficiency improvement potential from multiple dimensions. First it tightened control over raw

material procurement established a dynamic forecasting mechanism for prices of key raw materials and

formulated procurement and inventory plans in a scientific manner. It cut procurement costs via centralized

purchasing price-locked inventory and other measures to alleviate the adverse impact of higher raw material

prices on operations. Second the Company deepened lean management at the production side pushed forward

product design optimization and upgrades of automated equipment imposed strict control over process losses

and energy consumption strengthened budget constraints on various expenses and explored cost-saving

opportunities across the whole value chain. Third it intensified refined management of exchange rate risks

closely monitored exchange rate movements and flexibly adopted hedging foreign currency deposits and other

risk-mitigation instruments to offset the effects of exchange rate fluctuations.

2. Year-on-year changes in key financial data

Unit: RMB

H1 2026/June 30 H1 2025/December

Change (%) Main reason for change

2026312025

Operating revenue 4095104770.43 4385731119.78 -6.63%

Cost of sales 3399086469.72 3565320556.68 -4.66%

Selling expense 183274789.02 182892072.03 0.21%

Administrative expense 228475452.05 224001579.55 2.00%

Currency fluctuations during the

Finance costs 14570693.14 -17117656.17 185.12%

period

Income tax expense 16220421.54 18318812.92 -11.45%

R&D expense 249090029.77 286580266.83 -13.08%

A RMB250 million decline in sales

Net cash generated

proceeds collected by subsidiary

from/used in operating -117202900.45 9845012.95 -1290.48%

NationStar Optoelectronics during

activities

the period

The Company purchased large-

denomination certificates of deposit

and term deposits totaling RMB688

Net cash generated

million during the period. Such

from/used in investing -592709349.96 -18934602.88 -3030.30%

capital transactions constitute

activities

routine cash management activities

and will not exert a material impact

on daily production and operations.Net cash generated The combined effects of repayment

from/used in financing -176681018.71 -131887757.84 -33.96% of supply chain financing and the

activities recovery of bank acceptance bill

21Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

deposits during the period

Combined impact of the Company’s

purchase of large-denomination

certificates of deposit and term

Net increase in cash deposits totaling RMB688 million

-908666795.84-138553235.69-555.83%

and cash equivalents and a net decrease of RMB179

million in cash and cash equivalents

of subsidiary NationStar

Optoelectronics during the period

Purchases of large-denomination

Monetary assets 2393469742.64 3455743091.17 -30.74% certificates of deposit and term

deposits during the period

Other receivables 51718835.85 82678537.89 -37.45% Receipts of funds during the period

Receipts of customer payments

Contract assets 225336.26 450672.52 -50.00%

during the period

Reclassification of large-

denomination certificates of deposit

classified under other debt

Current portion of non-

1042833211.63 429862721.67 142.60% investments that originally had

current assets

maturities exceeding one year yet

will fall due within one year during

the period

Purchases of large-denomination

Other current assets 716647857.85 221586381.03 223.42% certificates of deposit and term

deposits during the period

Reclassification of large-

denomination certificates of deposit

classified under other debt

Other debt investments 100947945.20 720083694.31 -85.98% investments that originally had

maturities exceeding one year yet

will fall due within one year during

the period

Fair value changes in forward

Held-for-trading foreign exchange settlement

441690.00

financial liabilities products resulting from currency

fluctuations during the period

Taxes and levies Payment of income tax payable

56611646.8391181551.13-37.91%

payable during the period

Increase in endorsed but unmatured

Other current liabilities 162099708.78 81286297.53 99.42% notes that have not been

derecognized

Decrease in the amount used for

Specific reserve 5135099.20 3436494.07 49.43%

production safety during the period

Fair value changes in forward

Gain on changes in fair foreign exchange settlement

-1792904.78345894.65-618.34%

value (“-” for loss) products resulting from currency

fluctuations during the period

Decrease in loss allowances

Credit impairment loss recognized for accounts receivable

-3924527.64-12101495.6967.57%

(“-” for loss) and other receivables during the

period

An increase of RMB14.5345 million

Asset impairment loss in inventory valuation allowances

-39884970.01-22424871.33-77.86%

(“-” for loss) accrued by subsidiary NationStar

Optoelectronics during the period

Asset disposal income Gains arising from the disposal of

2743111.71-64693.004340.20%

(“-” for loss) non-current assets during the period

22Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Higher income from liquidated

Non-operating income 10678496.71 2113315.35 405.30%

damages during the period

Combined impact of lower gross

Net profit attributable

profit margin higher exchange

to owners of the parent 41705640.38 114993752.24 -63.73%

losses and declining profits of

company

subsidiaries during the period

Net profit attributable

Declining profits of subsidiaries

to non-controlling -35081061.46 32930123.49 -206.53%

during the period

interests

Changes in the fair Year-on-year decrease in the fair

value of other equity -24864916.26 214283065.88 -111.60% value change in other equity

investments investments during the period

Differences arising

from the translation of

Currency fluctuations during the

foreign currency- -4646746.45 -447357.83 -938.71%

period

denominated financial

statements

Other comprehensive

income net of tax Currency fluctuations during the

-1254048.45-343935.41-264.62%

attributable to non- period

controlling interests

Material changes to the profit structure or sources of the Company in the Reporting Period:

□ Applicable□ Not applicable

No such changes in the Reporting Period.

3. Breakdown of Operating Revenue

Unit: RMB

H1 2026 H1 2025

As % of total As % of total Change (%)

Operating revenue operating Operating revenue operating revenue

revenue (%) (%)

Total 4095104770.43 100% 4385731119.78 100% -6.63%

By operating division

Lighting products

2655535419.3564.85%2632166173.4660.02%0.89%

and luminaries

Electronic

component 1076623896.16 26.29% 1260619128.02 28.74% -14.60%

manufacturing

Export trade and

362945454.928.86%492945818.3011.24%-26.37%

other

By product category

General lighting

1611053710.3539.34%1555797106.2435.47%3.55%

products

LED packaging

949448488.6223.18%1138917060.6125.97%-16.64%

and components

Auto lamps 944978608.80 23.08% 1013526856.90 23.11% -6.76%

Trade and other 589623962.66 14.40% 677490096.03 15.45% -12.97%

By operating segment

Domestic 3271574278.55 79.89% 3419449003.11 77.97% -4.32%

Overseas 823530491.88 20.11% 966282116.67 22.03% -14.77%

23Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

Revenue or Operating Profit

□Applicable □ Not applicable

Unit: RMB

YoY

change in

YoY change YoY change

Gross profit gross

Operating revenue Cost of sales in operating in cost of

margin profit

revenue (%) sales (%)

margin

(%)

By operating division

Lighting products and

2655535419.352140352863.8919.40%0.89%5.91%-3.82%

luminaries

Electronic component

1076623896.16935851497.4113.08%-14.60%-12.19%-2.38%

manufacturing

Export trade and

362945454.92322882108.4211.04%-26.37%-32.53%8.12%

other

By product category

General lighting

1611053710.351228774397.1323.73%3.55%7.52%-2.81%

products

LED packaging and

949448488.62811230046.5614.56%-16.64%-14.08%-2.54%

components

Auto lamps 944978608.80 831545579.16 12.00% -6.76% -0.26% -5.74%

Trade and other 589623962.66 527536446.87 10.53% -12.97% -18.17% 5.68%

By operating segment

Domestic 3271574278.55 2669800047.18 18.39% -4.32% -2.66% -1.40%

Overseas 823530491.88 729286422.54 11.44% -14.77% -11.35% -3.43%

Core business data of the prior period restated according to the changed statistical caliber for the Reporting

Period:

□ Applicable□ Not applicable

IV Analysis of Non-Core Businesses

□Applicable □ Not applicable

Unit: RMB

As % of profit Recurrent

Amount Main source/reason

before tax or not

Dividend income from other equity investments

Return on investment 28114634.63 123.07% held during the period and interest income Yes

from other debt investments

Gain/loss on changes in -1792904.78 -7.85% Gain/loss on changes in fair value of financial Yes

fair value instruments during the period

-39884970.01 -174.59% Inventory valuation allowances recognizedAsset impairments Yes

during the period

10678496.71 46.74% Compensation income from breach of contractNon-operating income No

during the period

24Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

1703745.67 7.46% Payment of late fees and write-off of scrappedNon-operating expense No

inventories during the period

40191280.00 175.93% Receipt of continuing government grantsOther income No

during the period

Loss allowances recognized for accounts

Credit impairment loss -3924527.64 -17.18% receivable and other receivables during the Yes

(“-” for loss)

period

Asset disposal income 2743111.71 12.01% Gains or losses on the disposal of non-current No

(“-” for loss) assets during the period

V Analysis of Assets and Liabilities

1. Significant Changes in Asset Composition

Unit: RMB

June 30 2026 December 31 2025 Change in

Main reason for any

As % of As % of percentage

Amount Amount significant change

total assets total assets (%)

Purchases of large-

Monetary denomination certificates

2393469742.6414.41%3455743091.1720.13%-5.72%

assets of deposit and term

deposits during the period

Accounts

2085974309.7112.56%2173325283.7812.66%-0.10%

receivable

Contract

225336.260.00%450672.520.00%0.00%

assets

Inventory stocking in

response to rising raw

Inventory 2341737044.79 14.10% 2163660652.65 12.60% 1.50%

material prices during the

period

Investment

800948005.134.82%810582038.874.72%0.10%

property

Long-term

equity 185497823.30 1.12% 184806652.92 1.08% 0.04%

investments

Fixed assets 3504249535.77 21.10% 3586917576.90 20.89% 0.21%

Construction

250251499.081.51%223949659.061.30%0.21%

in progress

Right-of-use

17967235.720.11%23771544.090.14%-0.03%

assets

Short-term

581589947.263.50%635015074.863.70%-0.20%

borrowings

Contract

101215408.890.61%140787246.730.82%-0.21%

liabilities

Long-term

179420949.271.08%192915075.781.12%-0.04%

borrowings

Lease

11035419.400.07%15354724.020.09%-0.02%

liabilities

Notes

753261897.524.53%732835152.154.27%0.26%

receivable

Receivables

467728813.472.82%415949788.022.42%0.40%

financing

25Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Reclassification of large-

denomination certificates

of deposit classified under

Current

other debt investments

portion of

1042833211.63 6.28% 429862721.67 2.50% 3.78% that originally had

non-current

maturities exceeding one

assets

year yet will fall due

within one year during the

period

Purchases of large-

Other

denomination certificates

current 716647857.85 4.31% 221586381.03 1.29% 3.02%

of deposit and term

assets

deposits during the period

Other equity

457691201.252.76%471794043.902.75%0.01%

investments

Intangible

399102087.192.40%383525440.662.23%0.17%

assets

Long-term

prepaid 362934372.98 2.19% 335938420.48 1.96% 0.23%

expense

Notes

1994470163.7012.01%2179070444.4112.69%-0.68%

payable

Accounts

2310647251.6913.91%2443871780.9514.24%-0.33%

payable

Other

334721375.642.02%372152039.732.17%-0.15%

payables

Share

1535778230.009.25%1535778230.008.95%0.30%

capital

Capital

843412968.155.08%843517955.904.91%0.17%

reserves

2. Major Assets Overseas

□ Applicable□ Not applicable

3. Assets and Liabilities at Fair Value

□Applicable □ Not applicable

Unit: RMB

Cumulat

Gain/loss on

ive fair- Impairment

fair-value Purchased

Opening value allowance Sold during Other Closing

Item changes during the

amount changes for the the period changes amount

during the period

charged period

period

to equity

Financial

assets

1. Held-for-

trading -

financial 2768997.3 - 2106282.51792904.7 441690.00

assets 3 688500.00 58

(exclusive of

derivative

26Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

financial

assets)

3. Other debt 11499464 10000000 11000000 3834740.8 11437811

investments 15.98 0.00 0.00 5 56.83

3. Other -

4717940423880115150000.45769120

equity 29252842.

3.90050.62001.25

investments 65

5.

4159497851779025.46772881

Receivables

8.02

financing 45 3.47

Subtotal of -

20404592238801115150001093115056055456.20713074

financial 31045747.

45.23050.620.00

assets 43 0.00 30 54.10

-

Total of the 20404592 238801 11515000 10931150 56055456. 20713074

31045747.

above 45.23 050.62 0.00

430.003054.10

Financial

441690.00441690.00

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. A total amount of

RMB100000000.00 was purchased and a total amount of RMB110000000.00 was disposed of in the

Reporting Period and other changes were RMB3834740.85 of cumulative recognized interest.Significant changes to the measurement attributes of the major assets in the Reporting Period:

□ Yes□ No

4. Restricted Asset Rights as at the Period-End

Unit: RMB

Item Closing carrying value Reason for restriction

Monetary assets 478677249.14Security deposits for bills performance bonds etc.In pledge for the bill pool undue notes receivable that have been

Notes receivable 572757449.03

endorsed or discountedFixed assets 198008084.57As mortgage and guarantee for related party see “3. OtherIntangible assets 10030658.70information” under XVI of Part VIII in this Report

Receivables financing 26500000.00In pledge for the bill pool

Accounts receivable 945000.00Undue accounts receivable that have been transferred

Total 1286918441.44

27Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

VI Investments Made

1. Total Investment Amount

□Applicable □ Not applicable

Investment amount during the Reporting Investment amount in the same period of

Change (%)

Period (RMB) last year (RMB)

89622787.32156790198.87-42.84%

2. Major Equity Investments Made in the Reporting Period

□ Applicable□ Not applicable

3. Major Non-Equity Investments Ongoing in the Reporting Period

□Applicable □ Not applicable

Unit: RMB

Reaso

n for

failure

Index

Indust Cumul Cumul to

to

Fixed ry of ative ative reach

Way Input Date of disclos

Name asset the input Fundin Predi return the

of during Project disclos ed

of investm invest as of g cted as of plann

invest the progress ure (if inform

project ent or ment the source return the ed

ment period any) ation

not projec period- period- progre

(if

t end end ss and

any)

predic

ted

return

Annou

nceme

nt on

Invest

ment

in the

Constr

uction

The Jili of

Industri Nation

al Park Star

project LED 86824 Self- Optoel

7416 August

(not Other Yes packa 4588. pooled 50.64% N/A ectroni

842.8672020

includi ging 99 funds cs’ Jili

ng land Industr

purchas ial

e) Park

Project

on

www.c

ninfo.c

om.cn

(annou

nceme

nt of

28Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

subsidi

ary

Nation

Star

Optoel

ectroni

cs)

86824

7416

Total -- -- -- 4588. -- -- -- -- --

842.86

99

4. Financial Investments

(1) Securities Investments

□ Applicable □ Not applicable

Unit: RMB

Gain/ Accu

Loss mulat

on ed Purch

Meas Begin Sold Gain/l Endin

Initial fair- fair- ased

Securi Secu ureme ning in oss in g Accou Fundi

Securit invest value value in

ty rity nt carryi Repor Repor carryi nting ng

y code ment chang chang Repor

type name metho ng ting ting ng title source

cost es in es ting

d value Period Period value

Repor charg Period

ting ed to

Period equity

Dome

sticall Fair - Other

Xia 1529 4210 2388 6309 3917 Self-

y/Ove value 2925 equity

601187 men 5760 1150 0105 436.6 5865 funde

rseas metho 2842. invest

Bank 6.83 0.10 0.62 5 7.45 d

listed d 65 ment

stock

Guan

gdon

g

Emb

odie

d Fair Other

1515 1515 1515 Self-

Intell value equity

Other None 0000. 0000. 0000. funde

igenc metho invest

00 00 00 d

e d ment

Tech

nolo

gy

Co.Ltd.Held-

Dome

Qian for-

sticall Fair

li 1306 2676 - - 2054 tradin

y/Ove value

601777 Tech 956.1 867.8 6220 6220 867.5 g Other

rseas metho

nolo 8 6 00.34 00.34 2 financ

listed d

gy ial

stock

assets

Fosh 5000 Fair 5000 5000 Other Self-

Other None

an 00.00 value 00.00 00.00 equity funde

29Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

bran metho invest d

ch of d ment

Guan

gdon

g

Deve

lopm

ent

Bank

Held-

Dome

ZOT for-

sticall Fair

YE - - tradin

y/Ove 4234 value 9212 5141

000980 Auto 4071 4071 g Other

rseas 48.92 metho 9.47 5.03

mobi 4.44 4.44 financ

listed d

le ial

stock

assets

-

170342422388151556464095

2991

Total 3801 -- 8049 0105 0000. 721.8 1494 -- --

5557.

1.937.430.620070.00

43

(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

Openi on fair- ed fair-

Initial Purchased amount

Type of ng value value Sold during Closing

investmen during the as % of the

derivative amou changes changes the period amount

t amount period Company’s

nt during the recorded in

closing

period equity

equity

General forward 3110 0 -16.44 0 3110 1850 1260 1.27%

Total 3110 0 -16.44 0 3110 1850 1260 1.27%

Major changes in

accounting

policies and

specific

accounting

principles

No

adopted for

hedges in the

Reporting Period

compared to the

last reporting

period

Actual gain/loss

in the Reporting The actual gain/loss stood at USD8500 in the Reporting Period.Period

Effectiveness of The Company carries out foreign exchange hedging business appropriately according to specific situations

hedging which can effectively reduce the foreign exchange market risk lock in industrial profit of export business and

30Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

avoid exchange rate risk.Funding source Self-funded

Risk analysis of the forward foreign exchange settlement: 1. Market risk: Given the unpredictability of

economic changes at home and abroad the foreign exchange hedging business faces market risk to some

extent. 2. Foreign currency risk: When the foreign currency trend greatly deviates from the Company’s

judgment of such trend the expenses after locking the exchange rate might exceed that before doing so

resulting in losses to the Company. 3. Internal control risk: Imperfect internal control policies probably

triggers risks to the foreign exchange hedging business as it is highly professional and complex. 4. Trading

default risk: If the counterparty of foreign exchange hedging defaults by failing to pay hedging earnings to

Analysis of risks

the Company as agreed the actual exchange loss of the Company will not be offset. 5. Collection forecast

and control

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

measures

practice customers may adjust such orders. As a result the Company’s collection forecast will not be

associated with

accurate leading to delivery risks. Adopted risk control measures: 1. The Company will strengthen the

derivative

research and analysis of the exchange rate. When the exchange rate fluctuates greatly it will adjust the

investments held

business strategy in a timely manner to stabilize the export business and avoid exchange losses to the utmost.in Reporting

2. The Company has established the Management System for Foreign Exchange Hedging and majority-

Period (including

owned subsidiary NationStar Optoelectronics has also formulated the Management System for Forward

but not limited to

Forex Settlement and Sale and Forex Option Transactions clearly defining the operating principles approval

market risk

authority responsible department and responsible person internal operation procedures information

liquidity risk

isolation measures internal risk reporting system risk management procedures and information disclosure

credit risk

related to the foreign exchange hedging business. 3. In order to prevent any delay in the foreign exchange

operational risk

hedging the Company will strengthen the management of accounts receivable actively collect receivables

legal risk etc.)

and avoid any overdue receivables. In the meantime the Company plans to increase the export purchases and

purchase corresponding credit insurance so as to reduce the risk of default and customer default. 4. The

Company’s foreign exchange hedges must be strictly based on the Company’s foreign exchange earnings

prediction. Besides the Company shall strictly control the scale of its foreign exchange hedges and manage

all risks that the Company may face within a controllable range. 5. The internal audit department of the

Company shall check the actual signing and execution situation of all trading contracts on a regular or

irregular basis.Changes in

market prices or

fair value of

derivative The Company carries out recognition and measurement in accordance with the Accounting Standard for

investments in Business Enterprises No. 22—Recognition and Measurement of Financial Instruments the Accounting

the Reporting Standard for Business Enterprises No. 24—Hedges the Accounting Standard for Business Enterprises No.Period (fair value 37—Presentation of Financial Instrument and other applicable regulations. Fair value is arrived at based on

analysis should the price provided by pricing service providers such as banks or the price obtained. Fair value measurement

include and recognition are carried out on a monthly basis. Changes in the fair value of forward exchange settlement

measurement contracts entered into by the Company are mainly attributable to difference arising from exchange rate

method and fluctuations.related

assumptions and

parameters)

Legal matters

involved (if N/A

applicable)

Disclosure date April 25 2025

of announcement

on board’s

approving

derivative April 17 2026

investment (if

any)

31Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

2) Derivative Investments for Speculative Purposes in the Reporting Period

□ Applicable□ Not applicable

No such cases during the Reporting Period.

5. 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

Net raised

purpo Cumu purpo se and nt

Used total

Year Way Securi Total amou funds

sed lative sed where being

at the Unusein the amou amou re- amou abouts idle

of of ties amou nt of d

curren nt of end of 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

funds

used

for

cash

mana

Issuan geme

ce of nt that

shares Dece has

to mber 1094 1088 5787. 3732 34.29 2450 22.51 7279 not

202300

specif 4 55.18 41.55 52 0.51 % 4.84 % 6.38 yet

ic 2023 matur

object ed is

s RMB

5833

5310

0 and

the

remai

ning

raised

funds

are

deposi

32Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

ted in

a

specia

l

accou

nt for

raised

funds.

109410885787.373234.29245022.517279

Total -- -- 0 -- 0

55.1841.55520.51%4.84%6.38

Description of the use of raised funds:

In November 2023 the Company raised RMB1094.5518 million through a share issuance to specific

investors. After deducting issuance expenses such as underwriting fees sponsorship fees audit fees and legal

fees totaling RMB6.1363 million the actual net proceeds amounted to RMB1088.4155 million. As of June 30

2026 the Company had cumulatively utilized RMB373205100 of the raised funds accounting for34.29% of

the net proceeds.

2. Promised Use of Raised Funds

□ Applicable □ Not applicable

Unit: RMB’0000

Prom

ised

Accu

proje Accu

mulat

ct mulat

Total ive

funde Re- ive Time

prom Adju Inves Retur benef Signi

d purpo inves when Meeti

ised sted tment ns its ficant

with sed Input tment the ng

Finan Secur inves total progr deriv recor chan

raise Proje or in the amou proje the

cing ities tment amou ess as ed in ded ge to

d ct partia Repo nt at ct is expec

proje listin amou nt of at the the as at proje

funds natur lly rting the ready ted

ct g nt the perio Repo the ct

and e re- Perio end for its retur

name date with inves d-end rting end feasi

inves purpo d of the inten ns or

raise tment (3)=( Perio of bility

tment sed Repo ded not

d (1) 2)/(1) d Repo or not

with or not rting use

funds rting

over- Perio

Perio

raise d (2)

d

d

funds

Promised projects

2023 FSL’

Issua s

nce auto Prod

of Dece matio uctio

Nove

Share mber n and n and 3646 3585 1668 7837 21.86

No mber N/A N/A N/A No

s to 4 digita const 4.27 0.64 .16 .22 %

2026

Speci 2023 lizati ructio

fic on n

Targe proje

ts ct

33Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

2023

Issua

FSL

nce Prod

Hain

of Dece uctio

an Term

Share mber n and 2525 1363 1363 100.0

Indus Yes 0 inate N/A N/A N/A Yes

s to 4 const 2.91 1.82 1.82 0%

trial d

Speci 2023 ructio

Park

fic n

I

Targe

ts

2023

Issua

nce The Prod

of Dece smart uctio

Term

Share mber street n and 9179 100.0

Yes 95.77 0 95.77 inate 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 2110 6319 26.32 May

No N/A N/A N/A No

s to 4 le const 8.8 8.8 .05 .84 % 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 2009 9435 64.85

const Yes mber N/A N/A N/A No

s to 4 opme 9.68 9.68 .31 .86 %

ructio 2027

Speci 2023 nt

n

fic proje

proje

Targe ct

ct

ts

1094881357873732

Subtotal of promised projects -- -- -- -- --

55.186.71.520.51

Use of over-raised funds

There were no over-raised funds.

1094881357873732

Total -- -- -- -- --

55.186.71.520.51

Explain the

circumstances 1. FSL’s Automation and Digitalization Project: This project aims to procure advanced automated production

and reasons equipment and supporting facilities and to implement a digital and intelligent transformation to establish an

for failing to intelligent manufacturing system. It was originally scheduled to reach its intended usable state by November2026. Nevertheless dragged by decelerating global macroeconomic growth continuous adjustments in the real

achieve the estate sector geopolitical tensions and international trade frictions the lighting industry has been confronted

planned with headwinds including sluggish market demand and intensifying market competition. To cope with

progress and uncertainties in market demand and avert inefficient utilization of raised funds as well as idle production

expected capacity risks arising from irrational capacity expansion the Company has slowed down the pace of equipment

returns by procurement. Furthermore technologies in the digital space are iterating rapidly; the construction of relevant

item systems needs to align with the upgrade pace of the Company’s existing internal information systems. Coupled

(including the with declining costs of supporting software and hardware the foregoing factors have collectively resulted in the

34Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

reason for project’s investment progress falling short of expectations.selecting 2. R&D Center Construction Project: On June 18 2024 the Company held the 57th meeting of the 9th Board of

“N/A” for Directors and the 29th meeting of the 9th Supervisory Committee reviewing and passing the Proposal on“Meeting the Extending the R&D Center Construction Project Time. According to the construction status and implementationexpected progress of the raised funds investment project and in light of the demand for products in the downstream

returns or market the relevant R&D projects planned for the Company’s R&D center are currently progressing steadilynot”) and the purchase of relevant R&D equipment and R&D-related software is under way in succession. However

as some experimental equipment needs to be customized and the R&D equipment is characterized by small

batches and multiple varieties not all equipment has been procured installed or commissioned adequately. In

view of the above reasons the Company agreed to extend the construction period of the raised funds investment

project “R&D center construction project” by two years that is to extend the time for the raised funds

investment project to reach the intended status of use to May 2026.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 adjustments made to certain R&D topics and supporting equipment during the

implementation of the “R&D Center Construction Project” the Company extended the investment period of the

project by one and a half years to ensure smooth project advancement and the achievement of R&D objectives.Accordingly the planned date for the project to reach its intended usable state will be postponed to November

2027.

3. Automotive Lighting Module Production Project: On April 23 2025 the Company held the 7th meeting of

the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee and on May 15 2025 the

Company’s 2024 general meeting of shareholders was held during which the Proposal on Adjusting the Internal

Investment Structure Adding Implementation Sites and Postponing Certain Fundraising Investment Projects

was reviewed and approved. Throughout the implementation of the Automotive Lighting Module Production

Project the Company has prioritized project quality and long-term profitability laying a solid foundation and

proceeding with investment in a phased manner. However due to the stringent certification requirements for

entry into the automotive lighting supply chain system and the long lead time for the deployment of high-end

customized equipment the current investment progress has fallen behind schedule. Therefore the Company

extended the investment period of the project by two years postponing the date for it to reach its intended usable

state to May 2027.

(For details on the delay in the planned progress of the “FSL’s Hainan Industrial Park Phase I” and the “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

Particulars production capacity is sufficient to meet the current and near-future demand of the marine lighting market.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 Changeand 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

purpose and

use progress N/A

of over-raised

funds

Unauthorized

change of the N/A

purpose of

35Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

raised funds

and

misappropriati

on of raised

funds

Applicable

Occurred prior to 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 prior to the Reporting Period

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 theCompany as one of the implementation entities for the raised funds investment project “FSL’s automation andinvestment digitalization project”. In consequence the implementation entities of the raised funds investment project

projects 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

Surplus

amount of

raised funds

upon project N/A

implementatio

n and the

reasons

36Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

As of June 30 2026 the total amount of unused proceeds was RMB727963800 of which RMB144610800

Purpose and was held as bank deposits in designated accounts for raised funds and RMB 583353100 was invested in cash

whereabouts management using temporarily idle proceeds which had not yet matured or been redeemed.of unused

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. Hainan Technology may negotiate

with the Company to extend the loan term or make early repayment based on its actual operating conditions.

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

Problems or and in order to enhance the efficiency of fund utilization the Company plans to adjust the internal investment

other issues structure for equipment upgrades under the “FSL’s automation and digitalization project” and to add a newarising in the project implementation site at “Fozhao Building 8 Zhihui Road Zhangcha Subdistrict Chancheng Districtuse and Foshan City.”

disclosure of 3. On April 23 2025 the Company convened the 7th meeting of the 10th Board of Directors and the 5th

raised funds meeting of the 10th Board of Supervisors at which the Proposal on the Change and Termination of Certain

Funded Projects was reviewed and approved. It was agreed that the Company would make the following

adjustments to the “R&D Center Construction Project”: first change certain research topics and equipment

investment items; second adjust the internal investment structure of the project; third extend the project

investment period by one and a half years; fourth add two new implementation sites. At the same time the

implementation of the FSL Hainan Industrial Park I Project and the Smart Street Lights Project will be

terminated.

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

Actual

Total accumu

Signific

raised lative Investm

Time ant

funds to investm ent

Corresp Actual when Returns Meetin change

be ent progres

Financi Re- onding input in the derived g the to re-

investe amount s as at

ng Way of purpose original the project in the expecte purpose

d in the at the the

project raising d promise Reporti is ready Reporti d d

re- end of period-

name project d ng for its ng returns project

purpose the end

project Period intende Period or not feasibili

d Reporti (3)=(2)/

d use ty or

project ng (1)

not

(1) Period

(2)

2023 Issuanc Undeter FSL 11621. N/A N/A N/A

37Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

issuanc e of mined Hainan 09

e of shares Industri

shares to al Park

to specific I

specific 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. 2009.3 9435.8

shares 64.85% ber N/A N/A No

to constru constru 68 1 6

to 2027

specific ction ction

specific

objects project project

targets

35254.2009.39435.8

Total -- -- -- -- -- 0 -- --

5216

1. FSL’s Hainan Industrial Park Phase I Project: On April 23 2025 the Company held the 7th

meeting of the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee

and on May 15 2025 the Company’s 2024 general meeting of shareholders was held during

which the Proposal on the Change and Termination of Certain Fundraising Investment Projects

was reviewed and approved. Due to various factors including the fact that China’s marine

industry is still in its early stages of development the Company’s existing production capacity is

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

the Company terminated the implementation of this project (for further details please refer to the

Announcement on the Change and Termination of Certain Fundraising Investment Projects

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

2. Smart streetlight construction project: On April 23 2025 the Company convened the 7th

meeting of the 10th Board of Directors and the 5th meeting of the 10th Board of Supervisors at

which the Proposal on the Change and Termination of Certain Funded Projects was reviewed

Explain the reasons decision- 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 smartstreetlights has grown at a rate below expectations resulting in insufficient project orders.information disclosure (by Therefore the Company terminated the implementation of the “Smart Streetlight Constructionproject) Project” (For further details please refer to the Announcement on the Change and Termination

of Certain Funded Projects disclosed on April 25 2025 on cninfo.com.cn).

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

the 10th Board of Directors and the 5th meeting of the 10th Supervisory Committee and on May

15 2025 the Company’s 2024 general meeting of shareholders was held during which the

Proposal on the Change and Termination of Certain Fundraising Investment Projects was

reviewed and approved. In accordance with the actual construction and investment progress of

the project upon prudent research the Company adjusted some implementation contents

including the adjustments to some research topics and equipment investment adjustments to the

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

total investment amount of the original fundraising project (For further details please refer to the

Proposal on the Change and Termination of Certain Fundraising Investment Projects disclosed

on April 25 2025 on cninfo.com.cn).Explain the circumstances

and reasons for failing to

achieve the planned progress N/A

and expected returns (by

project)

Particulars about significant N/A

38Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

change to the feasibility of

repurposed projects

VII Sale of Major Assets and Equity Investments

1. Sale of Major Assets

□ Applicable□ Not applicable

No such cases during the Reporting Period.

2. Sale of Major Equity Investments

□ Applicable□ Not applicable

VIII Major Subsidiaries

□ Applicable □ Not applicable

Major fully/majority-owned subsidiaries and those minority-owned subsidiaries with an over 10% effect on the

Company’s net profit:

Unit: RMB

Relationshi

Principal Registered Operating Operating

Name p with the Total assets Net assets Net profit

activity capital revenue profit

Company

Foshan

NationStar - -

Manufactur 61847716 56918192 37584595 13479952

Optoelectro Subsidiary 50342892. 48612733.ing 9.00 55.15 73.59 68.46

nics Co. 52 72

Ltd.Nanning

Liaowang Manufactur 35319543 29195134 10733118 93776844 4592576.6 3050331.3

Subsidiary

Auto Lamp ing .00 84.93 33.56 0.58 2 5

Co. Ltd.FSL

Chanchang

Manufactur 72782944 13632845 52789365 80717604 53751889. 46172141.Optoelectro Subsidiary

ing .00 50.39 2.34 4.97 66 16

nics Co.Ltd.Foshan

Fozhao

Manufactur 50000000 22915850 71511834. 10178198 13026979. 10021182.Zhicheng Subsidiary

ing .00 6.19 03 9.80 25 11

Technolog

y Co. Ltd.FSL Zhida

Electric Manufactur 38150000 16878701 96541579. 73580858. 8135815.8 7274822.4

Subsidiary

Technolog ing .00 0.11 69 49 4 3

y Co. Ltd.Subsidiaries obtained or disposed in the Reporting Period:

□ Applicable□ Not applicable

Information about major majority- and minority-owned subsidiaries:

39Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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. In February 2026 Liaowang Auto Lamp launched its Employee Stock Ownership Plan (ESOP).Liaowang Auto Lamp subscribed for an additional 263843 shares by way of capital contribution to the special-

purpose entity serving as the ESOP holding platform. Upon completion of such capital increase the Company’s

shareholding percentage in Liaowang Auto Lamp was adjusted to 53.39%.

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.

4. FSL Zhida Electric Technology Co. Ltd. was jointly funded and established by the Company Foshan

Zhibida Enterprise Management Co. Ltd. and Dongguan Baida Semiconductor Materials Co. Ltd. and obtained

its business license on October 21 2016. On January 16 2023 FSL Zhida adjusted its registered capital based on

fully paid-in capital stock. Following the completion of this adjustment the Company holds a 66.84% equity

40Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

interest in FSL Zhida. The Company has incorporated FSL Zhida into the scope of its consolidated financial

statements starting from its date of incorporation.

5. Foshan Fozhao Zhicheng Technology Co. Ltd. (formerly FSL Lighting Equipment Co. Ltd. renamed to

the current name on December 12 2022) is a limited liability company invested and established by the Company

with a registered capital of RMB15 million. It obtained its business license on May 8 2013. The Company holds a

100% equity interest therein and this subsidiary has been included in the scope of the Company’s consolidated

financial statements commencing from its date of incorporation.IX Structured Bodies Controlled by the Company

□ Applicable□ Not applicable

X Risks Facing the Company and Countermeasures

1. Risks of macro economic fluctuations and fiercer market competition

Current domestic and international macroeconomic conditions face multiple uncertainties. Domestic

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

technical trade 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. Meanwhile surging demand for

AI computing power has driven up prices of relevant electronic components rapidly. Fluctuations in the aforesaid

41Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

raw material prices will exert 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 Company’s overseas sales account for approximately 20% of total revenue and the corresponding sales

proceeds are mainly settled in U.S. dollars. A sharp appreciation of the RMB may affect the pricing and

competitiveness of the Company’s overseas sales trigger higher exchange losses and consequently exert an

adverse impact on the Company’s net profit.Countermeasures: By keeping abreast of and analyzing exchange rate policies and fluctuation trend of

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

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

risks brought by exchange rate fluctuations.

4. Risk associated with the recoverability of accounts receivable

Receivables grow along with the Company’s business. Customers who fail to repay loans timely or become

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

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

receivable risk management system categorize and manage customers regularly assess customers’ credit profiles

and enhance customer risk assessment. Meanwhile it can reinforce contract approval and management double its

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

for business departments.XI Implementation of Market Value Management Mechanism and Valuation Enhancement

Plan

Indicate whether the Company has established a market value management mechanism.□ Yes□ No

42Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Indicate whether the Company has disclosed its valuation enhancement plan.□ Yes□ NoXII Implementation of the Action Plan for “Dual Enhancement of Development Quality andInvestor Returns”Indicate whether the Company has disclosed the Action Plan for “Dual Enhancement of Development Qualityand Investor Returns”.□ Yes□ No

43Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Part IV Governance Environmental and Social Information

I Change of Directors and Senior Management

□ Applicable □ Not applicable

Name Office title Type Date Reason

Wang Weidong Director Elected February 9 2026 Job transfer

II Profit Distribution and Capitalization of Capital Reserves into Share Capital for the

Reporting Period

□ Applicable□ Not applicable

The Company does not intend to distribute cash dividends issue bonus shares or capitalize capital reserves into

share capital for the Reporting Period.III Equity Incentive Plans Employee Stock Ownership Plans or Other Incentive Measures

for Employees

□ Applicable□ Not applicable

No such cases during the Reporting Period.IV 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

Department of Ecology and Environment

Gaoming branch of Foshan Electrical of Guangdong Province- Enterprise

and Lighting Co. Ltd. Environmental Information Disclosure

System

Department of Ecology and Environment

Liuzhou Guige Lighting Technology of Guangxi Zhuang Autonomous

Co. Ltd. Region- Enterprise Environmental

Information Disclosure System

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.

4 of Guangdong Province- Enterprise

Ltd.Environmental Information Disclosure

44Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

System

Department of Ecology and Environment

Guangdong Fenghua Semiconductor of Guangdong Province- Enterprise

5

Technology Co. Ltd. Environmental Information Disclosure

System

V Social Responsibility

The Company places a high value on corporate social responsibility and commitment. Adhering to the

“create the value of light” corporate mission the Company vigorously performs its social responsibility and

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

of light for customers create and improve the space for personal development for employees and help them

achieve the value of life and contribute to the sound and sustainable development of the society.

1. Protection of the rights and interests of our shareholders and creditors

We continuously improve our corporate governance structure regulate our operation and enhance our

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

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

legal rights and interests of all our shareholders especially our minority shareholders.

2. Protection of the rights and interests of our employees

Considering employees the most valuable resource for our survival and development we constantly

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

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

as well as realize the common development of the employees and the Company. We also pay attention to the

health of our employees attach importance to production safety and labor protection and improve the working

and living conditions for our employees so as to formulate harmonious and stable labor relations.

3. Protection of the rights and interests of our customers and consumers

We have been upholding the “Customer First” principle in our provision of quality products and services to

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

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

a win-win relationship with our customers.

4. Protection of the rights and interests of our suppliers

We respect and protect the legal rights and interests of our suppliers carefully protect their secret and

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

45Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

benefits and mutual development of the suppliers and the Company.

5. Production safety environmental protection and sustainable development

The Company sees production safety environmental protection and energy conservation as an important

part of its strategy of sustainable development. In strict compliance with applicable laws and regulations the

Company fully enforces accountability systems for environmental protection and work safety. It has obtained

valid certifications for the full set of management systems including ISO 9001 Quality Management System

IATF 16949 Automotive Quality Management System ISO 14001 Environmental Management System ISO

45001 Occupational Health and Safety Management System and ISO 50001 Energy Management System. In

2018 the Company was recognized as one of the second batch of National Demonstration Green Factories

certified by the Ministry of Industry and Information Technology of the People’s Republic of China.

6. Public relations and welfare

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

actions and projects it actively gives back to society and promotes sustainable development. The Companyfocuses on “industrial development for agriculture technological benefits for agriculture and green support foragriculture” as its main task. Through measures such as industrial assistance paired assistance and

consumption assistance the Company has upgraded from simple donations to systematic support. It is exploring

new models for rural revitalization and contributing to the development of livable business-friendly and

beautiful rural areas. During the Reporting Period responding to the “6*30” initiative to support ruralrevitalization the Company organized employee donations. It launched the “Love for Reading Nurturing theFuture” book donation campaign making a targeted donation of books to Hengbi Primary School in Hengbi

Town Wuhua County to help supplement rural educational resources. Through consumption assistance for

industrial products the Company purchased assistance products converting its procurement into a practical

effort to support rural revitalization promoting the development of the green supply chain and increasing

farmers’ incomes. Furthermore the Company organized the 2026 voluntary blood donation event successfullycollecting over 35000 milliliters of whole blood demonstrating the volunteer spirit of “dedication friendshipmutual assistance and progress” through practical actions and spreading positive energy within society.

46Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Part V Significant Events

I 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

No such cases during the Reporting Period.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 Engagement and Disengagement of Independent Auditor

Indicate whether the interim financial statements have been audited by an independent auditor.□ Yes□ No

The interim financial statements are unaudited by an independent auditor.V Explanations Given by the Board of Directors Regarding the Independent Auditor’s

“Modified Opinion” on the Financial Statements of the Reporting Period

□ Applicable□ Not applicable

VI Explanations Given by the Board of Directors Regarding the Independent Auditor's

“Modified Opinion” on the Financial Statements of Last Year

□ Applicable□ Not applicable

VII Insolvency and Reorganization

□ Applicable□ Not applicable

No such cases during the Reporting Period.

47Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

VIII Legal Matters

Material lawsuits and arbitrations:

□ Applicable□ Not applicable

No such cases in the Reporting Period.Other legal matters:

□ Applicable □ Not applicable

Basic Whether Lawsuit Execution of

Amount Lawsuit Index to

information there are (arbitration) lawsuit Date of

involved (arbitration) disclosed

on lawsuit accrued results and (arbitration) disclosure

(RMB’0000) progress information

(arbitration) liabilities influences judgment

137 litigation 48 cases are

matters that currently No

39 cases are

do not meet under trial. significant

20995.99 No under N/A

the criteria And 89 cases impact on the

enforcement.for material have been Company

litigation concluded.IX Punishments and Rectifications

□ Applicable□ Not applicable

No such cases during the Reporting Period.X 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.XI Major Related-Party Transactions

1. Continuing Related-Party Transactions

□ Applicable □ Not applicable

As % Obtai

Appro

of nable Index

Relati ved Over

Type Tra Total total marke to

Relate onship Pricin transa the Metho Date

of Specific nsac value value t price disclo

d with g ction appro d of of

trans transacti tion (RMB of all for sed

counte the princi line ved settle disclo

actio on pric ’0000 same- same- infor

rparty Comp ple (RMB line or ment sure

n e ) type type matio

any ’0000 not

transa transa n

)

ctions ctions

Guang Actual Purch Bank www.Receivi Januar

dong control asing Marke 231. 231.5 transf 231.5 cninfo

ng labor 1.01% 2530 No y 24

Rising ler of produ t price 53 3 er or 3 .com.service 2026

Holdi the cts/re bank cn

48Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

ngs Comp ceivi accept

Group any ng ance

Co. labor bill

Ltd. servi

ce

from

relate

d

party

Purch

asing

Guang produ

dong cts/re Bank

Xinta Under ceivi transf

Purchas

o same ng er or

e of Marke 108. 108.9 108.9

Micro actual labor 0.04% bank

material t price 96 6 6

electr control servi accept

s

onics ler ce ance

Co. from bill

Ltd. relate

d

party

Purch

asing

Guang

produ

zhou

cts/re Bank

Huajia

Under ceivi transf

n

same ng Receivi er or

Busin Marke 11.2

actual labor ng labor 11.25 0.05% bank 11.25

ess t price 5

control servi service accept

Devel

ler ce ance

opme

from bill

nt Co.relate

Ltd.d

party

Under

Purch

same

asing

actual

produ

Guang control

cts/re Bank

zhou ler

ceivi transf

Haixi (Haixi

ng Receivi er or

nsha nsha Marke

labor ng labor 2.35 2.35 0.01% bank 2.35

Indust was t price

servi service accept

rial deregi

ce ance

Co. stered

from bill

Ltd. on

relate

May

d

27

party

2026.)

Zhuha Purch

i asing Bank

Dongj Under produ transf

iang same cts/re Receivi er or

Marke

Envir actual ceivi ng labor 1.13 1.13 0.00% bank 1.13

t price

onme control ng service accept

ntal ler labor ance

Protec servi bill

tion ce

49Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Techn from

ology relate

Co. d

Ltd. party

Purch

asing

Guang

produ

dong

cts/re Bank

Rising

Under ceivi transf

Com

same ng Receivi er or

merci Marke

actual labor ng labor 0.83 0.83 0.00% bank 0.83

al t price

control servi service accept

Factor

ler ce ance

ing

from bill

Co.relate

Ltd.d

party

Shenz Purch

hen asing

Longg produ

ang cts/re Bank

Dongj Under ceivi transf

iang same ng Receivi er or

Marke

Indust actual labor ng labor 0.41 0.41 0.00% bank 0.41

t price

rial control servi service accept

Waste ler ce ance

Treat from bill

ment relate

Co. d

Ltd. party

Zhuha

i

Doum

en

Distri

ct

Yong Purch

xingsh asing

eng produ

Envir cts/re Bank

onme Under ceivi transf

ntal same ng Receivi er or

Marke

Indust actual labor ng labor 0.36 0.36 0.00% bank 0.36

t price

ry control servi service accept

Waste ler ce ance

Recov from bill

ery relate

and d

Comp party

rehens

ive

Treat

ment

Co.Ltd.Jiang Under Purch Receivi Bank

Marke

men same asing ng labor 0.28 0.28 0.00% transf 0.28

t price

Dongj actual produ service er or

50Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

iang control cts/re bank

Envir ler ceivi accept

onme ng ance

ntal labor bill

Comp servi

any ce

Limite from

d relate

d

party

Purch

asing

produ

Guang

cts/re Bank

dong

Under ceivi transf

Rising

same ng Receivi er or

Hydro Marke

actual labor ng labor 0.12 0.12 0.00% bank 0.12

gen t price

control servi service accept

Energ

ler ce ance

y Co.from bill

Ltd.relate

d

party

Purch

asing

Guang produ

dong cts/re Bank

Xinta Under ceivi transf

o same ng Receivi er or

Marke

Micro actual labor ng labor 0.1 0.1 0.00% bank 0.1

t price

electr control servi service accept

onics ler ce ance

Co. from bill

Ltd. relate

d

party

Purch

asing

Shenz

produ

hen

cts/re Bank

Yuedi

Under ceivi transf

ng Purchas

same ng er or

Precis e of Marke 702. 702.8 702.8

actual labor 0.24% bank

e material t price 81 1 1

control servi accept

Machi s

ler ce ance

nery

from bill

Co. www.relate Januar

Ltd. cninfo

d 2970 No y 24 .com.party 2026 cn

Guang Purch

dong asing Bank

Rising Under produ transf

Digita same cts/re Receivi er or

Marke 330. 330.2 330.2

l actual ceivi ng labor 1.45% bank

t price 25 5 5

Techn control ng service accept

ology ler labor ance

Co. servi bill

Ltd. ce

51Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

from

relate

d

party

Purch

asing

produ

cts/re Bank

Primat

Under ceivi transf

ronix

same ng Receivi er or

Nanho Marke 25.6

actual labor ng labor 25.64 0.11% bank 25.64

Techn t price 4

control servi service accept

ology

ler ce ance

Ltd.from bill

relate

d

party

Purch

Guang asing

dong produ

Electr cts/re Bank

onics Under ceivi transf

Purchas

Infor same ng er or

e of Marke 25.4

matio actual labor 25.46 0.01% bank 25.46

material t price 6

n control servi accept

s

Indust ler ce ance

ry from bill

Group relate

Ltd. d

party

Purch

asing

produ

Guang

cts/re Bank

dong

Under ceivi transf

Fengh Purchas

same ng er or

ua e of Marke

actual labor 4.94 4.94 0.00% bank 4.94

New material t price

control servi accept

Energ s

ler ce ance

y Co.from bill

Ltd.relate

d

party

Purch

asing

Shenz

produ

hen

cts/re Bank

Yuedi

Under ceivi transf

ng

same ng Receivi er or

Precis Marke

actual labor ng labor 1.9 1.9 0.01% bank 1.9

e t price

control servi service accept

Machi

ler ce ance

nery

from bill

Co.relate

Ltd.d

party

Guang Under Purch Purchas Marke 469. 469.4 Bank 469.4 Januar www.

0.16% 2773 No

dong same asing e of t price 45 5 transf 5 y 24 cninfo

52Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Fengh actual produ material er or 2026 .com.ua control cts/re s bank cn

Advan ler ceivi accept

ced ng ance

Techn labor bill

ology servi

Holdi ce

ng from

Co. relate

Ltd. d

party

Purch

asing

produ

Guang

cts/re Bank

dong

Under ceivi transf

Rising

same ng Receivi er or

Cateri Marke 316. 316.4 316.4

actual labor ng labor 1.39% bank

ng t price 45 5 5

control servi service accept

Servic

ler ce ance

e Co.from bill

Ltd.relate

d

party

Purch

asing

produ

Guang

cts/re Bank

dong

Under ceivi transf

Rising

same ng Receivi er or

Urban Marke 28.9

actual labor ng labor 28.96 0.13% bank 28.96

Servic t price 6

control servi service accept

es

ler ce ance

Co.from bill www.Ltd. Januar

relate cninfo1360 No y 24

d .com.2026

party cn

Purch

Guang asing

dong produ

Rising cts/re Bank

Cultur Under ceivi transf

al same ng Receivi er or

Marke 12.9

Indust actual labor ng labor 12.98 0.06% bank 12.98

t price 8

ry control servi service accept

Devel ler ce ance

opme from bill

nt Co. relate

Ltd. d

party

Guang Purch

Bank

dong asing

Under transf

Rising produ Purchas

same er or

Cultur cts/re e of Marke

actual 2.4 2.4 0.00% bank 2.4

al ceivi material t price

control accept

Indust ng s

ler ance

ry labor

bill

Devel servi

53Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

opme ce

nt Co. from

Ltd. relate

d

party

Purch

asing

produ

cts/re Bank

Rama

Under ceivi transf

da

same ng Receivi er or

Pearl Marke

actual labor ng labor 0.27 0.27 0.00% bank 0.27

Hotel t price

control servi service accept

Guang

ler ce ance

zhou

from bill

relate

d

party

Purch

asing

Guang

produ

zhou

cts/re Bank

Chang

Under ceivi transf

jian

same ng Receivi er or

Real Marke

actual labor ng labor 0.23 0.23 0.00% bank 0.23

Estate t price

control servi service accept

Mana

ler ce ance

gemen

from bill

t Co.relate

Ltd.d

party

Sellin

g

Guang

produ

dong Bank

cts/pr

Xinta Under transf

ovidi

o same Selling er or

ng Marke

Micro actual product 23.4 23.4 0.01% bank 23.4

labor t price

electr control s accept

servi

onics ler ance

ce to

Co. bill

relate

Ltd.d

party

www.Sellin Januar

cninfo

g 237 No y 24

Guang .com.produ 2026

dong Bank cn

cts/pr

Xinta Under transf

ovidi

o same Providi er or

ng Marke 19.2

Micro actual ng labor 19.22 0.09% bank 19.22

labor t price 2

electr control service accept

servi

onics ler ance

ce to

Co. bill

relate

Ltd.d

party

Guang Under Sellin Providi Bank

Marke 11.9

dong same g ng labor 11.97 0.06% transf 11.97

t price 7

Rising actual produ service er or

54Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Cateri control cts/pr bank

ng ler ovidi accept

Servic ng ance

e Co. labor bill

Ltd. servi

ce to

relate

d

party

Sellin

g

Guang produ

Bank

dong Actual cts/pr

transf

Rising control ovidi

Selling er or

Holdi ler of ng Marke

product 9.28 9.28 0.00% bank 9.28

ngs the labor t price

s accept

Group Comp servi

ance

Co. any ce to

bill

Ltd. relate

d

party

Sellin

Guang g

zhou produ

Bank

Wans cts/pr

Under transf

hun ovidi

same Selling er or

Invest ng Marke

actual product 5.96 5.96 0.00% bank 5.96

ment labor t price

control s accept

Mana servi

ler ance

gemen ce to

bill

t Co. relate

Ltd. d

party

Sellin

Guang g

dong produ

Bank

Yixin cts/pr

Under transf

Chang ovidi

same Selling er or

cheng ng Marke

actual product 2.95 2.95 0.00% bank 2.95

Constr labor t price

control s accept

uction servi

ler ance

Group ce to

bill

Co. relate

Ltd. d

party

Sellin

g

Guang produ

Bank

dong cts/pr

Under transf

Rising ovidi

same Selling er or

Cateri ng Marke

actual product 2.62 2.62 0.00% bank 2.62

ng labor t price

control s accept

Servic servi

ler ance

e Co. ce to

bill

Ltd. relate

d

party

Guang Under Sellin Selling Marke 0.67 0.67 0.00% Bank 0.67

55Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

dong same g product t price transf

Rising actual produ s er or

Cultur control cts/pr bank

al ler ovidi accept

Indust ng ance

ry labor bill

Devel servi

opme ce to

nt Co. relate

Ltd. d

party

Sellin

Guang

g

dong

produ

Rising Bank

cts/pr

Cultur Under transf

ovidi

al same Providi er or

ng Marke

Indust actual ng labor 0.66 0.66 0.00% bank 0.66

labor t price

ry control service accept

servi

Devel ler ance

ce to

opme bill

relate

nt Co.d

Ltd.party

Guang Sellin

dong g

Fengh produ

Bank

ua cts/pr

Under transf

Advan ovidi www.same Selling er or Januar

ced ng Marke 626. 626.2 626.2 cninfo

actual product 0.15% 1050 No bank y 24

Techn labor t price 28 8 8 .com.control s accept 2026

ology servi cn

ler ance

Holdi ce to

bill

ng relate

Co. d

Ltd. party

Sellin

Shareh g

older produ

Prosp Bank

that cts/pr

erity transf

holds ovidi

Lamp Selling er or

over ng Marke 482. 482.9 482.9

s & product 0.12% bank

5% labor t price 95 5 5

Comp s accept

shares servi

onents ance

of the ce to

Ltd. bill

Comp relate

any d www.Januar

party cninfo1110 No y 24.com.Sellin 2026

Enterp cn

g

rise

Traxo produ Bank

control

n cts/pr transf

led by

Techn ovidi Selling er or

the Marke 11.2

ologie ng product 11.21 0.00% bank 11.21

Comp t price 1

s labor s accept

any’s

Limite servi ance

related

d ce to bill

indivi

relate

dual

d

56Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

party

Sellin

Prosp Enterp g

erity rise produ

Bank

(Chin control cts/pr

transf

a) led by ovidi

Selling er or

Electri the ng Marke

product 0.21 0.21 0.00% bank 0.21

cal Comp labor t price

s accept

Comp any’s servi

ance

any related ce to

bill

Limite indivi relate

d dual d

party

Sellin

g

produ

Bank

Primat cts/pr

Under transf

ronix ovidi

same Selling er or

Nanho ng Marke 96.3

actual product 96.32 0.02% bank 96.32

Techn labor t price 2

control s accept

ology servi

ler ance

Ltd. ce to

bill

relate

d

party

Sellin

Guang

g

dong

produ

Electr Bank

cts/pr

onics Under transf

ovidi www.Infor same Selling er or Januar

ng Marke 84.1 cninfo

matio actual product 84.15 0.02% 1040 No bank 84.15 y 24

labor t price 5 .com.n control s accept 2026

servi cn

Indust ler ance

ce to

ry bill

relate

Group

d

Ltd.party

Sellin

g

Guang

produ

dong Bank

cts/pr

Rising Under transf

ovidi

Digita same Selling er or

ng Marke

l actual product 8.13 8.13 0.00% bank 8.13

labor t price

Techn control s accept

servi

ology ler ance

ce to

Co. bill

relate

Ltd.d

party

Guang Purch

dong asing Bank

Huajia Under produ transf

www.n same cts/re Receivi er or Octob

Marke 358. 358.8 358.8 cninfo

Enterp actual ceivi ng labor 1.57% No bank er 11

t price 86 6 6 .com.rise control ng service accept 2022

cn

Group ler labor ance

Co. servi bill

Ltd. ce

57Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

from

relate

d

party

Sellin

g

Guang

produ

dong Bank

cts/pr

Huajia Under transf

ovidi www.n same Providi er or Octob

ng Marke 596. 596.3 596.3 cninfo

Enterp actual ng labor 2.89% No bank er 11

labor t price 33 3 3 .com.rise control service accept 2022

servi cn

Group ler ance

ce to

Co. bill

relate

Ltd.d

party

4620.1307

Total -- -- -- -- -- -- -- --

230

Large-amount sales return in detail None

The Company calculated the aggregate amount of its continuing related-party transactions

in H1 2026 with related parties including Fenghua Advanced Technology and its

majority-owned subsidiaries Rising Real Estate and its majority-owned subsidiaries

Give the actual situation in the

Rising Group and its subsidiaries Huajian Group and its majority-owned subsidiaries and

Reporting Period (if any) where an

Prosperity and its majority-owned subsidiaries. In terms of purchases from related parties

estimate had been made for the total

the actual transaction amount for H1 2026 was RMB26379200 (excluding

value of continuing related-party

RMB3588600 of related?party transactions arising from public bidding) representing

transactions by type to occur in the

23.42% of the forecasted amount for the year; and in terms of sales to related parties the

Reporting Period

actual transaction amount for H1 2026 was RMB19823100 (excluding RMB5963300 of

related?party transactions arising from public bidding) accounting for 40.33% 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-Party Transactions Regarding Joint Investments in Third Parties

□Applicable □ Not applicable

Register

Principal Total assets

Relationshi Name of ed Equity of the Net profit of

operations of the

Co-investor p with the the capital investee the investee

of the investee

Company investee of the (RMB’0000) (RMB’0000)

investee (RMB’0000)

investee

Guangdong Rising

Holdings Group Co.Ltd. Shenzhen The

Zhongjin Lingnan Company’s Operations

Guangdong

Nonfemet Co. Ltd. controlling related to

Embodied RMB30

Guangdong Fenghua shareholder embodied

Intelligence 0 17400.34 17310.08 -690.14

Advanced and its AI training

Technolog million

Technology Holding majority- grounds and

y Co. Ltd.Co. Ltd. and owned others

Dongjiang subsidiaries

Environmental

Company Limited

58Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

On December 23 2025 the Company participated in the capital increase and share expansion project of

Guangdong Embodied Intelligence Technology Co. Ltd. through public bidding. On February 4 2026 the

Company subscribed to the aforesaid capital increase with its own funds in the amount of RMB15 million.Following completion of the capital increase the Company holds a 5% equity interest in Guangdong Embodied

Intelligence Technology Co. Ltd.

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 Total Total balancelimits range

Company (RMB’0000) deposited in withdrawn (RMB’0000)(RMB’0000)

(RMB’0000) (RMB’0000)

Guangdong

Under same

Rising 0.10%-

controlling 170000 133115.28 456487.21 451056.98 138545.51

Finance Co. 2.40%

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 2.15%-

controlling 200000 2000.00 3444.62 2000.00 3444.62

Finance Co. 2.25%

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 3444.62

Finance Co. Ltd. controller

6. Transactions with Related Parties by Finance Company Controlled by the Company

□ Applicable□ Not applicable

59Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The Company has no controlled finance companies.

7. Other Major Related-Party Transactions

□ Applicable □ Not applicable

Details of major infrastructure related-party transactions:

Specific Transaction Index to

Related Relationship with Type of Pricing Method of Date of

transactio amount disclosed

party the Company transaction principle settlement disclosure

n (RMB’0000) information

www.cninfo.com.cn

Guangdong Purchasing

Bank transfer (announcem

Zhongren products/receivi Receiving

Under same Market or bank December 1 ent of

Group ng labor service labor 1763.21

actual controller price acceptance 2020 subsidiary

Construction from related service

bill NationStar

Co. Ltd. party

Optoelectro

nics)

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

Title of announcement Date of disclosure 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)

XII Major Contracts and Execution thereof

1. Entrustment Contracting and Leases

(1) Entrustment

□Applicable □ Not applicable

Explanation of the entrustment:

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

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

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

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

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

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

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

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

60Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

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

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

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

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

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

commence

Name of lessor Name of lessee Status of leased assets Lease amount expiry of Purpose

ment of

lease

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

Suzhou is RMB5093326.08; from

5# Workshop 100

Xiangcheng December 15 2027 to December 14 Office

Liaowang Auto Wulingqiao Road

High-tech 2029 the annual rent is December December &

Lamp (Suzhou) Huangdai Town

Industrial RMB4138327.44 . In the first three 15 2024 14 2029 worksh

Co. Ltd. Xiangcheng District

Development Co. years certain conditions can allow op

Suzhou

Ltd. for a reduction or exemption of the

annual rent. In the fourth and fifth

years of the lease meeting specific

61Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

conditions can lead to a reduction or

exemption of six months’ rent for

that year.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)

Disclosu

re date Guarante

Type

of the Line of Actual Actual Counter Term of Having e for a

of Collatera

Obligor guarante guarante occurren guarantee guarante guarante expired related

guarant l (if any)

e line e ce date amount e (if any) e or not party or

ee

announc not

ement

Total approved line Total actual amount

for such guarantees of such guarantees

provided for external provided for external

parties in the parties in the

Reporting Period Reporting Period

(A1) (A2)

Total approved line Total actual balance

for such guarantees of such guarantees at

at the end of the the end of the

Reporting Period Reporting Period

(A3) (A4)

Guarantees provided by the Company for its subsidiaries

Disclosu

re date Guarante

Type

of the Line of Actual Actual Counter Term of Having e for a

of Collatera

Obligor guarante guarante occurren guarantee guarante guarante expired related

guarant l (if any)

e line e ce date amount e (if any) e or not party or

ee

announc not

ement

Total approved line Total actual amount

for such guarantees of such guarantees

provided for provided for

subsidiaries in the subsidiaries in the

Reporting Period Reporting Period

(B1) (B2)

Total approved line Total actual balance

for such guarantees of such guarantees at

at the end of the the end of the

Reporting Period Reporting Period

(B3) (B4)

62Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Guarantees provided between subsidiaries

Disclosu

re date Guarante

Type

of the Line of Actual Actual Counter Term of Having e for a

of Collatera

Obligor guarante guarante occurren guarantee guarante guarante expired related

guarant l (if any)

e line e ce date amount e (if any) e or not party or

ee

announc not

ement

Chongqi

ng April 25

June 23

Guinuo 2025

October Mortga 2025 to

Lighting and 7000 1959.57 Yes None No No

10 2025 ged June 22

Technol April 15

2027

ogy Co. 2026

Ltd.Zhejiang

Hule

Electrica April 25 August

l 2025 21 2023

August Mortga

Equipme and 2000 1968.14 Yes None to No No

21 2023 ged

nt April 15 August

Manufac 2026 20 2028

turing

Co. Ltd.Total approved line Total actual amount

for such guarantees of such guarantees

provided between provided between

299003927.71

subsidiaries in the subsidiaries in the

Reporting Period Reporting Period

(C1) (C2)

Total approved line Total actual balance

for such guarantees of such guarantees at

at the end of the 29900 the end of the 3927.71

Reporting Period Reporting Period

(C3) (C4)

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

Total guarantee line Total actual

approved in the guarantee amount in

299003927.71

Reporting Period the Reporting Period

(A1+B1+C1) (A2+B2+C2)

Total actual

Total approved

guarantee balance at

guarantee line at the

29900 the end of the 3927.71

end of the Reporting

Reporting Period

Period (A3+B3+C3)

(A4+B4+C4)

Total guarantee balance (A4+B4+C4) as %

0.58%

of the Company’s equity

Compound guarantees:

None.Other notes: As at June 30 2026 guarantees between Liaowang Auto Lamp and its subsidiaries and collaterals are

set out in “3. Other Information” under XVI in Part VIII of this Report.

63Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

3. Cash Entrusted for Wealth Management

□ Applicable □ Not applicable

Unit: RMB’0000

Balance of cash entrusted for

Product category Risk characteristics wealth management at the Unrecovered overdue amount

period-end

Other low risk 170343.02 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

Actual Index to

Prod

Risk gain/loss Recover overview

Type of uct Use of

Trustee characte Amount Start date End date during y of such and other

trustee cate capital

ristics the gain/loss information

gory

period (if any)

Larg http://www.e- cninfo.com.deno

Foshan cn/:

mina

Branch of To be Announcem

Low tion August 31 August 31

Bank of Bank 5000 Other 72.9 recovere ent No.risk certi 2023 2026

Communi d 2023-007

ficat

cations on

e of Entrustment

depo of Some

sit Idle Funds

Larg for Wealth

e- Manageme

deno

Guangzho nt;

mina

u Branch To be Announcem

Low tion November November

of China Bank 10000 Other 143.81 recovere ent No.risk certi 3 2023 3 2026

Everbrigh d 2024-005

ficat

t Bank on Using

e of Partial Idle

depo Raised

sit Funds for

Larg Cash

e- Manageme

Foshan

deno nt;

Hujing

mina Announcem

Sub- To be

Low tion December December ent No.branch of Bank 15000 Other 219.43 recovere

risk certi 1 2023 1 2026 2024-017

Bank of d

ficat on

GuangZh

e of Entrustment

ou

depo of Some

sit Idle Funds

Foshan Larg To be for Wealth

Low February 5 February

Hujing Bank e- 21200 Other 289.1 recovere Manageme

risk 2024 5 2027

Sub- deno d nt;

64Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

branch of mina Announcem

Bank of tion ent No.GuangZh certi 2025-010

ou ficat on

e of Entrustment

depo of Some

sit Idle Funds

Larg for Wealth

e- Manageme

deno nt;

Guangzho

mina Announcem

u Branch To be

Low tion February 5 February ent No.of China Bank 5500 Other 70.91 recovere

risk certi 2024 5 2027 2025-020

Everbrigh d

ficat on the

t Bank

e of Signing of a

depo Financial

sit Service

Larg Agreement

e- with

deno Guangdong

Foshan mina Rising

To be

Branch of Low tion February 5 February Finance

Bank 14300 Other 184.37 recovere

Huaxia risk certi 2024 5 2027 Co. Ltd.;

d

Bank ficat Announcem

e of ent No.depo 2025-060

sit on Using

Larg Partial Idle

e- Raised

deno Funds for

Foshan

mina Cash

Branch of To be

Low tion February 5 February Manageme

China Bank 5200 Other 72.53 recovere

risk certi 2024 5 2027 nt;

Merchant d

ficat Announcem

s Bank

e of ent No.depo 2026-002

sit on

Larg Entrustment

e- of Some

Luso

deno Idle Funds

Internatio

mina for Wealth

nal To be

Low tion May 28 November Manageme

Banking Bank 12100 Other 19.72 recovere

risk certi 2026 28 2026 nt;

Limited d

ficat Announcem

Guangzho

e of ent No.u Branch

depo 2026-016

sit on the

Luso Signing of a

Internatio Financial

Ter

nal To be Service

Low m May 28 November

Banking Bank 35.31 Other 0.06 recovere Agreement

risk depo 2026 28 2026

Limited d with

sit

Guangzho Guangdong

u Branch Rising

Other Ter Finance

To be

Rising profession Low m July 17 July 17 Co. Ltd.

500 Other 3.36 recovere

Finance al wealth risk depo 2025 2026

d

managem sit

65Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

ent

institution

Other

profession Ter

To be

Rising al wealth Low m March 31 September

2000 Other 10.11 recovere

Finance managem risk depo 2026 30 2026

d

ent sit

institution

Foshan

Ter

Branch of To be

Low m July 2 July 2

China Bank 120 Other 0.57 recovere

risk depo 2025 2026

Merchant d

sit

s Bank

Other

profession Ter

To be

Rising al wealth Low m March 4 September

1500 Other 9.62 recovere

Finance managem risk depo 2026 4 2026

d

ent sit

institution

Other

profession Ter

To be

Rising al wealth Low m April 7 July 7

1500 Other 6.24 recovere

Finance managem risk depo 2026 2026

d

ent sit

institution

Guangzho

Ter

u Airport To be

Low m March 10 September

Sub- Bank 2000 Other 7.36 recovere

risk depo 2026 9 2026

branch of d

sit

SPD Bank

Guangzho

Ter

u Airport To be

Low m April 23 July 23

Sub- Bank 100 Other 0.19 recovere

risk depo 2026 2026

branch of d

sit

SPD Bank

Guangzho

Ter

u Airport To be

Low m June 6 September

Sub- Bank 501 Other 0.33 recovere

risk depo 2026 6 2026

branch of d

sit

SPD Bank

Other

profession Ter

To be

Rising al wealth Low m March 30 September

1000 Other 5.04 recovere

Finance managem risk depo 2026 30 2026

d

ent sit

institution

Other

profession Ter

To be

Rising al wealth Low m April 16 October

1100 Other 4.52 recovere

Finance managem risk depo 2026 16 2026

d

ent sit

institution

Other

Ter

profession To be

Rising Low m April 16 October

al wealth 1100 Other 4.52 recovere

Finance risk depo 2026 16 2026

managem d

sit

ent

66Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

institution

Other

profession Ter

To be

Rising al wealth Low m May 12 November

400 Other 1.07 recovere

Finance managem risk depo 2026 12 2026

d

ent sit

institution

Larg

e-

deno

Foshan mina

To be

Branch of Low tion March 8 March 8

Bank 15000 Other 193.4 recovere

Huaxia risk certi 2024 2027

d

Bank ficat

e of

depo

sit

Larg

e-

deno

Foshan

mina

Branch of To be

Low tion March 29 March 29

China Bank 3500 Other 45.13 recovere

risk certi 2024 2027

Merchant d

ficat

s Bank

e of

depo

sit

Larg

e-

deno

Foshan

mina

Branch of To be

Low tion April 30 April 30

China Bank 3000 Other 38.68 recovere

risk certi 2024 2027

Merchant d

ficat

s Bank

e of

depo

sit

Larg

e-

deno

Foshan

mina

Branch of To be

Low tion January 9 January 8

Guangdon Bank 10000 Other 94.79 recovere

risk certi 2026 2029

g Huaxing d

ficat

Bank

e of

depo

sit

Other

profession Ter

To be

Rising al wealth Low m March 10 September

5000 Other 30.96 recovere

Finance managem risk depo 2026 10 2026

d

ent sit

institution

Other Ter

To be

Rising profession Low m March 25 September

10000 Other 53.7 recovere

Finance al wealth risk depo 2026 25 2026

d

managem sit

67Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

ent

institution

Other

profession Ter

To be

Rising al wealth Low m April 23 July 23

2000 Other 6.81 recovere

Finance managem risk depo 2026 2026

d

ent sit

institution

Foshan

Branch of

Ter

Industrial To be

Low m April 29 July 29

and Bank 681.09 Other 4.33 recovere

risk depo 2026 2026

Commerc d

sit

ial Bank

of China

Foshan

Branch of

Ter

Industrial To be

Low m April 29 August 29

and Bank 681.09 Other 4.33 recovere

risk depo 2026 2026

Commerc d

sit

ial Bank

of China

Foshan

Branch of

Ter

Industrial To be

Low m April 29 September

and Bank 681.09 Other 4.33 recovere

risk depo 2026 29 2026

Commerc d

sit

ial Bank

of China

Foshan

Branch of

Ter

Industrial To be

Low m 4427.0 April 29 December

and Bank Other 28.19 recovere

risk depo 9 2026 29 2026

Commerc d

sit

ial Bank

of China

Other

profession Ter

To be

Rising al wealth Low m June 24 June 24

5000 Other 2.3 recovere

Finance managem risk depo 2026 2027

d

ent sit

institution

Foshan Ter

To be

Branch of Low m 10216. June 24 July 24

Bank Other 7.12 recovere

Bank of risk depo 35 2026 2026

d

China sit

170343

Total -- -- -- 1639.83 -- --.02

4. Other Significant Contracts

□ Applicable□ Not applicable

No such cases during the Reporting Period.

68Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

XIII Communications with the Investment Community such as Researches Inquiries and

Interviews

□ Applicable □ Not applicable

Index to

Main discussions

Way of communicati

Date Place Type of visitor Visitor and materials

communication on

provided

information

Investor

Relations

Activities

Log Sheet

Investor Relations No. 2026-01

Through an Online Activities Log disclosed by

May 15 2026 www.p5w.net Other

online platform investors Sheet No. 2026- the Company

01 on

www.cninfo.com.cn on

May 15

2026

XIV Other Significant Events

□ Applicable □ Not applicable

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 entities raising a total of no more than RMB970.1239 million (inclusive). The raised funds 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”. The Company plans to use its

own funds (excluding the raised funds) to subscribe to the A-shares issued by NationStar Optoelectronics to

specific entities with an investment amount of RMB116 million. The final number of shares subscribed will be

determined based on Nationstar Optoelectronics’ actual issue price. On May 14 2026 the application of

NationStar Optoelectronics for the issuance of shares to specific entities obtained the official registration approval

issued by the China Securities Regulatory Commission (CSRC). For more details please refer to announcements

including 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 www.cninfo.com.cn as well as the Prospectus for the Issuance of A-Shares to Specific Entities (Registration

69Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Version) and the Announcement on the Receipt of Registration Approval from the China Securities Regulatory

Commission for the Application for Issuance of Shares to Specific Entities disclosed by NationStar

Optoelectronics on May 19 2026 on www.cninfo.com.cn.XV Significant Events of Subsidiaries

□ Applicable □ Not applicable

1. NationStar Optoelectronics’ plan to issue A-shares to specific entities

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 entities. 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 May 14 2026 the

application of NationStar Optoelectronics for the issuance of shares to specific entities obtained the official

registration approval issued by the China Securities Regulatory Commission (CSRC). For more details please

refer to announcements including the Prospectus for the Issuance of A-Shares to Specific Entities (Registration

Version) and the Announcement on the Receipt of Registration Approval from the China Securities Regulatory

Commission for the Application for Issuance of Shares to Specific Entities disclosed by NationStar

Optoelectronics on May 19 2026 on www.cninfo.com.cn.

70Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

dividend

Percentage New converted Percentage

Shares converted Other Subtotal Shares

(%) issues from (%)

from

capital

profit

reserves

1. Restricted -

105378020.69%000-24885105129170.68%

shares 24885

1.1 Shares

00.00%0000000.00%

held by state

1.2 Shares

held by

10.00%0000010.00%

state-owned

legal persons

1.3 Shares

held by other -

16101690.10%000-2488515852840.10%

domestic 24885

investors

Among

which:

Shares held 1338434 0.09% 0 0 0 0 0 1338434 0.09%

by domestic

legal persons

Shares

held by

-

domestic 271735 0.02% 0 0 0 -24885 246850 0.02%

24885

natural

persons

1.4 Shares

held by

89276320.58%0000089276320.58%

foreign

investors

Among

which:

Shares held 0 0.00% 0 0 0 0 0 0 0.00%

by foreign

legal persons

Shares held

by foreign 8927632 0.58% 0 0 0 0 0 8927632 0.58%

natural

persons

71Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

2.

Unrestricted 1525240428 99.31% 0 0 0 24885 24885 1525265313 99.32%

shares

2.1 RMB-

denominated

123049482280.12%0002488524885123051970780.12%

ordinary

shares

2.2

Domestically

29474560619.19%0000029474560619.19%

listed foreign

shares

2.3

Overseas

00.00%0000000.00%

listed foreign

shares

2.4 Other 0 0.00% 0 0 0 0 0 0 0.00%

3. Total

1535778230100.00%000001535778230100.00%

shares

Reasons for share changes:

□ Applicable □ Not applicable

In accordance with the relevant provisions of the Shenzhen Stock Exchange governing the shareholding changes

of directors and senior management the number of restricted shares of the Company decreased by24885 shares

during the Reporting Period due to the resignation of certain former supervisors and senior management.Approval of share changes:

□ Applicable□ Not applicable

Transfer of share ownership:

□ Applicable□ Not applicable

Progress on any share repurchases:

□ Applicable□ Not applicable

Progress on reducing the repurchased shares by means of centralized bidding:

□ Applicable□ Not applicable

Effects of share changes on the basic and diluted earnings per share equity per share attributable to the

Company’s ordinary shareholders and other financial indicators of the prior year and the prior accounting period

respectively:

□ Applicable□ Not applicable

Other information that the Company considers necessary or is required by the securities regulator to be disclosed:

□ Applicable□ Not applicable

72Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

2. Changes in Restricted Shares

□ Applicable □ Not applicable

Unit: share

Restricted Increase in

Opening Closing

Name of shares unlocked restricted Reason for

restricted restricted Date of unlocking

shareholder during the shares during restriction

shares shares

period the period

Restricted Subject to rules

shares of governing

former restricted shares

Zhang Yong 77596 19400 0 58196 directors for directors

supervisors supervisors and

and senior senior

management management

Restricted Subject to rules

shares of governing

former restricted shares

Tang Qionglan 75940 18985 0 56955 directors for directors

supervisors supervisors and

and senior senior

management management

Restricted Subject to rules

shares of governing

former restricted shares

Zhang Xiubo 0 0 13500 13500 directors for directors

supervisors supervisors and

and senior senior

management management

Total 153536 38385 13500 128651 -- --

II Issuance and Listing of Securities

□ Applicable□ Not applicable

III Shareholders and Their Shareholdings at the Period-End

Unit: share

Number of ordinary Number of preference shareholders

shareholders at the period- 78386 with resumed voting rights at the 0

end period-end (if any) (see note 8)

5% or greater shareholders or top 10 shareholders (exclusive of shares lent in refinancing)

Increase/de Shares in pledge marked or

Sharehold Total

crease in Restricte Unrestrict frozen

Name of Nature of ing shares held

the d shares ed shares

shareholder shareholder percentag at the

Reporting held held

e period-end Status Shares

Period

Hong Kong

Wah Shing

Overseas 19733898 1973389

Holding 12.85% 0 0 N/A 0

corporation 0 80

Company

Limited

Prosperity Overseas 14693485 1469348

9.57% 0 0 N/A 0

Lamps & corporation 7 57

73Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Component

s Limited

Guangdong

Electronics

State-owned 14362384 1436238

Informatio 9.35% 0 0 N/A 0

corporation 6 46

n Industry

Group Ltd.Guangdong

Rising

State-owned 12982679 1298267

Holdings 8.45% 0 0 N/A 0

corporation 3 93

Group Co.Ltd.SDIC

Securities

(Hong

Kong)

Limited

(formerly

Overseas 2598153

SDICS 1.69% 25981530 0 0 N/A 0

corporation 0

Internation

al

Securities

(Hong

Kong)

Limited)

Rising

Investment Overseas 2548225

1.66% 25482252 0 0 N/A 0

Developme corporation 2

nt Limited

Zhang Domestic 1700000

1.11% 17000000 0 0 N/A 0

Shaowu individual 0

Zhuang Overseas

0.78% 11903509 0 8927632 2975877 N/A 0

Jianyi individual

Hong Kong

Securities

Overseas

Clearing 0.47% 7159239 -803116 0 7159239 N/A 0

corporation

Company

Limited

Zhu Domestic

0.44% 6780000 -143217 0 6780000 N/A 0

Shangming individual

Strategic investor or general

corporation becoming a top-

None

10 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

Related or acting-in-concert

Rising Investment Development Limited are acting-in-concert parties; Prosperity Lamps &

parties among the

Components Limited and Zhuang Jianyi are acting-in-concert parties. Apart from that it is

shareholders above

unknown whether there is among the top 10 shareholders any other related parties or acting-in-

concert parties as defined in the Administrative Measures for the Acquisition of Listed Companies.Shareholders above

entrusting/entrusted with or None

waiving voting rights

Repurchased share account

(if any) among the top 10 None

shareholders (see note 11)

74Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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-

18849643

denominated

0

Hong Kong Wah Shing ordinary stock

197338980

Holding Company Limited Domestically

listed overseas 8842550

stock

RMB-

Prosperity Lamps & 14693485

146934857 denominated

Components Limited 7

ordinary stock

Guangdong Electronics RMB-

14362384

Information Industry Group 143623846 denominated

6

Ltd. ordinary stock

RMB-

Guangdong Rising 12982679

129826793 denominated

Holdings Group Co. Ltd. 3

ordinary stock

SDIC Securities (Hong

Kong) Limited (formerly Domestically

SDICS International 25981530 listed overseas 25981530

Securities (Hong Kong) stock

Limited)

Domestically

Rising Investment

25482252 listed overseas 25482252

Development Limited

stock

RMB-

Zhang Shaowu 17000000 denominated 17000000

ordinary stock

RMB-

Hong Kong Securities

7159239 denominated 7159239

Clearing Company Limited

ordinary stock

RMB-

Zhu Shangming 6780000 denominated 6780000

ordinary stock

Domestically

Liu Wei 4830035 listed overseas 4830035

stock

Related or acting-in-concert

Among the top 10 unrestricted shareholders Hong Kong Wah Shing Holding Company Limited

parties among the top 10

Guangdong Electronics Information Industry Group Ltd. Guangdong Rising Holdings Group Co.unrestricted shareholders as

Ltd. and Rising Investment Development Limited are acting-in-concert parties. Apart from that it

well as between the top 10

is unknown whether there is among the top 10 shareholders any other related parties or acting-in-

unrestricted shareholders

concert parties as defined in the Administrative Measures for the Acquisition of Listed Companies.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

75Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

Company conducted any promissory repo during the Reporting Period.□ Yes□ No

No such cases during the Reporting Period.IV Change in Shareholdings of Directors and Senior Management

□ Applicable□ Not applicable

No changes occurred to the shareholdings of the directors and senior management in the Reporting Period. See

Annual Report 2025 for more details.V Change of the Controlling Shareholder or the Actual Controller

If the Company previously disclosed that the actual controller plans a change of control which has not yet been

finalized please elaborate on the latest progress of such change of control arrangement.□ Applicable□ Not applicable

Change of the controlling shareholder in the Reporting Period

□ Applicable□ Not applicable

No such cases in the Reporting Period.Change of the actual controller in the Reporting Period

□ Applicable□ Not applicable

No such cases in the Reporting Period.

76Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

VI Preference Shares

□ Applicable□ Not applicable

No preference shares during the Reporting Period.

77Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Part VII Bonds

□ Applicable□ Not applicable

78Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Part VIII Financial Statements

I Auditor’s Report

Indicate whether the interim financial statements have been audited by an independent auditor.□ Yes□ No

The interim financial statements are unaudited by an independent auditor.II Financial Statements

Currency unit for the financial statements and the notes thereto: RMB

1. Consolidated Balance Sheet

Prepared by Foshan Electrical and Lighting Co. Ltd.June 30 2026

Unit: RMB

Item June 30 2026 January 1 2026

Current assets:

Monetary assets 2393469742.64 3455743091.17

Settlement reserve

Interbank loans granted

Held-for-trading financial assets 2106282.55 2768997.33

Derivative financial assets

Notes receivable 753261897.52 732835152.15

Accounts receivable 2085974309.71 2173325283.78

Accounts receivable financing 467728813.47 415949788.02

Prepayments 43352197.05 49790049.31

Premiums receivable

Reinsurance receivables

Receivable reinsurance contract

reserve

Other receivables 51718835.85 82678537.89

Including: Interest receivable

Dividends receivable

Financial assets purchased under

resale agreements

Inventories 2341737044.79 2163660652.65

Including: Data resources

Contract assets 225336.26 450672.52

Assets held for sale

Current portion of non-current assets 1042833211.63 429862721.67

79Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Other current assets 716647857.85 221586381.03

Total current assets 9899055529.32 9728651327.52

Non-current assets:

Loans and advances to customers

Debt investments

Other debt investments 100947945.20 720083694.31

Long-term receivables

Long-term equity investments 185497823.30 184806652.92

Other equity investments 457691201.25 471794043.90

Other non-current financial assets

Investment property 800948005.13 810582038.87

Fixed assets 3504249535.77 3586917576.90

Construction in progress 250251499.08 223949659.06

Productive living assets

Oil and gas assets

Right-of-use assets 17967235.72 23771544.09

Intangible assets 399102087.19 383525440.66

Including: Data resources

Development costs

Including: Data resources

Goodwill 245346155.52 245346155.52

Long-term prepaid expense 362934372.98 335938420.48

Deferred income tax assets 140479625.48 144164584.33

Other non-current assets 245702277.33 307714497.11

Total non-current assets 6711117763.95 7438594308.15

Total assets 16610173293.27 17167245635.67

Current liabilities:

Short-term borrowings 581589947.26 635015074.86

Borrowings from the central bank

Interbank loans obtained

Held-for-trading financial liabilities 441690.00

Derivative financial liabilities

Notes payable 1994470163.70 2179070444.41

Accounts payable 2310647251.69 2443871780.95

Advances from customers 303123.79 328004.34

Contract liabilities 101215408.89 140787246.73

Financial assets sold under repurchase

agreements

Customer deposits and interbank

deposits

Payables for acting trading of

securities

Payables for underwriting of securities

80Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Employee benefits payable 149232052.39 167248995.64

Taxes payable 56611646.83 91181551.13

Other payables 334721375.64 372152039.73

Including: Interest payable

Dividends payable 17174211.40

Handling charges and commissions

payable

Reinsurance payables

Liabilities directly associated with

assets held for sale

Current portion of non-current

103993780.96131296264.00

liabilities

Other current liabilities 162099708.78 81286297.53

Total current liabilities 5795326149.93 6242237699.32

Non-current liabilities:

Insurance contract reserve

Long-term borrowings 179420949.27 192915075.78

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 11035419.40 15354724.02

Long-term payables

Long-term employee benefits payable

Provisions 18892687.04 17991357.40

Deferred income 109623697.98 116931745.07

Deferred income tax liabilities 142483986.65 150196615.46

Other non-current liabilities 107831.23 107831.23

Total non-current liabilities 461564571.57 493497348.96

Total liabilities 6256890721.50 6735735048.28

Owners’ equity:

Share capital 1535778230.00 1535778230.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 843412968.15 843517955.90

Less: Treasury stock

Other comprehensive income 197635728.60 227147391.31

Specific reserve 5135099.20 3436494.07

Surplus reserves 189358133.42 189358133.42

General reserve

Retained earnings 4000499026.02 4035582297.14

Total equity attributable to owners of the

6771819185.396834820501.84

parent company

81Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Non-controlling interests 3581463386.38 3596690085.55

Total owners’ equity 10353282571.77 10431510587.39

Total liabilities and owners’ equity 16610173293.27 17167245635.67

Legal representative: Yu Zhongmin

Person in charge of accounting work: Li Zehua

Person in charge of the accounting department: Li Yizhi

2. Balance Sheet of the Parent Company

Unit: RMB

Item June 30 2026 January 1 2026

Current assets:

Monetary assets 1048689839.26 1354400356.07

Held-for-trading financial assets

Derivative financial assets

Notes receivable 39956359.01 33202567.04

Accounts receivable 745340102.97 757126588.99

Accounts receivable financing 49463469.06 29172106.24

Prepayments 11290444.29 7277923.25

Other receivables 916781984.89 1044883403.20

Including: Interest receivable

Dividends receivable

Inventories 279610946.88 220389239.43

Including: Data resources

Contract assets 225336.26 450672.52

Assets held for sale

Current portion of non-current assets 785326339.57 270515498.49

Other current assets 441734130.83 5407515.23

Total current assets 4318418953.02 3722825870.46

Non-current assets:

Debt investments

Other debt investments 100947945.20 625345689.25

Long-term receivables

Long-term equity investments 2445060489.42 2444369319.04

Other equity investments 407408657.45 421511500.10

Other non-current financial assets

Investment property 175395333.64 180291877.15

Fixed assets 565396796.14 568691612.66

Construction in progress 31980968.79 5598939.90

Productive living assets

Oil and gas assets

Right-of-use assets 9380351.91 5110635.01

82Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Intangible assets 57437614.68 59201009.37

Including: Data resources

Development costs

Including: Data resources

Goodwill

Long-term prepaid expense 21779743.57 27595661.99

Deferred income tax assets 33124914.46 35139464.32

Other non-current assets 218087289.27 223815163.18

Total non-current assets 4066000104.53 4596670871.97

Total assets 8384419057.55 8319496742.43

Current liabilities:

Short-term borrowings 118913127.90 182549560.55

Held-for-trading financial liabilities 441690.00

Derivative financial liabilities

Notes payable 777385318.29 579751378.73

Accounts payable 886956004.41 790542018.91

Advances from customers

Contract liabilities 42009898.34 58106760.51

Employee benefits payable 45537618.12 50035740.83

Taxes payable 16865718.29 11014777.31

Other payables 307680236.44 362102666.77

Including: Interest payable

Dividends payable 15183661.90

Liabilities directly associated with

assets held for sale

Current portion of non-current

9240026.403212484.76

liabilities

Other current liabilities 32030311.77 26128291.20

Total current liabilities 2237059949.96 2063443679.57

Non-current liabilities:

Long-term borrowings

Bonds payable

Including: Preferred shares

Perpetual bonds

Lease liabilities 582825.25 2303924.37

Long-term payables

Long-term employee benefits payable

Provisions

Deferred income

Deferred income tax liabilities 36349710.39 40097179.24

Other non-current liabilities

Total non-current liabilities 36932535.64 42401103.61

Total liabilities 2273992485.60 2105844783.18

83Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Owners’ equity:

Share capital 1535778230.00 1535778230.00

Other equity instruments

Including: Preferred shares

Perpetual bonds

Capital reserves 839893397.29 839893397.29

Less: Treasury stock

Other comprehensive income 203108693.33 227973609.59

Specific reserve 1541353.10 522569.87

Surplus reserves 420662202.66 420662202.66

Retained earnings 3109442695.57 3188821949.84

Total owners’ equity 6110426571.95 6213651959.25

Total liabilities and owners’ equity 8384419057.55 8319496742.43

Legal representative: Yu Zhongmin

Person in charge of accounting work: Li Zehua

Person in charge of the accounting department: Li Yizhi

3. Consolidated Income Statement

Unit: RMB

Item H1 2026 H1 2025

1. Revenue 4095104770.43 4385731119.78

Including: Operating revenue 4095104770.43 4385731119.78

Interest revenue

Insurance premium income

Handling charge and

commission income

2. Costs and expenses 4106681144.92 4257961593.80

Including: Cost of sales 3399086469.72 3565320556.68

Interest costs

Handling charge and

commission expense

Surrenders

Net insurance claims paid

Net provision for insurance

liabilities

Expenditure on policy

dividends

Reinsurance premium

expense

Taxes and surcharges 36877962.90 35195442.18

Selling expense 183274789.02 182892072.03

Administrative expense 228475452.05 224001579.55

84Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

R&D expense 244395778.09 267669599.53

Finance costs 14570693.14 -17117656.17

Including: Interest

11351786.448116483.14

expense

Interest

18626457.6720148088.69

income

Add: Other income 40191280.00 45245132.45

Return on investment (“-” for loss) 28114634.63 27447075.84

Including: Share of profit or loss

691170.38646719.77

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 (“-”

-1792904.78345894.65

for loss)

Credit impairment loss (“-” for

-3924527.64-12101495.69

loss)

Asset impairment loss (“-” for

-39884970.01-22424871.33

loss)

Asset disposal income (“-” for

2743111.71-64693.00

loss)

3. Operating profit (“-” for loss) 13870249.42 166216568.90

Add: Non-operating income 10678496.71 2113315.35

Less: Non-operating expense 1703745.67 2087195.60

4. Profit before tax (“-” for loss) 22845000.46 166242688.65

Less: Income tax expense 16220421.54 18318812.92

5. Net profit (“-” for net loss) 6624578.92 147923875.73

5.1 By operating continuity

5.1.1 Net profit from continuing

6624578.92147923875.73

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

owners of the parent company (“-” for 41705640.38 114993752.24

net loss)

5.2.1 Net profit attributable to non-

-35081061.4632930123.49

controlling interests (“-” for net loss)

6. Other comprehensive income net of

-30765711.16213491772.64

tax

Attributable to owners of the parent

-29511662.71213835708.05

company

6.1 Items that will not be

-24864916.26214283065.88

reclassified to profit or loss

85Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

-24864916.26214283065.88

other equity investments

6.1.4 Changes in the fair value

arising from changes in own credit risk

6.1.5 Other

6.2 Items that will be reclassified to

-4646746.45-447357.83

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

other debt investments

6.2.3 Other comprehensive

income arising from the reclassification

of financial assets

6.2.4 Credit impairment

allowance for other debt investments

6.2.5 Reserve for cash flow

hedges

6.2.6 Differences arising from the

translation of foreign currency- -4646746.45 -447357.83

denominated financial statements

6.2.7 Other

Attributable to non-controlling

-1254048.45-343935.41

interests

7. Total comprehensive income -24141132.24 361415648.37

Attributable to owners of the parent

12193977.67328829460.29

company

Attributable to non-controlling

-36335109.9132586188.08

interests

8. Earnings per share

8.1 Basic earnings per share 0.0272 0.0749

8.2 Diluted earnings per share 0.0272 0.0748

Where business combinations under common control occurred in the current period the net profit achieved by the acquirees before

the combinations was RMB0.00 with the amount for the same period of last year being RMB0.00.Legal representative: Yu Zhongmin

Person in charge of accounting work: Li Zehua

Person in charge of the accounting department: Li Yizhi

86Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

4. Income Statement of the Parent Company

Unit: RMB

Item H1 2026 H1 2025

1. Operating revenue 1379496700.64 1375713664.69

Less: Cost of sales 1129938672.08 1098937232.29

Taxes and surcharges 13983884.82 13565054.39

Selling expense 118018925.63 124554920.28

Administrative expense 74476172.63 78778907.88

R&D expense 55827049.67 63700067.52

Finance costs 13629398.82 -5528642.24

Including: Interest costs 1914559.40 860302.39

Interest revenue 7695409.02 5633071.27

Add: Other income 2653805.62 3932905.05

Return on investment (“-” for loss) 25542187.77 31566338.46

Including: Share of profit or loss

691170.38646719.77

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 (“-”

-1130190.00134700.00

for loss)

Credit impairment loss (“-” for

-479040.24-3137238.29

loss)

Asset impairment loss (“-” for

-8898677.03-8828838.84

loss)

Asset disposal income (“-” for

loss)

2. Operating profit (“-” for loss) -8689316.89 25373990.95

Add: Non-operating income 10002776.64 26638.49

Less: Non-operating expense 1088503.45 524656.29

3. Profit before tax (“-” for loss) 224956.30 24875973.15

Less: Income tax expense 2815299.07 -550639.58

4. Net profit (“-” for net loss) -2590342.77 25426612.73

4.1 Net profit from continuing

-2590342.7725426612.73

operations (“-” for net loss)

4.2 Net profit from discontinued

operations (“-” for net loss)

5. Other comprehensive income net of

-24864916.26214283065.88

tax

5.1 Items that will not be reclassified

-24864916.26214283065.88

to profit or loss

5.1.1 Changes caused by

remeasurements on defined benefit

87Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

-24864916.26214283065.88

other equity investments

5.1.4 Changes in the fair value

arising from changes in own credit risk

5.1.5 Other

5.2 Items that will be reclassified to

profit or loss

5.2.1 Other comprehensive income

that will be reclassified to profit or loss

under the equity method

5.2.2 Changes in the fair value of

other debt investments

5.2.3 Other comprehensive income

arising from the reclassification of

financial assets

5.2.4 Credit impairment allowance

for other debt investments

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 -27455259.03 239709678.61

7. Earnings per share

7.1 Basic earnings per share

7.2 Diluted earnings per share

Legal representative: Yu Zhongmin

Person in charge of accounting work: Li Zehua

Person in charge of the accounting department: Li Yizhi

5. Consolidated Cash Flow Statement

Unit: RMB

Item H1 2026 H1 2025

1. Cash flows from operating activities:

Proceeds from sale of commodities

3845597497.394100249556.88

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

88Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Premiums received on original

insurance contracts

Net proceeds from reinsurance

Net increase in deposits and

investments of policy holders

Interest handling charges and

commissions received

Net increase in interbank loans

obtained

Net increase in proceeds from

repurchase transactions

Net proceeds from acting trading of

securities

Tax rebates 81095038.09 88415257.94

Cash generated from other operating

78826438.0898470018.95

activities

Subtotal of cash generated from

4005518973.564287134833.77

operating activities

Payments for commodities and

2979290624.623072000160.70

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 775373509.65 793037980.68

Taxes paid 184920316.79 197243157.16

Cash used in other operating activities 183137422.95 215008522.28

Subtotal of cash used in operating

4122721874.014277289820.82

activities

Net cash generated from/used in

-117202900.459845012.95

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment 241658273.00 386722784.87

Return on investment 18114395.33 12193550.27

Net proceeds from the disposal of

fixed assets intangible assets and other 8884051.33 43414.00

long-lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

23042757.16

activities

Subtotal of cash generated from 268656719.66 422002506.30

89Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

investing activities

Payments for the acquisition of fixed

assets intangible assets and other long- 173500086.71 188617109.18

lived assets

Payments for investments 687789182.91 252320000.00

Net increase in pledged loans granted

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing activities 76800.00

Subtotal of cash used in investing

861366069.62440937109.18

activities

Net cash generated from/used in

-592709349.96-18934602.88

investing activities

3. Cash flows from financing activities:

Capital contributions received 22467537.92

Including: Capital contributions by

22467537.92

non-controlling interests to subsidiaries

Borrowings raised 194011449.42 63768004.07

Cash generated from other financing

153423890.9035675972.28

activities

Subtotal of cash generated from

369902878.2499443976.35

financing activities

Repayment of borrowings 458696883.36 184157032.76

Interest and dividends paid 85112466.42 30690680.79

Including: Dividends paid by

1994549.9224282863.70

subsidiaries to non-controlling interests

Cash used in other financing activities 2774547.17 16484020.64

Subtotal of cash used in financing

546583896.95231331734.19

activities

Net cash generated from/used in

-176681018.71-131887757.84

financing activities

4. Effect of foreign exchange rates

-22073526.722424112.08

changes on cash and cash equivalents

5. Net increase in cash and cash

-908666795.84-138553235.69

equivalents

Add: Cash and cash equivalents

2819359299.722684382020.41

beginning of the period

6. Cash and cash equivalents end of the

1910692503.882545828784.72

period

Legal representative: Yu Zhongmin

Person in charge of accounting work: Li Zehua

Person in charge of the accounting department: Li Yizhi

6. Cash Flow Statement of the Parent Company

Unit: RMB

90Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Item H1 2026 H1 2025

1. Cash flows from operating activities:

Proceeds from sale of commodities

1188445554.551309774743.22

and rendering of services

Tax rebates 46128741.62 43232841.35

Cash generated from other operating

198771681.1518841629.90

activities

Subtotal of cash generated from

1433345977.321371849214.47

operating activities

Payments for commodities and

713793916.641062624948.98

services

Cash paid to and for employees 206890522.37 199120202.97

Taxes paid 44563155.83 93662045.51

Cash used in other operating activities 201183632.07 93658109.42

Subtotal of cash used in operating

1166431226.911449065306.88

activities

Net cash generated from/used in

266914750.41-77216092.41

operating activities

2. Cash flows from investing activities:

Proceeds from disinvestment 210000000.00 249522784.87

Return on investment 19074236.46 12328693.07

Net proceeds from the disposal of

fixed assets intangible assets and other 6000000.00

long-lived assets

Net proceeds from the disposal of

subsidiaries and other business units

Cash generated from other investing

215850.00

activities

Subtotal of cash generated from

235074236.46262067327.94

investing activities

Payments for the acquisition of fixed

assets intangible assets and other long- 39543400.88 70343058.99

lived assets

Payments for investments 593603151.20 197416600.00

Net payments for the acquisition of

subsidiaries and other business units

Cash used in other investing activities

Subtotal of cash used in investing

633146552.08267759658.99

activities

Net cash generated from/used in

-398072315.62-5692331.05

investing activities

3. Cash flows from financing activities:

Capital contributions received

Borrowings raised 14556611.51

Cash generated from other financing

activities

Subtotal of cash generated from 14556611.51

91Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

financing activities

Repayment of borrowings 122169781.24

Interest and dividends paid 76136614.53

Cash used in other financing activities

Subtotal of cash used in financing

198306395.77

activities

Net cash generated from/used in

-198306395.7714556611.51

financing activities

4. Effect of foreign exchange rates

-13637776.75237020.05

changes on cash and cash equivalents

5. Net increase in cash and cash

-343101737.73-68114791.90

equivalents

Add: Cash and cash equivalents

1227318268.341084153666.22

beginning of the period

6. Cash and cash equivalents end of the

884216530.611016038874.32

period

Legal representative: Yu Zhongmin

Person in charge of accounting work: Li Zehua

Person in charge of the accounting department: Li Yizhi

92Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

7. Consolidated Statements of Changes in Owners’ Equity

H1 2026

Unit: RMB

H1 2026

Equity attributable to owners of the parent company

Other equity

Item instruments Less: Other Gene

Non- Total

Share Capital Treas comprehe Specific Surplus ral Retained Oth controlling owners’

Subtotal

capital Prefer Perpet Oth reserves ury nsive reserve reserves reser earnings er interests equity

red ual

er stock income ve

shares bonds

1. Balance

as at the 15357782 8435179 2271473 343649 1893581 40355822 68348205 35966900 104315105

end of the 30.00 55.90 91.31 4.07 33.42 97.14 01.84 85.55 87.39

prior year

Add:

Adjustme

nt for

change in

accountin

g policy

Adjustme

nt for

correction

of

previous

error

Other

2. Balance

as at the 15357782 8435179 2271473 343649 1893581 40355822 68348205 35966900 104315105

beginning 30.00 55.90 91.31 4.07 33.42 97.14 01.84 85.55 87.39

of the year

3.--169860----

93Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Increase/ 104987.7 2951166 5.13 35083271. 63001316. 15226699. 78228015.6

decrease 5 2.71 12 45 17 2

in theperiod (“-” for

decrease)

3.1

Total - - -

41705640.12193977.

comprehe 2951166 36335109. 24141132.2

3867

nsive 2.71 91 4

income

3.2

Capital

-

increased 22608425. 22503437.9

104987.7-104987.75

and 67 2

5

reduced

by owners

3.2.1

Ordinary

22467537.22467537.9

shares

922

increased

by owners

3.2.2

Capital

increased

by holders

of other

equity

instrument

s

3.2.3

Share-

based

payments

included

in owners’

equity

94Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

-

3.2.4

104987.7-104987.75140887.7535900.00

Other

5

3.3

----

Profit

76788911.76788911.3985099.480774010.9

distributio

505022

n

3.3.1

Appropria

tion to

surplus

reserves

3.3.2

Appropria

tion to

general

reserve

3.3.3

Appropria

tion to - - - -

owners 76788911. 76788911. 3985099.4 80774010.9

(or 50 50 2 2

sharehold

ers)

3.3.4

Other

3.4

Transfers

within

owners’

equity

3.4.1

Increase

in capital

(or share

capital)

from

95Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

income

transferre

d to

retained

earnings

3.4.6

Other

3.51698601698605.12485084.44183689.62

Specific 5.13 3 9

96Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

reserve

3.5.1

Increase 842897 8428975.8 5135020.3 13563996.1

in the 5.84 4 3 7

period

3.5.2

6730376730370.72649935.8

Used in 9380306.55

0.7114

the period

3.6

Other

4. Balance

as at the 15357782 8434129 1976357 513509 1893581 40004990 67718191 35814633 103532825

end of the 30.00 68.15 28.60 9.20 33.42 26.02 85.39 86.38 71.77

period

H1 2025

Unit: RMB

H1 2025

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

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

97Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Adjustme

nt for

correction

of

previous

error

Other

2.

Balance

as at the 15487782 9143363 821651 3834291 478206 1500975 36550461 65743043 35921957 10166500

beginning 30.00 25.66 44.15 55.02 1.20 22.97 54.57 05.27 88.57 093.84

of the

year

3.

Increase/

decrease - - -

4195391705009.171881785393974.1435878535724863.179312720

in the 13000000. 7081836 821651

9.82828.82056.9038.28period (“- 00 9.76 44.15” for

decrease)

3.1

Total

2138357114993753288294632586188.361415648

comprehe

08.052.240.2908.37

nsive

income

3.2

Capital

----

increased 28999773. 27346547.

13000000.70818368216511653225.6

and 07 46

009.7644.151

reduced

by owners

3.2.1

Ordinary

shares

increased

by owners

98Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

3.2.2

Capital

increased

by

holders of

other

equity

instrumen

ts

3.2.3

Share-

based

payments

included

in

owners’

equity

----

3.2.428999773.27346547.

13000000.70818368216511653225.6

Other 07 46

009.7644.151

3.3

----

Profit

184293381842933828348734.212642121

distributio

7.607.6017.77

n

3.3.1

Appropria

tion to

surplus

reserves

3.3.2

Appropria

tion to

general

reserve

3.3.3----

Appropria 18429338 18429338 28348734. 212642121

tion to 7.60 7.60 17 .77

99Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

owners

(or

sharehold

ers)

3.3.4

Other

3.4

Transfers -

171881715469360

within 1718817

8.829.41

owners’ 88.23

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

100Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

transferre

d to

retained

earnings

3.4.5

Other

comprehe

nsive -

171881715469360

income 1718817

8.829.41

transferre 88.23

d to

retained

earnings

3.4.6

Other

3.5

705009.2487636.43192646.2

Specific 705009.82

8202

reserve

3.5.1

Increase 118126 11812685. 5958913.0 17771598.in the 85.82 82 5 87

period

3.5.2

11107611107676.3471276.614578952.

Used in

76.0000565

the period

3.6

Other

4.

Balance

1535778284351794253830548707167285737404401671789213627920610345812

as at the

30.0055.9074.841.0201.7928.6262.1751.95814.12

end of the

period

Legal representative: Yu Zhongmin Person in charge of accounting work: Li Zehua Person in charge of the accounting department: Li Yizhi

101Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

8. Statements of Changes in Owners’ Equity of the Parent Company

H1 2026

Unit: RMB

H1 2026

Other equity instruments

Item Less: OtherCapital Specific Surplus Retained Othe Total owners’

Share capital Preferre Perpetua Othe Treasur comprehensivreserves reserve reserves earnings r equity

d shares l bonds r y stock e income

1. Balance as

1535778230.0839893397.2227973609.5420662202.63188821949.86213651959.2

at the end of 522569.87

099645

the prior year

Add:

Adjustment

for change in

accounting

policy

Adjustment

for correction

of previous

error

Other

adjustments

2. Balance as

at the 1535778230.0 839893397.2 227973609.5 420662202.6 3188821949.8 6213651959.2

522569.87

beginning of 0 9 9 6 4 5

the year

3. Increase/

decrease in

-1018783.2the period (“- -79379254.27 -103225387.30

24864916.263

” for

decrease)

3.1 Total

-

comprehensiv -2590342.77 -27455259.03

24864916.26

e income

102Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

3.2 Capital

increased and

reduced by

owners

3.2.1

Ordinary

shares

increased by

owners

3.2.2

Capital

increased by

holders of

other equity

instruments

3.2.3

Share-based

payments

included in

owners’

equity

3.2.4

Other

3.3 Profit

-76788911.50-76788911.50

distribution

3.3.1

Appropriation

to surplus

reserves

3.3.2

Appropriation

-76788911.50-76788911.50

to owners (or

shareholders)

3.3.3

Other

3.4

103Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Transfers

within

owners’

equity

3.4.1

Increase in

capital (or

share capital)

from capital

reserves

3.4.2

Increase in

capital (or

share capital)

from surplus

reserves

3.4.3

Loss offset by

surplus

reserves

3.4.4

Changes in

defined

benefit

schemes

transferred to

retained

earnings

3.4.5

Other

comprehensiv

e income

transferred to

retained

earnings

3.4.6

Other

104Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

3.5

1018783.2

Specific 1018783.23

3

reserve

3.5.1

4019483.5

Increase in 4019483.51

1

the period

3.5.2

3000700.2

Used in the 3000700.28

8

period

3.6 Other

4. Balance as

1535778230.0839893397.2203108693.31541353.1420662202.63109442695.56110426571.9

at the end of

0930675

the period

H1 2025

Unit: RMB

H1 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

105Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 - -

42401277.617188178.8the period (“- -13000000.00 69165144.1 82165144.1 24489.83 -4173165.46 55440780.84

52

” for 5 5

decrease)

3.1 Total

214283065.

comprehensi 25426612.73 239709678.61

88

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

106Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Other 5 5

3.3 Profit - -

distribution 184293387.60 184293387.60

3.3.1

Appropriatio

n to surplus

reserves

3.3.2

Appropriatio

--

n to owners

184293387.60184293387.60

(or

shareholders)

3.3.3

Other

3.4

Transfers -

17188178.8

within 171881788. 154693609.41

2

owners’ 23

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

107Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Changes in

defined

benefit

schemes

transferred to

retained

earnings

3.4.5

Other

comprehensi -

17188178.8

ve income 171881788. 154693609.41

2

transferred to 23

retained

earnings

3.4.6

Other

3.5

Specific 24489.83 24489.83

reserve

3.5.1

5741655.3

Increase in 5741655.37

7

the period

3.5.2

5717165.5

Used in the 5717165.54

period

3.6 Other

4. Balance as

1535778230.839893397.425971708.3194742.6398589771.3015596677.6219024527.

at the end of

0029974039992

the period

Legal representative: Yu Zhongmin Person in charge of accounting work: Li Zehua Person in charge of the accounting department: Li Yizhi

108Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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).

109Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 August 21 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”) Guangdong Fozhao

Optoelectronics Co. Ltd. (formerly Foshan Hortilite Optoelectronics Co. Ltd. Fozhao Optoelectronics for short)

Fozhao (Hainan) Technology Co. Ltd. (referred to as “Hainan Technology”) Foshan Kelian New Energy

Technology Co. Ltd. (referred to as “Foshan Kelian”) Nanning Liaowang Auto Lamp Co. Ltd. (referred to as“Liaowang Auto Lamp) Foshan NationStar Optoelectronics Co. Ltd. (referred to as “NationStarOptoelectronics”) Foshan Sigma Venture Capital Co. Ltd. (referred to as “Sigma”) Fozhao Huaguang

(Maoming) Technology Co. Ltd. (referred to as “Fozhao Huaguang”) and 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)

110Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Co. Ltd. (“Suzhou Liaowang”) Zhejiang Hule Electrical Equipment Manufacturing Co. Ltd. (“Hule Electrical”)

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 “GermanyNationStar”) Guangdong Fenghua Semiconductor Technology Co. Ltd. (referred to as “FenghuaSemiconductor”) Gaozhou NationStar Lighting Technology Co. Ltd. (referred to as “Gaozhou NationStar”) 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.

111Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

1. Statement of Compliance with the Accounting Standards for Business Enterprises

The financial statements prepared by the Company are in compliance with the Accounting Standards for

Business Enterprises which factually and completely present the Company’s and the consolidated financial

positions business results and cash flows as well as other relevant information of the Company.

2. Fiscal Year

A fiscal year starts on January 1 and ends on December 31 according to the Gregorian calendar.

3. Operating Cycle

An operating cycle for the Company is 12 months which is also the classification criterion for the liquidity

of its assets and liabilities.

4. Recording Currency

Renminbi is the recording currency for the statements of the Company.

5. Methods for Determining Materiality Standards and Selection Criteria

□ Applicable □ Not applicable

(1) Materiality of financial statement items

The Company determines the materiality of financial statement items based on the principle of whether such

items affect the users of financial statements making economic decisions in terms of both the nature and amount.The materiality of financial statement items in terms of the amount is determined based on a certain percentage of

relevant items in total assets total liabilities net assets operating income and net profit. The materiality of

financial statement items in terms of nature is based on factors with a significant impact on the Company’s

financial position and operating results such as whether they are part of routine operating activities whether they

result in changes in profit or loss and whether they affect regulatory indicators.

(2) Materiality of detailed items in the notes to financial statement items

The Company determines the materiality of detailed items in the notes to financial statement items based on

the materiality of the financial statement items. This determination is made by considering a certain percentage of

the specific item or a combination of the amount of the item taking into account the nature of the specific item.Certain items that are not material to the financial statements may be material to the notes and still require

separate disclosure in the notes. The materiality criteria related to the notes to the financial statement items are:

Item Materiality criteria

112Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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.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

113Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

recognition are measured at fair value on the date of acquisition. The acquirer recognizes as goodwill the

difference between the combination costs and the fair value share of the identifiable net assets of the acquiree

obtained in the combination. If the combination costs are less than the fair value share of the acquiree’s

identifiable net assets obtained in the combination the difference between the combination costs still less than the

fair value share of the acquiree’s identifiable net assets obtained in the combination after review shall be included

in the non-operating revenue for the current period.

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

114Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

period of consolidation as if the business combination had occurred at the time the ultimate controlling party

began to exercise control; for subsidiaries acquired through a business combination not under the same control

the fair value of the identifiable net assets on the acquisition date is used as the basis for preparing the

consolidated financial statements. The financial statements are adjusted based on the fair value of the identifiable

net assets on the acquisition date.

4) Accounting treatment of disposal of subsidiaries

If a long-term equity investment in a subsidiary is partially disposed of without loss of control the difference

between the disposal price and the share of the net assets of the subsidiary corresponding to the disposal of the

long-term equity investment calculated on an ongoing basis from the acquisition date or the consolidation date is

adjusted to capital surplus in the consolidated financial statements and retained earnings is adjusted if the capital

surplus is not sufficient to cover the reduction. If the control over the investee is lost due to the disposal of part of

equity investments the residual equity are re-measured at fair value on the date of loss of control. The aggregate

of the consideration obtained by disposing of the equity and the fair value of the remaining equity less the portion

of the net assets of the subsidiary that has been measured as calculated at the original shareholding proportion

from the acquisition date or combination date is recognized in profit and loss of the current period on investments

in which the control is lost and goodwill shall be offset. Other comprehensive income related to the equity

investments in the former subsidiary shall be included in the return on investment for the current period when the

Company lost the control.

8. Classification of Joint Operation Arrangements and Accounting Methods for Joint Operations

(1) Classification of joint arrangements

Joint arrangements are divided into joint operations and joint ventures. The joint arrangements not reached

through separate entities are classified as joint operations. Separate entities refer to entities with separate

identifiable financial structures including separate legal entities and entities that do not have legal entity status but

are recognized by law. The joint arrangements reaching through separate entities are usually classified as joint

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

115Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

As a participant in a joint operation the Company recognizes the following items related to its share of

interest in the joint operations. It accounts for them following the relevant Accounting Standards for Business

Enterprises: Recognition of assets or liabilities held separately and recognition of assets or liabilities held jointly

on a share basis; recognition of revenue from the sale of the share of output from the joint operation to which it is

entitled; recognition of revenue from the joint operation arising from the sale of output on a share basis; and

recognition of expenses incurred separately and recognition of expenses incurred in the joint operation on a share

basis.If the Company is a participant in a joint operation that does not enjoy joint control and it owns the

underlying assets of the joint operation and assumes the liabilities related to the joint operation the accounting

treatment of the joint operation partner shall be referred to; otherwise the accounting treatment shall be carried

out in accordance with the relevant enterprise accounting standards.

(3) Accounting treatment of joint ventures

If the Company is a joint venture partner it shall account for its investment in joint ventures following the

provisions of Accounting Standards for Business Enterprises No. 2-Long-term Equity Investments; if the

Company is a non-joint venture partner it shall account for its investment in such joint ventures based on the

extent of its influence on such joint ventures.

9. Recognition Criteria of Cash and Cash Equivalents

Cash as determined by the Company in preparing the statement of cash flows represents the Company’s

cash on hand and deposits that are readily available for disbursement. Cash equivalents identified in the

preparation of the statement of cash flows are investments that are held for a short period of time are highly

liquid are readily convertible to known amounts of cash and are subject to an insignificant risk of change in

value.

10. Translation of Transactions and Financial Statements Denominated in Foreign Currencies

(1) Conversion of foreign currency business

The Company records foreign currency transactions using the spot exchange rate on the transaction date or

the nearest exchange rate to the transaction date to convert into the functional currency. On the balance sheet date

the monetary items in foreign currencies are translated at the spot exchange rate. Exchange differences arising

from the difference between the spot rate on that date and the spot rate at initial recognition or on the previous

balance sheet date are recognized in profit or loss except for exchange differences on special borrowings in

116Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

foreign currencies that qualify for capitalization which are capitalized in the period in which they are capitalized

and charged to the cost of the related assets. Non-monetary items measured at historical costs in foreign currencies

are still translated at the spot exchange rate on the transaction date with the amount of standard currency for

accounting unchanged. Non-monetary items measured at fair value in foreign currencies are translated at the spot

exchange rate on the date when the fair value is determined. The difference between the amount of standard

currency for accounting after translation and the original amount shall be treated as a change in fair value

(including exchange rate changes) and recognized in current profit or loss or in other comprehensive income.

(2) Conversion of foreign currency financial statements

If the Company’s subsidiaries joint ventures and affiliated business use a different bookkeeping base

currency from the Company’s they need to convert their foreign currency financial statements before conducting

accounting and preparing consolidated financial statements. The assets and liabilities in the balance sheet shall be

translated at the spot rate on the balance sheet date. All items of owners’ equity except for “undistributed profit”

shall be translated at the spot exchange rate at the time of occurrence. Items under revenue and expenses in the

income statement are translated at the spot exchange rate on the transaction date. The exchange difference in

translating foreign operations arising from the translation are shown under other comprehensive income in the

owner’s equity line in the balance sheet. Cash flows in foreign currencies shall be translated at the spot exchange

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

117Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

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.

118Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

* 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

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

119Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The general approach to expected credit losses is that: the Company assesses whether the credit risk of the

relevant financial instruments has increased significantly since the initial recognition on each balance sheet date

divides the process of credit impairment of financial instruments into three stages and applies different

accounting treatments to the impairment of financial instruments at different stages: (1) in the first stage if the

credit risk of a financial instrument has not increased significantly since the initial recognition the Company will

measure the loss reserves according to the amount equivalent to the expected credit losses in the next 12 months

and calculate the interest revenue according to the book balance (i.e. before deducting the provision for

impairment) and the actual interest rate; (2) In the second stage if the credit risk of a financial instrument has

increased significantly since the initial recognition but no credit impairment has occurred the Company will

measure the loss reserves based on the expected credit loss over the entire life of the financial instrument and

calculates interest revenue based on the carrying amount of the financial instrument and the effective interest rate;

(3) In the third stage if credit impairment occurs after the initial recognition the Company will measure the loss

reserves based on the expected credit loss over the life of the financial instrument and calculates interest revenue

based on the amortized cost (carrying amount less provision for impairment) and the effective interest rate.The simplified approach for expected credit losses is to always measure the allowance for losses at an

amount equal to the expected credit losses throughout their lives.

(3) Accounting methods of the expected credit losses

To reflect the changes in credit risk of financial instruments since initial recognition the Company

remeasures expected credit losses at each balance sheet date. The resulting increase or reversal amount of the loss

provision should be recognized as an impairment loss or gain in profit or loss and offset against the carrying

amount of the financial asset as stated in the balance sheet or included in projected liabilities depending on the

type of financial instrument (loan commitments or financial guarantee contracts).

(4) Method of the provision for losses on the measurement of receivables lease receivables

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

120Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

General lighting auto lamps and other

Prepare the comparative list between aging of accounts

relevant business with the parent company

Business portfolio of receivable and expected credit loss rate over the entire life

and the subsidiary Liaowang Auto Lamp

general lighting and auto and calculate the expected credit loss by consulting

as the representative this portfolio takes

lamps historical experience in credit losses combining current

the aging of accounts receivable as the

situation and prediction for future economic situation.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%

121Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

For receivables with significant financing components and lease receivables the Company measures the

provision for losses in accordance with the general method i.e. the “three-stage” model. The credit risk

characteristics grouping the aging calculation method based on the credit risk characteristics grouping and the

criteria for determining individual provisioning are consistent with the recognition standards for those without

financing components.

(5) Method of measuring loss provision for other financial assets

For financial assets other than those mentioned above such as debt investments other debt investments

other receivables and long-term receivables other than lease receivables the Company measures the allowance for

losses in accordance with the general method i.e. the “three-stage” model.

1) Categories of bad debt provision according to credit risk characteristics and basis of determination

The Company divides other receivables into certain credit risk combinations based on the nature of the

amounts. It calculates expected credit losses based on the combinations and the basis for determining the

combinations is as below:

Portfolio name Determination basis

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 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

122Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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.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.

123Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The net realizable value of finished goods materials for sale and other merchandise inventories used directly

for sale is determined in the normal course of production and operation as the estimated selling price of such

inventories less estimated selling expenses and related taxes.The net realizable value of material inventories subject to processing is determined in the normal course of

production operations as the estimated selling price of the finished goods produced less the estimated costs to be

incurred to completion estimated selling expenses and related taxes. The Company determines the net realizable

value of inventories based on solid evidence obtained and after taking into consideration the purpose for which the

inventory is held and the impact of post-balance sheet events.

18. Assets Held for Sale

(1) Recognition criteria and accounting treatment for non-current assets classified as held for sale or disposal

groups

A non-current asset or disposal group whose carrying value will be recovered principally through sale rather

than through continuing use is classified as held for sale and meets the following conditions: first it is

immediately available for sale under current conditions based on the customary practice for sales of such assets or

disposal groups in similar transactions; and second it is highly probable that the sale will occur i.e. the enterprise

has already resolved on a plan for the sale and has obtained a firm commitment to purchase and it is expected that

the sale is expected to be completed within one year. The relevant regulations require the approval of the relevant

or regulatory authority of the enterprise before the sale shall have been approved.When the Company initially measures or remeasures non-current assets or disposal groups held for sale on

the balance sheet date if the carrying value is higher than the fair value minus the net amount of the sale costs the

carrying value will be written down to the net amount of fair value minus the sale costs. The amount written down

will be recognized as asset impairment loss and included in current profit and loss and provision for impairment

of assets held for sale will be made.The amount of asset impairment loss recognized for disposal groups held for sale shall be offset against the

carrying value of goodwill in the disposal group first and then against the carrying value of each non-current asset

proportionately according to the proportion of the carrying value of each non-current asset in the disposal group as

defined in the applicable measurement of the Accounting Standards for Business Enterprises - Non-current Assets

Held for Sale Disposal Groups and Discontinued Operations.

(2) Recognition criteria and presentation of discontinued operations

124Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Discontinued operations is a separately distinguishable component that meets one of the following conditions

and that has been disposed of by the Company or classified by the Company as held for sale: the component

represents a separate principal business or a separate principal operating area; the component is part of a related

program of proposed dispositions of a separate principal business or a separate principal operating area; The

component is a subsidiary acquired specifically for resale.The Company presents gains and losses from continuing operations and gains and losses from discontinued

operations separately in the statement of income. Operating gains and losses such as impairment losses and

reversal amounts for discontinued operations and gains and losses on disposals are presented as gains and losses

from discontinued operations. The revenues expenses gross profit income tax expense (benefit) and net profit

from discontinued operations impairment losses recognized on assets or disposal groups of discontinued

operations and the amount of their reversal total gain or loss on disposal of discontinued operations income tax

expense (benefit) and net gain or loss on disposal net cash flows from operating activities investing activities and

financing activities of discontinued operations and gains and losses from continuing operations and gains and

losses from discontinued operations attributable to owners of the parent company are disclosed in the notes.

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

125Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

directors or similar authority of the investee; participation in the policy-making process of the investee;

assignment of management personnel to the investee; reliance of the investee on the technology or technical

information of the investee; and major transactions with the investee.

(2) Determination of initial investment cost

For long-term equity investments acquired through a business combination in the case of a business

combination under the same control the initial investment cost of the long-term equity investment shall be the

share of the owners’ equity of the party being combined in the consolidated financial statements of the ultimate

controlling party on the combination date; in the case of a business combination not under the same control the

initial investment cost of the long-term equity investment shall be the cost of combination determined on the

acquisition date; for long-term equity investments acquired by paying cash the initial investment cost is the actual

purchase price paid; for long-term equity investments acquired by issuing equity securities the initial investment

cost is the fair value of the equity securities issued; for long-term equity investments acquired through debt

restructuring the initial investment cost is determined

(3) Method of subsequent measurement and recognition of profit or loss

Long-term equity investments in which the Company can exercise control over the investees are accounted

for by the cost method and long-term equity investments in associates and joint ventures are accounted for by the

equity method. If a portion of the Company’s equity investments in affiliates is held indirectly through venture

capital institutions mutual funds trust companies or similar entities including investment-linked funds

regardless of whether the above entities have significant influence over this portion of the investment the

Company treats it in accordance with the relevant provisions of Accounting Standards for Business Enterprises

No. 22-Recognition and Measurement of Financial Instruments and accounts for the remaining portion with the

equity method.

23. Investment Properties

Measurement model of investment property

Measurement of cost method

Depreciation or amortization method

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.

126Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The Company uses the composite life depreciation method for buildings leased out of investment properties

and the specific accounting policies are the same as those for fixed assets. Land use rights leased out of

investment properties and land use rights held and intended to be transferred after appreciation are amortized

through the straight-line method with the same accounting policies as those for the intangible assets segment.

24. Fixed Assets

(1) Recognition conditions

The fixed assets refer to tangible assets held for production of goods provision of labor services lease or

business with a service life of over a fiscal year. Recognition is made when the following conditions are met: The

economic benefits associated with the fixed-asset will probably flow to the enterprise; the cost of the fixed-asset

can be measured reliably.

(2) Depreciation method

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

127Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

usable condition shall be one of the following: The physical construction (including installation) of the fixed

assets has been fully completed or substantially completed; production or trial operation has been conducted and

the results show that the assets can operate normally or can steadily produce qualified products or the results of

the trial operation show that they can function normally or operate; the amount of expenditure on the fixed assets

constructed is little or almost no longer incurred; the fixed assets acquired have met the design or contract

requirements or are substantially consistent with the design or contract requirements.

26. Borrowing Costs

(1) Recognition principles for the capitalization of borrowing costs

If the borrowing costs incurred by the Company can be directly attributable to the acquisition construction or

production of assets that meet the capitalization conditions they shall be capitalized and included in the costs of

the underlying assets; other borrowing costs recognized as costs according to the amount incurred shall be

included in the profit and loss for the current period. Assets eligible for capitalization refer to assets such as fixed

assets investment properties and inventories that require a long period for their acquisition or production

activities to reach the expected usable or saleable status.

(2) Calculation of capitalization amount

The capitalization period refers to the period from when the capitalization of borrowing costs starts to when

the capitalization stops. The period during which capitalization of borrowing costs is suspended is not included.Capitalization of borrowing costs shall be suspended if there is an abnormal interruption in the course of

acquisition or production and the interruption lasts for more than three consecutive months.Borrowing of special borrowings is determined by the interest expense incurred in the period of the special

borrowings less the interest revenue expenditure earned by depositing the unused borrowed funds in banks or the

investment income earned by making temporary investments; the appropriation of general borrowings is

determined by multiplying the weighted average amount of asset expenses over the portion of special borrowings

by the capitalization rate of the general borrowings appropriated which is the weighted average interest rate of

general borrowings; if there is a discount or premium on borrowings the amount of discount or premium to be

amortized in each accounting period is determined by the effective interest rate method. The amount of interest is

adjusted for each period.

128Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The effective interest rate method is a method of calculating the amortized discount or premium or interest

expense on a borrowing based on its effective interest rate. The effective interest rate method calculates the

amortized discount or premium or interest expense on a borrowing based on its effective interest rate.

27. Living Assets

Not applicable

28. Oil and Gas Assets

Not applicable

29. Intangible Assets

(1) Pricing method of intangible assets

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

129Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

The intangible assets are regarded as intangible assets with uncertain service life if the term during which

they can bring economic benefits to the Company is unforeseeable or if their usage period is uncertain. The bases

for determining of uncertain service life are: The intangible assets come from contractual or other legal rights but

the contract or laws have no certain stipulations of the service life; the term during which the intangible assets

bring economic benefits to the Company is still unforeseeable even with consideration of peer status or

demonstrations of related professionals.At the end of each year the review of service life of intangible assets with uncertain service life mainly

adopts the method of reviewing from lower department to upper department where departments related to the use

of intangible assets shall conduct the basic review and make assessment of whether the determining basis of

uncertain service life changes.

(3) The scope of R&D expenditure collection and the related accounting treatment

The scope of the Company’s R&D expenditures is mainly formulated based on the Company’s research and

development projects which mainly includes: R&D personnel’s employee remuneration direct input expenses

depreciation expenses and long-term amortization expenses design expenses equipment commissioning

expenses amortization expenses of intangible assets commissioned external research and development expenses

and other expenses etc.Expenditures incurred during the research phase of an internal research and development project are

recognized in profit or loss when incurred; expenditures incurred during the development phase that meet the

conditions for recognition as an intangible asset are transferred to intangible asset accounting.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;

130Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

4) Having sufficient technical financial resources and other resources to support the development of the

intangible assets and the ability to use or sell the intangible assets;

5) Expenditure attributable to the development stage of intangible assets can be measured reliably.

The cost of self-developed intangible assets includes the total expenditure incurred after meeting intangible

assets recognition criterion and before reaching intended use. Expenditures that have been expensed in previous

periods are no longer adjusted.

30. Impairment of Long-term Assets

For long-term assets having the indication of impairment on balance sheet date such as long-term equity

investments investment property measured in cost mode fixed assets construction in progress productive living

assets measured in cost mode oil and gas assets and intangible assets the Company shall test the impairment. If

the impairment test results indicate that the recoverable amount of the asset is lower than its book value the

impairment provision shall be made at the difference and included in the impairment loss.The recoverable amount is the higher of the fair value of the asset minus the disposal cost and the present

value of the expected future cash flow of the asset. The provision for impairment of assets is calculated and

recognized on the basis of individual assets. If it is difficult to estimate the recoverable amount of individual

assets the recoverable amount of the asset group shall be recognized by the asset group to which the asset

belongs. The asset group is the smallest portfolio of assets that can generate cash inflows independently.Goodwill presented separately in the financial statements shall be tested for impairment every year whether

or not there is any indication of impairment. The book value of the goodwill shall be apportioned to the asset

group or portfolio of asset groups that is expected to benefit from the synergies of the business combination when

the impairment test is conducted. The corresponding impairment loss is recognized if the test results indicate that

the recoverable amount of the asset group or portfolio of asset groups containing the apportioned goodwill is

lower than its book value. The amount of the impairment loss shall offset the book value of the goodwill

apportioned to the asset group or portfolio of asset groups and offset the book value of other assets in proportion

according to the proportion of the book value of other assets except the goodwill in the asset group or portfolio of

asset groups.Once the impairment loss of the above asset is recognized the portion that the value is restored will not be

written back in subsequent periods.

131Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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.

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.

132Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(2) Accounting treatment of the welfare after demission

The payable and deposit amount calculated according to the defined contribution plan during the accounting

period when the active staff offering the service for the Company is recognized as liabilities and is included in the

current profits and losses or relevant assets cost. The benefit obligations arising from the defined benefit plan shall

be attributable to the period in which the employees provide services based on the formula determined by

expected cumulative welfare unit method and included in current profits and losses or cost of relevant asset.

(3) Accounting treatment of the demission welfare

When offering the demission welfare the Company shall recognize the payroll liabilities incurred from the

demission welfare on the earlier of the date when the Company could not unilaterally withdraw the demission

welfare offered by the plan or layoff proposal owing to termination of the labor relationship or the date when the

Company recognizes the cost related to the reorganization of the payment of the demission welfare and include

the payroll liabilities into the current profits and losses:

(4) Accounting treatment of the welfare of other long-term staffs

The other long-term welfare that the Company offers to the staff if met with the setting drawing plan shall

be disposed of according to the relevant setting drawing plan; except for that net liabilities or net assets of the

welfare of other long-term staff shall be recognized and measured according to the setting drawing plan.

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.

133Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

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:

134Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(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.

(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

135Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

amortization period at the initial recognition is more than one year or one normal operating cycle they are

included in “Other non-current assets” on the balance sheet.The Company amortizes the assets recognized for contract acquisition costs and contract performance costs

on the same basis as the revenue recognition of the merchandise to which the assets relate and recognizes them in

profit or loss for the current period. Assets formed from the incremental cost of acquiring a contract with an

amortization period of not more than one year are recognized in profit or loss for the current period when it

occurs.If the carrying amount of an asset related to the cost of a contract exceeds the difference between the

following two items the Company makes an allowance for impairment and recognizes an asset impairment loss

for the excess: the remaining consideration expected to be received for the transfer of the merchandise to which

the asset relates; and the estimated costs to be incurred for the transfer of the related merchandise.If the two differences above are higher than the book value of the assets due to the subsequent changes in the

impairment factors in previous periods the asset impairment provisions set aside should be reversed and

recognized as profit and loss of the current period. However upon the reversal the book value of the assets shall

not exceed the book value of the assets on the reversal date supposing that impairment provisions are not set

aside.

39. Government Subsidies

(1) Category of and accounting treatment for government subsidies

Government subsidies refer to the monetary assets or non-monetary assets obtained by the Company from

the government (excluding the capital invested by the government as an equity holder). If a government subsidy is

a 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

136Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

government subsidy corresponding to the asset value shall be regarded as the asset-related government subsidy

and the rest shall be regarded as income-related government subsidy. If it is difficult to distinguish the

government subsidy shall be regarded as the income-related government subsidy. Government grants related to

assets are recognized as deferred income. The amount recognized as deferred income is included in the current

profits and losses in accordance with reasonable and systematic method in the useful life of relevant assets.Government subsidies other than asset-related government subsidies are recognized as government subsidies

related to income. Government subsidies related to income used to compensate the relevant costs expenses or

losses of the Company in the subsequent period shall be recognized as deferred income and shall be included in

the current profit and loss during the period of confirming the relevant cost expenses or losses; subsidies used to

compensate the relevant costs expenses or losses incurred by the Company shall be directly included in the

current profits and losses.In the case that the Company obtains a policy favorable loan interest subsidy and the fiscal system allocates

the fund of interest subsidy to the lending bank who provides loans to the Company at a policy favorable interest

rate the actual loan amount received is recognized as the recorded value of the loan and the relevant borrowing

costs are calculated based on the loan principal and the policy favorable interest rate; if the fiscal system allocates

the fund of interest subsidy to the Company directly the Company reduces the corresponding interest subsidy

against relevant borrowing costs.

(2) Recognition time of government subsidies

Government subsidies shall be recognized when the Company satisfies the conditions attached to the

government subsidies and is able to receive them. Government subsidies measured according to the receivable

amount shall be recognized when there is positive evidence at the end of the period that they can meet the relevant

conditions stipulated by the financial support policies and are expected to receive financial support funds. Other

government subsidies other than government subsidies measured by amount receivable are recognized when the

Company actually receives the subsidies.

40. Deferred Income Tax Assets/Deferred Income Tax Liabilities

(1) Recognition of deferred income tax

The Company recognizes the deferred income tax assets or deferred income tax liabilities in accordance with

the applicable tax rate during the estimated period of recapturing the assets or paying the liabilities for the

different amount between the book value of assets or liabilities and its tax base (for items not recognized as assets

137Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

and liabilities if its tax basis can be determined according to the tax law the tax basis is recognized as the

different amount).

(2) Measurement of deferred income tax

The recognition of deferred income tax assets is subject to the amount of taxable income obtained to offset

the deductible temporary differences. On the balance sheet date deferred income tax assets without recognition

during the former accounting period shall be recognized if there are definite indications representing that it is

probable to have sufficient taxable income to offset the deductible temporary differences during the future period.If it is likely that sufficient taxable income will not be available to offset the benefit of the deferred income tax

assets in the future period the book value of the deferred income tax assets will be written down.For taxable temporary differences related to the investment in subsidiaries and associated enterprises the

deferred income tax liabilities are recognized unless the time of temporary differences reversal can be controlled

by the 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.

138Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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.* 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.

139Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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.

(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

140Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

under the “Construction in Progress” account and when the safety projects are completed and reach the

predetermined usable state they are recognized as fixed assets. Meanwhile the special reserves are offset as per

the cost of forming fixed assets and an equivalent amount of accumulated depreciation is recognized. The

aforesaid fixed assets will not be depreciated as accrued in the future period.

43. Changes in Main Accounting Policies and Estimates

(1) Change in accounting policies

□ Applicable □ Not applicable

Unit: RMB

Financial

statement

Amount

Content and reasons for the change in accounting policy line items

affected

significantly

affected

On June 4 2026 the Ministry of Finance issued the Circular on Issuing Interpretation No. 20 of

the Accounting Standards for Business Enterprises (Cai Kuai〔2026〕No. 7). This Interpretationspecifies two major matters: the “assessment of cash flow characteristics of financial assetcontracts” and “accounting treatment and relevant disclosures when a currency lacksNone 0.00convertibility”. It shall take effect as of the date of issuance. For new businesses falling within the

scope stipulated by this Interpretation that arose from January 1 2026 up to the effective date of

this Interpretation the Company shall make corresponding adjustments in accordance with the

provisions hereof.The Company adopted Interpretation No. 20 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 2026

□ 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% 5% 6% 9% 13%

taxable service

141Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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 Fozhao

Optoelectronics Liaowang Auto Lamp Chongqing Guinuo

Liuzhou Lighting Liuzhou Foreshine Qingdao Lighting

15%

NationStar Optoelectronics NationStar Semiconductor

Fenghua Semiconductor Hainan Technology Hule Electrical

NationStar Germany (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 Fozhao Optoelectronics 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. Pursuant to

the relevant provisions of the Enterprise Income Tax Law of the People’s Republic of China the Company shall

prepay enterprise income tax at a tax rate of 15% for 2026.

(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.

142Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(4) Subsidiary Fozhao Optoelectronics passed the review as an Innovation Company in December 2025 and

obtained the Innovation Company certificate (Certificate No. GR202544000737). According to relevant

regulations Fozhao Optoelectronics 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. Pursuant to the relevant provisions of the Enterprise Income Tax Law of the People’s

Republic of China Liaowang Auto Lamp shall prepay enterprise income tax at a tax rate of 15% for 2026.

(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.

(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. Pursuant to the relevant provisions of the Enterprise Income Tax Law of the People’s

Republic of China NationStar Optoelectronics shall prepay enterprise income tax at a tax rate of 15% for 2026.

143Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(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.:

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 Electrical 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 Electrical is entitled to pay enterprise income tax at a

reduced rate of 15% for three years starting from 2023. Pursuant to the relevant provisions of the Enterprise

Income Tax Law of the People’s Republic of China Hule Electrical shall prepay enterprise income tax at a tax

rate of 15% for 2026.

(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”.

144Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(17) Thailand Company a subsidiary of subsidiary Fozhao Optoelectronics 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.VII Notes to Main Items of Consolidated Financial Statements

1. Monetary Assets

Unit: RMB

Item Closing balance Opening balance

Cash on hand 25517.85 33030.81

Bank deposits 794152449.59 1498436755.78

Other monetary assets (note 1) 485737173.43 647818448.10

Money deposited in finance company

1109454612.151304152847.36

(note 2)

To-be-received interest (note 3) 4099989.62 5302009.12

Total 2393469742.64 3455743091.17

Of which: Total amount deposited

51413838.8066844431.32

overseas

Other notes:

Note 1: Other monetary assets were security deposits for notes and performance bonds pre-sold property

proceeds 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 as well as pre-sold property proceeds were

restricted assets (see “31. Assets with Restricted Ownership or Right of Use” in Note “VII”).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

2106282.552768997.33

profit or loss

Including:

Equity instrument investments 2106282.55 2768997.33

Total 2106282.55 2768997.33

145Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

3. Derivative Financial Assets

None.

4. Notes Receivable

(1) Notes Receivable Disclosed by Category

Unit: RMB

Item Closing balance Opening balance

Bank acceptance bill 641249462.95 628480403.75

Commercial acceptance bill 112012434.57 104354748.40

Total 753261897.52 732835152.15

(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 amount Percenta nAmount Amount Amount Amount amount

ge (%) percenta ge (%) percenta

ge (%) ge (%)

Notes

receivabl

e with

bad debt

provisio

n on an

individu

al basis

Notes

receivabl

e with

bad debt 755560 229893 753261 734965 212988 732835

100.00%0.30%100.00%0.29%

provisio 835.78 8.26 897.52 033.34 1.19 152.15

n on a

portfolio

basis

Of

which:

Bank

641249641249628480628480

acceptan 84.87% 0.00 0.00% 85.51% 0.00 0.00%

462.95462.95403.75403.75

ce bill

Commer

cial 114311 229893 112012 106484 212988 104354

15.13%2.01%14.49%2.00%

acceptan 372.83 8.26 434.57 629.59 1.19 748.40

ce bill

755560229893753261734965212988732835

Total 100.00% 0.30% 100.00% 0.29%

835.788.26897.52033.341.19152.15

Category names of bad debt provision on a portfolio basis: Bank acceptance bill Commercial acceptance bill.

146Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Unit: RMB

Closing balance

Name

Gross amount Bad debt provision Provision percentage (%)

Within 1 year 755560835.78 2298938.26 0.30%

Total 755560835.78 2298938.26

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 Recovery or Closing balancebalance Provision Write-off Others

reversal

Notes

receivable with

bad debt 2129881.19 169057.07 2298938.26

provision on a

portfolio basis

Total 2129881.19 169057.07 2298938.26

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 419208184.04

Total 419208184.04

(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 73423012.68 152278185.39

Commercial acceptance bill 1271079.60

Total 73423012.68 153549264.99

147Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(6) Notes Receivable Written off during the Period

None.

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) 1986786540.41 2052722441.79

1 to 2 years 90714478.56 118636510.81

2 to 3 years 67351169.01 60271415.93

Over 3 years 137175392.04 140365035.54

3 to 4 years 51046670.70 51225665.54

4 to 5 years 39612340.30 54131540.70

Over 5 years 46516381.04 35007829.30

Total 2282027580.02 2371995404.07

(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

832853671353161500108762757562330062

bad debt 3.65% 80.61% 4.59% 69.65%

40.5240.4600.06538.9078.5260.38

provisio

n on an

individu

al basis

Account

s

receivabl

e with

219874128917206982226323122913214031

bad debt 96.35% 5.86% 95.41% 5.43%

2239.50929.854309.652865.17841.779023.40

provisio

n on a

portfolio

basis

Of

which:

Business

147652113478136304148940106212138318

portfolio 64.70% 7.69% 62.79% 7.13%

4140.18203.245936.941022.52902.468120.06

of

148Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

general

lighting

and auto

lamps

Business

portfolio

of LED

722218154397706778773831167009757130

packagin 31.65% 2.14% 32.62% 2.16%

099.3226.61372.71842.6539.31903.34

g and

compone

nts

228202196053208597237199198670217332

Total 100.00% 8.59% 100.00% 8.38%

7580.02270.314309.715404.07120.295283.78

Category name of bad debt provision on an individual basis: Accounts receivable with bad debt provision on an

individual basis.There were no significant accounts receivable with bad debt provision on an individual basis during the period

or in other periods.Category names of bad debt provision on a portfolio basis: Business portfolio of general lighting and auto lamps

Business portfolio of LED packaging and components.Unit: RMB

Closing balance

Name

Gross amount Bad debt provision Provision percentage (%)

Business portfolio of general

1476524140.18113478203.247.69%

lighting and auto lamps

Business portfolio of LED

722218099.3215439726.612.14%

packaging and components

Total 2198742239.50 128917929.85

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

Reversal of

Closing

Category Opening balance write-offs Recovery or

Provision Write-off Others balance

from prior reversal

periods

Accounts 67135340.475756278.52 -924680.37 28318.31 972240.44 6752335.56

receivable 6

149Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

with bad

debt

provision

on an

individual

basis

Accounts

receivable

with bad

debt 128917929.

122913841.776386852.24368741.18-14022.98

provision 85

on a

portfolio

basis

196053270.

Total 198670120.29 5462171.87 28318.31 972240.44 7121076.74 -14022.98

31

Note: Others were differences arising from the translation of financial statements denominated in foreign

currencies at the end of the period.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 7121076.74

Of which significant accounts receivable written off: Not applicable

Notes to the write-off:

RMB7121076.74 of accounts receivable has been written off with the bad debt provision of

RMB7121076.74 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 98270622.47 98270622.47 4.30% 3128029.96

No. 2 90561230.20 90561230.20 3.97% 2716836.91

No. 3 78127173.92 78127173.92 3.42% 2348984.73

No. 4 52036388.88 52036388.88 2.28% 1561091.67

No. 5 49885363.11 49885363.11 2.18% 1496560.85

150Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Total 368880778.58 368880778.58 16.15% 11251504.12

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 1126681.30 901345.04 225336.26 2253362.60 1802690.08 450672.52

Total 1126681.30 901345.04 225336.26 2253362.60 1802690.08 450672.52

(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

Category Provisio 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

112668901345.225336.225336180269450672.

n on a 100.00% 80.00% 100.00% 80.00%

1.3004262.600.0852

portfolio

basis

Of which:

Business

portfolio

of

112668901345.225336.225336180269450672.

general 100.00% 80.00% 100.00% 80.00%

1.3004262.600.0852

lighting

and auto

lamps

112668901345.225336.225336180269450672.

Total 100.00% 80.00% 100.00% 80.00%

1.3004262.600.0852

Category name of bad debt provision on a portfolio basis: Business portfolio of general lighting and auto lamps.Unit: RMB

Closing balance

Name

Gross amount Bad debt provision Provision percentage (%)

Business portfolio of general 1126681.30 901345.04 80.00%

151Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

lighting and auto lamps

Total 1126681.30 901345.04

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

Recovered or reversed Charged off/written off

Item Provision Reason

during the period during the period

Impairment provision

-901345.04

for contract assets

Total -901345.04

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 467728813.47 415949788.02

Total 467728813.47 415949788.02

(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

152Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Item Amount pledged as at the end of the period

Bank acceptance bill 26500000.00

Total 26500000.00

(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 1037272369.50

Total 1037272369.50

(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 51718835.85 82678537.89

Total 51718835.85 82678537.89

(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

Performance guarantee deposits 17138581.16 16916339.82

Value-added tax (VAT) export rebates 7578848.42 20284110.73

Employee loans and petty cash 3567770.45 1881995.33

Rent and utilities 2800371.78 2229668.90

Other transactions 58816971.03 80310603.33

Total 89902542.84 121622718.11

153Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

2) Disclosure by Aging

Unit: RMB

Aging Gross amount at period-end Gross amount at period-beginning

Within 1 year (including 1 year) 36473931.63 50304035.90

1 to 2 years 4138086.62 17170952.38

2 to 3 years 12534667.90 18350276.26

Over 3 years 36755856.69 35797453.57

3 to 4 years 6505618.23 6424579.68

4 to 5 years 1464386.85 1371309.73

Over 5 years 28785851.61 28001564.16

Total 89902542.84 121622718.11

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

379245273191106053573009279071293938

n on an 42.18% 72.04% 47.11% 48.70%

11.3737.6273.7594.2891.0303.25

individu

al basis

Bad debt

provisio

519780108645411134643217110369532847

n on a 57.82% 20.90% 52.89% 17.16%

31.4769.3762.1023.8389.1934.64

portfolio

basis

Of which:

Deposits

and 171385 793133 920724 169163 790873 900760

19.07%46.28%13.92%46.75%

guarante 81.16 6.74 4.42 39.82 8.97 0.85

es

Amount

s due

299389930352.206353250858956601.155198

from/to 3.33% 31.08% 2.06% 38.13%

2.22429.806.94355.59

related

parties

Advance

318455200288298426448967217164427251

s and 35.42% 6.29% 36.91% 4.84%

58.090.2177.8897.078.8748.20

others

899025381837517188121622389441826785

Total 100.00% 42.47% 100.00% 32.02%

42.8406.9935.85718.1180.2237.89

Category name of bad debt provision on an individual basis: Bad debt provision on an individual basis.

154Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Accounts receivable with bad debt provision on an individual basis in the period and the prior period:

Unit: RMB

Opening balance Closing balance

Name ProvisionBad debt Bad debt Basis for

Gross amount Gross amount percentage

provision provision provision

(%)

Recovery of

Wuxi Yixin the amount

Optoelectronics 20000000.00 20000000.00 20000000.00 20000000.00 100.00% is

Technology Co. Ltd. considered

unlikely.Based on

litigation in

the period a

Industrial and

bad debt

Commercial Bank of 15883375.00 476501.25 10933375.00 328001.25 3.00%

provision is

China Foshan Branch

made on an

individual

basis.Infore Robotics &

14419514.95432585.45

Automation Co. Ltd.Total 50302889.95 20909086.70 30933375.00 20328001.25

Category names of bad debt provision on a portfolio basis: Deposits and guarantees Amounts due from/to

related parties Advances and others.Unit: RMB

Closing balance

Name

Gross amount Bad debt provision Provision percentage (%)

Deposits and guarantees 17138581.16 7931336.74 46.28%

Amounts due from/to related

2993892.22930352.4231.08%

parties

Advances and others 31845558.09 2002880.21 6.29%

Total 51978031.47 10864569.37

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

1528699.769508289.4327907191.0338944180.22

12026

Balance as at January

1 2026 in the period

Provided for during the -401767.62 255360.17 -588053.41 -734460.86

155Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

period

Other changes -26012.37 -26012.37

Balance as at June 30

1100919.779763649.6027319137.6238183706.99

2026

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

4) Bad Debt Provision Provided for Recovered or Reversed during the Period

Bad debt provision during the period:

Unit: RMB

Changes for the period

Category Opening balance Recovery or Charge off Closing balance

Provision Others

reversal or write off

Other

38944180.22-734460.86-26012.3738183706.99

receivables

Total 38944180.22 -734460.86 -26012.37 38183706.99

Of which bad debt provision with a significant recovered or reversed amount during the period: None.

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 %

Wuxi Yixin

Optoelectronics

Other transactions 20000000.00 Over 5 years 22.25% 20000000.00

Technology Co.Ltd.Industrial and

Commercial Bank

Other transactions 10933375.00 Within 3 years 12.16% 328001.25

of China Foshan

Branch

Guangdong

Provincial Tax Value-added tax

Service State (VAT) export 7578848.42 Within 1 year 8.43% 227365.45

Taxation rebates

Administration

Jiangsu Fozhao

Contract Energy

Other transactions 5000000.00 Within 4 years 5.56% 5000000.00

Management

Development Co.

156Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Ltd.Individual social

security

contributions Other transactions 3839057.79 Within 1 year 4.27% 139813.26

withheld and paid

by the Company

Total 47351281.21 52.67% 25695179.96

7) Other receivables Presented due to Centralized Management of Funds

None.

9. Prepayments

(1) Prepayments Disclosed by Aging

Unit: RMB

Closing balance Opening balance

Aging

Amount Proportion Amount Proportion

Within 1 year 34419421.48 79.40% 42210473.83 84.78%

1 to 2 years 2995359.91 6.91% 3276728.21 6.58%

2 to 3 years 2199262.99 5.07% 1563537.85 3.14%

Over 3 years 3738152.67 8.62% 2739309.42 5.50%

Total 43352197.05 49790049.31

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 10934166.52 Within 1 year 25.22%

No. 2 Non-Related Party 2063653.37 Within 2 year 4.76%

No. 3 Non-Related Party 1949197.49 Within 1 year 4.50%

No. 4 Non-Related Party 1536648.28 Within 1 year 3.54%

No. 5 Non-Related Party 1230771.73 Within 1 year 2.84%

Total 17714437.39 40.86%

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

Item Carrying Carrying

Gross amount Provisions for Gross amount Provisions for

inventory amount inventory amount

157Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

impairments or impairments or

impairment impairment

provisions for provisions for

contract contract

performance performance

costs costs

Raw materials 522711299.82 17437427.63 505273872.19 355222010.08 17408072.98 337813937.10

Goods in

272173170.99272173170.99254192102.97254192102.97

process

Inventory 1399128001. 1215556936. 1439828181. 1269394382.

183571064.74170433798.55

goods 43 69 08 53

Goods in transit 232056226.14 4177979.87 227878246.27 217149231.66 16800564.57 200348667.09

Semi-finished

106959362.541876341.94105083020.6097109458.642061225.7495048232.90

goods

Low-value

2384563.052384563.052032676.872032676.87

consumables

Others 13387235.00 13387235.00 4830653.19 4830653.19

2548799858.2341737044.2370364314.2163660652.

Total 207062814.18 206703661.84

97794965

(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

Item Opening balance Reversal or charge- Closing balance

Provision Others Others

off

Raw materials 17408072.98 318438.71 289084.06 17437427.63

Inventory

170433798.5538303879.2925166613.10183571064.74

goods

Goods in transit 16800564.57 1823585.72 14446170.42 4177979.87

Semi-finished

2061225.74102378.87287262.671876341.94

goods

Total 206703661.84 40548282.59 40189130.25 207062814.18

Note: Of the amount reversed or charged off during the period the reversal amount was RMB287221.06

and the charge-off amount was RMB39901909.19..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.

158Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(5) Notes to the Amount of Contract Performance Costs Amortized for the Period

None.

11. Assets held for sale

None.

12. Current Portion of Non-current Assets

Unit: RMB

Item Closing balance Opening balance

Current portion of other debt investments 1042833211.63 429862721.67

Total 1042833211.63 429862721.67

(1) Current Portion of Debt Investments

□ Applicable□ Not applicable

(2) Current Portion of Other Debt Investments

□ Applicable □ Not applicable

1) List of Current Portion of Other Debt Investments

Unit: RMB

Accumulat

ed

Change in Accumulat impairment

Opening fair value Closing

Item Accrued Cost ed changes

provision

interest in fair recognized Notesbalance in the balance in other

period value comprehen

sive

income

Large-

denominati

on

429862724403867.93243665830000000

certificates

1.6769.630.00

of deposit

purchased

in 2023

Large-

denominati

on

41466622.7184666267700000

certificates

002.000.00

of deposit

purchased

in 2024

4298627245870489.1042833297700000

Total

1.679611.630.00

2) Significant Current Portion of Other Debt Investments as at the End of the Period

Unit: RMB

Item Par value Coup Maturity date Actual interest rate Overdue principal

159Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

on Closing Opening Closing Opening

rate balance balance balance balance

Large-denomination

2.90

certificates of deposit 50000000.00 August 31 2026 2.90% 2.90%

%

acquired in 2023

Large-denomination

2.90

certificates of deposit 100000000.00 November 3 2026 2.90% 2.90%

%

acquired in 2023

Large-denomination

2.95

certificates of deposit 150000000.00 December 1 2026 2.95% 2.95%

%

acquired in 2023

Large-denomination

2.75

certificates of deposit 212000000.00 February 5 2027 2.75%

%

acquired in 2024

Large-denomination

2.60

certificates of deposit 55000000.00 February 5 2027 2.60%

%

acquired in 2024

Large-denomination

2.60

certificates of deposit 143000000.00 February 5 2027 2.60%

%

acquired in 2024

Large-denomination

2.60

certificates of deposit 52000000.00 February 5 2027 2.60%

%

acquired in 2024

Large-denomination

2.60

certificates of deposit 150000000.00 March 8 2027 2.60%

%

acquired in 2024

Large-denomination

2.60

certificates of deposit 35000000.00 March 29 2027 2.60%

%

acquired in 2024

Large-denomination

2.60

certificates of deposit 30000000.00 April 30 2027 2.60%

%

acquired in 2024

Total 977000000.00

3) Impairment Provision

None.

4) Status of Current Portion of Other Debt Investments 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

208431568.03180724871.99

verified or deducted

Time deposits large-denomination

479171233.0635013164.98

certificates of deposit

Prepaid corporate income tax 10979058.13 4349157.57

Others 18065998.63 1499186.49

Total 716647857.85 221586381.03

160Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

14. Debt Investments

None.

15. Other Debt Investments

(1) List of Other Debt Investments

Unit: RMB

Accumula

ted

Accumula impairmeChange in

Opening Accrued Interest

nt

fair value Closing ted

Item interest adjustmen Cost changes

provision

balance t in the balance in fair recognize

Notes

period value d in othercomprehe

nsive

income

The

closing

Large-

balance

denomina

was

tion

reclassifie

certificate 7200836

d to

s of 94.31

current

deposit

portion of

acquired

non-

in 2024

current

assets

Large-

denomina

tion

certificate 947945.2 1009479 1000000

s of 0 45.20 00.00

deposit

acquired

in 2026

7200836947945.210094791000000

Total

94.31045.2000.00

(2) Significant Other Debt Investments as at the End of the Period

Unit: RMB

Closing balance Opening balance

Item Par Coupon Actual Maturity Overdue Par Coupon Actualinterest interest Maturity Overduevalue rate rate date principal value rate rate date principal

Large-

denomin

ation

certificat

es of 100000 January

2.00%2.00%

deposit 000.00 8 2029

issued

by

Guangdo

ng

161Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Huaxing

Bank

Large-

denomin

ation

certificat

es of

212000 February

deposit 2.75% 2.75%

000.00

issued 5 2027

by Bank

of

Guangzh

ou

Large-

denomin

ation

certificat

es of 550000 February

2.60%2.60%

deposit 00.00 5 2027

issued

by China

Everbrig

ht Bank

Large-

denomin

ation

certificat

es of 143000 February

2.60%2.60%

deposit 000.00 5 2027

issued

by Hua

Xia

Bank

Large-

denomin

ation

certificat

es of 620000 February

2.60%2.60%

deposit 00.00 5 2027

issued

by China

Merchan

ts Bank

Large-

denomin

ation

certificat

es of 150000 March 8

2.60%2.60%

deposit 000.00 2027

issued

by Hua

Xia

Bank

Large-

denomin

350000 March

ation 2.60% 2.60%

00.00

certificat 29 2027

es of

162Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

deposit

issued

by China

Merchan

ts Bank

Large-

denomin

ation

certificat

es of 300000 April 30

2.60%2.60%

deposit 00.00 2027

issued

by China

Merchan

ts Bank

100000687000

Total

000.00000.00

(3) Impairment Provision

None.Basis for classification into stages and provision rates of bad debt provision

See Note V-17. Other Debt Investments.

(4) Other Debt Investments Written off during the Period

None.

16. Other Equity Investments

Unit: RMB

Cumulative Cumulative

Reasons for

gain loss

Gains Losses designatingrecognized recognized

recognized recognized Dividend as at fairin other in other

in other in other income valueOpening

Item comprehen comprehen

comprehen comprehen Closing

recognized through

balance sive sive sive sive balancein 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 29252842. 23880105 6309436.6 39175865 trading

Bank Co.

0.10 65 0.62 5 7.45 equity

Ltd.instruments

China Non-

Guangfa trading

500000.00500000.00

Bank Co. equity

Ltd. instruments

Guangdong

Non-

Embodied

15150000. trading

Intelligence 0.00

00 equity

Technolog

instruments

y Co. Ltd.Foshan 3000000.0 3000000.0 Non-

163Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Nanhai 0 0 trading

District equity

United instruments

Guangdong

New Light

Source

Industry

Innovation

Center

Beijing

Glory

Alliance

Semicondu Non-

ctor 6082543.8 6082543.8 trading

Lighting 0 0 equity

Industry instruments

Investment

Center

(L.P.)

Guangdong Non-

Rising 30000000. 30000000. trading

214945.80

Finance 00 00 equity

Co. Ltd. instruments

Guangdong

Rising Hun

dred

Counties

Thousand

Towns and

Ten

Thousand

Villages

High

Non-

Quality

11200000. 11200000. trading

Developme

00 00 equity

nt

instruments

Project Ind

ustrial

Investment

Fund of

Funds

Partnership

Enterprise

(Limited

Partnership

)

4717940429252842.238801056524382.445769120

Total

3.90650.6251.25

Non-trading equity instrument investment in the period disclosed by items

Unit: RMB

Amount Reasons for Reasons for

Dividend reclassified designating as reclassification

Item income Accumulative Accumulative

recognized gains losses

from other at fair value from other

comprehensive through other comprehensive

income to comprehensive income to

164Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

retained income retained

earnings earnings

Not satisfied

with the

Xiamen Bank Co.

6309436.65 238801050.62 condition of N/A

Ltd.trading equity

instrument

Beijing Glory

Not satisfied

Alliance

with the

Semiconductor

1538068.73 condition of N/A

Lighting Industry

trading equity

Investment Center

instrument

(L.P.)

Not satisfied

with the

Guangdong Rising

214945.80 1337859.54 condition of N/A

Finance Co. Ltd.trading equity

instrument

Total 6524382.45 241676978.89

17. Long-term Receivables

None.

18. Long-term Equity Investment

Unit: RMB

Changes for the period

Invest

Openi Openi ment Closin Closin

ng ng gains Adjust Cash g g

balanc balanc and mentof bonus balanc balanc

Investe e e of Additi Reduc losses Chang Provisior e e of

e (carryi impair onal ed recogn

other es of on for (carryi impair

ng ment invest invest ized

compr profits Others

ehensi other impairment ment under equity annou ng ment

amoun provisi the ve

ment

nced to amoun provisi

t) on equity income issue

t) on

metho

d

I. Joint ventures

II. Associated enterprises

Primat

ronix

(Nanh 18480 18549

69117

o) 6652. 7823.

0.38

Electro 92 30

nics

Ltd.

1848018549

Subtot 69117

6652.7823.

al 0.38

9230

1848018549

69117

Total 6652. 7823.

0.38

9230

The recoverable amount is determined based on fair value less costs of disposal

165Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

□ 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.

20. Investment Property

(1) Investment Property Measured at Cost

□ Applicable □ Not applicable

Unit: RMB

Constructi

Item Houses and buildings Land use right on in Total

progress

I. Gross amount

1. Opening balance 880189146.33 61486213.33 941675359.66

2. Increase during the period 14955191.72 14955191.72

(1) Purchased

(2) Transferred from inventories/fixed

14955191.7214955191.72

assets/construction in progress

(3) Increase from business

combination

3. Decrease during the period 4749744.52 4749744.52

(1) Disposal

(2) Other transfer 4749744.52 4749744.52

4. Closing balance 890394593.53 61486213.33 951880806.86

II. Accumulative depreciation and accumulative

amortization

1.Opening balance 116287102.50 14806218.29 131093320.79

2. Increase during the period 20139328.52 980526.73 21119855.25

(1) Provision or amortization 16262210.70 980526.73 17242737.43

(2) Transferred from inventories/fixed

3877117.823877117.82

assets/construction in progress

166Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

3. Decrease during the period 1280374.31 1280374.31

(1) Disposal

(2) Other transfer 1280374.31 1280374.31

4. Closing balance 135146056.71 15786745.02 150932801.73

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 carrying amount 755248536.82 45699468.31 800948005.13

2. Opening carrying amount 763902043.83 46679995.04 810582038.87

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 June 30 2026 the relevant property certificates for the LED Workshop and the leased portion of the

Hainan production base are still in progress. The Company believes that obtaining such property certificates is

167Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

not subject to any substantive legal obstacles and has no significant adverse impact on the Company’s normal

operations.

21. Fixed Assets

Unit: RMB

Item Closing balance Opening balance

Fixed assets 3500790477.78 3584415229.00

Disposal of fixed assets 3459057.99 2502347.90

Total 3504249535.77 3586917576.90

(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 8401796955.

2589240721.615574206506.8241911995.2692501595.68103936135.95

balance 32

2. Increase

194423154.3

during the 42192675.94 142761391.15 391197.64 6485221.10 2592668.49

2

period

(1) Purchased 890708.85 40165247.78 391197.64 4717075.81 709935.61 46874165.69

(2) Transferred

from 132064493.0

29560001.3298866958.541768145.291869387.88

construction in 3

progress

(3) Increase

from business

combination

(4) Others (note

11741965.773729184.8313345.0015484495.60

2)

3. Decrease

during the 14723568.06 51464660.33 2812086.23 745379.45 139174.84 69884868.91

period

(1) Disposal or

94444.4846356108.022798551.41140746.17128862.0449518712.12

retirement

(2) Equipment

434301.76864178.69567331.201865811.65

transformation

(3) Others

14194821.824244373.6213534.8237302.0810312.8018500345.14

(Note 2)

4. Closing 8526335240.

2616709829.495665503237.6439491106.6798241437.33106389629.60

balance 73

II.Accumulative

depreciation

1.Opening 4801822581.

828195740.283790306310.4431925646.9268761126.5182633757.58

balance 73

2. Increase 60215359.13 189051056.56 1656538.19 5777444.24 2860734.24 259561132.3

168Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

during the 6

period

256485541.4

(1) Provision 58934984.82 187255839.94 1656538.19 5777444.24 2860734.24

3

(2) Others

1280374.311795216.623075590.93

(Note 2)

3. Decrease

during the 3991461.69 45153232.59 2765881.33 703603.50 136898.30 52751077.41

period

(1) Disposal or

43627841.412752481.85135929.10126688.6246642940.98

retirement

(2) Equipment

30455.41257534.72561657.88849648.01

transformation

(3) Others (note

3961006.281267856.4613399.486016.5210209.685258488.42

2)

4. Closing 5008632636.

884419637.723934204134.4130816303.7873834967.2585357593.52

balance 68

III. Impairment

provisions

1.Opening

6580100.008969473.625738.723832.2515559144.59

balance

2. Increase

during the 1635100.00 1285.69 9307.48 1645693.17

period

(1) Provision

(2) Others 1635100.00 1285.69 9307.48 1645693.17

3. Decrease

during the 292313.26 398.23 292711.49

period

(1) Disposal or

282118.32282118.32

retirement

(2) Others 10194.94 398.23 10593.17

4. Closing

8215200.008677160.366626.1813139.7316912126.27

balance

IV. Carrying

amount

1. Closing

3500790477.

carrying 1724074991.77 1722621942.87 8674802.89 24399843.90 21018896.35

78

amount

2. Opening

3584415229.

carrying 1754464881.33 1774930722.76 9986348.34 23734730.45 21298546.12

00

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 arising from a change in the use of buildings during the period and exchange rate adjustment.

169Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(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 Glass Workshop 8 Glass Workshop 9 Fluorescent Lamp Workshop Standard Workshop

A Hainan Production Base (self-use part) Fuwan Employee Village Family Dormitory Building 2 Family

Dormitory Building 8 Fuwan Employee Village Dormitory Building 7 and Employee Apartment Buildings 1-4

have been completed and put into use and carried forward fixed assets. As at June 30 2026 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

(6) Disposal of Fixed Assets

Unit: RMB

Item Closing balance Opening balance

Machinery equipment 3459057.99 2502347.90

Total 3459057.99 2502347.90

22. Construction in progress

Unit: RMB

Item Closing balance Opening balance

Construction in progress 250251499.08 223949659.06

Total 250251499.08 223949659.06

(1) List of Construction in Progress

Unit: RMB

Closing balance Opening balance

Item Impairment Impairment

Gross amount Carrying amount Gross amount Carrying amount

provision provision

Construction

251846318.221594819.14250251499.08225544478.201594819.14223949659.06

in progress

Total 251846318.22 1594819.14 250251499.08 225544478.20 1594819.14 223949659.06

170Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(2) Changes in Significant Construction in Progress during the Period

Unit: RMB

Of

Transf Cumul Interes

which:

erred Other ative Cumul t

Increas Capital

Openi to decrea Closin project ative capital

e Project ized Fundin

Item ng fixed ses g invest capital izationBudget during progre interes g

balanc assets during balanc ment ized rate for

the ss (%) t source

e during the e as % interes the

period during

the period of the t period

the

period budget (%)

period

The

Self-

Project

pooled

of the 1714 14740 21102 12859

5908 3619 50.64 50.64 64561 funds

Geely 54670 7216. 038.0 4762.

969.75 385.84 % % 0.61 and

Industr 0.00 78 2 67

borrow

ial

ings

Park

1714147402110212859

5908361964561

Total 54670 7216. 038.0 4762.

969.75385.840.61

0.0078267

(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

None.

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 Total

I. Gross amount

1. Opening balance 39880165.23 1096398.96 40976564.19

2. Increase during the period 418158.33 418158.33

(1) Leased in 418158.33 418158.33

3. Decrease during the period 2882761.41 2882761.41

171Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(1) Disposal 2882761.41 2882761.41

4.Closing balance 37415562.15 1096398.96 38511961.11

II. Accumulative depreciation

1. Opening balance 16272843.99 932176.11 17205020.10

2. Increase during the period 6019030.88 164222.85 6183253.73

(1) Provision 6019030.88 164222.85 6183253.73

3. Decrease during the period 2843548.44 2843548.44

(1) Disposal 2843548.44 2843548.44

4.Closing balance 19448326.43 1096398.96 20544725.39

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 carrying amount 17967235.72 17967235.72

2. Opening carrying amount 23607321.24 164222.85 23771544.09

(2) Impairment Test of Right-of-use Assets

□ Applicable□ Not applicable

26. Intangible Assets

(1) List of Intangible Assets

Unit: RMB

Non-

patent Others

Item Land use right Patent Software Trademark Total

technolo (note)

gy

I. Gross amount

1. Opening 41325383. 100832989. 3470000.

369823060.6327020000.00542471433.90

balance 35 92 00

2. Increase

during the 22962915.37 8113227.50 31076142.87

period

(1)

7462095.467462095.46

Purchased

(2)

Developed

internally

(3)

Increase from

business

combination

172Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

(4)Tra

nsferred from

22962915.37651132.0423614047.41

construction in

progress

3. Decrease

during the

period

(1)

Disposal

4. Closing 41325383. 108946217. 3470000.

392785976.0027020000.00573547576.77

balance 35 42 00

II.Accumulative

amortization

1. Opening 27347287. 47042450.1 491583.3

80236838.843827833.37158945993.24

balance 47 9 7

2. Increase

1303517.6173500.0

during the 4173195.80 8498282.85 1351000.00 15499496.34

90

period

(1)1303517.6173500.0

4173195.808498282.851351000.0015499496.34

Provision 9 0

3. Decrease

during the

period

(1)

Disposal

4. Closing 28650805. 55540733.0 665083.3

84410034.645178833.37174445489.58

balance 16 4 7

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 12674578. 53405484.3 2804916.

308375941.3621841166.63399102087.19

carrying amount 19 8 63

2. Opening 13978095. 53790539.7 2978416.

289586221.7923192166.63383525440.66

carrying amount 88 3 63

173Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

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

None.

(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

Increase during the Decrease during

period the period

Name of the invested units or events Opening

Closing balance

generating goodwill balance Formed by

business Others Disposed Others

combination

Foshan NationStar Optoelectronics

405620123.64405620123.64

Co. Ltd.Nanning Liaowang Auto Lamp Co.

16211469.8216211469.82

Ltd.Guangdong Airtrust Aviation

125552.07125552.07

Equipment Co. Ltd.Total 421957145.53 421957145.53

(2) Impairment Provisions for Goodwill

Unit: RMB

Increase Decrease

Name of the invested units or events during the during the

Opening balance

generating goodwill period period

Closing balance

Provision Disposal

Foshan NationStar Optoelectronics Co. Ltd. 176610990.01 176610990.01

Total 176610990.01 176610990.01

28. Long-term Prepaid Expense

Unit: RMB

Increase during the Amortization

Item Opening balance Other decreases Closing balance

period during the period

Mold 248548268.44 71799315.74 26891509.25 15213272.94 278242801.99

Expense on

74762383.8514818238.0517046527.29228896.2572305198.36

maintenance and

174Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

decoration

Boarding box 610628.31 148106.91 462521.40

Others 12017139.88 3563777.74 3657066.39 11923851.23

Total 335938420.48 90181331.53 47743209.84 15442169.19 362934372.98

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

456917460.8470211529.92455575694.1469542275.28

impairment of assets

Unrealized profit of

31506763.464726014.5025371871.733805780.74

internal transactions

Deductible loss 210062395.91 33983990.34 210552472.38 33948090.76

Depreciation of fixed

35266780.035290017.0038958013.645843702.05

assets

Accrued liabilities 18892687.04 2898991.08 17991357.40 2698703.61

Change in fair value of

trading financial 813723.89 122058.58 331319.45 49697.92

liabilities

Estimated cost 59374439.07 10238500.86 76653774.22 12908097.81

Lease liabilities and

67407300.6713008523.2082428921.0515368236.16

others

Total 880241550.91 140479625.48 907863424.01 144164584.33

(2) Deferred Income Tax Liabilities before Offsetting

Unit: RMB

Closing balance Opening balance

Item Taxable temporary Deferred income tax Taxable temporary Deferred income tax

difference liabilities difference liabilities

Assets assessment

appreciation from

business consolidation 133121862.62 20083844.55 140027029.47 21134372.57

not under the same

control

Changes in fair value

of other equity 232951050.62 34942657.60 262203893.26 39330583.99

investments

Changes in the fair

value of trading 747911.34 112186.70 1369911.68 205486.75

financial assets

One-off depreciation of

554207584.3383131137.66564657876.6584698681.50

fixed assets

Right-of-use assets and

21475249.184214160.1424465203.894827490.65

others

175Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Total 942503658.09 142483986.65 992723914.95 150196615.46

(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

140479625.48144164584.33

assets

Deferred income tax

142483986.65150196615.46

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 Impairment Carrying

Gross amount Carrying amount Gross amount

provision provision amount

Contract assets 467940.84 102761.63 365179.21 501901.93 75862.82 426039.11

Long-term assets

198202153.

to be disposed 198202153.88 198202153.88 198202153.88

88

(note)

Advance payment

for long-term 6992221.25 1635100.00 5357121.25

assets acquisition

Advance payment

99361501.4

for equipment 46499860.06 46499860.06 99361501.47

7

and project

Others 635084.18 635084.18 4367681.40 4367681.40

307714497.

Total 245805038.96 102761.63 245702277.33 309425459.93 1710962.82

11

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

47867724 47867724 Restricted Note 63108178 63108178 Restricted Note

Monetary 9.14 9.14 use deposits 2.33 2.33 use deposits

176Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

assets bond bond

deposits deposits

etc. pre-sale of

properties

etc.Pledge of Pledge of

note pool note pool

Pledged Pledged

notes notes

endorsed or endorsed or

Notes 57275744 57275744 receivable 54007829 54007829 receivable

discounted discounted

receivable 9.03 9.03 endorsed or 4.10 4.10 endorsed or

but not but not

discounted discounted

matured matured

but not but not

matured matured

Related Related

Fixed 34816101 19800808 party 34816101 19842784 party

Mortgaged Mortgaged

assets 6.79 4.57 mortgage 6.79 1.71 mortgage

guarantees guarantees

Related Related

Intangible 15551408. 10030658. party 15551408. 10030658. party

Mortgaged Mortgaged

assets 00 70 mortgage 00 70 mortgage

guarantees guarantees

Accounts

26500000. 26500000. Pledge of 7000000.0 7000000.0 Pledge of

receivable Pledged Pledged

00 00 note pool 0 0 note pool

financing

Accounts Accounts

receivable receivable

Accounts 1050000.0 1050000.0

945000.00 Pledged transferred 945000.00 Pledged transferred

receivable 0 0

but not yet but not yet

due due

Other

6658273.0 6658273.0 Frozen

current Frozen

0 0 funds

assets

Other non-

3528951.2 3528951.2 Frozen

current Frozen

3 3 funds

assets

14426971128691841553109713977508

Total

22.9641.4425.4501.07

32. Short-term Borrowings

(1) Breakdown of Short-term Borrowings

Unit: RMB

Item Closing balance Opening balance

Mortgage loans 8000000.00 8000000.00

Credit loans 573589947.26 625462091.12

Acceptance bill discount 1542591.80

Interest from short-term borrowings 10391.94

Total 581589947.26 635015074.86

Notes to classification of short-term borrowings:

1. As at June 30 2026 the carrying amount of fixed assets pledged as collateral for secured short-term

borrowings was RMB4214254.95.

177Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

2. 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 441690.00

Of which:

Others 441690.00

Total 441690.00

34. Derivative Financial Liabilities

None.

35. Notes Payable

Unit: RMB

Category Closing balance Opening balance

Bank acceptance bill 1899804727.58 2165892938.76

Letter of credit 94665436.12 13177505.65

Total 1994470163.70 2179070444.41

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 2310647251.69 2443871780.95

Total 2310647251.69 2443871780.95

(2) Significant Accounts Payable Aged over One Year or Overdue

Unit: RMB

Item Closing balance Unpaid/Un-carry-over reason

Unit A 47896016.06 It has not reached the settlement period

Total 47896016.06

37. Other Payables

Unit: RMB

178Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

Item Closing balance Opening balance

Dividends payable 17174211.40

Other payables 317547164.24 372152039.73

Total 334721375.64 372152039.73

(1) Interest Payable

None.

(2) Dividends Payable

Unit: RMB

Item Closing balance Opening balance

Dividends on ordinary shares 15183661.90

Others 1990549.50

Total 17174211.40

(3) Other Payables

1) Other Payables Disclosed by Category of Nature

Unit: RMB

Item Closing balance Opening balance

Transactions 122359361.77 148822484.44

Relevant expense of sales 60152112.70 70427822.25

Performance bond 83535841.30 86126189.35

Payments for demolition 2071772.00

Others 51499848.47 64703771.69

Total 317547164.24 372152039.73

2) Significant Other Payable Aged over One Year or Overdue

Unit: RMB

Item Closing balance Unpaid/Un-carry-over reason

Unit A 55046577.48 It has not reached the settlement period

Unit B 34923374.73 It has not reached the settlement period

Total 89969952.21

38. Advances from Customer

(1) List of Advances from Customers

Unit: RMB

Item Closing balance Opening balance

Advances from customers 303123.79 328004.34

Total 303123.79 328004.34

(2) Significant Advances from Customers Aged over One Year or Overdue

None.

179Foshan Electrical and Lighting Co. Ltd. Interim Report 2026

39. Contract Liabilities

Unit: RMB

Item Closing balance Opening balance

Advances on sales 101215408.89 140787246.73

Total 101215408.89 140787246.73

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 162586689.64 671052056.41 688347300.95 145291445.10

II. Post-employment